An Analysis Of The Causes Of Low Productivity In A Small Scale Business Enterprise In Nigeria (A Case Study Of Adaobi Plastic Industry Limited Aba)

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An Analysis Of The Causes Of Low Productivity In A Small Scale Business Enterprise In Nigeria (A Case Study Of Adaobi Plastic Industry Limited Aba)


Abstract


The main purpose of the study was to find out the causes of low productivity in a Small Scale Business Enterprises in Nigeria: A Case Study of Adaobi Plastic Industries Nigeria Limited, Aba. Motivation is one of the most important ingredients in creating industrial harmony and increased productivity in a small scale business enterprises. Lack of this essential does- motivation will result of low productivity in any organization. Mangers should appreciate the indispensable role of workers in the scheme of the enterprise and should therefore endeavour to activate their potentials at all times to enhance productivity. Many firms, especially small scale business enterprises, especially in the private sector low productivity of their output, incessant closure of small scale business and long list of retrenched workers. This is a case study of Adaobi Plastic Industry Nigeria Limited and the employees of the industry form the target population. The instrument of data collection consists of questionnaire. There are five hypothesis formulated in accordance with what the investigator intended to find out. The raw scores were analyzed by the percentages. The major finding reveals that the causes of low productivity with small scale business enterprise in Nigeria ranges from the management policy or philosophy to attitude of employee and inventory level. Other finding confirms that causes of low productivity in the small scale business enterprises (organization of private sector among other causes include the following:

  • Lack of motivation
  • Operating condition of the company poor
  • Leadership style
  • Poor inventory level
  • Lack of training and manpower development etc.

The result have been seen to imply that if the above causes are taken care of in private sector small scale business enterprise there is hope of increase productivity and better effective performance.


Table of Contents


  • Title page
  • Approval page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of contents

Chapter One

1.0 Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Objectives of the Study
  • 1.4 Research Questions
  • 1.5 Significance of the Study
  • 1.6 Scope of the Study
  • 1.7 Limitations of the Study
  • 1.8 Definition of Terms

Chapter Two

2.0 Literature Review

  • 2.1 Introduction
  • 2.2 Lack of Motivation
  • 2.3 Employee Health and Safety Problems
  • 2.4 Instrumentality Theories
  • 2.5 Leadership Style
  • 2.6 Inventory Level Problem
  • 2.7 Training and Man Power Development
  • 2.8 Job Analysis Problems
  • 2.9 Performance Appraisal Problem

Chapter Three

3.0 Research Design and Methodology

  • 3.1 Introduction
  • 3.2 Research Design
  • 3.3 Sources/Methods of Data Collection
  • 3.4 Population and Sample Size
  • 3.5 Sample Technique
  • 3.6 Validity and Reliability of Measuring Instrument
  • 3.7 Method of Data Analysis

Chapter Four

4.0 Presentation and Analysis of Data

  • 4.1 Introduction
  • 4.2 Presentation of Data
  • 4.3 Analysis of Data
  • 4.4 Interpretation of Result

Chapter Five

5.0 Summary, Conclusion and Recommendations

  • 5.1 Introduction
  • 5.2 Summary of Findings
  • 5.3 Conclusion
  • 5.4 Recommendations
  • References
  • Appendix

Chapter One


1.0 Introduction

In recent time, the falling standard of most companies and organization especially small scale Business enterprises (Private Sector) has received wider comments and publicity. Many small scale establishment have either folded up or are in disarray, to many their productivity is extremely low that they are mere shadows of themselves.

The implication is that the causes of this low productivity is not addressed and researched upon in no distant time these small scale business enterprises will close up production and layoff their staff.


1.1 Background of the Study

The Adaobi Plastic Industry Limited, Aba was established in 1979, it was commissioned in 1963. It commenced business with an initial share capital of (N150,000.00) one hundred and fifty thousand Naira.

The emergence of the Nigeria civil war between 1967-1970 affected the operations of the industry adversely. It was short down but was reactivated and went back to production in 1975.

Since 1975 the industry has been involved with restricting and reconstruction with restricting and reconstruction with expansion in some sectors where necessary presently, the industry’s major products are plastic jug, plastic plates, basin, pan jars, buckets and a range of plastic materials. The present plant capacity is at two thousands tones per- annum. As a result of this low plant capacity, production was grossly insufficient.

