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OBODOH CHIKASI MERCY
PG/M.Sc/04/38287
ASSESSMENT OF THE IMPACT OF INSTITUTIONAL
CONTROL IN THE MANAGEMENT OF PUBLIC ESTATES
(A CASE STUDY OF CENTRAL BANK OF NIGERIA QUARTERS,
ENUGU)
Estate Management
A THESIS SUBMITTED TO THE DEPARTMENT OF ESTATE MANAGEMENT,
FACULTY OF ENVIRONMENTAL STUDIES, UNIVERSITY OF NIGERIA ENUGU
CAMPUS
Webmaster Digitally Signed by Webmaster‟s Name
DN : CN = Webmaster‟s name O= University of Nigeria, Nsukka
OU = Innovation Centre
2009
UNIVERSITY OF NIGERIA
2
ASSESSMENT OF THE IMPACT OF INSTITUTIONAL
CONTROL IN THE MANAGEMENT OF PUBLIC ESTATES
(A CASE STUDY OF CENTRAL BANK OF NIGERIA QUARTERS,
ENUGU)
BY
OBODOH CHIKASI MERCY
DEPARTMENT OF ESTATE MANAGEMENT
FACULTY OF ENVIRONMENTAL SCIENCES
UNIVERSITY OF NIGERIA,
ENUGU CAMPUS
JANUARY, 2009.
3
TITLE PAGE
ASSESSMENT OF THE IMPACT OF INSTITUTIONAL
CONTROL IN THE MANAGEMENT OF PUBLIC ESTATES
(A CASE STUDY OF CENTRAL BANK OF NIGERIA QUARTERS,
ENUGU)
BY
OBODOH CHIKASI MERCY
PG/M.Sc/04/38287
DEPARTMENT OF ESTATE MANAGEMENT
FACULTY OF ENVIRONMENTAL SCIENCES
UNIVERSITY OF NIGERIA,
ENUGU CAMPUS
IN PARTIAL FULFILLMENT FOR THE AWARD OF MASTER OF
SCIENCE (M.Sc) DEGREE IN ESTATE MANAGEMENT.
JANUARY, 2009.
4
APPROVAL PAGE
This dissertation has been approved by the school of Postgraduate Studies,
University of Nigeria, in partial fulfillment of the requirements for the
Award of the Masters Degree in Estate Management.
………………………… ……………………..
Mr. Iloabuchi K.E.O. Rev. Barr. Ozigbo I.W.
(Supervisor) (Head of Department)
………………………… ………………………..
External Examiner Prof. Ogbuefi J.U.
(Dead of Faculty)
………………………………….
Dean, School of Post Graduate Studies
5
CERTIFICATION PAGE
The work embodied in this dissertation is original and had not been
submitted in part or in full for any other degree or diploma of this or any
other University. All other observed errors of omission or commission are
entirely mine.
…………………
Obodoh Chika C.M.
6
DEDICATION
This work is dedicated to my lovely husband, Engr. Dominic Obodoh
for all his encouragements and care throughout the duration of this
programme.
7
ACKNOWLEDGEMENT
I am most grateful to the Almighty God for the love he has shown me
and for his guidance and protection throughout this programme.
My profound gratitude goes to my supervisor, Mr. K.E.O. Iloabuchi
for his painstaking effort in going through this work.
To my Mum, Mrs. Madgalene Ochu, who has always been by my
side, encouraging me in all I do, I appreciate your love and motherly cares
in making this programme a success.
I also wish to thank my sisters especially late Miss Ijeoma Ochu, it is
true that you did not live to see me finish this programme, but I still thank
you for your supports, may your gentle soul rest in peace, Amen. To
Chinelo I appreciate your sisterly love and concern throughout this
programme.
To my lecturers, especially the Head of Department, Rev. Barr.
Ozigbo I.W. and Dean Faculty of Environmental Sciences Prof. J.U.
Ogbuefi I thank you for the knowledge imparted on me.
I thank my course mates and friends, Mrs. Chinelo Igwe, Mrs. Esther
Oladejo, William Mba and Ifeanyi Emoh for their un-alloyed supports.
I also wish to appreciate the effort of my senior colleagues; Mr. Alpha
Odumodu and Mr. Oliver Odenigbo for their efforts in making this work
realistic.
Finally, I owe all that I own to my family, Obinna, Lotanna, Adanna,
Chigozie and my lovely husband for their, love, care and supports
throughout this programme.
8
ABSTRACT
The management of public real estates is usually affected by control measures
leading to the occurrence of several avoidable problems. These problems emanate
solely by the nature of these institutions which are usually affected by
bureaucracy, political interferences, size of the estates and the institutional
objectives. The aim of the study is to identify and critically analyze the impact of
these controls with a view to minimize their effects on the management of similar
estates. This is necessary in that huge resources invested in the development of
these estates should justify the benefits and services derived form them owing to
the fact that some of these properties are in a poor state of repairs. The study
adopted the survey research approach using the Central Bank Quarters, Enugu as
case study. The Management staff of the Central Bank Enugu, occupants of the
Quarters as well as practicing Estate Surveyors and Valuers in Enugu formed the
population of the study. A sample size of 214 was chosen using the Taro Yamani
model while stratified random sampling technique was used to select the 214
samples. Data retrieved from 192 respondents or 89.7% of the sample was
subsequently presented in tables while mean and percentages were used to
analyze and answer the research questions formulated to guide the research work.
The hypothesis of this study postulates that institutional controls have
insignificant impact in the management of public estates. The data collected were
subjected to inferential statistical test using chi-square technique. The identified
institutional controls that affect the management of public estates (C.B.N.
Quarters, Enugu) include; policies of the organization, objectives of the
organization, budget of the organization, size of the estate and administrative
bottlenecks. The study also identified the major impact of these controls in the
management of the estate to include; delay in responding to repairs that need
urgent attention, managers of the estates lack the freedom to exercise their skills
and expertise in managing such properties, professionals (Estate Surveyor and
Valuers) are not used in the management of some of these properties, lack of
sufficient funds for effective maintenance of the properties, the adoption of
reactive management style instead of pro-active and strategic styles in the
management of the estate among others. The result of the statistical analysis
which shows that x2 (chi-square) calculated value 120.07 was by far greater than
x2 critical value of 5.99 at 0.05 level of significance and 2 degrees of freedom
further strengthened the result of the data analysis. This confirmed that
institutional controls have significant impact in the management of public estates.
The research however, recommended that public institutions should relax some of
these institutional controls and give managers the freedom to apply their skills and
expertise in carrying out their management function whether these managers are
professionals in private practice or employed by these institutions.
9
TABLE OF CONTENTS
Title Page………………………………………………………. i
Approval Page………………………………………………… ii
Certification…………………………………………………… iii
Dedication……………………………………………………… iv
Acknowledgements…………………………………………… v
Abstract…………………………………………………… vi
Table of Contents…………………………………………… vii
List of Tables………………………………………………… xi
List of Figures………………………………………………. xiv
CHAPTER ONE
INTRODUCTION
1.1 Background and Need for the Study…………….. 1
1.2 Statement of the Problem…………………………. 2
1.3 Aims and Objectives of Study……………………… 3
1.4 Research Questions………………………………… 3
1.5 Statement of Hypothesis…………………………… 3
1.6 Theoretical Foundation of Study………………….. 4
1.7 Significance of Study……………………………….. 4
1.8 Scope And Delimitation of Study…………………. 5
1.9 Overview of the Study…………………………….. 5
CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction………………………………………….. 7
2.1 Meaning of Management………………………….. 7
2.2 Concept of Property/Estate Management……… 8
10
2.3 Origin/Evolution of Property/Estate Management
In Nigeria…………………………………………. 10
2.4 Estate/Property Management Function………….. 12
2.4.1 Planning…………………………………………… 13
2.4.2 Organization……………………………………… 13
2.4.3 Co-ordination……………………………………. 13
2.4.4 Directing………………………………………….. 14
2.4.5 Controlling………………………………………… 17
2.5 Property/Estate Management Process………… 18
2.5.1 Identification of Estate Plan………………. 18
2.5.2 Implementation of Estate Plan………………… 18
2.5.3Effectiveness of Estate Plan……………………. 19
2.5.4 Types of Estate Plan…………………………… 21
2.6.1 Management of Public Estates……………………. 29
2.6.2 Objectives of Public Estate Management……….. 31
2.7 Sources of Funds for Management of Public Properties 32
2.7.1 Internal Sources……………………………………. 32
2.8 Service Charge Administration…………………… 38
2.9Institutional Controls In Management Of Public
Properties……………………………………… 40
2.9.1 Administrative Bottleneck……………………. 40
2.9.2 Institutional Policy …………………………… 41
2.9.3 Political Interference…………………………. 42
2.9.4 Rent Control………………………………… 42
2.9.5 Institutional Objectives…………………… 43
2.9.6 Covenant in Leases………………………. 43
2.10 Summary of Reviewed Literature………… 43
11
CHAPTER THREE
3.0 Research Design and Methodology…………….. 45
3.1 Research Design…………………………………… 45
3.2 Re-Statement of the Problem……………………… 45
3.3 Brief Description of the Study Area…………….. 46
3.4 Sources of Data…………………………………… 48
3.4.1 Primary Data……………………………………… 48
3.4.2 Secondary Sources………………………………… 48
3.5 Population of the Study……………………………. 48
3.6 Sample Size and Sampling Technique…………… 48
3.7 Instrument of Data Collection…………………… . 49
3.7.1 Administration of the Instrument………………. 50
3.8 Validity and Reliability of the Instruments…… . 50
3.9 Method of Data Presentation and Analysis…….. 50
CHAPTER FOUR
4.0 Data Presentation and Analysis…………………… 51
4.1 Presentation and Analysis of Base Data………… 51
4.1.1 Analysis of Questionnaire Returns……………. 51
4.1.2 Personal Data of Respondents………………… 52
4.2 Presentation and Analysis of Data on Research
Questions 1………………………………………… 55
4.3 Presentation and Analysis of Data on Research
Question 2…………………………………………… 57
4.4 Data Presentation and Analysis of Research
Question 3…………………………………………. 72
4.4.1 Test of Hypothesis………………………………. 73
12
4.5 Data Presentation And Analysis Of Research
Question 4………………………………………… 75
CHAPTER FIVE
5.0 Discussion, Findings, Conclusions and Recommendation 76
5.1 Discussion……………………………………………. 76
5.2 Summary of Findings……………………………….. 78
5.3 Conclusion…………………………………………. 80
5.4 Recommendation…………………………………… 80
Bibliography………………………………………… 81
Appendices………………………………………. 85
13
LIST OF TABLES
3.1 Constitution of Sample Size……………………. 49
4.1 Analysis of the Distribution and Return of
Questionnaire…………………………………… 51
4.2 Response of Sex of the Respondents………….. 52
4.3 Qualification of Respondents………………….. 53
4.4 Response on the Number of Years the Respondent have
Worked in the Establishment……………………….. 53
4.5 Response on the Status/Rank of the Respondents… 54
4.6 Response whether the Respondent is a Registered
Estate Surveyor and Valuer…………………….. 54
4.7 Response on how long the Tenant has lived in
Estate………………………………………… 54
4.8 Response on whether CBN Adopt some Institutional
Controls in the Management of the Estate………… 56
4.9 Objectives of Managing Public Estates………….. 56
4.10 Response on whether the Estate Surveyor/Management
Consultant have ever been Involved in Management of
Public Estates……………………………….. 57
4.11 Mean Response on Objectives of Managing Public Properties 58
4.12 Response on the Management Strategy adopted in Realizing
Management Objectives ……………………………. 59
4.13 Response on Rents Charged on Different Types of
Accommodation within the Estate………………. 60
4.14 Rents of Different Accommodation in the Neighbourhood 60
4.15 Response on Factors Influencing the Rents Charged
On Public Properties………………………………… 62
14
4.16 Response on Factors Considered In Selection of
Tenants………………………………………… 63
4.17 Response on Method of Advertising for Vacancy
In the Estates……………………………………… 64
4.18 Response on How Void is Controlled In the Estate… 64
4.19 Response on Whether There Are Other Facilities in the
Estate……………………………………………………… 65
4.20 Mean Response on How Funds for Maintenance of Facilities and
External Repairs Are Generated…. 65
4.21 Response on The Adequacy of the Available Funds in Carrying out
Maintenance……………………………. 66
4.22 Response on How Extra Fund is Raised for Carrying out the
Maintenance of Facilities/External Repairs……. 66
4.23 Response on Factors that Influenced Choice of Accommodation of
Tenants……………………………… 67
4.24 Response on Whether Tenants are Satisfied with Rent Paid on The
Accommodation they Occupy…………… 68
4.25 Response on the Reason why Tenants are not Satisfied with Rent
Paid…………………………………………….. 68
4.26 Response on Whether Tenants Experience any form of Disrepair in
their Properties……………………………. 69
4.27 Response on Who Takes Care of the Repairs…………. 69
4.28 Response on the Length of Time it Takes to Attend to Tenants
Complains on Repairs……………………… 70
4.29 Response on Regularity and Adequacy of Basic Amenities/ Facilities
Provided in the Estate………… 70
4.30 Response on the Rating of the Performance of the Property Managers
by the Tenants and CBN Staff…. 71
15
4.31 Response on Whether Institutional Control has any Impact in the
Management of Public Properties…….. 72
4.32 Contingency Table on Whether Institutional Control have Any Impact
in the Management of Public Estate… 73
4.34 Mean Response on the Impact of Institutional Control in the
Management of Public Properties…………… 74
4.35 Response on ways of Curbing the Impacts of Institutional
Control in the Management of Public Estates………… 75
16
LIST OF FIGURES
Fig. 2.1 The Estate Planning Process…………………… 23
Fig. 2.2 The Control Tripod……………………………. 29
Fig. 4.1 Compound Bar Chart Showing Rents on Different Types of
Accommodation In C.B.N. and other Neighbourhood……61
17
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND AND NEED FOR THE STUDY
Before the inception of Colonialism, the need for public housing was
non-existent. Emphasis on housing was on accommodating family
members in compounds in which single room huts were set up with the
family head occupying the central hut, which was surrounded by several
huts occupied by other family members. The Colonial masters‟ intent on
exploiting the available workforce to the fullest almost quarantined the
employees in estates, which bore the semblance of military barracks. In the
quarters, the men had to contend with life without their wives and children
who were left in the villages to be visited only occasionally by their spouses
during the weekends. Artisan quarters in Asata and coal camp in Ogbete are
cases in point.
However, the housing programme for low-income workers employed
in government parastatals was informed by the need to provide houses or
accommodation for the white-collar workers who could not afford decent
and suitable accommodation near their places of work. Some of these
government, parastals include; Nigerian Railway Corporation, Nigerian
Airways, Central Bank of Nigeria etc. The estates are usually in the form of
monotonous row of houses with each unit of accommodation comprising
one, two or more bedrooms with living room and basic conveniences.
It is however, unfortunate to observe that the reason for which these
government corporations and parastatals set out to establish these estates
appear not to be realizable due to the problems encountered in the
management of these estates. Some of these problems are created by some
18
control measures instituted by some of these corporations and parastatals in
order to achieve their set aims and objectives. More so, these control
measures in turn affect efficient and proper management of these estates.
This ugly incidence results in ill-maintained buildings wearing sorry
spectacles and creating the impression of investments made in error, which
the investors ultimately decided to abandon. This is due to the fact that some
of the properties are in very poor state of disrepair due to inappropriate
management or complete lack of management.
However, some of the problems or impacts created by these control
measures could have been avoided had such control measures not been put
in place. It is therefore, against this background that this research work
sought to examine the exact impact of these control measures in the
management of public estates/properties.
