EFFECTS OF BUSINESS ENVIRONMENT ON THE PRODUCTIVITY OF BUSINESS ORGANIZATIONS IN NIGERIA

1.0 Introduction

1.1 Background of the Study

Business organization is described as a formal system of co-ordination activities of a group of people working co-operatively towards a common goal, under authority and leadership.

Meanwhile, no business venture is done in isolation of the prospective investor and customers. Here a business outfit does not command patronages, is not fit to function well. This is why is important to state all business must be co-operate with the environment to avoid business blunders. There are certain key elements or factors that are often considered in the over or total business environment there include among others.

1. Socio-cultural environment.
2. Technical forces.
3. Market competitive forces.
4. Political legal forces.

All these have been classified under task core and general environment.

Furthermore, business operations are carried out within an environment that is besieged by a number of problems and constraints. Business exists in an ever changing world where or interacts with and respond to many environmental forces.

Location of any business venture or organization has certain characteristics that must be associated with it before it can take off and flourish else its motive will be defeated. Business administrators must carry out feasibility studies before establishing any such an outfit in any given moment and place.

Moreover, there are certain key factors a business administrator must consider, which involves the environment, the location prospective users of the products, accessibility, access roads, and finance. Managers of any such business venture must be very verse in all aspects of management. He must be customer friendly, must exercise a sound academic and professional knowledge of the organizational requirements. The beneficiaries must have cause to invest in the establishment.

The quality of the working personal will be satisfactory encourage quality output. The input-output ration must be missing. The relationship between management and staff must be very cordial so as to attract investors. The relationship between the organization and its neighbors should be encouraging to ensure inter-managerial exchange of resource including sound and professional ideas and manpower technical manpower contributions.

The environment must be devoid of rancor and acrimony so as to attract potential investors and manager of sound managerial and professional acumen. The organizations disposition towards the welfare of its staff must be very dynamic and encouraging to ensure greater productivity and staff satisfaction.

The elastic beauty of the entire environment must be worthy of emulation. Any good administrator must consider recreational facilities vital to the growth of his organization as this will limit the activities of his personnel to the organization area of jurisdiction with unnecessary man-hour losses on frivolities. Any dynamic and promising establishment will be a long term planning rather than short term that is short lived. There will be room for continuity for the growth and development of the organization.

The behavior/activities of the managers should be exemplary since their behavior influence their staff. The general staff disposition and the general administrative demeanor speak volume of the tone of the organization.

These various factors influence the life of the organization; the growth and development on the quality of the personnel. The managers must be transparently honest, margin attracts or dispels customers.

Historical Background Of Nigeria Ports Authority PH (NPA)

The history of sea port development or port operations and development in Nigeria began in the middle of the 19th century; effort towards the provision of facilities for ocean going vessels started in the early 1900 with the construction of the Lagos breakwater (east and west moles) capital dredging activities aimed at opening up the Lagos lagoon commenced in 1906.

A year later, precisely 1914, the Lagos harbour was opened to shipping traffic twenty one years later (1948), capacities were expanded through the building of additional quay walls of port operations and management remained under the control of different government departments during this era (pre 1954) Cargo handling at the terminals was the prerogative of Nigeria Railways while the marine Department took charge of vessel movement in the channel up to the quays. Maintenance of the quay wall was the responsibility of the public works department.

Two months later the customers wharf on Lagos Island were opened and not long after Apapa and Port-Harcourt were added to the network of ports.

The organization made remarkable progress and in line with governments efforts to improve the services and revenue yielding potentials of the organization, the activities of Nigerian Ports were commercialized in 1992 under the name, “Nigeria Ports Plc”. However, considering the facts that the company is still wholly owned by the government, it reverted to its former name, NIGERIAN PORTS AUTHORITY in October 1996. This reversion is however, not in conflict with commercialization efforts and the commitment to improved services.

Nigerians ports Authority today operates under the supervision of the Federal ministry of Transport with the responsibility of providing specific ports and harbour services for the country's maritime industry.

