IMPLICATIONS OF LOW PRODUCTIVITY ON THE PERFORMANCE OF SELECTED PRIVATE ORGANIZATIONS IN ENUGU METROPOLIS ABSTRACT This research work, examined The Implications of Low Productivity on the Performance of Selected Private Organization in Enugu Metropolis. The objectives of the study were to: examine the nature of relationship between low productivity and organizational effectiveness, determine the extent to which low productivity will affect organization profitability and ascertain the extent to which low productivity will affect organization’s competitive position. The research method adopted, was the survey research method. The sources of data used were the primary and secondary sources of data. The population of the study was 706 while the sample size of 255 was determined using the Taro Yamane’s formular. The major instrument of data collection was the questionnaire. The data collected were presented in tables using frequencies and percentages and analysed using inferential statistics. The hypotheses were tested using the chi-square distribution formular. The findings showed that there is a significant relationship between low productivity and organization effectiveness, It was found out that low productivity has significantly affected profitability and organization’s competitive position. The research concluded that low productivity has negative implications on the performance of selected private organizations in Nigeria. The research is recommending that the management of private organizations should always try to motivate their workers for improved productivity, management should only demand for realistic target from employees and Management of private organizations should try to reach out to employees. This can be extended beyond the workplace. TABLE OF CONTENTS CHAPTER ONE INTRODUCTION 1.1 Background of the study 1.2 Statement of the Problem 1.3 Objectives of the Study 1.4 Research Questions 1.5 Hypothesis of the Study 1.6 Significance of the Study 1.7 Scope of the Study 1.8 Limitations of the Study 1.9 Operational Definition of Terms References CHAPTER TWO REVIEW OF RELATED LITERATURE 2.1 Concept of Productivity 2.1.2 Classification of Productivity 2.1.3 Factors that cause low Productivity in Private Organization 2.1.4 Solutions to Low Productivity of Private Organizations In Nigeria 2.2 Theoretical Framework of the Study 2.2.1 Scientific Management Theory by Frederick Taylor 2.2.2 Henri Fayol (Administrative Theory) 2.3 Review According To Objectives 2.3.2 Concept of Organizational Profitability 2.3.3 Concept of Organizational Competitive Position 2.4 Empirical Review 2.5 Historical Background of Alo Aluminum 2.5.1 Innoson Technical And Industrial Company Limited 2.5.2 Efforts of Government in Assisting the Private Organizations in Nigeria. 2.6 Summary of Literature Review References CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 3.1 Research Design 3.2 Area of the Study 3.3 Sources of Data 3.3.1 Primary Source of Data 3.3.2 Secondary Source of Data 3.4 Population of the Study 3.5 Determination of Sample Size 3.6 Sampling Procedure 3.7 Sample Size Distribution 3.8 Method of Data Collection/Instrumentation 3.9 Validity of the instrument 3.10 Reliability of the Instrument 3.11 Techniques of Data Analysis References CHAPTER FOUR DATA PRESENTATION, ANALYSIS AND INTERPRETATION 4.1 Data presentation and analysis 4.2 Testing of Hypothesis 4.3 Discussion of findings CHAPTER FIVE SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 5.1 Summary of Findings 5.2 Conclusion 5.3 Recommendations 5.4 Contribution to knowledge 5.5 Suggestion for further research Bibliography Appendix Questionnaire CHAPTER ONE INTRODUCTION 1.1 Background of the Study Productivity is an average measure of the efficiency of production it can be expressed as the ratio of output to inputs used in the production process i.e out per unit of input when all output and inputs are include in the productivity measure it is called total productivity. Outputs and inputs are defined in the total productivity measure as their economic values. Productivity is a crucial factor in production performance of firms and nations. Increasing national productivity can raise living standards because more real income improves peoples ability to purchase good and services, enjoy leisure, improve housing and education and contribution to social and environmental programs. Productivity growth also helps businesses to be more profitable, and some private organization in Nigeria have collapsed as a result of low productivity (Apam, 2007:3). This has consequently given rise to downsizing, non or delayed payment of workers, salaries and retrenchment. The Nigerian private organizations have been battling with the harsh economic realities present in the country. Right from the procurement of raw materials and the processing of the raw materials to finished goods, the Nigerian private organizations have not found it easy. According to Oyebamiji (2010:89), the Nigeria private organizations, have been recording losses, year in year out and low productivity due to low profitability. This low productivity could be attributed to epileptic power supply, in making the organizations to run on generators, coupled with various taxes from government, which have not been encourage to (2009:63), the Nigeria private organizations hardly compete favourably with their counter parts abroad as a result of low productivity. Obadan (2012:17), stated that productivity is the ability of organization to utilize its available resources in order to produce profitable goods or services as desired by customers or clients. It is productivity that measures the performance of an organization and it can also be used in companies themselves in order to assess their own progress. Kareem (2008:78) states that productivity increases the over all efficiency of an organization. When the efficiency of the organization increases, the production capacity of the company is utilized to the optimum level. Thus all resources are used in an effective and efficient manner to get the best possible results. As it often indicated in business, the more products you make the lower your over head, and the higher your profits. Enhanced production lowers the cost per unit of a product, which in turn results in lower prices for better quality, which enhances a business competitiveness in the market. In the current turbulent world every organization faces stiff competition from their counter parts. Hence, lower prices as a result of enhanced production give an edge to private organizations to sell products at more competitive, the business is in a better position to attract more customers and make more sales. This is the primary motive of any business organization the end result. Whereas productivity reflects the increased efficiency as well as effectiveness of business policies and processes moreover, it enables a private organization to find out its strengths and weakness. It also lets the business easily identify threats as well as opportunities that prevail in the market as a result of competition and changes in business environment. A private organization can increase its own business productivity by making suitable changes in its business process and policies in order to improve the weaknesses on the capitalize, and also strengthen for the organization (Weitrich and Koontz, 2004:28). In the works of Akinwumi (2001:17), the importance of productivity can never be ignored by a private organization, but the Nigerian private organizations seem to under estimate the importance of having high productivity. It is based on his anomaly that the research has decided to examine the implications of low productivity on the performance of selected private organizations in Enugu metropolis with Alo Aluminum and Innoson Technical and Industrial company Limited as a case study. 