ABSTRACT
The study focused on effects of participative management as a success factor on organizational performance – a study of the Department of Petroleum Resources (DPR) and Pipelines and Products Marketing Company Limited (PPMC) in the South-East, Nigeria. The specific objectives were to , ascertain the effects of employees’ involvement on the performance of DPR and PPMC, determine the effects of industrial democracy and integrated communication on the performance of DPR and PPMC, examine the effects of management support on participative decision-making in DPR and PPMC, assess the effects of investment in intellectual capital on the performance of DPR and PPMC and to ascertain the challenges of participative management DPR and PPMC all in the South-East , Nigeria. Survey method was deployed to investigate the relationship among and between the variables. The study population is 1,050 employees of DPR and PPMC in South – East Nigeria. Taro Yamane formula was used to deduce the sample size of two hundred and ninety (290). Stratified random sampling technique was used to select the sample of respondents. A well-structured questionnaire was used to collect data. Data was analyzed by the use of descriptive and inferential statistics. Result of the hypotheses tested showed that employees’ involvement, industrial democracy and integrated communication and investment in intellectual capital have significant effect on the performance in DPR and PPMC, also the hypotheses result revealed that management support has significant effect on participative decision-making in DPR and PPMC. Furthermore the hypotheses tested showed that there is no significant difference in mean value of resistance to change and abuse of authority in Department of Petroleum Resources and Pipelines and Products Marketing Company Limited in South East Nigeria. The study, therefore, recommends that DPR and PPMC should, at all times encourage employees to participate in decision- making and deploy industrial democracy and communication channels for feedback and suggestions to enhance organizational performance. It is equally suggested that DPR and PPMC should support participative decision-making by giving the employees a voice through collective bargaining, quality circles and individual views and opinions. They are, also, advised to train and retrain their employees and encourage knowledge sharing in order to equip them with the set skills to enable them participate meaningfully in decision- making to improve organizational performance
TABLE OF CONTENTS
Cover Page i
Title
Page ii
Declaration iii
Certification iv
Dedication v
Acknowledgement vi
Table
of Contents vii
List
of Tables ix
Abstract x
CHAPTER 1 INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Problem 4
1.3 Objectives of the Study 6
1.4 Research Questions 7
1.5 Research Hypotheses 7
1.6 Significance of the Study 8
1.7 Scope of the Study 9
1.8 Limitations of the Study 9
1.9 Profile of DPR and PPMC 10
1.10 Operational Definition of Terms 13
CHAPTER 2 REVIEW OF RELATED LITERATURE
2.1 Conceptual Framework 16
2.2 Theoretical Framework 36
2.3 Empirical Review 43
2.4 Gap in Literature 46
2.5 Summary of Reviewed Related Literature 46
CHAPTER 3 METHODOLOGY
3.1 Research Design 48
3.2 Sources of Data 48
3.3 Population of the Study 48
3.4 Sample Size Determination 49
3.5 Sampling Technique 49
3.6 Description of the Research Instrument 49
3.7 Validity of the Research Instrument 50
3.8 Reliability of the Research Instrument 50
3.9 Method of Data Analysis 51
CHAPTER 4 DATA PRESENTATION AND ANALYSIS
4.1 Questionnaire distributed and return 53
4.2 Analysis of Objectives Question 57
4.2 Testing of Hypotheses 65
4.3 Discussion of Results 70
CHAPTER 5 SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Findings 72
5.2 Conclusion 73
5.3 Recommendations 74
References
Questionnaire
Appendices
LIST OF
TABLES
4.1: Analysis of questionnaire 53
4.2: Distribution of respondents based on sex 53
4.3: Distribution
of the respondents based on age 54
4.4: Distribution
of the respondents based on marital status 55
4.5: Distribution
of respondents based on education 55
4.6: Distribution
of respondents based on experience 56
4.7: Effects of employees’
involvement on the performance of DPR and PPMC 57
4.8: Effects of industrial
democracy and integrated communication on the performance
of DPR and PPMC 59
4.9: Effects of management support on participative decision making in DPR
& PPMC 61
4.10: Effects of investment
in intellectual capital on the performance of DPR and PPMC 62
4.11: Challenges of
participative management in the DPR and PPMC
64
4.12: OLS
estimate for test of hypothesis one 65
4.13: Test
of hypothesis two 67
4.14: ANOVA
result for test of hypothesis four 68
4.15: OLS
result for test of hypothesis four 68
4.16: Z-Test result for
hypothesis five 69
CHAPTER
1
INTRODUCTION
1.1. BACKGROUND OF THE
STUDY
Organizational environment
is fast-paced and dynamic in the 21st century. Organizations are under pressure
due to stiff competition. As such organizations must come up with strategies
that will give them a competitive edge. Employee participation in decision
making is one of such strategies. A high level of employee involvement is vital
to the success of any organization. Employee participation comes in many forms
and varies from organization to organization (Peter and David, 2016).
