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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
PERFORMANCE OF PHCN IN THE SOCIO-ECONOMIC DEVELOPMENT OF KADUNA SOUTH LOCAL GOVERNMENT OF KADUNA STATE
BY
MOHAMMED AISHA ABUBAKAR
U14PA3041
BEING A PROJECT WORK SUBMITTED TO THE DEPARTMENT OF PUBLIC ADMINISTRATION, AHMADU BELLO UNIVERSITY, ZARIA. IN PARTIAL
FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF BACHELOR OF SCIENCE (B.SC) DEGREE IN PUBLIC ADMINISTRATION
AUGUST, 2016
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
DECLARATION
I Mohammed Aisha Abubakar hereby declared that this project entitled:
“Performance of PHCN in the Socio-Economic Development of Kaduna
South Local Government of Kaduna State”. Written and undertaken by me, in
partial fulfilment of B.Sc Public Administration in Ahmadu Bello University, Zaria.
______________________________ ______________
Mohammed Aisha Abubakar Date
U14PA3041
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
CERTIFICATION
This project entitled: “Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State ” by MOHAMMED AISHA ABUBAKAR meets the regulations governing the award of B.Sc Degree in Public Administration in Ahmadu Bello University, Zaria and is approved for its contribution to knowledge and academic presentation.
_________________________ __________________
Dr. A.A. TIJJANI Date
Project Supervisor
_________________________ __________________
Mal. Abubakar M. Goga Date
Project Coordinator
_________________________ __________________
Dr. Hamza A. Yusuf Date
Head of Department
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
DEDICATION
This project is dedicated to Almighty Allah who has seen me through my
educational pursuit in life, and to my beloved parents, for being the sources of my
inspiration, may Allah prolong your life with good health and his guidance
(Ameen), and for the moral support towards my education.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
ACKNOWLEDGEMENT
All praise goes to Allah the Lord of the world whose mercy, favour,
blessings and guidance has helped me throughout my life.
A special thanks to my supervisor Dr. A.A Tijjani for his guidance that
helped to improve the quality of this research work. May Almighty Allah guide
and protect him.
My sincere appreciation goes to my lovely brothers and sisters, Engr.
Kabiru Sallau, Aliyu Umar Balarabe, Ahmadu Sallau, Faiza Sallau, Asma’u
Sallau, Abdullahi Sallau, Hamza Sallau, and my loving friend Hajiya Maryam
Moh’d Ketso. May Allah bless you all for your endless support (Ameen).
Furthermore, I would also like to acknowledge my parent Late. Alh. Sallau
Abubakar and Hajiya Maryam Moh’d may your souls continue to reest in Jannatul
Firdausi (Ameen).
My profound gratitude goes to my darling husband Alh. Salihu Abdullahi
Bature for his endless love and support may Allah bless you abundantly
(Ameen).
Lastly to my friends and well wishers, I pray Allah bless you all.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
ABSTRACT
This research work is geared towards the “Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State” as a tool for Rapid Socio-economic Development with a particular reference to Barnawa Business Unit. the objectives of this study include amongst others: to identify whether political interference in PHCN Barnawa Business Unit has lead to employment of unqualified personnel: To access operational problems been faced by PHCN Barnawa business unit in areas of distribution, generation, billing and bill payment; Determining measures, how resource allocation will compliment investment made by organization. Survey research method was used in the research design and data were collected using both primary and secondary sources. Simple percentage was used to get the sample of 50 from the total population from the organization that stood at 89 as at 29th May, 2015. Chi- square method was used to test the formulated hypothesis, the null hypothesis were rejected. Also relevant review of related literature was made and system theory was employed. Therefore, was recommended that autonomy should be given to PHCN as a whole so that political interference will be erased; Technical expert should be recruited such as engineer, technicians, computer genius, for this will enhance their productivity and performance in socio-economic development. Since most of their service involved field work rather than paper work.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
TABLE OF CONTENTS
Title Page- - - - - - - - - - - i
Declaration - - - - - - - - - - ii
Certification - - - - - - - - - - iii
Dedication - - - - - - - - - - - iv
Acknowledgement - - - - - - - - - v
Abstract- - - - - - - - - - - vi
CHAPTER ONE
GENERAL INTRODUCTION
1.0 Introduction- - - - - - - - - 1
1.1 Background of the Study- - - - - - - 1
1.2 Statement of Problem - - - - - - - 3
1.3 Research Questions - - - - - - - 5
1.4 Research Hypothesis - - - - - - - 7
1.5 Scope and Limitation of the Study - - - - - 7
1.6 Significance of the Study - - - - - - 8
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
1.7 Research Methodology - - - - - - - 9
1.8 Population of the Study - - - - - - - 10
1.9 Definition of Relevant Terms - - - - - - 12
CHAPTER TWO
LITERATURE REVIEW AND THEORETICAL FFRAMEWORK
2.1 Introduction - - - - - - - - - 13
2.2 Concept of Performance -- - - - - - - 14
2.3 Theoretical Framework; - - -- - - - 37
CHAPTER THREE
HISTORICAL BACKGROUND AND ORGANIZATIONAL STRUCTURE OF
PHCN
3.0 Introduction - - - - - - - - - 44
3.1 Historical Background of PHCN Barnawa Business Unit - - -
- - - - - - - - - - - 44
3.2 Organizational Structure of PHCN Barnawa Business Unit - - -
- - - - - - - - - - - 53
3.3 Source of Fund - - - - - - - - 59
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Introduction - - - - - - - - - 60
4.2 Data Presentation - - - - - - - - 61
4.3 Data Analysis - - - - - - - - - 66
4.4 Major Findings of the Study- - - - - - - 84
CHAPTER FIVE
5.0 SUMMARY, CONCLUSION AND RECOMMENDATION - - 85
5.1 Introduction - - - - - - - - - 85
5.2 Summary - - - - - - - - - 85
5.3 Conclusion - - - - - - - - - 86
5.4 Recommendation - - - - - - - - 87
Bibliography
Appendix
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Electricity is very important for both social and economic development; it is
an essential tool in the manufacturing industries by virtue of its versatility and
convenience in use. Electricity generated in the world, is used for industrial
purposes and undoubtedly has been a major factor that has contributed to the
now prosperity of most advanced countries.
The performance of electricity can be seen in the prosperous successful
economics of Asia country, such as China and South Korea that led to the
development of their infant industries through small and medium scale
enterprise. More also, South East Asia, such as Thailand and Singapore now
being followed by others such as Indonesia and Malaysia are among the world
leaders in agriculture and other agro-allied products.
The necessity and relevance of power supply to the development of all
sectors of human Endeavour in our present times makes it the starting point for
Nations to attain greatness.
Thus lack of constant supply of electricity is the major factors that have led
to closure of many industries that had in the past provided employment to
hundreds of thousands of Nigerians. Those in operation are finding it difficult to
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
cope due to the high cost of running generator for their production. It also led to
inflations as providers of services; do add extra cost to consumers.
Electricity performance had in the transformed the united state economy,
bringing a revolution in their transport sector, most especially the creation of a
dynamic manufacturing sector such as iron, ore, copper, oil and coal. Also the
trans-application, railways and trains, those that ran from the east coast to the
Midwest are now modernized into electric speed trains.
Thus, Anyebe (2008) noted that “development is used to refer to the total
transformation of a system, thus when used to describe a Nation it implies a
progression from a lower and often undesirable state to a high and preferred
one”. It involves growth in the institution and structural base of the economy
especially the energy utilization which is often used as a development index.
From the above, it is obvious the that effects of electricity usage reverberate
through the economy, serving as a source of energy for industrial and
commercial outfits as well as widespread domestic use, cannot be overwoked.
Thus, electricity generation serves as an outlet for the product of other industrial,
like coal, fuel, oil, natural gas and diesel.
The electric power supply in Nigeria is indeed a critical infrastructure which
requires urgent remedy. The problem of epileptic power supply in the country has
become a nightmare to Nigerians. The intention of the provision of this
infrastructure is suppose to make comfortable and increase the standard of
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
living, provide essential building blocks for the diversification of the economy and
set the economy on the part of development.
1.2 Statement of Problem
The period of 1950s and 1960s marked the determination of the government of
developing countries to ensure responsibilities for the performance of their
economy, thus, implementing key portion of their developmental plans through
state owned firms. They are powerful agents for socio-economic development
especially in the areas of provision of employment and social services (like
electricity). This explains in part why governments all over the world including
that of Nigeria, have shown diverse interests in the establishment of Power
Holding Company, ranging from formulating policies guiding their establishment
of outright ownership. A critical survey of the economy of Nigeria was undertaken
and was discovered that power holding of Nigeria are established to accelerate
national economic development under conditions of shortage of capital and
structural defects on private business organizations to provide for the prosperity
of every Nigerian so that the country is not held to ransom by a group of self-
centered, wanton and unscrupulous entrepreneurs.
The Nigerian experience with power holding company of Nigeria has been a
disappointing one, due to the performance below expectation as attested to by
criticisms and public statement leveled against them. In other words, the
performance of these enterprises according to Mbanefo is very revealing;”a
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
research into 150 companies and enterprises as at the end of 1983 showed that
the returns of government, N3.211 billion investments were only 1%. Other
criticism put forward against power holding company of Nigeria ranges from
ineffectiveness, unwarranted or incomplete monopolistic nature, inefficiency to
the enigmatic issue of corruption. This argues that the performance of power
holding company of Nigeria are not viable to accelerate national economic
development and hence do not justify the amount of funds expanded on them.
Mohammed (1998) is of the view that power holding company of Nigeria are also
criticized for being “unresponsive” to the changing requirement of growing and
dynamic economy because they lack tools to translate into reality the hope of
their successful commercial operation, in achieving the objectives of providing
adequate and efficient electricity supply, the PHCN barnawa business unit has
been confronted by a myriad of problems hindering the effective performance of
its functions. These problem ranges from lack of dedication on the part of the
management and junior workers to sabotage or misuse of electricity equipment,
corruption, obsolete equipment and unwillingness by people, groups and
organizations to pay for the service provided by PHCN to enable it achieve its
objectives. These entire attendant problems are pointers to inefficiency on the
part of the management, which makes it an increasingly difficult for power
holding company of Nigeria to grow and improve in terms of socio-economic
development.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
There were also inadequate financial control system that lead to high level
of corruption, diversion of materials(Transformers, Meters and polls) that are
meant for socio-economic development.
Political interference also contributed to the employment of unqualified
staffs that are not been able to carryout their official duty in Barnawa business
unit that lead to the hindrance of socio-economic development.
