CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
The public enterprise is a heterogeneous collection of people from
all rank of life engaged in all manners of occupation.
According to Hansen (2004) public enterprise denotes state
ownership and operation of industrial, agricultural, financial and commercial
undertaking.
They have been paid from monies provided by the shareholders. The
public enterprises include various companies and organization where vigorous
economic policies of the government are adhered to and vigorous implementation
of the government economic policies are pursued and at times strictly applied.
On the other hand, various experts, professional bureaucrats, and judicial
intellectuals operate the numerous facts of the public enterprises.
Malaya (2003) also opines that public enterprises are autonomous or
semi-autonomous corporation and companies established owned and controlled by
the state and engaged in industrial and commercial undertaking. It’s importance
of organize public enterprises in the economy of any developing country because
they serve to compliment the service and roles offered by the civil service.
United Nation (2001) views public enterprises as an incorporated enterprise
in which public authorities hold a majority of the shares and/or can exercise
control over management decisions. The public enterprise is to compliment that
of the people of the country. The highly organized public enterprises work is
segmented and centrally operated at the head office, that services and product
reach the people in all nooks and corners of the country. Now having looked at
the public enterprise, how much reward system or motivation and job
satisfaction do these workers need or get towards executing their duties
efficiently and effectively for higher productivity.
Singhry (2006) view reward system as a programme set up by a
company to reward performance and motivate employees on individual and/or group
level towards increasing job performance, reward system or motivation and job
satisfaction do these employees need get towards executing their duties
efficiently and effectively for higher productivity.
In other words, what are the basic needs of the worker and how are
they satisfied with their job?
To most people, what comes upper most in their minds when asking
for a job is the salary attached to it.
But then is salary all that it takes to be satisfied with a job?
In Nigeria today, lack of proper managerial knowledge, motivation
and economic depression have made most workers subject themselves to deplorable
working conditions which are the catalyst of low productivity. The major assumption can be satisfied to a
high level of productivity if their immediate needs are satisfied, based on
some innate and or required needs or wages.
Majority of management writers believe that the majority of workers
are satisfied with their job, but unfortunately their working conditions need
to be improve upon. When talking of
productivity, without really improving upon working condition are available and
favourable.
Job satisfaction presupposes going
to work and getting benefits of the work done. In Nigeria, most atimes the pay
given to a worker is not commensurable to the type of work done. But there are instances where by efficient
workers leave the organisation for other jobs that pay more or stay as the
organisation performing below expectations.
Job dissatisfaction is quite prevalent in the public
enterprises. Low productivity which
comes as a result of job dissatisfaction is a conflict between members of the
public enterprises and workers. When
people are dissatisfied a lot of problems set in.
This has been largely blamed on factors like non-professionalism
and limited in-service training avenue for workers under utilization and most
system and general lack of incentives and inadequate motivation. With regards to appointments and promotion
within the organisation, most workers expect fair treatment and reward for work
when performed, since workers are not machines, they often get bored with monotonous
jobs given way to crawling pace of work.
As a way of minimizing monotony it is desirable that the work should
vary to relate whether feasible or otherwise the worker should be given
adequate time for relaxation. Credit
should be given to them on accomplishment to boost their ego and a sense of
pride and feeling of achievement.
Maslow emphasize on the need of employees for security of all types
(physical, psychological and economical) are important for effective
productivity, security can serve as an incentive to some individuals to remain
with the public enterprises and to reach minimal satisfaction level of
performance.
1.2 STATEMENT OF THE PROBLEM
The public enterprise which is the scope of this
study embraces and plays a prominent role in the development of the nation,
economically and politically. In the power holding company of Nigeria where
this study is concentrated, certain factors that bring about job satisfaction
are lacking conspicuously, lack of adequate reward system motivation refers to
the general term applying to the entire class of desires and needs, such as
increase in wages, salaries fringe benefits, promotions, responsibilities,
participation in decision making. All these factors bring about job
dissatisfaction. It can not be over emphasized that negative attitudes emanate
from lack of adequate reward system like:
a.
Constant staff
turnover is of concern to the public enterprise because it disrupts normal
operations, causes morale problem among those who remain and increase the cost
involve in selecting and training, replacement.
b.
