TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 Background to the study
1.2 Statement of the problem
1.3 Aim and objectives of the
study
1.4 Significance of the study
1.5 Research questions
1.6 Scope of the study
1.7 Limitation of the study
1.8 Study plan
1.9 Definitions of key terms
CHAPTER TWO
2.1 Definition of Leadership and
Leadership Style
2.2 Leadership Theories
2.2.1 Great Man/Traits Approach to
Leadership
2.2.2 Behavioural Approach to
Leadership
2.2.3 situational Approach to
Leadership
2.2.4 Fielders Contingency Approach to
Leadership
2.3 Leadership Styles and
Behaviour
2.3.1 Leadership Styles Based on the
use of Authority
2.3.2 Likert’s Four System
2.3.3 Managerial Grid
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Historical Background of PHCN
PLC
3.2 Research Hypothesis
3.3 Methods of Data Collection
3.4 Population and Sample Size
3.5 Sampling Techniques
3.6 Methods of Data Analysis
CHAPTER FOUR: DATA
PRESENTATION ANALYSIS
4.1 Demographic Characteristics
Analysis
4.2 Leadership Styles Analysis
CHAPTER FIVE
5.1 Summary
5.2 Conclusion
5.3 Recommendation
References
Questionnaire
CHAPTER
ONE
INTRODUCTION
1.1 Background to the Study
The
performance of any enterprise or the life spans of an organization, whether
large or small is directly proportional to the finality of its leadership. In
the light of fact, an organization or community will only succeed, towards the
achievement of a group goal, only if the reign of a leader exists. Thus; a
leader is someone who has the ability to inspire, motivate and use power
effectively and in a responsible manner towards the achievement of a goal
considering this, leadership can simply be define as the act or process of
influencing people, so that they will strive willingly and enthusiastically
towards the achievement of a group goals.
Yusuf (2001) argues that
the ability of any organization to achieve its desire goals and objectives
depends on the nature of its leadership. However empirical evidence has tends
to show that leadership plays very significant roles in effective and
efficiency of any organization. Ogunsan 91985) and Ochia (1987) admitted in
their study that leadership skill were very effective in enhancing performance.
Hence, leadership has a significant managerial factors and ingredients in the
success of any organization.
Ingredient of Leadership
A. The
ability to use power effectively and in a responsible manner.
B. The
ability to inspire
C. The
ability to comprehend that human being has different motivational forces at
different time and in different situation.
D. The
ability to act in a manner that will develop a climate conducive to responding
to and arousing motivation.
Thus, the move a leader
understand what motivate their subordinate and how these motivation operate the
better the actualization of a group goal, David Mann (1985) sees styles of
leadership as some of the basic requirement for achieving good management,
administration and good leadership. Leadership styles may be defined as a
designing pattern of behaviour used in integrating both the organization and
personal interest in achieving the organization aim and objectives.
Furthermore, these styles of leadership are many but three are commonly in used
in most establishment; free vein leadership style, autocratic leadership style
and democratic leadership style. It is generally believed that good leadership
style will increase organizational performance, lower unit cost, high morale
sustain and improve management- labour relationship (Nwachukwu 1988).
1.2 Statement to the Study
Over
the year, scholar have extensively research on the effective leadership styles
in an organization. Prominent among then are Stodgill, Fieldler Likert, Blade
and Monton, Tennenbaum and so forth.
Leadership
have been seen involving a variety of styles, ranging from one that is highly
boos-centered to that is highly subordinate with suggestion that no one style
is always right and another is not always wrong in the context of business and
services industries to achieve goals. More so, for manager or leader at
appropriate leadership styles in an establishment, some situational factors
need to be considered. These include position power, task structure and leader
member relations.
1.3 Aim
and Objectives of the Study\
The aim of this research
is to examine critically the impact of leadership style on organizational
performance.
The objectives of this
study are as follows:
1. To explain what is meant by
leadership style
2. To describe various types
of leadership style
3. To
examine how leadership styles can improve organizational performance and create
good leader member relations.
4. To make
recommendations as to how leadership style can exercise positive impact on
organizational performance.
1.4 Significance of the Study
The importance of the
research study is:
1. It helps
to identify leadership style to be put forth by the manager in the
organization, to ensure high moral and high performance among the staff of PHCN
Plc Ilorin.
2. The
study identifies the advantages and disadvantages associated with different
leadership styles under particular condition.
