employee relations and its effect on employee productivity in an organization ( case study of afribank plc)

Description

ABSTRACT

One of the most pressing issues facing most organizations today is the need to raise employee productivity. There is a widespread belief that productivity improvements can only be achieved through a fundamental reform in the area of employee relations. Changes are thought to be necessary both in the organization and structure of work and in the way in which employees are trained, remunerated and motivated. Moreover, it is argued that these changes cannot be separated from the need to overhaul our system of interest representation and dispute resolution. The activities of trade unions and the operations of arbitration tribunals are often viewed as impediments to management efforts to lift the competitive performance of their organizations. The purpose of this study is to evaluate these arguments, identify ways employee relations affect productivity, and how to improve productivity in organizations. Findings from this study revealed that employee relations practices affect productivity through employee morale, quality and quantity of output/product. Other findings include various challenges that employees face at workplace and various ways to enhance healthy relationship between employees and their employers in an organization. The most valuable recommendation given is to treat employees with great care.

 

 

 

TABLE OF CONTENTS

COVER PAGE

TITLE PAGE

APPROVAL PAGE

DEDICATION

ACKNOWELDGEMENT

ABSTRACT

CHAPTER ONE

• INTRODUCTION
• BACKGROUND OF THE STUDY
• PROBLEM STATEMENT
• AIM AND OBJECTIVE OF THE STUDY
• SIGNIFICANCE OF THE STUDY
• SCOPE OF THE STUDY
• PURPOSE OF THE STUDY
• RESEARCH QUESTIONS
• RESEARCH HYPOTHESES
• HISTORICAL BACKGROUND OF AFRIBANK NIGERIA PLC
• DEFINITION OF THE TERMS USED
• METHODOLOGY
• PROJECT ORGANISATION

 

CHAPTER TWO

LITERATURE REVIEW

• INTRODUCTION
• REVIEW OF THE STUDY
• THE PERCEPTION OF EMPLOYEE RELATIONS
• FACTORS LEADING TO EFFECTIVE EMPLOYEE RELATIONS IN THE ORGANIZATION

 

CHAPTER THREE

METHODOLOGY

• RESEARCH APPROACH
• DATA COLLECTION METHOD
• SAMPLING DESIGN
• RESEARCH TOOLS

CHAPTER FOUR

4.0      TEST AND RESULT ANALYSIS

DATA ANALYSIS AND INTERPRETATION

CHAPTER FIVE

• CONCLUSION
• RECOMMENDATION
• REFERENCES

 

 

CHAPTER ONE

1.0                                                        INTRODUCTION

1.1                                           BACKGROUND TO THE STUDY

Maintaining healthy employee relations in an organization is a pre-requisite for organizational success. Strong employee relations are required for high productivity and human satisfaction. Employee relations generally deal with avoiding and resolving issues concerning individuals which might arise out of or influence the work scenario. Strong employee relation depends upon healthy and safe work environment, cent percent involvement and commitment of all employees, incentives for employee motivation, and effective e communication system in the organization. Healthy employee relations lead to more efficient, motivated and productive employees which further lead to increase in production level. Over 40 percent of the companies listed in the top 100 of Fortune magazine’s “America’s Best Companies to Work For” also appear on the Fortune 500. While it is possible that employees enjoy working at these organizations because they are successful, the Watson Wyatt WorldwideHuman Capital Index study suggests that effective human resources practices lead to positive financial outcomes more often than positive financial outcomes lead to good practices.

In recent times, while most workers are on job, they do not produce more simply because of the un-healthy relationship they have with their fellow colleagues and employers. A recent study conducted by Blyton (2008) revealed that employees do not put up their best performances at workplaces when they are un-happy with management, government, or even their fellow colleagues. Bad employee-employer relationship results in strike actions and lockouts. All these actions taken by employees to display their grievances only do the organization harm than good as productivity will be reduced drastically.

By many accounts, employee relations today are in crisis. In academia, its traditional positions are threatened on one side by the dominance of mainstream economics and organizational behaviour, and on the other by postmodernism. In policy-making circles, the industrial relations emphasis on institutional intervention is trumped by a neo-liberal emphasis on the laissez faire promotion of free markets.

