FACTORS AFFECTING GOVERNMENT OWNED PARASTATALS AND THEIR IMPLICATIONS CASE STUDY OF POWER HOLDING COMPANY , NIGERIA 

CHAPTER ONE

INTRODUCTON

1.0 Background of the Study

It is now a common phenomenon in many Nigerian organizations to see some workers sleeping on their tables or indulging in gossips in their offices when there are heaps of works in the office to do. Also, it is a very common say nowadays among the workers in most Nigerian establishments that ‘‘government work is not anybody’s work’’ meaning that no one should take government work with all seriousness. This attitude to work of most Nigerian workers in most Federal Government establishments is very bad. Examples of Federal Government parastatals include Nigerian Telecommunications, Nigerian Airports Authority and the defunct Power Holding Company of Nigeria (PHCN).

The commitment of most Nigerian workers to their work has drastically declined in recent years compared to their performance to work years earlier. Nowadays, people refuse to work for their pay, instead they avoid their work so as to finish the work on time in an effort to work overtime and receive more payment. Even when they work, it is always done with less concern without minding the quality of their output and the profitability of the business concerned. Some of these workers go as far as collecting wages and salaries they do not work for. This situation is referred to as paying ghost workers.

The poor performance of workers was such that the workers have set their own goals which are in contrary to the co-operation objectives. Some PHCN workers, for instance, go as far as connecting and disconnecting people’s electricity supply illegally in an attempt to collect money from the affected consumers which they put into their own pockets, instead of paying such money into their establishment’s account. Some sell company’s equipment to individuals in an attempt to make more money. Some do issue forged electricity bills to their clients so as to collect the money when payment is made.

Statement of Problem

It is certain that a satisfactory final output of workers will be reflected in the results of the strength of the establishment. Hence poor workers undoubtedly produce poor work output. The attitude of Nigerians to their work has a long way in affecting the quality of their work. One may therefore be wondering what could be responsible for this attitude to work. This project is therefore designed to give answers to this question and consequently proffer explanation to facts related to the poor performance of government owned parastatals/establishments in Nigeria. It will provide information on the following as they affect performance of the government parastatal under study:

(i).People structure, technology and work environment as factors of organisational behaviour.

(ii).Maintenance culture in sustaining continuous use of materials and equipment like plants and power supply.

(iii).Lack of spare parts.

(iv).Poor funding.

(v).Inadequate trained manpower.

1.2Objectives of the Study 

The purpose for this research is to go deep into the causes or factors that are affecting government owned parastatals and their implications, using Power Holding Company of Nigeria as a case study. Specifically, the following are the objectives of the study:

(i).To identify factors that negatively affects performance in PHCN

(ii).To reveal workers negative behaviour that affects PHCN

(iii).To assess factors that adversely affects workers performance

(iv).To identify what motives the employer

(v).To recommend appropriate measures that could help to improve performance of government owned parastatals1.3Research Questions

The study will attempt to provide answers to the following questions.

1.Does vandalization of PHCN equipment and installation affect its efficiency?

2.Did cost of maintenance affect the efficiency of PHCN?

3.Did poor financing affect the efficiency of the corporation?

4.Was the staff strength of PHCN adequate to provide efficient service?

5.What are the major problems in PHCN?

6.What are the causes of poor performance at work place?

7.Are the various categories of staff in PHCN carrying out their duties effectively?

8.Does motivation have anything to do with performance at PHCN?

1.4Significance of the Study

The research will be beneficial to all service organisations especially Power Holding Company of Nigeria (PHCN) and their staff as it emphasized the need and encourage the establishment on the formulation of policy guidelines on efficient and effective performance at work. It will help managers of various organisations to generate ideas and solution to problems based on the best way of ensuring quality performance at work in order to achieve desired goals and objectives.

It will also help small scale businesses, large corporations, Universities, Colleges of Education and to the Government. It will also help researchers to know more about the causes of poor performance and the solutions to end poor performance at work place.

Finally, it will be of great value to students as a point of reference and will equally form the basis for further research study.

1.5Scope and Limitations of the Study 

For the purpose of this research work, the study will be limited to appraising the causes of poor performance at work place, using (PHCN) as a case study. This study will be limited to uncovering the reasons for the negative performance in the corporation and the importance of motivation towards performance to work.

Also, employee selection and placement procedures will be appraised as well as finding solutions to identified negative performance and suggest ways of increasing performance at Power Holding Company of Nigeria (PHCN). Another major limitation in the course of carrying out this study effectively and efficiently. Prominent amongst them are non- disclosure of information and un-cooperative attitude of most of the staff of the Power Holding Company of Nigeria in responding to some of the questions. As a parastatal, there is always fear of giving out information to the public as such, vital information needed was not readily available.

Another problem was that of finance. The researcher being a student is a dependant and so was greatly limited in the source of finance to move from place to place and to the organisation under study in order to obtain relevant information needed. This was rather difficult and tasking because of the huge transportation fare spent and the risk involved on roads in trying to get in touch with the staff. Sometimes, the staff seemed not to be keeping appointment schedules. However, reasonable amount of the money was spent in achieving the study objectives.

1.6Definition of Terms

Motivation: According to Charles Ray and Charles Elson (1984) motivation is an internal energize capable of directing one’s behaviour in particular way that the person feels will lead towards. Motivation is also defined as the stimulus that induces a person to behave the way he does.

Leadership: It is managerial ability to accomplish group goals by working with people.

Hydroelectric power:Electricity produced from generators that are driven by hydraulic turbines. To ensure the requisite head of water constancy of flow, the turbines are placed in dams that impound the stream flow, thus creating reservoirs that can be used for recreation of water supply power.

Thermal electricity power: Electricity produced by burning any kind of available fuel or by nuclear energy.

Productivity: In economics, it is a term to describe how well or how efficiently any economy’s resources are used in the process of production. The extent to which a given economy reached its full potentials and the extent to which it expands that potential depends on the part of the productivity.

Current: Flow of electricity through and along a wire or cable.

Transformer: An apparatus that increases or decreases the voltage of an

electricity power supply.

Fluctuation: Irregular movement, move up and down.

Fluorescent: Taking in radiations and sending them out in the form of light.

Sinecure: Position for which one receives credit or payment but which does not entail work or responsibility.