1.2 STATEMENT OF THE PROBLEM
Management of estates/properties is a professional work requiring the
skill and expertise of consultants trained in the field of estate management.
However, due to some basic misconceptions many untrained people venture
into management of estates as is the case in many other professions in which
untrained and unskilled people create problems, the result of which is often
unimaginable. The effect of lack of skill and training on the part of
management is as disastrous to private as it is in public estates. This is
because private estates allow near maximum freedom to the estate
managers, trained and therefore skilled management have resulted to very
well maintained and positive result oriented investment in private estates. It
is however, obvious that where even trained and therefore skilled
management are in place in public estates, the result is not the same. Hence,
the problem of this research work is to identify the reason(s) for these
19
shortcomings and their effect(s) on the management of public estates.
1.3 AIMS AND OBJECTIVES OF STUDY
The major aim of this study is to evaluate the impact of institutional
control in the management of public estates. To achieve this aim, the
following objectives were pursued:-
To identify the institutional controls that affect management of public
estates.
- To assess the management of the estate (CBN Quarters) to determine
where they are affected by these controls.
- To determine the impact(s) of the identified institutional controls in
the management of the estate.
- To suggest ways of ameliorating the negative impact(s) of these
controls in the management of public estates.
1.4 RESEARCH QUESTIONS
To achieve the aim and objectives of the study, the following questions were
put forward:-
What are the institutional controls that affect management of public estates?
What are the management strategies and procedures adopted in the
management of the estate?
What are the impact(s) of these identified controls to the management of
public estates?
Recommend ways of curbing the negative effect(s) created by these controls
in the management of public estates.
1.5 STATEMENT OF HYPOTHESIS
To arrive at veritable finding and conclusions, the following
hypothesis were formulated:-
20
H0: Institutional controls have no significant impact in the management of
public estates.
H1: Institutional controls have significant impact in the management of
public estates.
1.6 THEORETICAL FOUNDATION OF STUDY
This work is based on the Estate Management Theory” as propounded
by Thomcroft (1965). This theory defined Estate Management as the
direction and supervision of an interest in landed property with the aim of
securing optimum return, which need not always be financial but could be
social, political or for prestige. This work hence looks at management of
public estates based on this theory where it agrees that management of
public estate is carried out to secure optimum return from the properties in
which the aim of investment is not financial return but provision of social
services. This work however, bases its assessment of carrying out the
direction and supervision of interests in public estates to secure optimum
return (estate management) from the view point of the above theory to see
how the estate managers involved in management of public estates perform
these management functions and also identify where there are lapses and the
cause(s) and impact(s) of these lapses.
1.7 SIGNIFICANCE OF STUDY
This research work will be of immense benefit to so many people:-
First, the study will be of great importance to the government and its
parastatals and more especially the Central Bank of Nigeria because the
findings of this work will expose them to the effects of certain controls in
the management of their properties.
Second, the study is beneficial to the occupiers /tenants of the
21
concerned estates because the recommendations of the study if implemented
will make the management of these estates live up to expectation and attend
to their problems more diligently.
Third, the Estate Surveyors and Valuers will equally benefit from the
study since the findings and recommendation will educate them more on
how to perform their functions with less stress when involved in
management of public estates.
Finally, this work will be beneficial to students of Estate Management
in higher institutions who may be researching on related topic.
1.8 SCOPE AND DELIMITATION OF STUDY
This work is limited to management of public estates. It only covered
the institutional controls that affect management of public estates.
In other words, other form of controls like developmental control,
statutory controls etc that may affect the management of public estates were
not examined. However management of private estates was also not
covered in this work.
More so, in order to carry out an in-depth study on the subject matter,
Central Bank of Nigeria (C.B.N.) Housing Estate, Trans Ekulu, Enugu was
chosen as case study.
1.9 OVERVIEW OF THE STUDY
This research work is presented in five (5) chapters in accordance
with the standard presentation of research work.
Chapter one contains the introduction which include; background of the
study, statement of the problem, aims and objectives of study, research
questions, hypothesis, theoretical foundation of study, significance of study,
scope of study, limitations of study and overview of the study.
22
Chapter two deals with review of related literature while chapter three
dwelt on research methodology which include; research design, re-statement
of the problem, brief description of the study area, population of study,
sample size and sampling technique, sources of data, instrument of data
collection, validity and reliability of instrument and method of data
presentation and analysis.
Chapter four consists of data presentation and analysis while chapter
five is the summary of findings, recommendations and conclusion.
CHAPTER TWO
23
LITERATURE REVIEW
2.0 INTRODUCTION
This chapter deals with the review of related literatures by past and
present authors on the topic of study.
2.1 MEANING OF MANAGEMENT
Stapleton (1994) referred to Allsopp‟s definition of management as
“the selection of goals and the planning, procurement, organization,
coordination and control of the necessary resources for their achievement”.
Thorncroft (1965) in his own part views management as “the science of
organization and operation or, at the practical level, the act of directing and
conducting affairs”. These definitions embrace both the direction and the
overall management of policy and supervision which entails its
implementation. Management however, is concerned with the dynamic of
circumstances and activities, and is generally motivated by the need to
economize in the use of resources and time in achieving pre-determined
objectives.
In the same vain, management can be seen as the process of getting
things done through people (Mali, 1983). Here management comprises
those who lead, guide, limit or control the activities of members at lower
levels of the organizations towards the achievement of ends or goals for
which the organization is set. As a process, it is basically a combination and
utilization of organizational resources towards the achievement of the
common or original objectives. The resources to be combined are in form
of human, natural and financial resources, and their combination and
utilization involves the performance of specific functions by managers.
These functions as earlier highlighted by Thorncroft (1965) and Stapleton
(1994) include: organization, planning, directing, controlling and
24
forecasting.
2.2 CONCEPT OF PROPERTY/ESTATE MANAGEMENT
Mali (1983)defined property management as The proper up keep of
land and buildings, the provision and maintenance of capital works, full and
proper use of estate resources to preserve, conserve, exploit and store them
for the good of the estate and all those who may derive profit, pleasure and
enjoyment from them.
Thorncroft (1965) on his own part sees Estate management as “the
direction and supervision of an interest in land and landed property with the
aim of achieving optimum return”. This return according to him need not
always be financial but may be in terms of social benefits, status prestige,
political power or some other goal or group of goals. This definition sees
estate management as embracing both the overall control of policy and
implementation of those policies to achieve the objectives of the estate.
Thorncroft is of the view that the success of estate management can only be
guarded by the economy of efforts, money and material resources, which are
combined with land and buildings to achieve certain goal.
In 1978, Ratcliff however, viewed property management as a process,
which he went further to describe as being cyclical. Mali (1983) and Ratcliff
(1978) definitions of estate management tend to be restrictive in outlook as
they practically ignored the abstract incorporeal or abstract aspect of
property. Also Thorncroft (1965) definition of estate management lacked
some merits as he chiefly concerned himself with management of interests
and gave little attention to the physical component of property. Throncroft
view may have been influenced by the fact that what is owned in property is
interests which confer other privileges and rights on the owner. It is
however important to point out that the ultimate powers of an owner lies in
25
his proprietary rights. These rights are encoded in the proprietary land units
(PLU) which are divided into two; the physical and the abstract. These two
components of proprietary land unit form the subject of management by the
owner. This observation suggests that a more comprehensive definition of
estate management should incorporate these two aspects of proprietary land
units.
Property management also involves the decision to develop,
maintain, improve or replace buildings in the setting in order to satisfy or
provide physical framework for satisfying human needs (Sangosanya,
1983). Sangosanya was also of the opinion that there is ineffectiveness in
the management and maintenance of properties in Nigeria. This according
to him is attributable to purchase of equipment which does not conform to
specification, lack of spare parts, to maintain these equipments and fittings
and construction of buildings with cheap materials to reduce initial capital
outlay without giving adequate consideration to the life of these materials,
the cost of maintaining them and ease of replacement.
Aghama (1988) agrees to the view of Sangosanya by stating that
property management should start right with the initial planning phase of the
development to see that adequate feasibility and viability appraisal is
embarked upon. It is however believed that if the view of Aghama is carried
out the problems of management as identified by Sangosanya will be
minimized as the property manager will be able to advise properly on which
equipment and fittings to purchase and the type of materials to use in
construction to minimize cost in maintaining and replacing them.
However, Omirin (1980) opined that effective management should
start with a clear understanding of the aims and objectives of providing
public infrastructures at the national level and the implications on the area
they are to serve. Omirin emphasized that planning for management
26
involves a careful study of the physical, economic cost, technology,
operational and other characteristics of the type of infrastructure being
managed. She also continued by suggesting that for a good management to
be carried out, a study of the property has to be carried out so that adequate
plans can be made for its operation and maintenance. This suggestion is
also in line with the opinion of Agbama (1988) who suggested the
involvement of a property manager at the initial stage of the project.
The views above also agree with Akagha (1983) who identified that
Nigerians do not have full knowledge of what property management is all
about. He verified that there is need to involve Estate Surveyors starting
from the planning stage of a real estate development to the rural letting to
ensure admission of good tenants into landed properties. This view of
Akagha is necessary because good tenants will help reduce the problems of
property management.
However, property/estate management is a wide discipline and may
not be adequately explained by mere application of a definition. As a
discipline it concerns itself mainly with decision on planning, controlling
and use of land and buildings with the primary aim of securing optimum
returns.
2.3 ORIGIN/EVOLUTION OF PROPERTY/ESTATE
MANAGEMENT IN NIGERIA
The earliest origin of estate/property management can be traced back
to the time of our fore fathers who managed and maintained their buildings.
It was customary for them to redecorate their houses of mud walls during
festive periods like market days, Easter, Christmas, New yam festivals and
27
New Year periods. Their compounds were swept daily and all the rubbish
carried away. Leakages in roofs of buildings were spotted and the materials
either replaced or repaired. The entire village presented a spectacle of
neatness and attraction because owners‟ managed and maintained their
properties including surroundings. The profession of property/estate
management started in feudal times. Then the stewards and bailiffs were
responsible for the supervision and running of large memorial estates.
The tasks performed by these agents became more difficult with the
onset of the industrial revolution and the rapid growth in urban population
and this led to increasing technical, legal and valuation problems.
In the traditional Nigeria society and even up to the Colonial era, the
job of overseeing the operation of property owners then with individual
investment in real estate was still at a manageable level, hence property
owners did not see in real estate the need for employing the services of
professional property managers. There also came an era when property
owners lived on their estates or near their estates so as to have opportunity
to supervise the running of the estate. In the public sector during the same
era, a government department known as the Public Works Department
(P.W.D.) was charged with the responsibility of taking care of repairs and
maintenance of public buildings, high ways and other public properties.
The staff of this department was seen on regular basis either mending the
roads or repairing broken water pipes. The post independence era is marked
by the growth of urban areas and consequent urbanization with its attendant
complication of tenant/landlord relationship, necessitated by the migration
of people from the rural to the urban arrears in search of paid employment.
This was followed by huge investment in landed properties to provide
accommodation for the urban population. This led to the emergence of rent
collectors sometimes called “Caretakers” which was necessitated by the
growth in the number of absentee landlords who acquired the developed
28
properties in several cities in the country and needed someone to be
physically present for the purpose of collecting rent and seeing to the
running of properties. In some cases, most of these rent collectors are
merely interested in the collection of rents and since they lack professional
training they pay no attention to other functions of estate/property
management.
However, the profession of Estate/ Property management can be said
to have arrived in Nigeria with the establishment in 1969, the Nigerian
Institution of Estate Surveyors and Valuers. Hence in 1975, the decree
establishing the Estate Surveyors and Valuers Registration Board of Nigeria
was promulgated. Under this decree, the Board was charged among other
function with managing and developing estate and other business concerned
with the management of landed property.
Determining the structure and condition of building and their services and
advising on their maintenance, alteration and improvement.
Thus, the professional estate surveyors and valuers got the legal
backing to perform these legitimate functions which were hither-to
encroached upon by lawyers, accountants, rent collectors and quack estate
agents.
2.4 ESTATE/PROPERTY MANAGEMENT FUNCTION
Management functions are basically the same whether people, assets
or procedures are being directed or controlled. In the field of estate
management, there have been previous attempt in classifying management
function into planning, organization, command, co-ordinating, control and
forecasting (Thorncroft 1965).
2.4.1 PLANNING: This is an arrangement of doing or using something
29
considered in advance. It is a systematic scheme and this to a large extent
depends on forecasting in other to correctly achieve its objectives and to
ensure that the means for achieving same are available. It involves the
making of decisions on what to do and the practical problem of undertaking
them. Ratcliff (1978) believes that given the social, political, legal, physical
and economic framework, of a property, it is necessary to formulate a policy
or set of policies to meet the objectives of the estate as efficiently and
effectively as possible. Hence, planning is the thinking process, which
determines the course of action to be taken to achieve set objectives.
Planning according Stapleton (1994) relates to the work of the policy –
making group within an organization concerned with forecasting and
analysis of all the underlying factors affecting the entire activities of the
organization as well as determining the necessary response and possible
courses of action.
2.4.2 ORGANISATION: This involves “the creation of administrative
structure which helps in putting the selected plan into practice”, (Ratcliff
1978). This therefore, means the act of putting or arranging into working
order, the features or resources at the managers disposal. The property
manager should however, organize all features in such a way that they
should blend together in other to achieve expected return. Stapleton (1994)
on his own part, stated that “organization and co-ordination involves the
setting up of structure for the performance of the management policy or plan
of any organization”. The main question here is whether the organizational
structure should be centralized or decentralized. Whichever structure is
adopted according to Ratcliff (1978) creates an avenue through which staff
at al level may contribute to the success of the organization.
2.4.3 COORDINATION:
Stapleton (1994) suggests that this show within an organization, the
effectiveness with which, and information is handled and directed to those
30
who could use it effectively. Co-ordination hence refers to the integration
of all resources to enable or ensure the smooth running of every task
involving each members of the management team. Co-ordination in
property management however, integrates efforts and ensures that each
operating factor is related to each other through built-in system. It is
important that all elements to be applied in every management decision are
properly co-ordinated. This is usually effective where there is adequate
communication; balance and control are introduced within the estate.
2.4.4 DIRECTING: Ratcliff (1978) sees this function “as that which is
concerned with the guidance and supervision of subordinates” for there to
be efficient direction, every member of an organization must be aware of the
organizational structure thereof. Ratcliff also accepts that delegation of
authority and responsibilities (through direction) encourage the staff to work
and learn from others. This management function however, delegated
responsibilities to individual staff to ensure efficient management and hence
encourage division of labour.
This function of delegation of duty and supervision cannot be
effective in any work environment without motivation. Motivation has been
viewed by some eminent scholars as an effective ingredient for directing
and supervision as it concerns management function. Hence, there are so
many theories of motivation;
The theory X and theory Y of Douglas McGregor states that people
inside the organization can be managed in two ways. The first is basically
negative which falls under category X and the other basically positive which
falls under category Y. He went further to state that under the assumption
of theory X, employees inherently do not like work and wherever possible,
will attempt to avoid it. Hence, because of this they have to be forced, to
achieve goals. Under this theory X also employees avoid responsibilities
31
and do not work till formal directions are issued. Most workers under
category X place a greater importance on security over all other factors and
display little contribution. In contrast under the assumption of theory Y:
Physical and mental effort at work is as natural as rest or play.
People do exercise self-control and self-direction if they are
committed to those goals.
Average human beings are willing to take responsibility and
exercise imagination, ingenuity and creativity in solving problems
of the organization.
That the way, things are organized, the average human beings
brain power is only partly used.
