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IMPACT OF
MOTIVATION TOWARDS ORGANIZATION PRODUCTIVITY
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The National
Electric Power Authority was established by the NEPA Act of 1972. The Act
authorized the merger of the activities of the Niger Dam Authority and the
Electricity Corporation of Nigeria. The operative object clause is among other
things: “to develop and maintain an efficient, coordinated and economical
system of electricity supply to all parts of the federation or as the Authority
may direct, and for this purpose:
· Generate or acquire supply of
electricity,
· Provide bulk supply of electricity for
distribution within or outside Nigeria, and
· Provide supply of electricity for
consumers in Nigeria from time to time as may be authorized by the authority”.
A close
scrutiny of NEPA performance over the years reveals that the above provisions of
the Decree are not efficiently observed. It was estimated, according to a World
Bank Report, that inefficiency in power sector alone created losses of over
US$800 million annually in Nigeria (World Bank 1994).
Today,
investment costing stands flawed without imputing the cost of self-provision of
electricity whilst the affluent make provisions for private electricity
generators for domestic use.
Bedeviled
with gross inefficiency and inappropriate investment strategy, NEPA record
transmission loss of 15% - 20% owing to inadequate distribution expectant.
Between 15%-20% of its output is not metered and hence no revenue is earned on
it. This means between 30% - 40% of NEPA output does not yield revenue. The
expected loss by international standard is 5% - 10%. It is a common knowledge
that due to poor operational practices and inadequate management tools and
skills, sharp practices are very rampant in the system. (World Bank 1995).
Managerial
success to a great extent entails working with and through people to achieve
organizational objective. When management has the unrealistic and narrow
outlook that labour is primarily an adjunct to the machine and is to be bought
at the cheapest market, its organization will be inefficient, human resources
will be wasted and the workers will consider the organization undesirable to
work. This leads to industrial strikes and places the organization at a great
disadvantage in its drive to recruit and retain the right caliber of personnel
necessary for its operations. Human resources are the most important assets an
organization has, and any attempt to sideline the human resources in
development purpose will spell doom to the organization.
A human oriented
management recognizes that fact that individuals join organization with varied
drives and motives both economical and psychological. Such management therefore
designs and maintains an organization in which employees meet their wants and
needs by contributing to the overall interest and aims of the organization at
the same time. While meeting his personal needs, he also needs organization’s
objectives.
In the light
of this, one sees motivation as those drives which enable an employee to have
increased morale and psychological stability, required for increased
productivity. The study therefore, centers on NEPA, in order to determine the
extent, to which the company appreciates the overriding benefits outlines from
employee motivation because all these benefits have appendages (positive or
negative) towards organizational output.
Apart from
political instability, a major setback for improving the economic fortunes and
development of the West African sub-region is the state of the power industry
in the sub-region. Typical West African countries like Nigeria, Benin, Gambia,
Mali and Togo have power consumption per capita of less than 150Kilo-watt hour.
Energy
consumption in selected African countries vs Industrialized Nations.
Countries
Energy
Consumed in KWH
Ghana
420
Nigeria
85
Cote D’
Ivoire
180
Industrialized
Nations
1900-6000
Source: NEPA
(1991)
This is
appreciably low if compared with an average of 1900-kilowatt hour and 6000
kilowatt hour for industrial nations.
The low pace of development of the
West African Power sector is due to the form of ownership and control of the
institution that produces and distributes electricity in this region.
Generally, electricity industry within the sub-region in under State Control
with utility boards or agencies given full monopoly for generation,
transmission and distribution of electricity.
Because of this from of control and
monopoly status, the operating environment does not encourage any form of
competition and foreign capital investment. The resultant effect is decline,
not only in the power sector, but industrial development.
Specifically, a nation like Nigeria whose
chief source of foreign exchange in crude oil exploration and exportation and
which remains the largest oil producer in the whole of Africa with about 1.88
million barrel per day and whose estimated 124 trillion cubic feet (tcf) of
proven gas reserves and huge Hydro power reserves, its potential for becoming
an industrial giant and main exporter of electricity to the West African
sub-region is great. However, due to long years of uneconomic planning,
regulation and control of the power sector by government, requisite attention
has not been paid to these important levers of the economy.
MOTIVATION
Historically,
motivation developed in 3 main streams:
1. Traditional Model
This model
rests on the assumption that people come to work only because of money. The
task of management therefore is to clearly define the job and develop system of
wage and punishment in order to get best from workers.
2. Human Relations Model
This is
based on the assumption that people come to work because of social interaction.
The role of management therefore is to design the job in order that employees
achieve an optimum level of social interaction. This is expected to create
social harmony and by extension, optimum performance from workers.
3. Human Resources or Behavioural Model
This is
based on the assumption that people come to work in order to fulfill higher
level need such as responsibility, achievement, work content etc. this school
of thought believes that a manager that focuses on the areas of job enrichment
and enlargement world create an enabling environment for superb performance.
