ABSTRACT
The research focuses on Reengineering Nigeria Public Sector Organizations for efficiency. The objectives of this study are; to investigate the reasons for failure of public sector organizations in Nigeria; to evaluate how to reengineer Nigeria public sector organizations especially the PHCN and NNPC; to identify the impact of reengineering in Nigerian public sector organizations; to evaluate the problems that can be encountered in reengineering public sector organization in Nigeria. Primary and Secondary data were used. The population of the study is 1800, from which the sample size of 327 was determined using Taro Yamane’s formula. The research instruments used were questionnaire and interview. Chi-square was used to test the hypotheses. The findings from the study reveal that; maladministration, government interference, corruption are the reasons for failure of Nigeria public sector organizations; adequate funding, training and developing employees’ privatization and commercialization could reengineer Nigeria public sector organizations; reengineering Nigeria public sector organizations could lead to provision of quality goods and services; financial constraints, corruption, bureaucratic bottleneck are challenges of reengineering public sector organizations. The study recommends that government should endeavour to motivate staff adequately to enhance efficiency and productivity; infrastructural facilities should be improved as a matter of urgency for sustainability of public organizations; Nigerian public sector organizations should be privatized or commercialized to avoid imminent collapse; transparency, good moral and ethical standards should be introduced as a rule in Nigerian public sector organizations..
CHAPTER ONE INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Most Nigerian Public Sector Organizations have disappointed a vast majority of Nigerians. These organizations, especially those that provide power and energy have provided very poor services in the country. The operating costs and debts of these organizations have risen dramatically that they have sparked a nationwide call for restructure or re-engineering.
Most public sector organizations have large number of employees, the Power Holding Company of Nigerian (PHCN) currently has 50,000 workers, while the Nigerian National Petroleum Corporation (NNPC) workforce is slightly lower, whose jobs would be threatened, and should these organizations fail. There is therefore the need to find a lasting solution to the aliments or failures of these public sector organizations as to forestall an unemployment crisis, a debt crisis, and ever increasing operating costs. This solution may lie in reengineering these organizations. (www.phcnonline.com)
Reengineering known as business process reengineering (BPR) is “the fundamental rethinking and radical redesign of business process to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, services and speed”. (Hammer and Champy 1993:32).
As conceived, it means tossing aside old system starting over by going back to the beginning and inventing a better way of doing work. Its proponents emphasize the words, fundamental, radical, dramatic, and process. The message here is simple and straight forward, businesses must struggle to discard habits and traditions, those scarce and cherished walls of large, corporate entities that have transformed them into centralized bureaucracies, creating layers and layers of management over time, and which in turn symbolize the production of layers and layers of corporate rules, procedures and manuals.
What had resulted in less flexibility and adaptability and therefore less capacity for competition against small, lean and aggressive niche competitors engaged in predatory market offensive (Hammer and Champy 1993:3).
In some ways, reengineering appears to be a reincarnation of Taylor’s scientific management model, which aspired to employ scientific and empirical methods in understanding work at the shop room level. (Taylor, 1911) Taylor’s use of time and motion studies advanced the principles of understanding the work process to eliminate stages that cause wastage and fatigue among workers in the shop room. Reengineering would do the same thing except that it advocates the more radical prescription of discarding old process and starting a new. (www.phcnonline.com).
Consequently, it is not difficult to understand why reengineering has captured the imagination of practitioners and business owners, it offers an opportunity to make policy makers take another fresh look at the logic and rationale of these rules and regulations, opening possibilities of discarding old ways of doing business. This is significant because through the years, much attention has been given to the agenda of reforming the public sector organizations and appraises their poor performance to make them viable to provide services that they were statutorily established to provide for Nigerians. (Danilo R. Reyes: 2000).
1.2 STATEMENT OF THE PROBLEM
It is a known fact, that many public sector organizations especially the Power Holding Company of Nigeria (PHCN) and the Nigerian National Petroleum Corporation (NNPC) have failed to deliver the services for which they were established.
