IMPACT OF LABOUR INTERESTS ON ORGANIZATIONAL PERFORMANCE

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IMPACT OF LABOUR INTERESTS ON ORGANIZATIONAL PERFORMANCE

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

In the work place, we have the workers and management team in the organization engage in formal relationship, which is purely for operational purposes. The relationship between the management and workers contractual, which is that the employer-employee relations.

Every organization has some set objectives which it wants to achieve, and these objectives cannot be achieved without an effective cordial relationship between labour and management, these objective: high productivity, large market size and increased asset base. The success of an organization is not only measured by the amount of profit the company can make, but also by the degree of industrial peace and harmony that can be maintained, therefore employers of labour must pay more attention to the needs of labour, so as to maintain high performance. Management having been entrusted with the day running and administration of the organization should regard and treat employees as a vital and essential asset of the organization; employees on the other hand should try to appreciate the effort of management in trying to protect the interest of investors and shareholders.

Labour and Management are faced with many difficult challenges: In an organization, management set goals and targets which it must meet, so they employ men and women from different background to help meat these goals and target. Most often these individuals goals and targets tend to conflict with the organization’s goals and sometimes the goals of the individual worker in the organization conflict with one another, there is therefore bound to be disagreement, disparities, dis-cordination and conflict which vary from minor differences of opinions to intensive discord.

The problem of low performance in an organization occurs when there is no cordial relation between management and its workers; this brings about lack of understanding thereby preventing management and workers from achieving their goals, in such a situation there is usually low productivity, no staff morale, low pay, lack of promotion and no maintenance culture.

The swift-moving of current information, knowledge and skills, continue to increase the difficulty for management to keep up and advance with new development in an organization. It is tragic to note that employers are not aware of the effect of lack of communication to productivity, if information’s are communicated effectively to the employees, it will help them to put their effort in the right direction and prevent waste, information should flow freely from the lowest in the organization to the highest, it is important that workers know at all times what is going on if they are to work happily and confidently.

Workers should be motivated if the best is to be expected from them, money alone does not motivate a worker, job satisfaction and secured tenure of office are equally necessary if not more important (E.I.O. Osundele). The problem of monopolizing decision making by management disrupts peaceful co-existence of labour interests. Nel (2002) said that industrial democracy is important to workers because it result in an increased share in the control of the organization, management should see workers participation in decision making as a way of increasing the commitment and control of workers. As a result of all these one can easily appreciate the need for a good labour- management relation, if high productivity must be maintained.

1.2 ORGANIZATIONAL BACKGROUND OF POWER HOLDING COMPANY OF NIGERIA (PHCN).

Power Holding Company of Nigeria (PHCN) formally called National Electric Power Authority (NEPA), came into existence by the degree no 24 of 1972 following the amalgamation of the electricity corporation of Nigeria (ECN) and the Niger Dams Authority (NDA). Its name changed form NEPA to PHCN ON May 5^th 2005, its consumer population is about 2.5 million and staff strength as at January 2009 was 37,000 comprising of senior staff, management staff and junior staff.

It has the patent right to provide electricity to Nigeria, so producing electricity to its customers is the organizations major objectives with 37 years of its operations major objectives, within 37 years of its operation, it has constructed 10 power stations with only 6 of them operating partially, the power stations are grouped into two, the thermal power stations and the hydrso power stations. The thermal power stations are located at Afam, Delta and Ijora; the hydro power stations are located at Kainji, Shiroro and Jebba. In Enugu zonal headquarters there have 14 field units namely: Onitsha, Ogidi, Awka, Ekwulobia, Abakaliki, Ogui, Abakpa, Aba, Ariari, Orlu, Mbaise, Nnewi, Umuahia and Owerri, the presence of electricity was first felt in Nigeria as far back as 1886.

1.3 ORGANIZATIONAL STRUCTURE OF PHCN

According to the decree setting it up, the affairs of the company are conducted by a 9- man board of directors, with the chairman as the head, all of them been appointed by the minister under the Ogui business unit of PHCN, its organizational structure is represented by the diagram below;


Staff 1-V				Staff 1-V			Staff 1-V	Staff 1-V

GENERAL MANAGER/CEO

1.4 STATEMENT OF THE PROBLEM

The problem of the study is to determine the effect of labour interests on workers performance in Power Holding Company of Nigeria (PHCN).

