i
EFFECT OF INTERNAL ENVIRONMENT ON
EMPLOYEE PERFORMANCE IN POWER HOLDING
COMPANY OF NIGERIA (PHCN), ENUGU
BY
OFILI MAXWELL MADUABULOCHUKWU
PG/MBA/11/60451
DEPARTMENT OF MANAGEMENT,
FACULTY OF BUSINESS ADMINISTRATION,
UNIVERSITY OF NIGERIA, ENUGU CAMPUS
AUGUST 2012
ii
APPROVAL
It is hereby certified that this Dissertation by Ofili Maxwell
Maduabulochukwu has been read and graded in fulfillment of the
requirements for the award of Master of Business Administration in
the department of Business Management, Faculty of Business
Administration, University of Nigeria, Enugu Campus.
SUPERVISOR: HEAD OF DEPARTMENT
Name: Dr. Onodugo V. A Name: Dr. Ezigbo C.
Signature:………………… Signature:…………………
Date: Date:
DEAN OF FACULTY EXTERNAL EXAMINER
Prof. Ugwuonah G. e Signature:………………….
Signature:……………………… Date:
Date:
iii
CERTIFICATION
I Ofil Maxwell .M. an MBA student of the Department of Management,
Faculty of Business Administration, University of Nigeria, Enugu with
Registration Number PG/MBA/11/60451 has satisfactorily completed
the requirement for the course and research work for the award of
Master of Business Administration (MBA) in Management.
The work embodied in the project is original and has not been
submitted in part or in full for any other degree of this or any other
institution.
………………………………………………………..
Ofili Maxwell Maduabulochukwu
PG/MBA/11/60451
iv
DEDICATION
This work is dedicated to God Almighty the Author and
finisher of our faith, for His all sufficient Grace and enduring
Mercies and Provision.
v
ACKNOWLEDGEMENT
My profound gratitude goes to my supervisor, Dr./Evang. Onodugo V.
A who doubles as the Associate Dean Student Affairs, the Head of
Department Dr. Ezigbo C. A, Prof. Ewurum U.J.F, Dean of Faculty and
all lecturers in the faculty and department for their wonderful
contributions and all my class mates.
My immeasurable thanks goes to my Parents, Mr. and Mrs.
N.E Ofili, my siblings and relations, Mazi Esemonu and
family, Mrs. V.U Iyizoba, Modebelu Mabel, Technical Crew
Living Faith Church Enugu, Ekejiuba Chinemerem and a lot of
others I cannot mention for want of space, my gratitude is
extended to you all.
To God Be the Glory
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ABSTRACT
The aim of this study was to assess the Effect of Internal Environment
on Employee Performance in PHCN, Enugu distribution Company. The
study defined research objectives, research questions. The study used
structured questionnaire to collect responses from the study
population sample. Secondary data from already published books and
magazines were used to build the conceptual framework of the study;
the analysis of data was based on respondents who returned correctly
completed questionnaire and the hypotheses were tested using the
Chi-Square statistical method. The findings reveal that to a good
extent in PHCN, Enugu Internal Environment Effect Employee
Performance. The study therefore recommended an improved and
enhanced work environment in Power Holding Company of Nigeria
(PHCN) Enugu Distribution Company.
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TABLE OF CONTENT
Title page …. …. …. …. …. …. …. …. …. i
Approval …. …. …. …. …. …. …. …. …. ii
Certification …. …. …. …. …. …. …. …. iii
Dedication …. …. …. …. …. …. …. …. …. iv
Acknowledgement …. …. …. …. …. …. …. v
Abstract …. …. …. …. …. …. …. …. …. vi
Table of content …. …. …. …. …. …. …. …. Vii
List of Tables …. …. …. …. …. …. …. ix
Chapter one: Introduction
1.1 Background of the Study …. …. …. …. …. 1
1.2 Statement of Problem …. …. …. …. …. …. 4
1.3 Objectives of the Study …. …. …. …. …. 5
1.4 Research Hypotheses …. …. …. …. …. …. 6
1.5 Significance of the Study …. …. …. …. …. 6
1.6 Scope of the Study …. …. …. …. …. …. 7
1.7 Limitation of the Study …. …. …. …. …. 7
1.8 Definition of Terms …. …. …. …. …. …. 7
Reference …. …. …. …. …. …. …. …. …. 9
Chapter Two: Literature Review
2.0 Introduction …. …. …. …. …. …. …. 10
2.1 Historical Background; Origin of Power Holding Company of
Nigeria (Phcn) …. …. …. …. …. …. …. …. 10
2.2 Theoretical Framework …. …. …. …. …. 15
2.3 The Effects of Internal Environment On Employee And Business
Performance …. …. …. …. …. …. …. …. 33
viii
2.4 Cashflow Position …. …. …. …. …. …. 36
2.5 Government Legislation/Policies …. …. …. …. 37
References …. …. …. …. …. …. …. …. 38
Chapter Three; Research Design And Methodology
3.1 Research Design …. …. …. …. …. …. …. 39
3.2 Sources of Data …. …. …. …. …. …. …. 39
3.3 Population of The Study …. …. …. …. …. 40
3.4 Sampling Technique …. …. …. …. …. …. 41
3.5 Determination of Sample Size …. …. …. …. 41
3.6 Data Collection Instruments …. …. …. …. …. 44
3.7 Method of Data Analysis …. …. …. …. …. 44
Chapter Four; Data Presentation And Analysis
4.1 Data Presentation and Interpretation …. …. …. …. 46
4.2 Analysis of Questionnaire Returned …. …. …. …. 46
4.3 Analysis of Introductory Responses …. …. …. …. 47
4.4 Analysis of Research Questions …. …. …. …. 48
4.5 Test of Hypothesis …. …. …. …. …. 56
Chapter Five; Summary Of Findings, Recommendations And
Conclusion
5.1 Summary of Major Findings …. …. …. …. 61
5.2 Recommendations …. …. …. …. …. …. 64
5.3 Conclusion …. …. …. …. …. …. …. 65
Bibliography …. …. …. …. …. …. …. 67
Appendix …. …. …. …. …. …. …. …. 69
Questionnaire …. …. …. …. …. …. …. 70
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LIST OF TABLES
TABLE 4.1 QUESTIONNAIRES RETURNED 46
Table 4.2 Biodata of Respondents ---- ---- ---- ---- ---- 47 Table 4.3 Respondents Preparedness to make career in PHCN ---- 47 Table 4.4 Respondents Preparedness to Encourage new Employees 48 Table 4.5 The Unbundling project of PHCN is good for PHCN operations ---- ---- ---- ---- ---- ---- ---- 48 Table 4.6 Response on whether pay is a motivator ---- ---- 48 Table 4.7 Increase in salary will motivate you to work harder and produce more? ---- ---- ---- ---- ---- ---- ---- 49 Table 4.8 Pay affects you in relation to the satisfaction of your basic human needs ---- ---- ---- ---- ---- ---- ---- 49 Table 4.9 Response on existing working conditions and how it affects employee productivity ---- ---- ---- ---- ---- ---- 50 Table 4.10 Response on whether cordial employer/employee relationship will result in improved productivity. ---- ---- ---- 50 Table 4.11 PHCN involve employees in decision making ---- ---- 51 Table 4.12 Response on the dependence of performance on needs satisfaction ---- ---- ---- ---- ---- ---- ---- 52 Table 4.13 Response on the effects of fringe benefits on performance ---- ---- ---- ---- ---- ---- ---- ---- 52 Table 4.14 Supervision Preference that boost workers performance 52 Table 4.15 The state of the working environment in PHCN ---- 53 Table 4.16 Increase in Salary increases productivity ---- ---- 53 Table 4.17 Response on whether Job in PHCN motivates ---- 54 Table 4.18 Response on whether working environment in PHCN has kept employees working. ---- ---- ---- ---- ---- 54 Table 4.19 Response on the rate of employee absenteeism and Job turnover in PHCN ---- ---- ---- ---- ---- ---- 55 Table 4.20 Response on Effect of working environment ---- ---- 55 Table 4.21 Response on effect of motivation on productivity ---- 56 Table 4.22 Calculation of Chi Square ---- ---- ---- ---- ---- 57 Table 4.23 Calculation of Chi Square ---- ---- ---- ---- ---- 58 Table 4.24 Calculation of Chi Square ---- ---- ---- ---- ---- 59
1
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Businesses operate within a supra system called
operating environment. These environmental factors be it
internal or external bears directly or indirectly on the
operations of that business.
Many a business organizations have collapsed because
of the effects of environmental factors. The environment of
an organisation has got internal, operational and general
lives, managers must be aware of these environmental levels
and their relationship and importance. Whenever a business
takes any decision regarding the business it has to take due
care of the environment in which it is running. The decision
should not be against the stakeholders of the business
thereby it definitely affects the business.
Generally, internal environment refers to one’s
immediate surroundings including water, air, land in which
one lives that influences one’s life. But for the purpose of this
research, internal environment here shall be referred to as
elements within the work environment, such as working
2
environment, management style, inter-relationship amongst
staff and al factors-incentives, salary increase and
opportunity to develop oneself. These have effects on the
overall performance of an employee. An improved work
environment will result in a reduction in a number of
complaints and absenteeism and will bring an increase in
productivity, Roelofson (2002).
