EFFECT OF INTERNAL ENVIRONMENT ON EMPLOYEE PERFORMANCE IN POWER HOLDING COMPANY OF NIGERIA (PHCN), ENUGU

ABSTRACT

The aim of this study was to assess the Effect of Internal Environment on Employee Performance in PHCN, Enugu distribution Company. The study defined research objectives, research questions. The study used structured  questionnaire  to   collect   responses  from   the   study population sample. Secondary data from already published books and magazines were used to build the conceptual framework of the study; the analysis of data was based on respondents who returned correctly completed questionnaire and the hypotheses were tested using the Chi-Square statistical method. The findings reveal that to a good extent in PHCN, Enugu Internal Environment Effect Employee Performance. The study therefore recommended an improved and enhanced work environment in Power Holding Company of Nigeria (PHCN) Enugu Distribution Company.

TABLE OF CONTENT

Title page  ….    ….    ….    ….    ….    ….    ….    ….    ….    i

Chapter one: Introduction

Chapter Two: Literature Review

2.1   Historical Background; Origin of Power Holding Company of

Nigeria (Phcn)    ….    ….    ….    ….    ….    ….    ….    ….    10

2.3   The Effects of Internal Environment On Employee And Business

Performance      ….    ….    ….    ….    ….    ….    ….    ….    33

viii

2.4   Cashflow Position        ….    ….    ….    ….    ….    ….    36

2.5   Government Legislation/Policies    ….    ….    ….    ….    37

References        ….    ….    ….    ….    ….    ….    ….    ….    38

Chapter Three; Research Design And Methodology

Chapter Four; Data Presentation And Analysis

4.1    Data Presentation and Interpretation …. ….    ….    ….    46

4.2   Analysis of Questionnaire Returned ….   ….    ….    ….    46

4.3    Analysis of Introductory Responses ….  ….    ….    ….    47

4.4   Analysis of Research Questions      ….   ….    ….    ….    48

4.5    Test of Hypothesis             ….    ….    ….    ….    ….    56

Chapter Five; Summary Of Findings, Recommendations And

Conclusion

5.1   Summary of Major Findings          ….    ….    ….    ….    61

5.2   Recommendations      ….    ….    ….    ….    ….    ….    64

5.3   Conclusion         ….    ….    ….    ….    ….    ….    ….    65

Bibliography               ….    ….    ….    ….    ….    ….    ….    67

Appendix           ….    ….    ….    ….    ….    ….    ….    ….     69

Questionnaire             ….    ….    ….    ….    ….    ….    ….    70

LIST OF TABLES

TABLE 4.1 QUESTIONNAIRES RETURNED 46

Table 4.10 Response on whether cordial employer/employee

relationship will result in improved productivity.    —-    —-    —-    50

Table 4.11 PHCN involve employees in decision making —-    —-    51

Table 4.12 Response on the dependence of performance

on needs satisfaction     —-    —-    —-    —-    —-    —-    —-    52

Table 4.13 Response on the effects of fringe benefits

on performance    —-    —-    —-    —-    —-    —-    —-    —-    52

Table 4.14 Supervision Preference that boost workers performance  52

Table 4.15 The state of the working environment in PHCN      —-    53

Table 4.16 Increase in Salary increases productivity       —-    —-    53

Table 4.17 Response on whether Job in PHCN motivates         —-    54

Table 4.18 Response on whether working environment in

CHAPTER ONE INTRODUCTION

1.1  BACKGROUND OF THE STUDY

Businesses operate within a supra system called operating environment. These environmental factors be it internal or external bears directly or indirectly on the operations of that business.

Many a business organizations have collapsed because of the effects of environmental factors. The environment of an organisation has got internal, operational and general lives, managers must be aware of these environmental levels and their relationship and importance. Whenever a business takes any decision regarding the business it has to take due care of the environment in which it is running. The decision should  not  be  against  the  stakeholders  of  the  business thereby it definitely affects the business.

Generally, internal environment refers to one’s immediate surroundings including water, air, land in which one lives that influences one’s life. But for the purpose of this research, internal environment here shall be referred to as elements  within  the  work  environment,  such  as  working

staff   and   al   factors-incentives,   salary   increase   and opportunity to develop oneself. These have effects on the overall performance of an employee. An improved work environment will result in a reduction in a number of complaints and absenteeism and will bring an increase in productivity, Roelofson (2002).

Employee makes critical difference between success and failure. The effectiveness with which organizations manage, develop, motivate and engage the willing contribution of the employees will enable them to capitalize on their expertise most efficiently. There is a link between people management and business performance. According to Roelofson (2002) one of the fundamental human requirements is work environment that allows people to perform their work optimally under comfortable condition.