These two groupings is borne out of McGregor‟s conclusion that a
Manager‟s view of the nature of human beings is based on a certain
groupings of assumptions and that he or she tends to mold his or her
behaviour towards subordinates. A close look at the above theory detects
that theory X assumes that lower – order needs dominate individuals. He
suggests that an organization that run theory X lines tends to be
authoritarian that is use power to enforce discipline and also exercise the
right to command. In contrast, theory Y organizations run participatory
management, where the aims of the organization and of the individuals in it
are integrated. Individuals can achieve their own goals best by directing
their efforts towards the success of the organization.
The contribution of Rensis Likert tends to agree with the theory of
McGregor but he developed a refined classification by breaking down the
organization into four management systems namely:
1st system – Primitive authoritarian
2nd
system – Benevolent authoritarian
3rd
system – Consultative authoritarian
4th
system – Participative
32
He opines that the 4th system is the best, not only for profit
organizations but also for non-profit firms in other to achieve the aim of
directing. However, Maslow theory of motivation known as Maslow‟s
hierarchy of needs categorized individual needs into four:
- Self actualization
- Esteem
- Belongingness
- Safety
- Physiological.
He argued that lower needs take priority suggesting that these lower
needs must be fulfilled before behaviours can be motivated. The critiques
of this theory argued whether Maslow‟s classification really reflect the order
in which needs are satisfied or is it more about classifying needs form a kind
of tastefulness perspective. The major aim of motivation however is to give
reward for a good behaviour and motivate the individual to perform.
Maslow theory tends to forget that there are individual differences
and what he classified as lower order needs can be somebody‟s higher order
need. It is therefore left for the manager to assess the need of his/her
subordinates in order to know the kind of motivation to adopt.
However, the „Reinforcement Theory‟ as postulated by skinner B.F.
further describes the effects of the consequences of a particular behaviour
on the future occurrence of that behaviour. There are four types of operant
conditions according to him namely; positive reinforcement negative
reinforcement, punishment and extinction. He argued that positive and
negative reinforcement strengthens behaviour while both punishment and
extinction weaken behaviour. He went further to state that positive
reinforcement is a process of getting goodies as a consequence of a
behaviour example. You make a sale, you get a commission. You do a job,
you get a bonus and promotion. In the same way negative reinforcement
33
also strengthen behaviour by having a stressor taken away as a consequence
of behaviour. For instance, long term sanctions are removed from countries
when their human right records improve.
On the other hand extinction according to him weakens behaviour.
This is the process of getting no goodies when do behaviour so, if a person
puts extra effort, but gets no thanks for it, he stops doing it. This is a
process of getting a punishment as consequence of behaviour. For instance,
having your pay docked or ceased for lateness. In effect this theory is trying
to show that there are some actions or form of motivators which strengthen
or weaken behaviour of workers.
Therefore, it is left for the manager as he is directing to examine and
assess the best form of motivation to adopt in order to perform the function
of directing and supervising to achieve good goals. There are however other
forms of motivation theories which is at the disposal of property managers
but he the property manager has to see it as a vital ingredient of directing.
2.4.5 CONTROLLING: This is the day to day monitoring of the
performance of the estate, anticipating problems and making decision in
order to achieve the desired objectives most economically. This function is
used to measure the performance of the estate as against planned or desired
objectives of the organization and the result is used for future planning.
Stapleton (1986) and Ratcliff (1976) see controlling function as involving
the continuous monitoring of the work of the organization to make sure that
approved policies are being pursued in accordance with budgetary
provision. Controlling therefore, refer to methods by which it is possible to
establish and determine if work is being carried out as planned. This helps
in making comparison with the original plan as well as the current
performance and also analyzing variation.
2.5 PROPERTY/ESTATE MANAGEMENT PROCESS.
34
Stapleton (1994) upholds that “the application of general functions of
management of urban estates can be seen as a process”. Similarly Ratcliff
(1978) claims that a more useful means of describing the functions of
property management is to view the task as a process. Therefore,
management functions as it relates to property is a stage by stage process
called “Property/Estate Management Process”. These processes are
reviewed below:
2.5.1 IDENTIFICATION OF THE ESTATE PLAN
Estate plan is a summary of the estate policy objectives, which are
normally included in some of the doctrines written, and it is mostly used in
large organization.
Estate plan is essentially adopted for effective management and
control. It involves a definite programme of activities, which include the
selection of goals and the analysis of such goals to identify possible
constraints to their achievement (Odumodu 2003).
Ratcliff (1978) in his own view claimed that estate plan can be drawn
from framework of objectives guiding the management of an estate and this
is used to describe the means by which the objectives are to be achieved or
implemented. He emphasized that the first thing to do is to look at the
objective of an estate whether it is economical (key to improve the annual
income) or non-economical and with that in mind, form a plan as strategy
for achieving such objectives.
2.5.2 IMPLEMENTATION OF ESTATE PLAN
It is a process of putting selected plan into practice during which the
organizational structure must be designed to make the implementation of the
property management policy as effective as possible.
35
Stapleton (1994) believes that estate management staff receives the
highest training and experience during this period. However, Ratcliff and
Stapleton both observed that delegation of responsibility and supervision are
processes of implementing the policies or the estate plan while Odumodu
(2003) believes that the implementation of estate plan is ensured by three
processes of control. On the other hand, Ratcliff (1978:291) added that easy
implementation of policy to an estate manager entail a considerable amount
of discussion, negotiation and consultation with a wide range of parties
including clients, fellow professionals, allied trades, tenants, statutory
authorities and the public. Stapleton (1994) believes also that this
implementation of estate plan calls for estate management manual and
specialist advice. Hence, it can be deduced from the above that
implementation of estate plan calls for skills acquired through training
(education) and consultation of wide range of individuals to ensure that
adequate care is taken in the implementation of estate plan.
2.5.3 EFFECTIVENESS OF ESTATE PLAN
Odumodu (2003) opined that an estate plan is considered effective
once the plan can be implemented successfully. The success or failure of
estate plans according to him can be influenced by any or a combination of
the following factors.
i. Physical Size: Estate plans take into account the size of the estate
which naturally contributed to the nature of the plans. Plans for big
estates with wide areas of control are more effective and have better
chances of succeeding than small estates whose faith is bound up with
the neighbourhood over which the plan has no influence. The plan of
a small estate must therefore fall in line with what is prevailing in the
areas. Where the estate constitutes 60% or more of the neighbourhood
its plan will be very effective and will therefore influence the plans of
36
the rest of the area.
ii. Legal Power: The terms of the lease granted over an estate
determine the nature of the power reposed in the parties
(Landlord/Tenant) and helps to decide the future of the estate. The
nature of legal control equally depends on the terms of lease or is
decided by the contents of the lease agreement. The ownership right
that is whether it is leasehold, freehold, right of occupancy etc. which
an owner can exercise in his dealings with the property also
determines the effectiveness of an estate plan. For example the stated
lease covenants in public estates are somehow different from lease
covenant of a private estate and this in turn affects the decisions that
could be taken in any of the estate. Also ownership rights in public
estate differ from private estate. Most public estate exercise freehold
ownership right, and therefore can take some decisions that can help
the effective implementation of estate plan while some private estates
have some limited rights; leasehold or rights of occupancy in Nigeria
which limit the owner from taking certain decision which can
adversely affect the effective implementation of the estate plan.
iii. Financial Resources: Estate planning suffers restriction by the extent
to which the estate can attract funds. Estates which are obsolete may
not be accepted as security for mortgage credit while properties which
have been mortgaged to the limit can no longer be useful in attracting,
loans and will have their plans suffer or restricted by unavailability of
funds. An estate plan can be ineffectively implemented due to lack of
funds.
iv. Social Control: Social control affects the implementation of estate
plans. Any estate plans being conceived must therefore be done with
the existing social control or laws in mind. Private as well as public
estate owners should therefore avoid plans which will not attract
37
consent with the town and country planning Act. Every estate plan
must be tailored along existing public policies such as the planning
laws, rent control law and other customary practices.
v. Previous Commitment: Estate plans can be limited by conditions
inherited from previous decisions in respect of the estate. In some
cases previous pronouncements or actions taken in respect of estate
are binding to the extent that the estate may wait for sometime in
future before it can regain its freedom example, mortgages earlier
entered into can prevent an owner from raising loans on the security
of the estate. However this factor mostly hinder private estate plans
while most public estate plans are not affected by it.
The above factors notwithstanding, Odumodu (2003) totally ignored
unforeseen factors in form of civil unrest, socio political upheavals and
natural disasters like landslide, earthquake etc. In the Niger – Delta areas of
Nigeria, socio political unrest has become a phenomenon in the life of the
people and this volatile situation had contributed to the failure of many
investments including real estate investment.
Similarly, civil unrest and natural disaster could as well influence
negatively the success of an effective estate plans as well as any of the
aforementioned factors.
2.5.4 TYPES OF ESTATE PLAN
The nature of activities which go in estate management vary giving
rise to the existence of more than one type of plan, (Odumodu, 2003).
Purchases (acquisitions), disposal, leases and some other transactions in
land require effective planning before being embarked upon. Some of these
activities require some passage of time while others can be accomplished
within a short time. Some of the activities spread across the nation while
others are localized. As a result of the diversified nature of activities for
38
which planning is required three types of plans are recognized in estate
management namely:
* Long term plan
* Medium term plan and
* Short term plan.
i. Long Term Plans
This refers to programmes and activities which will come into
operation in 20 years time. The issues they relate to are, acquisitions,
leasing, sales development and financing programmes. Matters of
acquisition and sale are usually dealt with over long periods. The
desire to acquire a property situated between two properties of the
same owner in order to join them into one has to wait until the
property comes up for sale no matter how long. On the other hand,
developers may buy accommodation land ahead of their plan for
development and wait until the area becomes buildable.
Development and redevelopment are among the most important
matters requiring long term planning. Estates financial structure also
requires long term plans and if not adequately taken care of can
hinder effective management of the estate.
ii. Medium Term Plans
These plans are framed with clearer objectives when compared with
long term plans. Specific issues such as short leases, minor
improvements and alterations as well as issues relating to estate
organization come under medium plans.
iii. Short Term Plans:
The manager‟s day to day relations with the tenant and other estate
users are the major consideration of a short term plan. This is usually
termed routine management and include; maintenance schedules,
39
decorations, revenue collections, payment of statutory charges,
budget supervision and general operational supervision.
The estate planning process however can be represented in a tree diagram.
Eg. Profit, prestige Political
Power, social service etc.
Demand, supply, lending Physical size Legal Power
Rate, planning law, costs Previous Commitment
& Valuers.
Fig. 2.1: The Estate Planning Process
Source: Researcher’s Field Survey 2007.
2.5.5 ESTATE CONTROL
According to Ratcliff (1978) control means monitoring and reviewing
the performance of management procedures employed. Control is necessary
to ensure that plans put into effect, are adjusted to meet whatever situation
Owners Goal
Property Analysis Regional and
Neighbourhood Analysis
Property Analysis
Estate Plan
40
that may arise. It is also an essential ingredient in the implementation of an
estate plan. Estate plan provides the barometer or model against which
objectives are measured and control exercised. Control in effect monitors
the execution of an estate plan, providing the proves of being informed of
the progress being made in the implementation of the plan and also
providing direction, measuring and interpreting trends and results and
knowing where, when, and how to initiate corrective actions when a
derailment is noticed in the implementation of the plan. Odumodu (2003)
discovered the three processes of control necessary to implement estate plan
to include; management control, financial control and estate organization.
The processes according to him is reduced into an element called the
“control tripod” which creates stability as in the case of cooking tripod
where if one leg goes off, the stability is no longer obtainable. This same
situation occurs when one control is not in place in the management of
properties. These controls tries to ensure that the estate is put into the
designed use and its objectives pursued and achieved, ensuring economy in
the operation of the estate not minding whether the return is financial or not
and making use of adequate personnel in executing property management
tasks. However, lack of control can lead to derailment from planned goals.
Therefore, for effectiveness, control must be tailored to suit the plan it is
designed for.
TOOLS OF ESTATE CONTROL
There are three tools of estate control as identified by Odumodu (2003) they
include;
i. Management control
ii. Financial control
iii. Estate organization.
The implementation of the estate plan is ensured by these three processes of
control.
41
Management Control: This deals with ensuring that the estate is put into
the designed use and its objectives pursued. The aims of management
control include ensuring the maximum use of the estate as a means of
achieving the highest return from its particular use whether measured
financially or in line with other objectives.
- Reducing as much as possible the process of obsolescence while at
the same time promoting further improvement of the property at any
time the prospects of such improvement are bright and worthwhile.
- Meeting all contractual obligations towards superior landlords or
tenants.
- Discharging all statutory obligations that may arise in respect of the
estate.
- Ensuring the observance of all moral obligations and mutual interest
shared with tenants, adjoining owners and others that tend towards
the welfare of the estate and the neighbourhood within which it
situates. However, management control can be achieved using four
major types of control namely:
* Occupational control
* Lease control
* Control on sale
* Control of easements, licences and leased interests.
Occupation Control: is however applied in small estates under owner
occupation while the primary assignment of the management of the use to
which the property is put by the owner. Here the strict sense of estate
management can scarcely be said to exist.
Lease Control: The management of estates under lease control and those
under occupation control and those under occupation control make use of
skills and knowledge acquired form the same source. Emphasis of
management however is more on physical condition of the property as far as
42
the property under occupation control are concerned while the ground lessor
of a property under lease with many years of reversion. Thinks less about
the physical condition of property. What concerns him more is the rental
income.
The main areas of concern in the management of leasehold estates under-
lease control include;
i. Administration
ii. Property maintenance and user.
Administration under lease control deals with the following:
- Selection of tenants
- Negotiation of terms
- Routine management.
Property Maintenance:
This aspect of lease control is usually two sided. The lease/tenancy
agreement specifically lays down the aspects of repairs to be done by the
tenant and those to be done by the landlord. The internal repair are usually
reserved for the tenant while the external and structural repairs are normally
in tenancy agreements to stipulate or lay down the standards to be
maintained in the repairs in order not to depress the financial return from the
estate.
Financial Control:
Financial control as the second leg of control is another horizon
through which the implementation of an estate plan is ensured. Odumodu
(2003) observed that since the main aim of estate management is to achieve
the highest net return for the investor, financial control is a prerequisite in
ensuring economy in the operation of the estate not minding whether the
return is financial or not. The first information which financial control
seeks an answer to is the clear idea of the estate aim/objectives. Where the
aim is financial it is proper to fully identify the nature which could be:-
43
High annual profit, high rate of capital asset growth, and occasional annual
losses to be set against profit made elsewhere for tax purposes.
However, the needs of every particular owner will condition this
financial aims or objectives since the success of these objectives or policies
will be checked through the processes of financial control.
INSTRUMENT OF FINANCIAL CONTROL
Three major instruments are available for the estate manager in using
financial control in the implementation of estate plan. They include:
Revenue Accounts
This account employs the use of profits and losses as the basis of
checking the performance of management. Revenue accounts records the
income and the expenditure of the estate in terms of the rents that are
received, the expenditure that is made on repairs and other outgoings and
helps the manager to determine when to increase rents and when to cut
down expenditure. This type of account provide the management with a
clear idea of what is happening through the profit and loss accounts helping
it to take decisions on whether to expand income or to reduce expenditure.
A well prepared account presents every aspect of management for
examination leading to complete financial control.
Capital Accounts
This is a tool of financial control which relies heavily on revenue
accounts. Capital accounts are mainly concerned with capital assets and
liabilities. These can be established by resort to records of revenue accounts
from which historic costs could be picked through a revaluation of the
property at least every five years. This will not only keep the asset values
current but will present the correct picture of events, that is whether the
property asset is depreciating or appreciating in values.
