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.
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.