Employee makes critical difference between success and
failure. The effectiveness with which organizations manage,
develop, motivate and engage the willing contribution of the
employees will enable them to capitalize on their expertise
most efficiently. There is a link between people management
and business performance. According to Roelofson (2002)
one of the fundamental human requirements is work
environment that allows people to perform their work
optimally under comfortable condition.
People are beginning to be conscious of the fact that to
be happy and cheerful in one’s work place, some conditions
must be present even with little pay. For example, not
withstanding whatever is provided for a seamstress for her
job, if there is no machine, all that is provided comes to
3
naught. Again, when a librarian is presented with a noisy
environment, he will not carry out his work effectively
because the environment suitable for effective library
function is quietness and orderliness. Similarly, an
accountant who deals with figures will be annoyed if he is
sharing a calculator with four staff members. Also, the
secretary is looked upon as human machine, trained with the
responsibility of taking note of what others may regard as
minor and making suggestions based on records available. To
effectively carry out these and other functions, the secretary
needs a ‘hightech’ office where some electronic machines will
complement his/her human ability.
In an employment situation, the employee promises to
live up to expectations. The employer expects nothing less.
But the point is: has the employer provided a work
environment that will facilitate the effective discharge of the
employees’ assigned duties? Most employers keep
complaining of poor returns from employee without taking
out time to find out why the new employer has not
performed beyond what the former one was able to do.
4
If an organization provides its employees with better
work and most conducive working environment they can
perform exceptionally well, and companies can capitalize on
their enhanced productivity in the shape of cost reduction,
which will ultimately contribute towards rich profits. The
relationship between employee attitudes and company
performance, as suggested by Patterson et’al., (1997), is
highly correlated. They suggested that managers of
organizations who are eager to promote productivity and
profitability should pay close attention to the attitudes of
their employees in orders to make them more positive.
1.2 STATEMENT OF PROBLEM
This project work is aimed at ascertaining the effect of
internal environment on employee performance. The
statement of research problems therefore arises from the
question such as:
a) How can internal environmental factors affect employee
performance?
b) Does internal Environment have any bearing on the
performance of employees?
5
c) To what extent does the internal environment affect
employee performance?
d) Do employees respond to changes in the work place
environment?
e) Is there any relationship between work place
environment and the productivity of the employees?
1.3 OBJECTIVES OF THE STUDY
The study will investigate whether perceived promotional
opportunities will make employees stay with the company
and whether money is the main motivating factor.
Furthermore, the following objectives will also be given
attention:
1. To highlight some internal factors that impact on
productivity.
2. To ascertain the extent of effect of work environment on
employee performance.
3. To highlight what motivates employee in the
organization
4. To identify better means of inducing higher employee
performance to enhance job satisfaction.
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5. To identify challenges associated with provision of good
working environment for PHCN staff.
1.4 RESEARCH HYPOTHESES
1. Provision of a good working environment and conditions
of service lead to low rate of absenteeism and low rate
of job turnover in PHCN
2. Increase in salary and bonuses are major internal
factors that enhance performance of PHCN workers.
3. Well equipped office and equipment facilitates workers
performance among PHCN staff.
4. Government policies and privatization requirement is a
major hindrance that impacts on the performance of
PHCN staff
1.5 SIGNIFICANCE OF THE STUDY
This study will explore the effect of internal environment on
employee performance and the make-up of what constitutes
a good internal environment in the company used as a case
study. It is intended to be of interest to the top management
in the service companies who would find the study very
essential as a guide in structuring the internal environment
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and make it a better place, putting all the necessary facilities
in place to enhance efficiency and also increase the level of
job performance.
1.6 SCOPE OF THE STUDY
The study is not designed to cover the service firms in
Nigeria but is limited to Power Holding Company of Nigeria
Plc, Enugu Zone. Efforts have been specifically made to find
out how the effect of internal environment affects the job
performance of staff of Power Holding Company Plc for this
purpose; the study covers the entire management cadre.
1.7 LIMITATION OF THE STUDY
This study is limited to Power Holding Company of Nigeria Plc
Enugu Zone due to time and logistics constraints, which
made extensive coverage of service or even manufacturing
firms difficult.
1.8 DEFINITION OF TERMS
Environment: The sum total of the surrounding conditions
whether physical or not that affects or influences
development.
8
Employee: An individual who renders mental or physical
service to an employer under a defined agreement for
reward.
Performance: This is the act of doing a piece of work which
one is either ordered to do or promised to do. It could be as
the result of an act, which is measured in quality or in
quantity.
Productivity: The rate or efficiency of work especially in
manufacturing or service organizations.
9
REFERENCE
Abraham Maslow (1970): Motivation and Personality 2nd edition, New York. Alderfer C. (1972): Existence, Relatedness and Growth of Human Needs
in Organizational Psychology. Armstrong, M. (2004). Handbook of Human Resource Management
Practices (9th ed.). London: Kogan Page.
Onodugo V. A. et all (2010): Social Science Research: Principles,
Methods and Applications, Enugu, Ed‟mark Publishers.
Ozo, J. Ubata et‟al (1999): Introduction to Project Writing for Business and
Financial Studies. Enugu Sunny Enterprises.
10
CHAPTER TWO
LITERATURE REVIEW
2.0 INTRODUCTION
This chapter examines the theoretical framework upon which this
study is based, the background and review of various soft and
hardcopy literatures that exist on the subject matter.
2.1 HISTORICAL BACKGROUND; ORIGIN OF POWER
HOLDING COMPANY OF NIGERIA (PHCN)
Around the world, electric industries are undergoing extensive
restructuring. The trend, which started in the United Kingdom and
Chile in the 1980, has rapidly spread to many countries in Latin
America, Asia, Europe and Africa. The main motivation of driving
forces for restructuring the electric industry in different counties are
not the same. In some countries, such as the United Kingdom and the
Latin America countries, privatization of the electric has provided a
means of attracting funds from the private sector to relieve the
burden of heavy burden of heavy government subsidies. In the
country formerly under centralized control (central and eastern
Europe), the process follows a general trend away from centralized
government control towards increased privatization and
decentralization. In the United States and several other countries
11
where the electric industry has for the most part been owned by the
private sector, the trend is toward increased competition and
regulation.
Power holding company of Nigeria (PHCN) formally known as
National electricity power authority (NEPA) is a public corporation
owned by the federal government of Nigeria to generate, transmit and
distributes electricity to the populace. The history of electricity (power
generation) in Nigeria dates back to 1898 when electricity was first
produced in Nigeria. Therefore, several other towns established
electricity supply by the installation of isolated generation in each
town.
In 1946, the “Nigeria government electricity undertaking” was
established within the then public works department to take over the
responsibility of electricity supply to Lagos area.
In 1950, however, a central body was established by the
legislature council ordinance No. 15 of 1950 which transferred
electricity supply and development to the care of central body known
as the “Electricity Corporation of Nigeria (ECN)”. Other bodies also
had licenses to generate electricity in some locations in Nigeria.
Significant among such were the Nigeria electricity supply company
(NESCO) in Jos and the African timber and plywood limited in Sapele.
12
The first 132kv-transmission line under the management of ECN
was commissioned in July, 1961 and was 146km long connecting
Lagos with Ibadan via Shagamu.
In 1962, another body known as Niger Dams Authority was
established by an act of parliament. The authority was responsible for
the construction and maintenance of dams and other works on the
River Niger and elsewhere generating electricity by means of water
supply thereby improved navigation.
National Electric Power Authority (NEPA) was established in April
1972, with the amalgamation of the former electricity corporation of
Nigeria (ECN) and the Niger Dams Authority (NEPA) with the
Headquarters in Lagos.
As a government parastatal, its employees and consumers seriously
hamper NEPA‟s operations due to several government directive and
fraudulent activities. In order to reduce this abnormally, the authority
was granted partial autonomy as a quasi-commercialized organization
in 1992 while this gesture has granted some powers to the authority,
it is still under the control of the government hence the authority
could still not take some necessary drastic and far-reaching measures
to improve its revenue collection and reduce the incidences of
fraudulent activities.
13
Like most state-owned enterprises, NEPA has suffered from severe
under-funding and under-capitalization, inappropriate capital
structure, excessive executive interference, and sub-optimality and
decision making.
NEPA equipments are subjected to vandalism and theft by group
of cabals in different part of the country. The hydro power stations
suffer from low water level during dry season and the generation
output capabilities of thermal stations are often hampered by
shortage of fuel. Equipments are expensive to repair, mostly due to
their obsolete status.
NEPA as we know is a government ran entity as earlier stated that
enjoys a lot of the financial transfers, subsidies grants and tax and
import duty naivers from the government. These social incentives
from the government were counterproductive for NEPA‟s efficiency. It
resulted in an undertrained and unmotivated manpower and lack of
will to operate as a profitable entity.
