IMPACT OF WORKFORCE ENGAGEMENT ON PERFORMANCE OF MANUFACTURING FIRMS

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ABSTRACT

This study investigated the impact of workforce engagement on performance of Manufacturing Firms in Akwa Ibom State. The study sought to ascertain the ascertain the impact of job security on employee job satisfaction of Manufacturing Firms in Akwa Ibom State, assess the effect of rewards and recognition on employee output of Manufacturing Firms in Akwa Ibom State, examine the influence of involvement and participation on effectiveness of Manufacturing Firms in Akwa Ibom State and analyze the factors affecting workforce engagement on performance of Manufacturing Firms in Akwa Ibom State. This research adopted a survey design. This study adopted two sources of data collection which are primary data and secondary data. The population of the study was 237 staff. Thus, the sample size was 149 which were distributed to the respondents in the study area. One hundred and thirty nine (139) were returned while ten (10) were rejected. The researcher used a simple random sampling technique. ANOVA, correlation coefficient and regression model was used to test hypotheses of the study. The study found out that Job security has a significant effect on employee job satisfaction of Selected Manufacturing Firms in Akwa Ibom State. Rewards and recognition has a significant impact on employee output of Selected Manufacturing Firms in Akwa Ibom State. Involvement and participation has a significant effect on effectiveness of Selected Manufacturing Firms in Akwa Ibom State. The study concluded that Ineffective communication and inefficiency at work are the challenges affecting workforce engagement on performance of Selected Manufacturing Firms in Akwa Ibom State. The study recommended that organization should hold to high esteem effective communication and job security as a satisfactory form of appreciation that will stop employee thinking about other opportunities from other organization.









TABLE OF CONTENTS


Cover Page                                                                                                                 i

Title Page                                                                                                                    ii

Declaration                                                                                                                 iii

Certification                                                                                                               iv

Dedication                                                                                                                  v

Acknowledgements                                                                                                    vi

List of Tables                                                                                                              vii

Abstract                                                                                                                      viii


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                                                                                        6

1.5       Research Hypotheses                                                                                      6

1.6       Significance of the Study                                                                               7

1.7       Scope of the Study                                                                                          7

1.8       Limitations of the Study                                                                                 8

1.9       Operational Definition of Terms                                                                    8

1.10    Brief History of the Organization Under Studied                                          9


CHAPTER 2: REVIEW OF RELATED LITERATURE

2.1 Conceptual Framework                                                                                        11

2.1.1 Workforce engagement                                                                                                                         11

2.1.2 Types of employee engagement                                                                                    14

2.1.3 Importance of employee engagement                                                                15

2.1.4 Employee engagement strategies                                                                      16

2.1.5    Salaries and promotion                                                                                   19

2.1.6    Rewards and job security                                                                               22

2.1.7     Empowerment and participation on employee commitment                                            24

2.1.8    Participation                                                                                                   25

2.1.9    Communications and employee participation                                                27

2.1.10  Methods of employee participation                                                                29

2.1.11  Employee commitment and in relation to retention                                       31

2.1.12 Work-Life balance and it impact in retention                                                 34

2.1.13  Challenges of employees’ retention                                                                           39

2.1.14 Employee engagement and organizational performance                                43

2.1.15  Relationship between employees’ retention and organizational                         45

Performance

2.1.16  Organizational performance                                                                           47

2.2       Theoretical Framework                                                                                  49

2.2.1     Maslow’s Hierarchy of Needs Theory (Abraham Maslow, 1943)                            49

2.2.2     Herzberg’s Two Factor Theory (Frederick Herzberg, 1959)                                51

2.2.3    Equity Theory (John Stacey Adam, 1963)                                                     52

2.3       Empirical Review                                                                                           53

2.4       Gap in Literature                                                                                            57

2.5       Summary of Reviewed Related Literature                                                     58


CHAPTER 3: METHODOLOGY

3.1       Research Design                                                                                             59

3.2       Sources of Data                                                                                               59