1.2                                               STATEMENT OF THE PROBLEM

Despite the fact that in today’s competitive business environment employee relations is one of the pillars and crucial functions of human resource management which leads to effective employee performance and organizational performance. Some organizations in nigeria seems to throw employee relations behind them by not giving it special attention and priority, as a result, they are still struggling to establish and maintain effective employee relations, this causes unnecessary disputes in these organizations which in turn affect their performance. Poor relations between the employer and employees among organizations operating in the globally and locally markets has become the challenge (Kaliski, 2007).

1.3                                          OBJECTIVE OF THE STUDY

The main objective of the study is to examine employee relations and its effect on employee productivity. Specific objectives of the study are:

1. To identify various employee relations practices, and its effect on the employee’s productivity of an organization.
2. To identify the challenges faced by employees at work places.
3. To identify ways of enhancing healthy relationship between employees and employers in an organization.

1.4                                          SIGNIFICANCE OF THE STUDY

This study seeks to bring out the various employee relations practices in an organization and the various practices needed to increase its productivity and contribute its quota in the economic development of the communities which it operates, and the country at large. This study will therefore help enlighten management of various organizations of the various effects of relationship practices between employers and employees in an organization. The study will also bring out specifically, the employee relations practices which various organizations use.

1.5                              SCOPE OF THE STUDY

Employee relations is one of the key fundamental elements of organizational performance, prosperity and sustainability. Good employee relations results in a highly committed, motivated and loyal employees in the organizations. The scope of the research will be limited to the employee relations practices and effects on employee productivity. The research will rely on both primary and secondary sources of data.

1.6                                                PURPOSE OF THE STUDY

Employee relations to contribute their efforts to accomplish organizational duties and task requires the identification variables that could be influencing such efforts. The identification of such variable is not an easy task. This could be attributed to the variety of employees need and aspiration from the jobs which imply that motivating factors are multi dimensional.

Basically, the purposes of the study are:-

(1)       To resolve problem in process of workers productivity.

(2)       To examine various leading theories of employee relations and their effect on productivity.

(3)         To determine whether a group of workers will have some need and wants which effects their productivity.

(4)       To determine whether financial motivation alone can satisfy the employees need and wants therefore stimulate them to work harder.

(5)       To arrive at suggestions which if implemented can help to improve the workers output and efficiency and thus achieve company goals and objectives.

(6)       To serve as guidelines for the easy study.

(7)       To serve as reference for other staffs.

1.7                                                             RESEARCH QUESTIONS

1. What are the factors affecting employee relations?
2. What is the impact of employee relations on employee performance?

1.8                                                            RESEARCH HYPOTHESES

Hypothesis statements based on assumptions include:

H01 (null hypothesis) – Working efficiency of employees is not dependent on the resources provided by the company to employees.

H11 (alternate hypothesis) – Working efficiency of employees is dependent on resources provided by the company to employees.

1.9                 HISTORICAL BACKGROUND OF AFRIBANK NIGERIA PLC

Afribank Nigeria plc, formerly known as International Bank for West Africa (IBWA) was granted a license to carryout banking business on 26^th October, 1959 and began operations on 4th January, 1960 with the opening of a branch in Kano and shortly afterwards another branch was opened in Apapa. The head office was subsequently established in 1960 at 94 Broad Street, Lagos. Originally owned by banque del Afrique Occidental (BIAO” IBWA’’) To reflect its 49% acquisition In 1964 by First National City Bank Icn. and consequently, its has international ownership.

The Bank was later incorporated under the Nigeria companies Act of 1968 as a private limited liability company on 30^th May, 1969. In 1976, the federal government of Nigeria has 60% ownership of the bank, later 10% was off loaded by the staff trustee ownership scheme while BIAO retained 40% shareholding on technical partnership. Afribank is one of the most diversify banks in the country over the last few years. The Bank has worked itself up to be among  the top  four (4) leading banks in Nigeria and it has a network of 250 branches covering entire country with an asset base of over N11.06 billion and a wide spectrum of corporate institution and individual customers that enjoy the professional services of the Bank.

In meeting the full range of its customers requirements, the bank has diversify its operation into the following wholly owned subsidiaries to compliment it comprehensive financial services delivery

• Afribank International limited (Merchant Bankers)
• Afribank insurance brokers
• Afribank estate company limited (for in house

services)

• Afribank trustee and Security Company limited.

