Generally, an employee brings to the business organization a set of wants that issue from his basic needs structure. The satisfaction of there want is to some extents with the control of the make money feed their families well and enjoy better conditions of living. Hence, if working will make them earn more than they normally do, especially when they have skill and energy to do so motivation implies more incentives and inducements, which will make the workers feel more committed to duty because of the hope of the income it will aid to his regular salaries.

On various occasions, highly motivated people have achieved success despite the absence of good plans or effective organizational structure. And of course the more highly motivated the subordinate the less control is necessary to ensuring that work will be executed.

However, motivation is not a substitute for planning organizing and controlling. Motivation implies that more power has with the subordinate who may assist direction in carious ways.

An in-satisfied need creates tension, which stimulates drive within the individual. There drive generate search behaviour to find particular goals that if attained, satisfy the needs and leads to the reduction of tension. motivated employee are in a state of tension. In order to relieve this tension, they engage in activity. The greater the tension the activities to bring about the relief therefore when we see people working hard to some activity by a desire to achieving they are driven by a desire to achieving some goals that they perceive as having value to them.

Motivation and employee performance is a vital tool for achieving organizational goals. In the public sector, it is easy for the manager toad a little incentive to motivating his workers for greater performance and higher productivity.

Against the background, the estimated number of employee in National Nigeria Petroleum corporation (NNPC0 is 200 employed in Aba and 400 employed in Port Harcourt totaling 600 employed.

Therefore, research tends to finding out the problem facing Nigeria economy and employee performance. The research hope to finds out how and to what extent and improved incentives or motivation of employees in the NNPC helped in productivity and the effect of management productivity.



The Nigeria National Petroleum Corporation, otherwise known as NNPC is a commercial Integrated International Oil company engaged in exploring production processing, transportation and marketing of crude oil gas.

Their products and derivatives.

The corporation is oriented towards efficiency, profitability and financial autonomy to maintaining its leadership roles in Nigeria as long-term growth and economic development through the start up and fostering of new gas and petroleum based Industries.

The NNPC was established in 1977 by the NNPC Act number thirty three (ACT 33) Pf the Year thoroughly the merger of the Nigeria National Oil development Company (NNDC where functions were mainly operational and the then Federal Ministry of petroleum resources which performed the regulatory function. The two body were merged to create a more virile oil agency and optimize human and infrastructure resources available to government. The then NNPC, Therefore performed both Operational as well as regulatory functions and it was divided into eight divisions to carry out those functions effectively.

In October 1985, the corporation was owing to the demand of Oil Industry, re-organized into six (6) autonomous limits known as sectors in a bid to encourage innovation, efficiency and positive aggressiveness.

On Monday 21st January 1988, presidents Ibrahim Badamasi, Babangida announce the re-organization and commercialization of a more result-oriented organization. In the new re-organization, which was the out come of along period of studies, seminars, work shops and restructured into three major responsibility namely; corporate services (which includes finance administration, public affairs Personnel technology and corporate legal matter): Operation (which include ,exploration and production, includes, exploration and production, gas manufacturing, petrochemicals and National Petroleum Investment.

Crude Oil marketing and production sector of the Industry, while the Corporations services and Groups executives Director (GED) heads Operations, Arms NAPIMS is headed by a co-coordinator

A high point of the re-organization is the establishment of eleven subsidiary Companies Under the operations arms the companies are: the Nigerian Petroleum Development Company Limited 9For exploration and production of petroleum). The interpretation for NNPC and other oils Africa, Warri Refinery and petrochemical company Limited (for refinery of certain black and polypropy lever petrochemical): Kaduna Refinery/ and petrochemical company Limited (for refinery of petroleum and production of Linear Alky Benzene and heavy zalkylates): and the pipe lines and products marketing company Limited (for buying Crude oil from government, transports some to refineries to NNPC depots for sales to marketers):


Other company Includes hydrocarbon service of Nigeria Limited (for petroleum products marketing abroad in joint venture with chevron): National Engineering and technical Company (to engineering NNPC jobs and other and others to be won in Nigeria and African): Liquefied National gas company Ltd. (to set up the LNG Project in joint venture with shell, and ELF).

Port Harcourt Refinery company Limited (for refinery petroleum especially for export), and the Element petrochemicals Company Limited (to Manufacture petrochemicals in a joint venture between NNPC and the Private sectors).

Another Important Aspect of this re-organization was the transfer of the petroleum inspectorate, the rest while regulating arm of the NNPC to the Petroleum. Resources Department of the Ministry of Petroleum Resources.

A major implication of the restructuring of the NNPC is now financially autonomous in all its operations.

Therefore, the corporation is expected to make regular dividend payments to government as a returns for government investment in its.


In research studies and report of these kinds, different approaches are usually used as a heuristic diverse to explain what really constitutes the scope of such study.

Douglas McGregor late professor of managerial at MIT State the human bid of enterprises is all a piece of assumptions management Holds about control human resources determine the whole character of the enterprise.

These assumptions determine also the quality of the successive generations management.

Douglas McGregor concluded that a manager’s new of human nature is based on one of two sets of assumptions about people and that a managers new of human nature is based on one of two sets of assumptions about people and that managers tend to mould their behaviour towards subordinates ac

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