THE EFFECT OF BUREAUCRATIC PRACTICE ON A PROFIT ORIENTED PUBLIC ORGANIZATION

THE EFFECT OF BUREAUCRATIC PRACTICE ON A PROFIT ORIENTED PUBLIC ORGANIZATION

(A CASE STUDY OF POWER HOLDING COMPANY OF NIGERIA (PHCN)

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND TO THE STUDY

For us to understand any concept and it is a both intrinsic value, we have to know the background or the history of such concept before the advent of 19^th century bureaucracy, which has come to be the ‘’heart and engine room, of the modern public administration was completely not in existence, a position of authority and public trust then was through sentiment and favour, not merits were predominantly in existence administrative issue or responsibility were’’ unsystematic unplanned, uncoordinated and unadministrtive.

It could be believed that the development of among economy is a presupposition for a bureaucracy, there have been great bureaucracies in history (From Egypt to the Catholic Church) overtime the compensation practices for officials develop from various payments in kind schedules to a fixed salary paid in currency administrative tasks grew from the political organizations created through out history.

The development of cohesive, state in the middle age coincides with the development of sophisticated bureaucracies.

In the past, the bureaucratic tendency has chiefly been influenced by needs arising form the creation of standing armies as determined by power politics and by the development of public finance connected with the military establishment, apart from the above development in the military, the increasing ad over expanding roles of government and sudden large increase of public enterprises necessitated all the vital roles with the military of bureaucratic of practices the only ameliorable pedestal of public administration, the characteristics of bureaucracies practices in management of public resources through an effective public administrative policies makes bureaucratic practices so crucial in any organization, practically public enterprises, this the ideal features or characteristics of bureaucracy amongst other include;

1. Fixed jurisdictional areas, ordered by rules and regulations.
2. Authority to give commands required for discharge of these duties is distributed in a stable way
3. Procedures is present for the regular and continuous fulfillment of these duties (i.e. replacement plan for each position) and only persons qualified are employed.

There is supervision for lower official by higher ones, the management of the offices is based upon written documents, files, the offices property is not private property. Office management presupposes training and the official duties of the office take up all the persons time private time is not part of working time. The office operates on rules that can be learned office holding is not a reason to extent monies from other as was in past history), entrance into an office is considered on acceptance of a specific obligation of faithful management in return for a scheme existence, the bureaucratic is paid a salary plus a person based on his position in the hierarchy his career is normally from lower to higher position, all the above characteristic has began to be the guiding administrative compose of all public organization despite various opinion against bureaucratic which has been placed upon the negative effects of bureaucratic practice which includes, every things from passing the back to the down fall inefficient, overly large, a threat to liberty being out of touch and exhibiting the qualities sluggishness complacency, and arrogance.

However, the nucleus of the research work is not make case for against bureaucracy in the objective is to be explore the possible and indeed the effect of bureaucracy in a profit oriented public enterprises. Our organization bases specifically on the case study of power holding company (PHCN) of Nigeria.

In summary, the expanding obligation of government to diversity into such activities like economic and social venture, which are largely profit making ventures has made bureaucracy role and to realize such objectives, government set up public organization is administrative known as statutory co-operation meaning public enterprise as based an established laws.

1.2  STATEMENT OF THE PROBLEM

The Power Holding Company (PHCN) of Nigeria specifically is the central never of this research work. This multi-billion naira company which was muted by the General Yakubu Gowon’s military administration and later stated by the Shehu Shagari civilian regime have for the regime have for the past 39 years been evilled with problem of factors, lack of political will and sincerity of purpose on the part of successive administration etc.

All of these factors led to the Power Holding Company (PHCN) of Nigeria in ‘’coma’’ is the effect of bureaucratic practices and this played a prominent or leading role.

Therefore, in view of the indispensable and strategic roles bureaucracy in the management of public organization like in the power holding company, it has become very necessary so as to test the possible effect of bureaucracy as a concept has also in the recent time came under attack for the reasons of propounded negativities effective on public organizations and Power Holding Company (PHCN) of Nigeria been vocation of undue bureaucracy. It has essentially made it possible for this research work to understudy the bureaucracy concept effects and the possible effects of eventually realization of Power Holding Company (PHCN) of Nigeria.

1.3  OBJECTIVES OF THE STUDY

The main objectives of this study is to examine the effect of bureaucracy on a profit oriented organization with particular reference to Power Holding Company (PHCN) of Nigeria.

1. To determine the extent of bureaucratic practices in Power Holding Company (PHCN) of Nigeria.
2. To examine in detail what is profit oriented enterprises
3. To objective make or arrive at judgement about the nature, or quality of the effects of bureaucratic practices on a profit oriented public enterprises.
4. To look for possible effect of bureaucratic practices that could bring efficiency to public organization particularly the profit oriented public enterprise like Power Holding Company (PHCN) of Nigeria.
5. That through this research work, useful suggestions and recommendations on the ways and means of addressing the negative impacts or effects that bureaucracy has on the profit oriented public organization particularly Power Holding Company (PHCN) of Nigeria.

1.4  SIGNIFICANCE OF THE STUDY

The research work significant cannot be over emphasized, it calls for urgent awareness and swift or prompt actions been taken to forestall the state of debacle with which Power Holding Company (PHCN) of Nigeria is into.

Secondly, this work will bring to lime light on the negative and positive effects of bureaucratic practices in a profit oriented public enterprises e.g Power Holding Company (PHCN) of Nigeria and time to improve solutions.

