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THE IMPACT
OF JOB SATISFACTION ON EMPLOYEE PERFORMANCE IN GOVERNMENT OWNED ENTERPRISES
ABSTRACT
The topic of
this project report on the Impact of job satisfaction on employee performance
in Government Owned Enterprises (GOE’s). There was a time when it was
considered sound economic policy for government to establish and invest in
corporation and enterprises. It was then agreed that government owned
enterprises were better for stimulating and accelerating natural economic
development rather than private initiative. This research therefore aimed at
investigating, identifying, analysis and presenting research findings on the
Impact of Job Satisfaction on employee performance. To achieve the above aims,
research hypothesis were formulated to that whether promotion has no impact on
job satisfaction, there is no relationship between salary and job satisfaction
and conducive environment does not contribute to job satisfaction in government
owned enterprises. The researcher made use of research questionnaire, which
were designed and distributed to staff of these government owned enterprises.
The method of analysis is the use of tables, percentage and chi-square. The
major finding of the research is that promotion has a significant relationship
with job satisfaction, there is relationship between salary and job
satisfaction and conductive environment contribute to job satisfactionamong
employee in government owned enterprises. In view of the above findings the
study recommended that:
1.
Government owned enterprises should see increase/prompt payment as a motivation
factor, that can increase productivity in the organization.
2.
Government should use employee inputs as a criteria for promotion of workers,
because most of these workers in government are idle.
3.
Government should make the working environment conducive, so that the workers,
can see their working environment as their second home. 4. Government owned
enterprises should adopt management by objective in which employee should be
part in decision making of the organization so that all hands will be on deck.
5. The
structure of the organization should be restructure so that there will be cordial
relationship between the employees and employer.
6. Working
conditions should be improved and sustainable to enhance performance.
7.
Management should be sensitive to the difference in needs and values among the
employee. Every individual is unique and will respond differently to attempts
to motive him or her.
8.
Management should be sensitive to employees, complaints about low pay and
unchallenging work. Too often management delude them into thinking that
employees dissatisfaction can be lessened by painting work area piping in
music, giving out a few more words of praise, or giving people longer work
breaks.
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
The
importance of qualified manpower in the social, political and economic
development of any nation can hardly be overemphasized. No nation is known to
have attained and sustained high level of economic growth and development
without ample supply of manpower.
Of all the
factors that unlock the forces of economic and development, a country’s human
resources is the most vital because without, it all the other factors have to
wait. (Nwachukwu 1988, p-128)
Positive
changes in the quality of work force according to Nwachukwu, account for rapid
economic development that has taken place in advanced countries, Kuznet in
Nwachukwu once observed that “the major capital stock of an industrially
advanced country is not its physical equipment; it is the body of knowledge
amassed from tested findings and discoveries of empirical science, and the
capacity and training of its population to use this knowledge”.
At the
organization level, the essence of any manpower programme is to enhance the
welfare of workers by maximizing their skills as well as the quality and
quality of their employment opportunity and by so doing add to their economic
strength (Nwachukwu ibid). Thus all employee programme are aimed at human
resource development and utilization bearing in mind that a well-motivated and
satisfied manpower is an asset to an organization, which enhances productivity.
In a real sense, three important elements, money, man and material make up any
business enterprises. While each of these elements is particularly importance in
any organization, it is however the people or the human element that is often
responsible for the success of an organization.
It is not
uncommon to experience a situation where competing firms buy materials in the
same market, secure their money from the same sources and employ their
personnel in the same area, yet one company emerges as being more productive
and profitable than the other.
A study of
such circumstances more often than not reveals that the difference in the
performance is due to the fact that one company has a more “satisfied” work
force, hence more productive. With this illustration, people/manpower determine
the success of enterprises.