Participative management is
one of the important aspects of organizational life wire in order to achieve
increased organizational performance and employees’ commitment towards
organizational goals. It can be described in a variety of ways, but generally
defined as when employees fully invest emotionally, mentally and physically so
they focus on achieving the organizational goals. In order to meet
organizational goals and improve its effectiveness, efficiency and
productivity, the management of any organization should involve all stakeholders
in the running of the business (Anteneh, 2018).
Thus, involving all stakeholders in the
running of Department of Petroleum Resources (DPR) and Pipelines and Products
Marketing Company Limited (PPMC) is an extension of the principle of democracy
in the work place. This is often referred to as industrial or work place
democracy (Lessing, Schepers and Valoyi, 2000). Industrial democracy is the
extent to which employees influence the outcome of organizational decisions
(Nel et al., 2016). Participative
management has been studied as a factor that causes organizational commitment
in employees. Participative management is the concept that advocates the
involvement of employees in the organizational tasks such as those of decision
making and operations. Participative management demands from the organizational
leadership that they do not try to keep their employees on a short leash,
rather allow them to bring innovation in the organization (Kim, 2002).
Employee priorities, managerial attitudes and
training consistency are some of the dimensions of participative management.
When there is participative management style in the organization, the employees
of that organization are encouraged to be involved in the organizational
decision-making processes. Through employee involvement, organizational
objectives can be achieved (Nauman and Arshad, 2017).
Participation can include representative
participation, direct communication, and upward problem solving (Gill, 2009).
Dimensions of participation include giving employees an opportunity to achieve
their goals, seeking ideas among the employees and assigning responsibilities
to employees (Gibson, 2004). The intensity of participation varies with the
political environment, the managerial philosophy of the firm and the industrial
relations environment in which it operates (Gill, 2009). Authoritarian firms
adopt downward communications while other firms will place a higher emphasis on
direct participation involving two-way communication flows. Two- way
communication is aimed at harnessing the expertise of their employees. There
are firms that choose to emphasize representative participation as a means of
providing a collective voice to their workers. The goal here is to counteract
or stall union influence, or even from a genuine belief in industrial
democracy. Some others may institute an elaborate system of participation in
order to achieve better decision-making and improved corporate flexibility (Peter and David, 2016).
Employee participation in decision – making
is a process of involving and empowerment of employee in order to use their
input towards achieving higher individual and organizational performance.
Involvement refers to the employees’ participation in decision making and
problem solving, and increased autonomy in work processes. As a result,
employees are expected to be more motivated, more committed, more productive
and more satisfied with their work. Employees participating in decision-making
initiatives are given the opportunity to discuss issues relating to their work
to influence managerial decisions, but management reserves the right to govern.
Employee participation in decision making has various aims which includes;
increased motivation and employee commitment; to channel their interests and
knowledge and skills to improve processes; to consider their interests and keep
them informed of the organization’s activities and position. In order to
achieve these aims, a diverse range of techniques are used, including
consultation committees, suggestion schemes, certain forms of team work,
newsletters and briefings (Gifford, Nealthy and Loukas, 2005). Participation in
decision making is the most important organizational characteristic that
influences not only employee productivity, job satisfaction and motivation but
also for success of organizational goals (Bhatti,2013).
