LITERATURE REVIEW: IMPACT OF MANAGEMENT EFFICIENCY ON WORKER PERFORMANCE



TOPIC: THE IMPACT OF MANAGEMENT EFFICIENCY ON WORKER PERFORMANCE: A CASE OF EBONYI WATER CORPORATION ABAKALIKI
 
CHAPTER TWO
LITERATURE REVIEW
2.1       INTRODUCTION
            There is no universal definition of management efficiency various scholars, writers government agencies, firms view it from their different perspective and they can also use of thus term in varied forms.
            Researcher in different disciplines uses this concept in different ways so as to suit their research purpose.
            As a matter of that, universal conclusion should not be drown from work of one or other of these research often the samples may be too small or the time two short for generalization to be made.

            As postulated by Oakland, (1983:86) that quality of produces and services are important not only for users but also for suppliers. It must be controlled in all these functional and their activities coordinated to achieve a balance corporate quality performance. Quality is one of the most commonly misunderstood words product or service when being mentioned must be with performance to an intended use of purpose. Quality was eventually defined as meeting the requirements of the customers needs.

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            By Oakland efficiency management let to customers satisfaction, it is imperative that management must improve all aspects of its operations including customers, relations, staff development, staff compensation, motivation, staff regulation, product development, manufacturing process, credit systems and all aspect of communication management should effectively and deliberately encourage creativity, meaningfully suggestion and all forms of feedback including complaints and involve all employees in decisions making that improve quality in the organization.
            Roberts (1992) management efficiency is seen as people focused management system that aims at continual increase in customers  satisfaction at continually lower real cost”.
            Ewurum (2001) said that the goals management efficiency is to integrate all the parts achieve continuous improvements in quality of goods and services along the line dictated by the customers.
            Crosby (1979) defines management efficiency as a system philosophically concerned with doing things right first time and always management efficiency involves individuals at all levels in planning, organizing activities by Oakland (2000).
            Waller et al (2005) listed a number of management tools classified into statistical tools, planning tools, change management tools, quality management tools, cost management tools, problems solving tools, data capture tools, consensus tools and product and process design tools, they argue that the tools are implemented in a complex organization framework where the soft aspect of management are very important, for issue of culture, motivation styles, communication, leadership and environment will have far reaching effect on successful implementation of the efficiency.
            Top management commitment to workers is a necessary condition to improve the performance of worker in public corporation. Deming (2000).
Nnedum (2001) emphasis placed on general staff commitment and acceptance. While Drucker (1968) says that it is the responsibility of top management to give executive leadership and to have strong commitment to efficiency.
Morrow (1997) argues that without integrating both supervisors and subordinate in teamwork, organizational apathy or outright sabotages may lead to frustration of corporate objectives.
Hand (1993) defines customer as any one who depends on another for a product or service. By this definition an organizational set up the payroll officer is customer of the personnel officer because they formally depend on the maintained accurate record of current staff strength. Similarly the engineering staff are customer of the production department since the engineers service are required to maintain the equipment in production. In this case both the payroll office and the engineer are internal customers to are organization. Workers are regarded as customers to management.
Okolie (1996) state that management takes workers, wooing them and giving them what they need.
Every members of the organizational staff should see himself as integral part of the organization willing and able to confiscate in achieving corporate objectives through effective and efficient jobs performance.
From above observation, we can arrive at a conclusion that both manager and subordinate are responsible for the performance of public corporation.
Since management efficiency is one of the most powerful managerial tools of the future. It is goal oriented, customer focus and provides strategic avenue to completive edge.

2.2       CONCEPT OF MANAGEMENT EFFICIENCY                                              
            The concept of management efficiency, can be defined as effective utilization and coordination of resources such as capital land, material and labour, to achieved defined objectives in economic organization with respect to people, management efficiency is perceived as a pro motivating and controlling of activities and modifying people’s behaviour to fit the needs of an organization.
            Management efficiency therefore is responsible for organizing and harmonizing the elements of public corporation: money material, equipment and people in the interest of economic ends. The search for management rules and laws, which of observed will result in effective managerial performance in all situations has been going on for millions of years.
            The ultimate objective of management efficiency is to increase the effectiveness and efficiency of an organization through optimum performance of workers.