A well-known
management theorist, Rensis Likert concludes, “All the activities of any
enterprises are initiated and determined by persons who make up that
institution, underscores the importance of employee function. Plant, offices,
computers, equipment and all else that a modern firm uses are unproductive
except for human effort and direction. Of all the tasks of management, managing
the human component is the central and most important task because, all else
depend on how well is done” (Likert quoted in Iyayi 1989, p.151).
Personnel/employee administration is that organization or enterprises function which
is especially concerned with the management of the human component in
organizations.
This human
component pervades the entire organization and because of this, it follows that
the performance of the personnel, or at least an important part of it, devolves
on all individuals and managers who in one way or another have responsibility
for the performance of one or more subordinates in the organization. The
management function of leading, directing and motivating are all personnel
functions, which all management must perform. A manager who fails in any of
these respects is also likely to fail in the performance of his/her primary
responsibility even if such responsibility is for production, accounting or
marketing (Iyayi ibid).
The fact
that all managers perform personnel functions is however, not to imply that
they are all personnel managers. In every organization, there is a distinct
department or section that is specifically charged with the responsibility of
initiating and formulating policy as well as providing advice, service and
control of all personnel matters. Thus, although the people designated as
personnel managers perform all the personnel functions of all managers, they in
addition, usually have broad human skills, and specific technical skills for
dealing with people oriented problems in the organization. The personnel
manager usually applies his/her technical skills in dealing with issues that
arise in the following major areas: employment, training and development,
transfer, promotion and lay off, wage and salary administration, health and
safety, discipline and discharge, industrial and labour relations, employee
benefits and services, and personnel and behavioural research.
The above,
constitute staff conditions of service, which is the hub of personnel
management and on which depends industrial peace, industrial expansion and the
general well being of the staff and the organization ( Abah 1997, p.238).
Staff
conditions of service vary from business to business, from industry to industry
and more significantly from government owned businesses to privately owned ones
and among government and private business enterprises, which in turn accounts
for the wide difference in job satisfaction and employee performance in the
various organizations. It is based on the foregoing that this study dwelt on
the impact of job satisfaction on employee performance with special emphasis on
government owned enterprises in Nigeria.
1.2
STATEMENT OF PROBLEM
Nigeria,
like many other countries of the developing world became vigorously involved in
accelerating the wheels of economic and industrial development of her economy.
She became actively involved in the establishment of public enterprise and
government businesses covering a large complex spectrum of public utility,
infrastructure facilities, strategic enterprises, industries and commerce.
Since
independence in 1960, the country has either inherited or established such
organizations as the Nigerian Railway Corporation, Nigerian Airways, among many
other corporations. However, the management of these companies over the years
has left much to be desired. For instance the Nigerian Airways according to the
Director General of Bureau of public enterprise is a bankrupt company.
Reeling out
the statistics about the organization, Director General of Bureau of Public
Enterprises said Nigerian Airways has 400 million Dollars Debt. It has 2000
employees and one plane. It also has 40 million Dollars in pension liabilities.
This type of scenario applies to almost every government owned
company/corporation in Nigeria and has equally affected job satisfaction and
employee performance in them.
Management
influences and determines the performance of employees. But many managers in
Government Owned Enterprises in Nigeria are either lacking in the elementary
principles of organizational behaviour or are not given the free hand to run
their firms. They do not know how to identify employees’ goals and link rewards
to motivate employees.
It has been
observed that all the work related Nigerians possesse factors necessary for
productivity. The only thing lacking is the supervisory/managerial abilities to
harness these talents. Based on the fore going, the study sought answers to the
following questions:
a. What is
the nature of supervisory/managerial practices in government owned companies?
b. How has
this affected job satisfaction and employee performance?
c. Are the
motivational and other management practices in Government Owned Enterprises
adequate to ensure job satisfaction and enhance employee performance?
d. Do the
supervisors/managers of Government Owned Enterprises follow establishment
management practices in taking decisions affecting the employees?
1.3
OBJECTIVES OF THE STUDY
The
objectives of the study are;
1. To
identify the role of promotion on job satisfaction among staff.