3.3       Population of the Study                                                                                  59

3.4       Sample Size Determination                                                                            60

3.5       Sampling Technique                                                                                       60

3.6       Description of the Research Instrument                                                         61

3.7       Validity of the Research Instrument                                                               61

3.8       Reliability of the Research Instrument                                                           62

3.9       Method of Data Analysis                                                                                62

3.9.1    Model Specifications                                                                                      62


CHAPTER 4: DATA PRESENTATION AND ANALYSIS

4.1       Return of Questionnaire                                                                                 65

4.2       Data Presentation                                                                                            68

4.3       Test of Hypotheses                                                                                         72

4.4       Discussion of Results                                                                                     76


CHAPTER 5: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1       Summary of Findings                                                                                     78

5.2       Conclusion                                                                                                      78

5.3       Recommendations                                                                                          79

5.4       Areas of Further Studies                                                                                 79

5.5       Contributions to Knowledge                                                                          79

References                                                                                                     

Questionnaire

Appendices

 

 

 

 

 

 

LIST OF TABLES


3.1       Population Distribution Table                                                                                    59

3.2:      Sample Size Table                                                                                                      61

4.1:      Return of Questionnaire                                                                                             65

4.2:      Gender of the respondents                                                                                          65

4.3:      Gender of the respondents                                                                                          66

4.4:      Experience of the respondents                                                                                    66

4.5:      Management Cadre of the respondents                                                                      66

4.6:      Educational Background                                                                                            68

4.7:      Ascertain the impact of job security on employee job                                               69

satisfaction of Manufacturing Firms in Akwa Ibom State.

4.8:      Assess the effect of rewards and recognition on employee output                                     70

of Manufacturing Firms in Akwa Ibom State

4.9:      Examine the influence of involvement and participation on effectiveness               71

of Selected Manufacturing Firms in Akwa Ibom State.

4.10:    Analyze the challenges affecting workforce  engagement on organizational 72

performance of Selected Manufacturing Firms in Akwa Ibom State.

4.11:    Regression test on Job security on employee job satisfaction                                 73

4.12:    Regression test on Rewards and recognition on employee performance                74

4.13:    Regression test on Involvement and participation on effectiveness                                    75

4.14:    Multiple regression, on Ineffective communication and inefficiency                 76

at work on workforce engagement

 

 



 

 

 

CHAPTER 1

INTRODUCTION


1.1       BACKGROUND OF THE STUDY

Workforce engagement are some of the important issues within organizations that aimed to gain a competitive edge in the global market. Normally it is in a firm’s best interest to put its effort to engage and to avoid losing of the talented employees that they have, and not recruiting anyone (Branham, 2005). Organizations all over the world are giving more attention and importance to this issue as they know that high level employees’ engagement affects the performance of the employees’ as well as organization (Chung, & Sue-Ting, 2009). Company benefits, employee attitude and job performance play an important role in organizations to engage their workforce. In addition, offering workforce benefit such as reasonable flexibility with work life balance, performance reviews and performance based salary increase along with traditional benefits such as paid holidays and travelling allowance aid firms to be able to manage their workforce engagement. Therefore, when companies analyze the cost of replacing workers can be high, the problems associated with finding and training new employees cannot be considerable, and the specific workplace-acquired skills and knowledge people walk away with what can take years to replace, they will be forced to put all the necessary things in place just to retain and engage their competent workforce (Sarah, 2009).