In 1981, Nigeria, like many other oil producing countries experienced a major economic recession due to the fall in the production and price of crude oil, which is the major source of government revenue. It was revealed that most of the public sector organizations were infested with critical problems amongst which were defective capital structures resulting in heavy reliance on government for finance, corruption, misuse of monopoly powers, age falsification to remain in service beyond stipulated period, certificate forgery to gain entry and get promotions,
ghost workers syndrome, among other ills were the problems of the public sector organizations.
In fact, after a decade of reforms in Nigeria public sector, it is still not time to jubilate because facilities and services are still poorly developed and delivered. Thus, the study focuses on reengineering Nigeria public sector organization for efficiency.
1.3 OBJECTIVES OF THE STUDY
The specific objectives of this research are,
1) To investigate the reasons for failure of public sector organizations in Nigeria.
2) To evaluate how to reengineer Nigeria public sector organizations especially the
PHCN and NNPC
3) To identify the impact of reengineering on Nigerian public sector organizations.
4) To evaluate the problems that can be encountered in reengineering public sector organizations in Nigeria.
1.4 RESEARCH QUESTIONS
The following research questions were formulated for the study
(1) What are the reasons for failure of public sector organizations in Nigeria? (2) How would Nigeria public sector organizations be reengineered?
(3) What is the impact of reengineering on the Nigerian public sector organizations? (4) What are the problems encountered in reengineering public sector organizations
in Nigeria?
1.5 RESEARCH HYPOTHESES
To guide this study in achieving its objectives, the following null and alternate hypotheses were formulated.
(1) H0: Maladministration, government interference and corruption are not reasons for failure of public sector organization.
H1: Maladministration, government interference and corruption are reasons for failure of public sector organization.
(2) H0: Adequate funding, training and developing employees, privatization and commercialization could not reengineer Nigeria public sector organizations.
H2: Adequate funding, training and developing employees, privatization and commercialization could reengineer Nigeria public sector organizations.
(3) H0: Reengineering Nigerian public sector organizations could not
| H3: | lead to provision of quality goods and services. Reengineering Nigerian public sector organizations could | lead to | |
| provision of quality goods and services. | |||
| (4) | H0: | financial constraints, corruption, bureaucratic bottleneck challenges of reengineering public sector organizations. | are not |
| H4: | Financial constraints, corruption, bureaucratic bottleneck challenges of reengineering public sector organizations. | are the |
1.6 SIGNIFICANCE OF THE STUDY
This work is useful to the government as it provides information that will guide government in her policies and programmes for public sector organizations.
It will also serve as a good source of material for further studies.
1.7 SCOPE
The study covers the concept of reengineering, principles of reengineering, Elements of Reengineering, strategies and steps to a successful public sector reengineering. The study was carried out in Power Holding Company of Nigeria (PHCN) Okpara Avenue, and Nigerian National Petroleum Corporation (NNPC), Emene Depot, within Enugu Metropolis.
1.8 LIMITATION OF THE STUDY
The study has the following constraints
Financial Constraints: Finance was a major setback in carrying out this research.
Time: There were constraints of time in going to places where data and information relevant to the study could be obtained.
Attitude of the Respondents: Some of the respondents were unwilling to cooperate with the researcher because they felt that they would not benefit from the research and have the mindset that the secret of the organizations will be exposed.
1.9 DEFINITION OF TERMS (a) Reengineering
Reengineering is a strategic management concept that advocates radical changes in the
way organizations are run in order to achieve order-of-magnitude improvements.
(b) Total Quality Management (TQM)
This is also a management concept that seeks to achieve improved performance by carrying out small changes that bring about marginal or monumental improvement.
(c) Decentralization
Is a management principle that kicks against the concentration of authority at the top management level. It advocates the delegation of authority to the lower levels of management.
(d) Business Process Reengineering
Is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality service and speed.
