Full Project – Motivation and its effects on productivity in business organization

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CHAPTER ONE

1.0  INTRODUCTION

1.1  BACKGROUND OF THE STUDY

Beta Glass Plc Ughelli in Ughelli North Local Government  Area of Delta State Nigeria was incorporated as a Limited Liability Company (then known as Delta Glass Co-Limited) in June 1974 with equity participation by the Nigeria Bottling Company Limited (now Nigeria Bottling Plc) of the Leventis groups.  The then Bendel State Government which later transferred its share to Delta State Government Industrial Development Bank (NDB) and some private Nigeria individuals.

The shareholding has been further broadened to include some employees through the employee equity participation scheme.  Following the enactment of the Company and Allied Matters Decree of 1990, the company changed its name to Delta Glass Plc.

Again in 2001, the company’s name was further changed to Beta Glass Plc.  Beta Glass Plc produces fruits, green and amber colors of hollow glass and glass containers.  The range of products includes lantern globes.  Considering the range of products, its markets include breweries, bottling companies, pharmaceutical and cosmetics manufacturing companies and of course, the general public that make use of the lantern glasses and table wares.

Furthermore, the only way to be in the glass industry is to remain competitive and this only possible through efficient and effective quality control measure.  Beta Glass Plc is too totally and unflinchingly committed to quality as well as every stage in its manufacturing process.  Its subject to standard internationally acclaimed quality control measure for glass production.

About 85% of the raw materials used are sourced locally.  These include silica sand, limestone, gypsum, feldspar, dolomife soda ash (sodium carbonate) sodium sulphate and photassium nitrate.  Some colouring and decolouring agents such as chromate colouring are also imported.  The company’s sources of energy are natural gas and electricity.  Natural gas is supplied cheaply by Shell Deport, a few kilometers away from the factory while electricity is supplied by NEPA which is now Power Holding Company which is just opposite the factory.

Glass technology inputs in terms of machinery and technical expertise is skill fundamental to survival of and development of gas industry.  All the glass machinery are imported although the operation and maintenance are almost being handled by Nigerians who have acquired the expertise and experience over the years.  This has been made possible by the training programme which places much emphasis on the job training strengthened by in plant and external courses organized regularly for staff development.  There has been such tremendous of indigenous skill that maintenance services previously contracted out to foreign are being carried out in house and the number of expatriates has reduced from 18 in 1985 to 4 in 2005.

The staff strength of the company has been growing since its inception on commission in May 1979.  The total Nigerian staff strength was 716 comprises of both senior and junior staff including expatriate until the last  retrenchment in June 2005 which reduce the members of staff with over 340 staff.

Beta Glass Plc has direct departments like the Accounts Department, Technical Departments, Marketing Department, Administrative Department and the Production Department.  The company has board of directors who are the policy makers.  The management of the company is headed by the general manager/director who is the chief executive of the company.  He is assisted by his deputies who are variously responsible for the two main subdivisions namely; administration (non-technical and operations (technical).  Hence they are designated deputy general manager (administration and deputy general manager (operation).

1.2  STATEMENT OF THE PROBLEMS

Beta Glass Plc Ughelli like every firm have a stated target to achieve for them to accomplish these objectives, workers must be employed and frequently motivated.  Despite the availability of human resources management in this organization, observation has shown that there are still certain problems that lingers which could be traced as employee poor performance (inefficiency), which is as a result of none or inadequate motivational packages or bonus incentive existing in the organization.

It is believed that motivation packages or bonus scheme could motivate, sustain employee’s interest and improve their performance.  In the other hand, productivity of workers decline when salaries are not paid.  This is because, when a worker do not receive his salary, he will be always be carried away by these problems especially at work.  This makes him to think more of these problems at work and neglect his duties.  This declines his productivity.

Also frequent demand of increase in salaries by workers can affect workers and organization’s productivity.  In the side of organization, when workers frequently demands in increase in salary, the organization may not be able to cope because of its level of income and this will affect motivation of the workers.  The workers may go on strike or be reluctant to their duties thereby reducing productivity in the organization.  In the side of the workers, if frequent demand of salaries by workers is met by the organization, the workers will put in their best.

