THE IMPACT OF MANAGEMENT STYLE ON THE EFFICIENCY OF SELECTED GOVERNMENT OWNED COMPANIES (A STUDY OF ENUGU METROPOLIS )

ABSTRACT
The research titled “The Impact of Management Style on the Efficiency of
Selected Government Owned Companies In Enugu State” started with the
introduction, where the researcher discussed the background of the study
including finding out the impact of management style on the efficiency of
some government owned companies. To find out the management style
adopted by the companies under study, to find out why there is poor
attitude to work in those companies, to find out where there is poor
performance and improper accountability in these companies and to
ascertain the causes of the manager’s inefficiency and instability. The
significance of the study include that the study will be immense help to the
managers to understand the impact of management style on their
companies. The companies covered where Enugu State Water Corporation,
Enugu State Printing and Publishing Company and Sunrise Flour Mill.
Under the literature review, the researcher discussed the theoretical
framework of the study, the objective of governments in business,
performance of government owned companies in Nigeria etc. The
population and the sample size used was100 employees from the
three companies. The sample size was determined using the Yaro
Yammani’s Formula. The major instrument of data collection is the
questionnaire. The researcher presented the data in tables using
frequencies, the hypothesis were tested using the Chi-Square formula. The summary of
findings include that the management style adopted by these three
companies were mainly permissive autocratic and directive democratic.
The researcher concluded by saying the management style has a great
impact on the efficiency of government owned companies. The
accommodations included that the state government owned companies
should be managed by people who have the necessary experience and
training.

CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The problem of management in effectiveness and bad attitude
to work among Nigerians is widespread in government owned
companies. There has been growing concern among
Nigerians on the poor organisational performance and
managerial ineffectiveness recorded in these organisations.
This concern perhaps is a result of the size of economic and
social influence of these government institutions on Nigerian
development. (Akpala, 1990:193).
Inspite of the huge capital investments in these companies,
the results have been extremely poor. As a result of
government, as trustees for the ultimate owners of public
enterprises have appointed tribunals, commissions and panels
to find ways and means to improve the efficiency and
effectiveness of the enterprises (CMD, 1985:5).
At the managerial and operative performance levels, the
problem is also a general one. In an attempt to explain and
subsequentlyliniment government owned companies, two
schools of thought emerge. One is of the opinion that the
problem is from ill implication of the known theories and
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principles of management in government owned companies.
The other holds that the problem stems from not applying
management philosophy that is based on Nigerian culture.
This takes us to the meaning of management. Management
can be defined as the art or science of working in an
organisation through being directed by and by directing and
co-ordinating the activities of people to achieve one’s personal
goals in the context of the goals of one’s organisation
(Ejiofor,1985:3).
Management involves the performance of all the management
functions which include planning, organizing, staffing,
directing, controlling and co-ordinating of activities to attain
optimum result with organisation resources. Management is
concerned with the achievement of objectives, performances
result, success, efficiency and effectiveness.
The survival of any company in realizing its objectives, depend
among other things in proper management of its human and
material resources.
No company or organisation can have its activities moving on
without a manager. Managers and company goes hand in
hand. The need for managers arises because companies
exist. One cannot exist without the other.
Managers have to perform many roles in an organisation and
how they handle various situations will depend on their style of
management. A management style is an overall method of
leadership used by a manager.
There are two sharply contrasting styles that will be broken
down into smaller subsets later.
(i) Autocratic
(ii) Permissive
Each style has its own characteristics
Autocratic:leaders make all decisions unilaterally.
Permissive: leader permits subordinate to take part in decision
making and also gives them a considerable degree of autonomy
in completing routine work activities combining those categories
with democratic (subordinates are allowed to participate in
decision making) and directive (subordinates are told exactly how
to do their jobs) styles gives us four distinctive ways to manage
(IEBM, 1998:201).
Directive democrat: makes decisions participatively i.e. closely
supervises subordinates.
Directive autocratic: makes decisions unilaterally; closely
supervises subordinates.
Permissive democrat: makes decisions participatively gives
subordinates latitude in carrying out their work.
Permissive autocrat: makes decisions unilaterally gives
subordinates latitude in carrying out their work.
Managers must also adjust their styles according to the situation that
they are presented with. Below are four quadrats of situational
leadership that depend on the amount of support and guidance
needed.
Telling: work best when employees are neither willing nor able to do
the job (high need of support and high need of guidance).
Delegating: works best when the employers are willing to do the job
and know how to get about it (low need of guidance and low need of
support).
Participating: works best when employers have the ability to do the
job, but need high amount of support (low need of guidance but high
need of support).
Selling: works best when employees are willing to do the job, but
don’t know how to do it (low need of support but high need of
guidance).
The different styles depend on the situation and the relationship
behaviour (amount of support required and task behaviour
(amount of guidance required).
1.2 STATEMENT OF PROBLEM
The effect of management style on the efficiency of government
owned companies cannot be discussed without looking into the
problems militating against these management styles. These
upsetting difficulties and problems are:
a) Poor attitude to work/poor performance
b) No proper accountability
c) Inefficiency
d) Wrong management style
e) Poor quality service (Norber M. Ile)
These problems have attracted incessant criticisms from people.
Some managers lack good management capabilities.
It is all these that made the researcher to endeavour to determine
the impact of the management style on the efficiency of government
owned companies.
1.3 OBJECTIVES OF THE STUDY
The purpose of the study is as follows:
1. To find out the impact of the management style on the
efficiency of some government owned companies.
2. To find out the management style adopted by these
companies.
3. To find out why there is poor attitude to work in these
companies.
4. To find out why there is poor performance and improper
accountability in these companies.
5. To ascertain the causes of manager’s inefficiency and
instability.
6. To make recommendations.
1.4 RESEARCH QUESTIONS
1. What is the impact of management style on the efficiency of
government owned companies?
2. What management style is adopted in Enugu State Water
Corporation and Enugu State Star Printing and Publishing
Company Limited?
3. Why is there poor attitude to work in these companies?