STAFF MOTIVATION AND ITS IMPACT ON ORGANIZATIONAL PRODUCTIVITY

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STAFF MOTIVATION AND ITS IMPACT ON ORGANIZATIONAL PRODUCTIVITY

CHAPTER ONE

1.0 INTRODUCTION

Motivation is the inner state that causes an individual to behave in a way that ensures the accomplishment of some goal. Or it can be defined as the state that directs the individuals towards the goal of satisfying felted need. The individual is moved to take action to reduce a state of tension and return to a condition of equilibrium.

Motivation of staff and its impact on the organization productivity is the subject matter of this projects with a cases study of Kaduna refinery and petrochemical company (KRPC).

Since productivity is a result of employees behaviour, influencing this behaviour is a manager’s key to increasing productivity.

In the new generation organization like (KRPC) high level of productivity and efficiency is their watchword in a competitive environment. It is a well known fact, that no organization can succeed without hardworking and committed employees. That’s why employer’s tend to put more effort in motivating employees through motivation factors in order to get work done in the right manner, in order to achieve higher productivity and when this is done, the organization will definitely attain its desired objectives and goals.

But some managers knowing the significance and important of motivation, do deliberately refuse to motivate their subordinate.

Top management must take into account of individual behaviour when planning organizational structure and procedure, and applying management styles and theories to meet career development of employees, staff development programmes becomes imperative as motivational factors.

This is very sensitive issue, because the degree of productivity of any organization depends to a large extent on how the morale of the employees are boosted through motivational factors which will in turn lead to employees higher productivity.

Motivation is one of the simplest, yet most complex management jobs, it seems simple because people tend to be basically motivated to behave in away that they feel leads to reward, therefore one of the determinant of behaviours is motivation.

1.1 BACKGROUND OF THE STUDY

REFINERY AND PETROCHEMICAL COMPANY KADUNA

The decision to establish Kaduna Refinery and Petrochemical company (KRPC) was taken in 1974 along with that of Warri refinery. However, it was decided that work would commence on the construction of refinery whenever the projection of consumption of petrochemical product justified it.

By early 1975, in view of the fuel shortage experienced,, the federal government decided that work on the third refinery should be advanced. It was envisaged that the refinery was to be a simple hydro skimming type refinery in order to meet up with the fuel demand.

Based on the feasibility studies carried out which took into consideration the consumption of various petroleum products within the northern zone, and adequate means of disposal for surplus product. A cru0de oil capacity of (42,000) forty two thousand barrel per stream day (BPSD) could be early justified.

It was much later that the federal government decided that the capacity for any refinery in Nigeria should not be below 100,000 (BPSD) .

However, this would have led to the production of large quantity of heavy ends and on one practical and viable solution is reprocessing the heavy fuel oils. In order to do this the whole project plan had to be modified so that what initially was planned to be a simple hydro skimming type refinery developed into integrated refinery. The refinery would now be able to produce a wider variety of petroleum Oleum products, some of which should be lubricating base oil. Hence it becomes necessary to import suitable paraffin base crude oil from Venezuela, Kuwait or Saudi Arabia.

Product from the refinery are to include fuels using such as liquidified petroleum Gas (LPG) petroleum motor spirit (PMS) automotive Gas oil (AGO) dual purpose keri (DPK) and supluric and those from the lubricating oil complex are basic oils Asphalt and waxes.

The lubricating oils complex, Kaduna Refinery is the first to its kind in West Africa and one of the largest in Africa. The consulting from king Wilkinson of Hague Holland, in conjunction with NNPC engineers developed the plan for the refinery. The contract for contribution was awarded to CHUODA CHEMICAL ENGINEERING AND CONSTRUCTION company of TOKOHAMA JAPAN IN 1977. The project completed and commissioned in 1980. However the lubes plant and petrochemical plant were commission in 1983 respectively operation and maintenance carried out by Nigeria staff and expatriate personnel as technical back up in 1985. Nigeria staff had virtually taken overall the maintenance and operations.

1.2 STATEMENT OF THE PROBLEM

The project is based on the understanding hat there are many problems as regards to motivation in (KRPC) Kaduna Refinery and Petrochemical company some of this problem hinders which resulted to poor or low productivity, inefficiency, laxity and ineffectiveness.

Motivation is therefore a universal problems that affect employee higher productivity of all cadre in an organization for instance, in a modern organization, employees usually take appointment with the believe that salaries and other fringe benefits would commensurate with the job each is expected to do. And if these benefit do not commensurate with the job, the morale of the employees (most especially the lower level employees which constitute the largest numbers of workforce in the organization) will be low which will lead to low productivity and performance.

