Project Materials

BUSINESS ADMINISTRATION

MOTIVATION’S IMPACT ON ORGANIZATIONAL PRODUCTIVITY

MOTIVATION’S ON ORGANIZATIONAL IVITY

FIRST PART

INTRODUCTION

 

1.1 INTRODUCTION TO THE STUDY

 

The National Electric Power Act of 1972 formed the National Electric Power Authority. The Act authorized the consolidation of the Niger Dam Authority and the Nigerian Electricity Corporation. The operative object clause includes the following: “to build and maintain an efficient, coordinated, and cost-effective system of electrical supply to all parts of the Federation or as directed by the Authority, and to this end:

 

Produce or obtain a supply of power,

 

Supply large quantities of electricity for distribution within or beyond Nigeria, and

 

Supply consumers in Nigeria with power as directed by the authority on a periodic basis.”

 

A detailed examination of NEPA’s performance over the years demonstrates that the aforementioned provisions of the Decree are not observed in an effective manner. A World Bank report indicated that inefficiencies in Nigeria’s power industry alone caused annual losses of more than US$800 million (World Bank 1994).

 

Currently, investment costing is incorrect since it does not account for the cost of self-provisioning electricity, even when wealthier households have private electricity generators.

 

NEPA’s transmission losses range from 15 to 20 percent as a result of poor distribution expectations, which are exacerbated by the agency’s excessive inefficiency and improper investment strategy. 15% to 20% of its output is not metered, and hence no income is generated. This indicates that 30% to 40% of NEPA output is unprofitable. The predicted loss, according to international standards, is between 5 and 10 percent. Due to poor operating methods and insufficient management tools and abilities, it is general knowledge that unethical actions are prevalent across the system. (1995, World Bank).

 

Managerial effectiveness depends heavily on collaborating with and utilizing individuals to achieve organizational goals. When management has an unrealistic and limited perspective that labor is largely a machine accessory to be purchased on the cheapest market, its organization will be inefficient, human resources will be wasted, and workers will view the company as an undesirable place to work. This results in industrial strikes and places the organization at a significant disadvantage in its efforts to recruit and retain workers of the required caliber. Human resources are an organization’s most valuable asset, and any attempt to marginalize them for development purposes will spell death for the organization.

 

A human-oriented management understands that individuals join an organization for a variety of economic and psychological reasons. Therefore, such management builds and maintains an organization in which employees’ wants and needs are met while also contributing to the business’s general interests and goals. In addition to his own demands, he requires the organization’s aims.

 

In light of this, one might define motivation as the forces that enable an employee to have the higher morale and psychological stability necessary for greater production. Because all of these benefits have (positive or negative) ramifications on organizational output, the study focuses on NEPA in order to establish the extent to which the organization values the overarching benefits outlined from employee motivation.

 

In addition to political instability, the state of the electricity industry in the West African subregion is a key hindrance to the region’s economic growth and development. Typical West African nations such as Nigeria, Benin, Gambia, Mali, and Togo consume less than 150 Kilowatt-hours of electricity per capita.

 

Comparing the energy consumption of various African nations to that of industrialized nations.

 

Countries

 

KWH of Energy Consumption

 

Ghana

 

420

 

Nigeria

 

85

 

Cote D’ Ivoire

 

180

 

Industrialised Countries

 

1900-6000

 

Reference: NEPA (1991)

 

Compared to the average of 1900 kilowatt-hours and 6,000 kilowatt-hours for industrial nations, this is notably low.

 

Due to the ownership and control structure of the institution that produces and distributes power in this region, the West African Power industry is developing at a snail’s pace. Generally, the sub-power region’s industry is under state control, with utility boards or agencies having monopoly over generation, transmission, and distribution.

 

Due to this level of control and monopolistic status, the operational environment is not conducive to competition or international investment. The result is not only a reduction in the power industry, but also in industrial development.

 

Particularly, a country like Nigeria, whose primary source of foreign exchange is crude oil exploration and exportation and which remains the largest oil producer in Africa with approximately 1.88 million barrels per day, and whose estimated 124 trillion cubic feet (tcf) of proven gas reserves and enormous Hydro power reserves, has a great potential for becoming an industrial giant and the main exporter of electricity to the West African sub-region. However, due to years of inefficient government planning, regulation, and management of the power industry, these crucial economic levers have not received the necessary attention.

 

MOTIVATION

 

Historically, motivation has evolved in three distinct ways:

 

1. Traditional Model

 

This paradigm is based on the premise that people only go to work for financial reasons. In order to elicit the best performance from employees, it is the responsibility of management to precisely define each position and devise a system of compensation and discipline.

 

2. Human Relations Framework

 

This is predicated on the premise that people go to work to interact with others. Therefore, it is the responsibility of management to create so that employees achieve an optimal amount of social connection. This is anticipated to promote social peace and, by extension, optimal worker performance.

 

3. Model of Human Resources or Behavior

 

Based on the premise that individuals come to work to fulfill higher-level needs such as responsibility, achievement, and work content, this school of thought holds that a manager who focuses on job enrichment and expansion creates an environment conducive to exceptional performance.

