Project Materials

MANAGEMENT/LABOUR RELATIONS AND ITS EFFECTS ON PRODUCTIVITY

ABSTRACT

Management-labor relations have been the subject of heated controversy for decades, although they are critically vital to an organization’s productivity. To the average person, a company’s potential for profit is just one indicator of its success; the other is the extent to which its employees are able to work together peacefully and harmoniously. Finding out how the labor-management interaction affects organisational productivity is the overarching goal of this dissertation. To that end, we conducted extensive research to determine the effects of different management styles on worker conduct and productivity. Distribution of 150 questionnaires to companies in Nigeria’s Delta State allowed for a rigorous evaluation of the effects of labor-management relations on organisational production. Organisations in Delta State do not place a high value on worker productivity, according to the main research. However, respondents to the study did recognise the significance of industrial and labour relations in improving organisational success. Additionally, primary study revealed that there is a chasm in the way management and labour view the goals of labour management relations. The majority of Delta state’s groups don’t follow a certain leadership pattern, while a small number adhere to more conventional democratic models.

CHAPTER ONE

INTRODUCTION

1.1 The Background of the Study 

There has been a rising chorus of voices in recent years demanding that management and workers work together more closely to boost output. Scholars are increasingly interested in labor-management cooperation, but few research have looked at how this connection affects organisational productivity.

Several studies have shown that in order to promote organisational transformation and increase productivity, a successful labor-management interaction is crucial (Black and Lynch, 2001).

Good morale and higher production could lead to a rise in profits, which is the ultimate goal of management at all levels (Ajala 2007). The field known as “labour management relations” (LMR) studies the dynamics between employers and employees as well as the regulations and policies that shape the workplace.

Both economic policy and the structure of the workforce are affected by LMR (Von Otter 2007). Over time, the emphasis shifted from collective bargaining and the establishment and functioning of national and local institutions to the development of long-term plans for human resource management.

Following the necessity for new laws in global trade, the expanded European Union, and nations that were once communist but have since been industrialised, a multi-level agenda has lately emerged (Von Otter 2007).

Labour relations can vary greatly from one country to another. One can obtain a better understanding of a country’s history, development, and production processes by studying its labour relations systems and collective bargaining position (Caulfield 2004).

Research on collective bargaining and labour relations should not be disregarded since it helps to understand how each country’s economic system is changing and expanding (Kuruvilla 1994; Napathorn and Chanprateep 2011).

Conversely, collective bargaining refers to the process by which employers and organised groups of employees seek to resolve their competing interests by addressing shared challenges (Vettori 2005). Meeting a shared interest in organising employment terms and conditions is its primary duty (Bamber and Sheldom 2002).

Organisational performance may be influenced less by unionisation and more by the quality of the labor-management relationship. Academics, union officials, and business executives are deeply divided on the pros and cons of labor-management cooperation (Thornicroft 1993).

In their study, Black and Lynch (2001) found that compared to non-union firms, unionised organisations with collaborative decision-making and incentive-based bonuses produced higher output. Conversely, traditional labor-management ties in unionised organisations lead to lower productivity.

Higher compensation and benefits, a well-developed grievance system, strong adherence to seniority, and restrictive work rule and job categorisation procedures have traditionally been characterised by the labor-management interaction, as observed by Barbash (1984) and Cooker and Meyer (1990).

Also, relations between management and workers have historically been hostile and focused on power dynamics; with management seeing the relationship as distributive, and with workers seeing their role as negotiating for a larger cut of the organization’s wealth, the dynamic has traditionally been adversarial (Stephen and Roderick 2005).

1.2 Statement Of The Problem

In essence, for the labour force to achieve industrial harmony, high organisational productivity, and the realisation of the company’s objectives, it is imperative that workers’ demands and concerns be given the utmost priority.

The people that make up the institution are the ones who invite and decide on all of the company’s operations, which is why this is the case. Records show that most modern businesses rely on plant equipment, automated equipment, computers, etc., but these tools are mostly ineffective without the human effort and guidance that every business requires at all times.

The effects of labor-management can also boost output in the workplace. One way to promote industrial democracy is through labor-management cooperation.

When employees have a “say” in how their company is run, they are more invested in seeing their ideas through to fruition and are more likely to go above and beyond to see them through.

The argument goes like this: as management and workers work together more closely, each side will eventually start to understand the other’s struggles and start to be more accommodating.

The company’s goals can be more efficiently achieved with the help of the workers’ strength, experience, and initiative if there is better communication between management and the workforce.

One must take into consideration the labor-management interactions. According to Yesufu (1981), “industrial relations are the whole web arising out of employment contracts.” The main focus here is on how the interactions between management and workers may keep productivity at its highest level.

Keeping the peace in the workplace is, thus, a must. The foundation for any society’s economic and social progress and security. Ultimately, it is essential for management and workers to have different goals in each organisation.

While working towards these goals, there should be occasional joint construction over various topics, such as how to increase output and employees’ welfare.

It is essential for any work organisation to prioritise solid labor-management relations in order to achieve their aim of greater profitability and production in a peaceful industrial environment. Attaining and maintaining maximum levels of production through labor-management interactions is the primary concern.

Productivity of chosen businesses in Delta state, Nigeria, with the goal of boosting Nigeria’s economy. As an organised labour movement, its workers’ union seeks to preserve and enhance workers’ working conditions and terms of employment.

While businesses aim to maximise (or, more accurately, optimise) their investment returns, workers want to maximise their own rewards—in the form of pay and benefits—while minimising the physical and other risks inherent to their jobs.

This calls for an investigation into the nature of the labor-management dynamic at the chosen Delta State businesses and how it influences worker output.

1.3 PURPOSES AND GOALS

The overarching goal of this dissertation is to determine how the connection between labour and management affects organisational production. The specific goals are as follows:

the purpose of this evaluation is to determine the impact of different management styles on employee behaviour and workload

In order to assess the effect of labor-management relations on the survey businesses’ organisational productivity

In order to guarantee that the assessed organisations achieve a high level of productivity, it is necessary to critically assess how labour management relations could be enhanced.

1.4 THE SCOPE OF THE STUDY

There have been and will be numerous changes and difficulties in the modern workplace, just as there have been and will be in the world at large. Workers and supervisors are under increasing pressure to provide a surplus of high-quality goods and services at affordable prices.

There is a growing consensus that labor-management relations are foundational to an organization’s success (Chandrasekar, 2011). There are two obvious groups in any given organisational structure, and these are the management and the group labour. The activities of each given organisation revolve around these two groups (Tangen 2005).

The conventional wisdom holds that management and workers can benefit from a concerted effort to boost efficiency and productivity, cut down on waste, and raise product quality in the most prevalent areas of mutual interest.

Low productivity, on the other hand, is inevitable in the absence of mutually beneficial relationships between management and workers. There are always goals that an organisation or business sets out to accomplish. The aforementioned groups must be instrumented in order to fulfil these objectives, which include high organisational productivity.

As a key component of social and economic development, industrial peace and harmony should be a goal of labor-management interactions.

Consequently, the nature of the connection between management and labour, as well as the degree to which both will fulfil their responsibilities, will determine the amount to which these desired goods are achieved.

Compatibility between workers and management is essential for every business to be successful. When an employee’s interests are promoted and safeguarded, he will be extremely dedicated and cooperative.

Many people believe that a company’s potential to produce money is just one indicator of its success; the other is the extent to which its employees are able to work together peacefully and harmoniously.