The participation of employees in decision
making can help the organization in many ways including enhancing and
generating creativity changes in behaviors at work; work force commitment and
in organizational decision-making process. In many cases, managers can allow a
high degree of employee participation and autonomy to increase work force
commitment. In general, the employee
participation in decision making should be an important step to improve
employee commitment towards organizational goals.
Modern management demands the stimulating of
employees’ participation in the company’s activities and in the decision-making
process. Since the year 2000, employees’ participation in the company’s
decision-making process has attracted more attention of management specialists,
and studies made over many groups of employees have demonstrated the positive
link between the participation rank, the group cohesion, member solidarity and
the degree of social and professional fulfilment (Stefanescu, 2008).
Participation tends to improve motivation
because employees feel more accepted and involved in the situation if their
voice is heard in decision making. Their self-esteem, job satisfaction and
cooperation with management may also improve. The results often are reduced
conflict and stress, more commitment to goals, and better acceptance of change.
Also turnover and absence from duties may be reduced because employees feel
that they have a better place to work and that they are being more successful
in their jobs (Newstrom and Davis, 2004). The act of participation in itself
establishes better communication as people mutually discuss work problems.
Management tends to provide workers with increased information about the
organization’s finances and operations, and this sharing of information allows
employees to make better-quality suggestions.
Participatory management requires that all
middle level managers and even lower management be accorded a voice in the organizational decisions. Their
voice in decision making in the circle of the top management becomes imperative
towards their effective performance and transferring the final decisions to the
subordinates while precluding organizational disturbances like strike actions,
demonstrations, work to rule and unhealthy labour relations. Being involved in
a process is not equivalent to having a voice. Voice needs to be nurtured,
people need to feel able to express themselves without fear of reprisal or the
expectation of not being listened to or taken seriously. However, no matter how
well-meaning the instigators of the participatory processes at the organizational
level may be, they have no control whatsoever over what may happen as a
consequence (Mukasa, 2000).
In the DPR and PPMC the shift to
Participatory management (PM) is both inevitable and necessary. Hence, managers
attempting to providing maximum opportunities for organizational members to
participate or be involved in decision making (Owens, 2001) allow free flow of
information through open communication channels and granting authority, freedom
and autonomy for organizational members to make decisions affecting their work
( Matthews and Dennis,2003). Participative management is better suited for today as it empowers
and develops workers. In addition, workers today are more educated, motivated,
responsible, and capable of doing their jobs without being closely supervised
(Gono, 2001). Participatory approaches, enhancing the levels of trust within
the school community attain educational benefits(BlaseandBlase, 2001;
Tschannen-Moran, 2001). In a participative management system, the degree to which a person is
participating will have a positive effect on levels of individual performance
and satisfaction. Participation in DPR and PPMC ought to be in-line with vision
of freedom and democracy. Therefore, study regarding PM as a success factor on
organizational performance is very important. Conversion into a participative
organization is seen as a way for an organization to build key capabilities
essential for success in the complicated and dynamic contemporary
organizational environment today (Reihaneh et al., 2010).
1.2 STATEMENT OF THE PROBLEM
Participative
management, otherwise known as employee involvement or participative decision
making, encourages the involvement of stakeholders at all levels of an
organization in the analysis of problems, development of strategies, and
implementation of solutions. Many organizations have experienced lack of
commitment by employees towards implementation of decisions taken by top
management which undoubtedly has serious repercussions on organizational
success.
Much
dissatisfaction emanating from decisions taken by management has led to many actions
taken by employees including strike actions. Take for instance, the strike
action taken by the staff of Cadbury Plc Nigeria in 2014 occurred as a result
of employees’ dissatisfaction with the decision of management (Onwukwe, 2015). Employees
of the company viewed the action of management as being inconsistent with their
aspirations. Every forward looking organization should always strive to align
its objectives with the objectives of the employees otherwise there is bound to
be internal squabbles. The most formidable solution to such squabbles is to
give a voice to employees in decision-making process.
The problem in this regard mainly lies in the
fact that employee participation in decision making has not been clearly
understood as well as its role and the impact it has on organizational
performance in Nigeria. In most of the organizations, the top management feel
that the decision-making process is their sole privilege and as such should be
protected. Irefin and Ali, (2014) in their study emphasize the criticality of
participative decision making in enhancing employee commitment. They said that
management fails to understand why employees are not committed to the
organizational goals even though they have proactively implemented fair
compensation policies and human resource (HR) practices to motivate and retain
them. It can be costly if employees are not committed in their jobs, and if
they lack the motivation to exercise their full potential.
