THE IMPACTS OF ORGANIZATIONAL GOVERNANCE ON THE ACHIEVEMENT OF ITS GOALS
TABLE OF CONTENT
CHAPTER ONE: INTRODUCTION
- Background Of The Study – – – – – 1
- Statement Of The Problem – – – – – 5
- Objective Of The Study – – – – – – 6
- Research Questions – – – – – – – 7
- Research Hypothesis – – – – – – 8
- Significance Of The Study – – – – – 10
- Scope Of The Study – – – – – – – 11
- Limitation Of The Study – – – – – – 11
- Definitions Of Terms – – – – – – 12
CHAPTER TWO: REVIEW OF RELATED LITERATURE
- Brief Introduction – – – – – – – 14
- Conceptual Framework – – – – – – 14
- Theoretical Framework – – – – – – 26
- The stewardship Theory – – – – – 27
- The Stakeholder Theory – – – – 29
- The Agency Theory – – – – – – 31
- Differences In Viewpoint – – – – – 33
- Organizational Governance and Organizational Performance.
- Principles Of Organizational Governance – – – – 36
- Responsibility Of The Board Of Directors – – – 38
- Mechanisms And Controls Of Organizational Governance 42
- Styles Of Organizational Governance – – – – 46
- Benefits Of Organizational Governance – – – – 49
- Summary – – – – – – – – 51
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY
- Brief Introduction – – – – – – – 53
- Research Design – – – – – – – 53
- Area Of The Study – – – – – – 55
- Population Of Study – – – – – – 55
- Sample Size And Sampling Techniques – – 56
- Method Of Data Collection – – – – – 56
- Description Of Instrument For Data Collection – 57
- Method Of Data Analysis – – – – – 58
- Decision Rule – – – – – – – 59
CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION
4.1. Brief Introduction – – – – – – – 61
4.2. Analysis of Questionnaire Administered – – – 61
4.3. Analysis of Questionnaire According To Research
Questions – – – – – – – – – 62
4.4. Test of Hypothesis – – – – – – – 74
4.5. Decision Rule. – – – – – – – – 77
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
- Brief Introduction – – – – – – – 79
- Summary Of Findings – – – – – – 79
- Conclusion Of Study – – – – – – – 81
- Recommendations – – – – – – – 82
1.1. Background of the Study
The background of organizational governance dates back to the 19th century when state corporation laws enhanced the rights of organizational boards without unanimous consent of shareholders. They did it in exchange for statutory benefits such as appraisal rights in order to make organizational governance more efficient. Recently, organizational governance becomes a hot topic among a wide spectrum of people, government, industry operation, directors, investors, shareholders, academics and international organization to least but a few. Today’s world has seen that organization transparency, financial disclosure, independency, board size, board diversity and among others is the corner stone of good organizational governance practices. These variables are in the main agenda of most meetings and conferences worldwide including the World Bank, International Monetary Fund (IMF) and Organization of Economic Co-operation and Development (OECD).
Organizational governance is a number of process, policies, law, and institutions which impact on the way a company is controlled. An important theme of organizational government is the nature and extent of accountability of people in the business and mechanism that try to decrease the principles agent problems. It also include the relationship among the many stakeholders involved and the goals for which the corporation is governed; An essential condition for the survival of a company or more generally of an organization lies on the ability of its members to act reliably and efficiently to achieve the objectives of the organization in a very y small business. The substance co-ordination of behavior can be achieved in numerous ways. The manager can verify directly that the tasks are performed on the way he thinks which is suitable. The issue of organizational governance is thereby complete with completed issues connecting ideal institutional mechanism effective monitoring and balancing of competing interest of stakeholders (both internal and external) to the organizational governance structure (Williamson, 2002). Today, organizational governance is complex and mosaic consisting of law registration.
According to Sir Adrian Cadbury (2000), the organizational governance framework is there to encourage the efficient use of resources and equally for required accountability for the stewardship of those resources.
According to Strine (2010) defined organizational governance as putting in place the structures, process and mechanisms that insure that the firm is directed and managed in a way that enhances long-term shareholders value through accountability of managers, which will then enhance an organization performance.
OECD(2004), Defines organizational governance as the system by which business corporations are directed and controlled in favor of all the stakeholders. Currently, many country leaders all over the world has increased concern over organizational governance due to the increase of reported cases of frauds, inside trading agency conflict among other corporations.