 

In light of the foregoing, motivation might be defined as the process of inspiring others to take action in order to attain desired goals or complete assigned tasks. A person is capable of achieving a goal or objective, everything else being equal. Motivation may also be viewed as the managers play in achieving organizational objectives. It is one of the management’s most mysterious elements. It refers to the manner in which individuals’ drives, desires, needs, and aspirations, which are essentially tension symptoms, are controlled and channeled into smooth, productive, and cooperative behavior to achieve organizational goals. All human behavior is driven by a desire to satisfy bodily, emotional, socially conditioned, or wants. In the terminology of theoretical and experi psychology, a stimulus works on an organism to elicit a behavioral response. Using the concept of homeostasis, this indicates that when a need is felt or perceived, the individual creates tension, which leads to activities designed to decrease the tension.

 

Motives inspire the desire to act, which leads to behavior. Motivation often refers to the variables that impact an individual’s behavior. It is viewed as the action process.

 

In the past few decades, the hunt for new methods of motivating individuals at work has prompted some researchers to focus more on psychological elements that drive workers than on the development of financial incentive programs. It is well recognized that people have certain wants that must be met. People react in numerous ways when their satisfaction is frustrated or impeded in one way or another, depending on the circumstances.

 

If you want to drive individuals to be more productive, you must determine what their ambitions and aspirations are, why they seek employment, and what they genuinely expect from their work environment. The basic physiological demands of humans must be met; else, employees will not be motivated to improve productivity. It is essential not to neglect the fact that certain aspects of a profession offer individuals the opportunity to fulfill their higher-level demands, which are known as motivators. Individuals and groups differ in terms of the specific job element that they find rewarding or inspiring, but in general they refer to the job’s content. Therefore, for motivation to be effective, workers must be given the opportunity to be pleased and eagerly perform exciting work.

 

It is not in the organization’s best interest for management to hold the erroneous view that labor is primarily an adjunct to the machine and that the employee-employer relationship is purely contractual, implying the right to command and the right to obey because the workers are there to fulfill the organization’s economic needs. This type of attitude is demotivating and very dysfunctional, and it will alienate the employees, which will have a significant impact on their productivity. Productivity is a measurement of the fruitfulness of human labor under various conditions; it is also a measurement of the efficiency of resources as a whole, which includes personnel employees. To create effective motivation for increased productivity, the needs of the organization and the needs of the person must be well balanced.

 

1.2 DESCRIPTION OF THE PROBLEM

 

In recent years, the Nigerian economy has experienced a continuous and significant decline in productivity in nearly all sectors, including the energy sector. The industrial sector has likely been hardest harmed by this stubborn, undesirable trend. As a result, the researcher has decided to determine whether the problem was caused by a lack of motivation and, if so, what measures could be taken to assure efficiency and boost production. By doing so, an effort will be made to uncover the motivational strategy now applied by NEPA’s administration. The workers’ responses to these approaches and whether or not they were understood as anticipated.

 

PRIVATIZATION

 

Privatization is related with the sale of government-held public sector assets to private investors. It is separate from commercialization, which could imply that the government retains ownership and control while ensuring that the utility is run efficiently and profitably on a commercial basis.

 

HOW DID PUBLIC SECTOR INVESTMENTS BME SO HUGE?

 

According to a 1991 study by the now-defunct TCPC, Nigeria has around 1,500 public enterprises, 600 of which are held by the federal government and the remainder by the states and local governments.

 

According to estimates from the Vision 2010 Committee, federal government investments in public enterprises exceeded $100 billion in 1996. According to credible government sources, Public Enterprises yearly use approximately N200 billion in grants, subsidies, import duty waivers, tax exemptions, etc.

 

DEVELOPING (RIA)

 

In addition, as was the case in other emerging nations, a robust public sector was regarded as a vital engine for Nigeria’s economic development. Furthermore, in the African context and in relation to the post-colonial era, state control of enterprises through nationalization was a politically expedient means of achieving a degree of macroeconomic independence and safeguarding their economy from continuing to be completely controlled by foreigners.

 

Among other things, successive Nigerian governments invested enormous sums of money on the economy.

 

Correct market failure across the infrastructure and utilities industries

 

Take command of the “commanding heights” of the economy

 

Supplement what was thought to be a weak private sector

 

Supplement the capital requirement, which was deemed insufficient.

 

THE NEED TO PRIVATIZE

 

The Conservative government of Margaret Thatcher promoted the concept of privatization. In addition, information technology has transformed the world into a global village with ensuing fierce rivalry, making it vital for businesses to be efficient or perish.

 

IN RIA

 

As a result of the global oil market’s collapse in the 1980s, the level of public sector expenditures became incompatible with available resources. Under the conditions, the only solution was to reduce public spending in numerous ways. Therefore, while the conditions that led to the government’s extensive involvement in entrepreneurial duties were reasonable, the exigencies of the changing circumstances demanded a rethinking of that in the direction of better selectivity and efficiency in such operations.

