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EFFECTS OF LABOUR MANAGEMENT RELATIONS ON WORKERS

PERFORMANCE IN AN ORGANISATION,A CASE STUDY OF

POWER HOLDING COMPANY OF NIGERIA.

BY

ONWU NONYELUM FELICIA

PG/MBA/10/54620

A DISSERTATION SUBMITTED TO THE DEPARTMENT OF

MANAGEMENT, FACULTY OF BUSINESS ADMINISTRATION,

UNIVERSITY OF NIGERIA ENUGU CAMPUS, IN PARTIAL

FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF

MBA IN MANAGEMENT

SUPERVISOR: PROF. UJF EWURUM

APRIL 2012

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CERTIFICATION

I, Onwu Nonyelum Felicia, a postgraduate student in the Department of

Management do hereby certify that the work embodied in this dissertation is

original and has not been submitted in part or full for any other Diploma or

Degree of this or any other University.

---------------------------- ----------------------------

Onwu Nonyelum F. Date

PG/MBA/54620

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APPROVAL

This is certify that this research topic: Effect of labour management relations

on workers performance in an organization, using Power Holding Company of

Nigeria as a case study was approved for Onwu Nonyelum Felicia with

registration number PG/MBA/54620 and is submitted to the department of

management in partial fulfillment of the requirements for the award of MBA in

Management

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DEDICATION

This piece of work is dedicated to our Lord Jesus Christ and our blessed virgin

Mary.

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ACKNOWLEDMENTS

I am grateful to Almighty God for his wisdom an knowledge, My immense

gratitude goes to my supervisor Prof, UJF Ewurum for his guidance all through

this work . Am also indebted to all my lecturers both within and outside my

department: Dr Ezigbo C.A, Dr Agbaeze, Dr Chukwu C.O, Dr Nnadi, Chukwu

B.I, Dr Ugwuoke, Dr Modebe.

I will also like to use this medium to thank my colleagues and friends in the

same department; Charity, Chinyere, Debora, Oluoma.

I also wish to thank my mum, brothers and sisters, Chido, Ndu, Ify, Nneka and

Uzo. My brother In-law and my little niece Chiamaka cannot skip this page.

I owe a lot of gratitude to my friends Nonye, Amaka, Stan, Ikenna, Joseph,

Chika for their prayers and support during the course of this propgramme.

Finally, I wish to thank all who in one way or the other supported me through

this programme

God bless you all.

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ABSTRACT

This study is aimed at analyzing the effect of labour management

relations on workers performance in an organization using power holding

company of Nigerian 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 base 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.

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TABLE OF CONTENT

Title page i

Approval ii

Certification iii

Dedication iv

Acknowledgement v

Abstract vi

Table of contents

List of table x

List of figures xii

CHAPTER ONE:

1.0 Introduction 1

1.1 Background of the study 1

1.2 Organizational background of PHCN 3

1.3 Organizational structure of PHCN 4

1.4 Statement of the problems 5

1.5 Objective of the study 5

1.6 Research questions 6

1.7 Hypothesis formulation 7

1.8 Significance of the study 8

1.9 Scope of the study 8

1.10 Limitation of the study 8

1.11 Definition of terms 9

Reference 10

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CHAPTER TWO

2.0 Review of related literature 11

2.1 An overview of labour management relations 12

2.2 Labour management relations and the management 12

2.3 Labour management relations and the employee 13

2.4 Effect of mutual relations between workers and management

on performance 15

2.5 Motivating labour 16

2.5.1 Special motivational package 18

2.6 Effect of labour participation in decision making 19

2.7 Effective communication 20

2.8 Leadership style 21

2.9 Trade Union 24

2.9.1 Weapons of the Union 24

2.9.2 Weapons of Management 25

2.10 Collective Bargaining 26

2.11 Operative Function of The personnel Department 27

References 30

CHAPTER THREE

3.0 Research Design and Methodology 31

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3.1 Introduction to the Study 31

3.2 Research Design Method 31

3.3 Area of Study 31

3.4 Population of the Study 31

3.5 Sample Size Determination 32

3.6 Instrument for Data Collection 32

3.7 Sources of Data/Method of Data Collection 33

3.8 Validation of the Instrument 33

3.9 Reliability of the Instrument 33

3.10 Method of Data Analysis 34

3.11 Questionnaire Distribution and Retrieval 35

References 36

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1 Presentation and Analysis of Data 37

