Sub-Sahara African Academic

SSAAR (JMSE); Journal of March, 2019 Editions Management ScienceSub and-Sahara Entrepreneurship African Academic Research Publications Journal of Management Science March, 2019, Editions & Entrepreneurship. Vol.13, No.5, ISSN 2285-3138

INSTITUTIONAL FINANCING AND CORPORATE GROWTH; A CONCEPTUAL NEXUS

*SANI, SAMINU & **MOHAMMED, MAARUFAH ABDULMALIK *Department of Accounting, Faculty of Humanities, Management and Social Science, Federal University Wukari, Taraba State **Ahmadu Bello University, Zaria

Abstract Just as blood is crucial to human existence, so is finance considered as one amongst the pivotal ingredients necessary for the survival and growth of every corporate entity. Finance is thus considered as a life wire that facilitates operations in corporate settings. Institutions with organized activities requires huge amount of cash to help cater for the running of operations and as such, they have to get an adequate source of funds which basically comes from financial institutions or other investment institutions. For meaningful growth to be experienced in corporations and the economy as a whole, comprehensive investment packages is the essential ingredient that will lubricate and accelerate the rate of growth and development that is needed. In this case, rather than individual financing of corporate entities; that is characterized by low financial package, institutions with their enormous resources can invest to other institutions to boost their degree of operations. The study is purely an exploratory study that is aimed at establishing the nexus between institutional financing and corporate growth through review of related literatures. Institutional financing has become the gateway of tapping into the capital of corporations in a way of getting them to commit their resources in other ventures or institutions to providing the needed capital and liquidity to facilitate the rate of growth and development. The study recommends that, institutions should continue to divest by 1 | P a g e

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providing the necessary financial needs to other corporate organizations as this will lead to collective growth and development to all the parties involved and by extension, it will facilitate the growth and development of the nation and the world at large, thus; has hugely helped institutions to stabilize and aspire for excellence.

Keywords: Institutional, Financing, Corporate, Growth, Conceptual Nexus.

Introduction Usually, in our corporate settings, there are institutions with surplus cash requirement and there are others that are in liquidity crunch. Asli and Levine (2010) noted that, the system facilitates custody of excess cash by the saver and lending of the saved cash to the institutions that are in dire need of cash. Furthermore, the system facilitates extension of credit fellowship by institution(s) with high cash volume to those institution(s) going through financial crunch. Omankhanlen (2012) viewed Institutional finance from the following dimensions. It can be seen as finance or funds raised from Public Financial Institutions (PFIs) or, it can be viewed also as finance or funds raised from Non-Banking Finance Companies (NBFCs) and or, finance or funds provided by Investment Trusts and Mutual Funds (ITMF). Institutional finance helps in strengthening corporate growth by providing the much needed fund that is required to lubricate expansion and growth in firms. These groupings present various sources to which institutional finance can be obtained. Pandey (2005) asserts that, since corporations cannot live in financial autarky, therefore, it becomes imperative for other institutions to play host to institutions in need of financial nourishment by aiding them with reasonable amount of commitment to help bolster their existentiality. In other cases, certain institutions do serve as intermediary between lenders and borrowers by channeling cash from area of surplus to area of deficit. Similarly, Nzotta & Okereke, (2009) opined that infant corporations may suffer serious setback in terms of financial strength and the best way out of that economic quagmire is to seek investment from certain

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institutions so as to raise reasonable cash for expansion and modernization. The main objective of every corporate entity is to maximize profit. The profit maximization comes in different inclinations. One of the ways to know whether corporate entity has attained it profit maximization objective is to check and see if the said firm is experiencing corporate growth (Oluwagbemi, Abah, and Achimugu, (2011) & Oluitan, (2010)). Corporate growth informs us that firms are generating positive cash flows or earnings. When reasonable growth is experienced in firms, it shows the presence of significant positive cash flow. Omankhanlen, (2012) noted that, this growth will be seen in terms of expansion, modernization etc. while little dividend will be considered for the shareholders in other to attain reasonable growth. This is because, for meaningful growth to be attained, organizations will have to plough back a significant proportions of it earnings for expansion and developmental purposes. The study aims to articulate the link between institutional financing and corporate growth.

Over View of the Reforms in the Financial Institution The financial institutions in Nigeria suffered in its cradle owing to so many economic, social, political and technological changes (Kehinde & Adejuwon, 2011). These dynamisms had affected some of the then extant regulations and were thus rendered old-fashioned. The 1952 banking ordinance act set the platform for reforms in the financial sectors in Nigeria. The deregulation of the Nigerian economy in 1986 came with reforms that gave birth to Structural Adjustment Program (SAP) in 1986. The deregulation and Structural Adjustment Program of 1986 reform swayed the thinking paradigm to market based control from it formal direct control (Omankhanlen, 2012). In 2005, the backbone of the Nigerian financial sector; the banking industry, experienced the consolidation reform, the insurance reform in 2007 followed among others. Soludo (2005), opined that ‘the objectives of the reform in the banking sector includes taking proactive steps to prevent imminent systemic crisis; Creation of a sound banking system that depositors can trust; Creation of

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banks that are investors-friendly and that can finance capital intensive projects; Enhancement of transparency, professionalism, good corporate governance and accountability; and Driving down the cost of banks.’ With such mechanism in place, institutions will be adequately financed so as to discharge their objectives efficiently and effectively.

Institutional financing and corporate growth in Nigeria; A review of links Schumpeter (1934) opined that increasing institutional financing has stimulated much corporate growth than the “Bit by Bit” financing. Institutional financing is known to be a catalyst that propels the rate of growth and development in the corporate circle. Nzotta and Okereke (2009) observed that, corporate entities are institutions that are able to access huge financial resources through other institutions or loans, stands a better chance to thrive in it operational cycle, expansion and modernization which eventually leads to corporate growth and development than a similar establishment that has made use of the “Bit by Bit” financing. Kehinde & Adejuwon (2011) carried out a review on “financial institutions as catalyst to economic development: the Nigerian experience” and arrived at the conclusion that, financial institutions has succeeded in strengthening corporate organizations with the right financial needs to boost their operations. These institutions ensures that the amount they are lending or investing as the case maybe are judiciously utilized by ensuring that there are mechanism to help the benefiting enterprise achieve it corporate objective. These steps taken have succeeded in boosting corporate growth which in turn leads to national growth and development. This view is strongly supported by the following researchers Nzotta & Okereke (2009) and Nnanna & Dogo (1998) Furthermore, Oluitan (2010) examined “Bank Credit Risk and Economic growth: the Nigerian experience” and the study concluded thus, the credit offered to corporations are judiciously utilized because of the strict conditionality attached to it. These corporate organizations are aware of

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the risks in breaking the loan agreement thus they invest every part of the loan or investment to be able to generate enough returns to settle the principal sum and the corresponding interest element and still have their own returns. The institutional financing has been a blessing that has set them at the center stage for growth and development. More so, Soludo (2005) asserted that, the liberalization and restructuring of the Nigerian economy played key part in granting corporate entities access to institutional financing to “financing capital intensive projects”. The financial and technical backing has hugely helped our institutions to stabilize and aspire for excellence. In the international scene, Asli & Levine (2010) carried out an overview of “Stock market, corporate finance and economic growth”. The study observed that countries where there are presences of huge chunk of institutional financing tend to experience huge and massive economic growth and development than countries with less institutional financing. Their argument is that, the institutional financing always comes in bumper packages; with financial and technical expertise. Any institution that is lending out resources to another will have to explicitly spell out the terms of reference of lending or leasing as the case may be. It is the duty of the corporation borrowing to strictly adhere to the conditions attached. The financial package will serve as lubricant to grease the rate of commercial activity, expansion and modernization and the technical expertise provides the blueprints for utilization of the financial resources, so as to remain relevant and be able to compete favourable to local and international competitors. Thiel (2009) explored “finance and economic growth – a review of theory and the available evidence” in the European Union and asserted that, the efficient working financial system is as a result of the the EU's structural reform agenda. This efficient financial system has created a suitable platform for the financing of corporate entities with relative ease and quality service delivery. There is a firm consensus that a well-functioning financial sector is a precondition for the efficient allocation of resources and the exploitation of an economy's growth potential. The study observed

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that institutional financing is related to economic growth even in industrial countries. Furthermore, Levine (2005) argued that in economic development and growth, the financial system exerts a very robust influence; in an economy, the financial system operates as the central nervous system, choosing where to allocate resources. Institutional financing ensured that, there is quality in the allocation of scares financial resources to entities in need to help boost the rate of growth and development.

Classification of Institutional Financing There are three basic classification of Institutional Financing. They are;

Depository Institutions This is the type of financial institutions that grant customers the statutory right to deposit as well as withdraw their funds that are logged into the customer’s account. Commercial banks and the credit unions are the commonest depository institutions (Sinha, 2000). The mechanism for the operation of depository institutions is thus; they receive deposit from the public and in-turn lends the money out to a needing entity or person.

Non-Depository Institutions This type of institutions does not allow deposit from customers. They transfer funds from the savers to the borrowers from the funds they receive which are usually in the form of subscription or premium (Pandy, 2005). The insurance company is a typical non-depository institution. Usually, only an insignificant portion of the premium collected are paid out to indemnify the insurer for the loss suffered.

Investment Institutions The investment institutions basically comprise the mutual funds and the finance companies. In the case of the mutual funds, the manager of the funds put together from different investors their funds and then invests it into different stock and firms (Jain & Narang, 2000). The mutual funds

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diversify investments thus lowering investor’s risk. The finance companies specialize in raising funds through the sales of bonds, stock and commercial papers.

Other Sources of Institutional Financing Lease Financing This form of financing enables institution(s) to make use of property of another institution with the agreement of paying for the services rendered through the property or asset of the giving institution (pandy, 2005). The ownership of the property remains with the financing institution but the right for usage is transferred to the institution leasing the property or asset. Usually, financially buoyant institutions lease their property or asset to less financially buoyant institutions or to financially buoyant institutions that believe that it is economically healthy to lease than to buy certain property or asset.

Loan Financing Walton (1977) asserted that, in this source of finance, the financial institutions usually provide finance to business entities to facilitate their level of operation after meeting certain criteria and after providing the required level of collateral. This loan could be a short term loan or a long term loan. The long term loan is usually for a period more than one year and it requires the payment of constant installment with interest over the period of the loan agreement. They usually bear lower interest rate than the short term loan. The short term loans on the other hand are mostly needed to carry a very crucial activity like inventory replenishment, quick investment opportunities etc. for a period less than one year (pandy, 2005).

Line of Credit Financial institution(s) provide funds to corporate entities or finance corporate entities for a specific line of business. The funds supplied are not supposed to be used for another business contrary to the one(s) indicated at the point of obtaining the credit from the bank (Pandey, 2005). The

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interest due by the client is paid only on the amount taken as part of the line of credit agreement but the client usually pays other expenses related to the credit line granting as a charge for engagement of a loan resources. Installments on a line of credit are made in accordance with the concrete agreement between the bank and the client, credit lines are mainly granted to corporate entities.

Theoretical framework: For the purpose of this conceptual review of institutional financing and corporate growth, the “Big Push theory” is used to underpin the nexus between institutional financing and corporate growth. The rationale behind the “Push Big Theory” is that, for meaningful growth to be experiences in corporations and the economy as a whole, comprehensive investment packages is the essential ingredient that will lubricate and accelerate the rate of growth and development that is needed. In this case, rather than individual financing of corporate entities; that is characterized by low financial package, institutions with their enormous resources can invest to other institutions to boost their degree of operations. The theory suggested that “Bit by Bit” allocation of resources will never move any corporation or economy into attaining the desired level of growth but emphasized that specific amount of investment that is reasonable will set the corporations or industries on the path of witnessing unprecedented growth and development.

Methodology The study is purely an explanatory one, focusing on the terms institutional financing and corporate growth and consequently establishing the nexus between them. The study made reference to previous studies of international and local status as a basis for our assertions.

Discursion From the reviews establishing the nexus between institutional financing and corporate growth, it is perceived that, finance is the life wire of every corporate entity and most entities can hardly survive on share capital. As such, it becomes imperative to approach either the commercial banks or other institutions for finance, to be able to meet their statutory 8 | P a g e

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responsibilities. Institutions finance other institutions via; loans, leasing, investment, line of credit etc. among others. When such institutional participation in financing increases, it increases the odds that there will be wide spread of corporate growth and development. However, institutional financing comes at a cost but institutions are better off shouldering the cost than operating with a very low financial volume. It is considered that, institutional financing has actually brought about growth and development of firms because of the influx of huge financial resources and the technical guide that comes with it. Studies such as; Kehinde & Adejuwon, (2011), Oluitan (2010), Asli and Levine (2010), Nzotta & Okereke (2009), Soludo (2005), Levine (2005) and Nnanna & Dogo (1998) have attested to the nexus between institutional financing and corporate growth.

Conclusion and Recommendation Institutional financing has become the gateway of tapping into the capital of corporations in a way of getting them to commit their resources in other ventures or institutions to providing the needed capital and liquidity to facilitate the rate of growth and development. The study recommends that, institutions should continue to divest by providing the necessary financial needs to other corporate organizations as this will lead to collective growth and development to all the parties involved and by extension, it will facilitate the growth and development of the nation and the world at large. More so, it is recommended that the government should create an enabling environment that will make businesses thrive. In this light, the study concludes that institutional financing is very important for the growth and development of the nation and should be embraced by institutions and government with open arms.

References Asli, D & Levine, R. (2010), Stock market, corporate finance and economic growth: An overview. The World Bank Economic Review, 10(2), 223- 239. Jain,S.P. & Narang, K.L., (2000). Advanced Accountancy, Kalyani Publishers, 10th Edition.

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Kehinde, J. S. and Adejuwon, K. D. (2011) financial institutions as catalyst to economic development: the Nigerian experience. European Journal of Humanities and Social Sciences Vol.8 (1) (special issue) Levine, R (1999). Law, finance and economic growth. Journal of Financial Intermediation, 8, 8-35. Levine, R. (2005). “Finance and Growth: Theory and Evidence.” in Handbook of Economic Growth, Eds., Aghion, P. and S. Durlauf, 1A, pp. 865-934, North-Holland Elsevier, Amsterdam. Nnanna, O. J. and Dogo, M. (1998), “Structural Reform, Monetary Policy and Financial Deepening: the Nigerian Experience”, Economic and Financial Review. Vol. 36(2) 1-29. Nzotta, S. M. and Okereke, E. J (2009), Financial Deepening and Economic Development of Nigeria: An Empirical Investigation”, African Journal of Accounting, Economic, Finance and Banking Research Vol. 5(5). Oluitan, R. (2010), Bank Credit Risk and Economic growth: the Nigerian experience” Oluwagbemi, O., Abah, J. and Achimugu, P. (2011), The Impact of Information Technology in Nigeria’s Banking Industry. Journal of computer science and engineering vol. 7(2) Omankhanlen A. E. (2012) the Financial Sector Reforms and Their Effect on the Nigerian Economy Economy Transdisciplinarity Cognition. www.ugb.ro/etc Vol. 15, Issue 2 45-57 Osabuohien E., S., C. (2008) ICT and Nigerian Banks Reforms: Analysis of Anticipated Impacts in selected banks Global Journal of Business Research Vol. 2(2) Pandy, I. M. (2005), Financial Management, Vikas Publishing House PVT Ltd, New Delhi. Schumpeter, J. A. (1934) The theory of Economic Development, Translated by Redvers Opie, Cambriidge MA: Harvard University Press Sinha, G. (2000). Accounting Theory and Management Accountancy, Book World, 61 Sitaram Ghosh Street, Kolkata 00001, 9th Edition, 2000

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Soludo, C. (2005), N25 Billion Naira Capitalization: The Journey So Far and its Likely Implications on the Nigerian Economy.NigeriaBusinessInfo.com. Thiel, M. (2009). “Finance and economic growth - a review of theory and the available evidence”. Walton, J. (1977). "Current Cost Accounting and the Concept of Corporate Income", The Business Economist, Volume 9(1). Society of Business Economists.

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THE EFFECTS AND ANALYSIS OF WEB SURFING SESSION SECURITY IN BUSINESS MANAGEMENT

ABDULLAHI MUHAMMED Department of Business Administration, Bauchi State University, Gadau., P.M.B 065 Bauchi State.

Abstract Surfing Internet and getting online information and resources in recent years the most efficient and convenient way to communicate and share idea across network. . Almost all businesses, Schools and The Military use different web browser to share information and also for learning purposes as well. This paper will deeply evaluate the possible ways and the proliferation of tracking and identifying of browsing activities by users of such technologies. At the same time we will attempt to distinguish with strict observation on the possibilities in identifying users who are accessing the web on a particular machine with single web browser software. This research will re strategize ways to implement how to track and monitor a user during a web session.

Keywords: Effects, Analysis, Surfing, Security, Management.

Introduction The main advantage of the user and the Internet solely lies on the web browser. Proposes results on Surfing the net, which has become eminent in our personal daily activities, where all information today can be stored and retrieved by just a click of a mouse. This Information can be stored on the web server that is connected to the network and in turn to the Internet. Furthermore, the users (client) normally have multiple accesses to the net without thinking of how to secure this information. However this paper 12 | P a g e

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will stipulate the need to deploy and implement some security polices on the web browser, so it can track and monitor a particular session by the user at a specific time of login. In addition web browser’s serves as machines in accessing the World Wide Web content pages, but at the same time data resources might be altered while in transition across the network. Malicious Internet fellows are always standing as a bottleneck to data resources on the Internet, either by hacking, sniffing or session hijacking just to deliberately extort information for personal use as the case may be.

Methodology This days Web surfing processes encompasses the traditional web browsing behavior that only uses the machine (PC) Software (Browser) and a user who is try to access Internet resources. This section aims to highlight the key issues on web browsing sessions. With all observations we noticed that some of the web browser are outdated and to some extent this software’s are not being patched i.e. (Updates to fix bugs) etc. In spite of the fact that some of these browsers come with a pre built security policy in them, these policies could also be breached by any skilled malicious entity from the within or outside the network. i.e.( Man in the Middle ). Moreover it is sometimes difficult to trace anyone or group of people during a web surfing, where software developers are held by the juggler to build application that will sustain and save guard the Internet from unauthorized persons all over the network. For example in the U.K, websites are being developed to with the cryptographic techniques (SSL, HTTPS) to enhance maximum protection and also suggests privacy issues of such information that can be accessed from the Internet.

Web Tracking Implementation It is of importance to outline the pillars that are evident in monitoring and controlling the behavior of users while surfing the net. There are so many ways to track a particular user while browsing the net, but at this point we

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will identify the use of Server and Proxy Logs and the need to configure Cookies on the web browsers.

The Server and Proxy Logs Evidently for any web browsing session to be actively monitored on the server we need distinguish what a proxy server is, and how it can be used to identify a web session. A proxy server is a server that plays an intermediary procedure to bypass firewalls and the any masquerading behavior to get to the Intended web servers. This also allows you to bounce your web traffic between different servers. The proxy normally works in a way that captures and filters all traffic that could be sent across while surfing. The proxy servers maybe used for an instant retrieval or access to the users content page through the background process. i.e. “Caching” and how a server proxy logs works an how it can be implemented in this section. A server proxy logs can act as a central database checker that stores all log files information when the user starts surfing the net as at the time of login. Moreover these logs are generated immediately the session starts. The logs contain sets of user names and passwords and also some important credentials of the user. Proxy logs can be used to determine how many users have visited a particular website and can be used to track the time, month, in which the users have browsed through the website. The proxy log will help in gathering all the information about the user trying to access a webpage at a specified time. This technology will help to analyze the number of webpages being visited by a user. The proxy logs can be categories namely: Database Loader, Database Analyzer and Database Parser. The Database Loader: simply means the ability of the database engine to gather information resources like the IP address and the domain name together with the URL of the visited webpage. In addition this keeps track only when the user request for a web page and that request is being saved on the database, so that when the user wants to access a particular web page, it will simply retrieve the information from the database.

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The Data Analyzer: In this scenario, the data analyzer should be the standard to follow in tracking the user either Online or Offline while surfing the net. The Online approach is concerned with collecting, capturing, filtering for all activities during a web session. With all observation we noticed that usingthese would help facilitate a quick and timely procedures for any user who is surfing the net. While the offline approach is also concerned with the gathering and inserting the entire log files directly to the database in an Offline mode. The Log Parser: The aim of using a log parser is to retrieve relevant resources to and from the server.it is being observed that the contents of the logs in the load parser normally have all IP address that are stored in a database and also the domain names, and the URL’s that are being requested at the exact moments when the request is being sent to the server. This process analyses all the logs that are extracted from the server to give useful information about a user who is surfing the Internet at a specified time. The deployment of the log parser, which is seen to be a small SQL code, that helps to identify, any browsing activity, on the browser and webserver. Typically, log files provide useful information of the communication exchange carried out by users at a predefined initiation session. These can be obtained from the web-server. In addition all the contents of the log files are observed to be complete and accurate, so the analysis of predicting or monitoring is highly effective to track a user. The diagram bellow explains the backend process.

Fig 1.0 shows the communication channels

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Next section we will define cookies and investigate how it could be implemented to track any user who is surfing the website.

Cookies They are little documents or tokens that contain the information about you and your preferences/credentials i.e. “User Id and Password” during a web session, it can track all the links that you requested on the website. Furthermore a cookie itself can be some sort of a technology that remembers all the activities that happens during web surfing. Cookies still remain one of the de-facto ideas in tracking and analyzing series of activities that occurs at the background between the client and server respectively. In addition cookies are normally not attached directly to the website themselves, unless a user visits a particular website and request for a service, then the cookie will be generated at once and stored on the web server for later retrieval. For example if a user visits an online shopping website like the Gucci website, where the Person surfing the clicks (request) to view all the shoes that are in the male section of the website to make purchases. However the cookies of that request will be created and stored, so that when the user comes back again, for the same purpose, the cookie will be sent back to the client (Browser) from the saver and reminds the server that this is the service you requested to be used throughout the web session. However this implementation will track and monitor a user while surfing the web page. In the light of these, cookies can also be compromised at the same time during a session. The diagram below shows how a cookie works.

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Fig 2.0 How cookies are generated during a web session.

Cookies can be further categories as follows: Persistent cookies Session cookies Persistent cookies should be implemented to track a user because it is observed to be the most reliable tracking technique to monitor a particular user, where the cookie is seen to remain in the web browser at a specified time limit and that the information about a session stays in that cookie for later retrieval. Furthermore this will save time in the identification of a user, surfing the web. Session cookies are cookies that terminates immediately after a web session ends. Normally a cookie contains files that are temporarily stored on the web server only for that particular session. The session cookie normally encapsulates the server name, URL, Username, Password of a session, so at these point when the user logs out of a session the history will also be wiped out and the cookie destroyed. Therefore this will not be so efficient in a precise analysis and monitoring. Moreover it is observed that the contents of a cookie normally don’t store your personal credentials. Cookies normally have no idea in the investigation of your personal details unless is an input from the client sides request from a web page to a server. However the use of cookies cannot guarantee total active monitoring via the network because of the interference of a third party cookie who might be in the middle trying to intercept messages of the session while surfing the Internet. Literarily the contents of a cookie are seen to be in a scatted manner, that only the server that granted such request will be able to track and identify a particular user, but this depends on how the web browser is configured to capture such behaviors. Most recently web browsers are developed with a prebuilt features used in configuring the settings that allows individual and organization to manage cookies effectively. For example Google chrome and Firefox, Windows Explorer, which highlights the advanced settings that could be used to track and monitor a user. However we can also implement the Opt-Out cookie, which normally blocks a cookie from inviting and installing another

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cookie to the website (Third – Party cookie). Third party cookie are known to pose a threat for a Client and Server communication where the third party sniffer could be in the middle of a session trying to intercept all Packets across the channel. Basically it does not facilitate the tracking and monitoring of the users browsing session as well.

Identification and Authentication Using cookies Cookies can be used as an authentication and identification of a particular user during a web session. Moreover we noticed that objects generated by the user while surfing the Internet are enveloped in a cookie catch memory “CCM”, which co-opts the entire content of a session. The implementation of this will enhance a better analysis to track a user at a specified time, because all the objects will be stored in a central location and retrieved when the request is made. This might be time consuming as well. In addition the CCM is also located on the web browser, which will be known to all web server across the network. In this scenario the authentication will determine the user who is surfing the website at a given time. Identification will help in the actual monitoring from the time of login till when the session has expired. The diagram bellow shows how cookies can be secured while in transmission.

Cookie Identification Tree We will clearly identify the need to use the identification tree to track and monitor a user. This denotes a distinctive approach where the server shares its leaf together with a user in a tree, thereby the systems within the tree hierarchy can be linked to the Cookie Catch memory. Furthermore we noticed that the machine “server” embeds the tree tracking mechanism into the browser that can be configured Together with the Cookie Catch that tags along with the root to anchor itself with a particular leaf of a user. However toMonitor or identify a particular userthe engine (server) will now have to trace for the exact leaf for it to be able to capture the user while surfing the website.

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Fig 3.0 Secure and Non secure cookie

Web-Session Based On Activity Analysis We will attempt to clearly identify a user’s web surfing activity in this section. However another alternative is to deploy the use of forensics based investigation technique i.e. the Cacheback or the Encase Tracking applications. These tools can be used to track a user surfing different websites.

Conclusion. We have fervently attempted to explore the possible ways to track and monitor a user surfing the Internet during a web session. But the alternatives mentioned above in this paper will help in analyzing, and tracking a user, which will at the same time often be the case of these relevant and needful research. However the research has re strategize the possible ways of tracking a user during a web session

References 1. J. Gettys, J. Mogul, and H. Frystik, “HyperText Transfer Protocol (HTTP/1.1),” RFC 2616; available online at http://www.ietf.org/rfc/rfc2616.txt, June 1999. 2. D.M. Kristol and L. Montulli, “HTTP State Management Mechanism,” work in progress;

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available online at http://ftp. ietf.org/internet-drafts/draft-ietf-http- state-man-mec-12.txt, Aug. 1999. 3. K. Moore and N. Freed, “Use of HTTP State Management,” work in progress; available online at http://ftp.ietf.org/ internet- drafts/draft-iesg-http-cookies-03.txt, Apr. 2000. 4. J.S. Park and R. Sandhu, “Smart Certificates: Extending X.509 for Secure Attribute Services on the Web,” Proc. 22nd National Information Systems Security Conf., U.S. Govt. Printing Office, Washington, D.C., 1999. 5. D. Wagner and B. Schneier, “Analysis of the SSL 3.0 Protocol,” Proc. Second Usenix Workshop on Electronic Commerce, Usenix Press, Berkeley, Calif., Nov. 1996, pp. 29-40. 6. V. Mayer-Schonberger, “The Internet and Privacy Legislation: Cookies for a Threat?”, West 6.Virginia J. Law and Technology, West Virginia Univ. College of Law, Morgantown, W. Va., 1997. 7. Federal Information Processing Standards Publication, “Digital Signature Standard (DSS),” FIPS PUB 186, Nat’l Inst. of Standards and Technology, Gaithersburg, Md., 1994.

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ENTREPRENEURSHIP MENTORSHIP AND NETWORKING: A STUDY OF THREE INDIGENOUS ENTERPRISE CLUSTERS IN BIDA METROPLIS, NIGER STATE, NIGERIA

MOHAMMED TANIMU HARUNA1 MUSTAPHA NMANDA MUSTAPHA2 ALFA MOHAMMED DANLAMI3 Department of Business Administration and Management, Federal Polytechnic, P. M. B. 55, Bida, Niger State, Nigeria1&2 Department of Social Sciences, Federal Polytechnic, P. M. B. 55, Bida, Niger State, Nigeria 3

ABSTRACT The study undertakes to investigate the relationship between entrepreneurship mentorship and networking using the three indigenous enterprise clusters in Bida Metropolis of Niger State. Descriptive survey method was employed and thirty indigenous entrepreneurs from Massaga Bronze and Glass Enterprises, Tswatamukun Brass and Aluminium Enterprises and Dokonza Black Smiting Enterprises in Bida Local Government Area of Niger State were taken as sample. Structured questionnaire were administered to this effect and responses were collated and analyzed using descriptive statistics (simple percentages) from SPSS. Hypothesis was tested on the basis of data analyzed and it was found that “there is positive relationship between entrepreneurship mentorship and networking and it was concluded that entrepreneurship mentorship and general networks are particularly useful resources, but they are yet to be fully explored by most of the less-experienced indigenous entrepreneurs in the three selected clusters of indigenous enterprises in Bida. Nevertheless, it was recommended among other things that pre-existing social relations among the family, kinship and communities of indigenous entrepreneurs should be strengthened with a view to creating environment for the indigenous

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entrepreneur to choose a mentor, each with sufficient experience and respect within the enterprise clusters.

Keywords: Entrepreneurs, Indigenous, Mentor, Networking, Tswatamukun, Massaga, Dokonzda

INTRODUCTION The concepts of mentoring, networking and indigenous entrepreneurship are not new. Specifically, mentoring has been favoured by most entrepreneurs in acquiring profitable business know-how from persons who have been in the business before them. In this regard, they think of people in their lives, more experienced than themselves, who will teach them something new or simply expressed an interest in their development as a person and professional. The mentor helped them negotiate an uphill path or find an entirely new path to a goal in their businesses or personal lives and also pointed out talents that individuals had not noticed in themselves and stimulated ideas about what they might be able to accomplish. Thus, by networking we are referring to the nature of ties that bind people together. There are strong ties and weak ties. Strong ties are close relationships that have been formed between people (e.g. family and friends) whilst weak ties are often more distant and perhaps informal (e.g. acquaintances). Entrepreneurs make use of networking to build their business on a solid foundation. All of this implies that indigenous entrepreneurs use networks to reduce the cost, time and effort in setting up a business. But it is apparent today that discussion about Indigenous economic development tends to acknowledge the involvement of Indigenous entrepreneurs in employment, business, assets and wealth creation in the communities where they live. With successful Indigenous entrepreneurs, self-employment and ownership of enterprises is believed to help individuals, families and communities improve self-sufficiency and decrease reliance on government welfare as witnessed in the Bida and possibly in other parts of Nigeria. Therefore, the paper undertakes to identify the link between entrepreneurship mentorship and networking.

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To achieve this, three areas were selected, namely; Massaga Bronze and Glass Enterprises, Tswatamukun Brass and Aluminium Enterprises and Dokonza Black Smiting Enterprises in Bida Local Government Area of Niger State. The researchers are convinced that the enterprising activities in these areas exemplify a distinguishable kind of activity we call ‘indigenous entrepreneurship. Nevertheless, these enterprising activities also represent the material culture of the people of Bida, the ancient town of Nupe Kingdom and the reason why the researcher are interested in investigating the connection between mentorship and networking.

REVIEW OF LITERATURE This part looked into the divergent and scholarly views of the concepts of entrepreneurship mentorship; networking as they both applies to the activities of indigenous entrepreneurship.

Entrepreneurship Mentorship Mentor is an individual who provide guidance, coaching, counseling and friendship to a less-experience entrepreneur (Debra & James, 2006). Viewed by other scholars, Stephen, Timothy & Seema (2009), a mentor is a senior employee who sponsors and supports a less-experienced employee (less-experience entrepreneur). Thus, mentoring relationships are important to career success because they perform both career and psychosocial functions. The career function provided by a mentor includes sponsorship, facilitating exposure and visibility, coaching and protection. Sponsorship means actively helping the individual get job experiences and promotion. Facilitating exposure and visibility means providing opportunities for the less-experience entrepreneur to develop relationship with key figures in the organization in order to advance. Coaching involves providing advice in both career and job performance. Protection is provided by shielding the less-experience entrepreneur from potentially damaging experiences. The mentor also performs psychosocial functions. Role modeling occurs when the mentor display behavior for the less- experience entrepreneur to emulate. This facilitates social learning.

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Acceptance and confirmation is important to both the mentor and less- experience entrepreneur. However, positive regard and appreciation from the less-experience entrepreneur provide a sense of satisfaction for the mentor. Counseling by a mentor helps the less-experience entrepreneur explore personal issues that arise and require assistance. Friendship is another psychosocial function that benefits both mentor and less- experience entrepreneur alike.

Networking Omagor and Mubiru (2008) consider that networks comprise those persons with whom the central character has a direct relationship and those individuals with whom he has an indirect relationship by courtesy of that direct contact. Clearly, direct associations are most important: the more people an indigenous entrepreneur knows and the more frequently they interact the greater is his access to information and resources. Thus, this argument is supported by Ana, Robert, Craig, Benson & Leo (2004) as they asserts that entrepreneurs have to work hard to develop relationships; they have to persuade, socialize, bargain, reciprocate etc with others to create a relationship and then maintain it. Those persons with small networks may lack the social and interpersonal skills and the energy that is required to create interconnections. As expected, network relationships play a significant role in affecting knowledge exchange and organizational capability to sustain entrepreneurs. Networking brings about social capital which enhances internal knowledge integration and external knowledge absorption. Subsequently, network relationships enable entrepreneurs to create value through innovation (i.e., product, service, organizational) in order to gain a business advantage. But Stephen, Timothy and Seema (2009) feels that personal networking is a particularly valuable method of information gathering for entrepreneurs. They argued that entrepreneurs are rarely rational decision makers; rather they are action oriented persons who seek situations which enable them to get things done. This being the case live, up-to-date information and the opinions and know-how of peers is more relevant. In this direction,

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external networks and product/service innovation have a significant effect on responsiveness to change, highlighting the importance of network relationships and integrating social capital into resource exchange and capability building (Onuoha, Amussah, 2006).

Indigenous Entrepreneurship To begin with, we must identify the various agents involved in indigenous entrepreneurship. In essence, who are the indigenous? In answering this question, we resort to old but yet useful document of the General Council of the International Labour Organisation published in 1991. According to their convention, formally ‘entered into force’ in 1991, indigenous people are, “Peoples in independent countries who are regarded as indigenous on account of their descent from the populations which inhabited the country, or a geographical region to which the country belongs, at the time of conquest or colonization or the establishment of present State boundaries and who, irrespective of their legal status, retain some or all of their own social, economic, cultural and political institutions.” (International Labour Organisation, 1991) The United Nations employs a similar definition, generally omitting references to maintaining social, economic, cultural and political institutions. A 1995 resolution, for instance, states that, “indigenous or aboriginal peoples are so-called because they were living on their lands before settlers came from elsewhere; they are the descendants of those who inhabited a country or a geographical region at the time when people of different cultures or ethnic origins arrived, the new arrivals later becoming dominant through conquest, occupation, settlement or other means.” (General Assembly The United Nations, 1995). At this point, we could reasonably associate the concept of indigenous entrepreneurship with the age long society’s tradition of family entrepreneurship where a family having enough labour to provide for its own survival would begin to turn out a product for sale by specializing in some areas. For example, a family engaged in bronze and glass work or brass and aluminium smelting work, pottery, mat weaving, blacksmithing, goldsmith or groundnut cake production might purchase the raw materials

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from the market, process them into finished goods and sell them at a local market. This age long trade practices are mainly laboured intensive, easy to start and is conducted in an informal and unsophisticated level. In this tradition, a family unit is known and addressed by their household trading names.

METHOD AND MATERIALS A population sample of thirty (30) respondents was taken from three broad industry categories, namely; The Brass and Aluminum Casting Enterprises in Tswata Mukun Area, Bronze and Glass Casting Enterprises in Massaga Area and Black Smiting (Iron Casting) Enterprises in the Dokonza Area of Bida. Information was collected from these respondents using structured questionnaires with the help of research assistant who translate the questions into Nupe in some of the encounters with respondents that are not too familiar with English language. They were asked to rank the extent to which they agree with the statements made about them and their enterprises. A Five (5) point likert-type scale was employed. The scale ranged from 1 - 5 representing 1-‘Strongly Disagree’, 2-‘Agree’, 3-‘Not Sure’, 4-‘Agree’, 5-‘Strongly Agree’. The essence of a 5- point scale was to encourage respondents to use full width of opinion and avoid errors of central tendency. Reliability test using Cronbatch Alfa in SPSS showed that the items on the questionnaire were 0.732 (73.2%) reliable. Having achieve this acceptable level of reliability, a null (Ho) hypothesis stated as: “there is no positive relationship between entrepreneurship mentorship and networking from the perspectives of the three indigenous enterprise clusters in Bida, Niger State, Nigeria” was also tested and reported in the foregoing discussions.

RESULTS AND DISCUSSION Clusters of Indigenous Entrepreneurs are not limited to Tswatamukun , Massaga and Dokonza Areas of Bida Local Government (though they are the major ones) but the use of these areas of trade as the center for this study was induced by the limited time frame for this paper. However, it is

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obvious that the current business environment creates obstacles for both experience and less experience indigenous entrepreneurs in these areas. But in order to stay competitive in business, some of them work in collaboration with others to create chain that give them value through what we described as casual mentorship and networking. This is as also observed with some of these indigenous entrepreneurs who are at best the center of their own intelligence gathering networks and thus, they make extensive use of informal contacts to gather business information. The table below and the discussion that follows are a comprehensive analysis of data from the field: DEMOGRAPHIC DATA Q/No Variable Frequency Percentage (%) QA1 Age: 18-20 6 20.0 21-30 7 23.3 31-40 9 30.0 41-50 5 16.7 51-above 3 10.0 Total 30 100 QA2 Gender: Male 26 86.7 Female 4 13.3 Total 30 100 QA3 Qualification (s): No formal Education 4 13.3 : FSL Certificate 10 33.3 : SSCE(WAEC/NECO etc) 11 36.7 : ND/NCE 5 16.7 : HND/B.Sc. - - : Others - - Total 30 100 QA4 How long have you been working on this Business? 0-3 years [ ] 6 20.0 4-6 years [ ] 3 10.0

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7-9 years [ ] 1 3.3 10 years and above 20 66.7 Total 30 100

ENTREPRENEURSHIP MENTORSHIP AND NETWORKING Q/No Items Scoring scale SA A NS D SD F % F % F % F % F % QB1 I have someone who has been the 10 33.3 12 4 6 20.0 1 3.3 1 3.3 golden bridge of my trade 0 . 0 QB2 Whenever I have technical issues in 16 53.3 13 4 - - 1 3.3 - - my business, I look up to someone 3 for help . 3 Q.B3 I learn the skills in my business 14 46.7 9 3 3 10.0 2 6.7 2 6.7 from my parents 0 . 0 QB4 I have all this while relied on a 8 26.7 10 3 7 23.3 5 16.7 - - mentor relationship and it has been 3 very beneficial . 3 QB5 My mentor provide me with 6 20.0 6 2 6 20.0 7 23.3 5 16.7 information that covers 0 customers, raw material suppliers . 0 QB6 Generally i get enough resources - - 6 2 5 16.7 14 46.7 5 16.7 (both tangible and intangible) from 0 my mentor. . 0

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QB7 Indigenous entrepreneur are 7 23.3 15 5 1 3.3 5 16.7 2 6.7 mostly found in the three major 0 clusters of indigenous enterprises . in Bida 0 QB8 As an Indigenous entrepreneur, i 17 56.7 10 3 - - 3 10.0 - - use networking to locate new 3 entrepreneurs, customers and . more markets. 3 QB9 I am an indigenous entrepreneur 13 43.3 12 4 1 3.3 4 13.3 - - because the family I grew up in is 0 known and address by the . indigenous trade they specializes in 0 QB10 There are successful Indigenous 11 36.7 13 4 4 13.3 - - 2 6.7 entrepreneurs and community- 3 based enterprises that create . prosperity for individuals and 3 communities across Bida QB11 Indigenous entrepreneurs often 11 36.7 12 4 4 13.3 1 3.3 2 6.7 have to operate within an 0 environment of complex social and . cultural networks 0 QB12 Indigenous entrepreneurs are on 4 13.3 15 5 8 26.7 - - 3 10.0 the rise due to networking 0 activities, . 0 Source: Questionnaire administered (December, 2018)

From demographic data collated, the age distribution showed that majority (30.0%) of the indigenous entrepreneurs studied fall between the ages of 31 to 40 years while only few (10.0%) were aged men among them. The gender distribution reveals that male have dominated the trade by constituting 86.7% of the respondents while female constitute 13.3%. This is suggesting the female are not too interested in managing enterprises in 29 | P a g e

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these three cluster area. Thus, 13.3% of the respondents have no formal education and many of them hold either SSCE of First School Leaving Certificate (FSLC). Most of the Indigenous entrepreneurs have had a very long stay in the family enterprises as clearly shown above that 66.7% have been in the business now for over ten years and at an early stage of enterprise development, rely heavily on mentorship and informal network of friends, family members and social contacts from the local neighborhood to gather relevant data. On the statement that measured the link between mentorship and networking, we sought to find out whether the entrepreneurs have someone who has been the golden bridge of their trade, 12 representing 40.0% agree that they have while only 1 represent 3.3% strongly disagree that he does not need any golden bridge. We also found out, whether indigenous entrepreneurs look up to someone for help when they are faced with technical issues, and we got 16 representing 53.3% strongly agree that they do sought for help, while only 1 represent 3.3% disagree that he does not need any mentorship and networking. Nevertheless, the statement which says that, I learn the skills in my business from my parents; 14 representing 46.7% strongly agree that they learn the skills of business from their parents while 2 representing 6.7% strongly disagree that they did not; 3 representing 10.0% NS. From the fourth statement, we discovered that they have their business while relying on a mentorship relationship and it has been very beneficial. On this variable, 10 indigenous entrepreneurs representing 33.3% agree that they relied on mentorship relationship, and it has been beneficial, while 7 representing 23.3% NS, and 5 representing 16.7% disagree that they do not relied on mentorship and that it’s not beneficial. On the fifth statement, we try to find out whether mentors provide them with the necessary information such as customers attitudes, raw materials suppliers. We got 6 representing 20.0% strongly agree that mentors provide them with the necessary information, while 6 representing 20.0% NS and 7 representing 23.3% disagree that they are not provided with information from their mentors. While on the statement, that entrepreneur

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generally gets enough resources (both tangible and intangible) from mentors, the response was that; 6 representing 20.0 agree that they get enough resources, while 5 representing 16.7% NS and 14 representing 46.7% disagree that they don’t get enough resources from their mentors. We found that indigenous entrepreneurs are mostly clustered around three major clusters of indigenous enterprises in Bida. We found out that 15 representing 50.0% agree, while 1 representing 3.3% NS and 5 representing 16.7% disagree to the above assertion. On whether indigenous entrepreneurs use networking approach to locate new entrepreneurs, new customers and more markets, we got the responses that, 17 representing 56.7% strongly agree that they use networking to locate new entrepreneurs; new customers and more markets, while 3 representing 10.0% disagree that they don’t use networking approach. We also discovered that the indigenous entrepreneurs whether their family name is associated and known with the business they practice. 13 representing 43.3% strongly agree that their family’s name is known and addressed by the business they specializes in, while 4 representing 13.3% disagree and 1 representing 3.3% is NS. From the statement, that there are successful indigenous entrepreneurs and community based enterprises that create prosperity for individuals and communities across Bida, the result we got was that 13 representing 43.3% agree, 4 representing 13.3% NS, and 2 representing 6.7% strongly disagree. Another statement which claimed that indigenous entrepreneurs often have to operate within an environment of complex social and cultural networks, we got these results; 12 representing 40.0% agree, while 4 representing 13.3% NS and only 2 representing 6.7% strongly disagree to the above variable. Indigenous entrepreneurs are on the rise due to networking activities, on this statement we found out that; 15 representing 50.0% agree, while 8 representing 26.7% are NS, and only 3 representing 10.0% strongly disagree with this variable. However, in consideration of the foregoing analysis, we sought to further investigate if relationship actually exists among entrepreneurship mentorship and networking and in so doing, we subjected our

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hypothesized statement to test using Linear Regression and Analysis of Variance (ANOVA) on SPSS. Thus, the test result is presented with further discussions as follows: Model Summary Adjusted R Model R R Square Square Std. Error of the Estimate 1 .508a .258 .231 3.2559 a. Predictors: (Constant), Entrepreneurship Mentorship

The result from model summary above reveals the extent to which variance of dependent variable (Networking) can be explained by independent variable (Mentorship) at R2 value of 0.258. This mean that entrepreneurship mentorship independently account for 25.8% variation in networking from the perspectives of the three indigenous enterprise clusters in Bida, Niger State, Nigeria. A look at the ANOVA table below further explains the situation. ANOVAa Model Sum of Df Mean F Sig. Squares Square 1 Regressi 103.045 1 103.045 9.720 .004b on Residual 296.822 28 10.601 Total 399.867 29

a. Dependent Variable: Networking b. Predictors: (Constant): Entrepreneurship Mentorship

The Analysis of Variance result above showed F-statistics of 9.720 at P- value (Sig) of 0.004 shows that the model is statistically significant. This also suggests that there is positive relationship between mentorship and networking from the perspectives of the three indigenous enterprise clusters in Bida, Niger State, Nigeria. The result from this test proved our hypothesis otherwise and hence it stands rejected and calls for the 32 | P a g e

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acceptance of alternative hypothesis which says “that there is positive relationship between entrepreneurship mentorship and networking using the three enterprise clusters in Bida Metropolis. However, a further look at the result reveals that two challenges may be silently associated with the result above: First, the result indicates that entrepreneurial networks are smaller among the indigenous entrepreneurs in Bida and that little zeal might have been displayed by them to increase their size. Thus, considerable energy is not devoted to maintaining existing networks and they are relatively homogenous and more traditional in origin than in social status. Secondly, when indigenous entrepreneurs ware asked about the reasons they set up in the type of businesses they are practicing, they typically list independence as a prime motive. Yet, they claimed that new entrepreneurs among them make use of extensive support and assistance. In concluding this part, it is important to state that how indigenous entrepreneurs associate with others can rightly be described as loosely coupled systems with unclear boundaries. We are of the view that casualness in business relationship and the fact that individual networks, are strongly influenced by the personality of the mentor make it rather difficult to develop models of networks for these indigenous entrepreneurs.

CONCLUSION Having studied and discussed our findings, we are of the understanding that, the primary purpose of every indigenous entrepreneurs is to produce goods and services which meet the needs of their clients, but to accomplish this task, resources are acquired, they are then arranged systematically to create these products. Thus, in conclusion, entrepreneurship mentorship and general networks are particularly useful resources, but they are yet to be fully explored by most of the less-experienced indigenous entrepreneurs.

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RECOMMENDATION In line with the foregoing conclusion, we recommend that for entrepreneurship mentorship and networking to yield positive result, the following may be taken as way out: First, pre-existing social relations among the family, kinship and communities of these indigenous entrepreneurs should be strengthened with a view to creating environment for the indigenous entrepreneur to choose a mentor, each with sufficient experience and respect within the enterprise clusters. Second, entrepreneurial behaviour of indigenous people be re-examined and understood by mentors that are not as culturally laden as existing frameworks for understanding indigenous entrepreneurship with a view to helping them build a more reliable networks of indigenous individuals, families, informal associations and communities. Lastly, there should be meetings of elders of the indigenous enterprises, young people who have distinguished abilities and less-experienced indigenous entrepreneurs which must be structured, confidential and governed by ethical consideration.

REFERENCES Ana M. P., Robert B. A., Craig S. G., Benson H. & Leo P. D. (2004). Towards a Theory of Indigenous Entrepreneurship. Int. J. Entrepreneurship and Small Business, Vol. 1, Nos. 1/2, Debra, L. N & James, C. Q. (2006). Organizational Behaviour. 5Th ed. China: Thomson Corporation General Assembly of The United Nations (1995) Fact Sheet No.9 (Rev.1), The Rights of Indigenous Peoples, Office of the High Commissioner for Human Rights, reviewed 28 February, 2017,

International Labour Organisation (1991) Convention (No. 169) Concerning Indigenous and Tribal Peoples in Independent Countries, University of Minnesota Human Rights Library, Reviewed 28 February, 2017,

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Omagor C., & Mubiru P. M (2008). Entrepreneurship: An Integrated Approach. Kampala: Basic Business Books.

Onuoha B. C, & Amussah M. K (2006). Foundation of Business Management. Nigeria: Alvan Global Publications.

Stephen, P. R., Timothy, A. J. & Seema, S. (2009). Organizational Behaviour. 13Th ed. Delhi, India: Prentice Hall. UNDP (2001). Human Development Report 2001: Making New Technologies Work for Human Development, Oxford University Press, New York, Oxford. World Bank (2001). Draft Operational Policies (Op 4.10), Indigenous Peoples, The World Bank Group, Reviewed 9 June 2004.

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AN ASSESSMENT OF THE IMPACT OF NON-OIL IMPORT (NOI) ON NIGERIAN ECONOMY

1SALISU UMAR 2HABU SHEHU 3LAWALI BELLO ZORAMAWA 4GARBA IBRAHIM TANKO, Ph.d 1&2Department of Economics Aminu Saleh, College of Education, Azare Bauchi State 3Department of Curriculum Studies Sokoto State University. Sokoto 4Department of Public Administration Usmanu Danfodiyo University, Sokoto

ABSTRACT The study examines the effect non-oil import on economic growth in Nigeria over a period of thirty six years (1980-2016). The Augmented Dickey Fuller and Phillip Perron tests were applied to ascertain the stationarity of the variables. The study employed Autoregressive Distributed Lag Model as the method of data analysis. The result revealed that non oil import had a negative but not significant relationship with economic growth.. The Granger causality test revealed that non oil import cause economic growth. The study therefore recommends that: Government should abandon policies promoting non oil imports and urgently execute various trade policies aimed at putting a ceiling on non oil imports. Thus, only the importation of capital goods that are necessary should be encouraged, since not all importations are essential for economic growth.

Keywords: Economic Growth. Non-oil import, trade, Causality test ,Auto- regressive

Introduction In recent years, the issue of accelerated non oil export and import has been the main agenda in the economic policy formulation in most of the oil 36 | P a g e

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producing countries of the world Nigeria inclusive. As a result, researchers especially on development and international economics have investigated the performance of non oil exports and imports as it relates to global and domestic economic growth and development. Imports and exports therefore, play an essential role in determining the trade balance of a country. In fact, the dynamics of non oil sector hold significant importance for oil producing countries (Babatunde, 2014). Nigeria is basically, an open economy with global transactions constituting a considerable proportion of her aggregate output (Mike & Okojie, 2012). Indeed a vast literature exists exploring the relationship between imports and economic growth, in the form of import-led growth hypotheses. The hypothesis focuses on process of innovation and transfer of advanced technology through acquisition of much needed sophisticated capital and material resources (Ogbonna, 2015).Furthermore, considerable numbers of studies are in favour of import-led hypothesis suggesting that import stimulates economic growth (Udoumiekumo & Opukri, 2013). Indeed, other studies showed that imports negatively and significantly affect economic growth (Turan & Karamanaj, 2014; Bakari & Krit, 2017; Onwe, 2013; Ogbonna, 2015 among others). However, a cursory glance at Nigeria’s trade revealed that the share of primary products in total imports declined from 17.2% in 1980 to an average of less than 14% for the period of 1990-2000. Food imports fell from 13% of the total imports in 1980 to 8% in 1990 but come again to 13% by 2000. The share of capital goods in total imports declined from 28.2% in 2004, to 27.8% and 27.5% by 2006 and 2008 respectively. Total imports grew at an average rate of approximately 5%, 10% and 43% within the periods 1960-1965, 1966-1970 and 1971-1975, while total exports grew at an average rate of 10%, 14% and 51% within the same intervals (Egwaikhide, 1999; Oyinlola, Adeniyi & Omisakan, 2010). Certainly, in 2012, import value were 30.4 % greater than the value recorded in 2011, in the fourth quarter of 2013 imports decline to about 19.1% as against the third quarter of 2013 (NBS, 2016).

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Moreover, the largest fell in import was seen in the first quarter of 2015, when imports declined by 14.94% relative to the fourth quarter of 2014. This trend continued into the second and third quarters, when the value of imports declined by 1.27% and 1.2% respectively. In total, the value of imports in 2015 represents 4.15% decline relative to the previous year 2014. In addition, Nigeria’s import trade stood at N 2,069 billion at the end of second quarter, of 2016 showing an increase of 38.1% from the value N 1,498.4 billion recorded in the preceding quarter. Thus, the structure of the Nigeria’s import trade by section was dominated by the imports of “machinery, appliances, and parts thereof which accounted for 34.9% of the total value of import trade in second quarter of 2016. Other commodities which contributed noticeably to the value of import trade were “mineral products” 15% vehicles, aircraft, vessels e.t.c” 14.7% and “base metals and articles of base metals “ 5.1%, capital goods and parts ranked first with 32.1%, this was followed by industrial supplies with 20.4% and transport equipments and parts 17.2%. Nigeria’s import trade by direction showed that the country imported goods mostly from China, Netherlands, United states, India, and the United Kingdom, which respectively accounted for 23.9%, 13%, 9.6%, 6.0% and 5.8% of the total value of goods imported during the second quarter of 2016 (NBS, 2016). Furthermore, the impact of international trade on economic growth has been a topic of discussion in the field of literature for a long time in developing economies Nigeria inclusive. However, there have been several empirical studies which explored the impact of import on economic growth across countries. The studies devoted to examine the relationship by disaggregating imports into oil and non-oil were relatively few. Not only that, the result of these studies varies from one to the other; owing to the differences in econometric techniques, sample size, dataset as well as the variables captured in the models. Some of these studies includes: (Mafizur & Shahbaz, 2013; Edoumiekumo & Opukri, 2013; Gabriel & Charity, 2014 & Ogbonna, 2015 among others). However, these studies failed to recognize non-oil import as a distinct variable. It is against this backdrop that this study aims to empirically investigate the performance of non oil

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import and its contributions to economic growth in Nigeria using time series data from 1980-2016. It did not cover earlier periods because of the absence of complete dataset; the choice of the period is further justified following the central limit theorem of thirty minimum observations.

Empirical Review of Literature There has been scanty body of literature that focused on the direction of causality between non oil import and economic growth. These studies are presented below: Mafizur and Shahbaz, (2013) investigate the impact of imports and foreign capital inflows on economic growth of Pakistan over the sample period 1990-2010. The study applied structural break autoregressive distributed lag model (ARDL) bounds testing approach to cointegration on a time series dataset. Empirical analysis confirms the long run relationship between foreign capital inflows, imports and economic growth. Arawomo, (2014), examined the nexus between capital goods import and the economic growth in WAMZ countries via the application of panel ARDL, dynamic fixed effect, on a panel dataset over the sample period 1970-2012. The results indicated that capital import has a positive significant impact on economic growth in both short-run and long-run, although the magnitude of coefficient is higher in the long-run. The findings concluded that capital goods import increased from 1.24 billion dollar in 1970 to 49.77 billion dollar in 2012. Pindiriri, Makochekanwa and Ndudzo, (2014) examined the relationship between import structure and economic growth in Zimbabwe using vector error correction method (VEC). The research findings indicate the presence of cointegration between imports and economic growth. There also exist long run positive relationship between economic growth and imports. The study concludes that increased import of capital goods can help Zimbabwe to achieve long run economic growth while importation of consumption goods is detrimental to economic growth. Based on the results, they recommend that tariff liberalization should be biased towards capital goods.

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Edoumiekumo and Opukri, (2013) studied the economic growth factor in Nigeria, and applying augmented dickey fuller test (ADF) for the unit root test, and variables were stationary at levels, the Johansen cointegration test was also carried out to establish the short run and long run relationship, ordinary least square technique (OLS) was also used to assess the degree of influence the variables have on each other. It has found a positive relationship between the total import and the economic growth in Nigeria. Ugur, (2008) analyze empirically the relationship between disaggregated imports and economic growth in Turkey using time series dataset and applying vector auto regressive (VAR) analysis. The result from impulse response function (IRF) and variance decomposition show that there is a bidirectional relationship between GDP and investment goods import and raw materials import, there is unidirectional relationship between GDP and consumption goods. Mishra, (2012) applied the vector error correction (VEC), test and Granger causality Test on a time series dataset over the sample period 1970-2010 and study the relationship between import and economic growth it has found a significant positive relationship between the import and the economic growth in India. The result of the Granger causality test revealed that import does not Granger cause economic growth. The study recommends that government should stop importing goods that could be produced cheaply. Gabriel and Charity, (2014) have applied the vector error correction (VEC) model on a time series dataset for the period 1970-2011. However, they find no significant negative relationship between importations of manufactured factor inputs and the economic growth and a positive relationship between imported of factor inputs and the economic growth in Nigeria. The study recommends that decision makers should concentrate on non-oil trade policies. Ogbonna, (2015) examines the effects of disaggregated imports on the economic growth in Nigeria, the study applied the Standard Desk top Pairwise Granger causality test technique via the application of time series

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dataset over the sample period 1960-2008. He discovers a negative relationship between manufactured and capital goods import and the economic growth in Nigeria. Also Granger causality result indicates that import does not Granger cause growth. The study concludes that import led growth hypothesis does not hold for Nigeria. Onwe, (2013) study the relationship between trade balances and economic progress in Nigeria, using time series dataset over the period 1980-2010, and applying Keynesian approach to economic progress and Thirlwall’s (1997) Model. The result shows that there is a negative but insignificant relationship between the non-oil import and economic growth in Nigeria. The analysis concludes that the non-oil sub sector has continuously faced balance of payments deficits. The study recommends that an aggressive campaign on demand for made-in-Nigeria goods is a welcome strategy.

