(A survey of selected manufacturing firms in Port Harcourt, Rivers state)
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ABSTRACT
This study is designed to examine the influence of culture on the relationship between workplace ethics and organizational effectiveness in the selected manufacturing firms in Port Harcourt. Rivers state. In the course of carrying out the work the primary and secondary method of data collection were adopted. The primary source has to do with structured and unstructured questionnaires, personal interviews, and observations; while the secondary data were sourced from text books, journals, internet materials, corporate magazines etc. The target population of the study includes 60 staff of the three studied manufacturing firms of which a sample size of (44) respondents were drawn from using the Yaro Yemen formula. The t-test and pearson correlation statistical methods were used to determine the relationship between integrity and organizational effectiveness in manufacturing firms in port Harcourt. In our findings, it is revealed that merit, justice and organizational culture are significant factors that enhances positive organizational effectiveness. Hence, the following recommendations are made; that management of manufacturing organisation should as a matter of strategic options, develop and improve on their ethical standards to serve as a vital measure for building strong corporate image that will enhance organizational effectiveness.
TABLE OF CONTENTS
DECLARATION ii
CERTIFICATION iv
DEDICATION v
ACKNOWLEDGEMENTS vi
ABSTRACT ii
TABLE OF CONTENTS vii
LIST OF TABLES ix
CHAPTER 1: INTRDUCTION ix
1.1 Background of the study 1
1.2 Statement Of The Problems 7
1.3 Objectives Of The Study 8
1.4 Research Questions 9
1.5 Research Hypothesis. 9
1.6 Significance of the study. 10
1.7 Scope and Delimitations of the Study 11
1.8 Limitations of the study. 12
1.9 Definition of terms. 12
CHAPTER 2: LITERATURE REVIEW 15
2.1 Conceptual Framework 16
2.1.1 Organizational Performance 17
2.2.3 Profit Making of Manufacturing Firms 19
2.3.4 Job Satisfaction 20
2.3.5 Market Shares 22
2.2 Theoretical Framework 24
2.2.1 Principles of Ethical Theories 25
2.3 EMPIRICAL FRAME WORK. 30
CHAPTER 3: RESEARCH METHODOLOGY 34
3.1 Research Design. 34
3.2 Population Of The Study. 35
3.3 Sample And Sampling Technique. 36
3.4 Data Collection Technique. 37
3.4.1 Interviewing 37
3.5 Sources Of Data. 38
3.6 Method Of Data Analysis. 38
3.7 Reliability And Validity. 39
CHAPTER 4: DATA PRESENTATION AND ANALYSIS 43
4.1 Data Presentation. 43
4.3.1 TESTING OF HYPOTHESIS 48
CHAPTER 5: DISCUSSION OF FINDINGS 52
5.1 Discussions. 52
CHAPTER 6: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS. 55
6.1 Summary 55
6.2 Conclusions 56
6.3 Recommendations 57
REFERENCES 59
APPENDICES 63
CHAPTER 1
INTRDUCTION
1.1 Background of the study
Organizations, strive to maintain a healthy and effective work environment, whereby each and every individual is treated fairly and with respect. High standards of personal integrity are also maintained. A workplace, which is free of conduct that may be considered harassment, abusive or offensive, creates a more conducive work environment .Avoiding unlawful discrimination against any employee can also go a long way to motivate employees. Let us take the example of “Lucky Fibres Plc company’’. The company’s foundation is built on ethical values and conduct. The company conducts its business in a socially responsible and ethical manner. The company values the uniqueness of individuals and various perspectives and talents, they provide. “Lucky Fibres Plc” continually works to develop its employees, so they have the highest quality workforce. Lucky Fibres Plc policy is to provide, equal employment opportunity and to treat applicants and employees without illegal bias. No one is ever
subjected to discrimination on the basis of Race, Religion, Color, National origin or gender identity. Nevertheless, employees are happy and they perform their best in such an ethical environment. Motivation, increases the productivity of the individual and the organization.
Ethical codes are often adopted by management, not to promote a particular moral theory, but rather because they are seen as pragmatic necessities for running an organization in a complex society, in which moral concepts play an important role. Even though ethical choices may not be easy, employers expect people to bring their consciences to work with them. In return, employees expect that the Organization they work for is ethical, honest and responsible . A person with integrity makes ethical choices based on moral values and principles , knowing very well that mistakes are bound to happen . But learning from the mistakes is what helps people to be conscious of the ethical choices they make. They become alert to the ethical demands of the Organization and contribute whole heartedly .
