WASTE MANAGEMENT AND ORGANIZATIONAL PERFORMANCE STUDY OF SELECTED MANUFACTURING FIRMS IN RIVERS STATE
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WASTE MANAGEMENT AND ORGANIZATIONAL PERFORMANCE STUDY OF SELECTED MANUFACTURING FIRMS IN RIVERS STATE
This study is directed at investigating the extent to which waste management affects organizational performance in the manufacturing industries of Rivers State. Three Hundred and Seventy Three respondents were studied using five firms out of about 50 that are registered with the Federal Inland Revenue Services (FIRS) and manufacturing association of Nigeria (MAN). The research is to see if there is any relationship between waste management and organizational performance using the superman’s ranking correlation. The dimensions of waste management were studied under independent variables as follows: social environment Technology, Economics, Political and Administration while those of organizational performance considered under dependent variables were return on investment, profitability, and market share growth. Sets of questionnaire were distributed using the simple sampling method. The simple percentage and frequency tables SPSS were used in the presentation of results and data. The study showed that there is a positive relationship between social environment and return on investment, social environment and profitability, social environment and return on investment, social environment and profitability, social environment and market share, Technology and return on investment, Technology and profitability, Technology and market share, Economics and return on investment, Economics and profitability, Economics and market share growth., politics and return on investment, Politics and profitability, politics and market share, Administration and return an investment, Administration and profitability and Administration and market share growth. This study therefore recommends that management policies, which should guide their operation. There should be regular training and seminars on latest favourable practices on waste management. Government should help in developing the culture in all our industries.
TABLE OF CONTENTS
Cover Page i
Table of Content vii
1.0 Introduction 1
1.1 context of the problem 1
1.2 statement of the problem 7
1.3 purpose of the study 10
1.4 research questions 12
1.5 research hypothesis 14
1.6 significance of the study 15
1.7 scope of the study 16
1.8 conceptual model 17
1.9 limitation of study 18
1.10 organization of the study 18
1.11 definition of terms 19
2.0 literature review 25
2.1 history of waste management 25
2.2 the common wastes in the manufacturing industry 31
2.2.1 waste management and return on investment 33
2.2.2 waste management and profitability 34
2.2.3 waste management and market share growth 34
2.3 conceptual frame work 35
2.4 some processes used to minimize waste generation 36
2.5 types of waste 41
2.6 method of waste disposal 45
2.7 methods of waste management 50
2.8 importance of waste 62
2.9 why waste minimization 63
2.10 sources of waste 64
2.11 method used to measure quantity of waste 67
2.12 waste management regulatory bodies 68
2.12.1 Nigerian nuclear regulatory authority 68
2.12.2 National environment standard and regulatory agency
2.12.3 Waste management society of Nigeria (WAMASON) 70
2.12.4 other agencies 71
2.13 Organizational performance 72
2.13.1 external environment 75
2.13.2 internal environment 75
2.13.3 capacity 76
2.14 employee involvement 79
2.15 employee commitment 81
2.16 employee performance 83
2.17 employee productivity 85
3.0 research methodology 86
3.1 Introduction 86
3.2 population and sampling procedure 87
3.3 data collection design 88
3.4 questionnaire design 92
3.5 operational measures of variables 92
3.6 data analysis technique 94
4.0 Presentation and analysis 95
4.1 Introduction 95
4.2 questionnaire distribution and collection 95
5.0 Discussion, conclusion and recommendations 119
5.1 Introduction 119
5.2 discussion of findings 119
5.3 Recommendation 126
1.1 CONTEXT OF THE PROBLEM
Waste is an inevitable product of life. It is generated in every activity of man. Despite al precautions to either minimize or eliminate it, its presence cannot be overcome; “waste is everyone’s business. We all produce unwanted by-products and residues in nearly everything we do” (Cunningham, 2004:21). Waste can be generated in the process of production or in the use of the product from industries. As Uheghu puts its;
They are either a by-product of initial production processes or they arise when objects or materials are discarded after they have been used. In a similar way, wastes are also an inevitable part of the natural world. Growth is a production system for living materials, which produces waste as a by-product. What is more significant is that all living organism, when they die, ultimately become waste (Uhegbu, 1998.32).