NEPA was formally changed to power holding company of Nigeria
(PHCN) in January 2004 in readiness for privatalization. To provide the
legal framework for the restructuring of Electric Supply Industry (ESI),
the electric power sector reform bill was signed into law on the 11th of
March 2005. The bill seeks to provide for the formation of successor
14
companies to take over the functions, assets, liabilities and staff of
NEPA; develop competitive electricity markets; establish the Nigeria
Electricity Regulatory Commission; provide for the licensing and
regulation of the generation, transmission, distribution and supply of
electricity; enforce such matters as performance standards; consumer
rights and obligation; provide for the determination of tariffs; and to
provide for matters connected with or incidental to the forgoing.
An initial holding company (IHC) has been incorporation as
provided for the act. The name of the IHC is Power Holding Company
of Nigeria (PHCN) Plc and it was incorporated on 31st may 2005. The
PHCN has taken over all NEPA assets and liabilities.
Power holding company of Nigeria (PHCN) Enugu Zone was
officially opened many decades ago. The office is responsible for the
distribution and sales of electricity to Enugu and its environment. The
office maintains an undertaking office and service centers and cash
offices in many government areas of Enugu state. Just like any other
PHCN office in the country, it has all the departments such as
administrative and service, Technical / service, Customer service,
Finance and Accounts, and Audit department each headed by a
manager. As a zone, the office reports directly to the chief executive
officer Enugu. It also has direct communication with PHCN
15
Headquarters Abuja. PHCN Enugu Zone has a total staff of 250
including Top management.
Power holding company of Nigeria (PHCN) accounting system is
uniform throughout the country and that of Enugu Zone would not be
left out. The classification of the branch is the same other branches
nationwide. The zone has fourteen (14) business unit under it and it‟s
responsible for everything that happens in the unit.
The employees‟ performance on the job is generally considered on a
function of two variables: one is the individual ability to perform the
job, and secondly the motivation that encourages or drives him to use
this ability in the actual performance of the job. It is widely assumed
that a good internal environment in terms of working conditions,
management style, inter-social relationship amongst staff or the
motivational factors like incentives, salary increase and opportunity to
develop oneself can stir up persons who possess high ability to a
greater increase in job performance (Campbell and Pritchard 1976).
2.2 THEORETICAL FRAMEWORK
2.2.1 The Notion and the value of Work
Work is every undertaking engaged in by human being that involve
mental or physical effort usually in anticipation of a reward. The value
16
which a worker places on work varies, depending on the status and
responsibility of the person concerned.
All workers need work first as a means of livelihood. When
productivity is high at all time, the economy becomes more buoyant.
This translates into a greater reward for the worker and allowed for
new investment and re-investing of profit to ensure continued
employment. Moohead and Graffin (1995) noted that high
performance level, if followed by equitable rewards, leads to increase
in productivity. Increase in productivity is a way of stimulating the
economy with consequent result of creating more jobs.
2.2.2 Why work?
It is generally argued that work means more than a means of an end
and more expending energy. It is a means of contributing to the
larger societal goal and objectives. This is because work enables the
worker to earn a living and gets his needs satisfied. Work is also a
means of expending the workers energy with corresponding
expectation (of rewards) for the energy so expended (input). This
logical analysis formed the premise upon which Vroom (1964) based
his „Expectancy Theory‟.
People work for a wide variety of reasons, some want power, some
want challenge, and some want security. The things that each unique
17
individual in an organization decides that he or she wants from work
plays an instrumental role in determining the reason to work.
In corroboration with Vroom analysis, Maslow (1970) noted that the
worker enjoys his membership of the work group, which adores him,
love him, make him feel wanted and gives him a sense of
accomplishment. Where this contribution is recognized and
acknowledge the worker is spurred into more action (motivated).
As David (1976) stated, people also work for reasons other than
money. However, this is not to deny the significant of money as a
source of motivation. Generally, people work because they enjoy it,
gain a name or self respect, achieve a feeling of self-actualization, to
be associated with other people, and the need to keep busy as a way
of escaping boredoms. As stated earlier, money is an important
incentives of many because its acquisition represents power,
achievement, success, safety, public recognition, etc. One is to give
one employment; the other is to provide an adequate working
environment to enhance productivity. No one is complete without the
other.
2.2.3 What is work environment (internal Environment)
Internal environment or work environment is not just where individual
perform job related tasks. Mullins (2005)
18
It also includes a number of factors such as location of the
organization, size of the organization, work condition, nature of the
job, fellow employees, the local, state, and federal regulation that
apply to the industry, the relationship with competitors, the
relationship with the public, the managerial philosophy, the leadership
styles and the organizational structure, any one of which may be
considered the most important element by different people.
According to Billings and Moos (1982), work environment preferences
can be measured using three dimensions of work environment
settings; system maintenance, goal orientation, and relationship
dimensions. System maintenance refers to how orderly and organized
the work setting is, how clear it is in its expectations, and how much
control it maintain. Goal orientation assesses the degree to which an
environment encourages or stifles growth through providing for
participation, and providing job challenge and expectations for
success and accomplishment. The relationship dimension measures
the degree of interpersonal interaction in a work environment, such as
the social communication exchanges and cohesion among workers,
and the friendship and support provided by co-workers and
management. These work environment preferences have been shown
to affect individuals‟ personal functioning at work.
19
Examination of work environment preferences can help identify
organizational factors that may be problematic, and can guide
interventions aimed at reducing employee stress in a variety of work
settings.
2.2.4 Determinant of Work Environment
Working environment could be described as conducive or hostile
depending on or a combination of the following factors; leadership
style, motivation cash flow position and government policy.
2.2.5 Leadership/Management Style
Leadership is said to be a function of the leader, the followers and the
situation. This means that a leadership style that works for „A‟ may
not necessarily work for „B‟ because of differences in situations.
Usually, there are three main types of leaders, and the effects of each
style have a direct relationship with staff confidence in carrying out
responsibilities and output. Let us briefly examine the three types.
(1) The Autocratic Leader
In an autocratic set up, the force is the order of the day. “Do it as i
have said” is the predominant slogan. Employees are always
threatened with sack or suspension or even other stringent
punishment for any short coming. The autocratic leader believes that
20
the worker must be coerced into doing an assigned job. Workers are
always tensed up and decisions are taking against them without
giving them the opportunity to defend their actions. Mullings
(2009291) describes the autocratic leader as “He that decides what
actions to take and impose his decisions upon his subordinates
without discussion”. If management adopts an autocratic posture,
then the staff may not have a conducive working environment.
(ii) The Democratic Leader
In an organization headed by a truly democratic leader, workers are
persuaded and not coerced. Problems are tabled and discussed freely,
giving everybody an opportunity to contribute. Victimization of staff is
at the minimum because a democratic management allows workers
to join union and press for better pay and other benefits, unlike an
autocratic management style where a „stubborn; worker faces sack
without due explanation. To a large extent, this type of leader
represents the conducive working environment which workers want.
(iii) The Laissez-faire leader
In an organization where laissez-faire management is practices, it is
very difficult to ascertain the kind of organizational environment that
prevails. It means that the staff can have the best environment or the
21
worst. If the care-free attitude implies that whatever the staff ask is
giving to them, then such is to the advantage of the employees, but
on the other hand, the care-free posture means caring less for
employee welfare, then the staff are in a far a hard time. However, it
must be mentioned that an autocratic management is one extreme
whilst the lassie-faire type is the other extreme. Staff usually
capitalizes on the care-free attitude to commit different kinds of acts
that is detrimental to organizational growth and development.
2.2.6 Motivation and Productivity
The employees‟ performance on the job is generally considered as a
function of two variables, one is the individual‟s ability to perform the
job, and secondly, the motivation that encourages or drives him to
use this ability in the actual performance of the said job. It is widely
assumed that motivating persons who possess high ability will lead to
a greater increase in performance and productivity. In general terms,
motivation can be described as the direction and persistence of action.
It is concerned with why people choose a particular course of action in
preference to others, and why they continue with a chosen action,
often over a long period, and in the face of difficulties and problems.
22
From the review of motivation theory in Mullins (2005) Mitchel
identifies four common characteristics which underlie the definition of
motivations.
Motivation is typified as an individual phenomenon. Every
person is unique and all the major theories of motivation allow
for the uniqueness to be demonstrated in one way or another.
Motivation is described, usually, as internal. Motivation is
assumed to be under the worker‟s control and behaviours that
are influence by motivation, such as effort expended are seen as
choices of action.
Motivation is multifaceted. The two factors of greatest
importance are:
i. What gets people activated (arousal)
ii. The force of an individual to engage in desired behaviour
(direction or choice of behaviour)
The purpose of motivational theories is to predict behaviour.
Motivation is not the behaviour itself, and it is not performance.
Motivation concerns actions, and internal and external forces
which influence a person‟s choice of action.
23
On the basis of these characteristics, Mitchell defines motivation as
the degree to which a individual wants and chooses to engage in
certain specified behaviours.
The underlying concepts of motivation are some driving force
within the individuals by which they attempt to achieve some goal
to fulfil some need or expectation. This concept gives rise to the
basic motivational model, which is illustrated below.
