THE PROSPECTS OF TOTAL QUALITY MANAGEMENT IN THE NIGERIA POWER SECTOR

ABSTRACT

The dynamic nature of changes in the environment has made organisations, big or small the world over, to turn to “quality” to help them cope with competitive challenges, as they affect tastes and aspirations of consumers. Most organisations have therefore adopted Total Quality Management (TQM) as a way of providing quality products and services to their customers. The Nigeria power sector has been associated with poor quality performance. Therefore, the research examined the prospects of TQM in Nigeria power sector. In a nutshell the research sets out to examine the prospects of TQM in PHCN in relation to the attitude of top management, its applicability in the Nigeria power sector. The survey and descriptive methods were adopted. Three hundred and twelve randomly selected personnel from a population of 1408 participated in the study, as well as four hundred customers were randomly selected from a population of 268,091. The instrument of data collection labeled Total Quality Management Applicability Inventory (TQMAI) was built on a Likert Scale system. Findings indicate that no difference exists between the PHCN staff and customers in their understanding of the relationship between top management support for quality and prospects of TQM. Also the study found that the culture of PHCN does not favour the application of TQM. The study confirms the need for cultural shift/change in order to facilitate the application of the tenets of TQM, and reaping of benefits they may accrue. Conclusively, the Nigeria power sector should initiate a company wide awareness of TQM through seminar and workshop.

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EFFECTIVE INFORMATION MANAGEMENT TOOLS IN ORGANIZATION (A STUDY OF ZENITH BANK LTD)

CHAPTER ONE/INTRODUCTION

1.1 BACKGROUND OF STUDY

This study aims at highlighting the effective utilization of management information technology and tools by most banks. This is as a result of the need to tender best services to customers and achievement of organizational goals or objective.
However, despite the various sophistication of information technology and the huge investment, many decision makers in organization is still faced with the problems of obtaining information that is reliable, relevant and up-to-date.
These difficulties have adversely affected the decision making process of most banks by hindering the decision makers through the introduction of distortion, leading to inaccurate information and creating misplaced confidence.
These particular problems are common in most banks today, the management of such banks are yet to really believe that management information system has actually justified the huge amount invested in it because most information system have foaled to meet the information requirement of the banks management.
The management of most banks had complained of unreliability, untimeliness and inaccuracy of information. Such banks include Union Bank of Nigeria Plc and MBC International Bank Ltd. Thus, there is need for the development of a vital and efficient information system which is essential for improvement in performance of the management of the bank.
The main stream of this is to show extensively the importance of Management Information System instituted within or among the three levels of management in aiding effective decision making of the bank so as to ensure their continued survival and profitability.

1.2 STATEMENT OF THE PROBLEM

In recent times, information has become the life line of most successful banks. Computerized information systems channeled at facilitating or enhancing management operations have thus been developed in several banks.

Despite the edge of technological advancement, customers are yet to experience a drastic improvement in service rendered by banks. Customers waiting time in bank is yet to reduce tremendously and transactions are still processed at a lower pace than it should be, considering the use of good and reliable Management Information System.
The Management Information System is supposed to ensure an effective internal control system but the rampant cases of fraud in banks have proved otherwise.
Also bank managers complain of lateness of reports, constant break down of computer machines and computer frauds. This has resulted in the reluctance shown by top executives of banks to make further investment in information technology as the returns on investment of previous ones have not bee too encouraging. Like a case of system hanging, while a cashier is attending to customer.
These problems have resulted in dissatisfaction among users of information system and the management of banks in general. Due to the huge investments management incurs form acquiring Management Information System, it is anticipated that a good return on investment should be realized.
1.3 OBJECTIVES OF THE STUDY

The purpose of the study is to seek to explain the concept of what has come to be known in modern management and information technology circles as Management Information System [MIS] and how Management Information System has impacted on decision making in a competitive and challenging banking environment.
In addition, the study will highlight for the benefit of organizations, the probable advantages accrued to modern business organization that has implemented Management Information System.

