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The continued decline in productivity government parastatals despite huge financial and material resources invested in them has been a matter of concern to all well meaning Nigerians. This has in its part contributed to the economic crisis which the country is currently facing. This research work is designed to look into the motivational aspect of the work environment and its relative effect on productivity in these parastatals. Some how workers in the public sectors of the economy are no effectively motivated into increasing their productivity and this has a major factor in contributing to the decline in productivity and subsequently to the present condition of the economy. these it is the purpose of the study to investigate the assumptions as stated in the hypothesis. The data used for this research were collected mainly through the use of questionnaire. These questionnaires were positioned in various cadres of workers in the Imo State hospital manageemnt board in all the three (3) zones of the state. The data collected were analyzed by percentage and chi-square statistical methods the findings of the research are: 1. That a fairly good majority of workers in these parastatals are happy with their job 2. That the management of these parastatals does not pay worker nor reward staff for putting more effort in their job 3. That majority of the workers opted for promotion salaries recognition high payment of wages/salaries as the major conditions for them to increase their productivity 4. The management of the parastatals virtually make no effort to recognize and compensate workers. 5. That sponsored training programme in the parastatals are few 6. That very good inter-relationship exist among the worker. 7. That 96 percent of workers affirmed to the fact that if they are compensated affectively they will increase their productivity. 8. That the inherent problem of financial benefits and welfare especially has covered the standard of living of the workers. Finally the recommendations suggested to help alleviate the problem areas are: 1. The employers should device an effective and efficient means of paying the worker the various benefits and care fro welfare 2. The motivational factors like promotion increase in salaries and recognition should be used as means of gingering the workers into increase performance. 3. That recognition and appropriate financial reward should be given to workers who put in more effort on the job 4. That the management of the parastatals should increase their sponsored training programme as its tool of increasing productivity 5. That the management of the parastalats should do everything possible to maintain the work environment


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