4.2 Testing of Hypothesis 51

4.3 Summary of Result 66

CHAPTER FIVE: DISCUSSION, RECOMMENDATION AND

CONCLUSION

5.1 Discussion of Findings 66

5.2 Conclusion 67

5.3 Recommendation 68

5.4 Suggestion for Further Studies 69

Bibliography 70

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LIST OF TABLES

4.1.1 Table 1: Distribution and return of questionnaires. 37

4.1.2 Table 2: Sex of respondents 38

4.1.3 Table 3: Marital status of respondents 38

4.1.4 Table 4: Age of the respondents: 39

4.1.5 Table 5: Department of respondents 39

4.1.6 Table 6: Employment status of the respondents 40

4.1.7 Table 7: Length of service of respondents 40

4.1.8 Table 8: Response to Question Concerning the

Research Understudy 41

4.1.9 Table 9: Do you agree that mutual labour

management relations has any effect

on workers performance 42

4.1.10 Table 10: Is there a need for workers to participate

in decision 42

4.1.11. Table 11: Do you believe that allowing workers to participate

in decision making would give them a

sense of belonging. 43

4.1.12 Table 12: Does motivation make you and others to work

hard. 43

4.1.13 Table 13: What kind of motivational package do you

prefer 44

4.1.14 Table 14: What is the communication gap between

employees and management in your

organization. 45

4.1.15Table 15 Do you think that good communication enhance

smooth labour management relations. 45

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4.1.16 Table 16: Are your salaries paid as and when due 46

4.1.17 Table 17: Have your organization witnesses any strike 46

4.1.18 Table 18: If your answers to question (15) above is yes,

how many times has it occurred 47

4.1.19 Table 19 Do you agree that strike has an effect on

organizational performance: 47

4.1.20 Table 20: Which leadership style does your organization

operate 48

4.1.21 Table 21: Which leadership style will favour labour

management relations 49

4.1.22 Table 22: Do your organization have a personnel

department 49

4.1.23 Table 23: Is your personnel department performing

its duties. 50

4.1.24 Table 24: Do junior staff workers participate in decision

making in your organization 50

4.1. 25. Table 25: Does a cordial relationship exist between

labour and management 51

4.2.1 Table 26: Contingency table for hypothesis I: 52

4.2.2 Table 27: Computation of x2 for hypothesis I: 53

4.2.3 Table 28: Contingency table for hypothesis II: 55

4.2.4 Table 29: Computation of x2 for hypothesis II: 56

4.2.5 Table 30: Contingency table for hypothesis III: 58

4.2.6 Table 31: Computation of x2 for hypothesis III: 59

4.2.7 Table 32: Contingency table for hypothesis IV: 62

4.2.8 Table 33: Computation of x2 for hypothesis IV: 63

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LIST OF FIGURES

Fig 1.3 Organizational structure of PHCN 4

Fig 2.1 Abraham Maslow’s needs Hierarchy 15

Fig 2.2 Continuum of leadership behavior 23

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CHAPTER ONE

1.0 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

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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 management relations. Nel (2002) said that industrial democracy is

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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 5th

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,

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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;

GENERAL MANAGER/CEO

Senior Manager Senior Manager Senior Manager Senior Manager

Distribution Human resources Finance Audit

Manager Manager Manager Manager

Head of Technical Head of Head Finance Head Finance

Service Administrative Service

Principal Manager Principal Manager Principal Manager Principal Manager

Distribution Human Resources Finance Audit

Officer 1 Officer 1 Officer 1 Officer 1

Officer 11-V Officer 1I-V Officer 1I-V Officer 1I-V

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

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1.4 STATEMENT OF THE PROBLEM

The problem of the study is to determine the effect of labour management

relations 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 management relations 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

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an adequate mutual relationship between them and management, so PHCN is

experiencing some problems of poor labour management relations.

1.5 OBJECTIVES OF THE STUDY

The major objectives of this study include:

1. To ascertain the effect of a mutual relationship between management

and employees.

2. To highlight the effect of motivation on workers performance.

3. To determine the importance of labour management communication.

4. To examine the need for workers participation in decision making.

5. To ascertain the effect of strike on organizational performance.

6. 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.

1. Does a mutual labour management relation have any effect on workers

performance?

2. What is the effect of motivation on workers performance?

3. Does good communication enhance smooth labour management

relations

4. What is the importance of employee participation in management

decision making?

5. What are the effects of strike on organizational performance?

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6. How does the leadership style of an organization affect its labour

management relations?

1.7 HYPOTHESES FORMULATION

The following hypotheses have been formulated:

1. H0: Mutual labour management relations does not have any effect on

workers performance.

H1: Mutual labour management relations have an effect on workers

performance.

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

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

3. H0: Strike ahs no effect on organizational performance.

H1: Strike has an effect on organization performance.

