EFFECT OF INTERNAL ENVIRONMENT ON EMPLOYEE PERFORMANCE IN POWER HOLDING COMPANY OF NIGERIA (PHCN), ENUGU
ABSTRACT
The aim of this study was to assess the Effect of Internal Environment on Employee Performance in PHCN, Enugu distribution Company. The study defined research objectives, research questions. The study used structured questionnaire to collect responses from the study population sample. Secondary data from already published books and magazines were used to build the conceptual framework of the study; the analysis of data was based on respondents who returned correctly completed questionnaire and the hypotheses were tested using the Chi-Square statistical method. The findings reveal that to a good extent in PHCN, Enugu Internal Environment Effect Employee Performance. The study therefore recommended an improved and enhanced work environment in Power Holding Company of Nigeria (PHCN) Enugu Distribution Company.
            TABLE OF CONTENT                                        
Chapter one: Introduction                        
1.1    Background of the Study    ….    ….    ….    ….    ….    
1.2    Statement of Problem    ….    ….    ….    ….    ….    ….    
1.3    Objectives of the Study ….    ….    ….    ….    ….        
1.4    Research Hypotheses    ….    ….    ….    ….    ….    ….    
1.5    Significance of the Study    ….    ….    ….    ….    ….    
1.6    Scope of the Study    ….    ….    ….    ….    ….    ….    
1.7    Limitation of the Study        ….    ….    ….    ….    ….    
1.8    Definition of Terms    ….    ….    ….    ….    ….    ….    
Reference  ….    ….    ….    ….    ….    ….    ….    ….    ….    
Chapter Two: Literature Review                    
2.0    Introduction    ….    ….    ….    ….    ….    ….    ….    
2.1    Historical Background; Origin of Power Holding Company of
Nigeria (Phcn)    ….    ….    ….    ….    ….    ….    ….    ….    
2.2    Theoretical Framework        ….    ….    ….    ….    ….    
2.3    The Effects of Internal Environment On Employee And Business
Performance    ….    ….    ….    ….    ….    ….    ….    ….    
2.4    Cashflow Position    ….    ….    ….    ….    ….    ….    
2.5    Government Legislation/Policies    ….    ….    ….    ….    
References    ….    ….    ….    ….    ….    ….    ….    ….    
Chapter Three; Research Design And Methodology
3.1    Research Design ….    ….    ….
3.2    Sources of Data  ….    ….    ….
3.3    Population of The Study    ….
3.4    Sampling Technique    ….    ….
3.5    Determination of Sample Size
3.6    Data Collection Instruments    ….
3.7    Method of Data Analysis    ….
Chapter Four; Data Presentation And Analysis
4.1    Data Presentation and Interpretation …. ….
4.2    Analysis of Questionnaire Returned ….    ….
4.3    Analysis of Introductory Responses ….    ….
4.4    Analysis of Research Questions    ….    ….
4.5    Test of Hypothesis    ….    ….    ….
Chapter Five; Summary Of Findings, Recommendations And Conclusion                            
5.1    Summary of Major Findings        ….    ….    ….    ….    
5.2    Recommendations    ….    ….    ….    ….    ….    ….    
5.3    Conclusion    ….    ….    ….    ….    ….    ….    ….    
Bibliography    ….    ….    ….    ….    ….    ….    ….    
Appendix    ….    ….    ….    ….    ….    ….    ….    ….    
Questionnaire    ….    ….    ….    ….    ….    ….    ….    
