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THE IMPACT OF JOB SATISFACTION ON EMPLOYEE PERFORMANCE IN GOVERNMENT OWNED ENTERPRISES

ABSTRACT

The topic of this project report on the Impact of job satisfaction on employee performance in Government Owned Enterprises (GOE’s). There was a time when it was considered sound economic policy for government to establish and invest in corporation and enterprises. It was then agreed that government owned enterprises were better for stimulating and accelerating natural economic development rather than private initiative. This research therefore aimed at investigating, identifying, analysis and presenting research findings on the Impact of Job Satisfaction on employee performance. To achieve the above aims, research hypothesis were formulated to that whether promotion has no impact on job satisfaction, there is no relationship between salary and job satisfaction and conducive environment does not contribute to job satisfaction in government owned enterprises. The researcher made use of research questionnaire, which were designed and distributed to staff of these government owned enterprises. The method of analysis is the use of tables, percentage and chi-square. The major finding of the research is that promotion has a significant relationship with job satisfaction, there is relationship between salary and job satisfaction and conductive environment contribute to job satisfactionamong employee in government owned enterprises. In view of the above findings the study recommended that:

1. Government owned enterprises should see increase/prompt payment as a motivation factor, that can increase productivity in the organization.

2. Government should use employee inputs as a criteria for promotion of workers, because most of these workers in government are idle.

3. Government should make the working environment conducive, so that the workers, can see their working environment as their second home. 4. Government owned enterprises should adopt management by objective in which employee should be part in decision making of the organization so that all hands will be on deck.

5. The structure of the organization should be restructure so that there will be cordial relationship between the employees and employer.

6. Working conditions should be improved and sustainable to enhance performance.

7. Management should be sensitive to the difference in needs and values among the employee. Every individual is unique and will respond differently to attempts to motive him or her.

8. Management should be sensitive to employees, complaints about low pay and unchallenging work. Too often management delude them into thinking that employees dissatisfaction can be lessened by painting work area piping in music, giving out a few more words of praise, or giving people longer work breaks.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The importance of qualified manpower in the social, political and economic development of any nation can hardly be overemphasized. No nation is known to have attained and sustained high level of economic growth and development without ample supply of manpower. Of all the factors that unlock the forces of economic and development, a country’s human resources is the most vital because without, it all the other factors have to wait. (Nwachukwu 1988, p-128)

Positive changes in the quality of work force according to Nwachukwu, account for rapid economic development that has taken place in advanced countries, Kuznet in Nwachukwu once observed that “the major capital stock of an industrially advanced country is not its physical equipment; it is the body of knowledge amassed from tested findings and discoveries of empirical science, and the capacity and training of its population to use this knowledge”.

At the organization level, the essence of any manpower programme is to enhance the welfare of workers by maximizing their skills as well as the quality and quality of their employment opportunity and by so doing add to their economic strength (Nwachukwu ibid). Thus all employee programme are aimed at human resource development and utilization bearing in mind that a well-motivated and satisfied manpower is an asset to an organization, which enhances productivity. In a real sense, three important elements, money, man and material make up any business enterprises. While each of these elements is particularly importance in any organization, it is however the people or the human element that is often responsible for the success of an organization.

It is not uncommon to experience a situation where competing firms buy materials in the same market, secure their money from the same sources and employ their personnel in the same area, yet one company emerges as being more productive and profitable than the other.

A study of such circumstances more often than not reveals that the difference in the performance is due to the fact that one company has a more “satisfied” work force, hence more productive. With this illustration, people/manpower determine the success of enterprises.

A well-known management theorist, Rensis Likert concludes, “All the activities of any enterprises are initiated and determined by persons who make up that institution, underscores the importance of employee function. Plant, offices, computers, equipment and all else that a modern firm uses are unproductive except for human effort and direction. Of all the tasks of management, managing the human component is the central and most important task because, all else depend on how well is done” (Likert quoted in Iyayi 1989, p.151). Personnel/employee administration is that organization or enterprises function which is especially concerned with the management of the human component in organizations.

