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BUSINESS ORGANIZATIONS
AND MANAGERIAL EFFICIENCY OF SMALL SCALE ENTERPRISE
CHAPTER ONE
INTRODUCTION
Background of the study
A business organization is an individual or group of people
that collaborate to achieve certain commercial goals. Some business
organizations are formed to earn income for owners. Other business
organizations, called nonprofits, are formed for public purposes. These
businesses often raise money and utilize other resources to provide or support
public programs.
Organization is a broader term, as it includes businesses and
other groups of people not organized for commercial purposes. Clubs and sports
teams are examples of non-business organizations. Organizations have a specific
structure and hierarchy. People and systems create a culture within the
organization and guide its operation. Different organizations have different
policies, work flows and objectives.
Management is universal in the modern world. Every
organization requires the making of decision, the coordination of activities,
deciding in advance when, why how and who does what, setting of standards,
measuring performance against standard and reviewing the standards. Numerous
managerial activities have their own particular approach to specific types of
problems which fall under headings such as production and operation management
human resources management, management of health delivery system and others.
According to Nwachukwu (2007) management is the act of
getting things done through and with others. Another definition by Launer
(1999) he refers to management as the corner stone of organization
effectiveness and is concerned with arrangements for the carrying out of
organizational processes and the execution of work.
Kountz (2006) management is an operational process initially
best dissected by analyzing the management functions. The five essential
managerial functions are planning, organizing, staffing, directing, leading and
controlling. These tasks of management are interrelated and actually dove tail
into each other. Planning sets the stage by helping the organization to
determine where it wants to go (objectives) and how to get there (strategies
and tactics). These objectives and strategies determine the type of
organizational structure most suitable for the organization.
Organization structures are designed to fit the strategies
which are meant to achieve the objective and both strategies and objectives are
the outcome of planning.
There is no human endeavor that does not require proper
management for it to function efficiently. For every type of organization
either government establishment or private enterprise, there is need for
qualified managers to handle its activities. Management and organizations are
seen as the product of their historical and social times and place and to
understand the evolution of management theory in terms of how people wrestled
with matters of relationship at a particular time in history. The lesson here
is to learn from the trials and tribulation of those who have preceded us in
steering the fortunes of formed organization.
It is now obvious to everyone that, of the factors that are
necessary for economic take off, none is to be stressed more often than
management characteristically, the developing countries are known for their low
technological progress and extremely low labor productivity. A realistic
approach to the development of these countries call for qualified high level
manpower especially at the management level. In present day organizations it is
the manager that determines the appropriate technology required and the best
way to efficiently and effectively utilize all types of resources, be it
physical or human.
The Nigeria scene portrays the situation very adequately.
Despite her abundant natural resources and rich environment, the economy of
Nigeria has not quite taken off most organization do not operate smoothly and
efficiently. The management cadre which is a sine qua non for economic
development is lacking. The government in many instances has assumed the
function of entrepreneur and taken over the management functions, instances
abound to convince everyone that the government has not fared well as a good
manager, and has even performed worse than private entrepreneurs.
The need for management is essential to the development of
organizations, be it small scale or large scale industries, therefore, whenever
people work together, there is generally a need for the coordination of efforts
in order to attain expected result in reasonable time, and with minimum amount
of money, discomfort or energy. A manager is expected to be vast in knowledge
and to possess special talents or abilities quite different from non manages.
Statement of the problem
No organization, no matter its size can survive without an
effective managerial function and good organization, therefore, there is need
for sound and qualified man and women to operate in every organization
especially small scale enterprises; and also there should be capable hands to
manage the financial affairs in order to ensure a sound system of operation in
the enterprise.
It is important to note that, effective operation is not
exclusive concern of only one person or department within an organization, it
must involve every staff who should have the interest of the organization at
heart in order for it to achieve it set goal and objectives.
Significance of the study
The essence of this project cannot be over emphasized because
it will help Small Medium Scale Entities understand how effective management is
the yardstick and bedrock of every organization, thereby, enhances the
achievement of organizational objectives. Furthermore, it will guide and give a
sense of direction to the entire organization in the area of channeling
resources and enhancing productivity and also giving status to the
organization.
Objective of the study
This project intends to assess the impact of efficient
management function in the survival of small scale industrial towards the
achievement of the overall goals and objectives of the organization.
Specifically this project has the following objective:
To find out the relationship between management business
organization and managerial efficiency on small scale enterprises.
To examine some strategies for business organization and
managerial efficiency set out by small scale enterprises.
To find the role of business organization and managerial
efficiency on small scale enterprises.
Research questions
In order to achieve the stated objectives for the study the
following research questions will be asked:
What relationship exists between business organization and
management efficiency of small scale enterprises?
How does business organization and managerial efficiency
impact small scale enterprises?
What role does business organization and managerial
efficiency play on the growth of small scale enterprises?
Research hypotheses
Ho: There is no significant relationship between business organization
and managerial efficiency on small scale enterprises.
Hi: There is significant relationship between business
organization and managerial efficiency on small scale enterprises.
Ho: Business organization and managerial efficiency has no
impact on small scale enterprises.
Hi: Business organization and managerial efficiency has
impact on small scale enterprises.
Limitations of the study
The study was carried out to investigate the impact of
business organization and managerial efficiency on small scale enterprises. The
study is limited to eatery centres (tantalizer) in Rivers state, in Port
Harcourt Local Government Area to be precise.
Scope of the study
This research work is on business organization and managerial
efficiency on small scale enterprises of eatery centres (tantalizer) in Rivers
state, using tantalizer as a case study. The study could not cover other eatery
centers due to representative nature of tantalizer and proximity to the
researcher.
Definition of terms
Business: This is a person's regular occupation, profession,
or trade.
Organization: This is an organized group of people with a
particular purpose, such as a business or government department.
Management: This isthe process of dealing with or controlling
things or people.
Efficiency: This is the state or quality of being efficient.
Small Scale Enterprise: This is a business that employs a
small number of workers and does not have a high volume of sales. Such
enterprises are generally privately owned and operated sole proprietorships, corporations
or partnerships.
Business Organization: This is an individual or group of
people that collaborate to achieve certain commercial goals. Some business
organizations are formed to earn income for owners. Other business
organizations, called nonprofits, are formed for public purposes.
Managerial Efficiency: This is theprocess of dealing with or
controlling things or people in such a way as to achieve efficiency.
Rivers State: This is a state in southern Nigeria in the
eastern part of the Niger Delta.
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