Figure. 1: A Simplified Illustration of the basic motivational
model
Source: Management and organizational Behaviour, Mullins (2005)
People‟s behaviour are determined by what motivates them. Their
performance is a product of both ability level and motivation.
Thus performance = function of (ability x motivation)
Need or
Expectation
Need or
Expectation
Need or
Expectation Result in To Achieve
Fulfillment
Which Provide Feed back
24
Moohead and Graffin (2005) suggested that although motivation is a
necessary contributor for job performance, it is not the only one.
Along with ability, motivation is also a contribution of level of skill,
knowledge about how to complete the task, feelings and emotions;
and facilitating the conditions not under the individual‟s control.
However, what is clearly evident is that if the manager is to improve
the productivity of the organization, attention must be given to the
level of motivation of its members. The managers must also
encourage staff to direct their efforts (their driving force) towards the
successful attainment of the goals and objectives of the organization.
Most research on motivation have been based on the classic theories
of Abraham Maslow and Herzberg F. Abraham Maslow in his articles
„A Theory of Human Motivation‟, pictures the individuals as having five
levels of needs. The most basic are the psychological ones‟ food,
water, shelter etc. Maslow (1964).
These are the most important needs and the individual will seek to
satisfy this important group first. The second level needs-Maslow
terms safety needs, which generally refer to physical safety as well as
job safety. Third in the hierarchy are individual social needs. These
needs refer to individual‟s needs to belong, to be accepted as part of
a group and to be love, not in physical sense, but in the human
25
emotional sense. The fourth level includes the self-esteem needs, ego
gratification status etc. Finally, the individual has needs for self
actualization or self fulfilment articulated by the desire to create.
A need theory of motivation similar to Maslow‟s is Alderfers‟ ERG
approach. Alderfer postulated that individuals have three basic needs
i.e Existence, Relatedness and Growth (ERG).
Alderfer has made some improvement over Maslow‟s model. His ERG
theory is a less restrictive model of the motivation process. It
represents a simplification of Maslow‟s needs priority theory, not only
by reducing the number of needs categories but by removing the
restriction about the activation of needs in any hierarchical order,
alderfer suggest that more than one need may be operative or
activated at any point in time. Whereas, Maslow felt a person
primarily addressed one set of need at a time.
Another theory that gained recognition among management scholars
and practitioners alike is Fredrick Herzberg‟s tow factor theory of
motivation. Herzberg thesis is based on the notion that individuals
have essentially two needs.
i. The need to grow psychologically and to achieve.
ii. The need to avoid pain from environment
26
The growth need is the motivating one and the pain avoidance need,
although not motivating will result in increased unhappiness, if
satisfaction is decreased.
Psychological growth and achievement needs are stimulated by
organization mechanism that induced psychological growth and occur
in the content of the job. Here, according to Herzberg, the growth or
motivating factors are intrinsic to the job. These factors are:
1. Perceived opportunity for advancement
2. Recognition or important work.
3. Interesting or important work
4. Responsibility and
5. Growth or advancement
Those factors stimulate pain avoidance. Herzberge‟s hygiene factors.
They are in the job environment and hence they are extrinsic to the
job. These factors are:
1. Company policy and administration.
2. Supervision
3. Interpersonal relationships
4. Working condition
5. Salary, status and security.
27
Hygiene factors represent the need to avoid pain in the environment.
They are not an intrinsic part of the job, but they are related to the
condition under which a job is performed. They are environment
related factors. Hygiene factors produce no growth in worker‟s output,
but they prevent loss in performance caused by work restriction.
Herzberg believed that hygiene creates a zero level of motivation and
if maintained at a proper level, prevent negative type of motivation
form occurring. According to Scott Myers‟, maintenance factors are
characterized by the fact that they inspire little positive sentiment
when added, but incite strong negative reaction when removed.
Herzberg‟s work has come in for its share of criticisms. One of the
most crucial concerns is extrapolation of the conclusion from the
research methodology employed. Herzberg‟s conclusion was based on
oral report by respondent. Critics, however, argue that people will
always take credit for things that go well, but will tend to blame
failure on their environment. Hence, the factor that do show
motivation will inevitably be intrinsic, whereas those that show
unhappiness will usually be the extrinsic one.
One might note the similarities in the Maslow and the Herzberg
presentations. Theorists who follow Maslow often contend that many
of the lower level needs are met by money and that much of the need
28
for belongingness and love is satisfied in the work place or out of it.
Herzberg thesis includes most of the needs in the hygiene category,
reserving for the motivating factors those areas that seem to
correspond most closely to Maslow‟s higher level need clarification.
Herzberg‟s theory has important managerial implication for two areas.
Job enlargement and enrichment; and ranking of the factors.
2.2.7 Job Enlargement and Enrichment
In Herzberg‟s theory, hygiene factors and motivators are directly
linked to the issued of job enlargement and job enrichment. According
to him, job enlargement means increasing the number of operations
an individual performs in a given job cycle. Job enrichment on the
other hand, concerns the amount of responsibility an individual is able
to exercise in his or her work environment.
Ranking of job factors: Individuals can be motivated by many job
factors. The most important seems to be the nature of the work itself,
pay, promotion, recognition when a job is completed successfully,
fringe benefits, working conditions, styles of supervision, relationship
with co-workers and the prestige of the company and its top
management. Researchers, investigating factors in motivation
traditionally have gathered data by presenting a list of job factors to
an employee and asking him to rank them in terms of how important
29
they are to him. Respondents to such a questionnaire normally rank
money in the middle. From the viewpoint of Herzberg‟s theory, it will
be more appropriate to present the employee with one list of hygiene
factors and one lost of motivators, which he or she would rank
separately.
2.2.8 The concept of Job Satisfaction
Job satisfaction can be defined as a pleasurable emotional state
resulting from appraisal of one‟s job as achieving or facilitating the
achievement of one‟s value.
Mullins (2005) defines job satisfaction as more of an attitude, an
internal state. It could; for example be associated with a personal
feeling of achievement, either quantitative or qualitative. Job
satisfaction is necessary in order to achieve a high level of
performance.
However, it should be noted that the amount of satisfaction an
employee experience is a function of both what the employee wants
from a situation and what he or she obtained from it. Management
should take it as a point of duty to create conditions in which staff
should find their work satisfying/ the more satisfying a job is, the
better the motivation. To created job satisfaction, job should be made
more interesting and meaningful. On the other hand, job
30
dissatisfaction consists of behaviour such as excessive absence or
work slow down on the part of the worker which may eventually result
in behaviour as quitting and indulging in act detrimental to the
organization.
2.2.9 Operationalizing Job Satisfaction
Combining the most important aspect of each of the theories
discussed, we can expand the definition of job satisfaction as follows:
Job satisfaction result from appraisal of one‟s job as attaining or
allowing the attainment of one‟s important job value, providing these
values are congruent with or help to fulfil one‟s basic needs. Job
satisfaction on itself or in contribution with the condition (both in the
individual and job environment) brings about a variety of
consequences for the employee job satisfaction can affect the
workers‟ physical health. It may be related indirectly to mental health
and adjustment. Satisfaction with working condition depends on their
cohesiveness with the individual physical needs and the degree to
which they facilitate the attainment of his goals. Role conflict and
ambiguity should be minimized to avoid dissatisfying. The employee
will be satisfied with agents in the work situation to the extent that
they are seen as facilitating the attainment of his work goals and work
31
rewarded and to the degree that those agents are perceived as having
important values in common with them.
2.2.10 Job Satisfaction and Employee’s Performance
The relationship between job satisfaction and performance is an issue
of continuing debate and controversy. One view, associated with the
early human relations approach is that satisfaction leads to
performance. An alternative view is that performance leads to
satisfaction.
Mullins (2005:700) stated that “Although most people assume a
positive relationship, the preponderance of research evidence
indicates that there is no strong linkage between satisfaction and
productivity”.
Employees with higher level of occupations tend to be more satisfied
with their jobs because they have better pay, working conditions, their
jobs make fuller use of their abilities. They are more satisfied with
their work than their subordinates. Workers whose personal needs are
satisfied on the job are more likely to remain on the job as productive
employees than those whose needs are not satisfied in the work
situation.
One of the characteristics of job satisfaction is that the higher the job
status, the higher the degree of job satisfaction. There is a direct
32
relationship between job status and job satisfaction. The greater the
intrinsic value of the work being performed, the more satisfying it is to
the individual performing it.
Careful attention should be made to design the jobs and the
managerial policies of the organization in such a way that employees
derive maximum job satisfaction. Employees derive greater
satisfaction if they examine variety in their work and can understand
more of the range of operations in which the organization is involved.
An important determinant of job satisfaction is a feedback
mechanism, which enables the individual to find out how he has
performed.
Job satisfaction is highest among those individuals whose jobs are
quite stressful e.g. Manager and Professionals. There is a positive
relationship between job satisfaction and the occupational level (Lloyd
1976). The greater the variation in job content, the greater the
satisfaction of the individuals involved. Considerate leadership results
in higher job satisfaction than inconsiderate leadership.