1.4 RESEARCH QUESTIONS

In an attempt to provide relevant and accurate solution to the research problems, the intention here is to come up with specific solutions for the purpose of knowing major issues to be tackled as well as emerging cases. In light of above, the research will address the following questions as stated below:
i. What is the relationship between Information System and decision-making?
ii. Does the introduction of MIS improve data generation efficiency and effectiveness of operation?
iii. Has the network infrastructures installed being able to support the MIS conveniently adequately?
iv. Does and organization require MIS to survive in business operations?

1.5 HYPOTHESIS OF THE STUDY

In the course of this study, the following hypothesis will be tested.
Ho: There is no significant relationship between Management Information System and decision making.

Hi: There is significant relationship between Management Information System and decision making.

Hence, the independent variable is Management Information System while dependent variable is decision making.

1.6 SCOPE AND LIMITATIONS OF THE STUDY

The focus of the study is on the banking sector because of the nature of their operations and the dynamic nature of the operating environment. Equally, Lagos city is chosen because of the fact that all most every bank operating in Nigeria has their Headquarters situated in Lagos. Proximity to concerned or selected banks for this study will enhance the flow of data and relevant information to the benefit of the study. However, the findings of the study will be difficult to generalize to other sectors of the economy because of their different mode of operations, products and structures.
Another area of limitations is the level of interactive development in Lagos and that of other cities. Some geographical areas are so behind in infrastructure that using Lagos as yardstick to generalize or recommend finding would be incorrect.
However, the study would provide the building blocks for other research in other sectors of the economy relative to application of MIS. And the outcome of this study to the chosen banks would serve as mirroring medium to the banking sector.

1.7 RELEVANCE OF THE STUDY

The outcome of the study would highlight the strength and the importance of application of Management Information System in modern day business environment that is dynamic and competitive. Managers of banks would know if MIS is in monopoly of effective and productive decision making or that carefully made decisions that do not involved MIS can stand the test of current volatile and dynamic business environment today.
The study will also be useful to scholars in related fields, the government, firms, and the banking industry to a reasonable extends in applications of MIS in facilitating decision making in the modern business world. And finally, it would assist the selected bank to consolidate or improve on their current position in MIS application.

1.8 BRIEF BACKGROUND OF ORGANIZATION (ZENITH BANK)

a. Zenith Bank Ltd formerly commenced banking business in Nigeria in 1982. Since its inception, the bank has played prominent role in the Nigeria Banking Industry as one of the top corporate and investment banking institutions.
In February 2001, the bank converted to universal banking operations to diversity into other specialized areas of operation occasioned by Central Bank of regulatory policy on universal banking, which allowed financial institutions wider range of operations. The bank has branch network seven [7] that are sparsely located in 5 cities of the federation. The bank has currently merged with First Bank of Nigeria to scale the hurdle of N25 billion capitalization.

b. Union Bank of Nigeria Plc is one of the first generation banks in Nigeria. Over the years, the bank has grown into a force to be recorded within the banking environment in Nigeria. The bank branch network is over 293 nationwide. In addition, the bank has invested in subsidiaries and associated companies, which marked the bank out as financial Super Market.

The bank currently operates with capital base of N90 billion naira after the post capitalization era. To narrow communication gab between branches and head office and being cowed with the advent of information technology in the industry, the bank is also a forerunner in application of modern technology in discharging of their products and services to their customers.

