An Assessment on Job Satisfaction and Employee Performance in Selected Enugu Electricity Distribution Company (EEDC), Enugu State.

An Assessment on Job Satisfaction and Employee Performance in Selected Enugu Electricity Distribution Company (EEDC), Enugu State.

Nwagbala Stella Chinelo PhD¹, Ifeoma Pethronila Okafor PhD^2
1Department of Business Administration, Faculty of Management Science, Nnamdi Azikiwe University, Awka Nigeria
²Department of Business Administration & Management, Federal Polytechnic Oko, Anambra State, Nigeria

DOI: https://doi.org/10.47772/IJRISS.2023.7474

 Received: 03 April 2023; Accepted: 14 April 2023; Published: 11 May 2023

ABSTRACT

Staff of EEDC seems to express their dissatisfaction by engaging in unethical practices with customer for some payment such as illegal reconnection as against the disconnection carried out by the firm due to nonpayment of bills. This study determined the relationship that exists between job satisfaction and employee performance of Enugu Electrical Distribution Company, Enugu State. The study adopted descriptive survey research design and structured questionnaire was used to collect data from 56 staff which are representatives of Abakpa Service Centre and Urban Service Centre. Arithmetic mean was used to analyze the responses of respondents while formulated hypotheses were tested using Pearson Product Moment Correlation Coefficient via Statistical Packages for Social Sciences (SPSS version 23).  Findings revealed significant relationship between job satisfaction and employee performance in Enugu Electricity Distribution Company (EEDC), Enugu State by indicating positive relationship between reward system and employee loyalty; between effective training and task accomplishment. The study concluded that job satisfaction is necessary for employee performance and also deduced that reward is a factor that compels employee compliance to job details and organizational policies. Therefore, the study recommended that management should adopt variable reward system rather than repeating a reward approach and further advised that there is need to adopt both on specialized training programs for staff so as to give them a career path on the job. This will improve employee capacity to complete task.

Keywords: Job satisfaction, Reward system, Employee loyalty, Employee performance.

INTRODUCTION

Job satisfaction seems to be a major factor in the relationship between business entity and employee performance as the degree of employee satisfaction may affect the level of performance. Employees may be working with an organization but may not be satisfied with the job conditions surrounding employment terms. When employees experience dissatisfaction they tend to engage in unethical practices such as pilfering organizational properties, absenteeism, grievance, conflict, delaying task completion, poor work attitude and unethical practices and in turn all these affect the firm (Nwagbala, 2018). Job satisfaction is assumed as the essential factor of the effectiveness of an organization, therefore, it is important to manage employees who have needs and wants both. By understanding employees and their needs and wants, job satisfaction can be used as good parameters of employee effectiveness (Robbins & Judge, 2013).

Enugu Electricity Distribution Company came into existence due to the Electricity Reform Act of 2005 which unbundled PHCN into 11 Distribution Companies, 1 Transmission Company and 6 Generation Companies. The Act gave birth to Enugu Electricity Distribution Company (EEDC). Enugu Electricity Distribution Company is an electricity power distribution firm that is in charge of power supply and power facility maintenance such as transformer installation and maintenance as well as resolving faulty power supply problems. The firm tends to deal with individuals, business organization and non-profit making organization and community members as customers. The firm meet its expectation of power supply with the aid of employee both electrical experts and administrative staff. There seems to gap in the attitude of staff towards organizational policies as it was reported during a survey visitation by the researcher to Enugu Electricity Distribution Company at Abakpa District that some of the staff exhibit some forms of dis-satisfactory behavior such as stealing of organizational electrical materials and selling it to some private electric firms outside the organization, this seems to be a challenging issue to management. according to another report, there was also a case in Abapkpa Service Centre at Abakpa District when some individuals were suing for reconnection without due procedure after they were disconnected by staff of EEDC, the result of the investigation revealed that some staff of EEDC collect some amount of money to reconnect the defaulters. The nature of the report shows that this staffs who engages in unethical behavior are yet to gain satisfaction on the job as it affects the level of employee loyalty to the activities of the organization. A study of job satisfaction factor was determined by Herzberg (1969 cited in Robbins & Judge, 2013) in the two factors theory, were are there two factors that affect job satisfaction and job dissatisfaction which are hygiene factors such as pay, and job security, and motivation factors such as achievement, and recognition based on his recent research among knowledge workers on what drives people in work (Aworemi, Abdul & Durowcju, 2011).

