ABSTRACT
The research study is to discuss Employee participation and Organizational effectiveness using oil producing companies in Rivers state. This study used a universal population consist of all employees of oil producing firms (companies) in Port Harcourt, to which 150 employees from the company were administered questionnaires. The research questions addressed the extent of the relationship between organizational effectiveness and employee participations in the oil producing companies in port Harcourt. The survey research which in line with survey research design is used in executing the study, level of population size (N)=150 is known to be 150 (employees) is sample size for the study. The sample size of n=139 was determined from a population of 150 employees in the oil firm using Yamane Yaro 1964 sample size determination formula at 5% level of significance for sampling error. Data collected were analyzed using simple percentages and the use of chi-square distribution to determine the relationship between Employee participations and organizational effectiveness. Results from the data analysis (χ2tabltd, = 2.132 and (χ2tabltd, = 19.220) at 5% level of significance to indicate that a significant relationship exists between Employee participations and organizational effectiveness of the oil producing firms in port Harcourt: the study therefore, recommends that future researchers and the Management of Oil producing Companies should periodically evaluate the performance of their employees in order to maintain standards, and also the Organizational citizenship behaviors should be improved to boost the effectiveness of the employees in the oil producing firms in port Harcourt.
TABLE OF CONTENTS
ABSTRACT i
CHAPTER 1 1
INTRODUCTION 1
1.1 BACKGROUND OF THE STUDY. 1
1.2 STATEMENT OF THE PROBLEM. 4
1.3 OBJECTIVES OF THE STUDY. 4
1.4 SIGNIFICANCE OF THE STUDY. 5
1.5 RESEARCH QUESTIONS 6
1.6 STATEMENT OF HYPOTHESES. 6
1.7 SCOPE AND LIMITATIONS OF THE STUDY. 7
1.8 DEFINITION OF TERMS. 7
CHAPTER 2 9
REVIEW OF RELATED LITERATURES 9
2.1 CONCEPTUAL FRAMEWORK. 9
2.1.1 Organizational Effectiveness 9
2.1.2 EMPLOYEE PARTICIPATION AND ORGANIZATIONAL EFFECTIVENESS. 11
2.3 THEORETICAL FRAMEWORK 15
2.3 EMPIRICAL FRAME WORK. 20
2.3.1 ASSESSMENT OF ORGANIZATIONAL EFFECTIVENESS 21
2.3.2 FACTORS INFLUENCING EMPLOYEE PARTICIPATION. 24
CHAPTER 3 30
RESEARCH METHODOLOGY 30
3.1 Research Design. 30
3.2 Population Of The Study. 30
3.3 QUESTIONNAIRE DESIGN. 31
3.4 SOURCES AND METHOD OF DATA COLLECTION. 31
3.5 SAMPLE/ SAMPLING TECHNIQUES. 31
3.6 RESEARCH INSTRUMENT AND METHOD OF DATA COLLECTION 32
3.7 RELIABILITY AND VALIDITY. 33
CHAPTER 4 35
DATA PRESENTATION AND ANALYSIS. 35
4.0 INTRODUCTION. 35
4.1 DATA PRESENTATION. 35
4.2 DATA ANALYSIS 36
4.3 TESTING OF HYPOTHESIS. 41
4.3.2 DISTRIBUTION OF RESPONSES FROM THE RESPONDENTS. 42
CHAPTER 5 45
DISCUSSION OF FINDINGS 45
5.1 DISCUSSION OF FINDINGS. 45
CHAPTER 6 47
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS. 47
6.0 SUMMARY OF FINDINGS. 47
6.1 CONCLUSIONS. 47
6.2 RECOMMENDATIONS. 48
REFERENCES 49
APPENDIX A 50
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF THE STUDY.
Achieving organizational effectiveness is the ultimate purpose to be focused by any organization that takes enormous effort to maximize employees’ task efficiency, commitment, and sustain intrinsic motivation to perform well in difficult times. This is why recent efforts to improve organizational performance have begun to inculcate positive organizational concepts like optimism, trust, and engagement (Koyuncu et. al., 2006). As a matter of fact, among optimism, trust, and engagement, leaders and managers across the globe recognize employee engagement as one of the most vital element that affects organizational effectiveness (Welch, 2011).The complexity and competitiveness of today’s business environment requires that companies continuously raise the bar on their effectiveness. Top performance increasingly demands excellence in all areas, including leadership, productivity, and adaptation to change, process improvement, and capability enhancement (knowledge, skills, abilities, and competencies).