1.2 Statement of the Problem The consequences of not solving the problem of low productivity are devastating. The organization may find it difficult to pay their workers salaries, as a result of low productivity. The organization is equally likely to record low profit. Another consequence is that the organization will not be able to compete favourably with other organizations. Any organization with low productivity is likely to have high prices for its goods as a result of inefficiency in its production system. The demand for such organizations product may not be encouraging. The organizations output is likely to be low and eventually many workers will lose their jobs. The situation could even lead to retrench of workers thereby increasing in employment. 1.3 Objectives of the Study The broad objectives of the study is to examine the implications of low productivity on the performance of selected private organization in Enugu metropolis, however, the specific objectives includes • To examine the nature of relationship between low productivity and organizational effectiveness. • To determine the extent to which low productivity will affect organization profitability. • To ascertain the extent to which low productivity will affect organizations competitive position. 1.4 Research Questions Based on the above objectives of the study the following research questions were raised 1. What is the nature of relationship between low productivity and organizational effectiveness? 2. To what extent has low productivity affected organization’s profitability? 3. To what extent has low productivity will affect organizations competitive position? 1.5 Research Hypotheses Based on the above research questions, the following hypotheses were formulated Hypothesis One Ho: There are no significant relationship between low productivity and organizational effectiveness. H1: There are a significant relationship between low productivity and organizational effectiveness. Hypothesis Two Ho¬: Low productivity significantly not affected organizations competitive position. H1¬: Low productivity significantly affected organizations competitive position. Hypothesis Three Ho: Low productivity has significantly not affected organizations competitive position. H1: Low productivity has significantly affected organizations competitive position. 1.6 Significance of the Study The research work is very important because it examines the effect of low productivity on the effectiveness of private organizations in Nigeria. The various stakeholders, like government and managers of private organizations will benefit from this study because this study discussed those factors that cause low productivity in private organizations in Nigeria and gave solutions on how productivity of private organizations could be enhanced, thereby creating employment in Nigeria. The researcher will benefit from this study because this study is a pre-requisite for graduation. The university will benefit from this study because this study increases their data bank. Finally, the study serves as a springboard for further research of what benefit will it be to the general public. The general public will benefit from the study because they will be enlightened on why some organizations are more productive than others. 1.7 Scope of the Study The study covered the effect of low productivity on the effectiveness of private organizations in Nigeria. The study covered two private organizations. They are Alo Aluminum and Innoson Technical Nigeria Limited in Enugu metropolis. 1.8 Limitations of the Study The researcher encountered some impediments or constraints in the course of carrying out this research work. Among them are time, finance and the uncooperative attitude of the respondents. Time: The researcher, who is equally a working class student, carried out part of this research work using the time for his office work. This almost created a friction between the researcher and his employers. Finance: The researcher spent some money surfing or browsing through the internet and printing out relevant materials related to the study. Uncooperative attitude of the Respondents: The workers of Alo Aluminium Nigeria Plc and Innoson Technical Nigeria Limited were economical with information. They initially thought, that the management sent the researcher to get vital information from them, which might be used to victimize them. But inspite of all these constraints, the researcher still came up with a reliable research work. 1.9 Definition of Terms Productivity: This is a measure of the relationship between the quantity and quality of goods and services produced and the quantity of resources needed to produce them. Productivity = Value Time Effect: Something that is produced by a cause, result of consequence Effectiveness: This is the capability of producing a desired result. Private Organization: This refers to any partnership, corporation, association or agency which is not a public body that is operated for profit. REFERENCES Apam, C. (2007), The elements of Wealth Creation Strategy. The Journal of Management Science. 10(6); 3 Akinwumi, D. (2001), Productivity as a key to Economic Growth International Journal of Management Science. 5(7); 17 Dernbury, F. (2009) productivity and inflation. New Jersey; Addinton Publishers. Kareem, Y. (2008), Productivity in the developing Countries. Universal Journal of Management and Social Science. 1(1);76 Obadan, M. (2012), Productivity and Unemployment. The Journal of Management Science. 3(5); 17 Oyebamiji, K. (2010), The Dimensions of Productivity in Nigeria. Ibadan: University Press. Weihrich, H. and Koontz, H. (2004), Management International Student Edition. Tokyo, McGraw Hill Book Company.
IMPLICATIONS OF LOW PRODUCTIVITY ON THE PERFORMANCE OF SELECTED PRIVATE ORGANIZATIONS IN ENUGU METROPOLIS
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