This study examined management style and organizational performance in Nigeria using Abi Local Government Transport Company (Abitrans) Itigidi, Cross River State as a study area. Despite all effort by management of business organizations in Nigeria in adopting different strategies to improve their performance and achieve pre-determined objectives, there is still a wide gap between the actual performance and expected performance. Hence, the objective of the study was to establish the relationship between management style and the performance of Abi Local Government Transport Company. The research adopted survey research design; the population of the study consist of the entire staff of Abi Local Government Transport Company which is made up of two hundred (200) staff. Data for the study were collected using structured questionnaire. Data collected were analyzed using chi-square statistical technique. The findings revealed that there is a significant relationship between management style and the performance of Abi Local Government Transport Company. It was also discovered that the management of Abitrans does not involve its staff in the decision making process of the organization, and undynamic works method was equally a managerial strategy adopted in the organization. Staff was not equally allowed to use their discretion and initiative in performing their duties when the need arises and all this has affected their employees performance negatively. Consequently, it was recommended that the management of Abi Local Government Transport Company, Itigidi should at all times adopt an involving and participatory managerial style in order to motivate its staff and enhance their performance towards achieving their predetermined goals. Management should not be too rigid in the issuance of work method to allow them tap from the wealth of experience of some employees on technical issues. Staff should be allowed to use their initiative in solving some job problems when required as this will save time and give them sense of recognition. (Word count: 308).
TABLE OF CONTENTS
TITLE PAGE i
TABLE OF CONTENTS vi
LIST OF TABLES viii
LIST OF FIGURE ix
CHAPTER ONE – INTRODUCTION
- Background to the study 1
- Statement of the problem 5
- Objectives of the study 7
- Research questions 7
- Statement of hypotheses 7
- Significance of the study 8
- Scope and limitations of the study 8
- Definition of terms 9
CHAPTER TWO: LITERATURE REVIEW AND THEORETICAL
2.1 Definition of management 12
2.2 Management style 13
2.3 Types of management style 15
2.3.1 Autocratic management style 16
2.3.2 Democratic management style 17
2.3.3 Laissez-faire management style 18
2.3.4 Persuasive management style 19
2.3.5 Paternalistic management style 20
2.4 The concept of organizational performance 21
2.5 Performance management 23
2.6 Non-involvement of employees in decision making and employee’s
2.7 Management variables and organizational performance 26
2.8 Performance of public enterprises in Nigeria 28
2.9 Summary of literature reviewed 30
2.10 Theoretical framework 30
2.10.1 The human relation theory 31
2.10.2 Abraham Maslow theory of motivation (Maslow needs hierarchy) 33
2.11 Historical background of Abi Local Government Transport Company 37
CHAPTER THREE: RESEARCH METHODOLOGY
- Research design 39
- Population of the study 39
- Sampling procedures and sample size determination 39
- Sources of data and data collection method 40
- Research instrument 41
- Validity and reliability of instrument 41
- Data analysis technique 42
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND
DISCUSSION OF FINDINGS
- Data presentation 44
- Data analysis and interpretation 51
- Test of hypotheses 68
- Discussion of findings 74
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND
- Summary of findings 83
- Conclusion 84
- Recommendations 84
LIST OF TABLES
TABLE 4.1 Sex distributions of respondents in Abi local government
Transport Company, Itigidi, Cross River State 46
TABLE 4.2: Distribution of respondents according to age 47
TABLE 4.3 Distribution of respondents by length of service in Abi local
Government transport company Itigidi, Cross River State 48
TABLE 4.4 Distribution of respondents according to education qualifications 49
TABLE 4.5 Distribution of respondents in categories 50
TABLE 4.6 You participate actively in the decision making process of your
TABLE 4.7 Your organization seeks your opinion in taking major
decisions about the operations of the organization 57
TABLE 4.8 Your non-involvement in decision making process of Abitrans
does not significantly affects the way you perform your duties 58
TABLE 4.9 Lack of employees imputs does not contribute to some poor
management decision in your organization 59
TABLE 4.10 The management of your organization design work method
and employees act strictly on it 60
TABLE 4.11 Staff performance has been hampered by undynamic work
design by management of Abitrans 61
TABLE 4.12 Total adherence to management work method contribute to
the poor performance of your organization 62
TABLE 4.13 Undynamic work method is a pertinent management
performance strategy adopted in your organization 63
TABLE 4.14 Management allow employees some discretion to address some
job challenges when the need arises 64
TABLE 4.15 Your inability to use non-acceptance of your initiative in
carrying-out your duties affects your relationship with the
management of your organization 65
TABLE 4.16 The productivity of your organization has decreased because of
lack of use of initiative by staff in carrying out their work 66
TABLE 4.17 Management has motivated you by allowing you some measures
of discretion to deal with some challenges of your work 67
LIST OF FIGURE
FIGURE 1: Maslow’s need hierarchy 34
- Background to the study
Every organization is created with some specific predetermined objectives which it seeks to attain through the use of available human and material resources with the desire to enjoy high productivity level and performance. Human beings who constitute the most integral part of every organization by using and converting other factors of production into finished goods and services, become members of an organization inorder to achieve some targeted personal goals in the course of working for their organization. This personal desires, influences their behaviours in carrying-out their duties as staff which will either enhance the performance of their organization or decline it performance. This has led various organizations to adopt difference management strategies in managing human and material resources available to them, with the desire to achieve high performance.
