The research topic “AN EVALUATION OF DISTRIBUTION STRATEGIES IN
THE MARKETING OF PETROLEUM PRODUCTS” (A CASE STUDY OF NNPC, ABA DEPOT) was
chosen because of the constant scarcity of petroleum products that the Nigerian
public has been witnessing for some years.
The research looked at the relationship between the distribution
and the relationship between the distribution strategies and the availability
of petroleum products for public use and to find out if there were other
factors other than poor distribution strategies responsible for these scare
In sampling of the opinion of the NNPC staff and customers
(marketers), the questionnaire and interview methods were used, while their
responses were analyzed and used to test the hypothesis using the chi-square
method. The result revealed that there were other factors such as overhead
costs of distributing the petroleum products, vandalization, and corrupt
practices by some members of the distribution chain etc. responsible for the
ineffectiveness of the distribution strategies.
At the conclusion of the research, it was suggested that these
factors mentioned above be either eliminated or reduced and stringent measures
be adopted to act as deterrents to other corrupt practices in the distribution
1.1 Background of the
1.3 Statement of the
1.4 Objective of the
1.6 Significance of
1.7 Scope and limitations of the study
2.0 Review of Related
2.1 The theory of
2.2 What is
2.3 Classifications of Motivation
2.3.2 Process Theories
Mallow’s Hierarchy of needs
2.4.3Belongings and Love (or social Needs)
2.5 Motivation and Performance in Public Sector
2.6 How to motivate
2.7The outcome of motivation to
employee and the
3.1 The design of the
3.2 The Area of the
3.3 Population of the study
3.4 sample and sampling Techniques
3.5 Instrument of Data
3.6 Validation of
3.7 Method of Data
4.0Presentation, Interpretation and Analysis
4.3 Analysis of
5.1 Summary of the
5.4 Suggestion for further
Generally, an employee brings to the business organization a set
of wants that issue from his basic needs structure. The satisfaction of
there want is to some extents with the control of the make money
feed their families well and enjoy better
conditions of living. Hence, if working will make them earn more
than they normally do, especially when they have skill and
energy to do so motivation implies more incentives and inducements,
which will make the workers feel more committed to duty
because of the hope of the income it will aid to his regular salaries.
On various occasions, highly motivated people have achieved
success despite the absence of good plans or effective organizational
structure. And of course the more highly motivated the subordinate the less
control is necessary to ensuring that work will be executed.
However, motivation is not a substitute for planning organizing
and controlling. Motivation implies that more power has with the
subordinate who may assist direction in carious ways.
An in-satisfied need
creates tension, which stimulates drive within the individual. There drive
generate search behaviour to find particular goals that if
attained, satisfy the needs and leads to the reduction of tension.
motivated employee are in a state of tension. In order to relieve
this tension, they engage in activity. The greater the tension the
activities to bring about the relief therefore when we see people working hard
to some activity by a desire to achieving they are driven by a desire to
achieving some goals that they perceive as having value to
Motivation and employee
performance is a vital tool for achieving organizational goals. In the
public sector, it is easy for the manager toad a little incentive to motivating
his workers for greater performance and higher productivity.
Against the background,
the estimated number of employee in National Nigeria Petroleum corporation
(NNPC0 is 200 employed in Aba and 400 employed in Port Harcourt totaling 600
tends to finding out the problem facing Nigeria economy and employee
performance. The research hope to finds out how and to what extent and improved
incentives or motivation of employees in the NNPC helped in productivity and
the effect of management productivity.
1.1. BACKGROUND OF THE CASE
The Nigeria National Petroleum Corporation, otherwise known as
NNPC is a commercial Integrated International Oil company engaged in exploring
production processing, transportation and marketing of crude oil gas.
Their products and derivatives.
The corporation is oriented towards efficiency, profitability and
financial autonomy to maintaining its leadership roles in Nigeria as long-term
growth and economic development through the start up and fostering of new gas
and petroleum based Industries.
The NNPC was
established in 1977 by the NNPC Act number thirty three (ACT 33) Pf the
Year thoroughly the merger of the Nigeria National Oil development
Company (NNDC where functions were mainly operational and the then Federal
Ministry of petroleum resources which performed the regulatory function.
The two body were merged to create a more virile oil agency and
optimize human and infrastructure resources available to government. The then
NNPC, Therefore performed both Operational as well as regulatory
functions and it was divided into eight divisions to carry out those
In October 1985, the corporation was owing to the demand of
Oil Industry, re-organized into six (6) autonomous limits known as
sectors in a bid to encourage innovation, efficiency and positive
On Monday 21st January
1988, presidents Ibrahim Badamasi, Babangida announce the re-organization and
commercialization of a more result-oriented organization. In the new
re-organization, which was the out come of along period of studies, seminars,
work shops and restructured into three major responsibility namely; corporate
services (which includes finance administration, public
affairs Personnel technology and corporate legal matter): Operation
(which include ,exploration and production, includes, exploration and
production, gas manufacturing, petrochemicals and National Petroleum
Crude Oil marketing and production sector of the Industry, while
the Corporations services and Groups executives Director (GED) heads
Operations, Arms NAPIMS is headed by a co-coordinator
A high point of the
re-organization is the establishment of eleven subsidiary Companies Under the
operations arms the companies are: the Nigerian Petroleum Development Company
Limited 9For exploration and production of petroleum). The interpretation for
NNPC and other oils Africa, Warri Refinery and petrochemical company Limited
(for refinery of certain black and polypropy lever petrochemical): Kaduna Refinery/
and petrochemical company Limited (for refinery of petroleum and production of
Linear Alky Benzene and heavy zalkylates): and the pipe lines and products
marketing company Limited (for buying Crude oil from government,
transports some to refineries to NNPC depots for sales to marketers):
Other company Includes
hydrocarbon service of Nigeria Limited (for petroleum products marketing abroad
in joint venture with chevron): National Engineering and technical Company (to
engineering NNPC jobs and other and others to be won in Nigeria and African):
Liquefied National gas company Ltd. (to set up the LNG Project in joint venture
with shell, and ELF).
