THE EFFECT OF EMPLOYEES’ PERCEPTION ON ORGANIZATION PERFORMANCE AND DEVELOPMENT

CHAPTER ONE

INTRODUCTION

1.1     Background to the Study

          An organization implements the performance system to allocate rewards for the employee, provide development advice as well as to obtain their perspectives, and justice perception about their jobs, department, managers, and organization. Prior studies reveal that employee perception is a significant factor in employee acceptance and satisfaction of job. A good perception will create a positive working environment in the organization, while a negative perception will affect the company performance. These perceptions depend on the manager or supervisor’s actions and behaviors toward the employee. If the organizations are perceived as unfair, therefore, the benefits can diminish rather than enhance employee’s positive attitudes and performance.

          Perception strengthens the relationship between performance and the expectation of a satisfactory outcome through a better understanding of what the desired outcomes are and how they can be achieved as well as directs the energies of employees/work group towards the goals and objectives of the organization. Commitment to organizational goals may result from the sense of ownership or

Proprietary rights achieved through employee’s perception.

          Specifically, the perceptions of procedural unfairness can adversely affect employee’s organizational commitment, job satisfaction, trust in management, performance as well as their work related stress, organization citizenship behavior, theft, and inclination to litigate against their employer. During the last ten years, the number of studies which examined the effect of perception on employee had increased. In a study, revealed that there was a direct relationship between employee perception and employee outcomes, which is mostly job satisfaction among employees.

          Employee’s perception can affect organizational productivity positively when they are willing and committed to organizational goals. Willingness and commitment can be exhibited by employees towards their job if they are perception are taken into consideration in decision making in the organization. Thus, for management to win the commitment of employees to get their job done properly, individual employees should not be treated in isolation, but must be involved in matters concerning them and the organization. When employee’s perceptions are considered, staff absenteeism is reduced, there’s greater organizational commitment, improved performance, reduced turnover and greater job satisfaction.

          Employees’ perception has been widely recommended as one of the means of improving the quality of work life. The implied goal is to provide an environment where an individual will have the freedom and autonomy to make choices which are related to his work environment and to improve the fit between his personality and the job demands as well as between his work and non-work domains.

          This study is conducted with the aim to explore the relationship that exists between employee’s perception and their work outcomes, in the form of work performance affective commitment and turnover intention, which is specifically conducted to address the problems faced by working individuals in Nigerian National Petroleum Corporation, Abuja because one of the factors that affect employees’ work outcomes is their perception towards the practice of the organization. Therefore, Nigerian National Petroleum Corporation, Abuja can realize the current state of the employee outcomes and create strategies to improve work performance and affective organizational commitment, thus reducing employees’ turnover.

          Thus, the present study attempts to examine the perception of the employees of Nigerian National Petroleum Corporation, Abuja towards the various aspects of the organization and its impact on their work outcomes.

 

1.2 Statement of the Problem

          If employees are satisfied on the implementation of programmes in the organization, they will perceive well and exert every possible effort to carry out their responsibilities and duties assigned to them efficiently and effectively thus will make the organization to which they belong more productive and successful. For instance, in order to positively influence employee behavior & future development it has been frequently argued that, employee must experience positive reactions in the practice of the organization. Having these; differences in perceptions of employee about the existing organization system practice based on their perception of fairness is a big question in NNPC, Abuja. Currently, most employees of the organization are discussing about the issue informally, but a due attention was not taken to examine the perception of employees toward their complaints and their reactions (positive or negative) to the organization; due to this problem employees of the organization will not satisfied and their contribution throughout their employment will be reduced. This study is therefore, seeks to investigate the employee perception toward the organization and outcomes by analyzing; What potential consequences will be happened in the area of work performance, affective commitment and turn over intentions as result of employees’ different perception of practice in Nigerian National Petroleum Corporation.

 

1.3 Objectives of the Study

General Objective

          The general objective of this study is to investigate the effect of employees’ perception on organization performance and development.

Specific Objectives

          Based on the general objective of the study the following specific objectives are developed.

  1. To assess employees’ perception about practice of the organization.
  2.  To assess the level of employees’ work performance, affective organizational commitment and their intention to leave due to neglecting of their perception.
  3.  To examine the relationship between employees perception on organization performance and development.
  4.  To examine the relationship between employees perception and organizational behavior
  5. To assess the level of employees’ work outcomes in the form of work performance, affective commitment and turnover intention in associated with their perception of the current operating system.

 

1.4     Statement of Hypothesis

          For the purpose of the study, the following hypotheses were formulated:

H1: There is a significant relationship between employee perception and performance.

H0: There is no significant relationship between employee perception and performance.

H1: That employee perception has a positive effect on the organizational performance and development.

H0: That employee perception has a negative effect on the organizational performance and development.

H1: That Employee perception in an organization motivate an employee

H0: That Employee perception in an organization does not motivate an employee.

 

1.5     Scope and Limitation of the Study

          The research is conducted at Nigeria National petroleum Corporation in Abuja This study emphasized on one independent variable employees’ perception and three dependent variables work performance, affective organizational commitment, and turn over intention. Other variables being affecting and affected by the perception of employees is not addressed.         

          In the process of putting up this research, a number of  factors serves as impediments, barriers and restrictions from different areas which affect the effectiveness of this work, these includes:

  • Human beings are tending to hide what they really feel from within due to different reasons, respondents might reluctant to provide their true feelings as a result conclusions of the findings might be affected. Some participants may tease whiling responding.
  • Lack of experience was also affected the research work. Absence of empirical studies conducted is another limitation.
  • Since the organization has branches at zonal levels, it is limited only to NNPC, Abuja as a result the generalization to the whole organization is difficult.
  • Time factor: The project work have to be carried out within a semester in combination with class works, assignment, mid-test and examination of which within stipulated time the work must be completed. This becomes a task that must be completed by the researcher.

 

1.6     Definitions of Operational Terms

Affective commitment: The tendency of employee to stay with an organization that is based on an emotional attachment

Perception: The process by which an individual gives meaning to the environment.

Turn over intention: is a measurement of whether an organization’s employees plan to leave their positions.

Work Performance: an accomplishment of assigned tasks to achieving an organization’s goal.

 

1.7 Plan of the study

          The research is to examine the effect of perception on organization performance and productivity in Nigerian National Petroleum Corporation, Abuja. The study includes five major chapters.

          The first chapter is introductory part which consists of back ground of the study, statement of the problem, objectives of the study, Hypothesis of the study, theoretical framework, scope and limitation of the study, operational definitions, and plan of the study.

          The second chapter contains literature review, in this section, theoretical and empirical finding of previous studies related to the topic are reviewed.

          The third chapter includes the research design& Methodology, Source of data, sampling design, method of data analysis tools employed are included under this section.

          The fourth chapter deals with data analysis and discussion and testing of hypothesis.

          The fifth chapter deals with summary, conclusion & recommendation.


 

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