Pay and promotional opportunities are positively related to job
satisfaction. To maximize organizational performances, job satisfaction
has to be maximized.
33
Locke (1980) stresses that satisfaction is primarily a result of
performance and only indirectly a cause of performance. He stresses
further that the strength of this relationship depends on the degree to
which performance leads to the attainment of the employees‟
important job values.
2.3 THE EFFECTS OF INTERNAL ENVIRONMENT ON
EMPLOYEE AND BUSINESS PERFORMANCE
The internal environment has the biggest effect on employee
performance and productivity. As a result of that, businesses are
taking a more strategic approach to environmental management to
enhance their productivity through improving the performance level of
the employees. Govindarajulu (2004).
It is evident in the research findings of Pattersson et‟al, (2004) that
the more satisfied workers are with their internal environment the
better the company is likely to perform in terms of subsequent
profitability and productivity and vice versa.
Many managers and supervisors labour under the mistaken
impression that the level of employee performance on the job is only
proportional to the size of the employee‟s pay packet. Although this
may be true in a minority of cases. Numerous employee surveys have
shown by and large this to be untrue. In fact, salary increases and
34
bonuses for performance in many instances have a very limited short-
term effect. The extra money soon comes to be regarded not as an
incentive but as an “entitlement”.
There are other factors that when combined provide a positive effect
on employee performance and productivity. When these other factors
are missing or diluted, the employee comes to work only for a pay
check. In this case, the employee is present at work in body only,
leaving their mind outside the gate.
The key factors and how each can be utilized by supervisors and
managers to boost performance are:
Goal setting:
Employees should be involved in setting meaningful goals and
performance measures for their work. This can be done informally
between the employee and their immediate supervisor or as part of
an organization‟s formal performance management process. Here
each employee actively engaged in the goal-setting process and takes
ownership of the final agreed goal and measures.
Performance feedback
Employees should be regularly given feedback on how they are
performing. This should consist of both positive feedback on what the
35
employee is doing right as well as feedback on what requires
improvement. The feedback needs to be as objective as possible and
delivered with the appropriate interpersonal and conflict resulting
skills. It can be a mix of both informal feedback delivered as part of a
formal performance management cycle.
Role congruity
The role the employee is required to perform should consistent with
their expectations on joining the organization and any subsequent
training. The organization‟s role expectations are typically reflected in
formal documents‟ such as job description and role specifications.
These expectations should be consistent with tasks allocation to
employees.
Incentives
What motivates employees in particular should be determined and
also set up formal and informal structures for rewarding employees
that behave in the way required.
Supervisor support
Supervisor should act as advocates for employees, gathering and
distributing the resources needed by them in order for them to do a
good job. Immediate supervisor and managers need to display the
36
interpersonal skills required to engage employees and enhance their
self-confidence. This includes providing positive encouragement for a
job well done.
Resource availability
Adequate material resources need to be available to enable
employees perform to the best of their ability. It will help them work
easier and help minimize error rate and customer dissatisfaction by
supplying job aids. These can include templates, guides, models and
checklists.
2.4 CASHFLOW POSITION
An organization that is successful with buoyant cash flow position is
likely to have a better work environment than one that is distressed.
Therefore, the position of various fringe benefits and materials for a
conducive working environment in most cases depends on the cash
flow position of any organization. Naturally, people believe that the
more you have the more you give out. It follows, therefore, that a
buoyant company can afford to rent an office accommodation in a
choice area, provide the staff with the materials and equipment,
provide regular training for them in addition to other incentives. It is,
37
therefore, understanding that certain benefits are cut or withdrawn
from staff when finances of an organization begin to dwindle.
2.5 GOVERNMENT LEGISLATION/POLICIES
The government through the Ministry of Labour and Productivity
determines the salaries and basic infrastructure provided in the public
service and usually mandated the private sector to take a cue from its
action. For example, it is the Government that determines minimum
wage for public servants. The private sector must follow sit in salaries
and working conditions of their staff.
38
REFERENCES
Abraham M. (1970): Motivation and Personality 2nd edition. New York. Alderfer C. (1972): Existence, Relatedness and Growth Human Needs in Organizational Psychology. Campbell J.P. & Pritchard R.D (1976): Handbook of Industrial and Organizational Psychology. Craig L. Yusong (2008): Perceived Conditions of Workers in Different Organizational Setting Journal of Facilities. David Burnham (1976): Power is the Great Motivator. Harvard Business Review. Gretchen, M. Spreitzer (1995): Psychological Empowerment in the workplace: Dimensions, Measurements and validation‟. Academy of Management Journal. Herzberg F. (1957): Job Attitudes: Review of Research & Opinion, Prittsburgh Psychological Service of Pittsburgh. Laure J. Mullins (2005): Management & Organizational Behaviour Lawrence T. Lorimer (2005): The New Webster Dictionary of English Language. International Edition. Moorhead and Griffin (1995): Organizational Behaviour and Managing People & Organizations. Vroom Victor (1964): Work & Motivation. New Your Wiley.
39
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 RESEARCH DESIGN
In defining design, Odo (1992:43), stated that designing implies
outlining the name of equipment and other materials the research
intends using, applying some to successfully execute the practical
aspect of the research study.
According to Kinnear (1989:133) “a research design is the basic
plan which guides the data collection and analysis phases of a
research project. It is the framework which specifies the type of
information to be collected and source of data collection procedure”.
A descriptive survey method was used for this study. It is important
to determine the method and procedure adopted in this research
report since it gives the reader background information on how to
evaluate the findings and conclusion.
3.2 SOURCES OF DATA
The data for this research work was collected from both primary
and secondary sources of data.
3.2.1 PRIMARY SOURCES OF DATA
The primary data used for this research work was gotten from
oral interviews conducted by the researcher within the office and
40
premise of the Power holding company of Nigeria (PHCN) Enugu and
structured questionnaire administered to relevant staffs of PHCN. The
purpose was to get their personal views on a number of issues.
3.2.2 SECONDARY SOURCES OF DATA
The secondary source from which data was collected includes:
textbooks from library (National Library Enugu, University of Nigeria,
Enugu Campus), manuals of power holding company of Nigeria Enugu
and different website on the internet.
3.3 POPULATION OF THE STUDY
According to Silver (1980:12) “population is the totality of any
group, person or objects which is defined by some unique attributes”.
This is to say that population is any group of being the researcher has
focused attention on and chosen as approved topic of study.
Since it is usually not possible to study the entire larger population
of power holding company of Nigeria (PHCN),the researcher has
chosen the power holding company of Nigeria Enugu zone as the
studied population in order to find a possible solution to which involve
a total of 250 employees including top and junior staff.
41
3.4 SAMPLING TECHNIQUE
The researcher utilized the statistical sampling technique in
determining the sample size for the study. He applied the simple
random sampling techniques owning to the nature of the study
population.
3.5 DETERMINATION OF SAMPLE SIZE
Sampling is a process of selecting a given number or any portion
of that population for the purpose of obtaining information for
generalization about the large population Nwabuokei (1986).
Sampling population is used to avoid possible errors in dealing with
population. The population size was narrowed down to determine the
sample size. A statistical formula was used in determining the sample
size.
Yaro Yemani formula as quoted in Nwabuokei (1986:471) was
applied and it is stated as follows:
n= N 1+ N (e)2
Where n=sample size
N=total population size
1 is constant
e = the assume error margin or tolerable error which
is taken as 5%(0.05)
42
n = N 1 + N(e)2 Where N=250
e = (0.05)2 0.0025
n = 250 1 + 250(0.0025) = 250
1 +0.625 = __250_ 1.625
= 153.846
n = 154
Using Bourley‟s proportion allocation formula
n1 = n1 (n) N Where n1 = Element within the sample frame i.e Number allocated
to each class of employee (department)
n = Sample or the proportion of the universe used
for the study.(Total sample size)
N = Population of the study i.e overall employee.
Departments:
Administrative and Service Dept ---- 62
Technical/Service Dept ----- 80
Customer service Dept ---- 35
Finance and Account Dept ---- 40
Audit Dept ---- 33
Population for the study ---- 250
43
Administrative and Service Dept
n1= 62 x 154
250 =9548 250 =38.19 =38
Technical/Service Dept
n1= 80 x 154
250 = 12320 250 =49.28
=49
Customer service Dept
n1= 35 x 154
250 = 5390 250 =21.56 =22 Finance and Account Dept
n1= 40 x 154
250 = 6160 250 =24.64 = 25 Audit Dept
n1= 33 x 154 250 =5082 250 =20.32 =20 To cross check:
38 + 49 + 22 + 25 + 20
=154 (sample size)
44
3.6 DATA COLLECTION INSTRUMENTS
The research structured both open- ended and close- ended
questions. Double barrel questions that is, those questions capable of
attracting multiple interpretations were cautiously avoided. In the
close ended questions, respondents were given a number of
alternatives from which to select options they consider appropriate.
In the open ended questions, respondents were provided with
blank spaces in which to write down their own answers in their words.
Dichotomous type of questions that demands “yes or No” type of
answers was also used. A total of 154 questionnaires were
administered. A total of 92 questionnaire representing 60% return
rate was collected.