 

Furthermore, managers now recognize new paradigms that can save cost and maximize profit there is the need to successfully engage high talent employees who survive organizational restructuring, downsizing, consolidation, reorganizing or re-engineering initiatives (Storey, 2005). More specifically, employees have been linked to increased productivity, good customer service, greater profitability and overall organizational survival. To achieve such link, management must not only face current issues of employee but ensure that they put in place mechanisms and equipment’s that will engage its workers (Fox, 2009). Organizations face a lot of challenges when they have a high turnover rate as a result of employees leaving the organization for reasons such as job dissatisfaction, poor working conditions, non-payment of salary and lack of career development. However, high loss of staff leads to low performance in the organization therefore, organizations enacted policies and practices on engaging workers so as to ensure that workers stay in the organization for a longer period of time (Rawat, 2013). Managers understand that having the right workforce in the right place at the right time to maximize sales volume which has become the most important factor in ensuring ongoing organizational success. Thus, managing workforce effectively is obviously significant, on the indications of acquisition, allocation, development, retention and succession that is even more important since value adding to worker can best create competitive advantage to firms in the competitive market (Milkovich & Newman, 2004).

 

Engagement of workforce can be a vital source of competitive advantage for any organization since workers are the active factors who work to bring about certain ends in organizations. However, many organizations are faced with the difficult task of engaging their work force as well as making sure that their workers remain loyal and committed to their organizations. Workers engagement is primarily concerned with reasons why employees prefer to remain with their current organizations (Ejiofor & Mbachu, 2001). Globally, firms are recognizing the value of investing in their workforce now more than ever. However, firms understand that to stay on top in the global economy, they need to strategize on developing engaging their workforce towards gaining competitive advantage (Carnegie, 2001).

 

In view of these developments, it is therefore important for firms to beat competition through the engagement of its workforce. Also due to the intrinsically close ties between employees and clients, losing those workers completely can mean loss of valuable customer relationship. Organization is inability to engage workforce brings about workforce turnover and thus, high worker turnover is costly to the organization and the society in particular (Ramlall, 2003). It is therefore imperative for organizations to adopt appropriate engagement strategies to engage competent workforce because organizations performance is often dependent on the knowledge and skills of its workers. Engaging competent workforce should be a matter of concern to managers since “their leaving creates a loss to the organization of its intellectual capital or intangible assets” (Chew, & Chan, 2008).

 

Workforce engagement is one of the key issues within competitive organizations today as workers are the most valuable assets in any organization. Normally it is in a company’s best interest to put its effort in engaging the talented workers that they have, and not recruiting anyone new (Branham, 2005). Organizations rely on the expertise, knowledge, skills, capital resource and capacity development of their workforce in order to compete favorably and indeed gain competitive advantage in the international market. However, engagement of highly skilled employees has become a difficult task for managers, as these categories of employees are being attracted by more than one organization at a time with various kinds of incentives (Powell, & Lubitsh, 2007). This behooved on management to create an enabling and sustainable critical culture and strategies to work out engagement systems and structures for their workers working in these contemporary organizations (Nwokocha, 2012).

 

The top priority for any organization should be the attraction, engaging of competent workforce. Even the most proficient companies can be seriously damaged because of failing to implement good workforce engagement strategies. A considerable investment in both time and money is required in order to find the right people. Thus, in order to increase employee’s performance, it is critical for organizations to ensure that they create and adopt workforce engagement strategies. A high turnover rate is a serious problem that most organizations are now facing and this is due to reasons such as poor working conditions, no career advancements, job dissatisfaction as well as lack of salary package. Furthermore, workers are either under engaged or disengaged in the organization, this in turn leads to low employee performance and as a result organization have to come up with strategies to keep worker in the organizations (Waldman, 2008).

 

