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MANAGEMENT PROBLEMS FACING GOVERNMENT OWNED ESTABLISHMENT

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CHAPTER ONE

1.1      GENERAL BACKGROUND OF STUDY:

Government is a social institution and agency of the state Government as an institution is a process while as an agent, it is a representative. In the past, the role of government has been social, political, economic, community and personal levels which have been the cause of considerable, debate, wars and other important social phenomena that have shaped our lives. Due to the various struggles of the economic system, five broad classes have emerged from it namely:

(a)       The developed market:- Market economy where there is advanced free market processes with government helping to develop competition within agreed boundaries. This is common inWestern Europe, North, African andJapan. The government uses fiscal monetary trade policies to guide the market forces of demand and supply.

(b)    The mixed economy exists in most developing countries. These countries lack a developed private sector (of indigenous extraction) and so the state through the agency of the government take control of the commanding heights of the economy with a view to developing  them and also preventing them from falling into the hands of foreignness.

(c)    The pure market (capitalists) economy in which there is complete and unhindered private ownership of the means of production.  This economic system cannot and does not exist anywhere because man is a social being and common property is inevitable.

(d)    The command (or centrally planned) social economy is existed in the defendSoviet Union. Private ownership of substantial means of production is legally limited. The state owners all land and heavy industries and communes or rural settlers are given targets to meet in their production.

(e)    The market socialist economy, which marries free market principle of prince chanisim with socialist principal and the means of production.

            It is the mixed economy, whichNigeriais practicing that is providing the ideological justification for government ownership of industries. The federal science manufacturing Equipment, Akwuke was set up by the federal government. To manage a business there must be a like between mission (objective) and the operational mechanics of the business. The mission of the government is affected by its goals social objectives like growth of the national income, growth in employment, decline in rate of inflation, strategic production of essential goods and service and social improvement (as measured by several indices). Social accounting and cost benefit analysis would be adequate for measuring the impact on society generally of roads, police security, general hospitals, environmental protection free education, fire service, road safety projects and many other public goods and services. These measuring tools will not provide operating surpluses or profit for their effective continued operation.

 1.2         STATEMENT OF PROBLEMS

The major problems militating against management problems facing government owned establishments (a case study of federal science Equipment manufacturing center, Akwuke,Enugu) includes:

  1. Due to the improper funding of the manufacturing company center at Akwuke, it had not been functioning at full capacity.

  2. At manufacturing company center, Akwke, unable to employ skilled labor with appropriate technical skills resulted in dalay in inventions there also.

  3. Also, inability of the manufacturing company center at Akwuke to provide facilities that helped to market and conserved some of their goods hampered production, storage as marketing of these goods.

 1.3        OBJECTIVE OF THE STUDY.

The Objective of this study is:

1.    To identify those problems, which hindered effective management of the government, owned establishment (federal science manufacturing Equipment center, Akwuke,Enugu).

2.   identify how management problems caused a lot of distractions to the workers.

1.4         SCOPE OF THE STUDY:

With respect to this study, we are limited in our interest in the operating management of the federal science manufacturing Equipment center, Akwuke. We shall focus on its business plans and hour it managed the plan from organizing, budgeting and executing through operations. Particularly, we shall study the organizational and management structure of federal science manufacturing equipment center, Akwuke and evaluate its impact on the operating management of the company.

          The organizational structure should how it was linked to the government. We shall also find out how the structure performed and the government effected on the operation of the organization.

1.5      LIMI8TATIONS OF THE STUDY.

The researcher being a student did not have enough money to meet up all the costs of research, which included transporting to meet directors and managers for information. The researcher was spending out of her meager pocket money as a student out of her meager pocket money as a student coupled with the fact that things are difficult. Many at times during the research, the researcher after spending money on transportation may end up not getting the information needed. The security at the manufacturing center, Akwuke was tight so information was not easily gotten.

Also, it was difficult for the account department at the manufacturing center, Akwuke to give out information on how they run their account on the cost of things they have in stock.

Moreover, due to time constraint, the researcher could not carry out the study of the topic as easier proposed. This was as a result of the shortness of the semester and examination that is at the corner. Normally, a research when carried out should be done in such detailed as to enable effective implementation and testing of recommendation. But this was not possible as a result of limitedness in the area of time.

Lastly, some vital materials or information which could have helped the quality of the research work were not available to the researcher due to the unwillingness of some respondents to divulge certain information to the researcher.

 1.6       SIGNIFICANCE OF THE STUDY

This research is intended to discover the problems of government owned establishment federal science manufacturing center, Akwuke and made recommendations on how these problems may be solved.

The aim of the study is to find out the causes of these problems and by so doing eliminate the belief that people always have concerning government owned establishment as no man’s business and a non profitable organization.

 1.7     RESEARCH QUESTIONS

  1. To what extent does management problems affect government owned establishment?

  2. To what extent does management problems caused a lot of distractions to the workers?

  3. To what extent does management problems affect workers attitude to work at government owned establishment?

  4. To what extent does management problems affect the financial control of government owned establishment?

C


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