Low Productivity In Our Public Organizations And Its Effect On The Economy

Project and Seminar Material for Business Administration and Management BAM

Low Productivity In Our Public Organizations And Its Effect On The Economy


Over the years, many things have been said about low productivity in public organization. The main purpose of this research is to X-ray the effects of low productivity in public organization. In attempt to make this a reality. SUNRISE FLOUR MILL LTD. EMENE (MACKDAVOUS GROUPS) was also understudied.

The result of the findings by the researchers shows that low productivity is either inadequate or not strictly implemented. This problem of implementation is occasional mostly by the government interference. It was also discovered that incompetent personnel were employed at management level.

For further findings and also based on the above problems, I sincerely recommend as follows:

The government should allow a free hand to the management of public organizations.

The government will give enough grants to enable the management personnel to attend workshops, seminars, conferences, etc to enrich their managerial acumen.

Chapter One

1.0 Introduction

1.1 Background of the Subject Matter

The term low productivity refers to the inability of our public organization to produce up to installed capacity. It is when the organization produces up to installed capacity or something nearer that one can say that such organization is doing well.

Nigeria is blessed with fiscal and human resources necessary for industrial development and buoyant economy. It has a large and e3xpanding consumption market as well as an emerging and aggressive group capable of exploiting opportunitie4is in both domestic and foreign market.

The growth of the manufacturing sectors was rapid in the early sixties and seventies. For instance the growth was 11% between 1962 and 1966 and 10% between 1970 and 1973. it share of grass national product however increased by only 2.15% between 1962 and 1972 partly because of the predominance of the mining and oil sector.

Nigeria the 6th world producers of oil and the first in Africa still import fuel from other countries. An average Nigerian is now used to the crises. In crisis is no longer news in our country and still we have four refineries.

This seemingly unstoppable low productivity in our public organization have had an adverse effect in our national economy, for instance we are the greatest producer in Africa. This scarce foreign reserve is what we could have used in importing other goods that are scarce here in our country.

The low productivity in our public organization have made our development plans to returned up side down and had equally put our economy in a doldrums.

A country richness is measured by the amount it has in its foreign reserve, our economy have been stagnant for sometime now partly because of our wasteful nature.

We establish organization without first of all planning very well, so that we would have taken all constraints that will militant against full production. E.g. Raw material into consideration.

1.2 Problems Associated with the Subject Matter

Low productivity in our public organization dominates discussion in many circles in Nigeria today.

Public organizations have continued to witness increase low productivity in recent time. It was reported by Nigeria economic society and manufacturers association of Nigeria that public organizations lost between N5-N10 billion naira between 1985-1990.

In 1994 about N460.3 million was lost by public organization due to low productivity while 1995 with easel the loss of about n502.8 million by these organization due to the same problem showing an increase of about N42.3 million. While these organization are busy working out means of increasing to productivity, the problems continue to increase unable it will be pointed out here that the results or implications of these are damaging. Low productivity leads to unnecessary lost of huge amount of money. These losses of money by these organizations cripple the economy of the nation. Again every incidence of low productivity reduces public confidence on public organization.

Furthermore, the low productivity in public organizations delays or blows down the industrial development in this country. People shy away from investing their money in their companies for fear of low return of investment.

It is therefore, the adverse position, low productivity in public organizations places in our economy that crops up this project.

1.3 Objectives of the Study

In view of the above mentioned problems, it becomes obvious that if nothing positive is due to check these incidence of low productivity, it could load to unpleasant consequences on the economy.

The objective of these research work are therefore to carry out survey and investigation on this canker worm that has eaten deep on our public organization. The study will also determine the causes and the basic factors that are raised to low productivity in our public organization.

The objectives of the study will also be concerned with looking into possible effects of low productivity on the operation of the economy.

Furthermore, to examine the various management and government devices geared towards eliminating or controlling low productivity.

Finally, to present recommendation or solutions that may help in reducing or eliminating low productivity.

1.4 Research Hypotheses

This thesis is guided by the following hypotheses:

  1. H0: Monetization policy has not been fully implemented among public organizations in Nigeria.
    H1: Monetization policy has been fully implemented among public organizations in Nigeria.
  2. H0: Low productivity has not significantly affected the economy of Nigeria.
    H1: Low productivity has significantly affected the economy of Nigeria

1.5 Significance of the Study

Low productivity in our public organization like canker worm has eaten deep into the fabrics of our various industries. In view of that, effort has been made in this research work and all avenues exploited so as to proffer solution on reduction of low productivity.

More importantly public organization in Nigeria will derive great assistance from the work in finding solution to the low production problem facing them. This they can do by adopting and implementing the various suggestions and recommending the various suggestions and recommendations made in the study.

The research will also be more important to those students carrying out our research on how productivity in government establishment. Government will equally benefit from this work.

Therefore, this research will be for mutual benefit of managers, shareholders, students, government and general public whose confidence on public organization will once be restored.

1.6 Scope and Limitation of the Study

This study centers on low productivity in public organizations and its effect on the economy, with particular reference to Sunrise Flour Mill Ltd. Emene (mackdavous groups). This research work met a lot of difficulties first and foremost, most visited were reluctant in given out statistical data on low productivity being experienced by the organization. None of these establishment denied producing below installed capacity, but they refused to let such vital information out. According to them, such piece of information is not for external consumption.

Secondly, that any attempt to disclose the official data will not be taken kindly by the government.

Thirdly, that any attempt to disclose the official data will not be taken kindly by the organization towards that person.

With the above definition, the researchers find it very hard not to concentrate on theoretical analysis of low productivity in public organization.

