Full Project – Delegation and employees performance in the private sector

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Chapter One

INTRODUCTION

1.1 Background to the Study

Delegation is necessary for an organization to exist. Just as no one person in an enterprise can do all the tasks necessary for accomplishing a group purpose, there is a limit to the number of persons managers can effectively supervise and make decisions for. Once this limit has been passed, authority must be delegated to subordinates, who will make decisions within the area of their assigned duties.

It is impossible for any person to execute all the work in an organization, to achieve the objectives of the organization. Similarly, in a growing concern also, a single person could not be vested with the entire decision-making authority. So, the superior assigns duties or responsibilities to his subordinates and also delegates necessary authority to them. Delegation is a process, which enables a person to assign a work to others and delegate them with adequate authority to do it. Delegation is the dynamics of management. Alazailh, (2018)

In organized private sector, delegation is one of the modern trends practiced by managers. Its function stands out contributing and increasing the level of motivation of employee and achieving positive returns for an organization with a manager and an employee with a customer both. On the level of an organization, it achieves competitive advantage, knowledge inventory, increases the level of performance and speed in finalizing tasks effectively. On the level of manager, it alleviates functional burdens, gains employee’s satisfaction and builds cooperation and the trust between manager and employees giving a chance for manager to have full-time for realization of more important work AL-Matouaa, (2017). So, it reduces physical and intellectual efforts exerted by manager and other employee. On level of an employee, it works on achieving functional empowerment, constructing alternative and leadership, making employee feel self-confidence and motivation for excellent in performance.

On the level of customer, it meets the needs of customers rapidly, delivering or providing the service will not be delayed due to delegation. Giving the customer a higher level of car and attention, building customer’s perceived and creating loyalty and mutual respect for an organization and production in which the organization produced. Lutgans, and Hodegtts, (2018)

It can be said that method of delegation becomes inevitable issue for every organization whether in private sector. It is not optional due to many reasons has connected and brought developments and changes to the organizations including its size and diversity of its products, multiplicity of its products and spread of its breaches in different geographical zones and different local, regional and international levels. Managers have been imposed for the necessity to have a way for helping them in facilitating business affairs and alleviating the burdens in which they are not tolerated, implemented and controlled by a manager.

From other hand, different social and environmental transformations at organization have been changed since of classical school that was differentiated by centralism and subjecting to orders of managers without reluctance. Implementing processes and procedures become more flexible and due to employees. Banker et al (2017) said that individual work performance can be measured by; productivity, work quality and flexibility of work.

The term “employee performance” signifies individual’s work achievement after exerting required effort on the job which is associated through getting a meaningful work, engaged profile, and compassionate colleagues/employers around (Hellriegel, Jackson, & Slocum, 2016; Karakas, 2019). In order to utilize HR fully and augment organizational success, effective employee performance management system is imperative for a business organization. The performance driven objective is expected to be aligned with the organizational policies so that the entire process moves away from being event-driven to become more strategic and a people-centric perspective (Jena, & Pradhan, 2014; London, 2016; Mone, & London, 2019).

Why do some organizations perform better than others and get listed as most preferred employer of the year? Findings have suggested for deploying lucrative incentive schemes for motivating the employees toward meaningful job participation (Friedman, & Sunder, 2016; Roth, 2015; Smith, 2017; Sprinkle, 2016). At the same time, there are sufficient pragmatic evidences showing that financial offers have varying effects and may not be of much significance for escalating employee performance (Bonner et al., 2017; Camerer, & Hogarth, 2015; Gupta, & Shaw, 2014). This is due to the changing nature of work and rise of knowledge workers in post-globalization, which has defied the familiar views of individual work performance (Frese, & Fay, 2018; Ilgen & Pulakos, 2014). The question that arises over here is, if monetary incentives are incongruent on one’s effort and performance, then what are the other associated behavioral factors that influence enhancing employee performance. At the same time, with the changing organizational requirements, the ability to adapt stands as one of an important measure to assimilate in performance.

