IMPACT OF MOTIVATION TOWARDS ORGANIZATION PRODUCTIVITY
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IMPACT OF MOTIVATION TOWARDS ORGANIZATION PRODUCTIVITY
Chapter one
INTRODUCTION
1.1 Background of the Study
The National Electric Power Authority was founded by the NEPA Act in 1972. The Act authorised the merging of the Niger Dam Authority and Nigeria’s Electricity Corporation.
The operational object clause, among other things, states: “to build and maintain an efficient, coordinated, and economical system of electrical supply to all areas of the federation or as the Authority may direct, and for this purpose:
· Produce or acquire electricity.
· Supply electricity in bulk for distribution within and outside Nigeria.
· Provide energy to Nigerian consumers as authorised by the authority.
A detailed examination of NEPA performance over the years demonstrates that the Decree’s aforementioned stipulations are not effectively implemented. According to a World Bank report, inefficiencies in Nigeria’s power industry alone resulted in annual losses of more than US$800 million.
Today, investment costing is problematic since it does not account for the cost of self-provision of electricity, whereas the wealthy want to install private electricity generators for domestic usage.
NEPA suffers from high inefficiency and an ineffective investment plan, resulting in transmission losses of 15% to 20% due to insufficient distribution expectancy. Between 15% and 20% of its output is not metered, hence no revenue is made from it.
This indicates that 30% to 40% of NEPA output does not generate money. The predicted loss under international standards is 5% – 10%. Sharp behaviours are widely acknowledged to be prevalent in the system as a result of poor operating practices and insufficient management tools and abilities. (World Bank, 1995).
Managerial success is mostly dependent on working with and through others to achieve organisational goals. When management has the unrealistic and narrow view that labour is primarily an adjunct to the machine and should be purchased at the lowest possible cost, the organisation will be inefficient, human resources will be wasted, and employees will find the organisation unappealing to work for.
This leads to industrial strikes, putting the organisation at a significant disadvantage in its efforts to recruit and retain the appropriate individuals for its operations. Human resources are an organization’s most valuable asset, and any attempt to ignore them in the development process will spell disaster for the organisation.
Human-oriented management recognises that people join organisations for a variety of reasons, both economic and psychological. As a result, such management creates and sustains an organisation in which people may fulfil their wants and requirements while still contributing to the organization’s general interests and goals. While addressing his personal wants, he also requires the organization’s aims.
In light of this, motivation is defined as the urges that allow an individual to have higher morale and psychological stability, both of which are necessary for increased production.
The study thus focuses on NEPA in order to establish the extent to which the firm values the overarching advantages outlined by employee motivation, as all of these benefits have connections (positive or negative) to organisational production.
Aside from political instability, the status of the West African subregion’s electricity industry is a major impediment to improving its economic fortunes and development. West African countries such as Nigeria, Benin, Gambia, Mali, and Togo have per capita power usage of less than 150 kilowatt hours.
Energy use in certain African countries against industrialised nations.
Countries
Energy Consumed in KWH
Ghana
420
Nigeria
85
Cote d’Ivoire
180
Industrialised nations
1900-6000
Source: NEPA (1991).
This is far lower than the average for industrialised nations, which is between 1900 and 6000 kilowatt hours.
The slow pace of development in the West African power sector is attributable to the ownership and control structure of the institution that generates and distributes electricity in the region.
In general, the sub-region’s electrical business is under state control, with utility boards or agencies granted full monopolies for electricity generation, transmission, and distribution.
Because of this level of control and monopoly, the operational environment discourages competition and foreign capital investment. The result is a reduction in both the electricity industry and industrial development.
Specifically, Nigeria, whose primary source of foreign exchange is crude oil exploration and exportation, remains Africa’s largest oil producer with approximately 1.88 million barrels per day, and has an estimated 124 trillion cubic feet (tcf) of proven gas reserves and massive hydropower reserves, has a high potential to become an industrial giant and the primary exporter of electricity to the West African sub-region.
However, due to years of uneconomic planning, regulation, and control of the power industry by the government, these critical economic levers have received little attention.
MOTIVATION
Historically, motivation developed into three major streams:
1. Traditional Model
This approach is based on the idea that people come to work only for money. The objective of management is to clearly define the job and design a remuneration and punishment system in order to get the most out of employees.
2. Human Relationship Model
This is predicated on the premise that people come to work for social reasons. Thus, management’s task is to create the job such that employees have the best possible level of social connection. This is supposed to promote social peace and, as a result, optimal worker performance.
3. Human Resource or Behavioural Model
This is based on the assumption that people come to work to meet higher level needs such as responsibility, achievement, work content, and so on. According to this school of thought, a manager who focuses on job enrichment and enlargement creates an enabling environment for superb performance.
