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THE GROWTH OF INDUSTRIES IN NIGERIA: PROBLEM AND
PROSPECT
(A CASE STUDY OF AJAOKUTA STEEL COMPANY)
Abstract
Empirical
evidences from the developed and few emerging economies have shown that the producing
unit of the economy tends to influence the entire economy’s performance and stability.
But, without adequate finance, incentive of operations, business friendly environment,
effective management and operation structure, growth-oriented government policies
and regulations, the manufacturing firms’ will not perform as expected. The
rate of firms exit in the Nigeria’s manufacturing sector prompted this study,
to analyze the dynamics of manufacturing firm’s growth in Nigeria using panel
analysis. The panel regression model employed emanated from the neo-classical,
managerial, and optimum firm’s size theories and theGibrat’s
Law of Proportionate Effect. Multi-stage sampling technique was used to survey 45
manufacturing firms quoted under the Nigerian Stock Exchange (NSE) between 1989
and 2008. The estimated dynamic panel model revealed that the manufacturing
firms finance mix, utilization of assets to generate more sales, abundance of
funds reserve and government intervention as indicated by Tobin’s Q, operating
efficiency, capital reserve and government policies are significant
determinants of manufacturing firms’ growth and dictated their dynamics in
Nigeria. Also, that the Gibrat’s component enhanced the growth rate of
manufacturing
firms’ sales, profit and capital employed dynamically in the manufacturing sector.
Keywords: Firms, Manufacturing, Growth,
Determinants, Panel data, Nigeria
CHAPTER ONE
1.1
INTRODUCTION
The Success or failure of
any organization depends largely on the cordial labour/ management relation.
Since they are partners in progress in
an organization. Following the industrial revolution of the 18th and
19th century in Britain and Autralia/USA.
The idea of
labour/management was evolved. During this period, as the rate of
industrialization progressed the power vested on the employees were curtailed,
hence the employer could no longer dictate every pace at the work place, these
ideas hitherto evolved and pave way for pluralistic ideologies and hence
management /labour relations was institutionalized.
However, in Nigeria the
emergence of wage employment made labour/management relations a strange one,
until during colonial administrative that wage is used as a means of
compensating workers for services rendered.
At the end of the first
would war, labour became surplus, this excess labour brought about the
exploitative tenderness of workers employment were determined by the forces of
demand and supply.
The ideas of the
classical economists were institutionalized in the labour market. This no doubt
brought about industrial misery, this is so because the bargaining power of the
labour was far worker than the position of the employer.
This was the starting
point of labour/management conflict.
Several variables have
been identified as the courses of growth of industries growth in Nigeria between
unions and the employers (management) within the organization which include:
when perceived right and privileges are denied or trampled upon, deliberate
creation of communication gap between employees and employers, when management
fails in its responsibilities or basic functions e.g. payment of salaries,
promotion, job and personal/property security etc.
The emergence of trade
union ideologies brought a new objective into labour/management relation which
is primarily to improve the working conditions and increase in wages and
secondly to protect the interest of their members. Example of trade unions are
the Nigeria Labour Congress (NLC) Trade Union Congress (TUC) Nigeria Union of
Teachers (NUT).
However, the unions adopt
agitation as a tool for expressing their grievance to the management which
enable labour/management reconcile its conflicts through consultation and
collective bargaining.
1.2
STATEMENT OF PROBLEM
The problem of management
is a common issue in an Organization, which Ajaokuta Steel Company is not an
exception. People sees the problem of ASCL to ineffective and corruption which
leads to series of conflict as a result of non-payment of salaries and
allowance for some months now. All these referred the progress of the company.
1.3
OBJECTIVE OF THE STUDY
The study aims at
identifying ways to create a conclusive atmosphere in which the workers of
Ajaokuta Steel Company can be motivated to contribute towards the realization
of the objective for which it was set- up. And to identify factors adversely
affecting the relationship between the employers and the employees.
The objective of the
study includes:
i.
To
identify causes of industrial conflict and to prefer solution
ii. To suggest ways to create conclusive
atmosphere for workers of Ajaokuta Steel Company.
iii. To look at the negative effect of
affecting the growth of the industrial.
iv. To recommend possible ways of the
management of industrial conflicts.
v. To identify the role of management
(employer) and the labour (union) in the management of industrial conflicts.
1.4
THE SIGNIFICANCE OF THE STUDY
The subject is
significant for a number of reasons, some of which are as follows:
i.
It
provides data for future researchers who intend to undertake a study on the management
of industrial.
ii. It will equally go along way to guide
us in our bid to understand the problems and prospects of employees and their
employers.
iii. It also gives us insight into the
responsibilities of management that were neglected which leads to industrial
disputes and to identify solutions to the above disputes to ensure smooth and
enduring labour/management relation.
iv. Lastly, given that labour had
experienced authoritarian management regime, it is important to establish rules
to protect the rights of labour to avoid law-offs and sacks without pay as in
the past.
1.5
SCOPE/LIMITATION OF THE STUDY
The researchers intend to
properly look at the relationship that exist between the labour and management
of Ajoakuta Steel Company Limited.
The study will also offer
useful suggestions on how to manage the growth and promotion of the organization for peaceful atmosphere,
particularly ASCL. However, some limitations encountered during the study
include:
i.
Academic Work Load: The rate of academic work is too
cumbersome to combine with project write up.
ii.
Time: Time as you know is everything. Time
was the greatest problem of the study because of tight schedule as a worker and
part time student.
iii.
Access to records: Lack of free access to records
resulting from the uncompromising attitude of those in-charge of giving vital
data under the pretext of being “top secret” is a serious limitation.
iv.
Finance: In the course of undertaking a
course of study, it always involved money. And money is a scarce resource,
hence the prudent utilization of the little available one which negatively
affects the quality of this write – up.
1.6
THE RESEARCH QUESTIONS
In this project, we shall
answer the following Research
Questions,
i.
Intensive
approach to workers, general grievance and accumulated anger and frustration
leading to open confrontations/disharmony is ASCL.
ii.
Government
policy affects labour/management relationship
iii.
Deliberate
creation of communication gap which affects/management relationship.
1.7
DEFINITION OF CONCEPTS
1.
Management: According to Oxford Advanced Learner’s
Dictionary of current English sixth edition 2000. management is the act or
skill of darling with people or situation in a successful way.
2.
Industrial Conflict: This refers to conflict or dispute
that may arise between the employees and the employers in particular industry.
3.
Labour:Labour naturally is the energy, the
intellect, the mental activities of individual contribution towards achieving a
goal in the production of goods and services. Labour are the people that work
in an organization.
4.
Trade Union: Trade Union can be described as the
coming together of workers (body) in order to enable them struggle for their
rights employers through collective bargaining.
5.
Public Sector: This refers to the section of the
economy established and control by the government which could be profit or nonprofit
oriented.
6.
Dispute/Shrike Resolution: Strike is the total stoppage of
labour supply in order to bring pressure on employers to accede to the demand
of employees (labour unions) in an organization.
7.
Grievances: This refers to unfairly treatment of workers
by the management which could lead to breakthrough dialogue that causes of
disputes are identified. Analyzed and solution are found.
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