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EFFECT OF CROSS POSTING ON MANAGERIAL PERFORMANCE: SURVEY OF SOME FIRMS IN PORT HARCOURT.
This study aims at finding out the impact of cross posting on managerial performance surveying some firms in Port Harcourt. Data were collected form 75 respondents made up of 46 indigenous managers that have come back from cross- posting and 29 expatriates on cross posting in Nigeria. The experience of the two sets of respondents on cross posting was compared using Z-test of proportion in the first hypotheses which reveals that greater proportion of indigenous manages enjoyed a more favourable experience on cross posting than the proportion of expatriates in Nigeria with favourable cross posting experience. The second hypothesis measuring the impact of cross posting experience on managerial performance was tested using Chi-Square, which reveals the experience to have a positive significant impact on the indices of performance. The last hypothesis weighed the impact of different benefit and burdens that the level of benefit posting using Chi-Square. It was discovered that the level of benefit had a strong positive significant impact on cross posting than those of burdens whose controlled measures are contained herein. It was recommended that those factors that breed unfavorable experience to foreigners on cross posting in Nigeria should be eradicated, while those factors that create favourable experience to greater proportion of our indigenous managers during cross posting should be adopted. Ministry of internal affairs will utilize this to attract and maintain investors, thus; creating good international relationship. Nigeria organization should embark more on cross posting its management than flooding the organization and nation with expatriate thus eliminate high cost of maintenance and unemployment of local personnel problems in cross posting.
TABLE OF CONTENTS
Cover page ii
Title Page iii
Table of Contents viii
List of Tables x
CHAPTER ONE: INTRODUCTION
1.1 Overview 1
1.2 Statement of the problem 4
1.3 Purpose of the study 5
1.4 Research questions 5
1.5 Statement of the study 6
1.6 Significance of the study 7
1.7 Limitation of study 8
1.8 Definition of terms
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction 10
2.2 management performance 11
2.2.1 critical elements of management functions 12
2.2.2 managerial effectiveness 15
2.3 need for improve management performance in Nigeria 18
2.3.1 poor management: reasons for incessant closure Nigeria firms
2.3.2 factors affecting management performance in Nigeria 23
2.4 cross posting 23
2.41 reasons for cross posting 28
2.4.2 problems of cross posting 33
2.4.3 technology transfer importation in cross posting 44
2.4.4 technology transfer and management performances 48
2.4.5 performance of management with cross posting experience 55
2.5 effectiveness of cross posting as a strategy improved management performance 56
CHAPTER THREE: METHODOLOGY
3.1 Introduction 59
3.2 Research design 59
3.3 Sampling procedure 59
3.4 Data collection method 61
3.4.1 Personal interview 62
3.4.2 Questionnaire design 62
CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
4.1 Introduction 66
4.2 analysis of questionnaire administration and retrieved 67
4.3 analysis of related research questions 68
4.4 hypotheses testing 71
CHAPTER FIVE; DISCUSSION, CONCLUSION AND RECOMMENDATION
5.1 Introduction 81
5.2 Discussion 81
5.3 Conclusion 84
5.4 Recommendation 86
LIST OF TABLES
3.1 selected firms for the study
4.1 Analysis of questionnaire administered and retrieved
4.2 analysis of the relationship between managerial performance and incessant closure of firms in Nigeria
4.3 analysis of problems face by expatriates on cross posting.
4.4 analysis of problems face by Nigerian managers on cross posting
4.5 response Nigerians who are back from cross posting and that of performance Nigeria.
4.6 response of the impact of cross posting experience on the indices of performance
4.7 observed and expected frequency table representing impact of cross posting on indices of performance.
4.8 chi-square analysis of the effect of benefit and burdens of cross posting on managerial performance.
4.9 summary of chapter four
5.1 measures for control of problems of cross posting
1.1 CONTEXT OF THE PROBLEM
Cross posting is a process involving movement of persons, executives, personnel’s to countries other than their own (expatriates) either for training, completion of a particular assignment or to occupy a position in a formal organization for the filed in which he/she is believed to be highly skilled/experience and has been employed or transferred to the foreign country within a specified period and remuneration. (Business times February 10, 1997:23).
Performance on the other hand is a notable action or achievement. In every facet of life endeavours performance of either material man, machine, equipment, money, vehicles or any object that is used for such activity leads to the achievement of whatever purpose that bring it into existence. Nonperformance of such act or object over a considerable time leads to wiping out of such from existence.