ADMINISTRATION OF THE STUDY
The questionnaires were administered amongst the different
departments of PHCN, Enugu. The categories of respondents ranged
from senior managers, Middle managers and subordinates.
3.7 METHOD OF DATA ANALYSIS
In analyzing the data collected using the questionnaire; the
researcher used the simple percentages method of data analysis. The
analysis was represented in tabular form for easy understanding and
45
it consist the number of respondents and the corresponding
percentage and chi – square was used as the statistical tools used for
testing more than two population using data base on two independent
random samples.
The test statistical thus becomes
X2 = ∑ (o1 – e1)2
e1
Where o1 = observed frequency
e1= expected frequency
This test is based strictly on the primary data gotten from the
use of questionnaire.
DECISION RULE: Reject Null Hypothesis if calculated value of (X2) is
greater than the critical value and accept Null Hypothesis if calculated
value of (X2) is less than the critical value.
The Degree of freedom = (n - 1) (k - 1)
Where Df =Degree of freedom
n = Number of rows
k = Number of column
46
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 DATA PRESENTATION AND INTERPRETATION
This chapter is designed to give and analyze the response to
the research hypotheses formulated from the stated problems in
chapter one of this write up. It deals with the presentation, analysis
and interpretation of the data collected. They were analyzed using
tables and chi-square (X2) statistical tool
4.2 ANALYSIS OF QUESTIONNAIRE RETURNED
TABLE 4.1 QUESTIONNAIRES RETURNED
DEPARTMENT NO OF QUESTIONNAIRE
DISTRIBUTED
NO RETURNED PERCENTAGE (%)
Admin and service 38 26 28.26
Technical/Service 49 21 22.84
Customer service 22 17 18.47
Finance and Account 25 16 17.39
Audit 20 12 13.04
Total 154 92 100
Source: Field Survey 2012.
The above table shows the no of questionnaires distributed and
returned according to departments and the percentage.
47
4.3 ANALYSIS OF INTRODUCTORY RESPONSES Table 4.2 BIODATA OF RESPONDENTS
PROPOSITION RESPONSES NO OF RESPONDENTS
PERCENTAGE (%)
1. How long have you been in PHCN, Enugu?
0 – 1 yr 22 23.91
2 – 3 yrs 30 32.6
3 yrs and above 40 43.47
Total 92 100
Source: Field Survey 2012.
Table 4.3 Respondents Preparedness to make career in PHCN
PROPOSITION
RESPONSES NO OF RESPONDENTS
PERCENTAGE (%)
2. You are prepared to make a career in PHCN, Enugu?
SA 32 34.8
A 28 30.43
D 17 18.47
SD 15 16.3
Total 92 100
Source: Field Survey 2012.
The above table shows the different responses and calculated
percentage values as supplied by respondents on their preparedness
to make a career in PHCN, Enugu. 32 representing 34.8% strongly
agree that they are prepared to make a career in PHCN, 28 (30.43%)
agree, 17 (18.47%) disagree while 15 (16.3%) strongly disagree.
Table 4.4 Respondents Preparedness to Encourage new Employees
PROPOSITION
RESPONSES NO OF RESPONDENTS
PERCENTAGE (%)
3. You are prepared to encourage new employees to join PHCN, Enugu?
SA 28 30.43
A 32 32.6
D 15 16.31
SD 17 18.47
Total 92 100
Source: Field Survey 2012.
48
The above table shows the different responses and calculated percentage
values as supplied by respondents on their preparedness to encourage new
employees to join PHCN Enugu. 28 representing 30.8% strongly agree that
they will encourage new employees to join PHCN, 32 (32.6%) Agree, 15
(16.3%) Disagree while 17 (18.47%) Strongly Disagree.
Table 4.5 The Unbundling project of PHCN is good for PHCN operations
PROPOSITION
RESPONSES NO OF RESPONDENTS
PERCENTAGE (%)
4. The unbundling project of PHCN is good for PHCN operations?
SA 35 38.4
A 25 27.17
D 18 19.56
SD 14 15.21
Total 92 100
Source: Field Survey 2012.
The above table shows the different responses and calculated
percentage values as supplied by respondents on effect of the
unbundling project of PHCN. 35 representing 38.4% strongly Agree
that the unbundling project of PHCN is good for her operations, 25
(27.176%) Agree, 18 (19.56%) Disagree while 14 (15.21%) Strongly
Disagree.
4.4 ANALYSIS OF RESEARCH QUESTIONS
Table 4.6 Response on whether pay is a motivator
PROPOSITION
RESPONSES NO OF RESPONDENTS
PERCENTAGE (%)
5. Pay is a motivator?
SA 32 34.8
A 28 30.43
D 17 18.47
SD 15 16.3
Total 92 100
Source: Field Survey 2012.
49
The above table shows the different responses and calculated
percentage values as supplied by respondents on whether pay is a
motivator in PHCN Enugu. 32 representing 34.8% strongly agree that
pay is a motivator in PHCN, 28 (30.43%) Agree, 17 (18.47%)
Disagree while 15 (16.3%) Strongly Disagree.
Table 4.7 Increase in salary will motivate you to work harder and produce more?
PROPOSITION
RESPONSES NO OF RESPONDENTS
PERCENTAGE (%)
6. Increase in salary will motivate you to work harder and produce more?
SA 28 30.43
A 32 32.6
D 15 16.31
SD 17 18.47
Total 92 100
Source: Field Survey 2012.
The above table shows the different responses and calculated
percentage values as supplied by respondents on whether increase in
salary will motivate them to work harder and produce more. 28
representing 30.43% strongly agree that increase in salary will
motivate them to work harder and produce more, 32 (32.6%) Agree,
15 (16.31%) Disagree while 17 (18.47%) Strongly Disagree.
Table 4.8 Pay affects you in relation to the satisfaction of your basic human needs
PROPOSITION
RESPONSES NO OF RESPONDENTS
PERCENTAGE (%)
7. Pay affects you in relation to the satisfaction of your basic human needs?
SA 35 38.4
A 25 27.17
D 18 19.56
SD 14 15.21
Total 92 100
Source: Field Survey 2012.
50
The above table shows the different responses and calculated
percentage values as supplied by respondents on whether pay affects
them in relation to their basic needs. 35 representing 38.4% strongly
agree that pay affects them, 25 (27.17%) Agree, 18 (19.56%)
Disagree while 14 (15.21%) Strongly Disagree.
Table 4.9 Response on existing working conditions and how it affects employee productivity
PROPOSITION RESPONSES NO OF RESPONDENTS
PERCENTAGE (%)
8. Existing relationship and working conditions affect workers productivity?
SA 35 38.4
A 25 27.17
D 18 19.56
SD 14 15.21
Total 92 100
Source: field survey 2012.
The above table shows the different responses and calculated
percentage values as supplied by respondents on existing relationship
and working conditions affects workers productivity. 35 representing
38.4% strongly agree that existing relationship and working
conditions affects workers productivity, 25 (27.17%) Agree, 18
(18.56%) Disagree while 14 (15.21%) Strongly Disagree.
Table 4.10 Response on whether cordial employer/employee relationship will result in improved productivity.
PROPOSITION
RESPONSES NO OF RESPONDENTS
PERCENTAGE (%)
9. Cordial employer/employee relationship will result in improved productivity?
SA 34 37
A 25 27.17
D 18 20
SD 15 16.30
Total 92 100
Source: Field Survey 2012.
51
The above table shows the different responses and calculated
percentage values as supplied by respondents on whether cordial
employer/employee relationship will result in improved productivity.
34 representing 37% strongly agree that cordial employer/employee
relationship will result in improved productivity. 25 (27.17%) Agree,
18 (20%) Disagree while 15 (16.30%) Strongly Disagree.
Table 4.11 PHCN involve employees in decision making
PROPOSITION
RESPONSES NO OF RESPONDENTS
PERCENTAGE (%)
10. PHCN involve employees in decision making?
SA 32 34.78
A 25 27.17
D 20 22
SD 15 16.30
Total 92 100
Source: Field Survey 2012.
The above table shows the different responses and calculated
percentage values as supplied by respondents on whether PHCN
involve employees in decision making. 32 representing 34.8% strongly
agree that PHCN involve employees in decision making, 25 (27.17%)
Agree, 20 (22%) Disagree while 15 (16.30%) Strongly Disagree.
Table 4.12 Response on the dependence of performance on needs satisfaction
PROPOSITION
RESPONSES NO OF RESPONDENTS
PERCENTAGE (%)
11. Your performance is dependent on the satisfaction of your needs by the company?
SA 35 38.4
A 25 27.17
D 18 19.56
SD 14 15.21
Total 92 100
Source: Field Survey 2012.
52
The above table shows the different responses and calculated
percentage values as supplied by respondents on the dependence of
their performance on the satisfaction of their needs. 35 representing
34.4% strongly agree that their performance is dependent on
satisfaction of their individual needs, 25 (27.17%) Agree, 18
(19.56%) Disagree while 14 (15.21%) Strongly Disagree.