Having said all this, motivation
could be explained as a process of stimulating people to action to achieve
desired goals or to accomplish given tasks. It is within a person to achieve a
goal or objective, everything being equal. Motivation could also be regarded as
the function which managers perform in organizational goals. It is one of the
most enigmatic aspects of management. It refers to the way in which urges,
desires, needs, aspirations which are basically tension symptoms occurring
within individuals are harnessed and channeled towards smooth, constructive and
co-operative behaviour towards the achievement of organizational goals. All
human behaviour is motivated in that it is directed towards the satisfaction of
physical, emotional, social conditioned or psychic needs. In the jargons of the
theoretical and experimental psychologist, a stimulus acts upon the organism to
produce behaviour response. Making use of the concept of homeostatic, this
means that when a need is felt or perceived, a tension is crated in the
individual, which leads to activities intended to reduce the tension created.
Motives induce that will to act and
so result in behaviour. Motivation generally refers to the factors that
influence people to act. It is viewed as the process of action.
During the past few decades, the
quest for better ways of motivating people at work has caused some researchers
to concentrate more on the psychological factors that stimulate workers than
the development of incentives of financial reward because of its significance.
It is known that people possess certain needs to be satisfied. When their
satisfaction is frustrated or blocked in one way or the other people react
against this in various ways according to circumstances.
If you want to motivate people for
greater productivity, you must find out what their needs or wants are their
desires and aspirations, why do people seek employment and what would they
actually expect from their work environment. The physiological needs which s
innate in human being must be satisfied, otherwise employees are not motivated
for better productivity. Some elements of a job give people a chance to satisfy
their higher level needs, which are called motivators, this should not be
overlooked. Although, individuals and group vary to some extent in the
particular job element that they find satisfying or motivating, but generally
they refer to the content of the job. Therefore, if motivation is to be
effective, workers should be provided with opportunity to be happy and do
interesting job enthusiastically.
It is not the interest of the
organization for management to have the unrealistic motion that labour is
primarily an adjunct to the machine and that the employee-employer relationship
is purely contractual, suggesting the right to command and the right to obey
because the workers are there to satisfy their economic needs. This type of
attitude is demotivational and very much dis-functional and will have on
alienating effect on the workers and consequent immensely reflect on their
productivity. Productivity measures the fruitfulness of human labour under
varying circumstance, it is also a measure of the efficiency or resources as a
whole including manpower employees in production. To achieve effective
motivation for greater productivity, there should be proper blending of the corporate
needs with the individual needs.
1.2 STATEMENT OF THE PROBLEM
In the
recent times, the Nigerian economy has witnessed a steady and rapid decrease in
productivity in almost all the areas of the economy, the energy sector
inclusive. The industrial sector probably the worst hit by this intractable
ugly trend of event. The preliminary investigations carried out by this
researcher has shown that NEPA also experience similar problems of the study
and rapid decrease in productivity was due to lack or inadequate motivation
following from this, the researcher has decided to find out whether the problem
arose because of lack of motivation, if so, what could be done to ensure
efficiency and enhance productivity. In doing this, an attempt will be made to
expose the motivational technique already being employed by the management of
NEPA. The reactions of the workers to these techniques and whether they were
understood as expected.
PRIVATIZATION
Privatization is associated with sale
of public sector Assets usually held by Governments to private investors. It is
distinct from commercialization which could mean Government still retains its
holding and controls while ensuring that the utility is run efficiently and on
a commercial basis and with a view towards making profit.
HOW DID
PUBLIC SECTOR INVESTMENTS BECOME SO HUGE?
According to
a survey by the defunct TCPC in 1991, Nigeria has about 1,500 Public
enterprises-600 owned by the Federal Government, and the rest States and Local
Government.
Estimates of
Vision 2010 Committee indicate that Federal Government Investments in public
enterprises stood at over U$$100Billion in 1996. Reliable Government sources
also claim that Public Enterprises consume about N200Billion of national
resources annually by way of grants, subsidies, import duty waivers, tax
exemptions, etc.
DEVELOPING
WORLD (NIGERIA)
In addition,
a strong public sector was considered an indispensable vehicle for propelling
economic development in Nigeria, as was the case in other developing countries.
In the African content, moreover, and in relation to the post colonial era,
state control of enterprises through nationalization was a politically
expedient process of gaining some degree of macroeconomics independence as well
as protecting their economics from continuing to be completely controlled by
foreigners.
Succinctly
put successive Nigeria Government Invested huge sums of money in the economy to
amongst other things:
· Correct market failure in
infrastructure and utilities sectors
· Control the “commanding
heights” economy
· Supplement what was
perceived to be a weak private sector
· Complement the need for
capital, which was deemed to be in short supply.
THE NEED TO
PRIVATIZE WORLD
The Tory
Government of Margaret Thatcher popularized the privatization concept. Besides,
Information technology turned the world into a global village with attendant
cutthroat competition, which made it, imperative for firms to be efficient or
perish.
IN NIGERIA
As a result
of the collapse of the world oil market in the 1980s, the expenditure level of
public service became incompatible with available resources. The only solution
in the circumstances was to cut public expenditure through various ways.
Therefore while the conditions which led to the wide engagement of the
government in entrepreneurial functions were understandable, the imperatives of
the changing circumstances called for a redefinition of that role in the
direction of greater selectivity and efficiency in its engagement in such
operations.
