Poor Management in an Organization; Causes, Effects and Possible Solution
Chapter One
OBJECTIVES OF THE STUDY
This work is conducted to achieve the following goals or objective
- To determine the causes of poor management in NTA.
- To determine whether workers do not implement management policies in NTA.
- To evaluate if finance options affect NTA.
- To determine whether employing incompetent hands leads to an organization’s failure.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
BUSINESS FAILURE
Business failure occurs when a business has reached a point where it can no longer continue trading without encountering further problems. A failed business, according to Bickerdyke, Lattimore and Madge (2000), is the one that ceases operation and exits the business population because it is no longer a viable concern. They also describe business failure as discontinuance of business, because it is no longer a viable concern. Business failure, commonly characterized by insolvency, is a situation where the business is unable to meet its financial obligations. Although failure happens to businesses of all sizes, either big or small, the businesses are exposed to bigger threats, because they simply do not have the back-up of extra finance and resources that larger companies possess. “It is a fact that only about 50% of businesses are still trading after their first three years from initial set up”(ROC Connect, 2008).
Business failure can be caused by many factors. Clark (1997) opined that, three critical issues of money, management and marketing are the general causes of business failure. Holland (1998) explained that the money aspect has to do, mostly, with expenditures that may be unforeseen; the management aspect is associated with situation of consideration for factors other than qualification experience and skill; and marketing, with respect to the push and the pull of the market. From the study by Khan (2006), the main reasons that businesses fails are poor business planning, poor financial planning, poor marketing, and poor management. The first relates to manager’s inability to properly identify business objectives and means of achieving them, before going into business. The second is more about fund management, taking into consideration the unique financial dynamics of the intended business. The third is about making the products and services known to the established target audience and finally the various management flaws, for example some owner-managers lack ability, refuses to seek help and fails to delegate appropriately, as they run the businesses.
FACTORS RESPONSIBLE FOR THE POOR MANAGEMENT IN NTA
The rate of poor management in an organization is so great, even those that do not go outright moribund are terribly limping. Dickson (1971) opined that “each year about 450,000 new businesses get started ate the end of the year almost 400,000 of these new firms are no longer in operation”. However Inang and Ukpong (1992) assert that the major problems of small scale enterprises include inadequate finance and other problem.
INADEQUATE FINANCE: The major source of financing for small scale enterprises the world over is the owners capital. In Nigeria as in many other developing countries, this problem is accentuated by the unwillingness of sole proprietors to allow the participation of outsiders in what is usually considered personal/family venture.
POOR STRATEGIC PLANNING: Ojiako,(1987) noted that sound
planning proceeds sound decision making. According to Rogers (1964) he sees planning as a luxury which could be afforded only by large company. Even when they plan, the tendency is that they concern themselves only with short-term plan while they shy away from long term plan. As a result lack of the use of modern method of gathering and analyzing data constitutes a weak point in the business strategic planning effort.
PROBLEM OF MISMANAGEMENT OF RESOURCES: Among the critical problems that encumber the performance of an organization is mismanagement. Hence Edemreyor stressed that “one of the major problem area that impede an organization in Natioal development is management. They fail to exercise high quality of management because they are tradition bound and are therefore insensitive to the need for change both in policies and practical Effiong, (1980).
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
This chapter will show the design, population of the study. Sampling procedures as well as the way by which the size is determined/methods by which the research data will be collected and ways/methods of analyzing data.
RESEARCH DESIGN
Research design has to do with the development of strategies for finding out something, (Anyanwu 2000:39).Research design deals with how data are sourced, how the subject matter of the study are brought within the scope and how they are employed within the scope and how they are employed within the framework of the research settings. In this study, the researcher would use the “Survey method” of research namely personal interviews, questionnaires and observation.
POPULATION OF THE STUDY
The population of this study will be composed of the management and non management of NTA. About fifty (25) management staff and hundred and fifty (75) non-management staff of NTA nugu have been chose to constitute the population of the study.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
DATA ANALYSIS
The response from the questions will now be analyzed. It is also important to state that some sub-questions developed from the research question were analyzed.
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
SUMMARY OF FINDINGS
A lot of findings were made in the course of carrying out this research work. And they are summarized thus; that poor management affects the growth of small scale enterprises and that management determines the causes of the failure of the an organization in Nigeria and that lack of implementation of management policies also poses a poor management in NTA. It can also be summarized that sometimes, management marketing strategies and the profitability of the organization have been improved because of the competent hands that handle business activities in the organisation.
IMPLICATIONS
The findings made in the course of carrying out this work have a lot of implications. The fact that poor management affects the growth of small-scale enterprises implies enterprises in Nigeria are bound to collapse.
Also, the fact that management determines the causes of the poor management in an organization in Nigeria implies that the problems of such enterprises are half solved. Given that management develops policies for solving the problem of the small scale enterprises, it implies that most of the enterprises will be properly guided in the pursuit of their goals. The fact that management sometimes has poor attitude to training implies that the organization’s human resources has to wake up in the performance of their duties.
CONCLUSIONS
It is hereby concluded that:
- Poor management affects the growth of small scale enterprise.
- Management determines the cause of poor management in an organization in Nigeria.
- Organisation have poor attitude to training
- Government does not always create conducive environment for NTA.
- Workers sometime implement management policies
- Management develops policies for solving the problems of small scale enterprises.
- Competent hands are sometimes involved in business strategies.
- Management does not always have financial management strategies.
- The profitability of small scale organizations have not greatly improved.
- Marketing strategies and financial strategies are not strong enough to run the business.
RECOMMENDATIONS
The researcher therefore recommends the following:
- That poor management of business resources should be avoided.
- Organizations should have good attitude to training.
- Management should always determine the causes of poor management in an organization in Nigeria.
- Government should try as much as possible to provide/create a conducive environment for business activities.
- Workers should ensure that they abide by the rules, regulations, policies laid down by the management.
- Management should have a good financial strategies which encompasses revenue generation and how it should be spent.
- Organizations should always strive hard in order to make sure that the organizations profit base is increased.
- Management should have a viable marketing strategy.
Their should be a laid down procedure on how to solve problems facing small scale enterprises.
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