LIST OF TABLES
TABLE 4.1 QUESTIONNAIRES RETURNED 46                
Table 4.2 Biodata of Respondents    ----    ----    ----    ----    ----    
Table 4.3 Respondents Preparedness to make career in PHCN ----    
Table 4.4 Respondents Preparedness to Encourage new Employees    
Table 4.5 The Unbundling project of PHCN is good            
for PHCN operations    ----    ----    ----    ----    ----    ----    ----    
Table 4.6 Response on whether pay is a motivator    ----    ----    
Table 4.7 Increase in salary will motivate you to work harder        
and produce more?    ----    ----    ----    ----    ----    ----    ----    
Table 4.8 Pay affects you in relation to the satisfaction of        
your basic human needs ----    ----    ----    ----    ----    ----    ----    
Table 4.9 Response on existing working conditions and how        
it affects employee productivity ----    ----    ----    ----    ----    ----    
Table 4.10 Response on whether cordial employer/employee        
relationship will result in improved productivity.    ----    ----    ----    
Table 4.11 PHCN involve employees in decision making    ----    ----    
Table 4.12 Response on the dependence of performance        
on needs satisfaction    ----    ----    ----    ----    ----    ----    ----    
Table 4.13 Response on the effects of fringe benefits            
on performance   ----    ----    ----    ----    ----    ----    ----    ----    
Table 4.14 Supervision Preference that boost workers performance    
Table 4.15 The state of the working environment in PHCN    ----    
Table 4.16 Increase in Salary increases productivity    ----    ----    
Table 4.17 Response on whether Job in PHCN motivates        ----    
Table 4.18 Response on whether working environment in        
PHCN has kept employees working.    ----    ----    ----    ----    ----    
Table 4.19 Response on the rate of employee absenteeism        
and Job turnover in PHCN    ----    ----    ----    ----    ----    ----    
Table 4.20 Response on Effect of working environment    ----    ----    
Table 4.21 Response on effect of motivation on productivity    ----    
Table 4.22 Calculation of Chi Square    ----    ----    ----    ----    ----    
Table 4.23 Calculation of Chi Square    ----    ----    ----    ----    ----    
Table 4.24 Calculation of Chi Square    ----    ----    ----    ----    ----    
CHAPTER ONE
INTRODUCTION
1.1  BACKGROUND OF THE STUDY
Businesses operate within a supra system called operating environment. These environmental factors be it internal or external bears directly or indirectly on the operations of that business.
Many a business organizations have collapsed because of the effects of environmental factors. The environment of an organisation has got internal, operational and general lives, managers must be aware of these environmental levels and their relationship and importance. Whenever a business takes any decision regarding the business it has to take due care of the environment in which it is running. The decision should not be against the stakeholders of the business thereby it definitely affects the business.
Generally, internal environment refers to one’s immediate surroundings including water, air, land in which one lives that influences one’s life. But for the purpose of this research, internal environment here shall be referred to as elements within the work environment, such as working environment, management style, inter-relationship amongst staff and al factors-incentives, salary increase and opportunity to develop oneself. These have effects on the overall performance of an employee. An improved work environment will result in a reduction in a number of complaints and absenteeism and will bring an increase in productivity, Roelofson (2002).
Employee makes critical difference between success and failure. The effectiveness with which organizations manage, develop, motivate and engage the willing contribution of the employees will enable them to capitalize on their expertise most efficiently. There is a link between people management and business performance. According to Roelofson (2002) one of the fundamental human requirements is work environment that allows people to perform their work optimally under comfortable condition.
People are beginning to be conscious of the fact that to be happy and cheerful in one’s work place, some conditions must be present even with little pay. For example, not withstanding whatever is provided for a seamstress for her job, if there is no machine, all that is provided comes to naught. Again, when a librarian is presented with a noisy environment, he will not carry out his work effectively because the environment suitable for effective library function is quietness and orderliness. Similarly, an accountant who deals with figures will be annoyed if he is sharing a calculator with four staff members. Also, the secretary is looked upon as human machine, trained with the responsibility of taking note of what others may regard as minor and making suggestions based on records available. To effectively carry out these and other functions, the secretary needs a ‘hightech’ office where some electronic machines will complement his/her human ability.
