ABSTRACT
The research was carried out to ascertain the Impact of Employee Participation on Company Performance; A study of Access Bank Nigeria Plc, Enugu. Four departments in the Bank were used for the study, while a sample size of 36 respondents participated in the research study. The reason for growing interest in Employee Participation and its effects were discussed. Also the different categories of Employee Participation were examined to find out their peculiarities and what can be done to improve their participation and their outcome. Furthermore, the issue of Employee Participation and welfare were put into consideration, with emphasis on the right policies to be implemented in order to get the best out of the employees. However, the analysis of the data was based on the research questions answered by the respondents. The questionnaire was analysed using simple percentage distribution formula. The given level of significance was at 95%. The hypothesis was analysed using chi-square and correlation. Finally, the researcher discovered that the combination of participation and welfare measures (such as equal opportunities and family – friendly policies) help to enhance both Organisational performance and the quality of working life. Policy support should focus on union recognition and activity within a human rights framework, since this can positively influence employees’ behavior towards Organisational goals and employer behavior towards their employees.
CHAPTER ONE INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The economy has witnessed a lot of changes in the recent years. We have the emergency of Information Technology, Privatization, and growing global competition for the provision of goods and services. Continuous change in product and service markets, combined with tightening quality demands, require employers to seek more efficient and flexible means of production. They seek the often contradictory elements of employee commitment and disposability, often disguised by terms such as employability and ‘new employment contract’.
Partly in response to these economic demands and partly as a consequence of other societal shifts, there have been corresponding changes in the composition and activities of the workforce. Most obvious is that the labour force is becoming increasingly qualified, as older non – qualified staff, give way to growing ranks of university and college – educated newcomers in the labour market. Also apparent, is the rise in the proportion of
women in the paid labour market, and associated with this, growing emphasis on part – time and flexible forms of labour. A more diverse, potentially less secure workforce, also raises questions of equality of treatment and rights at work, with the danger that minority or vulnerable groups will lack the resources to participate effectively in work place affairs, thereby reinforcing their peripheral states.
For employers of scarce and highly – qualified labour, commitment
rather than control has ostensibly become the key objective of people management. Under these changing conditions, it is not surprising that concern by employers, policymakers, and employees themselves, in safeguarding and promoting interests has been reflected in different approaches to employee participation. Governments must balance the needs of a competitive economy with welfare of their citizens. Employers seek production efficiency, and recognize that the means to this is increasingly locked in the heads of the people they employ. Well – qualified employees, seek elusive objectives of job satisfaction, stability, and life – enhancing employment, while a more pressing priority for less advantaged and more vulnerable employees may simply be to gain secure employment and reasonable treatment from their employers. The rise of
global institutions presents other problems for workers, as corporate decisions become more distant from the staff that they employ: a decision made to close a plant in one country may have been made many thousands of miles away, with little opportunity for indigenous employees to combat, or even question decisions which dramatically affect their lives.
Detachment from the company may also represent a problem for
growing number of home workers, and for those whose jobs demand high levels of mobility.
Access Bank Nigeria Plc, where the researcher is focusing this study on, places a high premium on the development of its manpower, and consults with employees, on matters affecting the performance of the group. The group draws extensively on training programs around the world. Training courses are offered to employees both locally and overseas. This is in order to get the best out of the employees.
The rationale for introducing, ‘The Impact of Employee Participation on Company Performance’ is based upon different economic, social and political assumptions.
1.2 STATEMENT OF THE PROBLEM:
Employee participation can be seen as a “contested terrain”. Not all literature agrees on the universal positive effects of participation. Some suggests that participation may have no effect or even negative effects on performance. However, it is difficult to discern a definitive pattern. In Access Bank, the management holds the interest of the team above those of the individual, while showing mutual respect for all employees and sharing information throughout their organization. They develop further, their leading role in talent acquisition and talent development. They also eliminate the negative performance contributions of their banking subsidiaries through their “One Bank strategy’’. Access Bank encourages participation of employees in arriving at decisions in respect of matters affecting the group and employee interests, with a view to making inputs to decisions thereon.
The Bank places a high premium on the development of its
manpower. The problem is to find out the impact of these on
Company (Access Bank) performance.
1.3 OBJECTIVES OF THE STUDY:
The specific objectives of this research include:-
(i) To ascertain if the effects of participation schemes vary with the environment into which they are introduced.
(ii)To determine the degree of influence granted to employees under participation measures.
(iii) To find out if the combination of financial and work – related participatory measures can have a positive impact on company performance.
(iv) To assess the assumptions, that participation measures
affect all employees identically, regardless of gender, race, age, and contractual status.
