Collective Bargaining And Organisational Effectiveness In Nigerian State Owned Enterprises (A Case Study Of Lagos Printing Corporation) 

Project and Seminar Material for Industrial Relations and Personnel Management

Collective Bargaining And Organisational Effectiveness In Nigerian State Owned Enterprises (A Case Study Of Lagos Printing Corporation)


This research was an attempt to examine “Collective Bargaining and organizational Effectiveness in Nigeria state owned Enterprises” a case study of Lagos printing corporation. However, the objectives of this study amongst others includes, examining Collective Bargaining as a process of achieving industrial peace when considered along the line of it’s needs and penetration into management, extent of workers participation, industrial discount, functions of bargainers, power of bargainers, values of bargainers and third party involvement.

The methodology used involved collections of data through primary and secondary sources. While, Eighty-three (83) structured questionnaires were administered on members of Lagos printing corporation. But only sixty-six (66) responses were returned. data generated were analyzed through percentages and the use of chi-square statistical method.

The findings of the study also look at the organizational effectiveness from the point of view of it’s sets purpose and the extent of which the purpose has been achieved. This will encompass the group of people who make use of the organization’s resources through the process of planning, organizing, controlling, co-ordinating and directing to attain the states organizational goals.

Also, information management departments should be created in all branches so as to improve efficiency and the department so created should not be made to be an affiliate of any other department.

Table Of Contents

Preliminary Page(s)

  • Title Page
  • Declaration
  • Approval
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Content

Chapter One:


  • 1.1 Background of the Study
  • 1.2 Statement of Problems
  • 1.3 Research Question
  • 1.4 Statement of Hypotheses
  • 1.5 Purpose of Study
  • 1.6 Relevant of the Study
  • 1.7 Scope and Limitations of Study
  • 1.8 Definition of Terms

Chapter Two:

Review Of Related Literature

  • 2.1 Historical Background
  • 2.2 Joint Consultation
  • 2.3 Organizational Effectiveness
  • 2.4 State Owned Enterprises
  • 2.5 Relevant Theories on collective Bargaining
  • 2.6 Management Concepts and Organizational Effectiveness
  • 2.7 Management Role and organizational Strategies
  • 2.8 Management by Objectives
  • 2.9 Managerial Control
  • 2.10 Areas of Control
  • 2.11 Element of a Control Process

Chapter Three:

Research Methodology

  • 3.1 Introduction
  • 3.2 Research Design
  • 3.3 Source of Data
  • 3.4 Population of the Study
  • 3.5 Sample Size and Sampling Techniques
  • 3.6 Restatement of Research Questions
  • 3.7 Restatement of Research Hypotheses
  • 3.8 Validity of Research Instrument
  • 3.9 Reliability of Data Collected
  • 3.10 Method of Data Analysis

Chapter Four:

Data Presentation and Analysis

  • 4.1 Introduction
  • 4.2 Presentation of Data Interpretations
  • 4.3 Research Findings
  • 4.4 Testing of Hypotheses

Chapter Five:

Summary Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendations
  • Bibliography
  • Appendix

Chapter One


1.1 Background Of The Study

Collective bargaining is a process in which the employer Or group of employers and workers representatives or workers Union arrives at or attempt to arrive at a collective agreement.

Impact of collective bargaining can also be defined as a Negotiation of working conditions and terms of employment Between employers, a group of employers or one or more Employers’ organization on the other with a view to reaching Agreement ( Ilo, 1996, pg 656).

It’s also refers to as the negotiation between employer parties and Trade unions in order to determine terms and conditions of work and all other aspects and issues arising from the employment relationship ( Vettoris M-S 2005).

This is done by direct negotiation by the player’s management, Union representatives and government. Researching agreement is perhaps what makes negotiation equal to Bargaining. Otherwise when negotiations go on endlessly without Concrete agreement no bargaining could be said to have been Struck ( Shola .F. 2007 pg 167).

The issues involved in impact of collective bargaining includes, ensuring the presence and maintenance of Peaceful industrial atmosphere which is a necessary pre-requisite For the continued growth and process of enterprise, it provides a System of establishing conditions of employment, it provide means by which workers are represented in decisions affecting their interest, it also represents the democratic or participative Ingredient necessary to any good work setting.

The Variances in the aspiration of management and desires of Workers which results in conflict are the rescue of two parties attempting to maximize the benefit desirables from each other. While the workers want the management that would recognize it Contribution to the organization. It tries as much as possible to Concede the seniority and leadership of management. This is Because the workers perception of their position is quite different from the way management sees them. Where management succeeds in recognizing these expectation there is generally some harmonious relationship but if otherwise, workers reaction is naturally negative because they feel disappointed and demonstrated.

