ORGANIZATIONAL DEVELOPMENT AND CORPORATE PERFORMANCE (A STUDY OF PETROLEUM PROSPECTING FIRMS IN PORT HARCOURT)

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Abstract

The study has examined organizational development and corporate performance in some Petroleum Prospecting firms in Port Harcourt. The survey research design that is cross sectional was employed. population is made up of 150 employees selected from the human resources department of Petroleum Prospecting firms in Port Harcourt firms in Port Harcourt, Rivers State as follows: SPDC = 80 and Agip= 70. The Yaro Yemen’s formula was used to determine the sample size of 120. The descriptive statistics was used to describe the demographic information of respondents. Ultimately, the chi-square tool is a non-parametric tool. Findings reveal that there is a significant relationship between organizational development and corporate performance in Petroleum Prospecting firms in Port Harcourt. Based on the findings of the study summary, conclusion and recommendations were made that Petroleum Prospecting firms should always adopt the appreciative inquiry approach in organizational development process, Petroleum Prospecting firms should adopt the T-Group Training and Sensibility in the organizational development process to enhance corporate sustainability and Since Group development leads to corporate sustainability Petroleum Prospecting firms should always organize group development programme.

Table of Contents

Title Page    i

Declaration iii

Certification         iv

Dedication  v

Acknowledgement         vi

Abstract      vii

Table of Contents viii

List of Tables       x

List of Figures      xi

CHAPTER ONE  1

INTRODUCTION         1

1.1 Background of the Study  1

1.2 Statement of Problems      3

1.3 Objectives of the Study     4

1.4 Research Question   4

1.5 Research Hypotheses        5

1.6 Significance of the Study   6

1.7 Scope/Limitation of the Study    6

1.8 Definition of Terms 7

CHAPTER TWO 9

LITERATURE REVIEW        9

2.1 Conceptual Framework     9

2.1.1 Concept of organizational Development     9

2.1.2 Dimensions Organizational Development   12

2.1.3 Corporate Performance  13

2.1.4 Measures of Corporate Performance 14

2.2 Theoretical Framework     15

2.2.1 Kurt Lewin Changee Model (Kurt Lewin 1947)    15

2.2.2 The Action Research Model     17

2.2.3 The Appreciative Inquiry Model       20

2.2.4 The General Model of Planned Change       22

2.3 Empirical Review    24

CHAPTER THREE       27

RESEARCH METHODOLOGY      27

3.1     Research Design   27

3.2     Population of the Study 28

3.3 Sample and Sampling Techniques        29

A sample is said to be a subset of a total population (Chawla &Sothdi,   29

3.4 Source and Method of Data Collection 31

3.5     Data Analytical Method 31

3.6     Reliability and Validity  32

CHAPTER FOUR         33

DATA PRESENTATION AND ANALYSIS       33

4.1     Data Collection and Presentation     33

4.2     Data Analysis      34

4.4 Discussion of Findings      42

CHAPTER FIVE 45

SUMMARYS, CONCLUSIONS AND RECOMMENDATIONS     45

5.1 Summary       45

5.2 Conclusions   45

From our findings, we concluded as follows;       45

5.3 Recommendations   46

References  47

Appendix I 49

Appendix II          50

List of Tables

Table 4.11 Chi-Square Table   41

Table 4.10 Contigency Table   40

Table 4.9: Response showing if organizational culture influences the relationship between organizational development and corporate performance in some Petroleum Prospecting firms in Port Harcourt.  39

Table 4.8: Response showing if group development relates with corporate performance in some Petroleum Prospecting firms in Port Harcourt.    38

Table 4.7: Response showing if T-Group Training and Sensibility associate with performance and corporate sustainability in some Petroleum Prospecting firms in Port Harcourt.   37

Table 4.6: Appreciative inquiry and corporate performance in some Petroleum Prospecting firms in Port Harcourt.  36

Table 4.2: Show age bracket of respondents        34

Table 4.3: show sex of respondents  34

Table 4.4: Academic qualification     35

Table 4.5: Marital status         35

Table 4.1 Questionnaires Administration and Retrieval          33

List of Figures

Fig. 1: A conceptual Framework Showing the Relationship between Organizational development and Corporate Performance  9