The complexity of problems involved in decision making process in
management practice imposes a new perspective of a company’s management, which
emphasizes the involvement of the employees in all the actions and decisions in
which they are qualified. In order to survive the intensive competitive
situations in the business world, companies must jettison old management
practices, based on an excessive authority. Also, five major causes of poor
participation in decision making can be identified, namely, absence of
willingness of the management, absence of labour union activities, lack of
workplace diversity, ignorance of the
workers and political groupings among the workers (Bhuiyan, 2010).
Issues facing non-implementation of Participative management ranges
from the complexity and
the diversion of the problems in the business environment, which emphasize the
involvement of the employees in all the actions and decisions in which they are
qualified. Most often, employers totally or partially resist employee’s
participation in the decision process and pay more attention to the management
specialists. Their interest is accountable due to the fact that practical
studies, made over many groups of employees, have demonstrated the positive
correlation that exists between the participation rank, the group cohesion,
member solidarity and the degree of social and professional fulfillness. To
succeed to handle the intensive competitive situations in the organization,
employees have to spare the old management practices, based on an excessive
authority in management; this will help handle these challenges.
Organizations
have experienced the lack of commitment by employees towards implementation of
decision taken by the top management which undoubtedly has serious
repercussions on organizational goal (Abdulai and Shafiwu, 2014). In
Nigeria, the existence of participative decision making is shrouded in
controversy (Onwukwe 2015).Some organizations in Nigeria profess participative
decision making with no evidence of its existence in such organizations.
In
the Nigerian context, empirical investigations have revealed employees’
discontent, and hence their yearning for democratic leadership in their
respective organizations. The contract staff of former Diamond Bank (Now Access
bank) demonstrated significantly in 2013 over the management’s insensitivity to
their plight (Ubeku, 2014). If the management of the former Diamond bank
deliberated with the contract staff on the issue, the unfortunate situation
would have been averted.
It
is against this backdrop that the researcher decided to study the effects of
participative management as a success factor on organizational performance – a
case study of the Department of Petroleum Resources (D.P.R) South-East
,Nigeria.
1.3. OBJECTIVES OF THE
STUDY
The major objective of the study is to
examine the effect of participative management as a success factor on organizational
performance (A study of Department of Petroleum Resources (DPR) and Pipelines and
Products Marketing Company Limited(PPMC) in South East Nigeria.
The specific objectives are
as follows:
i.
to ascertain the effects of employees’ involvement on the performance of
Department of Petroleum Resources and Pipelines and Products Marketing Company Limited
in South East Nigeria.
ii.
to determine the effects of industrial democracy/integrated communication
on the performance of Department of Petroleum Resources and Pipelines and
Products Marketing CompanyLimited in
South East Nigeria.
iii.
to examine theeffects of management support on participatory decision –
making in Department of Petroleum Resources and Pipelines and Products
Marketing Company Limited in South East Nigeria.
iv.
to assess the effects of investment on intellectual capital on the
performance of Department of Petroleum Resources and Pipelines and Products Marketing Company Limited in South
East Nigeria.
v.
to ascertain the challenges of participative management in the
Department of Petroleum Resources and Pipelines and Products Marketing CompanyLimitedin
South East Nigeria.
1.4 RESEARCH QUESTIONS
i.
What are the effects of employees’ involvement on the performance of
Department of Petroleum Resources and Pipelines and Products Marketing Company
Limitedin South East Nigeria?
ii.
What are the effects of industrial democracy and integrated
communication on the performance of Department of Petroleum Resources and
Pipelines and Products Marketing Company Limited in South
East Nigeria?
iii.
What are the effects of management support on participatory decision-
making in Department of Petroleum Resources and Pipelines and Products Marketing Company Limited in South East Nigeria?
iv.
What are effects of investment in intellectual capital on the
performance of Department of Petroleum Resources and Pipelines and Products
Marketing Company Limited in South East Nigeria?
v.
