EFFECT OF JOB SATISFACTION ON PRODUCTIVITY IN A BUSINESS ORGANIZATION

(A CASE STUDY OF GUINNESS NIGERIA PLC)

By

Author

Presented To

Department of Business Administration and Management

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Job satisfaction is generally recognize in the organizational behavior field as the most vital and frequent studies attitude the concept of Job Satisfaction has been developed in many different ways by researchers and practitioners.

One of the most widely used definitions in organizational research is that of Locke (1976) who define Job satisfaction as “a pleasurable or positive emotional state resulting from the appraisal of one’s Job or job experience. It involves cognitive effective and evaluates reaction on attitude. Although recent theoretical analysis has criticized job satisfaction as been too narrow conceptually.

There are three generally accepted dimensions to job satisfaction. One of them is that Job satisfaction is emotional response to a Job situation as such it cannot be seen but inferred. Secondly, Job satisfaction is often determine by how well outcome meet or exceeds expectation. For example if organizational participant feel that they receive less reward, they may probably have a negative attitude towards their work and even their boss.

On the other hand, if they feel they are been treated fairly they are likely going to put in their best and develop a very positive attitude towards their Job Thirdly Job satisfaction represents several related attitude

In a nuts shell, Job satisfaction is simply how content an individual is with his or her Job Whether he/she likes the Job or not a happy worker is a productive worker If workers are paid regularly (amount which must be commensurate with their input), given fair supervision, challenging Job, opportunity for training and development policies and procedure security etc they will be motivated to put in their best which will in turn increase their productivity and efficiency

12 STATEMENT OF THE PROBLEM

The problem of low productivity, inefficiency and workers dissatisfaction has forced many companies to fall back to work study and other technique of improvement as a solution for these lasting problem It has been recognized that companies are complex entities that consist of element as well as workers who are affected by many internal and external factors The satisfaction which workers receive or experience in their job is a large extent the consequence of the extent to which the various aspect of their work situation are relevant to their job valve Problem therefore arises within companies in Nigeria in the following ways

13 OBJECTIVE OF THE STUDY

The objective of the study includes the following;

(i)      To critically examine the effect of Job satisfaction in an organization

(ii)     To know the major effect and causes of Job dissatisfaction in an organizational setting

(iii)    To thoroughly examine the relationship between job satisfaction and performance of workers

(iv)    To properly examine those key factors that enhance Job satisfaction in an organization

(v)     To thoroughly examine the possible ways of improving Job satisfaction among employee’s in order to improve the productivity efficiency and effectiveness in an organization

14 RESEARCH QUESTION

1       It there any correlation between job satisfaction, productivity and efficiency?

2       Does Job satisfaction in any way bring about increase in productivity and efficiency in an organization?

3       To what degree does job satisfaction influence the behavior and attitude of employee’s towards their job responsibilities?

4       What are those possible factors that may likely lead to job dissatisfaction among employee in an organization?’

5       What are those factors that enhance Job satisfaction in an organization?

6       How does Job satisfaction motivate employees in an organization?

15 STATEMENT OF HYPOTHESES

HYPOTHESES I

Ho: Workers are not motivated when they are satisfied with their job

Hi:  Workers are motivated when they are satisfied their job

HYPOTHESIS 2

Ho: Job satisfaction does not enhance increase in productivity and efficiency in an organization

Hi: Job satisfaction enhances increase in productivity and efficiency in an organization

16 SCOPE OF THE STUDY

The researcher centered on factors that could enhance job satisfaction of employees in an organization and also impediments that are likely to hamper employees’ job satisfaction Considering fund and other limiting factors, the researcher will like to limit his findings on Guinness Nigeria Plc, as a case study

In this sample analysis, different categories of Guinness Plc staffs will be issued questionnaires so as to ascertain factors that cause them dissatisfaction while carrying out their different duties as well as possible solution that ameliorate the ugly trend