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Corporate Performance in business organizations has been strongly influenced by the rise of the balanced scorecard framework. It is common for managers to use the balanced scorecard framework to clarify the goals of an organization, to identify how to track them, and to structure the mechanisms by which interventions will be triggered. Corporate Performance (CP), is an increasingly important concept used to ensure the private sector has a positive impact on communities, employees and consumers. This is especially so in geographies where basic governance, the rule of law and accountability mechanisms are lacking or limited, (Hilmer, 1994). Corporate Performance, also commonly referred to as enterprise performance management or business performance management (BPM), is a business methodology that promotes the ongoing tracking and measurement of the performance of an entire organization as a whole (as opposed to a specific department or business unit, or even an individual employee), (Hoover, 2006). Critical metrics and key performance indicators, such as revenues, profits, cash flow, customer retention, or employee turnover, are often measured as part of a corporate performance management strategy. Petroleum Prospecting firms in Port Harcourt Companies seeking to implement a corporate performance management program have many techniques to choose from.

Corporate performance management strategies have been proven to deliver substantial advantages (Lawler, & Mohrman, 2009). CPM enhances communication, collaboration, and alignment among all levels of an organization, bringing together staff members at the executive, management, and operational levels in support of common goals. Corporate performance management also boosts productivity, reduces overhead expenses, increases flexibility and responsiveness to dynamic market conditions, enhances risk management, and facilitates improved adherence to regulatory guidelines. But not all corporate performance management strategies are successful.  Surprisingly, many CPM initiatives fail to deliver the desired results. This is primarily because strategies and priorities are not properly communicated beyond the executive level, which leads to poor organizational alignment. Additionally, there is often a lack of accountability, as stakeholders simply don’t understand how they will be expected to help reach certain goals. Organizational development is one construct that can enhance corporate sustainability. Warren Bennis’s (1969) definition positions OD as reactive to change, rather than proactive. McLagan (1989), define Organization development as assuring healthy inter- and intra-unit relationships and helping groups initiate and manage change. Organization development’s primary emphasis is on relationships and processes between and among individuals and groups. Its primary intervention is influence on the relationship Of individuals and groups to effect an impact on the organization as a system.

Organizational development (OD) is a set of planned-change techniques or interventions designed to improve organizational effectiveness and employee well-being (Balzac, 2011). The objective of OD is to improve the organization’s capacity to handle its internal and external functioning and relationships. This includes improved interpersonal and group processes, more effective communication, and enhanced ability to cope with organizational problems of all kinds. It also involves more effective decision processes, more appropriate leadership styles, improved skill in dealing with destructive conflict, as well as developing improved levels of trust and cooperation among organizational members. These objectives stem from a value system based on an optimistic view of the nature of man that man in a supportive environment is capable of achieving higher levels of development and accomplishment. From the foregoing therefore, the study is the determined to examine the relationship between organizational development and corporate performance in some Petroleum Prospecting firms in Port Harcourt.

1.2 Statement of Problems

          From its beginning in the early 19th century, various change models have been proposed to guide the core purpose of the field of organization development (OD) to plan and implement change to promote organizational effectiveness. Although they may not explain every situation in the real world, these provide the grounds on which change agents might proceed with designing, planning, and implementing change. During approximately the last twenty years, the use of models to guide the OD consulting process has been associated with enhanced organizational effectiveness through the adoption of one or a combination of change intervention strategies which are: human process-based strategies, techno-structural strategies, socio-technical strategies, and organizational transformation strategies (Mulili & Wong, 2011; McLean, 2005). Several studies have been conducted on the organizational development. Mulili & Wong, (2011) conducted a study on organizational development and organizational change. But no study has been conducted on organizational development and corporate sustainability. It is against this backdrop that the researcher seeks to examine the relationship between organizational development and corporate performance in some Petroleum Prospecting firms in Port Harcourt.

1.3 Objectives of the Study

          The objective of the study is to examine the relationship between organizational development and corporate performance in some Petroleum Prospecting firms in Port Harcourt. The specific objectives are as follows:

1.       To examine the relationship between appreciative inquiry and corporate performance in some Petroleum Prospecting firms in Port Harcourt.

