ABSTRACT
Organizations, be it in the public or private sector, strive to maintain the right quality and quantity of staff to contribute optimally to its goals and objectives. Consequently, one of the programmes developed by the Federal Government in its on-going reforms, to make its Institutions work more efficiently and effectively, is rightsizing. The underlying philosophy is transformation. Unfortunately, the operating officers seem to be at difficulty in implementing this important policy reform of the Federal Government. Consequently, the organizations are either overstaffed or understaffed. In either case, productivity suffers. As a result of these the study sought to find out the impact of the various rightsizing techniques (maintenance of accurate personnel records and regular personnel audit, Human Resource Planning, employee training and development; employee retention strategies such as performance pay, employee training and career development, high level of wage rate and organizations image, employer paid medical scheme, employer provided or employer paid housing, retired benefits etc, etc and employee regular evaluation, on efficiency. The study was conducted in Enugu and three public sector Institutions, Federal Radio Corporation of Nigeria, Power Holding Company of Nigeria Limited and Nigerian Television Authority were used as case study. The survey design was used for the study. The population and sample size of the study were 1175 and
298 respectively. The questionnaire and interview methods were used to elicit responses from the respondents. The data collecting instruments were appropriately tested to ensure Reliability and validity. Five Hypotheses were developed and tested using chi-square (x2) analytical techniques to find out the impact of the various rightsizing techniques mentioned above on efficiency. The study revealed that rightsizing techniques indeed have significant impact on efficiency. It is therefore recommended that public sector organizations should attach importance to effective management of its Human Resources through the application of appropriate rightsizing techniques to maintain optimum workforce and right caliber of staff at all times in order to enhance efficiency.
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Rightsizing is the Human Resource Management function of manpower planning and staffing. Institutions are established to accomplish specific goals. To achieve these goals, the human resource is one of the crucial factors, without which the goals are unattainable. The human resource is the engine room of ideas and production. It is the human resource that organizes, plans, controls and directs other resources. For example, while other factors of production like technology, financial and material resources may be in abundant supply, they have to be coordinated by a human being, who because he has a will, personal desires and preferences, can direct them to accomplish desired objectives. Thus, the need to maintain the right quality and quantity of staff with the right knowledge, techniques and skills, as well as the right frame of mind and attitude to contribute optimally to organizational goals and objectives. (African Training and Research Centre in Administration for Development Workshop, October
2000). According to Olowo and Ademolekun (2005), it is becoming more essential to secure and manage competent human resource as the most valuable resource of any organization because of the need for effective and efficient service delivery.
In the past few decades, all over the world, organizations and environment have undergone rapid and tremendous changes largely due to globalization. Globalization has resulted in the huge advances in the area of technology. This has completely reshaped the landscape of formal organizations all over the world, the less sighted organizations operating in the same environment lost their fortunes and in some cases, were faced with virtual extinction as a result of the inability to anticipate and adapt their operations to changes brought about by the latent forces of globalization in the society (Onyeonoru, 2005). Change is a process that requires action and which ever way workers react to it, has implicit or explicit implications for realization or non realization of organizational goals and objectives. Nigerian work organizations are not insulated from changes emanating from globalization forces. And since globalization presently appears irreversible, every organization in both public and private sectors must prepare its
workforce adequately to cope with the frequent changes associated with globalization.
Consequently, the Federal Government has since 2004, commence various reform programmes aimed at making its institutions work more efficiently and effectively. One of such programmes adopted in its on-going reform, is rightsizing. The underlying philosophy is transformation. The overall vision is a Nigerian public sector that works efficiently and effectively for the people. Rightsizing may be defined as the process through which organizations determine and maintain a level of employment “right” for its requirements or the continuous and pro-active assessment of mission-critical work and its staffing requirements. It is an on-going planning process to determine the optimal number of employees in every area of the organization. Therefore, for an organization to realize its goals and objectives, appropriate rightsizing techniques such as, the maintenance of accurate personnel records and regular personnel audit, human resource planning, employee training and development, employee retention strategies and employee regular evaluation are sine-qua-non for enhancing efficiency.
1.2 Statement of the Problem
The study became imperative when viewed against the backdrop of the observed inefficiency and monumental waste arising from huge personnel cost in the public sector institutions, largely due to poor human resource management practices. The following were common features: Organizations are either understaffed or overstaffed; overbloating workforce with redundant staff performing overlapping and duplicating functions; reported cases of ghost workers and staff with fake certificates symptomatic of poor personnel records and irregular or absence of personnel audit resulting in organizations inability to ascertain accurately at any point in time, the number of staff in its employment; employee recruitment and selection processes based on considerations other than merit; aging workforce without proper succession plan; prevalence of unskilled workforce; absence of well tailored training and development programmes to improve the employees skill and build capacity; underfunded public institutions lacking the capacity to make optimal use of technological changes to modernize and adapt to global changes; lack of adequate incentives and appropriate reward
systems to create job satisfaction, motivate and retain skilled/ experienced employees; ineffective and biased employee performance appraisal processes resulting in highly demotivated workforce and rapid employee turnover. (Bureau of Public Service Reforms Report, 2008).
