CHAPTER
ONE
INTRODUCTION
1.1 BACKGROUND TO
THE STUDY
Attainment
of a high level performance through productivity and efficiency has always been
an organizational goal of high priority. In order to do that highly satisfied
work force is an absolutely necessity for achieving a high level of performance
advancement of an organization. Satisfied worker leads to extend more effort to
job performance, then works harder and better. Thus every organization tries to
create a satisfied work force to operate the well- being of the organization.
However,
the total organizational performance depends on efficient and effective
performance of individual employees of the organization. Therefore, every
organization places a considerable reliance on their individual labour turnover
to gain high productivity in the organization.
Employee
effort is an important factor that determines an individual performance will
be. When an employee feels a satisfaction about the job, he/she is motivated to
put greater effort to the performance. Then it tends to increase the overall
performance of the organization. In other words, a satisfied individual
employee and his effort and commitment are crucial for the successfulness of
the organization.
Nigerian
Agip Oil Company Limited (NAOC) with headquarters in Lagos Nigeria is a joint
venture operated by Agip and owned by NNPC (60 percent), Agip (20 percent) and
Phillips Petroleum (20 percent) produces 150,000 bpd mostly from small onshore
fields.
Job
satisfaction is a complex and multifaceted concept, which can mean different
things to different people. It is more of an attitude, in internal state. It
could be associated with a personal feeling of achievement, either quantitative
or qualitative (Mullins, 1999). He examines job satisfaction (1) in terms of
the fit between what the organization requires and what the employee is seeking
and (2) in terms of the fit between what employees is seeking and what he/she
is actually receiving. He emphasized that the level of job satisfaction is
affected by a wide range of variables relating to
(1)
Individual (i.e. personality, education, intelligence and abilities, age,
marital status and orientation to work);
(2)
Social factors (i.e. relationship with co-workers, group working and norms and
opportunity for interaction);
(3)
Cultural factors (i.e. attitudes, beliefs and values);
(4)
Organizational factors (i.e. nature and size, formal structure, personnel
policies and procedures, employee relations, nature of the work, supervision
and styles of leadership, management systems and working conditions); and
(5)
Environmental factors (i.e. economic, social, technical and governmental
influences).
Sweeny
and Mcfarln (2002) defined job satisfaction as the result of a psychological
comparison process of the extent to which various aspects of their job (e.g.
pay, autonomy, work load) measure up to what they desire. Thus, the larger the
gap between what employees have and what they want from their jobs, the less
satisfied they are; (employees tend to be most satisfied with their jobs when
what they have matches what they want.
An
employee‘ overall job satisfaction is the cumulative result of comparisons that
she makes between what her job provides and what she desires in various areas.
The fact that perceived importance makes such a big difference in how employees
feel also has implications for management. Obisi, (2003), listed factors that
contribute to job satisfaction as; adequate salary, good working conditions,
parental management, job security, opportunity for growth, positive and
supportive environment, friendly nature of co-workers and colleagues
responsibility and cordial relationship between the superior and the
subordinates. Therefore, we can conclude that job satisfaction is a person‘s
evaluation of his or her job and work context.
This
research is beaming searchlight into the relationship between job satisfaction
on employee’s performance in Agip Oil Company in Nigeria.
1.2 STATEMENT OF
THE PROBLEM
The
evolving competition in the oil and gas industry today in Nigeria is evident
from the increasing foreign investors and many multinational companies and
local investors (independent marketers) has called for good organizational
framework that would allow these companies to retain their best hands.
Gunter
and Furnham (1996) state that job satisfaction can directly cause work outcomes
that are positive. Positive work incentives are incentives that make work
interesting, e.g.; attractive work environment, good personnel policies,
provision of benefits, job structure and compensation. Enabling work
environment leads to motivation, good personnel policies, favourable work
environment, and provision of benefits, job satisfaction and compensation.
However, negative work incentives include those incentives that make work
boring, unchallenging and dissatisfying. They lead to increased absenteeism,
turnover and accidents. Thus to prevent these negative work outcomes, there is
a need to find out which factors within the organizational context can lead to
satisfaction among employees of Agip Oil Company so as to continually have
productive, satisfied and contented employees. However, it is important to
point out that the researcher is not unaware of the fact that factors like
clear lines of communication, adequate reward system and promotional
opportunities could also encourage or discourage both positive and negative
work outcomes which if not adequately put in place could result in turnover of
these employees. Comparative studies of this nature would afford the researcher
the opportunity to identify variations in job satisfaction of employee and
their impact on labour turnover. A number of factors had been identified in
literature as responsible for the extent to which dissatisfaction is associated
with labour turnover and compensation. The impact of these factors varied and
are quite associated with beliefs, management of factors and tolerance levels
(Delery and Doty, 2006; Doty, Glick and Huber, 2003). These factors which could
enhance or impede academics work performance include top management emphasis on
administrative style, work load, feedback about performance and support from
superiors.