2.3       ORIGIN OF MANAGEMENT EFFICIENCY               
            Management efficiency is recent as a philosophy Taylor’s scientific management, the establishment of quality inspection units and departments mbo quality circles and customers attitude surveys and schemes. It is widely believed that the origin of management efficiency is Mercian although the profound application of the concept took place in Japan. The Japanese used the management efficiency concept as the cornerstone of their industrial strategy, which later because a trick” which many public corporation’s in the western world have been trying to copy. In more recent times, mike Rosson in U.K and Tom Peters in the united states have developed new programme for implementing management efficiency i.e management for quality.
2.4       MANAGEMENT EFFEMINACY PERSPECTIVE OF LEADERSHIP             
            Leadership is the sum of activities by which a hierarchical superior voluntarily influence the behaviour of the subordinate in a way as to efficiency achieve the organizational objective, Awiyo (1997) sees leadership as a basic ingredients in all aspect of organizational activities. Johnnie (1993) defines leadership as the process of directing and influencing the work related activities of members in a group.
            Leadership is a goal directed activity that must be performed by managers of organizations.
            Okolie (1994) leaders must change or influence and transform the organizations to needs of management efficiency.
            According to Bowen (1994) agued that management quality transformational leadership trees the communical  and reinformational leadership trees the communication and reinforcement of values and the articulation and implementation of a vision management efficiency entails alighting of organizational members within quality values of customers focus, continuous improvement and team work. Bowen (1994) emphasis that total quality had to do with training the staff and organizational formulations.
            Nevertheless, for management efficiency to lead to customer satisfaction it s important that management must improve all aspects of its operations including customer relations, staff development, compensation motivation and recognition, products development manufacturing process, credit systems and all aspect of communication.
            Management should also effectively and deliberately encourage creativity meaningful suggestions, all form of feedback including complaints and involves and employee in decisions that aimed at improving performance. These techniques will however be possible through the use dynamic leadership approach.

2.5       MANAGEMENT EFFICIENCY AND CULTURE                
            Culture has been defined as the distinctive practices and beliefs of a society. For the organization, it has also been defined as the set of values, behaviours and norms which make an organization tick. It is obvious that the culture of the larger society always impinges on the culture of the organization. The question that arises therefore is whether the concepts of management efficiency should be transferred and sink to Nigeria, or should enculturation take place? Ironically two Americans- demising and juran- exported the concepts of efficiency to the Japanese who pioneered the efficiency circle phenomenon. The Japanese blended the concepts into their culture and produced a formidable disciplined tool for achieving efficiency. Because the Japanese had acculturated the tool Kaoru Ishikawa, one of the foremast Japanese quality. It was Gures, who gave the world Ishikawa diagram believed the efficiency circle tool can only flourish in Asian countries which have similar cultures. But he was wrong, Japanese factories in America and Europe employing Americans and Europeans produced spectacular economic results that were not inferior to those produced in Japan using Japanese and the same management tools. The reason is that irrespective of the skin pigmentation of the human being, human nature is basically the same all over the world.
            Adewole (1997) see management efficiency as a culture of total way of life, an enhancing culture of entire organization. This definition views me as a driving force in an organization that enhance group and quality performance.
            Having examine the above definitions, we shall define ME as a management concept that is concerned within the continuous improvement & rise of quality materials, functions processes aimed at achieving higher output and outperforming competitions through customers focus orientation, total commitment of employees and team works.
            ME, it involves the art of preventing problems before they occur instead of fire fighting approach to problems solving. In a quality environment, every one is a custodian of his or her job. Efficiency, entails empowerment, shared values and commitment to productivity, competitiveness good images, unfailing continuous feedback to one another as well as having standards for performance on monitoring performance. A quality policy need to be defined and it is the responsibility of the management to take all necessary measures to ensure that the policy is understood, implemented and maintained.
            In conclusion, both managers and subordinates are responsible or success of management efficiency as the most powerful managerial tools of future. ME is very essential to the success and performance of worker in organization.

2.6       ORGANIZATION STRUCTURE OF MANAGEMENT EFFICIENCY
            Structures are necessary tools in organization, structures aid in the achievement of goals in organizations. Here, roles and activities of employees in an organization are defined. Besides, structure dictates the communication patterns in every organization. Eugene (1996), stated that there is need for structures such as the efficiency council, steering committee, quality improvement teams, and facilitators at the introduction and development stage of management efficiency structure.
            Onausi (1997) outline two basic factors which are:-
1.                  Management efficiency structure should mirror and not supersede the existing organization.
2.                  All ME actions are facilitating and should be designed to assist the normal organization in taking improvement actions.
Every organization adopts different structure however, for this purpose, the research recommends the structure designed by Onausi (1997
Figure 2.1 management efficiency
Sources: Seye Onausi (1997) getting the management efficiency bell rolling, the guardian news paper (Lagos) Tuesday, March 2008. The ME organization show committees, ME coordinators.
                   From the above diagram, the process of installing, ME stands from the management efficiency committee (executive and service management) with support from the quality steering committee (head of department) and ME team (any member of the staff) these team meet separately to focus on the process of change. The black dots also provides support for the process. A central coordinator for quality  may also chair a meeting of facilities from time. It is the responsibilities of the management committee and quality steering committee to plan and designs the systems and tools. Conclusively, ME organization is not responsible for quality or quality improvement. It is responsible for managing a facilitative process – a process that will assist managers and employees to take ownership of quality and more importantly a process ingrained in each individual.