Afribank mission is to achieve the position of a leading International growth providing comprehensive and qualitative banking and financing services which meet the change needs of its customers through the employment within the group of high caliber personnel and utilization of up to date technology, while ensuring optimum returns of its shareholders. As approved by Federal ministry government based upon the recommendation of the technical committee for privatization and commercialization (TCPC), the ministry of finance incorporation (MOFI) in 1993 relinquished all of  its equity holding in Afribank for sale to the public.

The share of Afribank were admitted and listed on the first tier market of Nigeria Stock Exchange (NSE) on 29^th October, 1993.

1.10                                     DEFINITION OF THE TERMS USED

For clarity purpose, the following words (and possible others) and terms will be used in the course of research work. The specific meanings assigned to these works are essential for a full understanding of the study. Among these words includes the following.

• Fringe benefit:- These are extra benefit given especially to employee in addition to their salaries or wages.
• Work:- That essential part of human life that relate to his Sustenance, survival, status and link to the society.
• Workers:- Davidson (1979) defines a worker as any

Person who has entered or works under a contract with an employer whether the contract of personality to execute any work of labour

• Administration:- According to breech, he defines  Administration as that part of management process concerned with the institution and carry out procedure by which the programme is laid dawn and communicated and the progress of activities is regulated and checked against target and plan (Robert Appleby C: Modern Business Administration P.4).
• Management :- It is a social process entailing responsibility for the effective and economical planning and regulation of the operation of an enterprise in fulfillment of given purpose or task.
• Motivation:- It is kind of inducement which spur the individual externally to undertake a task on a particular action.
• Productivity/performance:- The qualitative and quantitative turnout of worker in the goods and services
• Efficiency:- The sums up of qualities and quantities of Job produced within a given time and resources.
• Compensation:- That which is given as an equivalent for
• Job:- A set of task or responsibilities grouped together under a particular title.

1.11                                                      PROJECT ORGANISATION

The work is organized as follows: chapter one discuses the introductory part of the work,   chapter two presents the literature review of the study,  chapter three describes the methods applied,  chapter four discusses the results of the work, chapter five summarizes the research outcomes and the recommendations.

CHAPTER FIVE

5.1                                                                CONCLUSION

The study revealed that majority employees of Afribank have agreed that resources were provided by the company and has direct impact on their work efficiency. Availability of ample resources to employees leads to completion of work in time. It enhanced their performance. In addition , it was also found that performance of employees was related to other factors apart from resources provided such as:

• Effective communication of work related information – makes employee aware of the work related responsibilities and
• Motivation by work recognition – employee is encouraged to perform consistently and put their best effort in
• Fair policies and practices exhibited by the management of organisation– creates equal opportunities and provide equal treatment to employees without any bias which promotes positive attitude towards organisation and work among
• Job satisfaction in terms of salary, growth opportunities and work environment provided by the company – satisfied workers are happy workers and are more productive than other workers who lack job satisfaction. Work environment not only involves the ambience created by organisation but also co-workers. Afribank employees described their co-workers as pleasant and co-operative.
• Feedback and guidance from superiors – keeps employees on track regarding job targets they have achieved, whether they have achieved in time or not, what the organisation expects from them and how they can attain mutual
• Encouraging expression of employee opinion – imparts a sense of belongingness among employees and strengthens the employee-employer relationship. Employees feel they are an asset to the organisation, their voice and opinions are heard and

From the study we may conclude that the employees with higher level of job satisfaction which includes salary, work environment and growth opportunities were more productive at work, were able to complete their work on time and also were motivated to give opinions for organisation’s development and improve their own performance. The organisation exhibit to foster healthy employ relation by giving ample growth opportunities, work related training, regular salary hike and healthy work environment.

5.2                          RECOMMENDATIONS

Maintaining harmonious relations is very important for the survival, prosperity and growth of the organization. Good and healthy employee relations leads to better organizational performance. The study found that small organizations are aware of the benefits of maintaining good employee relations and correct remedial actions to minimize poor employee relations in the organization. Similarly, the study found that there is a positive significant relationship between employee relations and employee performance as well as between employee relations and organizational performance. Moreover, the study found that the use unfair labour practices is a major cause of poor employee relations in the Afribank. Therefore the study recommends a need for small organizations to start implementing fair labour practices throughout their operations and do away with unfair labour practices. Furthermore, the study recommends that small organizations in Tanzania should focus more on building effective and sustainable employee relations that will ensure their growth and survival.