Full Project – The effect of communication in the management and development of business organization in Nigeria

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CHAPTER ONE

1.0  INTRODUCTION

1.1  BACKGROUND OF THE STUDY

       As human beings we are involved in one form of communication or the other every minute of our lives.  We communicate within and relations know that we have something in mind you will only speak, behave or write out in clear your intentions, this is called communication.

It is generally agreed that the world have become a global village as a result of improvement in communication system, thus the need for communication system in human society cannot be over emphasized.  Life without communication will be monotonous and uneventful.  Whatever development the world has witnessed today in the areas of science, economics, technology, machine geology and politics are all due to the impact of effective communication.  When people interact, they exchange ideas and values.  People share ideas and values in their own way, and that is the basis on which innovation or development huge communication has been given different definition and meaning, but however, it is defined.  It should bring one thing to mind, the transmission of information, ideas and facts (message) from a sender to the receiver through a channel which ensures feedback.  Communication is the link between the past, the present and the future.  It is the binding force in every personal culture and the dominants influence in the personal life of everyone.  This research work is therefore concerned with finding out the impact of communication has in the management of that organization in the world at large.

1.1.1      PROFILE OF THE COMPANY OF CASE STUDY POWER HOLDING COMPANY OF NIGERIA (PHCN)

The history of electricity development in Nigeria can be traced back to the end of the 19th century when the first generating power plant was installed in the city of Lagos in 1898.  From then until 1950, the pattern of electricity power undertaking scattered all over the towns.  Some of the few undertaking was federal government bodies under the public works department, some by the native authorities and others by the municipal authorities.

By 1950, in order to integrate electricity, power development and make it effective the then colonial government passed the ECN ordinance No. 15 of 1950.  Within this ordinance in place, the electricity department and all those undertakings which were controlled came under one body.

The ECN (Electricity Corporation of Nigeria) and the Niger Dam Authority (NDA) were merged to become the National Electric Power Authority (NEPA) with effect from the 1^st of April 1972.  The actual merger did not take place until the 6th of January 1973 when the first general manager was appointed.  Despite the problems faced by NEPA, the Authority has played an effective role in the nation’s socio-economic development thereby steering Nigeria into a greater industrial society.  The success story is a result of careful planning and hard work.  The statutory function of the authority is to develop and maintain and efficient co-ordinate and economical system of electricity supply throughout the federation.  The decree further states that the monopoly of all commercial electric supply shall be enjoyed by NEPA to the exclusion of all other organizations.

NEPA from 1989, has since gained another status that of quasi commercialization.  By this, NEPA has been granted partial autonomy and by implication, it is to feed itself.  The total generating capacity of the six major power stations is 3,450 megawatts. In spite of considerable achievements of recent times with regards to its generating capability, additional power plants would need to be committed to cover plants and would need to be committed to cover expected future loads.

By 1970, the military government appointed a Canadian consultant firm “Showment Ltd” to look into the technical details of the merger.  The report was submitted to the government in November 1981.  By Decree No. 24, the ECN were merged to become NEPA with effect from April 1^st, 1972.  The actual merger did not take place until the 6^th of January 1973 when the first General Manger was appointed.  The day-to-day running of the Authority is the responsibility of the managing director.

In the early 1960s, the Niger Dam Authority (NDA) and Electricity Corporation amalgamated to form the Electricity Corporation of Nigeria (EFN).  Then immediately after the Nigerian civil war, the management of ECN changed its nomenclature to NEPA.  What is currently referred to as the Power Holding Company of Nigeria was formally known as National Electric Power Authority.

For several years, despite consistent perceived cash investment by the federal government, power outages have been the standard for the Nigerian populace, however, citizens of the country still do not see this as normal.

Generally, the tariff has been criticized as being too low compared to the cost of generating power.  The federal government of Nigeria has increased the tariff to attract foreign investors since the 1^st of July, 2010 in order to meet the growing concern for foreign investors into the electricity sector.