Budget
Budget provide for the estate managers, a guide for performance at
44
good and acceptable intervals since budgets can be made annually,
biannually or even quinquenially as the case may be. The preparation of
budget is usually based on the information provide by the revenue account
and the capital account. Budgets are usually planned forecasts of future
income and expenditure. Budget serves the management function of control
by setting standards against which actual performance can be measured.
However, the estate manager needs to be providing for budget revisions
since there is usually some long interval between budget planning and
implementation. The review is necessary because it takes care of any
fluctuations that may have taken place during the interval by making
necessary adjustments. It is however important that budget is taken
seriously both in small and big estates because this will help especially in
future expenditure which are occasionally heavier than anticipated.
ESTATE ORGANIZATION
This form of control deals with the management of estate by people. It
however deals with the employment of staff to run the affairs of the estate. The
number of staff to employ for the management of properties depends on the nature
and size of the estate.
Type of estate organization
The outlook of any estate is the major determinant of the characteristics of
the estate. Organization put in place for the realization of the estate objectives.
Some estates are national while some are regional in outlook thus requiring the
deployment of staff in several places even though the organization is still
under one leadership. Estates of this nature are under one leadership and are
characteristically large and more complex than estates whose management
is in one location. The needs of the estates which require the ability of the
estate organization include:
- Accounting
45
- Maintenance
- Accommodation
- Landlord/tenant relationship
It is imperative however that the estate organization put in place must have
the requisite organizational control I order to achieve the estate objectives.
No matter the problems of a particular estate and nature of the estate, every
organization must ensure that management is:
- Effective
- Co-rdination
- Direct and uniform.
However, the tree processes of control can further be illustrated in a tripod
diagram shown in fig. 2.2.
THE CONTROL TRIPOD
Fig. 2.2: The Control Tripod
Source: Odumodu (2003)
2.6.1 MANAGEMENT OF PUBLIC ESTATE
Public estate according to Advanced Learners Dictionary of English
means the opposite of private. It means connected to, owned by, and
director by, known to people in general. Property/Estate on the other hand
Financial
Control Estate
Organization Management
Control
Direct C
ontro
l
Un
iform
contro
l
Co
-ord
inated
contro
l
Totally
effective co
ntro
l
Contro
l of easem
ent
Licen
ces and
Lesser
interest
Contro
l of S
ale
Lease co
ntro
l
Occu
patio
n C
ontro
l
Rev
enu
e Acco
unt
Cap
ital Acco
unt
Bud
get
46
means thing(s) owned, real estate, land, movable objects used in a player‟s
quality and characteristics. In essence, public property/estate is seen as
anything say real estate, land owned by the general public. Public estates or
properties therefore are the interests in land and landed properties owned by
the people, and held in trust by a representative body appointed by the
government of the community, state or nation. It means that there is no
right exercisable by an individual in his own capacity unlike in the private
property. Consequently, government owned landed properties (like federal
secretariat, federal/state low cost housing estates, state secretariat, C.B.N.
estates etc) could only have the rights exercised over them either directly or
indirectly on behalf of the public by government. Also public estates refer
to estates owned by public statutory bodies such as Nigerian Airways,
Central Bank of Nigeria, Nigerian Railway Cooperation, and Nigerian Coal
Cooperation etc. Public estates are usually large and have little in common
apart from ownership. They vary in size, character, organization,
management, obligation and policy objectives.
For management purposes, land and landed properties in public
ownership are divided into separate units with features of independent state.
In each case, the managing agent must refer back to selected representative
for major decisions, but a management process becomes more specialized.
Political control often tend to diffuse especially in quash public estates
where all fund authority rests upon coalition of private and public estate.
Hence, the distinction between public estates is the management between
those responsible to the central government and those controlled by local
government. The former has land interests throughout the country and often
obliged to decentralization and control through regional and public area
offices. While the later constitute a large number of autonomous holdings,
each with land holdings that are generally restricted to their administrative
47
areas.
The management of public estate follows the same principle as in the
management of private estate but there are three main objectives guiding the
management of public estate namely:-
i. Provision of direct public service
ii. Provision of indirect social service
iii. Provision of commercial return to public exchange (i.e. government
treasury).
However, in public estate management, extraneous controls are
introduced such that managers of such estates are handicapped in dealing
with such controls, which is not professional in any way. Such extraneous
controls like ; directives on how to allocate available spaces, internal policy
of the organization on tenanting the properties, which a professional trained
Surveyor would have handled in accordance with his training. Some of
these extraneous controls most times, are at variance with normal
management principles and therefore pose a serious threat to efficient and
effective management of public properties.
2.6.2 OBJECTIVES OF PUBLIC CORPORATE
ESTATE/PROPERTY MANAGEMENT
Sangosanya (1987) identified that corporate property management is
essential concerned with the decision to acquire, develop, maintain, improve
or replace buildings in their settings in order to satisfy or provide physical
framework for satisfying companies needs. Corporate public estate/property
management however, should not only be concerned with the decision that
concerns only land and landed resources with the corporation, but also the
comfort of the human resources of the corporation. This is because these
decisions mentioned by Sangosanya above cannot be in isolation. They
should guide the corporation in the provision of shelter, privacy, workplace,
48
services and recreation to the human resources. To achieve these objectives
specialist skills and knowledge in the field of estate management is very
necessary. Therefore, corporate property management should aim at
providing a conducive working atmosphere in terms of any type of
accommodation within the overall main objective of the organization.
2.7 SOURCES OF FUNDS FOR MANAGEMENT OF PUBLIC
PROPERTIES
There are many sources of raising funds for the smooth running of
public properties. These sources can be grouped into two namely:
1. Internal sources which include
i. Rents
ii. Profits
iii. Taxes,
iv. Fees and votes
v. Allocation from governments
vi. Consociate capital
2. External sources which include
i. Loans
ii. Grant form foreign and local donors.
2.7.1 INTERNAL SOURCES
i. RENTS
Rent is a periodic payment for the use of property.
Rent is used mainly for land or land and improvement but it could be
used on land in respect of other Chattels such as plant, machinery and
equipment (Ifediora 1993). Also Kuye (2000) defined rent as the periodic
payment for the use of another person‟s property. Kuye‟s definition of rent
ignored completely the concept of notional rent. His emphasis was on rent
49
paid and received as investment income. The definition of rent by Ifediora
is preferred in this work because he perceived rent as follows:
- Share Rent: This is commonly among farmers with regard to use of
land for agricultural purposes. Share rent is used to describe periodic
consideration furnished by the tenant to the Landlord in terms of certain
proportion of the total agricultural produce or income reaped on the subject
land. In Agrairian communities like Omo, Umumbo, Ifite Ogwari and
Umeruin in Anambra State and Umulokpa, Adani, and Adaba in Enugu
State such practice of share tenancy is very common.
- Full Rental Value: The full rental value of a property otherwise
known as market rent or rack rent is the maximum rent which it could be let
in the open market on a given set of letting terms. It is also refereed to as
gross rent. This is because the tenant is free from the responsibility of
having to pay for all outgoings. The Landlord is responsible for both
structural and external repairs maintenance, insurance, management and the
payment of taxes.
- Net Rent: Net rent is obtained when deduction for all outgoings has
been made from gross rent (Kuye, 2000). The tenant, in this case has
covenanted to be responsible for all outgoings and also defray the expenses
of taxes incidental to the lease. This type of rent is paid where the property
is let on full repairing and insuring (FRI) lease.
This is the difference between the full rental value and the actual rent
paid by the tenant when the rent paid by him on the accommodation he
occupies is less than the market rent.
- Rent Reserved: This simply represents the rent paid by the tenant on
the accommodation he occupies. Such rent would depend on his ability to
bargain favourably based on the good understanding of the property market.
The rent may be lower than or equal to the full rental value of the occupied
premises. This type of rent is normally obtainable in public properties.
50
- Ground Rent: Ground rent is paid by lessees on government land.
This type of rent was introduced by the Land Use Decree (Act of 1978). By
virtue of the Act, individuals‟ interest on land was reduced to a mere right of
use by the government. The rent is calculated based on the area and size of
the land. The rent is normally paid on urban lands.
- Controlled Rent: This is a rent pegged or fixed by the government
at a certain level particularly in periods of hyper inflation. It is fixed to
protect tenants from Landlord‟s exploitation and exorbitant rents occasioned
by inflation and market forces.
ii. PROFITS: Another source of income for the maintenance of
public estates can come from profits made by the organization
from other business carried out by the organization. It is obvious
that some of the organization that own these estates carry out other
activities and business through which they make profits. These
profits can also be used to provide funds for the maintenance and
management of the organizations estate. For example, Coal
Corporation of Nigeria are in the business of energy production
(coal) through which they make profit, such profits made from the
production and manufacture of coal can also be used in
maintaining and managing the co-operation estate. This situation
applies to other public co-operation and organization like Central
Bank of Nigeria.
iii. TAXES: There are various forms of taxes imposed by the various
tiers of government in other to raise funds for their activities
Umezurike (1998) identified such taxes that can be levied by both
state and federal government to include; income tax (withholding
tax as a variant), capital gains tax, estate/probate duty, stamp
duties, consent fees and VAT, these forms of taxes as identified by
Umezuruike only relates to real estate. Ifediora (1998) also
51
identified taxes leviable by local government councils as it relates
to real estate to include; shops and kiosks rates, tenement rates,
right of occupancy fees (excluding state capitals). He further
explained that these taxes are or should be based on property
values and are payable by the owner or occupier of the properties.
However, these various forms of taxes as identified above form
also sources of funds for public property maintenance. This is so,
because government which are the major owners of public estate
generate funds through these forms of taxes and therefore should
be able to provide funds for the management of her properties
through this source. The question at hand now is whether these
government authorities ever realize that they can make use of
funds generated through these taxes to fund the maintenance and
management of their properties, whether these properties are
directly owned or indirectly owned by them.
iv. FEES AND VOTES: Another source of funds for management
of public estates can also be realized through fees and votes.
These fees are form of levies imposed by government or its
authorities to individuals or corporate bodies. Umezurike (1998)
also identified that there are other forms of payment not taxes that
government levy and collect other than real property – related
taxes such as fees for registration of business premises,
development levy etc. These levies also generate revenue for
government which form sources of funds for public estate
management.
v. ALLOCATION FROM GOVERNMENT: Another source of
revenue available for public estate management comes from
allocation of funds by government to the government agency or
parastatal that owns the estate. This allocation most times comes
52
in form of budget. The government of every country always make
budget at the beginning of every year where they allocate funds to
the different sectors of the economy. This budget also takes care
of different government agencies and parastatals which in turn
prepare their own budget from the allocation given to them by the
government. Some public properties are managed and maintained
through the funds allocated by the organization in their budget.
Here, once the budget is made, it becomes difficult for
management to release extra funds which was not provided in the
budget of the organization in cases where the budget is not enough
for carrying out the maintenance of the estate/properties. This
situation poses management problems since funds cannot be
generated else where for the smooth running of the estate. The
budget in this case is different from the budget discussed earlier as
an instrument of financial control. Budget in this sense means
funds allocated for the management and maintenance of the
properties owned by the institution say yearly, biannually etc.
This budget is provided for in the overall budgets of the
organization/institution in a fiscal year.
vi. CONSOCIATE CAPITAL: Funds can also be raised for
management of public through consociate capital. This means
money generated from other kinds of business carried out by the
organization owning the property apart from the property itself.
This means ploughing back the profits made from other business
to maintain and manage property belonging to the public
institution.
2. EXTERNAL SOURCES OF FUNDS
Funds for the management and maintenance of public estates can be
raised through the following external sources;
53
a) Loans
b) Grant from foreign and local donors
a. Loans: Fund for management, maintenance as well as development
of public estates can be raised through loans. There are various institutions
where money can be borrowed to effectively manage and maintain public
estates such institutions include; commercial banks, insurance companies,
merchant banks and mortgage institutions. There are several provisions
made in the laws establishing these institutions on the percentage of the
institutions capital that should be reserved for real estate development thus
allowing for the sourcing of funds through these institutions for the up keep
and development of real estate.
b. Grant from Foreign and Local Donors: Another source of fund for
public estate management is through grants from foreign and local donors.
Since public estate are usually owned by government, grants to the
government made by international or local donors to help government
provide services to the people can also be used to manage and maintain
public properties. Some donor agencies like UNICEF, UNDP etc. can
provide grants to government to provide social services to the people which
housing estate can be one of them. The issue in question is whether these
government agencies and parastatals that own these public properties/
estates harness these sources of funds so as to maintain and manage their
properties effectively.
3. SERVICE CHARGE: This is also another avenue where funds can
be generated for effective management and maintenance of facilities provide
in the estate /property for the use of the tenant. The fund generated from
this source can be used to effectively maintain public properties.
2.8 SERVICE CHARGE ADMINISTRATION
54
Service Charge: Service charge has been defined by many scholars
in different ways; Nwankwo P. (1988) defined service charge as “an
additional levy collected from tenants or occupiers of a property by the
landlord for the purpose of discharging the obligations which ought to be
borne by tenants or occupiers themselves but which they cannot because of
impracticability”. The definition by Martin (1981) posits that service charge
is “the cost to tenants of indemnifying landlords against actual/or
anticipated expenditure for the protection, maintenance and replacement of
those parts of the structure, finishes, fittings and equipment of the property
for no tenant is responsible.”
The Glossary of property terms also sees service charge as “An
amount payable by a tenant on account of services provided by his
landlord.” The Glossary also presented a second definition which it referred
to as being specific to residential flats for the purpose of section 18 – 30 of
the landlord and tenant Act of 1985 and which means “An amount payable
by a tenant as part or, or the addition to rent, for services, repairs,
maintenance or insurance plus the landlord‟s cost of management, the
amount varying with the relevant costs (including overheads).
However, a more comprehensive definition was given by Odumodu
(2003) as:
The annual payment distinct from the rent which
occupiers are obliged to make to the landlord or his
agent for the maintenance and running of the
extra services provided in the property by the landlord
for the comfort of occupiers, the spending of which
must be judicious and must be satisfactorily reported
to the occupiers (contributors) through account.
It can be deduced that two elements in the above definition are not present
in the other definitions. The latest definition sees service charge as an
55
obligation which informs compulsion because even though the service are
already available, in the property their use and enjoyment depends on the
readiness or willingness of the occupants in taking care of the obligation.
This suggests that the issue of service charge is a compulsory payment so
far the tenant is using and enjoying the facility. The second element which
talked about giving account for the spending to the occupier (contributor)
distinguishes it from the rent which is accounted for to the landlord.
Anagu (1994) stated that the scope covered from service charge fund
include:
- Lifts
- Central air conditioning
- Sewage and water treatment plants
- Clearing of common parts
- Provision of security fumigation and lighting of common parts.
However, the above scope covered by service charge as opined by Anagu
(1994) is far form exhausting the list since consumer tastes continue to
change and technological improvement keep increasing.
Service charge according to the definition above is borne out of
different categories of responsibilities existing to be discharged in a
property. Chineke (1997) identified the three categories of responsibilities
to include;
i. Landlord‟s responsibility;
ii. Tenant‟s responsibility
iii. Occupiers joint responsibility.
The first two responsibilities (Landlords and Tenants responsibility)
coincide with the landlord and tenant repair obligations in a tenancy
agreement while the occupier‟s joint responsibility stands for the item
covered by the service charge fund.
Four methods are available for determining services charge deposit
56
and these include;
i. Direct comparison
ii. Contractor tenders
iii. Service charge as percentage of rent
iv. Service charge deposit agreed with tenants.
2.9 INSTITUTIONAL CONTROLS IN THE MANAGEMENT OF
PUBLIC PROPERTIES.
There are some extraneous controls instituted by several
organizations that invariably affect public estate management as mentioned
earlier. These controls come in form of:-
- Administrative Bottleneck
- Institutional policies
- Institutional objectives
- Political interference
- Rent control
- Covenant in leases.