2.7  HISTORICAL BACKGROUND OF EBONYI STATE WATER           CORPORATION (EBSWC) 
                   Ebonyi State Water Corporation (EBSWC) is one of the youngest state water agencies in Nigeria. The corporation came into existence with the creation of Ebonyi State  out of old Enugu and Abia States on October 1st, 1996.
                   The corporation has seven departments under the office of the general manager, namely: commercial/ marketing, finance, administrative, engineering, each of the above named departments is headed by a personal called “head of department”. Hierarchically, these head of departments are answerable to the general manager is responsible to the commissioner for public utilities for the day-today administration of the corporation.
                   The statutory responsibility of EBSWC include, among others,
·                        To construct and control all water works n the state- direct, supervise, provide, design and distribute water for public, domestic, industrial and commercial purposes-procure and maintain shops and show rooms for the display and sale of water equipment of all kinds and
·                        Maintain all equipment /plants of the corporation. The state government provides the funds for the agencies capital and recurrent expenditures and determines the project to be embarked on. It is the government of Ebonyi State that hirs and firs officers of the agency.
            However, it is on record that neither the state water corporation nor rural water supply units at the LGAs have been able to meet the requirements of their populations assembly watch April- June 2007:76).
            Ebonyi State water corporation has four major water schemes. These schemes are located in the three major senatorial zones in the state. They include.
1.      Ezillo water scheme
2.      Abakaliki water scheme
3.      Afikpo water scheme 
4.      Oferekpo water scheme
            Each of the above named water schemes as presently found in Ebonyi State has their respective capacity. The capacity of each of the water schemes in Ebonyi State is represented graphically below.
Water schemes
Capacity in cubics (3’d)
Ezillo water scheme
800m3
Abakaliki water scheme
12m3
Afikpo water scheme
10m3
Oferekpe water scheme
1000m3


ORGANIZATIONAL STRUCTURAL EBSWC
Figure 2.2 organizational structure of EBSWC source: EBSWC

Source: Ebonyi state water corporation however, the capacity water of each of the above named schemes, apart from Oferekpe which is yet to be completed has not been regular because of constant leakages in the underground and pips.
            In order to facilitate efficiency in public corporations, that gave need to have board of directors appointed by the government.
            For all public corporations, the management under the structure of controls is answerable to board of directors, which in turn is responsible to the government (Agbanifoh et al 1999).
            The management of any public corporations in any country is appointed by the government who overseers theses enterprises in the maangment structure of public enterprises each of them is ultimately accountable to the government.
            However, public corporations have not been able to show any concrete result to justify the huge financial resources hitherto allocated to them for their supposed large role. It is of this view that the research deemed it necessary to find out the impact of management efficiency on workers performance as regards to Ebonyi state water corporation.

2.8       ORGANIZATIONAL STRUCTURE OF EBSWC         
            According to records Ebonyi State water corporation as a parastatal under ministry of public utilities has its own structure comprising the following finance department, administrative department, engineering department, planning and research statistics and commercial department.

2.9       MOTIVATION SATISFACTION AND PERFORMANCE      
            What motivates employees to work on a job? Is “turned-on employees always good performance? These are basic question regarding the meaning of motivation satisfaction performance and their relationships among these factors.
            From a common sense viewpoint, job performance, is obviously affected by job satisfaction. The impact may however, be considered a constraint rather than a positive factor in that strong dissatisfaction with the work on working conditions may impede performance. Hence, we often concentrate on exceptions to performance problems or deficiencies  rather than positive effects of increased satisfaction on prospectively increase performance Mager (1970) on managerial, professional and technical positions, signs of employee dissatisfaction are often more visible than performance problems expressed in the form of turnover, absenteeism and verbalized attitudes. Satisfaction is the key to motivation to work. If motivated, most high talent individuals have the capabilities necessary, so it is largely a matter of putting in the effort.
            However, research studies over the years hence shown little relationship between measures of job satisfaction and performance outputs. Highly satisfied workers may be poor performance.