However, nature knows how best to deal with the waste it creates than man does in handling the waste he generates. Once a substance becomes waste it remains so till it is fully recovered as useful or no longer poses a potential threat to the environment, such is achieved when the waste is incorporate into some useful ventures. Some of such useful ventures are; road tarring, building of houses or infrastructure, feeding of life stocks, recycling and the like where waste from a process become input materials for another. However, material which is to be used should properly be processed so that they do not cause harm to neither the environment nor to man.
The challenge in handling such waste was what led to the formation of “California against waste, a nonprofit environment research and advocacy organization in California USA in 1988. This organization focuses on conserving resources, preventing pollution and protecting the environment through waste reduction (minimization and recycling policies and programs(Selden, 2009).
In Nigeria the Koko village (In Delta State) toxic waste dropping crisis led to the formation of Federal Environment pollution Agency (FEPA). This agency gave birth to National Environment standard and Regulatory Agency (NESRE). This Agency is an organ of the Federal ministry of Environment charged with responsibility of Environment protection by seeing to compliance to National Environment laws, policies and Regulations on the environment.
Waste becomes a problem when nature cannot simply do away with it or where natural systems like decay or fermentation do not properly take care of it. In such a situation, it becomes the concern of man to lie to rest the problem he has created. In most cases, waste leads to environmental pollution or becomes hazardous to life. In either cases, it becomes a threat to the healthy existence of man.
This necessitated the world’s response to this problem through waste management waste management practice is so prominent in every company, culture and nation. The difference lies in the approach and level of development in managing the problem. The common feature significant in all practices is that it is geared towards handling the problem created by wastes so as to help man have a healthy environment. Research has shown that; ‘waste management methods vary widely between areas for many reasons; type of waste material, nearby land uses and the area available”. (Wikipedia). The free encyclopedia March 8th, (2009).
One of the fastest growing methods of waste management is waste minimization. This aims at reducing to the barest minimum the quantity of waste generated through human activities and the related problems waste generation created.
Many manufacturing companies are facing a lot of setbacks from their host communities. This is in reaction to the effect of the company’s operations and processes. In such places as in Niger Delta areas; the waters are no longer potable, the air is polluted and farm lends rendered unproductive due to waste generated in the course of production or manufacturing. Hence several communities have recorded outbreak of epidemic as a result of industrial waste (Currie, 2002).
Besides environment pollution the costs effect suffered by firms due to waste generated in production process especially in manufacturing industries enormous. Many companies have been dragged to court for cases of environmental pollution and on conviction made to pay heavy penalties. Some are made to pay heavy fines up to or more than half of their year’s profit. In 1988 for instance a company in new york-Oxychem was sued for costing the city up to $300milion for cleanup and based on this the sum of $98million was demanded for settlement. In addition to this the company was charged with responsibility of waste treatment in the State and waste treatment as the city (Wikipedia). The free encyclopedia May 5th, (2009).
In Nigeria, the drop in oil production is really a huge cost to the economy. Apart from other factors, one of the major factors that lead to this is poor waste management system and lack of adequate waste minimization technique in the oil industry. As a result, the waters are polluted, aquatic lives are lost, the air is polluted to the extent that rain water is greasy and toxic, farm lands are no longer good for crops and there is much treat to health and lives of host community’s etc. the present case between oil giant Anglo Dutch shell and its Nigerian subsidiary, and the Oruma village in Southg-East of Nigeria as a result of oil leak in 2005, which was alleged to have caused environment and social damage, is a testimony to this.
Within the manufacturing industry, with the present day high competitive market and limited material resources, companies no longer focus just on production of goods but on how best to use what is available, how best to cut cost and maximize profit. Interest is primary now on low waste technology (waste minimization) and not just on high level production technology and waste management (Boyce, 2005).
This greatest concern in waste minimization is not managing waste already created but preventing waste from being created from the unset of production process. Any benefit considered to be emanating from any activity of man should be considered alongside the problems associated with the waste it generates. The effort to achieve source reduction of waste has made produces and consumers to focus on three main goals of waste prevention:
1. To reduce the amount of waste as much as possible
2. Reuse products as much as possible, and
3. Recycle materials as much as possible. Reducing the amount of waste entails purchasing fewer products and purchasing products that have less packaging and that is last longer or are repairable. (Raven, 1998).
The effect of waste on the revenue of companies and the environment of companies, host communities are enormous. The effect of revenue include high cost of products where there is much waste in production process, high cost of waste management, penalties from court for environmental pollution and loss of goodwill from host communities due to environmental pollution. On the side of environment, waste generation does destroy the aesthetics of the environment, leads to outbreak of diseases, environmental pollution (land, water and air) and loss of life (wild and human) in cases of high toxic waste.