In most recently, researchers worldwide have grown interest on organizational governance and its impact on organizational goals. The study investigates the impact of organizational governance on organizations in order to assess the significant of organizational governance in all organizations. This is because organizational governance is considered to have significant implications for the growth prospect of an economy. Good organizational governance practices are regarded as important in reducing risks for investors, attracting investment capital and improving the performance of organizations. Organizational governance is considered the general framework for supervisory procedures, and control on board of directors: in order to ensure procedures correctness related management control process, executive’s management, and correctness of measures to be objective. This ensures maintaining shareholders rights through strengthening of the organization financial performance. One of the main reasons that led to major companies collapse is department complicity, weak structures, weak control and follow-up units, and lack of disclosure and transparency required to enhance the entity of the organization and main stakeholders, which led to deficiencies in organizations financial performance.
Organizations cannot function well if sound organizational governance is not in place. As a result, every organization now has strong interest in ensuring that there is effective organizational governance at every organization in an increasing open environment. Organizational governance therefore refers to the processes and structures by which the business and affairs of institutions are directed and managed in order to improve long-term shareholders values by enhancing organizational performance and accountability while taking into account the interest of other shareholders.
1.2. Statement of the Problem.
In the past, so many organizations in Nigeria have been involved in unethical practices, which put the credibility of their organizational image at doubt. As such, communication company just like other network communication company have been constraints with issues arising from customers complaint of network quality are frequent cuts of fiber networks which links the cell sites. Poor governance practices led to the collapse of so many organizations in Nigeria. Hence, the need to study organizational governance and its impact on the achievement of organizational goals arose.
1.3. Objective of the Study.
Generally, this seeks to explore the relationship between internal and external organizational governance and its impact on organizational goal. However, the specific objectives are:
- To ascertain whether organizational governance affect the achievement of organizational goals.
- To determine empirically if there is any significant relationship between the level of organizational governance disclosure and its impact on the achievement of organizational goal.
- To help in bringing a cordial relationship between senior management and junior staff employers.
- To know if management helps to put corrective measure for employees.
1.4. Research Questions.
The study sought to provide answers to the following research questions formulated to serve as a guide to the research work. Thus, the following research questions were asked:
- Does organizational governance affect the achievement of an organizational goal?
- What is the significant relationship between the levels of achievement of organizational goal?
- Is there any possible means of bringing a cordial relationship between the senior management and the junior staff employees?
- Do management helps to put a corrective measure for the employees?
- Does the internal and external organizational governance controls the mechanism of any significant in an organization?
- Does the management give employees the opportunity to discuss together on the best way to carry out an assign task?
- Does appraisal helps to motivate you in doing your best and improving productions?
- Are your ideas welcomed at any time of making decisions by your supervisors?
1.5. Research Hypothesis
Hypothesis is a testable, tentative, and probable explanation of the relationship between two or more variables that creates a state of affairs or phenomenon. It is an assumption whose validity, is to be established. Hypothesis could be divided into two namely: The
- Null hypothesis(H0)
- Alternative hypothesis(H1)
Null hypothesis states that no difference or no relationship exist between the variables
Alternative hypothesis is the proposition that may be accepted if the statistical null hypothesis is rejected by the sample evidence. It specifies the condition which will hold if the null hypothesis does not hold.
In other to obtain the purpose of this study, the researcher formulates the following hypothesis using Null (H0) and Alternative hypothesis (H1)
H0.There is no effect of organizational governance on the achievement of organizational goal.
H1.There is effect of organizational governance on the achievement of organizational goal.
H0.There is no significant relationship between the level of organizational governance disclosure and its impact on the achievement of organizational goal.
H1.There is a significant relationship between the level of organizational governance disclosure and its impact on the achievement of organizational goal.
1.6. Significance of the Study.
The significant of this study also means the importance of the study. And it is divided into three. They are of importance in the following areas. Which are?
- Organizations: The desire of every employer or organization itself is optimum productivity. This can only be achieved when the employees work at their best. And the only factor which can help the organization achieve the set goal is “organizational governance”.
- Environment: The study will also serve as a reference material to other researchers and those of the outside world to extract key information needed to carry out their study.
- Researcher: Interestingly, the research work will help the researcher in partial fulfillment of the requirement for the award of National Diploma in Business Administration/management.