3. Finally,
it point out how motivational forces affects the performance of staff.
1.5 Research Questions
It is unlikely that a
leadership style that worked yesterday would be successful in today’s
administration. Considering this 3 major questions’ what, where & how are
being asked.
1.
What is the current situation of the
organization? What leadership style is in use? What changes are expected by
adopting a new leadership style?
2.
Where are we taking the organization?
How much growth do we need? What is the targeted goal? What are the social
objectives of the organization?
3.
How can we get there from here? This is
the important part of question, as it proffer the leadership style to be
adopted which in turn give solution to the above other question asked.
4.
Task structure – how does a task
structure affect the subordinate performance?
5.
What
are the impact of highly based – centered and their subordinate?
6.
The effect of the degree of freedom
granted to subordinate by their leader.
The
following research questions are set out purpose of this study.
1.6 Scope of the Study
This
research examines the impact of leadership style on organizational performance
of power Holding Company of Nigeria (PHCN) formally NEPA, Ilorin between the
period of 1999 to 2007 with strict emphasis on administration, marking and
distribution section of the organization, as they are the major focus on the
achievement of the organization goals.
1.7
Limitation of the Study
There
are certain limitations encountered in the course of carrying out this research
they include.
1. Lukewarm
attitude of the officials of PHCN in responding to the questionnaire.
2. Fears of
espionage as all vital information are classified as “TOP SECRET” because of
government protocol.
3. Improper
filling of questionnaire by the respondents
4. Long
delays in getting back the filled questionnaire from the respondent as a result
of busy schedule at work.
It
should be noted, however that the limitations outlined above does not in anyway
in validate this research as sufficient
data was obtained through insider friend and good human relation, therefore the
research is still valid.
1.7 Study Plan
This
research project is divided into five chapters. Chapter one is the
introduction, which consists of the background, research problems, aim and
objectives, significance, research questions, scope, limitations, study plan
and definition of terms.
Chapter
two is the literature review, which comprised of definitions of leadership and
leadership styles, leadership theories and leadership styles and behaviours.
1.8 Key Terms
1. Autocratic:
A leader who has complete power and expecting complete obedience.
2. Amalgamation: To combine or join together
3. Benevolent:
Doing good or being kindliness
4. Boss: A
manager or leader in Chief
5. Consultative:
A state of meeting with someone to exchange idea and opinions (Discussion)
6. Decentralized: The process of moving power/decision making
away from a single large group to other small local group.
7. Democratic:
Ruling or leading people through decision by
their
group or people.
8. Dogmatic:
Act of being stubborn and forcing opinion on others.
9. Enterprise:
A business
10. Exploitative:
To make use of something selfishly.
11. Goal:
Anything aimed a t or wished for
12. Impoverished:
To make something poor or lesion in quality
13. Leader:
One who shows way on direct or guide or persuade
14. Leadership:
Ability to lead
15. Manager:
Someone in charge of a business
16. Motivation:
To cause someone to act in a certain way
17. Non
Coercive: To cause someone to act in a certain way
18. Organization:
A group of people working together for a purpose.
19. Participative:
To have a share or take part.
20. Style:
Manner of acting
21. Subordinate:
Someone lowers in rank
CHAPTER
TWO
LITERATURE
REVIEW
2.1 Definition
of Leadership and Leadership Style
The
concept of leadership being an important aspect of management in work group has
over the years attracted the interest of many scholars and research workers to
write a lot on it. They are many but few will be considered.
Burton
and Thakur (1995) define leadership “as both a process and a property”. As a
process, leadership is the use of non-coercive influence to shape or direct the
activities of a group towards group goals. As a property, leadership is the set
of characteristics attributed to those individuals who are perceived to use
that influence successfully.
Cle
(1997) define leadership as a dynamic process of work in a group, where by one
individual over a particular period of time and in a particular organization
context, influences the other group members to commit themselves freely to the
achievement of group tasks or goals.
This
definition encompasses important feature of leadership
1. Leadership
is a dynamic influence by the changing requirement of the task, the group
itself and individual members. The implication of this is that there is no one
“best way” of leading and leader needs to be able to exercise a range of
behaviour to maintain their role effectively.
2. Leadership
is no necessarily conferred to one person but may be shared between members.
Some leaders are more figureheads; Mintzberg (1973) specifically sees this
function a bona-fide management role. The significant is that whoever exercise
influence is the leader.