1.3 Research Questions
The following are my research questions
1. Why has Government always interfere by recruiting unqualified personnel
lacking the technical ability to handle its operations?
2. Is PHCN having adequate funds to carry out its operations, and by
extension taken care of the welfare of its staff?
3. How has resource allocation complemented investment made by PHCN
Barnawa Business Unit to improve its performance toward achieving a
good socio economic development?
1.4 Objectives Of The Study
The objectives of this study among other things is to evaluate the role and
effectiveness of PHCN Barnawa Business Unit, the low performance of
management by understanding a preliminary study of management activities
using available journals, observation, public comments and opinion in our
national dailies and magazines as source of information their come out of the
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
recommendations as to how to make management of PHCN better and result
oriented.
The aims and objectives of this study are:-
a. To identify whether political interference in PHCN, Barnawa
Business Unit has lead to employment of unqualified personnel.
b. To access operational problems been faced by PHCN Barnawa
Business unit in areas of distribution, generation, Billing and Bill
payment.
c. To determine measures, how resources allocation will complement
investment made by the PHCN, Barnawa Business Unit.
1.5 Research Hypothesis
This research project has the following research hypothesis formulated,
that guide the researcher in carrying out the research work.
H0: The dilapidated state of the PHCN Barnawa business unit equipments is not
responsible for their poor performance
H1: The dilapidated state of the PHCN Barnawa business unit equipments is
responsible for their poor performance.
H0: The inadequacy of funds is not responsible for the poor performance of
PHCN Barnawa business unit
H1: The inadequacy funds is responsible for their poor performance of PHCN
Barnawa business unit.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
1.6 Scope and Limitation of the Study
The scope of this research work will focus on the evaluation of the
performance of power holding company of Nigeria, Barnawa Business Unit. The
study covers the period from 2008-2015.
From the study, (interview) some of the respondents were difficult to
research on because they don’t want to dispose on open up for me to get the
needed information.
This study was to examine the evaluation of the performance of power
holding company of Nigeria (PHCN) as a tool for rapid socio economic
development. As regard this study, there was the problem of finance, the
research had the financial constraint to overcome related to the collection of
information. Collection of the needed data was not at all that easy in PHCN
Barnawa business unit, as there was reluctance on the part of PHCN officials
who behaved as though the researcher as some altered motive order than
academics. The feared that as a no one could be trusted in the present Nigeria
situation, that giving information to outsider may run their career. There was not
enough finance for sufficient materials and the time is not enough and other
resources to embark on wider coverage. Notwithstanding, the researcher was
able to collect some necessary data for this project.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
1.7 Significance of the Study
Apart from the fact that the study aids the researcher in deepening his
knowledge in the subject matter, the findings of this research add to him
scholarly and would serve as future research topic for others.
The study on the performance of PHCN, Barnawa Business Unit could aid
the practicing personnel manager and government when borrowing from
recommendation to improve their necessary equipments needed for service
delivery. This will boost the level of productivity in the locality as services
providers, residents and commercial consumers and waiting for a positive
charge. It is hoped that the findings of the study will assist managers and
management in improving the performance of PHCN Barnawa Business unit, it
hope that the study will encourage the understanding and proper utilization of
PHCN plant, structures towards better goals attainment
However, the study is an attempt to bring out and examine the common
contribution or positive impact of PHCN of socio-economic development taking
into consideration its common problem which militate against effective
performance of PHCN.
The study will also encourage the effective and proper utilization of the
power holding company plans and structure towards better goal attainment.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
1.8 Research Methodology
This study is the result of data collected from primary and secondary sources.
The primary sources here refers to original information obtained by the
researcher through personal interview, questionnaires and obtained from books,
past data, articles and documents of the organization being studies. Thus, the
researcher in course of the research work survey method was used.
1.8.1 Sources of Data Collection
The two sources of data collection that will be used are the primary and
secondary source of data.
Primary Source
The collection of data in this area is by interviewing and administering of
questionnaire to the management of PHCN barnawa business unit.
Secondary Source
Secondary source of data used, were available records, published
materials from the authority, news papers, magazines and available literature
containing material on the subject matter.
1.9 Population of the Study
The total population in Power Holding Company of Nigeria (PHCN)
Barnawa business unit is about 89 (eighty nine), made up of 7(Seven)
management staff, 21(twenty one) senior staff and 61(sixty one) junior staff.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
1.9.1 Sample and Sampling Technique
A total sample of 50(56%) were used, the 50 sample size consist of 4(four)
management staff,18(eighteen) senior staff, and 28(twenty eight) junior staff
were use respectively.
This sample size was derived using simple percentage. The solution is as
follows:
Management staffs 7(seven)Senior staffs 21(twenty one)Junior staffs 61(sixty one)Total population 89Percentage used was 56%n= Sample size unknown 56 * 89100 1
= 0.56 * 89= 49.84Approximately 50 sample size
1.9.2 Sampling Technique Used
For the purpose of this study, the researcher used a probability or random
sampling. This was done especially for the purpose of avoiding subjective bias
likely to arise from personal choice of sampling unit.
In this, questionnaire method was used to collect primary data. It is the question
presented to the respondents with the aim of obtaining certain information. It is
also designed to gather useful information from the respondent.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
1.9.3 Method of Data Analysis
In order to evaluate the performance of the Power Holding of Nigeria
(PHCN), the secondary data is gotten from the literatures like textbook,
magazines and journals.
The statistical tools used for the data collection include tables and chi-
square. The table will be use to summarize and present all the data collection,
while the data will be use for proper vivid statistical conclusion and analysis.
1.10 Definition of Relevant Terms
PHCN:-Power Holding Company of Nigeria which is responsible for electric
generation and supply.
Performance:-To mean the rate at which a worker or company produce goods
and/or services and in respect to the input injected
Electricity:-A fundamental form of kinetic or potential energy created by the free
or controlled movement of charged particles such as electrons.
Development: - A process of charging and becoming stronger, larger and
successful or advanced.
Evaluation- To judge how good, useful or successful something is a process of
carrying out a proper assessment.
Socio-Economic Development- Is a process of changing and becoming
stronger, larger, successful or advanced base on a combination of social and
economic conditions.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Tool- Is a piece of equipment or a skill that is useful for doing your job.
Rapid- Happening or done very quickly and in a very short time.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
CHAPTER TWO
LITERATURE REVIEW AND THEORETICAL FFRAMEWORK
2.1 Introduction
In this chapter a review of related literature on performance and some influencing
factors by other researchers are made is all about determining the productivity
and output of any organization in respect of its internal and external environment.
performance is a core concept within work and organizational psychology.
During the past 10 or 15 years, researchers have made progress in clarifying and
extending the performance concept (Campbell, 1990). Moreover, advances have
been made in specifying major predictors and processes associated with
organizational performance. With the ongoing changes that we are witnessing
within organizations today, the performance concepts and performance
requirements are undergoing changes as well (Ilgen & Pulakos, 1999).
In this chapter, we summarize the major lines within performance-related
research. With this overview we want to contribute to an integration of the
scattered field of performance-related research. First, we briefly discuss the
relevance of performance to the organizations. We provide a definition of
performance and describe its multi-dimensional and dynamic nature.
Subsequently, we present three different perspectives on performance: the
individual differences perspective, the situational perspective, and the
performance relation perspective. Finally, we summarize current trends in the
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
nature of work and discuss how these trends may affect the performance
concept as well as broader performance research and management.
2.2 Concept of Performance
Despite the great relevance of performance and the widespread use of job
performance as an outcome measure in empirical research, relatively little effort
has been spent on clarifying the performance concept. Still, in 1990, Campbell
described the literature on the structure and content of performance “a virtual
desert” (p. 704). However, during the past 10 to 15 years, one can witness an
increasing interest in developing a definition of performance and specifying the
performance concept.
Authors agree that when conceptualizing performance one has to differentiate
between an action (i.e., behavioral) aspect and an outcome aspect of
performance (Campbell,1990; Campbell, McCloy, Oppler, & Sager, 1993; Kanfer,
1990; Roe, 1999). The behavioral aspect refers to what an individual does in the
work situation. It encompasses behaviors such as assembling parts of a car
engine, selling personal computers, teaching basic reading skills to elementary
school children, or performing heart surgery. Not every behavior is subsumed
under the performance concept, but only behavior which is relevant for the
organizational goals: “Performance is what the organization hires one to do, and
do well” (Campbell et al., 1993, p. 40). Thus, performance is not defined by the
action itself but by judgemental and evaluative processes (cf. Ilgen & Schneider,
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
1991; Motowidlo, Borman, & Schmit, 1997). Moreover, only actions which can be
scaled, i.e., measured, are considered to constitute performance (Campbell et
al., 1993).
The outcome aspect refers to the consequence or result of the individual’s
behavior. The above described behaviors may result in outcomes such as
numbers of engines assembled, pupils’ reading proficiency, sales figures, or
number of successful heart operations. In many situations, the behavioral and
outcome aspects are related empirically, but they do not overlap completely.
Outcome aspects of performance depend also on factors other than the
individual’s behavior. For example, imagine a teacher who delivers a perfect
reading lesson (behavioral aspect of performance), but one or two of his pupils
nevertheless do not improve their reading skills because of their intellectual
deficits (outcome aspect of performance). Or imagine a sales employee in the
telecommunication business who shows only mediocre performance in the direct
interaction with potential clients (behavioral aspect of performance), but
nevertheless achieves high sales figure for mobile phones (outcome aspect of
performance) because of a general high demand for mobile phone equipment.
In practice, it might be difficult to describe the action aspect of performance
without any reference to the outcome aspect. Because not any action but only
actions relevant for organizational goals constitute performance, one needs
criteria for evaluating the degree to which an individual’s performance meets the
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
organizational goals. It is difficult to imagine how to conceptualize such criteria
without simultaneously considering the outcome aspect of performance at the
same time. Thus, the emphasis on performance being an action does not really
solve all the problems.
Moreover, despite the general agreement that the behavioral and the outcome
aspect of performance have to be differentiated, authors do not completely agree
about which of these two aspects should be labelled ‘performance’. In the
remainder of this chapter we follow the suggestion of Campbell et al. (1993) and
refer to the behavioral aspect when we speak about performance.
In determining the productivity and output of any organization is of great
importance to evaluate its performance in relation to the demands by the other
dependant units. Thus, the Power Holding Company of Nigeria (PHCN),
BARNAWA BUSINESS UNIT formerly the National Electric Power Authority
(NEPA) established in 1974 by federal government as an undertaking which is an
entity governing the use and supply of electricity in BARNAWA BUSINESS UNIT
can only be assessed by its performance either positive or negative to other
dependent sectors.