Methodology Based on the literature reviewed, the model that is relevant to the present study is that of Gabriel et al. (2014) . Therefore, the study adopts the model with modification and specified as follows: RGDP = f (NOIM ,) −−−−−−−−−−−−−−−−−−−−−−−−−−−−(1)

Thus, the model is further specified as: LOGRGDP =  +  LOGNOIM + − − − (2) t 0 1 t t Where: LOG = Natural logarithm RGDP = Gross domestic product NOIM = Non oil import  0 = Model intercept

1 = Coefficient of non-oil import  t = Error term

Analysis and Results The data collected for this study were analyzed in four stages. First the data have been subjected to descriptive statistics, and then followed by 41 | P a g e

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checking the properties of the data using the Augmented Dickey-Fuller (ADF) test, and the Phillips-Perron test. Autoregressive Distributed Lag (ARDL) model has also been conducted to examine the long run relationship among the variables and finally the diagnostic tests and Granger causality test. The autoregressive distributed lag (ARDL) bound testing cointegration procedure introduced by Pesaran and Shin (1999) and further extended by Pesaran, Shin and Smith (2001) has been used to verify if the long-run relationship exist in the model between the non-oil import and the economic growth in Nigeria. The ARDL bound test has several advantages over the well-known residual based approach proposed by Engle and Granger (1987) and the Maximum Likelihood based approach proposed by Johansen and Julius (1990). One of the important features of this test is that it does not require the pre-testing of the variables included in the model for unit roots unlike other techniques such as the Johansens approach and can be applied regardless of whether regressors (variables) are I(0) or I(1). In addition, it does not matter whether explanatory variables are exogenous (Pesaran & Shin, 1997). Secondly, it can be applied to a small sample size study (Pesaran, et al., 1997). Thirdly, it estimates the short- and the long-run components of the model simultaneously, removing problems associated with omitted variables and autocorrelation. Fourthly, this technique generally provides unbiased estimates of the long-run model and valid t-statistic even when some of the regressors are endogenous (Harris & Sollis, 2003). The ARDL models for testing the nexus between the non-oil import and the economic growth in Nigeria are presented in equation 3 and 4. m m LRGDPt =  0 +  1LRGDPt−1 +  3LNOIM t−1 + 1LRGDPt−1 +  3 LNOIM t−1 + t t=11 t=1

− − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − −(3) m m LNOIM t =  0 +  1LNOIM t−1 +   2 LRGDPt−1 +1LNOIM t−1 +  2 LRGDPt−1 + t t=1 t=1

− − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − −(4) Discussion of Findings In dealing with time series variables, it is pertinent to ascertain the nature of the series behavior so as to determine the order of integrations. To this conclusion, the result of the descriptive statistics is presented in Table 5.1 42 | P a g e

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and the result of the unit root test is presented in table 5.2, while ARDL Bound testing approach result is presented in Table 5.3. Furthermore, the results of the short run and the long run ARDL were presented in Table 5.4 and 5.5 respectively and finally the results of the Diagnostic test and Granger causality test were presented in Table 5.6 and 5.7.

Table 5.1: Results of Descriptive Statistics Variabl Observation Mean Std Minimu Maximu e s Deviatio m m n RGDP 36 13.4559 0.220447 13.18306 13.84374 2

36 33.5750 2.512702 29.25430 36.77424 LNOIM 3

Source: Author’s computation 2017.

The summary of the data used in estimating the relationship among the variables is presented in Table 5.1. The mean (average) of real GDP and non-oil import all have positive values. This situation indicated that there is an increase in the non-oil sector of the Nigerian economy and therefore shown that a drastic increase exit from the oil sector to non-oil sector in Nigeria with non-oil imports has a higher mean. This scenario revealed that more is been done with regard to the diversification of the economy. Non- oil import also having a higher standard deviation in the distribution. This shows that the rate at which non-oil import is changing is rising rapidly while real GDP having a lower standard deviation.

Table 5. 2: Results of Unit Root Tests Variable Level First Difference ADF PP ADF PP RGDP 1.352038 1.089591 -4.838580*** -4.834976***

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LNOIM -0.886478 -0.705471 -7.087962*** -7.051113***

Source: Author’s computation 2017

Table 5.2 presents the summary of the unit root tests results for the series in levels and in first difference in the form of augmented Dickey-Fuller and Phillips-Perron tests. The results revealed that all the variables are not stationary at their level values. However, the variables became stationary after first difference. Thus, all the variables RGDP, and LNOIM (real GDP and non-oil import) are integrated of order one I(1).This gives room for the application of cointegration test because one of the conditions for the application of ARDL test is fulfilled.

Table 5.3: Results of Autoregressive Distributed Lag (ARDL) Test Variable Function F-Statistic Remark

RGDP FRGDP(RGDP/LNOIM) 6.125223 Cointegrated

LNOIM FLNOIM(LNOIM/RGDP) 5.162205 Cointegrated

Critical Lower Bond Upper Bond value 10% 2.37 3.2 5% 2.79 3.67 1% 3.65 4.66 Source: Author’s computation 2017

The results of autoregressive distributed lag (ARDL) cointegration test are presented in Table 5.3. The results revealed that the evidence of long run equilibrium relationship among the variables in all the equations. However, the F-statistic in the non-oil import equation is lower than the lower bond critical value which indicates absence of cointegration.

Table 5.4: Results of Short-run Coefficients Using ARDL

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Short-run Coefficients Variable Coefficients Standard T-statistic P-value Error

DLNOIM -0.005092 0.014995 -0.339578 0.7365

ECM(-1) -0.168705 0.034547 -4.883400 0.0000 Source: Author’s computation 2017

The results of short run coefficients using ARDL are presented in table 5.4, based on the results, the coefficients of non-oil import has a negative but insignificant impact on economic growth. As for error correction mechanism, it has a right sign and statistically significant indicating that approximately 17% of the discrepancy in the previous year is corrected by the current year.

Table 5.5: Results of Long run coefficients using ARDL Long-run Coefficients Variable Coefficients Standard T-statistic P-value Error

LNOIM -0.020855 0.056472 -0.369297 0.7144

Constant 10.572778 0.557858 18.952463 0.0000 Source: Author’s computation 2017

The results of long run coefficients using ARDL are presented in table 5.5. Based on the outcome, the coefficient of non-oil import has a negative but insignificant impact on economic growth.

Table 5.6: Results of Diagnostic Tests Tests Test statistic F-Statistic P-value Serial Correlation Breusch-Godfrey LM 0.476705 0.6256 Test Heteroskedasticity Breusch-Pagan-Godfrey 1.205199 0.3284

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Functional Form Ramsey RESET Test 0.127425 0.7236

Source: author’s computation 2017 Table 5.6 presented the results of diagnostic tests; the results revealed that there is no any evidence of serial correlation, heteroskedasticity and functional mis-specification. In view of the above results, all inferences drawn from the results of this study are statistically adequate and unsuspicious.

Table 5.7: Results of Granger Causality Tests Null Hypothesis Obs F-statistic P-value

LNOIM does not Granger Cause 36 3.97659 0.0298 RGDP 0.41844 0.6620 RGDP does not Granger Cause LNOIM 36

Source: author’s computation 2017 In order to examine the causality test among the variable, the pair wise Granger causality test was conducted and the results were presented in Table 5.7. The results revealed that causality runs from non-oil import to economic growth. Thus, non oil imports cause economic growth not the other way round.

Results The ARDL result reveals that, economic growth is not caused by aggregate non-oil import during the study period. Conclusion/ Recomendations 46 | P a g e

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On the basis of the findings of this study, the following conclusions are drawn: Non-oil imports do not go a long way in impacting positively on economic growth. In fact the variable had a negative but insignificant impact on the economic growth in Nigeria. Therefore, the study revealed the worthlessness of this variable in Nigeria’s economic growth. Thus, Policies attempting to achieve economic growth through aggregate non oil imports should be abandoned in favour of other alternatives. Hence the study rejected the notion of non-oil import induced economic growth in Nigeria. Conclusively, this study therefore contributed to the knowledge in the sense that the findings of the study will be helpful to policy makers on international trade. For instance, since, non-oil import exerts a negative and insignificant relationship on economic growth, this study add to the knowledge because it will help the policy makers to use the findings on non-oil import to design policies aimed at reviving non-oil import economic growth stability. In view of the outcome of the estimated model, the following recommendation is offered which if properly implemented is expected to enhance non-oil import and economic growth-nexus in Nigeria. (i) From this study, government should abandon policies promoting non oil imports and urgently execute various trade policies aimed at putting a ceiling on non oil imports. However, it is quite clear that these policy actions should be applied carefully in order not to prevent the country from obtaining productive foreign technology which is fundamental in impacting significantly on economic growth especially for technology deficient economies like Nigeria. Indeed, Nigeria should allow in only growth-enhancing imports, to lessen the negative influence of non-oil import on economic growth. Thus, only the importation of capital goods that are necessary should be encouraged, since not all importations are essential for economic growth.

Suggestions for Further Studies

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In conclusion therefore, having analyzed the impact non-oil import on economic growth in Nigeria, the study recognized the need to investigate the nexus between the disaggregated non-oil import such as capital goods import and economic growth in order to enhance evidence-based decision making as regards to the adoption of trade-driven economic growth policies. Further studies may therefore use updated sample size and different econometric technique to test other important variables not captured in this study in probing this topic of argument even further to discover empirically what really drives growth in Nigeria.

REFERENCES Akinlo, A.E., & Adejumo, V.A. (2014). Exchange Rate Volatility and Non oil Exports in Nigeria. International Journal of Business and Management; 9(2): 70-79. Arawomo, F.D. (2014). Manufacturing Exports and Imports of Capital Goods. The Nigeria’s Case Economics Bulletin; 34(3). Babatunde, M.A. (2014). Are Exports and Imports Cointegrated? Evidence from Nigeria. Journal of International and Global Economic Studies; 7(2): 45-67. Bakari, S,. & Krit, M. (2017). The Nexus Between Export, Import, and Economic Growth: Evidence from Mauritania. International Journal of Economics and Business Research.

Edoumiekumo, S.G., & Opukri, C.O. (2013). Economic Growth Factor in Nigeria: The role of Global Trade. American Journal of Humanities and Social Sciences, 1(2): 51-55. Engle, R. & Granger, C. (1987). Co-Integration and Error Correction: Representation, Estimation, and Testing. Econometrica; 55(2): 251- 276. Gabriel, M.O., & Charity, O.J. (2014). Growth Evidence of Imports in Nigeria: A time series analysis. Journal of International Research, 3(2).

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Harris, D.J. (1978). Capital Accumulation and Income Distribution, Stanford: Stanford University Press. Harris, H., & Sollis, R. (2003). Applied Time Series Modelling and Forecasting. Wiley, West Sussex. Harris, J. R., & M. Todaro. (1970). Migration, Employment, and Development: A Two Sector Analysis, American Economic Review; 60:126-142. Harris, J.R. & Todaro, M. (1970). Migration, Employment, and Development: A Two Sector Analysis, American Economic Review; 60: 126-142. Harrod, R. (1939). An Essay in Dynamic Theory. Economic Journal; 49:14- 33. Heckscher, E.F., Henry, F. Bertil, O., & Flanders, M.J. (1991). Heckscher- Ohlin Trade Theory. Cambridge, Mass: MIT Press. Henderson, J.V., & Poole, W. (1991). Principles of Economics; D.C Heath and Company, Lexington. Hoag, A. J., & Hoag, J. H. (2006). Trade Without Money. In A. J. Hoag, & J. H. Hoag, Introductory Economics (4 ed., p. 520). Singapore, Singapore: World Scientific Publishing Co. Pte. Ltd. Johansen, S., & Juselius, K. (1990). Maximum Likelihood Estimation and Inference on Cointegration, With Applications to the Demand for Money. Oxford Bulletin of Economics and Statistics; 52:169 - 210.

Mafizur, M.R., & Shahbaz, A. (2013). Do Imports and Foreign Capital Inflows Lead Economic Growth? Cointegration and Causality Analysis in Pakistan. South Asia Economic Journal;1-26.

Mishra, P. K. (2012). The Dynamics of the Relationship Between Imports and Economic Growth in India. South Asian Journal of Macroeconomics and Public Finance.

NBS. (2016). Nigeria Foreign Trade Statistics, Abuja Nigeria.

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Ogbonna, B.C. (2015). Disaggregated Imports and Economic Growth in Nigeria. International Journal of Development and Economic Sustainability; 3(5): 36-46.

Onwe, O.J. (2013). Trade Balances and Economic Progress in Nigeria: Analysis of the Oil and Non- oil Sub- Sectors. International Journal of Business and Social Science; 4(8):233-243. Oyinlola, Adeniyi & Omisakin. (2010). Responsiveness of Trade Flows to Changes in Exchange Rate and Relative Prices Evidence from Nigeria. International Journal of Economic Sciences and Applied Research; 3(2): 123-141. Pesaran, M. H., & Shin, Y. (1999). An Autoregressive Distributed Lag Modelling Approach to Cointegration Analysi. In Strom S. (ed.) Econometrics and Economic Theory in the 20th Century: The Ragnar Frisch. Cambridge, UK: Cambridge University Press. Pesaran, M. H., Shin, Y. & Smith. (2001). Bounds Testing Approaches to the Analysis of Level Relationships. Journal of Applied Econometrics;16, 289–326. Pesaran, M.H,. & Shin, Y. (1997). An Autoregressive Distributed Lag Modelling Approach to Cointegration Analysis. Cambridge University Press http://www.econ.cam.ac.uk/faculty/pesaran/. Pindiriri, C., Makochekanwa, A, & Ndudzo, S. (2003). Examining the Long Run Relationship Between Import Structure and Economic Growth in Zimbabwe. University of Zimbabwe Business Review; 2(2), 29- 41.

Turan, G., & Karamanaj, B. (2014). An Empirical Study on Import, Export and Economic Growth in Albania. Academic Journal of Interdisciplinary Studies; 3(3): 218-438. Ugur, U. (2008). Import and Economic Growth in Turkey: Evidence from Multivariate VAR Analysis. Journal of Economics and Business; 6(2): 54-75.

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AN APPRAISAL OF JOB SATISFACTION AND EMPLOYEE PERFORMANCE IN PATERSON ZOCHONIS (PZ) PLS, MAIDUGURI BRANCH

1MOHAMMED JODA, 2JIDDA IBRAHIM, 3SOLOMON A. EDOGAME AND 4VIVIENNE, N. ISAAC 1&2Department of Public Administration, Ramat Polytechnic, Maiduguri 3Ulysses Nigeria Limited, Niger Road, Kano State 4c/o Ramat Polytechnic, P.M.B. 1070, Maiduguri,

Abstract This study is aim to evaluating the directional and causal relationships between organizational reword system and job performance of workers, using the workers in the manufacturing sector as a case study. Job satisfaction is the centerpiece and manifestation of an exchange relationship between the employees and employers. In situation of high competition in the business environment, the attainment of high organisational productivity must recognize the need to inspire and motivate the employees via the design, establishment and implementation of a robust reward system that calls out the best in the employees in terms of their performance, commitment, dedication and loyalty. The management of employee satisfaction is today more complex than it had hitherto been some four decades ago. Job satisfaction has been linked to personal as well as organizational factors the relationship between job satisfaction and various factors has examined the connection between job satisfaction and demographic predictors such as previous job experience. It was demonstrated that professional experience impacts job satisfaction significantly. The same study revealed that age, education and race had little effect on job satisfaction. As well, gender, functional grouping, and hospital tenure did not impact job satisfaction significantly. 51 | P a g e

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Keywords: Appraisal, Satisfaction, Employee, Performance, Paterson

INTRODUCTION The management of employee satisfaction is today more complex than it had hitherto been some four decades ago. This is because many unanticipated legal, social, cultural and economic constraints have surfaced in recent time (Banjoko 2006). The dynamic nature of the environment has altered the values and expectation of the workers thus putting pressure on employers to review upwards the contents of any compensation package. The economic situation of Nigeria has changed drastically in recent time such that cost of living has shut up drastically, cost of operation has increased and competition has become more intense. Workers are more sensitive to the value they create and the reward they get in form of wages and benefits. The health sector of the Nigerian economy is not left out in the race for better rewards by making use of their union to agitate for better pay and incentives. Employees through their unions now argue that if they had put in so much effort to help the organization to create value, it is only fair that they be given a fair bite of the cake. Consequently, there are often more frequent demands for pay increases from workers in all the sectors of the economy. Job satisfaction is no doubt one of the most problematic and significant aspects of human resources management. Consequently, the cardinal objectives of job satisfaction is to put forward reward structures as well as implement these reward processes in a manner that would enhance both individual and organizational effectiveness. In this regard, some of the following consideration may become quite imperative; rewarding positive work behavior while sanctioning undesirable work behavior, ensuring equity and fairness. This study is therefore aimed at evaluating the directional and causal relationships between organizational reword system and job performance of workers, using the workers in the manufacturing sector as a case study. Job satisfaction is the centerpiece and manifestation of an exchange

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relationship between the employees and employers. In situation of high competition in the business environment, the attainment of high organisational productivity must recognize the need to inspire and motivate the employees via the design, establishment and implementation of a robust reward system that calls out the best in the employees in terms of their performance, commitment, dedication and loyalty. The process of effectively managing any organizations reward systems is undoubtedly one of the most complex and problematic issues in human resources management. Thus, this study was embarked upon to appraise job satisfaction and employee performance with special reference to Paterson Zochonis (PZ) Nigeria Plc, Maiduguri. In Nigeria, (Mullins, 1999) examined job satisfaction in terms of the fit between what the organization requires and what the employee is seeking and in terms of the fit between what he/she is actually receiving. The level of job satisfaction is affected by a wide range of variables relating to (1) individual (i.e. personality, education, intelligence and abilities, age, marital status and orientation to work); (2) social factors (i.e. relationship with co-workers, group working and norms and opportunity for interaction; (3) cultural factors (i.e. attitudes, benefits and values) (4) organizational factors (i.e. nature and size, formal structure, personnel policies and procedures, supervision and styles of leadership and working conditions); and (5) environmental factors (i.e. economic, social, technical and governmental influences of the nation). Typically, the factors that can be used to measure and influence job satisfaction and performance are: pay or total compensation, the work itself, promotion opportunities, relationship with supervisor, interaction and work relationship with co-workers, job security, opportunity for growth, position and supportive environment (Obisi, 2003). Job performance assesses whether a person performs a job well or not. Campbell (2013) describes job performance as an individual-level variable or something a single person does. On a very general level job performance can be defined as all the behaviours employees engage in while at work. However, this is a rather vague description. A fair amount of the

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employees‟ behaviour displayed at work is not necessarily related to job- specific aspects. More commonly, job performance refers to how well someone performs at his or her work. Definitions range from general to specific aspects and from quantitative to qualitative dimensions. Initially, researchers were optimistic about the possibility to define and measure job performance. However, soon enough they started to realise that determining the dimensions of a job and its performance requirements was not a straightforward process. Nowadays it is generally agreed that job performance consists of complicated series of interacting variables pertaining to aspects of the job, the employee and the environment

STATEMENT OF RESEARCH PROBLEM Many scholars have attempted to trace where the problem of low performance among workers lies with the rise of new ideas of management. One need to see that these ideas are applied and those Nigerian workers are motivated for maximum performance. However, the opposite has always seemed to be the case. One may notice that in many public organizations, the non-challant and sluggish attitude by employees makes one wonder what actually are responsible for such attitude. Is it that the provision in the management system has not provided enough job satisfaction and motivation to make employees excited and committed to their work? Many organizations face challenges in accurately measuring job satisfaction as the definition of satisfaction can differ among various people within an organization. Despite widespread belief to the contrary, studies have shown high-performing employees do not feel satisfied with their job simply as a result of high-level titles or increased pay.

OBJECTIVES OF THE STUDY The main objective of the study is to appraise job satisfaction and employee performance in PZ Nigeria Plc, Maiduguri; the specific objectives of the study are to: i) examine the impact of job satisfaction on employee performance; 54 | P a g e

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ii) determine the various motivational factors that could impact on the efficiency of employees; iii) examine the factor responsible for employees’ satisfaction or/and dissatisfaction in the organisation. iv) identify problems associated to job satisfaction in regard to employee performance.

CONCEPTUAL ISSUES JOB SATISFACTION AND EMPLOYEE PERFORMANCE According to Brayfield & Rothe (1951), the concept of job satisfaction has emerged and now there are several factors contributing to it which are monetary and non-monetary. Job satisfaction is the favorableness or un- favorableness with which employees view their work and it is affected by both the internal and external environment of the organization. Job design affect the job satisfaction, as jobs that are rich in behavioral elements such as variety autonomy, task unimportance and feedback contribute to employee’s satisfaction. Similarly the employee’s acceptance by the work group is important to job satisfaction. The most cited cross-cultural work on employee attitudes is that of Hofstede (1980, 1985). He conducted research on employee attitude data in 67 countries and found that the data grouped in to four major dimensions and those countries systematically varied along these dimensions. The four cross-cultural dimensions are: (1) individualism- collectivism; (2) uncertainty avoidance versus risk taking; (3) power distance, or the extent to which power is unequally distributed; and (4) masculinity/femininity, more recently called achievement orientation. For example, the United States was found to be high on individualism, low on power distance, and low on uncertainty avoidance (thus high on risk taking), whereas Mexico was high on collectivism, high on power distance, and high on uncertainty avoidance. If supervisors are asked to name their biggest work problem, employee satisfaction invariably is likely to be at top of the list.

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Judge, Locke, Durham, & Kluger, (1998) found that a key personality trait, core self-evaluation, correlates with (is statistically related to) employee job satisfaction. They also found that one of the primary causes of the relationship was through the perception of the job itself (Judge, Heller, & Mount, 2002). The achievements of individuals and organizational goals are independent process linked by employee work motivation. Individuals motivates themselves to satisfy their personal goals, therefore they invest and direct their efforts for the achievements of organizational objectives to meet with their personal goals also. It means that organizational goals are directly proportion to the personal goals of individuals. The organizational climate is positively related to the job satisfaction and organizational commitment. The higher organizational climate will lead to higher job satisfaction and more organizational commitment. Employees’ attitude towards their organization which has great impact towards their working ways and contributions, in consequence organizational climate causes organization performance because this relates directly to employees’ motivation. Employee job satisfaction has been interconnected with how people think, feel and observe their jobs. It is widely used in the field of human resources, who thought that the internal and external features are elements work satisfaction reports (Hui, 1990). In other words, job satisfaction, it is satisfying emotional state as a result of damage assessment of the occupation or the experience of a job (Locke, 1976). According to Jackson (2002), is widely studied organizational job satisfaction survey, all which variable related to how people feel about their jobs and different aspects of their work. This really is the extent to which people like or dislike their work. Employee job satisfaction is known as assemble that has often been described, discussed and researched. There are many presumptions regarding the causal relationship between motives, behaviour and proceeds. Employee satisfaction is the measure that tells about employee’s general emotion about its workplace and job. It measures his approach towards the job and the extent to which the job is gratifying the employee’s

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needs. It is concluded by many researchers that, to measure the intentions of an employee towards their workplace the satisfaction level of employees is used (Mirvis & Lawler, 1977). Numerous factors have been resolute by the researchers like enthusiastic behavior, hygiene factors, managerial responsibility and workplace environment by building on different theories, (Scarpello & Campbell, 1983). In literature, a number of practices have been done for the satisfaction of employees. The most important to which is the Maslow‟s hierarchy of need. In this theory, he suggests that individual needs starts from the basic need (food, cloth and shelter) and ends at the level of self-actualization. Researchers such as Kuhler & Mathieu (1963) approached to find the factors affecting the satisfaction of employee based on the theory of necessity. According to Harter, Schmidt & Hayes (2002), loyalty is a mental state and illustrates the association of employees with the organization for which they work, and that influences their decision to remain with the organization, establishing the organization, which can be considered a response exciting, especially when the employee believes the values and goals of the organization, and a strong desire to maintain a relationship with an organization called loyalty. A strong desire to remain a member of the willingness of the organization to establish a high level of effort for of the organization and a clear belief and acceptance of the values and goals of the organization. Therefore, characterize as a belief that plays positive role in maintaining the member of the organization. Strong membership retention of employees in the organization of their organization can be described as" the relative strength of individual recognition and dissemination in a particular organization. As suggested by empirical data, job satisfaction is a precursor of loyalty to the organization. This shows that loyalty, employee satisfaction the organization of work and the real fidelity mediator satisfaction variables turnover.

IMPACT OF JOB SATISFACTION Job performance generally refers to whether a person performs their job well or not. Job performance is the way employees execute their work. An

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employee's performance is determined during job performance reviews. A fruitful service firm has invested resources into programs in order to increase job satisfaction and their employees‟ performance. The turnover intention is the degree to which employees leave the organization. It also reflected being as leaving the company or department (Hackett & Guion, 1985). The further variables like employee empowerment includes that to what range employees are authorized in decision making in their day-today activities (Kaplow, 1996) Employee empowerment is a conception linked to motivation and a feeling to improve self confidence among the employees. Workplace environment includes the location of the work, where the employee performs his everyday activities and duties, such as office or site of construction. Generally other factors like, fresh air, refreshment, noise level and the incentives e.g. child care, also become a part of workplace environment. According to Allen and Grisaffe (2001), loyalty is a psychological state and it illustrates the association of an employee with the organization for which they work and that has implications for their decision to stay with the organization. As far as our vision is concerned, the emphasis of this research paper is to discover the main factors that help to create the concern of employees towards his job. So, this study will help the supervisors and organizations to better understand about the satisfaction level of employees and how they can encourage their employees to carry out their job proficiently and effectively. The turnover intention is measured the leave-taking of the company or department. Turnover intention is an instant ancestor to actual turnover. As per some scholars, turnover can be predicted by personal behavior. Employee’s satisfaction shows a pessimistic relationship with employee turnover intention. When employees are delighted with their job then turnover ratio decreased in the organization and when the employee is not given his rights when he is not contented with his job then the intention of turnover increased with their jobs. Strengthening the concept of empowerment is derived from alienation. It is proposed form of participationand refers to the extent to which

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employees are encouraged to take a firm decision, without consultation with their managers so that the organizational dynamics initiated at the bottom Empowerment practice to divide the power of participation in decision-making, this aspect concerns the decision of the leadership behavior and therefore can be defined as the strengthening of the building, which has delegated management by providing employees with authority and autonomy over their tasks. Empowerment can be effected by turnover intention. A conscious and intentional willfulness to quit an organization is called turnover intention. This can be explained as a psychological response to specific organizational conditions that are part of a continuum of behavior resignation of the organization of the physical act of turnover dream (Kraut, 1975). From the perspective of the judges with House (1995) the level of achievement of business and social objectives to measure job performance and accountability). There are three types of transactions. One of them is a measure of the amount of sales in a given time period, the output frequency and production groups of employees reporting manager, and so on. The second type of evaluation performance evaluation of individuals affected persons other than those whose performance is considered someone. The third method of performance evaluation is self-evaluation and self- evaluation. The studies show that job performance is positively related with job satisfaction. There is high demand of trained, highly skilled and qualified employees in labour market. The output and yield of an organization is calculated in terms the performance of its workforce. It was originate that if an employee is showing better performance then it is due to level of job satisfaction have investigated the important employee performance indicators at the hiring stage. They concluded that the employee’s productivity is affected by level of job satisfaction and motivation. For high performer employees demands attractive packages from the employers. And now it has become dilemma for the human resource experts to retain the performer (Weiner, 2000). The employee commitment is adversely effected by the low level of employee satisfaction and sequentially it effects the achievement of organizational objectives and

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performance. There is empirical support that intention to leave is negatively related to performance and job satisfaction.

MOTIVATIONAL FACTORS Obisi (1996) refers to job satisfaction in terms of how people feel about their jobs and different aspects of their jobs. Edwards & Fisher (2004) support this view by defining job satisfaction as the extent to which employees like their work. Saari & Erze (2002) defines job satisfaction as an affective or emotional response towards various aspects of an employee’s work. Hofstede (1985) defines job satisfaction as the feeling that a worker has about his job or a general attitude towards work or a job and it is influenced by the perception of one’s job. Wanous and Motowidlo (1996) refers job satisfaction is the sum of job facet satisfaction across all facets of a job. Abraham Maslow (1954) suggested that human need a from a five-level hierarchy ranging from physiological needs, safety, belongingness and love, esteem to self-actualization. Based on Maslow’s theory, job satisfaction has been approached by some researchers from the perspective of need fulfillment. Job satisfaction and dissatisfaction not only depends on the nature of the job, it also depend on the expectation what’s the job supply to an employee. Lower convenience costs, higher organizational and social and intrinsic reward will increase job satisfaction. Job satisfaction is complex phenomenon with multi facets; it is influenced by the factors like salary, working environment, autonomy, communication, and organizational commitment. Different people interpret compensation differently. In this paper compensation, reward, recognition, and wages are terms used in different situations. The compensation is defined by American Association is “cash and non-cash remuneration provided by the employer for services rendered” (ACA, p. 9). Salary was found to be the prime factor for the motivation and job satisfaction of salaried employees of the automobile industry from the results of the survey.. The survey tried to assess the various job characteristics and the way the employees ranked them as

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motivators and satisfiers. The results showed that compensation was ranked as the number one job element for job satisfaction and increase in salary for performance was ranked as the number one job element for motivation. Compensation is very valuable tool for retention and turnover. It is also a motivator for an employee in commitment with the organization which in result enhances attraction and retention. It also works as communicator when it is given to employee against his services which shows how much an employee is valuable for its organization.

INCENTIVES The standard for success across the globe is having a vision that compels you to succeed. Motivation is the key in accomplishing all organisational goals. Finding the tools to put meaning and purpose in a worker’s life, developing a vision and becoming highly motivated can lead to a successful and exciting job. Murphy (2011) identifies the following as incentives that can affect job satisfaction and job performance in an organisation: 1. Training: When employees are constantly trained and retrained, it tends to lead to productivity and efficiency. Therefore, as a motivational tool, employers of labour are hereby encouraged to train and develop their employees in order to achieve organisational objectives. 2. Career path: Employees need to know what is potentially ahead for them, what opportunities there are for growth, therefore, career path plays a major role in motivating employees. 3. Job Title: When we talk about job title, we are tapping the self-esteem of people. How an employee feels about the way they are perceived in the workforce is a critical component to overall attitude and morale. 4. Good work environment: A study recently carried out by Murphy (2011) show that employees working in a favourable condition perform more effectively and efficiently.

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5. Leadership roles: When employees are given leadership roles to reward their performance it will help the organisation identify future promotable employee. Most people are stimulated by given leadership roles. 6. Additional Responsibilities: There are employees who are motivated by being given additional responsibility to handle their organisation. When employers give additional responsibilities to their staff it encourage him/her to perform extra-ordinarily.

People do things voluntarily because they have a motive to do so, when forced to change comfortably ways of performing, they resist. It is as simple yet as profound as that. Aiming at targets that fulfil employee needs leads to higher productivity and a higher level of job satisfaction. The payoff is translated into improved quality, lower turnover and a more positive work environment. This is reality, it is common sense and it is good management (www.ncbi.nlm.nih.gov/pubmed/101122426)

PROBLEMS OF JOB SATISFACTION The definition of job satisfaction is open-ended, with many versions presented in the literature. There is no one universal definition for “job satisfaction”, since it refers to general as well as to specific work satisfaction. The specificities include intrinsic and extrinsic satisfactions. It is a multi-dimensional concept that has been linked to various job aspects. Assessing the nature of job tasks is considered to be intrinsic job satisfaction whereas assessing external issues to the job task, i.e. benefits, bonuses and salary is viewed as extrinsic (Hackett & Guion, 1985). Herzberg (1968) described two factor theories: “hygiene” factors and “motivators”. Extrinsic factors such as administration, company strategies, work conditions, salary, and relationships among co-workers are considered “hygiene” factors which can cause job dissatisfaction. Intrinsic factors such as recognition, achievement, personal development, advancement, and responsibility are referred to as “motivators” that can

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create job satisfaction. Previous studies have shown that there are various factors explaining job satisfaction because it cannot be associated solely with one factor. Since job satisfaction has a multifaceted structure, it is linked to organizational commitment, and the relationship between satisfaction and organizational commitment is considered to be particularly important. The concept of motivation was studied in the early 1950’s (Herzberg, 1959; Vroom, 1964) from the managerial point of view. These early studies discussed thoroughly the factors that motivate people in their work environment. To improve health care practices, management units should provide a suitable environment for workers that characteristically links to job satisfaction, motivation and any other desired outcomes (Vilma and Eagle, 2007). There are various factors affecting motivation such as general job satisfaction, salary, promotion, organization and educational background. Rewards and incentives may be insufficient when employees are encouraged to pursue external objectives (Deci and Ryan, 1985). This creates the necessity to look for other significant factors that contribute to employee satisfaction. Work environment is another factor affecting job satisfaction. Organizational culture has a positive impact on job satisfaction, and organizational culture combined with the work environment is strongly related. In an organization where employees share positive interaction, and meet personal satisfaction as well as organizational goals, a constructive organizational culture might help to develop job satisfaction and establish a positive working environment (Mulcahy and Betts, 2005). Job satisfaction and performance has been studied from differing points of view. It has been generally believed for some time that creating a positive working environment for employees affects productivity as well as the happiness of the workers. However, this view has been questioned in recent years. There is no conclusive evidence confirming that a happy person is a productive employee.

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THEORETICAL FRAMEWORK Job satisfaction theories have a strong overlap with theories explaining human motivation. The most common and prominent theories in this area include: Maslow’s needs hierarchy theory; Herzberg’s motivator-hygiene theory; the Job Characteristics Model; and the dispositional approach.

Hierarchy of needs Although commonly known in the human motivation literature, Maslow’s needs hierarchy theory was one of the first theories to examine the important contributors to job satisfaction. The theory suggests that human needs form a five-level hierarchy consisting of: physiological needs, safety, belongingness/love, esteem, and self-actualisation. Maslow’s hierarchy of needs postulates that there are essential needs that need to be met first (such as, physiological needs and safety), before more complex needs can be met (such as, belonging and esteem). Maslow’s needs hierarchy was developed to explain human motivation in general. However, its main tenants are applicable to the work setting, and have been used to explain job satisfaction. Within an organisation, financial compensation and healthcare are some of the benefits which help an employee meet their basic physiological needs. Safety needs can manifest itself through employees feeling physically safe in their work environment, as well as job security and/ or having suitable company structures and policies. When this is satisfied, the employee’s can focus on feeling as though they belong to the workplace. This can come in the form of positive relationships with colleagues and supervisors in the workplace, and whether or not they feel they are a part of their team/ organisation. Once satisfied, the employee will seek to feel as though they are valued and appreciated by their colleagues and their organisation. The final step is where the employee seeks to self-actualise; where they need to grow and develop in order to become everything they are capable of becoming. Although it could be seen as separate, the progressions from one step to the next all contribute to the process of self-actualisation.

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Therefore, organisations looking to improve employee job satisfaction should attempt to meet the basic needs of employees before progressing to address higher-order needs. However, more recently this approach is becoming less popular as it fails to consider the cognitive process of the employee and, in general, lacks empirical supporting evidence. In addition, others have found fault with the final stage of self-actualisation. The lack of a clear definition and conceptual understanding of self-actualisation, paired with a difficulty of measuring it, makes it difficult to measure what the final goal is or when it has been achieved.

DATA ANALYSIS Table 1: Satisfaction with pay package Options No. of respondents Percentage (%) Yes 10 18 No 45 82 Total 55 100 Source: Field survey, 2018

The table shows that 18% of the respondents said they are satisfied with their pay package while 82% said they are not satisfied and need increment.

Table 2: Office equipped with modern facilities and optimum performance Options No. of respondents Percentage (%) Yes 20 36 No 35 64 Total 55 100 Source: Field survey, 2018

The above table 2 shows that 36% of the respondents said their office is well equipped with modern facilities while 64% said their offices are not well equipped, therefore, they do not perform very well. Table 3: Problem working with your superior? 65 | P a g e

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Options No. of respondents Percentage (%) Yes 20 36 No 35 64 Total 55 100 Source: Field survey, 2018

The table 3 above shows that 64% of the respondents said they do not encounter any problem with their superiors while 36% of them said they encounter some problems working with their superiors.

Table 4: Lack of motivation affect your level of productivity Options No. of respondents Percentage (%) Yes 55 100 No - - Total 55 100 Source: Field survey, 2018 As indicated above all the respondents agreed that lack of motivation affects their productivity, this means that if there is no job satisfaction there is low productivity or performance. Table 5: Appraise for promotion Options No. of respondents Percentage (%) Recommendation from your 30 55 superior 15 27 Educational advancement 5 9 Personal conduct 5 9 Hardwork & honesty Total 55 100 Source: Field survey, 2018

The above table shows that 55% of the respondents said the Organisation appraise them through recommendations from their superior, 27% said they are appraised through educational advancement while 9% said they 66 | P a g e

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are appraised through personal conduct, hard work and honesty respectively.

Table 6: Relationship between you and your superior Options No. of respondents Percentage (%) Cordially 40 72 Very cordial 10 18 Official 5 10 Total 55 100 Source: Field survey, 2018

The above table indicated that 72% of the respondents enjoys a cordial relationship with their superiors, 18% said they enjoy very cordial relationships with their superiors while 10% said the relationship with their superior is official.

Table 7: Challenge with job Options No. of respondents Percentage (%) Yes 45 90 No 5 10 Total 55 100 Source: Field survey, 2018

The above table shows that 90% of the respondents said they face different challenges in their jobs while 10% said there are no challenges.

DISCUSSION OF FINDINGS Majority of the respondents that responded to the questionnaire was within the ages of 26-34 years which means they are capable of giving reasonable information. 54% of them are male. 45% of them are either OND/NCE holders and 27% of them are HND/B.Sc. holders, majority of them (54%) are married and 56% of them have served the organization for 10 years and above. The findings also show that 63% of the respondents 67 | P a g e

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are not satisfied with their jobs and The finding shows that 63% of the respondents think that their performance as satisfactory and 73% of the respondents agreed that motivation brings about job satisfaction. 73% said the organization motivates them; table 55% said there is job satisfaction committee in the organization; 45% of the respondents said medical treatment is motivational benefit put in place by the organization. 35% of the respondents needs the organisation to introduce in-service training and 90% in table 14 think that the method of motivation is effective. All the respondents disagreed there is no monetary reward for performing exceedingly well. 82% said they are not satisfied with their pay package and need increment, 64% said their offices are not well equipped with modern facilities. 64% said they encounter some problems working with their superior. 55% of the respondents said lack of motivation affects their level of productivity. 54% of the respondents are appraised through recommendations from their superior. 72% have cordial relationship with their superior and table 24 shows that 90% of the respondents faces some kind of challenge with their jobs. The study also revealed that there are so many reasons why organisations find out different people doing the same job, but performance at different levels. This difference attributed to the fact that abilities of individuals vary according to the individual training, education and experience and individuals are motivated differently. Therefore, to improve employees’ performance which in turn depends on the job satisfaction, a manager must understand factors that will motivate employees. The research work also revealed that individuals working in an organisation have their own needs which might be different from the needs of the organisation. This study is in line with Herzberg’s motivation hygiene theory which suggests that job satisfaction and dissatisfaction are not two opposite ends of the same continuum, but instead are two separate and at times even unrelated concepts. Motivating factors like pay and benefits, recognition and achievement need to be met in order for an employee to be satisfied with work. On the other hand, hygiene factors such as working condition,

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company policies and structure, job security, interaction with colleagues and quality of management are associated with job dissatisfaction. Xie and Johns (2002) also viewed factors like salary, working environment, autonomy, communication and organizational commitment as factors that enable job satisfaction.

CONCLUSION In this study, the study looked at the job satisfaction and employees’ performance in PZ Nigeria Plc, Maiduguri. What is deduced from this study is that employees are not satisfied with their take home pay and the study also shows that job satisfaction and employees’ performance are not directly related. Job satisfaction has been linked to personal as well as organizational factors The relationship between job satisfaction and various factors has examined the connection between job satisfaction and demographic predictors such as previous job experience. It was demonstrated that professional experience impacts job satisfaction significantly. The same study revealed that age, education and race had little effect on job satisfaction. As well, gender, functional grouping, and hospital tenure did not impact job satisfaction significantly.

RECOMMENDATIONS The following are the recommendations derived from the finding in this research 1. Many of the staff are poorly educated and are not adequately trained, it is recommended that more educated hands should be employed and adequate training should be given to develop in their job. 2. The Organisation should pay enough incentives to the employees so that they can satisfy their needs and put in their best toward the achievement of the set goal. 3. Employees should be promoted as at when due because it is an important factor that affects workers satisfaction on the job.

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Walsh (1999). Personnel Management: A Human Resource Systems Approach; New York: Reinhold Publishing Corporations Ltd.

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FREDRICK TAYLOR’S SCIENTIFIC MANAGEMENT THEORY: A REVIEW OF UNPRECEDENTED CONTRIBUTION TO PUBLIC AND PRIVATE LEADERSHIP TRANSFORMATION

*MURTALA AHMED **ADAMU BUBA AND **HUSSAINI ADAMU HUSSAINI *Department of Public Administration, Federal Polytechnic, Bauchi **Department of General Studies, Federal Polytechnic, Bauchi

Abstract Public Administration is a composite of isolated however interrelated controls. It was a vital piece of an assortment of different trains previously until when it became an independent field in the 1980s with its very own character. Today it incorporates real components of political science, law, management sciences, financial aspects, business administration, sociology, psychology etc. Its customary roots were in political science and logical administration, where it spoke to change and a clear with emphasis and focus around administrative proficiency and responsibility. Step by step, the field of public administration started to draw increasingly from the behavioral sciences, at that point a push to comprehend the complexities of human behavour and what inspires individuals combined and fused the mental measurement of the social sciences. Of late, the attention has been on the part of public administration in leadership and governance. Various theeories have been propounded in and for public administration, one of which is the Frederick Taylor's Scientific Theory of Management. This model must have taken the bull by the horn to address administrative inefficiencies and loopholes, though not without some criticisms from both management and workers of an organization. Based on the forgoing, this review will highlight the background of the author, basic components of scientific management, how administration is viewed by him and some criticisms of the approach. It 76 | P a g e

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will conclude with a summary and recommendations. Secondary data was primarily used.

Keywords: Scientific Management, theory, Contribution, Public & Private, Leadership

Introduction Two major ‘sub-groupings’ of the classical approach are: Scientific Management (founded by Frederick W. Taylor) and Bureaucracy (formulated by Max Weber). Scientific Management (coined by Louis Brandesis) was received as a way to achieve greater efficiency in the management of public business. The objective of Scientific Management was to discover the basic principles f motion involved in the performance of physical tasks and then to determine me "one best way” of performing any task. A major contributor to this approach *as Frederick Taylor (1856- 1915). who saw Scientific Management as a mental revolution’ in which a scientific approach could be brought to bear not only on the performance of physical tasks but on all social problems. Frederick Taylor is considered the Father of Scientific Management. :- Predecessors to Taylor were Charles Babbage1 (1792-1871), an English Captain Henry R. Towne2 an American industrialist and engineer, retain Henry Metcalfe3 and Frederick Halsey. Under Taylor's administration framework, processing plants are overseen through logical strategies as opposed to by utilization of the exact "dependable guideline" so broadly predominant in the times of the late nineteenth century when F. W. Taylor contrived his framework and distributed "Logical Management" in 1911. The fundamental components of the Scientific Management are : "Time thinks about Functional or specific supervision Standardization of apparatuses and executes Standardization of work strategies Separate Planning capacity Management by exemption guideline The utilization of "slide-rules and comparable efficient gadgets" Instruction cards for laborers Task portion and substantial reward for fruitful execution The utilization of the 'differential rate' Mnemonic frameworks for arranging

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items and actualizes A steering framework A cutting edge costing framework and so on and so forth. " Taylor called these components "simply the components or subtle elements of the systems of administration" He considered them to be expansions of the four standards of management. 1. The advancement of a genuine science 2. The logical choice of the worker 3. The logical instruction and improvement of the worker 4. Close and cordial collaboration between the administration and the men. An essential hindrance to utilization of logical administration was the constrained instruction of the lower level of supervision and of the work compel. A vast piece of the production line populace was made out of late migrants who needed education in English. In Taylor's view, chiefs and specialists with such low levels of training were not fit the bill to arrange for how function ought to be finished. Taylor's answer was to isolate arranging from execution. "In all the repairman expressions the science which underlies each demonstration of every laborer is so incredible and sums to so much that the worker who is most appropriate to really taking the necessary steps is unequipped for completely understanding this science.." To apply his answer, Taylor made arranging divisions, staffed them with engineers, and gave them the obligation to: 1. Create logical strategies for doing work. 2. Build up objectives for efficiency. 3. Build up frameworks of prizes for meeting the objectives. 4. Prepare the faculty in how to utilize the techniques and in this manner meet the objectives.

However, scientific study and institutionalization were vital parts of the Scientific Management. One case, was the examination embraced to decide the ideal scoop stack for laborers. The figure of 21 pounds [18] was landed at by the examination. To guarantee that this scoop stack was clung to, a progression of various scoops were obtained for various sorts of material. Each scoop was intended to guarantee that exclusive 21 pounds could be

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lifted. This ceased the circumstance where "every shoveller claimed his own particular scoop, that he would as often as possible go from scooping metal, with a heap of around 30 pounds for each scoop, to taking care of rice coal, with a heap on a similar scoop of under 4 pounds. In the one case, he was overloaded to the point that it was outlandish for him to complete an entire day's worth of effort, and in the other case he was so incredibly under-stacked that it was plainly difficult to try and inexact full time work." Taylor spent a lot of his books in depicting "soldiering" the demonstration of 'loafing' both at an individual level and "precise soldiering". He portrayed the fundamental reasons that laborers were not playing out their work at the ideal. Despite the fact that worded patronizingly the quintessence of the depictions are as yet substantial: 1. The conviction that expanded yield would prompt less specialists. 2. Wasteful aspects inside the administration control framework, for example, ineffectively outlined motivation plans and time-based compensation rates not connected to profitability. 3. Poor outline of the execution of the work by general guideline

Aims of Scientific Management Proponents of Scientific Management, in particular Taylor, enunciated the following aims of Scientific Management. The objectives of Scientific Management are to: 1. Gauge industrial tendencies and the market in order to regularize operations in a manner which will conserve the investment, sustain the enterprise as an employing agency, and assure continuous operation and employment. 2. Assure the employee not only continuous operating and employment by correct gauging of the market, but also to assure by planned and balanced operations a continuous earning opportunity while on the payroll. 3. Earn through a waste-saving management and processing technique, a larger income from a given expenditure of human and

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material energies, which shall be shared through increased wages and profits by workers and management. 4. Make possible a higher standard of living as a result of increased income to workers. 5. Assure a happier home and social life to workers through removal, by increase of income, of many of the disagreeable and worrying factors in the total situation. 6. Assure healthful as well as individually and socially agreeable conditions of work. 7. Assure the highest opportunity for individual capacity through scientific ways of work analysis and of selection, training, assignment, transfer and promotion of workers. 8. Assure by training and instructional foremanship the opportunity for workers to develop new and higher capacities, and eligibility for promotion to higher positions. 9. Develop self-confidence and self-respect among workers through opportunity afforded for understanding of one’s own work specifically, and of plans and methods of work generally. 10. Develop self-expression and self-realization among workers through the stimulative influence of an atmosphere of research and valuation, through understanding of plans and methods, and through the freedom of horizontal as well as vertical contacts afforded by functional organization. 11. Build character through the proper conduct of work. 12. Promote justice through the elimination of discrimination in wage rates and elsewhere. 13. Eliminate factors of the environment which are irritating and the causes of frictions, and to promote common understandings, tolerances and the spirit of teamwork.

Impact of Scientific Management Scientific Management opened the way for improvement in successful ventures. It brought about a more effective use of labour, material and

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managerial capabilities. Taylor’s system of management, based on scientific principles, promoted a new culture and values in sharp contrasts to those existing at the time. Scientific Management, for example, placed emphasis on eliminating wastes in effort, materials, time and skills. Taylor’s concept of organization under Scientific Management is thus one in which harmony is ensured through close and intimate cooperation between management and the workers. As Taylor puts it: “The majority of men believe that the fundamental interests of employees and employers are necessarily antagonistic. Scientific Management, on the contrary, has for its very foundation the firm conviction that the interests of the two are one and the same; that prosperity for the employer cannot exist through a long period of years unless it is accompanied by prosperity for the employee and vica versa.” Although Taylor stresses cooperation in the workplace, authority is not to be shared equally by management and the workers. For Taylor, management is a senior partner in a scientific enterprise in which knowledge is to be enshrined as the ultimate master with management deriving its authority from superior competence. Taylor simply believes the worker to be less competent. Taylor sees the organization under Scientific Management as constituting a mutually beneficial exchange with significant rewards accruing to both management and the workers. The benefits to management are an increase in output with lower labour costs. Similarly, the worker would receive higher compensation under Scientific Management. Taylor contends that under Scientific Management, workers would be given more interesting work that would more fully develop their talents. Moreover, it would produce not only a better worker but also a person who would be able to live better, save money, and become more sober.

Background Frederick Winslow Taylor (1856-1915) was an American designer and specialist that connected his engineering and logical learning to administration and built up a hypothesis called scientific/logical

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administration hypothesis. His two most critical books on his hypothesis are Shop Management (1903) and The Principles of Scientific Management (1911). Frederick Taylor's logical administration hypothesis can be seen in almost all cutting edge manufacturing firms and numerous different kinds of organizations. His engraving can be found underway arranging, creation control, process plan, quality control, cost bookkeeping, and even economics. On the off chance that you comprehend the standards of logical administration, you will have the capacity to see how makers deliver their products and deal with their representatives. You will likewise comprehend the significance of quantitative investigation, or the examination of information and numbers to enhance production viability and proficiency. Frederick Taylor was born in Philadelphia (USA) on 22 March 1856 into a family with deep roots in American culture and a strong religious heritage. Although Taylor was rather austere in his personal life, sports were his extracurricular activity. His interest in mechanical inventions was manifested in his sports activity. At the age of 16, he entered Phillips Exeter Academy to prepare for the study of law (he suffered from a vision problem owing to studying too much by kerosene lamp) and passed the entrance examination to Harvard University, but chose to become an apprentice machinist. 1874. At the age of 18, Taylor started his career as an apprentice machinist at the Enterprise Hydraulic Works (a small firm in Philadelphia). 1878. He joined the Midvale Steel Works as an ordinary labourer in 1878 and rose rapidly to become chief engineer in 1884. Taylor’s supervisory style was authoritarian in nature but launched an attack on ‘systematic soldiering’ which led him to institute two components of Scientific Management: time-and- motion studies and a piecework incentive plan. 1883. Taylor received a degree in mechanical engineering through evening study from Stevens in 1883. In 1886, he joined the American Society for Mechanical Engineers and presented in 1895 his first paper titled “A Piece Rate System”.

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1890. Taylor joined a manufacturing investment company in 1890 and left it in 1893 to become a consulting engineer, introducing various elements of Scientific Management in a number of firms. 1898. At Bethlehem Steel Company which he entered in 1898, Taylor applied the basic ideas of Scientific Management. 1901. After Taylor left Bethlehem in 1901 until his death on 28 March 1915, he spent his life basically as a publicist, educator, and social reformer in advancing the cause of Scientific Management. Taylor did not drink alcohol, coffee or tea, and believed in hard work, and in doing things that are monotonous and unpleasant towards character building. Taylor ranked character, common sense, and education, in that order, as the elements of a good man. Frederick Taylor died of pneumonia in 1915, just five years after the publication of The Principles of Scientific Management brought him world-wide recognition. Scientific management soon became a machine of universal efficiency. The Principles of Scientific Management were translated into Chinese, Dutch, French, German, Italian, Russian, and Japanese. (Kanigel p. 22)

Taylor’s Contributions Principles of Scientific Management Theory In wide terms, logical administration hypothesis is the utilization of mechanical designing standards to make a framework where squander is stayed away from, the procedure and technique for generation is enhanced, and products are genuinely conveyed. These enhancements serve the interests of managers, representatives, and society when all is said in done. Taylor's hypothesis can be separated into four general standards for administration: 1. Actively assembling, breaking down, and changing over data to laws, administers, or even numerical equations for finishing assignments. 2. Utilizing a logical approach in the choice and preparing of laborers. 3. Bringing together the science and the laborer with the goal that the specialists apply the experimentally created methods for the assignment.

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4. Applying the work similarly amongst specialists and directors where administration applies logical systems to arranging and the laborers play out the assignments as per the plans.

Frederick Taylor moved toward the investigation of administration quantitatively through the accumulation and examination of information. For instance, he and his devotees performed “Motion Studies” to enhance effectiveness. He broke down the tasks required to finish an assignment, concocted an approach to separate the undertaking into segment movements, and found the most productive and compelling way to take every necessary step. A case of a movement ponder is watching the quantity of particular movements required to scoop coal into a heater. The assignment is then separated into its particular segments, for example, grabbing the scoop, strolling to the coal, twisting around, controlling the scoop to scoop the coal, bowing go down, strolling to the heater, and controlling the scoop to store the coal. The most productive approach to play out the assignment was created and laborers were told on the best way to apply the strategy. 1. Shop Management (1903): A paper entitled “A piece rate system” read to the American Society of Mechanical Engineers. 2. The Principles of Scientific Management (1911): This was written in 1909 but published in 1911. 3. Testimony before the Special House Committee (1912): It consists largely of a justification of his views of shop management in light of public attack. 4. Scientific Management (1947): This is a volume containing the above three documents, with a Foreword by Harlow S. Person.

DEVELOPMENT OF TAYLOR’S SHOP SYSTEM Causes of Inefficiency and Antagonism The unifying theme of Taylor’s work is how to increase the ‘efficiency’ of workers who are naturally lazy. Taylor suggests three causes of inefficiency and antagonism:

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1. A belief of the worker that any increase in output would inevitably result in unemployment. 2. The defective systems of management which restrict worker’s output because of ‘systematic soldiering’. 3. Inefficient rule-of-thumb effort-wasting methods of work.

Taylor blames both the management and the worker for inefficiency. Management, Taylor charges, is deficient both in terms of its lack of knowledge as to what constitutes a proper day’s work and in its indifference about proper managerial practices. The worker contributes to the problem of inefficiency through ‘systematic soldiering’ or the purposeful and organized restriction of output. Taylor argues that under the best of traditional managerial practices—initiative and incentive management—too much responsibility is placed on the worker. Taylor contends that under initiative and incentive management, a worker is simply hired and sent out to perform specified tasks with little in the way of instruction or guidance from the management. The result is all too often inefficiency. Taylor characterizes initiative and incentive management as a “lazy manager’s philosophy”, in which management has shirked its primary responsibilities in regard to job design.