 

As a result of the fact that the majority of public firms constituted an unreasonably large drain on government resources, privatization was viewed as one of the strategies to reduce public expenditure. They had grown too huge and unwieldy, were extremely politicized, often operated at a loss, and relied heavily on government subventions and subsidies as a result. It was widely believed that the government fostered a culture of widespread fiscal irresponsibility in state enterprises. Since public firms obtained their capital either directly from government budgetary allocations or from the capital market under government guarantee, it was argued that they were immune to bankruptcy and were not subject to takeovers. This resulted in a lack of discipline and the incapacity of public enterprises to repay the money invested in them, as the government that created them was in desperate need of funds.

 

In comparing the performance of public and private firms, it is generally accepted that public enterprises in both developed and developing countries have underperformed. It has been stated that excessive political meddling and bureaucratic incompetence are primarily responsible for the inefficiencies of the public sector. Privatization has thus become an essential component of the liberation process. In response to global competitive pressure and the fierce drive for scarce local and internal wealth, liberation has become essential.

 

In addition, international donors and creditors anticipate that the country’s meager resources will be used to combat poverty by expenditures in health, education, and rural development — social programs that will benefit the thronging populace.

 

Privatization was therefore viewed as a corrective measure:

 

Exploitation of monopolistic power

 

Deficient capital structures result in a high reliance on the Treasury for finance.

 

Bottlenecks in the administration

 

· Mismanagement

 

The existence of corruption

 

· Nepotism

 

· Fiscal deficits imbalance

 

Underdevelopment of the private sector and capital market

 

Economic growth that is inefficient

 

1.3 OBJECTIVE OF THE STUDY

 

This study’s objective is to investigate the core causes of unfavorable worker attitudes, particularly in connection to motivation. The workers’ responses to motivation and motivational strategies adopted by management in order to gain the cooperation and support of the workforce. The study also wants to investigate the punitive or respect system, or both, and their application, as the researcher believes that the problem with a given technique often depends heavily on its applicability.

 

For this reason, the following are some of the objectives of this study:

 

1. To demonstrate the motivating elements deployed by the management of NEPA with the goal of inspiring overt actions to increase worker productivity.

 

2. Investigate and determine the probable management issues with motivation in NEPA.

 

3. Demonstrate the effects that worker motivation has on their productivity.

 

4. Provide remedies for recognized management shortcomings in motivation management.

 

5. Finally, document the findings for future researchers who may be interested.

 

1.4 RESEARCH QUESTION

 

1. To what extent do you believe employee motivation influences their work output?

 

2. Does bureaucratic procedure impede a company’s ability to develop and implement successful employee motivation strategies?

 

3. How do you believe an employee should be motivated?

 

4. How can a relationship be established?

 

5. How do you build rapport with your supervisor?

 

6. How will your remuneration be proportional to the value of the services you provide to your employer?

 

7. How will your remuneration reflect the value of your contributions to the organization?

 

1.5 HYPOTHESIS FORMULATION

 

The NEPA case study of the effect of motivation on organizational productivity will test the following hypothesis:

 

(1) Ho Promotion as a means of motivating employees at NEPA is not based on education, qualifications, or effort.

 

Hi Promotion as a means of encouraging employees at NEPA is contingent on educational attainment and hard work.

 

(2) False The worker-boss relationship has no effect on the organization’s overall productivity.

 

The interaction between employees and supervisors influences the overall productivity of the organization.

 

(3) False. Bureaucratic procedures do not impede a company’s ability to develop and implement effective employee incentive strategies.

 

A company’s inability to develop and implement effective employee incentive strategies is a result of its bureaucratic procedures.

 

1.6 Importance of the Research

 

This study is anticipated to have a significant impact on NEPA’s management decision-making, as well as that of other leading researchers and, by extension, the entire nation. The study will be valuable in the following specific ways:

 

i. It will cause NEPA’s management to see the significance of motivation in huge organizations of this type.

 

ii. It will assist managers in NEPA employment to understand the sources of how productivity relates to motivation levels.

 

iii. This will instill in workers the essence of work dignity and boost their morale, allowing them to comprehend the concept of service.

 

iv. When properly addressed, the result will contribute to the improvement of efficiency and, consequently, productivity at NEPA.

 

v. It will be a tremendous resource for future academics who wish to investigate and comprehend other concepts of motivation, particularly in service organizations like NEPA PHCN.

 

1.7 SCOPE AND RESTRICTIONS OF THE STUDY

 

For the sake of clarity, the objective of this research paper is a comparative evaluation of the experiences of employees in similar or related organizations. This study attempts to cover NEPA’s actions.

 

To suggest that a study of this sort encountered no obstacles would be academically dishonest. As a result, budget limits, time constraints, and other factors posed tremendous obstacles to the completion of this project.

 

The lack of relevant textbooks and the excessive cost of those that are accessible, as a result of the country’s current economic predicament, also serve to impede this research.

 

The research aims to ensure that the consequences of these limiting variables on the development of this work are minimized to the greatest extent possible.

MOTIVATION’S ON ORGANIZATIONAL IVITY

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