As Velasquaez, M. G. (2002). says,” If ethics are poor at the top , that behavior is copied down through the Organization.” So the employer has to ensure that the ethical codes of conduct are consistently followed throughout the Organization, from the top to the shop floor level of hierarchy. An employer hires, trains and pays a worker, and in return expects the worker to share the values and pursue the goals of the Organization; Simons, T. (2002). The employer rightly expects the employee to be reliable and consistent in his values. The values behind the conduct of the employee should be driven by the moral standards of both the employer and the employee, and the society in general. The employee in turn, has the right to expect goodwill and positive attitude, which will serve the needs and interests of the Organization. Studies have proved that loyalty at the workplace is a highly valued conduct .But Ethical dilemmas can hamper Organizational effectiveness. The importance of loyalty and integrity cannot be undermined. An employer who hires , trains and pays the worker , expects him to honestly pursue the goals of the Organization . The values behind one’s conduct on the job should be driven by his moral standards, as well as those of the employer and society in general. Goodwill and positive attitude goes a long way to serve the needs and interests of the Organization , Salau, 0. P. (2014).
As an employee, you are expected to come to work every day on time and focus on the work, so that the employer’s purpose and goals are achieved. Unethical practices, wasting time and resources, amounts to wasting the employer’s time and money. When an employee is unproductive, he/she is short – changing the Organization. Some people think that the little ways in which they abuse their position don’t amount to , much . If the employees are only concerned about themselves and not the Organization, then eventually they will fall out because the business will eventually fail . The success of the Organization depends on the goodwill and conscientious effort of its workers as well as its leaders. In the corporate culture of today, Organizational ethics and moral standards have gained more prominence. “Enlightened “companies have recognized that commercial success means much more than profit margin. In the truest sense, it is the image of the company and the goodwill it generates, that determines its success. Such companies also attract the brightest and the best workforce. Studies have proved that, there is a direct correlation between ethical conduct and job satisfaction. A happy employee turns out to be a productive employee in an ethical environment. It is one of the greatest motivating factors and induces a strong sense of belonging and loyalty. Hence high ethical standards are an asset for a company and unethical conduct, a liability Qiu, T. & Peschek, B. S. (2013).
As an effective impact towards organizational growth, it thus enhance the overall organizational effectiveness for profit making and keeping of standards compared with other firms in the market. The concept of organizational effectiveness is otherwise called organizational success or organizational worth which associates with goal attainment. According to Onwuchekwa (2009), an examination into effectiveness is to evaluate how well an organization is doing in relation to some set standards. Adeyeye, J. 0. (2010). posit that organizational effectiveness is the extent to which an organization as a social system with the resources and means at its disposal fulfils its objectives without incapacitating its means and resources and without placing undue strain upon its members. However, Fowers, B. J. (2008). Proposes seven measurement criteria of organizational effectiveness. These measurement criteria are employee’s satisfaction, profitability, growth rate of sales or revenue, financial growth, competitiveness of the company’s products and services, public image and good will and leader in Technology. The measurement criteria postulated by this scholar is quite impressive and cuts across a wide range of issues. It is not restricted to financial performance of any organization as was the case in the past. The relationship between management styles and organizational effectiveness cannot be overemphasized Muafi, J. (2011).
Workplace or business environment is said to be an important factor that affect organizational effectiveness. A good match between the standard of management in the workplace and operating realities of an organization will substantially influence its level of effectiveness. In each organization, management style influences the performance of individual employee and work groups, and thereby the whole organization’s performance. Robbins S.P. & Judge. T.A (2007) developed a model to study how managers practise the different management styles in work places. The model of these scholars consists of six managerial dimensions for comparing management practices which include leadership/supervisory style, decision-making, communication patterns, control mechanism, interdepartmental relations and paternalistic orientation.
1.2 Statement Of The Problems
There are almost daily disclosure of unethical business practice like profiteering, window dressing, juggling of books, bribery and corruption that prevail in our contemporary business activities. Workplace Organizational ethics and moral standards have gained more prominence. “enlightened “companies have recognized that commercial success means much more than profit margin, Luthans (2008). In the truest sense, it is the image of the company and the goodwill it generates, that determines its success Bhatti, K. K, Nawab, S. & Akbar, A. (2011). Such companies also attract the brightest and the best workforce. Studies have proved that, there is a direct correlation between ethical conduct and job satisfaction.