Methods for Development of Shop System Taylor conceived it to be the objective of Scientific Management to overcome these shortcomings. He performed the first pioneering experiment at Midvale Steel Company in the machine shop, and still more important experiments at Bethlehem Steel Works. After long research and a series of experiments, he developed high-speed cutting steel, improved the design of machine tools, and set forth specific methods for the most efficient use of the improved tools. In a more systematized form, these experiments led him to the development of a coordinated system of ‘shop management’. From this shop approach, he converted his views and concepts to a philosophy better known as Scientific Management. Following are the methods involved in the development of his shop system:

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(i) Use of scientific research methods. Taylor proposes that managers can use scientific research methods to find out the best way to finish every piece of work. According to him, stopwatch studies of various performances permitted the determination of a reliable standard of output. In this way, Taylor feels that one could scientifically discover ‘the one best method’ for finishing work in the shortest possible time. (ii) Standardization of tools and materials. Taylor maintains that average output per man increases if management also standardizes tools in light of the needs of specific jobs. He contends that such techniques as instruction cards, routing sequences, material specifications, material- handling standards, and inventory control systems can make standards of worker’s performance meaningful. (iii) Selection and training of workers. Taylor attaches great importance to choosing the right man for the right job. He insists that management must give each worker the formal training and specific instructions on precisely how to perform every piece of work with the standardized tools and materials. (iv) Need for good supervision and working conditions. Taylor sees the need for equally good supervision of a worker and his working conditions. From this need he expands his concept of “functional foremanship”, with specialists employed in every phase of supervision to ensure good work performance. (v) Payment in accordance with output. Taylor recognizes the need for a system of paying workers in accordance with their output instead of the mere number of hours worked. The essence of all these plans is the payment of bonuses and premiums to workers who meet or exceed the defined task. Further, Taylor writes that "each man in the gang becomes far less efficient than when his personal ambition is stimulated”, he should be paid in accordance with his individual output rather than the output of the group to which he belongs. Taylor maintains and attempts to demonstrate that through these combination of methods it would be possible to achieve dramatic increase

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in efficiency. However, management alone can be responsible for carrying these methods into effect. Taylor writes: “It is only through enforced standardization of methods, enforced adaptation of the best implements and working conditions and enforced cooperation that this faster work can be assured. And the duty of enforcing the adaptation of standards and of enforcing this cooperation rests with the management alone.” In other words, management is first to make itself efficient before expecting efficiency from the workers. Once the proper method has been discovered, workers are simply responsible for executing the plan.

CONCEPT AND PRINCIPLES OF MANAGEMENT Taylor’s Concept of Management Taylor views management as the process of getting things done by people operating independently or in groups. According to George, Taylor’s approach to the managerial problem is direct and simple: “define the problem, analyze the work situation in all its facets, apply measuring devices to all facets capable of being measured, experiment by holding all aspects of the job constant except one which would be varied, develop a guide or principle of management from the observations and study, and finally, prove the validity of the principle by subsequent application.” Taylor’s main thesis is that prosperity to the society can come only through the joint endeavor of the management and labour in the application of scientific methods. He calls for mental revolution on the part of both management and labour so that they might cooperate in the spirit of work harmony with a view to improving their respective lots—attaining high wages for labour and increased output at low costs for management. Taylor observes that management is neglecting its functions and pushing the burden of methods and output on labour. He declares that management must do the work of planning, organizing, controlling, determining methods, and the like for which it is best suited.

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Principles of Scientific Management Taylor observes: What the workmen want from their employers beyond anything else is high wages and what employers want from their workmen most of all is low labour cost of manufacture ....the existence or absence of these two elements forms the best index to either good or bad management. Taylor summarizes this approach in his famous statement of the principles of Scientific Management. These principles are: 1. Development of a science of management 2. Scientific choice, preparing and improvement of the laborers 3. Bringing science and the workers together 4. A uniform division of work and responsibility between management and workers.

Development of a science of management. In Taylor’s view, the incentive of higher wages for producing more output is vitiated by being dependent on the initiative of workers themselves as the employers have no idea how much work can really be accomplished in a given period of time. This inadequacy can be remedied by the development of a scientific analysis for each element of a man’s work which replaces the old rule-of-thumb method. Taylor holds that the worker would receive higher wages than the average worker would receive in the unscientific factories. If he is unable to attain standard output, the worker will suffer a loss of income.

Scientific choice, preparing and improvement of the laborers. To enable the workman earn a high rate of pay, it is imperative that he be scientifically selected to ensure that he possesses the requisite physical as well as mental qualities. Taylor holds that it is the responsibility of management to train and develop workers and place them in work situations so that they do “the highest, most interesting and most profitable class of work.”

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Bringing science and the workers together. Close cooperation should exist between those who plan the work (management) and those who do the work (workers), so that they cooperate in the spirit of work harmony for improving the lots of both labour and the management. Taylor holds that this process of securing cooperation causes the mental revolution.

A uniform division of work and responsibility between management and workers. And finally management and workers should share equal responsibility— with each sector performing the work for which it is best suited. With this intimate cooperation, the opportunities for discord and conflict are almost eliminated since the exercise of this authority is not arbitrary. Thus, under Scientific Management, science would replace the rule- of- thumb, harmony would replace discord, cooperation would replace individualism, maximum output would replace restricted output, and each man would be developed to his greatest efficiency and prosperity." In his quest for a science of management, Taylor discovered or implemented a series of innovations pertaining to the machinery of production, the organizational environment, and the people who used the machines. Some of these developments include the invention of mechanical devices, the development of cost accounting techniques, machine-room layout and design, purchase and store methods, tool standardization and tool-room reorganization, and mnemonic classification systems.

COMPONENTS OF SCIENTIFIC MANAGEMENT Taylor’s Scientific Management comprises mainly three components: 1. Time-and-motion studies 2. Wage-incentive system 3. Functional organization.

Time-and-Motion Studies Taylor attributes nine-tenths of the problem of inefficiency to the management’s ignorance as to the proper time required to perform a task.

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Accordingly, a primary task for Scientific Management is to establish appropriate standards based on scientific investigations of tasks performed using optimal methods rather than simple observations of actual performance in the workplace. The primary tool of analysis in these investigations is time- and-motion studies. The general procedures employed in time-and-motion studies is to break down physical activities into their component parts, specify the optimal routine for the performance of each component part, and discover the most efficient method for recombining the parts with the more complex task. For Taylor, the following steps are involved in the time-and-motion studies: 1. The worker is provided with the best implements. 2. The task is divided into elementary units. 3. Useless movements are discarded. 4. The analyst studies a skilled workman performing the task with the help of a stopwatch. 5. The elementary movements of the task are grouped in a proper sequence to maximize overall efficient task performance. 6. The proper method of task performance is recorded and the time required to perform the task is determined. 7. An allowance to the extent of 20 to 27 per cent should be added to the actual working time to allow for unavoidable delays. 8. Allowances should be made for the time it takes a new employee to learn the job. 9. Allowance should be made for rest required for a worker to recover from body fatigue.13

The intent of time-and-motion study is to establish standards for the performance of a task, accounting for the capacity, speed, and durability of the worker. Thus standards established are to be accepted only conditionally. Those standards are not to be altered, however, unless a new method of performing the task is discovered. This is required to prevent arbitrary changes in standards as productivity increases.

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In his famous studies at the Bethlehem Steel Corporation, Taylor found that a group of 75 men were loading an average of 12'/2 tons of pig iron per man per day. On the other hand, a Dutch labourer called Schmidt, selected by Taylor, increased his output to 47 V2 tons per day for the three years of the study by following detailed instructions as to handling of pig iron. One by one other men were chosen and prepared to deal with pig iron at the rate of 47 V2 tons for every day and, consequently, similar to Schmidt, they got a 60 for every penny increment in compensation. Taylor focused his attention for the requirement of the scientific determination of the specialists.

Wage-incentive System As stated earlier, Taylor’s incentive system is based on the established standards of work performance through time-and-motion studies. Under this the worker is assigned a defined task with detailed instructions and a specified time allowed to perform the task. When this has been accomplished, the worker is to be paid extraordinary wages for performing the task in the allotted time and ordinary wages if the time allotment is exceeded. Taylor was against the method of award for day work, piecework, and task work with a bonus or differential piecework. He also objected to gain- sharing plans, such as those suggested by Towne and Halsey. In Taylor’s views, factors such as special incentives, higher wages, shorter working hours, setter working conditions, and individual reward for the worker based on performance—all overshadow the importance of the specific method of payment. Taylor would have incentives based on prior standards of work performance with each worker rewarded on an individual basis and performance linked reward. Thus, under Taylor’s incentive system, like other ray plans, success is rewarded by higher wages and failure is penalized by financial loss.

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Taylor says, do not themselves constitute scientific management but are useful adjuncts to scientific management. Although these three components—time-and-motion studies, wage- incentive system, and functional organization—are central to Taylor’s Scientific Management, yet these do not, in his opinion, capture the essence of Scientific Management. For Taylor, Scientific Management is more than a “series of expedients to increase efficiency”. Instead, Scientific Management requires a mental revolution on the part of both management and workers.

Weaknesses of Taylor’s Approach Just like any other theories or theories, Taylor’s approach of scientific management has a number of criticisms both from workers, employers and even psychologist to some certain extent. Scientific Management advocated a number of merits yet regardless of that it has been condemned by various segments of the society. The following are some of the criticisms. 1. Abuse of Workers Taylor's Scientific Management put pointless weights on the representatives to play out the work quicker. Significance was given to efficiency and benefit. This brought about abuse of the representatives. Subsequently, numerous workers joined exchange associations. This additionally brought about doubt amongst administration and workers. 2. Issue of Unity of Command Taylor utilized useful foremanship. Along these lines, the laborers need to answer to eight managers. This breaks the rule of solidarity of summon, where the specialists need to answer to just a single supervisor. Absence of solidarity of order can make perplexity and disarray in the association. 3. Mechanical Approach Taylor's approach was a mechanical approach. He gave excessively significance to proficiency. He didn't think about the human component. Taylor thought about laborers as robots, which could accelerate the work at any cost

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4. Issue of Separation of Planning from Doing Taylor said to isolate arranging from doing. In all actuality, we can't separate arranging from doing. The organizers ought to likewise be occupied with doing, at that point just they will have the capacity to make sensible arrangements for the association. 5. Individualistic Approach Taylor's logical administration gives excessively significance to singular execution and not to general execution. Be that as it may, the accomplishment of an association depends on singular execution of laborers, as well as on amasses execution of specialists. 6. Wrong Assumptions Taylor accepted that laborers are persuaded just by monetary profits. Be that as it may, in all actuality, specialists are roused not money related impetuses but rather additionally by social needs and individual self- images. 7. Limit Application Taylor's logical administration has limit application. It can be connected just when the execution of the laborers can be estimated quantitatively. It can be connected just for manufacturing plants where the execution can be estimated quantitatively. It can't be utilized as a part of the administration division in light of the fact that in this area the execution of a man can't be estimated quantitatively. 8. Diminishes the Worker to a Machine Scientific Management diminishes laborer to the status of a machine by isolating the capacity of reasoning from him. The reasoning or the arranging perspective is assumed control by the administration. A specialist needs to convey his work entirely as per the arrangement. The techniques for work are institutionalized and the specialist needs to rehash a similar execution time and. This prompts repetitiveness and murders his drive and aptitude. His position is much the same as a gear-tooth in the wheel. Steady examinations and research have demonstrated that expansion in profitability can be accomplished in the short run and over

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the long haul specialist's advantage is antagonistically influenced which brings about lower efficiency. 9. Causes Unemployment: The appropriation of work sparing gadgets or utilization of machines prompts joblessness. In any case, this contention does not hold great over the long haul. This is on the grounds that expanded effectiveness of workers will prompt lesser cost of generation and higher profitability. The maker will be in a situation to offer merchandise at bring down costs which increment the interest for the items and keeping in mind the end goal to take care of extended demand greater business openings must be made 10. Accelerating' of Workers: Logical administration is in charge of accelerating of laborers expecting most extreme yield from them in this manner making a great deal of mental and physical strain on them. In any case, it might be called attention to that logical administration goes for giving sensible working hours rest-delays and other legitimate states of work. It additionally gives institutionalized materials, apparatuses and hardware's and so forth., and embraces time, movement and weakness examines which are to the greatest advantage of the specialist. 11. No room for Initiative: The activity of laborers is unfavorably influenced because of partition of 'considering' from 'doing'. The work strategies and tasks are institutionalized. The specialist needs to act as per the guidelines of the foreman. He can't step up and propose better strategy for work. 12. Weaker Trade Unions: Critical issues like control of working hours, obsession of wages and so on., are chosen by the administration itself, the specialists are not counseled by any stretch of the imagination. This debilitates the procedure of aggregate bartering and arrangement of exchange associations. Logical administration strikes at the very base of the exchange unionism. This is on the grounds that they work under the immediate control of the administration. By virtue of motivating force wage installment plans, laborers bolster fulfilled. It might be additionally specified that in the

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propelled nations like U.S.A., which is viewed as the home of Scientific Management, exchange unionism is getting huge notoriety and are working with progress. 13. Undemocratic In Nature: Taylor's approach is undemocratic in nature. The state of mind of the useful supervisors is imperious. The specialists work entirely under their control and direction. The specialists need to comply with the request of the supervisors without giving any recommendation. 14. Costly: The establishment of logical administration includes immense finances by virtue of presentation of institutionalization of materials, types of gear, devices and apparatus and so forth. It likewise embraces time, movement and weakness contemplates which are costly strategies. Consistent research and experimentation additionally needs parcel of assets. The opening of a different arranging office is likewise oppressive. Such a gigantic capital venture may not be valuable in the short run; it might be gainful over the long haul as it were. 15. Not Suitable For Small Concerns: By virtue of scarcity of monetary assets, little concerns can't bear to present the arrangement of scientific management. Be that as it may, even this dispute is untenable. There is an extension for development in each association either big or small. 16. Over-Production: The procedures of logical administration took after by all organizations in a single industry may prompt over generation or overabundance in the market. Subsidence will undoubtedly happen which isn't in light of a legitimate concern for the specialty units. 17. Difficulties in Getting Trained Personnel: The associations which are experimentally overseen require mastery and qualified staff. Here and there it turns out to be exceptionally hard to get the qualified ones 18. Resistance from the trade unions.

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Taylor’s approach to management was resented by the US trade unions who regarded it as a new means of intensifying the exploitation of the working class and even, as one of the resolutions of the American Federation of Labour called it, “a diabolical scheme for the reduction of the human being to the condition of a mere machine.” The workers were being asked to behave like machines and more mechanically in accordance with pre-ordained patterns. 20. Resentment from the managers. Taylor’s methods were not only resented by gang bosses but also by higher ranks of the management. They heaped scorn on the rule-of-thumb method. Those who scaled to high managerial positions, without the benefit of higher education and training, became sensitive to Taylor’s charge that they were unqualified to manage. It is interesting to note that Taylor was compelled to leave his first position at the Midvale Steel Works because of friction with the company manager, and later the anti- Taylor sentiment among operating chiefs did not favour him to keep his job at Bethlehem Steel Works (the company terminated his services from 1 May 1901). 21. Problems of coordination. Taylor’s idea of functional foremanship represented a practical application of the idea of specialization and the belief that each person’s work should, as far as possible, be confined to a single leading function. However, such an arrangement gives rise to problems of coordination, role conflict, and unity of command. The idea of functional foremanship appears not to have become very popular and to have had little application in practice. 22. Taylorism as management control. According to Braverman, Scientific Management starts from the capitalist point of view and the adaptation of labour to the needs of capital. He felt that Taylor’s conclusion was that workers should be controlled not only by the giving of orders and maintenance of discipline, but also by removing from them any decisions about the manner in which their work was to be carried out. By division of labour, and by dictating precise stages and methods for every aspect of work performance, management could gain control of the actual process of work.

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24. The Hoxie report. Taylorism also became the subject of special investigation by Prof. Robert Hoxie for the US Commission on Industrial Relations. The Hoxie report arrived at the conclusion that the approach of Taylor and his associates concentrated on the mechanical and not on the human aspects of production. It also charged that the time study and task-setting were “special sport of individual judgment and opinion, subject to all the possibilities of diversity, inaccuracy and injustice that arise from human prejudice.” Further, Taylor’s approach to selection of workers, determination of normal times, and the fixing of allowances to be added for delays was regarded as largely arbitrary rather than based on scientific decisions. 25. Other general criticisms. The classic Hawthorne investigations by Elton Mayo and other research studies on human relations also reject the Taylor system. According to Mayo, logical factors are far less important than emotional factors in determining productive efficiency. Peter Drucker holds that the organization as conceived by Taylor becomes a piece of poor engineering judged by the standards of human relations, as well as by those of productive efficiency and output. Behaviouralists such as Mayo, Follett, Sheldon, Barnard also reject Taylor’s methods of Scientific Management as these are opposed to initiative and individual freedom of the worker. Taylor is described as ‘catalytic’ in the development of the traditional management school. Many of the practices and principles, of course, had been suggested previously. But Taylor’s genius lay in his “assimilation, conceptualization and application of these ideas as a unified approach to effective management”. In fairness to Taylor, it must be said that his principles were often inadequately understood. However, Modern psychologists have equally condemned the idea of logical administration as it goes for accomplishing productivity no matter what and regarding laborers as slaves of administration. The standards of logical administration are indifferent in nature and need mental approach

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in their application. The accompanying are the principle purposes of feedback progressed by analysts: (a) Mechanical in Nature: The principle feedback progressed against logical administration by the analysts is that it is mechanical in approach. The laborer needs to work entirely as per the guidelines issued to him by his foreman. He has for all intents and purposes nothing to do with deciding the approaches as to work. His status resembles a machine. There is no activity and innovativeness with respect to a specialist. The modern analysts have been worrying for the human approach towards the laborers. This would be extremely useful in starting and inspiring the laborers for better execution. (b) Speeding Up of Workers: Logical administration is in charge of accelerating or 'heightening' of specialists bringing about a great deal of strain and tiredness on the laborer's brain and body prompting mishaps and stoppage in work and so on. The analysts are of the view that the work ought to be made simple and fascinating for the laborers. (c) Creation of Monotony: Over-specialization and reiteration of occupations under logical administration makes them tedious. The laborers fill in as pinions in the machines which smashes their enthusiasm for work. This further decreases their proficiency. The modern therapists have proposed work augmentation as a conceivable answer for lessen the repetitiveness of nonstop work e.g, if there should be an occurrence of breakdown of machines, the laborer should himself convey minor repairs to set it right. This will give him more learning about his activity and make his work all the more fascinating. (d) Absence of Non-Wage Incentives: Another downside of logical administration is the nonattendance of non- fiscal motivations. Different non money related motivations incorporate employer stability, commend, specialists investment in administration, social acknowledgments and inclination for self-articulation and so on. In

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the conclusion of therapists these impetuses assume an imperative part in moving specialists for better execution. (e) Creating 'One Best Way' of Work: Logical administration is fundamentally stressed over making 'one most perfect way' of making each vital stride. That way is relied upon to be trailed by each laborer working in the association yet analysts are of the view that each specialist has his own particular style of taking the necessary steps. On the off chance that one specific way is forced on the laborer, he won't have the capacity to perform legitimately and his productivity will undoubtedly be influenced unfavorably. From the above obviously both psychologist and scientific management are distinctive in application. Be that as it may, they are associated in approach. Scientific management combined with psychologists can realize positive outcomes and make specialists glad and fulfilled. There is no denying the way that if human side of administration is given careful consideration, work as opposed to being the most exceedingly bad adversary, will turn into the closest companion of logical administration.

Conclusion Taylor is regarded as the founder of modem management thought. The ramifications of his ideas and their impact on the society are truly of staggering dimensions. The principles of scientific management and innovations he propounded in the last quarter of the 19th century form the bases of present management practices. Some regard him as the father of all present-day management. George comments: “Whatever role we may ascribe to him, he was without dispute a perfectionist and a master in his work, possessed with piercing insight the comprehension of the role of management”. For labour, the Scientific Management resulted in better placement, more opportunities for development, higher wages, better working conditions, etc. For management, it has pointed the way to a more effective organization, an improved product, a better workforce, a better profit position, and an improved image. Taylor’s five concepts—research,

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standards, planning, control and cooperation—form the solid basis of every successful organization. The Scientific Management movement spread far beyond the borders of the United States, and gained wide recognition in Germany, England, France, Sweden and other European countries. In Russia, immediately after the revolution of 1917, Lenin referred to the Taylor system, as “a combination of subtle brutality of bourgeois exploitation and a number of its greatest scientific achievements”. He and Trotsky sponsored a state-led Scientific Management movement aimed at promoting labour discipline and higher productivity. In essence, the views and concepts generated by Scientific Management, though new and radical at that time, are commonplace today and are accepted as standards for managerial practice. And this acceptance in itself is indicative of the total effect of Scientific Management. The principles of Taylor’s scientific approach to management appear to be very relevant today. Many of Taylor’s ideas are accepted by present-day managers. We can still see examples of Taylorism alive and well, and management practices based on the philosophy of his ideas. Taylor gave a major impetus to the development of modern management thinking. Scientific Management opened the way for improvement in successful ventures. It brought about a more effective use of labour, material and managerial capabilities. Taylor’s system of management, based on scientific principles, promoted a new culture and values in sharp contrasts to those existing at the time. Scientific Management, for example, placed emphasis on eliminating wastes in effort, materials, time and skills

Recommendations Taylor’s scientific management approach would have achieved more if the following recommendations were strictly taken into account. 1. If environmental influences of organizations were strictly considered 2. If it has taken into account of the desire for employee job satisfaction and also social needs of an employee in a typical work situation

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3. Taylor should have placed more emphasis on inputs from the environment not necessarily dwelling on only outputs. His assertion that there was no best way of doing things was wrong and hasn’t been researched well. 4. He failed to take into account the nature of man in his approach. By regarding human as machine made his theory conceptualization vague and without basis. He should have known that human beings by nature are dynamic in a work environment and may not perform like machines that are not living things. 5. Scientific management should have also emphasized on getting the job performed rather than hinging on the means of doing so.

References Carlson, R.V. (1996) Reframing and reform: Perspectives on organization, leadership, and school change. White Plains, NY: Longman Publishers USA. Claude S. George Jr. (1974), The History of Management Thought (New Delhi: Prentice –Hall of India) J. Woodward (1980). Industrial Organization: Theory and Practice, 2nd ed. (London: Oxford University Press). Kanigel, Robert (1997) Taylor-Made The Sciences Volume 37 Issue 3, May/June 1997 Kanigel, Robert. The One Best Way, Viking: New York, 1997. Pfeffer, J. (1996). “Understanding the role of power in decision making.” In J.M. Shafritz & J.S. Ott (Eds.), Classics of organization theory (pp.359-374). Belmont, CA: Wadsworth Publishing Company. R.K. Sapru (2009), Administrative Theories and Management Thought. 2nd ed. PHI Learning Private Limited, M-97, Connaught Circus, New Delhi. Pg: 91-110 Tsutsui, William M. (2001) The Way of Efficiency: Ueno Yoichi and Scientific Management in Twentieth Century Japan, Modern Asian Studies, Volume 35 Number 2

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Wrege, Charles D. (1991), Frederick W. Taylor: The Father of Scientific Management, Irwin, 1991. Wren, Daniel A. (1980) Scientific Management in the U.S.S.R., with Particular Reference to the Contribution of Walter N. Polakov, Academy of Management Review Volume 5 Number 1, January, 1980 https://study.com/academy/lesson/frederick-taylor-theories-principles- contributions-to- management.html. Assessed 24-02-2018 http://www.skymark.com/resources/leaders/taylor.asp. Assessed 24- 02-2018

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THE IMPACT OF MANDATORY AUDITOR-FIRM ROTATION ON AUDITOR INDEPENDENCE, AUDIT QUAITY AND AUDIT COST

*FARAYOLA AYO ADE *ALHAJI KAWUGANA **FARUNA SIMON FARUNA *Federal Polytechnic P.M.B 0231 Bauchi, Bauchi **First Bank of Nigeria Bauchi Branch

ABSTRACT The purpose of this study is to examine the Audit Firm Rotation and Audit Quality Evidence from Nigeria Deposit Money Banks. The main objective of the study is to examine the extent audit firm rotation significantly affects audit quality, and to determine the relationship between company size and audit quality and Investigate how audit fees affects audit quality. This study intended to assess the applicability of the mandatory auditor rotation concept in the Nigerian bank sector so as to enhance and improve audit quality, from the findings of both the literature as well as the field survey, it was discovered that audit firm rotation significantly affect audit quality. The research design used for this study is both quantitative and qualitative. The study area is Deposit Money Banks in Nigeria. The population of this research study comprises of all Out of the twenty banks insured by Nigeria Deposit Insurance Corporation as at 2011, fifteen banks were purposively selected for the study. It was concluded that rotation is a good solution to enhance and maintain the auditor independence by decreasing the audit firm’s dependence on the client. Recommendations were made amongst others that the auditor should be remunerated on the basis of work experience, qualification, duration of the audit assignment, and background profile and regulatory bodies e.g. CBN, FIRS should help make laws that will reduce audit firm rotation and help improve audit quality, the Central Bank of Nigeria should think of other ways to address concern about audit quality.

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Keywords: Audit Firm Rotation, Audit Quality, Auditor Independence, Central Bank of Nigeria, FIRS

Introduction Prior research conducted by St. Pierre and Anderson (1984). Stice (1991), Johnson, Khurana and Reynolds 2002; GAO, (2003) and Carcello and Nagy (2004) unanimously agreed that audit tenure is short when the same auditor tenure has audited the financial statements of a company for two or three years. Following this, Johnson, Khurana& Reynolds (2002) and Carcello and Nagy (2004) defined long tenure as being when the same auditor has audited the financial statements of a company for nine years or more. On the basis of the definition of short and long tenure, they defined audit tenure as medium when the same auditor has audited the financial statements from four to eight years. Myers, Myers and Omer (2003) defined auditor tenure as the number of years an auditor is retained by the firm. A common assumption is that rotation of audit firms increases audit quality Audit quality is defined as the auditor`s ability to discover a breach in the client`s accounting system combined with the auditor`s willingness to report such a breach (DeAngelo 1981; Watts&Zimmerman, 1981). Whereas the ability to discover a breach relates to the technical competence and expertise of the auditors as well as to the audit procedures and the extent of sampling, the willingness to report as determined by the auditor`s independence, objectivity and professional skepticism The regulatory argument going back to Mautz and Sharaf (1961) is that the longer the tenure of an audit firm with a particular client, the closer the identification of the firm with the client management`s interest and the greater the impairment of auditor independence and its quality. Regulators typically fear a decrease in audit quality with an increase in audit firm tenure. This decrease in quality is supposedly caused by excessive familiarity with the client`s management, and eagerness to

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please the client and a lack of attention to details due to staleness and redundancy (Arel, Brody and Pany 2005). Mandatory rotation might help to avoid a “familiarity threat‟. Such a familiarity threat could result in financial report assertions not being tested, since results are anticipated instead of being alert to anomalies. This could result in less rigorous audit procedures or an excessive reliance on static audit programs Johnson et al. (2002). Auditors themselves generally oppose mandatory audit firm rotation for instance; PWC (2007) argued that mandatory audit firm rotation prevents an effective working relationship with management, audit committees and boards of directors. Audit clients have different opinions about mandatory audit firm rotation. A survey in Egypt in 2010 found that the majority of listed companies think a sufficient number of audit firms are able to conduct audits of listed companies (Mohamed, 2010).In addition, management of some companies fear that employees might be very reserved towards new auditors hampering the audit in general and fraud detection in particular (Stringer, 2011). Beattie and Fearnlay (1995) argued that key stakeholders should consider the following five most important factors in audit quality: i) Integrity of the audit firm; ii) Technical competence of the audit firm; iii) Quality of the working relationship with the audit partner; iv) Reputation of the firm V) Technical competence of the audit partner.

Statement of Problem The presence of audit failures in the world has brought a great deal of disappointment to stakeholders and investors, and longevity of audit firm tenure has also been linked with fraudulent financial reporting which reduces the audit firm rotation improves audit quality as auditors may need to be experts in their area and acquire client-specific knowledge

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overtime (Ghosh & Moon, 2005; Defond & Francis, 2005; Jenkins & Velury, 2008). This means that audit quality is lower during the early years of the auditor-client relationship and increases with length of audit firm rotation due to the reduction in information communication between auditor and client (Azizkhani, Monroe& Shailer, 2006). Therefore, this study extends and contributes to the body of research using data from Nigerian banks(DMBs) to investigate the likely impact of audit firm rotation on audit quality.

Research Questions The research questions are: 1.To what extent does audit firm rotation significantly affect audit quality? 2. What is the relationship between company size and audit quality? 3. How do audit fees affect audit quality? 4. What is the relationship between board independence and audit quality?

Objectives of the Study The broad objective of this study is to examine the impact of audit firm rotation on audit quality. The specific objectives of the study are to: 1. Examine the extent audit firm rotation significantly affects audit quality; 2. Determine the relationship between company size and audit quality; 3. Investigate how audit fees affect audit quality; 4. Evaluate the relationship between board independence and audit quality.

Research Hypotheses The hypotheses stated below are raised in order to actualize the objectives of this study.

Hypothesis One HO: Audit firm rotation contributes negatively to the quality of audit assignment.

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HI: Audit firm rotation contributes positively to the quality of audit assignment.

Hypothesis Two HO: There is no significant relationship between the firm’s size and audit quality. HI: There is significant relationship between the firm’s size and audit quality.

Hypothesis Three HO: There is no significant relationship between board independence and audit quality. HI: There is significant relationship between board independence and audit quality.

Hypothesis Four HO: There is no significant relationship between affecting audit quality. HI: There is significant relationship between affecting audit quality.

Scope of the Study This study is focused on audit firm rotation and audit quality of Deposit Money banks in Nigeria. Data were collected from financial statements of 15 banks within the period 2005-2011. All the banks used are quoted on the floor of the Nigerian Stock Exchange.

CONCEPTUAL LITERATURE Audit Quality According to DeAngelo (1981), she defines audit quality as “the assessed joint probability that a given auditor will both (a) uncover a fraud in the client’s accounting system and (b) report the fraud.” When stated differently, the quality of an audit is a function of (1) The ability of the Auditor to discover material omissions or misstatement in the client’s financial statements,

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(2) The uncertainty that the auditor will disclose material errors. The diversity in the level of the discovery aspect represents the diversity in the level of competency of the auditor, while the diversity in the incentives to report represents the level of the auditor’s independence. An improvement in either competence or independence would lead to an improvement in audit quality, while the reverse will lead to low audit quality. Audit quality is the uncertainty that an auditor will discover any material errors, is representation and omissions detected in a client’s accounting system and truthfully report same (De Angelo 1981). According to Hay and Knechel (2010), they said auditing could be placed as a type of credence good and consequently, auditors add credibility to corporate financial reports by saying an opinion about the true and fair representation but only in that the users of financial statements will perceive that the opinion is valuable. Audit quality is the soul of audit profession. It is related to the vital interest of the public. Audit quality has been considered a multifaceted concept by the International Auditing and Assurance Standard Board (IAASB). Users, auditors, regulators, investors (shareholders), and other stakeholders in the financial reporting process may have divergent views as to what constitute audit quality which will influence the type of indicators one might use to assess audit quality. The auditor conducting the audit may define high audit quality as satisfactorily completing all tasks that is required by the firm’s audit procedures. The auditor may decide to evaluate high audit quality as one for which the work can be defended against any challenges in an inspection by a court of law. Regulators on their own stand point may view audit quality as one that is in compliance with professional standard. The public may consider high audit quality to be one that avoids economic problems for a company or the market (Enofe, Mgbame,Adeyemi, Obehioye & Ehi-Ohio,2013)

Mandatory Auditor Rotation Olowookere and Adebiyi (2013)Mandatory auditor rotation prevents the audit firm from developing a close relationship with the client and also provides an incentives for the audit firm to carry out its work to a high

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standard because they are aware that the quality of their work will be observable to some extent when a new firm of auditors take over the audit. Dopuch,King, and Schwartz (2001) said that mandatory auditor rotation leads to less biasing Audit reports. Lu and Sivaramakrishnan (2009) said that mandatory auditor rotation reduces overstatements and increases understatements insinuating increased reporting conservatism. Catanach and Walker (1999) they mentioned that the said rotation would increase the quality of services provided by the auditor because the audit firm would attempt to differentiate themselves from other firms through the quality of their work. When the same client (management) is audited too frequently by a particular auditor, the auditor tends to be too familiar with the client. This over familiarity between the auditor and client is likely to restrict the value added service of the auditor. For example, the audit programme may become stale as the auditor begins to anticipate the condition of the client’s system. As such, the quality of the audit work becomes compromised. The beauty of mandatory auditor rotation is that it will limit the formulation of audit–client relationships that can most times lead to compromising independence.

Audit Fee Literature Previous literature has indicated that higher risk clients will choose higher quality auditors (Datar et al. 1991) and it is reasonable that audit firms will charge higher fees to higher risk clients(Feltham et al. 1991). Several empirical studies support the relation between higher (lower) client riskiness, more (less) auditor effort and higher (lower) audit fees(O'Keefe et al. 1994;Pratt and Stice 1994;Simunic and Stein 1996;Johnstone and Bedard 2003). As higher risk clients are also more likely to have higher earnings management (abnormal working capital accruals), the above literature supports Including an audit fees control variable when modeling earnings management.

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Both the audit firm and the company invest significant effort and time (cost) following a change in audit firms. This impact will be even larger for consolidated entities that require statutory audits in many countries. In a mandatory audit firm rotation environment, these startup costs are more likely to be spread over fewer years, increasing the overall cost of the audit function for both the audit firm and the

Audit client. Extensive research has documented a relation between audit firm change and audit fees (Ettredge and Greenberg 1990; Pearson and Trompeter 1994; Deis and Giroux 1996; Simon and Francis 1988; Cameran et al. 2015; Zain 2013), and a recent paper indicates that the relation between these two variables continues in the post-SOX period (Huang etal. 2009). Due to the relation between audit fees and audit firm change, the above literature supports including audit fees as a control variable when modeling auditor change and reporting quality to avoid a correlated omitted variable problem.

Theoretical Framework The leading credibility theory states that the audited financial statements are used by management to enhance the stakeholders‟ faith in management’s stewardship (Hayes et al 2005). This theory regards the primary function of auditing to be the addition of credibility to the financial statements. Audited financial statements are used by management (agents) in order to increase the principal’s faith in the functioning of the agent and to reduce the information asymmetry. Audited financial statements are seen to have elements that increase the financial statement users‟ confidence in the figures presented by the management. The users‟ are perceived to gain benefits from the increased credibility, these benefits are typically considered to be that the quality of investment decisions improve when they are based on reliable information.

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The theory upon which this study rests is Lending Credibility theory. The theory is suitable for the study given that it can explain a manager’s incentive to change to a higher quality audit firm. The company’s owners‟ are always seeking the services of “better quality” auditors, so that the monitoring of management’s stewardship will be more effective. (Mariand Baldacchino, 2004). It provides the main theoretical underpinning of the study and determines to a great extent the approach to be used in the study. It influences the formulation of the study hypotheses, informs the research methodology and statistical techniques used in the study.

Previous empirical studies on mandatory audit firm rotation Arrunada and Arezissued a paper in 1997,in which they concluded that a mandatory audit firm rotation would eventually result in an increase of both the audit costs, meaning those incurred by the audit firms, and the costs which are directly attributable to the companies being audited. The paper explains that this is because of the competition being developed between audit firms and the increase of production costs. Moreover, it is argued that a mandatory audit firm rotation causes problems to the audit quality both in terms of technical competence and auditor’s independence. Another study that comes along with the opinion that audit tenure does not have positive relationship with audit quality is that of Knechel and Vanstraelen in 2007. By using a sample of stressed companies in Belgium, they found that the independence of auditors does not decrease over time and that the audit quality seems to be unaffected. To continue with the papers which have reached a negative result about the usefulness of the rule, Myers et.al(2003)by investigating a sample of 42.302 firms reached to the conclusion that the longer the audit tenure the higher the earnings quality. They also concluded that when the audit tenure is longer, auditors impose greater constrains to managers who want to take aggressive decision on how they report on the financial performance of the company. Another

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study by Johnson et al. (2002) indicated that the shorter the tenure of an audit firm the lowest the audit quality it is provided and also that there is no indication of lower audit quality for those audit firms that conduct audits for many years in a company. Furthermore, in a study conducted in a country where mandatory audit firm rotation exists, South Korea,Kwon et al.2010 found that both the audit hours and the audit fees increase because of mandatory audit firm rotation, but that audit quality was not affected significantly. To continue with countries where the rule is established,Shafie et al.conducted a research in 2009 in Malaysia, finding a positive relationship between audit firm tenure and reporting quality when the going concern model of logistic regression as a proxy for audit quality is used. Another study conducted in Italy, where the audit rotation is mandatory, a different aspect of audit rotation was detected. More specifically,Cameran et al.searched in 2012 in a field where mandatory audit firm rotation exists,that of Italy,and found that if the mandatory audit rotation was held for three years with the option to be renewed for another six years, the level of reporting conservatism will be higher for the auditors in the last year of their initial tenure. They have also indicated that the audit quality that firm provide improves in the last periods of audits but they admit that further research on that subject needs to be conducted. To continue with,Harris and Whisenant(2012) in their study investigated the effects of mandatory audit rotation by splitting the period investigated in pre-adoption and after adoption. Their results indicated that in the period after the adoption of the rule, there was detected less earnings management and more accurate recognition of losses as concerned by the time being reported. However, their study showed less audit quality in both periods when the proxy for audit quality is the level of earnings management. Some researchers like Jackson et al.(2008) have tried to introduce new concepts of mandatory audit firm rotation. More specifically they tested

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the implications of the rule on audit quality and the costs to the audit market in the Australian environment taking into consideration client’s financial characteristics. They concluded that when the propensity of a going concern opinion is used as aproxy, the quality of audits improves, whereas when discretionary accruals are used, it remains unaffected. At last, Fitzgerald et al.(2012) examined the effects of the rule in not-for-profit organizations in the U.S.A finding that audit quality is improved when audit firm tenure exists.

Empirical literature Ebimobowei and Oyadonghan (2011), auditors may be engaged in a long term audit–client relationship and there may be different incentives for this. Such long term professional affiliation may signal skepticism with regards to the perception of the auditor’s objectivity, independence and audit quality. The findings of the study show that there is a statistical significant relationship between mandatory rotation of auditors and the quality of audit reports. The study concludes that a policy favoring mandatory rotation of auditors could have positive effects on the quality of audit reports as it would allow for fresh approach and restore public confidence in the audit function. According to Johnson, Khurana and Reynolds(2002), as the auditor-client relationship lengthens, there is the tendency that auditors may develop a“learned confidence” in the client which may result in the auditor not performing religiously, the required testing of financial reports. This learned confidence results in the auditor making assumptions about outcomes and using less rigorous audit procedures or static audit programs. Potentially, a loop hole for a decline in audit quality has been created. Adeniyi and Mieseigha (2013) examine the relationship between the tenure of auditor and audit quality in Nigeria. Findings reveal that there is a negative relationship between auditor tenure and audit quality though the variable was not significant. Carcello and Nagy, (2004) also considered the relationship between audit quality

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and mandatory rotation of auditor’s tenure which is investigated from the point of view of fraudulent financial reporting. A logistic regression model was used and the results reveal a significant positive relationship between short auditor tenure and audit quality. Mgbame, Eragbhe and Osazuwa (2012) provide an evidence on the existence or otherwise of a relationship between the tenure of auditor and audit quality in Nigeria. Findings reveal that there is a negative relationship between auditor tenure and audit quality though the variable was not significant. The other explanatory variables (ROA, Board Independence, and Director Ownership and Board size) considered alongside auditor tenure were found to be inversely related to audit quality aside from Returnson Assets which exhibited a positive effect. Onwuchekwa, Erah and Izedonmi (2012),examines the relationship between mandatory audit rotation and audit quality. The data usedwere collected through the distribution of questionnaires to investors, lecturers, consultants, accountants and auditors in southern Nigeria. The data was analyzed using percentage analysis while the specified model was estimated using binary logistic regression technique through computer software Eview 7. One hypothesis was stated and tested. The binary logistic ordered regression shows that there exists a negative relationship between Mandatory Audit Rotation (MAR) and audit quality (AUDQ). Myers, Myers and Omer (2003) using proxy variables such as discretionary accruals and current accruals, investigate the relationship between audit tenure and audit quality. The univariate results show that when auditor tenure is longer, the negative value of accrual measures was observed to be minimal. Furthermore, the study also employed multivariate analysis in order to examine if the discovered relationship between tenure and accrual is also influenced by other factors. The relationship between auditor tenure and accrual measures was also observed to be consistent in multivariate analysis as in the univariate analysis. On the other hand, the study found that extended auditor tenure had a beneficial effect on the dispersion of accruals. The implication is that there is the tendency for auditors to place greater constraints on both income increasing and

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income decreasing accruals as the audit client relation lengthens. These results suggest that audit quality does not appear to deteriorate with tenure. In the light of the positions of various studies as reviewed above, we can argue that the effects of auditor rotation on audit quality are controversial. Moreover, few empirical studies use publicly available secondary data in order to determine whether perceived threats to auditor rotation actually compromise audit quality. Therefore, this study which was motivated by the lack of consensus in the literature on the impact of audit rotation on audit quality will contribute to the debate by examining the relationship between auditor rotation and audit quality in Nigeria.

Arguments for Mandatory Rotation The main argument supporting mandatory auditor rotation is the issue of the gradual decrease in the quality and competence of the auditor’s work over time. Arguments in favour are that it prevents the audit firm from developing too cosy a relationship with the client and also provides an incentives for the audit firm to carry work to a high standard because they know that the quality of their work will be observable to some extent when a new firm of auditors take over the audit (Gray and Menson, 2008). When the same client is audited year after year, the auditor tends to be too familiar with the client. This familiarity is likely to restrict the value added service of the auditor. For example, the audit programme may become stale as the auditor begins to anticipate the condition of the client‟s system (Hoyle, 1978).As such, the quality of the audit work falls. This was supported by Catanach and Walker (1999) who mentioned that the said rotation would increase the quality of services provided by the audit or because the audit firm would attempt to differentiate themselves from other firms through the quality of their work. Most of the arguments for mandatory auditor rotation relate to expectations that the regulation will improve the quality of audits (Pettyand Cuganesan, 1996).The most predominant argument for audit

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firm rotation is that it will limit the formulation of audit–client relationships that can sometimes lead to compromising independence.

Arguments against Mandatory Rotation Detractors of the measure argue that if the audit firm were rotated after five years, it would not give sufficient time to become fully acquainted with the audit client. Furthermore, having obtained a good knowledge of the company over several years, the audit firm would be in a better position to offer valuable advice to the client. It is also argued that the auditor would have little incentive to spend much time determining the complexities of the audit client, as they know they will be replaced after a set period of time. Another argument for not endorsing mandatory rotation of auditors is that non-detection of fraudulent financial reporting is more likely when the audit firm is new to the audit and does not have the cumulative audit knowledge that is only obtainable after performing the audit for a lengthy period of time. Mandatory audit firm rotation will also reduce the audit committee’s ability to determine which audit firm best meets the company’s audit needs. Finally, it is argued that, since there are initially one-off starts up costs involved in audit, the audit function would become more expensive if there were mandatory rotations (Gray and Manson, 2008). The review of arguments against mandatory audit rotation starts by looking at the conditions that affect the audit quality and audit independence. One of them is the issue of the auditor having a close relationship with client’s management. The nature of auditing requires that the auditors interact extensively with their client. Hoyle (1978) argues that with the complexity and size of most modern businesses, the auditor will spend more time with the client in order to become acquainted with the company’s system, record keeping and internal controls. It is generally recognized that such knowledge is best gained through actual audit experience over a considerable period of years.

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As such, mandatory auditor rotation will limit the time the auditor spends understanding the company being audited (Zawawi, 2007).

METHODOLOGY The research design used for this study is both quantitative and qualitative. The study area is Nigeria Deposit Money Banks (DMBs). The population of this research study comprises of all Out of the twenty banks insured by Nigeria Deposit Insurance Corporation as at 2011, fifteen banks were purposively selected for the study.600 copies of questionnaire were administered to regulators, audit firms and investors out of which 530 were returned by respondents.Questionnaire and interview will be used to source data for the purpose of this research .The strata comprise of Deposit Money Banks in Nigeria .The data will be analyzed using analysis of variance (ANOVA)

Insured Banks and Their Approved External Auditors In 2011 S/N Bank Name Approved Auditors 1. Access Bank Plc KPMG Professional Services 2. Citibank Nigeria Ltd Price Waterhouse Coopers 3. Diamond Bank Plc Price Waterhouse Coopers 4. Ecobank Nig. Plc Akintola Williams Deloitte 5. Heritage Bank Nig Ltd Price Waterhouse Coopers 6. Fidelity Bank Plc Ernest & Young, PILF Professional Services 7. First Bank of Nigeria Plc Price Waterhouse Coopers, Pannell KerrForster (PKFProfessional) 8. First City Monument Bank Plc KPMG Professional Services 9. GTBankPlc Price Waterhouse Coopers 10. Keystone Bank Nig Ltd KPMG Professional Services 11. Mianstreet Bank Nig Ltd KPMG Professional Services 12. Skye Bank Plc Akintola Williams Deloitte 13. Stanbic-IBTC Bank Plc KPMG Professional Services 14. Standard Chartered Bank Nig ltd Akintola Williams Deloitte 15. Sterling Bank Plc Ernst & Young 16. Union Bank of Nigeria KPMG Professional Services

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17. United Bank for Africa Price Waterhouse Coopers 18. Unity Bank Plc Ahmed Zakari& Co. 19. Wema Bank Plc Akintola Williams Deloitte 20. Zenith Bank Plc KPMG Professional Services Source: NDIC Annual Report and Statement of Account (2011)

Model Specification For the purpose of measuring the significant relationship between the dependent and independent variable, an econometric model is hereby specified: PAUDQ = BO+ B1 MATR + Et...... (1) Where: Bo= Constant B1= Parameter Estimate MATR = Mandatory Audit Firm Rotation PAUDQ = Perceived Audit Quality Et= Stochastic error term The model specified above captured perceived audit quality as the dependent variable while mandatory audit firm rotation is independent variable.

Summary of Findings The study findings is in line with Walker, Lewis and Casterella (2001), Knechel and Vanstrael (2007) have also argued that auditor rotation may not necessarily improve audit quality and the effect of tenure does not have either an increasing or decreasing effect on audit quality and at best the effect is weak. However, the study finding is at variance with the conclusions made by Barbadilllo and Aguilar (2000) which found the relationship between the auditor tenure and audit quality to be negative and concluded that the shorter tenure, the more they behave in a dependent fashion . Healy and Kim (2013) and Carcello and Nagy (2004)

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have also argued that rotation of audit firms is a way of improving audit quality.

Conclusion We find that audit quality is not negatively affected by audit firm tenure. Mandatory audit firm rotation is perceived as an unnecessary procedure without any actual evidence of fulfillment of intended purposes. Mandatory audit firm rotation would have an adverse effect on the quality of audits and on the long term sustainability of the auditing profession. Based on the findings of this study, one can conclude that there is no evidence to support the mandatory audit firm rotation since the disadvantages outweigh the benefit. Moreover, the policy would reduce, not improve audit quality. . The author supports the dialogue to explore other ways to improve audit quality, by enhancing auditor independence, objectivity and professional skepticism.

Recommendations In order to make Nigerian Auditing firms more effective in their activities, so that they can continue to play their appropriate roles in the growth and development of deposit money banks and the economy at large, the following measures are recommended for adoption and practice: ●Auditors of deposit money banks in Nigeria should live up to the expectations of their clients, their professional bodies, the laws of the land and the general public. These can be achieved by upholding the ethics of their profession as they observe ethical codes such as integrity, objectivity and confidentiality. ●It is also recommended that the auditor should be remunerated on the basis of work experience, qualification, duration of the audit assignment, and background profile. The payment of the adequate fee will encourage the auditor to do the assurance engagement assignment according to the high degree of standardization expected.

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●The professional bodies should always watch governmental actions and raise alarm on policies which could hinder smooth discharge of Auditors’ responsibility, especially in the audit of deposit money banks in Nigeria.

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Cameran, M., J. R. Francis, A. Marra, and A. K. Pettinicchio.2015. Are there adverse consequences of mandatory auditor rotation? Evidence from the Italian experience. Carcello, J. V.,and A. L. Nagy. 2004. Audit Firm Tenure and Fraudulent Financial Reporting. Auditing: A Journal of Practice & Theory 23 (2):55-70. Central Bank of Nigeria (2006).“Code of Corporate Governance for Banks in Nigeria Post Consolidation, retrieved July 5, 2013 from http://www.cenbank.org/out/publications/bsd2006/corpsgov- postconso. PDF DeAngelo, L.E. (1981). Auditor Size and Audit Quality. Journal of Accounting and Economics Vol. 3: 183-199 European Commission (2010). Audit Policy :Lessons from the Crisis. Green Paper October 13 2010. European Commission (2011). Proposal for a Regulation of the European Parliament and the Council on Specific Requirements Regarding Statutory Audit of Public Interest Entities 2011/0359. Gray, I. and Manson, S. (2008). The Audit Process Practice and Cases {4thEd) .London;Cengage learning John Chukwuma Imegi &etal.(2018) mandatory auditor rotation and audit quality in the nigeria financial sector Knechel, W. R., and Vanstraelen, A. (2007) . The Relationship Between Auditor Tenure and Hayes, R. Dassen, R. Schilder, A. and Wallage, P. (2005). Principles of Auditing An Introduction to International Standards on Auditing. (2nd Ed.) England; Pearson Education Limited. Hoyle, J. (1978). Mandatory Auditor Rotation. The Arguments and An Alternative. Journal of Accountancy.Vol. 145. 69-78 Johnson, V., Khurana I.K. Reynolds, J.K (2002).Audit-Firm Tenure and the Quality of Financial Reports.Contemporary Accounting Research 19:637-660

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Mautz, R.K., and H.A. Sharaf, (1961) The Philosophy of Auditing. American Accounting Association Monograph No. 6 (American Accounting Association, Sarasota, FLJ. Mohamed.D.M. (2010).The impact of the Auditor Rotation on the Audit Quality. A Field Study from Egypt: Working Paper, German University in Cairo. Myers, J., Myers L. and Omer T. (2003).Exploring the Term of the Auditor- Client Relationship and Quality of Earnings.A Case for Mandatory Auditor Rotation. The Accounting Review Vol. 78:778-779. Nigeria Deposit Insurance Corporation (NDIC) (2011). 2011 Annual Reports and Statement of Account Palmrose, Z.V. (1988). An Analysis of Auditor Litigation and Audit Service Quality. The Accounting Review Vol(9) January : Mgbame, C. O, Eragbhe, E &Osazuwa, N. P (2012). Audit partner tenure and audit quality: An empirical Analysis. European Journal of Business and Management, 4(7),. Myers, J. N., Myers, L. A., & Omer C. T. (2003). Exploring the term of the auditor-client relationship and the quality of earnings: A case for mandatory auditor rotation? The Accounting Review, 78(3), 779-799. Olowookere, J. K & Adebiyi, W. K. (2013). Mandatory audit firm rotation and audit quality in Nigerian deposit money banks.International Journal of Business and Management Invention, 2,63-69.

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AN EMPIRICAL ASSESSMENT OF THE ECONOMIC AND SOCIAL JUSTIFICATION FOR FRINGE BENEFITS IN A SERVICE-ORIENTED ORGANIZATION

DR. JULIUS ADIMA OSAREMEN, & MR DENEDO CHARLES Federal Polytechnic Bida Dept. Business Administration & Management, PMB 55 Bida, Niger State, Nigeria.

ABSTRACT This study seeks to investigate the relevance of fringe benefit reward system in a service-oriented organization in Nigeria domain. Improper implantation of the reward system in public sector organization has resulted in the poor motivation of the employees with the long and short-run effect of low productivity and loss of valuable workforce of the organization. The two sensitive loses to the organization as a result of ill reward system are in no small way responsible, low gross domestic product, poverty and a wide gap between the super rich and the super poor in the economy. Curbing this age- long ugly trend in Nigeria becomes necessary, it is the objective of this study to quantitatively investigate both the economic and social justification for a proper reward system, focusing on service organization in Nigeria with the view to report current finding in a dynamic economy like Nigeria. The methodological approaches of this investigation include quantitative study, primary and secondary sources of data, questionnaire instrument, design hypotheses, self-reporting questionnaire administered on staffs of service- oriented organization with an estimated population of 250 with a sample size of 123 for investigation. Study measurements adopted from field expert and Partial Least Square SEM analytical methods are used to analyze the collected data. The study revealed that Health service allowance is directly related to enterprise performance. And the researcher recommends that

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fringe benefits orientation should be incorporated into the organization policies in both service and production sectors in Nigeria.

Keywords: Reward system, Fringe benefits, Motivation, Service-oriented organization, Study-leave

INTRODUCTION: The evolution of the reward system in a capitalist economy over the years has experienced remarkable transformation in names and purpose for which it is designed. The valuation of one's effort or services expressed by the valuer into broad dimensions, namely: monetary and nonmonetary expression called a fringe benefit. Till date, it is on record the most countries have practically attained economic and political independence, however, no nation in the world that has been able to grant this same economic independence to its citizens in the areas of human efforts valuation. The compensation of human capitals effort has remained on the concurrent list as expressed in the civil service commission, wages and salary administration, minimum wage web of control. The rational human capital as a way of reacting to the artificial limitation created by the web of rules do responds or revolt by withdrawing some reasonable amount of efforts in the discharge of their duties. The economic implication of this two divergence has created economic setback to the productive performance of human capital. Attempting to resolve the imbalance, the creative entrepreneurs, who by nature are an advocate of ethical practice, respect for social and moral justices design various additional pay to invoke and induce the reserved human effort. Using the term fringe benefits to motivate the human resources to sub come to self-willingness to render their full capacity effort for additional efforts outside normal entitlement. The fundamental purpose of the fringe benefit is to increase productive employee action and increase output. Balance organizational goodwill on the existing divergence policy with the view to remodeling and to changing individual worker mindset towards lifestyle and attitude to hard work. Fringe benefits as a motivational tool have caused dramatic changes in workers input/output productivity which will give birth to a positive result for the company, organization and the national economy. A fringe benefit is a form of indirect or direct compensation given to a group of the employee as part of organizational membership. It is that total reward

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given to employees in addition to his\her performance pay in an organization. Fringe benefits centered on maintaining the quality of life the employees and a high level of protection and financial security for workers like study leave, the major objective for the most organization on fringe compensation programs is to attract, motivate promote employees. Also, an employee that is more hardworking and faithful to organization attracts more benefit package and often enjoys an advantage over competing firms offered similar base pay. In effect, these benefits provided by the organization or management may create “golden land cuff’s” making employees more hardworking to move to other employees to educate them more in various areas that will make them more effective to the organization. Some common examples are the retirement of pension plans study leave healthy services and education reimbursement time and use of company car. It has been observed that there is improper implantation of fringe benefit programs in public sector organization due poor finances in an organization which has resulted in the poor motivation of the employees and the productivity of the organization. In other words, fringe benefits incentive stated in the employment letter has been abandoned, and they are left out by relying solely on the salaries and has done the job to be unattractive.

REVIEW OF RELATED LITERATURE The Concept of Fringe Benefits Employee remuneration is not just about to pay, for example, wages and salaries; it is also concerned with pay benefits or benefits in kind these non- pay benefits are usually known as employee security benefits and sometimes as ‘perks’ [Cole 2009]. He continues by saying that the work- related benefits are linked closely to the day to day operational requirements of the organization about its member. According to Flowers,[2008] fringe benefits are benefits which supplement the employee’s ordinary wages and which is of value to them and their families in so far as it materially, In cases of their retirement’s benefits. The human concept of labor has been recognized widely in the industrial world. The employer though not bound, provides several benefits and services to the employees, working in the organization to maintain and promote the employees favorable attitude toward work and work environment because maintenance and high

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morals, Such benefits and services being part of wage and salary administration includes all expenditure incurred to benefits employee over and above regular wages and direct monetary incentives related to output are generally referred to as fringe benefits [Dessler,2009].

OVERTIME Overtime is the payment over and above the normal salary and wage rates, where the premium maybe one and a quarter to two times Tysan, (2007). Overtime should be carefully planned and controlled to ensure that it is not misused by employees and so that it can also be productive. According to the code of Regulation (2006).When it is established that an officer is required to work overtime as a matter of urgent necessity and it is not possible to allow him equivalent time, an allowance may be granted to him the prior approval of the authorized officer.

ANNUAL LEAVE Annual leave is a period off-work that an employee is entitled to after every 12 consecutive months of service with an employer. According to Core, 2006 leave is granted for the recuperative purpose to enable an officer tore new his energies and improved efficiency. Core, (2009) states that employers give an employee paid time off in a variety of circumstances paid lunch breaks and rest period, holiday and vacations are not cannons but leave for some purposes as well time off benefits represents an estimated five percent to thirteen percent of total compensation.