Absenteeism-employees
who are inadequately rewarded are more likely to take “mental health days” that
is day off, not due to illness or run around contracting personal business.
c.
Other attitude
like being angry over un-important matters, feelings of persecution, apathy,
forgetfulness and inability to concentrate and make decision.
What aspects of
unsatisfying jobs will caused ill effect on employee mental health?
The following
are some of the frequently cited factors:
1.
Tedious, boring
and repetitive tastes
2.
Poor
relationship with co-workers and supervisors.
3.
Uncertainty
about the job to be done or perform and what level of performance is required.
4.
Too much work to
do and little time available to do it.
5.
Conflicting
expectation from different managers and from department.
6.
Rapid and
continuous changes of jobs.
7.
Frequent work
rules.
High frequency of work to rule creates problems to
employees even if they know the shortest or cheapest way to achieve a given objective,
they will abide by the necessary rules of the organization especially because
they are not happy with their jobs. Other are over cautiousness in their
approaches to problem solving, lack of creativity, scepticism towards new
ideas.
What determines whether employees feed greatly
motivated or inadequately rewarded on their jobs? How do the specific reward
pay promotions and other reward factors combine to produce on overall attitude
of liking or disliking the job? In other words what then is responsible for
employee reward in the power holding company of Nigeria (PHCN).
1.3 OBJECTIVES
OF THE STUDY
1.
To identify
factors that enhance the performance of staff of PHCN
2.
To find the
impact of reward or the performance of staff in PHCN
3.
To identify the
relationship between reward and productivity
4.
To identify
various reward system.
1.4 STATEMENT
OF HYPOTHESIS
In order to carry out the research work, the
following hypothesis were stated;
Ho: Reward system have no significance impact on
employees productivity
Hi: Reward system have significance impact on
employees productivity
1.5 SIGNIFICANCE
OF THE STUDY
The significance of this research study are:
An efficient reward system will enhance staff
productivity. This in turn will contribute immeasurably towards the overall
attainment of the power holding company of Nigeria objectives.
Accordingly, this research work will be of benefit
to the management in the following ways:
It will assist the management of PHCN in updating
its manpower development programmes towards meeting the present day realities.
It will assists the PHCN with useful information and guide in the area of
utilizing its human resources in the best possible ways.
It will further enhance the quality of the products
form PHCN in terms of it’s graduates. This is so, because the quality of
manpower in any given organization determines the quality of it’s output. The
employers of labour will benefit tremendously from the enhanced quality of
graduates that will be available for employment. The staff will have better
opportunities for self development and their confidence enhanced and their
morale boasted.
Fellow researchers wishing to carryout further
research into the field of reward system will find this study very useful. It
will give an insight into areas requiring further investigations.
1.6 SCOPE
OF THE STUDY
The researcher is limited to the impact of reward
system on employees productivity in a public enterprise (sector) PHCN Kaduna
Branch. Due to certain problems that emanated from experiences encountered,
these experience include lack of time, insufficient data, hick in prize,
uncooperative attitudes of workers and difficulties in getting accurate, also
insufficient funding and like in transport fare the study could not cover other
branches of PHCN
However, the research was able to collect data to
carry out this research through use of many textbooks, seminars paper and
journals dealing with reward system and employees productivity.
1.7 LIMITATIONS
OF THE STUDY
`The researchers effort in the course were
constrained by the following factors.
1.
Time factor:
The time given by the project coordinator was not enough to carryout the
research effective.
2.
Secretiveness of
the organization of case study reveal certain information needed especially in
the course of the historical background of the organization.
3.
Financial constraints i.e. this did not enable the
researcher to source for all relevant information from text books for the
purpose of research.
1.8 HISTORICAL
BACKGROUND OF CASE STUDY
The history of electricity in Nigeria dates back to
(1896) when electricity was first produced in Lagos Nigeria subsequently,
services was extended to other centre such that in 1951, when the then
electricity cooperation of Nigeria come into being. A total of 16 cities and
committee have receiving electricity supply.