4. H0: Motivation does not encourage workers to work hard.

H1: Motivation does not encourage workers to work hard.

5. H0: Good communication does not enhance smooth labour

management relations.

H1: Good communication enhances smooth labour management

relations.

6. H0: The leadership style of an organization affects its labour


H1: The leadership style of an organization affects its labour


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1.8 SIGNIFICANCE OF THE STUDY

The benefit of this study is as follows:

a. 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:

b. It will help management to know what it entails to improve performance

in an organization.

c. This study will help management to know the benefit of relating well

with its workers.

d. This study will motivate other researchers to go into further study on the

issue.

e. 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 management relations 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.

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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

1. Labour: The people who are available to perform work. The collection

of people who work or perform the work of an organization.

2. 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.

3. Performance: The way a job or task is done by an individual, a group

or an organization.

4. 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.

5. Organization: Is a group of people brought together for the purpose of

achieving certain objectives.

6. 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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REFERENCES

CIB Study text “Nature of Management” BPP publishing Ltd.

Daniel Heirtzell (2006), “Academic Dictionary Management”, India:

Academic Publsihers.

Geralk Cole, (2004), “Management theory and Practice”, London: Book

power /ELST Publishers.

Majoku J.O. (2006), “Power Sector in Nigeria: Past present Future”, PHCN

News, September and December.

Michael Armstrong, (1977), “Human Resources Management Practice”,

Kogan Page Publishers.

Osindele E.L.O. (2007), “What is Good for the Employee”, NEPA Review,

May.

Paul Mali, (2001) “Improving Total Productivity”, New York, Willey- Inter

Science Publication.

Public Relation Department (1992), “A Fact sheet of PHCN at 20,” Enugu:

October.

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CHAPTER TWO

2.0 REVIEW OF RELATED LITERATURE

2.1 AN OVERVIEW OF LABOUR MANAGEMENT RELATION

Labour management can be used as a substitute for the following terms

namely: union-employer relation, worker-employer relation or employee

relation. According to Akpala (1982:29) labour management relations is

concerned with the internal arrangement between employers and trade union in

a bipartite relationship within an industry or across industries or within an

enterprise to regulate their relations affecting employment and its

compensation, according to him labour management relation connotes a

relationship between workers, not as individuals but in their identity as the

employer. Okenwa C. P (2000) in her book concept of industrial relations in

Nigeria defined management labour relation as a relationship between workers

not as an individual but in their collective entity with the employer.

Management must relate with labour if the organization must survive the

absence of this relation will robe the organization of the workers loyalty and

high performance. Herman W. Stekraus, called it human relation and he

defined it as the working together of management and employees in the spirit

of mutual understanding and team work, with the definitions above, we can

now understand that when management and labour are integrated into group,

they will work harmoniously and productively for economic benefit and social

satisfaction of all.

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Labour management relations is part of industrial relations, but industrial

relations is broader, whenever an intervention by government as third party

occurs the relationship becomes more involved and is known as industrial

relations (Akpala 1982). Ukoha (1989: 185) said that industrial relations is the

relationship that exists between workers, employers and the government for the

purpose of determining the conditions under which work is done, therefore we

can state that industrial relations is the regulation of the employers relationship

by the workers or labour union, the employers or management and the

government or its agencies, the propose of which is the establishment of job

rules which specify the rights, duties and responsibilities of each other.

2.2 LABOUR MANAGEMENT RELATIONS AND THE

MANAGEMENT

Most management practitioners have come to recognize that paying attention to

employees in their organization is as important as any attention paid to the

technical side of their plans if not more important . Andre Carnegtie is beloved

to be the first to emphasis the value of the individual worker to an economic

system, he was said to heave rated workers higher than everything else in

importance.

There is not universal acceptable definition of management; the word has

different meaning depending on the context and purpose. The word

management was derived from the Italian word “managgiare” meaning to train

houses, Druker (1973) defined management as an objective function that ought

to be grounded in the responsibility for performance, according to MC

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Farland, management is the process by which mangers create, direct, maintain

and operate pruoose organization through systematic co-ordinate and control”

the definition that suited the researcher was the one defined by Mary Parker

Folleft (1920); she defined management as the arts of getting things done

through and with people.

[

Management should exercise certain powers and envoy some privileges, but

not at the detriment of its workers and the organization as a whole, totalitarian

attitude or being too bossy on workers does not constitute what can be rightly

called labour management relation. In the book human relation for

management edited by E. C. Busk, it is said that an employer, who is strict and

fair is usually respected by his workers, so management should be just, firm

and impartial towards things that concern its workers.

