i ACHOR UGOCHUKWU M. THE IMPACT OF MANAGERIAL TECHNIQUES ON PRODUCTIVITY CAPACITY OF NIGERIAN BREWERIES PLC ABA (2004-2008) DEPARTMENT OF PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT SOCIAL SCIENCES COMMANDER, EMMANUEL ONIGHOROBOH UNIVERSITY OF NIGERIA, NSUKKA ii THE IMPACT OF MANAGERIAL TECHNIQUES ON PRODUCTIVITY CAPACITY OF NIGERIAN BREWERIES PLC ABA (2004-2008) BY ACHOR UGOCHUKWU M. REG.NO.PG/MSC/08/49464 DEPARTMENT OF PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT UNIVERSITY OF NIGERIA, NSUKKA MAY, 2011 THE IMPACT OF MANAGERIAL TECHNIQUES ON PRODUCTIVITY CAPACITY OF NIGERIAN BREWERIES PLC ABA (2004-2008) iii BY ACHOR UGOCHUKWU MARCELLINUS (REG.NO. PG/MSC/08/49464) A RESEARCH PROJECT PRESENTED TO THE DEPARTMENT OF PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT UNIVERSITY OF NIGERIA, NSUKKA IN FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF MASTER OF SCIENCE DEGREE (M.Sc) DEPARTMENT OF PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT UNIVERSITY OF NIGERIA NSUKKA iv v DEDICATION This research work is dedicated to my late father Mr. Matthew Onwukwe Achor Who brought us into this world and inculcated in us the Virtues of hard work, honesty, sincerity and sense of responsibility in all endeavours we undertake. vi ACKNOWLEDGEMENT I must thank my eldest brother Dr. Justin U. Achor, who contributed immensely towards the execution of this research work by downloading relevant materials from the internet and for advising me on how to go about gathering data for this research work. I also want to thank my project supervisor Dr. (Mrs.) Mabel A.O.Obi for patiently reading through this work and for her motherly guidance all through the execution stages of this project work. My gratitude would not be complete if I fail to acknowledge the efforts of Mr. Chuks Collins Achor and Dr. George Achor, both brothers have supported me humanly and financially in the course of carrying out this project work. I also want to thank my younger sister Juliet Achor for her patience and understanding while I was carrying out this study. At this juncture I would like to thank specially Mr. Ogbe Dick and his colleagues of Nigerian Breweries Plc for helping me during the administration of the research questionnaire for this project work. I give God all the glory. vii Abstract This research study is an assessment and evaluation of the impact of a managerial techniques on the productivity capacity of Nigerian Breweries Aba from 2004-2008. In order to carry out the assessment, specific research questions and objectives were defined to stimulate the conclusion of the work. The systems theory formed the theoretical framework to explain the influence of the external environment on the organization. The methodology applied to achieve the objectives of the study consists of Annual reports compilation of the company from 2000-2008 and field survey using structured questionnaire which were administered to a sample population of seventy staff of Nigerian Breweries Aba. Based on the Annual reports of the company the productivity of the company was higher before the introduction of a new management technique at the Aba branch of the company. The productivity of the company was lower when the new management technique was introduced. The productivity of the company was high after the new management strategy was introduced at the Aba branch of Nigerian breweries Plc. From the findings of the research it is recommended that management should properly communicate with workers and the customer (outside environment) before they adopt a particular managerial strategy in production, management should also assess critically the impact of any technique they adopt on the worker before they commence the implementation of such technique in production. viii TABLE OF CONTENT Approval page…………………………………………………………….iii Dedication…………………………………………………………….…...iv Acknowledgement…………………………………………………….……v Abstract………………………………………………………………..…...vi Table of content…………………………………………………….…vii-viii List of figures………………………………………………………….…..xi Chapter One 1.1 Introduction……………………………………………………….……1 1.2 Statement of the problems……………………………………………...5 1.3 Objective of the study…………………………………………………..7 1.4 Significance of the study………………………………………………..9 1.5 Scope/ limitation of the study………………………………………….10 Chapter Two Literature review………………………………………………………..….11 2.1 Introduction…………………………………………………….............11 2.2 The concept of Managerial Techniques………………………….….…11 2.3 Downsizing……………………………………………………….….....20 2.4 Strategies of Downsizing………………………………………………21 ix 2.5 Approach of studying downsizing practices…………………….