dissertation - labour management relations and organisational productivity
TRANSCRIPT
DissertationWord Count: 15,430
Title: The impact of labour management relations on organisational productivity
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Table of Contents
ABSTRACT......................................................................................................................................3
CHAPTER 1 – INTRODUCTION.........................................................................................................4
1.1 BACKGROUND OF THE STUDY......................................................................................................4
1.2 PROBLEM STATEMENT................................................................................................................5
1.3 AIMS AND OBJECTIVES................................................................................................................6
1.4 SCOPE AND PURPOSE OF THE STUDY..........................................................................................7
CHAPTER 2 – LITERATURE REVIEW..................................................................................................8
2.1 INTRODUCTION...........................................................................................................................8
2.2 INDUSTRIAL RELATIONS...............................................................................................................8
2.2.1 LABOUR................................................................................................................................9
2.2.2 THE IMPORTANCE OF LABOUR MANAGEMENT RELATIONS.................................................9
2.2.3 OBJECTIVES OF LABOUR MANAGEMENT RELATIONS.........................................................10
2.3 TRADE UNIONISM......................................................................................................................10
2.3.1 TRADE UNION AND ITS FUNCTION.....................................................................................11
2.4 THE STATUS OF LABOUR UNION................................................................................................12
2.5 LABOUR MANAGEMENT CO-OPERATION..................................................................................12
2.6 THE EFFECT OF LABOUR – MANAGEMENT RELATIONS ON ORGANIZATIONAL PRODUCTIVITY. 12
2.7 THE IMPACT OF LEADERSHIP PATTERN ON LABOUR MANAGEMENT RELATION.......................13
2.7.1 LEADERSHIP STYLE..............................................................................................................14
2.7.2 CONSEQUENCES OF USING AN INAPPRORIATE MANAGEMENT STYLE...............................15
2.7.3 THE NEED FOR EFFECTIVE RELATIONSHIP WITH ALL SUBORDINATE..................................15
2.8 EVALUATION AND RECOGNITION OF PERFORMANCE...............................................................16
2.8.1 APPRAISAL..........................................................................................................................16
2.9 THE CONCEPT OF COLLECTIVE BARGAINING.............................................................................17
2.9.1 INDUSTRIAL CONFLICTS AND RESOLUTIONS.......................................................................18
2.10 PRODUCTIVITY.........................................................................................................................19
CHAPTER 3 – METHODOLOGY.......................................................................................................21
3.1 Overview of research methods..................................................................................................21
3.2 RESEARCH HYPOTHESIS.............................................................................................................21
3.3 PHILOSOPHY OF RESEARCH METHODS......................................................................................21
3.4 RESEARCH APPROACHES............................................................................................................22
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3.4.1 SELECTED RESEARCH APPROACH........................................................................................23
3.5 DATA COLLECTION AND METHODOLOGY..................................................................................23
3.6 RESEARCH STRATEGY.................................................................................................................24
3.7 RESEARCH ETHICS......................................................................................................................25
3.8 RESEARCH LIMITATIONS............................................................................................................25
CHAPTER 4 – Results and analysis.................................................................................................26
4.1 DESCRIPTION OF THE ACQUIRED DATA.....................................................................................26
4.2 EFFECTIVENESS OF INDUSTRIAL RELATIONS ON PRODUCTIVITY...............................................26
4.3 IMPORTANCE OF LABOUR PRODUCTIVITY.................................................................................27
4.4 IMPACT OF LABOUR RELATIONS ON ORGANISATIONAL PRODUCTIVITY...................................28
4.5 OBJECTIVES OF LABOUR MANAGEMENT RELATIONS................................................................29
4.6 CONTRIBUTION OF TRADE UNIONISM TO ORG. PRODUCTIVITY................................................30
4.7 SUPPORT OF TRADE UNION.......................................................................................................31
4.8 IMPACT OF TRADE UNIONISM ON ORG. PRODUCTIVITY...........................................................31
4.9 IMPORTANCE OF LABOUR MANAGEMENT CO-OPERATIONS....................................................33
4.10 LEADERSHIP IMPORTANCE FOR LABOUR MANAGEMENT RELATIONS.....................................34
4.11 LEADERSHIP STYLES.................................................................................................................34
4.12 ESSENTIALNESS OF PERFORMANCE APPRAISAL FOR LABOUR MANAGEMENT RELATIONS.....35
4.13 IMPORTANCE OF COLLECTIVE BARGAINING TO RESOLVE LABOUR ISSUES.............................36
4.14 INFLUENCE OF MOTIVATIONAL INCENTIVES ON LABOUR MANAGEMENT RELATIONS...........37
4.14 SUMMARY OF RESULTS...........................................................................................................38
CHAPTER 5 – DISCUSSION AND FINDINDS.....................................................................................39
5.1 SUMMARY OF THE FINDINGS....................................................................................................43
CHAPTER 6 – CONCLUSION AND RECOMMENDATIONS.................................................................44
REFERENCES.................................................................................................................................49
Appendix A: Questionnaire...........................................................................................................57
Appendix B: Frequency tables.......................................................................................................61
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ABSTRACT
Labour management relations are important in terms of organisational productivity and an
on-going debate from the last few decades. In general opinion, the success of any
organisation is not only measured by the amount of profit the company could make but also
by the degree of industrial peace and harmony that could be maintained in the said
organization. The overall aim of this dissertation is to identify the impact of labour
management relationship on the organisational productivity. For this purpose, a detailed
investigation was carried out to evaluate how various management styles affect the behaviour
and output of employees at work. It was also critically evaluated that how labour
management relations have an impact on organisational productivity by distributing 150
questionnaires to the organisations in the Delta State in Nigeria. The results of the primary
investigation reveal that survey respondents are aware of the importance of industrial and
labour relations in terms of boosting organisational performance but importance is not given
to labour productivity within the organisations in Delta State. A gap between the thinking of
management and labour about the objectives of labour management relations was also found
during primary research. It was also identified that most of the organisations in Delta state are
not using any leadership pattern and other organisations are using traditional democratic style
leadership.
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CHAPTER 1 – INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Recent years have witnessed a growing call for a more cooperative relationship between
labour and management as a means of increasing productivity. Despite the growing attention
being paid by scholars to labour management cooperation, only a handful of studies have
examined the impact of labour management relationship on organizational productivity.
Several studies have seen that effective labour management relationship is essential to
promoting organizational change and increasing productivity (Black and Lynch, 2001).
Basically, the management at any level is focuses on a productive organization which
applaud good morale and increased productivity that could boost profit growth (Ajala 2007).
The study of labour management relations (LMR) refers to the rules and policies which
govern and organize employment, how these are established and implemented, and how they
affect the needs and interest of employees and employers. LMR has implications for the
organization of work as well as economic policy (Von Otter 2007). The focus gradually has
broadened from the formation and operation of national and local institutions and collective
bargaining to strategic human resource policies. Most recently a multi-level agenda has
formed, following new needs for regulations in world trade, in the extended European union,
and in former communist and newly industrialized countries (Von Otter 2007).
Often times, labour relations differ between countries. Having a clear view on labour
relations systems as well as the collective bargaining situation each country faces will give a
clearer picture of the nature of the economy, its production methods as well as the countries
background and development (Caulfield 2004). Understanding the economic expansion and
changes that affect each country helps better understand labour relations system so the study
of both labour relations and collective bargaining should not be neglected (Kuruvilla 1994;
Napathorn and Chanprateep 2011). Collective bargaining on the other hand is the process by
which organised groups of employees and employers search for ways to coordinate their
conflicting goals through common circumstances (Vettori 2005). Its main function is being
able to meet a common interest that organizes terms and conditions of employment (Bamber
and Sheldom 2002).
The quality of the labour- management may have more to do with organizational
performance than unionization. However, there is considerable debate among academics,
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union officials and management executives concerning the benefits drawbacks of labour-
managements Cooperation (Thornicroft 1993).
Black and Lynch (2001) came to the conclusion that unionized organisations that support
joint decision making together with incentive based bonuses have greater output than non-
union plants. On the other hand, organizations that are unionized but carry on traditional
labour management relations have lesser productivity.
As noted by Barbash (1984) and Cooker and Meyer (1990), the labour- management
relationship has traditionally been characterized by higher wages and benefits a well-
developed grievance procedure, strong adherence to seniority; and restrictive work rule and
job classification procedures.
Furthermore, labour management relations have been largely adversarial and power-oriented;
with both parties viewing the relationship as distributive and accepting the position that
management was responsible for increasing the wealth of the organization while labour’s
responsibility was to bargain for a share of wealth (Stephen and Roderick 2005)
1.2 PROBLEM STATEMENT
In essence, the employees of labour must pay very serious attention to the due and cry of their
employees and their various needs so as to be able to ascertain all the prerequisites to
industrial peace and harmony, high organizational productivity and to the success attainment
of the company’s goals and objectives. This is so because all the activities of the company are
invited and determined by the persons that constitute the institution. It is recorded modern
firms using plant equipment, automated equipment, computer, etc. tend to be non-productive
except for the human effort and direction that any company needs to get whenever it is going
to.
In addition, the impact of Labour-management can also increase organizational productivity.
Labour-management co-operation is advocated as a means of promoting industrial
democracy. Workers should have a “say” in the administration of the enterprise to which they
belong Employees decisions and they are more likely to be totally committed to work harder
to achieve ideas which they help create.