Another problem encountered in the cause of gathering data for this research is the high cost of materials and transportation accessioned by high inflation and fuel scarcity in the country. The scope of the research is limited to the study of some selected companies in Enugu state which are just few of many public organizations.
The study was to be limited to these organizations due to time and cost constraints

1.7 Definition of Terms


Situated, placed, or occurring not far above the ground, floor, or base


Productivity describes various measures of the efficiency of production. A productivity measure is expressed as the ratio of output to inputs used in a production process, i.e. output per unit of input

Low productivity:

Productivity, in economics, the output of any aspect of production per unit of input. It is a measure of the output of a worker, machine, or an entire national economy in the creation of goods and services to produce wealth.

Public Organization:

In general terms, the public sector consists of governments and all publicly controlled or publicly funded agencies, enterprises, and other entities that deliver public programs, goods, or services. It is not, however, always clear whether any particular organization should be included under that umbrella.


Effect is defined as a change which is a result or consequence of an action or other cause or cause (something) to happen; bring about.


An economy (from Greek οίκος – “household” and νέμoμαι – “manage”) is an area of the production, distribution, or trade, and consumption of goods and services by different agents. Understood in its broadest sense, ‘The economy is defined as a social domain that emphasizes the practices, discourses, and material expressions associated with the production, use, and management of resources

1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

  • Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study.
  • Chapter two highlight the theoretical framework on which the study is based, thus the review of related literature.
  • Chapter three deals on the research design and methodology adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion and also recommendations made of the study.

Chapter Five

Summary Conclusion and Recommendation

5.1 Introduction

It is pertinent to note that this research was aimed at assessing the level at which motivation could increase productivity in a public organization, thus the topic “low productivity in our public organizations and its effect on the economy”.

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations were made which in the opinion of the researcher will be of benefits in addressing the challenges associated with low productivity in public in Nigeria.

5.2 Summary

The study found out that groups of workers from Sunrise Flour Mill Ltd. Emene (Mackdavous Groups)do express substantial differences in their dissatisfaction towards the absence of certain incentives that may affect their productivity levels. These workers significantly differed in terms of the dissatisfaction they suffered from the non- availability of both financial and non- financial incentives (i.e. time limits’ incentives, incentives that pertain to subordinate participation in goal setting, and incentives on praise) that the company is presently providing for them. However, these groups did not show any significant difference in terms of their dissatisfaction towards the need for them to get some feedback from their bosses on tasks assigned to them. In other words, they were insensitive to the incentive for feedback in spite of the differences in productivity levels.

The study helped to identify ten major factors affecting productivity of manufacturing organizations and the analysis showed that there is a general agreement between respondents on the ranking of the factors. Moreover, analysis of the collected data showed closer values in median, mean and mode and also except for two causes other causes got low values for standard deviation. This assured the quality of the collected data as well as a low degree of dispersion resulting in reliable results. When closely scrutinizing these results, few causes such as ineffective use of resources (equipment, workers, etc.), poor information flow and non-productive /unnecessary activities seem to be the key causes which hinder the productivity. What follows is a brief discussion of the ranking of the relative importance of primary causes for low productivity.

5.3 Conclusion

Productivity is considered the main value adding strategy within an organization.

Therefore, productivity issues and related problems faced by manufacturing industry will need to be considered and viewed from various angles. This argument was not universally well received especially in developing countries like Sri Lanka. Therefore, the evidence suggests that the low productivity is a critical issue that hinder economic growth of developing countries. Most of the time low productivity in manufacturing sector of South Asian region is attributable to labour unrest, poor working attitudes, inefficient organizational culture/management, etc. which are directly related to labour productivity. Interestingly, there is a little empirical research evidence regarding productivity related studies conducted in Sri Lanka to assess the validity of those generally accepted root causes of low productivity. This study explores the primary causes for low productivity inSunrise Flour Mill Ltd. Emene (Mackdavous Groups). A literature review on the productivity in these organizations and the causes of low productivity provided a comprehensive understanding and also a basis for launching specific investigations in Sunrise Flour Mill Ltd. Emene (Mackdavous Groups). In the context of this study, ineffective use of resources, poor information flow and non-productive activities have been identified as the key factors which are hindering the productivity and frequently prevalent in Sunrise Flour Mill Ltd. Emene (Mackdavous Groups). Hence, this study disputes the long established perception that the low labour productivity contributes more towards overall low productivity in the manufacturing sector. Therefore, a strategic realignment in planning for productivity improvement is necessary to evolve suitable practices to address the identified main contributing causes. This study does not intend to provide a detailed account of different sub-causes of each primary cause or propose solutions to specific causes hindering productivity. It is believed that the factors identified in this survey will provide a basis for future research studies to improve productivity of Sunrise Flour Mill Ltd. Emene (Mackdavous Groups) andthe country as a whole.

5.4 Recommendations

Following the findings of this study it is recommended that management of Sunrise Flour Mill Ltd. Emene (Mackdavous Groups) must be more rigorous in its recruitment and selection of personnel that fills vacant positions in the future. This recommendation is occasioned by the need to reduce incidences of bringing “deadwoods” and “egocentric servants” into their employment.

They must therefore ensure that only those that would positively respond to the performance incentives that they can provide are employed by the company in the future. There is no doubt that these persons would be more apt for jobs in the public sector.

It is also recommended that in order to retain such persons in their employment, the company should be able to provide them with the optimal level of incentives that they require for the sustainability of themselves based on the prevailing economic and social realities of the time.

Finally, we suggest that future studies should make use of larger sample sizes cutting across several LGAs in Nigeria.

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