2.       To examine the relationship between T-Group Training and Sensibility and corporate performance in some Petroleum Prospecting firms in Port Harcourt.

3.       To examine the relationship between group development and corporate performance in some Petroleum Prospecting firms in Port Harcourt.

4.       To examine the extent to which organizational culture influence the relationship between organizational development and corporate performance in some Petroleum Prospecting firms in Port Harcourt.

1.4 Research Question

The following research questions were proposed to guide the study.

1.       To what extent does appreciative inquiry associate with corporate performance in some Petroleum Prospecting firms in Port Harcourt?

2.       To what extent does T-Group Training and Sensibility associate with performance and corporate sustainability in some Petroleum Prospecting firms in Port Harcourt?

3.       To what extent does group development relate with corporate performance in some Petroleum Prospecting firms in Port Harcourt?

4.       What is the extent to which organizational culture influence the relationship between organizational development and corporate performance in some Petroleum Prospecting firms in Port Harcourt?

1.5 Research Hypotheses

The following hypotheses were formulated to guide the study:

HO1: There is no significant relationship between appreciative inquiry and corporate performance in some Petroleum Prospecting firms in Port Harcourt.

HO2:  There is no significant relationship between T-Group Training/ Sensibility and corporate sustainability in some Petroleum Prospecting firms in Port Harcourt.

HO3: There is no significant relationship between group development and corporate performance in some Petroleum Prospecting firms in Port Harcourt.

HO4: There is no significant relationship between organizational cultures and corporate performance in some Petroleum Prospecting firms in Port Harcourt.

1.6 Significance of the Study

          The significance of the study cannot be overemphasized.

Today’s business environment possess great challenge to managers who must consistency deal with customer changing task and preference and also cope with organizational development pressure from competitors with performance being the total point change management sure to be a rescue to managers.

This work highlights the importance of organizational development and its role in helping this organization withstand environment, pressure ad challenges of being sustainable organizational development is one area where organization failed to explore in their bid to remain relevant and competitive in the industry. This work will open the eyes of managers and scholars to the numerous advantages of organizational development in every organization. This work shows scholars how effective organizational development can be in competition and proves that organizational development is a head in the industry.

1.7 Scope/Limitation of the Study

          The scope of this study is delimited into the followings:

Content Scope: The specific areas of corporate performance the study investigated include; productivity, efficiency and effectiveness.  Whereas, the areas of organizational development include appreciative inquiry, T-Group training and development and group development.

Geographical scope: This study covers an examination of organizational development and corporate performance in Petroleum Prospecting firms in Port Harcourt which include SPDC and Agip.

Unit of Analysis: This is a macro study because it is interested in ascertaining the corporate performance of an organization in this direction. Hence, it is a micro level study.

The major limitation of the study is the short time frame the research lasted, coupled with the tight academic time table, which prevented a very comprehensive study. The fund available to the researcher was also limited and therefore the study was limited to a small portion of the survey population.

Another limitation is the difficulties, encountered by the researcher in obtaining all needed information and materials from the right source and computation of data for the project.

1.8 Definition of Terms

APPRECIATIVE INQUIRY

It is change management approach that focuses on identifying what is working well, analyzing why it is working well then doing more of it.

CORPORATE PERFORMANCE

Corporate performance is most often defined as (1) a strong desire to remain a member of a particular organization; (2) a willingness to exert high levels of effort on behalf of the organization; and (3) a definite belief in, and acceptance of, the values and goals of the organization.

EFFICIENCY

It is the ability to avoid wasting materials, energy, efforts, money, and time in doing something or in producing a desired result.

EFFECTIVENESS

Organizational effectiveness is defined in many ways depending on the organizations goals and objectives in today’s market and also is dependent on the industry.

ORGANIZATIONAL DEVELOPMENT

From Lewin came the ideas of group dynamics and action research which underpin the basic OD process as well as providing its collaborative consultant/client ethos.

T-GROUP TRAINING AND DEVELOPMENT

A T-group sometimes also referred to as sensitivity training group, human relations training group or encounter group.

GROUP DEVELOPMENT

Group development often called team building or team development. It is the famous and well-known model of group.

PROFITABILITY

Profitability is the state of yielding financial profit or gain. It is often measured by price to earnings ratio.

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