The nature of task carried out by staff of selected Enugu Electricity Distribution Company requires effective training as most of its functions requires some level of skilled and specialized individuals. An incompetent staff cannot be satisfied on the job due to lack of knowledge, there is probability of poor task accomplishment, low job morale and non-creative employee. Employee may not enjoy the job if there is no adequate knowledge of what is expected as well as the skills needed to do the job. It was observed from the report of staff from Abakpa District that training programs are organized for new recruits, only as old staff is considered to be experts on the job. This may affect employee effectiveness in terms of adapting.

The gap in job satisfaction and unethical practices prompted the study of the relationship between job satisfaction and employee performance in Enugu Electricity Distribution Company, Enugu State.

Statement of the Problem

This study was informed by the behavioral display of staff working with Enugu Electricity Distribution Company, Enugu State as it was observed that some of these staff expresses dissatisfaction by engaging in unethical practices with customer for some payment such as illegal reconnection as against the disconnection carried out by the firm due to nonpayment of bills. It seems that the management of EEDC, Enugu State is yet to adopt inquiry into what employee needs before thinking of satisfying staff in the firm. This is not in line with the statement of Robbins and Judge (2013) by understanding employees and their needs and wants, job satisfaction can be used as good parameters of employee effectiveness. The result of the survey visitation conducted by the researcher in EEDC, Abakpa District, Enugu State revealed that the firm’s reward system favours’ senior staff more and so the junior staff seize every opportunity to compensate themselves.

The level of satisfaction seems to affect the degree of employee loyalty in the firm.Due to the nature of job description of workers in Enugu Electrical Distribution Company, there seems to be high need for training such as expertise training, safety training and maintenance training among others for staff effectiveness on the job. Employee training is any attempt to improve an employee’s current or future performance by increasing the employee’s skills and knowledge (Obi and Zakari, 2017). Staff of Urban Service Centre at Abakpa District of EEDC, Enugu State reported that training programs is restricted for new recruits as it is assumed that old staff knows the job. The training concern by management may affect the effectiveness of staff as it restricts them on the job.

Objectives of the Study

The broad objective of this study is to investigate the type of relationship between job satisfaction and employee performance in Enugu Electricity Distribution Company (EEDC), Enugu State. The specific objectives are;

1. To determine the nature of relationship that exists between reward system and employee loyalty in Enugu Electricity Distribution Company (EEDC), Enugu State.
2. To investigate the degree of relationship that exists between effective training and task accomplishment in Enugu Electricity Distribution Company (EEDC), Enugu State.

 Research Questions

The following are the research questions for the study;

1. What nature of relationship that exists between reward system and employee loyalty in Enugu Electricity Distribution Company (EEDC), Enugu State?
2. What degree of relationship exists between effective training and task accomplishment in Enugu Electricity Distribution Company (EEDC), Enugu State?

Research Hypotheses

The following hypotheses were formulated for the study;

Ho₁: There is no significant relationship between reward system and employee loyalty in Enugu Electricity Distribution Company (EEDC), Enugu State.

Ho₂: There is no significant relationship between effective training and task accomplishment in Enugu Electricity Distribution Company (EEDC), Enugu State.

 Scope of the Study

The content scope of the study is “job satisfaction and employee performance” and the study focused on carrying out the research in Selected Enugu Electricity Distribution Company (EEDC), Enugu State. The study focused on selected EEDC in Enugu State.

CONCEPTUAL CLARIFICATIONS

Concept of Job Satisfaction

Job satisfaction is assumed as the essential factor of the effectiveness of an organization, therefore, it is important to manage employees who have needs and wants both. By understanding employees and their needs and wants, job satisfaction can be used as good parameters of employee effectiveness (Robbins & Judge, 2013). Ozturk (2010), defined job satisfaction as the emotional feeling of gratification that is experienced by an employee due to many factors of work.

 Reward System

Rewards are an ever-present and always controversial feature of organizational life. Hartie (2015) says that reward is an important part of the feedback loop in performance management. Money is not necessarily the only reward. He says that a reward will only have a positive effect if the individual value the reward and the reward is appropriate to the effort that was put in and to the achievement. Hartie (2015) mention a wide range of types of reward: praise, promotion, individual business, merit pay, team business, prizes and special awards.

 Effective Training

Employee training is any attempt to improve an employee’s current or future performance by increasing the employee’s skills and knowledge (Obi and Zakari, 2017). The survival of any organization is closely tied to the quality of its human resources. If organizational goals and objectives must be achieved, and its perpetuity guaranteed, then the training and development of its work force must be given a priority (Akanbi and Adekunji, 2016). Obi and Zakari (2017) are also of the opinion that employee training is a process which leads to the formation of values and attitudes, the development of skills and knowledge of people, thereby contributing to the enhancement or improvement of the quality of the nation’s personnel, on which a nation ultimately depends.