2.9.1 ADMINISTRATIVE BOTTLENECK
One of the major controls that inhibit the freedom of the estate
manager in public properties is administrative bottleneck. This is so
because there are certain rules and guideline of doing something in the
organization or institution (due process). Veale, P.R. (1989) identified that
the attitude of the decision maker are likely to be the decisive factor in
effective management of corporate real estate. Hence, the hierarchy of the
decision making body in public institution/organization poses a form of
control in the effective management estate. This is so because, the
efficiency of the property/estate managers lies on the ability of the decision
of the estate manager. If decisions are not approved at the appropriate time,
57
there will be delay and inefficient management/maintenance of the
properties.
Mba, P. (1998) identified that this particular control virtually inhibits
the property/estate manager in exhibiting his skills and expertise in carrying
out his management functions. Here there are certain processes and
procedures for getting things done in the organization. For instance, if there
is any major repair that has to be carried out, the estate manager has to first
write to the management of the organization to obtain permission in order to
go ahead with such plans.
Furthermore, the estate manager cannot in some cases make use of his
skills or adopt some of the estate controls in carrying out is functions. For
example he cannot adopt the criteria for selection of tenants in order to
select the tenants in case of vacant accommodation because the
institution/organization most times have guidelines for selecting of tenants
and the manager is bound to be guided by this policy. Under this control,
management of public estate is done in order of hierarchy. The estate
manager must take instructions from the above, that is, the national level
before he can perform his duties.
2.9.2 INSTITUTIONAL POLICY
Some policies of the institution or organization hinder the
performance of the estate manager in public properties. As earlier stated,
every organization has their own way of doing things and the policies that
guide them. However, in public estates, management must abide by these
policies of the organization in performing their functions. Some of these
policies can be seen in their own (institutions/organization) criteria for
tenant selection, lease covenants, budget etc. These policies affect
management of public properties since the manager cannot on his own take
decision on how to perform some of his duties. Some of these policies
however do not conform to the general principle of property management.
58
Hence, they constitute a form of control in public estate management.
2.9.3 POLITICAL INTERFERENCE
There is no public institution or organization that does not abide by
the law and legislation of the government that established it. Using the
Central Bank of Nigeria as an example; it is an organization owned by the
federal government and hence, all their policies, programmes and activities
must be within the framework or agenda of the federal government. Since
the government is always changing there must also be changes in the
policies of the organization in other to meet up with agenda of the
government of the day. This factor therefore, introduces some changes in
the policies of the organization which in turn affect(s) the management of
public estate. For instance, the last dispensation introduced privatization of
government properties, hence the management of these organizations in turn
have to abide by this particular agenda of the government by planning to
privatize their own properties which will in turn bring a new dimension on
the management of the properties owned by the organization.
2.9.4 RENT CONTROL
Lawal M.I. (1997) observed that government introduce rent
regulation and control measures to protect the tenants from undue
exploitation. He went further to explain that the most difficult task in rent
control operation is the fixing of reasonable or fair rent. However, most
government agencies/parastatals always believe that their major aim of
building housing estate is to provide social services and therefore will
always introduce a kind of rent control in their properties. In this case, the
estate manager is not allowed to use his skill to determine the economic rent
or the current market rent that will help the state to yield enough income
which will in turn ensure good and effective management and maintenance
of the properties in the estate.
2.9.5 INSTITUTIONAL OBJECTIVES
59
It is a well known fact that the objective of public estate management
is the provision of social services as opposed to other motives. However,
this assertion does not mean that the only objective for the management of
public estate is provision of social services. However, other objectives like,
financial/economic returns, continuity, etc are also part of institutional
objectives for owning and managing public estate. However the objectives
of public estate pose a form of control in the management of the estate,
since management has to work towards the realization of the set objective.
2.9.6 COVENANT IN LEASES
Some of the lease covenants in public properties hinder effective
management of such properties. This is because of the nature of the estate
which does not give the estate manager the freedom to apply his skill in
enforcing the lease agreement. Such lease covenants like rent review
clause, lease renewal, repair clauses, etc are usually affected by the nature of
these public estates. For instance, tenants do not renew their leases as long
as they remain in service of the organization and still wish to be in
occupation of the property. He however can change the type of
accommodation occupied when his/her status changes that is if he is
promoted. A staff occupying intermediate accommodation if promoted will
desire to move to a senior staff accommodation. On the other hand because
of the nature of public estates, other lease covenants like rent review
clauses, repair clauses, etc. are not strictly adhered to and these invariably
affect the efficient and effective management of public properties.
2.10 SUMMARY OF REVIEWED LITERATURE
The literature review looked at the meaning of management generally
from some eminent scholars where it was discovered that management is
concerned with the dynamic of circumstances and activities which is
generally motivated by the need to economize in the use of resources and
time in achieving pre-determined objectives. The concept/meaning of estate
60
management were discussed where it was found out that estate management
involves the science of directing and supervising of the two aspects of the
proprietary land unit that is, the physical and abstract (interest) aspects of
the land with the aim of achieving optimum return from investment. The
functions of estate management were identified to include; planning,
organization, co-ordination, directing, and controlling, forecasting. It was
also found out that in other to perform these functions, some processes
known as estate management process has to be followed. It was however
discovered that in adopting the estate management processes some controls
like management control, lease control, estate organization has to be put in
place for effective performance of the estate management function. The
literature review also observed that the management of public properties
follows the same principle as in the private estate but have three main
objectives which include; provision of direct public service, provision of
indirect social service, and provision of commercial return to public
exchange. The reviewed literature identified that in them management and
public estate availability of funds are very important to ensure efficiency in
performing the aforementioned management functions. Hence sources of
funds for public estate management were reviewed where it was found out
that funds can be sourced internally and externally. It was also discovered
that in performing the identified management functions some institutional
controls pose some serious limitations to effective performance of the
property manager. These institutional controls include; administrative
bottleneck, institutional objectives, rent control, covenant in leases etc. It is
based on these findings that the research sought to examine the effects of
these controls on the effective and efficient performance of management
functions in public estates with a view of providing measures to mitigate
these effects.
CHAPTER THREE
61
3.0 RESEARCH DESIGN AND METHODOLOGY
This chapter discussed the methodology adopted in this study. It
explained systematically, the step by step procedure adopted, in carrying out
the study. It discussed the research design, sources of data, study area,
population of study, sample size and sampling technique, instrument of data
collection, reliability and validity of instrument and method of data
presentation and analysis.
3.1 RESEARCH DESIGN
The major research designs adopted for this study are the survey, and
case study research designs. These designs were used because it was not
possible for the researcher to reach every member of the population hence
samples were drawn from the population where a particular area was chosen
(C.B.N. Quarters), to carry out an in-depth study about the area, based on
the problem of the study.
3.2 RE-STATEMENT OF THE PROBLEM
It has been earlier stated in chapter one that management of estates is
a professional work requiring the skill and expertise of consultants trained in
the field of estate management. However, due to some basic
misconceptions, many untrained people venture into management of estates
as in the case with many other professions, the result of which is often
unimaginable. The effect of lack of skill and training on the part of
management is as disastrous in private as it is in public estates.
However, because private estates allow near maximum freedom to the
estate managers, trained and therefore skilled management have resulted to
very well maintained and positive result oriented investment in private
estates. It is however obvious that where even trained and skilled
management are in place in public estates, the result is not the same.
62
Hence, the problem of this research work is to identify the reasons for
these shortcomings and their effects on the management of public estates.
3.3 BRIEF DESCRIPTION OF THE STUDY AREA
Central Bank of Nigeria quarters is situated at Trans Ekulu in Enugu
East Central Development Council of Enugu State. It is bounded in the
North by Nike Lake, West by Ugbo-Odogwu and in the South by Ekulu
River or Government Reserved Area (GRA). It is a large residential estate
built for senior, intermediate and junior staff of the bank. The estate is
fenced with sand Crete block walls and provided with one (1) number
double leaf steel entrance gate and a pedestrian gate. It comprises of the
following; 16 number blocks of 8 number 2 bedroom flats each (i.e. 128
flats) without boys quarters for junior staff , 12 number block of 8 number
3 - bedroom flats each (i.e. 97 flats) without boys quarters for intermediate
staff., 6 number blocks of 6 number 3 – bedroom flats each (i.e. 36 flats)
with boys quarters and garage for senior staff.
- A semi detached duplex of 4 – bedroom each with boys quarters and
garage for executive accommodation.
- 2 number purpose built office complexes on 2 and 4 floors on land area of
0.9251 hectares.
- 1 security house and staff clinic (see fig. 3.1 in appendix 4 for details).
SITE
The site of the estate is rectangular in shape and appears relatively flat and
well drained. It has an area of approximately 19.92 hectares.
CONSTRUCTIONAL DETAILS
Floor: Mass concrete on well rammed hardcover fillings over
Consolidated laterite and finished with terrazzo floor finish.
Wall: Reinforced sandcrete blocks rendered internally and externally and
finished with emulsion paints internally and texcote paints externally.
63
Doors: The internal doors are wooden flush doors while the external doors
are made of corrugated iron doors.
Windows: The windows are of louver type for junior and intermediate
Staff accommodation and aluminum sliding windows for senior
and executive staff accommodation.
Ceiling: Ceiling is made up of flat asbestos cross – battened with timber
strips for junior and intermediate staff accommodation and
acrylic ceiling boards for senior and executive staff
accommodation.
Roof: Roof of the buildings is of long span aluminum roofing sheets on
timber rafters and trusses.
Fittings: Bath tub and water closet with walls tilled with ceramic tiles to
dado height for the staff quarters and water Closet and showers for
the boys‟ quarters, wash hand basins and sinks.
FACILITIES IN THE ESTATE
The following facilities are provided in the estate;
Water treatment plant
Sewage treatment plant
Plant house
750KVA generator set
Pumping machine
Borehole
33,000 litres reservoir
Incinerators for solid waste disposal
External lighting (Street lights)
Road tarred with coalter right round the estate.
3.4 SOURCES OF DATA
64
The data for the study was collected through primary and secondary
data.
3.4.1 PRIMARY DATA: These include data collected
from field observation and interviews.
3.4.2 SECONDARY SOURCES: These include; information
gathered from text-books, magazines, journals, conference papers, and bills
and unpublished documents.
3.5 POPULATION OF THE STUDY
The universe of discourse is made up of the staff of Central Bank of
Nigeria, Enugu regional office, all the properties in the estate and the
tenants occupying the properties and Estate Surveyors and Valuers in Enugu
metropolis including the firm of Oraegbunike and Co. who have been
managing the estate.
3.6 SAMPLE SIZE AND SAMPLING TECHNIQUE
The Taro Yamane‟s fomular for finite population was adopted in
determining the sample size for the study. Estimated total number of
population.
Staff of C.B.N - 100
Tenants - 264
Estate surveyors & valuers - 100
Total = 464
Sample size n = N
1+N (e)2
where N = total population
n = sample size
65
I = unity
e = limit of tolerable error.
Hence n = 464
1+464 (0.05)2
n = 213
The sample size was selected using the stratified random sampling
technique. However, the constitution of the sample size is shown in table
3.1 below.
TABLE 3.1: CONSTITUTION OF SAMPLE SIZE
Name of Group Total
Population
Percentage
Contribution
Contribution of
Sample size
Staff of C.B.N. 100 46.34% 46
Tenants of the
Estate
264 46.34% 122
Estate Surveyors 100 46.34% 46
Total 464 214
Percentage sample size
= Sample size x 100
Total population 1
215 x 100 = 46.34%
464 1
3.7 INSTRUMENT OF DATA COLLECTION
The major instrument used in the study is the questionnaire method.
The questionnaires were structured to have both open and close ended
questions. Close ended questions were dormant since they guarantee
uniformity in responses to the questions and this make analysis easier.
Other instruments used were observations and oral interview.
66
3.7.1 ADMINISTRATION OF THE INSTRUMENT
A total of 214 questionnaires were raised and administered on the
chosen samples. The researcher personally administered the questionnaires
on the staff of the Central Bank of Nigeria and tenants of the estate and
estate surveyors and valuers.
3.8 VALIDITY AND RELIABILITY OF THE INSTRUMENTS
The questions to the questionnaires were face validated to ensure that
the instrument contained questions which will properly elicit answers
relevant enough for the achievement of the research objectives. However,
the questionnaires were given to practicing estate surveyors and valuers who
are mostly involved in property management to assess and validate the
instrument. The reliability of the instrument was tested using the test retest
method at which a co-efficient of reliability of 0.85 was obtained.
3.9 METHOD OF DATA PRESENTATION AND ANALYSIS
The data collected for the study were presented in frequency tables
while the analysis was done using percentages, mean, and standard
deviation and chi-square techniques.
67
CHAPTER FOUR
4.0 DATA PRESENTATION AND ANALYSIS
The data collected from field survey were presented and analyzed in
this chapter based on the research questions and hypothesis that guided the
study. Only the questions relevant to the research questions were presented
and analyzed.
4.1 PRESENTATION AND ANALYSIS OF BASE DATA
The base data showing the distribution and return of questionnaire
and personal data and characteristics of the respondents were presented
below.
4.1.1 ANALYSIS OF QUESTIONNAIRE RETURNS
Three (3) sets of questionnaires classified as set A, B, and C totaling
214 were distributed to three categories of samples selected for the study.
One hundred and ninety two (192) representing 89.72% of the distributed
questionnaires were correctly filled and returned.
TABLE 4.1: ANALYSIS OF THE DISTRIBUTION AND RETURN OF
QUESTIONNAIRE
Question
Classification
Sample
Group
Questionnaire
Distribution
Number of
Questionnaire
Returned
Percentage
Returned
A Staff of CBN 46 46 21.5
B Estate Surveyors
& Valuers/
Managing Agents
46 46 21.5%
C Tenants of the
Estate
122 100 46.7%
Total 214 192 89.7%
Source: Researcher’s field survey 2008
68
Table 4.1 above indicates that 46 questionnaires classified as A were
distributed to the staff of Central Bank of Nigeria (CBN) while 46
questionnaires representing 21.5% of the total questionnaires distributed
were correctly field and returned. Also, 46 questionnaires classified as B
were distributed to the Estate surveyors and valuer/managing agents of
C.B.N. quarters while all of them representing 21.5% of the total distributed
questionnaires were correctly filled and returned. The table also revealed
that 122 questionnaires classified as C were distributed to the tenants of the
estate while 100 representing 46.7% of the total distributed questionnaire
were correctly filled and returned.
The correctly filled and returned questionnaire totaling 192
representing 89.7% were used for analysis. However the return rate 89.7%
is high enough to justify the data analysis.
4.1.2 PERSONAL DATA OF RESPONDENTS
Personal characteristics of respondents/samples used for this study
were presented and analyzed below.
TABLE 4.2: RESPONSE ON SEX OF THE RESPONDENTS
(QUESTIONS A1, BA AND C1)
Sex Frequency % Frequency
Male 142 73.96%
Female 50 26.04%
Total 192 100%
Source: Researcher’s Field Survey 2007
Table 4 .2 above shows that out of 192 respondents, 142 persons
representing 73.96% of the respondents were males while 50 persons
69
representing 26.04% of the respondents were females. This shows that the
majority of the respondents were males.
TABLE 4.3: QUALIFICATION OF RESPONDENTS (QUESTIONS A3,
B2,AND C3
Qualification Frequency % Frequency
FSLC - -
WASC/GCE 40 20.83%
Degree/HND 130 67.71%
Masters and Above 22 11.46%
Total 192 100%
Source: Researcher’s Field Survey 2007
In table 4.3, it could be observed that 40 persons representing 20.83%
of the respondents attained secondary education, 130 persons representing
67.71% of the respondents have first degree/higher National Diploma while
22 persons representing 11.46% of the respondents have masters degree and
above. This means that all the respondents are literate and could therefore
understand and answer the questions in the questionnaires without
problems.