Poor electricity supply in BARNAWA BUSINESS UNIT is proving a major
impediment to the operation and growth of industrialization and development in
the locality. The electricity supply in BARNAWA BUSINESS UNIT from inception
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
to date suffers from inefficiency, fraud, corruption to gross misconduct by public
office holders.
2.2.1 Performance as a Multi-Dimensional Concept
Performance is a multi-dimensional concept. On the most basic level, Borman
and Motowidlo (1993) distinguish between task and contextual performance.
Task performance refers to an individual’s proficiency with which he or she
performs activities which contribute to the organization’s ‘technical core’. This
contribution can be both direct (e.g., in the case of production workers), or
indirect (e.g., in the case of managers or staff personnel). Contextual
performance refers to activities which do not contribute to the technical core but
which support the organizational, social, and psychological environment in which
organizational goals are pursued. Contextual performance includes not only
behaviors such as helping coworkers or being a reliable member of the
organization, but also making suggestions about how to improve work
procedures.
Three basic assumptions are associated with the differentiation between task
and contextual performance (Borman & Motowidlo, 1997; Motowidl &Schmit,
1999):
(1) Activities relevant for task performance vary between jobs whereas contextual
performance activities are relatively similar across jobs;
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
(2) task performance is related to ability, whereas contextual performance is
related to personality and motivation;
(3) task performance is more prescribed and constitutes in-role behavior,
whereas contextual performance is more discretionary and extra-role.
2.2.2 Manifestation of the Poor Performance of PHCN Barnawa Business
Unit 2008-2015
The situational perspective refers to factors in the individuals’ environment which
stimulate and support or hinder performance. The core question to be answered
is: In which situations do organization perform best? The situational perspective
encompasses approaches which focus on workplace factors but also specific
motivational approaches which follow for example from expectancy theory
(Vroom, 1964) or approaches which aim at improving performance by reward
systems or by establishing perceptions of equity and fairness (Adams, 1963;
Greenberg, 1990). Most of the existing leadership research can be subsumed
under this perspective. Because of space constraints, we will concentrate on
workplace factors as major situational predictors of individual performance.
Interested readers may refer to Folger and Cropanzano (1998), Lawler (2000)
and Van Eerde and Thierry (1996) for specific motivational approaches, or to
Yukl (1998) for research within the leadership domain.
With respect to workplace factors and their relationship to individual performance
two major approaches can be differentiated: (1) those that focus on situational
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
factors enhance and facilitate performance and (2) those that attend to situational
factors which impede performance.
A prominent approach within the first category is the job characteristics model
(Hackman & Oldham, 1976). In this model, Hackman and Oldham assumed that
job characteristics (i.e., skill variety, task identity, task significance, autonomy,
feedback) have an effect on critical psychological states (i.e., experienced
meaningfulness, experienced responsibility for work outcomes, knowledge of the
results of the work activities) which in turn have an effect on personal and work
outcomes, including job performance. Additionally, they expected an interaction
effect with employee growth need strength. In essence, the job characteristics
model is a motivational model on job performance (for an alternative
interpretation, cf. Wall & Jackson, 1995). Meta-analytic findings sug- gest that
there is a small, but positive relationship between job characteristics and job
performance (Fried, 1991; Fried & Ferris, 1987). Guzzo, Jette, and Katzell (1985)
also reported positive effects of work redesign interventions on performance. The
cross- sectional nature of many studies does not allow for a causal interpretation.
For example, it might be that individuals who show high performance get the
better jobs. However, intervention studies showed that job design suggested by a
job characteristics model has a positive effect on performance (Griffin, 1991; Wall
& Clegg, 1981).
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Socio technical systems theory (Trist & Bamforth, 1951) also falls in this first
category of job design approaches which specify workplace factors that enhance
performance. Basically, socio technical systems theory describes work systems
as composed of social and technical subsystems and suggests that performance
improvement can only follow from the joint optimization of both subsystems. In
more detail, socio technical systems theory suggests a number of job design
principles such as the compatibility between the design process and its
objectives, a minimal specification of tasks, methods, and task allocations, and
the control of problems and unforeseen events as near as to their origins as
possible (for a fuller description cf. Cherns, 1976; Clegg, 2000).
As Parker and Turner (this volume) pointed out, socio technical systems theory is
more concerned with group performance than with individual performance.
However, one can assume that work situations designed on the basis of this
approach have also positive effects on individual performance.
Approaches in the second category focus on factors that have a detrimental
effect on performance. Within role theory (Kahn, Wolfe, Quinn, Snoek, &
Rosenthal, 1964), role ambiguity and role conflict are conceptualized as
stressors that impede performance. However, empirical support for the assumed
negative effects of role ambiguity and role conflict is weak (Jackson & Schuler,
1985). In a recent meta-analysis Tubbs and Collins (2000) found a negative
relationship between role ambiguity and performance in professional, technical,
20
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
and managerial jobs. Additionally, they found a negative relationship between
role ambiguity and self-ratings of performance. However, the 90% credibility
interval of all other effect sizes included zero. Similarly, neither Jackson and
Schuler (1985) nor Tubbs and Collins (2000) found a significant relationship
between role conflict and job performance.
Situational constraints include stressors such as lack of necessary information,
problems with machines and supplies as well as stressors within the work
environment. Situational constraints are assumed to impair job performance
directly. For example, when a machine breaks down one cannot continue to
accomplish the task and therefore performance will suffer immediately.
Moreover, situational constraints, as other stressors, can have an indirect effect
on performance by requiring additional regulation capacity (Greiner & Leitner,
1989). Additional regulation capacity over and above the one needed for
accomplishing the task is required for dealing with the constraints. Because
human regulatory capacity is limited, less capacity is available for accomplishing
the task and, as a consequence, performance decreases. However, empirical
support for the assumed detrimental effect of situational constraints and other
stressors on performance is mixed (Jex, 1998). Recently, Fay and Sonnentag
(2000) have shown that stressors can even have a positive effect on personal
initiative, i.e., one aspect of contextual performance. These findings suggest that
within a situational perspective, the performance- enhancing factors (e.g.,
21
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
control at work, meaningful tasks) play a more important role than stressors.
Framed differently, the lack of positive features in the work situation such as
control at work threatens performance more than the presence of some stressors
(cf. Karasek & Theorell, 1990, for a related argument). In terms of practical
implications, the task and situational perspective suggests that individual
performance can be improved by job design interventions. For example,
empirical job design studies have shown that performance increases when
employees are given more control over the work process (Wall, Corbett, Martin,
Clegg, & Jackson, 1990; Wall, Jackson, & Davids, 1992).
The manifestation of the poor performance of the Power Holding Company
of Nigeria (PHCN) is determined by the dilapidated state of the
- Socio economic environment
- Technological environment
- Administration and service environment.
These environment which serves as the major employers of labour in the
locality are fast decaying as the main engine drive had collapsed. (i.e the power
sector).
The performance of the Power Holding Company of Nigeria, Barnawa
Business Unit on the socio-economic environment is seen from the combination
of external social and economic conditions that influence the operation and
performance of the socio-economic organization. Electric infrastructure is the
22
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
basic system and structure that a country or organization need in other to work
properly. But in Barnawa Business Unit the situation is becoming a nightmare as
industries and producers are forced out of business due to insufficient electricity
to meet their productive capacity.
The term economic infrastructure signifies a group of improvements in land
areas which are typified by physical forms of capital investment in the usefulness
of land for production and habitation. Featured improvements of this type include
large scale systems of water management, transportation, communications
systems and production. Though in Barnawa Business Unit there have been little
economic infrastructural (i.e. electricity) improvement. The sustainable level of
production and development capacity of those developed nations would have
collapse. The amount of infrastructure development (electricity) required by
Barnawa Business Unit and the percentile of the total demand by the entire
sectors of the economy are variable. This amount of electricity decreases as
demand increases every day, also as population density increases. Therefore,
living less to required for advancement and development; infrastructural capacity
(socio-economic, administration, service and technological infrastructures)
demand in Kaduna of more than 4000 mega watts, only 2500mw of electricity
dose the nations Power Holding Company produces at a time that is not even
enough for Barnawa Business Unit’s consumption.
23
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
2.2.3 Effect of PHCN Performance on Economic and Social Service
The conventional development strategy for the Third World is and has
been dominated by economic growth. In the process of its implementation,
industrialization became equated with development. To this end, industrialization
by way of capital accumulation and technology transfer from the industrial
nations to the Third World were pursued with immense interest. Decades of
massive importation of advanced technology and the implementation of large-
scale, capital-intensive production methods in Third World countries have
revealed the shortcomings of such an approach. First of all, the strategy entails
the employment of capital-intensive technology in countries that are short of
capital and endowed with surplus labor. Third World countries, by opting for
capital-intensive production technology in spite of their shortage of capital, can
only afford to create a few jobs for a small number of people due to a very high
capital/labor ratio. This implies that several Third World countries equip only a
very small proportion of their labor force with the means of increasing production.
In this case, small islands of high productivity emerge in core urban centers at
the expense or neglect of the periphery involving the more populous segment of
the economy. The result has been the creation of a dual economic structure
(consisting of a prosperous modern sector and an impoverished traditional
sector), worsening unemployment conditions, and widespread abject poverty in
many Third World countries. According to a 1976 U.S. Agency for International
24
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Development (USAID) proposal to the U.S. Congress, the effects of capital-
intensive technology are not limited to problems of unemployment in the Third
World. "The high capital cost of modern technology has also contributed to the
development of dual economies small, relatively well-off enclaves of high
productivity and well-paid workers side by side with relative stagnation among
the larger community" (Thormann, 1979, p. 282). There are writers who attribute
growing poverty in the Third World in part to rapid growth in the modern sector
that is sustained with the most advanced imported technology (Singer, 1985).