17 SIGNIFICANCE OF THE STUDY

A critical study of firms whose major objective is to satisfy customer and make profit, yet they keep struggling with increase productivity and efficiency, our will discover that nearly all of them have organizational problem One of such problem is job satisfaction which is an important issue to all firms Below are some of the relevance of the study;

(i)      This study will also help to reduce industrial conflict that may possibly arise in an organization Although conflict in an organization is inevitable but with the help of the study, the issue of industrial conflict, in an organization will be reduced to the barest minimum

(ii)     Another significance of the study is to proffers a solution to the problem of personnel management in an organization which affects productivity and efficiency

(iii)    It is hoped that the findings made in this study will enhance job satisfaction variable in order to promote the effectiveness and productivity of any organization

(iv)    A firm will be able to act proactively instead of being reactive to Job dissatisfaction by discovering factors that may possibly cause job satisfaction and those that may lead to dissatisfaction On the other hand, firm who have already encountered this problem of job dissatisfaction will take corrective measure in order to improve the relationship between management and her employees

(v)     In this research work issue (factors) that may likely bring about Job dissatisfaction among employee and make them feel more frustrated; made lesser efforts toward job task and typically changed job more frequently in an organization will be identified and eliminated

18 LIMITATION OF THIS STUDY

The study was affected by the following factors;

(i)      TIME FACTORS: The time allotted to carry out this study is short compare to the issue to be covered it look the researcher a lot of time to gather the necessary material needed such as text book, information from internet, journal, and other publication other academic activities also contributed to one of the limiting factors

(ii)     ATTITUDES OF RESPONDENT: Attitude of some respondent also contributed to the problem faced by the researcher Some of the respondent could not return the questionnaire distributed to them and some were afraid to speak, some were not ready to disclose some of the vital information probably because of fear or reason best know to them

1 9 OPERATIONAL DEFINITION OF TERMS

i       JOB: Job is that smallest unit of responsibility given to an individual through which he or she contribute his or her own quota to the, achievement of organizational objective and goal

ii      ORGANIZATION:  Organization is a group of people who form a business club etc in order to achieve a particular goal and objective

iii     EMPLOYER: One who hire people (employees) to work for him for the purpose of achieving his stated aims and objectives

iv     PAY: This is the amount of financial remuneration which an employee receives in exchange of his input in an organization which is usually on monthly basis

v      FRINGE BENEFIT: These are productivity inducing Valve given to a worker which is not part of his basic pay The purpose is to motivate the worker to put in his best in the organization

vi     BUSINESS: Business is any legal activities engage by man which is aimed at providing goods to make profit that will earn him a living

vii    PROMOTION: Promotion is an opportunity given to an employee to advance from lower position to larger position in an organization

viii   PERFORMANCE: This is the end result of a task performed by a worker

ix     JOB SATISFACTION: Job satisfaction is the joy and happiness derived for performing a given task

x       PRODUCTIVITY: Productivity is the rate at which a worker performs the task given to him with the resources available

xi     EFFICIENCY: This is the ability to perform Job given to a worker using a lesser time without wastage or error

xii    EFFECTIVENESS: The ability of a worker to perform an assigned task according to the, standard set by the organization

xiii   JOB ANALYSIS: This is the process of gathering much information about the content of a particular job for the purpose of understanding the duties of the person who is to perform the job

xiv   JOB ROTATION: Is the movement of a worker from one department to the other in the organization

xv    JOB – DESIGN: The process of putting together the various element of work that constitute an operating system to form the job that individual will perform

xvi   RESPONSIBILITY: An assignment or task which a worker is held responsible for

xvii MOTIVATION: This is an encouragement which is given to a worker that enable him to work harder

xviii          POSITION: Position is the authority which the task and duty of a person bestowed on him or her

xix   SUPERVISION: This is a direct assistance given by a supervisor to his subordinate which enable the subordinate to be effective and efficient in his Job