In 1980, the industry once again started expansion programme which is not yet conclusion due to inadequate funds. It is expected that if this expansion programme is completed, production would increase to about three thousand (3000) tones.

Today the industry can boost of a share capital of about three million five hundred thousand Naira (N 3.5m) the staff strength is about four hundred and fifty workers which reduces with time.

The organization has five directors and the management structure of:

  • G.M
  • Company Seel
  • Accountant
  • Chief Engineer
  • And Production Manager

About ninety-eight percent (98%) and two present (2%) of the company’s raw materials are sources locally and internationally respectively.


1.2 Statement Of the Problem

One striking feature on the rate of production in the private sector (small scale business enterprises) is that it has been plagued with a number of managerial and production obstacle and the resultant effect is low productivity of the enterprises.

Against this background the researcher wishes to find out the causes of low productivity in a small scale business enterprise in Nigeria Limited using Adaobi Plastic Industry Nigeria Limited as a case study.


1.3 Objectives of the Study

  1. The major concern of this study is to ascertain as accurately as possible the causes of low productivity in small scale business enterprises in Nigeria: A case study of Adaobi Plastic Industry Nigeria Limited Aba.
  2. The research will also place emphasis on the employment pattern and the effort made by the Nigerian Government towards the existence and growth of the industry. The modern policy on industrialization is concerned much about the use of local materials in the development of indigenous technology.
  3. This work hopes to appraise the contribution of small scale business enterprises to this policy with the help of the following objectives:
    • To determine whether small scale business really make us of local raw- materials.
    • To determine what factors affect small- scale industry.
    • To determine whether these small-scale industries make other contribution in terms of employment creation.
    • To see to what extent these small-scale industries have come to help solve the problems of technology in Nigeria.

1.4 Research Questions

  1. Does poor management pose any serious challenges to the survival and growth of small scale industries?
  2. To what extent does lack of capital affect the progress of small scale industries in Aba State?
  3. To what extent does lack of proper planning affect the operation of small scale industries?
  4. To what extent does lack of effective government policies affect the success of small scale industries in Abia State?

1.5 Significance of the Study

This research work is intended to serve as a guide to entrepreneurs who intend to establish small-scale business industry to be aware of some of the causes of low productivity in small scale industries, with a view of avert them.

This work will entirely serve as a reference point to Adaobi Plastic Industry Limited, Aba, since the industry was used as a case study.

Beside, researching students may find this place or work useful in their further studies on factor/industrial, management problems.

This study is very important because manager should appreciate the indispensable role of their workforce and provide in their scheme of their enterprise both financial and non financial motivation and endeavour to activate their potentials at all time to enhance productivity.

The Federal Government especially Abia State Government and its agencies are not left out in what the study has to offer. The study will serve as a water shade to the causes of low productivity in small scale business enterprises in Nigeria.


1.6 Scope of the study

Productivity is a quantitative or statistically weighed measure of low efficiency given set of resources use, in achieving a given set of objectives. It therefore connotes efficiency within a defined, effectiveness context.
Productivity refers to output of an organization taking into account, the input and expected outcome geared towards the enterprise goals and objectives.

Low productivity is therefore the negative of the above concept. Low productivity implies that the total output of an organization does not measure with the input taking into account the input and the expected output. Negative motivation will surely lead to low productivity in small-scale business enterprises. Motivation is one of the most important ingredients in creating industrial harmony and making the workers performs better or higher.

It is pertinent to note that in most small-scale business enterprises, there is low productivity; it is therefore the aim of this research to find out the causes of this low productivity.


1.7 Limitations of the Study

For the purpose of the project work, the method used in the collection of data was primary and secondary sources. A particular sample and population was used before arriving at the conclusion. The population used is made of the number of workers in Adaobi plastic industry Aba.


1.8 Definition of Terms

Small Scale Business:

This is a business that is owed by one or two persons with the direct owners influence in the decision making.

Low Productivity:

This is a process whereby an organization produces goods and services that cannot satisfy the demand of their customers.