Privatization was therefore seen as
one of the means of reducing public expenditure in view of the fact that most
public enterprises had constituted an unnecessarily high burden on government
resources. They had grown too large and unwieldy highly politicized and
operating generally at a loss with a consequent heavy reliance on government
subventions and subsidies. It was generally viewed that government created a
situation whereby financial indiscipline was rampant in public enterprises. The
position was that since public enterprises acquired their capital either
directly from government budgetary allocations or from the capital market under
government guarantee, they were immune to bankruptcy and were not confronted
with the possibility or takeovers. This made for indiscipline and the inability
of public enterprises to pay back the capital invested in them as the
government that set them up itself, was in dire need of funds.
In comparing the performance of
public and private enterprises, there also exists a general understanding that
public enterprises, in both developed and developing countries have performed
below expectation. It has been argued that excessive political interference and
bureaucratic failure are responsible mainly for the inefficiency associated
with the public sector Privatization has thus become a vital element of the
liberation process. Liberation has become imperative in response to global
competitive pressure and the intense drive limited local and internal capital.
Furthermore, foreign donors and
creditors expect that the country’s scare resources would be directed to
attacking poverty, through investments in health, education and rural
development-social programs that will benefit the teaming masses.
Privatization
was thus seen as means for correcting:
· Abuse of monopoly powers
· Defective capital structures resulting
in heavy dependence on the treasury for funding
· Bureaucratic bottlenecks
· Mismanagement
· Corruption
· Nepotism
· Fiscal deficits imbalance
· Underdevelopment of the capital market
and private sector
· In-efficient economic growth.
1.3 PURPOSE OF THE STUDY
The purpose
of this study is to examine the root causes of worker negative attitude at
work, especially in relation to motivation. The workers reactions to motivation
and motivational techniques employed by the management to enlist the
cooperation and support of the workers. The study also intends to look into the
punitive or regard system or both and their applicability, because, it is the
belief of the researcher that most times, the problem with a given techniques
depends to a large extent on the applicability.
For this
reason, some of the areas this study intends to accomplish are as follows:
1. To show the motivational factors
employed by the management of NEPA aimed at inducing overt actions for the
enhancement for the workers productivity.
2. Probe and find out what may be the
likely management problems with motivation in NEPA.
3. Show the effects motivation has on
the productivity of the workers.
4. Proffer solutions to identified
management deficiencies in the management of motivation.
5. Finally, document the findings for
interested researcher in the future.
1.4 RESEARCH QUESTION
1. To what extent do you think
motivation determines employee output of work?
2. Does bureaucratic process prevent a
company from formulating and implementing effective staff motivation
techniques?
3. How do you think an employee can be
properly motivated?
4. How can you establish a relationship
5. How can you establish a relationship
between you and your boss?
6. How will your salary commensurate to
the services you offer to the organization between you and your boss?
7. How will your salary commensurate to
the services you offer to the organization.\
1.5 HYPOTHESIS FORMULATION
The study of
the impact of motivation towards organization productivity the case of NEPA
Enugu will seek to test the following hypothesis.
(1) Ho
Promotion as a way of motivating workers at NEPA is not a factor of educational, qualification
and hard work.
Hi Promotion as a way of motivating workers
at NEPA is a factor of educational qualification and handwork.
(2) Ho
The worker-boss relationship does not affect the overall productivity of
the organization.
Hi The worker-boss relationship affects
the overall productivity of the organization.
(3) Ho
Bureaucratic processes does not prevent a company from formulating and
implementing effective staff motivation techniques.
Hi Bureaucratic process prevents a company
from formulating and implementing effective staff motivation techniques.
1.6 SIGNIFICANCE OF THE STUDY
This study
is expected to be of immense importance in management decision making in NEPA
as well as other top researchers and consequently to the nation in general. The
study will specifically be beneficial in the following ways:
i. It will make the management of
NEPA to appreciate fully the importance of motivation in large organization its
kind.
ii. It will enable managers in the
employment of NEPA to identify the causes of how productivity in relation to
levels of motivation.
iii. This will inculcate in workers the
essence of dignity of work and increased morale, which will enable them
understand the concept of service.
iv. The result will help in the
enhancement of efficiency and consequently productivity at NEPA when properly
addressed.
v. It will be of immense guide to
future researchers who intends to explore and understand further concepts of
motivation especially in service organization like NEPA {PHCN}.
1.7 SCOPE AND LIMITATIONS TO THE STUDY
For the
purpose of clarity, the subject of this research work focuses on the study at a
comparative assessment of the experiences in similar or related organization.
The study intends to cover the activities of NEPA.
To pretend
that a research work of this nature suffered no impediments would be
academically deceitful. Consequently, financial constraints, time factor and
other things posed formidable hurdles the course of this research work.
The dearth
of relevant textbooks and the exorbitant cost of available ones consequent upon
the prevailing economic situation in the country also serve to limit this
research work.
All said and
done, the research intends to ensure that the effects of these limit factors on
the production of this work is brought to the dearest minimum.
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