It is contended that a closer association between labour and management leads gradually to
the appreciation of the problems of one by the other and the development of an
accommodative frame of mind. Through better labour-management relations the strength,
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experience and enterprise of the workers can be effectively harnessed to accomplish the
company objectives rather than being used in undoing what management does. It is necessary
to note the labour-management relations. If we consider the definition of industrial relations
by Yesufu (1981) as the whole web arising out of employment contract” the central issue of
concern is how the labour- management interactions at work can maintain and attain
maximum levels of productivity.
The maintenance of industrial peace therefore is an essential condition. Condition for the
socio-economic growth and stability of any society. In essence, the management and the
workers in any organization need to work towards varying objectives, and in the process of
doing this, the need for occasional joint construction over several issues which may include
improved production and welfare of the employees cannot be over-emphasized.
The organizational goal of increased profitability and productivity can only be realized in a
peaceful industrial environment, hence the need to ensure good labour – management
relations in any work organization. The central issue of concern is how the labour –
management interactions at work can attain and maintain maximum levels of productivity.
The productivity of the selected companies in Delta state Nigeria as a means of promoting the
economic growth of Nigeria. Its workers Union as an organized labour movement exists to
maintain and improve the working condition and terms of employment of workers. The
employers are interested in maximising and more realistically, optimizing the returns from
their investment while the employees are interested in how to maximize their returns in the
form of wages and other benefits and maximize the inherit physical and other industrial
hazards. Hence there arise the need to find out the sort of labour –management relationship
that exists at the selected companies in Delta State and its effects on productivity of labour.
1.3 AIMS AND OBJECTIVES
The overall aim of this dissertation is to identify the impact of labour management
relationship on the organisational productivity and the underlying objectives are as follows:
To evaluate how the various management styles affect the behaviour and output of
employees at work
To evaluate how labour management relations have an impact on organisational
productivity on the survey companies
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To evaluate critically how labour management relations in the surveyed companies
could also be improved so as to ensure their attainment of a high level of productivity
1.4 SCOPE AND PURPOSE OF THE STUDY
The modern work place like the world at large continues to feel the impact of many changes
and challenges. Labour – management are increasingly being asked to deliver quality product
and services in abundance and at reasonable cost. Amidst it all, labour – management is
increasingly being recognised as the basic building blocks of organizational performance
(Chandrasekar, 2011). In every organizational setup, therefore whether economic, social,
cultural or otherwise, two indispensable groups are easily discernible these group labour –
management constitute the pivot upon which the activities of one existing organization
revolves (Tangen 2005).
It is generally believed that the areas of the most common mutual interest where labour and
management may co-operate consciously to the advantage of both promoting efficiency and
productivity, eliminating waste reducing lost and improving the quality of the product. On the
other hand, if there are no good interests among labour – management there will be low rate
of productivity. Every organization or company is set up to achieve or attain some defined
objectives. These objectives which have to be accomplished through the instrumentation of
the aforementioned groups also include high organizational productivity.
The promotion of industrial peace and harmony, which are the major variable for socio –
economic growth and development, should be one of the objectives of labour- management
relations. Therefore, the extent of the success in achieving these desired goods depends
largely on the type of relationship that exists between labour and management and how will
the two actors play their expected roles. For any company is to be associated with success
there has to be certain degree of compatibility between labour and management. An
employee will be highly dedicated and co – operation his interest should be promoted and
protected.
It is a general opinion that the success of any company is not only measured by the amount of
profit the company could make but also by the degree of industrial peace and harmony that
could be maintained in the said organization.
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CHAPTER 2 – LITERATURE REVIEW
2.1 INTRODUCTION
With a decline in productivity over the past five years in Nigeria, it has been of great concern
to business analysts. There has been a search for solutions as the decline continues (Brunstein
and Fisk 2003; Balk 2003). With the application of various innovative management
techniques, many organizations have made efforts to solve their productivity problems (Balas
2004). Different organizations have carried out different incentive programmes to improve
employee motivation and productivity (Moe, 2000; Steers and Porter, 2000). The physical
force for an increase in productivity from organisations is not a new happening. What really
motivates employee productivity is the management style and attitude of the managers. One
primary goal of the managers in these organizations is to encourage workers to perform at
high levels (Steers and porter 2000; Cadwell 2001; Christesen 2002). It is of the notion that
the more managers can reply to questions regarding how to motivate their employees, the
more productive they will be at increasing productivity, boosting performance and promoting
organizational accountability (Cherniss and Kane 2004). In this research, I will
comprehensively carryout a study based solely on the aforementioned sub headings under the
literature review.
2.2 INDUSTRIAL RELATIONS
The concept of industrial relations is recent and can be followed back to the work done by
Professor John Dunlop in 1958 in his work titled industrial relations system. Dunlop
developed one of most influential frame work for explaining industrial relations. He sees
industrial relations systems as “an analytical subsystem of the society” And it involves a
study of problems posed by wages, employment and conditions of service to which both
workers and their organization; the government and its agencies and at all times the general
public must find solutions (Dunlop, 1958).
Industrial relations are associated with the systematic study of all areas of employment
(Fajana 2000). It has been debated to have a similar meaning with labour relations. It can be
argued that industrial relations are a leading factor that affects productivity directly or
indirectly. Industrial relations can be referred to as a fusion of interactions that happen
between employer and employee in an organisation (Yesufu, 2000). It is believed that the
fundamental issue in all organisations is developing and maintaining an effective and
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amicable relationship. For these to be achieved, policy making by consultation, delegation
and group dynamics must be implemented (Englama, 2001).
2.2.1 LABOUR
Labour in most cases is often looked at as the most effective of all factors employed for the
establishment of wealth and the potential to build up and assist as a force to all other
resources (Yesufu 2000)
The concise Oxford Dictionary defines labour as bodily and mental toil tending to the supply
of wants of its commodity. Labour has the same meaning with worker, which means any
employee who enters into a contract for mutual work, clerical work or professional work.
According to the Encyclopaedia Britannica, labour also could be likened to several human
processes and activities. The word in most sense is related to employment, unemployment,
work, trade unionism and organizational relations.
In both public and private organizations, a lot of emphasis has been put on labour
productivity. One reason for this emphasis on labour productivity is possibly because labour
is a key resource which is universal (Oyeranti 2003). Some others reasons to justify the use of
labour for the purpose of productivity are:
Labour is the only means of production that has known control over its inputs to
output.
Labour is thought to be the most substantial factor of production
Labour is the most measured factor of production ( Ayani and Awe 2101, I.L.O 1996)
2.2.2 THE IMPORTANCE OF LABOUR MANAGEMENT RELATIONS
The basis for the development of industrial democracy is the good relation employers and
employees. The result of industrial peace is the increase in productivity
Former President Shri V.V Giri noted that “it is a necessary to maintain common trust and
assurance between employers and employees to acquire the goal of quick social justice and
economic development” (Pandey 2007).
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2.2.3 OBJECTIVES OF LABOUR MANAGEMENT RELATIONS
The main objective of labour management relations is to bring about an agreeable relation
between two colleagues. Given that public policy provides the basis for labour and
management relationship, it is the responsibility of the union and management to organize
themselves on how to relate with one another under the broad frame work of objectives
which each party seeks to achieve (Olujide et al, 2004). Below is a summary of the objectives
of labour management relations.
Table 2.1 – Management and Labour Objectives
Management Objectives Labour Objectives
Improvement of personal goals and
ambition.
Individual goals and ambition
Maintenance of control of the organization Maintenance of the organization.
The maintenance of the organization and
well being
Rationing of scarce job opportunities
Improvement of certain social and
economic goals
Development of a judicial system of deciding
disputes over rights of individual workers
Formation of relationship with bargaining
goals
Upgrading working conditions and economic
welfare of members
(Olujide et al, 2004)
2.3 TRADE UNIONISM
Trade union generally originated from efforts of workers to pursue growth in existing
working conditions through combined efforts. It is of the belief of workers that they can
benefit more through membership of a union rather than doing it alone (Ademiluyi and
Imhonopi 2010)
Most commonly, trade unions are established to preserve the aim of workers. Being one of
the significant partners in Industrial relations system, Labour unions have helped to protect
the views of workers in order to improve their terms and conditions of employment within
the industrial relations system (Fashoyin, 1980). In Nigeria, trades union has advanced into a
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strong, creative, and dynamic national liberator movement in the country (Iyayi, 2008). As
noted by Iyayi (2008) that trade union in Nigeria has gone beyond their usual role of
championing the cause of workers to exercise much governmental and public authority and
acting as cautious caretakers of the people. Despite the fact that this brought trade unions and
their leaders into bad looking conflicts with the political classes, they have still been able to
achieve a lot of victories during the process of their struggles for a better living for workers.
2.3.1 TRADE UNION AND ITS FUNCTION
Different definitions have been brought forward in an effort to explain in detail what trade
union is. A few of the definitions of trade union would be examined.
Wordnet (2009) described trade union as an organization of employees made to negotiate
with employer through management and has positive impact on management.
Stewards Dictionary 2009 went on to define trade union as workers formed into a willing
association to carry on their common interests with the workers.
The International Confederation of Free Trade Union (ICFTU 2009) sees trade union as a
lasting organisation created by workers to secure themselves at work to better their working
conditions by way of collective bargaining to pursue better conditions and enabling workers
to give views on problems in the society.
The various definitions given take into account relevance of the existence of trade unions and
also points to the fact that Nigeria has gone past protecting workers right to fighting anti-
people policies of government putting them under pressure to carry out much more to benefit
workers (Ademiluyi and Imhonopi 2010).