It should also be noted that a reasonable manager should always make

necessary arrangement to ensure that all materials required for the efficient

performance of the job are made available at the right time and place.

2.3 LABOUR MANAGEMENT RELATIONS AND THE EMPLOYEE

Every employee is important to an organization; putting personal touch to job

environment is a good element of labour management relations, for instance a

chat with a junior staff at his table by a top management might mean much to

the junior staff and bolster his sense of belonging and willingness to work

harder. Meanwhile as one considers the need to be reasonable, the employees

should also cultivate the right attitude to work by being willing to accept

change and pledge his loyalty as well.

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Section 1 of the labour decree 1974, defined labour as “a servant, an employee

or a worker” According to Ukoha (1989:185) he defined a worker as any

person who has agreed to render service to another and in the process of

rendering this service to obey his orders and to submit to his instructions and

directives for remuneration called wages, the labour code of United Republic of

Cameroun (1974) defined labour as any person who ahs undertaken to place his

gainful activity in return for a remuneration under direction and control of

another person who may be an individual, a private or public company or a

corporation who is styled the worker.

An employee who puts all his effort at work, expects good pay, conductive

condition, holiday and sick leaves, security of job and at present in Power

Holding Company of Nigeria (PHCN), there are benefits which workers enjoy

and it tend to improve their working relationship, these benefits are long

service award, souvenirs, provision of uniform to those entitled to wear them,

leave bonus, rent subsidy, vehicle and housing loans. When all these lack, there

is labour turnover, industrial dispute and conflict.

Eareless attitude to work result to poor performance at work, no matter how

vast the resources of an organization may be if it has not got capable and well

satisfied employees, it will scarcely be successful in its operation, hence the

need for a good labour management relation.

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2.4 EFFECT OF MUTUAL RELATIONSHIP BETWEEN WORKERS

AND MANAGEMENT ON PERFORMANCE

Performance is the measure of how resources are brought together in an

organization and utilized for accomplishing a set of result, performance cab be

effective and efficient only if there is a mutual relationship between workers

and management.

There is always a condition of service in every organizations together labour

and management should determine the term and condition under which

employees will work, how much employees are paid, when t hey must come to

work, when they are to leave work and how promotion are to be done, if both

parties fulfill their own part there will definitely co-exist peacefully.

In the year 2003, the managing director of PHCN, Engr J. O. Majoku went

around to personally acknowledge and appreciate the staff contribution to the

management’s success, in 2004 he went round again and even went a step

further to write letter to the field staff in which he highlighted management

achievement, commitments and projections, his effort to relate to workers

delighted the workers, money alone can only buy machinery, tools, man’s

physical presence in an organization, but cannot buy initiative, loyalty and

enthusiasm.

Cooperation on both sides will lead to better wages, good condition of work,

increased productivity, industrial peace and more importantly increased

performance.

2.5 MOTIVATING LABOUR

Managers must motivate people to join the organization, remain in the

organization, perform well and come to work regularly. Motivation are factors

that causes, channel and sustain an individuals behavior, qualified manpower

must be attracted and maintained i

defined motivation ad the psychological drive that direct someone towards an

objective, managers should understand that the continuous success of their

business depends on being able to attract and retain staff that i

committed to the business; employees who are not interested and bored would

not provide good services, would make mistakes and damage the

organization’s reputation.

In view of this, the motivation theory by Abraham Maslow will be explained

for further understanding of the effects of motivation on workers performance.

He grouped needs into hierarchy arranged in an ascending order starting from

low level needs to higher level needs.

Fig: 2.1 Abraham Maslow’s Needs Hierarchy

MOTIVATING LABOUR

gers must motivate people to join the organization, remain in the



must be attracted and maintained in a n organization Hodgetts (1989:40)



business depends on being able to attract and retain staff that is willing and






low level needs to higher level needs.

Fig: 2.1 Abraham Maslow’s Needs Hierarchy

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gers must motivate people to join the organization, remain in the



n a n organization Hodgetts (1989:40)



s willing and






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Management may carter for physiological needs by offering adequate wages

and salary, acceptable working hours and working condition like heat,

ventilation and rest room. Need for safety and security can be satisfied by

management initiative to provide life insurance, job security, cost of living

increment and pension plans, social needs, provide opportunity for employees

to interact, self esteem need will be achieved by giving workers challenging

task and providing positive feedback on their performance and lastly to satisfy

self actualization, the employees should be given an opportunity to shape their

own jobs and freedom of expression.