This human component pervades the entire organization and because of this, it follows that the performance of the personnel, or at least an important part of it, devolves on all individuals and managers who in one way or another have responsibility for the performance of one or more subordinates in the organization. The management function of leading, directing and motivating are all personnel functions, which all management must perform. A manager who fails in any of these respects is also likely to fail in the performance of his/her primary responsibility even if such responsibility is for production, accounting or marketing (Iyayi ibid).

The fact that all managers perform personnel functions is however, not to imply that they are all personnel managers. In every organization, there is a distinct department or section that is specifically charged with the responsibility of initiating and formulating policy as well as providing advice, service and control of all personnel matters. Thus, although the people designated as personnel managers perform all the personnel functions of all managers, they in addition, usually have broad human skills, and specific technical skills for dealing with people oriented problems in the organization. The personnel manager usually applies his/her technical skills in dealing with issues that arise in the following major areas: employment, training and development, transfer, promotion and lay off, wage and salary administration, health and safety, discipline and discharge, industrial and labour relations, employee benefits and services, and personnel and behavioural research.

The above, constitute staff conditions of service, which is the hub of personnel management and on which depends industrial peace, industrial expansion and the general well being of the staff and the organization ( Abah 1997, p.238).

Staff conditions of service vary from business to business, from industry to industry and more significantly from government owned businesses to privately owned ones and among government and private business enterprises, which in turn accounts for the wide difference in job satisfaction and employee performance in the various organizations. It is based on the foregoing that this study dwelt on the impact of job satisfaction on employee performance with special emphasis on government owned enterprises in Nigeria.

1.2 STATEMENT OF PROBLEM

Nigeria, like many other countries of the developing world became vigorously involved in accelerating the wheels of economic and industrial development of her economy. She became actively involved in the establishment of public enterprise and government businesses covering a large complex spectrum of public utility, infrastructure facilities, strategic enterprises, industries and commerce.

Since independence in 1960, the country has either inherited or established such organizations as the Nigerian Railway Corporation, Nigerian Airways, among many other corporations. However, the management of these companies over the years has left much to be desired. For instance the Nigerian Airways according to the Director General of Bureau of public enterprise is a bankrupt company.

Reeling out the statistics about the organization, Director General of Bureau of Public Enterprises said Nigerian Airways has 400 million Dollars Debt. It has 2000 employees and one plane. It also has 40 million Dollars in pension liabilities. This type of scenario applies to almost every government owned company/corporation in Nigeria and has equally affected job satisfaction and employee performance in them.

Management influences and determines the performance of employees. But many managers in Government Owned Enterprises in Nigeria are either lacking in the elementary principles of organizational behaviour or are not given the free hand to run their firms. They do not know how to identify employees’ goals and link rewards to motivate employees.

It has been observed that all the work related Nigerians possesse factors necessary for productivity. The only thing lacking is the supervisory/managerial abilities to harness these talents. Based on the fore going, the study sought answers to the following questions:

a. What is the nature of supervisory/managerial practices in government owned companies?

b. How has this affected job satisfaction and employee performance?

c. Are the motivational and other management practices in Government Owned Enterprises adequate to ensure job satisfaction and enhance employee performance?

d. Do the supervisors/managers of Government Owned Enterprises follow establishment management practices in taking decisions affecting the employees?

1.3 OBJECTIVES OF THE STUDY

The objectives of the study are;

1. To identify the role of promotion on job satisfaction among staff.

2. To determine effect of salary on job satisfaction among staff.

3. To identify the important of conductive environment on job satisfaction.

1.4 RESEARCH QUESTIONS

1. What is the relationship between promotion and job satisfaction among staff?

2. Is there any relationship between salary and job satisfaction among staff?

3. To what extent does conducive environment contribute to job satisfaction among staff?

1.5 RESEARCH HYPOTHESES

1. There is no relationship between promotion and job satisfaction among staff

2. There is no relationship between salary and job satisfaction among staff

3. Conducive environment does not contribute to satisfaction among staff.

1.6 SIGNIFICANCE OF THE STUDY

Management of Government Owned Enterprises has been a thorny issue in Nigeria and has generated quite a high number of debates and literature in the last two decades. This study is therefore significant because it will add to the existing body of literature in this areas.