In any economy, the resulting effect of organised labour could be important because of the
functions they carry out (Fajana 2006). These functions could be social, political or
managerial in nature. Trade unions play a multidimensional role in the society with the aim of
improving work conditions. The objectives of trades union in Nigeria as seen in the nation’s
trade union act can be seen below:
To relate with labour unions on both local and international levels
To assure collective and individual job security against all possible danger brought
about by market change or organisational policies.
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To regularly assure freedom of association and the acknowledgement of trade union
rights on all unionized workers (Fajana 2006).
2.4 THE STATUS OF LABOUR UNION
Labour unions are a force who governs sustainable consumption and production. This
assumption is established on the fact that unions act in place of a significant amount of the
workforce and engage in a substantial amount of political activities. With union having dual
roles, they have consistently focused on issues that are of direct concern to the interest of the
union member. Only of recent have labour unions expanded their programs to include
sustainable development, education and environmental production (Heins 2004)
2.5 LABOUR MANAGEMENT CO-OPERATION
A large amount of studies have seen that effective labour management relationship is
important to promoting organizational change and increasing productivity. Enhancing labour
management cooperation is said to be an important objective of industrial relations strategy in
the economy (Gera and Gu, 2004). By many, labour management cooperation had been seen
as the solution to organizations ambitious woes. Labour cooperation is looked for as a means
to organize labour compliance, thus carrying on managements control over labour. When
labours power reduces, the labour management cooperation comes to an end. In contrast,
others have argued that management look for labours cooperation as well as being involved
in workplace decision-making during times of ambitious crisis (Preuss and Frost, 2003)
The effect of labour management cooperation on organisational performance has been
examined by a number of studies (Katz, Kochan, and Gobeille 1983; Shuster 1983; Katz,
Kochan, and Weber 1985; Norsworthy and Zabala 1985). All these studies however have
examined the automotive industry and principally the manufacturing sector. An evaluation of
the impact of the union management relationship on attainment outcomes in other
organizational settings is therefore justified (Heskett et al 1997)
2.6 THE EFFECT OF LABOUR – MANAGEMENT RELATIONS ON ORGANIZATIONAL PRODUCTIVITY
Within an organization, changes in labour relations are often affected by management
practices.
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Labour management relation refers to industry and relations. Industry can best be described
as ‘any constructive activity in which an individual is committed while ‘relations’ means ‘the
connection that exists within the industry by an employer and his workman. The approach of
industrial relations is an establishing and effective concept and does not restrict itself only to
the complex of relations between the unions and management but also refers to the accepted
web of connection usually gotten between employees (Pandey 2007)
The acceptable relation between employees and employers is a foundation for the growth of
industrial democracy. In 1982, Agarwal described Industrial harmony as completely
connected with economic boost of the country. Industrial harmony brings about higher
cooperation between management and workers which eventually results in improved
production that goes on to the economic advancement and success of the country.
Employee productivity is based on the extent of time an individual is actually present at a job
and effortlessly performing their duties while at the job. To achieve and maintain high work
productivity, companies must address both these issues (Adenike 2011).
Significant research has shown the importance of job satisfaction in an organization in terms
of productivity, employee relations and efficiency (Fajana 2001). Performance is influenced
by a worker’s performance as well as a collection of environmental and situational factors.
Job satisfaction is key in any organization because if employees are not pleased, their work
productivity as well as relationship with management decreases (Cockburn and perry 2004;
Boro et al 2001). In an attempt to please employees, managers most frequently make use of
incentive programmes, although research has consistently proved that no amount of money
given will change the levels of motivation and job satisfaction (Joyce and Slocum 2004).
2.7 THE IMPACT OF LEADERSHIP PATTERN ON LABOUR MANAGEMENT RELATION
With the workforce not being committed in the organization, low trust, job insecurity and
indecision will increase in the organization (Panayiotis et al., 2011). Commitment in the
organization can improve organizational productivity (Carlos and Filip, 2011). For a more
excellent performance of the organisation, leadership commitment is one of the distinct
agents of success (Sabir et al, 2011; Das 2002; Chew and Chan, 2008). Leadership and its
influence is the main target for profit organisation to accomplish organizational goals.
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Numerous researches have given different theories concerning leadership, its effectiveness
and its relationship to organizational performance (Blake and McCanse 1991)
According to an article cited in Izedonmi 2006, the World Development Indicator in 2006
noted the factors behind slow growth in Africa are: backward technology, ethnic and tribal
divisions, colonial legacy, policy mistakes, deficient infrastructures and insignificant
industrial activity. These factors including others such as corruption and social insecurity can
be traceable to incompetent leadership in evolving economies in ever sector (Kurfi 2009).
2.7.1 LEADERSHIP STYLE
Leadership is the utilization of power in totality. Exercise of power involves making things
happen through others. To achieve this, leaders may use one or any of the following:
controlling, guiding, coordinating or gathering the efforts of others (Gibb, 1954).
Robins (1991) views leadership as an ability to affect a group in the direction of achievement.
Fielder in 1967 defined leadership effectiveness as leaders being able to achieve
organizational goals. To be productive, leaders must assist group members in satisfying their
needs.
Leadership styles, in managerial circumstances, are the accepted ways a leader acts towards
assistance in order to achieve given objectives. Every organization is a unique mixture of
people, objectives and tasks. Each leader has a unique character and set of capabilities. A
good leader in one situation may be the awful in another (Kurfi, 2009). Research however has
shown that proper style of leadership rests on the following:
The leaders attitude
Nature of the job
The situation at a pint in time and
The preference of the employees
Leadership styles can be classified into three:
1: Traditional styles: Autocratic leadership, Democratic leadership and Laisse-faise leadership
2: Modern styles: This is an alternative method brought up by Ransis Likert (1967):Job-centred, Employees-centred and Job-employee centred
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3: Contingency approach: Fielder’s Model, Path-Goal Model and Vroom - Yetton model (Kurfi 2009).
Leadership is an important tool for the improvement of an organization to achieve their
desired goals. Failure of good and productive leadership in any organization can be said to be
the main hindrance in any societal development. Thus, the inadequate condition of our
backward technology, infrastructures and other societal declines are traceable to poor and
incompetent leadership (Dandago 2005).With leadership styles in place, using one which
inappropriate can cause discrepancy. In dealing with situations effectively, no one style is
better than the other. Whether a specific leadership pattern is suitable or not depends on the
situation (Rahim 2002)
2.7.2 CONSEQUENCES OF USING AN INAPPRORIATE MANAGEMENT STYLE
What happens when modern complex organisations are managed with a traditional leadership
style?
The autocratic management leader under the traditional style of leadership is extremely
domineering. He has plenty of power to tell his followers what to do and does not delay to do
so if required. According to Douglas McGregor in 1960, he named the autocratic assumption
about followers, Theory X. According to Theory X, people have low drive, are likely to avoid
responsibility, and prefer to be managed. People naturally have hatred for work and when can
do try to avoid it. It is essential to use command, authority and warning of discipline to get
people to work.
2.7.3 THE NEED FOR EFFECTIVE RELATIONSHIP WITH ALL SUBORDINATE
The need for effective relationship between leaders and their subordinates is of importance in
management. Douglas McGregor in 1960 talked about the Theory Y leader. He believes that
if people are dedicated to organizational goals they will apply self-control as well as self-
direction. He went on to say that work is a normal phenomenon and if the circumstances are
affirmative, people will not only accept responsibility, but will seek it.
In this case this leader makes use of a lot of authority, allows independence and avoids
imposing his personal choices on his subordinates. The leader’s here is seen to allow
subordinates participate in decision making and authority is decentralized (Kurfi 2009)
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2.8 EVALUATION AND RECOGNITION OF PERFORMANCE
Every organization makes use of the employee recognition techniques to motivate employees
to put more work in achieving customer satisfaction in order to attain organizational growth
(Hasan 2011).
Organisations focus on appraising performance of employees by using different forms like
score cards to inspire employees to better performances (Murphy& Olsen 2008).
Firms centre on the use of performance measures to enable managers take actions in an
attempt to accomplish organisational objectives (Drury 2004). Performance measures are
essential for managers to track and measure performance for their employees as well as for
employees to be aware of the financial impact of their performing outcome (Anthony &
Govindarajan 2001).
Despite the fact that so much has been noted on the need for close analysis of performance
measures, however almost very little established on performance measurement systems in
developing countries (Hussain, 2005).
2.8.1 APPRAISAL
In human resource management, performance appraisal is one of the most important
processes because of its great effect on both financial and program components of any
organization.
Performance appraisal has numerous definitions. It can be defined as a “process within the
overall performance management process and also “the evaluation of an individual’s work
performance in order to arrive at objective personnel decisions” (Kavanagh, 1997; Robbins et
al, 2000).
Performance appraisal entails setting goals for the appraisal system, considering the timing of
feedback, giving candid and constructive feedback and following up to ensure that the system
works. A well-designed performance appraisal system recognizes an employee’s
contributions thereby giving employees useful performance feedback (Dattner, 2010).
The appraisal is an occasion to take a general view of work content, having a look back on
what has been accomplished and acknowledge objectives for the next step.
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The objectives of appraisal should be decided before the system is outlined in detail. Its main
objective is to study performance and recognise career and planning needs. The appraisal
may also be used to decide whether employees should acquire an element of financial reward
for their performance. Appraisals help to enhance employees’ job performance by
recognizing strengths and weaknesses and decide how their strengths can be best made of
within the organisation (Michael 2000).