To solve a problem one needs to understand not only the enormity of the

problem, but also the different dimension of the problem. There is also the

problem of health and training of workers in an organization as a means of

motivation. The need for safety and health precaution cannot be

overemphasized in an engineering firm like PHCN, there is need for safety

equipment that are needed to do the job , but in situations where management

do not provide these equipments, the workers would rather not work than risk

their life doing the work.

Management of PHCN tries to make it their duty to train workers especially the

technical staff that needs information on procedures where exposure to

electricity current cannot be eliminated. One has to take stock of the losses

ands cost implications of any electrical industrial accident, in terms of death

benefits (where lives are lost), loss of man hours, repairs, replacement of

equipment damaged as a result of handling or operation by non trained or

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inadequately trained staff, to appreciate the need for training staff especially in

an industry such as PHCN.

So motivating workers through health care, training, job enrichment,

participation and increased incentives is both for the benefit of management

and labour, and also to enhance smooth relations between management and

labour

2.5 .1 SPECIAL MOTIVATIONAL TECHNIQUES

1. Money: Money can never be overlooked as a motivator whether in the

form of wages, bonuses, company paid insurance or any other incentive

pay that may be given to employees for performance, in spite of the

variation to eh place of money in motivation among scholars, it is worthy

to mention that money will still remain a strong means of motivating

workers particularly where workers live below poverty line.

2. Reinforcement: The teaching of re-enforcement as a means of motivation

could be credited to the words of B. F. Skinner, he states that a worker

would want to repeat a performance if he/she receives recognition or

praise for such an act, on the other hand, whenever a worker is

reprimanded for an act, the tendency is that he/she will drop it since it was

not approved of.

3. Job Enrichment: This type of motivational technique points to the

importance of making jobs challenging and meaningful. Job enrichment

is related to Hertzberg’s theory of motivation in which factors such as

challenge, achievement and responsibility are seen as real motivators,

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workers can be enriched by giving them more feedback in decision issues,

by encouraging interaction between workers and giving workers the

feeling of personal responsibility for their task and giving them feedback

on their job performance.

2.6 EFFECT OF LABOUR PARTICIPATION IN DECISION MAKING

Employees should be afforded the opportunity of directly or indirectly

participating in decision making, it is a matter of social justice to let workers

shave a say, if in nothing, but at least matters affecting them an employee will

work hard to achieve an objective knowing he was involved in its formulation;

a means of participation not only increases employee’s contribution to problem

analysis, but also enhances their ability to make important operational

decisions.

Workers participation in decision making in an organization promotes good

industrial relations, improves commitment and production. Other words, in

labour relations, empowerment in the work place is allowed and employers and

employees are seen as partners. Management see participation as a way of

increasing the commitment and control of workers, trade unions see it as a way

of increasing workers influence and control in the work place, workers see it

as a way of overcoming employer-employee conflict and of achieving co-

operation between management, trade union and workers.

Nel (2002) opines that industrial democracy is important to workers because it

results in an increased share in the control of organization in the economy and

community as a whole. According to Pons and Deale (1998) industrial

32

democracy refers primarily to participation in management and participation in

decision making process by the workers in an organization, in the same vein,

Elliot (1988) as quoted in Swanepol et al (200) defined participation as the act

of claiming right to have a say over matters affecting their work lives.

Industry democracy is a compelling aspect of management decision making,

the reason for the involvement of workers in decision affecting that affairs of

the organization is hinged on the fact that the workers are regarded as partners

in progress by management, it is also important for management to involve

workers in decision, in order to ensure high level of morale and performance.

2.7 EFFECTIVE COMMUNICATION

As a manager, your prime responsibility is to get things done through people,

however sound your ideas or well reasoned your decision are, they become

effective only as they are transmitted to others and achieve action or re-action,

communication is specifically needed to establish and distribute or spread

widely the goals of an organization, develop and appraise members of the

organizational and control performance. It is important for information to flow

freely between management and labour.

The purpose of communication in an organization is to effect change, to

influence action towards the welfare of the organization. Communication is

needed to establish and disseminate goals, develop plans for their

achievements, organize human and other resources in the most effective and

efficient way, select, develop and appraise members of the organization and

control performance.

33

In an effective communication, communication flows in various directions,

downwards, upwards and crosswise. Traditionally downwards communication

was emphasized but if communication flows only downwards, problems will

develop, in fact one could argue that effective communication has to start with

the subordinate and this means primarily upward communication,

communication also flows horizontally, that is between people on the same or

similar organizational levels and diagonally involving persons forms different

levels who are not in direct reporting relationship with one another.

Maintenance of effective communication rest squarely with the management,

also labour should try as much as possible to communicative its position with

management at all times.