1.9 DEFINITION OF TERMS

• BANKING: Any organization whose primary role is that of carrying out the business of mobilizing funs, keeping money, loaning out funds and other financial services in an economy.
• COMPUTER: A computer is a mechanical or electro-mechanical device which accept new data, process the raw data and converts it into information that can be used in making decision. It can co-ordinate information from funds deposits, cash positions, investment and application of funds, produce financial data and maintain ledgers through its data base system.
• DATA: It is a term used to describe the basic fact about the activities of a business or event.
• DATA PROCESSING: Any collection of data organized for storage and access by computers. The data may be text, numbers or images.
• DECISION MAKING: Simply defined as the existence of doubt or uncertainty as a result of existence of two or more courses of action from which a choice has to be made that will lead to the elimination of uncertainty or doubt. It describes the process through which a course of action is selected as a solution to a specific problem [J.A.F. Stoner, 1982].
• INFORMATION: This is obtained from data by processing of the data. It is the output element of a data processing system and its important in day-to- day management of business.
• MANAGEMENT
  INFORMATION
  SYSTEM [MIS]: This is a system designed to provide selected decisions oriented information needed by management to plan, control, and evaluate the activities of the corporation.
• NON-PROGRAMMED DECISIONS: These are decisions, which in the present state of art cannot be programmed on a computer

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THE EFFECT OF DOWNSIZING ON ORGANIZATIONAL PERFORMANCE A CASE STUDY OF JOHN HOLT PLC

ABSTRACT

This project in on the effect of downsizing on organizational performance. The Statement of Problem identified was that downsized organisations have not improved significantly in their performances and have failed to produce the desired results which thereby undermine the effectiveness of performance in the organisation. To meet the general objective, the study is focused on the following specific objectives, to determine the effect of downsizing on the quality of output, to determine the effect of downsizing on the volume of sales and to determine the effect of downsizing on the span of control. The descriptive survey method was used and the research tool was questionnaire. In the analyses, the simple percentage technique was applied to analyse the questionnaires and presentation was done by the use of tables. The data analysis used was Chi-square formula .The findings from the study shows that Downsizing results in decline in quality of output, volume of sales volume and increases span of control consequently, affecting the effectiveness and efficiency of  the organisation. The study concluded that reduction in size of workforce has not improved corporate organisational performance. Finally, the solutions and recommendation for this study emphasized that downsizing exercise needs to be carefully planned and executed in order to produce its expected result of expense reduction, increased effectiveness and efficiencies restructuring

CHAPTER ONE/INTRODUCTION

1.1       BACKGROUND OF THE STUDY

In the recent times, globalisation has made organisations to become more competitive and complex in the employment and application of resources of production. Many organisations adjust to practices that will give them an edge over their competitors. To compete effectively, they need to reduce cost, improve efficiency, and as well increase productivity and quality of output. To cope with this tough competition, many organizations have applied the management tool of downsizing.

Downsizing is a universal phenomenon the business world is experiencing. The major impact is on people, corporate organisations and the economy. An organisation, being a structured entity which is established to achieve specific goals by blending resources, is very sensitive regarding costs and benefits to get optimal returns.

The main motive for most downsizing activities is the objective of reduction of cost (Casio,1993), an increase of organisation’s level of efficiency, effectiveness, productivity (Gandolfi 2002), and competitiveness (Cameron 1994), and so an overall organisational performance. (Thornhill & Saunders 1998).

Every organisation attempts to expand or reduce its man power according to specific requirements and prevailing business conditions. The right size of human resources is indispensable for the successful survival of every organization. Many organisations are more concerned about how to become “lean and mean” and therefore face the task of reducing the size and improving the efficiency of an over-staff as a general endeavour to increase economic growth and cut deficit.

This has spread across American economy where the largest organisation has implemented a work force reduction unprecedented in its size and scope (Morris, Cascio

and Young 1999) and more recently, the phenomenon has also been documented in European (Dahl & Nashum, 1998) and Asian Firms (Ahmadjian & Robbinson,2001).

In the USA, there have been more than 4.6 million job cuts announced since 1990  with 1998 topping the decade’s biggest downsizing year (Laabs 1999).

An economist at the Federal Reserve Bank of Chicago estimated that in 1995, workers faced a 3.4 percent chance of being laid-off. A recent survey by the American Management Association (AMA) found that between one third and one half of medium and large sized organisations in the US have downsized every year since 1998 (Cole 1995).