1.2 Statement of the Problem

One can rightly observe that business operations and organization are mostly carried out within an environment that is besieged by a number of problems and constraints. According to Ezekwe (1999) most countries irrespective of their primitive or modern structure degree and extent of civilization, social and economic advancement educational attainment, the socio-economic status of their people and their business organization and orientation appear not to be the same. There difference in national outlook and individual differences/capacities. There are also diverse natural gifts to the people. Therefore, the environmental factors that could influence any business organization are varied but the restrictive guideline governing the system becomes the major constraint militating against such business venture and the proliferation of business without due environmental consideration.

The dynamic society demands organized and articulated programmes that will determines the degree of acceptability and patronage in a changing business world. Considerations must be given to types of business located in an environment to ensure adequate coverage and protection as these encourage productivity.

However, the organization must choose appropriate technology relevant to their business operation and also react or adapt to the demands of the environment where they are located so the choice of technology and environment will determine the organizational structure which an organization will use to achieve its overall goals. This is because environment and technology determine the three flows of activities in business organization namely input through (technology) and output of activities.

1.3 Aim and Objectives of the Study

The aim of the study is to identify the effects of business environment on the productivity of business organization. In achieving this aim, the following specific objectives were set out as follows:

1. To determine the level of competition so as to know whether environment is favorable or unfavorable.
2. To find out if the company has a good relationship with customers and what effect has on business.

1.4 Research Questions

The study suggests that strong performance requires more than an appropriate match of strategy to environment. In other words environmental analysis and diagnosis need to be done by the strategist to determine the magnitude and direction of opportunities and threats in order to respond appropriate.

In view of this research work shall attempt to address the following central issues.

• What are the strength and weakness of the organization?
• What is the impact of the environment on business organization?
• Does the company have adequate supply of its factors of production?
• Does this factor give the company any competitive advantage over the companies?
• How can business exploit the opportunities in the environment?
• How does the company respond to the changes in the environment?
• Does the organization engage in market research? Has this contributes to the ability generate new product and new approaches to doing business?

1.5 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

H0: There is no significant effect Of Business Environment on the Productivity Of Business Organization in Nigeria Port Authority

H1: There is significant effect Of Business Environment on the Productivity Of Business Organization in Nigeria Port Authority

1.6 Significance of the Study

The purpose of this work has greatly been outplayed. This work greatly shows that the micro and macro economic situation in the world have necessitated the need to explore the influence of business environment on the productivity of business organization.

Consequently upon this also is the proliferation of business without adequate feasibility studies which will guarantee uninitiated production and liquidity ratio and capital. This study will be beneficial to business organization as it gives numerous reasons why feasibility studies should be conducted in order to establish the organization to be sited to ensure maximum productivity in a competitive market.

Finally, students and potential investors for knowledge acquirement also equipped good future business administrations in any party of the world and for wise investment decisions.

1.7 Scope of the Study

This research work on the influence of business environment on the productivity of business organization will be centered on Nigeria ports Authority Port-Harcourt Rivers State.

1.8 Limitation of the Study

Problems and prospects, the major focus in both small and medium scale business organization in order to determine their various degrees of environmental influence on productivity/performance also investigate their competitive analysis of scale.

In depth analysis of this research will be affected by some factors such as finance incorporating attitude of managers to be visited by the researcher in discussing vital issues associated with location of business venture and environmental influence militating against productivity in our changing business world.

1.9 Definition of Terms

Organization: This is a deliberate association of two or more individuals working co-operational towards a common objective under authority and leadership.

Business Organization: These are organization primarily oriented towards economic production.

Productivity: A measure of how well resources are bought together in organization and optimally utilized for accomplishing a set of results.

Management: This is the process of directing, coordinating and influencing the operations of organization so as to obtain desired results and enhance performance.

Technology: The science of technical process in a wide, through related field of knowledge. This industrial technology embraces the chemical, mechanical and physical science as these are applied in industrial processes.

Decision Making: This is a series of steps that starts with an identification of problem to be solved, an analysis of information animated in selecting from several alternatives to solve the problem under consideration. It can simply be said to mean a deliberated adoption of means to ends

Effectiveness: The extent to which an organization as a social system, gives certain resources and means, fulfils its objective without incapacitating it means and resources and without placing undue strain upon it members.

Business Environment: This is a complex and interacting elements or forces which are external to the firms but are currently or potentially of significant consequences to the future performance of the business enterprise.