1.1 Introduction
Corporate performance is a composite assessment of how well an organization executes on its most important parameters, typically financial, market and shareholder performance. Corporate performance analysis is a subset of business analytics / business intelligence (BA/BI) that is concerned with the "health" of the organization, which has traditionally been measured in terms of financial performance. However, in recent years, the concept of corporate health has become broader (Techtarget, 2021).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Limitations of the Study and Definition of technical terms.
1.2 Background of Study
Since the 1960s, a corporate group or holding company business structure has been as an important strategy for corporate growth in the world (Eukeria & Favourate, 2014). A corporate group is a collection of legally independent companies operating as a single economic entity (Gajewski, 2013). In a corporate group or holding company business structure, the group includes two or more diversified companies under a single power of control, governance, and leadership (Kenny, 2012).
Discipline in an organization ensures productivity and efficiency. It encourages harmony and co-operation among employees as well as act as a morale booster for the employees. According to Fenley [1998] the management of workplace discipline remains a key problem in employee relations, and is one of the most discernible sources of conflict at work. Decenzo and Robbins [1999] define discipline as the conditions in the organization where employees conduct themselves in accordance with the organization's rules and standards of acceptable behavior. Redeker [1983] explains that discipline aims to create and maintain mutual respect and trust between management and the employees. He further notes that discipline may have long term cost to the company if it is not well managed and these include legal costs, time lost in preparing or attending court cases, reduction in productivity and expense associated with replacing staff.
Discipline is very essential for a healthy industrial atmosphere and the achievement of organizational goals .Various disciplinary management mechanisms can be manipulated in the organization which includes positive and negative reinforcement of expected behavior in the organization. Organizations can do this through the use of the employment code of conduct, rewarding good behavior, punishing undesirable behavior and other indirect methods of putting trust among employees. Discipline in an organization ensures productivity and efficiency. It encourages harmony and co-operation among employees as well as act as a morale booster for the employees (monnapa, 2000).
Odiagbe (1998) looks at discipline as “a normal behavior or codes of conduct based on principles of natural justice which modifies or controls behavior to reduce misbehavior and makes organizational goals accomplishment possible. This point shared by Harris (1976) who believes that discipline is “the process of training workers so that they can develop self-control and become more effective in achieving organizational goals”. He goes further to say that “the purpose of the supervisory imposed disciplinary process in the development and furtherance of the type of performance from the individual employee that will be conducive for the achievement of organization goals.
The key word with these two scholars is goal, thus discipline is seen as a tool whose effective use can result in the realization or accomplishment of organizational goal. Harris (1976) argues that both positive reward and negative penalties could be used to encourage the desired behavior. He sees discipline as giving reward or punishment. To him discipline should be visualized as the development of the ability to analyze situations to determine what the correct behavior is and to decide to act favourably in advance receiving specific reward or penalties.
Knight (2014) therefore defines discipline as a pattern of behavior which can be traced back from a particular training. This behaviour is portrayed by a person in order to demonstrate his personal traits. An employee, for example reflects a particular behaviour in a workplace situation and his behavior contributes towards attaining his or her goal at the organization. Dumisan, (2002) define discipline as a system of rules and mechanism for ensuring that disciplinary codes are followed. This implies that every organization has its rules and regulation “dos and don’ts”. Observance of these sets of rules in itself is discipline.
In the view of Odeyemi (2001), ‘Discipline also refers to punitive actions or measures taken by an organization against erring worker, it is punishment for wrong doing by an employee. Discipline has some purpose which includes correcting the erred employee, re-directing of staff to the set objectives and to prevent future occurrence of such misdeed by either the affected staff or the prospective victim. It serves as a preventive and deterrent measure against diversion of attention and goals. Disciplinary measures are guided by basic principle so as to accomplish its desired purposes in an organization.
Odiom (2001) observed that that ‘a fair degree of predictable behavior is needed from individual(s) for the achievement of organizational goals and objectives. One of the means in ensuring decorum, progress and effectiveness in organization is discipline. Where there are no proper disciplinary procedures for erring officers there will be a dislocation of effective organizational functionality.
Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Impact of Employee Discipline on Corporate Performance.
