EFFECT OF MANAGEMENT SUCCESSION ON ORGANIZATIONAL PERFORMANCE OF SMALL SCALE BUSINESSES
(A STUDY OF ENUGU NORTH LOCAL GOVERNMENT AREA)
ABSTRACT
This research work, examined the Effect of Management Succession on Organizational Performance of Small Scale Business with Enugu North Local Government Area as a case study. The objectives of the study include to find out how managerial succession affects the profitability of small scale businesses in Enugu North Local Government Area, to investigate the relationship between managerial succession and employee turnover of small scale businesses and to assess the extent managerial succession affects market share of small scale businesses. The research method adopted was the survey research method. The sources of data used were the primary and secondary sources of data. The population of the study was 250 while the sample size of 154 was determined using Taro Yamane’s formular. The major instrument of data collection was the questionnaire. The data collected were presented in tables using the 5 scale lickert system and analysed using inferential statistics. The hypotheses were tested using the chi-square distribution formular. The findings include that Managerial succession affects the profitability of small scale businesses in Enugu North Local Government Area, there is a relationship between managerial succession and employee turnover of small scale businesses and Managerial succession have significant effect on market share of small scale business.  The researcher concluded that managerial succession has a significant effect on organization performance. The research recommends that Managers of small scale business owners, should always take into consideration, management succession of their organization, there should be a well planned programme in every organization on how those to take over leadership positions should be trained for future leadership position and Organizations should learn how to change policies that are consistent with their strategies.
TABLE OF CONTENT
CHAPTER ONE
INTRODUCTION
1.1    Background of the study                        
1.2    Statement of the Problem                        
1.3    Objectives of the Study                        
1.4    Research Questions                            
1.5    Hypothesis of the Study                                             
1.6    Significance of the Study                        
1.7    Scope of the Study                            
1.8    Limitations of the Study                        
References                                    
CHAPTER TWO  
REVIEW OF RELATED LITERATURE
2.1    Conceptual Framework of the Study            
2.1.1 Concept of Employee Turnover                
2.1.2 Meaning of Profitability                         
2.1.3 Concept of Market Share                    
2.1.4 Meaning and Definition of Organization            
2.1.5 Managerial Succession                         
2.1.6 Problems of Management Succession             
2.1.7 Phases of Time Cycle for Succession Planning    
2.1.8 Long Term Resource Planning                 
2.1.9 Definition and Meaning of Small Scale Business    
2.1.10 Classification of Small Scale Business            
2.1.11 Features of Small Scale Business             
2.1.12 The Concept of Organization Performance        
2.1.13 Preparation of the Successor                 
2.2 Theoretical Framework of the Study                
2.2.1. Relay Succession Planning Model                
2.2.2. Scharmer’s Theory U Model                    
2.3 The Effect of Managerial Succession on
     Profitability of Small Scale Business                 
2.4 The Relationship between Management             
2.5 Effect of Managerial Succession on Patronization Of
The Products Of Small Scale Business             
2.6    Empirical Review                             
2.7    Summary of Literature Review                 
References                                    
CHAPTER THREE
RESEARCH METHODOLOGY
3.1    Research Design                             
3.2    Area of the Study                            
3.3    Sources of Data                            
3.3.1 Primary Source of Data                        
3.3.2 Secondary Source of Data                    
3.4    Population of the Study                        
3.5     Sample Size determination                    
3.6    Sampling Procedure                            
3.7    Sample Size Distribution                         
3.8    Instrument for Data Collection                    
3.9    Validity of the research instrument                
3.10    Reliability of the Instrument                    
3.11    Method of Data Presentation and Analysis        
References                                    
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS  
4.1    Data presentation and analysis                     
4.2    Testing of Hypothesis                        
4.3    Discussion of findings                        
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1    Summary of Findings                        
5.2    Conclusion                                
5.3    Recommendations                             
5.4    Contribution to knowledge                    
5.5    Suggestion for further research                
Bibliography                                    
Appendix                                        
Questionnaire                                     
CHAPTER ONE
INTRODUCTION
1.1    Background of the Study
Globally, Ford manufacturing company has been a household name in the history of automobile industry. After the death of the owner Henry Ford, the company did not collapse as a matter of fact, it continued to be a market leader in the automobile industry. The same is applicable to Mercedes Benz manufacturing company, which is another household name in the history of automobile industry after the death of Karl Benz, the owner, the company still continued to exists and flourish. From the Nigeria perspective, concord newspaper used to be one of the most read tabloid in Nigeria, but after the death of the owner and philanthropist, chief M.K.O Abiola, the company collapsed and has not been in existence, since then.  