MATERNITY LEAVE Section 29 of Employment Act, (2007), assert that female employee shall be entitled to maternity leave and fully pay if she gives not less than seven days written a notice in advance. Many employees provide maternity and paternity benefits to an employee who gives birth to children. In caparison to those giving birth, a relatively small number of employees adopt children, but in the interest of fairness, a good number of organizations provide benefits for employees who also adopt children [Wood word, 2000].

EDUCATION AND HOUSING ALLOWANCE Employers have found that employees highly desire educational and tuition aids assistance benefits these programs hate been fund to aid

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employee retention and recruitment the program normally covers some or all costs associated with formal education colleges and degree programs, including the cost of books and laboratory materials [Mathis,2011].

RETIREMENT BENEFITS Retirement plans in addition to serving as a tax-advantaged means of accumulating retirement income can enhance productivity pensions strongly in thence worker’s behavior, giving younger workers a compelling resent continue working for their employer and encouraging the older worker to retire a timely basis [Fowers,2008].

THE THEORETICAL FRAMEWORK OF THE STUDY Gunawan and Fabrianto, (2014). A study on 428 employees from the food sector in the Central Anatolia Region of Turkey suggests that non- monetary incentives have a positive impact on job satisfaction, affirming the report of (Erbaşı and Arat, 2012). Galanaki (2013) carried out a study on 1115 employees from various Greek sectors and concluded that the most important fringe benefits for employees are those about balancing between work and family, security, and education & development. It was also revealed that many fringe benefits positively correlate with organizational commitment and job satisfaction, but the highest level of correlation is with those benefits which aim to allow employees to balance work and life Galanaki (2013) grouping and classification if fringe benefits for adequate administration and allocation of fringe benefits from a variety of non- monetary fringe reward to attain and sustain employees satisfaction, maintained: I security services, to include: private health insurances, individual retirement. Ii Fringe reward for balancing service between family and work: to include: leaves for child care, daycare of the children of employees, to encourage female labor-force participation in the national economic development of the nation. Cheema et al. (2013) research effort revealed that there is a significant positive relationship between fringe benefits and employee motivation towards organization performance. Erdemir, (2012). Explained the conceptual meaning of intrinsic rewards used in today body of literature and as all indirect payments and non- monetary rewards for an effort or service rendered by an employee. However, Olsen (2006), a Viewed fringe benefit as-as not isolated from

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salary but a complimentary gesture to the salary of an employee as both salary and fringe in benefit a standard feature as financial value. Helen Kamau (2012) reported that the implies retirement benefits enhance employee productivity to a great extent. The study reported that a rational workforce would disengage from the organization as its labor force if the organization benefit policy does not cover their retirement expectation. Helen Kamau (2012) study revealed that a significance level of health protection benefits on the employee productivity directly and positively impacts on the employee's productivity and the organization. Helen Kamau (2012) reported that a positive significance level of retirement reward benefits on employees correlates to a corresponding positive significance increase in employees productivity. Also, the work of Neil, (2000) revealed that the retirement fringe benefits reward constitute the expectation and the major sustenance of rendering labor services to the particular organization. Helen Kamau (2012) findings favor the rejection of the null hypothesis that the Health Protection Benefits do not influence employee productivity, and support the null hypothesis that Health Protection Benefits positively or negatively impacts on the enterprise and employee productivity. Affirming the report of Mathis (2003), that, statement that “health problems of an employee is positively related to both the organization’s operations and individual employee productivity.” Also, the research effort of Hakmal et al. (2012) in the medical domain using medical professionals of 308 nurses in Turkey public setting. It was reported that appreciation of the works performed, participation in decision-making processes, taking initiatives, and acquiring new skills positively and substantially influence nurses workers motivation to increase significantly. In a similar investigation on 384 Bank workers in Pakistan service sector, Bratton and Gold (2009) define fringe benefits as that part of the total reward package provided to employees in addition to boost performance pay. Baase (2009) study empirically showcased that, the health of the workforce is directly and completely related to the productivity of the workforce and the health of the nation’s economy Abowd (1990) investigation on the 225 companies,s incentive pay firm performance revealed that significant use of fringe benefit compensation plan of companies is statistically and positively relate d to the companies incentive pay-firm performance and the total shareholder return and gross economic return. Kwak, JC, Lee, E (2009) reported result findings using both correlational and regression statistical analysis of Korean

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manufacturing industries workers on the effect of training on performance, and the result shows a negative correlation between employee training and firm performance. While Retirement fringe reward positively statistically correlates and promote firm performance in Korea industries. Baase (2009) states that evidence clearly shows that the health of the workforce is directly and positively inextricably correlate to the productivity of the workforce and the health of the nation’s economy. And as a matter of constitutional requirement, the Occupational Safety and Health Act, (2007) holds that Health service allowance is an un-revokable responsibility of the nation to guarantee and ensure the optimal health of its workforce. In COR (2006) study, reveals the medical fringe benefits for the workforce and his/her family is a right beyond privileges targeted to assist both the family and the national health policy for its human capital asset. Olsen, (2006). Reported positive expression concerning the provision of fringe benefits to include: economy of scale, economical purchase of bulk health insurance policy as they are considered as ways of improving the peace of employees and their families and their confidence Sabuncuoğlu (2005), found significant positive correlations between employee job satisfaction and work motivation to have a direct relationship with increase productivity; decrease labor turn-over. Yavuz (2004) research investigation on Turkish public sector on the efficacy of fringe benefits as a non-monetary reward, indicates that positive and significant correlation between concrete incentives, intrinsic reward as employees’ motivation, such as celebrations, picnics, social events, and sports activities increase their commitment to performance. Jeffrey, (2003). Reported that, appropriate overt non-financial fringe benefits have a significant and positive correlation, to motivation towards favorable enterprise performance. Such as using an appreciative expression towards employees, like ‘well done’, CEO hands shake ceremony to deserving staffs, presentation of excellent performers at a general meeting, Happy birthdays wishes , delegation of authorities, being interested in their families and children welfare, and sharing feelings such as success, love, sorrow, etc. with them create much more significant and more positive effects, Fındıkçı, (2006), affirmed. Mathis and Jackson (2003), see fringe benefits as forms of indirect reward as an appreciation to an employee or workforce in recognition of his/her effort and contribution toward growth and development as a part of the organizational membership

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Borsch-Supan (2003), the investigation revealed a non-significant and negative correlation between an aging workforce and economic growth through a set of the interrelated mechanism. “an aging workforce driven by low fertility and longer life expectancy has negative effects on economic growth through a set of interrelated mechanisms.” Scarth (2002), for example, asserts that an aging workforce has the potential of increasing the productivity growth and investment of the enterprise through motivation investment in human capital as labor becomes a relatively scarce production factor. In a notable investigation, Sorauren (2000) revealed that non-monetary reward system propels and appeal to the workers inner-mind and capability to do more than the cash motivational approach as it connotes a sense of recognition that can spur their interest in the organization. Murphy (1985) reported a significant positive correlation between salary, fringe reward bonus as a total reward package for 72 companies’ managers and to total shareholder return and growth of the firm sales performance.

Research Hypotheses of the study: H1: Employee Retirement Allowance have a significant positive direct relationship with high enterprise performance. H2: Health Service Allowance is significantly and positively impactful to Enterprise High Performance H3: The Promotion Allowance for staffs have significant, direct positive impacts on Enterprise High Performance. H4: There are significant positive correlations between Training and Study Leave for staffs and Enterprise High Performance According to Cole,[2009] there is two theory that can help explain the relationship between fringe benefits and employee performance, which are satisfaction causes performances theory and performance causes satisfaction theory [Cole,2009].

VALIDITY AND RELIABILITY OF Measurement tools: To ensure that the instrument used is valid, the measurement was adopted from previous studies from experts in the field of study and the questionnaires were structured in such a way that respondents can easily and quickly give accurate answers. The researcher also ensures that instruments used is reliable and has only one interpretation to ensure an adequate response.

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Measurement and Instrument property: The study maintains a consistent Likert scale of 1-5 ranging from level agreement to the level of disagreement, the demographic profile instrument contains five (5) items as designed by the researcher. While the five independent variables instruments are adopted from the following sources: Training and study leave; these contain four questions which are all adopted From Helen N. Kamau, (2013). Performance Award: The instrument contains four questions, as adopted from Adekoya Ismaeel Adeniyi, (2012) and Helen N. Kamau, (2013), in three and one respectively. Promotion allowance: The instrument contains three questions as adopted from Adekoya Ismaeel Adeniyi, (2012) and Helen N. Kamau, (2013) as one and two respectively. Employee’s Retirement: These contain three questions as all adopted from Helen N. Kamau, (2013) as sources. And lastly, Health service Allowance: The four questions adapted from Helen N. Kamau, (2013) as a source. The instrument adopts a self-reporting questionnaire as it was administered by the researcher himself, on the workers in their various organizations under the strata.

Assessment of the measurement model

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Testing the measurement model of the study: the convergent validity was use through factor loadings, composite reliability (CR) and average variance extracted (AVE) (Hair et al. 2010) Hulland, (1999) See Table 1 showing the results of the convergent study validity.

Table 1. Convergent Validity Cross Composite Average Loading Reliability Variance E Employee Retirement Q1 0.634 0.761 0.521 Allowance Q10 0.816 Enterprise High Q11 0.804 0.793 0.657 Performance Q12 0.700 Q13 0.790 Health Service Q14 0.669 0.826 0.704 Allowance Q16 0.822 Promotion Allowance Q18 0.856 0.793 0.657 Q2 0.720 Training and Study Q4 0.737 0.740 0.488 Leave Q6 0.830 Q8 0.791

Measuring the extent to which measures reflect some other variables, which is indicated by the level of correlations between the measured interest and the measure of other constructs (Cheung and Lee, 2010) The study reported the discriminant validity of the correlation matrix including the correlations between different construct in the lower left off-diagonal elements of the matrix and the square roots of AVE calculated for each of the constructs along the diagonal (Teo, 2009) See table2, as reported in the study.

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Table 2. Discriminant Validity Employee Enterprise Health Promotion Training and Retirement High Service Allowance Study Leave Allowance Performance Allowance Employee Retirement 0.722 Allowance Enterprise High 0.235 0.811 Performance Health Service 0.204 0.423 0.839 Allowance Promotion Allowance 0.242 0.467 0.224 0.81 Training and Study 0.145 0.316 0.168 0.329 0.699 Leave

Assessing the collinearity between the latent and exogenous constructs of the study the variance Inflated factor (VIF) was used, to detect multicollinearity problem. Hair, Ringle, and Sarstedt (2011) noted that multicollinearity is a concern if the VIF value is higher than 5. See table 3, as reported by this study, demonstrating variance inflated factor index below 5.00

Ta ble 3. Collinearity (VIF) Variance Inflated Factor Employee Retirement Allowance 1.093 Enterprise High Performance Health Service Allowance 1.089 Promotion Allowance 1.198 Training and Study Leave 1.137

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Assessment of the structural model

The assessment of the structural model efficacy was examined by testing the study hypothesized statements, using the path coefficients (Beta) of the structural equation modeling on Partial Least Square (PLS) approach. To demonstrate the relationship between the tested variables, (Gefen, Straub and Boudreau, 2000), the bootstrapping approach was used to obtain the t-value of each coefficient, as a parameter denoting the strength of the relationship the outcome represents, (Bakshi and Krishna, 2009, Chin, 2010) The higher the t-value, the stronger the significance relationship. See table 4, as reported in this study.

Table 4. Path Coefficients and Hypotheses Testing Beta Std Dev T. Value Remark Employee Retirement Allowance -> Enterprise High 0.071 0.073 0.878 Not Supported Performance Health Service Allowance -> Enterprise High Performance 0.309 0.088 4.37 Supported

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Promotion Allowance -> Enterprise High Performance 0.334 0.091 3.726 Supported Training and Study Leave -> Enterprise High Performance 0.144 0.091 1.763 Supported

The results in Table 4, indicated that Employee Retirement Allowance and enterprise high performance (B=0.071, t-value=0.878) is negatively related to enterprise high performance meaning that employees retirement allowance has no significant positive direct relationship with enterprise high performance, while Health Service Allowance and Enterprise High Performance (B=0.309, t-vale=4.37), Promotion Allowance and Enterprise High Performance (B=0.334, t- value=3.726) and Training and Study Leave and Enterprise High Performance (B=0.144, t-value=1.763) were positively related to enterprise high performance. In the same vein, the exogenous study constructs: Employee Retirement Allowance, Health Service Allowance, Promotion Allowance, and Training and Study Leave, bears variance inflated factor index values of 1.093,1.089, 1.198, and 1.137, respectively, indicating lack of linear and multicollinearity issues with and among the study and the variables explaining 34.9% (R2), at a predictive relevance of 0.175 (Q2) and lastly, the effect size of the four endogenous constructs (F2) = Employee Retirement Allowance 0.007, Health Service Allowance 0.135, Promotion Allowance 0.143, and Training and Study Leave 0.028. An indication that the study designed models, i.e., both measurement and the structural models are dependable instruments for assessing enterprise performance in any economy. Assessment of the endogenous constructs (dependent variable) of this study to showcase if the study designed partial least square model accomplished its objective of maximizing the variance explained, the bootstrapping approach of PLS was run on the designed structural model of the study with its endogenous and exogenous elements of the study to obtain the R-Square value, (Huang, Lin, and Chuang, 2007). See table 5, as reported in the study.

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Table 5: R-Square R R Square Square Adjusted Enterprise High Performance 0.349 0.327

퐟ퟐ The effect size Effect size indicates the corresponding impact or contribution of the specific exogenous latent variable on an endogenous latent variable(s) using changes in the R-squared (Chin, 1998). Thus, the effect can be explained and statistically coded using notable formula, (Cohen, 1988; Selya, Rose, Dierker, Hedeker, & Mermelstein, 2012; 2 2 Rincluded−Rexcluded Table 6. F-Square Effect size: f = 2 1−Rincluded ퟐ 퐟 The effect size Employee Retirement Allowance -> Enterprise 0.007 High Performance Health Service Allowance -> Enterprise High 0.135 Performance Promotion Allowance -> Enterprise High 0.143 Performance Training and Study Leave -> Enterprise High 0.028 Performance

Predictive Relevance of the measurement model = Q2 In this study, a cross-validated redundancy measure (Q²) was applied to assess the predictive relevance of the research model (Chin, 2010; Geisser, 1974; Hair et al., 2013; Ringle, Sarstedt, & Straub, 2012b; Stone, 1974). The Q² is a criterion for a measure of how well a model predicts the data of omitted cases (Chin, 1998; Hair et al., 2014). According to Henseler et al. (2009), a research model with a Q2 statistic is greater than zero is considered to have predictive relevance.

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Additionally, a research model with higher positive Q2 values suggests more predictive relevance. Table 7 presents the results of the cross- validated redundancy Q² tests of this study as Q² = 0.175

Table7: Construct Cross-Validated Redundancy Total SSO SSE Q2(=1- SSE/SS0 Enterprise High Performance 246.000 202.979 0.175

DISCUSSION The first exciting finding of this investigation reported that Employee Retirement Allowance has no significant positive direct relationship with high enterprise performance. This result finding is not theoretically supported by the study and is consistent with the work of Borsch-Supan (2003), and Scarth (2002), whose investigations revealed a non-significant and negative correlation between an aging workforce and economic growth through a set of the interrelated mechanism. “an aging workforce driven by low fertility and longer life expectancy has negative effects on economic growth through a set of interrelated mechanisms.” And Scarth (2002), asserts that an aging workforce has the potential of increasing the productivity growth and investment of the enterprise through motivation investment in human capital as labor becomes a relatively scarce production factor. The significant of this result include a final resolution of the inconsistency and contradictory result findings between Borsch-Supan (2003), Scarth (2002) and Helen Kamau (2012), Neil (2002), Kwak, JC, Lee,E (200) who consistency reported (Helen Kamau 2012) reported that a positive significance level of retirement reward benefits on employees correlates to a corresponding positive significance increase in employees productivity. Also, (Neil 2000) revealed that the retirement fringe benefits reward constitutes the expectation and the major sustenance of rendering labor services to the particular organization. And (Kwak, JC, Lee, E, 2009) reported result findings using both correlational and regression statistical 137 | P a g e

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analysis of Korean manufacturing industries workers on the effect of retirement on performance, and the result shows a negative correlation between Retirement fringe reward positively statistically correlates and promote firm performance in Korea industries. The second finding as reported by this study shows that Health Service Allowance is significantly and positively impactful to Enterprise High Performance. This result is theoretically supported by study, and it is consistent with the works of Helen Kamau (2012), Baase (2009), Occupational Safety and Health Act, (2007), and COR (2006) with agreement reports as (Helen Kamau, 2012) study revealed that a significance level of health protection benefits on the employee productivity directly and positively impacts on the employee's productivity and the organization. And the rejection of the null hypothesis that the Health Protection Benefits do not influence employee productivity, and support the null hypothesis that Health Protection Benefits positively or negatively impacts on the enterprise and employee productivity. (Mathis, 2003), reported that the “health problems of an employee is positively related to both the organization’s operations and individual employee productivity.” (Baase, 2009) revealed that obvious evidence clearly shows that the health of the workforce is directly and positively inextricably correlate to the productivity of the workforce and the health of the nation’s economy. (Occupational Safety and Health Act, 2007) Holds that Health service allowance is an un-revocable responsibility of the nation to guarantee and ensure the optimal health of its workforce. And (COR, 2006) study, reveals that the medical fringe benefits for the workforce and his/her family is a right beyond privileges targeted to assist both the family and the national health policy for its human capital asset. The third finding revealed the Promotion Allowance for staffs has significant, direct positive impacts on Enterprise High Performance. This result is theoretically supported by investigation, and it is consistency with the work of Sabuncuoğlu (2005), who reported significant positive correlations between employee job satisfaction and work motivation to have a direct relationship with increase productivity; decrease labor turn-

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over and Jeffrey, (2003) with a report that, appropriate overt nonfinancial fringe benefits have a significant and positive correlation, to motivation towards favorable enterprise performance. Such as using an appreciative expression towards employees, like ‘well done’, CEO hands shake ceremony to deserving staffs, presentation of excellent performers at a general meeting, Happy birthdays wishes , delegation of authorities, being interested in their families and children welfare, and sharing feelings such as success, love, sorrow, etc. with them create much more significant and more positive effects. Mathis and Jackson (2003), see fringe benefits as forms of indirect reward as an appreciation to an employee or workforce in recognition of his/her effort and contribution toward growth and development as a part of the organizational membership Lastly, this investigation revealed significant positive correlations between Training and Study Leave for staffs and Enterprise High Performance. This result is theoretically supported by investigation, and it is not consistent with the work of Kwak, JC, Lee, E (2009) who reported result findings using both correlational and statistical regression analysis of Korean manufacturing industries workers on the effect of training on performance, and the result shows: a negative correlation between employee training and firm performance.

The implication of the Study Practical Implication This study has practically demonstrated that fringe benefits are a veritable tool to turn around enterprise performance in any economy whether service or product oriented organization. The study has also vividly revealed the economic bond between extrinsic motivation and the inner- mind of the labor force in the labor market as a rational being who can be predicted under certain condition, as demonstrated in the study with a divergent interest stem from labor laws, regulation, and civil service rules. This study has placed it on record that the four dimensions of fringe benefits (Employee Retirement Allowance, Health Service Allowance,

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Promotion Allowance, and Training and Study Leave) are reliable variables to enhance enterprise high performance and national development. Theoretical implication The study has added evidence to the efficacy of The Herzberg’s Two- Factor Theory (1966), also known as motivation and hygiene factor theory, as a dependable tool for assessing and predicting entrepreneurship development. Methodological implication The study has attended to the methodological gap in notice wages and salary administration the Nigeria labour market via the control and regulation in the form of minimum and maximum wage as against the market force of demand and supply determinants in free economy as Nigeria, where maximization of all factor of production of goods and services is of essence if we as a nation must overcome abject poverty and increase per-capital income of Nigerian citizenry that will reflect the gross domestic product as a nation.. This study analytically has attended scientific needed investigation with the use of SPSS, and Partial least square-SEM design and structure research framework, that require assessment of both the measurement and structural models, which have revealed the psychometric properties of the study as individual item reliability, average variance explained and composite reliability.

Limitation and Future Research Direction Further investigation of this study is required with wider coverage of some other states for more respondents and representation of other 35 states in other to generalize findings. As the scope of this study is limited to Niger state, though adequate coverage of 92% was attained, further study is required to extend the scope to other 35 states in Nigeria.

Conclusion and Recommendation • The study has empirically demonstrated that fringe benefits and the Herzberg motivation and hygiene factors theory is is a dependable tool to instill continue high enterprise performance and enhance the

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gross domestic product. The study has also placed it on record that there exists a positive relationship between fringe benefit and enterprise high performance. It is the recommendation of this study that fringe benefits orientation should be incorporated into the organization policies in both the private and public sectors in Nigeria.

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Huang, J., Lin, Y., & Chuang, S. (2007), “Elucidating user behavior of mobile learning: A perspective of the extended technology acceptance model,” The Electronic Library, 25(5) Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: a review of four recent studies. Strategic Management Journal, 20, 195-204. doi: 10.1002/(sic)1097- 0266(199902)20:2<195::aid-smj13>3.0.co;2-7 Jeffrey, S.(2003). ‘The Benefits of Tangible Non-Monetary Incentives,’ Working Paper. Graduate School of Business. University of Chicago Mathis, R. (2011), Human Resources Management. (led).Mason, Thomson /South-Western. Mathis, Robert L., and John H. Jackson. (2003). Human Resource Management. (11th ed). Mason, OH: Thomson/South-Western. Murphy, K. (1985). Corporate performance and managerial remuneration: An empirical review. Journal of Accounting and Economics, 7, 11-42. Neil, Charness, (2000). “Can Acquired Knowledge Compensate for Age- Related Declines in Cognitive Efficiency?” Psychology and the Aging Revolution: How We Adapt to Longer Life. Washington, D.C.: American Psychological Association. Olsen, H.D. (2006). ‘Wages, Fringe Benefits and Worker Turnover,’ Labour Economics, 13, 87-105 Ringle, C. M., Sarstedt, M., & Straub, D. W. (2012b). Editor's comments: a critical look at the use of PLS-SEM in MIS Quarterly. MIS Quarterly, 36(1), iii-xiv. Sabuncuoğlu Z. (2005). İnsan Kaynakları Yönetimi(Uygulamalı), Bursa: Alfa Aktuel Basım. Sorauren, I.F. (2000). ‘Non-Monetary Incentives: Do People Work Only For Money?’, Business Ethics Quarterly, 10:4, 925-944. Scarth, W. (2002). Population Ageing, Productivity, and Living Standards. In The Review of Economic Performance and Social Progress: Towards a Social Understanding of Productivity. A. Sharpe, F. St- Hilaire, and K. Banting, eds (pp. 145–156). Montreal: IRPP.

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Selya, A. S., Rose, J. S., Dierker, L. C., Hedeker, D., & Mermelstein, R. J. (2012). A practical guide to calculating Cohen’s f2, a measure of local effect size, from PROC MIXED. Frontiers in psychology, 3, 111-116. doi: 10.3389/fpsyg.2012.00111 Stone, M. (1974). Cross-validatory choice and assessment of statistical predictions. Journal of the Royal Statistical Society. Series B (Methodological), 36, 111 -147. doi: 10.2307/2984809 Tabachnick, B. G., & Fidell, L. S. (2007). Using multivariate statistics (5th ed.). Boston, MA: Allyn & Bacon/Pearson Education. Teo, T. (2009). Examining the relationship between student teachers’ self- efficacy beliefs and their intended uses of technology for teaching: A structural equation modeling approach. The Turkish Online Journal of Educational Technology, 8(4), pp 7–16. Tyson, S (2007), Human Resources Strategy a process for managing the contribution of them to Organizational performance Schuler’s; RS Jackson Woodward, N. (2000), Benefit from Adopting HR Magazine, December, Yai Degree Benefits to business week journal. Yavuz, N. (2004). ‘The Use of Non-Monetary Incentives as a Motivational Tool: A Survey Study in a Public Organization in Turkey,’ Unpublished Post-Graduate Dissertation, Ankara:15:3, 181-187.

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SKILL ACQUISITIONS: A SOLUTION TO YOUTH RESTIVENESS IN BIDA METROPOLIS

HASSAN, ZAINAB, TSADO WINIFRED WODU, ELIZABETH M YISA, FATIMA BINT HASSAN Niger State Polytechnic, Zungeru, Bida Campus, Department of Business and Management Studies, Niger State polytechnic, zungeru, Bida Campus

Abstract Youth restiveness is one of the major challenges facing Nigeria as a country. In order to address these problems, there is the need for the government, organizations, and individuals to promote and encourage skill acquisition. This study was limited to Bida Local Government Area of Niger State. The study aimed at discussing skills acqusition as perceived solution to youth restiveness. It also Identify other related possible ways of reducing youth restiveness. The target population of the study was 100 but 99 responded. The survey research method was adopted for the study while chi- square were used to test the study hypotheses. The study review that lack of skill acquisition leads to increase in the occurrence of acts of violence and lawlessness such as drugs use and abuse, alcoholism, hostage-taking of prominent citizens , arms insurgence, cultism, etc. In other to solve these problems, some recommendations were made which include implementation of policies that support skills acquisition, promoting vocational training, promoting small scale businesses, provision of loan facilities among others.

Keywords: Skill Acquisition, Restiveness, Entrepreneur.

Introduction Youth restiveness has become a popular issue in Nigeria particularly in the recent time. Since the inception of the current democratic dispensation, the 146 | P a g e

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country has witnessed series of violence and violation of human rights which were perpetrated by restive youths in different parts of the country, in some cases the act has led to colossal loss of life and properties. It is a fundamental truth that no society thrives and progresses significantly with a restive population of youths who are prone to violence, unrest, wanton destruction and involvement in social vices. Youth restiveness in Nigeria has been a prominent issue in recent times, though various forms of youth restiveness that are economically, politically, or religiously motivated have existed for a long time. Elegbeleye (2005) vividly captures the rector of federal polytechnic cases of youth restiveness in Bida, Niger State. Youths are significant members of the society whose contributions help to effect radical and rapid developments. According to Federal Government of Nigeria, youth is defined as a people aged 18 – 35 while the World Bank, as cited in Adewuyi, (2008) defined youth as people between ages 18 and 24 years. It is a stage in life of the individual when the society where he/she functions ceases to regard the person as a child and yet has not considered the person as an adult. Youth constitutes a large proportion of the population across the globe. Train youths with self-sustaining capacities predispose the youth to all forms of restiveness ranging from drug use and drug abuse, alcoholic, gangsterism, school dropouts, ethnic violence, prostitution etc. Youth restiveness is an unwanted act behaviour or attitude being exhibited by youths in the society. It is a combination of actions and conduct that constitute unwholesome socially, unacceptable activities engaged by youths in any country. Since youth have natural endowment of raw energy which results to bubbling in spirit, having high hopes, big dreams, aspirations and ideas of what the future owes them, they are not naturally calm often but become anxious and anticipate to know what present situation has to offer in order to fast track the future. Thus, a little disappointment or even misconception on their part, in relation to the fulfillment of aspiration, usually triggers the standby propensity for violence and more often than not turns to restiveness.

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Restiveness therefore, is a combination of actions, conduct and behaviour which constitute unwholesome and socially unacceptable response to situations by youths in the society. Such actions could be in form of sustained protestations embarked upon to enforce a desired outcome on a constituted authority by an organized body of youths. Youth restiveness has become a device used by young persons to obtain what they want from relevant authority; the act is usually perpetrated in unlawful manners. It is a deliberate instrument of organized response to perceived grievances that have an increasing potency and capacity for destruction. Ukwueze (2013) described restiveness as a function of one’s emotional and temperamental reactions to events or situations, due to wrong cognitive perception, appraisal and interpretation of such events with resultant state of nervousness, restlessness, uneasiness, obstinacy and uncontrollable behaviour. Thus, restiveness encompasses all forms of youth activism that pose or have the tendency of posing threat to the orderliness, life and property because it is marked by violence and disruption of lawful activities. In addition, the proliferation of youth association such as students’ union and other legal groups and the existence of illegal associations such as cults have turned learning institutions to danger haven where murder, looting, arson and violation of human rights are perpetrated through youth restiveness. A number of reasons have been identified as being the causes of youth restiveness. Anasi (2010) identified the following reasons as being responsible for youth restiveness: bad governance: inadequate educational opportunities and resources; unemployment; poverty, lack of basic infrastructures; and inadequate communication flow. A law-abiding youth creates a bright hope for any nation because he/she is regarded and perceived as a potential leader who will not only sustain the tradition but also bring innovation to the society. However, it deserves mentioning that the definition of youth varies across individuals and societies. Young people all over the world are a vital and important segment of the society in which they live. A disciplined, focused, and

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law-abiding youth can create a bright future for any state and nation. Conversely, a lawless, indulgent, and violent youth is a great threat to a nation's peace and security. Skill acquisition play a crucial role in inculcating positive values, attitudes, and behaviours that promote harmonious relationships. The degree to which youth restiveness constitutes a threat to national security has become a worrisome phenomenon that constantly attracts the attention of Nigerians and international communities. Thus, different groups of individuals, corporate bodies, agencies, and professional institutions are saddled with the responsibility of proffering solutions to the spate of youth restiveness.

Problem Youth restiveness has become one of the greatest security challenges confronting Nigeria particularly in the 21st century. The menace has posed serious threats to the human development across different parts of the country with significant effect on the life, properties and corporate existence of the country. Anywhere youth restiveness occurs there is always colossal loss, pains and agony. Elegbeleye (2005) reported that youth restiveness manifests criminal behaviours such as looting, robbery attack, violent demonstrations and tribal conflicts. Babayeju (2015) found that there is no difference in the expression of students of tertiary institutions on causes of youth unrest based on residential status, gender, religion and institution . The present study therefore investigated perceived skill acquisition as a solution to youth restiveness in Bida metropolis of Niger State.

Research Questions 1. What are the effect of youth restiveness on the youth of Bida? 2. Skills acquisition constitutes a significant solution to youth restiveness? 3. What are other possible ways of reducing youth restiveness?

Objectives of the Study The general aim of this paper is to identify the relevance of skill acquisition to youth restiveness. Other specific objectives includes; 149 | P a g e

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1. Identify the effects of youth restiveness on the youth of Bida 2. Identify other possible ways of reducing youth restiveness

Statement of Hypotheses: The following null hypotheses were tested in this study.

H01. There is no significant effect of youth restiveness on the youth of Bida

H02. Skills acquisition is not a solution to youth restiveness

H03. There are no significant ways of reducing youth restiveness.

Literature Review In a country where youth restiveness increase on daily basis, it leads to high rate of crimes such as robbery, armed robbery, alcoholism, human trafficking, child abuse, child labour, hostilities among others. There is a need for implementation of skills acquisition in the curriculum of primary, secondary and tertiary levels of education. This is based on the fact that many people don't get to finish the primary education while others end their educational careers at the secondary level. Those that succeed in attending higher institutions are always faced with issues of restiveness. Therefore the need for skills acquisition all levels of education would equip the youths with a desire knowledge, attitude and skills to be self employed and dependent. Youths who are gainfully employed rarely participate in antisocial activities. In addition to providing job opportunities, entrepreneur create an environment for acquiring skills and career development. Entrepreneurial skill will help reduce the number of idle, frustrated youth who roam the streets aimlessly, and who might at the least provocation take recourse to violence. Elegbeleye (2005) defined youth restiveness as “a sustained protestation embarked upon to enforce desired outcome from a constituted authority by an organized body of youths.” It is marked by violence and disruption of lawful activities.

Relevance of Youth

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Youth occupy a prominent place in any society. Apart from being the owners and leaders of tomorrow, they outnumber the middle-aged and the aged Onyekpe, (2007). Besides numerical superiority, youth have energy and ideas that are society's great potentials. The National Youth Development Policy (2001, p.1) asserts that: Youth are the foundation of a society. Their energies, inventiveness, character and orientation define the pace of development and security of a nation. Through their creative talents and labour power, a nation makes giant strides in economic development and socio-political attainments. In their dreams and hopes, a nation founds her motivation; on their energies, she builds her vitality and purpose. And because of their dreams and aspirations, the future of a nation is assured. The statement above acknowledges the role of the youth in the peace and security of a nation. As the most active segment of any society, youth are the major determiners of peace and stability of a nation Ozohu-Sulaiman,( 2006). Conversely, the degree of disorderliness and instability in society is also determined in part by youth. Peace is a precursor of development. The absence of peace means that no meaningful development can take place. The National Youth Policy (2001) affirms that the extent of the youth's “responsible conduct and roles in society is positively correlated with the development of their country”.

Causes of Youth Restiveness in Nigeria A number of studies have identified factors responsible for youth restiveness. Elegbeleye (2005) identifies three major factors: the peer motivated excitement of being a student, the jingoistic pursuit of patriotic ideas, and perceived victimization arising from economic exploitation, as the reasons for incessant youth restiveness. This implies that a catalogue of closely-related factors are responsible for youth restiveness.

Bad Governance Good governance is required for the growth and development of any nation. Unfortunately, in Nigeria bad governance is more common than

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good, resulting in disjointed development. The World Bank (1992) identifies the main characteristics of bad governance to include: failure to properly distinguish between what is public and what is private, leading to private appropriation of otherwise public resources; inability to establish a predictable frame work for law and government behaviour in a manner conducive to development, or arbitrariness in the application of laws and rules; excessive rules, regulations, licensing requirement and so forth which impede the functioning of markets and encourage rent-seeking; priorities that are inconsistent with development, thereby resulting in misallocation of national resources; and exceedingly narrow base for, or non-transparent, decision making. The worse still, the meager allocation are often diverted by government officials to their private accounts and projects. Thus, youth are restive and agitated when they perceive that resources meant for them are being wasted by those in authority.

Unemployment Unemployment is a hydra-headed monster which exists among the youth in all developing countries. Experts believe that the number of jobless youth is twice as high as official estimate. Zakaria (2006) believes that “the rising tide of unemployment and the fear of a bleak future among the youth in African countries have made them vulnerable to the manipulations of agents' provocateurs”. These include aggrieved politicians, religious demagogues, and greedy multinationals that employ these youths to achieve their selfish ambitions. Zakaria (2006) strongly believes that the absence of job opportunities in developing countries is responsible for youth restiveness with disastrous consequences.

Poverty Youths are one of the greatest assets that any nation can have, they are regarded as the future leaders, and they are referred to as the greatest investments for a country's development. They serve as a good measure

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to which a country can reproduce as well as sustain itself (National Youth Policy, 2011). Due to poverty, many youths in Bida have taken to hawking sachet water,cakes,handkerchiefs,belts,groundnut, etc on the streets just to make out a living.” According to Philomena (2002), poverty is found all over the world. It is a symptom or partly a manifestation of underdevelopment. It affects many aspects of human conditions, hence needs a multi-dimensional approach. Absolute poverty relates to the inability to provide for physical, subsistence such as food, shelter, clothing, potable water, health services, basic education, public transportation and work to the extent of being incapable of protecting human dignity (kwankwenda, 2000). Aworawo (2000) and Zakaria (2006) agreed that there is a link among poverty, loss of livelihood, inequality, and youth restiveness as evidenced by the numerous violent protests against the wielders of power in Bida.

Inadequate Educational Opportunities and Resources Quality education has a direct bearing on national prestige, greatness, and cohesion. The knowledge and skills that young people acquire help determine their degree of patriotism and contribution to national integration and progress. Between 2000 and 2004, about 30 percent of Nigerian youth between 10 and 24 were not enrolled in secondary school (Population Reference Bureau, 2006). Perhaps the prohibitive cost of acquiring education is responsible. The aftereffect of this situation is that thousands of young people roam the streets in cities in Nigeria. Those who manage to complete secondary school have no opportunities for tertiary education. Having being denied the chance to reach their potential, they are disorientated and readily available for antisocial actions (Onyekpe, 2007). Worse still, some who struggle to enroll in various educational institutions drop out due to lack of basic learning facilities. This situation is attributable to the dwindling resources of government at both federal and state levels as a result of an economic meltdown.

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Youth and Anti-Social Behaviour Anti-social behaviour is behaviour that lacks consideration for others and may cause damages to the society, whether intentionally or through negligence. This behaviour opposed to pro-social behaviour which is behaviour that helps or benefits the society. Anti-social behaviour is labelled as such when it is deemed contrary to prevailing norms for social conduct (Berger,2005). Some of the anti-social behaviour found in Bida includes drug use and drug abuse, alcoholism, prostitution, forced early marriage, rape, thuggery, armed robbery, theft, bullying verbal abuse, hooliganism among others Hele, (2012). Best (2008) further explains that increase in criminal activities and theft of livestock, atrocities such as rape and gang rape, abduction of women and children, forced marriage and sex slavery, brutal slaughter method, adopted by ethnic and religious militias, teenage pregnancy and prostitution among others.

Lack of Basic Infrastructure. Most areas in Bida have no access to potable water, health facilities, electricity, communication facilities, industries and commercial facilities, etc. Behind social unrest and youth restiveness in the state is the agitation for equitable distribution of resources.

Inadequate Communication and information Communication creates room for sharing information. It helps people express their thoughts and feelings, clarify problems, and consider alternative ways of coping or adapting to their situation. Such sharing promotes social cohesion. People must have access to communication facilities, to communicate with the people making the decisions that affect them. Sadly, rarely do people in Bida of Niger state participate in decision-making processes on issues that affect their lives. Hassan (2019), in their study of Niger state, revealed that inadequate communication is one factor responsible for youth restiveness in the area. information is necessary for people to be liberated from the

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shackles of ignorance, misconceptions, economic stagnation, social unrest, and political instability. According to Onyekpe (2007), should be geared towards: creating the awareness that the future belongs to them and that it must not be destroyed by them; sensitizing them to the fact the future and its nature depend on the decisions and choices they make; creating in them a sense of history, especially of the noble and heroic contributions of the youth in the past to the development of Bida of Niger state, in comparison with the ignoble role of many youth today; sensitizing them to embrace the rule of law and democratic ideals; liberating them psychologically and mentally from the control of self-seeking business and political elites.

Skill acquisition / Vocational Training The role of skill acquisition in economic development is well recognised. Countries like China, japan and India among others achieved industrialization through the promotion of small scale industries and vocational training among others. According to Hassan (2003), the small industrialisation sector offers the opportunity for the development of indigenous entrepreneurship, skill acquisition, vocational training, domestic savings, utilization of local resources, modernisation of the rural sector, and creation of self-reliance. Therefore it is of utmost importance for the Nigerian government to promote skill acquisation. Echu (2004), contributed that in Nigeria, most of the vocational and entrepreneurial unit did not employ paid workers. They are found in a wide variety of sectors such as weaving, factoring, shoe-making, corn milling carpentry, masonry, plumbing, tilling, block- making, painting, auto-mechanics. Leather works, shoe making ceramics, fabrication, welding, GSM phone repairs, productions of polyethylene bags, computer repairs, table water production; soap making, electrical works, shoes, car, machine (equipment) vulcanizing, agriculture and agro processing among others. etc. These are mostly marketed through petty traders. In an attempt to promote variety of skills acquisition. “This is to

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equip the fresh graduates with self sustaining skills that would enable them participate fully in the nation's economy.

Methodology Population and simple size The population of this study is 100, which comprising youths in Bida metropolis. The sample size was determined using the youths in the population of study, they were about 3,000, out of which 100 respondents were randomly selected from Bida metropolis.

Sampling Technique The simple random sampling technique was used to ensure that every youth of the population has an equal chance of being selected into the sample.

Instrument of Data Collection The study used a descriptive survey design. The purpose of using descriptive surveys was to collect detailed and factual information that describe an existing phenomenon. Primary and secondary source of data collection were used. Data were collected based on the concepts defined in the research model and hypotheses tested. This study is a descriptive survey because it adopted the use of questionnaire using five point likert scale.

METHOD OF DATA ANALYSIS Having gathered the data through the administration of questionnaire, the collected data were coded, tabulated and analyzed according to the research question and hypothesis. The data collected were analyzed with percentages and chi-square. The percentages were used to analyze the data collected so as to make them more understandable to the readers while chi-square was used to test the hypothesis based on its scientific nature. The formula for the chi-square used in this study is as follows; X2=∑(O-E)/E

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X2= Sum of O=observed frequency E= expected frequency 0.05(5%) level of significance.

Decision Rule: if the computed value of x2 test statistics exceeds the critical tabulated value of x2 for (r-1)(c-1) degree of freedom, reject null hypothesis or otherwise accept

Results and Discussion The study had a population of 3,000 out of which a sample size of 100 was drawn using youths in bida metropolis . Instrument used for data collection was primarily questionnaire and was administered to the 100 respondents out of which 99 were dully completed and returned. Socio-demographic characteristics of the respondents analyzed are gender, age, marital status and educational qualification. The detail is presented in table 1

Characteristics Frequency Percentage (%) Gender Male 69 69.7 Female 30 30.30 Total 99 100 Age Under30 70 70.71 30-40years 25 25.25 41-50years 3 3.03 51-above 1 1.01 Total 99 100 Marital status Single 65 65.66 Married 34 34.34

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Total 100 Education qualification 29 No formal education 30 29.29 Primary education 31 30.30 Secondary education 9 31.31 Tertiary education 99 9.09 Total 100 Source: field survey, 2019

Table 1 show that 69.7% of the respondents are male while 30.30% are female. This implies that majority of youths are male. Table further shows that 70.71% of the respondents are under 30years of age, 25.25% are between 30-40 years, 3.03% are between 41-50 years while 1.01 is 51years-above. this indicates that majority of youths are within the productive age bracket of under30years. Table also show that 65.66% of the respondents are single while 34.34% are married. This implies that majority of youths are single. The result on educational qualification shows that 29.29% of the respondents are holders of no formal education, 30.30% are primary certificate holder, 31.31% are secondary holder and 9.09% are tertiary holders. This shows that youths are literates who can read and write and therefore, have ability to information and technology.

Test of Hypothesis Here the hypothesis formulated were tested one after the other. The test was conducted using 0.05 significant level and (c-1) (r-1) degree of freedom.

Hypothesis I

H01: there is no significant effects of youth restiveness on the youth of Bida

Ha1: There is significant effects of youth restiveness on the youth of Bida

Data for the test of hypothesis H01 were generated using information in tables 8, 9, 10, 11 and 12 and the chi-square value is presented in table 17

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Table 17: chi-square value for H01 O E O-E (O-E)2 (0-E)2/E 118 99 19 361 3.65 131 99 32s 1024 10.34 108 99 9 81 0.82 48 99 -51 2601 26.27 90 99 -9 81 0.82 41.9 Source: field survey, 2019 X2= 41.9 (r-1)(c-1) (5-1)(4-1) (4)(3) 12degree of freedom The critical value x2 0.05 = 21.03 from chi-square table at 12 degree of freedom.

Decision rule: Since the calculated x2 value of 41.9 is greater than the critical value which is 21.03, we reject the null hypothesis (HO1) and accept the alternate hypothesis Ha1 which state that There is significant effects of youth restiveness on the youth of Bida.

Hypothesis II

H02. Skills acquisition constitutes significant solution to youth restiveness

Ha2. Skills acquisition do not constitute any significant solution to youth restiveness

Data for the test of hypothesis H02 were generated using information in tables 13,14,15,16 and 17 and the chi-square value is presented in table 18

Table 18: chi-square value for H02 O E O-E (O-E)2 (0-E)2/E 134 99 35 1225 12.37

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132 99 33 1089 11 49 99 -50 2500 25.25 83 99 -17 289 2.92 98 99 -1 1 0.01 51.55 Source: field survey, 2019 X2= 41.9 (r-1)(c-1) (5-1)(4-1) (4)(3) 12degree of freedom The critical value x2 0.05S = 21.03 from chi-square table at 12 degree of freedom.

Decision rule: Since the calculated x2 value of 51.55 is greater than the critical value which is 21.03, we reject the null hypothesis (HO1) and accept the alternate hypothesis Ha1 which state that skills acquisition constitutes significant solution to youth restiveness.

Hypothesis III

H03. There are no significant ways of reducing youth restiveness.

Ha3. There significant ways of reducing youth restiveness.

Data for the test of hypothesis H03 were generated using information in tables 18,19,20,21 and 22 and the chi-square value is presented in table 19

Table 19: chi-square value for H03 O E O-E (O-E)2 (0-E)2/E 131 99 32 1024 10.34 329 99 230 52900 534.4 11 99 -88 7744 78.2 13 99 -86 7396 74.7 11 99 -88 7744 78.2 775.74 160 | P a g e

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Source: field survey, 2019 X2= 41.9 (r-1)(c-1) (5-1)(4-1) (4)(3) 12degree of freedom The critical value x2 0.05 = 21.03 from chi-square table at 12 degree of freedom.

Decision rule: Since the calculated x2 value of 775.74 is greater than the critical value which is 21.03, we reject the null hypothesis (HO3) and accept the alternate hypothesis Ha3 which state that there are significant ways of reducing youth restiveness.

Summary, Conclusion and Recommendation Conclusion This paper has captured the place of skill acquisition as a significant solution to youth restiveness. Basically, it is a fact that youth restiveness have bedevilled Niger state. This has affected the state so bad that most of these youths are forced to adopt other measures for survival. These measures are destructive, in-human and unacceptable by the lager society. These include drug use and drug abuse, prostitution, breaking down of law and order among others. The future belongs to youth who make productive use of skill acquisition and creativity. With adequate creativity and innovation, Bida youth can achieve their potentials and participate actively in local and international affairs in a manner that eschews violence. In conclusion, the findings from this work becomes imperative and necessary for both individuals, families, groups, communities, other relevant bodies and the government to work together in order to promote entrepreneurship, skills acquisition, vocational training among others in order to cope with these epidemic and the level of youth restiveness in

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Bida metropolis will be drastically reduced if they have access to adequate information.

Recommendations The following recommendations are based on the findings, which when adopted would reduce the problems identified • The government should formulate and implement policies that guide and support skill acquisition for youths. • Skills acquisition should be promoted in both primary and higher institutions of learning. • Apprenticeship should be encouraged and sustained to train youth to avoid idlenesss. • The government should promote and sustain small scale businesses by providing loans to youths, to promote entrepreneurial spirit among citizens. • The government should formulate and implement policies that support the inclusion of entrepreneurship education in schools and institutions.

References Anasi, S.N.I. (2010). Curbing youth restiveness in Nigeria: The role of information and libraries. Retrieved July 15, 2015 from uidaho.edu Adewuyi, T.D.O. (2008). Utilisation of selected counselling theories for youth peer relationship improvement. The Journal of Guidance and Counselling, 9(1), 5-21. Amorawo, D. (2000). Mal-distribution and poverty as factors in the crisis of the Nigeria state. The Constitution: A Journal of Constitutional Development 1 (2): 1-13.

Babayeju, D.K. (2015). Causes of youth unrest as expressed by students of tertiary institutions in Ilorin metropolis. Unpublished B.Ed project, University of Ilorin.

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Best, S. G. (2008), “icts in the Southern Zone of Plateau State. Causes and Effects of Con” Nigeria, Ibadan: John Archer Publishers. Chiapaka, I., J., (2012), “The Tide News.” online. Retrieved Friday July, 19, 2013. www.thetidenwesoline.com. Towards curbing youth restiveness

Elegbeleye, O.S. (2005). Recreational facilities in schools: A panacea for youths' restiveness. Journal of Human Ecology 18 (2): 93-98. Federal Government of Nigeria (2001). National youth policy. Retrieved July 17, 2010 from www.thepresidency.gov

Hele. H. J. (2012), “ict on Anti-social Behaviour of youths in Jos Impact of Jos Con North LGA of Plateau State.” Being is Research Thesis Submitted to Department of Sociology, University of Jos Unpublished. Okorie, J. U. (2001). “Vocational Industrial Education.” Bauchi: Leagues of Researchers in Nigeria. Philomena, J., O., (2002), “Conceptual Issues in Poverty Alleviation in Nigeria: A sociological perspective.” Nigerian Journal of Social work vol.6 The National Teachers Institute Kaduna (PDE 103). Ndagana, B.L., & Ogunrombi, S.A. (2006). Blazing the trial in poverty alleviation among students in Nigeria: The Federal University of Technology, Yola. Library Philosophy and Practice 9 (1). Available: Ofem, N.I., & Ajayi A.R. (2008). Effects of youth empowerment strategies on conflict resolutions in the Niger Delta of Nigeria: Evidence from Cross River State. Journal of Agriculture and Rural Development 6 (1,2): 139-146. Omotayo, B.O. (2005). Women and conflict in the new information age: Virtual libraries to the rescue. A paper presented at the world Library and Information Congress: 71st IFLA General Conference and Council August 14th, 2005, Oslo, Norway. Onyekpe, N. (2007). Managing youth at election. The Constitution: A Journal of Constitutional Development 7 (1): 76-87.

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Ozohu-Suleiman, A. (2006). The Nigerian youth in contemporary political development: Relevance, challenges, and role expectation. The Constitution: A Journal of Constitutional Development 6 (4): 97111. Ukwueze, A.C. (2013). Impact of rational emotive behaviour therapy on students’ irrational thoughts and feelings: A panacea for youth restiveness and terrorism in Nigeria. The Counsellor 32 (1 & 2). Zakaria, Y. (2006). Youth, conflict, security, and development Available:http://www.realityofaid.org/roareport.php

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AN ASSESSMENT ON THE ROLE OF COMPUTER AIDED AUDIT TECHNIQUES (CAAT) ON FRAUD DETECTION IN DEPOSIT MONEY BANKS (A CASE STUDY OF ACCESS BANK PLC BAUCHI BRANCH).

AYANWUYI JOHNSON1 FARAYOLA, AYO ADE2 EMMANUEL UAREME IRIABIJE3 EIKHOMUN EHI DANIEL4 Department Of Accountancy, Federal Polytechnic Bauchi.

ABSTRACT This paper focused on An Assessment of the role of Computer Aided Audit Techniques (CAATs) on fraud detection in Deposit Money Banks (A case study of Access Bank Plc Bauchi Branch). The objective of the paper is to determine the possible effect of Computer Aided Audit Techniques(CAATs) in Money Deposit Banks. Data were obtained through primary and secondary sources, the primary sources was through the administration of questionnaires. The study adopted the Representative Sampling Technique. The study revealed that Computer Aided Audit Techniques(CAATs) has contributed a lot to Deposit Money Banks operations and has made Auditing work easier than manual auditing process. Therefore CAATs plays a remarkable role in fraud detection in Deposit Money Banks. The study concluded that CAATs is a strong instrument of Deposit Money Banks in achieving the goals and objectives of such Banks. It was recommended that Deposit Money Banks should apply CAATs for effective internal control and also that the Central Bank of Nigeria(CBN) should make the application of CAATs mandatory for all Deposit Money Banks for effective monitoring and Auditing of transactions.

Keywords: Computer, Audit, Techniques, Deposit Money Banks, Fraud

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INTRODUCTION Background to the Study Computer Aided Audit Technique (CAAT) is one of the recently identified technological innovations whose dimension does not differ entirely from the manual approach to auditing. It is one of the technological innovations within the electronic processing of data in order to accommodate changes and appreciate new technology. In retrospect, Hinson (2005) opined that the computer environment was seen as a special sub division of the auditing discipline. The idea that auditing be applied to electronic Data processing (EDP) situation is as crucial as it is not fully developed. Yet some idea on internal control procedure and auditing methods have been established and frequently found in examinations. It is generally agreed that whether auditing is executed in a computer environment or manually, it has to be done in accordance with the auditing standard and with the guidance of auditing guidelines. This therefore suffices to say that the daily work of an auditor or auditing in whatever case remains the same. The basic approach to an audit is the same to all audits. Yet there are some features of computerized systems which make it necessary to change some of the audit approaches, as a result, this called for the study, an “assessment on the role of Computer Aided Audit Techniques CAAT on fraud detection in Deposit Money Banks”

Statement of the Research Problem The existence of fraud could be found in all cycles of life and evident enough that it increases day in day out. Since it is found in all organizations, the money deposits (commercial Banks) are not exempted. The fact also that computer Aided Audit Technique (CAAT) operates automatically, in this sense, any programme with an error with the personnel being aware of such an error would be catastrophic. Also, the application and installation of the computer Aided Audit Technique (CAAT) is cost efficient and in as much as more technical and better off, it is not completely ideal or perfect as there could be human

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inefficiencies that could lead to inefficient and unproductive effect on the system.

Research Question. This study intends to address or to answer the following questions: 1. What are the possible effects of Computer Aided Audit Technique (CAAT) in Deposit Money Banks? 2. How can Computer Aided Audit Technique (CAAT) be applied? 3. What are the benefits of Computer Aided Audit Technique (CAAT) in Deposit Money Banks?

Objective of the Study This study tends to provided solution to the daunting challenges of fraud and irregularities in the commercial banking operation using the Computer Aided Audit Technique. This study tends to achieve the following objectives: 1. To determine the possible effect of Computer Aided Audit Techniques (CAAT) in Deposit Money Banks. 2. To assess how Computer Aided Audit Techniques (CAAT) can be applied in Deposit Money Banks. 3. To examine the benefit of Computer Aided Audit Technique (CAATs)

Statement of Research Hypothesis In order to attain the maximum goals and objectives for which this research is intended, Hypothesis are developed. Hence the following hypothesis will serve as a yardstick or basis by which this study will be carried out.

Hypothesis 1. HO: Computer Aided Audit Techniques (CAAT) has no possible effect on Deposit Money Banks.

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2. HO: Computer Aided Audit Techniques (CAATs) is not necessarily applied on Deposit Money Banks. 3. HO: Computer Aided Audit Techniques (CAAT) has no benefit on Deposit Money Banks.

Significance of the Study The motivating factor behind this research is its relative importance to the idea that the Computer Aided Audit Technique in prevention of fraud is fast replacing the manual method. Moreover, computer Audit application has become a crucial subject of debate.

Theoretical significance This study is of great significance as it will contribute immensely to the academic field of study by providing a basis and material from which student can carry out research on this or other related topics, thereby contributing to knowledge in general. Other interested parties like the public, other private organisations and the government can also benefit from this research.

Practical significance. Computer Aided Audit Technique CAAT is of great significance to a great number of parties and entities The application of Computer Aided Audit Technique (CAAT) in banking is not only good and effective in fraud detection but it ensures professional proficiency in the accounts and record keeping of Deposit Money Banks. The following are the practical significance of CAATs to different parties. ➢ To investors i. Improved credibility of the financial statement should result from the various activities of the audit committee, particularly from their impartial review of the financial statements, and their discussions of significant issues with the external auditors. ➢ To the General public

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ii. A strong control environment will be encouraged by the application of CAATs in the banking sector. And the fact that the internal audit function would report to the management of the company rather than to the finance director as is currently the situation strengthens their independence.

➢ To large companies iii. This improved credibility and control environment could be important for large and growing private companies.

Scope of the study This study looks at the computerised aspect and operation of the banking system and it will look at how Computer Aided Audit Technique (CAAT) helps in detection of fraud in commercial banks; and precisely, Access Bank Bauchi.

LITERATURE REVIEW Computer Assisted Audit Techniques (CAAT) Computer aided audit techniques (CAATs) is a growing field within the financial audit profession in Nigeria. CAATs are computer tools and techniques that an auditor (external or internal) uses as part of their audit procedure to process data of audit significance contained in an entity’s information systems (Singleton, etal.,2006). CAAT is the process of using computers to automate or simplify the audit process. Computer technology gives auditors a new set of techniques for examining the automated business environment. As early as 1982, CAATs was a powerful audit tool for detecting financial errors. It was in recent years, that analytical techniques became not only more powerful but also more widely used by auditors. Audit software allows its user to obtain a quick overview of operations of a business and to drill down into details of specific area of interest; it highlights individual transactions that contain features associated with fraudulent activities. CAAT is the practice of analyzing large volumes of data looking for anomalies. Using CAATs, the auditor will

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extract every transaction a business unit performed during the period reviewed. The auditor will then test that data to determine if there are any problems in the data. With audit software, millions of files can be examined, data’s collected can be used to identify, analyze and comparisons can bemade between different locations. Computerized techniques and interactive software can help auditors focus their efforts on areas of greatest risk. Auditors can choose to exclude low risk transactions from their review and focus on those transactions that contain a higher probability of fraud. Audit software also provides auditors with the ability to extract information from several data’s files with different database management systems, in order to search for underlying patterns or relationships among data (Coderre, 1999). Examples of CAATs include generalized audit software, custom audit software, test data, parallel simulation, and integrated test facility. Hinson(2005) postulates that computer aided audit techniques (CAATs) are tools to help auditors select, gather, analyze and report audit findings. Many computer applications have useful built-in area of audit facilities, Microsoft excel, for example has function for tracing dependencies between cells which comprises of rows and columns for sorting and computing numerical data ranges, etc. data base programs typically have custom reporting facilities and sometimes includes pro-figured reports intended for the auditors. Specialized CAATs tools, such as ACL (audit control language) and IDE (interactive data extracting and analysis) include libraries of pre-written queries to such questions on data set as 1. What are the top 100% transactions by value last April? 2. How many charges were made to the customers detail files during the previous year? Etc. mill champ (1996).