Effects of collective bargaining has been misconstrued by some managers with the result that very low attention is given to it. Such managers believe that the industrial unions are only Interested in discussing proposals and demand put forward by the union rather than contributing to the development and growth of The organization.

This misconception portray the unions as trouble makes confussionist, desrupters of peace and those who rejoice by creating a situation of Anarchy: Leading to disrupt, hatred, bitterness, disrespect and antipathy.

Following the wrong notion of industrial relations, some industrial relation personnel are usually not objective in their assessment of proposals made to the management by industrial unions. As a result, industrial unrest might be kindled by irresponsible or careless management utterances or over-zealous interpretation of rules.

From the foregoing, impact of collective bargaining is expected to Have a reciprocal effect resulting from the collective agreement should normally be added incentives for the individuals and every Strata of the work group in achieving maximum efficiency for the Organization. For an organization to be effective, the objectives of employee and that of organization must not conflict. Once this is achieved it would not be difficult to put in place whatever measure that could lead to organizational effectiveness.

A good organization should have well segmented system of works that allows for direction and creativity. Checks methods should also be introduced in order to ensure that performance is in consonance with the organizational Objectives.

This project therefore examines the effect of collective bargaining and organizational effectiveness.

1.2 Statement Of Problems

These problems of effect of collective bargaining on organization effectiveness are issues that bothered all actors in the collective bargaining process management union and government over the years.

This study project trend the effect of collective bargaining on organizational effectiveness. Arising from the foregoing are the problems as follows:

  1. Management resentment to union activities
  2. Under-utilization of Technocrats.
  3. Union participation in company’s decision making is either not allowed or very low
  4. Labor turnover within the rank and file of organization due to low morale.
  5. Main job attitudes.

1.3 Research Questions

To be able to clearly evaluate the effect of impact of collective bargaining on organizational effectiveness, the following questions are imperative:

  1. What are the actions that could be taken in order to incorporate in organizational policies union participation in decision making?
  2. In what ways can a change of attitude by workers union oversee to management control and conflict handling methods?
  3. To what extent have inadequate provision of equipment, incentiveness and lack of clear objectives enhance labour turnover?
  4. In What ways can theory which stipulates that people are last, unambitious, prefer to be directed and avoid responsibility be said to be true of job attitude of workers?
  5. Does the level of technology in development of new products process material and services make for adequate utilization of technocratic?

1.4 Statement Of Hypotheses

Hypothesis One
  • HO; There is no significant relationship between impacts of collective bargaining on organizational effectiveness.
  • H1; There is significant relationship between impact of collective bargaining on organizational effectiveness .
Hypothesis Two
  • Ho; There is no significant relationship between impact of collective bargaining and performance appraisal.
  • H1; There is significant relationship between impact of collective bargaining and performance appraisal.

1.5 Purpose Of Study

The purpose of this study is to make known that any life Endeavor that is not purposive of achieving good result is a wasted effort. Hence, this study is great towards examining the impact of collective bargaining as a process of achieving industrial peace when considered along the line of it’s needs and penetrations into management extent of worker participation, industrial discontent, functions of bargainers, power of bargainers, Values of bargaining and third party involvement.

On the other hand, this study looks into the organizational effectiveness from the point of view of it’s set purpose and extent of which the purpose has been achieved. This will encompass the group of people who make use of organizations resources through the process of planning, organizing, controlling, co-ordinating and directing to attain the stated organizational goals.

1.6 Relevant Of The Study

The study is relevant because it will expose the researcher to a wide array of relevant literatures. When view from the point of strategic role played by collective bargaining in socio-economic life of workers and industrial well-beign.

As a study focuses on state owned enterprises which rendered essential services to the nation, it’s effectiveness have severally been querried because it is believed that they lack order and therefore cannot be effective.

A meaningful analysis of issues involved in this research will bring about reasonable contribution towards improving people’s understanding and bringing to their knowledge the prevailing situation in the state owned enterprises.

1.7 Scope And Limitations Of Study

To be able to make a meaningful study of the subject matter, the study should cover workers participation in management, structure and procedure of bargaining, work of bargainers industrial discontent, Value of bargaining power of bargaining and joint consultation. Others will include issues that would make for effectiveness in organizations Viz: structure of the organization, leadership, motivation, policy of the organization, co-ordination, political interference, stability of government and state of economy.

Our research must have identified strategies levels, we call them power move (which brings reluctant bargainer to realize that they must negotiate).

Process move ( which a bargainer use to build receptively where a direct or aggressive approach might encounter resistance). Appreciate move ( this foster open communication so that differences in need and views can come to the surface without personal discord).