According to Michael (2011) Effective managerial style is the one that focuses on the development of its employees and providing their needs. He further stated that management style is the instrument that determines the success and failure of any organization. Jeremy, Melinde and Ciller (2012) stated that the relationship between managers and their subordinates, and the quality of subordinates performance, are significantly determined by the management style adopted by the manager.
Since human being could become member of its organization with the hope of attaining some specific individual goals, the rate to which they participate actively as members depends on how they are convinces that their association will help them attain their goals. To this end, employees support its organization if he is convinced that through it his individual personal goals could be realized: if not, the employee’s performance will be retard.
Organizational performance which is a periodic evaluation of an organization to determine the level of goal attainment is to know whether an organization is doing well or not in relation to some set standard. To determine the performance of any organization, there are some indicators that tell whether an organization is achieving its objectives or failing. These indicators are seen in the ability of any organization to make good profit, satisfy its workers, improve rate of sales and revenue, financial growth, competitiveness of the organization products and services, public image, goodwill and leader in technology, high rate of turnover among other variables. Managers of organizations therefore adopt different managerial methods in leading subordinates to achieve higher productivity and performance.
Previous researches have shown that every organization strives to look for the best way to manage and gain improves productivity from its workforce for remarkable performance. This managerial style is known on how an organization makes decision and assigning various functions to subordinates in an organization which has direct influence on the behaviour of individuals in working towards the achievement of the organizational objectives.
Performance of any organization also assesses or measure real output or productivity of its workforce at a given time compare to the expected performance. In Nigeria today, while some organizations still enjoys high commitment and productivity rate from its staff, others are experiencing low workers morale and poor performance from its workforce. This differential among the performance of organizations in Nigeria is traced to some managerial variables that either motivate employees in committing themselves to work effectively for their organization or retard their commitment and motivation in working for their organization which inturn affects the performance of any organization positively or negatively. The rate to which an organization as a social entity with the resources and means at its disposal achieve its objectives or goals without hindering its means and resources and without placing undue hardship on its subordinates, portray the effective performance of such organization.
Abi Local Government Transport Company (Abitrans) as a public transport outfit was established to provide effective transport services for people of the area, and also serve as a revenue generating enterprise for Abi Local Government Council in carrying-out its statutory obligations for its citizens. To examine the performance of Abi Local Government Transport Company, it is expected that, there would be effective transport services for the people of Abi, improved internally generated revenue for Abi local government council, ability of Abitrans to compete favourably with other transport companies, increased number and quality vehicles, satisfied workforce, high rate of turnover, less dependence on council for the company’s servicing among other factors. The researcher observed that Abi Local Government Transport Company have not been able to provide effective transport services for the people, failed in revenue generation for council, lack patronage by commuters, unsatisfied workforce, bad vehicles at their disposal among other poor performances indicators. This has led to so many criticisms of the transport company by well-meaning Abi indigenes.
