Corporate Governance: An Evaluation of Management Effectiveness in Nigerian Polytechnics

Abstract

Much research work has been carried out on corporate governance but few have been targeted toward the effect of corporate governance inadequacy on the threatening quality of education in Nigerian tertiary institutions. The few papers that were discovered only address corporate governance in relation to the University education system and almost none addresses the polytechnic education. This study aims to fill that gap by first examining the conceptual and theoretical understanding of corporate governance in relation to public institutions. The primary objective of the study is to investigate the relative impact of three of the key corporate governance variables (accountability, transparency and stakeholder's satisfaction) on the so called "soft” human oriented measures of organisational effectiveness-perceived managerial competency. All the data used in the study comprise both secondary and primary data. A 35-item survey questionnaire was developed and 6 (3 Federal and 3 State) polytechnics were chosen (one each) from the six geopolitical zones in Nigeria as the sample for the study. 50 copies of questionnaire were given out to key informants from each of the polytechnics; and were targeted towards key Council, Management, Staff and Student's Representatives, of which only 200 copies of questionnaire were retrieved. The returned questionnaire was analysed by non-parametric correlation and regression coefficients using the Statistical Package for Social and Science Students (SPSS) version 16.0. The findings show that (1) accountability has significant relationship with perceived management competence, (2) transparency has significant relationship with perceived management competence (3) employees' satisfaction has significant relationship with perceived management competence and (4) students' satisfaction has significant relationship with perceived management competence. It is concluded that there is a positive relationship between corporate governance variables and perceived management competence in the Nigerian polytechnics. It is therefore recommended that (1) Governing bodies of Nigerian polytechnics should endeavor to use key accountability and transparency metrics in selecting management team for running the affairs of polytechnic system and (2) necessary provisions should be made for structural balances that culminate job satisfaction for staff and students in order to enhance the quality of polytechnic education for industrial development and economic diversification.