The works department until 1956 operated the Lagos
city undertaking. And from 1946 to 1951 by Nigeria government electricity
undertaking other undertaking are established and operated during this time by
locally constituted supply authorize. Under the electricity cooperation of
Nigeria ordinance which took effect on April 1st 1951, the newly
constituted electricity cooperation of Nigeria assumed control and management
of the 16 local undertakings then in existence. The first set of electricity
generating stations in Nigeria made use of hydro (water) means of generating
electric power. The first largest major hydro electric station to be build in
Nigeria formed part of the Kanji multi purpose commissioned in 1969 by the
Nigeria dams authority (NDA).
The corporation provided a single supply network for
the greater part of Nigeria. In 1970, the Federal Government Commissioned Firm
of consultants, show mount (Canada) under a financing arrangement by Canadian
International Development Agency (CDA) to study the power supply industry
Analyse its problem, make recommendation on a possible Marger of ( ECN) and (NDA) as well as or improving the
management. In 1971, show mount subticed a report recommending a new amsatrina
structure with a decentralized organizational structure. In this retard, power
holding company of Nigeria was (former NEPA) established by decree No. 24 of 1st
April with the amalgamating of electricity cooperation of Nigeria (ICN) PHCN
was empowered to maintain an efficient coordination and economic system of
electricity supply to all nooks and crannies of nation with that provision the
four basic function of the company cover generation, transmission distribution
and marketing of electricity. PHCN started with only four major power stations
at Ijora, Ughli, Afam and Kanji serving more than two million customers nation
wide, which aid the nation ethnological industrial growth.
Power holding company of Nigeria has become the
fastest growing electricity industry in African indeed developing world with
impending condition like the overusing dis-vandalization of PHCN installation
high cost of maintenance inadequate gas supply low to after level at the hydro
power stations, high lost foreign exchanging and abysmally how tariff PHCN has
always strive to meet its generation transmission distribution an marketing of
stable electricity to its numerous residential, commercial and industrial
customer.
The problem of incessant power failure by which PHCN
performance is always judged is not burned out of technical or managerial
deficiencies. Gather the product of the environment in which PHCN operates,
most power out ranges are traceable to canalization of PHCN installation, illegal
connection and over loading of PHCN equipment resulting into equipment failure.
In spite of the familiar operational short coming,
PHCN has made giant studies in the production and marketing of electricity. In
doing so PHCN’s service are spread through out the length of the nation and
even beyond.
The nations technological social and economic
development is dependent on the amount of electricity that is readily available
for this reason, PHCN’s constantly under the watchful eyes of the public.
1.9 DEFINITION
OF TERMS
REWARD SYSTEM:
Refers to the process of
stimulating people to accomplish desire goals. In order words reward system can
be seen as which a manager or administration can perform in order to get the
subordinate achieve goal or works objectives design for them.
JOB SATISFACTION:
An individual general attitude
about his/her job.
MORALE:
Refers to an
individuals feeling of being accepted by and belong to a group of employees
common goals, confidence in the desirability of these goods and progress toward
these goals.
PROMOTION:
Evaluation of
employee to position involving higher responsibility, job enlargement and job
environment that involve higher salary.
MANAGEMENT: is the process of getting things done through the
use of people in order to achieve goals and objective in an organization.
ABSENTEEISM:
The failure of employees
to respect of for work when they are scheduled to work.
LABOUR TURNOVER:
Refers to the form used to describe
the movement of people into and out of the firm. It is usually convenient to
measure it by recording movement out of the firm on the assumption that the
bearer would be eventually be replaced by a new employee.
JOB SAFETY: refers to approximate measure that are ensured to
make an operation or process accident free on matter the hazards involved.
GROUP SOLIDARITY:
Feeling of belonging to a group or
rather than been alone to work individually.
RECOGNITION:
That is fair treatment
as human being rather than as a robot and credit for his accomplishment. This
goes to boast his ego and give a feeling of pride and sense.
PARTICIPATION:
Having a say in matter
affecting their own dealing the supervisor should endeavour to make them feel
that he cares about their views and suggestions.
FEAR TREATMENT: That is, since human being are not machines, they
often get board with monotonous jobs. As a way of eliminating monotony, it is
desirable that the works would be varied.
WHENEVER FEASIBLE:
People should be given adequate time
for relaxation so that their brain will rest.