The resultant effect is the glaring inefficiency in realizing the objectives for which the organizations were set-up and huge personnel costs which the government constantly complains constitutes a major source of drain on its lean financial resources. Consequently, the federal government recently commenced various reform programmes aimed at returning the public sector organizations to the part of effectiveness and efficiency. One of the policies adopted in the reform programmes is ‘Rightsizing’. Incidentally, the operating officers seem to be at difficulty in implementing this important policy reform of the federal government. Consequently, the organizations are either overstaffed or understaffed. In either case, productivity suffers. The study therefore sought to find out the various techniques the federal government has been adopting to rightsize its workforce and how effective they have been in achieving efficiency.
The study therefore seeks to find out the various measures adopted by the
Federal Government to rightsize its workforce and its impact on efficiency. That is, maintenance of optimum result oriented workforce resulting in the reduction of huge personal costs, wastage as well as timely realization of set objectives.
1.3 Objectives of the Study
This study aims at assessing the impact of rightsizing on efficiency in the public sector organizations. The specific objectives are:
1] To find out the impact of maintaining accurate personnel records and regular personnel audit as a rightsizing technique on efficiency in the public sector organizations.
2] To determine the impact of human resource planning as a rightsizing technique on efficiency in the public sector organizations.
3] To ascertain the impact of employee training and development as a rightsizing technique on efficiency.
4] To evaluate the impact of employee retention strategies as a rightsizing technique on efficiency in the public sector organizations.
5] To determine the impact of regular employee evaluation as a rightsizing technique on efficiency in the public sector organizations.
1.4 Research Questions
1. Does the maintenance of accurate personnel records and regular personnel audit as a rightsizing technique have any impact on efficiency of your organization?
2. Does human resource planning as a rightsizing technique have any impact on efficiency of your organization?
3. Does employee training and development as a rightsizing technique have any impact on efficiency of your organization?
4. Does employee retention strategy have any impact on efficiency of your organization?
5. Does regular employee evaluation as a rightsizing technique have any impact on efficiency of your organization?
1.5 Research Hypotheses
The following research hypotheses are hereby formulated to guide the study.
H1: The maintenance of accurate personnel records and regular personnel audit as a rightsizing technique has a significant impact on efficiency of your organization.
H2: Human resource planning as a rightsizing technique has a significant impact on efficiency of your organization.
H3: Employee training and development as a rightsizing technique has a significant impact on efficiency of your organization.
H4: Employee retention strategies as a rightsizing technique has a significant impact on efficiency of your organisation.
H5: Regular employee evaluation as a rightsizing technique has a significant impact on efficiency of your organization.
1.6 Significance of the Study
The findings and recommendations of this study will be beneficial to so many stakeholders in the public sector. The significance of the study can therefore be summarized as follows:
1. The Administrators of Ministries, Departments and Agencies
(MDAs) and Parastatals will benefit from the study because it will enable them:
Determine the optimal staff requirement and maintain proper personnel record to eliminate “ghost workers” syndrome.
Persistently review their organizational structure to determine appropriate and manageable structure.
Persistently conduct skills gap analysis to identify the organization’s training needs, and
Apply the various rightsizing techniques to trim down and streamline their workforce to enhance performance and conveniently adapt to changes occasioned by globalization.
2. The Government will benefit from the study because it will be better informed on the maintenance of only organizations, structures and personnel that are “right” and actually needed for the efficient execution of its polices and implementation of its programmes; streamline organizations with overlapping and duplicating functions to eliminate redundancy and make them productive; maintain optimal and vibrant workforce that are not only qualified but skilled to minimize waste and enhance efficiency..
3. The employees will benefit from the study because it will enhance their skills through proper training and development; and deserved promotions and rewards through recognition of their performance and also benefit from appropriate retention packages/perquisites provided by the organizations to encourage and retain them.
4. The students of public and business administration will benefit from the study because it will enable them better understand the concept of rightsizing and the consequences of not doing so and
how it could be used to maintain optimal workforce without necessarily having to downsize, lay-off or retrench as is widely practiced today.
5. The knowledge generated by the study will be beneficial to researchers because it will provide information or secondary data that will enrich their future research endeavours in the field of administration. This will enable them come out with authentic positions on their findings. Their recommendations will assist in the efficient administration of the public sector institutions.