Motivation is also seen with the problem or being very expensive to motivate employees in an organization, because the management of the organization have to increase employees pay package providing health facilities, accommodation and other incentives. Therefore, it has been a problem for the organization to motivate their employees for higher productivity.

1.3 OBJECTIVES OF THE STUDY

i. The major objectives of this study is to critically examine the nature and types of motivations given to the staff of Kaduna refinery and petrochemical company (KRPC)

ii. To identify the problem of motivation in the organization.

To identify the means of evaluating the effectiveness of the various motivational programmes and to give useful recommendation to the above problems.
The researcher hopes that this study would be beneficial to the management and staff of Kaduna refinery and petrochemical company (KRPC).
The research work will also enable people to have an idea on the effects they can have on the performance and resultant effect on the productivity of the organization.
To highlight how personnel can be motivated for better productivity

1.2 STATEMENT OF HYPOTHESIS

A hypothesis is a tentative statement linking two or more variable in a correlation to establish a relationship that, further subjection to test will confirm such relationship as either positive or negative. The following are the two hypothesis that are to be tested.

Ho: Motivation of staff does not have any significance impact on the organizational productivity.

Hi: Motivation of staff has significance impact on the organizational productivity.

SIGNIFICANCE OF THE STUDY

The significance of the study of motivation is that it will help to determine how motivational factors stimulate employees to higher productivity and its relevance to both the employees and the organization. So that people will be attracted to join and stay within the organization

The study will also help the modern organization in identifying and solving some employees related problems responsible for the low morale and poor attitude towards work, since motivating have important bearing to employees attitude to work and their morale.

The significance of this study also is that, it will attempt to answer organization question of “what induce employees to action” “how is the employees performance energized and how is it directed” and it will offer the organization some motivational factors which help in stimulating employees to higher productivity and efficiency.

It will further help to assess the role of “motivation” as a tool or a means of enhancing organizational productivity.

1.6 SCOPE OF THE STUDY

The scope of this research focus on the human resource department of Kaduna Refinery and Petrochemical Company (KRPC) Kaduna and to see how motivation of staff will affect organization. Productivity. My choice on Kaduna. Refinery and petrochemical company (KRPC) is because of the vast experience in the field of operation. Looking at the size of the organization, very big and always very busy for any effective research to be conducted. And I believed that they are capable of furnishing me with the required necessary information needed for carrying out this research work.

1.7 LIMITATION OF THE STUDY

In the light of this research, researcher encountered some problem when carrying out the research. Some of these constraints are encountered are as follows:

FINANCIAL FACTOR: We are handicap financially due to recent increment of our tuition fee which make our parent /guardians to strive and see that we are able to register for the new session, so that it could not warrant us to spend the more in order to acquire more information for the compilation of the research work both in the area of study and necessary textbooks needed.
TIME FACTOR: We are actually constrain by time, because time allowed for the project is not adequate enough for us to obtain the required detail information for the research. because time allowed for project coincide with the area of study KRPC busy period likewise our semester test and assignment period also coincide with the time frame.

CONFIDENTIALITY FACTOR: Most importantly, some key information necessary for the project could not be at our reach due to confidentiality of such information to the organization.

1.8 HISTORICAL BACKGROUND OF KRPC

Crude oil extraction began in Nigeria as far back as 1908 when a German company started in the Araromi area of the present Ondo State by 1971 i.e a year after the Nigerian civil war, had become very important in the country’s economy. To strengthen and to establish government control. NNDC was established to a decree in (1971) as an integrated oil company i.e. to explore, produce, transport, process, refine, distribute and market crude petroleum and its refined products.

It is also establish to carryout government policies and to ensure government’s effective participation in the oil industry.

As an integrated oil company, it was also, that year, that Nigeria joined the Organization Of Petroleum Exporting Countries (OPEC). It was not until 1^st April 1977 that a merger between the Nigeria and National Oil Company and the Federal Ministry of Petroleum Resources came into being to form the NNPC by decree 9.

The Nigeria National Corporation (NNPC) was then divided into sector according to its operation namely Refinery Sectors, Petrochemical sector, Oil and Gas sector, Exploration and Exploitation division Petroleum product and marketing sectors.

The third Nigerian National Corporation (NNPC) Refinery in Kaduna along kilometer 16 Kachia road is one of the four refinery in the country, was put into commercial operation at the beginning of the second quarters of 1980 (4^th April 1980) this has taken up the northern region to supply petroleum product in the northern part of the country.

