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EVALUATION OF DISTRIBUTION STRATEGIES IN THE MARKETING OF PETROLEUM PRODUCTS (A CASE STUDY OF NNPC, ABA DEPOT)

ABSTRACT

The research topic “AN EVALUATION OF DISTRIBUTION STRATEGIES IN THE MARKETING OF PETROLEUM PRODUCTS” (A CASE STUDY OF NNPC, ABA DEPOT) was chosen because of the constant scarcity of petroleum products that the Nigerian public has been witnessing for some years. The research looked at the relationship between the distribution and the relationship between the distribution strategies and the availability of petroleum products for public use and to find out if there were other factors other than poor distribution strategies responsible for these scare products. In sampling of the opinion of the NNPC staff and customers (marketers), the questionnaire and interview methods were used, while their responses were analyzed and used to test the hypothesis using the chi-square method. The result revealed that there were other factors such as overhead costs of distributing the petroleum products, vandalization, and corrupt practices by some members of the distribution chain etc. responsible for the ineffectiveness of the distribution strategies. At the conclusion of the research, it was suggested that these factors mentioned above be either eliminated or reduced and stringent measures be adopted to act as deterrents to other corrupt practices in the distribution chain. 

CHAPTER ONE

1.0    INTRODUCTION

Generally, an employee brings to the business organization a set of wants that issue from his basic needs  structure. The satisfaction of there want is to some extents  with the control of the make money  feed  their  families well  and enjoy  better  conditions of living. Hence, if working will make them  earn more than  they normally do, especially when  they have skill and energy  to do so motivation implies more  incentives and inducements, which will make the workers feel more   committed  to duty  because of the hope  of the income it will aid to his regular salaries.

On various occasions, highly motivated people have achieved success despite the absence of good plans or effective  organizational structure. And of course the more highly motivated the subordinate the less control is necessary  to ensuring that work  will be executed.

However, motivation is not a substitute for planning organizing and controlling. Motivation implies that more power  has with the  subordinate who may assist direction in carious ways.

        An in-satisfied need creates tension, which stimulates drive within the individual. There drive generate search behaviour to   find particular goals  that if attained, satisfy  the needs and leads to the reduction of tension. motivated employee  are  in a state of tension. In order to relieve this tension, they engage in activity.  The greater the tension the activities to bring about the relief therefore when we see people working hard to some activity by a desire to achieving they are driven  by a desire to achieving  some  goals that  they perceive as having value to them.

        Motivation and employee performance is a vital tool for achieving organizational goals.  In the public sector, it is easy for the manager toad a little incentive to motivating his workers for greater performance and higher productivity.

        Against the background, the estimated number of employee in National Nigeria Petroleum corporation (NNPC0 is 200 employed in Aba and 400 employed in Port Harcourt totaling 600 employed.

        Therefore, research tends to finding out the problem facing Nigeria economy and employee performance. The research hope to finds out how and to what extent and improved incentives or motivation of employees in the NNPC helped in productivity and the effect of management productivity.

1.1.   BACKGROUND OF THE CASE STUDY

The Nigeria National Petroleum Corporation, otherwise known as NNPC is a commercial Integrated International Oil company engaged in exploring production processing, transportation  and marketing of crude oil gas. The corporation is oriented towards efficiency, profitability and financial autonomy to maintaining its leadership roles in Nigeria as long-term growth and economic development through the start up and fostering of new gas and petroleum based Industries.

        The NNPC was established in 1977 by the NNPC Act number thirty three (ACT 33)  Pf the Year  thoroughly  the merger of the Nigeria National Oil development Company (NNDC where functions were mainly operational and the then Federal Ministry of petroleum resources which performed the regulatory  function. The two body were merged to create a more virile oil   agency and optimize human and infrastructure resources available to government. The then NNPC, Therefore performed both Operational as well as  regulatory functions and it was divided into eight divisions to carry out those  functions  effectively.

In October 1985, the corporation was owing to the  demand of Oil Industry, re-organized into six (6)  autonomous limits  known as sectors  in a bid to encourage innovation, efficiency and positive aggressiveness.

        On Monday 21st January 1988, presidents Ibrahim Badamasi, Babangida announce the re-organization and commercialization of a more result-oriented organization. In the new re-organization, which was the out come of along period of studies, seminars, work shops and restructured into three major responsibility namely; corporate services (which includes finance administration,  public   affairs  Personnel technology and corporate  legal matter): Operation (which  include ,exploration and production, includes, exploration and production, gas manufacturing, petrochemicals and National  Petroleum Investment.

Crude Oil marketing and production sector of the Industry, while the Corporations services and Groups executives Director  (GED) heads Operations, Arms NAPIMS is headed by a co-coordinator

        A high point of the re-organization is the establishment of eleven subsidiary Companies Under the operations arms the companies are: the Nigerian Petroleum Development Company Limited 9For exploration and production of petroleum). The interpretation for NNPC and other oils Africa, Warri Refinery and petrochemical company Limited (for refinery of certain black and polypropy lever petrochemical): Kaduna Refinery/ and petrochemical company Limited (for refinery of petroleum and production of Linear Alky Benzene and heavy zalkylates): and the pipe lines and products marketing company Limited  (for buying Crude oil from government, transports some to refineries to NNPC depots for sales to marketers):

        Other company Includes hydrocarbon service of Nigeria Limited (for petroleum products marketing abroad in joint venture with chevron): National Engineering and technical Company (to engineering NNPC jobs and other and others to be won in Nigeria and African): Liquefied National gas company Ltd. (to set up the LNG Project in joint venture with shell, and ELF).