CAATs are wonderful for asking for asking bossier questions that ordinary system users, managers, analyzers and developers have probably never considered, some of which can lead to the detection of fraud or confirmation that control weakness have been exploited. Williams (2001)

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CAAT’s are computer programs and data that the auditor uses as part of the audit procedures to process data of audit significance contained in a client computer information system (CIS) During the course of an audit, the auditor is to obtain sufficient, relevant, and useful evidence to evidence. In many instances, the computer can be used as an aid in obtaining audit evidence. CAATs are ‘techniques that use the computer as an audit tool’ which are utilized in application of auditing procedures. (Braun and Davis, 2003; IAASB, 2003; ISACA, 1998). CAATs include tools that range from basic word processing to expert systems. Computerized audit techniques range from procedures as simple as listing the data in a given file to the use of Artificial Intelligence tools to predict financial failure or financial statement structure (Debresceny, etal.,2004). Arguably the most widely deployed class of CAATs is Generalized Audit Software (GAS). These packages are computer programs that contain general modules to read existing computer files and perform sophisticated manipulations of data contained in the files to accomplish audit tasks. They have a user that captures users’ audit requirements and translates those user instructions or queries into program code. This is undertaken by interrogating the client’s file systems or database and performing the necessary program steps (Debreceny etal., 2004). CAATs are important tools for the auditor in gathering information from the organizational environment. They are referred to all techniques that make use of computer and computer programs. It consists primarily of test data packs and computer programs. CAATs are computer tools that extract and analyze data from computer applications (Braun and Davis, 2003). They enable auditors to test 100 percent of the population rather than a sample, thereby increasing the reliability of conclusions based on that test (AICPA, 2001). Recent audit standards encourage auditors to adopt CAATs to improve audit efficiency and effectiveness (AICPA, 2006)

Types of CAAT 1. Audit software: comprises computer programs used for audit purposes to process data audit significance from the client accounting system.

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It is used by the auditor to examine the entity computer files and may be used during both test of control and substantive testing of transactions and balances as the program can scrutinize large volume of data and extract information, leaving skilled manual resources to concentrate upon the investigation of the results.

Types of audit programs are: - Generalized packaged programs: however they need to be tailored to each specific case by defining the format of the files to be interrogated by specifying the parameters required and the form of that output. - Purpose written programs: these are specially written programs where it is not possible to adapt a package program because of the type of machine, processing or file organization used. - Utility programs used by the client: used by the entity to perform data processing functions such as sorting and printing of files e.g. excel.

The uses of audit software are: -Calculation checks: e.g. program gives the total amount of individual entries in purchases day book in a particular period. Auditor then agrees this total amount to the amount posted in purchases ledger control a/c. -Detecting system violation rule: e.g. program checks that no customer has balance above specified credit limit. -Detecting unreasonable items: programs checks that no customer has discount of 50% or sales ledger balance (i.e. debtors balance) is more than the amount of sales made to that customer. -New calculation and analysis: e.g. statistical analysis of inventory movements to identify slow moving items. -Selecting items for audit testing: e.g. obtaining a stratified sample of sales ledger balances to be used as a basis for a circularization of debtors. -Completeness checks: e.g. checking continuity of sales invoices to ensure that they are all accounted for.

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The concept of audit The international auditing guidelines used to define auditing as “An audit is the independent examination of financial statement or related information of an entity, whether profit oriented or not and irrespective of its size, or legal form when such an examination is concluded with a view to express opinion thereon”. This definition comprises on: 1. Independent examination: it means that auditor must be independent and he has all the written or express powers to examine any document for evaluation. 2. Financial statement: Basically, auditor evaluates the company on the basis of financial statement. Like he check out whether the financial statement is in accordance with local laws (company laws, tax laws, etc.) and international laws (IFRS, IAS) etc.

Audit Classifications (Types of Audit) John (2002), There are many types of audits but for the purpose of this research work few of such types are pointed out. a. The statutory audit b. Privet audit c. Financial statement audit d. Compliance audit e. Operational audit f. Management audit g. Internal and external audit h. System bred audit

Scope of Computer Aided Audit Technique (CAAT) Hinson (2005) opined that the scope of a particular computer audit is normally defined by the scoping document produced near the start of the assignment, typically, it relates to certain risk of concern of management that centre on the computer or telecommunication system.

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Edward (2003) postulates that, the scope of computer audit as a function is hard to define as it depends on the size and makeup of the audit team. In large audit teams, computer audit may have a number of dedicated and specialised staff solely responsible for technology auditing but more often, the computer auditors are expected to contribute to the other types of audit and vice-versa. Moreover, through the contribution of some factors, Hinson (2005) is able to define the scope of the computer audit where he said; 1. The remit of department (for internal audit) of the contract (external audit) in relation to other review and control functions e.g. Information security, Risk management, legal, etc. 2. The audit plan for the period usually documents the high risk topics the auditors are likely to cover. 3. State of relationship with clients function where some departments refer to formal definition audit friendly folk tend to be more chilled out to the extent that auditors may even on occasion be called upon to perform conventional internal case consultancy roles in which case computer audit resources are primarily directed towards high risk situation (so-called) business critical and application may be reviewed annually although low-risk area may be audited on a less frequent basis.

The internal and external computer audit Thomas (2005) differentiate between internal or external computer audit by saying, computer auditors working for an external audit company are typically concerned with integrity of the client core financial data and accounting system (general ledger etc.) and other important systems involved in generating and processing financial records. Internal auditors on the other hand are permanently employed by the organisation to examine and comment on the computer system and processes on an ongoing basis. Thomas (2004).

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This will lead us to observe that the main distinction between internal and external computer auditing is the degree of independence from the organisation being audited. Internal computer auditors are usually directly employed by the organisation’s internal audit department although they do not normally report to the organizational executive management structure by contract. External auditors are normally contracted by the organization to perform audit as part of the annual process of preparing the company’s account and financial statement. Thomas (2004). In some organizations, according to Newman (2001), the internal and external auditors have separate but complementary areas of scope. External auditors cover the core financial system, which internal auditors primarily cover. The remainder in most cases however two functions overlap working together on some part.

Stages of computer auditing programme There are different ways by which organisations go about computer auditing and individual computer auditors have their own ways of working. Davies (2004) illustrates the main stages of typical computer audit and it assignment as follows:

FIELD SCOPE PLAN ANALYSIS REPORT CLOSE WORK

Figure 1.0 Audit processes flow chart source: Davies (2004) goes further to explain the stages in computer audit as presented below. 1. Scope and pre-audit survey: The auditors determine the main areas of focus and any areas that are explicitly of our scope based normally on some form of risk based assessment information sources at the stage include background reading and was browsing previous audit report and some subjective impression that deserve their investigations.

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2. Planning and preparations: At this level the scope is broken down into greater levels of details usually involving the generation of an audit work plan or risk control matrix. 3. Field work: this entails gathering evidence by interviewing members of staff and managers, reviewing documents, print outs and data observation processes etc. this stage may include the use of CAAT’s.

Incidents of Financial Fraud in the Financial Sector of the Nigerian Economy Internet usage presents impressive statistics as computers and internet penetrations are expected to increase phenomenally over the coming years. But there is a paradox, according to Seetharaman et.al (2006) the development of computer technologies in organizations has greatly enhanced the ability of people to defraud. Many commentators (for example, the audit commission, 1987) observed that opportunities for misuse of ICT continue to increase in consonance with technological advancement. Many fraud cases go unreported for different reasons; therefore the amount of losses caused can only be estimated. The formats, causes and effects of fraud on banks and other financial institutions have been well documented by many authors; including Nwankwo (1991) said that fraud is the biggest single cause of bank failure, while Adewunmi (2004) suggested that fraud is capable of damaging the banking habit of any economy. Fraud is therefore feared by all the banking stakeholders except the fraudsters themselves. Efforts to control fraud in the Nigerian financial sector have been constant concerns both for the operators and regulators alike. The common control strategies adopted by banks focus on detection, prevention and investigation. The way banks exhibit the use of these strategies were discussed in the literature (Sidney, 1986; Nwankwo, 1991). Among other things, the installation and implementation of internal control systems, use of bank inspectors, internal and external auditors are identified as important.

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Management often takes the blame for not doing enough to manage fraud. For instance, FITC (1992) asserted that poor management in terms of inadequate supervision; inadequate control and under-staffing are the most significant causes of fraud.Umoh (2004) also noted that bank fraud arises principally from weak internal controls and retention of staff with a fraudulent propensity. Sanusi (1986) drew similar conclusions by pointing to the weakness of internal control systems. Adewunmi (1986) held management responsible stating that inadequate control is indicative of poor management. To remedy the rising cases of bank frauds, FITC (1992) suggested the need to measure the efficiency of control system and further observed that “although some authors have suggested the cases of ineffectiveness of fraud control measures, past studies had failed to assess empirically the effectiveness of fraud control” (FITC, 1992 : 19) . This is what the present study is focusing on. Furthermore, Sanusi (1986) suggest that the answer is inefficient and well monitored internal control system, while FITC (1992) suggest adequate management supervision and regular balancing of accounts, training and retraining of staff as well as adequate internal controls. KPMG (2005), in its African fraud and misconduct survey says that the majority of respondent indicated that controls require review and improvement in order to reduce fraud. This view is more relevant now as most transactions are now conducted online. For instance, the number of reported cases of frauds and forgeries in insured banks rules during 2007 compared with previous years (NDIC, 2007). Most of the regulatory authorities (Central Bank of Nigeria (CBN), Nigeria Deposit Insurance Corporation (NDIC); Nigerian Security and Exchange Commission (SEC) and the National Insurance Commission (NICOM)) strongly recommend a strong internal control system and well trained internal Auditors for all financial institutions because of perceived vulnerability to computer fraud.

The benefits of CAATS To Deposit Money Banks i. Improved credibility of the financial statement should result from the various activities of the audit committee, particularly from their

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impartial review of the financial statements, and their discussions of significant issues with the external auditors. ii. A strong control environment will be encouraged by the application of CAATs in the banking sector. And the fact that the internal audit function would report to the management of the company rather than to the finance director as is currently the situation strengthens their independence. iii. This improved credibility and control environment could be important for large and growing private companies.

Other benefits include. iv. Speed and Accuracy: the primary advantage/benefit to Deposit Money Banks is the increased speed and accuracy. Clearly, if and auditor use CAAT to run through a financial statements and compile data and figures, then the job can be done quickly. Also auditing programs tend to come with useful checks and balances that spot not only calculation errors in business books but also mismatched item entries and potential regulatory issues. v. Models: The more complex CAAT tools can provide another level of aid by generating computer models and simulations for the auditor. This is very useful when an auditor is working to study the business’s financial approach and how it can be restructured. A computer model can run several different simulations setting up different models to show how the accounting process will be affected. It can also use models to judge the potential for risk (from mistakes, fraud and other problems) in the current system. - www.business.chron.com. vi. Reduce risk: CAATs reduces the risk of missing material statements, and reduces the opportunity to make mistakes. CAATs helps to test 100% transaction vii. Reliability: audit work performed using CAAT tools are more accurate and reliable because of the reliable of the computer aided audit techniques.

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viii. Time saving: the use of CAATs in performing audit function help saves time when compared to the manual methods of audit as there is speed in computing data using the CAAT application. ix. Fraud detection: the use of CAATs help to eliminates the daunting challenges of fraud that so much adversely affect many money deposit banks. Through the use of Computer Aided Audit Technique software, several errors and frauds have been detected. x. Auditors can exercise various tools and techniques (CAATs) based on use of computers. By using advantages of information technologies, auditors can verify internal controls, access records and generate information with productivity and efficiency, which could not be matched with manual audit approach.

How Computer Aided Audit Techniques (CAATs) can be applied 1. Application Controls Auditors begin with consideration of internal controls built in computer system by getting acquainted with general controls. This approach is appropriate since efficiency of specific application controls in great deal depends on existence and effectiveness of general controls over all activities of information system. While general controls apply to all organization system components, processes, and data, application controls are specific to a program or system supporting a particular business process. The objectives of application controls are to ensure the completeness and accuracy of records, as well as the validity of the entries made to each record, as the result of program processing. According to traditional categorization, application controls can be in form of: a. Input controls, b. Processing controls and c. Output controls.

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Test data creation

Test data are entered into the application

Results of input procedures (acceptance or rejection) Expected result

Source (Andric, etal., 2004)

Input controls: Organizations need to set controls with aim to prevent erroneous data from being entered into computer system or to detect and remove mistakes from system and recapture the integrity of financial information. Input controls should be designed in such a manner to give reasonable assurance that input data is correctly authorized and entered into computer system. Completeness and accuracy of entered data depends on successful combination of different data check methods. The most important input controls are - Validity controls, - Batch totals, - Check digits and - Verification controls. (Andrić, Krsmanović, & Jakšić, 2004)

Processing controls: Data processing is inner activity of computer system based on programming instructions. Mistakes in data processing arise due to

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miscalculations, errors in program algorithms, use of wrong files of records, automatic executions of transactions that are not in accordance with management policy etc. Processing controls provide an automated means of assurance that processing is complete, accurate, and authorized.

Output controls: Output controls address what is done with the data and should compare output results with the intended result by checking the output against the input. Sometimes, output could be in a form of important confidential data, such as a list of payroll or customers. Access to this output by unauthorized individuals could result in loss of assets and credibility. In order to prevent these unfavourable events, organizations should set dissemination procedures only to authorized personnel. The most important Computer Assisted Audit Techniques are: 1. Test data, 2. Integrated test facility, 3. Parallel simulation, and 4. On-line audit monitor. Test data. Test data technique is based on auditors’ creation of input data that should be processed by client’s application. Test data consist of correct and incorrect data. If incorrect data is entered into the system, auditor expects the input rejection. Results of input procedures are compared with expected behaviour of application in order to determine whether input controls are in place. Phases of test data technique are depicted in Figure 1 Test data Auditors feel uncomfortable with the risk that client application during the period could differ from the one tested. In order to mitigate this situation, application of test data technique could be carried out by unexpected visit and copying of client’s programs for later inspection. Integrated test facility. Integrated test facilities are built-in test environments within a system. This approach is used primarily with large- scale, online systems serving multiple locations within the company or organization. Integrated test facility is a variation of test data technique.

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The main difference is that instead of checking information system while not in use, simulated data are added to client’s real data and processed simultaneously. Results are compared with expected (Figure 2).

Figure 2 integrated test facilities In order to avoid contamination of client’s real data, procedures for separation and extraction of simulated data from the computer system should be defined before the application of integrated test facility technique and executed upon the end of testing.

Parallel simulation In test data and integrated test facility techniques audit tests are based on simulated data, while in parallel simulation technique auditor uses actual data which is processed with clients’ and auditor’s program. Results of parallel programs execution are compared and validated (Figure 3). Client’s data Simulated auditor’s data

Computer processing

Results of client’s data Result of simulated data processing processing

Comparison Source (Andric, etal.,2004)

Implementation of Computer Aided Audit Technique in application control testing Management Information Systems

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Client’s actual data

Client’s application Audit parallel simulation software

Comparison

Application report Simulation report

Figure 3 Parallel simulation The main advantage in utilization of parallel simulation is a possibility than auditor’s program could have additional controls embedded, which enables the valuation of effects of nonexistent control procedures. The main disadvantage lies in significant cost of audit programming if written uniquely for one client. Parallel simulation is the best technique for verification of calculations (depreciation, interest, taxes, payroll etc.).

Online audit monitor Online audit monitor provides continuous audit through integration of audit program code into client’s transactional application. Its task is to monitor transactions and makes extractions if certain criteria are met (specific transactions, unusual transactions, high risk transactions etc.). In order to provide integration of audit program code into accounting system, new lines of program code should be added into client’s computer program (audit hooks) which should enable the shift of control from client’s program to audit code (Figure 4)

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Figure 4 Online audit monitor (Bodnar& Hopwood, 2004)

Transaction execution in client’s information system

Integrated audit module

Audit report

Application output

If transaction meets predefined criteria, embedded audit module is activated and two possible procedures can be carried out: a) Audit log creation or b) Transaction tagging. Online audit module is very advantageous since it can be exercised with systems which immediately process transactions without interrupting client’s processing routines.

Application Control Testing Through Computer Assisted Audit Techniques CAATs Audit objective in connection with application controls is to verify whether application controls satisfy control objectives and, if appropriate, to give recommendations for their improvement. The sophistication of an organization’s IT environment has a direct effect on the overall risk profile. The degree of transactional application

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complexity will drive the scoping, implementation, level of effort, and knowledge required to execute an application control review. Computer-Assisted Audit Techniques (CAATs) help ensure that appropriate coverage is in place for an application control review, particularly when there are thousands, or perhaps millions, of transactions occurring during a test period. In these situations, it would be impossible to obtain adequate information in a format that can be reviewed without the use of an automated tool. Because CAATs provide the ability to analyze internal controls built into operations of computer system, a well-designed audit supported by CAATs testing can result in a reliable conclusion on efficiency and effectiveness of application controls. Selection of the most appropriate computer assisted audit technique depends on characteristics of tested application control. Following tables gives the overview of recommended CAATs for different input, processing and output controls.

Research Methodology Population of the Study The study on the effect of computer aided audit techniques on fraud detection in Deposit Money Banks is aimed at developing the banking system through the effective use of the CAAT system. The population of the study constitutes of all Deposit Money Banks in Nigeria.

Sample and Sampling Techniques Sample is taking a portion of a population or universe as representative of that population or universe. There are so many sampling techniques used in selection samples that will be representative of the population in conducting a research work. These are the processes of drawing sample from the population. They are the methods or procedures available for drawing or selecting a sample from large population.

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Sample size. Kitchmenand Pleeger (2002) defined sample size as representative subject of the target population. The critical word in their definition was the word ‘representative’. They stressed that, where there is no representative sample, there cannot be any claim on a generalized result to the target population. For the purpose of this study, Access Bank Plc Bauchi branch, population size was adopted, with the number of 31 staffs.

Methods of Data Collection The methods used in collecting data for this study is in line with the type of data collected and the source. We utilized both primary and secondary data. Secondary method of data collection could come in form of aggregate data collection and analysis or by way of documentation. Both of these components appear to be ex-post factor in that they are almost non- relative since the investigator has disagree way of influencing the data he handles as raw data. He can only manipulate existing data by analyzing them systematically towards tackling some research problems. In line with the above, the method used in the collection of data for the purpose of this study is the secondary and primary method. The secondary data were collected from the various company annual reports of the bank for the respective years. While the primary data were collected via the administration of questionnaires to the staff of the organization (banks).

Data Presentation, Analysis And Interpretation Response from Questionnaires In this research work, 20 questionnaires were administered and 19 were completed and returned representing 95% while one has not been returned representing 5%. Table 4.1 - Respondents Percentage No. of questionnaires returned 19 95 No. of questionnaires not returned 1 5

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Total 20 100 Sources: field survey, 2018

From table 4.1, 19 questionnaires were returned representing 95% while 1 questionnaire was not return representing 5%. This indicates that 19 questionnaires will be analyzed.

Descriptive statistics Table 4.8 Organization use Computer Aided Audit Techniques Variable Respondents Percentage Strongly agree 6 31.5 Agree 11 57.9 Don’t know 1 5.3 Disagree 1 5.3 Strongly disagree 0 Total 19 100 Source: field survey, 2018

From table 4.8, 6 respondents representing 31.5% strongly agree that organization use CAATs, 11 representing 57.9% agree that organization use CAATs, 1 representing 5.3% don’t know while 1 also representing 5.3% disagree that organization use CAATs. This implies that the highest percentage agree that organization use CAATs.

Table 4.9: The use of CAATs brings efficiency and effectiveness in banking operations Variable Respondents Percentage Strongly agree 8 42.1 Agree 11 57.9 Don’t know 0 0 Disagree 0 0 Strongly disagree 0 0 Total 19 100 Source: field survey, 2018

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From table 4.9, 8 respondents representing 42.1% strongly agree that the use CAATs brings efficiency and effectiveness in banking operations, 11 representing 57.9% agree that the use of CAATs brings efficiency in banking operations. This implies that the highest percentage agree that the use of CAATs brings efficiency in banking operations. Therefore there is effectiveness and efficiency in banking operations using CAAT.

Table 4.10: CAATs are highly effective in accounting and auditing Variable Respondents Percentage Strongly agree 14 73.6 Agree 5 26.4 Don’t know 0 0 Disagree 0 0 Strongly disagree 0 0 Total 19 100 Source: field survey, 2018

Table 4.10 shows that 14 respondents representing 73.6% strongly agree that CAATs are highly effective in accounting and auditing, while 5 representing 26.4% agree that CAATs are highly effective in accounting and auditing. Therefore, since the highest population agrees to that, by implication, it means that CAATs are highly effective in accounting and auditing.

Table 4.11: CAATs help to identify weaknesses in internal control Variable Respondents Percentage Strongly agree 8 42.1 Agree 10 52.7 Don’t know 1 5.2 Disagree 0 0 Strongly disagree 0 0 Total 19 100 Source: field survey, 2018

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Table 4.11 shows that 8 representing 42.1% strongly agree that CAATs help to identify weaknesses in internal control, 10 representing 52.7% agree with the above statement, while 1 representing 5.2% don’t know whether CAATs help to identify weaknesses in internal control or not. Based on the above analysis, the greater number of the respondents agrees to the fact that CAATs helps to identify weaknesses in internal control. Therefore, CAATs helps to identify weaknesses in internal control.

Table 4.12: The use of ICT and CAATs tools improve organization’s quality of internal control. Variable Respondents Percentage Strongly agree 6 31.5 Agree 12 63.3 Don’t know 1 5.2 Disagree 0 0 Strongly disagree 0 0 Total 19 100 Source: field survey, 2018

From table 4.12, 6 respondents representing 31.5% strongly agree that the use of ICT and CAATs tools improve organization’s quality of internal control, 12 representing 63.3% agree that, 1 representing 5.2% don’t know. This implies that the highest percentage agree that the use of ICT and CAATs tools improve organization’s quality of internal control.

Table 4.13: CAATs and ICT techniques improve level of audit risk assessment Variable Respondents Percentage Strongly agree 8 42.1 Agree 8 42.1 Don’t know 3 15.8 Disagree 0 0

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Strongly disagree 0 0 Total 19 100 Source: field survey, 2018

Table 4.13 shows that 8 representing 42.1% strongly agree that CAATs and ICT techniques improve level of audit risk assessment, 8 respondents also representing 42.1% agree with that statement, while 3 representing 15.8%. By implication, CAATs and ICT techniques improve the level of risk assessment, because the highest number attests to that.

Table 4.14: CAATs tools are used to detect fraud Variable Respondents Percentage Strongly agree 8 42.1 Agree 8 42.1 Don’t know 2 10.5 Disagree 1 5.2 Strongly disagree 0 0 Total 19 100 Source: field survey, 2018

Table 4.14 8 respondents representing 42.1% strongly agree that CAAT tools are used to detect fraud, also, 8 representing 42.1% agree that CAAT tools 2, representing 10.5% don’t know while 1 also representing 5.2% disagree that CAAT tools are used to detect fraud. It means here that CAATs tools are used to detect fraud.

Test of Hypothesis The various hypothesis earlier formulated in this research were tested. This is to enable the researcher relate to each of the item in the questionnaire to the relevant questionnaires tested.

Hypothesis 1 HI: Computer Aided Audit Technique (CAAT) has effect on Deposit Money Banks. 190 | P a g e

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We consider question 2 and 3 to test hypothesis 1.

Decision Rule Based on our analysis on table 4.8 and 4.9 respectively, it shows clearly that Computer Aided Audit Techniques (CAATs) has effect on Deposit Money Banks (MDBs).

Hypothesis 2 H2: Computer Aided Audit Technique (CAAT) can be applied on Deposit Money Banks. We consider question 1 and 11 to test hypothesis 2.

Decision Rule Based on our analysis on table 4.7 and 4.17, it shows that CAATs can be applied on Deposit Money Banks (MDBs)

Hypothesis 3. H3: Computer Aided Audit Techniques has benefits on Deposit Money Banks. We use question 4, 5, 6, 7, 8 and 10 to test hypothesis 3.

Decision Rule Based on our analysis on table 4.10, 4.11, 4.12, 4.13, 4.14 and 4.16, respectively, it shows that Computer Aided Audit Techniques (CAATs) has great benefits to Deposit Money Banks.

Discussion of Results. The purpose of this research is to generate primary and secondary data from relevant field in order to come up with findings which will help the researcher in drawing conclusion and recommendation based on the data analyzed. This research comprises three hypotheses and each of these hypotheses was tested. From the first hypothesis, it was shown that CAATs has effect on Deposit Money Banks and these effects are positive this result

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is in line with the findings of Hinson (2005). From the second hypothesis, it was shown how CAAT can be applied also in line with the findings of (Andrić, Krsmanović, & Jakšić, 2004). Finally from the final hypothesis, from the analysis, it was proven that CAATs has numerous benefits to Deposit Money Banks, in line with the benefits given by www.business.chron.com..

Findings Through this study, it has being possible for me to discover the need and assessment on the role of computer – Aided Audit Techniques (CAAT) ON found detection in Deposit Money Banks. 1. How Computer Aided Audit Techniques (CAATS) has contributed a lot to Bank operation. And has made Auditing work more easier than the manual auditing process. 2. CAATS is also effective in discovering and prevention of fraud especially computer (internet fraud). 3. It was found that computer Aided Auditing Techniques influences accountability and accountability helps on fraud dictation in Deposit Money Banks. 4. This study clearly shows the relevant diagrams how CAAT can be applied in banking for smooth and effective banking operations. 5. Furthermore, this research show clearly the various benefits derived as a result of the use of the Computer Aided Audit Techniques on Deposit Money Banks in line with www.business.cluon.com

Summary, Conclusion and Recommendation This chapter focuses on the summary of findings of the entire research, the conclusion and the recommendation from the research. It also provides suggestions for further studies.

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Summary of Findings It was found out that Computer Aided Audit Techniques (CAAT) in Deposit Money Banks to uncover and detect fraud before they occur. Computer Aided Audit Techniques are computer tools and techniques that an auditor (external or internal) uses as part of their audit procedure to process data of audit significance contained in an entity’s information systems. However, it has been mentioned in one of the highlights that Computer Aided Audit Techniques is not only good and effective in fraud detection but it ensures professional proficiency in the account and record keeping of Deposit Money Banks.

Conclusion Based on the fact and findings of project work, I can confidently and conclusively say that computer Aided Audit techniques is a strongest instrument of any Deposit Money Banks in achieving the goal and objective of such banks, because its serve as a watch dog in dictating fraud. Consequently, based on the study conducted by the researchers, and based on the analysis of the data gathered. It is concluded that CAATs has great impact in banking operations and in detection and prevention of fraud.

Recommendation It is the researcher personal conviction that the following recommendations are taken into consideration and implemented. Because it will contribution to the overall objectives and goals of Access Bank and all Deposit Money Banks in general. 1. Implementation and establishment of Computer Aided Audit Techniques. The establishment of CAATs has so many positive benefits with it; therefore it will be good if other Deposit Money Banks to introduce to their banking operations. 2. Internal control Deposit Money Banks should apply CAATs for effective internal control.

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3. We also recommend that the Central Bank of Nigeria should make the application of CAAT mandatory for all Deposit Money Banks for effective monitoring and auditing of transactions.

Limitation The research work undertaken has come across constraints during the course of the study. Such as; 1. The research work was limited to only one of out of numerous Deposit Money Banks in the nation. 2. There is problem in gathering data from respondents as some of the questions asked were somehow confidential.

Suggestion for Further Study The result generated in the course of the study has triggered the need for further study which the study could not fully address. Firstly, the study focused only on one Deposit Money Bank out several others in the country. So it will be good if studies will be conducted on other Deposit Money Banks. Secondly, this study was stereotyped on only Deposit Money Banks, so we suggest studies should be conducted not only on Deposit Money Banks but on other financial institutions like mortgage banks, stock exchange markets, insurances corporations, etc.

BIBLIOGRAPHY Akin H. (1970): Statistical Method of Analysis; 5th Edition; London; Banes and Nobles Outline Series. Adeniyi, A.A (2004), Auditing Administration, Lagos.Value analysis consul publisher Adetoro, S.A (1986) Research Techniques for project proposals, theses and dissertations, Zaria Gaskiya Corporation Limited Akinnolemiwa, (2009) "The Auditors Responsibility to consider fraud in an Audited Financial Statement" Nigeria. Journal of Nigeria Accountants. Vol.11 No.2.

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Akpakpan, B.A. (1995) On Project Writing. 2nd Edition CalabarCertaur Publishers. Atney, D.A (1990) Auditing EDP system 2nd edition.Hall International Inc. New Jersey Aquaisna, F.D (2003) Practical Auditing and Investigation.Kaduna Lord Printing and publishing Cascarino, R. (2007). Autor’s Guide to Information System Auditing.New York: John Wiley & Sons, Inc. Daunt, J. (2002) Modern Auditing Manual Retrieved from http://www.corporate Find Law. Edeh, J.I (2012): “An assessment of computerized Auditing and professional proficiency record keeping in public sector organization”. A project submitted to the department of Accountancy, school of management studies. Abubakar Ali Polytechnic, Bauchi. Emele, O.U. (1995) "Fundamentals of Research Methodology and Statistics in Education and Behaviour Sciences" Aba. Model Academic Publishers ltd. Gbadamosi, S.T. (2008) "Fraud, it's Nature and Causes in Nigeria Banking Industry" Nigeria . Africana Publishers. Global Technology Audit Guide 8 (2007) – Auditing Application Controls. Retrieved May 3, 2009, from The Institute of Internal Auditors:http://www.theiia.org/ Inuwa, V.S. (2015): “the effect of information technology on internal Audit in Nigeria”. A project submitted to the school of post- graduate studies. Abubakar Tafawa Balewa University, Bauchi IssIe, R.: Understanding Internet-Based Fraud Schemes Wachovia Corporation Jakšić, D. (2009): Implementation of Computer Assisted Audit Techniques in Application Controls Testing Nnamdi, A. (1991) Research methodology in the behavioural sciences. Lagos, Longman Nigeria Plc

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Ogidefa, I. (2008) "Fraud in Banking System in Nigeria" Lagos. Journal of the Chattered institutes of Bankers of Nigeria. (CIBN). Vol. no 3. Omoniyi, K. (2002), Auditing Management, Analysis, Planning and Control. International Edition; New York; Prentice Hall Publisher. 69 Osuala, E.C. (2005). “Introduction to Research Methodology”. 3rd Edition. Enugu Africa First Publishers Ltd. Senft, S., & Frederick, G. (2009). Information Technology Control andAudit. Boca Raton: Auerbach Publications. Singleton, T. Generalized Audit Software: Effective and Efficient Tool for Today's IT Audits; Singleton, T., Todd, K. & Messina, F. How to Use Computer-Assisted Audit Techniques to Uncover Fraud. Stephenson, M.M.: Selection and application of computer assisted audit tools

Appendix SECTION ONE: BIO-DATA Please fill the questionnaire with sincerity, by ticking appropriate options 1. Gender (1) male (2) female 2. Marital status (1) single (2) married 3. Age (1) 20-29 (2) 30-39 (3) 40 and above 4. Qualification (1)OND/ND/NCE (2) HND/BSC/MSC 5. Experience (1) 0-2 (2) 3-5 (3) 6 and above 6. Designation (1) customer (2) operational staff (3) audit staff (4) others

SECTION TWO: RESEARCH QUESTIONS The response on this section falls under strongly agree (SA), agree (A), don’t know (DK), disagree (D) and strongly disagree (SD). Please kindly tick the actual answer if you know it. If you don’t know, please tick don’t know (DK) in order to ensure accurate result on the research Table: an assessment on the role of computer aided audit techniques on fraud detection in Deposit Money Banks.

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S/N QUESTIONS SA A DK D SD

1 2 3 4 5 1 Organization use Computer Aided Audit Technique (CAATs) 2 The use of CAATs brings efficiency and effectiveness in banking operation 3 CAATs are highly effective in accounting and auditing

4 CAATs help to identify weaknesses in internal control 5 The use of ICT and the CAAT tools improve organization’s quality of internal control 6 CAATs and ICT techniques improve level of audit risk assessment. 7 CAAT tools are to detect fraud 8 Computer auditing influence the opinion of accounting and auditing 9 The organization use CAATs to generate exception report 10 The use of ICT and CAAT tools has made monitoring of transactions flow more effectively. 11 Organization provide knowledge based expert system 12 Continuous CAATs audit is effective in preventive control. 13 Organization use ICT and CAATs to carry out tests on identity transaction flows.

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14 Organization use ICT and the CAATs to carry out effectiveness of general control

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CONTRIBUTORY PENSION SCHEME AND PENSIONERS’ WELFARE: A STUDY OF NIGERIAN INSTITUTE OF SOCIAL AND ECONOMIC RESEARCH (NISER), IBADAN

*USEN. U. AKPAN **DR. ABDULLAHI MOHAMMED YAMMA, **DR. YAHAYA ADADU *Nigerian Institute of Social and Economic Research, (NISER), Ibadan. **Department Of Political Science, NSUK.

ABSTRACT The Pension Act of 2004 which was later amended as the Pension Act 20014 is the contributory pension scheme in the Country. The thrust of this paper is to examine the performance of the policy as it affects the welfare of the retirees in NISER. The paper heighted few problems of the old pension scheme in Nigeria. To achieve this objective secondary data were sourced and reviewed accordingly. The paper revealed that most retirees are not happy with the new pension policy since their welfare is inadequately caters for. It therefore recommend among others that NISER, an agency of government should endeavour to put in place policy that will enhance the welfare of pensioners and this will bring about more productivity from the would- be retirees

Keywords; Pension, Reform, Retirees, Welfare

INTRODUCTION The challenges of pensioners appeared to have started during the colonial era when Nigerians were paid such ridiculous amount ranging from two shillings and six pence to ten shillings monthly as pension benefit. The situation appeared to have changed slightly with the attainment of independence. A systematic pattern that seemed to have evolved over the 199 | P a g e

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decades showed that the various increases in workers’ pension and gratuity since 1971 came as a result of the combined efforts by the various governments in the country and workers themselves (Eya, 1990, Nwite and Ehiohu,2014) The old pension administration was non-contributory mostly in the public sector and in that scheme no employee was entitled to pension benefit especially when such an individual was dismissed from service. The policy was un-satisfied in nature, pensioners had an unpleasant experiences as they went through tough times and rigorous processes an un-ending verification before they were paid their entitlements. Millions of the pensioners lived in abject poverty and were neglected after retirement by the society and many of the senior citizens in the country suffered and languished in pains various ailments and died miserably while waiting to receive their due benefits. There was a huge pension liability in the system and the major problem of the old scheme was the non- payment of pension and gratuity by the federal and state governments and as at December 2005, the pension backlog about N2.56 trillion and there was no adequate provision to protect the pension fund. In the private sector, the employees were not covered by the pension schemes put in place by their employers and a lot of these schemes were inadequately or never funded. Where the schemes were funded, the management of the pension funds was full of malpractices between the fund managers and the trustees of the pension funds (Ojo, 2013) The pension reform policy was initiated not only to address and but also to eliminate the various problems associated with the old pension administration in the country and the outcome of the process was the enactment into law of the PRA 2004

The Concept of Pension The rewards awaiting an employee who has served the organisation for some years are always in the form of pension and gratuity and it is payable to the recipient by the management at the time of his or her retirement.

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This becomes necessary when an individual has served the employer for a specific number of years according to the condition of service and especially when the employee is regarded too old or ill to contribute meaningful to the organisation in question. Pension therefore, is the monthly amount paid to a retired employee up to 18 years for men and 22 years for female as amended in the 2014 pension reform act (PRA 2014). As practiced in Nigeria since 2004, pension is a policy in which an arrangement is made for an employee to always contribute some percentages of his or her income into a pension account during his working life. The contribution is meant to serve as pension at the exit point and this will be the earned income before death. According to Jane (2000) he described pension as a method where by an individual pays into a pension scheme a proportion of his earnings during his working life. The contributions provide an income (pension) on retirement that is treated as earned income and taxed at the investors’ marginal rate of income tax. On the other hand, Adams, (2005) opined that gratuity is a lump sum of money payable to a retiring employee who has worked for a minimum period of term year, usually five years. According to Plato any venture that is not challenged is not worth living for. Life after retirement is dreaded by so many workers. The fear of facing and living a meaning life after retirement always cause panic among the working class. Retirement is regarded by workers as transition that can lead to psychological, physiological and economical problems (Ogunbameru and Bamiwuye, 2004, Ameh, O, 2017). The Pension Reform Act 2004 is contributory pension scheme established by the Government for all categories of employees in the public and private sectors and as amended in 2014 The pension scheme is complete departure from the unfunded defined benefit scheme which the financial burden was upon the employer. The scheme made a significant improvement in pension issues in both public and private sector and funding the schemes is absolutely compulsory. . In literature, so many definitions of pension have been offered but they all suggest basically the same thing –the social security of a retired person and

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his dependants. According to Bertrand (2003), pension is an arrangement to enhance the condition of living of the aged persons who are no longer viable in the labour market group. Idowu (2006) opined that pension policy is a social safety measure as well as a benefit plan for the old or retired people who are in their years of inactivity. Imhanlahimi, Joseph and Eseoghene (2011), defined pension scheme as a monetary allowance which officially specifies its organisation and process, so as to give rest of mind to employees, prolong or urge them to be more result oriented and ensure that a pensioner and his dependants live a meaningful life

The New Pension Scheme The new Pension Scheme is contributory in nature. It requires that each employee covered by the scheme must open a retirement savings Account (RSA) in which his/her monthly pension contributions would be credited. Each employee will contribute eight per cent of his/her monthly emoluments (here defined as Basic salary, Housing and Transport Allowances) and the employer would contribute the remaining balance of 18% and remit the total contributions to a Custodian within seven days from the day the employee’s salary was paid and the PFA on receipt of contribution would credit the RSA of the employee. The scheme shall be fully funded, meaning that there will always be enough funds to match all pension liabilities. The fund is managed by licensed Pension Fund Administrators (PFAs), while the custody of the pension fund assets is provided by licenced Pension Fund Custodians (PFCs).The National Pension Commission (PenCom) is providing strict and adequate supervision of the industry. The contributory pension scheme has provided a framework for access to retirement benefits on the basis of either of the following: mandatory retirement, compulsory retirement or retirement on medical grounds and death. The objective of the Act is to create a more effective pension administration system in Nigeria, to boost participation in the pension reform system and to enforce workers’ welfare. The major innovation of Act 2014 is the

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creation of a uniform pension scheme that applies to both public and private sectors. The policy essentially involves all the employees in the service of the Federation, the Federal Capital Territory and the private sector and is meant to ensure that workers receive their retirement benefit promptly.

The concept of Welfare Pension is the benefit an employee would receive after retirement. Every worker has the right to earn a pension on retirement and this should not be treated as favour. Retirees’ welfare should be of priority to the employer having served for 35 tears or attained the 60 years mandatory retirement age in the country. For a working person pension is one the most important aspects of fiscal reward for their term of employment yet it has generally seems far-fetched and often discouraging which should not be so and this has negate the reason for its establishment.

Empirical Literature Review A number of studies have been undertaken to assess the performance of the contributory pension plan in Nigeria and these have produced empirical evidences. However, only very few research have is being done on the contributory pension and the welfare of the retirees. In assessing the effect of new pension scheme on retirees in Nigeria by Anazodo et.al (2014) employed descriptive analysis to gain an insight into the effect. The study found out that the turn of events in recent days as regards late or non- payment of pension is beginning to bring down the hopes of the people. They asserted that the development brought about protest of pensioners in Ogun State whose entitlements were owed to over 10 months. The study recommended that administrative bottlenecks, as well as unnecessary bureaucratic principles should be removed, so as to ensure effective and efficient administrative system of the new pension. The outcome of Chizueke et.al,(2011) shown that funded pension scheme has great effects and boost employees commitment to work and develop a good attitude towards retirement. The study at end recommended that

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there should be strict measures in place by the government to ensure proper monitoring and execution of the provision of PRA 2004. Nwite et al,(2014) highlighted the differences between 2004 and 2014 pension reform act in Nigerian and the findings indicated that the reform aimed at harmonising all the existing scheme and further strengthened the industry. The study revealed that the 2014 Act is an upgrade of the former which provide more surety and welfare to both employees and retirees. The study added as recommendation that Pen Com should be allowed free hand to exercise her powers on lawful processes against aiding employers and organizations that fail to comply with lay down rules without any form interference. Babatunde (2012) examined the impact of Contributory pension scheme on Worker’s savings in Nigeria with the use of analytical method expecting that he would bring about useful suggestion that will help and improve the pension scheme in Nigeria especially the CPS. The study discovered that there is a significant relationship between the level awareness of respondents and their savings and there is no significant relationship between CPS and savings. He recommended that the government and the PFAs which are saddled with the responsibility of creating awareness to the public especially the workers on the new policy as most citizens are only involved in the scheme without any adequate knowledge and this development is affecting their savings. Oyediran, (2013) , Ameh et al (2017) carried out an analysis of impact of the 2004 pension policy on the welfare of the Nigerian civil servants, with emphasis on selected Federal ministries. The findings that emerged shown that execution of the new scheme has meaningfully changed the wellbeing of the civil servants but the problem of corruption is not addressed and insufficient allocation of fund and therefore ineffective in overcoming the challenges of pensioners in Nigeria. Based on the findings the study recommended that both government and the Pen Com need to empower monitoring and supervisory unit of the apex body to guarantee effective monitoring, supervision and enforcement; and effective execution of

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penalties as provided by the law on non-compliance regardless of their status in the society. According to Olarenwaju (2011) assessed the pension act of 2004 and the wellbeing of retirees in Nigeria employing the descriptive statistics. Relying on the Marxists theory to analyse the data that was collected through the use of structured questionnaires distributed to pensioners in Nigeria. It was revealed that while the implementers in the private sectors are benefiting from the policy the public sector is yet to reap the benefit due to bureaucracy in government most especially still the problem of delayed in releasing the counterpart funding from the various levels of government and this has hampered pensioners from assessing the benefits after retirement. Odia and Okoye (22012) made a comparison analysis between the old and the new pension reform with descriptive statistics. The revealed that the new pension scheme commenced on a better note compared to the old act in terms of mobilization and involvement The study recommended that there should be a continuous awareness and enlightenment for a successful pension administration.

Discussion of Findings The paper revealed that apart from the mandatory employer’s contribution there is no other welfare package put in place for both retirees and the serving staff. Most retirees are not fully aware of the operations of the pension scheme and the amount paid to them as pension are too meagre when compared to the beneficiaries of the defunct of the old scheme. They argued that they should not be worse off most especially when they are contributors to the new scheme. The policy has not significantly changed the welfare of the retirees. They concluded that PRA 2014 should indicate how the amount retirees should earn as their last pay as monthly pension. The 50 percent recommended in 2004 was grossly inappropriate when compared with economic realities in the country.

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Pension to the working person is one of the most important aspects of fiscal reward for their term of employment. The scheme has created a more effective pension administration in the country, boost participation in the pension reform scheme and to enforce worker’s welfare. The scheme uniformly applies to all employees in the service of the Federation, the Federal Capital Territory (FCT) and the private sector and is meant to ensure that workers receive retirement benefits promptly. However, some of the retirees were complaining of delayed and non-payment of their entitlements as at when due. The paper revealed that there is a preference by some retirees for the define benefit pension scheme than the contributory pension scheme. This preference has raised a concern which should the regulatory body in the industry should not undermine. There is the delay of payment of benefits in the CPS and this is occasioned by the fact that the retirees have to undertake their clearance and obtain certificates to effect before they can receive their pensions and gratuities benefits together. This process is informed by the fact that the employer in the CPS, through the clearance system, ensure that the retirees are not indebted to the employer’s organisation for he is given a clearance which enable him to proceed to his PFA for his pension benefits. All the same, this clearance process in the CPS causes varying length of delay to the retirees before they can receive their pension benefits. The study also revealed that some retirees though they want to applaud the scheme but they described it worrisome maintaining they are akin to a situation whereby some people controlling their money as if they are children who in capable of managing cash. A situation where we have to be told what and how to spend our money was not a welcome development but since it is a government policy we have no option than to abide by it. Some of the retirees opined that the unfunded scheme was meant for life whereas the contributory scheme has a fixed number of years retirees’ withdrawal of their incomes will terminate. They wondered if the policy implementers have taken the place of God to determine when they are supposed to die.

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CONCLUSION This paper has examined the contributory pension scheme and the welfare of the retirees in NISER. It has also highlighted the values and challenges in the reformed pension scheme that is the contributory pension scheme implemented by Nigerian government with effect from June, 2004. The values of the scheme have been found in the study to be more in favour of the operators than the retirees and prospective retirees. The study has also found that the pensioners on the old scheme have better welfare packages than the beneficiaries of the contributory pension scheme; hence, pensioners do not largely support it. The following are the policy implications of the findings The financial benefits of the old scheme were adjudged better despite the problems associated with it government should consider to work and improve on the contributory scheme which will make pensioners be at par with their counterparts in the former policy, having shared the burden of contributing to the scheme yet they earn less which placed at disadvantage position. (2) The study seek for a policy that will allow the pensioners to be involved in the management of their invested funds because the outcome of the accrued interests are not made known to them the development is open to fraudulent tendencies,

REFERENCES Adams, R.A.(2005):Public Service Accounting and Finance, Lagos, Corporate Publisher Ventures Ameh, O, E. et al (2017) Impact of Contributory Pension Scheme on Economic Growth in Nigeria : An Empirical Analysis. International Journal of Research in Humanities and Social Sciences, Vol. 4. N0 6, pp 24- 35. Anazodo, R,O, et al (2014) The Effect of New Pension Scheme on Retirees in Nigeria 2004- 2014. www.arabianjbmr.com/RPAM index.php. Idowu, K. O. (2006). Pension Reform and Public Worker’s Welfare in Nigeria. Paper Presented the Asia-Pacific Regional Meeting of

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Economic Association, Hong Kong, January. http//uk1869mailyahoo.com/ym/schowletter?msgid, accessed3/9/2006. Imhanlahimi, Joseph, E. and Eseoghene, I. J. (2011). Pension Reform, Public Workers’ Productivity and Welfare in Nigeria, Lessons for Other African Countries. Indian Journal of Economics and Business Publisher, April –September. Jane, C.(2000) Investment; CIB Publishing, U.K. Nwite , S. C. and Perpetua, E. C.(2014) Highlight on the Differences Between 2004 and 2014 Pension Reform Act in Nigeria. International Journal of World Research, Vol:1 Issue VIII, August. Odia.J.O.and Okoje,A. E.(2012) Pensions Reform in Nigeria; A Comparison between the Old and New Scheme.Afro Asian Journal of Social Science,Vol. 3, No 3.1,Quarter 1. Ogunbameru, O. and Bamiwuye, S. (2004); ‘‘Attitude Towards Retirement and Pre-retirement Education among Nigerian Bank Workers’’. Education Gerontology, 30 (5); 391-401. Olanrewaju, EA (2011); The Pension Reform Act 2004 and Wellbeing of Nigerian Retirees; A Sociological Evaluation of its Provisions, International Journal of Humanities and Social Sciences, 1(21),315- 325.

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THE MEDIATING ROLE OF ENTREPRENEURSHIP BETWEEN EXTERNAL ENVIRONMENTS OF PUBLIC TERTIARY INSTITUTIONS AND ORGANIZATIONAL PERFORMANCE

ALHAJI ADAMU SAIDU, SAIDU ALI & MUSA IBRAHIM ABUBAKAR Department of Public Administration, Abubakar Tatari Ali Polytechnic Bauchi State

Abstract The contribution of entrepreneurship in the increase of organizational performance was generally accepted beyond any matter of doubt; this has made scholars, corporate organizations and policy makers gives reasonable consideration in research, practice and creates an enabling environment for entrepreneurship. Initially literatures in this area focused on private driven organization. Even though extant researches gain little contribution on public sector entrepreneurship. However, to this moment there wasn’t any specific model that explained public entrepreneurship. In this study, public entrepreneurship was examined by testing developed hypotheses of an integrated model. Data was collected from 160 academic administrators of public tertiary institutions in Nigeria. The findings indicate a positive significant relation between the external environment of the public tertiary institution and organizational performance in terms of effectiveness and alignment through the mediation process of entrepreneurship. In conclusion, discussion, implication and recommendation were made.

Keywords: external environment, entrepreneurship, organizational performance, public tertiary institution and PLS

Introduction The environment that surrounds public tertiary institutions was turbulent, dynamic and hostile which has prompted the need for entrepreneurial role within these organizations (Russell, 1999; Zahra, 1993, 1991; Covin &

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Slevin, 1990; Miller & Friesen, 1984). As a result of divergent issues that trial the external and internal environment of public tertiary institution, these issues were related to excessive demand of new and changed in the old ones. The economic meltdown hits countries in the world, which affected resource acquisition and accumulation adversely. As a result, the resources were shrunk thus facilitates increased in costs, reduction in the quality of goods and services. The excessive changed in technology and strategic management techniques, necessitate for the reactions of external environment (Tierney, 1999). Consequently the public tertiary institution was also affected by these changes and require for its adaptability to the changing environment (Collis, 2002, 2001; Millin, 2001). The bureaucracy in the public tertiary institution in line with traditional method of consistency made it difficult to adapt to the changing environment (Benjamin, Carrall, Jacobi, Krop & Shires, 1993). Hence, the features of private sector organizations (Drucker, 1996) and entrepreneurial role in the public sector (Osborne & Gaebler, 1993; Chaffee & Sherr, 1992) was designed to be a better option as a model for the public tertiary institution to replicate. Therefore, the public tertiary institutions should adapt to changes that occurs within their external environment considering the demand for students, technological advancement and government policies before losing their relevance and contribution (Collins, 2001). Thus, entrepreneurship contributes to the increase in organizational performance of the public tertiary institution in terms of effectiveness and alignment.

Literature review This section was built on the literatures that were associated to the dependent variable, independent variable and the mediating variable as 2.1 Organizational effectiveness, 2.2 External environments and 2.3 Entrepreneurship.

Organizational performance The term organizational effectiveness has received a wide range of understanding, but the popular view on the theory of organizational effectiveness goes to the definition of effectiveness as “the extent to which organization were able to meet their goals” (Culbertson 1993). Four

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concepts were identified as the factors that create organizational effectiveness; these concepts are Goal attainments approach, system approach, the competing value approach and strategic constituency approach.

Goal attainments approach Autonomy: Was of the view that organization should function within a closed system. That, organization could achieve its goals when the pressure it receives from the external environment was absent or insignificant. Thus, the management of the organization should have the ability to differentiate what they perceived as effective and ineffective. The managers of an organization were of the desire to practice in an autonomous organization (Hage, 1980; Mintzberg, 1983). An autonomous organization allowed its manager to have a free will in setting the organizational objectives and to pursue it logically with little or no interferences from the external environment. Other scholars like (Katz & Kahn, 1978) counter this way of thinking using an open system perspective. 2.1.2 Open system perspective: was built on the idea that organizations could be interdependent with other group or units that are within their environment, this perception observes that organization are connected with other organization within their environment which emphasized that this system allowed the external group to influence an organization in relation to setting goals and the degree to which they actualized these goals. Achievements of internal goals were considered as efficiency, but effectiveness could only be achieved on how well an organization meets the demands and yearning of the stakeholders that were attached to the organization (Pfeffer & Salancik 1978). The relations would help the organization to establish a closed rapport with the stakeholders and the external environment such that good relationship creates conducive atmosphere for an organization to strive and became effective. Pfeffer and Salancik, (1978) were of the opinion that “Organization comply with the demands of others, or they act to manage the dependencies that create constraints on organizational action”.

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Competing value approach: Scholars like Pfeffer and Salancik (1978) explains that interdependence between organization exist due to the inability of an organization to have a locus of control on the entire condition capable of achieving an action or to gain the desired outcomes. (Gray, 1985;1989) describes interdependence as a multiple stakeholder with interest that they compete in the organization. The interdependence concept to stakeholders is quite meaningful, especially when refers to organizational theories of 1930s and 1940s, which explained that the organization functions like a human as they were found to be political in nature and therefore functions irrationally (Etzioni, 1964).

Strategic constituency approach: this approach explains the effectiveness of an organization could only be achieved when the demands of its constituencies within the area of operation where met, the Organization should have the supports and acceptance of its constituencies to enable its survival (Pfeffer & Salancik 1978). The idea behind this concept was to enable the organization creates a harmonious environment by associating with the political arenas and other pressure groups that have a reasonable control to resources. Another irony is organizations have different groups within its constituency having different forms of demands, thus, the organization could be effective when it satisfies those constituencies that may like caused a havoc for its survival (Robbins, Judge Millett & Boyle, 2013).

External environments The research conducted by Covin and Slevin, (1991) observes that external environment plays a major role on entrepreneurial activity either as a group or individual level. The research has used numerous Model and convention which shows that external environment play a significant role in the viability and quality of entrepreneurial activity (Covin and Slevin, 1991). The environment that surrounds the public sector Administrators is presently complex and boring more than it was previously. Thus, the

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need for change has become inevitable. Morris and Jones, (1999) posit that change within an organization is not only determined by the resources, but also determined by the organizational structure and managerial ideology that characterized public Institutions. It is important to note that there are certain environmental factors which favor the dire need of entrepreneurship in the public Institutions. Zahra (1991) elucidates that the majority of environmental hostility, dynamism and heterogeneity are instrumental to the entrepreneurial process. The external environmental feature of public sector has now been observed with turbulent, excessive rise in change, difficult and complex environmental condition (Morris & Jones, 1999; Osborne & Gaebler 1992; Miller & Friesen, 1982). Looking at the external environment of the public Institutions, it consists of three dimensions; Political, Complexity and Munificence. Despite the fact that, there are other external environmental condition which influences entrepreneurship in the public sector. In line with the present review of literatures on public sector entrepreneurship, these three were seems to be the mechanism of external environmental dimension that have an effect on entrepreneurship within the public sector (Kearney et al. 2010). In studying these dimensions, we begin with Political. Nutt, (2005) opined that “the external environment of public organization is littered with political consideration”. Due to political interest public policies was changing continuously given limited time frame to public administrators. Therefore, “change in political, environmental factors will lead to fundamental different approaches in managing the political environment, so public sector organizations need to be able to adapt to political, environmental factors affecting their organization” (Kearney et al. 2007). In understanding the peculiarities around, public Institutions should strive to manage the hostile environmental factors staring their organization and to explore any potential entrepreneurial opportunity within their disposal considering the present economic antecedence. Public service organization have been pressurized from different angle to improve its efficiency and effectiveness in order to reduce over dependency on public funds (tax payer) by ensuring that the quantity and quality of their services

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given to their clients was maintained, it was along this line they were confined to proffer different techniques that were used in the private sector and Management as well (Brignall & Modell 2000). Another dimension is complexity, Boyne, (2002) “public organizations are ‘open system’ that is easily influenced by external events….. It is the obligation of public managers to guard and better this permeability of organizational frames, to guarantee that services are responsive to public needs.” Public institution experience different and difficult kind of transaction, especially with some key entities in their environment, addressing environmental factors (Nutt 2005). The public managers are now surrounded with a difficult scenario more than it was before because of the economic crisis. The public sector should strive to neutralize the environmental complexity by identifying opportunities through entrepreneurial activities. The munificence as the third dimension, it is conceptually identified as multidimensional by nature that consist dynamism, technological advancement, industrial growth and production of new product (Zahra 1993). Munificence environment assists organizations to overcome their shortfalls in resources, which will invariably help in resolving conflict (Dess & Beard 1984). Aldrich (1979) suggested that environmental munificence promotes abundant opportunity for entrepreneurship and changes in Organizations. It should be noted that the public sector organization has to familiarized with the munificence around their environment to get strength and new technological breakthrough to address the economic crisis that spoil the public finances and leads to high rate of unemployment. The external environment which is characterized by political, complexity and munificence due greatly influences public sector organization should have the ability and capability to adjust to their external environment to enable them developed entrepreneurial and to enhance Performance in terms of effectiveness and alignment. This study will be the ground for the first and second hypotheses.