6. The general public will benefit from the study because efficiency in service delivery in the public sector translates into delivery of democracy dividends and improved infrastructures – uninterrupted power (electricity) supply,, improved standard of education and healthcare services, maintenance of roads/bridges and timely payment of terminal benefits (Pensions and Gratuity), etc.
1.7 Scope of the Study
The study focuses on rightsizing as a technique for achieving efficiency in the public sector organizations. The concept of rightsizing and various rightsizing techniques (maintenance of accurate personnel records in regular personnel audit, human resource planning, employee training and development, employee retention strategies and regular employee evaluation) and their respective impact on efficiency of the public sector organization shall be discussed.
The study is undertaking in Enugu, Enugu State and three public sector organizations namely Power Holding Company of Nigeria (PHCN) now Electricity Company of Nigeria (ECN), Federal Radio Corporation of Nigeria (FRCN) and Nigerian Television Authority (NTA) are used as population sample.
1.8 Limitation of the Study
The study did not go without any challenge. The major limitations encountered in the course of carrying out the study were as follows:
1] Existing Literature on Rightsizing is relatively scarce. Consequently, the search for relevant materials needed for the research work was somehow difficult.
2] Attitudes of the Respondents: Some of the respondents contacted were either afraid to volunteer information or indifferent. This was revealed in their persistent demand for the full identity of the researcher and actual purpose of the study.
1.9 Brief Historical Perspective of Nigeria
Nigeria is a geographical entity or expression located in West Africa. It is bounded in the North by Chad and Niger Republics, on the East by the Cameroun Republic, West by Benin Republic and the South by the Atlantic Ocean.
It comprises of thirty-six states including the Federal Capital Territory – Abuja. Apart from the states, the country is further divided into six geo-political zones for administrative convenience. These are North-Eastern, North-Western, North-Central, South-South and the South-Eastern geo-political zones.
Nigeria is said to have a population of about 160 million people. It is made up of many ethnic groups with the Hausa, Ibo and Yoruba being the major group. The predominant religion practiced in Nigeria are Christianity and Islam. Nigeria presently is under a democratic rule.
The area where the study is undertaken is Enugu, Enugu State. Enugu State is in the South-East geo-political zone. The sampled organizations are all representative of public sector organizations and are all located in Enugu.
1.10 Historical Background of the Organizations under Study
Power Holding Company of Nigeria PLC (PHCN)
The Power Holding Company of Nigeria (PHCN) formerly the National Electric Power Authority (NEPA) is an organization governing the use of electricity in Nigeria. It produces and distributes power through its subsidiaries.
The history of electricity development in Nigeria dates back to the end of
the 19th Century, when the first generating power plant was installed in the city of Lagos precisely in 1898. Between 1989 and 1950, electricity undertakings were scattered all over the towns. Some of the undertakings were Federal Government bodies under Public Works Department, some by the Native Authorities and others by the Municipal Authorities –
Electricity Corporation of Nigeria (ECN). By 1950, the colonial government passed ECN Ordinance No. 15 of 1950 to integrate electric power development in the country to make it effective. By 1970, the Military Government appointed a Canadian Consultant firm “SHOWMENT LIMITED” to look into the technical details of the merger between Niger Dam Authority (NDA) and Electricity Corporation of Nigeria (ECN). The report was submitted and by Decree No. 24, the ECN and NDA were merged to become the National Electric Power
Authority (NEPA) with effect from 1st April, 1972. The actual merger did
not take place until 6th January, 1973, when the first ever General Manager was appointed. The statutory function of the Authority is to develop and maintain efficient co-ordination and economical system of electricity supply throughout the Federation. From 1989, NEPA gained a new status – Quasi commercialization. By this, NEPA was granted partial autonomy and by implication, it is to feed itself.
Its major source of power is through Hydro Plant located at Kainji Lake at Jebba in Niger State. It has many thermal plants. The supply is heavily regulated by the volume of water at the middle course of River Niger in Jebba. Presently, the total generating capacity of the six (6) major power stations is about 5,000 mega atts. This is grossly inadequate to meet the nation’s power needs. Effort is being made to pursue the completion of the various independent Power Plants scattered all over the country to ensure adequate and reliable power supply to all parts of the country.
In 2005, the name was changed from NEPA to Power Holding Company of Nigeria (PHCN) and is headquartered in Transformer House, Maitama, Abuja, Nigeria. As PHCN, it has eleven (11) major regional operational areas with many sub-zones under each operational area. Each Regional Area is headed by a Regional Manager, while each Zone is headed by a Zonal Manager.