2.10    CHARACTERISTICS OF MANAGEMENT EFFICIENCY            
            This course of study underlying philosophy behind management efficiency as what the Japanese called Kaizen. According to Onodugo/Eze (2002) it major characteristics are as follow:-
1.      The competitive never stands permanent
2.      A daily pursuit of performance
3.      Skill should be in a state of constant renewal
4.      Reaching stretching to out-do yesterday
5.      Continuous improvement and the relentless quest for a better way.
6.      The organization will not improve unless you do
7.      Small incremental gains add up to competitive advantage

2.11    IMPORTANCE OF MANAGEMENT EFFICIENCY      
            Benefit may be derived from implementing the principles of management efficiency in manufacturing organizations a great deal of effort can be expended in correcting errors, rework and rectification and making some things done correctly first time and every time. Since greater efficiency and effectiveness reduced waste, lower unit costs, enhanced reputation and more business, can be achieved for internal and external customers.
            There are other benefits apart from the general benefit discussed above.
            The specific benefits are as follows:-
i.        Effectiveness: The purpose of the ME system here is to improve the effectiveness of the provision and client satisfaction. Evaluation of effectiveness may be made against specific criteria or by using comprises such as in house version contracted.
ii.     Efficiency: Efficiency is the ratio of output. Through these word management efficiency the ratio of output can be obtained by improving the quality of resources, training, inputs and outputs and without increasing capital volume or effort. Significant improvement in return on capital employed within the organization can be obtained by the improved utilization of resources systems.
iii.      Staff Motivation and Moral: Staff should be actively involved in managing efficiency and playing an important part in management decision making when ME operates, because without staff involvement ME becomes in effective and will grind to halt the delegation of power and authority to influence the way in which service provision is organized and carried out encourages staff to set their own quality goals.
This is perceived by staff as an intrinsic reward and benefit from the experience.

2.12    WAYS TO ACHIEVE MANAGEMENT OBJECTIVES EMPLOYEES EMPOWERMENT
Group and individuals should be encouraged to generate ideas for improving performances and given the decision making authority, necessary information to implement them.
Training: another ways of attaining management efficiency objectives is the use of training to achieve continual improvement. This training takes wide rarity of firms ranging from statistical quality control techniques to the team meeting designed to generate ideas for streaming operations and eliminating waste.
            Fro training to be effective, it must be planned in a systematic and objectives manner, quality training must be continuous to meet not only changes in technology but also change in the environment in which an organization operates. Quality training activities can be considered in the form of a cycle of improvement.
Rewards and recognition: a reward and recognition system aimed at showing gratitude to employees that have made out standing contributions in the continuous improvement programme some corporation adopt rewards such as cash, gifts or paid for holiday while other emphasis more on recognizing employee. Public corporations must adopt a system that best suits their corporate culture, values and employees expectations. This ranges from increase in pay and benefits to the use of merit pay discretionary pay for skill and knowledge plans, plagues and public recognition. This is one of the techniques developed and used by some corporation that have competitive advantage over others in the country.

2.13    WHY MANAGEMENT EFFICIENCY FAILS         
            Top management is satisfied with stated of thing and thus sees no reason for change when the management efficiency fails.
            Any changing process is seen by them as a management waste of resources and time. In this situation, eve if ME is initiated by the administrative staff it will still not succeed, if it does not have the top management backing. Even when ME is initiated and backed by top management and top management is not concerned for its staff it is bound to fail.
            This is because dissatisfied workers can not be totally efficient. Some times after six months of practices the corporation may loose interest. This may result in dissolving f the steering committee and deterioration in quality management system.
            Management efficiency (ME) fails when the workforce and the management do not  agree on what needs to happen. When urgent and accepted problem intervenes such as decline in sales, this may bring an abrupt stop to implementation of ME as a decline income and profit.
            When there is no set target, or performance measures, progress cannot be measured . when progresses are not analyzed, systems are weak and procedures are not written down.
            Management efficiency is a describe desires for performance improvement said one management consultant that is a cynical view, but it contains grain of truth so marry public corporation try to adopt this with setting it upon firm foundations.

