THE IMPLICATION OF EMPLOYEES PRODUCTIVITY ON ORGANIZATIONAL PERFORMANCE: EVIDENCE FROM NIGERIAN PUBLIC AND PRIVATE SECTORS

Abstract

This study examined the effect of employees’ productivity on organizational performance in Nigerian public and private sectors in Nigeria. The study adopted Fredrick Herzberg Two Factor Theory of Motivation as its theoretical foundation. Data for the study were primarily generated using structured questionnaires. The study population consisted of 2028 staff of Kano State office of the Head of Service and AA Rano Depot located in Lagos State. The sample size was determined as 327 using Krecie and Morgan (1970) table for determining sample size. Data analysis was carried out through Structural Equation Modeling (SEM) with the help of PLS 4.0. The findings from hypothesis testing showed a statistically significant relationship between employees’ productivity and organizational performance. It was revealed that 35.8% of the variations in organizational productivity can be attributed to employee performance. The study found that employee performance is a major determinant factor of organizational productivity in both public and private sectors in Nigeria. The study finally recommended that it is important for organizations both public and private to give their employees enough and sustainable care ranging from motivational packages, better management policies, conducive working environment, effective leadership style for better performance and higher productivity.