We have presented opinions from researchers in more advance countries on waste minimizations and organization efficiency. But just a handful of comprehensive studies have been made prominent in manufacturing sector in Nigeria. This study on waste minimization and organizational efficiency is intended to focus on manufacturing companies using some selected manufacturing organization in Imo State of Nigeria.
1.2 STATEMENT OF THE PROBLEM
Every organization exists to achieve a set of objectives. in pursing these objectives, it has a lot of factors that are working in favour or against its mission. Its survival lies absolutely on how it responds to or uses these factors to own advantages. In the present day competitive market, one of the greatest concerns or organizations is seeking means of survival.
In order for any organization to survive, it has to be able to use the available scare natural and human resources at its disposal optimally. An organization needs not only to be effective but also in operations. The effect of waste on the life of organizations in business cannot be neglected. Severally, we hear of companies that have been sued for environmental pollution, unhealthy disposal of toxic waste and some being threatened by their host communities on the base of waste they generate. It is a clear issue that one of the prominent issued that has led to crisis in Niger Delta is poor management of waste (this has brought about loss of aquatic lives, economic damages and uncondcive environment for farming in an area where the average citizen is either a fisher man, a farmer or both). This issue has led to loss of millions of Naira if not billions by the oil companies in the area; equipment are vandalized, production is reduced and employees are unsafe (Okechukwu 1983). These are problems that generation of waste and its handling can create within the company’s operations and process can also being to constitute threat to the organization when they generate waste more than they should. At times employees are injured and lots of materials wasted. Hence there is need for constant monitoring, updating of production processed and proper mechanism put in place to reduce and less the quality of goods produced with a given quantity of raw materials.
In some extreme situation, some companies have folded because they were unable to handle the problems associated with the waste form their activities. Some have spent millions of Dollars to build new locations because government forced them to move away from residential area due to environmental pollution coming from their operations. Indeed numerous are the problems associated with waste.
All the above issue predisposes us to the problem in the manufacturing industry (a great source of waste in the country) which we will look into in this study. We are to investigation the relationships that exist between waste management and organizational efficiency in the manufacturing industry. In doing this we will consider any possible implication waste generation can have on an organization’s return on investment, profitability and the market share. Finally, the researcher will ascertain the effect of waste on the wellbeing of the manufacturing companies.
1.3 PURPOSE OF THE STUDY
In view of the statement of the problem the major purpose of this study is to examine how waste management affects organizational performance in the manufacturing industry in Rivers State.
The sub-purpose is to find out how the organizations are faring, giving the way they carry out waste management.
Therefore, the research has been embarked upon to achieve following objectives.
1. To determine the relationship between social environment and return on investment in manufacturing firms of Rivers State.
2. To determine the relationship between social environment and profitability in manufacturing firms in Rivers State.
3. To determine the relationship between social environment and market share growth in manufacturing firms in Rivers State.
4. To determine the relationship between technology and return on investment in manufacturing firms in Rivers State.
5. To determine the relationship between technology and profitability manufacturing firms in Rivers State.
6. To determine the relationship between technology and growth in market share of manufacturing firms in Rivers State.
7. To determine the relationship between economy and return on investment in manufacturing firms in Rivers State.
8. To determine the relationship between economy and profitability of manufacturing firms in Rivers State.
9. To determine the relationship between economy and market share growth in manufacturing firms in Rivers State.
10. To determine the relationship between politics and return on investment in manufacturing firms in Rivers State.
11. To determine the relationship between politics and profitability in manufacturing firms in Rivers State.
12. To determine the relationship between politics and market share growth in manufacturing firms in Rivers State.
13. To determine the relationship between administration and return on investment in manufacturing firms in Rivers State.
14. To determine the relationship between administration and profitability in manufacturing firms in Rivers State.
15. To determine the relationship between administration and market share growth in manufacturing firms in Rivers State.
16. To identify the factors that hinders effective waste management in manufacturing firms in Rivers State.
1.4 RESEARCH QUESTION
Based on the statement of the purpose of the study, the following questions emerged.