Having stated that, motivation can be defined as the process of encouraging people to take action in order to attain desired goals or complete assigned tasks. A person has the ability to attain a goal or objective, provided that all other factors are equal.
Motivation could alternatively be defined as the function that managers play in achieving organisational goals. It’s one of the most mysterious aspects of managing.
It refers to the way in which emotions, desires, needs, aspirations which are fundamentally tension symptoms occurring within humans are harnessed and channeled into smooth, productive and co-operative behaviour towards the attainment of organizational goals.
All human activity is motivated by the desire to satisfy bodily, emotional, socially conditioned, or psychological needs. In the vocabulary of theoretical and experimental psychologists, a stimulus operates on the organism to cause a behavioural response.
Using the concept of homeostasis, this indicates that when a need is felt or perceived, a tension is formed in the individual, prompting activity aimed at reducing the tension.
Motives inspire the desire to act, which results in behaviour. Motivation refers to the variables that impact people’s actions. It is seen as a process of action.
During the last few decades, the hunt for improved ways to motivate individuals at work has led some researchers to focus more on the psychological elements that drive workers rather than the development of financial incentives due to their importance.
People are understood to have specific wants that must be met. When their satisfaction is frustrated or impeded in one way or another, people react in a variety of ways, depending on the circumstances.
If you want to motivate individuals to be more productive, you must first understand their needs or wants, their objectives and aspirations, why they seek employment, and what they expect from their work environment.
Employees are not encouraged to work harder until their physiological demands are met. Some aspects of a profession allow people to meet their higher-level requirements, known as motivators; this should not be disregarded.
Although people and groups differ to some extent in the specific job element that they find rewarding or inspiring, they generally refer to the job’s content. As a result, if motivation is to be effective, employees must be given the opportunity to be pleased and eagerly perform exciting tasks.
It is not in the organization’s best interests for management to make the unrealistic claim that labour 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 workers are there to meet their economic needs.
This type of mentality is demotivating and dysfunctional, and it will alienate people and, as a result, significantly reduce their productivity. Productivity evaluates the fruitfulness of human work under various conditions;
it is also a measure of the overall efficiency of resources, especially personnel staff, in production. To generate effective motivation for increased production, the corporate needs should be well balanced with the individual needs.
1.2 Statement of the Problem
In recent years, the Nigerian economy has seen a continuous and significant decline in productivity in practically all sections of the economy, including the energy industry. The industrial sector has been impacted the most by this persistent dismal trend of events.
The preliminary investigations conducted by this researcher revealed that NEPA experienced similar problems as the study and that the rapid decrease in productivity was due to a lack or inadequate motivation.
As a result, the researcher decided to determine whether the problem arose due to a lack of motivation and, if so, what could be done to ensure efficiency and increase productivity.
In doing so, an attempt would be made to uncover the current motivational strategy used by NEPA management. The workers’ reactions to these approaches, and whether they were understood as intended.
PRIVATISATION
Privatisation refers to the sale of public-sector assets, typically held by governments, to private investors. It is separate from commercialization, which could mean that the government retains ownership and control while ensuring that the utility is run efficiently, commercially, and profitably.
HOW DID PUBLIC SECTOR INVESTMENTS GET SO BIG?
According to a 1991 assessment by the disbanded 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 the Vision 2010 Committee’s estimates, federal government investments in public enterprises totaled more than $100 billion in 1996.
According to reliable government sources, public enterprises spend around N200 billion in national resources each year in the form of grants, subsidies, import duty waivers, tax exemptions, and other benefits.
DEVELOPING WORLD (NIGERIA).
Furthermore, as in other developing countries, a robust public sector was regarded as an essential driver of economic development in Nigeria. Furthermore, in the African context, and in relation to the postcolonial era, state control of enterprises through nationalisation was a politically expedient process of gaining some degree of macroeconomic independence while also protecting their economies from remaining completely under foreign control.
To put it succinctly, successive Nigerian governments have invested massive sums of money in the economy, among other things:
· Address market failures in infrastructure and utility industries.
· Manage the “commanding heights” economy.
• Supplement a perceived weak private sector.
· Address the lack of available capital.
THE NEED TO PRIVATISE THE WORLD
Margaret Thatcher’s Tory government popularised the concept of privatisation. Furthermore, information technology transformed the world into a global village, resulting in fierce rivalry, making it critical for businesses to be efficient or perish.
In Nigeria
The collapse of the global oil market in the 1980s made public sector expenditures incompatible with available resources. The only option in the circumstances was to reduce public spending in a variety of ways.
While the conditions that led to the government’s widespread involvement in entrepreneurial functions were understandable, the imperatives of changing circumstances necessitated a redefinition of that role in the direction of greater selectivity and efficiency in such activities.