Moreover,
job satisfaction is relevant to the physical and mental well being of
employees, i.e. job satisfaction has relevance for human health (Oshagbemi,
1999). An understanding of the factors involved in job satisfaction is relevant
to improve the well being of a significant number of people. While the pursuit
of the improvement of satisfaction is of humanitarian value, Smith, Kendall and
Hulin (1969) stated that ―trite‖ as it may seem, satisfaction is a legitimate
goal in itself‖. Therefore, apart from its humanitarian utility, it appears to
make economic sense to consider whether and how job satisfaction can be
improved. Hence, the needs to identify variables within the organizational context
that can help improve the job satisfaction of employee working in an
organization. Most of the previous studies have made attempt to explain a
worker‘s job satisfaction as a function of the individual´s personal
characteristics and the characteristics of the job itself.
Other
factors that appear to affect effective functioning of organizations include
management and leadership styles, unclear rules and regulations in the
personnel policies, excessive work load, poor communication with supervisor cum
unclear lines of communication, boredom and frustration resulting from lack of
support from the superior, suitable career ladder, unchallenging jobs and
inadequate fringe benefits as expected in the working condition (Marriner-
Tomey, 1996). Therefore, this study hopes to establish the relationships that
exist between the different variables of labour turnover and job satisfaction
among the workers of Agip Oil Company.
1.3 OBJECTIVES OF
THE STUDY
The
main objective of this study is to determine the relationship between job satisfaction
and labour turnover in Agip Oil Company. The specific objectives are therefore
listed below;
1.
To find out the relationship that exists between job satisfaction and labour
turnover in Agip Oil Company
2.
To identify factors that determines job satisfaction of employees and their
consequential effects labour turnover.
3.
To determine whether there is a difference in the way senior staffs and junior
staffs perceive the job satisfaction.
1.4 RESEARCH
QUESTIONS
What
is the relationship between job satisfaction and employees’ performance in Agip
Oil Company?
What
are the factors that determine job satisfaction of employees and their
consequential effect on labour turnover?
Is
there a difference in the way senior staff and junior staffs perceives job
satisfaction and labour turnover?
1.5 HYPOTHESES
H0:
There is no significant relationship between job satisfaction and labour
turnover.
HA:
There is significant relationship between job satisfaction and labour turnover.
1.6 SIGNIFICANCE
OF STUDY
The
focus of this study is centered on labour turnover of Agip Oil Company due to
job satisfaction. The study is important as it will highlight the factors that
employees view as enhancing job satisfaction leading to improved labour
turnover within their organizational context. The management of companies and
organizations will find the research helpful in improving staff morale and
bringing about job satisfaction of their employees. An employee who achieves
success in his or her job and whose needs are met in the work place would be a
happy employee that would strive to maintain excellence. In addition, the study
will recommend adoptable policies and strategies for mitigating organizational
correlates of job dissatisfaction.
1.7 SCOPE
AND DELIMITATION OF STUDY
This
research focused on labour turnover that could arise as a result of job
satisfaction. The research was conducted in Agip Oil Company Lagos State,
Nigeria. Job satisfaction can have an impact on labour turnover, which in turn
could lead to an increase of productivity among employees. The study
concentrated on finding out the causes of job satisfaction and dissatisfaction
among employees (senior and lower level) and determines whether there is a
difference in the way the senior and the junior workers perceive the job
satisfaction and labour turnover
LIMITATIONS
OF STUDY
Limitations
experienced in the course of this study are basically centered on problems
relating to:
Difficulty
in generating reasonable, adequate and reliable information from respondents-
Respondents tend to provide information which they feel the researcher would be
pleased to get, which may not be the right information.
Financial
constraint- Insufficient fund tends to impede the efficiency of the researcher
in sourcing for the relevant materials, literature or information and in the
process of data collection (internet, questionnaire and interview).
Time
constraint- The researcher will simultaneously engage in this study with other
academic work. This consequently will cut down on the time devoted for the
research work.
Busy
schedule of the respondents- The workers of Agip Oil Company who will be the
respondents of the questionnaires may have busy work schedule thereby making
them to provide answers to the questions hurriedly, which can affect their
answers negatively.
1.8 DEFINITION
OF TERMS
Employee:
An individual who works part-time or full-time under a contract of employment,
whether oral or written, express or implied, and has recognized rights and duties.
Also called worker.
Satisfaction:
refer to discharge, extinguishment, or retirement of an obligation to the
acceptance of the obligor, or fulfillment of a claim.
Performance:
the accomplishment of a given task measured against preset known standards of
accuracy, completeness, cost, and speed. In a contract, performance is deemed
to be the fulfillment of an obligation, in a manner that releases the performer
from all liabilities under the contract
Salary:
Agreed-upon and regular compensation for employment that may be paid in any
frequency but, in common practice, is paid on monthly and not on hourly, daily,
weekly, or piece-work basis.
Incentives:
Inducement or supplemental reward that serves as a motivational device for a
desired action or behavior.
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