1. To what extent does social environment affect return on investment in manufacturing firms in Rivers State.
2. To what extent does social environment affect profitability in manufacturing firms in Rivers State.
3. To what extent does social environment affect market share growth in manufacturing firms in Rivers State.
4. To what extent does technology affect return on investment in manufacturing firms in Rivers State?
5. To what extent does technology affect profitability in manufacturing firms in Rivers State.
6. To what extent does technology affect market share growth in manufacturing firms in Rivers State.
7. To what extent does economy affect return on investment in manufacturing firms in Rivers State?
8. To what extent does economy affect profitability in manufacturing firms in Rivers State?
9. To what extent does economy affect market share growth in manufacturing firms in Rivers State?
10. To what extent does politics affect return on investment in manufacturing firms in Rivers State?
11. To what extent does politics affect profitability in manufacturing firms in Rivers State.
12. To what extent does politics affect market share growth in manufacturing firms in Rivers State.
13. To what extent does administration affects return on investment of manufacturing firms in Rivers State.
14. To what extent does administration affects profitability of manufacturing firm in Rivers State?
15. To what extent does administration affects market share growth in manufacturing firms in Rivers State.?
16. What factors hinders effective waste management in manufacturing firms in Rivers State.
17. How can these problems be addressed in order to enhance effective waste management programme in manufacturing firms in Rivers State.
1.5 RESEARCH HYPOTHESES
From the research questions above, the following hypotheses have been formulated in this study for testing.
H01: There is no significant between social environment and return on investment in manufacturing firms of Rivers State.
H02: There is no relationship between social environment and profitability in the manufacturing firms of Rivers State.
H03: There is no relationship between social environment and market share growth in manufacturing firms of Rivers State.
H04: There is no relationship between technology and return on investment in manufacturing firms of Rives State.
H05: There is no relationship between technology and profitability in manufacturing firms of Rivers Stat.
H06: There is no relationship between technology and market share growth in manufacturing firms in Rivers State.
H07: There is no relationship between economy and return on investment in manufacturing firms in Rivers State.
H08: There is no relationship between economy and profitability in manufacturing firms in Rivers State.
H09: There is no relationship between economy and market share growth in manufacturing firms in Rivers State.
H010: There is no relationship between politics and return on investment in manufacturing firms in Rivers State.
H011: There is no relationship between politics and profitability in manufacturing firms in Rivers State.
H012: There is no relationship between politics and market share growth in manufacturing firms in Rivers States.
H013: There is no relationship between administration and return on investment in manufacturing firms in Rivers State.
H014: There is no relationship between administration and market share growth in manufacturing firms in Rivers State.
1.6 SIGNIFICANCE OF THE STUDY
The present day world-wide economic recession had posed a serious challenge to every organization to seek means and the best way to utilize available human and scare material resources it has to achieve its organizational goals. How to realize this had remained a problem that no one answers lays it to rest. It calls for an integration of various useful approaches.
Waste management however, does appear to be one of these useful approaches. This necessitated the choice of the topic of this work. This waste management will encourage material maximization in the manufacturing firms, in the understanding of the effect of waste on organizational efficiency within the manufacturing industry, the implications of waste management to manufacturing industry, the implications of waste management to the economic life of our people and the need to take new waste management approaches into serious in our environmental policies. Finally it will also aim at creating the awareness of the great impact waste has no individuals, performance of a company and on the entire human environment.
1.7 SCOPE OF THE STUDY
The scope of this study covered three main areas. These are the geographical scope, the content scope and the unit/level scope. The geographical scope of the study is the manufacturing firms in Port Harcourt, Rivers State but due to time and interest, the selected of this study has been limited to selected manufacturing firms in Rivers State. The respondent to this study constituted the management staff of the organizations like Agbason soap manufacturing company,/Camela oil company, Ololo sachet water producer, Delta Bread and Butter field bread. The content scope covered the extent of relationship between waste management and organizational performance of manufacturing firms in Rivers State.
Findings in this work will contribute to human resources management in that it will help in solving organizational problems that arises as a result of waste management.
1.8 CONCEPTUAL FRAMEWORK
Source: Mc’Odo D.M. (1999)
1.9 LIMITATION OF THE STUDY
The limitations of the study include the following Non-challant attitude of respondents:
The major constraint to this study is brought about by the nature of the research. This research is concerned with attitudes and opinions of the people which depend on the respondents’ co-operation in answering the question. Although efforts were made to make the questionnaire very comprehensive, however, it could not be all exhaustible. Consequently, the study was limited to the content of the questionnaire and the responses derived from it. Also, the results for the research will be based on responses derived from them which might not be the best the employee should have given but just gave a response without actually knowing the implications of such. There was an issue of not being able to exercise experimental control over predictor variables of organizational performance, the research just relied on analysis of observation made of naturally occurring events.