Port Harcourt Refinery company Limited  (for refinery petroleum especially for export), and the Element petrochemicals Company Limited  (to Manufacture petrochemicals in a joint venture between NNPC and the Private sectors).

        Another Important Aspect of this re-organization was  the transfer  of the petroleum inspectorate, the rest while regulating arm of the NNPC  to the Petroleum. Resources Department of the Ministry of Petroleum Resources.

        A major implication of the restructuring of the NNPC is now financially autonomous in all its operations.

Therefore, the corporation is expected to make regular dividend payments to government as a returns for government investment in its.

1.2    THEORETICAL FRAMEWORK

In research studies and report of these kinds, different approaches are usually used as a heuristic diverse to explain what really constitutes the scope of such study.

        Douglas McGregor late professor of managerial at MIT State the human bid of enterprises is all a piece of assumptions management Holds about control human resources determine the whole character of the enterprise.

These assumptions determine also the quality of the successive generations management.

        Douglas McGregor concluded that a manager’s new of human nature is based on one of two sets of assumptions about people and that a managers new of human nature is based on one of two sets of assumptions about people and that managers tend to mould their behaviour towards subordinates according to which set of assumption they hold. The first set of assumption, basically negative, McGregor labeled theory X and the second Y.

Under theory X the four assumptions held by the manager are:

Employee inherently dislike work and when even possible, will attempt to avoid it.

Since employee dislike work, they must be covered controlled or threatened with punishment to achieve desire goals.

Most workers place security above all other factors associated with work , and will display little ambition.

        Contrary wise McGregor listed the following assumptions under theory Y.

The expenditure of physical effort in work is as natural as play or rest.

External control and the threat of punishment are not the only means of objectives to which he is committed.

Commitment to objective is a as result of the reward  associated with their achievement.

The average human beings have under proper conditions not only to accept but also to seek responsibility.

There assumptions McGregor felt  provided a better  explanation of human  nature and therefore indicated  the need for a  different managerial strategy in dealing with  people  .

        The motivational implications if you accept McGregor’s analysis, is  that the framework presented by  Maslow. Theory X assumes the Lower order needs dominate individuals. Theory Y dominate individuals. Theory Y assumes that the higher order needs dominate. McGregor himself held to the belief that theory Y assumptions were more valid than theory X. Therefore, he proposed ideas like participation indecision-making.

        Opportunities for responsible and challenging jobs, and good group relation as approaches that would maximize an employees job motivation.

        Relating McGregor’s theory X and Y to present situation in NNPC, One can categorically say that most managers in the corporation use both theory X and Y.

However, for effectiveness productivity in terms of employee motivational to be ascertained in an organization the both theories X and Y should be practical zed  used  by only management for a better  performance.

1.3 STATEMENT OF THE PROBLEM

There is a general belief in work environment that employees in state owned enterprise are not well motivated.

Nigeria National Petroleum Corporation (NNPC). Is just one such organization. In the past six year or more, there have been charge of Negligence leveled against NNPC management Culminating into incessant Strices Agitations labour unrest and eventually how productivity evidence in shortage of petroleum product in the country. The above situation has even been brought into lime light by regular facing the NNPC, but it is regrettable that there has note the case of the problems that are apparently plunging the nation to untold hardship.

On the other hand, since employees represent the most relevant portion of the asset of the corporation. There is need to prevents the welfare of the workers. This will includes in insight of their general performance given the situation existing in the oil corporation.

        Consequently, in the research intend to find out to what extent the employee in the co-operation are motivate and its impart on their performance.

1.4 OBJECTIVES OF THE STUDY

The study will generally attempt to contribute to solution of motivation in the Nigeria petroleum co-operation but specifically.

To ascertain whether the supervisory style has any effect on motivates staff achieves success in the absenc3e of good plan or effective organization structure.

To find out whether motivation can lead to organizational effectiveness in NNPC.

To offer suggestion on how to use motivational tools on NNPC workers to achieve greater outputs.

1.5 RESEARCH QUESTIONS.

Research process can be viewed as a four-level hierarchy of questions. However, in general a term, when mention is made of research question what comes to mind is a reflection of the general purpose of the research. They are question asked in order to locate answers to the research problems. They convert the research problem into question in specifics, thereby making them variable.

        However, research problems dissolve into research questions, which are in turn converted into hypothesis for testing and providing answers to the problems, for example.

Does manager’s supervisory style affect employee’s attitude to work positively significantly.

What are the positive and significant relationship between motivation of workers and increased performance in the public sector

How the level of competence of managers of performing their duties in NNPC.

1.6 SIGNIFICANCE OF STUDY

It is expected that this will help Nigeria national petroleum in co-operation in no small measure in providing possible solution to its motivation problems.

Academically, this study constitutes a contribution in the field of public administration especially as its studies motivation and performance in the public sector.

        It will help the feature researchers who will like to carry out a researcher in motivation for further consultation of performance and motivation. The study gives the researchers the opportunity to known more about NNPC.

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