1.3 Statement of Problem
In a corporate group, lack of effective organizational culture and poor cultural integration affect organizational performance and decrease shareholders return (Idris et al., 2015). Eaton and Kilby (2015) indicated that 72% of corporate leaders acknowledged the importance of organizational culture to organizational performance but only 25% identified an effective organizational culture for their organization. The general business problem was some company managers lack an effective organizational culture, which often results in poor performance and loss of productivity within the corporate group (Eaton & Kilby, 2015; Viegas-Pires, 2013). The specific business problem was that some senior company managers lack strategies to establish an effective organizational culture to improve performance (Hirsch, 2015).
Disciplinary issues in most organizations have been handled in a way that creates conflict and hatred in the workplace. In most cases, disciplinary measures are being used as punitive rather than corrective purpose.
Apart from this, the effectiveness of disciplinary measure rests on effective rules and regulations, most times rules are violated, protocol jumped and procedures avoided, these seriously undermines the effectiveness of discipline measures especially in public organizations where violation of laws is at the highest. This has made the disciplinary actions less effective and invariably affects the organization negatively.
Majority of the employee who pursue their issue win most of the labour cases such that the organizations end up reinstating them, which ultimately affect organizational performance. Organizations therefore have not been able to use disciplinary systems that aim at correcting behavior without hurting the worker.
1.4 Aim and Objectives of the Study
The aim of the study is to investigate the Impact of Employee Discipline on Corporate Performance. In achieving this aim, the following specific objectives were set out as follows:
- To appraise the impact of employee discipline on corporate performance
- To determine the extent to which indiscipline has influenced the corporate performance of employees
- To identify the major causes of staff indiscipline in most corporative in Nigeria
- To identify the nexus between transparent disciplinary procedures and eradication of gross indiscipline in corporative
- To investigate into those factors hindering the effectiveness of discipline measure in public corporative
- To suggest possible recommendations that would enhance a more effective discipline system in public corporative in Nigeria
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- Does corporate performance influences organizational achievement?
- What are the strategies and activities used enhance corporate performance in an organization?
- What are the strategies and activities implemented that leads to higher productivity and performance without affecting the diversified business strategy?
- What have employees accomplished using their corporate performance to enhance performance and productivity?
- What other successful strategies have you used in improving performance and productivity in the corporate group?
1.6 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.
Hypothesis One
- H0: Employee discipline has no significant impact on overall organization performance
- H1: Employee discipline has significant impact on overall organization performance
Hypothesis Two
- H0: Effective disciplinary action is not a viable instrument of directing employee behaviour towards the accomplishment of corporative goal
- H1: Effective disciplinary action is a viable instrument of directing employee behaviour towards the accomplishment of corporative goal
Hypothesis Three
- H0: There is no meaningful relationship between disciplinary action and correction of employee unwanted behaviour
- H1: There is meaningful relationship between disciplinary action and correction of employee unwanted behaviour
1.7 Significance of the Study
Discipline is highly instrumental to effective corporate performance. However, sequel to the fact the current level gross indiscipline in public organization is alarming and its attendant effects on the performance of public corporative in Nigeria makes this study imperative. Therefore, the researcher considers it significant to bring to light the relevance of employee discipline on organizational performance. Thus, this study will reveal the impact of effective disciplinary measures on both employee and corporate performance.
This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.
1.8 Scope of the study
This study focuses primarily on an appraisal of the impact of employee discipline on corporate performance using Halliburton in Port Harcourt, River State as a case study.
1.9 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this project work. There were lots of information needed from the staffs of this institution to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
- Research material: availability of research material is a major setback to the scope of the study.
- Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
1.10 Definition of Terms
Performance: Performance is the consistent ability to produce results over prolonged period of time and in a variety of assignments. Its elements include effectiveness, efficiency, productivity, quality and behaviour. Performance can thus be tangible or behavioural. It also implies output in relation to a job done or practice undertaken
Employee: Personnel otherwise known as employee are the body of men and women who are employed to accomplish a particular task or render a particular service in an organization and are being paid for the work done or service rendered
Discipline: Discipline as a system of rules and mechanism for ensuring that disciplinary codes are followed.
Organization: This is a body of people assembled together to accomplish a specified or predetermined objective
Appraisal: This is a judgment, assessment or evaluation of the value of something especially a formal one.
