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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

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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:

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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

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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.

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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

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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

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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

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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

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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.

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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?

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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.

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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.

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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.

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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

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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.

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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.

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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

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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

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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

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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

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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)

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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.

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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

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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.

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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

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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


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


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


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


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


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



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


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


49


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


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



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


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


50


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%)


Table 4.9 Response on existing working conditions and how it affects employee productivity


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.


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


Table 4.10 Response on whether cordial employer/employee relationship will result in improved productivity.

PROPOSITION


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


51


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


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



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


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


52


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


Table 4.13 Response on the effects of fringe benefits on performance


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.


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


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


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



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


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


54


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



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%)


Table 4.18 Response on whether working environment in PHCN has kept employees working.

PROPOSITION


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


55


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%)


Table 4.19 Response on the rate of employee absenteeism and Job turnover in PHCN

PROPOSITION


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



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


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


56


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


Table 4.21 Response on effect of motivation on productivity


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



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


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


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



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


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



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

Practices (9th ed.). London: Kogan Page. Armstrong, M. & Baron, A. (198). Performance Management: The New

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:

S.B. Nangia APH Publishing Corporation. 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, Business Performance Pty Ltd (2006)

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.

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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,

Methods and Applications, Enugu, Ed‟mark Publishers.

Ozo, J. Ubata et‟al (1999): Introduction Project Writing for Business and Financial Studies. Enugu Sunny Enterprises. Paul Roeloelofson (2002): The impact of office environments on

employee performance. The Design of the Workplace as a Strategy for Productivity Enhancement. Journal of Facilities Management.

Tim. O. Peterson and Jon W. Beard (2004): Workspace Technology‟s Impact on Individual Privacy and Term Interaction. Vroom Victor (1964): Work & Motivation. New Your Wiley.

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

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