What are the challenges of participative management in the Department of
Petroleum Resources and Pipeline and Products Marketing Company Limited in
South East Nigeria?
1.5 RESEARCH
HYPOTHESES.
HO1: Employees’ involvement has no significant effect on the performance of
Department of Petroleum Resources and Pipelines and Products Marketing Company
Limited in South East Nigeria.
HO2: Industrial democracy and integrated communication have no significant
effect on the performance of Department of Petroleum Resources and Pipelines and
Products Marketing Company Limited in South East Nigeria.
HO3: Management support has no significant effect on participatory
decision-making in the Department of Petroleum Resources and Pipelines and Products
Marketing Company Limited in South East Nigeria.
HO4: Investment in intellectual capital has no significant effect on the
performance of Department of Petroleum Resources and Pipelines and Products Marketing Company Limited in South
East Nigeria.
HO5: Resistance
to change and abuse of authority are not challenges of participative management
in Department of Petroleum Resources and Pipelines and Products Marketing company Limited in South
East Nigeria.
1.6 SIGNIFICANCE OF THE STUDY
Participation is the means to increase the
sense of responsibility and belonging in the employees. If work environment
provides favorable field to meet the needs of employees and provides a
mechanism that employees be in problem-solving situations and think about it
then both these individuals and the organization will benefit (Mohammad, 2013). Employee Involvement
is a long term commitment that needs to be incorporated in the management of an
organization. Organizations operating with involvement of their employees have
evolved beyond merely telling people what is going on to actively seeking their
contribution to the decision making process. Maltais (2013) insists that,
encouraging employee involvement and showing appreciation for it can be highly
effective in retaining employees and encouraging better performance. Employee
Involvement, if well implemented, changes the fundamental relationship between
individuals and the organization they work for. Therefore, this study
significantly helps in the following ways;
Policy Makers፡-The findings of this study will assist the policy makers, especially
within the Ministry of labour, to look seriously at participative management
and could prepare them for revising labour proclamations that have not
incorporated employee participation in decision making. It is a gap which needs
attention by policy makers (Redae, M., 2013).
Scholars፡-Scholars will gain knowledge on the role of participative management in
improving commitment towards organizational performance. They, also, acquire
the factors affecting participation in decision making in the organizations.
The findings of this study will, also, help scholars to develop various
theories. To the knowledge of the researcher employees’ participation in
decision making has not been conducted in South East Nigeria, thus this study
adds to the literature and will be used for further research.
Organizations፡- As the employees’ participation in decision making is an important
aspect of any organization, this study provides practical benefits for
organizations that attempt to introduce participative management in decision
making. The study, also, will provide a better understanding of the factors that
influence the effectiveness of participative decision making and the role and
contributions of employers and employees in participative decision making
processes. Generally, the findings of this study will significantly help any
organization to minimize dissatisfaction, inefficiency and unproductivity, and
will, also, improve employees’ commitment and organizational performance.
1.7. SCOPE OF THE
STUDY
Unit scope:- The study aims to assess the effects of participative management as a
success factor on organizational performance (A study of Department of
Petroleum Resources (DPR) and Pipelines and Products Marketing Company Limited
(PPMC) in South East Nigeria.
Content scope:- The content scope covers all the objectives the study explored and
review. Hence, an attempt was made to find out the effects of employees’ involvement
on the performance, effects of industrial democracy and integrated
communication on the performance, effects of management support on participation,
effects of investment in intellectual capital on the performance and challenges
of participative management in the performance of Department of Petroleum Resources
and Pipelines(DPR) and Products Marketing Company Limited(PPMC) in South East
Nigeria.
Geographical scope:- Even though Department of Petroleum Resources (DPR) and Pipelines and
Products Marketing Company Limited (PPMC) have many offices across Nigeria, the study is limited to three States
found in South East, Nigeria – Imo,Abia and Enugu states.
