Labour Management Relations: A Tool For Industrial Harmony In Nigeria Organizations

Project and Seminar material for Public Administration

Labour Management Relations: A Tool For Industrial Harmony In Nigeria Organizations


This research examined the degree of labour relationship between management and employees of Anammco Plc Emene. The population consisted the staff of Anammco including secretaries the sample is 100 for the analysis of the data collected. It was discovered that cordial relationship exists between management employees of Anammco Plc even though the organization has thrived without industrial crises.

Chapter One


1.1 Background of the Study

Industrial relations constitute one of the most delicate and complex problems of the modern industrial society. This phenomenon of a new complex industrial set-up is directly attributable to the emergence of ‘Industrial Revolution”. The pre-industrial revolution period was characterized by a simple process of manufacture, small scale investment, local markets and small number of persons employed. All this led to close proximity between the manager and the managed. Due to personal and direct relationship between the employer and the employee it was easier to secure cooperation of the latter. Any grievance or misunderstanding on the part of either party could be promptly removed. Also, there was no interference by the State in the economic activities of the people. Under such a set-up industrial relations were simple, direct and personal. This situation underwent a marked change with the advent of industrial revolution – size of the business increased needing investment of enormous financial and human resources, there emerged a new class of professional managers causing divorce between ownership and management, and relations between the employer and the employer became entranged and gradually antagonistic. This new set-up rendered the old philosophy of industrial relation irrelevant and gave rise to complex, indirect, and impersonal industrial relations.

Industry today is neither viewed as a venture of employers alone nor profit if considered as its sole objective. It is considered to be a venture based on purposeful cooperation between management and labour in the process of production and maximum social good is regarded as its ultimate end and both management and employees contribute in their own way towards its success. Similarly, labour today is no more an unorganized mass of ignorant works ready to obey without resentment or protest the arbitrary and discretionary dictates of management. The management has to deal with employees today nto as individuals but also as members of organized social groups who are very much conscious about their rights and have substantial bargaining strength. Hence, the objective of evolving and maintaining sound industrial relations is not only to find our ways and means to solve conflicts to resolve differences but also to secure the cooperation among the employees in the conduct of industry.

But maintaining smooth industrial relation is not an easy task. Almost all the industrialized countries of he world fact the problem of establishing and maintaining good management worker relationships in their industries. Each country has sought to find our solution, depending upon its economic, social and political environment. However, industrial conflict still arises and therefore establishment and maintenance of satisfactory industrial relations forms an important plank in the personnel policies of modern organization.


In the broad sense, industrial relations cover all such relationships that a business enterprise maintains with various sections of the society such as workers, state, customers and public who come into its contact.

In the narrow sense, it refers to all types of relationships between employer and employees, trade union and management, works and union and between workers and workers. It also includes all sorts of relationships at both formal and informal levels in the organization.

The term ‘industrial relations’ has been variously defined. J.T. Dunlop defines industrial relations as “the complex interrelations among managers, workers and agencies of the governments”. According to Dale Yoder “industrial relations is the process of management dealing with one or more unions with a view to negotiate and subsequently administer collective bargaining agreement or labour contract”.

In indusial relations, therefore, one seeks to study how people get on together at their work, what difficulties arise between them, how their relations including wages and working conditions etc., are regulated. Industrial relations, thus, include both ‘industrial relations’ and ‘collective relations’ as well as the role of the state in regulating these relations. Such a relationship is therefore complex and multidimensional resting on economic, social, psychological, ethical, occupational, political and legal levels. There are mainly two set of factors that determine the state of industrial relations – whether good or poor in any country. The first set of factors, described as ‘institutional factors’ include type of labour legislation, policy of state relating to labour and industry, extent and stage of development of trade unions and employers’ organizations and the type of social institutions. The other set of factors, described as ‘economic factors’ include the nature of economic organization capitalist, socialist technology, the sources of demand and supply in the labour market, the nature and composition of labour force etc.

Distinction between human relations and industrial relations

The term ‘human relations’ lays stress upon the processes of inter-personal relationships among individuals as well as the behavior of individuals as members of groups. The term ‘industrial relations’ is used widely in industrial organizations and refers to the relations between the employers and workers in an organization, at any specified time.

Thus, while problem of human relations are personal in character and are related to the behavior of individuals where moral and social element predominate, the term ‘industrial relations’ is comprehensive covering human relations and the relations between the employers and workers in an organization as well as matters regulated by law or by specific collective agreement arrived at between trade unions and the management.

However, the concept of ‘industrial relations’ has undergone a considerable change since the objective of evolving sound and healthy industrial relations today is not only to find out ways and means to solve conflicts or resolve difference but also t secure unreserved cooperation and goodwill to divert their interest and energies toward constructive channel. The problems of industrial relations are therefore, essentially problems that may be solved effectively only by developing in conflicting social groups of an industrial undertaking, a sense of mutual confidence, dependence and respect and at the same time encouraging them to come closer to each other for removing misunderstanding if any, in a peaceful atmosphere and fostering industrial pursuits for mutual benefits.