3. The
leadership principal role is to influence the group toward the achievement of
group goals in an official group such as product, on team; goals are set mainly
if not exclusively by senior management. The leadership task is to gain the
group’s commitment to these goals.
4. Leadership
is exercise in and influence by the particular ser of circumstance, which form
the organization context. This context. Fieldler (1967) points out some
important implication for the degree of power possessed by the leader. Hence,
the degree of freedom grant to the subordinates by the leader (Tannenbaun and
Schmidt 1973).
Weihrich
and Koontz (1984) define leadership as influence that is the art or process or
influencing people so that they will strive willingly and enthusiastically
towards the achievement of the group goals. Ideally people should be encouraged
to develop not only willingness to work but also willingness to work zeal and
confidence. Zeal reflects an earnestness and intensity in the execution of
work, confidence reflects experience and technical ability.
Nwachukwu
(1988) sees leadership as a social influencing process for the attainment of
goal. The function of leadership pervades all organization. A leader then is a
person with power over others, who exercise the power for the purpose of
influencing their behaviour.
Apple
by (1994) sees leadership as the ability of management to induce subordinates
to work towards group goals with confidence and Keenness. Leadership implies
that the leader accepts responsibility for the achievement of the group
objectives and it is therefore for trust and cooperation from both side to be
in evidence all the time.
Akanni
(1987) define leadership as the ability to direct employees in such a way that
the goals are achieved. Thus, building morale and motivating employees to work
effectively are essential ingredients of sound leadership.
Davis
(1942) assessed leadership as the principal dynamic force that stimulates
motivates and coordinates the organization in the accomplishment of its
objectives.
For
Bellow (1959) leadership meant the process of arranging a situation so that
various member of a group can achieve common goals with maximum economy and
minimum of time and work.
A
good leader is one who is capable of persuading other to move enthusiastically
towards the achievement of group goals. A leader is the most influential person
in an organization because he provides directions, guide group activities and
ensure that group objective are attained (1985). Burton and Thakur (19) see
leader as those who have ability to influence the behaviour of others without
the use of force. Leaders act to help a group attain objectives through the
maximum application of its capabilities. They do not stand behind a group to
push to accomplish organization goals.
Despite
all that has been written about leader and leadership, there seem to be no
consensus concerning the primary role of function of leader. House (1971)
working on the path goal, approach which suggest that the leader should clarify
oaths to goal attainment, identified four kinds of leadership behaviour-
directive, supportive, participative, achievement oriented, brief description
of the behaviour thus:
Directive
leader behaviour include the following
1. Informing subordinates as
what is expected
2. Offering directives on what
to do and how
3. Establishing schedule for
the work to be done
4. Maintaining specific
standard of performance
5. Clarifying the leader’s
role in the group
Supportive leader
behaviour includes the following:
i. Making the work and he
work environment more pleasant
ii. Treating group member as
equals
iii. Being friendly and
appreciable
iv. Demonstrating
concern for the status, well-being and needs of subordinates.
Participate
leader behaviour include:
i. Getting
subordinate involved in decision making
ii. Consulting
with subordinates
iii. Asking
subordinates for suggestion
iv. Considering
those suggestions seriously before making a decision.
Achievement
oriented leader behaviour include.
i. Establishing
challenging goals
ii. Expecting
subordinates to perform at this high level
iii. Demonstrating
confidence that subordinates will perform at high level.
Path-goal suggests that
the same person can practice different types of behaviours, at different time
in very situation.
Hence, the approach
suggests that there are two basic situational factors influencing how a leader
relates to subordinate satisfaction. The personal characteristic of the
subordinates and the characteristic of the environment.
The most two important
subordinate characteristics are (a) Locus of control (b) Perceived ability.
Key environmental
factors are (a) the task structures (b) the authority system and (c) the work
group. The leader behaviour will motivate subordinates if it assists them in
coping with environmental uncertainly arising from these three factors.
2.2 Leadership
Theories
Leadership
being an important aspect of managing human group activities has called on the
attention of many scholars to build-up on it. And many have particularly
contributed to the leadership concept through theories and findings. Major
theories will be dealt on this research work especially one that outline some
basic kind of leadership styles.
2.2.1 Great Man/Traits Approach to Leadership
This approach to
leadership focused on the traits and characteristic of leadership. It was the
early approach that believes that leaders are born and not made.
