THE IMPACT OF INDUSTRIAL RELATIONS PRACTICES ON NIGERIAN BUSINESS ORGANIZATION(A STUDY OF SELECTED FIRMS IN RIVERS STATE)

ABSTRACT

The project aimed at examining the role of Industrial Relations Practices in Nigerian Business Organization. The main objective of the study is to examine the role of industrial relation practice in Nigeria business organization other objectives are to examine the causes of conflict in selected Nigerian organizations, to find out the effects of such conflict on the organization and the society in general, to find out the various forms of industrial relations policy adopted by the management of the organization, and to know how these policies affect labour/management relationship in such organization. In this regards, the study implored five (5) randomly selected companies. The instrument of the studies includes the use of questionnaires, interview and personal observations. Information so provided was analyzed using simple percentage, for the research question and z-test for the two hypotheses. From the findings, it was found that, lack of adequate condition of service given rise to conflict, employees; unions were not allowed access to managerial meting and law/policy bordering workers. And government interventions in industrial relations are influenced by conflicts is as a result of poor condition of service, management practiced paternalistic industrial relation policy rather than collaborative. The study recommends that employees, should be given better conditions of service by management, union leaders be considered in major decisions. Particularly those that borders on workers. More so management policies should be collaborative other than paternalistic. 

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Few issues engender more emotions among businessmen and their employees than that of labour management. Some businessmen have folded their operations rather than negotiate terms of employment with their workers union. Even more businessmen have freight long, expenses given “war with labour”. Sometimes successfully, more commonly not. Even most tolerant executives emotional are tasked when discussing labour and its organization. And the picture on the other side is not better. Rare is the union leader who has many king works for employers. More commonly labour at best is suspicion of management motive.

Bus-Kupt et al, 1976). In recent times, the voice of the Nigerian workers has become louder, industrial dispute is now a common phenomenon. These disagreements between employees and management had after led to work stoppages, strikes, workouts etc. and such other actions that out rightly reduce the productivity of the average workers.

These actions therefore however, affect the entrepreneurs most since his/her profit on investment will in no doubt be reduced.

Managing industrial disputes has been the primary concern of industrial relations practitioners and labour leaders.

It has been recognized however, the various kinds of employee grievances often lead to industrial disputes. An industrial dispute is a situation in which two or more groups (management, employees, entrepreneur) perceive that they have in compatibility of goals and Inter dependence of activity.

Unless one believes in an utopian world where all interests are additive, overlapping and compatible, one must admit to possible conflicts accompanied by deliberate behaviour, characterized by interference’s and blockages (Flippo, 1984). Employees and organizations need each other and are therefore interdependent.

However, employees and organizations have some values that are conflicting e.g. Ego versus control, self-actualization versus divisions of labour, and freedom versus efficiency (YUSEF, 1981). Sustained your suffering, however breeds a brotherhood of under training, join endeavour and mutual assistance, and it is not surpassing that workers in the circumstances, found it necessary to organize trade unions at the most effective means of both exerting and defending better terms and conditions from their employees.

This has been accepted institution with the industrial structure (YUSUF, 1981). As a discipline, industrial relations involved as a study of economic class conflicts between employers on one hand and increasingly organized workers on the other.

In essence therefore, the logic of industrial relations seems to have been derived from an interest class conflict.

A total absence of conflicts would be unbelievable, boring and strong indications that such conflicts are being suppressed. One of the characteristics of a mature group is its willingness and ability to bring higher degree of resolving them. Conflict per-se is whether bad nor contrary to good of the organization.

However, the first step in conflicts resolution is their discovery and exposure. There are many upwards demands of communication that can be developed for the purpose of bringing dissatisfaction to the surface (Flippo, 1984).

Industrial conflicts have no final or permanent victor as such, for both side employers and workers-mutually supportive. In an important aspect, the problem of industrial relations is derived out of how to organize production and share the returns of their joint endeavour. Symth (1977) defined conflicts as a dynamic process, a type of behaviour involving two or more parties in opposition to each other. Stoner (1977) also have it that organizational conflicts is a disagreement between two or more organizational members or group arising from the fact that they must be scarce resources or work activity and or from the fact that they have different status, values or perceptions.

High productivity and stable market economy can only be achieved where there is cordial relationship between employers and employee for this reason as (Rothwel, 1984) puts it. Government regards itself as mandated to produce trade unions powers, and has adopted a strategic approach.

