Academic journal article International Journal of Psychological Studies

Organisational Variables & Effective Performance of Employees in Oil & Gas Section: An Empirical Investigation

Academic journal article International Journal of Psychological Studies

Organisational Variables & Effective Performance of Employees in Oil & Gas Section: An Empirical Investigation

Article excerpt


Formal work organizations are created to produce goods and services and to pursue dominant goals that individuals acting alone cannot achieve. However, the importance of some factors in the achievement of this objective cannot be overemphasized. This study examines the contribution of work environment, organisational culture, to employees' job performance. Ex-post facto research design was adopted. Proportional stratified and simple random sampling techniques were utilized to select 500 participants from three oil companies in River State, Nigeria (Agip = 150, Schlumberger = 185, Nigerian Agip exploration = 165). Two standardized self-report questionnaires were used for data generation. Two hypotheses were raised and tested using multiple regression and t-test statistics. Findings revealed among others that the two predictor variables (work environment and organisational culture) combined and individually, predicted the criterion variable (job performance). Based on the findings of this study, a number of recommendations were made among which are: employers of labour should provide suitable work environment for increased job performance of employees; and make the organizational culture favourable so as to enhance productivity of the work force.

Keywords: work environment, organisational culture, job performance, oil industry

1. Introduction

The importance of petroleum resource to the development of Nigeria as a nation is clearly reflected in the fact that it remains the goose that lay the golden egg for the Nation's economy as well as the supreme foreign exchange earner; contributing over 80% of government revenues and helps in the development of Nigeria's infrastructure and other industries (Anya, 2002; Chukwu, 2002; Garry & Karl, 2003); thus, it is not an overstatement to say that petroleum production is as important to Nigerian economy as oxygen is to human life. Presently, Nigeria is the leading oil and gas producer in Africa (NNPC, 2004). The country is ranked 13th largest oil producer in the world; and 6th largest oil producer among the organization of petroleum exporting countries (OPEC). It ranks 5th in gas reserves which make the country more of a gas rather than an oil country (CBN, 2002). Indeed, Nigeria is often described as a gas zone with some oil in it (Assael, 2000; Ekpu, 2004). Currently, Nigeria's crude oil production is about 2.3 million barrels per day; and it is expected to be 2.5 million (NNPC, 2004). The oil and gas industry has been described as the nation's life wire (Adidu & Ogbene, 2005; Adegbulugbe, 2002).

However, due largely to the technical nature of exploration and production, the sector depends substantially on imported technology, equipment and manpower for its operations. As estimated, $8 billion is spent annually on servicing the industry operation such as: fabrication, engineering procurement construction (EPC), front end engineering design (FEED), conceptual design and seismic studies. This figure is projected to hit $15 billion within the next few years (Agbebaku & Edeko, 2005). Regrettably, despite this huge sum of money spent in servicing the industry, only a very little proportion of the accruable profit is spent in Nigeria. Majority of the amounts are repatriated abroad, where most of the equipments are manufactured; and providing employment opportunities for citizens of other countries. The major reason for this situation has been attributed to low local content (LC), a situation where most of the service contracts are awarded to foreign firms because local indigenous firms lack the requisite skills, technical expertise, manpower and production capacity and capability to compete favourably (Ekpu, 2004). Adidu et al. (2005) and Agbebaku et al. (2005) expanded the above reasons for low local content in Nigeria to include: low technological capacity, lack of funding from financial institutions, inadequate and incoherent polices/legislations; inadequate infrastructures, unfavourable business climate etc. …

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