The theory attempts to
identify the traits that successful leaders posses so that people could be
trained to develop those traits. The approach sought a unique set at traits tat
distinguished leaders from their peers.
A number of studies were
conducted for the search of these characteristics traits. Gary Yukc (1981)
summarized the research by identifying the following traits and skills that are
found to be characteristic of successful leader. Trait characteristics of
successful leaders include; adaptable to situation; alert to the social
environment, ambition and achievement oriented; assertive, cooperative,
dependable dominant (the desire to influence heirs) energetic (high level
activity) persistent, self confidence, tolerant of stress, willingness to
assume responsibility. Skill characteristics of successful leader include,
clever (intelligent) conceptually skilled (creative), diplomatic and tactful,
fluent in speaking, knowledge about the group task, an organized
(administratively ability) persuasive and socially skilled.
Also of importance was
the study conducted by Kother (1982) in which he identified fair categories of
personality characteristic of successful leader as nee/motive; temporary
(emotionally stable and optimistic) cognitive orientation, Kother (1982) then
added knowledge about their business and organizations and relationship,
cooperative relationship with many people in their organization and industry.
The conclusion drawn by
scholars after a review of all the traits is that there is no evidence that
universal traits exist. Thus, no particular set of traits could be
scientifically established and no traits seem t guarantee leadership success.
2.2.2 Behavioural Approach to
Leadership
This
approach is aimed at determining those that were associated with successful
leadership. It is believe that a leader’s behaviour and the style in which he
relates to other people affect his effectives. Research by Misomi etal (1985)
shows that successful leadership was associated with three fundamental
leadership behaviour. (i) task performance (ii) group maintenance (iii)
employee participative in decision making.
i. Task
performance: In this behaviour, if a leadership is to be successful, the leader
must get the job done. The most common task performance factors were found to
be, fast work speed good quality/high accuracy, high quality and observation of
the rules.
ii. Group
maintenance behaviour: maintenance oriented behaviour are those taken by the
leader to ensure social stability of the groups to develop and maintain
harmonious work relationship and to maximize the satisfaction of group members.
The most common group maintenance behaviour observed were directed towards
group/member, comfort, stress reduction and appreciation.
iii. Participation
in decision making: A successful leaders knows that employees want to take part
in making decisions that will have an impact on their work environment.
However, successful leader also known the amount of participation that is
possible or desirable and it varies with the situation. Thus, the decision
participation dimension of leadership
behaviour can range from autocratic to democratic.
2.2.3 Situational Approach to Leadership
Empirical
research finding indicates that the situation in which a leader operates shapes
his leadership. The performance of leader is to be associated with the
situation in which they find themselves. The situation theory to leadership
distances the approach t o understanding of leadership.
The situational approach
beliefs that leaders are the product of given situations. A large number of the
studies made confirmed that leadership is strongly affected by the situation
from which leader emerge and operates.
The emergency of Hitler
in Germany in 1930’s the earlier rise of Mussolini in the period after world
war II, Emeka Ojukwu, Yakubu Gowon name but a few seem to be tailored to
situation. This approach to leadership recognizes that there exist an
interaction between the group and the leader. It supports the following theory
that people tends to follow those whom they perceived 9accurately and
inaccurately) are offering them a means of accomplishing their other personal
desire. The leader then, is the person who recognizes this desire and does
thing or undertakes these programmes design to meet them.
Heresy et al (as Cited
in Lisa M. Wolter 201) noted that situational leadership is based on a
relationship among of guidance and direction (task behaviour) a leader gives.
The amount of social emotional support (relationship behaviour) a leader
provide and the readiness level that follower exhibit in performing a specific
task, function or objectives. The situational leadership model provides an
understanding of the relationship and the level of readiness of followers.
Situational approach obviously has much practice and is important for
practicing. Thus, manager should consider the situation with which they will
design an environment for performance.
2.2.4 Fieldler’s Contingency Approach to Leadership
Fieldler
proposed a contingency theory of leadership based on the belief that leader
effectiveness depends on situation. Leader may be more effective in some
situations than in others. The theory holds that to become leaders is not only
because of the attributes of their personalities but also because of various
situational factors and the interactions between leaders and group members.
On his research findings
Fiedler identified three critical dimension of the leadership situation that
could help to determine how leadership style will be most effective and achievable.