……..24 2.6 Why Organizations Downsize……………………………………........26 2.7 Effects of Downsizing to Organizations……………………………….28 2.8 Effects to Downsizing on the Market………………………………......35 2.9 Effects of Downsizing on the Employee…………………………….....36 2.10 Other effects of Downsizing………………………………………….39 2.11 Nigerian Breweries…………………………………………………....41 2.12 Research Hypotheses……………………………………………….…46 2.13 Theoretical Framework……………………………………………….46 Chapter three Methodology……………………………………………………….………51 3.1 Location of the study (Area of study)………………………….………51 3.2 Population of study…………………………………………………….52 3.3 Target population of the study…………………………………………53 3.4 Procedure/ instrument for data collection………………………….......54 (i) Method of data collection………………………………………..55 (ii) Primary source………………………………………………...…55 (iii) Secondary source……………………………………………...…55 (a) Sample size of the respondents………………………………..........55 (b) Information on data distribution and collection……………….........55 x (c) Validation of instrument………………………………………...…..56 3.5 Administration of questionnaire/instrument……………………..…..56 3.6 Sample Technique…………………………………………………..…57 3.7 Method of data analysis …………………………………………....57-59 Chapter Four Presentation and Analysis of data………………………………………60-73 Chapter five Summary, Recommendations and Conclusion…………………………74-77 Bibliography Appendix xi LIST OF TABLES 1. Downsizing strategies…………………………………………………22 2. Depth and Breadth of downsizing……………………………………..23 3. Reinforcement and reorientation approach of downsizing…………...25 4. Studies conducted on the downsizing impacts on profitability in countries of USA, Canada, Japan, Spain, Korea, New Zealand, Australia and Slovenia ……………………………………………………………….………..30-32 5. Studies conducted on the impact of downsizing over stock market value result, in UK, USA and Japan……………………………………….…33-34 6. Studies on the effects of downsizing on Survivors in organizations..36-38 7. Studies on the effects of downsizing on innovation and innovative behaviours………………………………………………………….………40 8. The Breweries and their locations……………………………………44-45 9. Shows the staff strength of Nigerian Breweries……………………...….52 4.1 show the Profit margin (%) of Nigerian Breweries Plc from Year 2001 to Year 2008……………………………………………………..……………63 4.2 show the Return on Assets ROA (%) of Nigerian Breweries from Year 2001 to Year 2008………………………………………………….………63 4.3 Show the dividend payment profile for Nigerian Breweries from year 2000-2006………………………………………………………………63-64 xii 4.4 Show the number of employee of Nigerian Breweries Plc who are union members from year 2004-2006………………………….…………………64 4.5 Shows cost of staff salaries and wages from 2004-2006 of Nigerian Breweries Plc……………………………………………………………….64 4.6 Shows the responses from workers of Nigerian Breweries Aba on effects of the introduction of a new management strategy on productivity of the company……………………………………………..………….…..…..66-67 4.7 Shows the responses of staff of Nigerian Breweries Aba to ascertain whether a change in the managerial technique caused any change in the attitude of the workers towards their Co-workers……………...…….…68-69 4.8 Shows the responses of staff of Nigerian Breweries Aba to show the influence of the managerial strategy on the attitude of the workers towards the organization…………………………………………………………70-72 xiii LIST OF FIGURES 1. Shows the expected results of downsizing workforce decrease…….…..27 2. Shows the Range of Nigerian Breweries Products……………………….. 3. Shows Hierarchy of different departmental Directors and the MD/CEO.......................................................................................................45 4. shows the Hierarchy of departmental managers in the Organization…...46 CHAPTER ONE 1.1 Introduction The management of business organization, private or public is more challenging today than ever before. These days there is a push for increased productivity and responsiveness occasioned by increased competition, globalization and changing market characteristics. In the same vein, pressures for favourable financial results and higher stakeholder value in the context of heightened competition makes the task of management very daunting (Holloway et al, 1999). Good managers bring about sustained good economic returns and productivity enhancement through the adoption of proven effective management techniques and strategies. Effective management techniques and practices are those that would sustainably lead to effective and efficient production systems, service delivery, enhance competitiveness, increase productivity, organizational profitability and customer satisfaction (Wilcox xiv et al, 2006).Thus it is the responsibility of the management of business organizations to find ways of obtaining and maintaining competitive advantage in the global and local marketplace. In this regard, there is increasing recognition that a company‟s most valuable asset and primary source of competitive advantage is the complement of skilled personnel in its employment