(v)To investigate in what circumstance, employees’ voices remain muted in terms of work – life balance and family – friendly working.
(vi) To present that policy support, should focus on union recognition and activity within a human rights frame work, since this can positively influence employee’s behaviour towards Organizational goals.
1.4. FORMULATION OF HYPOTHESIS
(i) A combination of financial and work – related participatory measures can have a positive impact on Company performance.
(ii) A combination of financial and work – related participatory measures does not have a positive impact on Company performance.
(iii) Links between participation and attitude change appear
to depend on the degree of influence granted to employees under participation measures.
(iv) Links between participation and attitude change does not depend on the degree of influence granted to employees under participation measures.
(v) A combination of participation and welfare measures
(such as equal opportunities and family friendly policies) appears to enhance Organizational performance and the quality of working life.
(vi) A combination of participation and welfare measures (such as equal opportunities and family friendly policies) does not enhance Organizational performance and the quality of working life.
1.5 SIGNIFICANCE OF THE STUDY
There are numerous different rationales for introducing employee participation, often competing. Poutsma (2001) identified four
dominant approaches embracing; humanistic, power – sharing, organizational efficiency and redistribution of results rationales. These can be subsumed under three main operational rationales, namely; economic, social and governmental. Each rationale derives from different conceptual bases, such that predicted outcomes of participative initiatives can vary accordingly. Each position will be considered in turn.
(i) Economic Rationale:- Changes in employees’ attitudes
and behavior are achieved through financial participation, by offering employees a stake in the firm. Employees’ association with management values and goals is thereby increased, and they are more motivated and committed to achieving those goals.
(ii) Social Rationale:- By catering for employees’ social needs, through improved job security and satisfaction and quality of working life, higher performance is achieved. Alternatively, satisfying social needs can be treated as an end in itself.
(iii) Governmental Rationale:- Current Nigeria policy is to
improve national economic efficiency, while also improving the experience of work for employees.
This study which is limited to Access Bank Nigeria Plc exposes the impact which the employees makes on company performance based on the above rationales. Application of these rationales will go a long way in improving the performance of companies in private and public sectors of the economy.
1.6. SCOPE OF THE STUDY
This study covers the Impact of Employee participation on
Company performance with reference to Access Bank Nigeria Plc.
1.7. LIMITATIONS OF THE STUDY
The limitations encountered in this study include respondents’ bias experienced when they were requested to fill the questionnaire. Most were unwilling to co-operate with the researcher because they felt they had limited time, compared to their volume of work. There were also financial and time imposed constraints in gathering the necessary data to study.
1.8 DEFINITION OF TERMS
(i) Surveys: A survey involves the collection of information, usually by interviews or questionnaires from a sample of the target population.
(ii) Collective Bargaining: Collective bargaining takes place between management and trade unions at both national and local (plant) level. However, the issues covered by collective bargaining tend to be narrow, concerning wages and other basic issues such as hours of work and holidays.
(iii) Employee Empowerment: Empowerment is seen as providing an extension to employee authority by allowing workers to take decisions that were previously the preserve of their line managers and to assume responsibility for the consequences. This occurs within an organizational culture of initiative, team work and flexibility (Hyman and Cunningham, 1998).
(iv) Employee Involvement:- Employee involvement is a term associated with schemes that involve low – level, individualized participation, with little or no input into corporate or high – level decision making.
(v) Employee Share Ownership Plans (ESOPS):- An ESOP is a scheme designed to allow all employees to become shareholders in their company. ESOPs can offer majority shareholdings to employees. Examination from income tax is available if shares are retained for a minimum of five years in trust.
(vi) Joint Consultation Committees (JCCs):- A process whereby management seeks the view of employees before making a firm decision. In practice, it is rare for a JCC to have veto power over managerial decisions. Two specific types of JCCs are works councils and joint working parties.
(vii) Suggestion Schemes: – Suggestion schemes are a
procedure for submitting and evaluating ideas. Suggestion boxes, suggestion committees, or individual management can all be used as the transmission agency for ideas.
(viii) Worker Co-operatives:- Co-operatives are businesses owned and controlled by the people working in them. Co- operatives are democratic organizations, administered by people elected or appointed in a manner agreed by the
members and accountable to them. Members enjoy equal voting rights (one member, one vote) and participation in decisions affecting their enterprises.
(ix) Work Councils: – Works councils potentially involve
employee representatives in strategic decision making. They may also serve as a channel for information disclosure and consultation.
This material content is developed to serve as a GUIDE for students to conduct academic research
THE IMPACT OF EMPLOYEE PARTICIPATION ON COMPANY PERFORMANCE (A STUDY OF ACCESS BANK NIGERIA PLC ENUGU)
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