CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

The issue of low productivity of Nigeria workers has in recent years been a matter of greater concern to the nation. The rate of productivity grows are influenced by two things; viz (i) The rate of society’s demand and (ii) the rate of inflation.

Increased productivity is very vital for the health of the country because it will help to improve the conditions of the environment, enhance security and improve the standard and quality of life of the citizens. This is why Ricada in his study of population said that food needs to grow at a geometrical rate in order to meet the demand of the growing population. This emphasizes the need for increased productivity.

Yesufu (2002) was of the view that productivity can be defined as the ratio between output and all the resources used in production i.e. capital, labour, raw materials etc. the most efficient use of all available resources. With this definition; one may ask why are the Nigeria worker inherently characterized by low-productivity in spite of all government’s efforts to improve the economy and the ever increasing need for improved productivity. The answer to this disturbing question is vital and will be answered and discussed in this study.

Increasing productivity is a way of increasing the ability of people to do what they want, to do as well as achieving a higher standard of living for all suffering from low income and in boosting the prosperity of the overall Nigeria economy.

1.2    STATEMENT OF PROBLEM

Nigerians have so much complained about a low productivity of Nigerian workers. Even workers themselves have also been worried about their own level of productivity. Some of them believe if one’s output is high, it will motivate one much towards working harder and thereby increasing productivity, as high output makes one to be satisfied.

Nigerians cannot withstand the competition in the world market; this is also attributed to low-productivity especially in the industries in the private sectors. This is because; most of the product used in Nigeria is manufactured by them. In other countries their level of technology is high so their productivity is usually high and as such they do well in international market.

It can now be seen that low-productivity is a general issue in Nigeria and also a big problem in Nigeria and it adversely affects the economy. Nigerians are faced with several hardships in the country. Low-productivity of our industries is one of the notable causes of this.  It makes cost of many products to be high as many people want to buy the few available products.

This study will therefore find out the factors responsible for this low-productivity in the private sector of the Nigerian economy using Nigeria Bottling Company as the case study.

1.3    OBJECTIVE OF THE STUDY

The depressing economic situation of things in our country led to the carrying out of this research as the bad economy can be attributable to low-productivity in our industries.

The objective of this study is therefore to find out those factors which are responsible for low-productivity in Nigeria workers especially in the private sector. The specific objectives include:

1.    To examine the factors responsible for low productivity of workers in the private sector.

2.    To examine level of productivity of industries in the private sector.

3.    To examine the impacts of low productivity of workers on economic development.

1.4    RESEARCH QUESTIONS

The following research questions have been designed to guide this study:

1.   What are the factors responsible for low productivity of workers in the private sector?

2.   Is the level of productivity of industries in the private sector important to the economy?

3.   What are the impacts of low-productivity of workers on the economy?

1.5    RESEARCH HYPOTHESIS

Ho:    The type of technology used does not have effect on the level of productivity.

Hi:     The types of technology used have effect on the level of productivity.

Ho:    The difficulties associated with raw materials acquisition do not have effect on productivity level.

Hi:     The difficulties associated with raw material acquisition have effects on productivity level.

Ho:   Low productivity of workers does not have effect on economic development.

Hi:   Low productivity of workers has effect on economic development.

1.6    SIGNIFICANCE OF THE STUDY

This very study is aimed at examining those factors affecting workers’ productivity in the private sector. Therefore the result of this research will then do the following:

1.       Potential consumers will benefit for they will be supplied with the products they want and their money’s worth satisfied.

2.       The management will also benefit when there is improvement in productivity of workers.

3.       It makes for a rapid economic growth of the country.

4.       Workers will also benefit through training and re-training scheme/programme.

5.       The income–level and service requirement of the entrepreneur will improve.

1.7    SCOPE OF THE STUDY

The scope of this study shall be limited to Nigeria Bottling Company, Ughelli. The study is concerned with factors responsible for low-productivity of workers in the private sectors. Measurement of productivity in the business enterprises is relatively quite simple because of the existence of clear–cut relationship between inputs and out-put.

On the basis of the above, this research did not give much consideration to the problems relating to productivity is not easily quantifiable.

1.8        LIMITATION OF THE STUDY

Some of the limitations of this study include time, finance and unavailability of related literature review materials.

Time: The semester is a short one and there are other academic works to be done by the researcher apart from this research work therefore the research was limited to Nigeria Bottling Company, Ughelli, Delta State.

Finance: Inadequate finance hindered the possibility of a larger sample size which may have helped the work in being more objective and accurate

Time table: The time limit allocated for the collection data and completion of the whole research work for the project made it impossible to gather information that will make room for a comprehensive study of the subject matter.

Communication barriers: During the personnel interviews the researcher experienced a lot of communication problem with the individual and some company staff interviewed. Some are aware and acquainted with the task, but found it difficult to communicate effectively. This made the researcher’s work a bit tedious and cumbersome. Also despite the simple nature of the questionnaire the few responses that were received were poorly made.

1.9    OPERATIONAL DEFINITION OF TERMS

Labour: Labour used in this project to mean duties which are performs in an organization.

Productivity: Productivity is efficiency, especially in an industry, measured by comparing the amount produced with the time taken.

Organisation: The activity of organizing something.  It is used in this project as an enterprise set up for the purpose of doing business with the aim of making project.

Investor: Investor is used in project to mean somebody who have set aside to reasonable of money to start of business with aim of making profit.

Social Responsibility: The obligation of organization management to make decisions and take actions that will enhance the welfare and the interest of the society as well as the organization.

Manpower: Human resources needed to run organization effectively.

Development: This is the growth and increment in the practice of entrepreneurship, as well as increment in the size of business and infrastructure. 

Planning:  Is the process of determining the policies and programmes that will develop, utilize and distribute manpower with a view to achieving a country’s aim socio economic and political development.

Economy: This is the system by which a country’s wealth is produce and utilized.

Management development: The process of developing the experience, skills and attitudes of a manager to enable him remain an effective worker under prevailing situations technology.

Indigenization: Indigenization is the mass transfer of ownership and control of economic organization from foreigners to nationals. It is a situation where a deliberate effort is made with a back up of government regulation to transfer proprietary interest of man.

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