Browsing by Author "Swai, Lazaro Ntuke Anandumi"

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    The public enterprises' board of directors and performance: the case of Zana za Kilimo (ZZK) Ltd. Mbeya, National Development Corporation (NDC) and Textile Corporation (TEXCO)
    (University of Dar es Salaam, 1995) Swai, Lazaro Ntuke Anandumi
    This study was aimed at investigating how the composition of corporate Board of Directors (BoDs) influences the performance of the Public Enterprises (PEs) generally, and in the case studies particularly, in the production of goods and provision of services. We had hypothesized that the BoDs were a critical factor in determining the operations and therefore, the performance of the corporate entities. By this, we never underestimated the influence of other forces - less or equally critical in determining the same. Three case studies were picked to represent company, statutory and public corporation forms, for Zana za Kilimo (ZZK) Ltd. Mbeya, National Development Corporation (NDC) and Textile Corporation (TEXCO), respectively. Administratively, NDC/TEXCO and ZZK Ltd, conformed to holding and subsidiary corporations respectively. Admittedly, generalizations cannot be made based on these case studies, but rather, to describe a real situation at a level which is often neglected the uniqueness of each parastatal organisation. In the main, the study investigated the extent to which the composition of the BoDs, i.e. in terms of such attributes as education, professional skills, experiences and other "know how" inputs, was a factor in determining the observable performance in the PEs generally and in the case studies in particular. It also investigated whether the statutory provisions did enable or hinder the effectiveness of the BoDs. Data for the study were collected through documentary reviews, interviews and observation. Instruments of data collection were pilot tested before administration in order to test their validity. Data collected were subjected to content analysis to extract relevant information and tallied to obtain percentages and finally presented in tabular form. In the light of the findings, we were able to confirm that BoDs were crucial factors in determining the performance of the business undertakings. Findings also indicated that the composition of the corporate BoDs did not satisfy an expert view of appropriate mix of experts from diverse specialties on the one hand, nor did it reflect a reasonable balance between relevant expertise of the industrial undertakings and the lay board members on the other. Again, we found that other factors external to the PEs environment, included the position and role of the government and its agencies in monitoring the PEs. At another level we found out that the statutory instruments were inadequate in several aspects as clearly brought out in the study and to a large extent constrained both the BODs and the management in discharging their statutory and executive responsibilities for better performance. Nonetheless, the extent to which one could apportion the deficiencies between the Government, the BoDs and the operational management remained inconclusive. We thus recommended for appropriate corrective measures concomitant with the observable bottlenecks in the composition aspect, while considerable rehabilitation of the statutory provisions from which the PEs draw their terms of reference was seriously wanted. Secondly and following from the above, we recommended for the creation of an all autonomous "Apex" organization e.g. Public Enterprise Board (TPEB), to shoulder most of the discrete and autonomous ministerial powers, holding corporations and other agencies. In a nutshell, the intention was to depoliticize and debureaucratize the management of PEs, while at the same time strengthening accountability. Thirdly, we reiterated the desirability of having an appropriate Management Information System (MIS) to guide policy decisions. Finally, we were aware of the unfilled gaps within the Divestiture and Reform context, and as a matter of urgency, "competent" economists, lawyers, management executives and students of public administration, were called upon to undertake studies in such areas. In the light of the above coverage, it is anticipated that findings of this study have succeeded to bring into fore some pertinent issues in the management of PEs generally and in the case studies in particular.