2.9 THE CONCEPT OF COLLECTIVE BARGAINING
Collective bargaining in some developing countries like Nigeria is a well-organized event
which has been subject to many socio-economic dimensions, contextual issues and the
connectivity of these issues (Opute, 2011).
Collective bargaining stated by Grogan in 2003 is the process by which organised groups of
employees and employers look to adjust their conflicting goals through collective means. The
act of collective bargaining is closely related with democracy and workers right to arrange
trade unions and a law making example strengthening the parties to collective agreements to
focus on the process (Opute, 2011). In industrial relations practise, collective bargaining is an
important instrument to be used as a way of avoiding the use of wage tribunals for the
conditions of service. For collective bargaining to be effective, the parties must be willing to
meet at reasonable times to make careful preparations to support their bargaining demands
and decide on how much authority is to be visited in their negotiating teams. For collective
bargaining to be significant, the following conditions must be seen:
Bargaining in good faith by the parties involved
Avoidance of unfair practices
The parties must have conflicting interest
Freedom of association
Willingness to give and take (Opute, 2011)
Collective bargaining is mainly considered to be the main function of trade union. Both
institutions are so linked that many writers speak of them as if they were distinct connected
occurrences (Vettori, 2005)
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2.9.1 INDUSTRIAL CONFLICTS AND RESOLUTIONS
In every organization, conflicts cannot be avoided. Within industries in Nigeria, conflicts
have become continual and disturbing so much that it has restricted growth of some
organizations in Nigeria. In a lot of organizations in Nigeria, conflicts are taking so much
time and attention that organizations are beginning to look as if conflict is their main business
(Ojielo 2002). The ineffectiveness on how to manage conflicts in workplaces has presented a
real issue in some organizations. This is seen by great repetition of harmful rivalry among
staff within an organization, strike action, lack of productivity and general inefficiency. In an
attempt to sustain organizational efficiency and effectiveness, managing conflict is critical
(Ojielo 2002).
Conflict is a fixed event in any human organization. It is so universal in social life that it has
been cut off by some as the simple unit for deducing social existence (Ajala 2003; Alimba
2010). Conflict remains the most constant feature that makes humanity persuaded that
growth is affirmed on conflicts. Conflict which is seen as something abnormal, detestable and
devastating could as well be a precursor of positive change if usefully handled ( Hammed &
Ayantunji 2002; Edwards 2002). Based on understanding of the concept, conflict has been
subjected to different definitions. In 2004, Fisher et al defined conflict as an on-going
situation that is established between groups or individuals who share conflicting goals. Otite
2001 conceives conflict as a way of resolving issues originating from disputing interests.
With the views of various writers on the concept of conflict, it has been found that conflict
cannot be avoided and is not essentially meaningless rather its effect depends on how it is
handled ( Otite 2001).
There are two sources of conflicts that arise in an organisation. They are internal and external
source of conflict.
Internal sources consist of disputes arising within organisations. Within a work settings
conflict orientations focus basically on the conflicting nature of the interest of the employers.
Most conflicts arise due to the fact that the needs of all actors of industrial relations conflict
with each other. Otobo 2000 noted that internal sources would include orientation
consciousness of workers, style on management and efficacy of the promotion system.
External sources include economic policies, unpatriotic behaviour of the political and
economic classes and national economic mismanagement. However some of the external
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causes of conflict may not directly provoke industrial conflict but they would influence
general social expectation.
In 1977 Ojeli stated that the cause of industrial conflict in Nigeria is as a result of the cold
behaviour of employers and the government in acting on the demands of workers.
In industrial relations, conflict between employer and employer is seen as a continual power
feature of capitalism which hardly shows the most important power base of class relations.
The most controversial aspects of industrial conflict are strikes and lockout. However, strike
is viewed as an expression of freedom by individuals collectively and provides tactical
support for collective bargaining. In recent years it seems as if trade disputes and strikes are
increasing in Nigeria. The bottom line is, to achieve industrial peace through the willing
cooperation of the works; management must recognize and accommodate labour.
2.10 PRODUCTIVITY
In every organisation, productivity is an essential factor. Profit and loss relies on the degree
of labour productivity. Although most organizations are not about profit and loss, costs are
beyond question essential (Haynes 2007).
Productivity can be defined as a measure of the amount of output created per unit of input
(Boyle 2006). Productivity which has been defined as being concerned with a relationship
between input and output does not go around matters that people have in mind when public
sector productivity is talked about.
In Nigeria, declining productivity has become a continuous issue of business and economic
analysts over the past five years. As the decline continues, so does the search for answers
(Balk 2003; Burnstein & Fisk 2003).
Holzer and Seok-Hwan 2004 debated that although the idea of productivity has been made
use of for many years, it is often misapplied, simplified and misinterpreted. They went on to
say that the idea of performance may act as a more attractive conceptual way towards
improvement. With the issue of productivity increase in the public sector not being new,
practitioners and scholars have worked for long to recognize what makes government
productive (Stainer 2000).
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The concept of productivity is often mistaken with the more common concept of performance
management. Productivity is one of the numerous ways by which performance can be
appraised (Byus and Lomerson 2004; Tangen 2005).
Making an effort to overcome the issue of productivity of Nigerian workers is not
unachievable although discouraging. Yesufu 2000 stated that there is every reason to believe
that the Nigerian worker could be as effective and productive as its equals anywhere in the
world. If the basic infrastructural activities such as good roads and health care facilities, good
drinking water and constant flow of electricity were in place, productivity in Nigeria would
be boosted ( Okpachi 1999)
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CHAPTER 3 – METHODOLOGY
3.1 Overview of research methods
This research is aimed at appraising the labour management relationship in selected
companies in Delta state and considering its impact on productivity and efficiency of workers
and management.
A research is a structured analysis that applies satisfactory scientific methodology to create
advanced information that is generally accepted. It is a process of accumulating, examining
and deciphering information to answer questions (Kothari 1985).
Qualifying research requires certain characteristics such as it being rigorous, empirical and
critical, systematic and valid and verifiable (Dawson, 2002).
Research methods are a central part of social sciences. With the complexity of social research
over the years being formed by different theories and significant additions from researchers
and academics, it covers a broad area of study and includes areas of governance, politics and
business (May 2001).
3.2 RESEARCH HYPOTHESIS
Labour management relations would not significantly influence the workers performance and
productivity in the selected companies in Delta State. Management strategy of motivational
incentives would not significantly influence labour management relations in regards to the
efficiency and productivity of workers in those selected companies in Delta State.
3.3 PHILOSOPHY OF RESEARCH METHODS
Social research philosophy is between two alternatives; the positivist or a phenomenological
philosophy. Authors such as Hussey and Hussey, 1997 and Easterby-Smith et al, 1991have
placed emphasis on the choices involving research philosophy.
The positivist philosophy has been used in scientific research and overtime its rationale has
been used by social workers. The theory looks for accuracy and equality as well as data and
its results in its research (May, 2001)
Phenomenology is concerned with the study of experience from the perspective of the
individual, ‘bracketing’ taken'for'granted assumptions and usual ways of perceiving (Lester,
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1999). Phenomenological methods are effective at bringing together the thoughts and
experiences of individuals from their own view. When phenomenological research is used for
practical theory, it allows for support and challenge policy, information and action (Lester,
1999)
3.4 RESEARCH APPROACHES
Research can be based on empirical approach, non-empirical approach or a combination of
the two. There are dimensions of the empirical approach which can be evaluated. They are:
Deductive / inductive
Quantitative/ qualitative
Deductive research was defined by Hussey and Hussey, 1997 as “a study in which a
conceptual and theoretical structure is developed which is then tested by empirical
observation; thus particular instances are deducted from general influences.”
Deductive research is a can be referred to as progressing from general to the particular and is
a process in which theory is tested by empirical observation (Hussey and Hussay, 1997)
Inductive research can therefore be defined as a study in which theory is, “developed from
the observation of empirical reality. Inductive approaches are aimed to aid an understanding
of meaning in complex data through the classification of raw data(Pope, 2000; Hussey and
Hussey, 1997).
Originally quantitative research was made to study natural phenomena. Quantitative methods
are useful when the study is used to gather information from a large sample size. Important
parts of quantitative research include the selection of appropriate samples and the validity and
accuracy of the results are reliant on the appropriate selection of the sample population
(Bryman& Bell, 2003). Quantitative methods now conducted include surveys (carried out
with a carefully selected sample of people), formal methods, numerical and laboratory
experiments (Myers, 1997).
Qualitative methods on the other hand were established to allow researchers study cultural
and social aspects (Myers, 1997). This method is used in situations that are complex and
cannot be analysed using surveys (Davis, 2007). Qualitative research is carried out using
direct interviews or focus groups where there is an interaction between the researcher and the
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participants discussing issues that are been investigated (Bryman& Bell, 2003). Examples of
qualitative methods are case study research, action research and ethnography. Their data
sources include interviews and questionnaires, researcher’s impressions and reactions,
observation and participant’s observation and documents and texts (Myers, 1997)
3.4.1 SELECTED RESEARCH APPROACH
Both qualitative and quantitative approaches were used in this research. It was used to get a
holistic view of the topic under study. Using both approaches may be expensive and time
consuming but it allows for the topic under study to be assessed comprehensively (Babbie,
2007)
3.5 DATA COLLECTION AND METHODOLOGY
The data collection for the research consisted of two sources, primary and secondary. The
primary sources of data collection included surveys and the use of questionnaires using a
sample size of about hundred people. Surveys allow researchers get data on the subject
through questionnaires or interviews. Surveys also permit researchers to collect data on
recent happening. One important weakness is the issue of bias. Bias is a form of systematic
error that can change investigations. It is almost impossible to absolutely eliminate bias. In an
attempt to do so, new bias may come in and may render the study less generalizable (Sica,
2006).
