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A Case Study of Nigerian Telecommunications Limited (Nitel)

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A Case Study of Nigerian Telecommunications Limited (Nitel) i TITLE PAGE ORGANIZATIONAL DEVELOPMENT AS A STRATEGIC TOOL FOR RE-ENGINEERING (A CASE STUDY OF NIGERIAN TELECOMMUNICATIONS LIMITED (NITEL) BY EZE PAULINUS CHIEMEKA PG/MBA/07/46559 THE DEPARTMENT OF MANAGEMENT FACULTY OF BUSINESS ADMINISTRATION UNIVERSITY OF NIGERIA ENUGU CAMPUS IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER OF BUSINESS ADMINISTRATION IN MANAGEMENT SUPERVISOR: UJF EWURUM DECEMBER, 2008 ii CERTIFICATION Eze, Paulinus Chiemeka, a post graduate student in the Department of Management with registration number PG/MBA/07/46559 has satisfactorily completed the requirements for the course and the research work for the award of masters degree in Business Administration (MBA) in Management. The work embodied in this research is original and has not been submitted in part or full for any other University. …………………………….... Eze, Paulinus Chiemeka PG/MBA/07/46559 Student ……………………….. ………………………… DR. UJF Ewurum Mr. C. O. Chukwu Supervisor Head of Department …………………….... ………………………… Date Date iii DEDICATION To God Almighty and the Holy family of Jesus, Mary and Joseph. iv ACKNOWLEDGEMENTS My profound gratitude goes to God Almighty by whose grace life and its fourth comings became possible for me. At a point I thought it is an impossibility completing the study but here it is not out of my personal efforts but with the help of some personalities. My sincere gratitude also goes to my supervisor Dr. UJF Ewurum, Mr. R. O. Ugwoke for their fatherly care and assistance through out the entire programme. I also appreciate the assistance of the members of staff of University of Nigeria, Enugu Campus Library and that of the NITEL Enugu regional headquarters. I must in a special way appreciate the efforts of my parent, siblings, and friends among whom are Chikwas and Chika who tirelessly stood by me and kept encouraging me till the very end of it. I sincerely owe you more than this. I will never forget you, Mr. C., Cyril, Osita, Agu O. Agu, Snoop- dogg, Nwa fada, Tobechukwu, Amaka, Nk, and a host of others too numerous to mention. You are simply wonderful. Thanks for being there for me. I adore you all. v TABLE OF CONTENTS Title Page: … … … … … … … … … i Certification: … … … … … … … … ii Dedication: … … … … … … … … iii Acknowledgement: … … … … … … … iv Table of Content: … … … … … … … v Abstract: … … … … … … … … … vii CHAPTER ONE: INTRODUCTION 1.1 Background of the Study: … … … … … 1 1.2 Statement of the Problem: … … … … … 9 1.3 Objectives of Study: … … … … … … 11 1.4 Research Question: … … … … … … 12 1.5 Research Hypothesis: … … … … … 13 1.6 Significance of the Study: … … … … … 16 1.7 Scope of the Study: … … … … … … 17 1.8 Limitation of the Study: … … … … … 17 1.9 Definition of Terms: … … … … … … 18 References: … … … … … … … 21 vi CHAPTER TWO: LITERATURE REVIEW 2.0 Introduction: … … … … … … … 22 2.1 Definition of Organization: … … … … 22 2.2 The Theoretical Framework: … … … … 25 2.3 Concept of Organizational Development: … … 28 2.4 The Organization Development Process: … … 33 2.5 The Organization Development Interventions Strategies: … … … … … … … 35 2.6 Limitations of Organization Development: … … 40 2.7 Industries that have used Organization Development in the Process Re-engineering the Organization: 41 2.8 Total Quality Management (TQM) and Re-engineering: … … … … … … … 43 2.9 Summary of the Review: … … … … … 44 References: … … … … … … … 46 CHAPTER THREE: RESEARCH METHODOLOGY 3.1 Introduction: … … … … … … … 48 3.2 Research Design: … … … … … … 48 3.3 Sources of Data: … … … … … … 49 3.4 Population of Study: … … … … … … 50 3.5 Sample Size Determination: … … … … 50 vii 3.6 Research Instruments Used: … … … … 52 3.7 Method of Data Analysis: … … … … … 52 References: … … … … … … … 53 CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS 4.1 Introduction: … … … … … … … 54 4.2 Presentation and Analysis: … … … … 55 4.3 Test of Hypotheses: … … … … … … 62 CHAPTER FIVE: DISCUSSION OF FINDINGS, CONCLUSION AND RECOMMENDATION 5.1 Discussion of Findings: … … … … … 79 5.2 Summary of Findings: … … … … … 79 5.3 Conclusion: … … … … … … … 84 5.4 Recommendations: … … … … … … 84 5.5 Area for Further Research: … … … … 86 Bibliography: … … … … … … … 88 Appendix I: … … … … … … … 92 viii ABSTRACT This research work is a study on how to re-engineer ailing Nigeria Telecommunications Limited (NITEL) through organizational development process. The study has some of the following as the objectives: (i) To match the characteristic problem-solving qualities of organizational development in order to re-engineer the activities of Nigerian Telecommunications Limited. (ii) To identify the factors which make organization development the most appropriate management technique