According to research, there are some directions to improve organizational effectiveness, via; Process mapping and measurement; Process improvement, Expert facilitation of internal interventions; Productivity improvement; Monitoring and evaluation; Measuring and assessing the climate and culture etc. The continuance of employee engagement goes beyond the traditional notions of job satisfaction, organizational commitment, job involvement etc. Engagement involves
the active use of emotional, cognitive, and behavioral energies at workplace while working in coherence with the organization’s objectives and strategies (Andrew & Sofian, 2011). Also, engaged employees being focused, energetic, and fully engrossed in their jobs are highly motivated to direct their focused energy towards organizational goals (Mace& Schneider, 2008; Barbera, & Young, 2009). Certainly, organizational performance and effectiveness is a function of the collaborative efforts of engaged employees (Bakker, 2011). Engaged employees experience greater attachment to their work and organization (Organ, 1994; Schaufeli & Bakker. 2004) and they are more likely to do things that augment organizational effectiveness (Saks, 2008).
For instance, engaged employees are optimistic and spontaneous, they
tend to exhibit positive attitudes and proactive behaviors at work place (Schaufeli et al., 2002; Salanova & Schaufeli, 2008) including low absenteeism, helpful attitude towards co-workers and adherence to company rules etc., more popularly known as organizational citizenship
behavior (Organ, 1988). Engaged employees bring enduring state of fulfilment at workplace while feeling intrinsically motivated to exhibit positive feelings such as sharing, assisting, cooperating, and supporting, and thus create a holistic framework of the positive psychological, social, and organizational context of work.
In this regard, research studies in organizational sciences have recently begun to report a positive association between employee engagement and OCB (Bakker, Demerouti, & Verbeke, 2004; Christian et al., 2011; Schaufeli, Taris, & Bakker, 2006; Shimazu & Schaufeli, 2009). Furthermore, as aforementioned, employee engagement encourages OCB (Bakker, Demerouti, & Verberke, (2004); Babcock-Roberson, & Strickland, 2010; Christian et. al., 2011), and OCB have been well documented in literature augmenting the effectiveness of an organization (Walz & Niehoff, 2000). Taking the same context ahead, it is proposed that employee engagement is related to organizational effectiveness and OCB functions as a mediator in the relationship between employee engagement and organizational effectiveness. The paper does not ostensibly replicate the previous acquisitions linking employee engagement to OCB and OCB to organizational effectiveness, but thoroughly envisages construction of a comprehensive framework that organizes relevant literature to support the connections between employee engagement and organizational effectiveness via OCB. In this direction, the paper seeks to acknowledge this existing yet not explicitly empirically examined link in the extant literature with regard to employee engagement and organizational effectiveness, and exploring organizational citizenship behavior (OCB) as a significant mediator persuading the predicting variable to the criterion variable. No study, to the best of our knowledge has proposed this unique combination of variables and the potential mediating mechanism of OCB between employee engagement and the organizational effectiveness. Therefore, the paper sets forth a new area of potential interest for research and practice in organizational sciences that could be further explored and built upon.
1.2 STATEMENT OF THE PROBLEM.
The need for active participation in the activities of the oil producing firms or sectors, is seen as good measure of organizational effectiveness and productivity. The absence of employee effectiveness to foster production processes undertaken by the oil firms therefore requires immediate attention of the company management. Creating and designing effective organizations is important (Hitt, 2008; Handa & Adas, 2005).Though, the complexity inherited in the nature of the most critical determinant of organizational success, yet a variety of approaches and frameworks have been developed in literature to understand the composite domain of organizational effectiveness. Mott’s (1972) measurement of perceived organizational effectiveness has been found to be the most frequently used criteria in various models pertaining to effectiveness (Steers, 1975; Sharma & Samantara, 1995; Luthans et al., 1988). However, this study would be able to scrutinize the effectiveness of organizations based on the participatory role of the employees, and to determine if organizational effectiveness depends on employee participations in the organization.