The same questionnaire was designed for both management and labour consisted of total 13
questions where Q4 was added to record the perspectives of either management or labour.
Remaining questions were related to both. After distribution, the questionnaires were
collected within two weeks. The use of interviews was applied where necessary to obtain
more information on the impact of labour – management relations on organizational
productivity (Bryman& Bell, 2003). The secondary sources of data included were the use of
relevant publications in form of books and articles by the companies under study (Bryman&
Bell, 2003).
The primary data collected from questionnaire was analysed through MS Excel and SPSS.
The Relative Index formula was used to rank the objectives of labour management relations
in question 4. The formula is given below:
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Source: Black (2010)
Where, nx is the number of respondents agreeing with the ‘x’ option, for instance:
Ordinance Scale Respondents Ordinary Scale
1- Least objective 16 0.2
2- 24 0.4
3- 43 0.6
4- 7 0.8
5- Main objective 10 1.0
100
Therefore,
R.I. = [1(16) + 2(24) + 3(43) + 4(7) + 5(10)] / 100(5)
= 271 / 500 x 100 = 54.2 (Moderate important)
3.6 RESEARCH STRATEGY
With the research aimed at appraising the labour management relationship in the selected
companies in Delta State and considering its impact on the productivity, efficiency of the
workers and management both qualitative and quantitative research approaches were used.
Most of the information collected for the study was basically of primary source. As a means
of using the primary source requirements, questionnaires were prepared for the management
personnel and the employees. Questionnaires were designed and distributed among
management and labour personnel to gather primary data. Surveys were also being carried
out. The questionnaires and surveys were carried out to get in-depth information on the views
of staff and management on leadership and productivity. The bringing together of
information from these various sources helps in obtaining a holistic view of the issue and in
making relevant conclusions (Babbie, 2007).
The design adopted in this research work was the Descriptive Survey Research Design. It was
adopted after considering the fact that the aim of the research was to find out the types of
relationship that exist between the parties involved in labour management relations in the
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establishments under study and also find out reasons why they have such a relationships
(Kate et al, 2003).
3.7 RESEARCH ETHICS
Researchers have ethical obligations to put into consideration when carrying out a research.
There are several reasons why ethics is important in research and care has been taken to
ensure ethical considerations for this research (Resnik, 2011). Considering ethics in research
all aims at guarding from harm the rights of the participants taking part in the research.
Privacy is one of the most important aspects with regards to research. Participants
participating in the research are given consent process. This is a process where potential
participants can decide if it is worth taking part in a study putting into consideration its
risks.Their participation should be voluntary informing them of the procedures and risks
involved in the research. Ethical standards are carried out to ensure that participants are been
assured confidentially and are protected from undue harm that may arise from their
participation in the research (Davis, 2007).
With the research involving direct involvement of human participation, all ethical codes were
adhered throughout the research. With the research involving the use of questionnaires and
surveys, care was taken to ensure that all participants were duly informed of the process
informing them about confidentiality with their consent taken before the research was carried
out.
3.8 RESEARCH LIMITATIONS
There are likely to be limitations during research. The limitations which are likely to be faced
during the research are the unwillingness of the officials of the company under study not
being keen on disclosing vital information regarding the company due to company’s privacy
and confidentiality rules. These limitations could be overcome during the progress of the
research with the necessary actions being taken.
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CHAPTER 4 – Results and analysis
4.1 DESCRIPTION OF THE ACQUIRED DATA
The primary data was acquired from selected companies in Delta State in order to examine
the impact of labour management relationships on productivity and efficiency of workers and
management. For this purpose, 150 questionnaires were distributed to labour and
management personnel and researcher received 100 questionnaires back and found
interesting initial insights about labour management relations and its effects on
organisational productivity. The results obtained from the questionnaires are shown in the
frequency tables in appendix B. Furthermore, secondary data was gathered from several
secondary sources such as journals, books, and magazines.
Microsoft Excel and SPSS application programs were used to analyse the data in this study.
Figure 4.1 is exhibiting the details of the respondent groups where labour respondents were
accounted for 85% and 15% respondents were management personnel.
Figure 4.1 – Respondent groups
4.2 EFFECTIVENESS OF INDUSTRIAL RELATIONS ON PRODUCTIVITY
Q1 – Is industrial relations a leading factor that affects productivity directly or indirectly?
Respondents were asked to record their views whether industrial relations is a leading factor
that affects the productivity directly or indirectly. For that reason, five options were provided
to them (strongly agree, agree, neutral, disagree, and strongly disagree). It was identified that
the vast majority of the respondents were either agreed or strongly agreed with the statement.
In fact, 71 out of 100 respondents (71%) marked ‘agree’ and 19% participants marked
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‘strongly agree’ option. The rest of the respondents (10%) were neutral in showing their
opinions. Figure 4.2 is exhibiting these details.
Figure 4.2 – Effectiveness of industrial relations on productivity
4.3 IMPORTANCE OF LABOUR PRODUCTIVITY
Q2 – In your organisation, importance is given to the labour productivity?
A question was included to identify how much importance is given to labour productivity in a
participant’s organisation by providing them five fundamental options (strongly agree, agree,
neutral, disagree, and strongly disagree). The results reveal that most of the respondents
(56%) chosen ‘disagree’ and 5% selected ‘strongly disagree’ option in stating their opinions.
There were also 38 participants who ticked ‘neutral’ to the above statement as shown in
figure 4.3 below.
Figure 4.3 – Importance of labour productivity
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4.4 IMPACT OF LABOUR RELATIONS ON ORGANISATIONAL PRODUCTIVITY
Q3 – In your opinion, what is the importance of labour management relations in terms of organisational productivity?
With regards to the above question, it was interesting to know that almost half of the
respondents (52%) think that labour relations have deep impact on organisational
productivity by choosing ‘very important’ from the provided options. 36% participants
marked ‘important’ and remaining 12% ticked ‘somewhat important’ option. Actually, in the
opinion of all the 100 participants, labour management relations are significant in terms of
organisational productivity.
Figure 4.4 – Impact of labour relations on organisational productivity
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4.5 OBJECTIVES OF LABOUR MANAGEMENT RELATIONS
Q4 – How you rate the objectives of labour management relations?
The question was based on objectives of labour management relations with two perspectives:
management perspective and labour perspective. Five core objectives were chosen from the
literature review for each perspective and provided to the respondents to rank them according
to their preference and experience using 1 – 5 scale where 1 = least objective and 5 = main
objective. The responses of the participants were ranked and recorded in tables 4.1 and 4.2
using Relative Index formula.
Table 4.1 – Objectives: management perspective
Management perspectiveLeast objective Main objective T
otal R.I
Ran
k
1 2 3 4 5
Maintenance of control of the organization 7 10 1 2 80 100 87.60 1
The maintenance of the organization and well being 19 2 11 65 3 100 66.20 2
Formation of relationship with bargaining goals 16 24 43 7 10 100 54.20 3
Improvement of personal goals and ambition 39 7 35 16 3 100 47.40 4
Improvement of certain social and economic goals 19 57 10 10 4 100 44.60 5
Total responses 100 100 100 100 100
Table 4.1 reveals that ‘management of control of the organisation’ is the main objective
according to the management personnel with R.I 87.60. Similarly, ‘the maintenance of the
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organisation and well being’ and ‘formation of relationship with bargaining goals’ were
ranked at second and third positions with respective R.Is of 66.20 and 54.20. According to
the participants of the survey, ‘improvement of personal goals and ambition’ and
‘improvement of certain social and economic goals’ were least objectives in terms of labour
management relations with 47.40 and 44.60 R.Is respectively.
Table 4.2 – Objectives: labour perspective
Labour perspectiveLeast objective Main objective T
otal R.I
Ran
k
1 2 3 4 5
Individual goals and ambition 9 7 6 4 74 100 85.40 1
Improving working conditions & economic welfare of labour 15 6 13 60 6 100 67.20 2
Developing a judicial system to handle disputes b/w labour 20 22 39 10 9 100 53.20 3
Rationing of scarce job opportunities 27 27 27 12 7 100 49.00 4
Maintenance of the organization 29 38 15 14 4 100 45.20 5
Total responses 100 100 100 100 100
It is evident from high R.I of 85.40 in table 4.2 that from the labour perspective, ‘individual
goals and ambition’ is the core objective of labour management relations followed by
‘improving working conditions and economic welfare of labour’ that received maximum
responses as second main objective. Likewise, ‘developing a judicial system to handle
disputes between labour’ and ‘rationing of scarce job opportunities’ were ranked at third and
fourth place with corresponding R.Is of 53.20 and 49.00. In the opinions of labour
respondents, ‘maintenance of the organisation’ is the least objective for them in terms labour
management relations.
4.6 CONTRIBUTION OF TRADE UNIONISM TO ORG. PRODUCTIVITY
Q5 – Do you agree that trade unionism contribute to the productivity of the organisation?
In terms of contribution of trade unionism to organisational productivity, above question was
included in the questionnaire by providing two options (i.e. ‘yes’ and ‘no’) to participants.
Figure 4.5 is showing the results that a majority of the respondents (71%) were agreed with
the statement and remaining 29% marked ‘no’ where maximum respondents belongs to
management.
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Figure 4.5 – Contribution of trade unionism to organisational productivity
4.7 SUPPORT OF TRADE UNION
Q6 – The trade union supports you?
