Management / Labour Relations And Its Effects On Productivity

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Management / Labour Relations And Its Effects On Productivity


This study is aimed at management-labour relation and its effect on prodcutivity in an organization using NITEL Enugu as the case study. In every organization, activities revolve around two major groups, the employer and the employee, therefore co-operation is necessary if the organization must realize its corporate goals. Taking into account the aim of this study, which is to look into the effect of labour management relations on workers performance in an organization, you will see that serious and proper examination of the existing literature on this topic has been assessed. The review of this topic will be based on the issues in the research question which are below. Effect of mutual relations between labour and management, effect of motivation, effective communication, workers participation in decision making, effect of strike, how leadership style affects labour management relations . The data collection was form both primary and secondary sources. Analysis of the data was done using tables, percentages and statistical distribution. Form the finding in the research work the researcher recommended that for an effective relation to be maintained between labour and management, the employees must be properly motivated, communication gap should be bridged, workers should participate in decision making, and salaries must be paid as and when due.

Chapter One


1.1 Background of the Study

The word management has been defined, as getting things done through people. It is a process of setting objectives, organizing resources to attain these predetermined goals, and then evaluating the results for purpose of determining future actions.

Hodgetts, (1990) said that management has for thousands of years been a key to success to individuals and civilizations alike.

Labour is one of the factors of production and consists of all human energy expended in the production and distribution of goods and services.

Nwachukwu (1988) opined that this definition includes all professional executives, all levels of employees and self employed people. According to the United States Bureau of census, the labour force includes all who are willing and able to work whether employed or self employed.

Productivity is the achieved set objectives in firm by the workers. It is the output of what the input of workers yield productivity when increased, favours the firms because this means that the predetermined goals of firm are realized but when it is decreased the firm is at loss and this affects both management and labour in the context of this research work, management should be seen as owners of business, firms of categories of management who participate in the setting objectives of firms and in the decision making, those who take leadership positions in such firms.

Labour in this work should be seen as those hired employees of a firm who takes directives from the management in carrying out their official duties, who have no hand in the decision and objective settings of the firm, who through the management gets done the work that should be done in order to achieve the set objectives.

These two groups, management labour are the two major groups, that exist in firms where goods and services are produced. These two groups must be built up effectively and efficiently in any firm for a harmonious work flow between labour and management.

Nwachukwu 91988) had to state that management must work harmoniously with employees and must therefore develop programmes and policies that will enable them to achieve the best results of the organizational goals, understands labour (Employees).

Most often management labour are in conflicting objectives. This comes in because management will always want higher productivity with minimal costs while labour will want to achieve higher price for its members through the instrumentality of labour unions. The conflicting objectives between labour management always result in strike action which causes loss of man-hour which results in decreased productivity.

The need to promote and improve good relationship between management cannot be over emphasized. In all managements, the management of human beings at work are the most complex. Management, therefore it needs to relate very well with labour in any firm like NITEL Plc. So that there will be no disruption to achieving the set objectives which will hinder productivity.

When labour is not satisfied with its management or management not satisfied with its labour, there is always a bridge to harmonious working in the firm and productivity suffers.

As a means of achieving industrial peace, high productivity and attainment of all organizational objectives, management should regard and treat labour as the greatest asset of the organization having their interest in mind and communicating them effectively.

All the factors of production in firms are useless and cannot yield anything without human direction and effort.
Labour should understand that employers would benefit and be happy if they should put in all their best to improve productivity and work towards that. They should see with the management in times of crisis in firms and maintain their loyalty with the management.

Management should equally know that their effective communication to labour through the trade unions, their involving them in decision making, motivating them, setting up an effective leadership will help to promote relationship between the two groups and productivity will be on the increase.

An aggrieved worker is usually depressed, has a suggesting or law morale and poor attitude to work which affects productivity.

Thus, there is need for harmonious understanding between management labour in any firm in order not to allow the firm to run into chains of problems which hinders productivity and efficiency.

This study therefore reviews the importance of good management labour relationship and its effects on productivity in a telecommunication firm hence NITEl Plc, Enugu as a case study.

1.2 Statement of the Problem

Many factors have been hindering the good relationship that should exist between management labour in many organizations which NITEL Plc is not an exception. This unhealthy relationship between management/labour has a force which hinders productivity which is the main goal of any oriented organization.

The neglect of workers’ interest as revealed in certain behaviours by workers of NITEl Plc, Enugu was observed by the researcher.

  1. Employees may not be satisfied over the management’s attitude on the handling of performance appraisal system which is not taken into consideration in areas of training and promotion of staff.
  2. It is not clear whether there is any motivational incentives for the staff of NITEL Plc who stand as the key officers of the firm and are more exposed to risks in the course of discharging their duties.
  3. Ineffective trade union in NITEL Plc which does not represent the employees well in the management most often makes the workers feel that their interest is not protected by the trade union leaders on the management level.
  4. Employees spend a valuable man-hour discussing manager’s behaviour as it affects them and this attitude is likely to affect productivity which is the key objectives of setting up a firm.