For there to be an efficient and effective performance in an organization, there ahs to be a mutual satisfaction and dedication of the group that constitute the human side of the organization, unfortunately most organizations fail to achieve this mutual satisfaction and peaceful co-existence that they end up producing below expectation.

When the organizational goals and individual goals are not compatible, it brings about conflict and disharmony which can result to strike. Strike brings frustration to management and causes unnecessary waste that will interfere seriously with the total organizations accomplishment.

Organizations where there is poor labour interests ends up producing below expectation, the cause of this as earlier mentioned are lack of communication between management and labour, bad leadership from management, poor motivational skills and lack of workers participation in decision making, since the major objective of PHCN is to generate, transmit, distribute, and market electricity to all its customers with least interruption, it has tried to an extent to maintain a fair labour management relation, yet the performance in this organization is still low because fair labour management relation is not enough. For consumers to get electricity with least interruption, the workers must perform well, and for workers to perform well there must be an adequate mutual relationship between them and management, so PHCN is experiencing some problems of poor labour interests.

1.5 OBJECTIVES OF THE STUDY

The major objectives of this study include:

To ascertain the effect of a mutual relationship between management and employees.
To highlight the effect of motivation on workers performance.
To determine the importance of labour management communication.
To examine the need for workers participation in decision making.
To ascertain the effect of strike on organizational performance.
To examine whether or not leadership style effect labour management

relations.

1.6 RESEARCH QUESTIONS

This research study will find answers to the following research questions at the end of the investigation.

Does a mutual labour management relation have any effect on workers performance?
What is the effect of motivation on workers performance?
Does good communication enhance smooth labour management

relations

What is the importance of employee participation in management decision making?
What are the effects of strike on organizational performance?
How does the leadership style of an organization affect its labour interests?

1.7 HYPOTHESES FORMULATION

The following hypotheses have been formulated:

H₀: Mutual labour interests does not have any effect on workers performance.

H₁: Mutual labour interests have an effect on workers

performance.

H₀: There is no need for workers participation in decision making.

H₁: There is need for workers participation in decision making.

H₀: Strike ahs no effect on organizational performance.

H₁: Strike has an effect on organization performance.

H₀: Motivation does not encourage workers to work hard. H₁: Motivation does not encourage workers to work hard.
H₀: Good communication does not enhance smooth labour management relations.

H₁: Good communication enhances smooth labour management relations.

H₀: The leadership style of an organization affects its labour

management relations.

H₁: The leadership style of an organization affects its labour

management relations.

1.8 SIGNIFICANCE OF THE STUDY

The benefit of this study is as follows:

It will help the labour and management of an organization to know the areas they are performing well and also loopholes they need to attend to:
It will help management to know what it entails to improve performance in an organization.
This study will help management to know the benefit of relating well with its workers.
This study will motivate other researchers to go into further study on the issue.
The information contained in this study will be of immense value to students, management and the general public.

1.9 SCOPE OF THE STUDY

This study attempts to examine the effects of labour interests on workers performance in an organization.

The data for the study will be obtained from power Holding Company of

Nigeria (PHCN), basically its business unit, the Ogui business unit at Okpara Avenue, Enugu.

1.10 LIMITATION OF THE STUDY

An obvious limitation to this study was financial constraints, this study proved to be very demanding on the researcher because of the need to source for materials from PHCN.

These materials needed where gotten from the mangers and public relations officer of PHCN, and it was not easy meeting them at the office, talk less of them having enough time to get you the needed materials, this project was also time consuming

1.11 DEFINITION OF TERMS

Labour: The people who are available to perform work. The collection of people who work or perform the work of an organization.
Management: Is a group of people responsible for running an

organization or directing the organization’s human activities for specific ends, they take care of the process of planning, organizing, directing and controlling of human activities.

Performance: The way a job or task is done by an individual, a group or an organization.
Productivity: Is the measure of the relationship between the quantity of results produced and the quantity of resources required for production, production is the measure of the work efficiency of an individual, work unit or an entire organization.
Organization: Is a group of people brought together for the purpose of achieving certain objectives.
Conflict: A condition that arises when two or more individuals or group of people perceive their own interest as being challenged by others and where strong feelings can be aroused.

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