In Nigeria since May 29, 1999, about 4.8 million Nigerians have been retrenched in the civil service of the federal statutory corporations, state owned companies, banks and insurance companies, through the policy of downsizing ( Aluko 2007). The downsizing of the public sector has consequently led to the downsizing of private sector and vice versa.

John Holt Plc is a multinational company, whose businesses spans through every sector of the economy such as manufacturing, industrial, commercial and other related businesses. In the organisation, retrenchment and retirement has become order of the day since 2005. Over the years, the organisation has been downsizing and over five hundred workers have lost their jobs. Some divisions were completely closed down while some branch network were reduced to operate only from the company’s corporate headquarter In Lagos.

The last downsizing was in August, 2011 where one Hundred and fifty workers were laid-off and this year, more names are being complied on the list of redundancy which will be released as soon as management settles the benefits of the last downsized staff. The organisation attributed their efforts, to improving global effectiveness through cutting down costs and improving organisational efficiencies.

Downsizing could be a painful process because it involves people and emotions. In organisations, the freedom for taking actions is much more and the damage such decision can make on employees and organisations can be too hard.

In private organisations, any decision about downsizing can drop like a bomb shell without any prior warnings and without giving time for employees to be prepared and management at all levels is expected to achieve results with fewer employees at less cost. Unfortunately, many employers generally lack a decent level of diplomacy in effecting retrenchment and they hide behind the legal terms and conditions under which an employee originally signed, which would normally include a virtual freedom to terminate the employee.

Therefore, downsizing as an effective management tool for reorganisation and re-engineering, needs to be carefully planned and executed in order to produce its expected result of expense reduction, increased effectiveness and efficiencies restructuring.

It is on this background that this study is set to examine the effect of downsizing on organisational performance in the organisation where the concept of downsizing and organisational performance are defined, the downsizing implementation strategies used by organisations, the rationale behind organisational downsizing, the various factors affecting organisational downsizing, its effects on individuals and the various downsizing problems in the organisation.

1.2       STATEMENT OF THE PROBLEM

Downsizing has been a common feature of most firms in Nigeria and emerging economies. The downsizing period has been a period of great challenge for most organisations. This is because majority of the downsized organisations have not improved significantly in their performances and failure to produce these desired results has been attributed to a number of factors which are said to undermine the effectiveness of downsizing in the organisation.

Some of these factors include decline in productivity and quality of output, drop in sales volume and profit margin and decline in revenue.

However, these problems are associated with management lack of attention to long-term economic performance. This is so because most corporate managers focus too much on quarterly profits and too little on patient investment that will produce long term result.

In the light of the forgoing, that this research consider it necessary to look into John Holt plc with the view to finding the effect of downsizing on organisational performance. 

1.3       OBJECTIVES OF THE STUDY

1.31 General Objective

To show the effect of downsizing on organisational performance, using John Holt Plc, Enugu Area office.

Other objectives of the study are;

To determine the effect of downsizing on the quality of output.

To determine the effect of downsizing on the volume of sales

 To determine the effect of downsizing on the span of control.

1.4             RESEARCH QUESTIONS

Does organisational downsizing result in decline in the quality of output?

Does Organisational downsizing result in decline in volume of sales?

Does organisational downsizing lead to increase in span of control?

 1.5           RESEARCH HYPOTHESES

H₁:          Downsizing results in decline in quality of output

H_0:          Downsizing does not result in decline in quality of output

H₂ :      Downsizing results in decline in the volume of sales

H_0:       Downsizing does not result in decline in the volume of sales

H_3:       Organisational downsizing leads to increase in span of control.

H₀:      Organisational downsizing does not lead to increase in span of control.