The researcher observed that PHCN Enugu headquarters maintain an effective

communication network. Management through circulars, meetings radio and

newspaper pase information to their subordinates.

2.8 LEADERSHIP STYLE

Leadership is an important aspect of managing, the ability to lead effectively is

one of the keys to an effective manger. The essence of leadership is

followership, in other words it is the willingness of people to follow that makes

a person a leader, employees tend to follow those whom they see as providing a

means of achieving their own desires, wants and needs.

The leadership style of an organization can affect its general performance.

Leadership style refers to leaders’ manner of acting in a work situation,

according to fielder; leadership style is contingent on the personality of leader.

34

Leadership style could be autocratic, democratic or laissez -faire leader.

1. Autocratic Leader- This type of leader centralizes power and decision

making, he commands and expects compliance, he is dogmatic and leads

by the ability to withhold, give rewards and punishments.

2. Democratic or Participative Leader: Decentralizes authority by taking

decision with employees in form of participation, leaders here consult

with subordinates on proposed term of action and decision, and

encourages participation from them.

3. The Laissez-Faire Leader: This leader avoids power, they are

sometimes called leadership of “Mr. Right”, they allow the groups to

establish its own goals and work out its own problems.

Lippitt and White (196)) investigated the effects of leadership on productivity

in different groups, they concluded that:

a. Work oriented conversation was the greatest in a democratic group, less

in an autocratic group and least in a laissez-faire groups.

b. The amount of work actually done was greatest sin an autocratic group

and in a laissez-fare group, motivation was strongest in a leader left the

room, however motivation was not sufficient to increase output above

the level of the autocratic group.

c. Hostility and discontents where greatest in an autocratic group, people in

an autocratic group where more dependent on their leader, more

35

submissive, group mindedness and friendly playfulness where greatest

in a democratic group.

Figure 2.2 Continum of Leadership Beahaviour

MANAGER

ABLE TO

MAKE

DECISIONS

WHICH NOW

MANAGER

ACCEPTS

MANAGER

MUST SELL

DECISION

BEFORE

GAINING

ACCEPTANCE

MANAGER

PRESENTS

DECISION

BUT MUST

RESPOND

TO

QUESTIONS

FROM NOW

MANGERS

MANGERS

PRESENTS

TENTATIVE

DECISION

SUBJECT TO

CHANGE

AFTER

NON-

MANAGERS

MANAGERS

PRESENTS

PROBLEM

GETS

IMPUTS

FROM NON

MANAGERS

MANGERS

DEFINES

LIMITS

WITHIN

WHICH

NON-

MANGERS

MAKE

MANAGERS

AND

NON-

MANAGERS

JOINTLY

MAKE

DECISION IN

THE

ORGANI-

SATIONS Source: Harvard Business Review, Exhibit from “How to Choose A

Leadership Pattern” By Robert Tannenbalm and Schmat

In Figure 2.2 we see leadership style involving a variety of style ranging from

one that is highly boss-centred to one that is subordinate-centred, the style vary

with the degree of freedom a leader or manager grants to subordinates.

It is pertinent to note that employees’ performance in an organization to an

extent depends on leadership styles; it is therefore left for the management to

know the required style for effective management of men and materials, so as

to achieve a suitable result.

36

In PHCN the leadership style used by management is democratic leadership

and workers prefer it because it gives the room to say something.

2.9 TRADE UNION

Trade Unions are the association formed and managed by workers, the trade

union is normally established by workers and run by their representatives for

the principal purpose of using them to protect their interest and aspirations,

trade union as indicated by Freeman and Medoff (1994) provide workers with

“a collective voice” to make this wishes known to management and thus

achieve actual and desired condition.

A trade union is a voluntary organization of workers who aim to protect and

promote economic, social and political interest of its members, mainly by

means of collective bargaining with employers, according to the trade union

decree 1973, trade union is any combination of workers or employees whether

temporary or permanent, the purpose of which is to regulate the terms ands

conditions of employment of workers.

Union can assist members in achieving the need for love, affection and

belonging, educational benefits can also be obtained through seminars,

conferences and workshops organized by the unions, the union can achieve all

this and more, since it is better placed and stronger than the individuals.

2.9.1 WEAPONS OF THE UNION

The trade unions have certain strategies and tactics used to extract greater

concession from employers, these strategies includes:

37

1. Strike: this is the partial or complete refusal to work or obstruction of

work by persons who are or have been employed by the same employer

or by different employers for purpose of remedying a grievance or

resolving a dispute in respect of any matter of mutual interest between

employer and employee, when a strike is embarked upon by a labour

union, there arises an industrial or trade dispute arising from some

unresolved disagreement between the union and management in an

organization, in most cases the disputes are resolved through negotiation

or collective bargaining.

