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EFFECT OF CROSS POSTING ON MANAGERIAL PERFORMANCE:
SURVEY OF SOME FIRMS IN PORT HARCOURT.
ABSTRACT
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
Contents i
Cover page ii
Title Page iii
Declaration iv
Certification v
Abstract vi
Dedication vii
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
19
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
Summary 57
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
Summary 63
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
Bibliography
LIST OF TABLES
TABLE TITLE
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
CHAPTER ONE
INTRODUCTION
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.
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