People are beginning to be conscious of the fact that to

be happy and cheerful in one’s work place, some conditions must be present even with little pay. For example, not withstanding whatever is provided for a seamstress for her job, if there is no machine, all that is provided comes to

naught. Again, when a librarian is presented with a noisy environment,  he  will  not  carry  out  his  work  effectively because  the  environment  suitable  for  effective  library function   is   quietness   and   orderliness.   Similarly,   an accountant who deals with figures will be annoyed if he is sharing a calculator with four staff members. Also, the secretary is looked upon as human machine, trained with the responsibility of taking note of what others may regard as minor and making suggestions based on records available. To effectively carry out these and other functions, the secretary needs a ‘hightech’ office where some electronic machines will complement his/her human ability.

In an employment situation, the employee promises to live up to expectations. The employer expects nothing less. But the point is: has the employer provided a work environment that will facilitate the effective discharge of the employees’ assigned duties? Most employers keep complaining of poor returns from employee without taking out  time  to  find  out  why  the  new  employer  has  not performed beyond what the former one was able to do.

work  and  most  conducive working  environment they  can perform exceptionally well, and companies can capitalize on their enhanced productivity in the shape of cost reduction, which will ultimately contribute towards rich profits. The relationship between employee attitudes and company performance, as suggested by Patterson et’al., (1997), is highly correlated. They suggested that managers of organizations who are eager to promote productivity and profitability should pay close attention to the attitudes of their employees in orders to make them more positive.

1.2  STATEMENT OF PROBLEM

This  project  work  is  aimed  at  ascertaining  the  effect  of internal environment on employee performance. The statement of research problems therefore arises from the question such as:

1. a) How can internal environmental factors affect employee performance?
2. b) Does internal Environment have any bearing on the performance of employees?

employee performance?

1. d) Do employees respond to changes in the work place environment?
2. e) Is there   any   relationship   between   work   place environment and the productivity of the employees?

1.3  OBJECTIVES OF THE STUDY

The  study  will  investigate whether  perceived  promotional opportunities will make employees stay with the company and whether money is the main motivating factor. Furthermore, the following objectives will also be given attention:

1. To highlight some  internal  factors  that  impact  on productivity.
2. To ascertain the extent of effect of work environment on employee performance.
3. To highlight   what   motivates   employee   in   the

organization

4. To identify better means of inducing higher employee performance to enhance job satisfaction.

working environment for PHCN staff.

1.4  RESEARCH HYPOTHESES

1. Provision of a good working environment and conditions of service lead to low rate of absenteeism and low rate of job turnover in PHCN
2. Increase in salary  and  bonuses  are  major  internal

factors that enhance performance of PHCN workers.

3. Well equipped office and equipment facilitates workers performance among PHCN staff.
4. Government policies and privatization requirement is a major hindrance that impacts on the performance of PHCN staff

1.5  SIGNIFICANCE OF THE STUDY

This study will explore the effect of internal environment on employee performance and the make-up of what constitutes a good internal environment in the company used as a case study. It is intended to be of interest to the top management in the service companies who would find the study very essential as a guide in structuring the internal environment

in place to enhance efficiency and also increase the level of job performance.

1.6  SCOPE OF THE STUDY

The  study  is  not  designed to  cover  the  service  firms  in Nigeria but is limited to Power Holding Company of Nigeria Plc, Enugu Zone. Efforts have been specifically made to find out how the effect of internal environment affects the job performance of staff of Power Holding Company Plc for this purpose; the study covers the entire management cadre.

1.7  LIMITATION OF THE STUDY

This study is limited to Power Holding Company of Nigeria Plc Enugu Zone due  to  time  and  logistics constraints, which made extensive coverage of service or even manufacturing firms difficult.

1.8         DEFINITION OF TERMS

Environment: The sum total of the surrounding conditions whether physical or not that affects or influences development.

service  to  an  employer  under  a  defined  agreement  for reward.

Performance: This is the act of doing a piece of work which one is either ordered to do or promised to do. It could be as the result of  an act, which is  measured in  quality or in quantity.

Productivity: The rate or efficiency of work especially in manufacturing or service organizations.

REFERENCE

Abraham  Maslow  (1970):  Motivation and  Personality 2nd   edition, New York.

Alderfer C. (1972): Existence, Relatedness and Growth of Human

Needs

in Organizational Psychology.

Armstrong, M. (2004). Handbook of Human Resource Management

Practices (9th ed.). London: Kogan Page.

Onodugo V. A. et all (2010): Social Science Research: Principles, Methods and Applications, Enugu, Ed‟mark Publishers.

Ozo, J. Ubata et‟al (1999): Introduction to Project Writing for Business and

Financial Studies. Enugu Sunny Enterprises.

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