TABLE 4.4: RESPONSE ON THE NUMBER OF YEARS THE
RESPONDENTS HAVE WORKED IN THE
ESTABLISHMENT(QUESTIONS A2 ).
Length of Time Frequency % Frequency
Under 10 years 5 10,87%
11 – 20 years 28 60.87%
Over 20 years 13 28.26%
Total 46 100
Source: Researcher’s Field Survey 2007
Table 4.4 above indicates that out of 46 respondents, 10 persons
70
representing 10.87% respondents have worked in the establishment between
1 – 10 years, 28 persons representing 60.87% respondents have worked
between 11 – 20 years and 13 persons representing 28.26% of the
respondents have worked for over 20 years. This implies that the majority
of the respondents have worked in the establishments for a long time and
therefore, they have the required experience to answer the questions in the
questionnaire.
TABLE 4.5: RESPONSE ON THE STATUS RANK OF
RESPONDENTS (QUESTION A5 AND C3)
Status/Rank Frequency % Frequency
Junior Staff 42 28.77%
Senior Staff 104 71.23%
Total 146 100%
Source: Researcher’s Field Survey 2007
In table 4.5 above it could be observed that 42 persons representing persons
28.77% of the respondents were junior staff while 104 persons representing
71.23% of the respondents were senior staff. This shows that the majority
of the respondents are senior staff in their various organization, this
indicates that they will be knowledgeable about how the organization
operate.
TABLE 4.6: RESPONSE ON WHETHER THE RESPONDENT IS A
REGISTERED ESTATE SURVEYOR AND VALUER
(QUESTION B3)
Response Frequency % Frequency
Yes 36 78.26%
No 10 21.74%
Total 46 100%
Source: Researcher’s Field Survey 2007
71
Table 4.6 shows that 36 persons representing 78.26% of the respondents are
registered Estate Surveyors and Valuers while 10 persons representing
21.74% of the respondents are not registered but read Estate Management.
This implies that greater number of the respondents are in practice and
therefore would be able to assess the situation properly.
TABLE 4.7: RESPONSE ON HOW LONG THE TENANT HAS LIVE
IN THE ESTATE
Length of Time Frequency % Frequency
Less than 5 years 4 4%
6 – 10 years 60 60%
10 years and above 36 36%
Total 100 100%
Source: Researcher’s Field Study 2007
Table 4.7 above indicates that 4 persons representing 4% of the respondents
have lived in the estate for less than 5 years 60 persons representing 60% of
the respondents have lived in the estate between 6 – 10 years while 36
persons representing 36% of the respondents have lived I the estate from 10
years and above. This implies that the majorities of the tenants in the estate
have lived for a long period of time and will be able to assess the issues
raised in the questionnaire.
4.2: PRESENTATION AND ANALYSIS OF DATA ON RESEARCH
QUESTION 1.
What are the institutional controls affecting management of public
estates?
Questions A5, A6 and B6 of the study questionnaire are relevant to the
above research question.
72
TABLE 4.8: RESPONSE ON WHETHER C.B.N. ADOPTS SOME
INSTITUTIONAL CONTROLS IN THE MANAGEMENT OF THE
ESTATE?
Response No. of Response % of Response
Yes 42 91.3%
No 4 8.7%
Total 46 100%
Source: Researcher’s Field Survey 2007
In table 4.8, above it was discovered that 42 respondents
representing 91.3% agreed that C.B.N. as an Institution adopt
some controls that affect the management of the estate on the other hand 5
respondents representing 8.7% disagree with the above fact.
The implication is that there are some institutional controls that affect
the management of public estate.
TABLE 4.9: OBJECTIVES OF MANAGING PUBLIC ESTATES
(QUESTIONS A6, AND B6)
Response Option Number
Or Response
% of Response
(a) Board approval of management
decisions (Administrative
bottleneck)
- -
b) Rent control - -
c) Covenant in leases - -
d) Policies of the organization - -
e) Objectives of the organization - -
f) Budget of the organization - -
e) All of the above 92 100%
Total 92 100%
Source: Researcher’s field Survey 2007.
73
Table 4.9 above indicates that the sample size agreed that all the
factors mentioned are the institutional controls adopted by public
institutions which affect the management of public properties.
This however also implies that there are institutional controls that
affect management of public properties.
4.3 PRESENTATION AND ANALYSIS OF DATA ON RESEARCH
QUESTION 2
How do the management teams perform their management functions in
the estate?
Questions B 4 – B21 and C8 – 20 of the study questionnaires are relevant to
this research question. The questions were asked to assess the performance
of management team to determine whether they are affected by any of these
controls identified above.
TABLE 4.10: RESPONSE ON WHETHER THE ESTATE
SURVEYOR/MANAGEMENT CONSULTANT
HAVE EVER BEEN INVOLVED IN
MANAGEMENT OF PUBLIC ESTATE.
Response No. of Response % of Response
Yes 40 86.96%
No 6 13.04%
Total 46 100%
Source: Researcher’s Field Survey 2007
In table 4.10 respondents representing 86.96% of the sample agree
that they have been involved in the management of public properties while 6
respondents representing 13.04% agreed that they have not been involved in
managing public properties.
The implication is that majority of the respondents have enough
experience to answer the questions provided in the questionnaire.
74
TABLE 4.11: MEAN RESPONSE ON OBJECTIVES OF
MANAGING PUBLIC PROPERTIES
S/N Response Option Response Pattern Mean Rank Remarks
3 2 1 _
x
1 Financial motive 42 2 2 2.87 2nd
Accept
2 Social motive 44 2 0 2.96 1st Accept
3 Prestige 25 18 3 2.48 4th Accept
4 Continuity 40 6 0 2.87 3rd
Accept
5 Independence 0 44 2 1.96 5th Reject
Source: Researcher’s Field Survey 2007
The mean in table 4.11 above were computed by first scoring the
response pattern of the respondents for each response option thus; positive
response, negative response and no response 3, 2, 1 respectively. The
scores were used to multiply the number of respondents according to
response pattern to obtain the mean using the fomular
ΣFx where F = Number of respondents
Σf X = response pattern.
The response option with the highest mean was used for the ranking.
However a cut off point for the mean was computed by adding the weighted
response that is 3+2+1 = 6 and dividing by number of response pattern
which is 3 in this case. Hence cut off point = 6/3 = 2. This implies that any
response option which has a mean of two (2) and above is accepted as the
objective of managing public properties. The table shows that the 1st – 4
th
objectives are considered in the management of public estates (C.B.N.
Estate) while the last (independence) is not considered as one of the
objectives of managing the estate since it did not meet the cut off point as
stated earlier.
75
The table also shows that social motive ranked first (2.96) followed
by financial motive (2.87), continuity (2.87) and prestige (2.48)
respectively. The observation above was further buttressed with an oral
interview with the staff of Oraegbunike & Co. when they observed that if
the objective of managing the estate is only social, then there is no point
collecting rent from the tenants not to talk of maintaining the facilities
provided in the estate to ensure continuity. The implication of the above is
that the management of the estate is carried out with the aim of maximizing
the aforementioned objectives. Thus, agreeing with the earlier indication of
institutional objectives being part of institutional control.
TABLE 4.12: RESPONSE ON THE MANAGEMENT STRATEGY
ADOPTED IN REALIZING MANAGEMENT OBJECTIVES
Response Option Number of Response % Response
Reactive style 34 74%
Pro-active style 6 13%
Both 6 13%
Total 46 100
Source: Researcher’s Field Survey 2007
Table 4.12 above show that 34 respondents representing 74% of the
sample agreed that they adopt re-active style in managing public estates
while 6 respondents representing 13% each agreed that they adopt pro-
active style or both reactive and proactive style in managing public estates.
However, further investigation through oral interview revealed that the
management is constrained by some of the policies of the organization that
lead to the adoption of reactive style of management. The implication of the
above observation is that management of public estates mostly adopts
reactive style of management as opposed to proactive style.
76
TABLE 4.13: RESPONSE ON RENTS CHARGED ON DIFFERENT
TYPES OF ACCOMMODATION WITHIN THE ESTATE
Property Type Rent per Month Rent Per Annum
B N36,000 N432,000
C 24,000 288,000
D 18,000 216,000
E 6,000 192,000
Key
Property Type B = Duplex
C = 3 Bedroom bungalow
D = 3 Bedroom flats
E = 2 Bedroom flat
Source: Oraegbunike & Co. (Estate Surveyors & Valuers)
Table 4.13 above shows the rents charged on different types of
accommodation within the estate. To determine whether these rents are
influenced with any of the controls mentioned earlier, an analysis of rents
charged on similar accommodation within the neighbourhood of the estate
were presented in the table below.
TABLE 4.14: RENTS OF DIFFERENT ACCOMMODATION IN THE
NEIGHBOURHOOD
Type of
Accommodation
Location Rent/month Rent/Annum
Duplex New Haven N37,500 N450,000
Trans-Ekulu 37,500 450,000
Old G.R.A. 37,500 450,000
3 bedroom bungalow New Haven 29,166 350,000
Trans Ekulu 25,000 300,000
Old G.R.A. 25,000 300,000
3 bedroom flat New Haven 20,000 240,000
Trans Ekulu - Not applicable
G.R.A. 20,000 250,000
2 bedroom flat New Haven 18,000 216,000
Trans Ekulu - -
G.R.A. 19,000 22,800
Source: Field Survey 2007
The result of the two tables above were further presented in a
compound bar chart for easy comparison..
77
Duplex 3 Bed 3 Bed 2 Bed
Buglow Flat Flat
F.4.1 : Compound Bar Chart showing rents paid on different types of
accommodation in C.B.N. and other neighbourhood.
Types of Accommodation
Source: Researchers Field Survey 2007.
450
400
350
300
250
200
150
100
50
0
C.B.N.
Other Neighbourhood
Rents
In
N’000
78
Fig. 4.1 above and tables 4.13 and 4.14 show that there are
differences in rents paid on different types of accommodation within the
C.B.N. quarters and similar accommodation within the same
neighbourhood. This shows that the occupants of the estate enjoy reduced
or fair market rent as opposed to other tenants occupying similar
accommodation within the same neighbourhood. This also testify to the fact
that rent control forms part of institutional control since some people
interviewed orally also agrees that some of these organization sometimes
stipulate the rent that will be paid by their staff.
TABLE 4.15: RESPONSE ON FACTORS INFLUENCING THE
RENTS CHARGED ON PUBLIC PROPERTIES.
Response Option Frequency % Frequency
Market forces 5 10.87%
Reserved rent 16 34.78%
Management policy 25 54.35%
Total 46 100%
In table 4.15 above it could be observed that majority of the
respondents 25 representing 54.35% of the samples agreed that the major
factor influencing the rents charged on different classes of accommodation
is management policy.
Also 5 respondents representing 10.87% agreed that the rents charged
were influenced by market forces and reserved rents respectively.
The implication of the above indicates that management policy also
affect the management of the estate and impose some forms of control.
79
TABLE 4.16: RESPONSE ON FACTORS CONSIDERED IN
SELECTION OF TENANTS
Response Option Number of
Respondents
% Number of
Respondents
Financial capability 15 32.6%
Social background - -
Religious background - -
Size of family - -
Moral background - -
Employment 31 67.4%
Total 46 100%
Source: Researcher’s Field Study 2007.
Table 4.16 above indicates that the major factors considered in
selection of tenant in public estates are; employment status 67.4% and
financial capability representing 32.6% of total sample. Further
investigation from oral interview revealed that the major consideration is on
employment status hence, once you are a staff of C.B.N., you are entitled to
have accommodation while financial status is only considered to determine
the type of accommodation to be given.
The implication of the above response is that managers of the estate
cannot employ their skill and expertise in using their own criteria for tenant
selection. This shows again that they are constrained in exercising their
skill.
80
TABLE 4.17: RESPONSE ON METHOD OF ADVERTISING FOR
VACANCY IN THE PROPERTIES
Response Option Number of
Respondents
% Number of
Respondents
Through billboard 46 100%
Through interpersonal contact - -
Computer via Internet - -
Through Newspaper - -
Magazine publication - -
Total 46 100%
Source: Researcher’s Field Survey 2007.
In table 4.17 above it can be seen that the major means of advertising
for vacancy in the public estate (CBN quarters) is through billboard.
Further interview with the managing agent revealed that there is no need
advertising through other methods since majority of the accommodation are
given to the staff of the organization. This also revealed that vacant
accommodation can be given to outsiders when there is no C.B.N. staff
requiring such accommodation.
The implication of the above response also indicates that there are
controls inhibiting estate managers in taking decisions in managing the
estate.
TABLE 4.18: RESPONSE ON HOW VOID IS CONTROLLED IN THE
ESTATE.
Response Option Frequency of
Respondents
% Frequency
By putting fair market rent 35 76%
Good landlord/agent /tenant relationship 6 13%
Good management/maintenance of
properties/facilities
5 11%
Total 46 100%
Source: Researcher’s Field Survey 2008
81
Table 4.18 above shows that 35 respondents representing 76% of the
samples agreed that void is controlled by putting fair market rent in public
estates while 6 respondents representing 13% of respondents said that void
is controlled through good landlord (agent) and tenant relationship. 5
respondents representing 11% of the samples also agreed that void is
controlled through good maintenance of the properties. This implies that
void in public estates are mostly controlled by putting fair market rent
instead of open market rent. This also attests to the fact that the objectives
of public estate are not only financial hence a form of rent control is applied
in public properties.
TABLE 4.19: RESPONSE ON WHETHER THERE ARE OTHER
FACILITIES IN THE ESTATE
Response Option Frequency of
Respondents
% Frequency
Yes 46 100%
No - -
Total 46 100%
Source: Researcher’s Field Survey 2007
From table 4.19 above it could be deduced that apart from buildings,
there are other facilities like sewage treatment plant, waste management
equipment, plant house etc. that are available in the estate which are equally
managed and maintained.
TABLE 4.20: MEAN RESPONSE ON HOW FUNDS FOR MAINTENANCE
OF FACILITIES AND EXTERNAL REPAIRS ARE
GENERATED
Response Option Response Pattern
3 2 1
_
X
Rank Remarks
Service charge 46 - - 3.00 1st Accept
Rent collected from tenant 44 - 2 2.91 2nd
Accept
Budget from the organization - 43 3 1.93 3rd
Reject
Source: Researcher’s Field Survey 2007.
82
Table 4.20 above shows that the major means of raising fund for the
maintenance of available facilities and external repairs are through service
charge (mean of 3.00) and rent paid by tenants (mean of 2.91).
TABLE 4.21: RESPONSE ON THE ADEQUACY OF THE
AVAILABLE FUNDS IN CARRYING OUT
MAINTENANCE
Response Option Frequency % Frequency
Yes - -
No 46 100%
Total 46 100%
Source: Researcher’s Field Survey 2007.
In table 4.21 above it could be seen that the funds generated through
service charged and rents are not adequate for carrying out all the necessary
maintenance required in the estate. Further investigation through oral
interview reveals that because it is a government property, most tenants
refuse to pay their rents and service charged as and at when due.
This implies that lack of funds is a problem militating against
effective maintenance of facilities and properties in public estates.
TABLE 4.22: RESPONSE ON HOW EXTRA FUND IS RAISED
FOR CARRYING OUT THE MAINTENANCE OF
FACILITIES/EXTERNAL REPAIRS
Response Option Frequency % Frequency
Wait for the organization to approve funds 35 26%
Source funds externally 7 15.3%
Both 4 8.70%
Total 46 100%
Source: Researcher’s Field Survey 2007.
