ABSTRACT
This research study tries to investigate the
management problems of public enterprises, a case study of Anambra motor
manufacturing company (ANAMMCO) One of the major objectives of any government
is a stable growth and development of the country through
industrialization. One of the avenues through which this is achieved is
by the establishment of public enterprises. ANAMMCO, being a public enterprise,
the researcher has undertaken to investigate how much it has contributed to the
general growth and development of Nigeria and also investigate any managerial
problems of may have. This research study contains five chapters. Chapter
one introduction of the topic “management problem public enterprises (a case of
ANAMMCO) along with the statement of the problem, objectives of the study and
hypotheses. Chapter two talk about the review of the literature on the
topic. Chapter three is about the research methodology. Chapter
four talk about analysis and interpretation of data. Chapter five
contains conclusions followed by recommendations to the management of ANAMMCO.
It is the believe of the researcher that this research work will be of
great beretit to the management of ANAMMCO and other public enterprises that
may have similar problems.
CHAPTER ONE
INTRODUCTION
1.1 Background
of the Study
In any
developing economy, the government is the main initiator and promoter of
economic development, especially in Nigeria. In developing countries,
governments usually intervene in some areas of the economy in which the private
sector cannot perform; according to Abubalar (1986) in order to facilitate the
federal government has instituted and made use of many public enterprises over
the years.
It would be
recalled however that in the fifties and sixties, agriculture was the main stay
of the Nigeria economy. The early seventies earned for Nigeria large crude
oil revenue at a level that never was anticipated. This new dimension got
government involved more with widely diversified investments in areas that span
both the traditional public sector and exclusive private sector business.
As a result
of this development in crude oil, agriculture that was the main stay of our
economy was later given less attention. Owing to this circumstance, government
investments were sponsored mostly by the oil revenues. The oil boom era
(1974-1979) has been described as the golden era for public investment.
The government invested in over 30 parastatals and companies within this
period. Most of them have been unprofitable; some cannot even meet their
operating costs and have depended on government subventions for their year to
year survival.
Public
co-operations in Nigeria have been considered inefficient and wistful.
This is because they have viewed it with the profit criterion.
Kindleberger (1986) however Hints that this is not a fair judgment, economic
activities, it is usually not appropriate to use the performance standard of
the private sector “they are hoses of different colours; the objective of
private business is profit, while the government enterprises is seines to the
society or promotion of general welfare”.
Olisa (1985)
opines that prior to independence and after Nigeria was faced with the problem
of attaining her social-economic objectives, there was no well destined
capitalist class that could operate the much needed development through their
productive and industrializing activities. The civil service at that time
was inappropriate for accelerated development and the country was saddened with
the problem of running much business.
These
parastatals are established out side the civil services and this allows for
greater freedom of action, quicker decision making which will promote their
efficiency and effectiveness. These corporations are managed through
government appointed officials who could utilize the profits accruing from
their operations in catering for the public interest Onwudunmi (1970).
Ugwu (1990) said that in Nigeria, it is very unfortunate that government has rapid development and this is because the management of these enterprises has constituted the bane of these enterprises. Most of them failed to meet people’s expectations in terms of provision of goods and services and development in general. The commercially oriented ones neither make profits nor even sustain themselves. All efforts by successive government yield no positive result despite various commissions of inquiry and review parties. The performance of these enterprises still fall short’s of people’s expectation. It is based on this that the researcher finds the need to investigate these problems in Anambra Motors Manufacturing Company (ANAMMCO).
1.2 Historical Background of Anambra Motor
Manufacturing Company (ANAMMCO).
Anambra motor manufacturing company
incorporated on the 17th of January 1977, was commissioned on the 8th
of July 1980, and started official production in January 1981.
The company, which has
a staff strength of seven hundred and ninety – four (794) and an installed
capacity of producing seven thousand and five hundred commercial vehicles
annually is presently utilizing fifteen (15%) of installed capacity. Its
product range includes Mercedes Benz trucks and buses of various sizes, fire
fighting vehicles, ambulance, refuse disposal vans as well as vehicle
refurbishment. It is however worthy of note that its production activity is
limited to assembly and spare parts sales.