In an employment situation, the employee promises to live up to expectations. The employer expects nothing less. But the point is: has the employer provided a work environment that will facilitate the effective discharge of the employees’ assigned duties? Most employers keep complaining of poor returns from employee without taking out time to find out why the new employer has not performed beyond what the former one was able to do.
If an organization provides its employees with better work and most conducive working environment they can perform exceptionally well, and companies can capitalize on their enhanced productivity in the shape of cost reduction, which will ultimately contribute towards rich profits. The relationship between employee attitudes and company performance, as suggested by Patterson et’al., (1997), is highly correlated. They suggested that managers of organizations who are eager to promote productivity and profitability should pay close attention to the attitudes of their employees in orders to make them more positive.
1.2  STATEMENT OF PROBLEM
This project work is aimed at ascertaining the effect of internal environment on employee performance. The statement of research problems therefore arises from the question such as:
a)    How can internal environmental factors affect employee performance?
b)    Does internal Environment have any bearing on the performance of employees?
c)    To what extent does the internal environment affect employee performance?
d)    Do employees respond to changes in the work place environment?
e)    Is there any relationship between work place environment and the productivity of the employees?
1.3  OBJECTIVES OF THE STUDY
The study will investigate whether perceived promotional opportunities will make employees stay with the company and whether money is the main motivating factor. Furthermore, the following objectives will also be given attention:
1.    To highlight some internal factors that impact on productivity
2.    To ascertain the extent of effect of work environment on employee performance.
3.    To highlight what motivates employee in the organization
4.    To identify better means of inducing higher employee performance to enhance job satisfaction.
5.    To identify challenges associated with provision of good working environment for PHCN staff.
1.4  RESEARCH HYPOTHESES
1.    Provision of a good working environment and conditions of service lead to low rate of absenteeism and low rate of job turnover in PHCN
2.    Increase in salary and bonuses are major internal factors that enhance performance of PHCN workers.
3.    Well equipped office and equipment facilitates workers performance among PHCN staff.
4.    Government policies and privatization requirement is a major hindrance that impacts on the performance of PHCN staff
1.5  SIGNIFICANCE OF THE STUDY
This study will explore the effect of internal environment on employee performance and the make-up of what constitutes a good internal environment in the company used as a case study. It is intended to be of interest to the top management in the service companies who would find the study very essential as a guide in structuring the internal environment and make it a better place, putting all the necessary facilities in place to enhance efficiency and also increase the level of job performance.
1.6  SCOPE OF THE STUDY
The study is not designed to cover the service firms in Nigeria but is limited to Power Holding Company of Nigeria Plc, Enugu Zone. Efforts have been specifically made to find out how the effect of internal environment affects the job performance of staff of Power Holding Company Plc for this purpose; the study covers the entire management cadre.
1.7  LIMITATION OF THE STUDY
This study is limited to Power Holding Company of Nigeria Plc Enugu Zone due to time and logistics constraints, which made extensive coverage of service or even manufacturing firms difficult.
1.8    DEFINITION OF TERMS
Environment: The sum total of the surrounding conditions whether physical or not that affects or influences development.
Employee: An individual who renders mental or physical service to an employer under a defined agreement for reward.
Performance: This is the act of doing a piece of work which one is either ordered to do or promised to do. It could be as the result of an act, which is measured in quality or in quantity.
Productivity: The rate or efficiency of work especially in manufacturing or service organizations.
REFERENCE
Abraham Maslow (1970): Motivation and Personality 2nd edition, New York.
Alderfer  C.  (1972):  Existence,  Relatedness  and  Growth  of  Human Needs
in Organizational Psychology.
Armstrong, M. (2004). Handbook of Human Resource Management Practices (9th ed.). London: Kogan Page.
Onodugo V. A. et all (2010): Social Science Research: Principles, Methods and Applications, Enugu, Ed‟mark Publishers.
Ozo, J. Ubata et‟al (1999): Introduction to Project Writing for Business and Financial Studies. Enugu Sunny Enterprises.