2.14    REQUIREMENTS FOR SUCCESSFUL IMPLEMENTATION OF MANAGEMENT EFFICIENCY  
There are numbers of requirements which need to be fulfilled, for ME to be successfully implemented in any organization. The requirements are include:-
a.      top management commitment and leadership. This is a very important factor for success. The chief executive officers are the catalysts in management efficiency introduction in any organization. The nature of the CEO’s roles is both symbolic and substantive in the introduction of ME thus, the CEO and his senior mangers must not only be prepared to give commitment to ME but must also be prepared to head it. To do this, they must have a good knowledge of ME principles and the likely renew and reward to be obtained by implementing it.
b.      Adequate training: Management efficiency principles are essential requirements for training of all employees. The aim of such training is to ensure all staff can imbibes the ME culture. The training thus emphasizes:-
i.        the reason for the ME introduction
ii.     its universal application in all organization is likely to drive from it.
iii.   And the benefits, which the organization is likely to derive from it.
c.   Management goals at inception: in order to measure the result of ME effectively, it is necessary to determine or specify programe goals at inception. This is the only way the result can be meaningful when measure.
(i)        Need for Change
            A second perquisite for ME introduction is a compelling for changing occasional by poor results from existing practices such as a compelling need may be result from.       

i.                    low profitability
ii.                 high cost of production or service cost
iii.               absence of quality orientation
iv.               poor service culture
v.                  customers dissatisfaction
vi.               intense competition

2.4       THE ROLE OF TOP AND SENIOR MANAGEMENT                        
            The major responsibility of top/senior management is not simply to introduce ME but more important to make it work. It demands a high level of commitment from members of top and senior at all times to make it work.
            Top/senior management commitment means amongst others thing that member of top/senior management individually are collectively responsible for its success.

2.15    THE ROLE OF EMPLOYEE      
            Very often, employees ask yes we understand the philology of organizational survival through the help of ME but what do we get from committing ourselves to it?
            Our answer has usually been to rephrase the question to, what is our role in it? Because, understanding the role is vital to acknowledging the benefits that each employee can reap from ME. The researcher believes that the most important role for the employee in the ME process is to ensure that top/senior managers do not renege on their commitment to performance and this means:-
·        Constantly generating suggestions for improvement to management
·        Taking ME educational workshop seriously
·        Adopting CQI as their daily work culture.
When employees play these roles, they reap the benefits described at the beginning of this discussion indeed, work becomes more fun.

2.16    THE ROLE OF THE UNIONS
            Contrary to fear initially expressed by many union leaders, ME actually enhances rather than threatens the position of their members in the work place. ME leads to increased organizational effectiveness and hence to greater job security for each employee. The union therefore has a major responsibility to
·        Press for the introduction and maintenance of ME
·        Market ME to its membership
·        Hold top/senior management to its premised commitment to ME as a continuous, never ending process.

In conclusion ME perform a self servicing function not for an organization but for each employee in the organization.
Management efficiency is committee to employee ownership of the continuous quality improvement process because each and every employee can influence the process at any stage through active involvement and participation. While management will provide over all guidance for the process each and every one will have the opportunity to participate in making and implementing decision aimed at achieving and sustaining implementing their work and work environment.
Management efficiency performs a self servicing function not only for an organization. At the corporation level, however the following words by a quality director in one America’s excellent public corporation are not only relevant but important enough to have introduced ME and corporation which are out of business.
By taking the decision to ME now public corporation now public features of ME is assured, but the future of all its employees.

2.17    WORK DOWN ON MANAGEMENT EFFICIENCY  
            Before implementation in EBSWC this study has been down in Nigeria on management efficiency in public corporations. Before they decide to apply it.
            To some of us, it was like a dream and to others, a mere wish when in 2008, the management of Ebonyi  State water corporation finally decided at its general management forum (GMF) to adopt management efficiency as a way of doing their work and relating to one another in order to consistently achieve planned and continuous improvement in the quality of all that we do and the results that follow from them. This was not only to ensure that EBSWC remains the benchmark for the long-run to be rated among the heading public corporations in its category world wide.

2.18    PROBLEMS OF IMPLEMENTING MANAGEMENT EFFICIENCY          
            Okolie (1993( identified some problems that may arise in the implementation of ME in an organization. These includes the application of measurement to administrative practices, narrow based training, failure to provide incentives by recognition, loss of focus, loss of creditability resistance to change, lack of all employee commitment to quality and lack of adequate focus on the customer satisfaction and requirements.
            Okolie (1996) the problems experienced by ME practioner include: lack to management commitment and leadership, lack of programme focus, inadequate preparation, resistance during integration lack of team work, loss of quality champion, non implementation of solutions no evolution of results, no clear plans to sustain the programme, failure in the ability to tackle the important issues, lack of effective communication and so on.
            However, Chukwuigwe (1997) in his paper presented at Delta Hotels Ltd Port Harcourt stated some of the solutions to obstacle associated with management efficiency implement in the organization. These includes education focus on employee about quality communication participation, facilitation, support performance, putting clear machines of ME training recognition, evaluation of result base on recognition, adequate commitment by top and middle management and so on.


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