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H1: The external environment of the public tertiary Institution has insignificant direct relation to organizational performance.

H2: There is a positive relationship between the external environment of the Public tertiary institutions and entrepreneurship.

Entrepreneurship The field of entrepreneurship received invariable critics over its literal meaning. However, there is a consensus that the name originated from a French word ‘Entrepredre’ which means to perform something (Swedberg 2000). Arguments were widely spread that it was rooted from the writings of Richard Cantilonin in 1755, he regarded an entrepreneur as an economic agent, who has an Eagle eye, zeal and commitment in identifying opportunities and utilize them appropriately (Blaug 2000). Adams Smith (1776) holds that entrepreneurial role includes making a new organization with the aim of business. He observes the ideals of entrepreneur as one who owns a business by identifying the potential that surrounds the environment and utilized them appropriately. Entrepreneurial processes can be regarded as “practices, methods, and decision-making styles” (Lumpkin and Dess, 1996). Like other fields of Social Science, Entrepreneurship does not have a single universally accepted definition, but rather defined from different points of view. Schumpeter (1934) equates entrepreneurship with innovation, Kirzner (1973) with arbitrage, Leibenstein (1968) with removal. Weber (2005) described the ethical character of the entrepreneur as firmly rooted in protestant temperance and reliability, shrewdness and devotion to business and family, other writers that are critical to these described temperance and reliability as an obsession with danger and risk taking, a preoccupation with breaking rules (Bellone & Goerl, 1992; Terry, 1998). Entrepreneurs exercise some level of risk in the process of production, as the future is unknown challenges like competitors and technology, made a change to be inevitable for them to meet the challenges that are found both within and outside their environment. Perhaps it could deduce that, Entrepreneurship is simply a process that involves having an idea,

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combines it with resources and attached some level of risk in the production of goods and services capable of making expected returns. Entrepreneurship is known with the innovation of new or modernization of the existing products (goods and services), which enhances the development of our environment (Eisenstandt, 1980; Libecap, 1996; O’Neill, 1977). Entrepreneurship leads to social, economic, and political innovation (Eisenstandt 1980). This innovation is “creatively destructive” (Schumpeters 1934) The idea change or transforms the entire industries. In this study three dimensions were related to entrepreneurship these are innovation, risk taking and pro-activeness which were also regarded as entrepreneurial orientation. Miller (1984) has emphasized that entrepreneurial organization “engages in product market innovation, undertakes somewhat risky ventures and is first to come up with ‘proactive’ innovations, beating competitors to the punch”. Miller, (1984) advocates that, entrepreneurial orientation was discovered in the course of exhibition risk taking, innovativeness, and pro-activeness in an organization. These dimensions can change invariably from one another and still can portray the features of entrepreneurship. The following hypotheses could be built in line with these literatures.

H3: There will be a significant positive relationship between entrepreneurship and organizational performance.

H4: Entrepreneurship will have a mediating role between external environment and organizational performance.

Entrepreneursh ip

External Organizational Environment Performance Figure 1: The Research Framework Source: Survey, (2019)

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Methodology and Research design The methodology of this research was based on survey method of research that intends to show the relationship between external environment and organizational effectiveness through the mediation of entrepreneurship as hypothesized in this study. The explanation under this heading could be summarized under the following subheadings as Sample and Data collection, the Questionnaire design, measures of dependent variable, measure of independent variable and measures of mediating variable as well.

Sample and Data collection This study was developed on public tertiary institution in Nigeria and obtained a sample from the institutions that were owned by the state and federal government as the criteria for including institution among the target sample beside the ownership by the government institution should be at the tertiary level. These, have conglomerates Universities, Teaching Hospital, Colleges, Polytechnics and institutes. However, questionnaires were sent to targeted respondent that were mainly academic administrators and data were collected.

Questionnaire design The instruments that were used in private and public sectors were applied in this research simultaneously in developing the questionnaire of this research and pre-examined by conducting a pilot test and eventually get to the field to obtain information from the target respondents that are academic administrators of the public tertiary institution in Nigeria.

Measure of the Independent variable The measures of external environment were focused on a modified version of four dimensions adapted from Zahra, (1996), five point Likert scale was used and measured the dimensions with varying number of items. The dimensions of this construct includes dynamism was measured with six items, technological opportunity was measured with three items, growth

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was measured with two items and new products was measured with three items.

Measures of the mediating variable Measures of Entrepreneurship were focused on three indicators adapted from Lumpkin & Dess (1996) Using five point scale. The constructs were measured using a modified version of three items; the indicators are innovation, risk taking, pro-activity.

Measures of the dependent variable The measure of organizational performances in this research was geared towards nonfinancial terms such as effectiveness and alignment. The construct was developed on fourteen items proposed by Huselid & Becker (1997).

Analysis and Result The application of PLS SEM technique has received a laudable support from researchers, the technique was observed to be user friendly and a non parametric which does not require the normality of the data. This technique was first introduced by Wold (1982), PLS has the capacity to hold a good number of endogenous constructs and make out a measurement error. Similarly, this method observed a common method that elucidates estimation on causal relationships in the path modeling analysis. In using the PLS SEM, estimation could be done with a small sample of data that may likely be highly skewed (Bagozzi, 1994; Chin & Newsted, 1999;Diamantopoulos & Winklhofer, 2001; Hair, Ringle, & Sarstedt, 2012; Wold, 1985). This research contains a complex model with a sample of 160 respondents and was found to be small. In connection with the complexity of the research model, thus PLS SEM was accepted as the appropriate technique for analysis in this research in obtaining the desired result of the study.

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When carrying out SEM analysis two steps approached were being applied Chin (1998). The first was to examine the measurement model, in term of validity and reliability while the second part dealt with the testing of hypotheses.

Measurement of the outer Model The essence of this measurement is to test the validity and reliability of the construct which could also be examined through the analysis of the content, convergence and discriminate validity.

The Content Validity In multivariate analysis writings, content validity helps to explain about the degree at which items that determine the construct have high loadings on the particular construct more than the level of its loadings in the other constructs of the same model. Scholar like Hair, et al., (2010) and Chin, (1998) were of the view that factor loading facilitates in the evaluation of content validity, table 1 below has indicated the factor loading. However, when the loadings of items are in high proportion in the other construct of the same model beside their core construct these items should be deleted. The result of this research has depicted that all items obtained are loaded higher in their construct, thus supports the validity of the measurement model.

Table1 Factor loadings Significant Constructs Loadings Composite Reliability AVE External Environment 0.7488 0.5019 0.6246 0.8191 0.6669 Entrepreneurship 0.8981 0.5319 0.6984 0.7267 0.8653 0.779

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0.8324 0.7689 0.4349 0.6406 Organizational Performance 0.9348 0.5271 0.6717 0.5599 0.7605 0.7378 0.7972 0.7914 0.7281 0.7238 0.6944 0.7319 0.609 0.7517 0.8336 Source: Survey, (2019)

The Convergent Validity The measure of convergent validity elucidates the degree at which item that are group could measure the exact construct (Hair, Black, Babin & Anderson, 2010). Most of the writing on SEM clarifies that convergent validity could be observed through the composite reliability and the average variance extracted (AVE). The loadings are estimated to be high where the variables are expected to reach 0.7 as a cutoff point in respect of the composite reliability in order to be statistically relevant while the average variance extracted are expected to cover 0.5 as a cutoff point for it to become statistically significant. Table 1 depicts the result of the analysis has gone beyond the cutoff point, therefore, supports the fitness of the model in relation to the convergent validity (Bagozzi & Yi, 1988). Moreover, composite reliability was used to determine the level of internal consistent reliability as it was widely agreed to be less biased than to measure the internal consistent reliability with Cronbach’s alpha coefficient. The illustration on table 1 shows that the construct were 220 | P a g e

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adequate as their value reached the cutoff point of 0.7 (Hair et al., 2010; Nunnaly, 1978). Thus the measurements established the fitness of the constructs.

The Discriminate Validity The findings with the discriminate validity help to explain the extent at which the items that were found in a particular construct, share no similarity with the items on the other construct in an identical model. In addition to this the items that are found within a construct ought to be different among them, to a larger extent than the differences among the other constructs. The scholarly contribution of Fornell and Larcker (1981) have explained the steps using in investigating a discriminate Validity, these steps enlighten how this evaluation was made between the items in the diagonal as signifies on Table 2 which shows the square root of the average variance extracted (AVE) the measurement of the correlation was shown off diagonal. Hence, discriminate validity was established when the assessments in the diagonal are higher than the assessment was established off the diagonal. The result in Table 2 shows the principles of measuring discriminate validity has been found adequate.

Table 2 Correlations of Discriminate Validity Constructs Entrepreneurship External environment Org. Performance Entrepreneurship 0.767 External environment 0.437 0.706 Org. Performance 0.725 0.414 0.741 Source: Survey, (2019)

The structural Model (inner Model) and Hypotheses Testing The PLS techniques, practice expound that once the measurement model has achieved the required benchmark regarding the cutoff point that relates to the validity and reliability of the construct, then the hypotheses of the study were analyzed further through algorithm and bootstrapping. Table 2 and Figure 1 have indicated the results of the algorithms.

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Entrepreneursh ip 0.437 0.672 External Organizational environment Performance 0.120

Source: Survey, (2019)

Figure 2 Path Coefficient

Table 3 Direct relationship hypotheses Hypotheses Beta Stand. T P- Decision Error Statistic value s Entrepreneurship -> Org. 0.672 0.0598 11.2374 0.00 Support Performance 4 ed External environment. -> 0.437 0.0643 6.7977 0.00 Support Entrepreneurship 3 ed External environment -> Org. 0.1195 0.0653 1.8294 0.03 Support Performance ed Source: Survey, (2019)

As it was indicated in figure 2 and Table 3 above Entrepreneurship has an effect on Organizational Performance (β=0.672 t=11. 237 p<0.00). The External environment has a positive significant effect on entrepreneurship (β=0. 437, t=6. 798, p<0.00). Furthermore, External environment has no significant effect on organizational performance (β=0. 120, t=1. 829, p<0.03). Therefore, the findings of this research have supported hypotheses H1, H2, H3 as Hypothesized earlier.

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Table 4Testing the mediating role of entrepreneurship Hypothesis Beta Stand Error T-statics P-value Decision External Env->Enterpre-> Org per 0.306 0.055 5.552 0.00 Supported Source: Survey, (2019)

As the study hypothesized the mediation of entrepreneurship between external environment and organizational performance, which was also analyzed through the estimation of PLS algorithms. Table 4 above indicates that external environment has an effect on Organizational performance through the mediation of entrepreneurship (β=0. 306, t=5. 439, p<0.00). Similarly, the technique of bootstrapping was used for the test of mediation in Smart PLS.

The Predictive Relevance of the Model This study has applied the Stone-Geisser test to examine the predictive relevance of the model as it was applied in other studies with similar technique of blindfolding method (Geisser, 1974; Stone, 1974). Sattler, Völckner, Riediger, and Ringle, (2010) viewed that “blindfolding procedure is only applied to endogenous latent variable that have reflective measurement model operationalization”. Nonetheless, the research used blindfolding technique to explain the predictive relevance of the model, in this analysis, cross validated redundancy measure (Q2) was applied to explain the predictive relevance of the model (Chin, 2010; Geisser, 1974; Hair et al., 2013; Ringle, Sarstedt & Straub, 2012; Stone, 1974). The aim of Q2 is to examine the nature of how the model predicts the data of omitted cases (Chin, 1998; Hair et al., 2014). Towards a similar line of discussion the studies that were conducted by Reinartz, Haenlein, and Henseler, (2009) recognized that a model with Q2 statistic (s) more than zero would be observed to have a predictive relevance. In other words Models that obtain a higher positive Q2 are regarded to earn more predictive relevance, Table 5 indicates the cross- validated redundancy Q2 test.

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Table 5 predictive Relevance Q2 SSO SSE 1-SSE/SSO Entrepreneurship 1127 1025.6949 0.0899 Organizational Performance 805 776.887 0.0349 Source: Survey, (2019) The result on the Table 5 indicates that the Cross-Validation Redundancy measure Q2 for the endogenous latent construct are above zero, thus recommends the predictive relevance of the model (Chin, 1998; Henseler et al., 2009).

Assessment of Effect Size (F2) The analysis of the effect size helps the researcher to explicate the relative effect of an exogenous variable as a result of a change In the R-square (Chin, 1988). The result indicates that the R-square increases at the time when the exogenous construct was deleted from the model In the process of the analysis (Chin, 1998). Furthermore, Cohen (1988) recommended that the assessment of F2 supposes to be within the bracket of 0.02, 0.15 and 0.35 which enlighten as small, medium and large effect. Table 7 has indicted the effect size of the constructs.

Table 7 Effect size of the Latent Variable R-squared Included Excluded f-squared Effect size External Environment 0.537 0.17 0.793 Large Entrepreneurship 0.537 0.527 0.022 Small R² included is 53% Source: Survey, (2019)

The above Table has elucidate that the effect size of the external environment and entrepreneurship on performance are 0.793 and 0.022 considered as large and medium as it was suggested by (Cohen 1988)

Discussions and Conclusion The main concern of this study was to observe the effect of the external environment on entrepreneurship and organizational performance also to 224 | P a g e

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observe the mediating effect of entrepreneurship between external environment and organizational performance with regards to the needs in observing the model to be consistent with the public tertiary institution of Nigeria. Data were collected from academic administrators as the respondents and PLS SEM was applied for the analysis. The results have supported all the hypotheses. Where hypothesis 1 claimed: There is no direct significant relation between external environment and organizational performance (β=0.120, t=1.83, p=0.03). Hypothesis 2 claims There is a positive relationship between the external environment and entrepreneurship (β=0.44, t=6.80, p=0.00). These explicates that external environment has less influence on organizational performance, however, the external environment has a significant effect on entrepreneurship Whereas, hypothesis 3 was developed on there will be a significant positive relationship between entrepreneurship and organizational performance (β= 0.67, t= 11.24, p= 0.00) studies that were in support of this finding includes Lumpkin and Dess, (1996); Zahra and Covin, (1995); Dada and Watson, (2013). Similarly, hypothesis 4 was developed on there is mediation of entrepreneurship between external environment and organizational performance (β=0.31, t=5.55, p=0.00) thus, the result has supported this hypothesis.

Theoretical Implications The study has replicated the present literatures in the public sector organization by giving details on the influence of external environmental on organizational performance of the public tertiary institutions. In addition to this development, the research maintains the analysis of the external environment of public sector this study has contributed theoretically; the analysis of external environmental effects on entrepreneurship is among this contribution that received the required attention. This association has been supported which calls for additional research to revalidate this assumption. Furthermore, the mediation process of entrepreneurship explains the relationship between external environment and organizational performance became another

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contribution especially in the area of public entrepreneurship. This study has been able to explain the joint effect of the external environment and entrepreneurship on organizational performance. Moreover, the previous studies that concern with the effects of the external environment for entrepreneurship were mostly conducted in private sector organization only few literatures were centered on the public sector. Thus, this study has been able to conduct an empirical study that concern largely on public sector organization with particular reference to public tertiary institutions.

Practical implications The findings of this study would facilitate the practical implication by helping the public managers, policy makers and other stakeholders in public tertiary institution to improve their organizational performance. To put in differently, organizations that are entrepreneurial could have the ability to utilize the challenges that surround the external environment of the public sector to gain competitive advantage ahead of those that were not entrepreneurial. Similarly, the result indicates those organizations that are unable to meet the challenges of their external environment as a result of demand for new product/service or changed for old product/service and technological advancement would have the propensity to loss their student, clients and allocations (grants). Finally, this study was conducted in the public tertiary institution of Nigeria and the academic administrators were the focused, especially when considering entrepreneurship in public tertiary institution.

Suggestions for future research The contribution of the exogenous on the endogenous has accounted only 53 percent of the R2 included which left 47 percent for other variables to explain, therefore suggested for additional variables to explain the remaining variables unaccounted. The study was only conducted in public tertiary institutions, thus, similar study should be conducted in other public sector, such as health, transport, and other public utility departments to facilitate for future generalization.

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Cohen, J., (1988). Statistical Power Analysis: A computer program., Routledge. Culbertson, H.M., (1993). Excellence in public relations and communication management. Public Relations Review, 19(1), pp.95–96. Dada, O. & Watson, A., (2013). Entrepreneurial orientation and the franchise system organisational antecedents and performance outcomes, Available at: ://WOS:000321022000005. Dess, G.G. & Beard, D.W., 1984. Dimensions of organizational task environments. Administrative Science Quarterly, 29(1), pp.52–73. Diamantopoulos A. & Winklhofer H. M., (2001). Index construction with formative indicators: An alternative to scale development. Journal of Marketing Research, 38(May), pp.269–277. Eisenstandt, S.N., (1980). Cultural institutional orientations , entrepreneurs , and social change : comparative analysis of traditional civilizations ’. Chicago journals, 85(4), pp.840–869. Etzioni A., (1964). Modern Organizations, New Jersey: Eaglewood Cliffs. Fornell, C. & Larcker, D.F., (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), pp.39–50. Geisser, S., (1974). A predictive approach to the random effect model. Biometrika, 61(1), pp.101–107. Available at: http://biomet.oxfordjournals.org/content/61/1/101.abstract. Gray, B., (1989). Collaborating: finding common ground for multiparty problems, Michigan: Jossey-Bass. Gray, B., (1985). Conditions facilitating interorganizational collaboration. Human Relations, 38(10), pp.911–936. Hage, J., (1980). Theories of Organizations: Form, Process, and Transformation, A Wiley-interscience publication. Hair, F.J. et al., (2014). Partial least squares structural equation modeling (PLS-SEM). European Business Review, 26(2), pp.106–121. Available at: http://www.emeraldinsight.com/doi/abs/10.1108/EBR-10-2013- 0128.

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Hair, J.F., Ringle, C.M. & Sarstedt, M., (2013). Partial least squares structural equation modeling: Rigorous applications, better results and higher acceptance. Long Range Planning, 46(1-2), pp.1–12. Available at: http://linkinghub.elsevier.com/retrieve/pii/S0024630113000022. Hair, J.F., Ringle, C.M. & Sarstedt, M., (2012). Partial least squares: The better approach to structural equation modeling? Long Range Planning, 45(5-6), pp.312–319. Available at: http://linkinghub.elsevier.com/retrieve/pii/S0024630112000593. Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R.E., (2010). Multivariate Data Analysis 7th Ed., ed., Upper Saddle River, New Jersey: Prentice Hall. Huselid, M. A & Becker, B.E., (1997). The impact of high performance work systems, implementation effectiveness, and alignment with strategy on shareholder wealth. In The 1997Academy of Management Annual Meeting, Human Resource Management Division. pp. 1–24. Katz, D. and Kahn, R.L., (1978). The Social Psychology of Organizations 2nd editio., New York: John Wiley. Kearney, C., Hisrich, R. & Rochie, F., (2007). Facilitating public sector corporate entrepreneurship process:: a conceptual model. Journal of Enterprising Culture, 15(3), pp.275–299. Available at: http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN= 31186194&site=ehost-live. Kearney, C., Hisrich, R.D. & Roche, F.W., (2010). Change management through entrepreneurship in public sector enterprises. Journal of Developmental Entrepreneurship, 15(04), pp.415–437. Available at: http://www.worldscientific.com/doi/abs/10.1142/S1084946710 001646 [Accessed May 20, 2014]. Kirzner, I.M., (1973). Competition and Entrepreneurship, Chicago: University of Chicago Press. Leibenstein, H., (1968). Entrepreneurship and development Review of Economics, American,

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DURBAR AND FESTIVAL TOURISM AS CATALYSIS FOR REVENUE GENERATION IN NORTHERN PART OF NIGERIA

*DONATUS, EVEREST AKALAZU1 *ALY AUDU FADA2 *MAMMAN JIMOH AHMADU3 **UCHE -IBEABUCHI CHINYERE4 *Department of Leisure and Tourism Management, Federal Polytechnic, Bauchi. Bauchi State **National Institute for Hospitality and Tourism, Lagos Study Centre

Abstract The Northern part of Nigeria is endowed with different cultural festivals, Nigeria as a nation is blessed with much festive events. The paper tries to find out whether durbar and festival tourism could be a catalyst for revenue generation in northern parts of Nigeria. Theoretical frame works were carefully discussed. The survey method was adopted using the self completed questionnaire to obtain data. 113 questions were administered and were dully filled by the respondents selected from three (3) states of Nigeria namely: Bauchi, Gombe and Kano. Among the major findings is that durbar festival can be another source of revenue generation if well harmonized and organize in a confined environment. Therefore, it is recommended among others that durbar festival has the power to attract both local and international tourists and visitors. Hence, it should be well organized so as to enable participants have value for their money.

Keyword: Durbar Tourism Revenue Festivals and Tourists.

Introduction Durbar dates back to the history of man. However, organized, durbar was introduced in Nigeria by colonial administrations which were held in 1911 (www.revolvy.com). The durbar is annual festival celebrated in several 233 | P a g e

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northern cities of Nigeria. Pearl of tourism magazine (2004) stated that durbar is particularly one of the key activities during the cultural festivals. The durbar features the cowry of horses from the Eid- prayer ground to the palaces of the traditional rulers where horse -racing takes place. Durbar is significant in many ways as it show cases the traditional regalia that depict the wear used by forefathers in the northern parts of Nigeria. Durbar as an activity held to identify various groups with the stock- in trade such as warrior's hunters and farmers and such durbar is an exciting festival that attracts visitors and tourists from around the globe to experience a rich cultural heritage of the northern Nigerian. Hence, it becomes imperative to properly organized durbar festival in a confined environment in such a way that it will attract local and international tourists so as to boost the revenue of the northern states, as well as the country at large. Durbar as cultural festival is not peculiar to Nigeria alone, but to most Islamic nations that celebrate Ramadan.

Objective of the study The main objective of the study is to find out whether durbar and festival tourism can serve as catalyze for revenue generation in the northern part of Nigeria with other specific objectives: 1. To find out whether durbar and festival tourism can serve as catalyst for revenue generation 2. To determine how its revenue would be generated. 3. To find out if durbar and festival tourism could be organized quarterly.

Theoretical frame work Durbar festival is an annual festival celebrated in several cities of northern Nigeria. This festival marks the end of Ramadan and is also shared with eid -el- Kabir and eid fitri, Muslim holidays. It begins with prayers followed by a parade of the Emir and his entourage of horses, accompanied by musicians, and ending at the Emirs palace. Durbar festivals are organized in cities such as Bauchi, Kano, katsina, Sokoto, Gombe, Niger, Kaduna etc. according to Danbatta (2012) stated that durbar is a traditional festival

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among the emirates of northern Nigeria, the biggest one being that of Kano, which was followed by Katsina. It is a festival that shows cases hundreds of horsemen ride in variant and beautiful ceremonial dresses. Durbar festival has been in existence as an artistic expression of the northern people of Nigeria to communicate as well as sell their cultural heritage to the outside world. Hence, not only political and economic activities were important, but also the arts. Durbar, because of its beautiful regalia had been the best festival attracting visitors and tourists from all parts of the world to come witness a moving art with the grandeur and display of divergent colours worn by the horses. The costumes and musical instruments also add colour to the festival. The spectacular parade of horsemen during durbar festival can be bought by visitors and tourists if well packaged and harmonized. The spectacular parade of horsemen, from different emirates who assembled to exhibit horsemanship during sallah celebration and other royal cavalry, drummers, and trumpeters, praise singers and wrestler, as well as other people performing risky and sometimes magical spells are all fascinating experiencing. Hence, The Entirety of all these events if well harmonized and package can be bought by visitors and tourists which will serve as a source of revenue to the country. Griswold and Badmus (2013) asserted that visitors also come from the breath and length of Nigeria in addition to those who come from countries in Europe, Asia and the Americas. Hence, to the presence of different tourists across the globe is a pointer that will determine how the revenue will be generated.

Festivals in Nigeria Donatus and Fada (2007) asserted that festival is an entertainment which helps to promote a destination. Getz (1991) defined festival as "a themed public celebration which extends leisure and cultural opportunities beyond every day experiences and choices" festivals constitutes some of the most fascinating manifestations of Nigeria culture which tourists observed with great relist okorofor, (1994) cultural festivals of Nigeria are briefly discussed below:

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Arugungu Fishing Festival: amongst the cultural festival in the northern parts of Nigeria is the arugungu fishing festival of Kebbe state. It is traditional festival since 1973; the event is organized to honour the visit of sultan of fishermen. The festival is a mega event that attracts local and international tourists and visitors from around the globe. Kallon Kuwa Festival: kallon kuwa festival is an annual festival that attracts different people from all worth of lives especial those within the communities and neighbouring town. People enjoy this festival because it symbolizes the ending of cropping season and give them hope that kaka will arrive (which signify wealth for different spheres of life, from social to economical). Kallon Kuwa is a festival been cherish by the farmers. They are in love because it means that from certain period of time they will not go to the farm. It shows that the time has come for rest and to enjoy different types of music. Most of the instruments used for this music include the following: trumpet (Kakaki) ona Goge or Goie (one-string fiddle) Algaita (huge of lute) these instruments are used during her cultural festivals especial the Hauser speaking communities. (htpp//www.legit org //1158429 hausa festivals holidays Nigeria. Sango Festival: is an annual festival held among the Yoruba people in honour of Sango, a thunder and fire deirty who was a warrior and the third king of the Oyo Empire after succeeding Ajaka his elder brother, it was renamed in 2013 to Sango festival by the government of Oyo state, the festival is usually held in August at the palace of the Alaafin of Oyo and observed in over forty countries around the world. According to Oluseye (2014) he asserted that Sango festival is celebrated for one week, which has attracted over 20,000 visitors and tourists, Lagos Black heritage Festival: is an annual event in Lagos that also includes the Lagos carnival. The festival is a feast of culture and history aimed to show cases the richness and diversity of the African heritage. Lagos black heritage festival (LBHF) celebrate African creativity with diverse performances such as the traditional and contemporary dance, music, and painting, photo explosion among others.

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Igogo Festival: the igogo festival is a Yoruba festival held In Owo, Nigeria. It is held annually in September to honour queen Oronesn a mythical wife of Rerengejen. During the festival, the incumbent Olowo of Owo an high chief, of Owo kindom dresses like women with coral beads, beaded gown and plaited hair, this festival does not permit the wearing of head gears and caps as well as booming of drums and firing of guns. The festival lasts for 17 days and begins with upeli proceedings by the Iloro chief. The chiefs are led by akowa known as Akowa of Iloro who is the head of Iloro chief. The Upeli procession lasts for 12 days and featured several activities including Utegii, Ugbate and Ugbabo, Uyanna and Ugbate. It is also period for the celebration of new yam. (Www Owo-kingdom.net) Ofala Festival: the Ofala festival is an annual ceremony practiced by the indigenes of Onitsha, and of recent years by other neighbouring Igbo communities such as Nnewi in Anambra state, South Eastern Nigeria and ukpo in Dunakofia, local government area. It serves as a rite of renewal of king or obi and it is similar to the Igwe festival in Benin and the ine, Osi or Ogbanigbe festival in many mid - west Igbo communities of Nigeria. The term Ofala is derived from two Igbo words ofo (English: authority) and ala (English: land) the festival is celebrated within two days mostly in October by the Obi (English: king). The festival usually starts with a traditional twenty one gun salute followed by an all night ufie (Royal gong) drumming, dancing and other cultural activities. In the afternoon, the other communities, age groups, women and youth of the community usually through the palace grounds or Ime Obi dressed in traditional or ceremonial attires befitting the festival occasion. The royal music or Egwu ota is played during the entrance of the Ndichie or red cap chiefs who arrive after the gathering of the crowd and bringing along a few of their friends and family members their procession to the emergence of the palace. The highlight of the festival is the emergence of the obi in his royal regalia to the cheer of crowd. (www.revolvy.com). Durbar festival is one major motivation of tourism. Hence, if well harmonized and package, it will be another source of revenue to the north

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and other parts of Nigeria and by extension to the creation of jobs to the people.

As Far As Durbar Tourism Is Concerned A Simple -Three Fold Typology Can Be Applied: Durbar Tourism Attracts Tourists and Visitors: due to the large influx of visitor and tourists during durbar festival it becomes necessary to organize it in a secured and confine environment such that these persons will have value for their money. In doing that the oganisers will be spurred to ensure that it is colorfully show cased and displayed such that everyone gets value for her money. Durbar Tourism Inspires Tourists: tourists are inspired by what they see. Thus, the tourists will be experience filled if they witness different cultural festivals and exhibitions as well as visiting some historical sites in the state visited. That will lead to extension of their stay as well as spending some nights in any of the befitting hospitality industries in the state. Durbar Promotes Peace and Harmony amongst Persons: apart from its aesthetics, durbar festival could be a tool to promote peace, harmony and prosperity amongst different groups of people from different religious background, as well as respect for tourists and visitors.

The Benefit of Durbar and Cultural Festivals • Economic Benefit: durbar festival is one major festival that is celebrated in the northern parts of Nigeria. Hence, it is an economic life line that will bring much needed foreign exchange as well as boost domestic income if well organized and packaged. • The Power of Visual Therapy: durbar festival can give a much needed impetus to tackling particular health problems and diseases when participated or when acted as spectators. • The Power to Promote Hidden Talents: durbar tourism will be meant to be celebrated in a confined environment where gate fees will be collected. Hence, most persons with different talents will want to pay the fees to display their talents in order to generate revenue from

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the festival. The monies generated have some multipliers effect to the states and the country at large. • Protection and preservation of Different Festivals: durbar and cultural festival has been the stimulus behind the preservation and protections of many of the great historical regalia and costumes used during mega festivals. • Promote mass tourism: large numbers of people can be motivated by different interests. That explain the reason why Okoli, (2001) asserted that mass tourism refers to the participation of large numbers in tourism. Durbar tourism can be promoted in mass when entrepreneurs, decides to develop some of the tourist attractions by providing some facilities to accommodate the large numbers of visitors and tourists that have the interest of experiencing durbar festivals. Once that is done durbar tourism can be packaged and sold to national and international tourists.

Survey Methodology A survey was carried out within 3 states of Nigeria namely: Bauchi, Gombe, and Kano. These states were chosen because they are pre-dominantly Muslim speaking states that celebrate ramadam. The study made use of primary data. The primary data were obtained from questionnaire administered. While secondary data are already existed. They include previous research work, from internet, and textbooks. The survey was conducted on 113 respondents through the use of questionnaire which was drawn proportionately from the three states mentioned. Among respondents selected from the states are royal workers from the emir's palaces tourist's visitors in the visited states. This sample is based on Freund and Williams of 1999 who recommended that due to infinite population the researcher is of the liberty to adopt randomly selected a measurable number considered for the study. The 113 questionnaire were correctly filled and returned back. Percentage was used to analyze data.

Findings and Discussion The findings made are discussed as follows:

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Determining if durbar and festival tourism can be catalyses for revenue generation. Table 4.1 64(56:6%) of the respondents strongly agree that durbar and festival tourism can be a source of revenue generation within the states in the north. Griswold and Badmus (2003) asserted that visitors also come from the breath and lengths of Nigeria, in addition to those who come from countries in Europe, Asia, and Americas. Stating that the presence of different tourists across the globe is a pointer which indicates that it can be a source of revenue to northern states and by extension to Nigerian Determining how the revenue would be generated. Table 4.2 shows that 52(46%) of the respondents strongly agree that revenue could be generated if durbar festivals are harmonized and packaged in a confined environment such that gate fees are collected from tourists and visitors. Determining if durbar and festival tourism could be an annual event. Table 4.5 shows that 22(19.5%) of the respondents strongly disagree that it shouldn't be annual event. But considering it from the revenue point of view, it is suggested that it should be organized quarterly every year. However, tourism magazine (2004) stated that, durbar festival is one key activity that is organized during festival periods. What that means is that it should be organized in every sallah periods

Conclusion: The finding has revealed that durbar is catalysis to revenue generation. Thus, if it is well packaged and organized in a confined environment and been extended to days, it could be a boost to the hospitality industry. Therefore, it is hope that those in charge of organizing durbar festival will develop guidelines and objectives for the growth and management of durbar which will be strictly adhere to for better co-ordination

Recommendation: The researchers recommend that: Durbar and festival tourism to be truly serve as catalysis of revenue generation; it must be organized in a confined environment that will attract gate fees, such that tourists and visitors will have value for their money.

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Durbar festival is an event that attracts local and international tourists. Therefore, it should be well organized so as to enable participants relates freely with one another. Such could leads to promoting the festivals Both the state and local government should assist in organizing the durbar festival by providing security agencies that will build confidence to the lives of the tourists and visitors. Durbar promotes peace among religious divide. Therefore, it behooves on the government to provide a befitting environment where these festivals will be carried out successfully.

Reference Danbatta, M. (2012). The pull of faith: The autobiography of magaji danbatta.Kaduna: Ahmadu Bello University press. Donatus, E.A and Fada A.A (2017) Fundamentals of Transport and Tourism New Era production, no 149 Nassarawa street,Bauchi state- Nigeria. Freund, J. and Williams, F. Elementary Business Statistics (1991). The Modern Approach 6th Edition New Jersey Prentice Hall Inc. Griswold, W. And Badmud, M. (2013). The Kano durbar: political aesthetics in the Bowel of the elephant; American journal of cultural sociology, vol. 1, p1. Oluseye, O. (2014) www.revolvy.com/page/Sangofestival: "magic thunder as Tourist storm Oyo for Sango. Accessed 27th November, 2018. Shehu, A. (2010). Ukpo, www.revolvy.com/page/ofalaFestival: Commoner's Last Hope in Dairy Trust. Retrieved 27th November, 2018. www.revolvy.com/page/ Lagos Black Heritage (2015), beckon accessed 28th November, 2018. Oluseye, O. (2014) www.revolvy.com/page/Sangofestival: "magic thunder as tourist storm Oyo for Sango. Accessed 27th November, 2018 Okoroafor, C. (1994) Tourism in Nigeria Progress Problem and Prospects Min. of Trade and Industry Abuja. Okoli, C. (2001): Tourism Development and Management in Nigeria. Enugu, Jee Communications.

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Shehu, A. (2010) www.revolvy.com/page/ofalaFestival: Commoner's Last Hope In Ukpo, Dairy Trust Retrieved 27th November, 2018. The pearl of tourism magazine in the Nigeria sun vol.001 (2014). Published by ministry of tourism and culture, Bauchi state Nigeria. Htt://www.revolvypagedurbarfestival.com Madhyapur Thimi accessed 31th October, 2018. www.owo-kingdomnet. Archived from the original on February 10, 2016 Accessed on the 28th November, 2018. www.legit.ng/1158429-hause-festival -holidays - Nigeria.com accessed 22th December, 2018.

APPENDIX 1 Table 4.1 Durbar and Festival Tourism Can Be Catalysis for Revenue Generations Option No of respondents % responses SA 64 56.6 A 31 27.6 D 11 9.7 SD 4 3.5 UND 3 2.7 TOTAL 113 100 Source: Field Survey 2019

Table 4.2 How Would Revenue Be Generation? Option No of respondents % Responses SA 52 46 A 33 29.2 D 12 10.6 SD 06 5.3 UND 10 8.8 TOTAL 113 100

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Source: Field Survey 2019

Table 4.5 Durbar And Cultural Festival Could It Be An Annual Tourism Event? Option No of Respondents % of Responses SA 22 19.5 A 11 9.7 D 17 15 SD 20 17.7 UND 43 38.1 TOTAL 113 100 Source: Field Survey 2019

APPENDIX 2

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ource: Eid-el-Kabir: Emir Muhammadu Sanusi II leads ancient Durbar festival in Kano

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Appendix 3 Source: Arugungu Fishing Festival

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PRIVATIZATION OF PUBLIC ENTERPRISES IN NIGERIA 2000 - 2017: GAINS AND LOSSES

1ALKALI N.P. 2ISAH IBRAHIM 3OLATUNJI TUNDE E. Department of General Studies, Nigerian Institute of Leather and Science Technology, Zaria, Nigeria.

Abstract: Nigeria, a country so richly endowed in natural resources and human capital is yet to find its rightful footing among the strong economic comity of nations. A major reason being responsible for this economic stagnation is the phenomenon of corruption and economic mismanagement leading to the LOSSES as against the GAINS. Governments have not been pragmatic in implementing the policies of privatization and commercialization as it should. The loses appear stronger than the gains because of corruption and bad political leadership.

Keywords: Privatization, Economy, Mismanagement, Corruption, Political Leadership, Public Enterprise

Introduction Indeed, it is a paradox that Nigeria, the world’s eighth largest exporter of crude oil, a country endowed with many resources still has more than 70% of its population living below the poverty line because of corruption and economic mismanagement. History has shown that no nation of the world grew and enjoyed steady development in virtually all spheres of its national life without actually experiencing good and selfless political leadership. This is largely because qualitative growth and development has always been an outcome of good governance (Achebe, 1984:1). Statistically, agriculture accounted for almost 30.9% of the GDP, 70% of 246 | P a g e

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employment but only contributes about 2.5% of export earnings. Crude oil and natural gas account for about 15% of GDP, 71% of export earnings and 79% of government revenue. In 2012, Nigerian economy slowed down from 7.4% growth in 2011 to 6.6%; the share of manufacturing sector in the GDP declined from 6% in 1985 to about 4% in 2011 (Neszelyi, 2014). Nigeria has been in the search for economic breakthrough, for year after years several trials and errors methods has been implored. She settled on privatization and commercialization. Privatization as an economic principle is a systematic transfer of appropriate functions and activities of State-owned enterprises to the private sector where services can be regulated more efficiently by the market and price mechanism. Privatization entails measures that result in transfer to the private sector of activities hitherto run by public agency (Gustier and Jerome, 1996) and so in its purest form, privatization refers to the transfer of total equity, ownership and control of public enterprises to the private sector by the sale of on-going concerns or the assets of the following liquidation (IFC, 1995). The end products of privatization are thus a significant change in the relationship between the government and the private sector.

Statement of the Problem Governments, over the years have come up with many palliative economic policies to plant Nigeria’s economy on a strong footing. Privatization has been practiced by many countries (Lice, 1997). Nigeria believed there were many attendant advantages in privatization and indeed many have put up writings on that but none has looked at the gains vise a vise the losses of privatization. This is the crux of the matter. What then are the Gains and Losses of Privatization to Nigeria?

Research Hypothesis

H0 Privatization has brought gains to Nigeria

H1 Privatization has brought losses to Nigeria

Objectives of the Study

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i. to specifically find out the gains and losses of privatization to Nigeria ii. to find out whether political leadership and corruption has affected privatization in Nigeria iii. to test the hypothesis above, among others.

Literature Review In economic development, financial and fiscal policies to bring development must be employed by a state. Financial policy deals with money, interest, and credit allocation; fiscal policy focuses on government taxation and expenditures. Together they represent the bulk of public sector activities (Todaro, 2011). Privatization is an offshoot of the public sector efficiency activity. The classical economists led by Adam Smith preached the concept of minimum government interference in market decisions for over a century. This concept limits the activities of the state to the maintenance of law and order, wadding off external aggression and the creation of social infrastructures. The involvement of the state in economic activities is limited to the creation of enabling environment for productive ventures. However, the revolutionary work of J. M. Keynes in 1936 advocated for large- scale involvement of the public sector in economic development programmes and business activities in a State (Wale-Awe, 2010). Privatization of State-owned enterprises in the production and financial sectors, hinges on the neoclassical hypothesis that private ownership brings greater efficiency and more rapid growth. During the 1980s and 1990s, privatization was actively promoted by major international bilateral (USAID) and multilateral agencies (World Bank, IMF). Many developing countries have followed this advice although the extent of their philosophical agreement, as opposed to the financial pressures exerted by these funding agencies, remains unclear. In addition to the belief that privation improves efficiency, increase input, and lower costs, in fact, proponents argue that it curbs the growth of government expenditures, raises cash to reduce public internal and external debt, and promotes individual initiative while reward entrepreneurship.

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Privatization has apparently been successful in promoting greater efficiency and higher output in many cases. Nevertheless, many privatized assets were concentrated in the hands of small groups of local and international elites (Todaro, 2011).

Methodology In this section, an analysis of the gains and losses of privatization of public enterprises in Nigeria between the years 2000 – 2014 are presented. Furthermore, we draw up a pattern for understanding future process of privatization of public enterprises in Nigeria. But first, we present five (5) different means by which privatization in Nigeria was carried out and then relates it with each public enterprise privatized in their categories/sectors within the period under review. These different means of privatization includes: (i) Public offer for sale of shares of affected enterprises through the Nigerian Stock Exchange. (ii) Private placement of shares of affected enterprises. This method of privatization was employed in cases where government holding is so small that it cannot force public offer of shares. (iii) The third method is the sale of assets where the affected enterprise cannot be sold either by public offer of shares or by private placement of shares. (iv) Management Buy Out (MBO). Under this method, the entire or substantial part, of the enterprise is sold to the workers. (v) Deferred Public Offer. It occurs in enterprises which are viable, but if sold by shares the value to be realized will be out of tune with the value of the underlying assets of the enterprise.

Furthermore, in our presentation of the list of privatized public enterprises in Nigeria, each public enterprise that was privatized is listed under its related sector. In each sector, the name of the enterprise, year or privatization, buyer of the enterprise and the amount at which the enterprise was given out (or the initial amount deposited when it was

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given out, which usually is 25%). NCP is the highest decision making body on policies relating to the privatization and commercialization policies of the Federal Government.

Table 1: Privatized Power Generating Companies in Nigeria (2000- 2014) Company Name Year or Buyer and Privatization Amount Privatized/ Privatization means Initial Take Amount Paid Geregu I November 1, 2013 Amperion Ltd, the core $3billion investor of the firm Transcorp 5th June 2012. Transcorp/Woodrock $300million Ughelli Consortium Kainji/Jebba 5th June 2012. Mainstream Energy Solutions $760 m Hydro and RusHydro Shiroro 5th June 2012. North-South Power Ltd, Niger $354 million State Government , XS Energy Ltd, BP Investment Ltd, Urbamn Shelter Ltd, Road Nigeria Plc, China International Water Electric and China Three Gorges Corporation Egbin November 1, 2013 Sahara Energy Resource $407.3 million Nigeria is the local partner to the NEDC/Korea Electric Power Company (KEPCO). Sapele Power November 1, 2013 CMEC/EURAFRIC Energy JV $201,000,000 Plc Consortium Afam Power PLC Ongoing privatization process

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Table 2: Privatized Power Distribution Companies in Nigeria (2000- 2014) Company Date/Year or Buyer and Privatization Amount Privatized/ Name Privatization means Initial Take Amount Paid Abuja November 1, 2013 Copperbelt Energy Corporation (CEC) Plc, Xerxes Global Investments of Malami Kano November 1, 2013 Sahelian Power (SPV) Limited Benin November 1, 2013 Virgeo Power Ltd

Eko November 1, 2013 West Power and Gas $135m

Ikeja November 1, 2013 KEPCO/NEDC Consortium $134.75 Ibadan and November 1, 2013 Integrated Energy $160million Yola Distribution and Marketing Company Kaduna November 1, 2013 Sahelian Power SPV $102m Electric Enugu November 1, 2013 Interstate Electrics $106.4m

Jos November 1, 2013 Aura Energy Ltd

Port November 1, 2013 4Power Consortium Harcourt

Table 3: Privatized Cement Companies in Nigeria (2000-2014) Company Name Year or Buyer and Privatization Amount Privatized/ Privatization means Initial Take Amount Paid Benue Cement May, 2000 Dangote Industries Limited Co. Plc. (Nigeria)/ Core Investor

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Cement July, 2002 Scancem (Norway) Nigerian Company of April, 2001 Individual and institutional Northern Investors / Core Investor Nigeria Sale Share Floatation Plc.

Ashaka Cement March, 2001 Bluecircle Industries Limited/ Company Plc. Core Investor Sale

Calabar cement August 2002 Flour Mills & Holcim of Spain Company Ltd / Liquidation

West African October, 2000 Bluecircle industries Limited Portland January, 2001 Nigeria Individual and Cement institutional Co. Plc Investors / Core Investor Sale Share Floatation

Nigeria Cement Oct 2002 Nigerian individual and PLC institutional Investors / Share sold to Institutional Investors on the Floor of NSE

Table 4: Privatized Oil/Gas Companies in Nigeria (2000-2014) Company Name Year or Buyer and Privatization means Amount Privatized/ Initial Privatization Take Amount Paid Unipetrol Nigera May, 2000 Ocean and Oil Nigeria limited Plc Nigerian

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individual and institutional investor / Core Investor Sale Share Floatation

African October, Saidia petroleum Nigeria Limited / petroleumn Plc 2000 Core investor sale

National Oil & October 200 Conpetro Nigeria limited Nigerian chemical April, 2001 individual Marketing co. Plc and institutional investors / Core investor sale Share flotation West African April, 2004 Majestic Oil Service Ltd / Core Refinery Investor Company Limited, Sale Sierra Leone

Table 4: Privatized Banks in Nigeria (2000-2014) Company Name Year or Buyer and Privatization means Amount Privatized/ Initial Privatization Take Amount Paid FSB international April, 2001 Nigerian individual and institutional Bank Plc Investor / Share flotation NAL Merchant April, 2001 Nigerian individual and institutional Bank Plc Investors / Share flotation

international April, 2001 Nigerian individual and institutional merchant Bank Investors / Share Plc flotation

Nigerdock December 2001 Global Energy Company Limited / Nigeria limited Core Investor Sale

Assurance Bank Mar 2002 Parmex/Gensec Nigeria Plc Consortium Ltd

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Table 5: Privatized Hotel Companies in Nigeria (2000-2014) Company Name Year or Buyer and Privatization style Amount Privatized/ Initial Privatization Take Amount Paid Fastac 77 Hotel Jan 2002 UAC Properties Plc / Asset Sale

Capital Hotels Plc Oct 2002 Hans Gremlin Ltd / Core Investor (Abuja Sheraton Sale Hotel)

Nigeria Hotel Oct 2002 Beta Consortium / Asset Sale Limited: Ikoyi Hotel Limited

Nigeria hotel April, 2003 Chyzob Enterprises/ Asset Sale limited: house no. 8 & 9 lease road, Ikoyi, Lagos

Nigeria Hotel April, 2003 Dangote Group / Asset Sale limited: Addit section (property), Lagos

Central Hotel, Kano July, 2004 Broadfields and NAL Assets Management / Asset Sale

Table 6: Other Privatized Companies in Nigeria (2000-2014) Company Name Year or Buyer and Privatization means Amount Privatized/ Initial Privatization Take Amount Paid Electricity Meter Dec 2002 Dantata Investment Ltd / Core Company of Investor Nigeria, Zaria Sale

Savannah Sugar Dec 2002 Dangote Ind Ltd (Nig) Core Investor Company Ltd. Sale

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National Trucks Dec 2002 Art Engineering Limited Art Manufaturers, Engineering Kano LTD Core Investor Sale

Nigeria Dec 2002 Reinsurance Acquisition Group N1.5bn Reinsurance Core Investor Corporation Sale

Daily times of Oct 2004 Russal Steel comp of Russian Nigeria Plc Willing Buyer/Willing seller

Peugeot Automobile July 2004 Kaduna Sate Investment Ltd ASD Nigeria Ltd Motor / Sale to existing shareholder Core Investor

Ore-Irele Oil Palm September 2004 CPL Agric Limited / Core Investor Sale NPA Quarters, October 2004 Labana Glover ventures / Asset Lagos Sale

Delta Steel February 2005 Global Infrastructure Ltd / Core $130 million Company Limited Investor

Aluminium Smelter February 2005 Russel / Core Investor $30 million Company of Nigeria (ALSCON Leyland Nigeria Arpil 2005 Eba-Odan Commercial and Ltd Industrial Company Ltd/ Revalidation of Sale

We note that much of the details presented here were sourced through the instrumentality of document analysis of some literatures which include but not limited to (Ilo, 2001, Nigerian Bulletin, 2017). Having presented the data regarding public enterprises privatized within the period under review, we shall then proceed to analyze and discuss this data. 255 | P a g e

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Results and Discussions In this section we present an analysis of the privatization details listed in the last section. Here, the analysis is based on the financial implications/status of those enterprises during privatization and now. Also, the economic viability of those enterprises with respect to their input to the Nigerian economic growth will be discussed. Lastly, performance of the enterprises and their human resource management capability are considered and discussed. a. Current Financial Implications/Status of Privatized Enterprises In Table 7, a listing of the total fund realized in the privatization of public enterprises in each sector is given in US Dollar, even though the exchange rate differs across the year. Table 7: An approximation of money realized from the privatization process in Nigeria during the period under review. S/N Privatized Sector Total Fund Realized 1. Power Sector $1.6bn 2. Oil and Gas Sector $ 3. Hotel and Leisure $ 4. Banking Sector $ 5. Cement Industries $ 6. Others $ Total

According to Adewale (2011), Nigeria spent between 1973 and 1995 about $100bn to establish public enterprises but so far after more than a decade of privatization just meager $1.6bn has been realized as gross earnings from the exercise, alluding to the fact that most of the privatized companies were sold at giveaway prices. b. Economic viability of Privatized Enterprises The Cost-Benefit Analysis (CBA) methodology is considered to appropriate in the discussion of the economic viability of the privatized public enterprises or the state-owned-enterprise (SOE) privatization. This CBA helps to evaluate the difference between the costs from the benefit, also 256 | P a g e

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known as Net Benefits (NB). The choice of the CBA is based on its ability to uncover both the loss and the gain resulting from such privatizations exercises. In addition, it is a pragmatic realization of the theory of welfare economics, which provides specific analytical framework and a set of procedures to summarize information and show the tradeoffs associated with these actions (Olajide, 2000). Also, CBA judges actions based on the objective of efficiency of resources allocation. Given the perimeter of CBA, a positive Net Benefit demonstrates gains in the privatization exercise, while a negative value for the same Net Benefits will imply a national loss to the privatization process. So now, we present some key variables, and parameters to be estimated for each of the privatized enterprise: i. Financial value: NCF = GOP – (T + DK)., represents the fair value, Net Cash Flow (NCF), of the enterprise, from the point of view of new owners. Where GOP is the projected Gross Operation Profit for the expected life of the enterprise after sale, T is taxes, and DK represents the expected change or increase in investment. ii. Economic value of the enterprise: can be defined as the present discounted value of the stream of Net Benefits (NB) accruing to the new owners from the national economy point of view. iii. Economic value under continued government intervention: is the net contribution of the enterprise to the national economy, that is, Net National Valued Added (NNVA). iv. WACC: - Weight Average Cost of Capital, it represents the cut-off rate below which the enterprise may be judged financially unprofitable. v. IRR: Internal Rate Return indicates the actual profit rate of the total investment outlay. In relation to the WACC, it is required that IRR is at least equal to WACC (IRR³ WACC) for the enterprise to be judged financial viable. vi. SDR: the Social Discount Rate is the rate at which the value placed by the society on future benefits and costs declines overtime. The long-term interest rate on US dollars is often used as a base for

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estimation, and adjusted for the prevailing financial and economic conditions of the country carrying out privatization/divestiture (here Nigeria) as a capital borrower. vii. ERR:- Economic Rate of Return. It represents the opportunity cost of government revenue. In relation to the SDR, it is required that ERR is at least equal to the SDR (ERR³ SDR) for the project to be judged economically viable.

Except for the cement and oil and gas industries, most of the privatized enterprises listed in the last section will actually have a very low WACC. Though both the GenCos and the DisCos still maintains a good future-based measure on IRR, but currently maintains an undesirable SDR, and ERR. We conclude that when the full financial implication of all phases of privatization by government are made public and all the listed estimation parameters are computed, we will realize that there are more losses than gain to the entire privatization process. c. Current Performance of the Enterprises Similarly, our analysis of the privatized public enterprises listed in the last section may portend same performance and output when weighted previous analysis drawn. It may be safe to narrate here that some of the privatized enterprises like Steel Rolling Company in Osogbo and Nigerian Telecommunications Limited (NITEL) might have gone comatose. However, it must well be noted that industries like the cement, oil and gas, and even power are thriving, and are strong indices to the fact that well organized privatization process with buyers whose company have all necessary wherewithal to better such enterprise, will improve the nation’s economy. To give credence to that of the power sector privatization, here is a report by Akintayo (2017) of Sweetcrude “Privatisation is the best thing that has ever happened to the power sector. So whenever people keep calling out the DisCos for inefficiency, I tell them to compare the kind of services Yola DisCo offers to those of the other DisCos”.“Yes! Because what we have currently are perfect examples of Yola DisCo owned and run by government, versus the other 10 Dis0Cos owned and run by private

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companies. So people can now compare their services and judge for themselves. Yola DisCo is doing far worse in terms of services and metering their customers. This vindicates the DisCos whenever people argue whether or not privatization has paid off,” he said d. Human Resource Management Capability Privatized Enterprises Furthermore, our classification of gains and losses resulting from privatization in Nigeria also factor in implications of privatization on human resource management in Nigeria. Ojiako (2013) identified the following as to relate privatization of enterprise to management of the human resources in the country: Implication on employees, over- employment and overstaffing, fear of job loss, employee layoffs and retrenchment, effect on employment, effect on employees’ income, effects on working conditions, effects on industrial relations. The author further stated that Privatization of public enterprises in Nigeria is associated with increasing level of complexity and instability and this has a wide ranging implication on the employees, employers, industries and the society in general as well as Human Resource Management. Also, Adewale (2011) pointed out that the privatized companies in the steel sector that used to employ up to 20,000 workers, now have less than 4,000 after the exercise. The Electricity Meter Company of Nigeria, Zaria that was privatized in December 2002 recently fired about 90 percent of its workforce. In another presentation, the Vice President, Prof. Yemi Osinbajo, said that official corruption and privatization of public enterprises led to massive losses in public revenue. He further added that official corruption and privatization of public resources have caused massive losses in public revenue. He climaxed his claim by saying a great deal of talent and enterprise that should focus on creativity and innovation is concentrated in wealth seeking activities. While this assertion may not be true for all other privatized public enterprise, we however noted that this loses in privatization process is the reason behind labor movement agitation during any plan of privatization of public enterprise. When considering the gains and losses accruing from the privatization of public enterprises in Nigeria, so many parameters may be factored into

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such consideration. Particularly when it relates to the issues of the losses incurred, the new owners of such privatized companies (power sector for instance) will quickly claim that gas shortages, inadequate transmission, lack of liquidity (or weak commercial viability) of actors along the value chain, and losses. All these continue to pose critical bottlenecks to efficient performance of the enterprises. In addition to the challenges leading to loses to power sector in Nigeria, the issue of funding the generating (GenCcos) and distribution (DisCos) companies do not have the financial muscle to the run company so as to achieve the required stability. To buttress this, Quaghe (2017) mentioned, also supported by (Independent Newspaper, 2017) that in 2014, government had to give a bailout fund of about N230 billion to the companies and with little improvement in the sector as it stands today. So, we may conclude that the whole privatization process of the public enterprises in Nigeria is analytically and fair- mindedly considered, there are more loses that gains; what the government aimed at (as also known with global practice and impact of privatization) is not what is been realized today. Hence, there must be critical consideration of future privatization of public enterprises in the country to prevent the errors that have bleated the previous phases of privatization. Similarly, Omigbodun (2013) noted that in evaluation of bids for privatization process, the choice of the preferred bidder and negotiations leading to payments by the preferred bidder always seem to go on endlessly. The preferred bidder usually has to borrow from the banks all the amounts they require for their investment in the privatized venture. This factor is at the heart of the problems with the model adopted for privatization by the FGN

Ibguzor (2003) highlighted the World Bank’s eight key lessons on experience of privatisation. These include: i. Privatisation works best when it is a part of a larger programme of reforms promoting efficiency. ii. Regulation is critical to the success of monopolies.

