TRADE UNIONISM AND ORGANISATIONAL EFFECTIVENESS
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TRADE UNIONISM AND ORGANISATIONAL EFFECTIVENESS
ABSTRACT
The study sought to evaluate trade unionism and organisational effectiveness (a case study of Nestle Nigeria plc in Lagos). The study adopted the descriptive survey research design with the following objectives:
to assess the priority accorded to the welfare of employees in public organisations; to determine how employees are carried along in policy review and implementation with respect to communication;
to evaluate the extent to which quality of negotiation influences employees’ performance; and to appraise the extent to which management-employee relations influences productivity in the organisation. The study included one hundred and twenty (120) randomly selected respondents from the sample.
The study’s data was collected via a self-constructed questionnaire. The questionnaire had twenty (20) items scored on a four-point scale. Trade unionism and organisational effectiveness were assessed using a Likert scale (TUAOE).The data was analysed using basic percentages and chi-squared.
The hypotheses were evaluated at the 0.05 level of significance. The study’s findings revealed that there is a link between trade unions and the provision of welfare measures among workers in an organisation,
that trade unions increase workers’ participation in the management affairs of the organisation, that trade unions ensure the reduction of disputes and the right to dialogue, and that management-employee relationships promote organisational productivity.
The study therefore concluded and recommended that the welfare of employees should be considered, top-down communication in the organization should be smoothened,
quality of negotiation and employees performance should be encouraged and that employee should be made to partake in critical decision so as to have a sense of belonging.Chapter one
INTRODUCTION
1.1 Background for the Study
Nigerian workers, like their colleagues in other developing countries, have seen fundamental shifts in their circumstances throughout time. Trade unions played a crucial part in this development.
In most developing nations, the government is the major employer of labour, with private persons employing only a small part of the working class (Fajana, 2000).
In Nigeria, trade unions have emerged as key agents of socioeconomic reform and class conflict (Aremu, 1996; Akinyanju 1997). Trade unions played prominent roles during the colonial fight and continued to do so after independence.
In the latter period, trade unions play an important part in the fight against totalitarian military authority and the restoration of civil governance in the nation.
More notably, during the civilian era, trade unions led the fight against unpopular government policies such as oil sector deregulation, worker layoffs, and refusal to honour wage rise agreements.
Most unions claim exclusivity. The union has the authority to determine who is and is not a member. Most unions claim the authority to require that only their members and no others be authorised to work in certain jobs.
Furthermore, the union contract is exclusive in terms of the employer; an employer is often prohibited from seeking the services of another labour union or hiring another rival labour union, even if he is displeased with the existing labour union’s performance (Fajana, 2000).
These organisations may include individual workers, professionals, former employees, or the jobless. The most prevalent, but far from the only, goal of these organisations is to maintain or improve their employees’ working conditions (Fajana, 2000).
According to Baird (2005), throughout the previous five decades, trade unions have taken on various shapes around the world, driven by different political and economic regimes. The immediate goals and actions of trade unions vary, but may include:
Benefits for members: Early trade unions, such as Friendly Societies, frequently provided a variety of benefits to protect members from unemployment, illness, old age, and funeral expenses.
In many industrialised nations, these functions have been taken over by the state; however, providing professional training, legal counsel, and representation to members remains an important benefit of trade union membership.
Collective bargaining: When trade unions are allowed to operate openly and are recognised by employers, they can negotiate salaries and working conditions.
Industrial action: Trade unions might organise strikes or opposition to lockouts to achieve certain goals.
Political activity: Trade unions may advocate for legislation that benefits their members or the entire workforce. To that purpose, they may run campaigns, lobby, or financially support individual candidates or parties for public office.
Trade unions play an important role in influencing organisational effectiveness in today’s businesses. The exposure of Nigerian firms and industries to greater market pressures, a growing trend in outsourcing and the growth of traditional employment,
employer-sponsored forms of participation and representation, and the imposition of legal constraints on unions’ ability to recruit, organise, collectively bargain, and take industrial action have all contributed to the roles of trade unionism (Yusuf, 2008).
Despite the implementation of various internal tactics and the passage of legislation encouraging companies to recognise unions, the decline in membership by private organisations has persisted in recent years, albeit at a slower pace.