This growth in Third World metropolitan areas is often accompanied with little or
no spread effect to the sectors in the periphery. Commenting on this issue,
Robinson (1979) observed that "a growth strategy that takes the form of industry-
led development, using the technologies that are appropriate for Western
societies, leaves almost untouched in the rural areas increasing absolute
numbers of impoverished and underemployed workers" (p. xii). It is because this
growth has failed to create sufficient employment opportunities and the growing
disparity in progress between regions that concerns have been raised about the
conventional development strategy. The World Bank even touched on the
inevitability of getting priorities right in terms of the pattern of development that
best addresses the needs of the Third World:
The choice to be faced …is whether to invest heavily in a few workers and
in services for a few to increase their production and living standards
25
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
substantially, leaving the rest unaffected by growth (or at best affected indirectly),
or whether to make some gain in the productivity of many people by investments
at lower per capita affecting the mass of the people in the country. (Willoughby,
1990, p. 118)
As mentioned earlier, an impact of the pattern of growth in metropolitan areas
of the Third World is the development of a dual economy. This has been blamed
for causing, among other things, a constant influx of people into the cities from
the rural sector. Not only is this rural-urban migration a threat to the economy of
the rural sector, but also to the survival of the modern sector as it struggles to
cope with an exploding urban population. The modern sector is the creation of
mostly advanced, capital-intensive technology imported from the rich
industrialized countries. Schumacher (1973) blamed this technology for creating
what he called the "process of mutual poisoning" in most of the Third World. This
is a condition in which the concentration of industrial development in Third World
cities adversely affects the economy of the traditional sector as people abandon
their traditional undertakings to move to the cities. This movement in turn affects
the cities adversely by overpopulating them and causing problems almost
impossible to manage. The relationship in this case becomes one of mutual
destruction. This manifests itself today in the Third World in the form of high rates
of unemployment, poverty, great income disparity, and declining access to basic
needs. This being the case, a major challenge today in the Third World is to
26
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
articulate an effective approach to ensure that benefits from development are
within people's reach regardless of where they live.
Appropriate technology as a development approach is intended to address
such socioeconomic problems, especially in the rural and informal sectors.
Stewart (1985) perhaps put the need for appropriate technology in perspective in
the following statement:
The argument for appropriate technology is not that jobs should be put
before output, but that techniques can be developed which promote both.
Appropriate technology is intended to raise productivity and incomes outside the
advanced technology sector and so extend the benefits of development
throughout the population. (p. 28)
It goes without saying that using appropriate technology to stimulate
production and employment in the sectors outside the modern sector is such an
important objective that it ought to be seen as a national imperative. It is
unreasonable not to promote appropriate technology for development in the
traditional and informal sectors in view of the capital and foreign exchange
situation in many Third World societies. Development in these regions must start
with less complex and expensive techniques and move forward.
Social-economic infrastructure which is an indicator that assesses the
underlying physical, financial, and human resources needed to support modern
technology is lacking in Barnawa Business Unit. These social economic
27
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
infrastructures ranges from the availability of street lightening, traffic signals, fiber
optic communications intelligent transportation systems, site utilities and
entertainment facilities are ill-functional due to the insufficient electricity to
enhance their smooth running.
The service sector which is the lifeline for the social-economic growth of
Kaduna contribute more to the global output and employing more people than
any other sector has reached in employment and expansion capacity. This is due
to the fact that the performance of the Power Holding Company of Nigeria,
Barnawa Business Unit has been poor towards meeting the demands of the
service sector.
The retailing, insurance and infant industries in Barnawa Business Unit are
witnessing stagnation in productivity and output. These sub-sectors are
witnessing the absence of qualified personnel and this partly account for their
failure. Indicators include the current high level of un-technological sector. Also,
the quantity and productivity of the labor force, the presence of skilled labor and
existence of innovative management practices is lacking in the locality.
Manifestation of the performance of Power Holding Company of
Nigeria Barnawa Business Unit are unemployment, underdevelopment and
commercial entities (e.g. Arewa textile) had to cut down or limit production in
other to cope with the dilapidated state of the power sector. Industries like United
28
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Company limited is completely out of business and employees of such
organization are forced to quit their vocational.
World bank (1994) noted that the adequacy of power infrastructures helps
determine one country’s success and another’s failure in diversifying product,
expanding trade, coping with population growth, raising industrial productivity and
widening choices. Electricity supply raises productivity and lowers production
cost.
In Barnawa Business Unit, electricity infrastructure which is supposed to
help other sectors to boost their productivity and output is inefficient. Thus, it
brought a collapse in not just the power sector but also other economic
productive sectors of the locality.
Interrupted power supply in the course of doing business, which inversely
limits the quantity and quality of service and product to be produced.
Health service sector in Kaduna is witnessing absence of technology and
health equipment needed to reduce medication; dispensing errors, improve
patient safety, chronic disease management like, diabetes, cancer and heart
failure. Most of the health centers (hospitals, clinics and dispensaries) are
operating research and test locally or manually which has high tendencies of
wrong result interpretation. These shortcomings are as a result of the insufficient
electricity supply in Barnawa Business Unit.
29
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Health sector in 2012 due to the poor electricity supply to enhance the
smooth operation of the facilities and equipment accounted for maternal mortality
increased from 70-80 death in 1000 births respectively.
Technological infrastructure collapse in the area which represents the
social and economic institutions that contribute directly to Barnawa Business Unit
ability to develop, produce and market new technology was due to the poor
performance of the electric sector, that produces only 200MW to Barnawa
Business unit with a demand of about 4000MW. Indicators of technological
infrastructure includes the existence of a system for the protection of intellectual
property rights, competency in high technology, manufacturing and the capability
to produce qualified equipment.
Technological infrastructure collapse in the area which represents the
social and economic institutions that contribute directly to Barnawa Business Unit
ability to develop, produce and market new technology was due to the poor
performance of the electric sector, that produces only 200MW to Barnawa
Business Unit with a demand of about 4000MW. Indicators of technological
infrastructure includes the existence of a system for the protection of intellectual
property rights, competency in high technology, manufacturing and the capability
to produce qualified equipment.
Productive capacity of the technological sector dropped rapidly over the
last decade. The insufficient power supply accounted for part of the failure.
30
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Table 1
Performance of PHCN, Barnawa Business Unit on Sectors as at 2008
S/NO Sectors Growth Rate Per Annual of
Electricity
Planned Actual
1. Agriculture 4.00 3.4
2. Retail trade and wholesaler 10.00 -0.6
3. Household and resident 8.10 1.1
4. Communication 15.00 -3.1
5. Services 12.00 0.25
Source: National Account of Nigeria
The above table shows how poor the performance of the Power Holding
Company of Nigeria, Barnawa Business Unit on the entire locality has been with
focus on 2007 performance. Socio economic sectors and service sectors
witnessed a slight poor performance as against the planned, while those of the
economic sectors witnessed a negative achievement as against the planned
target. In those years the productivity output of these sectors dropped rapidly all
due to the ill-performance of the electric sector.
2.3.3 Performance of PHCN Barnawa Business Unit
31
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Agriculture sub-sector which involves the cultivation of land, raising and
rearing of animals for the production of food for man, feed for animals and raw
materials for industries, lacks the electric back-up to boost and expand its
cultivation and production. Most extracted raw materials are been exported
instead of been processed in the region by our infant industries that need the
electric back-up to function properly.
Nigeria in the early 1970’s before the discovery of oil as a major producer
and exporter of oil, was a major producer of agriculture products which
accounted for 102 percent production in the sub sector, Kano and Kaduna
accounted for groundnut exports; through electric supply which was not 100%
functional was able to adequately supply energy to the agriculture sub sector for
production purposes.
Omawule and Rogrigues (1979) noted that agriculture has been a means
of reducing dependence on certain importation; it increases employment and
foreign exchange earnings. Between 1975 to 1980, per capital contribution of
agriculture range from 102, 93, 91, 90, 86 to 88 respectively, such decline rose
as a result of the failure of the electric sector to provide efficient and sufficient
energy to the agriculture sub sector.
Agriculture in Kaduna just of recent has not been able to meet the food
demands of the region. Food production per capital has been declining; its
contribution to Gross Domestic Product (GDP) fell from 61.50% in 1970 to
32
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
14.63% in 1983 while in 2006 it was just 5.6%. These ugly trends were all due to
the ill-health of the power sector and it failure to produce the much needed
energy for agricultural production.
As a result of the neglect by government to revamp the situation, farmers
had to leave cultivation of farm products in large quantity to subsistence farming.
Those in business were forced to use generators to boost their production while
thousands of youths and unemployed men are scattered as a result of closure of
most firms and companies, such as the groundnut pyramids in Kano And the
Textile company, employees had to retreat back to their respective petty farms
for survival.
Johnson (1970) said that, “ the proportion of a Nation’s resources
especially energy (other than labor) devoted to agricultural production increase
not only the production capacity of the receiving sector (agriculture) but also
boost the contribution of the other (energy sector) to economic development.
That is to say, if power supply remains sufficient and constant, agricultural
production will be processed, manufactured and packaged ready for
consumption/or export.
Communication sub-sector of the region consisting of means of sending
and receiving messages, orders, is vital to be smooth functioning to the region.
Kaduna in the past had two main communication services, the Nigerian Postal
Service (NIPOST) responsible for postal services and secondly, the Nigerian
33
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Telecommunication (NITEL) responsible for telecommunication facilities as well
as technical service department.
The collapses of NIPOST AND NITEL were mainly attributed to poor
electric supply to their facilities that requires energy to transfer and transmit
information. Billions of Naira was wasted to revamp the service, but this failed
because the necessary base or engine that supports their smooth functioning
(electricity) was neglected and abandoned.
Of recent, the communications services are being imported from countries
like South Africa, China, Singapore among others just to meet the demands of
the populate. This simple act has rendered dependency on other output instead
of boosting the growth of infant industries to transmit her sole communication
service, which will not only boost its status internationally but also increase
employment opportunities.
The transportation sub-sector of the locality especially the railway tracks
and trains will soon become history as government is doing nothing to revamp
both the energy and railway sub-sectors, countries like America, China and
Japan are improving on railway transport over road and air transport due to the
backup of the electric sector to produce and constantly supply energy to their
electronic speed trains that runs faster than the cars and convey more goods and
passengers that even some planes.
34
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Closure of such railway industries resulted in the retrenchment of more
than a 100,000 employees in the industries. Revenue and income that the sector
generates ahead of road transport was lost as a result of the collapse of the
industry. Electricity which is a necessity to the sectors development and growth
accounted for its failure as no amount of electricity was supplied to the sector;
rather, the sector was using locomotive engine to operate.
2.3 Theoretical Framework;
For this research system theory will be employed as the empirical bases.
System Approach of Management Theory as propounded by David Easton et al
(1994). He defined system as a grouping of elements that individually establish
relationships with each other and also interacts with their environment both as
individual and as collective entities.
The classes are of the view that once the purpose of an organization is
known by the members and the activities or roles are identified as well as the
means provided; the organization will function proper and effectively. They
mainly concerned themselves with operations in an organization, structures of an
organization and management.