2. To
determine effect of salary on job satisfaction among staff.
3. To
identify the important of conductive environment on job satisfaction.
1.4 RESEARCH
QUESTIONS
1. What is
the relationship between promotion and job satisfaction among staff?
2. Is there
any relationship between salary and job satisfaction among staff?
3. To what
extent does conducive environment contribute to job satisfaction among staff?
1.5 RESEARCH
HYPOTHESES
1. There is
no relationship between promotion and job satisfaction among staff
2. There is
no relationship between salary and job satisfaction among staff
3. Conducive
environment does not contribute to satisfaction among staff.
1.6
SIGNIFICANCE OF THE STUDY
Management
of Government Owned Enterprises has been a thorny issue in Nigeria and has
generated quite a high number of debates and literature in the last two
decades. This study is therefore significant because it will add to the
existing body of literature in this areas.
It is also
significant because it would provide information on the trend and journey so
far in the management of Government Owned Enterprises. The results of the study
will be discerning as it will reveal how much job satisfaction is obtainable in
the government owned enterprises as well as how these have affected employee
productivity in the organizations.
Since
independence, government in establishment of businesses and maintaining them
has invested so much; yet not much has been recorded in the area of
productivity and employee morale.
According,
this study will be useful to economists, management practitioners, students and
the general public because it will provide direction on the way forward. The
recommendations are useful because they will serve as advice to the government
on what ought to be the appropriate relationship between government and the
businesses.
Finally, the
study is significant because it is an academic exercise required in partial
fulfillment for the award of a Master Degree in Business Administration.
1.7 SCOPE
AND LIMITATION
The scope of
the study covers Enugu, the Capital of Enugu State. The concern of the study
was the government owned companies within the city. Enugu served as capital of
defunct Eastern Region, East Central State, and old Anambra State hence its good
number of government businesses, which are either headquartered in the city or
have regional offices there. Such companies studied are the Enugu State
Transport Company (ENTRACO), Hotel presidential, Enugu, Nigeria Railway
Corporation, Eastern Regional Office among others. These companies were
established to make profits, as aim yet to be met.
This study
has quite a number of significant limitations to it. The first was that the
researcher as a worker has to combine her work with the study and this was not
easy. Additionally the study was conducted during the period of fuel scarcity
this resulting in high cost of transportation and in some most cases, low
attendance by staff of the organizations visited for the distribution of
questionnaires. Conducting a study of this nature in our environment receptive
of answering the oral questions while others did not take time off of study the
questionnaire hence few of the discard due to wrong filling. These limitations
did not affect the outcome of the study in any way.
1.8
DELIMITATIONS OF THE STUDY
As already
mentioned, Government Owned Enterprises like PHCN etc were established to
provide infrastructure services. For this group of Government Owned
Enterprises, performance is in the area of efficiency of services provided.
There are other categories of Government Owned Enterprises established purely for
profit making. For this group performance comes in the area what is made in
terms of profits.
This study
is delimited mostly to the second group where it is assumed that the impact of
job satisfaction on productivity is felt more. This implies that only companies
established purely for profit were considered for the study. The above
delimitation was considered normal for a study of this nature in a developing
country like ours with paucity of data.
1.9
DEFINITION OF TERMS
1.
Motivation: This is a process of stimulating people to action in order to
achieve desired goals or accomplish a desired task: Hezbong, Fedenick (1964).
The motivation Hygiene concept and problems of manpower personnel
Administration January – February.
2. Personnel
Administration is that organization or enterprises function which is especially
concerned with the management of the human component in organization. Abah,
Norbert C. (1997) Public Personnel Administration Enugu: Jeen Publishers Ltd.
3. NA –
Nigerian Airways. Sun Newspaper April 20, 2003
4. B.P.E.-
Bureau of Public Enterprises Sun Newspaper April 20, 2003
5. MBO:
Management by objective Odiorne, CT Politics of Implementing MBO” Business
Horizon June 1974
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