1.8 LIMITATIONS OF THE
STUDY
Factors that undermined this study include
the bottlenecks prevalent in the mobilization of resourceful materials, which
was a major concern to the essence of this work. The dearth of required
statistics and limited access to literature, some journals and publications
which could have been of immense help to this work were unavailable. There is also lack of strong evidence in the
theoretical framework of this topic that would have provided a reliable
foundation for us to stem from a particularly Nigerian case. Also difficult
terrain in some locations for this study posed a problem. The roads were very
bad and traffic was not smooth hence data collection was problematic. Besides,
transportation and accommodation were, also, the challenges faced during the
research since the researcher is not resident in the area of study. The
other limitation observed was in the distribution and returning of the
questionnaire, as most of the respondents sees it as distraction and there was
delay in filling the questionnaires. Also in other to cover all the locations
in the methodology more expenses were incurred as many research assistants were
trained in order to cover the sample number of respondents in DPR and PPMC
offices in South East, Nigeria.
1.9 PROFILE
OF THE DEPARTMENT OF PETROLEUM RESOURCE AND PETROLEUM PRODUCT MARKETING
COMPANY
1.9.1
Department of petroleum resource (DPR)
In
the beginning Petroleum matters were handled by the Hydrocarbon Section of the
Ministry of Lagos Affairs, which reported directly to the Governor-General. .
The
Unit kept records on matters relating to exploration, and importation of
petroleum products. It also enforced safety and other regulations on matters
which were then mostly products importation and distribution. As the activities
of the petroleum industry expanded, the Unit was upgraded to a Petroleum
Division within the Ministry of Mines and Power.
The Petroleum Division grew
to become the Department of Petroleum Resources in 1970. In 1971, a new body –
The Nigerian National Oil Corporation (NNOC) - was created to handle direct
commercial operational activities in the oil industry on behalf of the Federal
Government, while the Department of Petroleum Resources in the Federal Ministry
of Mines and Power continued to exercise statutory supervision and control of
the industry.In 1975, the Department was upgraded to a Ministry and named the
Ministry of Petroleum and Energy which was later renamed the Ministry of
Petroleum Resources.
Decree 33 of 1977 merged
the Ministry of Petroleum Resources and the Nigerian National Oil Corporation
(NNOC) to form the Nigerian National Petroleum Corporation (NNPC), in order to
conserve the then scarce manpower in the oil industry. This decree also created
the Petroleum Inspectorate as an integral part of the NNPC, and entrusted it
with the regulation of the petroleum industry.
In 1985, the Ministry of
Petroleum Resources was re-established, but the Petroleum Inspectorate remained
within the Nigerian National Petroleum Corporation until March, 1988 when the
Nigerian National Petroleum Corporation was re-organised. By this
re-organisation, the Petroleum Inspectorate was excised from the Nigerian
National Petroleum Corporation, and transferred to the Ministry of Petroleum
Resources as the Technical arm and renamed the Department of Petroleum
Resources (D.P.R).
Department of Petroleum
Resource (DPR) is a department under the Nigerian Federal Ministry of Petroleum
Resources (FMPR),
saddled with the responsibility of exploration and importation of Petroleum products. It also oversees the safety and
other regulations that relate to the exportation and importation of the
products into the country, DPR, (2016).
As part of its activities, the department
manages the up and downstream in Nigeria petroleum industry, (Oxfoxd Business
Books, 2013) The
Federal Government of Nigeria introduces National Production Monitoring Systems (NIPMS) to monitor
the royalty payables and demand notices from all
organizations dealing in petroleum in Nigeria, Oshisanya, (2016). The
department is headed by The Director of Petroleum Resources, being the head of
the management. The DPR is responsible to the FMPR.
Vision
To be a Leading Regulator
in the Oil and Gas Sector
Mission
To ensure the sustainable
development of Nigeria’s Oil and Gas resources across the value chain for our
stakeholders through effective regulation, while entrenching world class
professionalism, accountability, and transparency.
Core values
- Respectfully
responsive
- Excellence
and Integrity
- Global
perspective
- Understanding
stakeholders’ expectations
- Leadership
and Professionalism
- Accountability
- Transparency
and Team work
- Ownership
- Responsible
and Resilient
DPR has the statutory
responsibility of ensuring compliance to petroleum laws, regulations and
guidelines in the Oil and Gas Industry. The discharge of these responsibilities
involves monitoring of operations at drilling sites, production wells,
production platforms and flow stations, crude oil export terminals, refineries,
storage depots, pump stations, retail outlets, any other locations where
petroleum is either stored or sold, and all pipelines carrying crude oil,
natural gas and petroleum products, while carrying out the following functions,
among others:
(i)
Supervising all Petroleum Industry operations being carried out under
licences and leases in the country.
