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 |