1.2 Statement of Problems

Human beings have insatiable needs and the urge to satisfy their needs creates problems in business organization. In fact human beings with insatiable needs constitute the workforce of an organization. It is important that problems that will distract them at work are taken care to a reasonable degree before they go off. Problems encountered at the work in any work environment could be either economical, social or political.

It is difficult to determine the extent of labour management relation as a tool for industrial harmony in Nigeria.

This research work therefore determined the degree of labour management as a tool for industry harmony.

1.3 Purpose of the Study

The purpose of the study is to:

  1. Determine if cordial labour relationship exists between management and employees
  2. Determine the need for industrial harmony.
  3. Determine if management encounters any problems in maintaining good labour relationship with their workers.
  4. Determine the best strategies to sustain good labour relationship between management and workers of
  5. Make recommendations on how to maintains good labour relationship between management and employees in any organization.

1.4 Significance of the Study

The finding of this study shall be useful to organization in determine ways of solving problems of industrial unrest in to create industrial harmony. The project shall also be immense benefit to all prospective employees in business organization to determine various ways through which they related with employees to ensure industrial harmony.

The finding in this study shall also be useful to business administration and managers in designing effective strategies to ideal with their staff to ensure tranquil industrial atmosphere.

1.5 Delimitation of Study

This study is delimited to determined only labour management relations a tool for industrial harmony in Nigeria Organization a study of Union Bank of Nigeria plc).

1.6 Research Questions

The following questions were developed to guide the study.

  1. To what extent does labour management relation as industrial relation exist in Union bank of Nigeria.
  2. To what degree does this labour relationship exist between management and the employees
  3. What problem does management encounter in maintaining good labour relationship between workers.
  4. What strategies shall be used to ensure good labour management relations between management and employees for better industrial harmony

1.7 Definition of Terms

The following terms were explained to guide the understanding of the words.


According to the Advanced learner’s dictionary of English language labour is to work or try hard. Labour used in this project to mean duties which are performs in an organization.


According to Advance learner’s dictionary of English language is the activity of organizing something. It is used in this project as an enterprise set up for the purpose of doing business with the aim of making project.


According to advanced learner’s dictionary of English language, investor is used in project to mean somebody who have set aside to reasonable of money to start of business with aim of making profit.

1.8 Implication for the Study

The study of degree of labour management relationship existing between management and employees of Union Bank will have the implication of establishing standard of relationship that show the exist between management of the organization and employees of such organization.

The study will also implied that where they has cordial relationship existing between management and employees of Union Bank there may not be national for this study. If Union bank had not witness any bad in industry atmosphere the implication that this study is useful.

Chapter Five

Discussion of Findings, Summary, Conclusion and Recommendations

5.1 Discussion of Findings

Based on the analysis of data in chapter five, the following findings surfaced.

Table I shows the pattern of questionnaire distributed, 100 persons were sampled out, a population of about 500 staff. However, 25% of the sample size are senior staff while 75% are junior staff. This represents 20% of the population. The aim is to achieve a high degree of accuracy in the reply being sought for. All questionnaires distributed were filled and returned by respondents.

The analysis of data revealed that 89% of the respondents are male. The company’s operation is labour intensive and requires more than men in the production process. However, 11% of female workers represented in the sample.
Furthermore, on personal data 34% of the workers are married while 66% are single. This goes to conform the quality of staff in the organization. This is considered healthy for this type of organization. It is also discovered that the company has experienced industrial action of misunderstanding once or twice over the fight for favourable condition of service. The plant union have not accepted the condition of service. However, 30% of the sample size who said that the company never experienced any form of industrial unrest (since its commission in1980) attributed the industrial peace to good labour and management leadership.

The sample viewed the existing management leadership style, table viii shows that majority of the staff sampled (67%) prefer democratic management leadership style to other types. This is because of the fact that the management is usually sensitive to the workers problems. It shows that majority of the senior staff sample (19% out of 25%) agree that the management contact employees in deciding on matters affecting them while majority of the junior staff sampled (54% out of 75%) disagree with the idea.

However, in answer to a question on employee participation in decision making exposes the organization to danger and should therefore be discouraged, majority of the workers irrespective of their cadre said no, meaning that it should not be discouraged.

Table iv shows that the management labour relation is fair. This is confirmed by the democratic leadership style existing in the company. Figure v shows that there is narrow communication gap between employees and union leaders. This implies that the communication effectiveness is more, than between employees and union leaders.
Table vii shows that majority of the workers share the view that their condition of service is worse than others in the industry. The plant union (made up of intermediate and junior staff / and senior staff association has not accepted the condition to service provided by the management.

Table iv shows that 43% and 27% of the respondents describe the turnover as being high and very high respectively. However 15% of the respondents said that the condition of service is just like others, while 10% of the respondents say it is better than other.