1.2 Statement of the Problem

Delegation may not be effective in a situation where discipline, fairness and justice are absent. Discipline underlines the concept within which individuals are expected to conform to established codes of official conduct and operational roles. Delegation thrives in the ideal situation where employees exercise self-discipline, but in practice; managers have to exercise their authority to achieve varying degrees of discipline and control. In a situation of delegation, fairness and justice should be seen, exercised and recognized by all employees. Delegation, can also suffer a heavy blow if it is done without regard to competence, education, knowledge and personality that must be borne in mind when allocating jobs or contemplating delegation. Delegation is often misunderstood, underestimated or even confused with decentralization. Delegation of authority is concerned with whom gets authority for decision-making, while decentralization is concerned with the level of the organization at which decisions are made, even though decentralization cannot be effective without delegation.

Delegation as an important organization principle does not imply shirking responsibility, abdication of responsibility or passing the buck. Unfortunately, some managers and chief executive officers (CEOs) experience difficulty with delegation for many reasons, such as their tendency to be lazy and to spend time on easy tasks, natural fear associated with tackling more complex tasks, which is instinctively cloaked by becoming absorbed in small details, thus leaving no time to spare, feelings of job insecurity which are compensated by refusal to pass on authority in case a subordinate proves himself or herself to be more capable, and lack of trust in subordinates to handle higher level responsibilities. Lack of time management hinders efficient delegation and management decision-making. To be on his strength and the strength of subordinates and superiors the manager must keep an eye on time, concentrates on a few major areas where very superior performance will bring about very outstanding results, and makes decisions as quickly as is practically possible. Another problem of effective delegation is on weak leaders who decentralize authority to lower levels without delegating any authority to any individual. This makes decision-making and control extremely difficult. For example, a headless committee in Dangote Group Ltd composed by manager will waste all the time without achieving the required results.

The results will be accumulation of business affairs on customers and wasting time and effort of employees and customers. The question of what is the impact of delegation and employee performance due to efficiency, effectiveness and empowerment has been emerged. It was base on the backdrops that the researcher chose to examine the delegation and employee performance in the private sector in Rivers State.

1.4 Objectives of the Study

The major aim of’ this study is to examine the relationship between delegation and employee performance. The specific objectives of the study are:

To determine the relationship between assignment of duties and employee performance
To determine the relationship between accountability and employee performance
To determine the relationship between delegation of authority and employee performance

1.5 Research Questions

What is the relationship between assignment of duties and employee performance?
What is the relationship between accountability and employee performance?
What is the relationship between delegation of authority and employee performance?

1.6 Research Hypotheses

H0₁: There is no significant relationship between assignment of duties and employee performance.

H0₂: There is no significant relationship between accountability and employee performance. H0₃: There is no significant relationship between delegation of authority and employee performance.

1.7 Significance of the Study

This study will be useful to members of the public and staff of the Dangote Group Ltd

The findings and recommendations of this study will enable the managers to know how delegation will enhance the employee performance.

This study will also be useful for academic purpose by other scholars. The study will add to the body of knowledge on delegation and employee performance.

These findings of this study will be useful to government and other organizations because they will use the recommendations for effective policy formulation and implementation.

1.8 Scope of the Study

The study focused on investigating the relationship between delegation and employee performance. Literatures on both concepts and dimensions were review.

Content Scope: The geographical scope: this study covers only Dangote Group Ltd in Port Harcourt, Rivers State.

Unit of Analysis: For the purpose of this study, the unit of analysis is at the micro level, that is the individual level (i.e, the employee of Dangote Group Ltd).

1.9 Limitations of the Study

Some major limitations encountered in the research are as follows:

Time constraint: This played a major role in the research of this project, because there was no much tune for to fully conduct effective research. Lack of corporation from managers and employees to provide adequate information based on the research. To be able meet top-level managers who will provide quality and reasonable information has to be booked which a time never materialized.

Financial constraint: It is one major limitation because the cost of transportation in the city has increase and when booked meeting do not materialized transport paid is wasted. Based on the research the information gathered are from questionnaires and interviews middle from level managers, lower level manager and employees.