to use in re-engineering the activities of NITEL (iii) To show how the flexible and adaptable nature of organization development can meet the necessary requirements for re-engineering. The researcher used both primary and secondary data to achieve the comprehensiveness of the study. To determine the sample size of the study, the researcher used the Bourley’s rule and formula to test for hypotheses. Chi-square (X2) statistical technique was employed. The key findings, recommendation and conclusion of the study shows that the organization development process is more flexible and adaptable to changing business environment than the bureaucratic power structure. The researcher therefore recommends in conclusion that NITEL by changing its work methods and organization may be more productive and efficient in the business of telecommunication. ix CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY In the business world, there are high levels of uncertainty in the operative activities of business organization. These uncertainties came to be because of changes in the business environment due to limited resources and the misapplication of the required management technique. It is noteworthy to know that any business plan, policy or strategy without due recourse to proper research to current and future behaviour, structure and changes of the market forces in its industry is a disaster in the making. That is therefore the reason necessary for organization to study their own management, economic and technological structures in order to predict future changes and the effect they will have on their operational activities. It is therefore in this wise that I delve into carrying out a study on how the Nigerian Telecommunication Limited (NITEL) could through its strategic formulation and implementation of the situational x management technique of organizational development strategies achieve its target objectives. Telecommunication is an essential infrastructure and key ingredient for promoting rapid socio-economic and political development of any nation. It is an indispensable system in effective business operations and in the times of national emergency or natural disaster. Therefore, because of its vital nature to any nation, or economy, the telecommunications system must be universally accessible and cost-effective. In order that Nigeria should be counted relevant, he must as a matter of urgency properly organize and manage strategically her telecommunication system to be functional and efficient. According to the National Telecommunications policy write-up of September, 2000, telecommunications facilities in Nigeria were direct established in 1886 by the British Colonial Administration for discharging administrative functions rather than the socio- economic development at the country. The policy report stated that the total number of telephone lines at independence in 1960 were only eighteen thousand, seven hundred and twenty four for a population estimated at about forty million people. The data above xi however indicated that Nigeria then was having a tele-density of approximately are telephone time per two thousand people. As at that time, the telephone network consisted of one hundred and twenty one exchanges of which one hundred and sixteen were analogue (magnet type) and only time were automatic. Basically, between 1960 and 1985, the Nigerian Telecommunications sector consisted of the departments of posts and telecommunications (P & T) in charge of the internal communications network and a limited liability company, the Nigerian External Telecommunication (NET) limited responsible for the external telecommunications services. The Nigerian Telecommunication Limited (NITEL) is the Federal Government owned company that provides public network telecommunication services in Nigeria. Set up in 1985 as an amalgam of the telecommunication vision of the defunct P & T department and the Nigerian External Telecommunications Limited (NET). NITEL has a staff strength of about fourteen thousand (14000). It operates a three tier organization structure ie Corporate Headquarters, six zonal and thirty-nine (39). Territorial xii administrations; a system that enhances decentralization. The six zones of NITEL include Lagos Zone, North-West Zone, North-East Zone, South-West, South-East and Central Zones with their headquarters Lagos, Kaduna, Bauchi, Ibadan, Enugu and Abuja respectively. Each state of the federation represents a territory except Lagos that has three territories. Fully commercialized under the privatization and communication policy of the Federal Government, NITEL limited is committed to the provision of efficient, reliable and cost effective telecommunications services nationally and internationally. This set of objectives has been the guiding principle on which the company’s operations are based. Specifically,
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