Employee Relations And Its Effects On Employee Productivity

Project and Seminar Material for Human Resource Management (HRM)

Employee Relations And Its Effects On Employee Productivity


This study delves into the dynamics of employee relations of the employees of Mai Gida Factory considering competition in the table water industry and the fact that the retention of quality employees plays a key role in helping organisations to achieve their objectives. The main objective of the study is to establish the role of employee relations in enhancing employee productivity. To achieve the objectives of the study, twenty (20) workers were selected. A lot of challenges were identified by the respondents. Respondents mentioned factors such as inadequate remuneration, ineffective communication or poor flow of information, nepotism, untimely appraisal system, lack of career path and growth, lack of clear cut policies as well as inexperience. From the study it was revealed that employees would be more committed to Mai Gida Factory when they are given rewards that are commensurate with responsibility and skills.

Chapter One


1.1 Background to the Study

Organizations cannot perform better and achieve its objectives if there is a bad relationship between employees and employer, therefore it is very important for managers to create and maintain good relationship with their employees. Effective employee and management relationship is vital to the workplace whether at the time of recruitment, during an employees’ tenure or at the time of separation (Rose, 2008). Good employer-employee relations are essential to the organization because it inspires employees to work better and produce more results (Burns, 2012). The application of human relations in managing human resource is critical in today’s business (Christen, Iyer & Soberman, 2006). Factors such as job satisfaction is achieved when there is a great working relationship between labour and management (Boyle, 2006).

Yes, organizations can have competent, qualified and motivated employees but if there is no peace and harmony at the workplace their performance will be in danger. Because the relationship between the employer and the employee is very crucial, employers need to pay attention to this relationship if they want their businesses to grow and succeed (Bhattacharya, 2008) and that firms should actively seek good employee relations whether or not they are bound by union contracts (Pearce and Robinson (2009). Organizations need employees who can peacefully work together towards the achievement of the set objectives and goals, and this can only be achieved if there is a good employee relations in the organization as the objectives of employee relationship is to achieve harmonious employee relations and minimize conflict practices in employment (Torrington & Hall, 1998).

Employee relationship management has many documented positive effect in organizations such as strengthening corporate communication and culture, fostering about company products, services and customer providing real-time access to company training, targeting information to an employee.

1.1.2 Profile of the Organization

For the purpose of this study, the Mai Gida Water Factory has been selected as a case study to illustrate the effects of employee relations on the productivity of a firm. The factory is located at Wuntin Dada, Jos road, Bauchi state.

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. Small organizations in Tanzania 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 Purpose of the study

The main purpose of this study is to analyse the effect of employee relations on employee productivity. The specific aims are:

  1. To determine if employee relations affects employee productivity
  2. To determine if employee relations improves productivity
  3. To suggest ways of improving employee relations.

1.4 Research Questions

The following questions were used to achieve the above objectives:

  1. What are the various employee relations practices in your organization, and how do they affect productivity?
  2. What challenges do you face in your organization?
  3. In what ways can healthy relationship be enhanced between employees and employers in an organization?

1.5 Research Hypothesis

  • H0: Employee relations has a significant effect on employee productivity
  • H1: Employee relations has a significant effect on employee productivity

1.6 Significance of the Study

The contents of this study will be relevant to managers of human resources to help them significantly improve employee productivity. This study seeks to bring out the various employee relations practices which Mai Gida Water Factory has undertaken 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 the factory has been able to make available to its employees. It also seeks to bring out the level of encouragement and motivation the factory has given to its employees to work effectively, among others. The importance of this study is therefore to highlight the various employee relations practices and how it affects the productivity of an organization. This study will go a long way to illustrate how organizations should treat employees’ in-order to increase productivity.

1.7 Scope of the Study

The scope of the research will be limited to Mai Gida Water Factory at Wuntin Dada, Jos road, Bauchi state in the North Eastern region of Nigeria . The research will rely on the factory for vital information as well as information from secondary source. The research will take duration of four weeks to complete.

1.8 Limitation of the Study

The researcher encountered a limitation in regards to availability of information. Thus due to the institutions working ethics, the researcher could not get access to vital information since it was treated as confidential and the targeted respondent’s number was not attained since some employees were on leave. Inadequate funds and availability of time also became a limitation.

1.9 Chapter Scheme

The project will be organized around following chapters;

  1. Chapter one gives an introduction to the research work. It gives the basic information about the company and the research being undertaken. This chapter therefore consists of the background of the study and organizational profile, statement of the problem, objectives, research questions, significance of the study, scope of the study, and limitations encountered by the researcher.
  2. Chapter Two consists of the literature review and the theoretical framework.
  3. Chapter three gives details of the research methodology. The research methodology represents the various ways and methods which the researcher used in order to gain his information.
  4. Chapter Four gives the analysis and interpretation of the information gathered by the researcher.
  5. Chapter five gives the findings and conclusion of the researcher. Here, conclusions will be drawn based on the findings and their implications will also be given.

Chapter Five

Conclusion, Summary and Recommendations

5.1 Introduction

The effect of employee relations on employee productivity has been studied using a case study approach. A lot of challenges were revealed by the respondents as they impact on employee relations management. Respondents mentioned factors such as inadequate remuneration, ineffective communication or poor flow of information, nepotism, untimely appraisal system, lack of career path and growth, lack of clear cut policies as well as inexperience.

5.2 Conclusion

In conclusion, it can be deduced from the results and findings of the study that good remuneration, pleasant co-worker relationship coupled with good working conditions play an important role in getting employees to be satisfied on their jobs and subsequently directly reflecting in their intention to remain committed in an institution.

By these findings, it is unbiased to conclude that job satisfaction has a relationship with commitment both to an employee’s career and the institution they work for.

5.3 Summary

One major lesson drawn from the study is that employees would be more committed to MGF when they are given rewards that are commensurate with responsibility and skills.

5.4 Recommendations

It is recommended that measures have to be put in place not just to increase their salaries but also pay all their emoluments promptly. Changes in compensation packages have associated impact on job satisfaction levels of employees. Again, MGF should devise ways of obtaining adequate facilities to enhance effective career management.

From the responses it was found that about 33% feel dissatisfied and therefore there should be incentive packages for employees who stay at post for a considerable number of years or accepts posting to rural areas.

There is a positive link between performance and incentive packages. This was also revealed in this study. MGF must have concrete career development structures as well as retention policies for their staff in other to develop and retain them. The promotion and promotion criteria in MGF need to be reconsidered in order to boost the morale of staff to put in their best to help in the achievement of organisational goals.

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