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

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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 satisfaction among

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.

TABLE OF CONTENTS

Title Page i

Certification ii

Dedication iii

Acknowledgement iv

Abstract v

Table of Content vi

CHAPTER ONE: INTRODUCTION

11 Background of the Study 1

12 Statement of Problem 4

13 Objectives of the Study 6

14 Research Questions 7

15 Research Hypothesis 7

16 Significance of the Study 7

17 Scope and Limitation 8

18 Delimitations of the Study 9

19 Definition of Terms 9

CHAPTER TWO: LITERATURE REVIEW

21 Motivation – Definition and Meaning 12

22 The Nature of Motivation 13

23 Types of Motivation 14

24 Motivational Tools 14

25 Theories of Motivation 15

26 Importance of Motivation 26

27 Management by Objective 27

28 Employee Satisfaction 32

29 Employee Performance and Satisfaction 37

References

CHAPTER THREE: RESEARCH METHODOLOGY

31 Introduction 44

32 Research Design 44

33 Sources of Date 44

34 Instruments for Data Collection 45

35 Population of the Study 45

36 Pilot Survey 45

37 Reliability and Validity of Data and Test Instruments 46

38 Data Treatment Techniques 46

References 48

CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA

41 Data Presentation 49

42 Data Analysis 50

43 Test of Hypothesis 59

References

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATIONS

51 Summary of Findings 68

52 Conclusion 69

53 Recommendations 70

References 73

Bibliography 74

Appendixes 76

CHAPTER ONE

INTRODUCTION

11 BACKGROUND OF THE STUDY

The importance of qualified manpower in the social, political and

economic development of any nation can hardly be over emphasized 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 advance 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,

p151) 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 behaviourial 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, p238)

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

12 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 Dolars

Debt It has 2000 employees and one plane It also has 40 million Dolars 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?

13 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

14 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?

15 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

16 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

17 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

18 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

19 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 BPE- Bureau of Public Enterprises Sun Newspaper April 20, 2003

5 MBO: Management by objective Ordiorne, CT Politics of Implementing

MBO” Business Horizon June 1974

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 CC (1988)” Management: Theory and Practice, Onitsha: Africana

Fep Publishers Limited

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