1.10 PROFILE OF THE SELECTED ORGANIZATIONS UNDER STUDY
1.10.1 The Nigerian National Petroleum Corporation (NNPC)
This was established in April 1, 1977 as a merger of the Nigeria National Oil Corporation and the Federal Ministry of Mines and Steel. NNPC by law manages the joint venture between the Nigeria federal government and a number of foreign multinational corporations, which include, Royal Dutch Shell, Agip, Exxonmobile, Chevron and Texaco.
Through collaboration with these companies, the Nigerian government conducts petrol demand development. NNPC has sole responsibility for upstream and downstream developments, and it is also charged with regulating and supervising the oil industry on behalf of the Nigerian government. In 1988, the corporation was commercialized into twelve (12) strategic business units, covering the entire spectrum of oil industry operations which include; exploration, and production, gas development, refining, distributions, petrochemicals engineering and commercial investments. NNPC entered the last decade of the century as a young company still trying to carve out an identity for itself, independent of political control and still learning how to master the technological and commercial complexities of the oil industries. It did have a more developed diversification strategy than even before in its history, however, and for the moment a government willing to dilute its holdings in the industry as the price for supporting the corporation’s growth. NNPC with civil unrest, political instability, border disputes, corruption at the highest level and poor governance. Even so, international oil companies looked at Nigeria as a lucrative investments opportunity related to upstream oil exploration. Although NNPC management has been promising changes over the past years, company efforts had been slow at best and many Nigerians looked at NNPC with disdain.
New reforms however were on the horizon for the new millennium. After sixteen years (16) of military rule, Nigeria held democratic elections in 1999; Olusegun Obasanjo was elected as president and immediately set out to re-organize the country’s oil and gas sector.
As part of the restructure, strong emphasis was placed on natural gas development, at a time when the country’s gas was been flared a very wasteful and environmentally unfriendly process. As such a mandate was set forth that called for the termination of gas flaring, a focus on environmental cleanup and a realization of economic gains from natural gas in both the import and export market, so that gas revenue equaled oil revenue by 2010. Although NNPC looked to be on the positive path for the future it continued to face issues of civil unrest and corruption, but there were no doubts that NNPC would remain a fixture in Nigeria’s oil and gas sector.
1.10.2 Historical Background of Power Holding Company of Nigeria (PHCN)
In 1950, the Federal Government passed the electricity corporation of Nigeria ordinance No.15 which gave birth to the Electricity Corporation of Nigeria (ECN), which became the statutory body responsible for generation transmission, distribution and sale of Electricity in Nigeria.
In 1962, the Federal Government established the Niger Dam Authority (NDA) by an act of parliament with the mandate to construct and maintain dams and other works on the River Niger and elsewhere to generate electricity by means of water power and improve navigation.
In June 1972, NEPA became operational with the responsibility to generate, transmit and distribute electricity to all part of the federation. (www.telling.com).
Having identified inadequate electricity supply as one of the critical problems of Nigeria since the dawn of the millennium, the Federal Government enacted the Electric Power Sector Reform (EPSR) Act on 11th March, 2003 with a view to making the private sector the leading engine of growth and reintegrate Nigeria into the global economy as a platform to attract foreign direct investment in an open and transparent manner. The reform culminated in the repeal of the National Electric Power Authority, (NEPA) and
the electricity act into what is today known as Power Holding Company of Nigeria (PHCN). And it’s restructuring for vertical integration structure into 18 unbundled company, six generation and eleven distribution companies respectively.
The Nigeria public sector organization especially those that provide energy and power constituted an appropriate context for the study of reengineering prospects. This is because they are strongly influenced by both economic and institutional forces.
In Nigeria, the relatively recent entrance of commercialization and privatization of government public sector organizations has caused them to become much more conscious of their economic positions. But has it led them to orientate towards efficiency in the production and provision of their services to Nigerians. This questions is not mere rhetoric as to say the least, the current situation of Nigerian energy sector is anything but satisfactory. The entire sector of the economy is barely coping, just as economic activities are gradually grinding to a halt.
This material content is developed to serve as a GUIDE for students to conduct academic research
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