Three situation briefly
describe here:
a. Power
situation: This is the amount of power that is inherent in the leader’s role
itself. Position power is high when leader has the power to assign work and
reward and employee.
In
the case of manager, this is the power arising from organizational authority.
As Fiedler points out a leader with clear and considerable position can obtain
good follower-ship earlier than one without such power.
b. Task
structure: According to fiedler, this has to do with extent to which task can
be clearly out and people held responsible for them. Task structure has been
suggested composed of four Component as follows:
1. Goal
multiplicity – the number of different ways the job can be performed.
2. Decision
verifiability – how well the job provide performance feed back.
3. Decision
specificity – the degree to which the job has an optimal solution or outcome.
4. Goal
clarity – how clearly the requirement of the job is stated (Burton et al 1995)
a. Leader –
member relations: These are those personal relationships that exist between the
leader and subordinates. Since position power and task structure may be largely
under the control of enterprises. It has to do with the extent to which group
members like trust, respect, and confidence reposed in leader and are willing
to follow him.
23. LEADERSHIP
STYLES AND BEHAVIOR
This sub – section draws
our attention to the classification of leadership style and the attribute of
each. Leadership style in accordance to Heresy et al as cited in walter (2001
sees it as a behavior exhibited by the leaders as perceived by the followers.
Daviman (1995) sees leadership style as some of the basic requirement for
achieving good management, administration and good leadership.
There
are many leadership styles but few will discussed in this research work.
(a) Leadership style based on the use of authority
(b) Likert’s four system
(c) Managerial grid
(d) The situational life cycle model
2.3.1 Leadership Styles based on
the use of Authority
This leadership style is
sub-divided into three (3) basic styles viz: autocratic, democratic and free
vein/laissz-faire leadership style
A. Autocratic
Leadership Style
In
this style, the leader commands and expects complaisance. He is dogmatic and
very conscious of his/her position. He however leads by the ability to give
reward and punishment. Its advantages thus;
1. It
is useful when the subordinates are new on the job and have no experience
It
is important in emergency situation when decision must be taken immediately.
It
is sometimes useful to increase efficiency when chain of command and division
of work is clear.
Disadvantages
It
creates problems both within the employee and production in the run due to
their resentment and fails to develop the worker commitment to the objective of
the organization’s
It
brings one-way communication, without feedback, leading to misunderstanding and
communication breakdown.
B. Democratic
Leadership style
This
type of leadership style allows the subordinate to participate in
decision-making as the leader ultimately consults with subordinate on propose
action and decisions.
This
type of leader range from the person who does not take action without
subordinates concurrence to the one who makes decision by consulting with
subordinates without considering their concurrence.
Advantages
It
induces confidence
It
assures rising performance and satisfaction
It
promotes co-operation and loyalty among workers
It
results in high employment moral
Disadvantages
It
is time consuming in decision-making as different decision is made, which may
result to frustration to impatient management.
In
this style, some group member’s staff may be alienated if their ideas are not
accepted for action
B. Free-Rein/Laissz
Leadership style
The
fee-rein leader uses his or her power very little, if at all giving
subordinates to set operations. Such leaders depends largely on subordinate to
set their own goals and means of achieving them and they see their role as one
aiding the operations of followers by furnishing them with information and
acting primarily as a contact with the group’s external environment.
Advantages
It
is very useful where people are motivated and achievement oriented
It
is highly creative with a fee and informal environment.
It
creates an environment of freedom, individually as well as team spirit.
Disadvantages
Some
members may put their own interest above, which may result in, disorganized
activities, which do lead to inefficiency and chaos.
2.3.2 Liker’s Four System
Likert
sees an effective management as strong oriented to subordinate relying on
communication to keep all parties working as a unit. All member of the group,
including the manager or leader adopt a supportive attitude in which they share
in one another’s common needs, values, aspirations, goals and expectations.
Thus
likert put forward what is today known as system 1-4 of management.
System
1 Management is described as “EXPLOITATIVE AUTHORITIES” manager.
Here
managers are highly autocratic, have little trust in subordinates, motivate
people through fear and punishment and only occasional rewards, engage in
downward communication and limit decision-making to the top.
System 2 Management
(“”Benevolent-authoritative”) its manager have
patronizing confidence and trust in subordinates motivates with rewards
and some fear and punishment, permit some upward communication, solicit some
ideas and opinions from subordinates and allow some delegation of decision
making but with close policy control.