Table 4.13 Response on the effects of fringe benefits on performance
PROPOSITION RESPONSES NO OF RESPONDENTS
PERCENTAGE (%)
12. Fringe benefits like Medicals, Lunch and Awards affects workers performance?
SA 37 40.21
A 26 28.26
D 17 18.47
SD 12 13.04
Total 92 100
Source: field survey 2012.
The above table shows the different responses and calculated
percentage values as supplied by respondents on the effects of fringe
benefits on workers performance in PHCN Enugu. 37 representing
40.21% strongly agree that fringe benefits affect workers
performance in PHCN, 26 (28.28%) Agree, 17 (18.47%) Disagree
while 12 (13.04%) Strongly Disagree.
Table 4.14 Supervision Preference that boost workers performance
PROPOSITION
RESPONSES NO OF RESPONDENTS
PERCENTAGE (%)
13. What kind of supervision do you think is the best to boost workers performance?
Too Strict 20 21.8
Layoff 24 26.08
Query 26 28.26
Mild punishment 22 23.9
Total 92 100
Source: Field Survey 2012
53
The above table shows the different responses and calculated
percentage values as supplied by respondents on the type of
supervision they consider appropriate to boost workers performance.
20 representing 218% said Too Strict, 24 (26.08%) Layoff, 26
(28.26%) Query while 22 (23.9%) opted for Mild punishment.
Table 4.15 The state of the working environment in PHCN
PROPOSITION
RESPONSES NO OF RESPONDENT
S
PERCENTAGE (%)
14. The working environment in PHCN is conducive for performance improvement?
SA 28 30.43
A 32 32.6
D 15 16.31
SD 17 18.47
Total 92 100
Source: Field Survey 2012.
The above table shows the different responses and calculated
percentage values as supplied by respondents on the state of the
working environment in PHCN Enugu. 28 representing 30.43%
strongly agree that the working environment in PHCN is conducive for
performance improvement, 32 (32.6%) Agree, 15 (16.31%) Disagree
while 17 (18.47%) Strongly Disagree.
Table 4.16 Increase in Salary increases productivity
PROPOSITION
RESPONSES NO OF RESPONDENTS
PERCENTAGE
(%)
15. Productivity can only be increased by an increase in salary?
SA 14 15.21
A 16 17.39
D 28 30.4
SD 34 36.9
Total 92 100
Source: Field Survey 2012.
54
The above table shows the different responses and calculated
percentage values as supplied by respondents on effect of salary
increase on productivity. 14 representing 15.21% strongly agree that
Productivity can only be increased by an increase in salary, 16 (17.39%)
Agree, 28 (30.4%) Disagree while 34 (36.9%) Strongly Disagree.
Table 4.17 Response on whether Job in PHCN motivates
PROPOSITION RESPONSES NO OF RESPONDENT
S
PERCENTAGE (%)
16. Job in PHCN
motivates?
SA 35 38.4
A 25 27.17
D 18 19.56
SD 14 15.21
Total 92 100
Source: Field Survey 2012.
The above table shows the different responses and calculated
percentage values as supplied by respondents on whether job
motivates in PHCN Enugu. 35 representing 38.4% strongly agree that
pay is a motivator in PHCN, 25 (27.17%) Agree, 18 (19.56%)
Disagree while 14 (15.21%) Strongly Disagree.
Table 4.18 Response on whether working environment in PHCN has kept employees working.
PROPOSITION
RESPONSES NO OF RESPONDENTS
PERCENTAGE (%)
17. Working environment in PHCN has kept you working in PHCN?
SA 24 26.08
A 30 32.60
D 18 19.56
SD 20 21.73
Total 92 100
Source: Field Survey 2012.
55
The above table shows the different responses and calculated
percentage values as supplied by respondents on whether working
environment in PHCN Enugu have kept them working in PHCN. 24
representing 26.08% strongly agree that working environment in PHCN
has kept them working in PHCN, 30 (32.60%) Agree, 18 (19.56%)
Disagree while 20 (21.73%) Strongly Disagree.
Table 4.19 Response on the rate of employee absenteeism and Job turnover in PHCN
PROPOSITION
RESPONSES NO OF RESPONDENTS
PERCENTAGE (%)
18. There is high rate of employee absenteeism and job turnover in PHCN?
SA 14 14.21
A 18 19.56
D 36 39.13
SD 24 26.06
Total 92 100
Source: Field Survey 2012.
The above table shows the different responses and calculated
percentage values as supplied by respondents on rate of employee
absenteeism and job turnover in PHCN Enugu. 14 representing 14.21
strongly agree that there is high rate of employee absenteeism and job
turnover in PHCN, 18 (19.56%) Agree, 36 (39.13%) Disagree while 24
(26.06%) Strongly Disagree.
Table 4.20 Response on Effect of working environment
PROPOSITION
RESPONSES NO OF RESPONDENTS
PERCENTAGE (%)
19. A good working environment will enhance working efficiency, job satisfaction and dedication to the job?
SA 32 32.6
A 18 19.56
D 27 29.34
SD 15 16.30
Total 92 100
Source: Field Survey 2012.
56
The above table shows the different responses and calculated
percentage values as supplied by respondents on effect of working
environment in PHCN Enugu. 32 representing 32.6% strongly agree
that a good working environment will enhance working efficiency, job
satisfaction and dedication to the job, 18 (19.56%) Agree, 27
(29.34%) Disagree while 15 (16.30%) Strongly Disagree.
Table 4.21 Response on effect of motivation on productivity
PROPOSITION RESPONSES NO OF RESPONDENTS
PERCENTAGE (%)
20. Productivity
and performance
will be improved
tremendously if
workers are
motivated?
SA 30 32.6
A 28 30.43
D 18 19.56
SD 16 17.39
Total 92 100
Source: Field Survey 2012.
The above table shows the different responses and calculated
percentage values as supplied by respondents on effect of motivation
on employee productivity in PHCN Enugu. 30 representing 32.6%
strongly agree that Productivity and performance will be improved
tremendously if workers are motivated, 28 (30.43%) Agree, 18
(19.56%) Disagree while 16 (17.39%) Strongly Disagree.
4.5 TEST OF HYPOTHESIS
The hypothesis which were stated earlier in chapter one would be
stated in this chapter for acceptance or rejection.
Hypothesis can either be null hypothesis (ho), that which is tested
or the alternative hypothesis (hi), that which is available to be
57
accepted when the null hypothesis has to be rejected. If we cannot
reject the null hypothesis, we do not conclude that the null hypothesis
is true but merely that it may be true. But is this research the
researcher used only the alternative hypothesis.
HYPOTHESIS ONE
Provision of a good working environment and conditions of service
lead to low rate of absenteeism and low rate of job turnover in PHCN
Level of significance used is 5% = 0.05
The degree of freedom is given by (C-1)(R-1)
Where C = Column
R = Row
Since we have 3 columns and four rows df = (3-1)(4-1)
2x 3 = 5
Therefore the critical value of 5% or 0.05 level of
significance under degree of freedom X2 = 0.05 = 5.99
Table 4.22 Calculation of Chi Square
OPTION
O E O-e (O-E)2
(O-E)2
E
SA 20 23 -3 9 0.39
A 24 23 1 1 0.04
D 26 23 3 9 0.39
SD 22 23 -1 1 0.04
Total 92 100 0.86
Comparing the test statistical with critical value X2
58
X2 Calculated = 9.29 > X2 table Value of 5.99
DECISION RULE
Since the X2 calculated value is greater than X2 critical value, therefore
the researcher concludes that the Provision of a good working
environment and conditions of service lead to low rate of absenteeism
and low rate of job turnover in PHCN.
HYPOTHESIS TWO
Increase in salary and bonuses are major internal factors that
enhance performance of PHCN workers
Table 4.23 Calculation of Chi Square
OPTION
O E O-e (O-E)2
(O-E)2
E
SA 34 23 11 121 5.26
A 25 23 2 4 0.17
D 18 23 -5 25 1.08
SD 15 23 -8 64 2.78
Total 92 100 9.29
Comparing the test statistical with critical value X2
X2 Calculated = 9.29 > X2 table Value of 5.99
DECISION RULE
Since the X2 calculated value is greater than X2 critical value, the
researcher therefore conclude that Increase in salary and bonuses are
major internal factors that enhance performance of PHCN workers.
59
HYPOTHESIS THREE
Government policies and privatization requirement is a major
hindrance that impacts on the performance of PHCN Staff.
Level of significance used is 5% = 0.05
The degree of freedom is given by (C-1)(R-1)
Where C = Column
R = Row
Since we have 3 columns and four rows df = (3-1)(4-1)
2x 3 = 5
Therefore the critical value of 5% or 0.05 level of
significance under degree of freedom X2 = 0.05 = 5.99
Table 4.24 Calculation of Chi Square
OPTION
O E O-e (O-E)2
(O-E)2
E
SA 32 23 9 81 -3.5
A 28 23 5 25 1.08
D 17 23 -6 36 1.56
SD 15 23 -8 64 2.78
Total 92 100 8.92
Comparing the test statistical with critical value X2
X2 Calculated = 8.92 > X2 table Value of 5.99
60
DECISION RULE
Since the X2 calculated value is greater than X2 critical value, therefore
the researcher concludes that the Government policies and
privatization requirement is a major hindrance that impacts on the
performance of PHCN Staff.