These problems mentioned have been hindering organizational productivity in most organization and need to be addressed.  Therefore, the researcher in this study attempts to investigate these problems and make correlation between motivation and productivity in the organization especially Beta Glass Plc Ughelli.

1.3  OBJECTIVES OF THE STUDY

The main purpose for carrying out this research work is to investigate motivation and its effect on the productivity of business organization with special reference to Beta Glass Plc Ughelli.  Also other objectives include:

1. To determine the relationship between workers salary and productivity.
2. To find out the various motivational packages that exists in this organization of study.
3. To know what specific motivational package has more impact on the productivity of the employees.
4. To know if all the reward systems are capable of enhancing efficiency, job satisfaction and increase output in the organization.
5. To look at various problems that hinder motivation and organizations productivity.
6. To find solutions to motivational problems in the organization.

1.4  RESEARCH QUESTIONS

In the course of carrying out this research work, the researcher stated the following research questions relevant to this work.  They are:

1. What is the relationship between workers, salary and productivity?
2. What are the natures of motivational scheme in Beta Glass Plc?
3. In what ways can staff be rewarded for hard work to enhance the productivity of the organization?
4. What type of motivational programmes is best increased productivity?
5. Does motivation contribute to increase in productivity in Beta Glass Plc?
6. How does the motivation of these workers affect their job performance?
7. What are the various method of motivation applied to motivate employees in this organization?

1.5  SIGNIFICANCE

Regardless of the organization whether private or public, motivation of employees is very important.  When employees are motivated, it enables them to put in their best at work to the accomplishment of the organizational objectives.  It brings about smooth running of affairs with the organization so that less attention is paid to problems.

Moreover, when the employees are motivated, they maintained high standard in their performance and thus present a good image of the organization at all time.  It brings about increase productivity, which in turn increases the profit of the organization thereby ensuring stability of the organization.

The significance of this study therefore lies its potentiality in serving as a reference tool for both individual organization and government agencies, which desire to eliminate all obstacles associated with motivational techniques, planning and implementation.  The research also hopes to bring like light success or failure of Beta Glass Plc motivational programmes.

1.6  SCOPE OF THE STUDY

This research work is concerned with the evaluating of impact of motivation on productivity in manufacturing industry or company manufacturing industry is such as vast one that Beta Glass (Nig) Plc was nearly impossible to cover all business organizations in the period available for this research.  Hence Beta Glass (Nig) Plc, which produces all forms of glasses, was taken as a case study.

1.7  LIMITATIONS OF THE STUDY

Time Constraint:  This research will be seriously affected by time constraint.  A study of this nature requires sufficient time in order to allow for extensive and detailed investigation.  Unfortunately, the time available for the study is too short especially when it has to go along side with academic work in the school.

Insufficient Fund:  This research is faced with the problem of fund most especially when it is group i.e. people of different view towards finance.

1.8  DEFINITION OF TERMS

The following terms are operationally defined as used in the study.

• Motivation:  Is referring to as the inner driving forces within an individual by which they attempt to achieve some goals, which are aimed to be fulfilled, some needs and expectations.
• Productivity: This is the output ratio within a time period with consideration for quality.
• Management: The act of running and controlling a business needs.  Something that is required by an individual for his health and well being.
• Behaviour: Refers to the manner of one’s conducts.
• Motives: These are drives, needs, wishes and similar force that channel human behaviour towards goals.
• Goals: The purpose and objective of a particular organization.
• Satisfaction: This is a situation experienced by a worker whose needs are fulfilled as a result of working for a particular corporation.
• Motivators: These are things which induce an individual to perform.
• Employer: A person or company that pays people to work for them.
• Employee: The person who is paid to work for another person.
• Incentives: These are money and other benefits given to the employee for good productivity.
• Effectiveness: Getting the design work done correctly.

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Full Project – Motivation and its effects on productivity in business organization