For several years, despite consistent perceived cash investment by the Federal Government, power outages have been the standard for the Nigerian populace and the bane of our industrial development. Generally, the tariff has been criticized as being too low compared to the cost of generating power. The Federal Government of Nigeria increased the
tariff with effect from 1st July, 2012, to attract foreign investors into the electricity sector. The sector is presently undergoing very serious reforms. The staff strength of the Corporation’s Enugu Office is 812.
Federal Radio Corporation of Nigeria (FRCN)
Federal Radio Corporation of Nigeria (FRCN) is the umbrella body of Radio broadcasting in Nigeria. It was established in 1931 by the then Governor of Nigeria, Donald Cameron. Between 1931 and 1948, it operated in Lagos alone. After the creation of the Regional Governments by Lord John Macpherson in 1951, the agitation for the creation of Regional Corporation came on. By Oliver Lyttleton Constitution of 1954, the Regional Premiers each established its regional branch of Radio Nigeria called Nigerian Broadcasting Corporation (NBC). It was commercialized in 1987 and changed its name to Federal Radio Corporation of Nigeria (FRCN). It has branches at Enugu, Kaduna, Ibadan and Lagos. In 1991, it opened more branches under the regional coverage areas. Recently in 2008, it opened new branches at Abakaliki, Port-Harcourt, Kano, Yola, Maiduguri, Damaturu, Bauchi, Sokoto, Katsina, Birnin Kebbi, Minna, Makurdi, Jalingo, Jos, Lokoja, Umuahia, Imo, Awka, Asaba, Oshogbo, Ado-Ekiti, Ilorin, Abeokuta, Benin City, Uyo, Yenagoa and Calabar. Commercialization of the broadcasting institution means that it is partly funded by the Federal Government and partly through internally generated revenue from its operations.
In 1995, it licensed private Radio Broadcasting which is given lower frequency coverage in the Medium Wave Band. Voice of Nigeria (VON) is the external arm of Federal Radio Corporation of Nigeria and reaches out to listeners externally for the entire country.
The Federal Radio Corporation of Nigeria is headed by a Director
General; while the various Zonal Offices are headed by Zonal Directors. The Enugu Office has a staff strength of two hundred and sixty one (261). It has the statutory function of creating general awareness through broadcasting programmes.
Nigerian Television Authority (NTA)
It was established in 1931 by Donald Cameron. It was at the inception highly restricted to Lagos Island then occupied by the colonial masters. It was in 1954 that the Regional Premiers made effort to establish Regional Television Stations. Even at that, only Western Region did that in 1957, which actually commenced operation in 1959. Eastern Region followed in
1960 with the Northern Region in 1964.
In 1977, it nationalized its services with branches in major cities: Aba, Sokoto, Kano, Maiduguri, Yola, Jos, Zaria, Abeokuta, Ilorin, Benin City, Port-Harcourt and Calabar. With the creation of States, each State capital is entitled to have one branch of NTA. The services of Nigerian Television Authority (NTA) are fully commercialized.
It is headed by a Director General, while the Zones and Stations are headed by Zonal Directors and Managers respectively. The staff strength of its Enugu Office is one hundred and two (102).
1.11 Definition of Relevant Terms
* Rightsizing:
The process through which organizations determine and maintain a level of employment “right” for its requirement, or the continuous and pro-active assessment of mission – critical work and its staffing requirements (Casio, 2003 and Champy, 1997).
* Public Sector
The part of the economy of a country that is owned or directly controlled by the government (A. Adebayo, 2001).
* Private Sector
The part of the economy of a country that is not under the direct control of the government (A. Adebayo, 2001).
* Over staffing
A situation where existing workforce in an organization far exceeds the required or optimal number of staff for the organization (Casio, 2003).
* Redundancy
This is a state of being superfluous and unnecessary or a situation whereby services of workers are no longer needed for any available job in an organization. (Duru, E.J.C., Ikejiani-Clark, M. and Mbat D.O., 2001).
* Efficiency
This refers to a situation of optimal productivity at minimal cost or achievement of maximum work with minimum input of energy or resources (A. Adebayo, 2001).
* Effectiveness
This refers to the achievement of some policy goal if possible at minimum cost but without any doubt successfully. Or the ability to achieve a set goal irrespective of the cost involved. (A. Adebayo, 2001).
* Job Evaluation
This is concerned with personnel performance appraisal (Etuk, E.J., 1991).
* Job Specification
This refers to a situation were the qualifications, skill, experience or expertise needed to perform a job is stated and clearly specified (Etuk, E.J., 1991).
* Recruitment
The process of locating, identifying, and attracting capable applicants.
* Selection
The process of screening job applicants to ensure that the most appropriate candidates are hired.
This material content is developed to serve as a GUIDE for students to conduct academic research
RIGHTSIZING AS A TECHNIQUE FOR ACHIEVING EFFICIENCY IN THE NIGERIAN PUBLIC SECTOR
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