Motivation:

This is a zeal that makes a person to improve in his working ability.


Chapter Five


5.0 Summary, Conclusion and Recommendations

This chapter contains the discussion and conclusion on the major findings, implication of the findings is also discussed and suggestions for further research have been finally summarized. The research was carried out in order to find out the causes of low productivity in a small scale business enterprise, using Adaobi plastic industry Nigeria Limited as a case study.

The findings/ causes were approached by organizing the study/project and by a few personal interviews. The finding was been organized in five tables and two figures for the purpose of accepting or rejecting the working hypothesis which consist of five aspects. Besides the result of personal interview and observation elucidating the findings.
Findings in the survey to find out the causes of low productivity in the small scale business enterprise. The findings reveals that lack of motivation of workers in small scale business organization (private sector) acts as a significant milestone that retard their performance manager should appreciate the indispensable role of employee in he scheme of organizational affairs and should therefore endeavour to activate their potentials at all times.
Besides, other findings reveal that small scale business (private sector) the causes of low productivity of workers among other factors.

  1. Managerial problems
  2. Lack of motivation of workers
  3. Inadequate provision of employees’ health and safety.
  4. Poor leadership style
  5. Lack of staff training and manpower planning and development
  6. Low inventory level
  7. Job analysis problem

5.1 Introduction

Organizational productivity is a management responsibility for achieving highest level of effective performance with the least expenditure of resources through motivate and committed people. In practice therefore, it should be clearly stated as a control policy that every manager is responsible and will be held accountable for the agreed productivity assessment criteria of his organization.

Deliberate efforts must be made to ensure that the reward system of the organization is unconditionally related to performance. Jobs should be designed to be challenging but achievable and selective combined with job training to ensure that efforts could be productive in order to provide a rational basis for a good effort performance probability. Liberate efforts will be made to identify the need of workers in the private sectors both the so-called hygiene and motivating factors of the members of a team.

Besides, all essential raw materials, human and materials resources (better inventory level) must be adequate catered for.

Above all, training on the job must be given to most priority and executive like a region.


5.2 Summary of Findings

There is a continuous struggle to keep alive amidst the harsh and hostile environment in our every day existence. It is only the fittest that survives in business as in ordinary life the story is the same, so high productivity in business like is only the answer for survival.

The study of the causes of low productivity in the private sector (small scale business enterprise has been researched upon with low productivity ranges from negative motivation, poor operating condition of the company, poor leadership style, lack of spare part flow, inventory level complied with inadequate training of workers.

This distribution is made clear by Lawrence abbot in his book, “Quality and Competition” in which he asserts that “people really desire are not products but satisfying experience” organizational productivity is normally influenced in principles by a voide range of external and internal variables.

No worker performs less when he is motivated and given all the necessary ingredients for him to achieve high productivity.


5.3 Conclusion

This study is not the end in itself. It is just a contribution to the wide field of limitless human knowledge which can only be capped by occasional studies and research.

Therefore an eminent scholar has observed “Research is of great importance to a profession” it is only through research that knowledge is increased and a basis for improved practice provided.

Without the continuing impact of research findings procedures become stereotyped and the profession rapidly taken on the characteristic of trade” Stephen M. (Overy (1953).

The investigator, in agreement with all above writer therefore, offer the following suggestion for further research. Therefore, should be a careful investigation into the role of MOTIVATION AS A TOOL FOR ORGANIZATION PRODUCTIVITY IN BOTH PUBLIC AND PRIVATE SECTOR OF NIGERIA.


5.4 Recommendations

Based on the research finding from Adaobi Plastic Industry Nigeria Limited on the causes of low productivity in a small scale business enterprise in Nigeria it is deem fit that:

  1. The workers should be motivated through increase in salary and promotion.
  2. Managers should appreciate the indispensable role of employee in the scheme of organizational affairs and should activate their potentials of all times.
  3. The manager should improve in their leadership.
  4. Employee health and safety should be looked after.

The study is restricted to the cause of enterprise, a case study of Adaobi Plastic Industry Nigeria Limited Aba.
The researcher could have loved to find out the cause/solution of low productivity in the public and private sector of Nigeria economy, covered more companies but could not because of time, finance and distance.


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