1.2  STATEMENT OF THE PROBLEM

The study sets out to examine the impact of communication of an organization using Power Holding Company of Nigeria.  It has been observed that communication freedom is a problem which includes:

• Inadequate Communication Facilities: The company lack adequate and up to date communication equipment, which will facilitate network in communication and information through effective communication, is the best asset that should be invested in by the organization.
• Poor Communication System Within the Organization: It is in realization of this that one tries to erase the friction that constantly exist between the management, supervisors and lower level in the communication process, for it is pertinent to establish, maintain and promote cooperation and production relationship with employers, and employees, government and ones and indeed the whole society which include the shareholders and stockholders for effective and efficiency.
• Problem of Communication Breakdown: This constitute the major problem, which is a more deeply rooted problem, for instance poor decision making is of the causes of uncertainty in the direction the organization will have to take, it should be noted that a poorly designed organizational relationships, so as to allow effectiveness among workers in harmony the standards which will improve workers focus and obligation should improved.
• Lack of Government Attention: Researches shows that Power Holding Company of Nigeria are encountering poor financial position which is as a result of lack of government attention to aid in financing the company, so as to improve their output.
• Information Distortion: Some information are deliberately distorted for inwardness by selfish individuals or groups just to promote personal ends and to pursue goals differs from the organizations goal.

1.3  OBJECTIVE OF THE STUDY

1. To determine the impact which communication has in the management of an organization.,
2. To determine if the channel of communication affects the message being transmitted.
3. To evaluate the form of internal communication flow that exists within an organization.
4. To form a basis for which further research on issue relating to this could be carried out.

1.4  RESEARCH QUESTIONS

1. To what extent does effective communication have an impact in the management of an organization and its development?
2. To what extent does the method of communication affect message being transmitted?
3. To what extent does a barrier affect the need to effective communication?

1.5  SIGNIFICANCE OF THE STUDY

It spells out the important of the study to the:

1. Power Holdings Company of Nigeria (PHCN)
2. The Researcher
3. The public.

The organization used as a case study in this research work will find the recommendation made by the researcher useful if the recommendation suggested are properly applied and adhered to it will lead to an improved and effective communication system in the organization.  The study is primarily important for the award of Higher National Diploma in Business Administration and Management. Nevertheless, the study exposes and gives detailed insight to the researcher for in depth knowledge in the area of study.

Finally, the study will add to the existing body of knowledge in the area of effective communication in the management of organization.  It will also serve as a reference point for students in Business Administration and Managements and other disciplines who wish to carry out further research that are related to this.

1.6  SCOPE OF THE STUDY

The scope of the study, which is the area where the study focuses on the impact of effective communication in the management of an organization and its development using Power Holding Company of Nigeria and as a case study.

1.7  LIMITATION OF THE STUDY

The limitation of the study refers to the constraints against the research work, which such constraints involves:

• Time: Being that the researcher carried out the research work within a short period of time alongside with other academic work e.g. lecturers, assignments and tests etc.
• Poor Response from the Respondents: The management and workers of Power Holding Company of Nigeria are not quick in giving out information required for this research.  They do not drive qualitative responses, which poses as constraints to the research.

1.8  DEFINITION OF TERMS

• Management: The people who controls a business or similar organization
• Organization: An organized group of people.  It is a social and economic entity where people perform different duties to achieve a stated goal or objectives.
• Communication: Is he exchange of belief, ideas, and feelings between two people.
• Transmission: The action of changing something i.e. to produce or point to another.
• Channel: Passage for message.
• Message: This is the thought, idea, conception within the sender, which he/she wants to disclose to the receiver.
• Information: Processed data, told, heard or disclosed about something/issue.
• System: A group of things or parts working together as a whole.
• Breakdown: The collapse of something or a failure.

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Full Project – The effect of communication in the management and development of business organization in Nigeria