1.3 Purpose of the Study

The purpose of this work is to identify how good management labour relations of NITEL Plc will help to bring to the knowledge of the management: specifically, the study seeks to investigate:

  1. The dissatisfied state of the workers over the handling of performance appraisal records as it concerns promotion and training of staff.
  2. The need for motivation in any firm especially as regards to the workers of NITEL Plc.
  3. The incompetent trade unionism in the firm which does not make a good representative of the workers.
  4. The need for good management labour relationship in a firm such as in NITEL Plc.

1.4 Significance of the Study

This project work will be of immense benefit to NITEL management and also to other employers of labour, policy makes and those who want to get the desired result of setting up firms.

On the side of employees both at NITEL or any other organization, the work will help them to realize that employers need their honesty and loyalty in discharging their duties. This will help them (employees) to reap the benefits of where they work because when an organizational goals are achieved.

Furthermore this study will contribute to policy formulation that will provide checks on the interactions between management labour and creates an environment that will sustain established industrial harmony.

When the finding of this study are implemented by government or any organization, they will improve the relationship between the management and labour which will create efficiency and effectiveness and high productivity at the working places.

It will also help to maximize human resources as much man-hour would be utilized in production than in an endless confrontation and dialogue.

1.5 Scope of the Study

This project work which uses NITEL Plc as the case study is carried out in NITEL Plc, Enugu, Enugu State.
The researcher took time to study the type of relationship that exists between labour/management of NITEL Plc and the effect this has on productivity of the firm.

1.6 Research Questions

The following research questions will guide the study:

  1. Are the NITEL workers satisfied over the use of annual performance appraisal records by the management?
  2. Are there some motivational incentives for the staff of NITEL Plc?
  3. Does the performance of the trade union of NITEL Plc encourage or discourage workers?
  4. Does the management of NITEL relate well with its employees?

Chapter Five

Discussion, Recommendation and Conclusion

The discussion, conclusion and recommendation made under this chapter are based on the findings of the study. The study sought to identify management/labour relations and its effects on productivity in NITEL, Enugu state.

5.1 Discussion of Findigns

Based on the analysis in chapter four as collected from the 122 respondents of NITEL, the findings of the research are summarized below:

  1. That labour management relations has an effect on workers productivity.
  2. NITEL has fair mutual labour management relations.
  3. That there is need for workers to participate in decision-making, because it will give them a sense of belonging.
  4. Junior staff workers do not participate in decision making in Power Holding Company of Nigeria, this is left for the management staff, who believe they can handle the job better.
  5. Motivation is a necessary inducement for workers to work hard.
  6. The motivational package preferred was good working condition, followed by money, participation in decision-making and lastly praise.
  7. That the communication gap between workers and management of NITEL is wide and it has negative effect on workers productivity.
  8. The success of a cordial relationship depends on a good and smooth communication between labour and management
  9. That salaries are paid as and when due.
  10. The organization has witnessed strike more than twice, and this has an effect on workers productivity.
  11. That the leadership style operated is democratic style of leadership, which is the best for an effective relationship between labour and management.

5.2 Recommendation

For proper and adequate sustenance of a cordial relationship between labour and management, the researcher has stated the following recommendations;

  1. Since labour management relation has an effect on workers productivity, management should see to it that a cordial relation is maintained. Terms and conditions under which employees will work must be determined and if both parties fulfill their own parts, there will definitely co-exist peacefully.
  2. Workers should be given the opportunity to participate in decision making, to give them a sense of belonging and enhance their productivity. Opinions should be sort from the employees before decisions are taken, since they spend most of their time working for the organization.
  3. The employees should be motivated in order for harmony to reign between management and labour, to enhance productivity.
  4. It is important that the communication gap between the management and workers be bridged to prevent unnecessary sabotage and enable them speak with one voice, thereby avoiding rumor-mongering.
  5. Management must pay salaries and when due, since this has been a major cause of industrial action in the organization

5.3 Conclusion

The study and findings of the management/labour relations and its effects on productivity in NITEL, Enugu state is the purpose of this study. The introductory studies and analysis of information in the last chapter forms the foundation for the following conclusion.

  1. Industrial peace and harmony is necessary in order to have an increased productivity, this can only be maintained with good labour management relations.
  2. Both the management and employees should understand that they both play an important role in the organization, they should see each other as indispensable in the actualization of the organizational goals and objectives, and this can be achieved by seeing and treating the organization as a system
  3. Labour must be handled with care, in order to avoid unproductive labour, on the order hand; labour should not exploit and remain dormant in the organization.
  4. Motivation and communication are vital factors that affect productivity, efforts should be made to meet up with the yearnings of the employees by introducing a motivational package that will suit and satisfy their needs. Communication is the only way information’s can be effectively transmitted, good communication if maintained will reduce misinterpretation and increase the speed with which work is performed.
  5. Since it is a known fact that workers will purse an objective better, if they join in making the decision on that objective, management should allow workers to participate in decision making, because if workers are granted such permission to participate in decision making, they will feel privileged and indebted to work hard to achieve the joint decision made.
  6. Organization requires a leadership style that ensures adequate flow of information to all workers, democratic leadership style for now is the prefect style of leadership for labour management relations.
  7. Whenever there is a grievance or disagreement in the organization, management should try and resolve it at its early stage either through negotiation or collective bargaining, before it gets too late and result to a strike.

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