A system may be defined as a set of independent parts that relate in the
accomplishment of same purpose. This implies that a system is not the sum of
parts or units but every parts or units has a particular function or role to play to
35
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
ensure the functional survival of the system. Malfunctioning or absence of one or
more of the units of the system may not only destroy the system but can lead to
malfunction of the system. None of the parts is more important than the system
on its own, all of them works together. Drawing on work from many fields,
including; sociology, psychology, biology and information theory, the system
approach view enterprises as system that procure and transform inputs which
are subsequently discharged into their external environment in the form of goods
and services. Inputs may take the form of people, materials, money or
information. For instance, PHCN transform electricity either to step-up to step-
down.
Every system has some characteristics known with it. They are:
i. A set or objectives which the entity seeks to achieve and without which it
cannot exists.
ii. A hierarchy of inter-dependent units (sub-systems) among which the
system objectives are dividend for implementation.
iii. Importation of energy and stimulation from the environment e.g. people
and material resources.
iv. A conversion circuit where the conversion process take place.
v. Production of output in form of services or goods.
vi. Feedback mechanism that brings it information which helps it evaluates its
work or output.
36
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
vii. An environment which is the larger society in which the system is situated.
According to Cole (1986), the boundaries of an organization are not visible for
the boundaries of a social system and are based on the relationship and not on
things. Thus, while certain factual elements, such as physical reactions do have
some impact on organization boundaries. It is the result of management
(choices) that really determine where the organization and environment begins.
With the system theory in mind, an organization is seen as one element with a
number of elements interacting independently. The flow of inputs from the
environment to output is the basic starting point in describing the organization.
The figure below illustrates the functional elements of the System Theory.
37
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Functional Element of the System Theory
INPUT PROCESS/CONVERTER OUTPUT
FEEDBACK
Source: David E. et al (1994)
The system theory indicates that the organization is an open social system which
draws resources (input) from the environment. It mobilizes, utilize and produce
goods and services that are to be exported back to the environment as (output).
This process occurs in a cyclical manner. The success or failure of an
organization is measured by the Rate of Input to Output.
38
People materials information and
financeProducers (goods
and service)Production of
marketing planning organization and
control mechanism research only
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
In the context of this research, PHCN transform electric energy either to step-up
or to step-down into services to the public. PHCN as a system is illustrated
below:
PHCN using System Theory
Organizational inputs include skill man power, material information and finance.
These inputs are transformed through the conversion stage and finally
discharged into the environment as output; the process is thus illustrated below:
Source: Researcher’s survey 2015.
The diagram above explains the relationship and interdependence
between in input, output and environment. The input is derived from the
environment into the organization for immediate processing and conversion and
subsequent release as products (goods and service) into the environment for
consumption. The environment gives feedback to the organization in form of
communication, payment for products or rejection of output.
PHCN Barnawa Business Unit as an organization is made up of various
departments consisting of distribution, marketing, administrative, accounting,
engineering and public relations departments, all interrelated and dependent on
each other for proper functioning and goal attainment. Through on a large
39
Input: electric energy, information human
and finances
Conversion: transformation of
electric energy either to step-up to step-
down
Outputs: supply of electricity bills and
other customer service
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
aspect, PHCN Barnawa Business Unit is a unit of a social system depending on
inputs from the environment and parent head. Below is an illustration of the
relationship the organization has with other dependent units;
Source: Researcher’s Survey 2015.
The diagram above illustrates the relationship and interdependence
between and among the external and internal units. The inputs above are what
go into the PHCN from the external units that is electric energy from transmission
company (TRANSYCO), information and funds from head quarter revenue from
payment of bills and services. These inputs are the most important ingredient for
the entire PHCN, Barnawa Business Unit.
The second stage is the conversion phase. Here the inputs are
transformed, the information, electric energy, human and financial resources of
becomes output. The use transformers, stabilizers and other gadgets are of high
relevance at this stage.
The output in PHCN is of great concern; it involves the dissemination of
electricity, bills and other customer services to ensure a smooth running of the
organization. Feed back and evaluation process of PHCN represents the
40
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
payments for bill or complaints by customers in the entire process. This feedback
makes it possible for them to monitor and evaluate the system performance, and
to make changes where necessary. Their dependency is inevitable and should
not be compromised as the effect of one reverberates through the remaining sub-
systems.
41
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
CHAPTER THREE
HISTORICAL BACKGROUND AND ORGANIZATIONAL STRUCTURE OF
PHCN
3.0 Introduction
3.1 Historical Background of PHCN Barnawa Business Unit
The Power Holding Company of Nigeria (PHCN) Barnawa Business Unit
came into being as an undertaking in 1978 under district office and later as a
district in 1993.
Electricity generation in Nigeria began in 1929 in Ijora, Lagos. In 1929, the
Nigeria Electricity Supply Company (NESCO) commences operations as an
electric utility with construction of a hydro-electric power station in Kura, Jos
(NEPP, 2001).
In 1951, the Electricity Corporation of Nigeria (ECN) was established to
control the diesel and coal plants while the Niger Dan Authority (NDA) was
established in 1962 due to rapid urbanization and increasing demand that led to
the exploitation of the country’s water resources.
In 1972, NDA and ECN, which were 100% wholly government owned
public utilities were merged to form the National Electric Power Authority (NEPA).
NEPA was established by the Federal Government Decree on 24 of Efficient,
coordinated and economic system electricity supply for all part of the federation.
NEPA was mandated to carry out the business of generation,
transmission, distribution and marketing of power supply to the generally of the
country. The Electricity Act and the NEPA Act, guides NEPA’s activities and
operations and it started with four major power supply stations namely:
42
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
i. Ijora thermal station
ii. Delta thermal station
iii. Afam thermal station
iv. Kainji hydro power station
These four major power stations serves more than two million ( 2 million)
customers Nationwide.
National Electric Power authority (NEPA) now PHCN has an installed
capacity of 6000mw and with the supplementary capacity from independent
power producers (IPP), has only been able to generate a total of 4400mw in
2004; rarely does it produce 2500mw at any given point in time. As at 2006,
PHCN has eight (8) power stations of which four (4) are hydro power stations,
there are:
- 1320mw Lagos thermal station commissioned in 1987720mw Ogorode
thermal station commissioned in 1978.
- 600mw Delta foe thermal station commissioned in 1991.
- 55mw Afam thermal station commissioned in 1962.
- 760mw Kainji hydro power station commissioned in 1968.
- 600mw Shiroro hydro power station commissioned in 1990’
- 540mw Jebba hydro power station commissioned in 1985.
- 60mw Ijora Lagos Power Station commissioned in 1956
43
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Considering that most of these power and thermal stations were installed
between 1960 and 1961, the then NEPA has been unable to meet the
overgrowing demand for electricity power due to the old/obsolete equipments
and neglect that has plagued the industry.
3.1.1 Present and Future Electricity Generation Infrastructure Plan in
Nigeria
1. Ibom power Akwa Ibom “ 190 IPP
2. Ethiope Energy Ltd “ 2800 New IPP
3. Farm electric power
supply
“ 150 “
4. ICS Power “ 624 “
5. Supertek Ltd “ 100 “
6. Mabon Ltd “ 39 “
7. Geometric Ltd “ 140 “
8. Western Tech &
Enery Ltd
“ 1000 “
9. Anita Energy Ltd “ 136 New IPP
10. Lotus & Bressour
Nig Ltd
“ 60 “
11. First Independent
Power Co. Ltd
“ 95 IPP
44
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
(Eleme)
12. First Ind. Power Co.
(Trans Amadi)
“ 136 New IPP
13. First Ind. Power Co.
(Omoku)
“ 340 “
14. Hudson Power
Station Ltd
15. Ibafo Power Station “ 640 “
16. Shell Petroleum
Dev. Co. Ltd
“ 624 IPP
17. Agbara Shoreline “ 1800 New IPP
18. Index Power
Thermal Ltd
“ 1800 “
19. Shell Dist. Co. Ltd “ 100 “
20. Olorunshogo Phase
2
Ogun “ 676 New IPP
21. Omotosho Phase 2 Ondo “ 451 “
22. Jebba “ “ 578 “
23. Shiroro “ “ 600 “
24.
Mambilla
Taraba “ 2600 Planned
45
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
25. Zungeru Niger “ 950 “
42-
46
Total Installed Capacity of Hydro generating station 5,488
Current total of present and future Electricity generating Infrastructure
plan in Nigeria
27,659MW
1-41 Total Installed Capacity of Thermal Generating Station
Seeing the infrastructure plan for electricity generation in table 2, it looks like
government is taking bold steps towards confronting the epileptic electricity
challenges of the past two and a half decade. Even in August 2010, the
government drew a “Roadmap for power Sector Reform” in which target set for
increase in capacity of each sub-sector of the electricity market are represented
in table 3.
Table 3: Increase in Generation, Transmission and Distribution Capacity
Time Available Generation
Capacity (MW)
Transmission capacity (MW) Distribution
Capacity (MW)330 KV 132 KV lines
July 2010 4612 5155 6677 5758
December 2010 5379 5515 7328 6334
April, 2011 7033 5995 7328 6900
December,
2011
9769 6555 7488 7485
December, 11879 7866 8986 8061
46
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
2012
December,
2013
14218 8653 9885 9059
Source: Roadmap for Power Sector Reform- Presidency, August 2010
With all these plans and targets with huge investment disbursed to achieve
these, it is just right to ask
“Where are we” in this power sector reform journey?
Are we getting it right?
Is the vision 20:2020 which largely depend on the power sector reform
visible as we draw close to 2020?
These are just few needed questions to ask amongst many, and answer to them
depend on each individual paradigm view.
It is a general knowledge, based on figures that the figures in table 3 to date are
far above the achieved actual figures. The challenges currently include;
Slow growth in generation capacity.
Market deregulation process delay and interference by government.
Power lines and equipment vandalisation.
Poor maintenance of existing power system.
Corruption.
A. Slow Growth in generation capacity
47
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Since year 2000, awareness of improving the electric power sector as pivot for
economic growth in Nigeria, and consequence steps taken (such as huge
investment committed to make recovery from existing plant capacities and
increase generation through IPPs, and the birth of reform Act of 2005) to achieve
this by various government, there has been slow or no growth in generation
capacity. (Even the table 3 set up by Government confirms this). Table 4,
showing the average generation capacity over the years the awareness became
prominent is a clear indicator to show growth generation capacity.
