Full Project – Strategies for Improving Managerial Effectiveness in the Brewery Industry

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CHAPTER ONE

• INTRODUCTION

1.1  BACKGROUND OF STUDY

In every organization improving managerial effectiveness is a major factor in the successful achievement of the stated objectives in organization. The success of a business does not only depend on the amount of capital invested but more on the planning organizing directing and controlling functions carried out by managers and to coordinate human and material resources for the purpose of efficiently and systematically achieving the stated objectives of the organization. There are some skill required of managers to be able to carry out their duties and functions; these include conceptual human relations technical communication diagnostic and analytical skills. Motivation is an essential requirement for improved workers performance; it is simply done so as to make the employee attain the desired goals of the organization.

Every manager would naturally want to see his employee’s efficiency at all time. Hard working does not always on its own thus it is expected that the manager has to do something to stimulate it. Motivational techniques include recruitment job enrichment, job rotation, job delegation, leadership style, welfare, communication and monetary rewards. Also influencing the performance of workers is the leadership adopted by managers in performing managerial functions. The leadership styles are autocratic, democratic different condition and as the situation may warrant.

Management ensure that the activities of an organization are properly performed and that resources are effectively and efficiently used to realize its goals hence management is defined as the process of combining and utilizing organization resources to achieve stated goals.

STUDY ORGANIZATIONS

• CONSOLIDATED BREWERIES AWO-OMAMA

Consolidated brewery Plc in Awo-Omama in Imo State is the producer of “33” export large beer. The head office is in Lagos. The plant at Awo-Omama was formally called Eastern Breweries limited. This industry started production of “33” Large Beer in 1979 and 1984 respectively.

The company’s accounting system computerized. The heads of accounts and audit departments are charted accountants; it has also consistently won outstanding quality awards from reputable organization in Nigeria.

Consolidated breweries Plc have many in its employment. Through the provision of employment opportunities, social amenities and various types of sponsorships the company generates a lot of economic activities and transformed the social life of the Awo-Omama community for the better.

The company’s annual turnover is about two billion naira (N2 billion) with the active support and assistance of highly reputable French Company LES BRAG SERIES CT GLA IRES INTERNATIONAL (B G I) as technical partners, the company can boast of modern technology in its outfit.

• GUINNESS NIGERIA PLC

Nigeria has been rated the second largest consumer of Guinness product following the growing demand for the company’s product leading to the establishment of more breweries Nigeria, according to Mr. R. Alabi the Chairman board of directors of Guinness Nigeria Plc is second only to Ireland. This was disclosed last Wednesday when Govnor Orji Uzor Kalu of Abia State Commissioned the multi million naira Guinness brewery at Aba in Abia State. Guinness Nigeria Plc is the producer of Guinness stout and four other products the latest being Gordon spark. The brewery, which was last year bought from its former owners, Dubic brewery, was refurbished with about N500 million it is the third location of Guinness Nigeria Plc.

Guinness Nigeria Plc has other brewery plants at Ikeja, Lagos, Benin city and now Aba. The Aba brewery according to the managing director of Guinness of Nigeria Plc Mr. Keith Richard will for now focus on the production of malta Guinness essentially to services the northern customer of the company.

Speaking at the commissioning of the brewery Mr. Richard noted that the company has excellent relationship with the host communities because of strong policy of cordial community relations of the company adding that “we will continue to invest. On the people with whom we work “Chief Alabi assured the gathering that the Abia brewery “will be the pride of Nigeria as it will soon begin to produce all the products of the Guinness family he noted with the commissioning of the Aba brewery Guinness has invested about N42 billion in the Nigeria economy. According to the chairman, the brewery has the capacity to produce 400,000 hectolitres of malta Guinness per day, a quantity that can load ten tankers N500, most of whom were drawn from the surrounding community the management of the company said it is determined to help the Nigeria economy to grow and stabilize in every sense.

Guinness Nigeria is a member company of diageo plc the world’s leading premium drinks business Guinness was listed on the Nigeria stock exchange (NSE) in 1965 and has an authorized share capital of N1 billion with one 60,000 shareholders. The company built it first brewery in Ikeja in 1962 and later built another brewery in Benin in 1970 to produce harp large beer. The facility was expanded to accommodate a second stout brewery commissioned in 1978. A fourth Guinness brewery was built in Ogba in 1982 to brew harp large beer.

