ACHIEVING ORGANISATIONAL EFFECTIVENESS THROUGH EFFECTIVE INDUSTRIAL RELATIONS

ABSTRACT

This study focuses on achieving organizational effectiveness through effective  industrial relations. The objectives of the study are: to identify the industrial relations process of the Nigerian public sector; to determine how to improve on the industrial relation’s process of the public sector; to identify the benefits derived from effective industrial relations; and to identify the strategies  that could be used to manage  industrial  relation’s  conflicts.  The research methodology is descriptive; data were generated through primary and secondary sources. The study approach is based on research questions which have influenced the data generated and pattern of descriptive analysis presented. The researcher analyzed the data collected based on the responses from the distributed questionnaire. The chi-square test and T-test was used to test the hypotheses. The findings from this study revealed that industrial relations process of the Nigerian public sector includes collective bargaining, negotiations, mediation   and   arbitration;   decentralizing   collective   bargaining   and   practicing   true federalism will improve industrial relations process of the public sector; industrial harmony and   organizational effectiveness are attributed to effective industrial relations; and collaboration and compromise can be used to manage industrial relations conflicts.

Based  on  the  findings,  the  study  recommends   that  the  federal  legislators   should institutionalize a decentralized collective bargaining as a bid to solving the conflicts arising from the national minimum wage; efforts should be made by federal legislators to compel the government to regularly publish its accounts publicly; more industrial courts should be established; the labour laws in Nigeria should be reviewed and updated.

CHAPTER ONE INTRODUCTION

1.1       BACKGROUND OF THE STUDY

Industrial relations is a multidisciplinary  field that studies the employment  relationship. Industrial  relations  is  increasingly  being  called  employment  relations  because  of  the importance  of  non-industrial  employment  relationships.   Many  outsiders  also  equate industrial  relations  to labour relations  and believe  that  industrial  relations  only studies unionized employment situations, but this is an oversimplification (Ackers, Peter, 2002).

Industrial  relations  has  its roots  in the  industrial  revolution  which created  the  modern employment  relationship  by  spawning  free  labour  markets  and  large-scale  industrial organizations  with thousands of wage workers.  As society  wrestled  with these massive economic  and social changes,  labour problems  arose.  Low wages,  long working hours, monotonous and dangerous work, and abusive supervisory practices led to high employee turnover,  violent  strikes  and  the  threat  of  social  instability.  Intellectually,  industrial

relations was formed at the end of the 19th  century as a middle ground between classical

economics and Marxism, with Sidney Webb and Beatrice Webb’s Industrial  Democracy (1897)  being  the  key  intellectual  work.  Industrial  relations  thus  rejected  the  classical economics (www.wikipedia.org).

According to Englama (2001), industrial relations refers to the combination of interactions that take place between the employee and employer in an organization. He believed that the fundamental problem in all organization, whether business, educational, local or national, was  in  developing  and  maintaining  a  dynamic  and   harmonious  relationship  in  the workplace. To achieve this, group dynamics, policy making by consultation, diffusion of authority, delegation, vertical and horizontal communication have to be ushered in.

In more recent time industrial relations have been influenced by other social sciences such as organizational psychology and behaviour. Traditionally, economics and law  were two main  influences  on  industrial  relations,  which  led  to  a  concentration  on  macro  level industrials  relations,  and  therefore  on  unions,  government  and  collective  bargaining. Paradoxically, industrial relations, though dealing with “relation” has until recently largely ignored the social science sciences relevant to behaviour and human relations. While labour

problems are the result of imperfections in the employment relationship, industrial relations should  be seen as the theories  and  methods  which  have been developed  over  time  to address and correct these problems, in both public and private sector of the economy.

The essence of good industrial relation lies in the bringing up of good labour  relations which gives a forum to understand each other (employer, employee) properly. Creates co- operative thinking and working to achieve the goal of the organization. A good industrial relation increases the morale of employees and encourages them to  give their maximum effort.  Each  thinks  of their  mutual  interest  which  paves  way  for  introduction  of new methods, developments and leading to adoption of modern technology, thereby increasing the  industry’s  organizational  effectiveness  in  the  long  run.  Good  industrial  relations increases production, improves quality of work and product and efficiency of workers are increased.

Organizational effectiveness is the measures of how successful organizations achieve their missions through their core strategies. Organizational effectiveness studies are concerned with the unique capabilities  that organizations  develop to assure that  success (McCann,

2004). Industrial relations and organizational effectiveness share a common feature, which is that they are both internalized within the organization. The resulting correlation between the two is that, a good industrial relations  system would  invariably breed  and improve organizational  effectiveness,  thereby  making  organizational  effectiveness  dependent  on good industrial relations. Thus, the study focuses on achieving organizational effectiveness through sound industrial relations.