Year Total Generation Capacity
(GWh)
Average Generation
Capacity (MW)
Per Capita
consumption (KW)
1999 16,089 1837 0.151
2000 14,727 1681 0.134
2001 15,463 1765 0.134
2002 21,544 2459 0.178
2003 20,183 2304 0.178
2004 24,275 2771 0.201
2005 23,539 2687 0.187
2006 23,110 2638 0.178
2007 22.978 2623 0.177
2008 21.1.10 2340 0.176
2008 21.1.10 2340 0.176
2009 21.1.10 2340 0.176
48
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
2010 24,872 2839 0.179
2011 23,652 2700 0.167
2012 (Oct). - 4100 -
Source: World Bank (Energy information administration),
www.eia.doe.gov/emeu/iea
3.1.1 Incorporation of Successor Companies
On the completion of transfer of assets, liabilities and personnel, NEPA to
PHCN on 15th April, 2005, the bureau for public enterprises (BPE) move on to the
next stage of unbundling by undertaking the incorporation of the successor
companies with the assistance of the legal implementation work stream
consultants incorporated at corporate Affairs Commission (CAC). They are six
generation companies, one transmission company and eleven distribution
companies. The Kaduna electricity distribution company covers four states
Zamfara, Kebbi, Sokoto and Kaduna. In Kaduna we have eighteen business
units, one of which I was opportune to research on that’s Barnawa Business unit.
3.2 Organizational Structure of PHCN Barnawa Business Unit
Business Manager
- Public Relations
- Computers- Stores
49
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Source: Research Survey 2016.
3.2.1 Objectives of PHCN Barnawa Business Unit
The main objective of the Power holding Company of Nigeria, Barnawa
Business Unit is to distribute electric power throughout the locality. Others
include;
a. Provision of steady and reliable supply of electricity.
b. Repairs and maintenance of all PHCN transmission and distribution lines.
c. Regular and accurate reading of meters.
d. Regular distribution of electricity bills and collection of all monies accruing
to the company.
e. Operation of 24 hours fault clearing section to ensure uninterrupted power
supply to all customers.
3.2.2 Functions of the Various Departments of PHCN Barnawa Business
Unit
TechEngineer
- Operation and maintenance - Planning and construction- Planning construction and
mitering - Electrical Filters- Cable jointer- Linesmen - Distribution substation
Customer service office
- New service- Customer
care- Billing and
collection- Meter
Readers
Human Resource
s- Drivers- Security Guide- Cleaners
Account Office
- Salary & wages
- Revenue - Disbursement
50
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
The following are the functions of the various department and offices in
PHCN Barnawa Business Unit.
a. Business Manager
This office is headed by a business manager who coordinated and is
responsible for the day to day running and also overseas the activities of the
Barnawa Business Unit office. Business Manager Unit chairs the meetings of all
heads of departments and all matters affecting the entire Barnawa Business unit
in respect of electricity supply. He also has a secretary who assists him.
b. Distribution Department
This department is headed by the distribution manager, who is been
assisted by two other assistant manager, Assistant manager maintenance and
assistant manager distribution.
The office of the distribution manager is tied down with the responsibilities
of distribution and rational sharing of power supply between the various location
in barnawa still under his office, we have the distribution and supply officer (DSO)
who as an engineer, takes his directives from the Asst. distribution Manager on
the distribution of power supply between the various areas at a particular point in
time.
c. Fault Men, Cable Jointer and Store Keeper
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Fault men are those who detect a problem on power supply and also make
necessary repairs i.e., punctuations from the transformer or cable bridging which
lead to total distribution of power supply.
The cable pointer duty is mostly on new installation of electrification of
electrical equipments i.e. rural electrification project. The storekeeper keeps all
the equipment and facilities for the organization e.g. cable wires, fuse boxes
transformers both used and unused the store keeper also keeps the record and
whatever is kept in the store including data and type of the equipment.
d. Transport Section
The transport section consist of the senior and junior drivers each has a
responsibility to carry out his duty based on the time schedule that is Van and
Lorry drivers and the drivers of the officials.
e. Public Relations Office (P.R.O)
The public relation office is headed by a public relation officer also known
as PRO. The PRO is in charge of all information in the organization. The PRO is
also aware of all the information about staff in various offices in the organization.
He takes reports from the manager and passes it down to other departments.
Also, he receives information from other departments and passes it up to the
manager. He is the link between manager and the other department.
f. Marketing Department
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
The marketing department is headed by Asst, marketing manager who has
two sub-Asst manager; Asst marketing and Asst Commercial manager
respectively.
The department deals with the distribution and sales of electricity to
consumers. Bills are being prepared here while new connections/disconnection is
all made through this department.
g. Account Department
The account department is headed by the district accountant who is in
charge of all financial activities of that particular organization he takes into
account all financial transaction that takes place in the organization either as
revenue or expenditure. He records the items into the various necessary books
of account.
Asst revenue and Asst. disbursement manager are under the district
accountant who is in charge of all that accrues into the organization as revenue
and also that which is incurred by the authority as expenditure.
h. Revenue Office
53
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
This section falls into various categories such as reconciling consumer
wrong billing or wrong payment made into wrong accounts or any form of
reconciling consumers account.
i. Inquiries Section
This office is in charge of all consumers’ complaint as pertaining to their
payment and billing and record reconnection permits for those that have been
disconnected.
j. Office Disbursement
The office disbursement is in charge of all consolidated accounts for the
district on the making return to all cooperate headquarters. It is directly under the
supervision of the Asst, disbursement manager.
k. Salary and Wages Section and Pay Master
This section is in charge of preparing staff salaries and other benefits or
remuneration. It is headed by the pay master who is in charge of making all
payment both contractor and staff claims, statutory payment etc on behalf of the
authority.
l. Administrative Department
The administrative department is headed by administrative manager and
has two other assistants, Asst manager personnel and Asst Manager Admin.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
The department coordinates all the entire administrative functions of the
organization such as planning, controlling and directing of staff activities of the
organization.
The Asst. manager performs the function of supervising clears and other
staff. They also feed the administrative manager with some arising matter and
deliberate on issues.
m. Office Records
This is the office where the administrative clerks in the organization keep
all the documents also files for reference.
n. Engineering Department
This department is headed by the district engineer. The department is
charge with the general engineering works on plants, vehicles, computers and
equipment. Such works are electrical, mechanical and system planning.
o. Data Entry
This office is in charge of capturing of inputs such as payments,
customers’ maintenance, record and customer account adjustment document
reading sheets.
It is a section under the engineering department that takes responsibilities
of system planning through the use of computers.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
p. Date Control and Processing
Data control function is to receive inputs from either accounts section or
meters reading e.g. payments, reading sheets, customers’ maintenance record
and customer account adjustment document reading sheets.
While the processing unit is concerned with the processing if all the inputs
that were captured in data entry sections.
3.3 Organisational Source of Fund
The electricity reforms act 2004 lays the foundation for privatization of the
sector. Prior to that sales of electricity is the main source of fund.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Introduction
This chapter will basically deal with presentation, interpretation and
analysis of data. The information gathered for this study were carefully analyzed
and interpreted. It is based on the information gathered through the use of
questionnaire which was distributed to the PHCN Staff of Barnawa Business Unit
Kaduna State as the scope of the study. All in all fifty (50) questionnaires were
administered but only forty one (41) were fully completed and returned back to
the researcher.
Statistical tool have been used to present and analyze using chi-square.
Each category of information was comprised in order to compare, contrast and
evaluate easily so as to answer the formulated hypothesis for the research work.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
4.2 Data presentation
Table 4.1 Sex of the Respondents
Variable Frequencies Percentage %
Male 37 90.2
Female 4 9.8
Total 41 100
Source: Researchers Survey, 2016.
Table 4.1 above shows that 37 respondent represented by 90.2 were Male
Staff where as 4 respondents represented by 9.8% were Female Staff. This
makes it evident that most of the staffs of PHCN Barnawa Business Units are
mostly male because of the technicality nature of the organization. Due to the
tedious nature of the work e.g operating of machines, fixing and maintenance of
transformers amongst others which requires males who are physically fit to
perform the task, which is rarely perform by female staffs.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Table 4.2 Age of the Respondent.Variables Frequencies Percentage %
18-30 years 9 21.9
31-40 years 12 29.2
41-50 years 14 34.1
51 and above 6 14.6
Total 41 100
Source: Researchers Survey, 2016.
Table 4.2 above shows that Nine (9) respondents represented by 21.9%
are between 18-30 years, twelve (12) respondents represented by 29.2% are
between 31-40 years; fourteen (14) respondents represented by 34.1% are
between 41-50 years while six (6) respondents represented by 14-50 years while
six (6) respondent represented by 14.6% are between 51 and above. This is due
to the nature of the activities they perform which entails the combination of
different human resources. Respondents between 18-30 years mostly handle the
technical aspect of the PHCN Barnawa Business Unit activities such as pole
combining, mounting, disconnection and reconnection. Respondent from 31-40
years are mostly involve in clerical and secretarial functions of the PHCN
Barnawa Businesses Unit such as clerk, typist, clearers and messengers.
Respondents from 41-50 years are mostly engineering and computer experts
that handle the electrical and mechanical activities of PHCN Barnawa Business
Unit. While respondents from 51 and above years are mostly managerial staff
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
that handle the strategic functioning, planning, organizing, directing, budgeting
and controlling activities involves electrical and mechanical functions.
Table 4.3 Academic Qualification of Respondents
Variables Frequencies Percentage %
WASCE 3 7.3
OND/NCE 21 51.3
HND/Bsc 13 31.7
MSC/PHD 4 9.7
TOTAL 41 100
Source: Researchers Survey, 2016.
Table 4.3 above shows that three (3) respondents represented by 7.3%
owned WASCE, twenty one (21) respondents represented by 51.3% owned
OND/NCE, thirteen (13) respondents represented by 31.7% possessed
HND/Bsc, and finally four (4) respondents represented by 9.7% owns Msc/PHD
certificate.
It is seen that majority of the staffs of PHCN Barnawa Business Units are
OND/NCE because they perform mostly the real function of the organization,
while some of the other staffs are Bsc/HND certificate holders who are in the
middle staffs cadre and therefore have vast knowledge about the administration
of both human and material resources of the organization.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Table 4.4 Marital Status of Respondents
Variables Frequencies Percentage %
Single 18 43.9
Married 23 56.1
Total 41 100
Source: Researchers Survey, 2016.
Table 4.4 above shows that eighteen (18) respondents represented by
43.9% were single and twenty three (23) respondent represented by 56.1% were
married. This shows that majority of the respondents were married.
This implies that the of PHCN Barnawa Business Units requires individual who
can contribute positively to the organizations not necessarily concern with marital
status.