The Kaduna refinery can process two types of crude oil. The Nigeria light crude oil and the imported crude oil which is mainly for the production of lubricating oil, Wax and Asphalt. The refinery also has two processing sectors namely.

The fuel section and lubricating oil wax and asphalt sector.
The domestic section which is responsible for Gases for cooking, drum of motor spirit, kerosene and aviation gas oil.

THE PETROCHEMICAL PLANT

The Nigeria government in the late 1970s to provide the country with an adequate supply of petrochemical products set up a petrochemical company Ltd.

It is logical that oil and gas rich nations would want to convert their national resources to the highest commercial value in order to satisfy the increasing external and domestic demands. The construction of the petroleum plant started in 1984 because Nigeria National Petroleum Corporation (NNPC) planned to integrate it with the existing product of the refineries in Kaduna and Warri.

Petrochemical are those chemical derived from oil and gas. The petrochemical programme is being implemented in three phases.

The phase 1 will draw the most of its feed stock, from the refinery at Kaduna Linear Alkalyn Benezene (LAB) will be used to produce industrial consumer goods such as Plastic, Synthetic fibres, Detergent, Rubber solvent and perfumes. They are also the many ingredient of may other products such as Fertilizers and Adhensives. The selection of Kaduna for the 30,000 mt. linear Alkalyn Benzene (LAB) complex was based on the Kerosene product by the refinery using Universal Oil produced (VOP) licensed processes.

Alkalyn of Benzene is the most important process in the production detergent in the petrochemical industry. Linear Alkalyn Benzene (LAB) is the main feed stock in the

manufacture of biodegradation detergent in both liquid and powder form. By-product from the LAB process also have a wide range of their application. There are four major processing unit in the production of (LAB) these are:

Kerosene Hydrodesulphurization (HDS) unit
Molex unit
Pocol unit
detergent alkylate unit

Benzene is produced in the thermal hydro-de Alkalation units in Kaduna Refinery.

The process involved routing kerosene feed stocks the kerosene hydro-desulphurization (HDS) unit where straight run kerosene is treated to remove the sulphur and nitrogen impurities. This kerosene is then fed into feed to the molex unit where linear paraffins are extracted for dehydrogenation in the procol unit.

The product is then mixed with benzene and hygrofluaric acid in the detergent alkalate unit to produce alkylode.

The merger of the Kaduna Refinery And Petrochemical plant was in line with the Nigeria National Petroleum Corporation (NNPC) re-organization and commercialization exercise as directed by the federal government.

In his speech, then Head of state president Ibrahim Badamosi Babangida during the official commission of the corporation linear Alkalyn Benzene petrochemical plant in Kaduna in the 21^st March, rewarded “Recent development in the oil industry have called for a reorganization of the NNPC in order to meet with the challenges of the future” this re-organization said the petrochemical company Limited a subsidiary of the NNPC.

1.9 DEFINITION OF TERMS.

The key terms used for this research work would be defined for easy understanding.

a. MOTIVATION: The word motivation was derive from the latin term “movere” which means to move. Today of course the term means to lot more than this. There are various definitions which some can be seen below:

1. Joccious M.J (1979) defined motivation as the desired course of action. He gave a diagrammatic illustration of motivation as follows:

R (Reponses)

S(Stimulus)

CAUSES

His view is such that, stimulus like wages or better job opportunity yield such responses as higher in an organization 2000.

Chruden (2008) define motivation as a state of being introduced to do something. He asserted that productivity motivation involves fundamental needs, wishes and similar forces that energizes activities direct or channel behaviour towards goals. Motivation is then the urge or drive to take action and achieve wants.

STIMULUS: Stimulus is something which makes in part of the body move action.
EFFICIENCY: out-put divided by input, or the extent to which the result produced was produces at least cost.
PRODUCTIVITY: productivity refers to efficiency with which work is done and amount of work done at a certain time.
OBJECTIVES: it can be define as the set target of the organization to be accomplish.
ORGANIZATION: Organization comes into being when there are people and are able to communicate with each other who are willing to contribute actions to accomplish a common purpose.
JOB: a set of task or responsibility grouped under together a particular tittle.
EFFECTIVENESS: This refers to the extent to which the desired result is realized.
INCENTIVES: payment made to employees or benefit enjoyed over and above their basic pay to encourage them to put in their best in order in increase productivity.
BENEFITS: Items such as pension, medical allowance, housings allowance, official vehicle etc.