Port Harcourt Refinery company Limited (for refinery
petroleum especially for export), and the Element petrochemicals Company
Limited (to Manufacture petrochemicals in a joint venture between NNPC
and the Private sectors).
Aspect of this re-organization was the transfer of the petroleum
inspectorate, the rest while regulating arm of the NNPC to the Petroleum.
Resources Department of the Ministry of Petroleum Resources.
A major implication of
the restructuring of the NNPC is now financially autonomous in all its
Therefore, the corporation is expected to make regular dividend
payments to government as a returns for government investment in its.
1.2 THEORETICAL FRAMEWORK
In research studies and report of these kinds, different
approaches are usually used as a heuristic diverse to explain what really constitutes
the scope of such study.
Douglas McGregor late
professor of managerial at MIT State the human bid of enterprises is all a
piece of assumptions management Holds about control human resources determine
the whole character of the enterprise.
These assumptions determine also the quality of the successive
concluded that a manager’s new of human nature is based on one of two sets of
assumptions about people and that a managers new of human nature is based on
one of two sets of assumptions about people and that managers tend to mould their
behaviour towards subordinates according to which set of assumption they hold.
The first set of assumption, basically negative, McGregor labeled theory X and
the second Y.
Under theory X the four assumptions held by the manager are:
Employee inherently dislike work and when even possible, will
attempt to avoid it.
Since employee dislike work, they must be covered controlled or
threatened with punishment to achieve desire goals.
Most workers place security above all other factors associated
with work , and will display little ambition.
Contrary wise McGregor
listed the following assumptions under theory Y.
The expenditure of physical effort in work is as natural as play
External control and the threat of punishment are not the only
means of objectives to which he is committed.
Commitment to objective is a as result of the reward
associated with their achievement.
The average human beings have under proper conditions not only to
accept but also to seek responsibility.
There assumptions McGregor felt provided a better
explanation of human nature and therefore indicated the need for
a different managerial strategy in dealing with people .
implications if you accept McGregor’s analysis, is that the framework
presented by Maslow. Theory X assumes the Lower order needs dominate
individuals. Theory Y dominate individuals. Theory Y assumes that the higher
order needs dominate. McGregor himself held to the belief that theory Y
assumptions were more valid than theory X. Therefore, he proposed ideas like
responsible and challenging jobs, and good group relation as approaches that
would maximize an employees job motivation.
theory X and Y to present situation in NNPC, One can categorically say that
most managers in the corporation use both theory X and Y.
However, for effectiveness productivity in terms of employee
motivational to be ascertained in an organization the both theories X and Y
should be practical zed used by only management for a better
1.3 STATEMENT OF THE PROBLEM
There is a general belief in work environment that employees in
state owned enterprise are not well motivated.
Nigeria National Petroleum Corporation (NNPC). Is just one such
organization. In the past six year or more, there have been charge of
Negligence leveled against NNPC management Culminating into incessant Strices
Agitations labour unrest and eventually how productivity evidence in shortage
of petroleum product in the country. The above situation has even been brought
into lime light by regular facing the NNPC, but it is regrettable that there has
note the case of the problems that are apparently plunging the nation to untold
On the other hand, since employees represent the most relevant
portion of the asset of the corporation. There is need to prevents the welfare
of the workers. This will includes in insight of their general performance
given the situation existing in the oil corporation.
Consequently, in the
research intend to find out to what extent the employee in the co-operation are
motivate and its impart on their performance.
1.4 OBJECTIVES OF THE STUDY
The study will generally attempt to contribute to solution of
motivation in the Nigeria petroleum co-operation but specifically.
To ascertain whether the supervisory style has any effect on
motivates staff achieves success in the absenc3e of good plan or effective
To find out whether motivation can lead to organizational
effectiveness in NNPC.
To offer suggestion on how to use motivational tools on NNPC
workers to achieve greater outputs.
1.5 RESEARCH QUESTIONS.
Research process can be viewed as a four-level hierarchy of
questions. However, in general a term, when mention is made of research
question what comes to mind is a reflection of the general purpose of the
research. They are question asked in order to locate answers to the research
problems. They convert the research problem into question in specifics, thereby
making them variable.
problems dissolve into research questions, which are in turn converted into
hypothesis for testing and providing answers to the problems, for example.
Does manager’s supervisory style affect employee’s attitude to
work positively significantly.
What are the positive and significant relationship between
motivation of workers and increased performance in the public sector
How the level of competence of managers of performing their duties
1.6 SIGNIFICANCE OF STUDY
It is expected that this will help Nigeria national petroleum in
co-operation in no small measure in providing possible solution to its
Academically, this study constitutes a contribution in the field
of public administration especially as its studies motivation and performance
in the public sector.
It will help the
feature researchers who will like to carry out a researcher in motivation for
further consultation of performance and motivation. The study gives the
researchers the opportunity to known more about NNPC
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