However, engagement of workers are not only important because of the costs incurred to recruit and train. It is important because it helps organization to retain their most talented employees from being poached. When a worker leaves an organization, they take with them information that is very valuable about the organization, the current projects, customers as well as past history about the competitors to their new organization. Therefore, a good employer should be able to know how to attract, engage his workforce (Sandhya & Kumar, 2011). In order to accomplish an organizations goals and objectives, the engagement of employees has proven to be a very significant factor. For any organization to be able to gain the desired competitive advantage, they need to be able to engage their workers first (Vellani, 2012). Workforce engagement strategies refers to the plans, means or set of decision-making behavior that is set in place by organizations in order to effectively retain their competitive workforce to improve employee performance. Most researchers have found that employees will remain and work in order to ensure the achievement of organization goals is successful only when there is adoption and implementation of appropriate employee engagement (Griffeth, & Hom, 2001). Workforce engagement influences both firms and their workers; firms have to incur the expenses on recruiting and training of new employees, and as well increases the benefits of the workers to keep them in the organization. However, incoming employees on the other hand may be more highly skilled and better educated when recruited and while exiting employees in the organization might like their job which motivates them to stay in the organization. Therefore, workforce engagement may increase organizational performance, and also provide opportunity which has fascinated the growth of the organization (Sarah, 2007). This study seeks to examine the impact of workforce engagement on performance of Manufacturing Firms in Akwa Ibom State.


1.2       STATEMENT OF THE PROBLEM

Interestingly, while today's organizations are indeed different, the challenge of engagement is growing. It is quite sad that businesses today are not adopting some of the strategies used in the past to ensure that more workers are engaged. Moreover, most organizations in Nigeria are not being creative in devising strategies to keep their workforce. Firms today are not creating an environment which encourages their workers to remain loyal to the organization. Engagement challenge is due to greater movement in global learning society. As the world is moving towards more industrialization, employment opportunities are also keeping pace with this development hence workforce engagement has gained the attention as a major issue in the development of organizational competence. Management can no longer influence the decision of employees, whether to leave or to stay. Workforce engagement has become a critical factor of influence for performance of the larger organizations.

 

The key problem to workers engagement is that the organization loses the most experienced and skilled staff that the organization had invested heavily in training on various organization job task functions as a result of unsafe working conditions, noisy work environment, dissatisfaction, low level of motivation and satisfaction, poor salary scale, status, job insecurity, poor performance appraisal, supervision favoritism and harsh company policy. On the other hand,

There is no involvement and participation of workers on the decision making of the firm, workers no longer feel the impact of decision happening in the firm, since they do not participate in such decision. Furthermore, as result of increased level of employees’ retention rates, many organizations are found wanting of various forms of workers communication, delay of employees’ benefits, decreased remuneration and offering of various employees’ rewards, recognitions and awards, not even a warm handshake for a job well done. Also, some managers find it very hard to say thank you to workers best performance, this however has led to decreased organization performance and a decline in sales volume or quality service delivery.

 

Managers no longer consider the amount of workload given to an employee, these heavy workloads among employees have reduced their commitment and loyalty and also causes staff absenteeism, lateness, turnover, which almost in most cases leads to the death of the employee. When employee moods reduce, it cripples employee retention, when an employee is less engaged it reduces job performance of the employee. Furthermore, poor supervision, fringe benefits, contingent rewards, operating procedures, co-workers, working environment, ineffective communication, work experience, age, and sex differences, salary, efficiency at work, fringe supervision, and co-worker relation are the most important factors contributing to employee commitment and engagement, which affects market share of the organization. Managers fail to understand the different response of transformation leadership, organization culture and job satisfaction to supervisors. Thus, if employees are not well motivated through, fair promotions and justifiable salary differences, they will be less committed to work less. There is a dearth on training and development, empowerment and participation, job safety and security and rewards and recognitions, all these indicators keep employees committed and engaged to work. The challenge most managers face today is the formulation of effective workforce engagement that will help in retaining workers that are considered critical in attaining organizational goals. Workforce who are highly motivated, committed and engaged are more likely to stay longer on the job than those who are bored and dejected. It is against this backdrop that this study seeks to examine the impact of workforce engagement on performance of Manufacturing Firms in Akwa Ibom State.


1.3       OBJECTIVES OF THE STUDY

The main objective of this study is to examine the impact of workforce engagement on performance of Manufacturing Firms in Akwa Ibom State. The specific objectives are to:

      i.         ascertain the impact of job security on employee job satisfaction of Manufacturing Firms in Akwa Ibom State.

     ii.         assess the effect of rewards and recognition on employee output of Manufacturing Firms in Akwa Ibom State.

   iii.         examine the influence of involvement and participation on effectiveness of Manufacturing Firms in Akwa Ibom State.

   iv.         analyze the factors affecting workforce engagement on performance of Manufacturing Firms in Akwa Ibom State.