Privatisation was consequently viewed as one of the measures of decreasing public expenditure, given that most public firms imposed an unnecessary strain on government resources.
They had grown too huge and cumbersome, became overly politicised, and were often losing money, necessitating a strong reliance on government subventions and subsidies.
It was widely assumed that the government fostered an environment in which financial indiscipline was endemic in public firms. The position was that because public firms obtained their capital either directly from government budgetary allocations or through the capital market with government guarantees,
they were immune to insolvency and were not subject to takeovers. This resulted in indiscipline and the incapacity of public enterprises to repay the money invested in them, as the government that established them was in desperate need of funds.
When comparing the performance of public and private firms, it is widely acknowledged that public enterprises in both developed and developing countries have underperformed expectations.
It has been stated that excessive political meddling and bureaucratic ineptitude are primarily responsible for the inefficiencies associated with the public sector.
Privatisation has thus become an essential component of the liberation process. Liberation has become necessary in reaction to global competitive pressures and the fierce drive for scarce local and internal capital.
Furthermore, international donors and creditors anticipate that the country’s limited resources will be used to combat poverty by investments in health, education, and rural development–social programmes that will benefit the masses.
Privatisation was thus perceived as a means of correcting:
· Abuse of monopolistic powers.
· Defective capital structures lead to high reliance on the treasury for funding
· Bureaucratic bottlenecks.
· Mismanagement.
• Corruption
· Nepotism.
· Fiscal deficits create an imbalance.
· Underdeveloped capital market and private sector.
· inefficient economic growth.
1.3 PURPOSE OF STUDY
The goal of this study is to look into the underlying causes of workers’ unfavourable attitudes at work, particularly in terms of motivation. Workers’ reactions to motivation and the motivational strategies used by management to elicit collaboration and support from employees.
The study also wants to investigate the punishment or respect system, or both, and their applicability, because the researcher believes that the problem with a given technique is often largely determined by its applicability.
As a result, some of the objectives of this study are as follows:
1. To demonstrate the motivating elements used by NEPA management to incentivize overt behaviours targeted at increasing worker productivity.
2. Investigate and determine what are the most likely management challenges with motivation in NEPA.
3. Show how motivation affects worker productivity.
4. Provide remedies to recognised management inadequacies in the management of motivation.
5. Finally, document the findings in case future researchers are interested.
1.4 RESEARCH QUESTION.
1. To what extent do you believe motivation influences employee output at work?
2. Does a company’s bureaucratic process prohibit it from developing and implementing effective employee incentive strategies?
3. How do you believe employees can be effectively motivated?
4. How do you develop a relationship?
5. How do you build a relationship with your boss?
6. How will your salary relate to the services you provide to the organisation, as determined by you and your boss?
7. How will your salary reflect the services you provide to the organisation?
1.5 Hypothesis formulation.
The study of the impact of motivation on organisational productivity in the case of NEPA Enugu would test the following hypothesis.
(1) Promotion as a means of motivating NEPA employees is not based on educational background, qualifications, or hard work.
Hello, promotion as a means of motivating employees at NEPA is based on educational qualifications and hard work.
(2) Ho: The worker-boss relationship has no effect on the organization’s overall output.
Hello, the worker-boss connection influences the overall productivity of the organisation.
(3) Ho Bureaucratic processes do not impede a corporation from developing and implementing successful employee incentive strategies.
Hi, the bureaucratic procedure prohibits a company from developing and implementing effective employee incentive tactics.
1.6 Significance of the Study
This study is projected to have a significant impact on management decisions in NEPA, as well as other leading researchers, and, as a result, on the nation as a whole. The study will be especially valuable in the following ways:
i. It will make NEPA’s management fully understand the value of motivation in a major organisation of its kind.
ii. It will allow managers who utilise NEPA to uncover the factors of how productivity relates to motivation.
iii. This will instill in workers the value of dignity at work and boost morale, allowing them to understand the concept of service.
iv. When appropriately addressed, the results will contribute to increased efficiency and, as a result, production at NEPA.
v. This will be a valuable resource for future academics interested in understanding motivation in service organisations such as NEPA {PHCN}.
1.7 Scope and Limitations of the Study
To be clear, the focus of this research work is on a comparative examination of experiences in similar or related organisations. The study attempts to cover NEPA’s actions.
To suggest that a research project of this nature has no obstacles would be academically dishonest. As a result, budget limits, time constraints, and other factors caused significant challenges during the duration of this study project.
The scarcity of relevant textbooks, as well as the expensive cost of those that are available, due to the country’s current economic circumstances, further limit this study endeavour.
Overall, the research aims to minimise the effects of these limitations on the development of this work.
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