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iii. Countries can benefit from privatising management without privatising the ownership of assets. iv. The sale of large enterprises requires considerable preparation. v. Transparency is critical for economic and political success. vi. Government must pay special attention to developing a social safety net. vii. The formerly socialist economies should privatise in all possible ways that encourage competition, and they should experiment with all available methods that go beyond a case-by-case approach to privatisation. viii. In changing the public-private mix in any type of economy, privatisation will sometimes be less important than the emergence of new private business.

Hence, this must be the basis from Nigeria can draw its navigation for a future gainful privatization exercise.

Conclusion In conclusion, this paper presents chronological and sectorial base information about the privatization of public enterprise. Furthermore, an extermination of the gains and the losses were carried out and also presented. Our findings revealed that there are more losses to the nation than gains when the entire phases of privatization in the country (Nigeria) are considered.

References Ojiako O. C. (2013). PRIVATIZATION OF PUBLIC ENTERPRISES IN NIGERIA: HUMAN RESOURCE MANAGEMENT IMPLICATIONS. Retrieved from https://www.academia.edu/5484447/PRIVATIZATION_OF_PUBLIC _ENTERPRISES_IN_NIGERIA_HUMAN_RESOURCE_MANAGEMENT_I MPLICATIONS.pdf on 21st June 2018

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Nigerian Bulletin: Privatized Power Companies in Nigeria and Their Owners (2017). Retrieved from https://www.nigerianbulletin.com/threads/list-privatized-power- companies-in-nigeria-and-their-owners.239210/ on 21st June 2018 Independent Newspaper: The Privatization Of Afam Power Plant (2017). Retrieved from https://independent.ng/the-privatisation-of-afam- power-plant/ on 21st June 2018 Akintayo O. (2017). Nigeria: Govt unable to get new buyer for Yola DisCo. Retrieved from http://sweetcrudereports.com/2017/11/09/nigeria-govt-unable- get-new-buyer-yola-disco/ on 21st June 2018

Olajide M. D. (2000). Cost-Benefit Analysis Approach to Valuation and Pricing for Privatization Decisions: A proposal for Nigeria. Africa Economic Analysis. Retrieved from http://www.afbis.com/analysis/cost-1.htm on 21st June 2018

Adewale. P. (2011). Monumental Failure of Privatization in Nigeria: Retrieved from http://www.socialistnigeria.org/print.php?text=1850 on 21st June 2018

Vanguard Newspaper (2015).: Corruption, privatization cause massive losses in public revenue, says Osinbajo. Retrieved from https://www.vanguardngr.com/2015/08/corruption-privatisation- cause-massive-losses-in-public-revenue-says-osinbajo/ on 21st June 2018

Quaghe Z. J. (2017). Why privatization has not improved power supply in Nigeria. Retrieved from http://venturesafrica.com/why- privatization-has-not-improved-power-supply-in-nigeria/ on 21st June 2018

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Ilo N. A. (2001). IMPACT OF PRIVATISATION OF PUBLIC ENTERPRISES ON POVERTY REDUCTION IN NIGERIA (A STUDY OF TELECOMMUNICATION INDUSTRY IN NIGERIA). Retrieved from http://www.unn.edu.ng/publications/files/images/ILO%20NELSO N%20A..pdf on 21st June 2018

Omigbodun A. (2013). An Alternative Privatization Model. Retrieved from https://www.vanguardngr.com/2013/01/an-alternative- privatisation-model/ on 23rd June 2018

Igbuzor O (2003). Privatisation In Nigeria: Critical issues of concern to civil society. Retrieved from https://www.dawodu.com/otive2.htm on 23rd June 2018

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INFORMATION AND COMMUNICATION TECHNOLOGY: AS VERITABLE TOOL FOR SOCIO- ECONOMIC DEVELOPMENT OF NIGERIA

*AISHA MUSA (Mrs), *MARYAM .A. JIMOH (Mrs) & **AISHATU ALTINE ABDULHAMID Department of Office Technology and Management Kaduna Polytechnic, Kaduna. **Department of Business Administration and Management Cams, Kaduna Polytechnic, Kaduna State.

ABSTRACT This paper discusses information and communication technology as a veritable tool for economic development takes a look at the possibilities ICT always bring in the development of a economic especially in the developing countries. Many people think that humankind is at the down of a new era, that of an age of communication. Visions abound on how breakthrough in information technology will change the way we live, work, do business and interact. It is widely believed that the information age will bring radical change and improvement, and countries all over the world are busy with constructing the necessary infrastructure in order to meet the challenges of the information economic of the twenty-first century. Some of the findings made include: technology has a critical role to play in the development effort of the world, ICT is crucial to sustainable poverty reduction, mobile phones have an especially dramatic impact in developing countries, the internet has also spurred a growing wave of innovation and ICT provides key inputs for economic development. The paper concludes that information and communication technology has really played a vital role in economic development. The researchers therefore recommend that government should develop and support implementation of ICT policies and training institutes should provide ICT training within national policy framework. Keywords: ICT, Economic, Development, Society 264 | P a g e

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Introduction Information and communication technology can be traced back to the primitive era when man used drums and fire to communicate from one village to another. today, information and communication technology has witness a tremendous growth in the society, from one stage to another. information and communication technology constitute the necessary means for which a society develop to reach the state of industrialization and leapfrog into the information era. In any economic setting, the level of technology determines the level of economic growth. Technology is embedded in its ability to improve on the ways things are done in the past in order to achieve better output. Indeed information and communication technology is changing everything and we must respond to this pressure. This article assesses the process of societal changes; this initiative represents and discusses aspects to be represents and discusses aspects to be considered which include the issue of medium versus traditional communicative practices and the role of language. It is argued that information and communication technology can only become a tool for economic development if it is applied in a way that address the complex challenges of improving the lives of least privileged and most needy millions around the world (Kerry 2003). Giving the tool available, it is up to us to determine what type of change will take place and whom it will affect. Are we actually building an all – inclusive “global information society or a stratified world of information – rich and information – poor? Who will have access to the information society, and who will be left behind? Will only the young, wealthy, educated computer proficient, and English speaking quality form members of this new society? And if so, where does this leave the remaining majority of the world population? How can information and communication technology address the many problems the world faces today, a world characterized by widening gaps between the rich and the poor, inequality, war and social discrimination? Are we actually moving towards a new renaissance ear of enlightenment, or is it likely that we will continue on our current path of

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marginalization and social disintegration? Are existing disparities being redressed or are they just re-enforced?

Theoretical Background The information and communication technology for development discussion falls into a boarder school of thought that proposes to use technology for development. The theoretical foundation can be found in the Schumpeterian notion of socio-economic evolution, which consists of an incessant process of creative destruction that modernizes the modus operandi of society as a whole, including its economic, social, cultural and political organization. The motor of this incessant force of creative destruction is technological change, while the key carrier technology of the first industrial revolution (1770-1850) was based on water-powered mechanization, the second Kondrative (1850-1900) was enabled by steam powered technology, the third (1900-1940) was characterized by the electrification of social and productive organization, the fourth by motorization and the automated mobilization of society (1940-1970), and the most recent one by the digitization of social systems. Each one of those so-called long waves has been characterized by a sustained period of social modernization, most notably by sustained periods of increasing economic productivity. According to Carlota Perez; “this quantum jump in productivity can be seen as a technological revolution, which is made possible by the appearance in the general cost structure of a particular input that we could call the key factor, fulfilling the following conditions: (1) clearly perceived low-and descending-relative cost & (2) unlimited supply for all practical purposes; (3) potential all-pervasiveness; (4) a capacity to reduce the costs of capital, labor and products as well as to change them “qualitatively”. Digital information and communication technologies fulfill those requirements and therefore represent a general purpose technology that can transform an entire economy, leading to a modern, and more developed from of socio- economic and political organization often referred to as the post-industrial

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economy, the fifth Kondratiev, information economy, digital age, and

network economy, among others.

legislation legislation & Regulation

Financi & Incentive

Knowledge Capacities & Services Generic Infrastructure

e-government

e-business

e-health

e-education

Information and Communication Technology for Development cube: an interplay between technology (horizontal: green), society (vertical: blue), policy (diagonal: yellow/red) The declared goal of ICT-for-development is to make use of this ongoing transformation by actively using the enabling technology to improve the living conditions of societies and segments of economy. As in previous economic transformation of this kind (industrial revolution, etc.), the resulting dynamic is an interplay between an enabling technology, normative guiding policies and strategies, and the resulting economy transformation. In the case of ICT4D, this three-dimensional interplay has been depicted as a cube. In line with the Schumpeterian school of thought, the first enabling factor for the associated socio- economic transformations is the existence technological infrastructure: hardware infrastructure and generic software services. Additionally, capacity and knowledge are the human requirements to make use of these

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technologies. These foundations (horizontal green dimension in Figure) are the basis for the digitization of information flows and communication mechanisms in different sectors of economy (Mayuri 1992). When part of the information flows and communication processes in these sectors are carried out in electronic networks, the prefix “e-” is often added to the sector’s name, resulting in e-government, e-business and e- commerce, e-health, and e-learning, etc. (Vertical blue dimension in Figure). This process of transformation represents the basic requirements and building blocks, but they are not sufficient for development. The mere existence of technology is not enough to achieve positive outcomes (no technological determinism). ICT for Development policies and projects are aimed at the promotion of normatively desired outcomes of this transformation, the minimization of negative effects, and the removal of eventual bottlenecks. In essence, there are two kinds of interventions: positive feedback (incentives, projects, financing, subsidies, etc. that accentuate existing opportunities); and negative feedback (regulation and legislation, etc.) that limit and tame negative developments (diagonal yellow- red dimension in Figure). Information technology can also be seen as a supportive instrument that is to be integrated into the proposed means of development. Information as such possesses, number of intrinsic qualities which lend it an added advantage superior to the other technologies. Rationally speaking, microcomputers offer novel possibilities only because of their low cost and nearly unlimited computer potential. But information technology comprises much more. It is a means to generate better and faster data and to store and exchange information; and it offer the possibility to add structurally to an accrued fount of knowledge in a developing country like Nigeria. Knowledge is of essence in every sector and at every level of society. On the level of decision making and policy analysis the needs are evident. According to Chander (1990), the continued declined of data necessary to lay down and described the demographic, social and economic situation, constitute a severe handicap to development as there is no reference point

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to start from. In order to improve the situation, one should first explore the use of information technology thoroughly. This need is equally felt by specialists of fields other than information study. For example, archeologists point out the advantage of using information technology and setting up relevant databases for up keeping and maintaining the natural and cultural heritage. Even among those who generally oppose to modernization, we can hear praises regarding the use of information technology in enhancing the quality of needed information services. Many international databases are available and some specially developed for developing countries to ensure that one does not have reinvented the wheel.

The Meaning of Information and Communication Technology Information and communication technology includes any equipment or interconnected system or subsystem of equipment that is used in the automatic acquisition, storage, manipulation, management, movement, control, display, servicing interchange, transmission or reception of data or information action. Bhatnagar, and Schware, (eds.) (2001).. It refers to all technology applied to processing, storing and transmitting information in electronic form. The physical equipment used for this purpose includes computers, communication equipment and even electronic pocket .organizers (Lucas, 1997). Information technology is one of the greatest forces that are passing changes in the society today. It is one of the greatest trends of the tail end of the last century. It is changing everything and will continue to change things in the present century. The national policy on information technology (2001) sees information technology as the bedrock for national survival and development in a rapidly changing environment. Information and Communications Technology usually abbreviated as ICT, is often used as an extended synonym for information technology (IT), but is usually a more general term that stresses the role of unified communications and the integration of telecommunication (telephone

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lines and wireless signals), computers, middleware as well as necessary software, storage, and audio-visual systems, which enable users to create, access, store, transmit, and manipulate information. In other words, ICT consists of IT as well as telecommunication, broadcast media, all types of audio and video processing and transmission and network based control and monitoring functions. (International Telecommunication Union. 2009.) The expression was first used in 1997 in a report by Dennis Stevenson to the UK government and promoted by the new National Curriculum documents for the UK in 2000. The term ICT is now also used to refer to the merging (convergence) of audio-visual and telephone networks with computer networks through a’ single cabling or link system. There are large economic incentives (huge cost savings due to elimination of the telephone network) to merge the audio-visual, building management and telephone network with the computer network system using a single unified system of cabling, signal distribution and management. This in turn has spurred the growth of organizations with the term ICT in their names to indicate their specialization in the process of merging the different network systems. Originally, only information and communications technology (with communications in the plural) was considered correct since ICT refers to communications (in the sense of a method, technology, or system of sending and receiving information, specifically telephone lines, computers, and networks), not communication (the act of sending or receiving information by speaking, writing, phoning, emailing, etc. or a message containing such information), and the older form (information and communications technology) is still the only one recorded in professionally edited reference works (e.g. Oxford Dictionaries Online, Computer Desktop Encyclopedia, Web opedia, and Encarta World English Dictionary) and preferred by many style guides (e.g. Editorial Style Guide of the Republic of South Africa). Nevertheless, the form information and communication technology is becoming increasingly common and is now used in about half the books that can be searched using Google Books and is for example also used by the International Telecommunication Union.

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The Meaning of Development Development means growth, evolution, advancement, improvement, expansion, spread, progress, extension etc. The concept development is a set of activities that are carried out early in the systems engineering life cycle to collect and operational needs and challenges, develop alternative concepts to meet the needs, and select a preferred one as the basis for subsequent system or capability development and implementation.

The Meaning Economy Development Economic development is the process by which a nation improves the economic, political, and social well-being of its people. The term has been used frequently by economists, politicians, and others in the 20th and 21St centuries. The concept, however, has been in existence in the West for centuries. “Modernization, “westernization”, and especially “industrialization” are other terms often used while discussing economic development. Economic development has a direct relationship with the environment and environmental issues. Economic development is very often confused with industrial development, even in some academic sources.

Information and Communication Technology for Development (ICT4D) Information and communication technologies for development (ICT4D) Is a general term referring to the application of Information and Communication Technologies (ICTs) within the fields of socioeconomic development, international development and human rights. The basic hypothesis behind the approach is that more and better information and communication furthers the development of a society (be this to improve income, education, health, security, or any -other aspect of human development). In our times, the most tangible and effective way to improve on information and communication flows in a society consists in fostering ICT, ergo ICT4D. The dominant term used in this field is “ICT4D” or “ICT4Dev” (“ICT for development’). Alternatives include ICTD (‘ICT and

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development”, which is used in a broader sense) and development informatics. The concept of ICT4D can be interpreted as dealing with disadvantaged populations anywhere in the world, but is more typically associated with applications in developing countries. It concerns itself with directly applying information technology approaches to poverty reduction. ICTs can be applied either in the direct sense, wherein their use directly benefits the disadvantaged population, or in an indirect sense, wherein the ICTs assist aid organizations or non-governmental organizations or governments or businesses in order to improve general socio-economic conditions. The field is becoming recognized as an interdisciplinary research area as can be noted by the growing number of conferences, workshops and publications. Such research has been spurred on in part by the need for scientifically validated benchmarks and results, which can be used to measure the efficacy of current projects. There is also a — somewhat loose — community of both technical and social science researchers that has grown up around the annual ICT4D conferences.

The Role of ICT in Development In the past few decades, information and communication technology (ICT) has transformed the world. Its potential for reducing poverty and fostering growth in developing countries has increased rapidly. Mobile telephones provide market links for farmers and entrepreneurs. The Internet delivers vital knowledge to schools and hospitals. Computer improves public and private services and increases productivity and participation. By connecting people and places ICT has played a vital role in national, regional and global development and holds enormous promise for the future. It has been over 20 years since the first telephone company was privatized, 10 since the World Wide Web emerged, and 5 since the telecommunications bubble burst. How has ICT driven and evolved in response to these and other events? What has been learned about ICT trends and the policies that shape an information society? And how can further advances be fostered and facilitated? When tailored to needs, (Freeman 2002).

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ICT has the potential to raise growth in businesses of any size and countries at any stage of development. Related, but even more important, is ICT’s role in reducing poverty and inequality, both within and across countries. Thus it is crucial that ICT move closer to the mainstream of development economics and policies- nationally, regionally, and globally. Given ICT’s far- reaching payoffs-and the many efforts required to achieve them this report is aimed not only at ICT experts but also at the broader development community (Kery 2003).

ICT plays a vital role in advancing economic growth and reducing Poverty Research in the 1960s and 1970s showed how telecommunications strengthens economic production and distribution, public service delivery, and government administration. In the 1980s information became recognized as a crucial factor of production, along with capital and labour; in the 1990s globalization and the increasing information intensity of economic activity, coupled with rapid technological change and increase in their competitiveness have promoted growth and expanded opportunities for poor people in developing countries. ICT is an essential part of national infrastructure and private sector potential. It can create business opportunities, especially for companies located far from urban centers, and improve links among firms, suppliers, and clients. When used well, the Internet can be especially valuable for firms in developing countries because it provides opportunities to connect to markets and participate in trade, domestic and foreign. A recent survey of 56 developed and developing countries found a significant link between Internet access and trade growth—with the greatest benefits accruing to developing countries with the weakest trade links (Freeman 2002). As with other factors of production, such as capital and labor, ICT use differs based on business size, ownership, and export orientation. In developing countries Web site and computer (though not necessarily email) use are more common among service firms than firms engaged in manufacturing, agro industry, and construction. Web site and e-mail use

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are especially high in the telecommunications, information technology, real estate, and hotel and restaurant industries, and among exporters and foreign-owned firms. Among regions, firms in central and Eastern Europe use such technology the most, reflecting its correlation with national income. But Web sites and e-mail are also widely used in some low-income countries--Bangladesh, Kenya, Moldova, and Tanzania--suggesting that ICT is not a luxury (Hubert 2011). ICT is also crucial to sustainable poverty reduction, because it makes a country’s economy more efficient and globally competitive, improves health and education services, and creates new sources of income and employment for poor people. In addition, ICT enhances social inclusion and promotes more effective, accountable, democratic government, especially when combined with effective freedom of information and expression.

Conclusion Information and communication technology has played obvious roles in global development process by making the world a potential and continual emerging global village for business and social interactions. The challenge of the dynamic nature of ICT which sometimes makes it difficult to have more accurate data on its impact on societal development remains to be contended with. However, even if tracking the process with data its challenging, the obvious positive impact of ICT on development process, even in developing economies cannot be denied

Recommendations 1. Government should developed and support implementation of ICT policies, by stating policies that would enhance the use of ICT 2. Government should improve the capital investment in ICT, by providing the facilities that will enhance the use of ICT 3. It is recommend that development partners should support organization the implementation of ICT policies and strategies, to facilitate the use of ICT equipments

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4. It is also recommend that training institutions should provide ICT training within national policy framework in order to facilitate the use of the equipments

References Anderson, N. (2005). “Building digital capacities in remote communities within developing countries: Practical applications and ethical issues” Information technology, education and society Beer-Gabriel, J. (1989). Computers and the third world today. The courier. Bhantnagar, S. C. information Technology and socio-economic Development: Some strategies for Developing countries. New Delhi: Tata McGraw Hill. Chander, R. (1992). Information systems and Basic Statistics in sub-Sahara Africa. World Bank Discussion paper NO. 73. Washington DC; World Bank. Edward, E.. (2004). Technological Revolutions, Paradigm Shifts and socio- industrial Change” in Globalization, Economic Development and Inequality: An alternative perspective. Freeman, C. (2002). From industrial Revolution to the Information Revolution, Oxford University Press, U.S.A Graham, M. (2008). “Warped Geographies of Development: The Internet and Theories of Economic Development” (PDF). Geography Compass Hubert, M. (2011) “Towards a conceptual framework for ICT for Development: lessons learned from the cube framework used in Latin America.” open-access online article. Kerry S. (2003). Information and Communication Technologies, Poverty and Development: Learning from Experience. World Bank, Washington D.C., U.S.A Mayuri, 0. (1992). Social Implications of computers in Developing countries. New Delhi: Tata McGraw Hill. NO. 113. Perez, C. (1983) “Structural change and assimilation of new technologies in the economic and social systems” Futures, vol. 15. Unwin, T. (2009). ICT4D: Information and Communication Technology for Development. Cambridge University Press.

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AN EVALUATION OF THE INFLUENCE OF STRATEGIC HUMAN RESOURCE MANAGEMENT ON ORGANIZATIONAL PERFORMANCE

*SANI MUSTAPHA KURA **MOHAMMED ALHAJI YUSUF ***DANJUMA ABUBAKAR UMAR *Department of Social Work, Ramat Polytechnic, Maiduguri **Department of Business Education, Ramat Polytechnic, Maiduguri ***Department of Industrial & labour Relations, Ramat Polytechnic, Maiduguri

ABSTRACT Organizational performance is getting more and more significant, especially in a market with greater competition and self-motivated. Organizational performance is measured through different indicators. It guarantees the continuity of the organization to be competitive in a global marketplace. Normally, the implementation of performance indicators achieved through human resources. Human resources are the key for keeping the organization in the market so competitive. These human resources need to be managed effectively to achieve the required performance of the organization. It is necessary to manage strategically the human resources and to adapt at its strategy with organizational strategy. The aim of this study is focused on the influence of the strategic management of human resource in achieving organizational performance. This study was conducted based on primary and secondary sources. How much organizations appear competitive in the market through achieving the performance indicators? How important is the management of human resources in accomplishing organizational performance? So, through the skills, behaviors and attitudes would be expected by human resources to achieve the required performance in the organization.

Keywords: Strategic HRM, organizational performance, effective management, HR outcomes.

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INTRODUCTION Organizations are pursuing to generate much competition between them, taking more market, more customers, more sales, etc. Rapid changes stopping from globalization, development of information systems and other influences have triggered sophisticated competition. Numerous organizations are driven by the market to establish their goals in their performance. Some of the goals are: cost reduction, achieving sales levels, increasing the number of customers, increasing the market percentage, improving productivity and quality, innovative products. The realization of these goals will be achieved through the human resources management in organizations. Workforce, as the key to success, will enable the achievement of organizational performance. Human resources are regarded as one of the most important sources of today's firms. Human resources management is more self-motivated than other competitive sources because these people practise other resources in organization, create competitiveness and realize objectives. Thus firstly, organizations must understand the expectations of their workforce in order to achieve the desired performance. The realization of the expectations of employees will enable the desired behavior of employees in the business. Some of the desired significances of the organization in managing their workforce are: competence, cooperation of employees with managers, cooperation of employees between them, showing the abilities of employees; motivation, commitment and satisfaction; attitude and; employee behaviors. The overall goal of performance management is to build a culture as high performance in which individuals and teams to take responsibility for the continuous improvement of business processes and their skills and contribute in achieving the targets set by managers. In particular, management performance can be expressed as the approximation of individual objectives of employees with organizational objectives provided that employees support the culture of the organization. It provides for expectations to be situated defined and agreed in terms of role, responsibilities and accountabilities (expected to do), skills (expected to have) and behaviors (expected to be)(Armstrong, 2006).

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The purpose of strategic human resource management is to improve professional performance over individual’s management. The organizations required to manage their human resources effectively and efficiently to achieve the anticipated goals and objectives. The achievement the goals and objectives translate also in improved performance. So, the problems pre-eminent for discussion are: How should organizations manage their main source–human resources? Does strategic human resource management help to meet the needs, the goals and objectives of the business? As ought to be improved strategic human resource management to comprehend the performance? How should familiarise strategic management of human resources to increase organizational performance? The key objectives of the study are: a. To identify carefully how appropriate is in practice the theoretical aspect of strategic human resource management for the realization the organizational performance. b. To identify if organizations use the strategy of human resource management for the achievement of their performance objectives. c. To identify the significance of these strategies in the organization and in their performance.

LITERATURE REVIEW The achievements of organizational objectives can be different in different organizations. The studies emphasize the influence of HRM on organizational performance. Basically, and other studies in this area, point out that it is necessary to achieve organizational objectives and management of human resources should be strategic. Also, the strategies of human resource management should be integrated with the overall organizational strategy in the perspective of achieving the required performance. There has been much research on strategic human resource management that affects organizational performance. The discussions and definitions will be divided in two portions of communication: the strategic management of human resources and organizational performance.

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Strategic HRM concept Strategic HRM is a practise that involves the use of overarching approaches to the development of HR strategies, which are integrated vertically with the business strategy and horizontally with one another. These strategies define commitments and measures related to the overall organizational thoughts, such as organizational effectiveness, and to more specific aspects of people management, such as; resourcing, learning and improvement, reward and employee relationships. Strategic HRM focuses on actions that differentiate the firm from its competitors (Purcell, 1999). It is suggested by Hendry and Pettigrew (1986) that it has seven meanings: ➢ the use of planning; ➢ a coherent approach to the design and management of personnel; ➢ systems based on an employment policy and workforce strategy; ➢ often underpinned by a “philosophy”; ➢ matching HRM activities and policies to some explicit business strategy; ➢ seeing the people of the organization as a strategic resource; ➢ achievement of competitive advantage (Armstrong, 2006).

Strategic HRM has a strong focus on implementing strategic change and growing the skill base of the organization to ensure that the organization can compete effectively in the future (Holbeche, 2004). SHRM facilitates the development of a human capital that meets the requirements of business competitive strategy, so that organizational goals and mission will be achieved (Guest, 1987). Strategy of human resource management is an integral part of business strategy. The main focus of this strategy is to achieve organizational objectives. So, strategy, then, is a set of strategic choices, some of which may be formally planned.

Organizational performance concept Campbell’s (1999) theory defines performance as behavior or action relevant to the attainment of an organization’s goals that can be scaled, that is, measured. Moreover, job performance is defined as what one is paid to

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do, or what one should be paid to do. The theory states that the measurement options, be they ratings from a supervisor, peer, or self, a simulated work sample, or hard criteria (e.g. tallying revenue generated, costs saved, customer complaints, or some variant of a computerized performance assessment) besides being valid, reliable, and not deficient should be free of contamination from sources of variation that are not under the control of the individual (e.g. differences in technology impacting a person’s performance). Situational enhancers or constraints, if not taken into account in an appraisal, can contaminate the mean, variance, or both with regard to an individual’s performance. Observation and interpretation hold the key to the establishment of effective criteria. Yet, an ongoing problem in appraising people is the lack of reliability in the comment of their performance (Ronan and Prien 1971). This unreliability is largely attributed to well-known rating errors such as “first impressions”, “halo”, and “similar-tome”. Lifson (1953) found that active to one-third of performance measurement variance is due to rated differences despite the circumstance that the observers had considerable experience in observing and evaluating individuals in the workplace. Lance (1994) documented this finding. Experience, however, is not a substitute for training. To solve the problem regarding lack of reliability, an observer must be trained. In this section, training programs that have been shown to be effective are described, and the necessity of taking context into account is explained (Boxall, Purcell and Wright, 2007). Organizational performance is one of the most approximately and extensively used dependent variables in organizational studies today, and yet, at the same time, it remains one of the most imprecise and loosely- defined constructs (Rogers and Wright, 1998). In the strategy literature, the focus of attention on this construct has been concerned almost entirely with financial measures of performance. Conceptually, organizational performance has been defined as the comparison of the value produced by a company with the value owners expected to receive from the company (Alchian and Demsetz 1972). Venkatraman and Ramanujam (1986) indicate that a narrow definition of

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performance focus on the use of simple outcome-based financial indicators that are assumed to reflect the fulfilment of the economic goals of the firm. The literature reveals that studies into the HRM performance have not determined a specific and precise meaning for the organizational performance construct. Some studies have used subjective measures to evaluate firms’ performance, such as employee satisfaction, customer satisfaction, executive’s views about the organisation’s performance, absenteeism, employee commitment, and other behavior aspects. Other studies reference various objective measures for evaluating firms’ performance, such as financial and market indicators. As a result, there is no common theory concerning organizational performance, and researchers utilize different indicators or variables to measure this construct. For this reason, there is also a call for a precise theory of organizational performance (Janssens and Steyaert, 2009) and HRM researchers and professionals might give crucial and special consideration to filling such a gap (Guest, 2011). Another way, the concept of performance has been expressed by Brumbrach (1988) as follows: performance means both behaviors and results. Behaviors emanate from the performer and transform performance from abstraction to action. Not just the instruments for results, behaviors are also outcomes in their own right–the product of mental and physical effort applied to tasks – and can be judged apart from results. This definition of performance leads to the conclusion that when managing performance both inputs (behavior) and outputs (results) need to be considered. It is not a question of simply considering the achievement of targets, as used to occur in ‘management by objectives’ schemes. Competency factors need to be included in the process (Armstrong, 2006). In short, theory of performance is necessary to determine: relevant dimensions of performance, performance standards or expectations related to performance levels, restrictions on how the situation should be measured when assessing performance, the number of performance levels or gradient and the extent to which performance should be based upon

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absolute vs. relative comparison standards (Boxall, Purcell and Wright, 2007).

THE METHODOLOGY The purpose of this study is focused on the influence that has strategic management of human resources in achieving organizational performance. This study is based on two major sources of research. This study was conducted over the collection and analysis of various publications on this field. The secondary source, refer various publications that have been made in this area about empirical studies, various academic debates and analyses the different findings. These publications have been published in various journals, conferences and books. The primary source is based in the collection of data through questionnaires. The study is focused on the city of Kuala Lumpur. This is the paramount city in Malaysia for the importance in contributing to the Malaysian economy. Data collection is concentrated in two sectors, which are: the manufacturing sector and the service sector. These questionnaires were completed by general manager and in some cases straightforward by human resource managers. I have analysed 30 organizations, which are 16 organizations in the service sector and 14 other organizations are production sector.

STRATEGIC HRM AND PERFORMANCE Research between strategic HRM and business performance has dominated the academic and practitioner debate for more than two decades. However, most studies and publications in the field of HRM have defined the concept in terms of individual practices. According to Noe et al. (2007), refers HRM practices and policies that effect behaviors, attitudes and performance of employees. They are focused on several important practices which, in turn, can positively impact organizational performance, such as human resource planning, recruitment, selection, training and development, compensation, performance management and employee relations. Pfeffer reshapes these practices into seven HRM practices; these practices are expected to enhance organizational performance and

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enable the organization to increase a competitive advantage (1998). Such practices are detailed as follows (Boxall, Purcell and Wright, 2007): ❖ Employment security. ❖ Selective hiring of first-hand employees. ❖ Self-managed teams and decentralization of decision-making as the basic principles of organizational design. ❖ Comparatively high compensation contingent on organizational performance. ❖ Extensive training. ❖ Reduce status distinctions and barriers, including dress, language, office arrangements, and wage differences across levels. ❖ Extensive sharing of financial and performance information through the organization.

According to Michael Armstrong (2006), in the centre of this model is the performance as a function of the Ability + Motivation + Opportunity (AMO). Development of human resources strategy comes after is crafted business strategy. But before the drafting and formulation of business strategy should have analysed competences of the staff, the method how they motivate, the types of skills and knowledge employees. It is precisely this workforce that will achieve the performance indicators. Therefore, the realization of business strategy comes through integration of workforce opportunities, their expectations and other factors that influence inside and outside the organization. Thus, it is easier tracking of a human resources strategy and adaptation strategies with previous practice and practice to be followed for the implementation of performance. The performance will be implemented successfully to attain organizational performance satisfaction from reaching employees, their motivation, effective management of HR by production high quality products. ➢ In HRM-performance research, the performance outcomes of HRM can be viewed in different ways. ➢ HRM researchers have mostly referred to Dyer and Reeves’ (1995) classification of performance outcomes as follows: HR-related

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outcomes, such as turnover, absenteeism, job satisfaction, commitment. ➢ Organizational outcomes, such as output, quality, service, efficiencies, customer satisfaction. ➢ Financial accounting outcomes, such as profits, sales, return on assets, return on investment. ➢ Capital market outcomes, such as market share, stock price, growth (Boxall, Purcell and Wright, 2007).

THE IMPACTS TRATEGIC HRM ON PERFORMANCE Strategic management of human resources represents a transformation that is relatively new in the field of human resource management. An important role of strategic human resource management is about focusing the management in employees as a tool to gain competitive advantage. Now, organizations are made aware that successful human resources policies and practices of appropriate can increase performance in various areas such as productivity, quality and financial performance. Performance management is a planned process in which key elements are different measurement, feedback, positive reinforcement and ongoing dialogue between managers and employees. It has to do with measurement results in the form of performance achieved in comparison with the expectations expressed as objectives. Also, it has to do with the inputs and values. Inputs are the knowledge, skills and behaviors necessary to produce the expected results. Needs are identified by defining these requirements and evaluate the degree to which the expected levels of performance are achieved through effective use of knowledge and skills, appropriate behavior. Performance management strategy has to organise with all the business and not just the managers. Thus managers are not only responsible for delivering the required performance. Managers should have the confidence to distribute authority and responsibility throughout the organization. In a sense, managers need to collaborate and consider as part of their own people in order to report on achieving the required performance. Managers and their teams are jointly responsible for the

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results and are both involved in agreeing what they should do and how they should do it. Performance management processes are part of sweeping across the organization. Managers and other employees of the organization should work together to jointly commit to achieving the performance. Performance management strategy should focus on the development to a continuous and flexible process involving managers and all the organization that operate as a single team. This should determine how they can best work together to achieve the required results. This makes it possible to focus on the planning of future performance and performance improvements existing. HRM Strategy provides the basis for regular dialogue and frequent between managers and other employees about performance needs and further development of the organization. Strategic human resource management may bring a number of benefits to the organization (Brewster et al., 2000): ➢ Contributing to the goal accomplishment and the survival of the organisation, ➢ Supporting and successfully implementing business strategies of the organisation, ➢ Creating and maintaining a competitive advantage for the organisation, ➢ Improving the responsiveness and innovation potential of the organisation, ➢ Increasing the number of feasible strategic options available to the organisation, ➢ Participating in strategic planning and influencing the strategic direction of the organisation as an equally entitled member of top management, ➢ Improving cooperation between the HRM department and line managers.

FINDINGS AND DISCUSSIONS Performance management can be defined as a systematic process for improving organizational performance by developing the performance of

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individuals and teams (Armstrong, 2006). According to him, it is a means of getting better results from the organization, teams and individuals by understanding and managing performance within an agreed framework of planned goals, standard sand competence requirements. Previous studies have emphasized the importance of human resource management in the organization. Human resources play a key role in order to be competitive in the market. An appropriate management of human resources will enable the achievement of the objectives required by the organization. The potential use of skills, knowledge and competencies of employees in the organization would make possible the realization of organizational performance. Basically, it is also confirmed through other research that strategic management of human resources has an influence on organizational performance. The study analysed 30 organizations, which 16 organizations are the service sector and 14 organizations are in the manufacturing sector. The structure of the research, to give a better verification assumption or rejection it, is as follows: ✓ Organizations recognise the concepts of organizational performance and strategic management of human resources. This theoretical knowledge translates in practical implementation in these organizations. ✓ The organizational performance will have impacts from strategic management of human resources.

Consequently, the study is focused on two sections. In the first section, study is focused on the theoretical aspects of adoption in organizations. While in the second section, study focuses on the influence that can provide strategic management of human resources in organization performance. In first section, we will discuss knowledge and practical applicability of the principles/ concepts of SHRM and organizational performance. The concepts and search results based on studies that made to these organizations. So, to have a clear survey in this study must first analyse whether organizations are familiar with these concepts and their

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evolution. Application of perceptions and knowledge in organizations means that these organizations have formulated and developed a general organizational strategy. Also, they have developed and follow an assigned strategy for human resource management. In other words these organizations have a specific strategy for managing human resources. While 4 (13%) of other organizations were not very familiar with the implementation of organizational concepts. This means that these organizations do not have a human resources strategy. These organizations do not implement adequate strategies, which mean that the required performance can be hard to achieve. The reason is simple. Organization lacks planning, orientation or foremost environmental study or analysis. The organization operates without studying environment. Thus, the organization is “the crossroads where they do not know which path will choose to go to the final destination in a shorter time and at a lower cost”. There are two organizations in the production sector and two organizations in the service sector were not familiar to apply the concepts in their organizations. In the second section, Strategic Human Resource Management is the planned pattern of human resource deployment and activities intended to enable the organization to meet organizational goals and objectives (Noe et al. 2007). How active is the strategic management of human resources in the achievements of organizational performance? Is important SHRM in terms of its impact on organizational performance? Some of the goals are cost reduction, achieving sales levels, increasing the number of customers, increasing the market percentage, increasing product quality, innovative products, improve productivity. Organizations choose one or several indicators to measure their performance. For example, organizations decide as a measure of performance enhancing product quality and increasing the level of sales in the market. So, improvement of product quality will enable increased sales by increasing profit. The organizations must manage its inputs to achieve their outputs. One of the vital inputs for the organization is human resource. Good management

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of human resources will make possible the achievement of objectives. If we refer to the inputs of human resources would be the knowledge, skills, behaviors, abilities, etc. The study, it developed that 21 (70%) organizations had recognised significantly change their performance through strategic management of human resources, while five (16.7%) organizations admitted that the organization had been minor changes in their performance. These small changes are due to a non - proper management. The development and implemented of human resources strategies have not been in line with the strategy of the organization. The four (13.3%) organizations did not have the impact on organizational performance by strategic human resource management. These organizations do not have a genuine business strategy and human resource management. These organizations to strategically manage their human resources pay attention in: a. Recruitment and selection of appropriate staff; b. Career Management in the organization; c. Training and development of employees; d. Job satisfaction; e. Creating a dynamic environment; f. Motivating employees. In short, organizational performance has changed through strategic management of human resources management. This makes possible the achievement of organizational performance objectives. It also enables the organization to be competitive. SHRM is a very important tool that ensures the continuity of the organization.

CONCLUSIONS Organizations are trying to create as much competitive in the market, reaching to manage their human resources in achieving organizational performance required. Some of the goals are cost reduction, achieving sales levels, increasing the number of customers, increasing the market percentage, increasing product quality, innovative products, improve productivity. Human resources are playing an important role in achieving

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these performance indicators. But before that, organizations should realize the expectations required from employees and so the employees show their skills, be motivated and behave in the manner required by the organization to achieve performance. Strategic HRM is a detailed process for human resource management throughout the organization that it’s integrated with the organization’s overall strategy. It enables the organization having employees with the right skills and putting them in positions according to the level of their qualification and skills. Different authors have tried to give different definitions for organizational performance. In general, organizational performance is related to the achievement of the objectives required by the organization. The achieving organizational performance is an outcome of the behavior of employees in the organization. Policies and practices of organizations motivate employees and they give impact on organizational performance. Some of these are: human resource planning, recruitment, selection, training and development, compensation, performance management and employee relationships. A link between Strategic HRM and organizational performance has been established thru author Michael Armstrong. According to him, the performance is a function of the Ability + Motivation + Opportunity (AMO). By achieving the expectations of employees, it will be reached the performance required by the organization. Organizations need to consider human resource as a tool to gain competitive advantage needed to create suitable policies and practices. Also, authority and responsibility must involve in the entire organization working as a single team and not concentrating individual managers. Performance management strategy should focus on the development of a continuous and flexible process. The study analysed 30 organizations, which 16 are the service area and 14 in the manufacturing sector. The structure of the research is as follows: a. Organizations know the concepts of organizational performance and strategic management of human resources. This theoretical knowledge translates in practical implementation in these organizations. From 30 organizations emerged that 26 (87%) of

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them were familiar with the concepts and implementation in their organization. These organizations have a specific strategy for managing human resources. While 4 (13%) of other organizations were not very familiar with the implementation of organizational concepts. These organizations do not have a human resources strategy. b. The organizational performance will have impacts from strategic management of human resources. From 30 organizations, 21 organizations had proven significantly change their performance through strategic management of human resources, while five (16.7%) organizations admitted that the organization had been minor changes in their performance. The four (13.3%) organizations did not have the impact on organizational performance by strategic human resource management.

REFERENCES Alchian, A. A., & Demsetz, H. (1972). Production, information costs, and economic organization. American Economic Review, 62 (December), 777-795. Armstrong, M. (2006). A Handbook of Human resource management practice. 10th edition. Cambridge University Press. Armstrong, M. (2006). Performance management: key strategies and practical guidelines. 3th edition. Kogan Page Limited. Armstrong, M. (2006). Strategic human resource management: A guide to action. 3th edition. Thomson-Shore, Inc. Boxall, P., Purcell, J. & Wright, P. (2007). The Oxford handbook of Human resource management. Purcell, J. and Kinnie, N., HRM and Business Performance, (pp. 533- 551). Oxford University press. Boxall, P., Purcell, J. & Wright, P. (2007).The Oxford handbook of Human resource management. Latham, G., Sulsky, L. M., and MacDonald, H., Performance Management, (pp. 364-384). Oxford University press.

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Boxall, P., Purcell, J. & Wright, P. (2007).The Oxford handbook of “Human resource management”. Gerhart, B., Modelling HRM and Performance Linkages, (pp. 552-580). Oxford University press. Boxall, P. & Purcell, J. (2003).Strategy and Human Resource Management. Basingstoke and New York: Palgrave Macmillan. Brewster et al. (2000).Contemporary Issues in Human Resource Management: Gaining a Competitive Advantage. Oxford University Press, Cape Town. Brumbach, G. B. (1988). Some ideas, issues and predictions about performance management. Public Personnel Management, winter, 387-402. Campbell, J. P. (1999). the definition and measurement of performance in the new age. In D. R. Ilgen & E. D. Pulakos (Eds.). The changing nature of performance. Implications for staffing, motivation, and development, (pp. 399– 429). San Francisco: Jossey-Bass. Dyer, L., & Reeves, T., (1995). Human resource strategies and firm performance: What do we know and where do we need to go? Paper presented at the 10th World Congress of the International Industrial Relations Association, Washington, DC. Guest, D. E. (1987).Human Resource Management and Industrial Relations. Journal of Management Studies, 24 (5), 503-521. Guest, D. E. (2011). Human resource management and performance: still searching for some answers. Human Resource Management Journal, 21 (1), 3-13. Hendry, C., & Pettigrew, A. (1990). Human resource management: An agenda for the 1990s. International Journal of Human Resource Management, 1, 17-43. Holbeche, L. (2004). How to make work more meaningful. Personnel Today, 26. Janssens, M., & Steyaert, C. (2009). HRM and Performance: A Plea for Reflexivity in HRM Studies. Journal of Management Studies, 46 (1), 143-155.

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Lance, C. E. (1994). Test of a latent structure of performance ratings derived from Wherry’s (1952) theory of ratings. Journal of Management, 20, 757–771. Lifson, K. A. (1953). Errors in time-study judgments of industrial work pace. Psychological Monographs, 67 (355). Noe, R., Hollenbeck, J. R., Gerhart, B., and Wright, P. M. (2007). Fundamentals of human resource management, (2nd ed). Boston MA, McGraw Hill. Pfeffer, J. (1998). Seven practices of successful organizations. California Management Review, 40(2), 96–124. Purcell, J. (1999). High commitment management and the link with contingent workers: implications for strategic human resource management. Research in Personnel and Human Resources Management. Rogers, E. W., & Wright, P. M. (1998). Measuring organizational performance in strategic human resource management: Problems, prospects, and performance information markets. Human Resource Management Review, 8 (3), 311. Ronan, W. W. & Prien, E. P. (1971). Perspectives on the measurement of human performance. New York: Appleton-Century-Croft. Venkatraman, N., & Ramanujam, V. (1986). Measurement of business performance in strategy research: A comparison of approaches. Academy of Management Review, 11, 801- 814.

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THE BASIC SKILLS REQURE BY AN ENTREPRENEUR FOR SUCCESSFUL MANAGEMENT OF SMALL SCALE BUSINESS ENTERPRISES, IN A COMPETATIVE MARKET ENVIRONMENT. (A CASE STUDY OF TOTO LOCAL GOVERNMENT AREA OF NASARAWA STATE, NIGERIA.)

USMAN ADAMU IBRAHIM Department of Basic Studies. Federal Polytechnic Bauchi, Bauchi State. Nigeria

ABSTRACT The major purpose of the study was to examine the entrepreneurial skills required by small scale business operators for successful management and operation of small scale business enterprise in Nigeria. Specifically the study examined the management skills, marketing skills and accounting skills required by small scale business operators for successful operation of small scale business enterprises. The study was carried in Toto Local Government of Nasarawa State using a survey research design. The population simple of the study consisted-of 77 respondents. A 4-point Likert rating scale made up of 32 structure questionnaire items ~was used in generating data for the study, data collected were analyzed using statistical mean. The findings revealed that small scale business operators require management, marketing and accounting skills for successful operation. It was concluded that entrepreneurship education is a major place for the skill acquisition and recommended among others that 'there should be periodic organization of workshops and seminar by government for owners of small scale business enterprises and proper provision and funding of skills acquisition centre for effective training of entrepreneurs.

Keywords: Entrepreneurial skills, small scale, enterprise, entrepreneur and management 293 | P a g e

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Introduction Small scale enterprises are believed to be the engine room for the development of any economy. This is because in a growing economy-like that of Nigeria,-they form the bulk of business activities; According to Mukaila (2011), small scale enterprises contributed to improved living standards, bringing about substantial local capita] formation, achieve high level of productivity, and the creation of jobs at relatively low capital cost, especially in the fast growing services sector. Belal (2013) observes that small scale enterprises are vehicle for the reduction of income disparities thus developing a pool of skilled or semiskilled workers as a basis for the future industrial expansion, improve forward and backward linkages between economically, Socially and geographically diverse sectors of the economy. Small scale enterprises offer excellent breeding ground for entrepreneurial and managerial talent to thrive. Entrepreneurship according to Agomuo (2002) is a process of bringing together creative and innovative ideas, combining them with management and organizational skills in order to combine people, money and resources to meet an identified need and thereby create wealth. It is the willingness and ability of an individual to seek out investment opportunities, established and run an enterprise successful (Ezeani., Ifeonye, Metalu and Ezemoyih, (2012). Entrepreneurship is thus, the process of learning the skills needed to assume the risk of establishing a business and sustaining it. Akpotowoh and Amanin (2006) opined that the skills required in any of the area of business related programmed promotes training in entrepreneur ship as well as equip graduates with requisite skills establish and run small businesses of their own. According to Ademiluyi (2007) entrepreneurship skills are simply business skills which individuals acquire to enable them effectively function in the turbulent environment as an entrepreneur or self employed. Akinola (2001) also pointed out that it takes special skills to succeed as an entrepreneur. Erhurun (2007) also noted that-most entrepreneurial skills come by learning and practicing. Nevertheless, the various skills embedded in business related programmes need to be explored and learn by small scale business operators for them

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to succeed as entrepreneurs. Small-scale enterprises in Nigeria according to Osotimehin, Jegede, Akinlabi and Olajide (2012) have not performed creditably well and have not played expected significant role in economic growth despite all government efforts to promote its development through increased incentive schemes, such as enhanced budgetary allocation for technical assistance programmes; new lending schemes and credit institution such as the National Economic Reconstruction Fund (NERFUND; Word Bank .assisted small-scale enterprises loan schemes (SMES), Nigeria Export and Import Bank (NEXIM), the people's Bank of Nigeria (PBN) and the community Banks established for the purpose of assisting the small scale enterprises to meet their finance. There have also been fiscal incentives, grants, bilateral and aids from multilateral agencies as well as specialized institutions towards making small scale enterprises schemes vibrant. It is a great concern that this vital sub-sector has fallen short of expectation. This situation has been of great concern to the government, citizens, operators, practitioners and organized private sectors. The situation according to Osotimhi, et al (2012) is more disturbing and worrying when compared with what other developing and developed countries have been able to achieve with their small scale business coupled with significant attention to apprenticeship and employment generate. In agreement with this fact, Olowu and Aliyu (2015) asserted that in Nigeria many financing policies were designed and implemented to boost the sector but the results contradicted expectations. They further asserted that virtually no comparative^ study ever place Nigeria ahead of any of her co-developing countries. Some experts and researchers according to Olowu and Aliyu (2015) in the area thus, ' are of the view that the hidden factor responsible for this deficient performance may be lack of entrepreneurial skills 'on the part of their proprietors. Nnodini (2012) also observed that poor management is the number one reasons why small businesses fail in Nigeria. The use of larger if not all the profit by the owners for celebrations, investing in nonprofit social and spiritual ventures and inappropriate rules guiding giving out of credit, may be a common source of small scale businesses degradation since these

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affects, not only the profit of the business but also the capital. The issue of lack of outlining strategic plans in the form of vision and objective or not working with them may also lead to lack of direction (Olowu and Aliyu, 2015). Given the above stated factors that may be identified as lack of entrepreneurial skills, this study aims at examining the entrepreneurial skills required by small scale business operators for successful management and operation of small scale business enterprises in Nigeria. The paper is divided into live sections, introduction being section one is followed by literature review, section II. Methodology is discussed in section three (III), analysis of data, section four and conclusion and recommendation is found in section five.

Statement of the Problem Entrepreneurship deals with the process 'of recognizing a business opportunity, operating, and maintaining that business though people engage into it without acquiring much skills and competences that will enable them to effectively operate the business (Akpolowoh, 2005). As a result of this attitude, failure followed instead of success. o Their failure according to Ezeani, et al (2012) is not because they do not have the necessary capital and machines to stay afloat but because they lack prerequisite skills needed to grow from a small position to a bigger one, and as well to remain in the business. In Nigeria, many financing polices were designed and implemented by successive government to boost the sector but the results contradicted expectations. Virtually no comparative study;' ever place Nigeria ahead of any of her co-developing countries in terms of small scale businesses performance and growth. The situation now is that no any businesses related graduates make little or no attempt to established- small scale business of their own despite the abundant business opportunities in the country. Instead, they continued d besiege ministries and government offices in search of jobs that are either extremely few in supply or even non-existent. Those that have even established one cannot even stand the taste of time. The question now is what entrepreneurial skills are needed by small scale business operators

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and business related graduates for successful operation of a business enterprise. This paper therefore aimed at examining the entrepreneurial skills required by small scale business operators and business related graduates for successful operation of small scale businesses in Nigeria.

Objective of the Study The major objective of the study was to examine the entrepreneurial skills required by small scale business operators for effective operation and management of small scale business enterprises in Nigeria. Specifically, the study intends to: 1. Determine the management skills required by small scale business operators for effective operation and management of small scale business enterprises. 2. Examine the marketing skills required by small scale business for effective operation and management of small scale business enterprises. 3. Find out the accounting skills required by small scale business operators for effective operation and management of small scale business enterprises

Research Questions The study answered the following research questions: 1. What are the management skills required by small scale business operators for effective operation and management of small scale business enterprises? 2. What are the marketing skills required by small scale business operators and business related graduates for effective operation and development of small scale business enterprises? 3. What are the accounting skills required by small scale business operators for effective operation and management of small scale business enterprises?

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LITERATURE REVIEWS Concept of Small Scale Business and Entrepreneurial Skills Small scale enterprises is one of the area currently receiving-academic and policy attention but up to now differentiating small sale-businesses from other scales of businesses such as large, medium and micro defies universal definition (Chendo, 2013); Luper & Kwanum, 2012; Uchenwangbe, 2013). Researchers and other interested parties have looked at the issue base on r-'^me specific criteria such as value added and value of assets, annual sales or number of employees (Ambiose & Muldowney, 2012; Uchenwange, 3013). ^ In Nigeria, the central Bank according to Chendo (2013) defined small scale enterprises on the basis of total asset and number of employee. Nevertheless, the National Council for Industry (2002) cited in Egbetokun (2008) and Osotimehin and Olajide (2012) define that micro business is a business whose total cost, including working capital but excluding cost of land, is not more than N1 million and a labour size of not more than 10 workers. While small scale business is a business whose total cost, including working capital but excluding cost of land is over N1 million but not more than N40million and a labour size of between 11 and 35 workers. Based on the above, it seems that in Nigeria there is no consensus on the definition of small scale businesses, but they are defined along three dimensions; in terms of either employment or investment, or a combination of any two, or all. It also worth deducing that any business with capital base worth N1 million or has a number of employees up to 11 is regarded as small scale businesses (Olowu and Aliyu, 2015). Since organizational goal achievement is the main yardstick of measuring the degree of small scale businesses performance, a good measurement of small scale business performance should be able to consider the goal of the owner or a policy designed to promote the sector in the areas of some specific results such as output and profitability (Marr & Schiuma, 2003; Olowu and Aliyu: 2015). This is an indication feat the entrepreneurial skills of a, small scale business owner is very vital to the success or failure of the business. Entrepreneurial skills according to Folahan and Omiriyi (2006) cited in Ezeani, Ifeonyemetalu and Ezemoyih (2012) are simply business

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skill, which an individual acquires to enable him function effectively in the turbulent business environment. Agbonifoh (2004) also defined entrepreneurial skills as skills relating to identifying business opportunities and receiving a sustainable income from these opportunities. The acquisition of entrepreneurial skills means combining personal characteristics, financial resources within ones environment and taking advantage of them for rewarding outcome (Ezeani, Ifeonyemetalu and Ezemoyih, 2012). Brouwer (2002) asserted that the atainment of entrepreneurial skills means possessing the ability to find and evaluate business opportunities, gather the necessary resources, initiate appropriate action to ensure success and implement actions to take advantage of the opportunities for rewarding outcome. Grey (2008) also observes that entrepreneurs are people who have the ability to see and evaluate business opportunities, to gather the necessary resources, to take advantage of them; and to initiate appropriate action for success. However, entrepreneur is s person who operates a new enterprise or venture. The entrepreneur is also anybody who organizes, manages a business undertaking and -assumes a risk for the sake of profit (Kayode, 2007). Lankard (2003) stressed that entrepreneurial skills must be nurtured through proper education so that it can be directed to responsible and enriching small business Endeavour that will benefit the individual and the communities in which the entrepreneurs live.

Management Skills Required by Small Scale Business Operators for Successful Operation of a Business Enterprise Management is the art of getting things done through the help of others. It is a process of achieving organizational goals through coordinated performance of five specific functions namely: planning, organizing, staffing, directing and controlling (Osuala, 2001). An organization success depends on how well its management is able to plan. Etuk (2012) defined management as the process of directing, administering or running a business. It is essentially directing human efforts and energies and coordinating the whole as a team and giving vital leadership. According to

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Aluko; Gbadamosi., Odugbesan and Osuaguri (2011), one of the roles of management efforts at all levels into an effective instrument for achieving cooperate objectives, competence is the ability of an- individual to perform a task using his/her knowledge, skills and experiences. Competency is a standardized skill or .set of skills for an individual to properly perform a specific job. Osuala (2010) cited in Ezeani et al (2011) identified management incompetence’s as one of the major reasons for business failure since managers do not have what is simply takes, to run a small business. He emphasized that management skills of small business can be learning as managers are not born but made- He further maintained that the valuable skills of management can be learnt through trial and error, but most of the errors .can be eliminated by education. Akinola (2001) also pointed out that one of the problems facing entrepreneurs is lack of managerial skills and experiences and thus, suggested that entrepreneurs should have good training in the art of management. The entrepreneur especially those in small scale businesses require managerial skills because they also play the role of managers 'since they are responsible for the attainment of their organizational goals and objectives. According to him, these skills are conceptual and technical 'skills. Conceptual skills are those skills required to relate parts of the company's work to the whole. Technical skills on the other hand are- those skills required for turning out the actual products or services of the firm and are needed for performing specific activities within the organization. Management skills according to Ezeani et al (2012) are required by small scale business operators in starting, developing and managing enterprises. It also includes skills in decision making control and negotiation, essential in creating and growing a new business venture. Aluko et al-(2012) also pointed out that, there three areas of skills that are necessary for doing management work. These are: technical skills, human skill and conceptual skill. They further pointed out that each skill is necessary for successful manager to possess, but amount of each skill may vary depending on position within organizations. According to them, technical skills are those specialized knowledge and ability required of entrepreneurs to perform the primary task inherent in

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a particular supervisory position. Human relation management skill on the other hand refers to the abilities and judgment in working with and through people including an understanding of motivation -and an application of effective leadership; while conceptual skills are the skills needed by entrepreneurs to understand the complexities of the overall organization. Anyakoha (2002) also identified some important management skills required by the small scale entrepreneurs to successfully establish, run and manage a business enterprise to include the ability to: i. Set appropriate business goal. ii. Plan effectively for goal attainment; iii. Organize resources (human and materials) for goal attainment iv. Implement plans for goal attainment v. Evaluate all activities/operations on the process of goal attainment vi. Make appropriate use of feedback. Other management skills required for success in entrepreneurial according to Ezeani et al (2012) also include the ability to or having knowledge of: 1. Making long and short term planning 2. Purchase of goods, tools and equipment. 3. Factors involved in overhead control. 4. Inventory control and turn over. 5. Acquisition of management and supervisory skills. 6. Manage time and meet job schedules. 7. Need for employees growth and development. 8. Identify opportunities and generate ideas suitable to the opportunities; and 9. Confidence to make a decision and act upon it. Thus, management skill is indispensably required by small scale business entrepreneurs in order that they can effectively achieve their business goals through coordinated efforts of planning, organization, staffing, directing and controlling.