Table v loots at the existing appraisal method employed by the management in appraising employees performance. Majority of the junior staff said that the management uses confidential appraisal.

Table vi considers the criteria for promotion and advancement in the organization. Majority of the senior staff believed that management uses result of appraisal while majority of the junior staff said that the management has no criteria for promotion and the table shows also qualification for promotion and advancement. This implies that they have no confidence in the fairness of management for rewarding hard work.

Table vii shows that 83% majority of respondents all the senior staff and 58% of the junior staff sample prefer increase in salary to other things as a motivator for hard word. This has gone a long way to confirm the economic depression of the country. Cost of living is so high that everybody wants monetary reward to enable him meet the increasing cost of living. This has disapproved Maslow’s hierarchy of needs where junior staff needed more money to satisfy their basic physiological needs while senior staff want growth and recognition. Both now need more money to satisfy wants because of the high cost of living due to the economic depression of the country.

Finally table viii shows the trend of production output figures for the past eight years from the table production output has been on the decrease since 1982. The decrease from 1982 to 1984 were attributed to low scales. But the drastic fall from 44% to 50% in 1986 was caused by lack of spare parts for production. The lack of imported parts was as a result of the abolition of import license system and an emergence of the SFEM.

5.2 Summary of Findings

From the analysis the following findings were made:

  1. The management and staff of ANAMMCO Plc have hard some period of industrial misunderstanding over the request for better condition of service for the employees.
  2. The employees of the company prefer democratic style of administration to autocratic style.
  3. There is an appreciable level of involvement of the employees to a decision making involves in the employees especially on the issue of policy formulation.
  4. The employees sight that are not giving good condition of services as obtainable in other companies in the same area.
  5. The management of the company is happy with level of the business turnover.
  6. The company witness an abysmal low turnover business between 1982 to 1986 this was attributed to poor sales.
  7. Generally cordial relationship between management of employees of ANAMMCO Plc.

5.3 Conclusion

The purpose of this research was to find out the effect of management labour relations on workers productivity of ANAMMCO Plc Emene. The preliminary studies followed by data analysis in chapter iv form the basis for the following conclusion.

  1. For effective management labour relations to exist in an organization, there must be some interests the parties have to defend for labour it is a fair return on the price paid for labour while management wants fair return to share – holders equity.
  2. There should exist high degree of mutual trust among the parties to enable both parties treat issues arising from their relationship in good faith. Each party should try to reconcile its objective with that of the group. This is done by treating the business (organization) as a system.
  3. For productivity to increase there must exist industrial peace. This peace can only be maintained with good management and labour leadership. For a good management to exist the management should allow the workers to participate in management decision making.
  4. Other factors observed that have major effect on productivity are communication and motivation.

Communication is vital in clarifying policies at all time. Non communication to employees may led to people dreaming and coming up with images. On motivation we observed that the essence of motivation is to increase productivity.

5.4 Recommendation

  1. Labour leaders should improve the communication effectiveness between them and their members. This will enable them to fight with one voice and avoid sabotage. Also, it will reduce rumours among the workers.
  2. Management should contact workers in deciding on matters affecting them because it boasts the morale of workers and make them have sense of belonging in the company. The management can do that by encouraging workers to make more use of such avenues like suggestion box, the boss (superior) etc.
  3. The management should re-introduce end of year prize award to the best workers in each department. It is a motivational technique for higher productivity.
  4. Management especially those in top management position should attend seminars and course dealing with management labour relations as a matter of policy since from all indications success of the organization depends on the achievement of set goals. These goals cannot be achieved in a atmosphere of confusion. The seminars and course will make the managers re-assess their leadership style.
  5. Management should adopt an open appraisal technique. The benefit of this enormous because workers are given the opportunity of knowing how any why are so rated. This makes room for chance of attitude and improvement on the side of workers by their boss is also reduce through the open appraisal.
  6. Also management should have a defined policy on promotion and advancement of workers. This does not eliminate management prerogative on this matter but rather ensures that the system is neither abuse nor used for victimization.

5.5 Limitation of the Study

The research encountered many problems in the course of this research first among the region of problems was constraint of time. This factors affected timely completion of the work to a very great extent and slightly affected the quality of the work. I must mention that I encountered a lot of difficulties in convincing my respondents that their answer shall never be used against them. I therefore expect some bias in their answers and this factor may affect concrete reliability of the findings in this work.

In all this work is not sacrosanct in itself but I tried to present a very fair and objective views of my respondents on survey of the degree of labour relationship existing between management and employees of ANAMMCO Plc, Emene Enugu state. All known and observable errors are regretted.

5.6 Areas for Further Research

The result of this research has indicated that for a better insight into the problems that inhibits labour relationship existing between management and employees a study should be carried out in the followings areas:

  1. The importance of relationship existing between management and employees that may be derived.
  2. Labour relationship existing between management and employees in other companies in Nigeria. This involves those that create limitation to management and employees and their solution.
  3. Making management and employees useful in indigenous companies.

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