1.10 ORGANIZATION OF THE STUDY
This study is organized into five chapters. Chapter one is the introduction which is made up of the background of the study, statement of the problem, purpose of the study, research questions, research hypotheses significance of the study, scope of the study, limitation of the study, definition of terms and organization of the study.
Chapter two is titled literature review. In this chapter, the researcher reviews related literature/work of previous researcher, authors, scholars etc which are embodies in textbooks, journals, seminar papers etc in order to provide a foundation for the study.
Chapter three presents the methodology of the study which are the methods used in data collection as well as the methods to be used in analysis and data presentation. This is examined under the research design, sampling procedure, data collection method, and questionnaire design and data analysis techniques.
Chapter four deals with presentation, analysis and interpretation of data.
Chapter five is the summary of findings conclusion and recommendations from the study.
1.11 DEFINITION OF TERMS
1. Waste: Differently Authority have given different definitions for waste for some waste can be define as materials of solid or semi-solid character that the possessor no longer considers of sufficient value to retain. Waste can be any garbage, sludge, gaseous and other discharged materials resulting from other community activities. Waste therefore results from other discharged materials resulting from other community activities. Waste consists therefore of discarded materials resulting from domestic and community activities and from industrial, commercial and agricultural operation (Uheghu, 1998; 122). This definition of waste however, appears so restricted and excludes much from what waste is waste are not deliberately created, a more comprehensive definition can be seen from the perspective offered by Odocha. He defined waste as a materials which though may no longer be needed here, may become a feedback or raw materials elsewhere….. Those materials which we have control in terms of their production, disposal or discharge. (Uhegbu, 1998;, 110). From the above definitions we realize that wastes are not worthless materials but materials not put to use where they should. Thus, we can no define waste as material that was not used for its tended purpose or unwanted materials produced as a consequence of another process.
2. Waste Prevention: This refers to one of the approaches in waste management it simple refers to means used to avoid or minimize the production of waste and it is considered a more favourable solution in waste prevention aims at crimination waste from the source of its generation by preventing it being generated.
3. Waste Management: Waste management in all its ramification can be defined in the word of Uhegbu”……. A planned system of effectively controlling the production, storage, transportation, processing and disposal or utilization of waste, in a sanitary, aesthetically, acceptable and economical manner” (Uhegbu, 1992).
4. Waste Minimization: Waste minimization is one of the recent approaches to waste management. It is defined as the effort or process geared towards waste reduction.
5. Efficiency: Efficiency refers to the state of getting the best possible result out of the available resources (Human and or material). An organization is said to be efficiency when targets or objectives of an organization are realized with least minimum resources and at a minimum cost that can be employed to achieve that.
The word efficiency and effectiveness are often treated as synonyms and are used interchangeable especially in common usage. However in managing science the two terms have quite clear different meanings. Roberts (1994), a management scholar, in the context of economy with which the process consumes resources especially time and money”. While defining effectiveness as “How well the process actually accomplished its intended purpose” Here the definition comes from customer’s view point. Some scholars define efficiency as “doing things right” while effectiveness is “doing the right thing”. We note that a process can be efficient but ineffective or can be effective but in efficient. Good process ought to be both efficient and effective.
.6. Organization: The intentional structure of roles in a formally organized enterprise.
7. Organizational Efficiency: The capacity of an organization to produce desired results with minimum expenditure of energy time money, personal and materials.
8. Organizational Performance: The result achieved over a period of time by an organization in relation to the pursuit of its objectives.
9. Productivity: The measure of how well the resources are brought together in organization and utilized for accomplishment of set objectives. Productivity is reaching the highest level of performance with the least expenditure of resources.
In Nwachukwu (2000) management scholars use the terms efficiency and effectiveness; to achieve minimum result for survival is efficiency, but effectiveness is the foundation of success. “As Peter Drucker put it, efficiency is concerned with doing things rights”. (Nwachuwu, 2007).
When we’re talking of efficiency in the manufacturing industry we are referring to the situation where all resources available are used to produce the greatest possible number or quantity of goods. In an efficiency production, the number of rejects produced is zero or insignificant, there is resources maximization reduced cost of production and high profit yield.