MANAGEMENT PROBLEMS OF PUBLIC ENTERPRISES (A CASE OF ANAMMCO)

CHAPTER ONE

INTRODUCTION

1.1. BACKGROUND OF STUDY

In any developing economy, the government is the main initiator and promoter economic development, especially in Nigeria.  In developing countries, governments usually intervene some areas of the economic 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 loge enude oil revenue at a level that never was anticipated.  This new dimension got government involved more with videly diversified investments in areas that span both the traditional public sector and exclusive private sector business. 

As a result of this development in chide oil, agriculture that was the main stay of our economy was later given less attention. Owing to this circumstance, the 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 Hinks 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 is 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) said that prior to independent 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 services at that time was inappropriate for accelerated development and the country was saddened with the problem of running many 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 have rapid development and this is because the management of these enterprises have 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 or 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  BACK GROUND OF ANAMBRA MOTOR MANUFACTURING COMPANY.

           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 stein 9th of seven hundred and ninety – four and an installed capacity of producing seven thousand and five hundred commercial vehicles (T nick assembly) 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 not that its production actinty 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, acceviating transport problem in the country, helping to reduce unemployment in the country. ANAMMCO is located at Emene near Enugu.

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 PROBLEM.

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 enterprise, 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 problems of public enterprises in Nigeria? Also, there is need to identify the reasons for criticism leveled against them. Despite the enormous investment in public enterprises, is Nigeria obviously not getting good value for the money being speny or 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. HYPOTHESES FORMULATION

Ho     There is no need for management inefficiency due to the important roles associated with the major public enterprises in Nigeria.

Hi      There is need for management proficiency due to the important roles associated with the major public enterprises in Nigeria.

Ho     Government does not spend large sums of money in setting up these enterprises.

Hi      Government spend large sums of money in setting up these enterprises and thus, look forward to parastatals and companies within this period.

Ho     There is no need for government enterprises in management efficiency established business in Nigeria government.

Hi      There is need for government enterprises in management efficiency established business in Nigeria government.

Ho     public enterprises are not important in their growth of any economy in which both public and private enterprises operates.

Hi      public enterprises are not important in their growth of any economy in which both public and private enterprises operates.

Ho     National economy was given attention to public sector and private sector.

Hi National economy was given less attention to public sector and private sector.

1.5. OBJECTIVE OF THE STUDY

This study is aimed at 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 to the aforementioned corporation. This study aims to:

A       Identifying some of management problems facing the public enterprises like inadequate finance, poor managerial skills, inadequate infrastructural facilities etc.

B       Examining the influence of the problems on the corporators in particular and state as a whole.

C       Identify if there is any impact of government interference on their performance.

D       Giving recommendation based on the fidings of the study and suggesting suitable ways and strategies of  improving the managerial efficiency.

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 Alford to encourage ort 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.  It is roped 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, and the public enterprises will achieve more in future.

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 requires 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. LIMITATION OF THE STUDY

This is the process, that various management facing in Anambra motors manufacturing company.  Their limitation in terms of time and financi8al logistics. Also lack of encouragement from staff of the organization being studies and administrative bottleneck  act as  impediments to smoth carry –out of this work.

1.9. DEFINITION OF TERMS

WARE HOUSE- A warehouse is a  commercial building for storage of goods. Warehouses are used by many factors, importers and exporters, wholesales, transport business, customs etc.  they are usually large plain buildings in industrial parts of town. They  come equipped with coaling docks to load and unload trucks or sometimes are loaded directly from railways, airports or seaports. they also often lave cranes and forklifts for moving goods.

MARTETING-   Is  the process by which term applied to the craft or making the producers or a product or service with customers, both existing and potential.  It provide any direction to someone hoping  to market his products or  services effectively with that, a more modern explanation of what marketing is and what makes it effective.  Market56ing is  a four step  process that begins with analying and defining a gualified universe of potential users or buyers.

CONSUMER MARKET-      The consumer market deals with the last final customer who buys the product fdor their  aim satisfaction/personal use or student consumer, you could possibly6 be a member of the markets of the markets  for “brand name “ clothing and shoes, cottage book backpacks, newspapers and bicycles.  The consumer market covers a wide variety of people o0f different ages, tender race and etc as long as they also the end user of product.

ENTERPRISE MANAGEMENT SERVICES

This provide complete life cycle and configuration management of enterprise assets through an  integrated toll suite, we provide “cradle to grave” services utilizing a suite of product for4 standardized, repeatable processes for procurement.  The enterprise management service database provides the resource for continually assessing and improving customer service.

SALES-      Sales or the activity of  selling forms an integral part of commercial  activity mastering sales is considered by many as some sort of persuading “art on the contrary, the methodological approach of selling, refers to it as a systematic process of repetitive and  measurable milestones, by which a sales  persons relate his offering enabling the buyer to visualized how to achieve his goal in a economic way.  Selling is a practical implementation of marketing.  It often forms a separate grouping in a corporate structure, employing a separate specialist operatives known as sale men.

RESEARCH QUESTIONS

How management proficiency be determined in public enterprise?

How effectiveness should the public enterprise in business operation?

Can the government tackle the problems of the management of public enterprise in Nigeria?

Could this problems of public enterprise enable  them create employment opportunities  in Nigeria?

In what ways could the  solution s of these problems helps ANAMMCO to improve in their management functions?

What impacts could it  create in the transformation of goods in ANAMMCO productions?

REFERENCES

1.       Abubakar A. (1986) “privatisation: the socio economic implications”. A paper presented at the national symposium  on privatisation, Lagos p.2.

2.       Kindleberger P. (1986) “economic development” new York MC graw- hill book company p.139

3.       Olisa (1985) “performance of Nigeria public corporations”. Problems of Nigeria administration (ed) by Humphrey Nwosu, fourth dimension publishers, Enugu, p.133-135

4.       Onwudumi (1970), “accountability and public corporations”. Studies in Nigeria administration (ed) by D.J Murray (Hurt division edu. Ltd, London), p.43.