1.3 OBJECTIVES OF THE STUDY.
The following objectives are to be achieved at the end of the study;
i. To determine the relationship between employee participations and the effectiveness of the oil producing companies in Rivers State.
ii. To ascertain the possibility of making valuable profits on investment in production by oil firms.
iii. To know if there are problems associated with employees participations in the production process.
iv. To encourage the employees participations in the company’s oil drilling practices
v. To identify the factors of organizational effectiveness.
1.4 SIGNIFICANCE OF THE STUDY.
The research study is seen to be a beneficial source for most corporate organizations in rebranding the nature of employees participation in the given functions of the oil producing companies under study. Given the rationality for a significant association between employee participations and organizational effectiveness (Bateman & Organ, 1983; Organ, 1988; Podsakoff & Mackenzie, 1994; Smith, Organ, & Near, 1983; Williams & Anderson, 1991), it has been observed that employee’s extra efforts in form of citizenship behavior enable supervisors to devote more time in planning organizational activities, promote optimum utilization of organizational resources, enhances co-workers’ and managerial productivity, make organization a better place to work and thereby resulting into better functioning and smooth running of the organization.
In fact, reduced absenteeism, increased employee satisfaction and employee retention, are some other contributions of employee participations towards increased organizational performance and effectiveness (Chahal & Mehta, 2010; Chughtai & Zafar, 2006; Khalid & Ali, 2005; Podaskoff & Mackenzie, 1997). Although there is a considerable agreement about the salience of OCB in extant literature, yet there is no consensus on the understanding of sources of employee participations. OCB are largely considered as a matter of personal choice based on three underlying motives (motivational factors): a) prosocial values b) organizational-concern c) self-concern (Thayer, 2008). OCB are conceived as predominantly goal-directed behavior that is initiated by internal goals set by an individual.
1.5 RESEARCH QUESTIONS
i. Does effectiveness of the organization result to high productivity by the oil companies?
ii. Are there opportunities for an increase in employee participations in decision making ?
iii. Does employee participations generate effectiveness of the organization?
iv. Are there ways the problems of manufacturing companies can be solved ?
v. Is there any significant relationship between effectiveness of the organization and employee participations of oil companies?
1.6 STATEMENT OF HYPOTHESES.
The null hypotheses (HO).
HO: There is no significant relationship that exist between organization effectiveness and employee participations in the oil companies in the State.
The alternative hypotheses (H1).
H1: There is a significant relationship that exist between organization effectiveness and employee participations in the oil companies in the State.
1.7 SCOPE AND LIMITATIONS OF THE STUDY.
The research study is restricted to studying employee participations and corresponding organizational effectiveness of the oil producing companies in port Harcourt. There are very many oil producing companies in port Harcourt because of her position in environmental positions. A survey study of these companies in respect of the employee participations and organizational effectiveness in the State could be generalized as a true representation of other manufacturing companies boosting the participations and engagement of her employees in work and other functional parts of the company thereby increasing production.
The most limiting factor encountered in course of carrying out this research work was lack of fund. Also, the time duration required for the completion was too short, hence not encouraging. Sourcing of material was a difficult task due to the fact that some materials were not available at the time writing.
1.8 DEFINITION OF TERMS.
Employee participation: Sacks,E.(2006)defined employee participation as a distinct and unique construct that consist of cognitive, emotional and behavioral component that are associated with individual role effective performance.
Efficiency: someone who is well organized they can perform tasks in an organized and capable way ability to function without waste
Organizational Effectiveness: Organizational effectiveness has been widely accepted as “the degree to which an organization realizes its goals” (Daft, 1995). The term effectiveness is well- rounded to encompass several aspects of efficiency and adaptability (Cetin & Cerit, 2010).
Profitability: This is the ability of the manufacturing firms to make profits from all the business transaction (activities) embarked upon by the organization or company.
Participation : According to Robinson (2004) participation is defined as a positive fulfilling work related state of mind characterized by vigor, education and absorption.
Motivation: Motivation is an impulse that causes a person to act or it is an internal process that make a person move toward a goal
Work ethics : This is a belief that work, hard work and diligence has a moral benefit and an inherent ability , virtues or values to strengthen characters
Complete Material Cost #3,000