2. Picketing: Is a form of union powers in which large posters, play cards

or signs are carried by the union workers, the picketing maybe

informational in order to inform the public about the unfair practices of

their employer.

3. Primary Boycott: Refers to the economic pressures, in which unions

attempt to influence people not to buy from a given firm.

4. Secondary Boycott: Is a situation where economic pressure, is placed

on another firm to prevent it from doing business.

2.9.2 WEAPONS OF MANAGEMENT

The following are the weapons used by the management to prevent the union

form demanding too much concession:

1. Lockout: The employer closes its doors to union members, to cause

them loss of work and wages.

2. Injunction: A court order that restrain the union form engaging in some

activities such as strike, boycott and picketing.

38

3. Blacklisting: This has been unlawful for use in labour management

relation, blacklisting is a list of undesirable employees who have

engaged in organizing activities for the union, the list is circulated to

other employers to reduce the chance of listing the blacklisted workers

getting employment in other firms.

4. Yellow Dog Control: Is an agreement signed usually as a condition of

service, whereby they promise not to join a union while working for

their employer.

2.10 COLLECTIVE BARGAINING:

Collective bargaining is regarded as the process by which employers meet in

conference from time to time, to agree upon terms of employment, under which

labour shall be performed. Davey quoted by Egbo (1987) views it as those

formal and informal process of accommodation through which an employer or

a group of employers and their organized workers attempt to establish a mutual

set of relationship which will allow them to achieve their respective goals,

collective bargaining is intended to be a mutual give and take between

representatives of two organizations for mutual benefits of both, in collective

bargaining negotiation about the working condition and terms of employment

is between the employer and the worker.

Since labour management relations must be maintained, and since conflict is

unavoidable, it becomes important for management to think carefully before

making decision, conflict between trade union and management is always a

possibility due to the fact that their interest sometimes differ, therefore a

39

process must be devised for the handling of these conflict on an on going basis,

so collective bargaining has been viewed as the process for managing this

complex relationship.

According to Akubuiro (2003), collective bargaining can be viewed as a

process which determines what terms labour will be sold under what terms

labour will continue to be supplied to a particular company, he said that it

includes all methods by which groups come together to attempt to reach on an

agreement in matters by a process of negotiation.

It is essential that management regularly review their collective bargaining

structure, decide not only what extent bargaining will take place, but also at

what level it prefers to negotiate certain issues. The bargaining structure has

to be appropriate not only to the organizations business strategy and structure

but also and especially to labour relations.

2.11 OPERATIVE FUNCTION OF THE PERSONNEL

DEPARTMENT

Personnel management also called human resource management is the

management of people at work, it is the part of management which is

concerned with people, it is the effective and efficient utilization of human

resource to accomplish the pre-determined objectives of an organization,

personnel management involves recruitment, selection, training and

development of the needed labour force, Elippo (1971) defined personnel

management as the application of management function in the process of

40

procurement, development, compensation, integration and maintenance of

human resources in an organization.

The personnel department is a staff and line establishment the personnel

department advices other department on personnel matters, this department

takes care of the engagement and dismissal of employees and the keeping of

record about them.

In small organizations the managers takes care of the responsibility of

personnel function, they try to combine effectively personnel functions with

their primary responsibility but as the activities increases in number and

complexity, mangers may not be able to face the challenges. Therefore a staff

specialist will be employed to assist the mangers on their personnel problems.

The role of the personnel manager is advisory and administrative as a

specialist, it is his duty to interpret the behaviour of individuals within the

organization and convey the implication of such behaviour to management, the

personnel manager also carries out administration and implementation of

personnel polices and programmes of the organization.

The duties of the personnel department in an organization are as follows:

1. Formulation of basic personnel polices and procedures, for effective

utilization of the available labour force, such policies serve as guidelines

for employer relationship.

2. Advising management on principles governing employer-employee

relation.

41

3. Supplying the organization with adequate staff, by the right people in

the right position and at the right time.

4. Assisting the organization in job evaluation.

5. Providing personnel services such as eating facility, recreation

opportunities and insurance policies.

6. Maintaining staff discipline and dealing with the union.

7. Keeping records on the attitudes of the workers.

42

REFERENCES

Bharskar Chatterjee “Human Resources Management” Sterling Publishers

Chandan J. S. (1987) “Management Theory and Practice”, Vikas Publishers.

Grace Nwobodo (2002), “The Importance of Staff Training in the Electricity

Industry”, NEPA News, October, pg. 6.