Covid-19 Protocols and Guidelines: This is the era of pandemic that has negatively impacted on the lives and businesses such as Dangote Group Ltd. Protocols adherence was a big challenge to the researcher as to gain access to conduct a questionnaire.

1.10 Operational Definition of Terms

Accountability: is considered to be the key to attain superiority in terms of what is performed.

Assignment of Duties: It can be characterized as an arrangement of tasks, occupations and capacities that is official or business or relating to any other form of responsibility an individual can genuinely request.

Contextual Performance: this refers to the employee behaviour that support the organizational, social and psychological environment in which the central job task and performed.

Delegation: It is a process, which enables a person to assign a work to others and delegate them with adequate authority to do it

Delegation of Authority: Waiving some administrative levels on powers and authorities for lower functional levels to help them in completing quests in order to providing services easily and rabidly for customers and benefices.

Employee performance: this refers to the ability of an employee to ensure that job assigned to him/her is done in congruent with the organizational goals.

Task Performance: this refers to the proficiency with which an employee performs central job task.

Quality Performance: the quality of work the employees put out, but is the most difficult one to define also.

1.11 Organizational Profile of Dangote Group Ltd

Dangote Group Ltd was established as a small trading firm in 1977, the same year Dangote relocated to Lagos to expand the company. Today, it is a multi-trillion-naira conglomerate with many of its operations in Benin, Ghana, Nigeria, and Togo. Dangote has expanded to cover food processing, cement manufacturing, and freight. The Dangote Group also dominates the sugar market in Nigeria and is a major supplier to the country’s soft drink companies, breweries, and confectioners. The Dangote Group has moved from being a trading company to be the largest industrial group in Nigeria including Dangote Sugar Refinery, Dangote Cement, and Dangote Flour.

In July 2012, Dangote approached the Nigerian Ports Authorities to lease an abandoned piece of land at the Apapa Port, which was approved. He later built facilities for his flour company there. In the 1990s, he approached the Central Bank of Nigeria with the idea that it would be cheaper for the bank to allow his transport company to manage their fleet of staff buses, a proposal that was also approved in Nigeria today, Dangote Group with its dominance in the sugar market and refinery business is the main supplier (70 percent of the market) to the country’s soft drinks companies, breweries and confectioners. It is the largest refinery in Africa and the third largest in the world, producing 800,000 tons of sugar annually. Dangote Group owns salt factories and flourmills and is a major importer of rice, fish, pasta, cement, and fertilizer. The company exports cotton, cashew nuts, cocoa, sesame seeds, and ginger to several countries. It also has major investments in real estate, banking, transport, textiles, oil, and gas. The company employs more than 1 1,000 people and is the largest industrial conglomerate in West Africa.

Dangote has diversified into telecommunications and has started building 14,000 kilornetres of fibre-optic cables to supply the whole of Nigeria. As a result, Dangote was honoured in January 2009 as the leading provider of employment in the Nigerian construction industry.

Our Vision

To be a global leader in cement production, respected for the quality of our products and services and for the way we conduct our business.

Our Mission

To deliver strong returns to our shareholders by selling high-quality products at affordable prices, backed by excellent customer service.

To help Nigeria and Other African countries towards self-reliance and self-sufficiency in the production of the world’s most basic commodity, by establishing efficient production facilities in strategic locations close to key growth markets. To provide economic benefits to local communities by way of direct and indirect employment in all countries in which we operate.

Our Values

Customer Service: As a world-class organization, we understand that we exist to serve and satisfy our customers. Accordingly, our customer orientation reflects intimacy, integrity and learning.

Entrepreneurship: We continuously seek and develop new business, employing state- of-the-art methods to retain our market leadership.

Excellence: We are a large organization, working together to deliver the best products and services to our valuable customers and stakeholders. To achieve this, we demonstrate teamwork, respect and meritocracy.

Leadership: We thrive on being leaders in our business, markets and communities. To drive this we focus on continuous improvement, partnership and professionalism.

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