CHAPTER ONE

INTRODUCTION

• Background of the Study

In modern times where uncertainty is the order of the day, there are issues confronting the society and businesses existing in the society, and organizations that are proactive and innovative and takes the right decision  could be the organization that survives in this dynamic and ever changing business environment.

Innovation play a key role for the survival of firms; innovation “strikes not at the margins of the profits and the outputs of the existing firms but at their foundations and their very lives” (Schumpeter, 1942: 84). More recently this view has been stated by Baumol (2002): “…under capitalism, innovative activity…becomes mandatory, a life-and-death matter for the firm and innovation has replaced price as the name of the game in a number of important industries” (Baumol, 2002: 1). Innovation matters for all different types of firms, new as well as established firms. As Schumpeter emphasises, innovation is a powerful vehicle for new firms to successfully enter the market and undermine the established firms. As well, established organizations need innovating to maintain their competitive position in the face of new and emerging or ‘disruptive’ technologies (Christensen, 1997).

Innovation is a driver of economic growth. It is linked to increased welfare, the creation of new type of jobs and the destruction of old ones. For firms, innovation is important for a number of reasons including survival, growth and shareholder return (Banbury and Mitchel, 1995). In a recent book, Baumol noted that “virtually all of the economic growth that has occurred since the eighteenth century is ultimately attributable to innovation. The Economist Intelligence Unit undertook a survey in 2007 which noted that long-run economic growth depends on the creation and fostering of an environment that encourages innovation. It is argued that countries that generate innovation, create new technologies and encourage adoption of these new technologies grow faster than those that do not. Innovation Nation (2006) states that innovation is essential to the UK’s future economic prosperity and quality of life. To raise productivity, meet the challenges of Globalization and to live within environmental and demographic limits, the UK must excel at all types of innovation. There are a number of surveys that have recently been published which confirm the importance of innovation. For example, respondents to the Boston Consulting Group for their report “Innovation 2010 – A Return to Prominence and the Emergence of New World Order” ranked innovation as a strategic priority with 26% citing it as a top priority and a further 45% ranking it as a top three priority. Research undertaken by McKinsey during 2010 supports this with their survey reporting that “84 percent of executives say innovation is extremely or very important to their companies’ growth strategy.”

To be resilient, organizations rely on strong leadership, their awareness and understanding of their operating environment, their ability to manage vulnerabilities and their ability to adapt in response to rapid change. Alastir (2010) asserts that as our society becomes more complex and independent, we are becoming more vulnerable to disruptive events from threats and hazard.

He further contends that the aim of building resilience is to remove or reduce the exposure of organizations to threats and hazards by developing protective measures which aim to reduce the likelihood and consequences of a disruptive event, by preventing when possible, responding effectively and efficiently when an event occurs, and by recovering as quickly and completely as possible. Seville et al. (2008) discuss organizational resilience as an organization’s “… ability to survive, and potentially even thrive, in times of crisis”. Organizational resilience is a continuously moving target which contributes to performance during business-as-usual and crisis situations (Mitroff, 2005). It requires organizations to adapt and to be highly reliable (Weick and Sutcliffe, 2007), and enables them to manage disruptive challenges (Durodie, 2003).

In the past two decades, attention of business managers and scholars have continued to shift towards the importance of innovation in building organizational resilience. Innovation is one of the instruments that leverages a firm upon entering new and existing market, and provide the company with a competitive edge. Innovation opens new ground and opportunities in both local and international markets by offering new products and ideas to both local and foreign markets. As businesses operate over a period of time, they face different kinds of challenges in the environment; some of these challenges if an organization is not resilient could bring about the end of these organizations.

Plessis (2007) delineates innovation as a formation of new knowledge which helps the new business return, which has purpose to make organization internal business process and structure more sophisticated and produce the market acceptable product and services. The survival of an organization is to great deal associated with how resilient an organization can be to withstand these various challenges.

In some cases people interchangeably use innovation and creativity without knowing the big difference between the two. Though innovation involves creativity Amabile et al(1996), it takes a lot more than creativity to bring about organizational innovation. Innovation is viewed by some professions as the introduction of a new good, to others it is the introduction of a new method of production while some consider it as creation or opening of new markets.

In today’s highly competitive and sensitive business environment, with the consistent and persistent change in customer taste and desires, and with firms struggling to remain in relevant positions in the industry, ideas are no longer centered on cost reduction and mass production with companies paying more attention to customer needs. Innovation has become a vital instrument for top firms to build competitive advantage above those that are less innovative. Current research has shown that companies that are usually market leaders are companies who have innovative competencies and use such competencies to satisfy variety of customers with different needs, thereby eliminating the chance of customers switching brands, while attracting competitor’s brands. Companies cannot survive through cost reduction and reengineering alone… innovation is the key element in organizational resilience and for increasing bottom – line results (Davila, Epstein and Shelton2006). Organizations have identified the numerous advantages presented by innovation and have sought to explore it in every possible way, either to improve quality or create new market or sometimes in attempt to reduce labor cost.(Davila et al, 2006).