Related to the previous question, it was also asked to the respondents that did they get
support from trade union when they required help in the past. It was discovered from the
results shown in figure 4.6 that participants are happy about the role of trade unions in
supporting and guiding them. In fact, total 87 out of 100 (87%) respondents marked ‘yes’.
Figure 4.6 – Support of trade union
4.8 IMPACT OF TRADE UNIONISM ON ORG. PRODUCTIVITY
Q7 – To what extent you are agreed or disagreed with the following statements?
In order to know the impact of trade unionism on organisational productivity, it was asked to
the respondents to show their agreement or disagreement with multiple statements shown in
table 4.3. For that reason, 1 – 5 scale was provided to respondents, where 1 = strongly agree
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and 5 = strongly disagree. Table 4.3 and Figure 4.6 are displaying the results to what extend
respondents were agreed to each statement.
Table 4.3 – Impact of trade unionism to organisation productivity
Trade unionism impact on organisational productivity
Strongly Agree
Agree Neutral DisagreeStrongly Disagree
Total
1 2 3 4 5
Trade unions play a vital role in the society to improve work conditions
32 43 24 1 0 100
Trade unions assure collective and individual job security against all possible dangers
29 38 26 3 4 100
Labour union is a force who governs sustainable consumption and production
15 21 27 21 16 100
Trade unions are the threat and have negative impact on the management
8 4 28 32 28 100
Trade unions can help to relate with labour unions on both local and international levels
4 17 13 50 16 100
It is evident in table 4.3 that majority of respondents (75%) were either agreed or strongly
agree that trade unions do play a vital role in the society to improve working conditions
whereas 24% respondents were neutral in saying anything. Only 1 participant disagreed with
the statement. Almost similar results were obtained about second statement where it was
asked about the security that trade unions provide for collective and individual jobs against
all possible dangers. In fact, maximum number of respondents (67%) chosen agree or
strongly disagree options and 26% participants were decided not to provide their opinions by
marking neutral option. Only 7% people disagreed with the statement.
The researcher received mixed responses in regards to third statement which was about the
role of labour unions in providing sustainable consumption and production. Actually, 15%
respondents marked ‘strongly agreed’, 21% chose ‘agree’, 27% were neutral, 21% picked
‘disagreed’, and finally, 16% respondents ticked ‘strongly disagree’ option. The vast majority
of respondents (60%) disagreed with the fourth statement that trade unions are the threat and
have a negative impact on the management operations. Total 28 out of 100 (28%)
respondents never provided their opinions and marked ‘neutral’ option. Remaining 12%
participants were agreed with the statement where 6 participants were management
personnel. Finally, in the opinions of 66% respondents, trade unions cannot help to relate to
labour unions on both local and international levels. On the contrary, 21% people think that
they help to relate with labour unions on the national and international level. This time only
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13% people marked neutral option. The responses of the participants are shown graphically in
figure 4.7 below.
Figure 4.7 – Impact of trade unionism to organisation productivity
4.9 IMPORTANCE OF LABOUR MANAGEMENT CO-OPERATIONS
Q8 – In your opinion, what is the importance of labour management co-operations in terms of organisational productivity?
It was also identified that labour management co-operations are vital to respondents in terms
of organisational productivity. Several respondents (64%) marked ‘important’ and remaining
36% participants ticked ‘somewhat important’ as shown in figure 4.8.
Figure 4.8 – Importance of labour management co-operations
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4.10 LEADERSHIP IMPORTANCE FOR LABOUR MANAGEMENT RELATIONS
Q9 – In your opinion, to what extent leadership is important for labour management relations?
It is widely believed that leadership is always important in every field of life. Once asked to
the respondents about the significance of leadership in terms of labour management relations,
most of the participants (68%) marked ‘very important’ and the rest of the people (32%)
selected ‘important’ that represent the thinking of participants about leadership for
establishing and maintaining labour management relations in order to achieve organisational
productivity. Figure 4.9 is presenting these details graphically.
Figure 4.9 – Importance of leadership for labour management relations
4.11 LEADERSHIP STYLES
Q10 – What leadership style is adopted by your organisation?
The above question was critical to identify which leadership styles have been adopted by
companies in Delta state to manage labour management relations. For that reason, four
primary options were provided to respondents: traditional style, modern style, contingency
approach, and no leadership style. Each leadership style was classified into three sub-
categories to provide insights of leadership styles to respondents. It was interestingly
discovered that 54% respondents marked ‘no leadership styles’ and remaining 46%
respondents chosen from other available options as shown in figure 4.10.
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Figure 4.10 – Leadership styles
Figure 4.10 demonstrates the details of leadership styles chosen by participants, where 34 out
of 46 respondents (74%) marked ‘democratic leadership’. 6 and 4 out 46 (13% and 9%)
participants said ‘job-centred’ and ‘employees centred’ respectively.
Figure 4.10 – Leadership styles
4.12 ESSENTIALNESS OF PERFORMANCE APPRAISAL FOR LABOUR MANAGEMENT RELATIONS
Q11 – Do you agree that performance appraisal is essential for labour management relations?
Figure 4.12 is exhibiting that the vast majority of the respondents believe that performance
appraisal is essential for labour management relations. Total 54 out of 100 (54%) participants
were fully agreed with the statement and 42% respondents were partially agreed. Only 4%
people ticked ‘not at all’ option.
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Figure 4.12 – Essentialness of performance appraisal for labour management relations
4.13 IMPORTANCE OF COLLECTIVE BARGAINING TO RESOLVE LABOUR ISSUES
Q12 – In your opinion, how important collective bargaining is in resolving particular labour related issues?
A particular question was included in the questionnaire to know the importance of collective
bargaining to resolve specific labour issues. The results revealed that nearly half of the
respondents (52%) somewhat believe that collective bargaining can play a vital role in
resolving labour problems whereas 23 out of 100 (23%) people believe that it is important.
Remaining 25% people avoided to provide their opinions in this regards. Figure 4.13
demonstrates these details.
Figure 4.13 – Importance of collective bargaining to resolve labour issues
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4.14 INFLUENCE OF MOTIVATIONAL INCENTIVES ON LABOUR MANAGEMENT RELATIONS
Q13 – Do management strategy of motivational incentives would significantly influence labour management relations in regards to the efficiency and productivity of organisation?
In order to test the null hypothesis, a particular question was included in the questionnaire
whether management strategy of motivational incentives would significantly influence labour
management relations in regards to the efficiency and productivity of the organisation. It was
identified that in the opinion of 95% participants it is true that motivational incentives would
have an impact on labour management relations in order to improve productivity of their
organisations whereas only 5% were disagreed with the statement as shown in figure 4.14.
Figure 4.14 – Influence of motivational incentives on labour management relations
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4.14 SUMMARY OF RESULTS
Respondents tend to agree that industrial relations are one of the leading factors that directly
or indirectly affect organisational productivity but in contrast, several respondents believe
that in many organisations in Delta state the importance is not given to labour productivity.
The most important finding revealed by survey investigation is the difference between the
objectives of management and labour personnel where management always focus on
organisational maintenance and control in forming relationships with bargaining and gives
less importance to the improvement of personal, social, and economic goals and ambition. On
the other hand, labour perspective was different where preference was given to personal &
economic goals and working conditions. For labour personnel, maintenance to organisation
was the least important objective.
A healthy percentage of respondents were agreed that trade unionism contributes to the
productivity of the organisation and also plays a vital role in the society to improve working
conditions. Similarly, participants have the awareness that trade unions are not threat to the
management. However, it was interesting to discover that according to survey participants
trade union cannot help to relate to labour unions on both local and international levels. Also,
many respondents disagreed with the fact that trade union is a force who governs sustainable
consumption and production.
Respondents were agreed that leadership is an important part of labour management relations
but it was found that more than half number of organisations never adopted any leadership
style. Almost less than half organisations have adopted the traditional democratic style. It was
also discovered that in the opinions of respondents, performance appraisal and collective
bargaining are important in terms of dealing with labour related issues. Regarding
motivational incentives, the vast majority of respondents believe that management strategy of
motivational incentives does influence labour management relations in regards to the
efficiency and productivity of the organisation.
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CHAPTER 5 – DISCUSSION AND FINDINDS
The study is aimed to identify the impact of labour management relationships on the
organisational productivity. For this a purpose, it was presumed as research hypothesis that
labour management relations would not significantly influence the workers’ performance and
productivity in the selected companies in Delta State. In addition, the management strategy of
motivational incentives would not significantly influence labour management relations in
regards to the efficiency and productivity of workers in those selected companies in Delta
State. The questionnaire was designed and distributed between management and labour in
different companies in the Delta state to test the hypothesis and also to evaluate how labour
management relations have an impact on organisational productivity. In this section of the
dissertation, the attempt will be made to discuss different findings from the results obtained
by the survey investigation by comparing them with secondary data obtained from the
literature review.
It is very important to recognise the importance of industrial relations which are, in fact,
associated with all systematic areas of employment (Fajana, 2000) and also acts like a fusion
of relationships between employees and employers (Yesufu, 2000) in order to contribute to
the success of the any business. In the questionnaire, the first question was asked to the
survey participants to check the validity of the above statements and discovered that the vast
majority of respondents (nearly 90%) were either agreed or strongly agreed that industrial
relations is one of the significant factors that affect organisational productivity directly or
indirectly. In reality, labour is one of the most important factors of production in any type of
organisation (Ayani and Awe, 2011) and it is believed that establishing relationships with
labour can be effective to increase labour productivity which in turn can contribute to the
productivity of the organisation by employing a number of resources (Yesufu, 2000).