System 3 Management
(consultative managers): In this system there is a substantial but not complete
confidence and trust in subordinates, usually to make use of subordinate ideas
and opinions, use rewards for motivation with occasional punishment and some
participation engage in communication flow both down and up, make broad policy
and general decision at the top, wallowing specific decision to be made at
lower levels and act consultatively in other ways.
System 4 Management
(participative group): In this, management have complete trust and confidence
in subordinates in all matters, they always get ideas and opinion from
subordinates and constructively use them. They also give economic rewards on
the basis of group participation and involvement in such area as setting goals
and appraising progress towards goals. They engage much in communication
downwards and up with peers; encourage decision-making throughout the
organization and operate among themselves and with subordinates as a group.
Management
scholar argued manager who applied the system 4 approaches to their operation
had greatest success as a leader.
It
was inferred from the point of view of staff workers that (i) democratic
leadership style takes priority in PHCN PLC (ii) in relation to situation, the
four system of management are employ by PHCN manager.
2.3.3 MANAGERIAL GRID
In
earnest to the definition of leadership style, Robert Black and Dane mouton
developed a well known approach called the “managerial grid”.
The
managerial grid has two dimensions; concern for people and concern for
production.
Concern
for people: includes such elements as degree of personal commitment towards
goals achievement, maintenance of the-self esteem of workers, placement of
responsibility on the basis of trust rather than obedience, provision of good
working conditions and maintenance of satisfying interpersonal relations.
Concern
for production: Include the attitude of a supervision towards a wide variety of
things such as the quality of policy decisions, procedures and process,
creativeness of research. quality of staff services, work efficiency and volume
of output.
The
managerial grid style are divided into five:
(a) “1.1
style” (impoverished management); Managers concern themselves very little with
other people or production and have minimum involvement in their jobs, to all
interest and purposes, they have abandoned their jobs and only mark time or
acts as messengers, communicating information from supervisors to subordinates.
(b) “9.9
Style” (Team manager): Manages display in their actions the highest possible
dedication both to people and to ncduction. They are real “team manager” who
are able to mesh the production needs of:he e: with the needs of individuals.
(c) “1.9
Style” (country club m2ra Manager, have little or no concern for production but
are concernef only for people. They promote an environment in which everyone is
relaxed, friendly and happy and no one is concerned about putting forth
coordinated effort to acconn1ish enterprise goals.
(d) “9.1
Style” (autocratic task management:
Managers are concern only with developing an efficient operation, which
have little or no concern for people and
who are quite autocratic in their styles
of leadership.
(e) “5.5
Style” (Middle of the road management): Manager has medium concern for
production and for people. They obtain adequate, but not outstanding, morale
and production. They do not set goals too high, and they are likely to have a
rather benevolently autocratic attitude towards people.
Among
the true styles, the 9.9 styles (team manager) is seen to be the best style
since it encompasses both production people needs. PHCN PLC managers as well
uphold this style in their dealing with job and people.
The
current business unit structure shows the name of various positions that has
been changed. Formally general manager is now chief operation officer, District
Manager now Head of Department, undertaking manager is now services manager.
The
new business unit structure starts with the market oversight committee, headed
by MD/CE and made up of directors that will advice on issue arising from the
new business unit. Next to the market oversight committee (MOC) is the chief
operating officer that will report directly to the MD/CE: He will enter into
performance contract with management, which indicate specific targets to be delivered.
Under the C 00 (chief operating officer) is the planning performance manager
and internal auditor. Other company officers responsible directly to the chief
operating officer are the Head Technical Services, Head Customers Services,
Head Finance and Account; Head administrative Service and Business Manager. Under
business manager come account officer, customer services officer and
administrative office. Each of these officers has under him/her a number of
staff workers.
A
critical look of this structure pre-supposes a decentralized management
authority. In accordance to Cole 1996 a high decentralized organization is one
in which the authority commits people, money and material widely throughout
every level of the structure.
The
structure was adopted in order to make each of the managers of unbundled
distribution zones to have responsibilities than before. The major reasons for
unbundling distribution and marketing sectors of PHCN PLC are as follows:
- The
need to improve service to customer by efficient and timely delivery of
electricity.
-
The urgent need to
improve base and cash collection.
- The
need to commence dry-run process of the emerging new market ruler.
In
conclusion to achieve these, substantial finance and administrative, autonomy
must therefore be grated to the filed managements.