Statement of the Problem

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THE EFFECTIVE COMMUNICATION, A TOOL FOR THE ACHIEVEMENT OF ADMINISTRATION GOALS IN AN ORGANIZATION: A CASE STUDY OF OYI LOCAL GOVERNMENT AREA

ABSTRACT

Effective communication in any organisation, regardless of its type and size remains critical, to the achievement of organisational objectives.This is more so, when any break communication will result in chase, misunderstanding and conflict. Bank PHB Plc lays great emphasis on the oral and written communication for the successful accomplishment of its goals and objectives. The objectives of this study therefore are; to find out different methods and channels of communication and how these can best be used in achieving organisational goals. It was to also find out the barriers and problems of communication and hour they can be solved. Consequent upon which, some recommendations were to be made on how organisations can improve their system of communication for optimum performance and higher productivity. The study adopted the descriptive method through structured means. The sute collected for this study were qualitative therefore, the research relied on descriptive analysis. A summary of the findings indicate that effective communication, is an important factor for any organisation, that wants to achieve its objectives. While it was also discovered that ineffective communication could led to difficulties such a break down in communication low moral, industrial conflict and low productivity.

Chapter one
1.1 Background of the study 10
1.2 Statement of the problem 11
1.3 Purpose of the study 12
1.4 Significance of the study 13
1.5 Research questions 14
1.6 Scope / Delimitation of the study 14
1.7 Definition of terms 17
Chapter two
Literature review 20
– Conceptual framework 38
– Theoretical framework 39
– Empirical review 42
Chapter three
Research methodology 43
3.1 Design of the study 43
3.2 Area of the study 43
3.3 Population of the study 44
3.4 Sample of the study 45
3.5 Instrument for data collection 45
3.6 Validation of the instrument 46
3.7 Distribution and retrieval of the instrument 46
3.8 Method of data analysis 46
Chapter four
Presentation of data and analysis 47
Research questions 53
Chapter five
5.1 Summary of findings 54
5.2 Conclusion 58
5.3 Recommendations 59
5.4 Limitation of the study 60
5.5 Suggestions for further research 60
References 61
Appendix 64

ABSTRACT

The examination of the effect utilization of management by objective in Nigeria is the primary objective of this research. Issues Facing the Business and Opportunities Ahead Management by Objectives is a method of getting improved results in the managerial method, in which the superior and the subordinate managers in an organization identify major areas of responsibility, in which they will work, set some standards for good or bad performance, and the measurement of results against those standards. Management by Objectives is a way to get better results in the managerial method (Derek 2005: 156). Management by objectives is another name for the practice known as management by objectives. On the other hand, there have been specific people who have, for a considerable amount of time, placed a priority on management by objectives, and as a result, have provided impetus to the system’s development as a whole. The management strategy known as “management by objectives” gives preference to the structured management method of goal-setting for any given organizational unit. This study’s primary limitation is that the management of organizations in Nigeria are not equipped with an enough number of management strategies that would enable them to manage efficiently. Some of these tools are either never used or, when they are, they are not employed in the appropriate manner. Management by objectives is not only a popular management technique, but it is also a popular management strategy that cuts across or pervades all human activities, namely business areas, educationed government, health care, and non-profit organization. Management by objectives is not only a management strategy to achieve a well-coordinated managerial goals, but it is also a management strategy to achieve a well-coordinated managerial goals. Unfortunately, a large number of organizations have not yet adopted this strategy for engaging the dedication and cooperation of their staff members. The primary purpose of the study, as well as one of its hypotheses, was to determine the various issues that are affecting the management of objectives as an instrument for organizational performance, as well as the level of participation of both managers and employees in the setting of goals that are to be achieved within the organization. Data were gathered from a variety of sources, including main and secondary ones. The direct oral interview and the questionnaire that was distributed to the personnel were the key sources of information that were used in the study. The questionnaire was the primary tool that was utilized in the data collection process. The information was laid down in tables, with frequency distributions and analyses alongside it. The statistical test of proportion, often known as the Z-test, was utilized in the process of putting the hypotheses to the test. The most important takeaways from the research were that MBO helps to obtain total commitment from all employees to work together in order to achieve a common goal; that a good and prompt salary, promotion as when due, good relationship with management, and recognition of achievement improves the performance of workers, which in turn enhances the performance of organizations that have adopted management by objectives; and that MBO helps to obtain total commitment from all employees to work together in order to achieve a common goal. According to the findings of the study, managers should involve their subordinates in the process of formulating unit objectives. These objectives are then passed up the organizational hierarchy, where they are amended, compiled, approved, and disseminated throughout the organization. More than that, there should be autonomy in the implementation of plans once the objectives have been agreed upon. Once the objectives have been agreed upon, the individual should enjoy a large amount of discretion in choosing the means for achieving the objectives without being directed by a higher ranking manager. In conclusion, the research uncovered a great deal of beneficial implications and the continued relevance of management by objectives to the management of contemporary businesses, particularly in Nigeria. In operational terms, management by objectives necessitates that each manager of a unit draws out his department objectives with his subordinates in line with the centrally stated corporate objectives and mission. This is done in accordance with the management by objectives methodology.