Question number 3 was included in the questionnaire to know the impact of labour relations
on organisational productivity in the opinions of survey respondents. It was identified that all
100 survey respondents gave value to labour relations in terms of growth of the organisations
but interestingly, the researcher received negative responses about the significance of labour
productivity in their organisations in question 2. Apart from one management personnel, all
other respondents showed disagreement with the implication of labour productivity in their
organisations.
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Finding 1: Based on survey results it can be said that organisations in Delta state do not give
sufficient importance to labour productivity
Labour management relations have a vital role in establishing relationships between
employees and employers and it depends on management how they relate management
objectives with labour objectives to achieve short-term goals and long-term objectives of the
organisations. In this regards, Olujide et al. (2004) provided five key management and labour
objectives as shown in table 2.1 (see chapter 2: literature review). All these objectives are
important in terms of organisational productivity but Olujide et al. (2004) did not mention
that which objective has a higher priority that each party seeks to achieve. In question number
4, it was asked to the survey participants to rate each objective of labour management
relations by providing them both perspectives: management perspective and labour
perspective. It was identified that management was willing to prioritise maintenance, control,
and bargaining power to achieve organisational productivity whereas labour perspective was
different where importance was given to individual goals, ambition, improving economic and
working conditions, and dispute handling over scarce job opportunities and maintenance of
the organisation. The difference between priorities of labour and management objectives was
not surprising because there is always a gap between the thinking of each party but it is an
immense responsibility of trade unions and management to establish a correlation between
the objectives of both parties in order to achieve desired goals.
Finding 2: There is a gap between the thinking of management and labour about the
objectives of labour management relations
As stated above that trade union can play an imperative role to pursue growth in present
working conditions with combined efforts to correlate the objectives of both parties (i.e.
labour and management) therefore, they can indirectly contribute to the organisational
productivity. According to Ademiluyi and Imhonopi (2010), workers can get more benefits if
they join unions because these unions are established to protect the rights of the workers and
also aim to improve the working and environmental conditions within the organisational and
industrial systems (Fashoyinm, 1980). The contribution of trade unions was also evident from
the results of primary data in question 5 where approximately 71% participants were agreed
that trade unionism contributes to organisational productivity and similarly it was also
confirmed from the results of question 6 that unions in Delta state are playing their role in
dynamic fashion which also linked to the fact identified by Iyayi (2008) that unions in
40 | P a g e
Nigeria have gone beyond their normal role of championing the cause of workers to exercise
much governmental and public authority and acting as cautious caretakers of the people.
Furthermore, to ensure to the impact of trade unionism on organisational productivity,
question number 7 was included in the questionnaire which was based on different functions
and roles of trade unionism. It was identified that more than 70% respondents were agreed
that trade unions play a vital role in the society to improve working conditions and also they
help to assure collective and individual job security against all possible dangers. It was
interestingly found that in the opinions of over 60% respondents trade unions are not threat
for the management which is similar to the review of Worldnet (2009) where it was stated
that trade unions as organizations of employees are created to negotiate with employers
through management and have a positive impact on organisational productivity. Similarly,
the results of the primary study reveal that more than 66% respondents believe that trade
unions cannot help to relate to labour unions on both local and international levels. In
contrast, it was observed in the literature review that trade unions are useful to relate with
labour unions on both local and international levels (Fajana, 2006).
Finding 3: According to survey participants, trade unions cannot help to relate to labour
unions on both local and international levels
Labour management cooperation also has a deep impact in fulfilling the objectives of
relations strategy in the economy (Gera and Gu, 2004). In responding question number 8,
nearly all the participants either said ‘important’ or ‘somewhat important’ that supports the
findings of other researches which were conducted by a number of researchers (e.g. Katz et
al., 1983; Shuster 1983; Katz et al., 1985; Norsworthy and Zabala, 1985) where it was
demonstrated that labour management cooperation contribute to organisational performance
and also helps in the decision making process the during time of ambitious crisis.
Panayiotis et al (2011) mentioned that lack of commitment of workforce may hinder the
success and growth of the organisation. The main focus of leadership is to target
organisational performance by adopting different leadership styles to achieve desired goals.
During primary investigation, it was discovered by the results of question 10 that many
organisations do not follow any leadership pattern of labour management relations when most
of the respondents (54%) marked ‘no leadership style’. In the same question, different
leadership styles were given to the respondents on the basis of the literature review to select
41 | P a g e
from them which style their organisation is following. It was identified that most of the
organisations in Delta state are following traditional democratic leadership style. Thus, this
inadequate leadership style is becoming the main reason of poor and incompetent leadership
(Dangago, 2005) that is directly affecting labour management relations and indirectly
hindering the productivity of the organisations.
Finding 4: Most of the organisations in Delta state are not using any leadership pattern and
other organisations are using traditional democratic style leadership
Dattner (2010) explained that a well-organised performance appraisal system recognizes an
employee’s contribution thereby giving employees useful performance feedback. Question 11
was included in the questionnaire to know the worth of performance appraisal system in
organisational productivity in the context of labour management relations. Apart from 4
participants, others were fully or partially satisfied that their organisations are using
appropriate performance appraisal systems.
Collective bargaining is a key function of a trade union which helps to resolve labour issues
with regards to many socioeconomic dimensions (Opute, 2011). The results of question 12
revealed that nearly 75% respondents were agreed that collective bargaining is important and
helped them to resolve their issues in the past. Remaining 25% participants marked ‘neutral’
because most of them belongs to management.
It is evident from the literature review that incentive based bonuses have greater influence on
organisational productivity than non-union plants (Black and Lynch, 2001). In addition, Moe
(2000) and Steers and Porter (2000) confirmed that different organizations in the past have
used different incentive programmes to improve employee motivation and organisational
productivity. The healthy responses (95%) of the last question in the questionnaire also
proved the findings of the researchers that management strategy of motivational incentives
would significantly influence labour management relations in regards to the efficiency and
productivity of the organisation.
Finding 5: The management strategy of motivational incentives would significantly influence
labour management relations in regards to the efficiency and productivity of the organisation
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5.1 SUMMARY OF THE FINDINGS
The summary of the findings is helpful in formulating conclusion as well as addressing the
key research questions. It is necessary to declare that the present study was based on sample
size of 100 participants which is not a very large sample. Therefore, caution needs to be taken
when interpreting the results and findings as they might not represent the whole population.
The opinions of survey participants about the importance of industrial relations and labour
productivity are allied with the literature studies. Similarly, many participants stated that the
role and contribution of trade unions are also inherent for organisational productivity. In
addition, the results of primary investigation revealed that labour management cooperation,
performance appraisal system, and collective bargaining also have deep impacts in fulfilling
the objectives of relations strategies in the economy.
During the investigation, it was also found that organisations in Delta state do not give
adequate importance to labour productivity. Survey results also highlight the gap between the
thinking of management and labour personnel towards the objectives of labour management
relations. Survey participants also believe that trade unions cannot help to relate to labour
unions on both local and international levels. It was identified that most of the organisations
in Delta state are not using any leadership style and some organisations are using traditional
democratic leadership style which is not appropriate in this modern World. Another finding is
that the management strategy of motivational incentives would significantly influence labour
management relations in regards to the efficiency and productivity of the organisation.
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CHAPTER 6 – CONCLUSION AND RECOMMENDATIONS
The conclusion of this study is mainly based on each objective that was achieved during the
research. On the basis of the conclusion, research hypothesis will be addressed.
Objective 1 : To evaluate how the various management styles affect the behaviour and
output of employees at work
The management style and attitude of the managers encourage and motivate workforce to
perform better in any type of organisation (Steers and porter 2000; Cadwell 2001; Christesen
2002) in order to increase productivity and promoting organisational accountability (Cherniss
and Kane, 2004). For this purpose, it is inherent to establish industrial and labour
relationships that may lead to affect organisational productivity directly or indirectly (Yesufu,
2000). Englama (2001) believe that consultation in policy making, delegation, and group
dynamics can change the behaviour and output of employees at a workplace. During the
survey investigation, it was also found that survey respondents are aware of the importance of
industrial and labour relations in terms of boosting organisational performance (see results of
question 1 and 3 in figure 4.2 and 4.4) but it was also discovered that importance is not given
to labour productivity within the organisations in Delta State (see results of question 2 in
figure 4.3).
Trade unions always provide an edge to workers to gain benefit through memberships
(Ademiluyi and Imhonopi, 2010). Trade union usually formed from the collective efforts of
workers to pursue growth in the present working environment. Fashoyin (1980) opined that
labour unions help the workers to protect their rights and also bring improvement in the
industrial relational system. It was also confirmed from the survey data when the majority of
the respondents were agreed with the role of trade unionism for its contribution to
organisational productivity (see results of question 5 in figure 4.5). In addition, it was also
discovered that unions in Delta state are playing a vital role to protect the rights of the
workers (see results of question 6 in figure 4.6) which was also identified by Iyayi in 2008 in
stating that unions in Nigeria have gone beyond their normal role of championing the cause
of workers to exercise much governmental and public authority and acting as cautious
caretakers of the people. The respondents made a strange discovery about the trade unions by
stating that trade unions are not helpful to relate with labour unions on both local and
international levels (see results of question 7 in figure 4.7), in fact, on the other hand, Fajana
44 | P a g e
(2006) believe that unions are useful to relate with labour unions on national and international
levels.