Management exists because there are organizations and there must be people to be responsible for the attainment of the organizational goals or objectives (Diejomoh,2014). To realize these objectives, organizations continuously look for qualified personnel to direct their affairs. In order to provide managers as at when due and to ensure organizational continuity, organizations develop people, either by formal training, planned work experience, performance planning and counseling to take over in the event of retirement, expansion, dismissal or death.
Ile (2010), management has a special role to play in an organization. As a matter of fact, management has its own stake in the organization. All employees do, of course, but management is responsible for the organization as a whole, a responsibility that often requires dealing with multiple stakeholders and balancing conflicting claims. Shareholders, for example, want larger returns, while customers want more investment on research and development, employees want higher wages and better benefits, while local communities want parks and day–care facilities. To ensure that survival of the organization, management must keep the relationship among keys stakeholders in balance over both short and the long terms.
    Nwachukwu (2013) states that “the development of the management is the development of the organization, for the growth of the organization party depends on the management, as they make vital decisions that affect the organization. Barker (2014) supports the view of Nwachukwu, when he said that human resources is the wealth of the nation. He further stated that over a given period of time, some personnel will retire, many will be promoted and others may die or leave concurrently, some jobs and functions may have to be vacant leading to a break in company’s growth. Hence, it is very important that every organization, should always consider management succession in its day to day running of the business to avoid being taken unawares.
The future economic prosperity of Nigeria lies in the dynamism and growth of small scale businesses (Adegbite,2009). Small scale businesses constitute a vital engine to economic growth and development. The experience all over the world is that small scale businesses play significant role in the linkage of the various sectors of the economy particularly industrial and commercial linkages. Infact,  there is  a global consensus that the promotion of small scale businesses is a well- recognized and such heralded strategy of industrial development in many currently less developing countries. There is wide consensus among  development economists that small scale labour intensive industries can enhance  employment goals like improved income distribution, the generation and diffusion of local resources, improved spatial distribution of industrial activities and hence  the mitigation of rural-urban population movements, among others.
To Ajayi (2011), the small scale industries are well suited to the factor endowment of the Nigeria economy. This is because they promote the use of local raw materials, low technologies and serves as entrepreneurial development centres and can facilitate balance development, since they can be operated at remote and rural areas in addition to having short gestation.
Small scale industries have a lot of important contributions to make to the economic development of the country. A lot of youths, retired workers and out of school graduates are now gainfully employed, thereby reducing the unemployment rate and its attendant social complication of armed robbery and white collar crimes. It helps to bring about new goods and services and supply the needs of large industries, which have to rely on the small scale industries for business success. The small scale industries represent the over whirling majority of industrial capacity in developing countries.
     According to Vesper (2014), the small scale entrepreneurs has a unique problem in arranging for the management succession. When a proprietor dies for example, the heirs may reorganize the business and continue persons. Some heirs may be untrained and unequal to the management task. Even if the owner has sons and daughters, there would be difficulties. These heirs could create a partnership but such partners would not necessarily be either able or compatible. A son may be disinterested in the business, sell it in order to follow his own career interest and so waste the father’s effort. Such a son might also be unequal to the job of running the business with the result that he runs it into bankruptcy. Hence, the performance of many small scale businesses has been affected as a result of the death of the owner/ manager. It is based on this backdrop that the researcher has decided to carry out a research on the effect of managerial succession on organizational performance of small scale business in Enugu North Local Government Area.
1.2    Statement of the Problem
Some small scale business entrepreneurs in Enugu North Local Government Area do not plan for management succession. This has affected them negatively in the area of profitability, employee turnover, and patronization of their products.