 Employee Performance

Employee performance has always been a major challenge in organizational management and adopting effective ways to motivate employees to achieve and deliver higher job performance as well as increase the organizational competitiveness is the main objective of every business organisation. Ogbulafor (2011) suggested that the deteriorating level employee performance in Nigerian institutions is fast becoming a serious threat to survival of organisation in Nigeria which needs to be addressed urgently. It is therefore believed that employee performance is instrumental to organisational growth and profitability.

Employee Loyalty

The foremost source of employee loyalty to an organization comes from their emotional attachment to the organization. Numerous studies show that organizations with strong emotional attachment from employees have much lower turnover rates and absenteeism rates, and their employees have a stronger motivation to work (Arokiasam, Tat & Abdullah, 2013). The conceptual definition of employee loyalty in this study refers to that “employees feel good and satisfied with the working environment and the work itself, thereby heightening their allegiance to the organization, and bringing forth their positive commitment towards the organization.

Theoretical Review

The study was anchored on two factor theory by Herzberg (1964). The study proposes that there are set of factors which if absent, cause dissatisfaction. They are related to job context, job environment and extrinsic to the job itself (hygiene or maintenance factors). The other set of factors, if present stimulate the individual to superior effort and performance (motivators or growth factors). The two factor theory does not deny the importance of the hygiene factors, but stresses their importance to maintain a healthy work environment. If absent, even strong growth factors would not compensate for their lack. The Herzberg theory has two unique features. In the first place, it stresses that some job factors lead to satisfaction (motivation). Secondly the other factors can only prevent dissatisfaction (hygiene), but cannot lead to job satisfaction. Herzberg proposed the following theoretical relationship between motivation needs and hygiene needs; (i) when motivator needs are met, workers will be satisfied. When these needs are not met workers will not be satisfied and (ii) when hygiene needs are met workers will not be satisfied, when these needs are not met, workers will be dissatisfied

 In a bid to mentioning what encourages performance, the study emphasizes that quality training, job enrichment which can be reward system and safety. The theory supports the study through its satisfier and dissatisfier variables.

Empirical Review

Anton,Miro& Maria (2017) examined the relationship between employee engagement and job satisfaction. They found out the similar conclusion: “the more enthusiastic the workers are the better operating results they achieve for the company”. An occasional sample of 594 respondents who are employed in the public and non-public sector in Slovenia was used for the purpose of this study. The main goal of the research was to determine whether (and how) the employee engagement influences job satisfaction. A written survey was conducted from 4 January 2016 to 14 March 2016. IBM SPSS 20 was used for the statistical analysis. The results confirmed that the relationship between employee engagement and job satisfaction is positive and statistically significant (5 % significance level), based on the linear regression F (1, 583) =296.14, p-value = 0.000, R-square = 0.337. The results also showed that there is no statistically significant difference between employee engagement and gender and there is no statistically significant difference between job satisfaction and gender.

Danica (2016) explored the link between job satisfaction and organizational performance and determined if there is an empirically provable relationship between these two variables, and the direction and the intensity of this relationship. Empirical research was conducted on a research sample of 40 large- and medium-sized Croatian companies, with 5806 employees surveyed. The results of the study showed that the existence of a clear link between employees’ job satisfaction and organizational performance in both directions, but with pretty weak intensity. Detailed analysis showed that the connection between job satisfaction and organizational performance is stronger than the connection between organizational performance and job satisfaction. It could be stated that job satisfaction determines organizational performance, rather than organizational performance determining job satisfaction.

Preeti (2014) conducted a study on the effect of Employee Engagement on Job Satisfaction in IT Sector. Primary as well as secondary data has been used to carry out the research. The study has been carried out on officers as well as the clerks of IT sector. Descriptive research design was adopted for the study. a sample of 342 staff was selected and structured questionnaire was used to elicit data from the sample. The sample used regression analysis to analyze the data collected. The findings came out and this is identified that among the former work motivation could be improved through increasing job authority and accountability. At the clerical level, rewards and sanctions are significantly associated with job involvement.

Nwagbala (2018) examines the effect of employee reward on job performance in Anambra State. Descriptive survey design was adopted for the study. A stratified sampling technique was used to determine the study sample. A sample size of 315 employees of small manufacturing firm in Anambra State was sampled. Hypotheses were tested using Pearson Product Moment Correlation. The results of the study revealed that there is a strong effect of job satisfaction on job performance. There is also a moderately weak effect of employees’ commitment on job performance and also strong influence of employee loyalty on work performance.