This survey concentrates only on economic performance of management in Nigeria organizations. Surveying some firms in Rivers State of Nigeria. Managerial performance is measured through efficiency of the manager and the effectiveness of the organization in attaining the ends, which bring it into existence. Efficiency is the ability of the manager to make use of available resources in the process of achieving goals, while the organization avoids waste.
Managerial effectiveness involves “the measurement of a manager’s ability to reach the highest level of performance with the least expenditure of resources. (Mali, 1978:48). Performance is the multiplicative action of individual attributes work effort and organizational supports as can be seen in details in the literature. (Ifedi, 1996:22) identifies some causes of poor performance in Nigeria institutions and corporate bodies to include;
1. Poor/lack of planning
2. Poor leadership
3. Quality of manpower employed
4. Infrequent/lack of appraisal and evaluation
5. Lack of professional competent managers in their field to manage man, money and material.
6. Manner of implementation of federal character policy in the country towards technological transfer/importation, rites, duties, etc.
7. Poor organizational structure like the inadequate/poor machinery for communication and consultation at all levels.
8. Environmental trends like economic, social, political factors, government regulations and other technological changes etc.
Meanwhile, cross posting is very common in multinationals (enterprises based in one country and operates in one or more other countries) and where foreign post in which they occupy formal position of their highly experienced field either in the parent company of the firm or in its other branches other than the manages home country within a specified period, remuneration and compensation. These movements could also be for training of these personnel in his country. Reasons for cross posting include:
a. Assigning executive for highly experience post abroad
b. Training of personnel/individual abroad
c. Transfer/importation of technology
d. Gaining of employment into a foreign firm abroad
e. Improving job performance through job rotation (as seen in multinational)
f. Completion of a particular project abroad
g. Improve job quality through work role transition
h. To bridge communication/cultural gap as in multinational.
i. Transfer of rights, data etc
j. Research and development
However, whichever way we view it, the result above impacts positively to management of personnel and managers. Considering the factors identified as the causes of poor performance in Nigeria firms, poor managerial functions rank most, cross posting therefore, impacts significantly to managerial performance. It is widely accepted that managerial performance is a tool for continual existence and corporate success, the effectiveness or high level of managerial performance can be harnessed through cross posting strategically arranged for the purpose.
Notwithstanding most developing nations like Nigeria would rather frown at cross posting involving movement of expatriates into her country. Business Times Newspaper March 17 (1997) states:
“The Federal Government directive to oil firms no to flood the industrial with expatriates to the detriment of local personnel has been extended to the downstream sector”.
This show the problem of cross posting as presence of expatriate in country are detrimental to the indigenous firms considering the complete disadvantages, unemployment of local personnel adverse effect to the national income, high cost of maintaining these expatriate managers etc. Again (Philip et al, 1987:41) viewed those problems of cross posting as he states:
“Managers assigned to foreign post for extended periods are likely to encounter special problems of working in a foreign environment, living in different culture and maintaining satisfactory relation with the parent company.
Most managers on foreign assignments in addition to the above problems do experience communication problems as well. These problems seem to reduce our indigenous managerial performances.
In conclusion, these problems can be silent or completely eradicated by proper application of cross posting as the huge gain to be reaped from the exercise as a very effective strategy for high managerial performance will be unearth by findings.
1.2 STATEMENT OF THE PROBLEM
Most Nigeria firms have liquidated. The few survivors are either in the verge of collapse or just managing to exist. These problems emanate from poor management of these firms. One begins to wonder why considering the significant increase in recent years on the attention given to the management performances. The shock is tense on realization that most of these firms are multinationals. Does it really mean that the practice of cross posting in these firms is inconsistent, or irrational?
Does it lack plan or that cross posting does not pronounce any significant impact on managerial performances? While a lot of strides have focused attention on managerial performances, very few have focused attention on the effect of cross posting as strategy for improving managerial performance.
The negligence is due to cross cultural problems, cost of maintaining these managers abroad, controls and technological transfer and difficulty in technological importation and other problems experienced by some nations like poor income structure, unemployment etc. these problems are what the study seeks to handle so as to create great improvement in the performance of management through effective cross posting.
1.3 PURPOSE OF THE STUDY
1. To determine the effectiveness and efficiency of cross posting as a strategy for improving managerial performances in Nigeria.
2. To determine the problems associated with cross posting and to proffer solutions to the problems associated with firms cross posting so as to create good international relationship.
3. To determine and proffer solutions on problems faced by expatriates on cross posting in Nigeria, so as to create favourable condition for foreign investment.
4. To create enlightenment on the impact of technology imported. This will boost the performance of managers in developing countries.