1.4       RESEARCH QUESTIONS

      i.         What is the impact of job security on employee job satisfaction of Manufacturing Firms in Akwa Ibom State?

     ii.         What is the effect of rewards and recognition on employee output of Manufacturing Firms in Akwa Ibom State?

   iii.         What is the influence of involvement and participation on effectiveness of Manufacturing Firms in Akwa Ibom State?

   iv.         What are the factors affecting workforce engagement on performance of Manufacturing Firms in Akwa Ibom State?


1.5       RESEARCH HYPOTHESES

The hypotheses were stated in a null form

Ho1:     Job security has no significant effect on employee job satisfaction of Manufacturing Firms in Akwa Ibom State.

Ho2:     Rewards and recognition has no significant impact on employee output of Selected Manufacturing Firms in Akwa Ibom State.

Ho3:     Involvement and participation has no significant effect on effectiveness of Selected Manufacturing Firms in Akwa Ibom State.

Ho4:     Ineffective communication and inefficiency at work are not the factors affecting workforce retention and engagement on performance of Manufacturing Firms in Akwa Ibom State.  

 

1.6       SIGNIFICANCE OF THE STUDY

The beneficiaries of the study include: Management, Workers, Academicians/Researchers, Government, Policy Makers

Management: The study would provide information to assist HR managers to strengthen the relationship and communication between management and subordinates thereby enhancing organizational performance.

Workers: This study would help workers to do better and to raise self-esteem and motivation, resulting in job satisfaction, involvement and participation.

Academicians/Researchers: The study would be source of reference material for future researchers on other related topics; it also helped other academicians who undertake the same topic in their studies.

Government: This study would help in coming up with policies and also come up with decision making and implementation processes of the policies related to workers retention and engagement.

Policy Makers: This study would help in enlightening the major stakeholders concerning the influence of workers retention and engagement on organizational performance and this aided toward policy formulation.


1.7       SCOPE OF THE STUDY

This scope of the study is discussed from three perspectives; the content scope, unit scope and geographical scope.

Unit Scope: This involve all the employees of Jubilee Syringe Manufacturing Co. Ltd, Alphastar Paints & Industries Ltd and Pristol Products.

Content Scope: The study examined the Impact of Workforce Engagement on Performance of Manufacturing Firms in Akwa Ibom State. The study was design to ascertain the impact of job security on employee job satisfaction of Manufacturing Firms in Akwa Ibom State, assess the effect of rewards and recognition employee output of Manufacturing Firms in Akwa Ibom State, examine the influence of involvement and participation on effectiveness of Manufacturing Firms in Akwa Ibom State and analyze the factors affecting workforce engagement on performance of Manufacturing Firms in Akwa Ibom State.

Geographical scope: The location of Alphastar Paint Industrial Limited is located in Block 3, Asari Store, Ada Shopping Complex Essienta, Calabar Municipal, Nigeria. Pristol Products Plot 53b, Ewet Housing Estate, Sandtex Paint, Car Wash, Maitama, Uyo Akwa Ibom, Nigeria. Jubilee Syringe Manufacturing Company Limited is at No:1 Jubilee Close off Jubilee Road, Awa, Onna L.G.A. Akwa Ibom State.


1.8       LIMITATIONS OF THE STUDY

Dearth of Information

The attitudinal issues with the staff who were present in the firm were biased to give information some even gave out false information about the study, which brings a dearth of information.

Inadequate Information/Attitude of Respondents

The challenges encountered by the researcher where mostly from the selected firms where respondents are not always around in their respective departments to give information about the study.

Questionnaire collection

However, the information used for this study was the little questionnaire filled correctly by the respondents met on ground. The voids questionnaires were discarded.