The implementation of workplace ethics that motivates good moral behaviors among Nigerian employees have not been embarked by most managers of our organization. Hence, it has always resulted to such unethical practices as recorded above. It is against this background that the researcher have decided to carry out the study in this area as to be able to find out the impact of effective workplace ethics on organizational performance. Our focus is geared towards selected manufacturing firms in Rivers State.
1.3 Objectives Of The Study
The main purpose of this study is to examine the relationship between workplace ethics and organizational performance with particular reference to some selected manufacturing firms. Other specific objectives are;
1) To determine the relationship between merit and organizational performance in selected manufacturing firms in Port Harcourt.
2) To determine the relationship between integrity and organizational performance in the selected manufacturing firms in port Harcourt.
3) To determine the relationship between justice and organizational performance in the selected manufacturing firms in Port Harcourt.
4) To determine the influence of culture on the relationship between workplace ethics and organizational performance in the selected manufacturing firms in port Harcourt.
1.4 Research Questions
In the light of the research problem, the following research questions are designed to help the researcher achieve the her objectives;
1. To what extent does merit influence organizational performance?
2. To what extent does integrity influence organizational performance?
3. To what extent does Justice influence organizational performance?
4. To what extent does organizational culture influence organizational performance?
1.5 Research Hypothesis.
The following hypotheses were formulated for this study;
Ho: There is no significant relationship between work place ethics and organizational performance
HA: There is significant relationship between work place ethics and organizational performance
1.6 Significance of the study.
The study is considered relevant in some selected manufacturing firms in Rivers State. Since unethical conducts can hinder organizational performance and behavior of employers. The study tries to highlight the benefit of an organization guided by its strict adherence to operational ethics and rules for sustainability of effectiveness. The knowledge gained will be vital to management of corporate organizations in taking vital strategic decisions, that could help foster the right policies that will positively affect the manufacturing firms growth (Faunce,1968). More so, government and other corporate organizations will also see workplace ethics as a medium for establishing business standards for innovative, creative, and productive purposes. This in turn, is realized from the returns on organizational assets and sales as a measure of organizational effectiveness.
1.7 Scope and Delimitations of the Study
a) Content Scope
The study focused on; organizational effectiveness on workplace ethics to find the important relationship between workplace ethics and organizational performance within Port Harcourt city of Rivers State. This will provide reliable information for the study.
a) Geographical Scope
The area of the study was selected manufacturing firms within Port Harcourt. These firms are Skypoint merchandised resources lmited, First Aluminium Plc, Lucky Fibres Plc plc all around the city of Port Harcourt which is located on high street of Aba road port Harcourt, this is located approximately 270 kilometers by road, southeast of Eleme area. The coordinates of the district port Harcourt city are :10 39S, 40 36E.
c) Unit of Analysis: For an optimum result to be achieved from the findings, it would be necessary to utilize the Pearson correlation test statistic to determine the relationship between the variables under study.
1.8 Limitations of the study.
The conduct of this research study has been so far affected by various limitations which hampered the process of the research to a great extent. Although the research was prepared carefully, but the period of time is not sufficient for the researcher to observe large respondents from the different branches of selected commercial banks within Port Harcourt in Rivers state. The research study is further been limited to studying only selected manufacturing firms within Port Harcourt, not in Nigeria entirely. It would be best if it was done in a longer period of time on large geographical area and with fewer burdens of other subject’s projects and protocols (policies). Some other limitations to the research also includes:
1) Lack of cooperation by some respondents to the questionnaire.
2) Lack of knowledge of some respondents to the questionnaire.etc.
1.9 Definition of terms.
ETHICS: This simply refers to the moral principles that controls or influence a person’s behavior.
INTEGRITY: It is the standardized values and codes of a person’s moral conduct that motivates her prior performance and effectiveness in an organization.
MERIT : This is the preferable advantage gained by an individual or group of persons(organization) over another in the competitive market.
PERFORMANCE: This is the act of accomplishing a task; a thing done or carried through; an achievements.
ORGANIZATIONAL CULTURE : This is the scenario or environ where corporate functions strive to carry basic business objectives and goals in the organization by setting standards and rules.
ORGANIZATIONAL PERFORMANCE: This is the actual output or results of an organization as measured against its intended outputs (goals and objectives).
WORKPLACE ETHICS: This refers to business standards, rules and moral standards in a workplace that gained more prominence in achieving set objectives in corporate organizations.
WORK: Is the ability of an employee to actively perform duty assigned in the organization.
WORKPLACE: This simply refers to the business environment or are where certain business objectives are achieved.