From the above observation, the researcher suspected that, the management of Abi Local Government Transport Company has not been able to adopt an effective managerial method that will motivate and enhance the commitment of its employees to give their best to the realization of the organization’s objectives. Okpata (2004) stated that managers needs to discover how best to persuade employees and thus, secure their commitment to the goals of the organization. He also stated that for an organization to succeed in an increasingly competitive and turbulent environment, it needs the full commitment of all participants in the organization.
In 2008, the Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) reported that the reason why business organizations in Nigeria die before their fifth anniversary is as a result of inappropriate managerial methods adopted by this organization. Akpala (1998) states that the rate at which employees of an organization is committed in the harnessing of the resources of an organization is greatly determined by how effective managers of such organization understands and apply appropriate managerial method in carrying out their role as managers. Thus, effectiveness in resources coordination, utilization and improvement of organizational performance relies on some managerial variables.
According to Nwankwo (1998), the ability of management to understand why workers behave the way they do, and the ability to persuade them to behave in a specific manner are inter-related qualities which is very essential for organizational performance. In recent time, many organizations in Nigeria business environment have experienced issues of immoral and unethical management practices, poor staff development, poor incentives, poor management –employees relationship, and series of financial distress syndrome which has led to many organization folding up. Abi Local Government Transport Company as one of those organizations experiencing poor staff performance may be as the result of the organization’s inability to take cognizance of the management strategy adopted by their mangers. It is on this premise that this research work examined management style and the performance of Abi Local Government Transport Company Itigidi, Cross River State.
- Statement of the problem
Abi Local Government Transport Company (Abitrans) was established in 1993 by the local government council with the aim of providing effective transport services to people of the area in a more subsidized rate, and also generates revenue internally for the local government council in discharging its functions to people of the area. This was aimed at reducing the suffering of Abi inhabitants in transport services and also reducing over dependent of the council on federal statutory allocation which is not always enough to provide the needed services of council to the local people as a result of limited funds.
Today Abi Local Government Transport Company Itigidi has one hundred and thirty (130) vehicles that are registered with the company in which Abi Local Government Council has eighty six (86) vehicles, while the other forty four (44) vehicles belong to private individuals who came to register their vehicles with the company for road coverage. It is expected that this vehicles should be in good condition to enable the company provide the needed transport services for people of the area, and also boost internally generated revenue of Abi Local Government Council. This is because if this vehicle does not move, it affects the movement of people and revenue generation of the council. The researcher observed that the management of Abi Local Government Transport Company does not repair their vehicles whenever they are involved in accident or get spoiled as numerous of their vehicles were seen parked and rusted in the local government secretariat and roadsides.
It was also noticed that the organization is characterized by an unchanging work method that does not allow constant changing dynamics. These has constituted a problem to the performance of Abi Local Government Transport Company because modern organizations are known for constantly changing dynamics in the area of customization, competitiveness, reliance on modern technologies, and the increase in knowledge of the economy among many other challenges.
Abi Local Government Transport Company has been seen not being able to compete favourably with some emerging transport company in their business environment. This is because, other transport outfits offers better services interms of quality vehicle, moderate charges, more committed staff, and digitalized services which were lacking in Abi Local Government Transport Company. The poor performance of Abi Local Government Transport Company has also been revealed in the organization’s monthly revenue remittance to the local government council which has shown a sharp decline between 2000-2015.
Abi Local Government Transport Company between 2000-2010 when all their vehicles and staff were working in full capacity and good relationship between management and staff, the organization was remitting five hundred thousand naira (N500,000) to the council. But between 2010 till date where there are cases of numerous spoiled and parked vehicles, and various complains of poor staff welfare, the organization is only remitting one hundred thousand naira (N100,000) to the local government council. This has constituted a social problem because the organization is funded with public resources meant for the provision of essential services to the people.
The question is; what could be responsible for the declining performance of Abi Local Government Transport Company? Could management style be responsible for the declining performance of Abi Local Government Transport Company? Examining management style and the performance of Abi Local Government Transport Company was the purview of this study.
- Objectives of study
The main objective of this study was to examine the relationship between management style and the performance of Abi Local Government Transport Company (Abitrans). Specifically, the study sought to:
- Examine the relationship between non-involvement of employees in decision making and the performance of Abi Local Government Transport Company.
