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EFFECT OF LABOUR RELATIONS ON WORKER PRODUCTIVITY

ABSTRACT

This study examines the effect of labour relations on workers productivity in an organization using 7 up Bottling Company Nigeria Plc. as a case study. Labour relations is a group of workers organize in the work place to mediate the interest of members in an organization. Highly motivated union increase productivity in organization. The objective is to investigate if there is a significant relationship between labour relation and workers productivity. In order to achieve the objective of the study, the researcher employed tables, simple percentage and chi-square statistical techniques to effectively determine the relationship between the variables.  We therefore recommended that workers representative (labour unions) should be treated as important personnel because they encourage the workers to give their maximum cooperation.  Management should keep or maintain a good communication flow to avoid crises in the organization.  

CHAPTER ONE

INTRODUCTION

1.1     Background to the Study

In the various economics of the world today, there exist different types of organizations. Some of these organization are either profit oriented or non-profit oriented, but which  ever one it is, we can easily identify labour as a key group and how it relates with management in the  organization (Stone & Gillbeth, 2011). Management and labour are the  two parties on which productivities  in organization can be improve and the foundation of every organization is built on it and it continued existence guaranteed.

Labour is a group of workers organized in the work place (Hornsby, 2001). They came together and form unions in order to protect the interest of all workers irrespective of whether they are union member or not. Management on the other hand is a group of employees concerned with the day to day administration of organization through directing and controlling the activities of labour (Hornsby, 2006). Management is mainly concerned with the protection of the shareholders or investors by ensuring the survival of the organization. The objectives of labour are to achieve the highest wage for members,  favourable working conditions and general worker welfare, while that of the management include controlling of  cost which will result in fair returns to shareholders and  maximization to profit for the organization. Hackett (2011) argued that labour seeks to achieve the highest wage by effectively and efficiently utilizing adequate raw materials to provide for the production of goods and services that management can control the cost by employing well skilled personnel, good workers controlling system and the ability to motivate them to work that could increase productivity in organization.

In most cases, some organization controls its cost by acquiring a high quality labour at the lowest price, obtaining high quality raw maters of the cheapest price and also controlling over head cost with collective bargaining but do not consider that the labour who keeps them in existence needs to be well motivated, this often cause a lots of problems. 7up Bottling Company valued their employees. This can be seen as all employees in the organization are given their entitlement that is due for them. According to Hackett (2011) problems in organizations such as poor production, nonchalant attitude towards work and waste of raw materials often arise when laboour is neglected. The management should give room for workers motivation and consequently, the workers should be allowed to participate in the decision making process which affect them and their jobs or work. This will bring industrial peace and maintain a well and effective relations as well as improved productivity. Hence, the measure of increased workers productivity can only be achieved under a peaceful industrial environment. In a nutshell labour is the greatest assert of any organization and management should regard and motivate them properly. For any organization to achieve its objectives there must be mutual cooperation and cordial relationship between labour and management.

1.2     Statement of the Problem

It is generally accepted that management and labour are two indispensable groups in every organization an that their positively or negatively. Some organization labour relations is very poor. They don’t even bother about their workers welfare and incentitives that is supposed to be given to them. These has a way of discouraging workers there by leading to low productivity output in that organization. Secondly, management of organization hardly yields to the interest of workers during negotiation. This often deepened the crisis between labour union and management. This problem identify, creal a knowledge gap for this study. 

1.3     Research Questions

Some of the research questions that the researcher will provide answer to are:

1. Is there any significant relationship between labour relation and workers productivity?

2. What are the human relation factors that affect performance of workers in organization?

3. Does the decision making by labour relation affect the workers productivity?   

1.4   Objectives of the Study

The following are the various objectives to be achieved by the researcher:

1. To investigate if there is any significant relationship between labour relations and workers productivity.

2. To determine the human relation factor that affect performance of workers in organizations.

3. To examine if the decision making by labour relation affect the workers productivity.    

1.5  Statement of the Hypotheses

The following hypothesis shall be tested:

1. There is no significant relationship between labour relation and workers productivity.

2. There are no human relation factors that affect performance of workers in organization.

3. Decision making by labour relation does not affect workers productivity.

1.6   Scope of the Study

The research work will cover a period of three years and would be restricted to 7up Bottling Company, Benin City Branch. The areas which will be investigated on are: Issues relating to labour, management and workers productivity in 7up Bottling Company. 

1.7  Significance of the Study

For every research work, the researcher must have reason for embarking on the study. This study will be relevant to all the stakeholders particularly the following:

1. Managers: The study will enable the managers to understand the effect of labour relation as an instrument to boost organizational performance. It will also assist the managers an appropriate decision making and effective communication of strategy needed to increase productivity in organization.

2. Investors: It will enable the investors to understand the secrete of making higher returns through good labour relations that increase productivity. It will assist them to know the various strategies required to monitor profit and stabilized returns through human resources management.

3. Employees: It will enable them to understand the welfare packages that is due for them in organization and the high rate productivity that is required from them.

4. Student and Researcher: It will provide an avenue for them to understand the impact of labour relation and workers productivities in organization so as to conduct more research on the area for knowledge expansion.

1.8  Limitations of the Study

One of the major problems encountered in the course of this research is heavy reliance on primary data. There are no secondary data to capture the research topic. Most of the staff are just school leaving certificate, not knowing the relevance importance of research work and there by giving poor responses. Secondly, finance was also a major problem as this kind of research requires large examination of respondent so as to extract useful information. So therefore, the researcher was limited by lack of fund. Thirdly, time factor problem. There was absolutely no time as the research was still combining vigorous academic work with the project.

1.9     Operational Definition of Terms

Labour Relation: Is an industrial act of mediating between employees and employers to achieve optimal product.

Management: Is a process of planning, ordering, motivating, coordinating and controlling the activities of organization.

Organization: is the process of organizing a set of workers that can work together to achieve the organizational purpose or objective.

Decision Making: Is the process of resolving on how work in organization is going to be done.

Productivity: Is the efficiency of work done in industrial production. 

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