1.9       OPERATIONAL DEFINITIONS OF TERMS

Communication is the act of developing meaning among entities or groups through the use of sufficiently mutually understood signs, symbols, and semiotic conventions.

Employee Engagement is a fundamental concept in the effort to understand and describe, both qualitatively and quantitatively, the nature of the relationship between an organization and its employees.

Job Security is the probability that an individual will keep their job; a job with a high level of security is such that a person with the job would have a small chance of losing it.

Motivation: Motivation is defined as a psychological force that determines the direction of a person's behavior in an organization, a person's level of effort and a person's level of persistence.

Organizational Performance: Involves analyzing a company’s performance against its objectives and goals. In other words, organizational performance comprises real results or outputs compared with intended outputs. 

Rewards and Recognition is a system where people are acknowledged for their performance in intrinsic or extrinsic ways.

Retention Strategies: Are policies and plans that organizations follow to reduce employee turnover and attrition and ensure employees are engaged and productive long-term.

Salary: A fixed regular payment, typically paid on a monthly basis but often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker.


1.10 BRIEF HISTORY OF THE ORGANIZATION UNDER STUDIED

Jubilee Syringe Manufacturing Company Limited

Jubilee syringe manufacturing company limited was established in 2017 for the purpose of producing disposable syringes in Nigeria. JSM syringes are made from the highest quality, medical grade raw materials with state of the art technology. Our 2-part luer slip type syringes come in 3 sizes (2ml, 5ml, 10ml). our factory is located in Onna Local Government Area, Akwa-Ibom State. it covers 8,000m2 of indoor space and 42,000m2 of outdoor space.


Mission

JSM is the largest factory in Africa with an annual production capacity of 350 million and is set to be the leader in the syringe manufacturing sector in Africa. Jubilee syringe manufacturing company ensures that its customers are provided with the highest quality disposable syringes, thereby helping people of Africa live healthy lives. We aim to deliver superior growth and profitability to our shareholders by continuously improving productivity and lowering costs. JSM and its employees shall abide by applicable laws and regulations and have the utmost respect for mother nature, for our community and for each other at all times.

 

Vision

We envision an Africa where our products improve healthcare services and patient safety. we will earn our customers’ trust and strive to exceed their expectations by never compromising from our quality and our integrity. we aim to be an African leader in the production of disposable syringes.


Pristol Products

We are well known for production of personal hygiene products and toiletries. We produce high quality air-freshner, liquid soap, izal, disinfecting liquid, olive oil to meet industrial standard. We also offer business continuity and development support. We are committed to entrepreneurship development by offering training on various products,some of them are listed earlier. Plot 53b, Ewet Housing Estate, Sandtex Paint, Car Wash, Maitama, , UyoAkwa Ibom, Nigeria


Alphastar Paints Industries LTD

The company initially started business as Celebrity Paints Limited in Port Harcourt, Nigeria in 2005 and later expanded its business to the best standard with the incorporation of Alphastar Paints Limited in 2010. Alphastar Paints Industries Limited is positioned to manufacture high quality paints products that will match international standards. The company was incorporated in 2010 with its head office and factory at 10 Elebele Light Industrial Layout Yenagoa, Bayelsa State, Nigeria. The company is one of the leading paints manufacturers in the southern part of Nigeria with an array of product lines, which include Emulsion, Texcoat, Gloss, Industrial, Automotive, Marine Paints, Wood Finish and Putty of different kinds. The quality policy of the company is well defined in such a way as to cover the framework for establishing and reviewing the products quality from time to time. The company is on course of being ISO 9001:2008 certified.

Alphastar Paint Industrial Limited is located in Block 3, Asari Store, Ada Shopping Complex Essienta, Calabar Municipal, Nigeria. Company is working in Marine Services business activities. Block 3, Asari Store, Ada Shopping Complex Essienta, Calabar Municipal, Cross River.

 

 

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