THE EFFECT OF SUCCESSION MANAGEMENT ON CORPORATE SURVIVAL AND GOAL ATTAINMENT IN THE NIGERIAN OIL AND GAS INDUSTRY

29

THE EFFECT OF SUCCESSION MANAGEMENT ON CORPORATE SURVIVAL AND GOAL ATTAINMENT IN THE NIGERIAN OIL AND GAS INDUSTRY

ABSTRACT

The study examined the effect of succession management on corporate survival and goal attainment in the Nigerian oil gas industry. Some selected companies within the industry were assessed to ascertain the extent to which succession management could function as a strategy for growth and profitability in the Nigerian oil and gas industry. The study verified whether succession management encourages healthy competition and advance continuity of corporate objective in Nigerian oil industry. The study found out whether gaps in leadership pipeline, difficulty in filling key employee’s positions, inadequate career path and ineffective line management were the key challenges succession management is designed to address in Nigerian oil industry and its (succession management) role in curbing these challenges. It also ascertained the extent to which the supply of talented, experienced, motivated and high morale staff ensured prospects in Nigerian oil industry. The study verified the degree to which succession management engendered significantly labour retention among employees in Nigerian oil and gas industry.  The instruments for data collection used were structured questionnaire and oral interview. The questionnaire was structured in line with likert-five point scale and validated using the face-to-face approach. The instruments were checked for reliability using the pilot survey method. The data collected from the responses to questions in the questionnaire and structured oral interview were analyzed using quantitative and qualitative methods. The test of hypotheses was performed using chi-square distribution, Analysis of Variance (ANOVA) one-way test and Pearson Product Moment Correlation Coefficient(r=0.84). It was discovered that succession management functioned as a strategy for growth and profitability of the Nigerian oil and Gas industry  (Fcal=6952.68>Ftab=3.00,p<0.05). It was revealed that succession management significantly engendered healthy competition and advanced achievement of corporate mission in the Nigerian oil and Gas industry(Fcal=6930.50>Ftab=3.00,p<0.05). The study revealed that gaps in leadership pipeline, difficulty in filling key employee’s position, inadequate career paths and ineffective line management were the major challenges facing the Nigerian oil and gas industry (Fcal=1882.01>Ftab=3.00,p<0.05). It was discovered that the internal supply of trained, experienced and motivated talents who could create the necessary competitive edge and sustain the companies through turbulent and uncertain business environment were the key prospects of succession management(Fcal=2094.23>Ftab=3.00,p<0.05). The study revealed that succession management engendered significantly labour retention among employees in Nigerian oil and gas industry(Fcal=7403.66>Ftab=3.00,p<0.05). Scholars have extensively discussed the effect of succession management on the survival of organizations. They have also discussed the principles and operational procedures of succession management. However, there are dearth of relevant information on the implementation of succession management in Nigerian oil industry and its effect on the survival of the industry. The study found that there was a gap between the perceived and actual position of succession management in the oil industry which serves as a wake up call for the industry. It was recommended that the industry should evolve strategies aimed at identification of where and when leadership pipeline is running dry, planning and development of management so as not to lack the capability to compete in the future, and creating changes to refocus the firms position in the market place. All organisations need strong leaders in order to maintain continuity and remain relevant in the ever turbulent environment. Therefore succession management ensures the corporate survival and goal attainment in Nigerian oil and gas industry.

TABLE OF CONTENTS
                                                                  
 Declaration                                                                                                                             ii         
Approval                                                                                                                                 iii        
Dedication                                                                                                                              iv
Acknowledgements                                                                                                                v
Abstract                                                                                                                                  vii
List of Tables                                                                                                                          xi
Abbreviations                                                                                                                         xii
List of Figures                                                                                                                         xiii
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study                                                                                                  1      
1.2 Statement of the Problem                                                                                                             9
1.3 Objectives of the Study                                                                                                    11
1.4 Research Questions                                                                                                           11 1.5Research Hypotheses                                                                                                         11                                  
1.6 Significance of the Study                                                                                                             13
1.7 Scope of the Study                                                                                                           13
1.8 Limitations of the Study                                                                                                   14
1.9 Profile of Selected Organizations                                                                                     15
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Introduction                                                                                                                      21        2.2 Conceptual Framework                                                                                                     21
2.2.1 The Concept of Succession Management                                                                      21
2.2.2 The Concept of Goal                                                                                                      21
2.2.3 The Concept of Oil Industry                                                                                          23
2.2.4 The Concept of Corporate Governance                                                                         23
2.2.5 The Concept of Corporate Social Responsibility                                                          24
2.3 Theoretical Framework                                                                                                     25
2.4 Empirical Review                                                                                                               34
2.4.1 Empirical Review Related to Objective One                                                                  34
2.4.2 Empirical Review Related to Objective Two                                                                 35
2.4.3 Empirical Review Related to Objective Three                                                               39
2.4.4 Empirical Review Related to Objective Four                                                                 41                              
2.4.5 Empirical Review Related to Objective Five                                                                45
2.5  Summary of Review of Related Literature                                                                     46
CHAPTER THREE: METHODOLOGY
3.1 Introduction                                                                                                                      59
3.2 Research Design                                                                                                               59
3.3 Type of Data and the Source                                                                                            59
3.4 Population of the Study                                                                                                    60
3.5 Sampling and Sampling Procedure                                                                                   60
3.6 Method of Data Collection                                                                                               61
3.7 Method of Data Presentation and Analysis                                                                      61
3.8 Validity of Research Instrument                                                                                      62
3.9 Reliability of Research Instrument                                                                                   63
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Introduction                                                                                                                       66
4.2 Data Presentation and Analysis                                                                                        66
4.3 Test of Hypotheses                                                                                                           77                                                        4.4 Discussion of Findings                                                                                                     82
4.4.1 Discussion of Findings Related to Objective One                                                         82        
4.4.2 Discussion of Findings Related to Objective Two                                                        87            
4.4.3 Discussion of Findings Related to Objective Three                                                      89
4.4.4 Discussion of Findings Related to Objective Four                                                        94
4.4.5 Discussion of Findings Related to Objective Five                                                        97
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND           RECOMMENDATIONS
5.1 Introduction                                                                                                                      105
5.2 Summary of Findings                                                                                                       105
5.3 Conclusion                                                                                                                        106
5.4 Recommendations                                                                                                            106
5.5 Contribution to Knowledge                                                                                              107
5.6 Areas for Further Research                                                                                               109
Bibliography                                                                                                                           110
Appendixes                                                                                                                             121