Ranjan& Mishra (2017) impact of rewards on employee performance of Indian Oil Corporation, Patna region. The study measured the impact of rewards (Intrinsic and Extrinsic) on performance of employee. The respondents were the employees at managerial level and total numbers were 102. Descriptive statistics based frequency tables and graphs were used in the study to provide information on demographic variables. The results were investigated in terms of descriptive statistics followed by inferential statistics on the variables. A total of 115 questionnaires were distributed to employees of the Indian Oil Corporation and a total of 102 employees completed the questionnaire properly. The result indicated that there is a statistical significant relationship between all of the independent variables with dependent variables employee work performance and all the independent variables have a positive influence on employee work performance.

Ibrar& khan (2015) investigated how to employee performance impact on reward in private school. The study also aimed to show how to employee improve the performance has in reward system. Questionnaire was used as instrument and 100 questionnaires were used to check the respondent’s opinion. Descriptive analysis, correlation and multiple regression tests were applied for data analysis. The study concluded that there is positive relationship between rewards (extrinsic and intrinsic) and employee’s job performance. Most of the organizations implement rewards system to increase the job performance and job satisfaction.

 Gap in Literature

Several studies have been carried out on job engagement and job satisfaction, also few studies focused on the measurement of job satisfaction in organization as well as organizational reward system but no study sought to investigate the type of relationship between job satisfaction and employee performance in Enugu Electricity Distribution Company (EEDC), Enugu State through variable measurement; the study aimed to fill the gap in the variables between job satisfaction and employee performance in the following area below.

No study aimed to determine the nature of relationship that exists between reward system and employee loyalty in Enugu Electricity Distribution Company (EEDC), Enugu State.

Furthermore, studies failed to investigate the degree of relationship that exists between effective training and task accomplishment in Enugu Electricity Distribution Company (EEDC), Enugu State.

MATERIALS AND METHODS

The research design adopted in this study is Descriptive survey research design as this study will involve eliciting data directly from the respondents, it involves seeking the relationship between the variable under study. The study focused on the description of the variables characteristics as well as the extent of relationship that exists among the variables as mentioned in the study.The population of the study comprises of Manager and staff of Enugu Electrical Distribution Company (EEDC), Enugu State. According to the Personnel Officer of Abakpa District, there are 56 Staff which comprises Abakpa Service Centre 30 and Urban Service Centre, Trans Ekulu 26 making a total of 56 (Personnel Staff of Abakpa District, 2021). Owing to the report from Personnel Department of Head office of the Enugu Distribution Company, the firm operates on district basis and the district offices oversees the offices of the service centers under it. Complete Enumeration Technique was used to determine the sample size. Since the population size is within the control capacity of the researcher. The study adopted Simple Random Sampling Technique because it aimed to give equal opportunity to all members of the population to be in the sample.  The questionnaire was divided in to two sections; the first section is based on the bio data of the respondents. The data relating to the bio data of respondents were analyzed using frequency and percentage tables rating while the second section which is based on the questions relating to the questionnaire was analyzed using descriptive statistics (mean) and programmed rating method which is based on the outcome of the mean (strongly agreed, agreed, disagree, strongly disagree and undecided). Pearson product Moment Correlation was used to test the stated hypotheses of the study.

Table 4.1.0 Response Rate

Source: Field Survey, 2022.

Table 4.1.0 above shows that a total of 56 copies of questionnaire were distributed, 54 (96 %) were collected and 2 (4%) were not retrieved.

Table 4.1.1 Gender

Source: Field Survey, 2022.

Table 4.1.1 above shows that 45 (83%) of the respondents are male and 9 (17%) of the respondents are female.

Table 4.1.2  Age 

Source: Field Survey, 2022.

Table 4.1.2 above shows that 39 (72%) fall within the age bracket of 21 – 40, 15 (28%) fall within the age bracket of 41 – 60.

Table 4.1.3 Marital Status

Source: Field Survey, 2022.

Table 4.1.3 above shows that 35 (64%) of the respondents are married while 19 (36%) of the respondents are not married.

Table 4.1.4 Qualification

Source: Field Survey, 2022.

Table 4.1.4 above shows that 25 (46%) of the respondents are DIP/NCE holders, 29 (54%) are BSC/HND holders.

Table 4.1.5 Official Position

Source: Field Survey, 2022.

Table 4.1.5 above shows that 11 (20%) of the respondents are senior staff, 43 (80%) are junior staff.

Table 4.1.6   Years of Service

Source: Field Survey, 2022.