83
Table 4.22 revealed that 35 respondents representing 76% of the
samples agreed that extra fund for maintaining facilities in the estate are
generated by waiting for management of the organization to approve more
fund. 7 respondent representing 15.3% of the samples agreed that they
source funds externally while 4 respondents representing 8.7% of samples
agreed that they source funds both externally and by waiting for the
organization to approve funds.
The implication of the above result is that managers of public estates
wait for the organization to approve more funds to carry out their
maintenance functions. Thereby, confirming board approval or
administrative bottleneck as a control that affect the management of public
properties.
TABLE 4.23: RESPONSE ON FACTORS THAT
INFLUENCED CHOICE OF ACCOMMODATION OF
TENANTS
Response Option Frequency of
Response
% Frequency
Status/rank 75 75%
Family Size - -
Income level 25 25%
Total 100 100%
Source: Researcher’s Field Survey 2007.
Table 4.23 above shows that majority of the tenants (75) representing
75% of the total samples agreed that the factor that influenced their choice
of accommodation is their status/ranks. 25 respondents representing 25% of
the samples agreed that it is their income level that influenced their choice
of accommodation.
84
The implication of this response is that accommodations in the estate
are given according to the status/rank of the prospective tenant.
TABLE 4.24: RESPONSE ON WHETHER TENANTS ARE
SATISFIED WITH RENT PAID ON THE
ACCOMMODATION THEY OCCUPY
Response Option Frequency of
Response
% Frequency
Yes 20 20%
No 80 80%
Total 100 100%
Source: Researcher’s Field Survey 2007.
Table 4.24 above indicates that majority of the tenants 80
representing 80% of the samples are not satisfied with the rent they pay
while 20 representing 20% of the samples agreed that they are satisfied with
the rent they pay. This implies that the majority of the tenants are not
satisfied with the rent they pay showing that something is wrong
somewhere.
TABLE 4.25: RESPONSE ON THE REASON WHY TENANTS ARE
NOT SATISFIED WITH RENT PAID.
Response Option Frequency of
Response
% Frequency
The properties are not in good state
of repairs
- -
Facilities are not well maintained - -
Lack of unsteady supply of amenities - -
All of the above 100 100%
Total 100 100%
Source: Researcher’s Field Survey 2007
85
From table 4.25 above, it could be seen that 100 respondents
representing 100% of the samples agreed that all the factors mentioned are
the reasons why they are not satisfied with the rent they pay on the
accommodation occupied.
The implication is that the management of the estate is not living up
to the expectation of the tenants. This also shows that management is not
very efficient.
TABLE 4.26: RESPONSE ON WHETHER TENANTS EXPERIENCE ANY
FORM OF DISREPAIR IN THEIR PROPERTIES
Response Option Frequency of
Response
% Frequency
Yes 95 95%
No 5 5%
Total 100 100%
Source: Researcher’s Field Survey 2007.
Table 4.26 above shows that 95 respondents representing 95% of the
samples agreed that they experience some disrepair in their properties. 5
respondents representing 5% agree that they do not experience any
disrepair. The implication is that the tenants experience disrepair in the
properties they occupy. This also confirms that managers of the estate do
not live up to their responsibilities.
TABLE 4.27: RESPONSE ON WHO TAKES CARE OF THE
REPAIRS
Response Option Frequency of
Response
% Frequency
C.B.N. staff - -
Contractors - -
Managing consultants 100 100%
Total 100 100%
Source: Researcher’s Field Survey 2007.
86
In table 4.27 above, it can be deduced that repairs and maintenance of
the properties are carried out by management consultant (Oraegbunike &
Co.). The implication of this is that the lack of proper maintenance in the
estate is not due to use of non professionals but the problem of not giving
the professionals freehand to run the estate.
TABLE 4.28: RESPONSE ON THE LENGTH OF TIME IT TAKES TO ATTEND
TO TENANTS COMPLAINS ON REPAIRS
Response Option Frequency % Frequency
Very long 82 82%
Long 18 18%
Short - -
Total 100 100%
Source: Researcher’s Field Survey 2008
From table 4.28 it could be seen that 82 respondents representing
82% indicates that it takes a very long time for their complains to be
attended to, while 8 respondents representing 18% agreed that it takes a long
time. The implication is that their complains are not promptly attended to.
TABLE 4.29: RESPONSE ON REGULARITY AND ADEQUACY OF
BASIC AMENITIES/FACILITIES PROVIDED IN
THE ESTATE
Response Option Frequency of
Response
% Frequency
Very regular/very adequate - -
Intermittent/fairly adequate 24 24%
Irregular/not adequate 76 76%
Total 100 100%
Source: Field Survey 2007
Table 4.29 above shows that most of the respondents 76 representing
76% of the respondents agreed that there is irregular supply of some of the
87
basic amenities provided in the estate. 24 respondents representing 24%
agreed that most of these amenities are intermittently supplied. Further
enquiry into the above question through oral interview revealed that some of
these amenities include power and water supply. This response shows that
management is not fully living up to their expectation due to some of the
controls that have been mentioned earlier.
TABLE 4.30: RESPONSE ON THE RATING OF THE
PERFORMANCE OF THE PROPERTY
MANAGERS BY THE TENANTS AND CBN
STAFF (QUESTIONS (A13 AND 20)
Response Option Frequency of
Response
% Frequency
Very good - -
Good 40 27.40%
Fair 106 72.60%
Poor - -
Very poor - -
Total 146 100%
Source: Researcher’s Field Survey 2007
Table 4.30 above reveals that the respondents 4o representing 27.40%
of the samples rated the performance of managing agents good, while 106
respondents representing 72.60% of the samples rated their performance
fair. The implication of the response is that management agents need to
improve in their performance in the management of the properties. This
also shows that managers of the properties encounter some limitations in
carrying out their functions.
88
4.4.0 DATA PRESENTATION AND ANALYSIS OF RESEARCH
QUESTION THREE
What are the impacts of the identified institutional controls in the
management of public estates?
Questions A8 – 9 and B2 & 24 are relevant to this research question.
The questions were asked to establish whether institutional controls have
any impact in the management of public estates and the nature of these
impacts.
TABLE 4.31: RESPONSE ON WHETHER INSTITUTIONAL
CONTROL HAS ANY IMPACT IN THE
MANAGEMENT OF PUBLIC PROPERTIES
(QUESTIONS A8 AND B22)
Response Option Frequency of
Response
% Frequency
Yes 80 86.96%
No 10 10.87%
Don‟t know 2 2.175
Total 92 100%
Source: Researcher’s Field Survey 2007.
Table 4.31 above indicated that majority of the respondents 80
representing 86.96% of the samples agreed that institutional control exert
some impact in the management of public estates. 10 respondents
representing 10.87% and 2 respondents representing 2.17% are of the
opinion that they don‟t have any impact and they don‟t know whether it has
any impact or not respectively. The implication is that institutional controls
have impact in the management of public estates.
89
4.4.1 TEST OF HYPOTHESIS
TABLE 4.32: A 2 X 3 CONTINGENCY TABLE ON WHETHER
INSTITUTIONAL CONTROL HAS ANY IMPACT
IN THE MANAGEMENT OF PUBLIC ESTATES
Responses Observed
Frequency
Expected
Frequency
X (0ij - Eij)2
Yes 80 30.67 79.34
No 10 30.67 13.93
Don‟t know 2 30.67 26.80
Total 92 92 120.07
Source: Derived from Table 4.25
X2 = Σ (Oij – Eij)
2
Eij
Where Oij = Observed frequency
Eij = Expected frequency
Therefore X2 = (80 – 30.67)
2 + (10 – 30.67)
2
30.67 30.67
(2 – 30.67)2 = 79.34 + 13.93 + 26.80 = 120.07
30.67
X2 = 120.07
Level of significance (2) adopted is 5% or 0.05 while the degree of
frequency (d.f) is calculated thus:
d.f = (R – 1) (K – 1)
where R = No of rows
K = No of columns
i.e. (3 – 1 ) (2- 1)
= (1 x 2) = 2
d.f = 2
From the chi-square table shown in appendix 3 X2 at 0.05∞ at 2df is
5.95.
90
DECISION RULE
Reject Ho if X2 cal > X
2 table value
Otherwise accept Ho
DECISION
Since X2 calculated value of 120.07 is greater than X
2 table value of
5.95, we reject the null hypothesis and uphold the alternative hypothesis.
CONCLUSION: We therefore, conclude that institutional controls have
significant impact in the management of public estates.
TABLE 4.34: MEAN RESPONSE ON THE IMPACT OF INSTITUTIONAL
CONTROL IN THE MANAGEMENT OF PUBLIC
PROPERTIES (QUESTION B24)
Response Option Response Pattern _
x
Rank Remarks
Inhibits the freedom of the estate
managers in exercising their skills
and expertise
82 6 4 2.85 2nd
Accept
It cause delay in implementing
decisions
80 5 7 2.79 4th
Accept
It leads to the adoption or reactive
management style
80 10 2 2.85 3rd
Accept
It leads to delay in responding to
management and maintenance
problems
78 9 5 2.79 5th Accept
It inhibits efficient and effective
management of properties in the
estate
85 5 2 2.90 1st Accept
Source: Researcher’s Field Survey 2007.
Table 4.34 above indicated that the mean ranking of the options
showed inhibition of efficient and effective management of properties,
inhibition of managers freedom, delay in implementing decisions, delay in
responding to maintenance problems, and adoption of reactive management
as ranking 1st, 2
nd, 3
rd 4
th and 5
th respectively. The mean response also
91
showed that all the above factors should be accepted as the impact of
institutional factors in the management of public properties.
4.5.0 DATA PRESENTATION AND ANALYSIS OF RESEARCH
QUESTION 4.
What should be done to avert the negative impact of these controls in
the management of public estates? Questions B25 and C21 are relevant
to this research question.
These questions were asked in other to determine what should be
done to curb the impact of the identified controls in the management of
C.B.N. quarters and other similar estates.
TABLE 4.35: RESPONSE ON WAYS OF CURBING THE IMPACTS OF
INSTITUTIONAL CONTROL IN THE MANAGEMENT OF
PUBLIC ESTATES QUESTIONS B25 & C21).
Response Option Frequency of
Response
% Response
Institutional owing these estates should
relax some of these controls especially in
the aspect of property management.
- -
Managers should be given freehand to
show their skill and expertise in carrying
out their management functions
- -
Professionals should always be used in
managing public properties
- -
Funds should always be made available as
and at when due for easy management of
the properties
- -
All of the above 146 100%
Total 146 100%
Source: Researcher’s Field Survey 2007.
In table 4.35 it can be seen that respondents 146 representing 100%
agreed that all the factors mentioned are the things to be done to avert the
negative impacts of these controls in the management of public properties.
The implication of the above is that the factors above are the possible
solutions to avoid the impact of these controls in management of public
properties.
92
CHAPTER FIVE
5.0 DISCUSSION, FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 DISCUSSION
Institutional control which comes in form of laid down rules and
regulations of the organization was found to be affecting the management of
public estates. Some controls like administrative bottleneck was found to be
one of the major controls that affect management of public properties. This
finding was in line with the view of Veale (1989) where he identified that
the hierarchy of the decision making body in public estate poses some form
of control in public estate management. However it was discovered through
research question one that Central Bank of Nigeria adopts some of these
controls which invariably affect the management of the estates. These
controls most times are not usually in line with the normal principle of
property management and however, hinder the freedom of the estate
manager in performing his functions diligently. Apart from administrative
bottleneck, other forms of controls like policies of the organization,
controlled rent, etc also affect management of public estate. The second
research question however sought to examine performance of the
management of Central Bank of Nigeria to see whether they are affected by
some of the controls identified above. The result of the questionnaire
response and oral interview however shows that all the functions of the
estate manager in property management are virtually affected by these
controls. This finding was contrary to the view of Ratcliff (1978) where he
maintained that the function of the estate manager is to plan and formulate
policy or set of policies to meet the objectives of the estate. However, in
public estates the property manager is guided by the policies of the
organization which hinders the application of his skill, knowledge and
93
expertise in formulating policies for efficient management of the estate.
This does not suggest that they are not allowed to plan at all but this shows
that their plans must be guided by the policies of the organization. It was
however obvious that such other function like co-ordination, forecasting and
controlling are also affected by these policies. This is evident from the
questions answered by the management team/estate surveyors and valuers
and tenants of the estate where it was found out that certain decisions cannot
be taken unless an approval is gotten from the top management. The estate
surveyor/property managers are not allowed to use their experience in
adopting some estate control to ensure effective management of public
estates. These hindrances are seen in areas of using criteria for selection of
tenants, adopting lease agreements, negotiation of terms and maintenance
control in managing the estate. They however follow the policy of the
organization in carrying out some of their functions. The management
staffs were however found not to be very efficient in maintaining the
facilities and properties in the estate. This was evident from the tenants
responses on the adequacy and availability of some amenities like power
supply, water supply, waste disposal, etc. Majority of the tenants confirmed
that the supplies of these amenities are irregular and in the case of power
supply, the alternative generator set has long been unavailable. Also from
personal observation, some of the facilities and properties in the estate are
fairly maintained showing that management has not been very effective.
Management however, confirmed that they are constrained by these
extraneous controls which hinder their performance. They also confirmed
that inadequate provision of funds and other controls make it difficult for
them to adopt proactive management style and therefore, they resort to
reactive management style where management apply corrective
maintenance instead of preventive maintenance and management style in
managing the estate. More so, it was discovered that the management are
94
not always given the freehand to apply their expertise and skill in managing
the properties. This was deduced form the responses from the response
from research question three where both staff of Central Bank of Nigeria
and the estate surveyors and valuers confirmed that these institutional
controls have significant impact in the management of the estate. This
result was further strengthened by the hypothesis test where the null
hypothesis was rejected and the alternative upheld showing that institutional
control exerts significant impact in the management of public estates.
Further investigation on the nature of the impacts revealed that management
lack the freedom in applying their skill/expertise in running the estate and
funds are not provided as and at when due which leads to delay in
responding to matters that need urgent attention. This invariably leads to
ineffective and inefficient management of the estate which is seen from the
physical condition of the properties which are in a state of disrepairs. The
findings were summarized below.
5.2 SUMMARY OF FINDINGS.
Based on the data analysis in the previous chapter the following
findings were made.
There are some institutional controls affecting the management of
public properties. These controls include:-
Board approval of management decisions (administrative bottleneck).
Certification of work done by management.
Rent control
Covenant in leases.
Institutional objectives.
Policies of the organization
Budget of the organization.
95
The controls identified above affects the performance of the
management crew in public properties. This is evident in the responses
from both the management crew and tenants of the estates and also the
hypothesis test where it was seen that the management lack in meeting up
with some of their responsibilities example; inefficient and ineffective
carrying out of maintenance/repairs as and when due and inefficiency in
maintaining some of the available facilities.
The management were found to be handicapped in using their skills
and expertise in carrying out their management function like making use of
management/lease control in ensuring tenants selections, financial control
etc. effective and efficient management of public estates due to the
institutional controls.
It was also discovered that institutional controls exert some impacts
on the management of public estates. Some of these impacts include:-
Inhibits freedom of management in taking decisions.
It causes delay in implementing decisions already taken by
management.
Management resorts to reactive management style instead of
proactive style in the management of the properties.
There is delay in responding to management and maintenance
problems.
It inhibits effective and efficient management of properties in the
estate which is evidenced in some of the properties and that are in a state of
disrepair.
96
5.3 CONCLUSION
The data available indicates that institutional controls exert some
impact on the management of public estates. Further investigation revealed
the nature of these institutional controls and how they affect management of
public estates which led to the investigation on what should be done to curb
the impacts. The strategies to adopt to curb these impacts formed the major
part of recommendation of the study.