1.8 Definition Of Terms

Collective Bargaining:

This is the process of arriving or attempting to arrive at a collective agreement.

Unions Representatives:

Unions officials (Executives) duly elected to run the affairs of the union.

Collective Agreement:

An agreement reached at the end of collective bargaining show the consensus of both management and union.


Management, union and Government.

Industrial Peace:

Cordial Relationship between union and management.


Disagreement or clash about the allocation of scarce resources, goals, values etc.

Industrial Unions:

Unions within organization e.g PENGASSAN Within the oil industry.


Strong and decided dislike.

Work Group:

Two or more people who interact within and influence each other towards a common purpose.

Segment System:

A system segmented along product market or geographical lines.


The process of directing and influencing the task related activities of group members.

State owned Enterprises:

Establishments of Government at Federal, State and Local Government Levels to provide essential services e.g. NEPA, Water Boards. Etc.

Organizational Effectiveness:

The measure of how well organizations do their jobs.

Organizational Goals:

Purpose for which organizations are set up.

Organizational Resources:

Human, money and materials.

Industrial Discontent:

Unhappiness among workers about unfavorable working conditions.

Joint Consultation:

A meeting of management and union at which staff welfare is discussed.

Chapter Five

Summary, Conclusion And Recommendations

5.1. Summary

Collective bargaining and organizational effectiveness in Nigerian State, Owned Enterprises are tissues that have drawn the attention, of both the public and private sectors of the economy.

The players in industrial relations are particularly interested, the workers, employers and the government. As a result, government made pronouncements in the Budget Speeches of 1990 and 1991as follows: “One of the machineries for ensuring industrial peace and harmony while working towards and equitable society is the collective -bargaining process in both the, public and private sectors under conditions of deregulated economy”. (1990).

“In the public sector, government accepts that the time has comefor collective bargaining to take firm root and for wage fixing to reflect varieties and differences in the ability to pay as between the Federal, Government, State’ Government, Local Government and the Parastatals”.1991).

This study also examined the factors that make for organizational effectiveness in State Owned Enterprises.

Out of the 83 questionnaires administered, 66 responded.

The data gathered revealed that the relationship between Management and union is cordial and that Management responds favorable to union activities, Also, to some extent, Management takes Union into confidence in its activities out of the 66 respondents, 37, that is, 50% do not support that union Officials should be incorporated t into the main stream of management. If, however, ,they are incorporated, they are very likely to make valuable contributions.

On the issue of communication as the basis for industrial peace and harmony, the consensus was that, communication creates better relationship between union and management as 97% of the respondents submitted in favour of communication.

Therefore, if good communication system is sustained, the level of compromise between union and management will appreciate with result that both parties will complement each other’s efforts.

When there is stalemate between Management and Union, dialogue has been identified as the most feasible means of achieving optimal solution.

It is generally believed that government workers are inefficient but our analyses have shown that lack of or inadequate provision of equipment, lack of incentives, inadequate allocation of human and material resources are the reasons why tasks are not accomplished at target resulting- in low level of performance.

5.2. Conclusions

From the data gathered one can safely conclude that the relationship between Union and Management is cordial but that the idea of involving union officials in management activities could result in confusion and absence of confidentiality in management decisions.

Most problems in organization have been caused by inadequate flow of information between management and union. It has been observed that gap In communication creates room for uncertainty such that members of the organ are left to speculate on issues affecting them. If care is not taken, an issue that could have been resolved through simply passing information could consult in industrial unrest. It is necessary that a good communication system is put in place.

From the information available, inefficiency, nonchalance, adequate provision of equipment, poor allocation of human and materials resources is the order of the day in government establishments.

5.3 Recommendations

Living critically examined Collective, Bargaining organizational. Effectiveness in Nigerian State Owned Enterprises, using Lagos Printing Corporation as a, case study, recommended as follows:

That instead of incorporating union officials into the main team of management, efforts should be made to createsa forum constant dialogue with the union officials or increase the sequence of Joint Consultative Meetings so that workers are not it in not in doubt about events in the organization. Suggestion, boxes could also be put in strategic locations through which management could censor the feelings and opinions of workers address such issues as appropriate.

It is also recommended that Management should create a good support with union officials so that the union can appreciate the problems of Management and vice versa.

Managers should be able to motivate workers to accomplish organizational objectives by providing them with the necessary equipment while at the same time creating a climate for the satisfaction of individual needs.

Managers must possess human conceptual specialized and general skills in order to curb the level of indolence so that tasks could be accomplished as and when due.

If organizational objectives are to be achieved, the “man-know¬an” syndrome should be far-removed when allocating personnel functions. Deployment should be purely based on the ability to perform coupled with the relevant qualifications.

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