Table 4.5 How Long Have You Been Serving with this Organization
Variable Frequencies Percentage %
2-5 years 19 46.3
6-10 years 9 21-9
11 and above years 13 31.7
Total 41 100
Source: Researchers Survey, 2016.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Table 4.5 shows that nineteen (19) respondents represented by 46.3%
served from 2-5 years, nine (9) respondents represented by 21.9% served from
6-10 years while thirteen (13) respondents represented by 31.7% served from 11
and above years. Respondents from 2-5 years indicate new recruits needed to
support and strength the existing manpower, respondents from 6-10 years
indicate employees that have acquired skill labour in the management of PHCN
affairs. This category comprises mostly engineers, computer experts and
management staff. Respondent from 11 years and above indicate employees
that are recruited for the purpose of operational aspects of PHCN, such as
drivers, security personnel and clerk.
This first category which comprises the highest population is mostly
characterizes by trainees that are new in the organization.
4.4 Data Analysis
The test of hypothesis will made from data gathered from the field. These will be
done based on data gathered on the two hypothesis stated, that is each of the
data, is related to one hypothesis, as such the hypothesis will be rested using the
data gotten from the respondent on it.
Hypothesis One
Ho: the dilapidated state of the PHCN equipment is not being responsible for
their poor performance.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
H1 the dilapidated state of the PHCN equipment is responsible for their poor
performance.
Table 4.6 Equipment in good Condition.
Variables Frequencies Percentage %
YES 31 75.6
NO 10 24.4
Total 41 100
Source: Researchers Survey, 2016.
Table 4.6 shows that thirty one (31) respondent represented by 75.6 %
says that PHCN equipment is in good condition in discharging their duties while
ten (10) respondents represented by 24.5% where of the view that PHCN
equipment in not in good condition.
It is evident that most of the respondents agreed that their equipments are in
good condition, that can help them in discharging their duties very effective and
efficient.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Table 4.7 Dilapidate State of PHCN equipments Responsible for their
Performance.
Variables Frequencies Percentage %
YES 29 70.7
NO 12 29.3
TOTAL 41 100
Source: Researchers Survey, 2016.
Table 4.7 above shows that twenty nine (29) respondent represented by
70.7% agreed that dilapidated equipment of PHCN accounts for their poor
performance, while twelve (12) respondent represented by 29.3% are of the view
that dilapidated equipments are not responsible for their poor performance. Thus
the twenty nine (29) respondents believes that the organization equipments is
characterized by absolute machines that governments has neglected in terms of
service and maintenance over the years due to that the performance of PHCN
was not encouraging one toward achieving a meaningful socio economic
development.
64
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Table 4.9 Organization Effective in Discharging Their Duties
Variables Frequencies Percentage %
YES 35 85.4
NO 6 14.6
TOTAL 41 100
Source: Researchers Survey, 2016.
Table 4.9 above shows that thirty five (35) respondents represented by
85.4% are of the view that PHCN Barnawa Business Units staffs discharge their
duties very effective, while six (6) of the respondents represented by 14.6% are
of the view that PHCN workers do not discharge their duties effectively.
The view held by the majority of the respondents justifies that workers of
PHCN Barnawa business unit perform their duties very effective toward
achieving the organizational objectives and goals.
Table 4.10 Organization (PHCN) Provide Supply of Electricity
Variables Frequencies Percentage %
YES 26 64
NO 13 3.6
TOTAL 41 100
Source: Researchers Survey, 2016.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Table 4.10 above shows that twenty six (26) respondent represented by 64
are of the view that PHCN supply electricity constantly that the brake out is due
to the maintenance of their equipment like transformers, pool wires, while thirteen
(13) respondent represented by 3.6% says supply of electricity in Barnawa is not
constant due to shortage of technical manpower to discharge the duties of the
organization.
Table 4.14 Headquarter Interfere in Your Organization?
Variables Frequencies Percentage %
Inter department transfer 4 9.7
Funding 20 48.8
Transmission of electricity 17 41.5
Total 41 100
Source: Researchers Survey, 2016.
Table 4.14 above shows that four (4) respondent represented by 9.7%
agreed to staff transfer, twenty (20) respondent represented by 48.8% to funding,
while seventeen (17) respondent represented by 41.5 agreed to transmission of
electricity. The four (4) respondents attest to the fact that inter-department
transfer by the headquarter affect their performance because they pick the best
personnel to them thus leading to transfer of unskilled personnel to them, thus
leading to ineffectiveness and poor management. The twenty (20) respondents
believe that funding which is supposed to be made monthly or on annual basis is
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
lacking due to unnecessary delays. While the remaining seventeen (17)
respondents believe that transmission of electricity for distribution is not timely
dine by the headquarter, thus it accounts for their poor performance.
Table 4.15 Guideline are Provided to Check the Effective Performance of
Staff.
Variables Frequencies Performance
Training courses 21 52.4
Exam and interview 10 24.3
Supervisor subordinate
supervision
10 24.3
Total 41 100
Source: Researchers Survey, 2016.
Table 4.15 above shows that twenty one {21} respondents represented by 52.4%
are of the view that training courses enhance their performance in the
organization, while ten {10} respondents represented by 25.3% are of the view
that exam and interview are the best guidelines for staff performance while ten
{10} respondents represented by 24.3% are of the view that supervision and
subordinate supervisor is responsible for the effectiveness.
It’s evident that the majority of the respondent agreed that training courses
are the best guideless to check the effective performance of the staff of the
organization due to the technicality involve.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Table 4.16 political interference affects your activity
Variables Frequencies Percentage%
Yes 31 75.6
No 10 24.4
Total 41 100
Source: Researchers Survey, 2016.
Table 4.16 above shows that thirty one {31} respondent by 75.6% are of the view
that political interference affect the organizational activity towards achieving
meaningful socio-economic development, where ten {10} respondents
represented by 24.4% says that political interference does not affect their
performance. Thus autonomy should be given to the organization to enhance it
performance.
Statistical test of hypothesis one
Here, statistical of hypothesis one would be done in order to draw statistical
inferences. The statistical tool for the testing is chi-square of goodness of fit.
Formula For Chi-Square Test
X2=∑ (O−E )2E
Where ∑= summation
O= observed frequency
E= expected frequency
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
X2= chi-square
Degree of freedom (r-1) (c-1)
Formula for obtaining expected (E) frequency is as follows:
E= ∑R X ∑C ∑G
Where R is = total row
C= column total
G= grand total
Table 4.17 Observe Frequency
Responses Good
condition
equipment
Dilapidated
state of
equipment
Provision
of power
supply
Political
interference
Total
Yes 31 29 28 31 117
No 10 12 13 10 46
Total 41 41 41 41 164
Source: Researchers Survey, 2016.
4.18 Chi-Square Calculation
Fo Fe Fo-fe (fo-fe)2 ( fo−fe)2fe
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
31 5.125 25.875 669.5 131
29 5.125 22.875 570 111
28 5.125 25.875 523 102
31 5.125 25.875 669.5 131
10 5.125 4.875 47.2 4.6
12 5.125 6.875 47.2 9.2
13 5.125 7.875 62 12
10 5.125 4.875 24 4.6
X2=505.4
Source: Researchers Survey, 2016.
Expected frequency = total population
options = 418
Expected frequency= 5.125Degree of freedom= (r-1) (c-1)(5-1) (8-1) 4 × 7
=28
Calculated X2=505.4
Level of significant at 5% or 0.05 = 41.337
Decision rule:
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Since the chi-square calculated value of 505.4 is greater than chi-square critical
value 41.337, we reject the null hypothesis that is Ho at level of significant 0.05. it
is therefore concluded that the dilapidated state of PHCN equipment is not being
responsible for the poor performance.
Hypothesis Two
Hypothesis two of this research work state “inadequate is responsible for poor
performance”.
Table 4.15 Organization Adequately Funded
Variables Frequencies Percentage %
YES 12 29.3
NO 29 70.7
TOTAL 41 100
Source: Researchers Survey, 2016.
Table 4.8 above shows that twelve (12) respondent represented by 29.3 %
are of the view that the organization (PHCN) is adequately funded, while twenty
nine (29) respondent represented by 70.7 % believes that PHCN is not
adequately funded, thus they believe that there should be improvement in terms
of funding by the co-operate head quarters, while the twelve (12) believe
otherwise.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
It is evident that most of the respondents did not agree that the organization is
adequately funded, that is to say there is shortage of fund to the organization that
will enhance a meaningful socio economic development.
Table 4.16 Inadequate Funds Responsible for Poor Performance
Variables Frequencies Percentage %
YES 33 80.4
NO 8 19.6
TOTAL 41 100
Source: Researchers Survey, 2016.
Table 4.11 above shows that thirty three (33) respondents represented by
80.4% are of the view that the organization performance lies on the amount of
grants given by the head quarters. While eight (8) respondent represented by
19.6% are of the view that inadequate funds is not responsible for their poor
performance. Thus bad working condition can lead to poor performance of the
staff since their welfare in not taking off.
It’s evident that most of the staff in PHCN Barnawa business Unit agreed
that the organization cannot function effectively when there is no adequate funds
to maintain the equipment in the organization. Equipment like transformers, utility
vehicles, cables, meters etc.
Table 4.17 Funds Meant for Your Organization Properly Utilized
72
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Variables Frequencies Percentage %
YES 14 34.1
NO 27 65.9
TOTAL 41 100
Source: Researchers Survey, 2016.
Table 4.12 above shows that fourteen (14) respondent represented by
34.1% believe that the funds meant for the organization are properly utilized.
While twenty seven (27) respondents, represented by 65.9% are of the view that
funds meant for the organization (PHCN) are not properly utilized. They believe
that even with the head quarter, if the funds were properly managed within the
organization it will go along way in improving their performance towards
achieving a meaningful socio-economic development. While the fourteen (14)
respondents represented by 34.1% thinks that funds are properly utilized and will
not affect their performance toward achieving a meaningful socio-economic
development.
It is evident that majority of the staffs in PHCN Barnawa Business Unit are of
the view that the funds meant for the organization are not properly utilized due to
the corrupt practice of the management, they do divert funds meant for the
organization to their personnel account that is why the organization has not make
any meaningful in fact in achieving a meaningful socio-economic development.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Table 4.18 Failure to Pay Bills by the General Public Affects Your
Performance
Variables Frequencies Percentage %
YES 29 70.7
NO 12 29.3
TOTAL 41 100
Source: Researchers Survey, 2016.
Table 4.13 above shows twenty nine (29) respondents represented by
70.7% agreed that failure to pay bills by the general public affect that
performance, while twelve (12) respondents represented by 29.3% are of the
view that failure to pay bills by the general public affect their performance.
