EXAMINATION OF THE EFFECT OF INDUSTRIAL RELATION PRACTICE ON ORGANIZATIONAL PRODUCTIVITY IN THE PUBLIC SECTOR (A CASE STUDY OF FEDERAL MINISTRY OF FINANCE, ABUJA)

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Industrial relation has become formalized in the form of employment contract between the workers and the employers. The parties are seen as equal, who have invested their capital and aim at maximizing profit. The workers on the other hand contribute his services, which if not remunerated falls into abject poverty and dies.  An industrial or labour management relation is a strategic aspect of human resources management and can be defined in several ways. Anugwom (2002) defines industrial relation: As the network of social relationship between the employees and their union, employers and the association, and the government and the numerous agencies in their attempts to regulate terms and conditions of employment and person other function that directly concern the initiation and substance of peaceful and purposeful labour management relation which involve applying machinery dealing with complaint, grievance and disputes in an organization. Yesufu (1984) defined “Industrial Relations as a whole web of human interactions at work which is predicated upon the matters that arise out of the employment contract”. Armstrong (1980) sees Industrial Relation as the intertwining activities of the worker, managing and government for better working conditions. Hence, the scope of industrial relations embraces relations and interaction between one trade union management and the state (i.e.  Government) are all important issues which fall within the purview of industrial relations. In the federal ministry of finance, Abuja, industrial relation deals with everything that affects the relationship between workers and employers, perhaps from the time the employee joins the work in federal ministry of financial until the time he or she leaves his or her job. However, industrial relation is also fundamentally concerned with a complexity of power relationship and power sharing between management, the employee or trade union and the state (i.e. government) furthermore, with the realization of the vital importance of work to the entire life of a worker, industrial relations is becoming increasingly concerned with how the employee can be fully identified with the purpose of the organization and how he, by effective participation both in the work effort and decision making, can find greater self fulfilment in the work situation (Yesufu 1984).

1.2     STATEMENT OF THE PROBLEM

The attention has been devoted to examine the cause or factors which have been largely responsible for unproductively in the industrial relation practice. One of the problems of industrial relation practice is employment of unsuitable candidates in preference to candidates of high merit. The reason can be trace directly to nepotism. Another problem encountered is the area of employment security whereby there is unusual termination of employment. This implies hours of work, shifts, holidays or leave. Remuneration; level, frequency, method of wage which is the most sensitive area because the aim of every worker is to ensure that the method of wage in the organization is favoured and beneficial to him, payment and wage fixing. No worker will want his payment to be withheld, but this has become the custom of organization in Nigeria. There are always regular labour and employee grievances and disputes in industrial relations, practice which leads to industrial strike actions and it reduces productivity. The constant conflict and industrial disputes leads to low level of production and efficiency in an organization. It includes sickness and old age benefit, maternity leave, employment injury compensation.  Safely, healthy and welfare at work upgrading and promotions. The attainment of the various factors which have been largely responsible for organizational un-productivity and effective industrial relation practice in the public service like ministry of finance, Abuja, is usually a difficult task because of reasons such as lack of management support, poorly policy process, funds etc. Therefore, the problem in this research is to really asses organizational productivity and effective industrial practice in the public service like ministry of finance, Abuja and to find out whether this can be use to solve problem in the ministry.

1.3     OBJECTIVES OF THE STUDY

 The objectives of the study are as follows:

1. To prevent and settle trade dispute between employers and trade union in order to achieve greater productivity in the organization.
2. To help and maintain the machinery of joint consultation between management and union.
3. To keep in close touch with state, employer and employee relations.
4. To advise the organization (i.e. ministry of finance, Abuja) or the government on industrial relation problem.

1.4     RESEARCH QUESTIONS

1. What impact do you think that industrial relations policies have brought in the organization like ministry of finance, Abuja?
2. Are those who make these policies for ministry of finance, Abuja qualified for such tasks?
3. Do negotiation and collective bargaining have a significant effect in solving industrial relations problems?
4. What do you think that should be used to achieve organizational productivity and effective industrial relation in the federal ministry of finance, Abuja?  

1.5     STATEMENT OF HYPOTHESIS

Hypothesis 1

Ho: Industrial relation practices do not have any significant effect in the improvement of organizational productivity.

H1: Industrial relation practices have a significant effect in the improvement of organizational productivity.

Hypothesis 2

Ho: There is no relationship between industrial relation practices and organizational productivity.

H1: There is a significant relationship between industrial relation practices and organizational productivity.

1.6     SIGNIFICANCE OF STUDY

The study will help both workers and management of federal ministry of finance, Abuja to know the problem of industrial relations. It will also bring the spirit of collective bargaining and joint consultation in the organization and help in settlement of industrial dispute in the organization. Also to keep in close touch with state, employer and employee relations.

1.7     SCOPE OF THE STUDY

The scope of the study is limited to federal ministry of finance, Abuja. This thesis is expected to focus mainly on examination of the effect of industrial relation practice on organizational productivity in the Nigerian public sector.

1.8     LIMITATION OF THE STUDY

 In carrying out this study, some difficulties were encountered.

• Financial constraints which hampered the researcher from visiting other federal and state ministries.
• Time constraints are also other major difficulties which the researcher encountered during this research because the researcher had equally other demanding official obligations to meet with.
• Another constraint was the uncooperative attitude of some of the respondents during the time the questionnaires were distributed to them.

1.9     DEFINITION OF TERMS

Industrial relation: This can be defined as the interviewing activities of workers, management and government for the working conditions. According to Yesuf (1962), industrial relations is a field of study which concerns itself with everything that has to do with the atmosphere and climate of work environment.        

Collective bargaining: this is seen as the process through which management and union representatives participate in the negotiation, administration, interpretation and enforcement  of written agreements covering joint understanding with respect to wages and salaries, races of pay, hours of work and other conditions of employment.

Industry democracy: this is the various ways by which workers influence the decisions of the organization for which they work.

Negotiation: This means the process in which union and employee discuss in order to come to an agreement.

Joint Consultation: This is a process whereby the employer and employee come together to discussion issues of mutual interest.

Trade Union: Is any combination of workers or employers whether temporary or permanent. The purpose of which is to regulate the term and conditions of employment of worker, whether the combination in question would or would not, apart from this decree be an unlawful combination by reason of any of whether being in   restraint of trade and whether its purpose do or do not include the provision of benefits for its workers.

Productivity: The rate at which a worker, a company or a country produces goods, and the amount produced, compared with how much time, work and money is needed to produce them.