Leadership style and pattern are important tools that also have deep impacts on the behaviour
and output of employees at work in order to achieve desired goals and objectives. Dandago
(2005) and Panayiotis et al (2011) mentioned that poor or incompetent leadership may lead
low trust, job insecurity, and indecision within the organisation. From the literature studies it
can be concluded that the core aim of leadership is to target organisational strategic
objectives and for that reason leaders normally adopt different leadership styles that can be
categorised as tradition, modern, and contingency approaches (Likert, 1967; Kurfi, 2009).
The survey study reveals that traditional democratic leadership style is popular in Delta state
organisations (see results of question 10 in figure 4.10) therefore, this inadequate approach is
the key reason of poor and incompetent leadership (Dangago, 2005) which is directly
affecting the behaviour of employees at work and also directly affecting the labour
management relations.
Objective 2 : To evaluate how labour management relations have an impact on
organisational productivity within the survey companies
Many studies have shown the essentialness and effectiveness of labour management
relationships in increasing organisational productivity. Labour management relations is one
of the key factors that affects the behaviour and output of the employees at work and has a
deep impact on organisational productivity. The core objective of labour management
relations is to establish relationships between employees and employers. Olujide et al (2004)
asserted five key objectives with the perspective of labour and management and stated that it
is the responsibility of the management and union to ensure the compatibility between the
objectives of each party. The survey study highlighted a thinking gap between management
and labour in achieving objectives of labour management relations (see results of question 4
in table 4.1 and 4.2).
Forming labour management cooperation is an imperative objective of industrial relations
strategy to organize labour compliance and also for carrying on management controls over
labour (Gera and Gu, 2004). Same like previous studies conducted by numerous researchers
such as Katz et al. (1983), Shuster (1983), Katz et al. (1985), and Norsworthy and Zabala
(1985), the current study also confirmed the contribution of labour management cooperation
45 | P a g e
to enhance organisational performance and productivity (see results of question 8 in figure
4.8).
According to Dattner (2010), performance appraisals can recognise the employee’s
contribution in organisational overall performance and productivity. In addition, appraisals
can improve job performance by identifying strengths and weaknesses of employees which
helps the management to determine how their strengths can be better utilised to increase
organisational productivity (Michael, 2000). The primary investigation reveals that
organisations in Delta state have an appropriate performance appraisal system (see results of
question 11 in figure 4.12).
Research hypothesis : labour management relations would not significantly influence
the workers’ performance and productivity in the selected companies in Delta State.
In addition, the management strategy of motivational incentives would not
significantly influence labour management relations in regards to the efficiency and
productivity of workers in those selected companies in Delta State
It was assumed that labour management relations would not significantly influence of
workers performance and productivity in the selected organisations in Delta State and the
results of question 4 (see table 4.1 and 4.2) supports the statement but on the other hand, the
contribution of labour management cooperation and performance appraisal system in Delta
State organisation are good indications that labour management relations can significantly
influence the performance of the workers in achieving organisational productivity but for that
purpose there is a need to adopt modern or contingency leadership styles. Conclusively, on
the basis of findings from the literature review and primary investigation it can be said that
establishing appropriate labour management relations with effective leadership can influence
the workers’ performance and productivity in Delta State.
It was also assumed that the management strategy of motivational incentives would not
significantly influence labour management relations in regards to the efficiency and
productivity of workers in those selected companies in Delta State. It can be concluded on the
basis of literature studies that motivational incentives have great significance on
organisational productivity (Black and Lynch, 2001). Moe (2000) and Steers and Porter
(2000) identified that many organisations in the past have formulated management strategy
based on motivational incentives that considerably affect labour management relations in
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terms of enhancing workers’ performance and organisational productivity. The primary
investigation conducted by the researcher in this study also rejects the hypothesis where 95%
respondents believe that motivational incentives will significantly influence labour
management relations.
Objective 3 : To evaluate critically how labour management relations in the surveyed
companies could also be improved so as to ensure their attainment of a high level of
productivity
The maintenance of labour management relations is very important for the growth and
stability of any organisation. For this purpose, management and workers are required to
achieve organisational objectives collectively that can result in increased profitability and
productivity. It is the responsibility of management and unions to maintain and improve
working conditions for the workers to attain a high level of productivity but it is found during
the survey that importance is not given to labour productivity within the organisations in
Delta State (see results of question 2 in figure 4.3).
Recommendation 1:Recommendation 1: Give sufficient importance to labour productivity Give sufficient importance to labour productivity
On the basis of above finding it is therefore recommended to the organisations in Delta State
to ensure labour productivity because it can indirectly affect organisational productivity
(Ayani and Awe, 2011). In this regards, the role of unions is very important because
according to the survey findings they have good influence on workers and already acting as
cautious caretakers of the people in Nigeria.
Recommendation 2:Recommendation 2: To fill the gap between the thinking of management and labour in To fill the gap between the thinking of management and labour in
achieving objectives of labour management relationsachieving objectives of labour management relations
Although, the difference between the thinking of management and labour personnel is not
surprising but in order to ensure the attainment of a high level of organisational productivity,
it is important to narrow down the gap between the thinking of management and labour about
the objectives of labour management relations. In essence, it is an immense responsibility of
trade unions and management to establish a correlation between the objectives of both parties
in order to achieve desired goals.
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Recommendation 3:Recommendation 3: Establishing relationships with labour unions on both national and Establishing relationships with labour unions on both national and
international levelsinternational levels
It is believe that relationships with labour unions on both local and international levels are
useful in terms of labour management relations (Fajana, 2006) but it was discovered that in
the opinions of participants trade unions cannot help to relate to labour unions on both local
and international levels. This shows that participants have no faith on trade unions that they
can establish relationships at the national and international level. Therefore, it is
recommended to trade unions in Delta State to adopt appropriate strategies to develop
relationships with labour unions locally and internationally.
Recommendation 4:Recommendation 4: Adopting modern leadership styles Adopting modern leadership styles
It was also identified during the primary investigation that many organisations in Delta State
are following traditional democratic leadership style which is directly affecting labour
management relations and also hindering to attain a high level of productivity. It is
recommended for the management to adopt a modern or contingency leadership approaches
to bring improvement in the labour management relations.
Recommendation 5:Recommendation 5: To adopt management strategy of motivational incentives that would To adopt management strategy of motivational incentives that would
significantly influence labour management relationssignificantly influence labour management relations
It is proved from the literature studies that motivation incentives have great impact on labour
management relations (Moe, 2000; Steers and Porter; 2000; Black and Lynch, 2001) and
survey participants also recognise the importance of motivational incentives in ensuring a
high level of productivity by establishing labour management relations. It is the responsibility
of the management to adopt appropriate strategies of motivational incentives that would
significantly influence labour management relations.
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Appendix A: Questionnaire
All answers will be treated in strict confidence
Name (optional): __________________________________________________
Management (or) Labour personnel: _________________________________
Department: ______________________________________________________
1- Is industrial relations a leading factor that affects productivity directly or indirectly?
Strongly agree □
Agree □
Neutral □
Disagree □
Strongly disagree □
2- In your organisation, importance is given to the labour productivity?
Strongly agree □
Agree □
Neutral □
Disagree □
Strongly disagree □
3- In your opinion, what is the importance of labour management relations in terms of organisational productivity?
Very important □
Important □
Somewhat important □
Not important □
Neutral □
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4- How you rate the objectives of labour management relations? (Ranking is up to you)
Please rank each objective using 1 – 5 scales where 1 = least objective and 5 = main objective
Management perspective Labour perspective
Improvement of personal goals and ambition s Individual goals and ambition
Maintenance of control of the organization Maintenance of the organization
The maintenance of the organization and well being
Rationing of scarce job opportunities
Improvement of certain social and economic goalsDevelopment of a judicial system of deciding disputes over rights of individual workers
Formation of relationship with bargaining goalsUpgrading working conditions and economic welfare of members
5- Do you agree that trade unionism contribute to the productivity of the organisation?
YesNo
6- The trade union supports you?
YesNo
7- To what extent you are agreed or disagreed with the following statements?
1- Strong agree, 2- Agree, 3- Neutral, 4- Disagree, 5- Strongly disagree
Please tick one answerTHE IMPACT OF TRADE UNIONISM ON ORGANISATIONAL PRODUCTIVITY 1 2 3 4 5a) Trade unions play a vital role in the society to improve work conditions
b) Trade unions assure collective and individual job security against all possible dangers
c) Labour union is a force who governs sustainable consumption and production
d) Trade unions are the threat and have negative impact on the management
e) Trade unions can help to relate with labour unions on both local and international levels
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8- In your opinion, what is the importance of labour management co-operations in terms of organisational productivity?
Very important □
Important □
Somewhat important □
Not important □
Neutral □
9- In your opinion, to what extent leadership is important for labour management relations?
Very important □
Important □
Somewhat important □
Not important □
Neutral □
10- What leadership style is adopted by your organisation?
Traditional styleAutocratic leadership □
Democratic leadership □
Laisse-faise leadership □
Modern styleJob-centred □
Employees-centred □
Job-employee centred □
No leadership style □
11- Do you agree that performance appraisal is essential for labour management relations?
Fully □
Partially □
Not at all □
12- In your opinion, how important collective bargaining is in resolving particular labour related issues?
Very important □
Important □
Somewhat important □
Not important □
Neutral □
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13- Do management strategy of motivational incentives would significantly influence labour management relations in regards to the efficiency and productivity of organisation?
YesNo
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Appendix B: Frequency tables
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