Thirdly, this work or research will relatively serve as one of the pioneer work conducted on the Power Holding Company (PHCN) of Nigeria and this will surely prove great assistance not only to administration and managers of Power Holding Company (PHCN) of Nigeria, but to the related public profit oriented organization.

The fourth significance is that it provides or is a readily available working guide to policy makes and implementation and more so to the coming and implementations and more so to coming scholars and research work on bureaucratic works.

Lastly, but not the least is the research this research work serves as a partial fulfillment for the award of Higher National Diploma (HND) in Public Administration.

1.5  RESEARCH QUESTIONS

For effective and simplicity, the researcher for clarity adopted the following questions in the study:

1. Did bureaucracy practice impact or affects Power Holding Company (PHCN) of Nigeria.
2. What are the effect of bureaucracy in the context of Nigeria.
3. Does bureaucracy have any positive or negative effect on only public organization.
4. Bureaucracy is known to incline characteristically what one these characteristics
5. What is bureaucracy
6. Does the concept of bureaucracy and its connotative meaning finds only place in Nigeria
7. Does bureaucracy bring positive growth in a profit oriented public organization or cooperation in Nigeria
8. What is the impact of bureaucracy on Power Holding Company (PHCN) of Nigeria?
9. Does the practice of bureaucracy leads to the lop sidedness of the organization structure of the Power Holding Company (PHCN) of Nigeria
10. What is the objective aims of the bureaucratic practice in the Power Holding Company (PHCN) of Nigeria.

The bank of River Nigeria it was stated from the era of military rule, the Power Holding Company (PHCN) of Nigeria project was established in no 24 of 1^st April 1972 by the Federal Government to serve as a base for Nigeria Industrialization.

according to experts was designed as an integrated Power Holding Company (PHCN) of Nigeria complex based on the conversion Power Holding (PHCN) route Power marking and basic power (PHCN) for Power making. It is a company confirmed to be a project embarked upon as a strategic industrial and foreign exchange earner which was expected to serve as a major industrial breakthrough for the nation (Nigeria).

An organization is a social group which distributes tasks for a collective goal. It is the collection of organs of scientific method and attracts of the all amateur.

The Greek word Aregano, itself derived from the better known ward ergo which means ‘’arga’’ a compartment for a particular tasks. These are variety of legal types of organizations government armed forces, charities not far profit corporation partnership cooperation and university, a hydria organization is a body that operates both the public sectors simultaneously fulfilling public duties and developing commercial market activities.

1.6  SCOPE/LIMITATIONS OF THE STUDY

The scope/limitations of this research work dwells solely on the ambit of effects of bureaucracy on the profit oriented public organization with a case study or emphasis on Power Holding Company (PHCN) of Nigeria as a result of the consistent crisis that have circumvented the eventual take off the multi billion Power Holding (PHCN) of Nigeria that is swimming in the sea of comatose.

The research work will succinctly under study the other important factors along side with the major factor (bureaucratic effects) that have stalked the realization of the Power Holding Company (PHCN) of Nigeria. As in this research work experts relies on arguments for and against bureaucracy practice on profit oriented public enterprises will be carried out with a particular securities of analysis based on Power Holding Company (PHCN) of Nigeria as our scope/limitations of the study.

Through the process of this research work seems very successful, but it did not go without numerous problems which have presented themselves to this work as limitations and they are as follows:

1. The hazard that ensure from constant journeys particularly between the school and the Power Holding Company (PHCN) of Nigeria.
2. First and foremost is serious financial constraints result from the present economic situations of the country.
3. Lack of or non-availability of sufficient literature for the research work
4. Inadequate time to conduct indebt research work and the non challant attitude of respondents to questionnaires also stood as obstacle to easy research work.
5. Insufficient data collection also nearly married the success of the research work.

1.7  DEFINITION OF KEY TERMS

The term bureaucracy basically defined as the system of official rules and ways of doing things that a government

or an organization has especially when these seems to be too complicated.

An administrative system in which the need or inclination to follow rigid or complex procedures impedes effective action.

Administration of a government chiefly through bureaus or department and their officials as a group.

Management or administration marked by hierarchical authority among numerous offices and by fixes procedures.

The terms bureaucracy basically means rule by office, it is derived from French word, bureau meaning office it is an organization of non elected officials of a government organization who implement the rules laws and function of their institution.

Liberian bureaucracy has its origin in the work by Max Weber (1964+1920) a notable German sociologist, political economist, and administrative scholars who contributed to the study of bureaucracy and administrative discourse and literatures during the late 1800 and early 1900 Max Weber belongs the scientific school of thought, who discussed such topic as specialization of job scope, merit system, uniform principle, structure and hierarchy.

His contemporaries includes Fredrick Taylor (1856-1949) and later scholars such as Herbert A, Simon (1961-2001) Owugh Waldo (1913-200) and others.

In summary, Bureaucracy simple means, these type (rational) organization designed to accomplish charge scale task by coordination designed to accomplish large scale task by coordinating the work others in a systematic manner, bureaucracy emphasis rules and regulations and the governing of directives or order which must be obeyed if the organization is to function effectively, bureaucracy is only large complex administration and complex rules it is also based on the principle of hierarchical authority, job specialization and formal rule, and finally, bureaucracy simple means a way of organizing peoples to work.

PUBLIC ENTERPRISE

Definition of public enterprises change over time the United Nations definition of public enterprise is incorporated or large unincorporated enterprise in which public authorities hold a majority of the shares and /or can exercise central over management decision.

POWER HOLDING COMPANY (PHCN) OF NIGERIA

The Power Holding Company (PHCN) on Nigeria project is located on the whole expense of land in Geregu Power Plant at Ajaokuta local government area of Kogi State.