Laws and decrees have been promulgated at several instances to restrict the scope of industrial actions at risk and reducing the scope of closed shops and union membership agreements, but this has only succeeded in reforming rather than eliminating them.

Although, studied have been advanced on conflict management, very little has been done having in mind the contemporary Nigerian organizations and little emphasis has been given to the process of generating and exposing distraction faction in organization. Not with standing, managerial industrial relations policies could also help.

1.2 STATEMENT OF PROBLEMS

In most Nigeria organization, it has been the responsibility of the management to maintain a stable labour force and to stimulate the efforts of its members in a positive manner by providing those essential materials that are needed for effective work performance, if in one way on the other management fail to comply with the stipulation of the workers handbook which could eventually lead or result to  industrial conflict if not settled will be detrimental to the organizational objectives.

Industrial conflict tends to slow down productivity in some cases stop productivity in organization objectives and goals.

1.3   OBJECTIVES OF THE STUDY

The focus of this study has it’s as follows:

1. To examine the causes of conflict in the selected Nigerian organizations.
2. To find out the effects of such conflict on the organization and the society in general.
3. To find out the various forms of industrial relations policy adopted by the management of the organization.
4. To know how these policies affect labour/management relationship in such organization.
5. To examine how conflict are managed so as to bring about higher productivity in the interest of labour and management.

1.4   SIGNIFICANCE OF THE STUDY

The value of any study lies in its usefulness to the society. In view of this fact therefore, this study which focuses on the role of industrial relations practices in the Nigerian organizations is of most useful to labour leaders and management of the oil industries and government owned parastatals.

Apart from its value to decision makers in organizations, this study is of immeasurable importance to students and lecturers of the faculty of management sciences who may like to further their understanding of the role of industrial relations practices in both government owned parastatals and outside firms.

Above all, it is therefore hoped that this study will stimulate further studies in this area.

1.5   RESEARCH QUESTION

In order to achieve the objectives of the study the researcher decided to postulate some question that will guide the researcher. They are:

1. What are the common sources of conflict in the organization?
2. What effects do these conflicts have on the organization workers, management and the society?
3. What kind of industrial relations policy does the management of the organization actually practice.
4. What are the inbuilt devices that are aimed at resolving conflicts?
5. How do workers (unions) perceive management’s action?
6. What role does management plays in trying to encourage industrial peace and harmony?

1.6   STATEMENT OF HYPOTHESIS

In order to achieve the objectives of the study and answer the research questions well framed hypotheses were formulated as follows:

H0:  There is no significant relationship between industrial relations practices in an organization and its success of survival.

H1:  There is a significant relationship between industrial relations practices in an organization and its success of survival.

HO: There is no significant relationship between industrial relations practices, and organization effectiveness.

H2:  There is a significant relationship between industrial relations practices, and organization effectiveness.

1.7   SCOPE/LIMITATION OF THE STUDY

The study is designed to focus on selected Nigerian companies in Rivers State.

This study will be limited to the study of industrial relations practices in Daewoo, Prodeco, Eco Bank, Dangote Cement and Federal Ocean Terminal Onne, Eleme.

The short period required for all completion of the study would introduced elements in rush, which will affect the researcher’s performance. Besides lack of enough money is also another chronic limitations among students of which the researcher was not exempted.

The sample size involving five (5) companies and statistical error will also constitute the major weak point to the study, notwithstanding, the researcher believes that, the data generated will guarantee reasonable conclusion therein.

1.8   DEFINITION OF TERMS

The words below are peculiar to the study and needs to be defined technically to avoid. They are:

INDUSTRIAL RELATION:  Refers to the regulation of contact of employment situation based on democratic principles by the employer/management and workers union or government acting as an umpire.

UNIONS:        Refers to as a collectivity of workers formed for the purpose of increasing their bargaining strength in order to achieve improved terms and conditions of employment.

STRIKE: Any situation or condition of all workers in an employees and management resulting in stoppage of work.

INDUSTRIAL UNION:          Is the uniting of all workers in an organization irrespective of their craft, trade, occupation or grade of skill to achieve a common goal.

PRACTICE:            Refers to routine test cement out by industrial relations experts for the purpose of a achieving peace and harmony in organization.