Finally, the researcher concluded that institutional controls exert some
negative impacts on the management of public estates which lead to several
avoidable problems which could have been taken care of if the management
is given freedom to use their skills and expertise in managing the properties.
5.4 RECOMMENDATIONS
In order that the impacts of institutional control on management of
public properties are minimized, the researcher recommends as follows:
Management of public estates should relax some of these controls
especially in the aspect of property management.
Managers (i.e. property managers) should be given freehand to use
their skills and expertise in carrying out their management functions.
Professionals should always be used in managing properties whether
public or private.
Funds should be made available and most especially the organizations
should advise their staff to pay their rents and service charge as at when due
to ensure the smooth management and maintenance of the properties.
97
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101
APPENDIX 1
QUESTIONNAIRE
Department of Estate Management
Faculty of Environmental Sciences
University of Nigeria
Enugu Campus
26th July 2007.
Dear Sir/Madam,
I am a postgraduate student in the above department currently
carrying out a study on An Assessment of the Impact of Institutional
Control in the Management of Public Properties. I therefore solicit your
assistance in providing answers to the questions below. Kindly tick any
option you feel that is correct to the specific questions. Any comments that
may further clarify or elaborate the ticked answers are highly welcomed at
the end of the questionnaire.
Any information provided will not be used for any other purpose
other than academic research therefore, it will be confidential.
Thanks and God bless you for the contribution.
Yours faithfully
Obodoh Chikasi. M.
102
SET A
QUESTIONNAIRE TO THE STAFF OF CENTRAL BANK OF
NIGERIA
Instruction: Where there are many options tick as many as possible.
SECTION 1:
PERSONAL DATA OF RESPONDENT.
1. What is your sex? (a) Male (b) Female
2. How long have you worked in this establishment?
(a) Under 10 years (b) 11-20 years
(c) Over 20 years.
3. What is your qualification? (a) FSLC (b) WASC/GCE
(c) Degree/HND (d) Masters and above
4. What category of staff are you? (a) Senior (b) Junior
SECTION II
5. Do you employ any form of control in the running of the
organization? (a) Yes (b) No
6. Mention those controls adopted by the organization in the
management of her properties.
(a) Board approval of management decisions (administrative
bottlenecks)
(b) Final certification of work done by management
(c) Rent control (d) Policies of the organization
(e) Institutional goals/objectives
(f) Budget of the organization
(g) Covenant in leases (h) All of the above
103
7. What are the goals/objectives of the organization for owing the
estate? (a) Socio-economic (b) Financial
(c) Political (d) Continuity
(e) Independence (f) All of the above
8. Does these objectives and the other control mentioned above affect
the management of the estate? (a) Yes (b) No
9. If yes, how does each of these objective and other controls measures
affect the management of properties in the estate?
(a) It inhibits the freedom of the property managers in taking
decision
(b) It causes delay in implementing decisions
(c) It leads to delay in responding to management and maintenance
problems that need urgent attention
(d) Managers of the estate resort to reactive management style
instead of pro-active style.
(e) It inhibits effective and efficient management of properties in
the estate (f) All of the above.
10. What type of management approach is adopted by the organization?
(a) In house (b) Contractual (c) Both
11. If contractual, which firm/consultant is responsible?
(a) Estate firm (b) lawless firm
(c) Accountancy firm (d) Engineering firm
(e) Architectural firm.
12. How do you fund the management/maintenance of the estate?
(a) By fund generated from the properties
(b) By allocation in the budget (c) Both
104
13. How do you rate the performance of the management team?
(a) Excellent (b) Good (c) Fair
(d) Poor
SET B
QUESTIONNAIRE FOR THE ESTATE SURVEYORS AND
VALUERS/MANAGEMENT TEAM
PERSONAL DATA
1. What is your qualification? (a) B.Sc., M.Sc/Phd (Est. man)
(b) HND/OND (Est. man) (c) WASC/GCE
2 What is your sex? Male Female
3. Are you a registered Estate Surveyor/Valuer?
(a) Yes (b) No
4. How long have you been in practice? (a) Below 10yrs
(b) 10 – 20 yrs. (c) 30 yrs and above.
SECTION 11
5. Have you ever been involved in the management of public estate?
(a) Yes (b) No
6. How long have you bee involved in management of public
properties? (a) Below 5 yrs (b) 5 – 10 yrs.
(c) 11 yrs and above.
7. What are the objectives of managing public properties?
(a) Financial motive (b) Social motive
(c) Prestige (d) Continuity (e) Independence
8. What management strategy do you adopt in the realization of the
above objectives? (a) Reactive style (b) Proactive style
(c) Both
105
9. What is the rent charge on different categories of accommodation
units per annum? (a) Duplex (b) Bungalows (c) Flats
10. What rent is charged on similar accommodation in the
neighbourhood? (a) Duplex (b) Bungalows (c) Flats
11. What factors influence the rents charged in the estate/other public
estates? (a) Market forces (b) Reserved rents
12. What factors do you consider in selection of tenants?
(a) Financial capability (b) Social background
(c) Religious background (d) Size of family
(e) Employment status
13. How do you advertise vacancy that exists in the estate?
(a) Use of Newspapers (b) Bill boards
(c) Through inter personal contact (e) Computer via internet
14. How do you control void in properties?
(a) Good management/maintenance of properties
(b) Proper advertisement
(c) Good landlord/tenant relationship
(d) By putting four market rent
15. How do you collect data on the properties managed?
(a) Manually (b) Computer (c) Both
16. What type of security do you employ in the estate?
(a) Internal (b) External
17. Do you have other facilities in the estate? (a) Yes (b) No
18. If yes, above mention them. (a) Generator set
(b) Borehole (c) Lift (d) Pumping machines
(e) Water treatment plant (f) Central Sewage system
(g) All of the above.
106
19. How do you maintain these facilities?
(a) Service charge/maintenance by occupiers
(b) Funding form the organization
(c) Joint maintenance by landlord/tenant
20. How do you take care of external repairs in the estate?
(a) From funds raised through rents
(b) By budget allocation from the organization
(c) Both
21. Are these funds always available and enough to carry out the repairs?
(a) Yes (b) No
22. If No, to the above what do you do?
(a) Wait for the organization to approve more funds
(b) Source for funds externally (c) Both
23. Are you hindered by any form of control in carrying out your
management functions? (a) Yes (b) No
24 If yes, mention these controls
(a) Organizational objectives (b) Administrative bottleneck
(c) Policies of the organization
(d) Budget of the organization (e) Rent control
(f) Covenant in leases (g) All of the above
25 How do the above controls affect the performance of management?
(a) Managers are not given freehand to take decision for effective
and efficient management of the properties
(b) Management lack sufficient funds to manage and maintain the
properties
(c) Management resort to re-active instead of pro-active management
styles
(d) It causes delay in responding to repairs that need urgent attention
107
(e) It cause delay in taking decisions for proper management of the
properties.
(f) It leads to inefficient/ineffective maintenance of the properties
26. What do you suggest that could be done to curb these effects
identified above?
(a) Some of these controls by the organization should be relaxed
especially in the aspect of property management.
(b) Managers should be given freehand to show their skill and
expertise in carrying out their management functions
(c) Professionals should always be used in managing the properties.
(d) Funds should always be made available as and at when due for
easy management of the properties
(e) All of the above.
SET C
QUESTIONNAIRE TO TENANTS
SECTION 1
PERSONAL DATA
1. What is your sex? (a) Male (f) Female
2. Do you work in CBN? (a) Yes (b) No
3. What is your status/rank in your establishment?
(a) Senior staff (b) Junior staff
4. How long have you lived in the estate? (a) Les than 5 years.
(b) 6 – 10 years (c) 10 years and above
SECTION 11
5. What factors influenced your choice of accommodation?
(a) Statue/rank (b) Family size (c) Income level
6. What type of accommodation do you occupy?
(a) Flats (b) Duplex (c) Bungalows
108
7. What is the rent applicable to the property you occupy?
(a) Duplex (b) Bungalow (c) Flats
8. Are you satisfied with the rent paid? (a) Yes (b) No
9. If No why?..........................................................................................
(a) The properties are not in good tenantable condition
(b) Facilities are not well maintained
(c) Lack/unsteady supply of amenities
(d) All of the above
10. Do you experience any form of disrepair in the property occupied?
(a) Yes (b) No
11. If yes who takes care of the repairs? (a) CBN management
(b) Constrictors/agents (c) Managing consultants
12. How long does it take to attend to your complains?
(a) Very long (b) long (c) Short
13. What is the source of water supply in the premises?
(a) Mains (b) Boreholes (c) Water tank
(d) Well (e) Stream
14. How regular is the water supply? (a) Very regular
(b) Regular (c) Intermittent (d) Irregular
15. What is the source of electricity supply? (a) Main
(b) Generator set (b) Both
16. How regular is the electricity supply? (a) Very regular
(b) Regular (c) Intermittent (e) Irregular
17. Do you have adequate security in the estate? (a) Yes (b) No
18. Do you have adequate waste disposal facilities?
(a) Yes (b) No
19. How well are the wastes generated managed?
(a) Very well (b) Well (c) Poor
109
20 How do you rate the performance of the property managers?
(a) Very good (b) Good (c) Fair (d) Poor
21. What in your opinion should be done to improve the performance of
the estate managers?
(a) To make funds available to them to carry out maintenance and
repairs effectively
(b) To give them freedom to take decisions in managing the estate.
(c) All of the above.
110
APPENDIX 11
DETAILED CALCULATION OF THE MEAN RESPONSES OF
RESPONDENTS
1.2 MEAN CALCULATION OF DATA ON TABLE 4.5
Response Option Response Pattern
3 2 1
Mean
Financial motive 42 2 2 2.87
Social motive 44 2 0 2.96
Prestige 25 18 3 2.48
Continuity 40 6 0 2.78
Independence 0 44 2 1.96
Source: Researchers Field Survey 2008
– = fx where F = number of respondents
x f
x = Response pattern
42 x 3 + 2 x 2 + 1 x 2 = 126 + 4 + 2 = 132 = 2.87
46
44 x 3 x 2 x 2 + 0 x 1 =132 + 4 + 0 = 136 = 2.96
46
25 x 3 + 18 x 2 + 3 x 1 = 75 + 36 + 3 = 114 = 2.48
46
40 x 3 + x 2 + 0 x 1 = 120 + 12 + 0 = 132 = 2.87
46
111
1.2 MEAN CALCULATION OF DATA IN TABLE 4.14
TABLE 4.14
Mean response on how funds for maintenance of facilities and external
repairs are generated.
Response Option Response Pattern
3 2 1
Mean
-
x
Service charge 46 - -
Rent collected from tenant 44 - -
Budget/funds from the organization 25 18 3 2.48
Source: Researchers Field Survey 2007
X = 3, 2, 1: F = 46
– = 46 x 3+ 2 x 0 + 1 x 0 = 138 + 0 + 0 = 138 = 3.00
x 46
44 x 3 + 2 x 0 + 2 x 1 = 132 + 132 + 0 + 2 = 134 = 2.91
46
0 x 3 + 43 x 2 + 3 x 1 = 0 + 86 + 3 = 89 = 1.93
46
1.3 CALCULATION OF MEAN FOR DATA IN TABLE 4.27
Table 4.27: Mean response on the impact of institutional constitution control
in the management of pubic estates.
Response Option Response Pattern
3 2 1
Mean
_
x
Inhibits freedom of the estate managers in
exercising their skills and expertise
82 6 4 2.85
Causes delay in implementing decision 80 5 7 2.79
Leads to the adoption of reactive management
style
10 2 2 2.85
Leads to delay in responding to management
and maintenance problems
78 9 5 2.79
Inhibits efficient and affect the management of
the properties
85 5 2 2.90
Source: Researchers Field Survey 2007
112
Where x = 1, 2, 3 F = 192
– = 82 x 3 + 6 x 2 x 4 x 1 = 246 + 12 + 4 = 262 = 2.85
x 92
80 x 3 +5 x 2 + 7 x 1 = 240 + 10 + 7 = 257 = 2.79
92
80 x 3 + 10 x 2 + 2 x 1 = 240 + 20 + 2 = 262 = 2.85
92
78 x 3 + 9 x 2 + 5 x 1 = 234 + 18 x 5 = 257 = 2.79
92
85 x 3 + 5 x 2 + 2 x 1 = 255 + 10 + 2 = 267 = 2.90
92
1.4 CALCULATION OF THE CUT OF POINT
Cut off point =
C.O.P. = Total number of weighted response
Number of response pattern
= 3 + 2 + 1 = 6
No of response pattern = 2
C.O.P. = 6/2 = 3
113
APPENDIX 111
Table A4 Values of the x2 distribution exceeded with Probability
P
d.f 0.995 0.975 0.050 0.025 0.010 0.005 0.001
1 3.9x10-5 9.8x10-
4 3.84 5.02 6.63 7.88 10.83
2 0.010 0.051 5.99 7.38 9.21 10.60 13.81
3 0.071 0.22 7.81 9.35 11.34 12.84 16.27
4 0.21 0.48 9.49 11.14 13.28 14.86 18.47
5 0.41 0.83 11.07 12.83 15.09 16.75 20.52
6 0.68 1.24 12.59 14.45 16.81 18.55 22.46
7 0.99 1.69 14.07 16.01 18.48 20.28 24.32
8 1.34 2.18 15.51 17.53 20.09 21.96 26.13
9 1.73 2.70 16.92 19.02 21.67 23.59 27.88
10 2.16 3.25 18.31 20.48 23.21 25.19 29.59
11 2.60 3.82 19.68 21.92 24.73 26.76 31.26
12 3.07 4.40 21.03 23.34 26.22 28.30 32.91
13 3.57 5.01 22.36 24.74 27.69 29.82 34.53
14 4.07 5.63 23.68 26.12 29.14 31.32 36.12
15 4.60 6.26 25.00 27.49 30.58 32.80 37.70
16 5.14 6.91 26.30 28.85 32.00 34.27 39.25
17 5.70 7.56 27.59 30.19 33.41 35.72 40.79
18 6.26 8.23 28.87 31.53 34.81 37.16 42.31
19 6.84 8.91 30.14 32.85 36.19 38.58 43.82
20 7.43 9.59 31.41 34.17 37.57 40.00 45.32
21 8.03 10.28 32.67 35.48 38.93 41.40 46.80
22 8.64 10.98 33.92 36.78 40.29 42.80 48.27
23 9.26 11.69 35.17 38.08 41.64 44.18 49.73
24 9.89 12.40 36.42 39.36 42.98 45.56 51.18
25 10.52 13.12 37.65 40.65 44.31 46.93 52.62
26 11.16 13.84 38.89 41.92 45.64 48.29 54.05
27 11.81 14.57 40.11 43.19 46.96 49.64 55.48
28 12.46 15.31 41.34 44.46 48.28 50.99 56.89
29 13.12 16.05 42.56 45.72 49.59 52.34 58.30
30 13.79 16.79 43.77 46.98 50.89 53.67 59.70
40 20.71 24.43 55.76 59.34 63.69 66.77 73.40
50 27.99 32.36 67.50 71.42 76.16 79.49 86.66
60 35.53 40.48 79.08 83.30 88.38 91.95 99.61
70 43.28 48.76 90.53 95.02 100.43 104.22 112.32
80 51.17 57.15 101.88 106.63 112.33 116.32 124.84
90 59.20 65.65 113.15 118.14 124.12 128.30 137.21
100 67.33 74.22 124.34 129.56 135.81 140.17 149.44
For degrees of freedom f > 100, test √ 2x2in as N (√ 2f – 1 ,1)
0 x
2
114