5. To determine and proffer solutions to unfavourable experience of Nigeria manager during cross posting for maximization of benefit derived from this foreign assignment instead of flooding nations with expatriates.
1.4 RESEARCH QUESTIONS
1. Do Nigeria firms fold-up because of poor managerial performance?
2. Can cross posting enhance effectiveness in management practice as seen in Nigeria firms?
3. What is the effect of technological transfer resulting from cross posting on managerial performance?
4. Is there any difference in performance of managers who are back from cross posting and those without cross posting experience?
5. Has cross posting actually improved performance of expatriates who are presently on foreign assignment in Nigeria?
6. What are the problems associated with cross posting
7. Can the numerous problems associated with cross posting actually be controlled for economic viability of the process?
8. Has cross posting a positive significant impact on the performance of Nigeria managers with cross posting experience?
9. Is there a relationship between cross posting and managerial performance?
1.5 STATEMENT OF HYPOTHESES
H01: There is no significant difference between the proportion of Nigeria managerial with a favourable cross posting experience and the proportion of expatriates in Nigeria whose cross posting experience are favourable.
H02: Cross posting experience does not have a positive significant impact on managerial performance.
H03: The level of benefit derived from cross posting does not outweigh the level of burden associated with cross posting.
1.6 SIGNIFICANCE OF THE STUDY
The study will be useful to Nigeria managers to realize the effectiveness of cross posting as a practical strategy for improving management performance. Policy makers in government will utilize this study since the effective strategy for management performance will equally be effective strategy for national development.
The findings of this study will help multinationals and non-multinationals choose the best method of applying cross posting process to eliminate the problems inherent therein.
More so, ministry of internal affairs will utilized this study to combat problems encountered by expatriates on cross posting in Nigeria to create more favourable condition for better international relations.
Foreign countries utilized this study to combat problems face by Nigeria managers in their countries so as to create favourable conditions for other nations like Nigeria to invest in their countries. Again private sectors will utilize the findings on the constraints of technological transfer/ importation to serve as a means of reducing or eliminating the constraints.
Lastly this research will add to the stock of existing knowledge in the field of expatriate managements as an avenue to open up further studies on the related topic.
1.7 LIMITATION OF THE STUDY
Mobility, time and financial constraints led to the survey of only some firms in Rivers State, thus limiting the scope of this study with the assumption that findings here obtainable in other states of Nigeria.
Other limitations are sacristy of materials (as this topic is relatively new) as well as respondents, reservations in giving most of the answers as required for fear of revealing company’s official secret. Also, many managers are always short of time and therefore do not provide adequate time for interview even after several calls to get them fix the appointment for the interview.
Again, language and social culture created barriers in the part of the expatriates interviewed as an embarrassment from an Italian manager of Plantgeria Nig. Ltd interviewed emanates from social culture and this created limitation for this study.
Again, most of the expatriates interviewed gave insecurity as most of their reasons to hoard information, notwithstanding that most of them already have an existing business relationship with eh interviewer before this study.
1.8 DEFINITION OF TERMS
1. Management: Is the process of planning organizing, leading and controlling the work of organizational members and of using available organizational resources to reach stated organization.
2. Performance: This is a notable achievement, which is measured through efficiency and effectiveness of the organization in attaining the ends, which bring in into existence.
3. Efficiency: This is the ability of manager to make use of available resources in the process of achieving goals.
4. Effectiveness: This is the achievement of desired objectives. it is ratio of output produced by the organization to the societal output desired from the organization.
5. Technology: This is the development and application of knowledge and experience in the production and use of goods and associated services.
6. Technological Transfer/Importation: This is the process by which sciences and technology developed by one body is taken up and used by another body. The two actors between whom the transfer taken place could be from the same or different countries. Technology importation is use here to describe the body which takes up and the use the technology which the body that developed it has transferred to him (the second actor) example Nigeria imports the technology developed by Japan which transfers such technology to Nigeria.
7. Constraints of Technological Transfer: This means things that hinder transfer of technology, i.e. obstacles or interference on the way of technology transfer.
8. Cross Posting: This is a process involving movement of persons, executives personnel, etc to countries other than their own either for training or to complete a particular project or assume a position of his highly experienced field in a formal organization for a specified time and pay.
10. Indigenous and Expatriate Managers: Indigenous manager here means “A manager who is a Nigeria citizen while Expatriate manager is a manager in Nigeria who is not a Nigeria citizen. Inegbenebar (1984:62).
11. Multinational: This is corporation based in one country with subsidiaries in other countries each of which the parent company controls either by the requisite share ownership or by comparable arrangements.