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EXAMINATION OF THE EFFECT OF INDUSTRIAL RELATION PRACTICE ON ORGANIZATIONAL PRODUCTIVITY IN THE PUBLIC SECTOR


CHAPTER ONE

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 (20020 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 with in 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 fulfillment in the work situation (Yesufu 1984).

 

1.2     STATEMENT
OF THE PROBLEM

The attention have 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 unproductivity 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:

·                   
To prevent and settle trade dispute
between employers and trade union in order to achieve greater productivity in
the organization.

·                   
To help and maintain the machinery
of joint consultation between management and union.

·                   
To keep in close touch with state,
employer and employee relations.

·                   
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

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

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

Ho:
Negotiation and collective bargaining do not have any effect in solving
industrial relation disputes.

H1:
Negotiation and collective bargaining have significance effect in solving
industrial relation disputes.

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.