Some small scale businesses in Enugu North Local Government Area have been recording low profitability as a result of unplanned managerial succession. When the owner/manager dies, the heir or whoever takes over does not have the requisite skill or experience to carry on with the business and this has made them to record low profitability.
The rate of employee turnover of some small scale businesses in Enugu North Local Government  Area  has gone high as a result of unplanned managerial succession. This is because the employees are not usually comfortable with the new person in charge.
Market share As a result of unplanned managerial succession, in some small scale businesses in Enugu North Local Government area, people do not usually patronize their goods. Instead they go for the goods of their competitors.
1.3    Objectives of the Study
The general objective of the study was to examine the effect of management succession on organizational performance of small scale businesses. However, the specific objectives included:-
1)    To find out how managerial succession affects the profitability of small scale businesses in Enugu North Local Government Area.
2)    To investigate the relationship between managerial succession and employee turnover of small scale businesses in Enugu North Local Government Area.
3)    To assess the extent managerial succession affect market share of small scale business in Enugu North Local Government Area.
1.4    Research Questions
Based on the objectives of the study, the following research questions were raised.
(1)    How does managerial succession affect profitability of small scale businesses?
(2)    What is the relationship between managerial succession and employee turnover of small scale businesses in Enugu North Local Government Area?
(3)    To what extent does managerial succession affect market share of small scale business in Enugu North Local Government Area?
1.5    Research Hypotheses
Based on the research questions, the following hypotheses were formulated.
1.    Managerial succession does not positively affect the profitability of small scale businesses in Enugu North Local Government Area.
2    There is no positive relationship between managerial succession and employee turnover of small scale businesses in Enugu North Local Government Area.
3    Managerial succession does not have significant effect on market share of small scale business in Enugu North Local Government Area.
1.6    Significance of the Study
    The research work is very important because it examines the effect of management succession on organizational performance of small scale businesses. Small scale business owners, will benefit from this study because they will be more enlightened on how managerial succession affects organizational performance of small scale businesses. This will make them to plan for who will succeed them in the case of any eventuality. Te researcher will benefit as the research work is a partial requirement for the award of a Bachelor of Science (B.Sc) degree in Business Administration. The universities, will benefit, as the research work increases their data bank.
1.7 Scope of the Study
The research covered how managerial succession affects the profitability of small scale business, the relationship between managerial succession and employee turnover of small scale businesses and to assess whether managerial succession has a significant effect on patronization of the products of small scale business in Enugu North Local Government Area.
1.8 Limitations of the Study
    The researcher encountered some impediments in the course of carrying out this research work. Among them, were finance, lack of material, time and uncooperative attitude of respondents.
Finance: The researcher spent some money in browsing /surfing through the internet and printing out relevant materials, related to the research work.
Lack of Materials: Initially, the researcher was unable to get some materials on the topic, as many materials consulted were discussing managerial succession in corporate firms, but after extensive search the researcher was able to get the materials of managerial succession of small scale business.
Time: The research work affected the researcher in the area of time, because part of this research were conducted, using office hours which almost created a friction between the researcher and his employers.
Uncooperative Attitude of Respondents: Some small scale business owners were economical with information, but when they discovered that the research work was purely for academic purpose, they gave out useful information needed for the research work.
REFERENCES
Diejomoh, F. (2014). Modalities for succession in organizations. Journal of Management Science. 1(3);45.
Ile, N.M. (2010), Entrepreneurship Development: The Nigeria Experience. Enugu: Ochumba Publisher Company.  
Nwachukwu, I. (2013) Succession Planning in Small Scale Business in Nigeria. Lagos: University Press.
Barker, S. (2014) Succession Management for the entire Organization. International Journal of Management Science. 27(2);62.
Adegbite, C.  (2009). Succession Planning in Nigeria Organization. Ibadan: University Press.
Ajayi, J. (2011), Long Term Resource Planning. Journal of Humanities and Social Science. 4(10);20.  
Vesper, N.  (2014), Dilemmas in Linking Succession Planning to Individual Executive Learning. Human Resource Management, 25(2);65.