(ii)
Monitoring the Petroleum Industry
operations to ensure that they are in line with national goals and aspirations
including those relating to Flare down and Domestic Gas Supply Obligations.
(iii)
Ensuring that Health Safety and Environment regulations conform with
national and international best oil field practice.
(iv)
Maintaining records on petroleum industry operations, particularly on
matters relating to petroleum reserves, production/exports, licences and
leases.
(v)
Advising Government and relevant Government agencies on technical
matters and public policies that may have impact on the administration and
petroleum activities.
(vi)
Processing industry applications for leases, licences and permits.
(vii)
Ensure timely and accurate payments of Rents, Royalties and other
revenues due to government.
(viii)
Maintain and administer the National Data Repository (NDR).
1.9.2
Pipelines and products marketing company (PPMC)
The Pipelines and Products Marketing Company Limited
(A subsidiary of NNPC) was set up with the objective to provide excellent
customer services by transporting crude oil to the refineries and moving petroleum products to the existing and future
markets efficiently and at low cost through a safe and well maintained network
of pipelines and depots. It is also part of the objectives of the company to
profitably and efficiently market refined petroleum products in the domestic as
well as export markets especially in the ECOWAS sub-region, provide marine
services and also maintain uninterrupted movement of refined petroleum products
from the local refineries.
The
vision of PPMC is as follows:
·
To be the dominant supplier
of all refined petroleum products
·
Products to the existing
domestic and growing export
·
Markets within the West
African sub-region.
The
mission of PPMC is
·
To ensure adequate security
in the supply of petroleum products.
·
Service domestic market at
low operating costs
·
Market petroleum products
competitively in the domestic and international markets
·
Provide excellent customer service
.
·
Efficiently transporting
crude oil to the refineries.
·
Moving petroleum products
to the market.
The key elements of the
business mission as identified by the company are: Efficient transportation
of crude oil to the refineries..
To actualise the objectives, vision and
business mission of the PPMC, The company has continued with the implementation
of the Programmes as contained in the strategic planning at inception, having
consolidated in the home market, within the first few years, The company has
been exploring its pipeline network to neighboring countries to earn valuable
revenue. It, consciously, minimizes cost of services and other cost elements
that go into product price determination. The company maximizes utilization of
coastal vessels for products movement on a continuous basis.
It determines and meets the national level of
petroleum products demand. It stimulates the consumption of Liquefied Petroleum
Gas (LPG) to a significant level in the domestic energy mix. It is also
responsible for the sale of special products such as Fuel Oils, Base Oil (For
Lubricating Oils) Solvents, Waxes Bitumen and Sulphur, and promotes import
substitution of petroleum products.
1.10 OPERATIONAL DEFINITION OF TERMS
Participative
management
Participative management is all about
involving employees in the decision making process, inviting everyone to take
personal responsibility for improving the quality of their products and
services and rewarding employee behaviour that will satisfy their clientele and
improves organizational performance
Organization:
An assemblage of human and
other resources working in a planned manner to achieve specific goals.
Performance:
Performance refers to the act of doing or
carrying out an activity.
Organizational performance
Organizations performance
constitutes both financial and non-financial indicators which offer information
on the degree of achievement of objectives and results.
Employee involvement
Employee involvement is the direct participation of staff
to help an organization fulfill its mission and meet its objectives by applying
their own ideas, expertise, and efforts towards solving problems and making
decisions.
Industrial democracy
Industrial democracy is an arrangement which involves
workers making decisions, sharing responsibility and authority in the workplace.
Integrated
communications
Integrated
Communications is a simple concept which ensures that all forms of
communications and messages are carefully linked together.
Intellectual
capital
Intellectual
capital is the term used to describe the intangible assets provided to an
entity by its employees' efforts and also knowledge assets such as patents, trademarks,
copyrights, and other results of human innovation and thought.
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