Table 4.1.6 above shows that 17 (31%) of the respondents have been working for the organization for a period of less than 5 years, 25 (46%) have been working for the organization for the period of 6-10years, 12 (22%) have been working for 11-15years while 2 (3%) have been working for 16years and above.

Analysis of Data Related to Research Questions

Decision rule

The necessary decision was made with reference to the mean rating of research questions. The rating in the questionnaire is strongly agree (5points), agree (4points), disagree (3points), strongly disagree (2points), Undecided (1point). The average rating of options in the questionnaire is (5+4+3+2+1)/5=3.0. Hence the decision in the analysis of response is any mean response of below 3.0 will be considered disagreed, while mean response of 3.0 and above will be considered as agreed.

Question 1: What nature of relationship that exists between reward system and employee loyalty in Enugu Electricity Distribution Company (EEDC), Enugu State?

Table 4.2.1 Responses to questions in relation to the relationship between reward system and employee loyalty in Enugu Electricity Distribution Company (EEDC), Enugu State.

Source, Computation of Data, 2022.

Table 4.2.1 above revealed respondent’s response to questions relating to relationship between reward system and employee loyalty with a grand mean of 2.92 for questions relating to reward system and 3.61 for employee loyalty.

Question 2: What degree of relationship exists between effective training and task accomplishment in Enugu Electricity Distribution Company (EEDC), Enugu State?

Table 4.2.2 Responses to questions in relation type of relationship between effective training and task accomplishment in Enugu Electricity Distribution Company (EEDC), Enugu State

Source, computation of data, 2022.

Table 4.2.2 above revealed that respondents agree to questions relating to the relationship between effective training and task accomplishment with a mean of 3.41 for questions under effective training and 3.57 for questions under task accomplishment.

Test of Hypotheses

Test of hypothesis one

Ho₁: There is no significant relationship between reward system and employee loyalty in Enugu Electricity Distribution Company (EEDC), Enugu State.

Table 4.3.1 Correlation between reward system and employee loyalty.

Source, **. Correlation is significant at the 0.01 level (2-tailed).

Result Summary

Table 4.3.1 shows that there is positive relationship between reward system and employee loyalty in Enugu Electricity Distribution Company (EEDC), Enugu State with r=0.371, n=54 and p value of 0.174 (p<0.5). Therefore, we reject the null hypothesis and conclude that there is positive relationship between reward system and employee loyalty in Enugu Electricity Distribution Company (EEDC), Enugu State.

 Test of Hypothesis Two

Ho₂: There is no significant relationship between effective training and task accomplishment in Enugu Electricity Distribution Company (EEDC), Enugu State.

Table 4.3.2 Correlation between effective training and task accomplishment.

Source, **. Correlation is significant at the 0.01 level (2-tailed).

Result Summary

Table 4.3.2 shows that there is significant relationship between effective training and task accomplishment with r=0.883, n=54 and p value of 0.042 (p<0.5). Therefore, we accept the alternate Hypothesis and conclude that there is significant positive relationship between effective training and task accomplishment in Enugu Electricity Distribution Company (EEDC), Enugu State.

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

 Summary of Findings

The test of hypotheses revealed significant relationship between job satisfaction and employee performance in Enugu Electricity Distribution Company (EEDC), Enugu State through the following findings;

1. Table 4.3.1 shows that there is positive relationship between reward system and employee loyalty in Enugu Electricity Distribution Company (EEDC), Enugu State with r=0.371, n=54 and p value of 0.174 (p<0.5). This implies that reward system affects employee loyalty on the job.
2. Table 4.3.2 shows that there is significant relationship between effective training and task accomplishment with r=0.883, n=54 and p value of 0.042. This implies that consistent employee training could result in increasing employees’ capacity to accomplish task.

 Conclusion

Based on the findings of this study, it can be concluded that job satisfaction is necessary for employee performance. When a factor of job satisfaction such as employee reward is removed from the job, there is likely to be fall in employee’s performance. Employee can put in their best on the job if they are comfortable with the job. It can also be deduced that reward is a factor that compels employee compliance to job details and organizational policies. A staff could act in an acceptable way or perform a task in an outstanding way if there is reward in view. It can also be deduced that effective employee training increase employee capacity on the job.

Recommendations

The following were recommended by the study;

1. Management should adopt variable reward system rather than repeating a reward approach. This will compel employees to work in anticipation of surprise reward.
2. There is need to adopt both on specialized training programs for staff so as to give them a career path on the job. This will improve employee capacity to complete task.

Suggestions for further Studies

The following were suggested for further Studies;

1. Capacity building and performance of EEDC.
2. Variable compensation and employee commitment in EEDC.

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