Hu

1.6       SIGNIFICANCE OF THE STUDY

The study is significant in the following ways

1. The study will give useful information to government as regards the effectiveness of downsizing policy and this will also allow them to take a decision as to whether the policy should be modified, sustained or retained.
2. The study will be useful to private organisations as this will give a better understanding of the effects of downsizing on the overall performance of the organisation and as well it will enable them consider if the policy of downsizing is a worthwhile option.
3. The study will be useful to management of organisations , especially the Human Resources Department in that, it gives management a better insight and useful information on why downsizing is necessary, what cost to be cut, and what strategies the organisation intend to pursue.
4. The study will be valuable for academic purposes as this will serve as a reference material for students who will be interested in carrying out research on related topic in the future.

1.7       SCOPE OF THE STUDY

The scope of this study is to cover the underlying principles, problems and impact of downsizing workforce on organisation’s efficiencies, the effect of output and quality of output on downsizing, the effect of downsizing on volume of sales and span of control.

1.8 LIMITATIONS OF THE STUDY

Some problems were encountered in the course of carrying out this study and there are as follows;

1. Limited Source of data:     The research topic seems to be new and as such, there are no sufficient materials for this research from the library. This is because most management text books in the library did not discuss the subject exhaustively, so most of the data were sourced through the internet.
2. Financial Constraint: Most of the information were obtained through the internet and as such much money is spent on internet subscriptions, printing of material and photocopying of documents.
3. Time constraint: The research work is time consuming because of interconnectivity problems experienced from the internet. So this affected the duration for conclusion of this research.

1.9       DEFINITION OF TERMS

DOWNSIZING :      Reducing the total number of employees at a company through terminations, retirements and reorganisation in order to cut the operating costs and improve efficiency.

MANAGEMENT: Management is an individual or a group of individuals that accept responsibilities to run an organisation. It is the process of Planning, Organising, Directing and controlling all the essential activities of the organisation.

ORGANIZATION:­     A social unit of people, systematically structured and managed to meet a need or to pursue collective goals on a continuing basis.

PERFORMANCE:     The accomplishment of a given task measured against preset known standards of accuracy, completeness, cost, and speed.

POLICY: The set of basic principles and associated guidelines, formulated and enforced by the governing body of an organization, to direct and limit its actions in pursuit of long-term goals

 WORKFORCE: All the people who are employed or that is available to work in an                                       organisation.

REFERENCES

1. Ahmakjian, L.C. and Robinson , P. (2001). Safety in numbers: Downsizing and        the deinstitutionalization of permanent Employment in Japan,         Administrative Science Quarterly, 46(4): 622 –658.

2. Cameron, K. S. (1994), Strategies for successful organizational downsizing. Human Resource Management, 33 (2): 189-211.

3. Cascio, W.F. 1993. Downsizing: What do we know? What have we     learned?.        Academy of Management Executive, 7 (1): 95-104.

4. Dahl, S & NesheimT.(1998), “Downsizing Strategies And Institutional Environment. Scandainavin” Journal of Management 14: 239-257

5. Gandolfi, F. 2002. Should training and development be implemented during organizational downsizing? A case study. Australia and New     Zealand Academy    of Management (ANZAM).
6. Labbs J. (1999), “Has Downsizing  Missed its Mark”? Workforce Vol78           pp30-8

7. Morris J R, Cascio W.F & C. E Young (1999),Downsizing after all these          years, Questions &             Answers about who did it how many did it, and    who benefited from it, organisational dynamics 27   winter 78-87

8. Sahdev, K., Vinnicombe, S. and Tyson, S. (1999), “Downsizing and the          Changing role of HR” International Journal of Human Resource             Management, 10(5): 906-923.

9. Sam Aluko, (2007), Federal Government Reform Agenda and A critical          Assessment.

10. Thornhill, A., & Saunders, M.N.K. (1998), “The meanings, consequences       and     implications of the management of downsizing and    redundancy”: a          review. MCB Personnel Review, 27 (4).Yin, R.K. 1994. Design and         Methods 2nd             Edition Sage, Thousand Oaks,Publishers California.

11. Wager, T. (1992), “Restructuring Getting it Right”, Management Review, pp   10-      15 Administrative Sciences Vol 15

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