61
CHAPTER FIVE
SUMMARY OF FINDINGS, RECOMMENDATIONS AND
CONCLUSION
5.1 SUMMARY OF MAJOR FINDINGS
This research work dwelt on the effect of internal environment,
composed of the elements within the organization‟s work environment
such as working environment, management style and motivational
actors-incentives, salary increase and opportunity to develop oneself.
The researcher made it clear that the survival of any organization
depends on the quality of its human resources and human capital
could only bring out their best when working environment is
conducive and when they are given the necessary tools to work with.
The whole essence of having a well-equipped arsenal human capital is
to bring out a qualitative service and products which in the long run,
would increase the profit level.
The following are some of the explanations on the result of the
research carried out as presented in chapter four:
i. the relevance of the working environment in the organization
increases employees performance, respondents had varying
opinions as relates to the degree of effect internal environment
have on their performance.
62
ii. Most of the respondents agreed that a cordial employee
relationship would result in improved productivity.
iii. 32% of the respondents agreed that a good work environment
enhances workers efficiency; job satisfaction and dedication to
duty while a majority of them think that productivity and
performance level could be aggravated if workers are motivated.
iv. Respondents also agreed that provision of a good work
environment would lead to low rate of absenteeism and job
changing.
v. Increase is salary will motivate workers to work harder and
produce more as analyzed in the tables. Respondents agreed
that increase in salary would motivate them to work harder and
produce more while others disagreed.
vi. In the analysis of the effect of opportunity to grow and develop
oneself affects employee performance, the respondents agreed
that their performance depends largely on the satisfaction of
their needs by the company.
vii. The researcher found that people work not only to increase
salary but also to meet up with other basic needs, which are
extraneous. It is not the salary itself that matters but the
satisfaction derived from the job itself and its environment these
63
environmental factors are regarded as the hygiene factors
(Herzberg). They include the company‟s policy, nature of
supervision, boss-employees rapport, and the inter-social
relationship amongst co-workers. All these are the necessary
factors the researcher was able to find out from the
questionnaires administered.
viii. The researcher did not fail to meet up with this research
objectives, that is to examine the relationship between the
working environment and performance of employees, but to also
find out how the work environment can be made conducive and
improved upon to minimize employee turnover in the
organization and to investigate whether promotion opportunities
make staff stay with a company and whether money is the main
motivating factor etc.
ix. Pay is a motivating factor but to certain extent. An increase in
salary could make a new employee produce more, whereas
someone that has spent a long time working in a place would
not be motivated by an increase in salary. This fulfils the theory
that man aspires to meet up with higher needs if one need is
met.
64
x. Increases in output are one of the positive effects of a good
work environment. Good work environment enhances job
satisfaction and dedication to the job and this motivates loyalty
to employer.
The researcher was able to deduce that a good working environment
enhances productivity and performance of employees. A good work
environment should be able to motivate the workforce, which should
in turn minimize the rate of job changing. The working environment of
an organization is a motivating factor and not only the „heavy‟ pay
package; increase is salary and bonuses do not increase employee‟s
performance with abundant opportunities to grow and develop oneself
for the future.
5.2 RECOMMENDATIONS
The researcher sincerely recommends the findings of this research
work to top management and human resources managers of Power
Holding Company of Nigeria Plc Enugu Zone. It is of good use to
them, because it could be an eye opener to them to see the intricacies
involved in increasing productivity.
The work environment should be made conducive and improved term
of nature of supervision, boss-employees relationship employee-
employee relationship and most importantly in terms of motivation.
65
Organization should also carry out research on the things that are
bothering their workers, by so doing; they would be able to motivate
them more. What might constitute a group of workers‟ motivator this
year might not be what it would be the next year. So a thorough
diagnosis should be made on a regular basis.
The researcher recommends that promotion should be done in time as
at when due. Workers get involved when they know that they could
get to the top and manage various branches of the company.
Promotional exercises should not be biased.
5.3 CONCLUSION
The work environment is not a new concept in the field of Human
Resource Management. Every organized organization should
implement and put in place a fantastic work environment to boost the
performance of their workers.
The Researcher concludes that workers need to be paid very well to
commensurate with their „efforts‟. They should also be paid as at
when due. Human resource managers should know that „heavy‟ salary
paid to workers cannot only boost the rate of productivity, but with
the complement of other factors.
Again, the working environment matters a lot, good supervision,
rewarding system, congenial and congruent organizational policies
66
that would allow workers attain their own goals vis-a-vis the
organizational goals. Organizations should involve workers
(employees) in decision-making. They should make allowance for
workers to meet up with their basic needs.
More so, the job itself should be enriched by allowing workers to take
up responsibilities. If all these factors are put in place, workers will
produce more and both the organization and the employees would be
better off.
67
BIBLIOGRAPHY
Abraham M. (1970): Motivation and Personality 2nd edition. New York. Alderfer C. (1972): Existence, Relatedness and Growth Human Needs in Organizational Psychology. Armstrong, M. (2004). Handbook of Human Resource Management
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Realities. IPD: London. Anyanwu Aham 9200): Research Methodology in Business and Social Science in Nigeria. Owerri Cannon Publishers Nigeria Ltd. Barry, J.M. (1997). Performance management: a Case Study. Journal
of Environmental Health, 10(4): 35. [Online] Available: http://www.questia.com/read/print (Retrieved from September 29, 2008).
Barry P. Hayres (2008): An Evaluation of the Impact of the Office
Environment on Productivity. Journal of facilities, Business Performance Pty Ltd (2006)
Chandramohan, A. (2008). Human Resource Management. New Delhi:
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Organizational Setting Journal of Facilities, Business Performance Pty Ltd (2006)
David Burnham (1976): Power is the Great Motivator. Harvard
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workplace: Dimensions, Measurements and validation‟. Academy of Management Journal.
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Herzberg F. (1957): Job Attitudes: Review of Research & Opinion. Prittsburgh Psychological Service of Pittsburgh. Laure J. Mullins (2005): Management & Organizational Behaviour.
New York, McGraw Hill. Lawrence T. Lorimer (2005): The New Webster Dictionary of English Language. International Edition. Moorhead and Griffin (1995): Organizational Behaviour and Managing
People & Organizations. Nalini Govindarajulu, et‟ al (2004) Motivating Employees for Environmental Improvement. Onodugo V. A. et all (2010): Social Science Research: Principles,
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69
APPENDIX
Department of Management
University of Nigeria,
Enugu Campus
Dear Respondent,
REQUEST TO COMPLETE RESEARCH QUESTIONNAIRE
I am a post graduate student of the above department of the Faculty
of Business Administration of University of Nigeria, Enugu Campsu. I
am conducting a study on the Effect of Internal Environment on
Employee Performance in PHCN, Enugu. Kindly complete the
questionnaire attached. Do not write your name or your position. Your
responses are used for academic and not for commercial research.
Thank you for your cooperation.
Ofili Maxwell .M.
Researcher
70
QUESTIONNAIRE
SECTION 1: INTRODUCTION
1. How long have you been in PHCN, Enugu?
0 – 1 yr 2 – 3 yrs 3 yrs and above
2. You are prepared to make a career in PHCN, Enugu?
SA A D SD
3. You are prepared to encourage new employees to join PHCN,
Enugu? SA A D SD
4. The unbundling project of PHCN is good for PHCN operations?
SA A D SD
SECTION 2: DOCUMENTATION OF EMPLOYEE PERFORMANCE
AND MOTIVATION
5. Pay is a motivator? SA A D SD
6. Increase in salary will motivate you to work harder and produce
more? SA A D SD
7. Pay affects you in relation to the satisfaction of your basic
human needs? SA A D SD
8. Existing relationship and working conditions affect worker‟s
productivity? SA A D SD
SECTION 3: EFFECT OF EMPLOYEE MANAGEMENT
RELATIONSHIP
9. Cordial employer/employee relationship will result in improved
productivity? SA A D SD
10. PHCN involve employees in decision making?
SA A D SD
71
11. Your performance is dependent on the satisfaction of your
needs by the company? SA A D SD
12. Fringe benefits like Medicals, Lunch and Awards affects
workers performance? SA A D SD
SECTION 4: MOTIVATION/SUPERVISION
13. What kind of supervision do you think is the best to boost
workers performance? SA A D SD
14. The working environment in PHCN is conducive for
performance improvement? SA A D SD
15. Productivity can only be increased by an increase in
salary? SA A D SD
16. Job in PHCN motivate? SA A D SD
SECTION 5: ENVIRONMENTAL FACTORS AND EMPLOYEE
PERFOMANCE
17. Working environment in PHCN has kept you working in
PHCN? SA A D SD
18. There is high rate of employee absenteeism and job
turnover in PHCN? SA A D SD
19. A good working environment will enhance working
efficiency, job satisfaction and dedication to the job?
SA A D SD
20. Productivity and performance will be improved
tremendously if workers are motivated? SA A
D SD