Incorporated with an
authorized and fully paid up share capital of seven million naira, ANAMMCO was
set up under a joint agreement between Nigeria and Daimlar Mercedes Benz of
Germany. Although it was initially licensed to produce trucks, it later went
into the production of buses.
And they set up with
the objective of manufacturing and marketing Mercedes Benz trucks and buses,
assisting in manpower development through technology training, alleviating
transport problem in the country and , helping to reduce unemployment in the
country. ANAMMCO is located at Emene near
With company operations
organised into six functional divisions and numerous departments under the
division. Its board of director is made up of six members. Anambra Motor
manufacturing company has two workers union –the senior and junior staff union.
1.3 Statement
of the Problems.
It is
important to note that public enterprises in any given economy has important
role to play in the rapid socio-economic development of the country.
Government
owned enterprises and business in Nigeria are established to accelerate the
pace of economic development in which government is the major investor. Due to
the important roles associated with the major public enterprises in Nigeria.
There is need for good management for its efficiency. It is a fact that
government spends large sums of money in setting up these enterprises and thus,
looks forward to making profit. As a result of inefficiency in running these
enterprises, federal government and state government have in the recent past
set up committee which studied the public corporations and parastatals and
recommended privatization and commercialization of some of these enterprises.
These enterprises perform so poorly than privately owned business.
Since public
enterprises are important in growth of any economy, there is the need to
investigate the management problems of public enterprises in Nigeria? Also,
there is need to identify the reasons for criticism levelled against them.
Despite the enormous investment in public enterprises, is Nigeria obviously not
getting good profit for the money invested on these public enterprises. This
gives the decision to this research on “Management Problems of Public
Enterprises in Enugu state” using ANAMMCO as a case study.
1.4 Objectives
of the Study
This study is
aimed at identifying the management problems of public enterprises in Enugu
state with a view to identifying these problems and therefore coming up with
solutions to them as related. This study aims to:
1. Identify the management problems
facing the public enterprises.
2. Exam the influence of the problems on
the corporation in particular and state as a whole.
3. Identify if there is any impact of
government interference on their performance.
4. Give recommendations based on the
findings of the study and suggesting suitable ways and strategies
of improving the managerial efficiency of ANAMMCO.
1.5
Research Questions
1. What are the management problems in ANAMMCO?
2. To what extent do prevailing
management problems effect the operation of ANAMMCO?
3. To what extent does government
interfere in the management of ANAMMCO?
4. What are the solutions to the
management problems of ANAMMCO?
1.6 Significance
of Study
In third
world countries, public enterprises are noted for their inefficiency and waste
of resources. To save the situation, an inquiry is needed in this
sector of our economy especially at this time of economic difficulties facing
the country.
The country
cannot afford to encourage or entertain any kind of economic waste in our
public enterprises since if efficiency is maximized, it will definitely have a
positive effect on the improve standard of living of the general public.
This is the significance if this study.
1. It is hoped that the study of the
management problems in the public enterprises in Enugu state (ANAMMCO) will
help management sort some managerial problems so that both workers and organizations
will benefit.
2. The public enterprises will achieve
more in future.
3. The work would be segment to the
extent that it identifies these problems and adequately proffer viable
solutions to them.
4. It will aid stakeholders of these
enterprises in making adequate and appropriate decisions.
1.7 Scope
of the Study
This study
seeks to cover various management problems identified in the government owned
establishment-Anambra motors manufacturing company. The scope of this
study covers whatever problems that will hinder the profitability of this
company, sustainability and continued growth. They have so many
opportunities to study and require series of contacts in their company.
Also they
have useful data for kind of study that agencies needed in their work for
company.
1.8 Definition
of Terms
1. Management: this is the net of effectively and
efficiently deploying and utilizing the resources of an organization with a
view to achieving organizational goals.
2. Public
Enterprise: Public enterprises are generally used here to refer to government
owned establishment whose main motive for business is not to maximize profit.
3. Efficiency: the act of completing a task or
job without waste of resources.
4. Effectiveness: This is used to measure the extent
that a task is completed with regard to resources maximized.
5. Problems: Problems refer to bottlenecks or
normally or deficiency or lack in experience of an entity.