This too was expanded to include Guinness stout in order to further increase capacity to meet the growing demand for its products, the company in 2000 commissioned another brewery at Aba, Abia State. Today our portfolio includes acclaimed market leader such as our flagship brand Guinness foreign Extra stout, Guinness extra smooth, malta Guinness. Harp large beer Gordon’s spark and semiofficial.

• STATEMENT OF THE PROBLEM

It is worthy to know that some breweries that started on popular note have become unpopular due to managerial ineffectiveness not withstanding on that the industry is booming. Though it is fast growing yet they are faced with challenges which tend to limit adequate return on capital investment some of these have to do with poor management, lack of market research, customers complain of unsatisfaction and ineffective planning. Some of the problem identified as affecting managerial effectiveness includes poor managerial skills; poor/lack of planning inadequate resources control which result to wastage of resources and increase in cost, Due to these problems we therefore ought to research on the strategies to improve managerial effectiveness in brewery industry.

• PURPOSE OF THE STUDY

The purpose of this study is to identify how managerial effectiveness can be improved in selected breweries in Abia and Imo State.

• To identify factor militating against improving managerial effectiveness in selected breweries industry in Imo and Abia States.
• To ascertain whether poor managerial skill negatively affect management effectiveness
• To identify how poor/lack of planning and inadequate resources control affects managerial effectiveness in selected breweries.
• To make recommendation on the best ways to improve managerial effectiveness.

• SIGNIFICANCE OF THE STUDY

This study will be useful to both current and future managers to properly apply the strategies in other to improve their managerial effectiveness. The knowledge obtained from this study will aid them to improve their managerial effectiveness.

The study will also be useful to the organization and the society at large in the sense that the knowledge obtained form this study will help them to know the available means of improving managerial effectiveness.

Hence government or any person who is in business or managing an industry may use ideas from this study to formulate business policies that will enhance the growth and development of national economy. Furthermore, it will add to the existing wealth of knowledge accumulated so far on the subject matter.

• RESEARCH QUESTIONS

In order to understand the strategies for improving managerial effectiveness in an industries the following research question were used.

• What are the factors militating against consolidated brewery and Guinness brewery?
• How does poor/lack of planning affect the firms operation?
• How does poor managerial skill affect the operation of industries in both state
• How do time and cost management affect managerial effectiveness?
• What is the style of leadership applied in these firms?
• Does the leadership style affect productivity?

• RESEARCH HYPOTHESES

A hypothesis is an assumption or stated claim about a population and its characteristics below are hypothesis to guide this study

A Ho poor/ Lack of planning do not lead to attainment of organizational objectives

Hi: poor/lack of planning leads to attainment of organizational objectives

Ho: poor managerial skin has no significant negative effect on the operations of the selected breweries

Hi: Poor managerial skill has significant negative effects on the operations of selected breweries

Ho: Time and cost management has no significant positive effects on managerial effectiveness.

Hi: Time and cost management has significant positive effects on managerial effectiveness.

• SCOPE/DELIMITATION OF THE STUDY

In this study, emphasis is placed on the strategies to improve managerial effectiveness in selected breweries in Abia and Imo and State. This study was only based on breweries in Imo and Abia State and did not extend beyond consolidated breweries Awo-Omama and malta Guinness Aba Abia State. This study will give an depth discussion on strategies to improve managerial effectiveness in consolidated and Guinness breweries.

• LIMITATION ON THE STUDY

Due to some limitation such as time constraints and lack of funds the research could not give this research a wide range of study.

Lack of fund contributed immensely to limit the extent to which data are collected in term of transportation cost to various data gathering points printing the questionnaires as well as typing the draft and final production work was not done with ease.

• DEFINITION OF TERMS

Strategies: This is any part of plan done which is meant to achieve a particular purpose or to gain an advantage.

Improvement: This can be defined as a change in something that makes it better (i.e something being better than it was before).

Effectiveness: This means producing the result or out put needed in the organization, producing successful result.

Planning: To devise a program of action for the selection of objectives and their means of attainment

Resources: A supply of something that an organization or person can use especially to increase their wealth.

Management: It is getting things done through other people.

It is a social technical process that utilizes resources and change human and non human behaviours in the desired direction in order to elicit contribution that will accomplish the objective of the organization.

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Full Project – Strategies for Improving Managerial Effectiveness in the Brewery Industry