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ROLE OF MANAGER IN SMALL SCALE BUSINESS ENTERPRISE

ABSTRACT

This research examines the Role of Manager in Small Scale Business Organisation with special reference to Top Paint Limited Lagos. The research adopted a survey research design. A well structured questionnaire was designed and administered to respondents. A sample size of Twenty (20) was drawn from the population of study. The sampling was made based on a simple random sampling technique. The data gathered were presented in tables and analysed with simple percentages. The hypothesis formulated was analysed with the use of Chi-Square technique. It was concluded that - there is significant relationship between manager impact and Small Scale Organisation Performance. Recommendations were proffered that; It is of value for the organization to employ a well motivated and season managers at all levels of management, organizations should merge the right skill with right roles and duties, in order words, the right person should be engaged in doing the right job at the right time. It is also very important that management reward performance to encourage the mangers to use their skill to maximum capacity in attaining the objectives of the firm.

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND TO THE STUDY

The manager is the life of the organization. The manager ensure that the organization perform to expectation, he must also ensure that the firm archive it purpose and goals, to do this the manager perform certain roles and duties ,this include organizing controlling, directing coordinating and leading. The manager may be the entrepreneur, sometimes he may not be, however, at all-times the manager must aggregate the resources of the firm to attain the firm’s goals and objectives of the firm. The manager to be able to carry on this duties he must posses certain skills this include interpersonal skill, people skill, Conceptual Skills, People Skills, Technical Skills etc. Some managers demonstrate these skills very strongly while others only demonstrate it fairly. There are basically three levels of management within the business organization; these include the top management, the middle management and the lower management. The various skills and duties of the manager is performed at different level of management.This study explore the roles, the skills and the functions of the manager of small scale business at various levels of the organization. It also explores the performance contribution of each of the skills and roles to the health and goals attainment of the organization.

1.2   STATEMENT OF PROBLEM

Most SMEs in Nigeria die within their first five years of existence, a smaller percentage goes into extinction between the sixth and tenth year while only about five to ten percent survive, thrive and grow to maturity. Many factors have been identified contributing to this premature death of SMEs. Key among them include: insufficient capital, irregular power supply, infrastructural inadequacies (water, roads etc.), and poor management. Most SMEs lack structure, one staff could hold two to three position all to reduce cost. The owner of the business usually hold the manager position and call MD/CEO, whether he has the skills or not, he direct the organization based on his ability. Small Scale businesses are faced with the challenge of management because they cannot afford to employ an expert as a manager to achieve the goals of the organization. This research work tends to examine the role managers to Small Scale Business organization and provide solutions to the aforementioned problems.

1.3    PURPOSE OF THE STUDY

The aim of this research work is to examine the role of manager in small scale business organization. The objectives of the research are to;

·  Examine the impact of manager to the success of Small Scale Business organisation.

· Examine if manager can influence employees to achieve organizational goal.

·  Verify if goal setting could be achieved without the manager

1.4      RELEVANT RESEARCH QUESTIONS

Base on the objectives of this research. This research tends to provide answer to the following research questions.

i.  Is there any relationship between a manager impact and Small Scale Organization performance?

ii.  Does managers influence employees to achieve organizational goal?

iii. Is the achievement of the organization credited to the manager?

1.5      RESEARCH HYPOTHESIS

The below research hypothesis is formulated and would be tested in the research work.

Ho:  There is no significant relationship between manager impact and Small Scale Organisation Performance

H1: There is significant relationship between manager impact and Small Scale Organisation Performance

1.6   SCOPE AND LIMITATIONS OF THE STUDY

This research work will place concentration on functions of managers, their roles and contributions to the success of small scale organisations. The research scope covers a small manufacturing firm (TOP PAINT LIMITED) located at Abule-Egba, Lagos. The study will further identify the fundamental limiting factors of good Small Scale Business.

Limitations

In the course of conducting this research work it is expected that the following will constitute impediments to the effective conduct of the study

a)   Time constraint within which the study must be completed.

b)   Financial constraint

c)   Inaccessible and inadequate data

d)  Also, combining project work with several other activities is another stressful task that may not allow me to cover research materials extensively. Nevertheless, I believe the above limitations will in no way affect the reliability and validity of the research study.

1.7   SIGNIFICANCE OF THE RESEARCH

This research is of significance to Small Scale business owners in that it provides adequate solution to the underlying problem of manageing the business to achieve organization goals. It is also of academic significance because future researchers may use the findings here to update existing literature and building theories. Practicing managers in small scale organizations may rely on the findings and methodology of this research to form a basis for their daily decisions.

1.8    HITORICAL BACKGROUND OF THE STUDY

The company Top Paints Ltd was founded 2005. The company is located at Abule-Egba Area of Lagos. Experience gathered from working in paint laboratories paved the way into the paint industry. The company started with emulsion paints only. In 2009 the company commenced production on gloss paint. Today they firm produces Water-based Paints (Emulsion), Oil-based Paints, Silky Sheens,, Semi-gloss and gloss paints. Top Paint with a staff strength of twenty five is able to meet its customer’s demands. We supply in the engineering industries and also provide paint for building contractors. Our capacity allows us to meet the demands of any customer. Top Paints retails directly to stockists.

1.9      DEFINITION OF TERMS

For this research, the following definitions have been adopted:

Manager:  a person responsible for controlling or administering an organization or group of staff

Management:  The organization and coordination of the activities of a business inorder to achieve defined objectives

Small Enterprise: An enterprise whose total cost including working capital but excluding cost of land is between ten million naira (N10,000,000) and one hundred million naira (N100,000,000) and/or a workforce between eleven (11) and seventy (70) full-time staff and/or with a turnover of not more than ten million naira (N10,000,000) in a year.

Medium Enterprise: A company with total cost including working capital but excluding cost of land of more than one hundred million naira (N100,000,000) but less than three hundred million naira (N300,000,000) and/or a staff strength of between seventy-one (71) and two hundred (200) full-time workers and/or with an annual turnover of not more than twenty million naira (N20,000,000) only.

NASME: Nigerian Association of Small and Medium Enterprises, which is an umbrella association of all SMEs

MAN: Manufacturers Association of Nigeria is the official association of manufacturing companies in Nigeria

NACCIMA: Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture is an association of various Chambers of Commerce in Nigeria

NASSI: Nigerian Association of Small Scale Industries is the umbrella association of all the Small Scale Enterprises in Nigeria

DFIs: Development Finance Institutions are companies involved in project and development finance such as the Bank of Industry (BOI)

SMEs: Small and Medium Enterprises are those firms, which satisfy the definitions given above

SMEDAN: Small and Medium Enterprises Development Agency of Nigeria

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