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Wednesday 21 March 2018

THE IMPACT OF MANAGEMENT STYLE IN THE EFFICIENCY OF SELECTED GOVERNMENT OWNED COMPANIES (A CASE STUDY OF ABUJA MUNICIPAL AREA COUNCIL (AMAC)





CHAPTER ONE

INTRODUCTION



1.1            Background to the Study

The management styles that leaders adopt will have a major influence over all activities in the organization, organizational climate and labour productivity. It is therefore very important for the manager to be aware of the advantages and disadvantages of management style, but also on how it is perceived by subordinates. The management style is an essential element of life, a key factor in the efficiency of organizations (Unamka & Ewurum, 2015).

Throughout life, humans are part of an organization, therefore the need for a proper management style in the organization is one of the most important factors in gaining advantage on the market (Onwuchekwa, 2009). The success of the organizations of the 21st century will largely depend on the search for, discovery and efficient use of talented leaders, respectively of those imaginative people, full of curiosity, perseverance, hard-working, focused on ideas, qualified, capable of encouraging diversity, attention to environmental challenges, with permanent availability to turn vision into reality.

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 organizational performance and managerial ineffectiveness recorded in government owned organizations. This concern perhaps is as a result of the size of economic and social influence of these government institutions on Nigerian development (Akpala, 2007).


Inspite of the huge capital investments in these companies, the results have been extremely poor.  At the managerial and operative performance levels, the problem is also a general one. In an attempt to explain and subsequently liniment 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 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 (Ukiwe, 2015).


This takes us to the meaning of management. Management can be defined as the art or science of working in an organization through being directed by and by directing and co-ordinating the activities of people towards achieve the  goals  of organization (Ejiofor,2015).  Management involves the performance of all the managerial tasks and functions which include planning, organizing, staffing, directing, controlling and co-ordinating of activities to attain optimum result with organization 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 organization can attain or achieve its objectives without skillful managers. Managers and company goes hand in glove. The need for managers arises because companies exist. One cannot exist without the other (Nwabuzor, 2010).
Managers have to perform many roles in an organization 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 (Gibbs, 2013).

(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.



a.     Directive democrat: makes decisions participatively i.e. closely supervises subordinates.

b.    Directive  autocratic:  makes  decisions  unilaterally;  closely supervises subordinates.
c.       Permissive democrat: makes decisions participatively gives subordinates latitude in carrying out their work.

d.    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. 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 the Problem


The nonchalant attitude of the Nigerian workers in the public sector is of a great concern to many. Most workers feel that the public sector’s organization is no man’s job as for that reason, they are careless about the management or efficiency of the government owned organizations (Okeke, 2015).

The effect 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


These problems have attracted incessant criticisms from people. Some managers lack good management capabilities and it is against this background that the researcher seeks to investigate the impact of management style on the efficiency of government owned companies.


1.3            Objectives of the Study


The main objective of the study is to investigate the impact of management style on the efficiency of government owned companies. The specific objectives are:
1.     To know if there is a significant relationship between management style and organizational efficiency.

2.     To proffer possible solution and recommendations



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