1.2       STATEMENT OF THE PROBLEM

One major reason for the incessant industrial   actions in Nigeria today is due to lack of good salary review policy that would be in line with changes  in some  macroeconomic factors such as prices of goods and services, and inflation. Prices of  goods and services continue to increase everyday while the review of public sector  employee’s salaries are only considered years after negotiations and industrial actions. An application of effective industrial relation practices would ensure an established way of reviewing workers salaries in line with changes in the economy.

Over  the  years,  Nigeria  has  witnessed  protests  and  industrial  actions  by  the  public employees  through  their  various  labour unions  over  the non-implementation  of agreed policies.  Such incidents  could  be avoided  if the government  sincerely  applies effective industrial relation practices.

Economic   reforms   and   the   quest   for   organizational   effectiveness   in   the   public administration,  calls for collective bargaining of a good compensation plan/policy which includes  better  working  conditions  and  motivational  incentives  in  the public  sector  of Nigeria. Efforts to achieve this had led to protracted industrial actions and low morale of employees in the public sector today.

Another   issue   affecting   the   organizational   effectiveness   of   the   public   sector   is governments’  continuous  insensitivity  and  insincerity  to  policies  directly  or  indirectly affecting  the public employees  and its lackadaisical  approach  towards  addressing  these issues. Thus, the study focuses on achieving organizational effectiveness through effective industrial relations.

1.3       OBJECTIVES OF THE STUDY

The specific objectives of the study include the following:

(1)       To identify the industrial relations process of the Nigerian public sector.

(2)       To determine  how to improve  on the industrial  relation’s  process  of the  public sector.

(3)       To identity the benefits derived from effective industrial relations.

(4)       To identify the strategies that could be used to manage industrial relations conflicts.

1.4       RESEARCH QUESTIONS

The following questions will be addressed in this study;

(1)       What are the industrial relations process of the Nigerian public sector?

(2)       How can the industrial relation’s process of the Nigerian public sector be improved upon?

(3)       What are the benefits obtainable from effective industrial relations?

(4)       What are the strategies that could be used to manage industrial relation’s conflicts?

1.5       RESEARCH HYPOTHESES

The following hypotheses are put forward for this study:

1.   Ho:      Industrial relations process in the Nigerian public sector does not include collective bargaining, negotiations,   mediation and arbitration.

Hi:        Industrial relations process in the Nigerian public sector includes collective bargaining, negotiations, mediation and arbitration.

2.   Ho:      Decentralizing collective bargaining and practicing true Federalism will not improve industrial relations process in the public sector.

Hi:       Decentralizing  collective  bargaining  and  practicing  true  Federalism  will

improve industrial relations process in the public sector.

3.	Ho:	Industrial harmony and organizations effectiveness are not attributed to   effective industrial relations.
	Hi:	Industrial   harmony  and   organizational   effectiveness   are  attributed   to   effective industrial relations.

4.		Ho:      Collaboration and compromise cannot be used to   manage industrial   relations conflicts.
	Hi:	Collaboration and compromise can be used to manage industrial  relations   conflicts.

1.6       SCOPE OF THE STUDY

This study will examine  the major issues affecting  labour relations with regards to  the Nigerian public sector, with focus on the public sector in Enugu State. The research would cover  topics  of  interests  such  as  definitions  and  theoretical  perspectives  of  industrial relations, elements and importance of a sound industrial relations system, trade unions and their functions, principles of collective bargaining and decentralizing collective bargaining in the public sector. The study would also look at the role of the government in industrial relations dispute resolution and the labour reforms in Nigeria.

1.7       LIMITATIONS OF THE STUDY

This study has the following constraints.

Time

The researcher  does not have sufficient time to carry out this study. There  was constraint of time in going to places where data and information relevant  to the study could be obtained.

Finance

Such an empirical research demands much money for its successful  completion. Much money was required to cover transportation costs and materials used for the study.

Attitude of the Respondents

Some of the respondents were unwilling to corporate with the researcher because they felt they would not benefit from the study and equally have the mindset that the secret of the organization will be exposed.

1.8       SIGNIFICANCE OF THE STUDY

The study is significant to the government as it formulates labour reforms and policies that would be widely accepted and would be of international standards in the country. It would also enable the government promote industrial harmony between the  government and its employees. The study will also be significant to the various trade unions in the country as it would  educate  its  members  and  leaders  on  the  principles  and  practices  of  collective bargaining in the public sector.

To a large extent, the study will be of immense benefit to all stakeholders in the  public sector, as it would suggest ways on how to address or avoid industrial conflicts.

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