It’s evident that majority of the view that failure to pay bills by the general
public affect their performance. i.e the general public are in fun of taking
government things for granted for their selfish interest.
Table 4.19 Resource allocation compliment investment made by PHCN
Barnawa Business Units.
Variables Frequencies Percentage%
Agreed 10 24.4
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Strongly Agreed 27 65.8
Disagrees 4 9.8
Total 41 100
Source: Researchers Survey, 2016.
Table 4.17 above shows that Ten {10} respondent represented by 24.4% agreed
that resource allocation compliment investment made by the organization, twenty
seven {27} respondents represented by 65.8% strongly agreed that resource
allocation compliment investment made by the organization. While four {4}
respondents represented has no correction with investment made by PHCN.
It’s evident that most of the respondents strongly agreed that resources
allocation compliment investment moved by the organization because most of
the equipment are not taking to the right place needs.
Statistical test of hypothesis two
Here, statistical of hypothesis one would be done in order to draw statistical
inferences. The statistical tool for the testing is chi-square of goodness of fit.
Formula For Chi-Square Test
X2=∑ (O−E )2E
Where ∑= summation
75
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
O= observed frequency
E= expected frequency
X2= chi-square
Degree of freedom (r-1) (c-1)
Formula for obtaining expected (E) frequency is as follows:
E= ∑R X ∑C ∑G
Where R is = total row
C= column total
G= grand total
Table 4.20 observed frequency
Responses Organization
adequately
funded
Failure to pay
bills by the
general public
Inadequate
funds
Total
Yes 12 29 33 74
No 29 12 8 49
Total 41 41 41 123
Source: Researchers Survey, 2016.
4.21 Chi- Square Calculation
Fo Fe Fo-fe (fo-fe)2 ( fo−fe)2fe
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
12 6.833 5.167 26.7 3.90
29 6.833 22.167 419.37 71.9
33 6.833 26.167 684.7 100.20
29 6.833 22.167 419.37 71.9
12 6.833 5.167 26.7 3.90
8 6.833 1.167 1.36 0.199
X2=251.9
Source: Researchers Survey, 2016.
Expected frequency = total population
options 416
= 6.833
Degree of freedom= (r-1) (c-1)
(5-1) (6-1)
4 x 5=20
Calculated x2= 251.9
Level of significant at 5% or 0.05
Critical value = 31.41Decision rule
77
Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Since the chi-square calculated value of 251.9 is greater than chi-square critical
value 31.41 we reject the null hypothesis that is Ho at 0.05 level of significant it
is therefore “inadequate fund is not been responsible for their poor performance‘‘.
Ho: the inadequate fund is not responsible for their performance.
4.5 Major Findings of the Study
From the data presentation and analysis above the following are the
findings.
a. It shows that the majority of the respondents with eleven (11) years of
service and above made up the highest population and mostly
characterized by semi-skilled or unskilled or unskilled personnel.
b. It also shows that dilapidated equipment characterized by obsolete
machines is responsible for the poor performance towards the organization
goals and by extension hindering a meaningful socio-economic
development.
c. It also shows that poor funding on the part of government has been
militating against the performance of PHCN Barnawa Business Unit.
d. Finally it has also showed that, there are guidelines that have been put in
place to help in the assessment of each employee’s performance toward
organizational goals. Thus achieving meaningful socio-economic
development.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
CHAPTER FIVE
SUMMARY CONCLUSION AND RECOMMENDATION
5.1 Introduction
This chapter, the researcher presented what he has discovered during his
research work in respect of evaluation of the performance of Power Holding
Company of Nigeria ( PHCN). The researcher also recommended so many ways
in which organization can strategize to improve on their performance towards
meeting the needs and aspiration of its consumers especially in Barnawa
Business Unit.
5.2 Summary
In summary, it is deduced that the performance of PHCN Barnawa
Business unit is dependent on a variety of factors, mostly from external
environment.
The analysis of data revealed that the poor state of the equipment of
PHCN grossly accounts for its performance which has not been sufficient and
adequate over the years.
Also, that the general public behavior especially non-payment of bills and
vandalization of their equipment has hampered their performance.
Lastly, it is discovered that lack of technical expertise has also contributed
to the poor performance of the PHCN Barnawa Business Unit.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
5.3 Conclusion
An analysis has been made in this research to evaluate the performance of
PHCN Barnawa Business Unit in distributing electricity in Kaduna metropolis.
The research made analysis of data mostly in the form of questionnaire
administered to the staff of the Power Holding Company of Nigeria (PHCN)
Barnawa Business Unit responses to the questionnaire which have been
presented in simple tables and interpreted in percentages have validated most of
the view of the staff of PHCN Barnawa Business Unit in distributing electricity to
the locality.
The analysis revealed that PHCN Barnawa Business Unit has great impact
in determining the level of commercial activities; this is informed by the quantity
of electricity supply, the organization was able to distribute which is dependent
on their equipments performance needed to stand the pressure of the demand.
This led to the acceptance of hypothesis one which states that dilapidated PHCN
equipments has been responsible of its poor performance over the years.
It was discovered that PHCN Barnawa Business Unit, as a sub-system is
been influenced by some external factors such as funding by headquarters or
parent head. This factor to a large extent determines their level of performance.
Responses to the questionnaire also revealed that the general public acts
of vandalism and non-payment of bills thwarted the PHCN performance.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Negative vices such as corruption to a large extent have also accounts for the
poor performance of PHCN Barnawa business Unit.
It is hoped that the analysis contained in this chapter will assist the PHCN
Barnawa Business Unit in improving on their performance, so as to effectively
and efficiently distribute electricity to meet the entire demands of the populate.
5.4 Recommendation
The researcher of this project work, having successfully analyzed and
presented the findings of this research, thereby recommend that.
1. PHCN Barnawa Business unit, should upgrade their equipments to suit the
modern technological growth and advancement; this will assist them in
meeting the demand of the general public. There should be direct link
between Transmission Company and PHCN Barnawa Business unit rather
than being dependent on headquarters supply. This will erase the
unnecessary delay and influence by the headquarters.
2. Autonomy should be given to PHCN as a whole so that political
interference will be erased. Technical experts should be recruited such as
engineers, technicians, electricians and computer genius for this will
enhance their productivity and performance since most of their service
involves field work rather than paper work.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
3. PHCN BARNAWA Business Unit, should be given some rights and powers
to source for external funds rather than depending solely on allocation from
parent head and government which is not timely adequate.
4. Even though effort has been made by the researcher to research on the
performance of PHCN Barnawa Business Unit, recommend that more
scholars and students should venture into this field so as to develop more
understanding of the operations, functions and importance of the
organization.
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
BIBLOGRAPHY
Accounting Dictionary “Dictionary of Accounting terms 2005 Administration Abuja; shaereef”
Anyanwu J.C etal (1997)“The structure of the Nigeria Economy: Onitsha Yeb Ltd”
Anyebe A.A (2008)“Reading in Development”
Ariyo Adeola (2009)“PHCN, The way Forward University of Lagos”
Chaji Shehub (2009)“Still on the Ban of using generators”
Cole (1978)“Management and theory practices, Guerncy press; Channel Island: London”
Harvey Campbell (2004) “Business Dictionary”
Ladan Isah (2009)“Public Administration in Nigeria Seminar paper” Nigerian Privatilization Journal Programme March 2007
Ojo F. (1998)“Personnel management theories and issues, Lagos Allied Emart.com”
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
AppendixDepartment of Public Administration, Ahmadu Bello University,Zaria,Kaduna State.
Dear Respondent,
REQUEST FOR FILLING OF QUESTIONNAIRE
This questionnaire is designed for a research project titled “Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State ”.
The research is being undertaking in partial fulfillment of the requirement
for the award of Bachelor of Science in Public Administration, Department of
Public Administration, Ahmadu Bello University, Zaria .
Please kindly complete this questionnaire as honestly as you can by
ticking where necessary. Your opinion and information supplied will be used
purely for academic research purpose only and such information will be treated
with utmost confidentiality.
Thank you.
Yours faithfully,
Mohammed Aisha Abubakar
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
SECTION A
(BIOGRAPHIC DATA)
Please tick [√] where it is appropriate
1. SEX?
MALE [ ] FEMALE [ ]
2. AGE?
18-30YRS [ ]
31-40YRS [ ]
41-50YRS [ ]
51 and above [ ]
3. Academic
WASSE and below [ ]
OND/NCE [ ]
HND/Bsc [ ]
M.sc/PHD [ ]
4. Marital status
Single [ ]
Divorced [ ]
Widow [ ]
Married [ ]
Separated [ ]
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Widower [ ]
5. How long have you been serving with this organization?
2 – 5yrs [ ]
6 – 10yrs [ ]
11 and above [ ]
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
SECTION B
Hypothesis One
Ho: The Dilapidated state of the PHCN Equipment is not being responsible for
their poor performance.
H1: The Dilapidated state of the PHCN Equipment is being responsible for their
poor performance.
1. Is your equipment in good condition?
Yes [ ]
No [ ]
2. Is the dilapidated state of the PHCN equipment responsible for their poor
performance?
Yes [ ]
No [ ]
3. Is your organization effective in discharging their duties?
Yes [ ]
No [ ]
4. Does your organization provide supply of electricity?
Yes [ ]
No [ ]
5. Does the headquarter interfere in your performance through inter
department transfer?
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Inter-department Transfer [ ]
Funding [ ]
Transmission of Electricity [ ]
6. Does political interference affect your activity?
Yes [ ]
No [ ]
7. Is training courses, exams and interviews and superior subordinate
supervisor, guideline provided to check the effective performance of staff?
Training Courses [ ]
Exam and Interview [ ]
superior subordinate supervisor [ ]
Hypothesis Two
Ho: The inadequate fund is not responsible for their poor performance
H1: The inadequate fund is responsible for their poor performance
8. Is the inadequate funds responsible for your power performance?
Yes [ ]
No [ ]
9. Are the funds meant for your organization properly utilize?
Yes [ ]
No [ ]
10. Does failure to pay bill of the general public affects your performance?
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Performance of PHCN in the Socio-Economic Development of Kaduna South Local Government of Kaduna State
Yes [ ]
No [ ]
11. Does the PHCN have sufficiency fund available?
Yes [ ]
No [ ]
12. Does the resources allocation complement investment made by PHCN,
Abuja?
Yes [ ]
No [ ]
13. Is the current strength of PHCN stable?
Yes [ ]
No [ ]
14. Is your organization adequately funded?
Yes [ ]
No [ ]
90