110 HISTORICAL BACKGROUND OF GUINNESS NIGERIA PLC

The firm Guinness Nigeria Plc came into existence in year 1950 with the sole aim of importing and distributing Guinness stout from Dublin for eventual sales in Nigeria Due to the success of the product in the country it gave rise to a decision to establish a small brewery in the year 1962 The foundation stone of Guinness was laid at Ikeja on the 31st January 1962, by Arthur Benjamin Francis Guinness now the Earl of Irish to which titles he succeeded on his grandfather’s death until 1967 in active services during the 2nd world war

Guinness Nigeria is a subsidiary of the prestigious Diageo Plc of the United Kingdom The brewery was the first outside of Ireland and Great Britain Other breweries have been opened over time – Benin City brewery in 1974 and Ogba brewery in 1982

Guinness Nigeria produces the following brands – Foreign Extra Stout (1962), Guinness Extra Smooth (2005) Malta Guinness (1990), Harp Lager Beer (1974), Gordon’s Spark (2001), Smirnoff Ice (2006), Satzenbrau (1995)

Guinness Nigeria Plc is a company that believes in enriching its communities This it has achieved by embarking on laudable Corporate Social Responsibility projects in several communities in Nigeria These projects are Water of Life initiative, which currently provides potable water to over 500,000 Nigerians spread across several rural communities, from Northern to Southern Nigeria; scholarship and Guinness Eye Hospitals in three cities in Nigeria

Nigerian Guinness is said to be twice as strong as Irish Guinness In the 1800s, the Irish brewed the Guinness twice as strong, due to a fear of evaporation on the long voyage to Nigeria However, the alcohol did not evaporate, and to this day Nigerians brew their Guinness twice as strong

Guinness Nigeria limited became a public company In 1965 and was one of the first companies to be quoted in Nigeria stock exchange with shares being offered to Nigerian shareholders, 1200 Nigerian held 20% of the equity

In 1971, a decision was taken to build a new Brewery at Benin at a cost 12 million to brewery larger beer, this was the biggest brewery ever built in Nigeria

The company believes that investment in the training and development of its staff are wise investments This has resulted in the establishment of training centers in Benin and Lagos (Ikeja)

Following the ban on importation of methods barely the company has conducted research into the use of maize and sorghum in place of malt in production of the different brands of beverages

In the Nigerian market, Harp lager beer gained a remarkable success alongside Guinness  stout, due to its good quality too hence received a wide patronage and now known as Guinness Nigeria PLC

It was merely up to a decade of the brewery and marketing of harp that its brand loyalists started shifting their interest to the other hand The complaint raised by Harp patronizes for gradually changing preference was as a result of the carelessness on the part of the brewers to eradicate particles discovered in the final product and these were major set-backs suffered by Guinness Harp

In the year 1995 a new product line “satzenbrau” was in the market and it received attention in Lagos and west Ibadan to be precise for now

In 1990 another product line “Malta Guinness”, was also in the market and it has received attention all over the country and outside the country

It indeed received acceptance and as such requires effective management system, to guide against the future of all lines of product carried out by Guinness Nigeria Plc (wwwGuinnessnigeriacom)

Reference(s):

Armstrong M (2006), A handbook of Human Resources of Management Practice Tenth Edition Kurgan David and Omoile (2007), Encyclopedia, of Business and Finance, second edition Carol B I (2001), Effectiveness of job satisfaction Dibie, A (2001) Organizational Behaviour, Solution for management Geoe J M and Jones G R (2008), understanding and managing organizational behavior, fifth edition Imafidon D O (2009), Essential of organizational behavior Matko Publisher Limited, 66 Ikpoba Hill Housing Estate Kaliskil B O (2007) Encyclopedia of Business and Finance, Second Edition Momoh, AK (2009) Personnel and Human Resource Capital Management Mullins J L (2005), Management and Organizational Behaviour, Seventh Edition Robert G I (2000), understanding job satisfaction