- Examine the relationship between undynamic work method and the poor performance of Abi Local Government Transport Company.
- Examine the relationship between non acceptance of staff initiative and the performance crisis of Abi Local Government Transport Company.
- Research questions
The following research questions were drawn for this study;
- How does the non-involvement of employees in decision making affect the performance of Abi Local Government Transport Company?
- How has undynamic work method contributed to the poor performance of Abi local government transport company?
- How has the non-acceptance of staff initiative contributed to the performance crisis of Abi local government transport company?
- Statement of Hypotheses
The following null hypotheses were formulated to guide this study:
- There is no significant relationship between non-involvement of employees in decision making and the performance of Abi local government transport company.
- There is no significant relationship between undynamic work method and the poor performance of Abi Local Government Transport Company
- There is no significant relationship between non acceptance of staff initiative and the performance crisis of Abi Local Government Transport Company.
- Significance of the study
The study, it was hoped would contribute in aiding the government, corporate organizations, entrepreneurs, researchers and the academia generally. This will provide an insight and understanding to the government and managers of organizations on how best to manage their workforce or subordinates to bring about organizational growth and performance of business organizations in Nigeria.
It will help managers of various organizations to generate ideas and solutions to problem of adopting the best managerial style in their organization in order to achieve desired goals and objectives. It will also help researchers to know more about management styles as a tool for improving employee’s performance.
To the academia, the findings of the study will contribute to available literatures on the current scenario of management styles and its level of contribution to organizational performance. The result of the study will be of great benefit to future researchers who will depend on their contributions to existing knowledge for further research.
- Scope and limitations of the study
The scope of the study could have been very wide if it has been carried out in the entire business organization in Nigeria. For this reason, it was necessary to have a concentrated area of study which was restricted to evaluation of management related variables and the performance of Abi Local Government Transport Company. The organization is owned by Abi Local Government Council of Cross River State, Nigeria.
The major limitation of the study was the problem of getting information from the organization under study. As a public organization, there was always the fear of giving out vital information to the public as such vital information could be used against them by contending organizations. This problem was overcome through the issuance of letter of introduction from my head of department to the organization which letter persuaded them to corporate with the researcher.
- Definition of terms
Management style: This is a specific manner in which an organization makes decision and how these decisions are related to subordinates in an organization. It is also a specific practice used to direct the activities of an organization.
Organization: An organization is a social entity comprising interdependent and inter-related individuals coming together to achieve a common objectives of an enterprises. This implies two or more persons who agree on a common target and pool their resources together towards achieving predetermined goal.
Organizational performance: Organizational performance deals with the measurement of real output or result of an organization at a given time compared to the expected performance. It measures the real goods and services produced by the workforce of an organization and the expected production. Organizational performance is also seen in satisfied workforce, increase in profit, and use of modern technology and high level of patronage.
Employees’ commitment: Employees commitment is the degree of willingness an individual exhibit towards doing his work, and how effective and efficient he desire to work for his organization. It is also known by the level of productivity and organizational performance in terms of output. Employees commitment deals with effectiveness of staff, punctuality to work, desire to work more, improve productivity and good contributions to their organization.
Performance crisis: This is the inability of Abi Local Government Transport Company to attain its predetermined objectives of providing effective transportation services to people of the area and equally failed in revenue generation to the local government council as the council continues to experience declining internally generated revenue which has affected the council in the discharge of its statutory duties.
Non staff initiative: It is the unacceptability of staff using his discretion in performing his duty in an organization without management directives. It entails absent of non-formal initiative or discretion by staff of an organization in performing their duties.
Work method: This is a statement that gives specific directives on how employees carry-out their duty or work related task in an organization. Imposition of work method simply means that employees adhere strictly to the directives of management on how work should be done without using their discretion in performing their duties.
Non-involvement of employees in decision making: This is the inability of an organization to consult or accept any imput from subordinates in making decision for the organization as the function of decision making is an exclusive reserve for management. It is a situation when employees are not allowed to participate in decision making of their organization. Management takes decision unilaterally and imposes it on their employees without seeking their views or contributions.
Staff initiative: This is the ability of the management of Abi Local Government Transport Company to allow its employee’s to use their discretion in resolving some job challenges encountered in carrying out their duties.
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