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Marketing Skills Required by Small Scale Business Operators for Successful Operation of Business Enterprise Marketing skills is another important and essential skill which depends on the very success or failure of a business. Marketing is a common phenomenon but it is a very complex and elusive subject matter. The activities of marketing are so diverse that it is difficult to say exactly what marketing is (Ezeani et al, 2012). According to Osuala (2010), marketing refers to the process by which the productive potentials 0f the company is used to satisfy individual and social needs of all kinds. Kayode (2007) sees marketing as human activity directed at determining consumer need for economic goods and services and the satisfaction of those need through the conception, promotion exchange and physical distribution of such goods and services. Ezeani (2012) identified important sales and marketing skills, which the entrepreneur should possess to include: 1. Knowledge of seasonal fluctuation of goods; 2. Ability to determine the extent to which products will sell; 3. Familiarity with various aspects of sales and salesmanship; 4. Ability to budget and Forecast. 5. Ability to determine current trends in sales of products 6. Ability to determine what customers need and shortage of such goods; 7. Knowledge of advertising; 8. Ability to determine and interpret factors which indicate extent of and strength of competition and 9. Ability to determine availability of goods/raw materials for product and shortage of finished goods. Ademiluyi (2007) also identified the following marketing skills and competencies, which are required for effective management and operation by small-scale business operators: 1. Salesmanship. 2. Negotiation. 3. Sales record keeping. 4. Sales promotion.

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5. Stock record keeping. 6. Sales promotion. 7. Stock record keeping. 8. Pricing. 9. Advertising channels. 10. 10. Advertising media. 11. Consumer behaviour appreciation; and 12. Transportation Marketing authorities generally agrees that business organization exists to serve markets for which they engage in production and distribution of goods and services, Modern marketing emerged as the concept that business exists to create and serve customers and at the same time achieving the firms profit objective (Ezeani et al 2012).

Accounting Skills Required by Small Scale Operators for Successful Operation of a Business Enterprise Accounting is the language of business. It tells the-owners/mangers and other stake, holders of the business what is happening in the business. Accounting provides information to a wide range of interest group and ultimately shows how a business has been managed for a period- whether successfully managed or otherwise. It also provides information regarding the financial position of the form (Michael and Chigozie, 2014). According to Osuala (2009) the knowledge of fundamental accounting skills are very imperative for sustainable business. The non-possession of these fundamental accounting skills by small scale enterprises, therefore, constitutes a problem such that is the chances of survival of the business are slim and the probability of imminent failure/collapse becomes high. Hence every small scale enterprises should strive to acquire and possess these fundamental skills. Furthermore, according to Onoh (2011) fundamental accounting skills are those competencies in basic accounting required by a person to function competently and successfully in the process of carrying out one's function of recording daily business transaction. They include skills in booking, purchasing and supply, b

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chaining, determining labour cost, simple budgeting, keeping of accurate receipts, sales, records skills in keeping reliable records, sourcing for market outlets, work in progress records, credit purchases, involves, cheque payments; keeping customers records and goods inventory. Others are skills in good credit facility practices, operating' the cash payment receipts, cash sales, prudent financial and working capital management. The Nigerian Small Business Practitioners Association (NSPA) as cited by Ezeani, et al (2012) enumerated the objectives of accounting -information and statement to include the following: 1. To provide information useful for making decisions; 2. To yield an accurate and true picture of operating results 3. To supply information useful to investors and evaluating potential cash flows to them in terms of amount, timing and related uncertainty; ; 4. To supply information usefully in judging management's ability to utilize enterprise goals; 5. To provide users with information for predicting, comparing, and evaluating enterprises earning power. 6. To permit prompt filling of report and tax collecting agencies and 7. To reveal all possible employees frauds, waste, thefts and record keeping errors.

Having basic accounting 'knowledge or skills does not necessary imply that the proprietor (Entrepreneur) should be able to appreciate the contributions that accounting information offers in solving both financial problems that may arise from time to time. The entrepreneur should be able to prepare and interpret his/her financial statements. He should be able to keep and maintain records of receipts and payment (cash book) income and expenditure and a balance sheet for the business (Ezeani, et al, 2012).

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RESEARCH METHODOLOGY Design The study employed a survey research design. It focused on the examination of entrepreneurial skills required in managing small scale businesses as perceived by small scale business operators.

Research Area The study was carried out in Toto Local Government Council of Nasarawa State.

Population of the Study The population of the study consisted of the entire owners of small scale businesses in the chosen area of study. This includes owners of cyber cafe, restaurants, provision stores, petroleum filling stations, pharmaceutical stores, hawkers etc.

Sample Size Seventy-seven (77) owners of small scale businesses were purposely selected for the study. This consisted of 20 cyber cafe owners, 10 owners of restaurants, 15 provision stores owners, 8 petroleum filling station managers, 10 pharmaceutical store owners, 14 hawkers.

Research Instruments The questionnaire was the instrument for data collection. A four point Likert scale of strongly agreed (SA), Agreed (A), Disagreed (D) and strongly disagreed (SD) made up of 32 structured questionnaire items were used for the study. The instrument was subject to validation exercises by some experts. The instrument yielded a reliability coefficient of 0.87, which indicates that the instrument was highly reliable'. The instrument was personally administered by the researchers with the help of two research assistance who were properly educated on the instrument. Also the instrument was distributed and collected within one week interval. The

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questionnaires were correctly filled and all returned showing a return rate of 100%.

Method of Data Analysis The data analysis and results were therefore-based on the returned questionnaire. The data collected was collated and analyzed using mean. ..

Decision Rule For item in relation to research question 1-4, the decision rule was based on the mean (x) of the 4-pomt likert scale as shown below: Strongly Agreed (SA) 4points Agreed (A) 3 points Disagreed (D) 2 points Strongly Disagreed (SD) 1 point X=4+3+2+1 10 = = 2.50 4 4

Thus, any item with the mean rating of equal to or greater than 2.50 (i.e. ≥ 2.50) was considered accepted; while item with mean values of less than 2.50 (i.e. < 2.50) was considered not accepted.

Presentation and Analysis of Data This section presented and analyzed the data generated in the study. Research Question 1: What are the managerial skills required for managing and operating small scale business as perceived by small scale business operators? Items 1 – 9 on the questionnaire were used to answer this research question. The results are shown in table 1 below. S/n Managerial Skills SA A D SD N 횺퐗 퐗̅ Remarks 1. Ability to set appropriate business goals 45 29 2 1 77 272 3.53 Accepted 2. Ability to plan effectively for goal 39 33 5 0 77 265 3.44 Accepted attainment. 3. Ability to organize resources (human, 33 37 6 1 77 256 3.32 Accepted material) for goal attainment.

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4. Ability to implement plans for goal 39 33 5 0 77 265 3.44 Accepted attainment. 5. Ability to evaluate all business operations 35 35 7 0 77 259 3.36 Accepted and make appropriate use of feedback. 6. Ability to identify opportunities and 33 40 4 0 77 260 3.37 Accepted generate ideas suitable to such opportunities 7. Ability to supervise work and employee 39 31 6 1 77 262 3.40 Accepted effectively. 8. Ability to recognize the need 32 40 4 1 77 257 3.33 Accepted 9. Ability to carry out inventory control and 23 41 12 1 77 240 3.12 Accepted turnover. Total mean 3.37

The analyses in table 1 shows that all the nine items statements received mean rating above the cut-off point of 2.50. The mean ratings of these items are: 1 – 3. 53; items 2 – 3.44; item 3 – 3.32; item 4 – 3.44; item 5 – 3.36; item 6 – 3.37; item 7 – 3.40; item 8 – 3.33 and item 9 – 3.12. Therefore, the respondents accepted all nine items as the management skills required by small scale business operators for successful management and operation of small scale business enterprise. Research Question 2: What are the marketing skills required for management and operating small scale businesses as perceived by small scale business operators? Item 10 – 18 on the questionnaire were used to answer this research question. The results are shown in table 2 below. Table 2: Mean rating of respondents on marketing skills required in managing and operating small scale business enterprises as perceived by small scale business operators. S/n Marketing Skills SA A D SD N 횺퐗 퐗̅ Remarks 10. Ability to determine the extent to which 33 35 8 1 77 254 3.30 Accepted products will sell. 11. Ability to determine what current trends in 28 41 7 1 77 250 3.25 Accepted sales of products. 12. Ability to use advertising and sales promotion 37 31 7 2 77 257 3.35 Accepted to win customers to the enterprise. 307 | P a g e

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13. Ability to determine what customers needs. 50 27 0 0 77 281 3.65 Accepted 14. Ability to interpret factors which indicate 15 44 18 0 77 228 2.96 Accepted extent of social strength of competition. 15. Ability to appreciate customers’ behaviour. 27 40 10 0 77 248 3.22 Accepted 16. Acknowledgement of several fluctuations of 14 45 14 4 77 223 2.90 Accepted goods and familiarity with various aspects of salesmanship. 17. Ability to stimulate customers purchasing 36 35 6 0 77 261 3.39 Accepted and dealer effectiveness. 18. Ability to develop an effective distribution 34 31 7 5 77 248 3.22 Accepted network for handling and transporting products. Total mean 3.25

The analysis in table 2 shows that all the nine items statement ranging from 10 – 18 received mean rating above the cut-off point of 2.50. The mean ratings of these items are: items 13 – 3.65; item 11 – 3.25; item 12 – 3.34; item 13 – 3.65; item 14 – 2.96; item 15 – 3.22; item 16 – 2.90; item 17 – 3.39 and item 18 – 3.22. Therefore, the respondents accepted all nine items statement as marketing skills required by small scale business operator in managing and operating small scale business enterprises successfully. Research Question 3: What is the accounting skills required for managing and operating small scale business as perceived by small scale business operators? Items 19 – 32 on the questionnaire were used to answer this research question. The results are shown in table 3 below.

Table 3: Mean rating of respondents on accounting skills required by small scale business operators for successful managing and operating small scale business enterprise. S/n Managerial Skills SA A D SD N 횺퐗 퐗̅ Remarks 19. Ability to prepare and interpret 43 23 10 1 77 262 3.40 Accepted financial statements. 20. Ability to prepare payrolls and 27 41 9 0 77 249 3.23 Accepted understand various deduction.

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21. Ability to prepare accounts payable 32 36 9 0 77 254 3.30 Accepted and receivable. 22. Ability to prepare the cashbook. 44 25 8 0 77 267 3.47 Accepted 23. Ability to prepare debtors and 33 33 11 0 77 253 3.29 Accepted creditors ledgers. 24. Ability to keep sales and purchases 41 35 1 0 77 271 3.57 Accepted records 25. Ability to determine employee wage 19 45 11 2 77 235 3.05 Accepted and benefits. 26. Ability to prepare bank reconciliation 19 33 21 4 77 221 2.87 Accepted statement. 27. Ability to source for and obtain loan 17 42 15 3 77 227 2.95 Accepted 28. Knowledge of federal, state and local 18 41 15 3 77 228 2.96 Accepted regulations, levies and taxes levied on business organizations. 29. Knowledge of costing. 26 36 14 1 77 241 3.13 Accepted 30. Ability to use basic accounting 16 27 29 5 77 208 2.70 Accepted software. 31. Inventory control skill 18 48 10 1 237 3.08 Accepted 32. Skill in financial management. 37 37 4 2 269 3.49 Accepted Total mean 3.18

The analysis in table 3 shows that all the fourteen items statements received mean ratings above the cut-off point of 2.50. The mean ratings of these items are; item 19 – 3.40; item 20 – 3.23; item 21 – 3.30; item 22 – 3.47; item 23 – 3.29; item 24 – 3.57; item 25 - 3.05 items, 26 - 2.87; item 27 - 2.95; item 28- 2.96; item 29,- 3.13; item 30 -2.70; item 31 - 3.08; and item 32- 3.49. From the analysis above; it is explicit that the respondents regarded all fourteen items as accounting skills required by small scale business operators for successful managing and operating of small scale business enterprises.

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Discussion of Findings The findings of the study were presented and discussed according to the research question. Based on research question 1, it was revealed that management skills are required for successful managing and operation of a small scale business enterprise by small scale business operators. This-indicated with a, grand mean of 3.37. This finding is in conformity with the findings of Ademiyi (2007) that management skills were indispensable for effective entrepreneurial success. In research question 2, the marketing skills required by small scale business operators for successful management and operation of small scale business enterprise, were shown on the table above, It was revealed that with a grand mean of 3.25, marketing skills are essential skills required for entrepreneurial success by small scale business operators. This findings corroborates the findings of Igho (2000) as cited by Akpotowoh (2005) and' Ezeani et al (2012) who identified knowledge of seasonal fluctuation of goods; ability to determine the extent to which products will sell, a knowledge of advertising and ability to determine what consumers need as important marketing skills needed for entrepreneurial success. In research question 3 accounting skills required by small scale business operators for successful managing and operation of small scale business enterprise, had a grand mean of 3.18, it revealed that all the fourteen skills identified were required for entrepreneurial success. These findings are in agreement with Chibunna (2012) who posited that acquisition of accounting skills by managers of small and medium scale enterprises enhances their business acumen and thereby making them to have a comprehensive knowledge of business.

Conclusion Based on the findings of the study; the following conclusions were drawn: 1. Small scale business operators highly require management skills to enable them successful establish, mange and run a small scale business enterprises.

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2. It was established that marketing skills are required by small scale business operators. This is based on the fact that business without customers cannot survive. 3. Small scale business operators require accounting skills for successful managing and operation of small scale business enterprises as this will equip them with the requisite knowledge and abilities to source for and obtain loans easily, to prepare and interpret simple financial statements. 4. Entrepreneurship education is a major place for the acquisition of skills, altitudes and abilities required and needed for entrepreneurial success.

Recommendations Based on-the findings made and the conclusion drawn, the researchers outlined the following recommendations: 1. There is need for small scale business operators to strive towards attaining skills acquisition-programmes that will exposed them more on these skills the need for successful running of their business. 2. Government should ensure a periodic organization of free workshops that will inculcate in the small scale business operators the necessary entrepreneurial skills they need. 3. Entrepreneurship education should be made a compulsory course in our tertiary institutions of learning. 4. A strong awareness campaign should be embarked' upon by appropriate government organs to sensitize owners of small scale business enterprises on the need for acquiring entrepreneurial skills. 5. Government should equip skills acquisition-training centre’s through proper funding to ensure effective training of small-scale business entrepreneurs.

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ORGANIZATIONAL ETHICS AND CUSTOMER SATISFACTION IN SELECTED COMMERCIAL BANKS IN PORT HARCOURT, RIVERS STATE

ENYINDAH, CHARLES WELE (Ph.D) EJIRE, SAKANWI Department of Business Administration and Management, School of Management Sciences, Kenule Beeson Saro-Wiwa Polytechnic, Bori, Rivers State, Nigeria

ABSTRACT This study examined the asymmetry of relationship subsisting between organizational ethics and customer satisfaction in selected commercial banks in Port Harcourt, Rivers state. Dual research questions were developed and concomitant dual null hypotheses were proposed. The study adopted a cross sectional survey. The reliability of this variable was determined using the Cronabach Alpha coefficient. Cronabach Alpha coefficient of all the study variables exceeded 0.7 and this indicated the reliability of the variables of the study. The validity of the instrument was determined by expert in the field. This study employed SPSS version 20 in the analysis of collated data. The research instrument utilized for this investigation is the structured questionnaires. This was administered to the respondents in selected commercial banks in Port Harcourt, Rivers State. The result of this investigations indicated that organizational ethics affects customer satisfaction and its dimensions. This is particularly so in the commercial banks where ethical values are accorded great premium and are deemed major determinants in the success or otherwise of these institutions. The policy thrust of this paper is that stakeholders in commercial banks including employees should tenaciously uphold ethical values in the discharge of their duties in order to galvanize customer satisfaction, profitability corporate survival and sustainability. Management policies should underscore the continued essence of ethical values in their organizations. 317 | P a g e

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Keywords: organizational ethics, fairness, honesty, credibility, courtesy.

INTRODUCTION Organizational ethics transverses the spectrum of academic, religious industrial, governmental and non-governmental sector. Its relevance transcends the frontiers of various industries for which the banking sector is at the fore. The existence and sustainability of banking institutions hinges among other variables on upholding the sacrosanctity of ethical values. This is quite pivotal in arduous task of attracting customers, conserving and ensuring the continuous satisfaction of the hybrid of institutional and individual customers. It is equally expedient to state that this is deemed fundamental considering the import of their ethical manifestations against rival institutions in the sector. This paper is compartmentalized into various subsections: introduction, statement of the problem, research questions, research hypothesis, research design, data analysis, conclusions and recommendations.

Statement of the Problem Ethics is the study of good and bad, right and wrong, just and unjust in an organization (Steiners, 1998). Since organizations including the banking industry encapsulate various stakeholders, it is fundamental to ensure that such organizations are taken seriously. Customer satisfaction is the emotional state to which the relationship between the buyer and seller subsists (Roman and Ruiz, 2003). A plethora of studies have been carried out on organizational ethics and customer satisfaction (Gene ad Harry, 1997, Gillespie Denison, Hadl and Sonerek and Neale 2008, Hanesan and Riggle, 2009; Gundlach and Murphy, 1993; and Amux, 1998). Albeit these studies exist, there is no study to the best of our knowledge on organizational ethics and customers’ satisfaction in commercial banks in Port Harcourt, Rivers State. This is the gap in literature which this investigation intends to abridge. The justification for this paper therefore is in the nebulous task of filling the identified knowledge gap.

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This study is hinged on the theoretical backdrop of Social exchange theory (Emerson, 1985). This underscores the essence of give and take in the relationships between the study variables.

RESEARCH OBJECTIVES The main objective of the study is the determination of the relationship between organizational ethics and customer satisfaction selected commercial banks in Port Harcourt. The specific objectives of the study are to: Investigate the relationship between fairness and courtesy in selected commercial banks in Port Harcourt. Ascertain the relationship between fairness and credibility in selected commercial banks in Port Harcourt. Determine the relationship between fairness and tangibles in selected commercial banks in Port Harcourt. Examine the relationship between honesty and courtesy in selected commercial banks in Port Harcourt. Ascertain the relationship between honesty and credibility in selected commercial banks in Port Harcourt. Determine the relationship between honesty and tangibles in selected commercial banks in Port Harcourt.

Research Questions The following research questions will guide this investigation: What is the relationship between fairness and credibility in commercial banks in Port Harcourt? What is the relationship between fairness and courtesy in commercial banks in Port Harcourt? What is the relationship between fairness and tangibles in commercial banks in Port Harcourt? What is the relationship between honesty and credibility in commercial banks in Port Harcourt?

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What is the relationship between honesty and courtesy in commercial banks in Port Harcourt? What is the relationship between honesty and tangibles in commercial banks in Port Harcourt?

Research Hypotheses The following research hypotheses are proposed to chart the course of the research investigation:

Ho1: There is no significant relationship between fairness and credibility in selected commercial banks in Port Harcourt.

Ho2: There is no significant relationship between fairness and courtesy in selected commercial banks in Port Harcourt.

Ho3: There is no significant relationship between fairness and tangibles in selected commercial banks in Port Harcourt.

Ho4: There is no significant relationship between honesty and credibility in selected commercial banks in Port Harcourt.

Ho5: There is no significant relationship between honesty and courtesy in selected commercial banks in Port Harcourt.

Ho6: There is no significant relationship between honesty and tangibles in selected commercial banks in Port Harcourt.

REVIEW OF EXTANT LITERATURE CONCEPTUAL RESEARCH MODEL

Credibility Organizational

Ethics Courtesy

Customer satisfaction Tangibles ORGANIZATIONAL ETHICS

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Morality and ethics are clearly influenced by career, with work force professionals demonstrating a stronger moral and ethical aptitude than college students. Workforce professionals were found to have a significantly higher mean score in wasting time over college students. The findings indicates that new employees mean new work values (Van Ness, Meelnsky, Buff and Seifert, 2010). Work ethics is a set of principles relating to morals especially as “specifically, work ethics is correct, honorable and acceptable to the larger majority of an organization, society of group”. It is also “the rules of conduct that have become a set of norms of the society group or group or organization”. Ethics pertains to “what is right and wrong as well as moral duty and obligation. Work ethics is “a set of values which include the right attitude, correct behaviour, and respect for other and effective communication in the workforce”. Work ethics regulate what are employee would do in different situation in the organization”. “The habit of following good work ethics is intrinsic”, i.e. it enables from within (Omisore and Adeleke, 2015).It is pertinent for managers to institutionalize an organizational environment that encourages good workplace ethics. Theodre, Purcell and James (2011) opined that it can be institutionalized in dimensions viz: i. Establishing an appropriate organization policy or code of ethics; ii. Using a formal appointed ethics committee, and iii. Teaching ethics in management development programmes

The easiest way to institutionalize ethics is to establish a code of ethics, managers of some organizations go beyond publishing the code of ethics to making the employees sign the code of ethics. Workplace ethics values and attitude can be influenced by an organizations through intervention such as training, motivations, coaching etc. They are not vulnerable to change because they are intrinsic in nature (Omisore and Adeleke, 2015).

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Customer Satisfaction Customer satisfaction is defined as a “customer’s overall evaluation of the performance of an offering to date” (Johnson and Fornell, 1991). As an overall evaluation that is built up over time, satisfaction typically mediates the effect of product quality for the quality and price or payment equity on loyalty (Bolton and Lemon 1999, Fornell et al., 1996).Satisfaction on the other hand is measured as an overall evaluation of performance (Bolton and Lemon, 1999, Foornell et al., 1996). Satisfaction is deemed as an “ephemeral and non-stable construct’ (Oliver, 1981). Quality perception of customer is regularly linked with properties as “stability and durability”. Satisfaction…. is ‘thought antecedent to quality judgment and then to loyalty” (Oliver et al., 1992). Customer satisfaction is a key factor in formation of customer’s desires for future purchase (Mittal and Kamakura, 2001). Accordingly, the satisfied customers will then intimate their friends, relatives and acquaintances of the product, and their pleasant experience. Parasuraman et al., (1999), posit that satisfaction is a decision made after experience. He contended with quality and quality is not the same. Customer satisfaction is “the outcome felt by those that have experienced a company’s performance that have fulfilled their expectations” (Angelova and Zekiri, 2011).Customer satisfaction as an overall evaluation of a firm’s product, rather than a particular individual’s evaluation of a specific transaction (Boulding et al., 1992, Johnson and Fornell, 1991, Fornell et al., 1996).Customer satisfaction constitutes “a fundamental indicator of a firm’s performance due to its links to behavioural and economic consequences beneficial to the firm (Anderson, et al., 1995). The capacity building of members of staff impact on the quality of productive service rendering that leads to customer satisfaction. The degree of supervising of the company service representatives positively impacts on the satisfaction which the customers expressed by the consumers. The company services representatives (CSRS) have professional code of conduct that guide the activities and operations of the organizations. Adherence to this code of conduct enhances the satisfactory service delivery in the Banking sector

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particularly the commercial banks. The above ethical issues discussed collectively aid in ensuring the satisfaction of customers in the commercial banks. Customer satisfaction business means exceeding customers’ expectation. (Roggeveen, Tsirors and Grawal 2012). Roggeveen et al (2012) emphasized that to increase customers loyalty company leaders must raise their standards for customers’ service and had a recovery plan in service. When leaders in a corporation anticipated and addressed the Problems consumers’ increased loyalty (Roggeren et al, 2012). According to Torros and Tribo (2011) customers satisfaction influenced and equity in a company. Torres and Tribo conducted an empirical analysis to measure shareholder value on brand equity and customers satisfaction. Torros and Tribo expounded that when customers’ satisfaction was the centre of shareholder value, the company’s profitability increased. Gorla, Somers and Wong (2012) investigated the service quality dimensions associating with inter-organizational efficiency in Hong Kong fimes. Gorla et al (2010) examined the effect on performance when leaders anticipated the customers need and the customers need and delivered services as promised. Gorla et al (2010) found an immediate effect on the overall quality dimensions, directly and indirectly, impacted organizational performance. The success of an organization depended on the quality of service and the trained personnel meeting the expectation customers with services rendered Gorla, et al 2012). Gorla et al (2010) emphasized that customers maintain the internal and external focus of the band in the customers -centric organizational community. A customers- centric strategy consist of continually analyzing and measuring to boost customers feedback enhanced products and service to meet customers expectation (Kang and Park, 2014).(Biggerman et al, 2013) asserted that leaders must be award of long term implications for market shares when clients’ needs and perception about a value change. In addition, suggestion from customers helped to improve operations processes, product development advance efficiencies and services quality (Biggerman et al, 2013). Gorry and Westbrook (2011) assisted that greater

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customer satisfaction means loyal consumers, increased customers repurchase intention and referrals.

Methodology This study adopted a cross sectional design in the investigation of this study. This study utilized purposive sampling technique. A population of this study is 180 employees selected from some commercial banks. The sample size is 123 respondents using Krejice and Morgan Table of sample determination (1970).

RELIABILITY (CRONBACH ALPHA) Fairness (3 items)…………………..0.843 Honesty (3 items)…………………..0.828 Satisfaction (3 items)……………….0.904

DEMOGRAPHIC DATA DISTRIBUTION Figure 1: Gender distribution for the study

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Figure 2: Qualification distribution for the study

Figure 3: Age distribution for the study

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UNIVARIATE ANALYSIS ON THE VARIABLES Table 1: Descriptive Analysis on Variables Fair Honesty Satisfactio n N Statistic 120 120 120 Minimum Statistic 1.00 1.00 1.00 Maximum Statistic 5.00 5.00 5.00 Mean Statistic 4.0639 4.1000 4.1146 Std. Statistic .83827 .76526 .80040 Deviation Statistic -1.965 -2.049 -2.221 Skewness Std. .221 .221 .221 Error Statistic 4.591 4.650 5.340 Kurtosis Std. .438 .438 .438 Error The univariate analysis for the study is depicted in table 1. The results reveal substantial evidence with regards to average responses which affirm to practices and activities which reflect communality, knowledge, adaptability, dynamic capability, fairness, honesty and customer satisfaction. The results indicate that these practices and outcomes are evident in the experience and working lives of the participants.

Figure 4: Distribution for Organizational Ethics

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The distribution for the data on organizational ethics is illustrated in figure 4. Data is revealed to support the evidence of practices related to organizational ethics within the target banks. The result indicates that most of the respondents affirm to their experiences of the variable: organizational ethics within their various banks.

Figure 5: Distribution for Customer Satisfaction

The result for the analysis on customer satisfaction is shown in figure 5. Data is revealed to support the evidence of practices related to organizational ethics within the target banks. The result indicates that most of the respondents affirm to their experiences of the variable: organizational ethics within their various banks

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Table 2. Tests for Hypotheses of the Study 1 2 3 4 5 6 7 Correlation Coefficient 1.000 Commune Sig. (2-tailed) . N 120 Correlation Coefficient .370** 1.000 Knowledge Sig. (2-tailed) .000 . N 120 120 Correlation Coefficient .414** .641** 1.000 Adapt Sig. (2-tailed) .000 .000 . N 120 120 120 Correlation Coefficient .368** .532** .595** 1.000 Capability Sig. (2-tailed) .000 .000 .000 . N 120 120 120 120 Correlation Coefficient .533** .581** .631** .614** 1.000 Fair Sig. (2-tailed) .000 .000 .000 .000 . N 120 120 120 120 120 Correlation Coefficient .482** .771** .576** .653** .638** 1.000 Honesty Sig. (2-tailed) .000 .000 .000 .000 .000 . N 120 120 120 120 120 120 Correlation Coefficient .490** .718** .773** .580** .725** .650** 1.000 Satisfaction Sig. (2-tailed) .000 .000 .000 .000 .000 .000 . N 120 120 120 120 120 120 120 **. Correlation is significant at the 0.05 level (2-tailed).

Hypothesis 1: Relationship between fairness and customer satisfaction Result reveals significant correlations between both variables where correlation coefficient = .725 and P < 0.05. The null hypothesis is considered as false and rejected on the basis of insufficient evidence to proof otherwise

Hypothesis 2: Relationship between honesty and customer satisfaction Result reveals significant correlations between both variables where correlation coefficient = .650 and P < 0.05. The null hypothesis is

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considered as false and rejected on the basis of insufficient evidence to proof otherwise.

Hypothesis 3: Relationship between communality and customer satisfaction Result indicates significant relationship between both variables where correlation coefficient=0.3670 and P<0.05.The null hypothesis is considered as false and rejected on the basis of insufficient evidence to proof otherwise.

Hypothesis 4: Relationship between knowledge and customer satisfaction Result reveals significant relationship between both variables where correlation coefficient=0.414 and p<0, 05. The null hypothesis is considered as false and rejected on the basis of insufficient evidence to proof otherwise.

Hypothesis 5: Relationship between adaptability and customer satisfaction Result indicates significant relationship between both variables where correlation coefficient=0,641 and P<0.05.The null hypothesis is considered as false and rejected on the basis of insufficient evidence to proof otherwise.

Hypothesis 6: Relationship between dynamic capacity and customer satisfaction Result indicates significant relationship between both variables where correlation coefficient=0.595 and p<0.05.The null hypothesis is considered as false and rejected on the basis of insufficient evidence to proof otherwise.

DISCUSSION OF FINDINGS OF THE STUDY Communality affects customer satisfaction in the selected commercial banks in Rivers State. This is consistent with the work of Fornell, Johnson, 329 | P a g e

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Anderson and Barbara (1996). Knowledge affects customer satisfaction in selected commercial banks in Rivers State. Adaptability affects customer satisfaction in Rivers State. This finding is in consonance with the work Hansen and Riggle (2009). Capability affects customer satisfaction in selected commercial banks in Rivers State. This is in tandem with Kang and Park (2014). Fairness affects customer satisfaction in selected commercial banks in Rivers State. This finding deviates from Lin (2012).Honesty as a dimension of organizational Ethics affects customer satisfaction in commercial banks in Rivers State. This is line with Milan and Martina (2008).

Conclusion of the study From the foregoing, this study draws the following conclusions. The adoption of fairness as ethical value leads to customer satisfaction in commercial banks in Port Harcourt, Rivers state. This will precipitate the satisfaction of customers in the banking sector. Commercial banks adoption of ethical values of honesty in relating with their customer will lead to customer satisfaction. This will also galvanizes customer retention in the banking sector. It is also deduced that dynamic capability will lead to customer satisfaction in commercial banks in Rivers state. Adaptability positively affects customer satisfaction in commercial banks. It is concluded that knowledge positively impact on customer satisfaction in commercial banks in Rivers state. Communality affects customer satisfaction in commercial banks in Rivers state.

Recommendations of the study It is therefore recommended that commercial banks should adopt fairness as an ethical value in the bid to attain customer satisfaction. Commercial banks should utilize honesty as a cardinal ethical value in satisfying their customers. This will assist in ensuring customer satisfaction in the commercial bank subsector of the Nigerian economy. Dynamic capability is recommended for customer satisfaction in commercial banks in Rivers

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state. The use of communality as an ethical value improves customer satisfaction in commercial banks in Rivers state.

REFERENCES Alrubaiee, L., (2012). Exploring the relationship quality between ethical sales behaviour, relationship quality and customer loyalty. International journal of marketing studies, 4(1). Available through: Anglia Ruskin university library website http://libweb.anglia.uk/(accessed 12 November 2013). Anderson E.W. (1994). “Customer satisfaction and word of mouth working paper. National quality research center, university of Michigan business school, Ann arbor, m1. Anderson,T. Eugene, W., and Mary W., Sullivan,D.(2013). “The antecedents and consequences of customer satisfaction for firms”. Marketing science 12.2 (1993): 125-143. Available through: Anglia Ruskin university library website http://libweb.anglia.ac.uk/(accessed 12 November 2013). Angelova, B. and Zekiri,K. (2011). Measuring customer satisfaction with service quality using American customer satisfaction model (ACSI Model). International Journal of Academic Research in Business and Social Sciences, 1, 3,233-258. Bolton, R.N. and Lemon, K.N. (1991). A dynamic model of customers’ usage of services. Usage as an antecedent and consequence of satisfaction Craig, C.C., Gene, B. Harry A. H. (1997). Customer satisfaction and corporate culture: A profile deviation, analysis of a relationship” marketing outcome, Journal of Psychology and Marketing, 14, 7,663-673. Daft, R.L. (1995). Understanding management, New York, Mac-Graw Hill. Fornell C., Johnson, E.W., Anderson J.C. and Barbara, E.B. (1996). “The American customer satisfaction index natural purpose and findings”. Journal of Marketing, 60, 7-18. Gillespie, M.A., Denison, D. R., Haaland, S., Smarek, R. and Neale, W.S. (2008). Linking organizational culture and customer satisfaction. Results from two companies in different industries. European Journal of Work and Organizational Psychology, 17(1):112-132. Goff, B.G., Boles, I.S., Bellenger, D.N., and Stojack, C. (1997). The Influence of Salesperson Selling Behaviours on Customer Satisfaction with Products. Journal of Retailing. 73, 2, pp.171-183. Available through; Anglia Ruskin University Library Website [Accessed 12 November 2013]. Gorla, N. Somtherst,D. and Wongb, N.(2010). Organizational impact of system quality, information quality and service quality and service quality. The

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Journal of Strategic Information Systems, 19, 207-225, do1: 10.1016/j.jsis.201005.001 Gorry.G. and Westbrook, R. (2011). One more with feeling: Empathy and technology in customer care. Business horizons, 5(4), 125-134, Hansen, J. D. and Riggle, R. J., (2009). Ethical Salesperson Behaviour in Sales Relationships. Journal of Personal Selling and Sales Management, 151 -166. Available through: Anglia Ruskin Hening-Thurau, T. and Alexander K. (1997). The impact of customer satisfaction on relationship quality on customer retention. A critical reassessment and model development. Journal of Psychology and Marketing, 14(8), 737-764. Johnson,A and Fornell,K, (1991).The imperative of Marketing, Journal of Marketing Research, 36, 171-86. Kang, D. and Park, Y. (2014). Review based measurement of customer satisfaction in mobile service: Sentiment analysis and Vikor Approach. Expects systems with applications 41, 1041-1050; do1: 10.1016/j.esw.0020130070101. Lin, S.H.(2012). Effects of Ethical Sales Behavior Considered through Transaction Cost Theory: To Whom is the Customer Loyal. The Journal of International Management Studies, [online] Available at:<.http://www.JimsjournaLorg/5%2OSu-Hsiu%2OLin.pdf> [Accessed 19 Oct 2013]. Manley, J. and Breges, S. (2013). Development and implementation of customer solutions: A study of process dynamics and market shaping. Industrial marketing management, 4(2), 1082-1092. Milan A. and Martina P. (2008). Organizational effectiveness and customer satisfaction. Journal of Management Information and Human Resources, 4(, 5),161-171. Oliver R.L. (1981). Managements and evaluation of satisfaction processes in retail setting, Journal of Retailing 5(7), 25-47. Oliver, R.L. (1999). “Whence consumer loyalty” Journal of Marketing, 63 (special issues), 33-44. Oliver, T.A., Oliver, R.T. and Macmillan, I.C. (1992). A catastrophe model for developing service satisfaction strategies. Journal of Marketing, 5(6), 83- 95 Omisore, B.O. and Adeleke, O. (2015). Work Ethics, Values, Attitudes and performance in the Nigeria public service: Issues, challenges and the way forward, Journal of public administration and Governance, 5(1) 159-172. Parasuraman A,,Zeithaml, V. and Barry, L. (1985). A Conceptual Model of Service Quality and its implications for future research. Journal of Marketing, (4)5, 23-34.

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Roggeveen, A, Tsisors, M. and Corewed, D. (2012). Understanding the co-creation effect. When collaborating with when did provide a left service to many recovery? Journal of the Academy of Marketing Science, 4(6). 771-790. Roman, S. and Ruiz, S. (2005). Relationship Outcomes of Perceived Ethical Sales Behaviour: The Customer’s Perspective, Journal of Business Research, (e- journal] 58 (4), Available through: Monash University Library Website [Accessed 24 Oct 2013]. Roman, S.(2003). The Impact of Ethical Sales Behaviour on Customer Satisfaction, Trust and Loyalty to the Company: An Empirical Study in the Financial Services Industry, Journal of Marketing Management, [e-journal] 19: 9-10. Available through: Monash University Library Website [Accessed 24 Oct 2013]. Smith, L. (2016). The Dimensions of customer satisfaction in the Jamaican financed service industry, Walden, University Welden University scholars works. Theodre, K. Purcelk T. and James, A. (2011). Ethics in Public service. Journal of Administration and Social Policies Review 3(5), 25-37. Torres, A. and Triboj,k. (2011). Customer satisfaction and brand equity. Journal of Business Research, 64, 10s89-1096 Van Ness, R. K., Mellnisky, B. and Siefert,A.(2010).Work Ethics: Do New Employees Mean New York Values? Journal of Managerial Issues 22(1), 10- 34 Walter, A., [Utter, T. and Gumundea, H.G.(2001). Theoretical Considerations and Empirical Results from a Supplier’s Perspective. Industrial Marketing Management, pp. 365-377. Available through: Anglia Ruskin University Library Website [Accessed 12 November 2013). Wangenhm, F.V., Evanchitzky, H. and Wiendelich, M. (2007). Does the employee, customer satisfaction link hold for all employee groups. Journal of Business Research, 60, 7,690-697. Xuemin G.L. and Blattachanya, C.B. (2006). Corporate social responsibility, customer satisfaction and market value, Journal of Marketing, 7(4),1-18. Zalatarw,W.(2012). Quantifying customer gender effects on service quality perceptions of Phillipine commercial banks. Procedia- Social and Behavioural sciences, 57,268-274.

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HARNESSING INFORMATION AND COMMUNICATION TECHNOLOGY RESOURCES AND POTENTIAL FOR REAL ESTATE ACTIVITIES IN NIGERIA

1SALISU MAGAJI, 2IBRAHIM GARBA, 3HABU BABAYO 1,2Department of Estate Management, Federal Polytechnic, Bauchi 2Yobe state Ministry of Land and Housing, Damaturu 3Department of Estate Management, Abubakar Tafawa Balewa University, Bauchi.

ABSTRACT Hitherto, real estate activities in developing countries such as Nigeria, are performed by the estate surveyors and valuers manually thereby proved to be hectic, cumbersome and time-consuming. Nowadays, technological advancement has made it possible for professionals to use ICT in almost every ramifications with regards to real estate dealings with relative ease and efficiency.This paper exploits the various ICT resources available for use by estate surveyors and valuers as well as the areas where such resources are used. Similarly, the paper also affirms that ICT has the capacity and capability to influence the activities of estate surveyors and valuers in relation to their roles such that when properly exploited, a lot of dealings can be done at the comfort of the office giving room to carry out transactions with people in the outside world in safety and comfort.

Keywords: information and communication technology, real estate surveyors, ICT Resources.

Introduction In the not too long past, developing countries have been faced with the challenges of technological development. Nowadays, technological advancement forced these countries to adopt the use of information technology to meet up with the global needs of in so many areas of individual, group, public and corporate endeavours. Modern information technology is fast becoming a major means of communication, a tool for marketing and information dissemination in a business

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(Najib, Mohd and Abdulrahman, 2012). Real estate, like any other form of investment is not left in the area of transformation from the olden methods of carrying out business activities to the modern ue of information technology and its components as it accords a better corporate image and can as well be used as a tool to gain profit in the business. As a marketing tool, information technology gives wide coverage to reach potential clients, information gathering is faster and more accurate and it is probably the cheapest way to sell the products. The increasing availability of the internet will provide consumer convenience and effectiveness in purchasing goods.

CONCEPT OF INFORMATION AND TECHNOLOGY Cartelli and Palmer (2004) have stressed that information and communication technology which is an electronic based system of information transmission, reception processing and retrieval has drastically changed people’s way of thinking, living, the environment, and almost all facets of human endeavours.as such, it is regarded as an important by-product of globalization. Information and communication technology (ICT) is a generic term which includes any communication device or application, encompassing: radio, television, cellular phones, computer and network hardware and software satellite system and so on, as well as the various services and applications associated with them. It is the application of products of scientific research that is used in the development process and other economic activities (AL-Agha, 2006). The world telecommunication system, the convergence of computer technology and communication into the information technology, with its components and activities, is distinctive in its extension and complexity and is also undergoing a rapid and fundamental change which inherent economic incentives as transaction costs could be lowered and the horizon of activities could expand beyond local business to the one that is global (Anan, 2001). According to Sawyer and Crowston (1999) real estate is information and communication intensive business illustrating the role of information. Agents connects buyers to sellers and do so through control and dissemination of information in a modern way, hence they are valued for information skilled they can bring to bear on real estate process such as listings, searching, and negotiation.

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According to Jud, Winkler, and Wingler, (2002) the real state brokerage business is on the cusp of a radical transformation in the real estate market brought about by cyberspace technology. The flow of information in the real estate market is increasing quickly because of the proliferation of company websites, emails, cellular phones, personal assistants, online linkage to financing sources and other technological advances. This new information technology is transforming established institutions and opening up new avenues, as many traditional brokerage activities can be delivered more quickly and more efficiency. Recently, a new cyberspace technology was introduce into the real property market making housing search process cheaper and easier (Tessler,1999).

REAL ESTATE ACTIVITIES Many researches were conducted to identify the activities found in the real estate sector. It is worthy to mention here that Lesser (1963), Thorncroft (1965), Louis(1974), Sawyer and Crowston (1999 Jud; Winkler; and Wingler (1999), Tessler (1999), Babawale(2002), Olusegun (2002), Hofstrand (2009), and Bello (2013); have identified the activities in the real estate to include property valuation, property management and maintenance, real estate agency, expert witness services, feasibility and viability services, arbitration service, facilities management services, project development service, property brokerage, and project management services.

INFORMATION AND COMMUNICATION TECHNOLOGY RESOURCES Information and communication is broad and therefore it comprises many interdependent components which include the computer, telephone, internet, the electronic mail, digital communication satellite and other peripherals (Benjamin, 2004).

The Computer A computer is a programmable machine designed to sequentially and automatically carryout arithmetic and logical operations. The particular sequence of operation can be changed readily, allowing the computer to solve more than one kind of problem. Conventionally, a computer comprises some from of memory for data storage (kennerwell, 2004). O`Brien (2003) a computer is a programmable multi-use machine that accepts data, raw facts and figures, processes it into information we can use with the 336 | P a g e

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purpose of problem solving and increasing productivity. Bella (2003) sees computer as a programmable machine that responds to a specific set of instruction in a well -defined manner and can execute pre-recorded list of instructions called programs. A computer system consists of two components which are; • The Hardware • The Software

The Hardware The term hardware covers all those part of computer that are tangible, that is to say, they can be seen and touched (Yung, 1999).

Software Software is a collection of computer programs and related data that provide the instructions for telling a computer what to do and how to do it. In other words, it is a conceptual entity which is a set of computer programs, procedures, and associated documentation concerned with the operation of a data processing system. It is the intangible or component of computer system which gives instruction on what a computer should do (Irfan, 2004). The three primary categories of software are operating system software (system software), programming software and application software. System software provides the basic functions for computer usage and helps run the computer hardware and system. It includes a combination of drivers, operating systems, servers, utilities and window-systems. System software is responsible for a variety of inter-dependent hardware component, so that they can work together harmoniously. Its purpose is to unburden the application software programmer from the often complex details of the particular computer being used, including such accessories as communication devices, printers, device reader, displays and keyboards, and also partition the computer`s resources such as memory and processor time in a safe and stable manner. Examples include Windows XP, Vista, Windows 7 and Linux (Mark, 2001). Program software provides tools that assist in writing computer programs, using different programming languages in a more convenient way. Program software includes computers, debuggers, interpreters, linkers and text editors (Skyes, 1990).

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Application software is developed to aid in any task that benefits from computation. It consists of programs that have been written to perform information management and problem solving functions for the computer user. It is a broad category and encompasses soft ware of many kinds including the internet browser, business software, databases, decision making software, image editing and so on (Brounen, 2001).

The Mobile Telephone. A mobile phone, cell phone or hand phone is an electric device used to make mobile telephones calls across a wide geographic area, allowing the user to be mobile(Tracy, 2002). In addition to telephony, modern mobiles phones have a wide variety of other services such as text messaging, multi media messaging, email, internet access, short and long range wireless communications (infrared, Bluetooth), business application gaming and photography (Hunt,1996). According to Canale (2001) mobile phones were before now mostly used for communication between individuals, but the advancement in technology has brought about many more features that provides a more diverse functions in the mobile phones. Freedman (2000) affirmed that real estate agents were the early adopters of mobile phones back in 1990`s as their work environment certainly had them out and about more than many professions. At present, mobile phones gives the ability to the people to connect with their clients in various locations. In the past, office phone systems have been confined to the walls and desk of work places, making it extremely difficult to remain contactable while out of office. According to Lai (2003) the real state is the best example of the increased efficiency due to mobile networking. A real estate agent is in their estate agency office only a small percentage of each day, with the remainder of their time spent out at properties and meeting with new clients. It is integral part of real estate industry to maintain contact and connectivity with their main office as well as to maximize their productivity and increase business.

THE INTERNET According to Ani (2005) the internet is a network of linked computers which are located at different points all over the world that provides easy communication between persons and organizations no matter where they are located. According to Evans (2000) the internet is an international network of computers which 338 | P a g e

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facilitate information and resource sharing among billions of computer users all over the world. The internet is a much bigger version of network. Nwafor and Ezejiofor (2004) in Sadler (1995) observed that the network is not a single network of computers but a network of nets, a large network that connects many smaller networks to one another. The major functional advantage of the internet stems from its willingness to share. Information so that every one might benefit. According to Cashman (1999) some internet services hold vast amount of information, much of which is freely accessible and available 24 hours per day .the information may be of varying quantity but the diversity of available information is extra ordinary. Every piece of information stored on the internet has a unique address known as a Uniform Resources Locator (URL). Search engine provide a mechanism for locating information. The information is available for the benefit of users all over the world and at a cost that is reasonable and affordable. All the diverse networks and systems and the information provide are linked by common protocol (language); the TCP/IP, transport protocol provide the means for communication, while application protocol provides the higher level services. Together, these protocol allow divers system to share data and to communicate. According to Shelly (2000) the internet serve as a marketing medium through which business are conducted. With the emergence of e-commerce, the internet has established an electronic global world – wide market that operates 24 hours a day. Organizations and individuals are able to market their products, goods and services, while purchasing is supported by facilities such as digital signature and encryption. The internet ‘chat’ allow users to stay in touch with each other in a convenient way when working at their computers (Broun, 1998). The internet allows for data transfer and file sharing which is an example of transferring large amount of data across the globe.

World Wide Web (WWW) A world wide web (www) is a system of internet servers that support hypertext to access several internet protocols on a single interference. What this means is that the World Wide Web provides support for almost all the various types of internet protocols on one single platform. In addition to providing support for existing internet protocols, the worldwide web has its own protocol; hypertext 339 | P a g e

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transfer protocols (HTTP). The information on the worldwide web can be accessed and searched through the internet (Lee, 1990).

Website Fellows (1998) opined that a web site is a place or computer on the internet that contains information that other internet users can access. The idea here is that users who have information they want others to access, crate a web site and put the relevant information on it, then other users can have access from their own computers via the internet.

The Intranet Intranet is a computer network that uses internet protocol technology to securely share any part of an organization’s information or network operating system within the organization (Bill, 2001). Callaghan (2003) viewed intranet as the organization’s internal website which is accessible only by the authorized members as usernames and password are incorporated in the login process. Access to internet may be able from two platforms which are ; (i) A local platform through computers configured for intranet access within the website of the organization. (ii) The internet through a website providing a link to log in to the internet. Which is open to the users and as a result they can access it where they are if there is internet access. Increasingly, internet is being used to deliver tools and applications, for example, collaboration (to facilitate working in groups and teleconferencing) or sophisticated corporate directories, sales and customer relationship management tools, project management and so on to advance productivity (De Lapp and Ford, 2004).

The Extranet This is a computer network that allows controlled access from outside for specific business purpose. An extranet can be viewed as the extension of company’s intranet that is extended to users outside the company or organization (usually partners, vendors and suppliers). The aim is to securely share part of information or operations with some people outside (Callaghan, 2002).

Electronic Bulletin Boards 340 | P a g e

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An Electronic Bulletin board service (BBS) is one of the services on the internet that facilitates interaction and collaboration among users (O’Brien, 2003). The electronic bulletin board allows several users to exchange or share information on various topics. The major difference between bulletin board service and email is the fact that bulletin board service messages are stored on central computers and users most connect to these computers to read or download the messages posted to these groups. This is distinct form discussion groups where messages arrive in the electronic mail boxes of each member. Bulletin board service discussion forums are usually called newsgroups. The way it works is such that any members who has information to share with other members, posts the news to the bulletin board, where it is stored for others to read (Goodman, 1999).

Electronic Mail According to Eneh (2001) electronic mail is a method in which text files, data, and other relevant files are transmitted from one person to another or from one place to another electronically by means of internet connection. Electronic mail which is a component of information and communication technology enables users to exchange messages faster and quickly. The process of sending and reviewing emails is quit simple. According to Harmang (1999) electronic mail need and address of the recipient, which may be a general internet electronic mail address of the form; name @ location, where the username is the name of the person and the location is the provider or the host and the name is unique for that service provider. Emails both sent and received can be stored in the mail box indefinitely although there may be a limit on the total size of storage (Kennewell, 2005

Network Walker (2005) reported that one of the problems for partners to exchange and share information is the distance between them. However, a computer networking is here to bridge the gap. Mamar (2001) defined network as a communication system connecting two or more computers or other devices together to support digital communication among them, and to share data and application without using a disk or other storage device. Networks are of two major types and these are; (i) Local Area Network (LAN) (ii) Wide Area Network (WAN)

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Local area network (LAN) is the network which connects computers and communication devices in a relatively small geographical location, such as an office, home or building to facilitate sharing of information and peripheral devices like printers and scanners (Clement, 2001). Wide area network (WAN) typically consists of two or more local area networks. The computers are farther apart and are linked by dedicated telephone lines or radio waves, it can cover a country or the whole world. The internet is an example of the largest wide area network in existence (Clement, 2001).

APPLICATIONS OF INFORMATION AND COMMUNICATION TECHNOLOGY IN THE REAL ESTATE INDUSTRY (i) Virtual Tours One of the major and best pieces of technology that has become a great tool for many real estate agents or companies that operate a web site is the ‘’virtual-tour’’. The virtual tour could be considered as a revolutionary selling tool for real estate agents. A virtual tour is a nifty piece of technology that allows prospective buyers to visit a property in the comfort of their own homes and office. It is like taking a guided tour of a property but actually viewing it in the computer screen. Prospective buyers and tenant will check out the property initially when it is something they actually fancy (Seiler and Bond, 2001). According to Littlefield (2000) information and communication technology has now revolutionized the way business is carried out in the real estate. To sell houses or get approval for loan, a system is needed whereby hundreds of properties are conveniently imaged and uploaded to a particular website and any prospective buyer will have a 3D and a 3600 view of the property together with the necessary information about the property and the agents who is responsible for the sale of the property. (ii) Valuation Analysis and Methods The main asset of a valuation firm aside from its staff`s expertise as its files and sales data (Muhanna, 2002). In a system incorporating information and communication technology, a bank emails a request for a valuation, sales are extracted from an online database using filters to identify a sample of relevant sales, the property is inspected, the valuation is completed on a bank supplied form on a laptop or any other type of computer, transmitted by wireless technology to the bank, which then credits the valuation firm or client’s account for the valuation service. A process that used to 342 | P a g e

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take several days could be compressed to a few hours, valuers who used to 3-4 valuations a day, now can complete 7-8 per day, including property inspections this automatically leads to a minor transaction cost (Barnard, 2002). Lease software programs such as Argus, Dynalease, and office/2 and project are used in valuing commercial and multi-tenanted properties (Seiler, 2001). (iii) Home, Office and 24/7 Contact. Emails, faxes and video conferencing add further dimensions in the ability to work from home and offices. Real estate developers and construction professionals can integrate data, building materials information and project management into more efficient system that save both time and money resulting in higher profit margins with fewer employees. Good communication from mobile location is especially useful and various parties need to be updated to coordinate their activities (Sirmans, 2002). (iv) Property Managing Software Property managers nowadays rely heavily on software systems to make their work faster, more efficient, and to avoid mistakes. Software allows managers to get automatic reminders of lease expiry data, scheduled inspections of properties and rent reviews (Lun, 2005). (v) Trust Accounting Information and communication technology makes it possible to unbundle specialized areas, for example trust accounting. Property managers must, by law, keep monies collected on behalf of others (rents, lease) in separate accounts, not co-mingled with personal or corporate funds. The information and communication technology makes it possible, by the use of software such as oracle to put in place automatic posting of payments to the proper accounts and also notify both the property manager and his client on any payment or withdrawal made in respect to the account concerned. The prevents the property manager from unauthorized withdrawal of money from his clients account except he is using the money for the upkeep of the property, and the system will also cast away suspicions or claims on whether rental payment has been made by tenants or not (Sterman,2000). (vi) DataBases for Commercial Sales and Leasing A property firm database can access every tenancy, lease expiry data, sales, and building characteristics and so on. What used to be information carried out in the heads of agents can now be accessed in a more complete detail, by use of database technology. Moreover, this same information would be available from firm`s 343 | P a g e

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offices anywhere they are located. This surely gives a firm using a data base system a competitive advantage over others not using the data base system (Hansel, 2002). (vii) Office In Car The productivity enhancement process began with faxes, personal digital assistants and cell phones nowadays, the facsimile allows signed documents to be transmitted, negotiations to be consummated from remote locations and saves travel time. Cellular phones have had a huge impact in the real estate industry. Real estate industries have been quick adopters of M-commerce solutions, Emails, voicemails, cellular phones and pagers, and have increased efficiency and productivity of individual agents (Baen and Guttery, 1997). Recently, the Samsung mobile designed a mobile phone that is real estate- friendly. The Samsung Mobex feature on the Samsung office mobile phone systems came with the advanced feature that allows estate agents access to functions such as unified messaging which enables all voicemails, emails, and fax messages to be directed to one central inbox for convenient organization. The powerful text to speed capability allows the estate agent to listen, record, organize and maintain emails messages from the mobile. Database integration is also available via officeserv7000 which allow the user to integrate client’s databases through the phone. Conferencing calls are also possible on the Samsung officeserv7000. With quick and easy accessibly, conference calls can be organized and recoded with the capacity of up to 50 hours talk time. This is a feature of Conference Bridge Call Record function which can be retrieved at a later time or date (Trimble, 2007). (viii) Property Information Websites These are websites selling information about land and buildings, types of properties available for sale and lease. The information can be accessed once a person log in to the website of those property information websites. (ix) Geographic Information System Geographic information system is an organized collection of computer hardware, software, geographic data and personel designed to efficiently capture, store, update, manipulate, analyze and display all form of geographically referenced information (Irfan, 1992). Geographic data is the data relating to the earth explaining objects in the real world based on; • Location 344 | P a g e

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• Attribute • Spatial relation; and • Time

Conclusions To conclude, this paper set out to explore how the use of ICT and its gadget has changed the way activities or dealings are carried out in the real estate sector. It also indicated that if ICT is properly harnessed, a lot more achievements will be recorded to ensure a faster, more efficient, and technologically viable real estate. It identified the various real estate resources include; Phones, software, application, and other communication gadgets such as internet can be used by estate surveyors at the comfort of their offices to carry out one form of transaction or the other such as property marketing through advertisement on the internet, property valuation and management using software, portfolio and asset management software and so on This helps in making the job easier, saves time and operational cost, increased productivity, facilitation of decision making, and providing the users with competitive advantage over others. All these promotes efficiency in the way estate surveyors and valuers perform their functions

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