It is also significant because it would provide information on the trend and journey so far in the management of Government Owned Enterprises. The results of the study will be discerning as it will reveal how much job satisfaction is obtainable in the government owned enterprises as well as how these have affected employee productivity in the organizations.

Since independence, government in establishment of businesses and maintaining them has invested so much; yet not much has been recorded in the area of productivity and employee morale.

According, this study will be useful to economists, management practitioners, students and the general public because it will provide direction on the way forward. The recommendations are useful because they will serve as advice to the government on what ought to be the appropriate relationship between government and the businesses.

Finally, the study is significant because it is an academic exercise required in partial fulfillment for the award of a Master Degree in Business Administration.

1.7 SCOPE AND LIMITATION

The scope of the study covers Enugu, the Capital of Enugu State. The concern of the study was the government owned companies within the city. Enugu served as capital of defunct Eastern Region, East Central State, and old Anambra State hence its good number of government businesses, which are either headquartered in the city or have regional offices there. Such companies studied are the Enugu State Transport Company (ENTRACO), Hotel presidential, Enugu, Nigeria Railway Corporation, Eastern Regional Office among others. These companies were established to make profits, as aim yet to be met.

This study has quite a number of significant limitations to it. The first was that the researcher as a worker has to combine her work with the study and this was not easy. Additionally the study was conducted during the period of fuel scarcity this resulting in high cost of transportation and in some most cases, low attendance by staff of the organizations visited for the distribution of questionnaires. Conducting a study of this nature in our environment receptive of answering the oral questions while others did not take time off of study the questionnaire hence few of the discard due to wrong filling. These limitations did not affect the outcome of the study in any way.

1.8 DELIMITATIONS OF THE STUDY

As already mentioned, Government Owned Enterprises like PHCN etc were established to provide infrastructure services. For this group of Government Owned Enterprises, performance is in the area of efficiency of services provided. There are other categories of Government Owned Enterprises established purely for profit making. For this group performance comes in the area what is made in terms of profits.

This study is delimited mostly to the second group where it is assumed that the impact of job satisfaction on productivity is felt more. This implies that only companies established purely for profit were considered for the study. The above delimitation was considered normal for a study of this nature in a developing country like ours with paucity of data.

1.9 DEFINITION OF TERMS

1. Motivation: This is a process of stimulating people to action in order to achieve desired goals or accomplish a desired task: Hezbong, Fedenick (1964). The motivation Hygiene concept and problems of manpower personnel Administration January – February.

2. Personnel Administration is that organization or enterprises function which is especially concerned with the management of the human component in organization. Abah, Norbert C. (1997) Public Personnel Administration Enugu: Jeen Publishers Ltd.

3. NA – Nigerian Airways. Sun Newspaper April 20, 2003

4. B.P.E.- Bureau of Public Enterprises Sun Newspaper April 20, 2003

5. MBO: Management by objective Odiorne, CT Politics of Implementing MBO” Business Horizon June 1974

1.10 REFERENCES

Abah, Norbert C. (1997) Public Personnel Administration Enugu: Jeen Publishers.

Fubara, Bedford A. (1989) Government in Business in Pita Ejiofor (Ed) (1989) Foundations of Business Administration, Onitsha: Africana Fep-Publishers Ltd.

Iyayi Festus (1989): Elements of Personnel Management, in Pita Ejiofor (Ed) (1989) Ibid.

Nwachukwu C.C. (1988)” Management: Theory and Practice, Onitsha: Africana Fep Publishers Limited.

Nasir el Rufai “Statistics of Nigeria Airways” Interview in the Sun Newspaper April 20, 2003.

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