According to Fajana (2000), how unions adapt to the difficulties and opportunities given by changing work and employment relations will determine their level of impact in organisational performance in the next years.
1.2 Statement of Problem
Employee welfare is not a priority for most organisations in Nigeria, and most employees in the public sector frequently report low morale as a result of their employers’ uncompetitive welfare packages. This has frequently resulted in misunderstandings between employees and their bosses.
In most public sectors, employees are not properly involved in policy assessment and execution. This breakdown in communication is detrimental to the organization’s overall effectiveness because constant disagreement with management wastes valuable time and reduces productivity.
Unions in public organisations frequently negotiate poorly with their employers. Instead of making concrete and implementable decisions, their negotiations are often undefined and generic, making them unable to address efficiency across boards.
Management-employee interactions are a limitation that frequently leads to a breakdown in the law and, as a result, employee downsizing. This results in a significant loss of resources as valuable time is spent pleasing both employers and employees. Hence, the need for Trade Unionism and organisational effectiveness.
1.3 The purpose of the study
The study’s purpose was to:
ü Evaluate how trade unions assist in providing welfare measures for their members in an organisation.
ü Determine how trade unions advocate for worker participation in management.
ü Assess the extent to which trade unions contribute to reducing industrial disputes in an organisation.
ü Determine the extent to which management-employee relationships influence organisational productivity.
1.4 Research Questions.
The following research questions were posed during the course of this study:
ü How does a trade union assist in providing welfare measures for its members in an organisation?
ü Do trade unions call for worker participation in management?
ü To what extent do trade unions help reduce industrial disputes in an organisation?
ü Do management-employees relations influence productivity in the organisation?
1.5 Research Hypotheses
The following hypotheses were made and tested in this study
HO1: There is no substantial association between trade union and supply of welfare measures for their workers in an Organization.
HO2: There is no substantial association between trade union and demand for workers participation in management
HO3: There is no substantial association between trade union and reduction in industrial disputes.
HO4: There is no substantial association between Management-employees relations and productivity in the organization.
1.6 Significance of the Study
Effectiveness of trade unionism has produced a lot of dispute over time. The impact of these on effectiveness of organisations has become heated discussions amongst the educated and the illiterates; the rich and the not so rich; and the elites and nobility in the country.
There is a scarcity of work on the topic matter of this study hence the study is targeted at filling the gap.
Policy makers would find the academic piece a very useful guiding document when policies relevant to the management of employee-employer’s interaction are to be created.
For citizens,the research work would be a good enlightening piece for those who intend to know about the topic matter of the research study.
Researchers that are interested in this topic would find the book a helpful reference and beginning point for their research.
1.7 Scope of the Study
The study did a research on trade unionism and organisational effectiveness. The study was informed by the aim to numerically analyse the extent to which trade unionism influences effectiveness in an organisation. The study was limited to Nestle Nigeria Plc. in Lagos.
1.8 Operational Definitions of Terms
According to Ivancevich et al. (1994), compensation management encompasses all financial and non-financial rewards received by employees in exchange for their labour or services.
Conflict Resolution: This is an organised method of settling employer-employee problems, which are typically triggered by disagreements about pay packages or overall employee welfare.
Wage: This is the daily or weekly payment made in exchange for employment.
Organisational goals: These are objectives set by an organisation to improve its performance indexes. This could be long or short-term.
Katz and Kahn (1966) define organisation as an integrated social structure with the following three cardinal features:
Reward System: This refers to an organization’s current employee reward structure or system. It is typically directed by organisational policy.
Salary: This is the monthly payment made in exchange for employment.
The terminology below are defined as used in the study.
Individual commitment to the organisation is supported by the ideological reason or principles that underpin the norms and rules.
The members are functionally interconnected.
The norms of behaviour of members are governed by acceptable behaviour set by the authority structure and enforced by reward and sanctions;
Trade unions, often known as labour unions, are organisations of workers. The trade union’s leadership deals with employers on behalf of its members (rank and file members) and negotiates labour contracts with them.
This may include salary negotiations, work regulations, complaint procedures, rules regulating employee hiring, firing, and promotion, benefits, workplace safety, and policies.
The agreements reached by union leaders are binding for rank-and-file members, the employer, and, in some situations, other non-member employees.
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