THE EFFECT OF EMPLOYEE RELATIONS ON EMPLOYEE PRODUCTIVITY IN AN ORGANIZATION

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.

 

 

TABLE OF CONTENT

Title page

Approval page

Dedication

Acknowledgment

Abstract

Table of content

CHAPETR ONE

1.0   INTRODUCTION 

1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the study

1.4        Research Hypotheses

1.5        Significance of the study

1.6        Scope and limitation of the study

1.7       Definition of terms

1.8       Organization of the study

CHAPETR TWO

2.0   LITERATURE REVIEW

CHAPETR THREE

3.0        Research methodology

3.1    sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5        Validation of research instrument

3.6        Method of data analysis

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS AND INTERPRETATION

4.1 Introductions

4.2 Data analysis

CHAPTER FIVE

5.1 Introduction

5.2 Summary

5.3 Conclusion

5.4 Recommendation

Appendix

 

 

 

 

 

 

 

 

 

CHAPTER ONE

INTRODUCTION

• Background of 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 Worldwide Human 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. Employees are among an organization’s most important resources and coined as most valuable assets. The nature and amount of work performed by them have a direct impact on the productivity of an organization. So maintaining healthy employee relations in an organization is a pre-requisite for any organization in order to achieve growth and success. According to CIPD (Chartered Institute of Personnel & Development) Employee relations is a broad term that incorporates many issues from collective bargaining, negotiations, employment legislation to more recent considerations such as work-life balance, equal opportunities and managing diversity. It comprises of the practices or initiatives for ensuring that Employees are happy and are productive. Employee Relations offers assistance in a variety of ways including employee recognition, policy development and interpretation, and all types of problem solving and dispute resolution. It involves handling the pay–work bargain, dealing with employment practices, terms and conditions of employment, issues arising from employment, providing employees with a voice and communicating with employees. Employee relations is concerned with maintaining employee-employer relation, which contributes to satisfactory productivity, increase in employee morale and motivation. Today, Employee Relations is a much broader concept. It involves maintaining a work environment that satisfies the needs of individual employees and management. Improving employee morale, building company culture, conveying expectations. An effective employee relation involves creating and cultivating a motivated and productive workforce. It’s necessary to keep the dynamics of employer-employee relationship in mind. It covers all the relations between employers and employees in industry. Employee relations also includes giving scope for employee participation in management decisions, communications, policies for improving cooperation and control of grievances and minimization of conflicts. People are generally motivated from within, but HR and organization focus should be on what they can do to help foster the type of environment where employees thrive to give their best performance. Motivated employees have higher level of work engagement, reduced turnover and better performance as compared to disengaged employees. Since the organization success is directly linked with the performance of its employees the companies maintaining strong employee relations initiatives will benefit because their workforce is highly motivated to put their best efforts. Hence managing these relationships becomes important for business success, as strong and healthy relationships can lead to greater employee happiness and even increased productivity

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.

 

• STATEMENT OF THE PROBLEM

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 behavior and by postmodernism.

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 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.
   • RESEARCH HYPOTHESES

For the successful completion of the study, the following research hypotheses were formulated by the researcher;

H₀: employee relations practices, does not have any effect on the productivity of an organization

H₁: employee relations practices, not have an effect on the productivity of an organization

H₀²: there is no significant relationship between employee-employer relationship and organizational performance

H₂: there is a significant relationship between employees-employer relationship and organizational performance

1.5 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.

1.6 SCOPE AND LIMITATION OF THE STUDY

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. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
2. b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
3. c) Organizational privacy: Limited Access to the management team makes it difficult to get all the necessary and required information concerning the activities.

1.7 DEFINITION OF TERMS

EMPLOYEE: An individual who works part-time or full-time under a contract of employment, whether oral or written, express or implied, and has recognized rights and duties. Also called worker. … I was an employee at a prestigious bank, so I had to dress nice everyday and be on my best behavior

RELATIONSHIP: The way in which two or more people or things are connected, or the state of being connected.

ORGANIZATION: An organized group of people with a particular purpose, such as a business or government department

PERFORMANCE: A performance, in the performing arts, generally comprises an event in which a performer or group of performers present one or more works of art to an audience. Usually the performers participate in rehearsals beforehand

1.8 ORGANIZATION OF THE STUDY

This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study.

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