Imaga E. U. L. and Ewurum U. J. F. (1998), Business Management Topics”,

Oktek Publishers.

James A. f. S. “Management”, Published by Pearson Education Inc.

Laurie J.M. (1985), “Management and Organizational Behaviour”, England:

Published by Pearson Educational Ltd.

Lawal Abdulazeez A. (1993), “Management in Focus”, Nas Prints Publishers.

Ltd.

Mark Thomas, (2006), “Curus on Leadership”, Thorogood Publishing.

Ndidi Mbah, (2004), “Are You Satisfied With Your Job”, NEPA News, March

May pg. 28.

Osindele E. I. O. (2007), “Human Relation in an Industrial Establishment like

NEPA,” NEPA Review, May, pg. 24.

Tosa Usuanlele K. (2004), “The Importance of Greasing The Workers Elbow”,

NEPA Review, Pg. 10.

Unamaka P. C. and Ewurum U. J. F. (1995), “Business Administration,”

Precision Printers and Publishers.

43

CHAPTER THREE

3.0 RESEARCH DESIGN AND METHODOLOGY

3.1 INTRODUCTION TO THE STUDY

This chapter focuses mainly on the method employed in securing information

on the research topic, emphasis was laid on research design and method, area

of study, population of the study, sample size determination, instrument,

reliability of the instrument, method of data collection, method of data analysis

and questionnaire distribution and retrieval.

3.2 RESEARCH DESIGN METHOD

The research method adopted in any research study to an extent is dependent

on the nature and objectives of the study. Since this study centers on “the

effect of labour management relations on workers performance in an

organization”, the survey research study will include questionnaires, the

questionnaires will b structured and the selection of respondents will be based

on the sampling method whereby a representative part of the population will be

selected and studied with a view to making references and generalization about

the population.

3.3 AREA OF STUDY

The geographical coverage of this research study is Power Holding Company

of Nigeria (PHCN) in Enugu State, basically its Ogui Business Unit at Okpara

Avenue.

3.4 POPULATION OF THE STUDY

The population size of this study has been drawn form the management staff

and employees of Power Holding Company of Nigeria at Ogui Business Unit,

44

the Population size is two hundred and sixty six (266) people, and it was gotten

form its various department namely; Distribution (103), Marketing (86),

Administration (42), Accounts (24) and Computer (11) Workers, Making the

total population to be 266.

3.5 SAMPLE SIZE DETERMINATION

In determination of sample size, YARO YAMANI’S statistical formula (1964)

will be used as stated below.

n = �

��(�)�

Where:

n = the Sample Size

N = Population

e = Margin of error (5%)

I = Constant

Hence

n = �

��(�.�)�

n = ��

��(�.�)�

n = ��

�� .��

n = ��

��.��

n = ��

�.��

n = 159.7597598

n = M (appropriate) = 160

n = 160

3.6 INSTRUMENT FOR DATA COLLECTION

The instrument used for data collection was questionnaire, the questions used

in the questionnaire were targeted at the respondents with a view to satisfying

the purpose of the study and providing analysis, the questions dwelled on

45

research questions, objectives of the study, research hypothesis and personal

questions.

3.7 SOURCES OF DATA/METHOD OF DATA COLLECTION

The sources form which data was obtained or collected for this research work

are primary and secondary sources.

Primary Sources

The primary sources of data collection was based on information gathered

directly form management and employees through questionnaires, another

primary source, is the interview held with some of the management and

employees in the organization.

Secondary Sources

The secondary sources of data were collected from already written works, both

published and unpublished that have relevance to the subject matter, these

includes text books, magazines, newspapers and various journals.

3.8 VALIDATION OF THE INSTRUMENT

To improve the validity of the instrument the expert validation and content

validation was used, the expert validation was sought through the researchers

supervisor who gave an expert advice about the area of study, content

validation of this research study was based essentially on judgment alone.

3.9 RELIABILITY OF THE INSTRUMENT

To ensure the reliability of the instrument test-retest method was used, since it

is more effective than other methods, questionnaires were administered at

different times to the same respondents, the scores from the respondents

46

correlated together showing that the results were consistence, which indicates

that the instrument was reliable.

3.10 METHOD OF DATA ANALYSIS

This will be based on the data collected and survey made. The researcher made

use of tables, percentages and statistical method of distribution, the table is

used to represent the number of respondent and the degree of responses to each

question in percentages, thereafter chi-square (X2) statistics will be used for

testing the hypothesis.

The chi-square is represented by the sign “X” it is defined as the sum of the

total of the ration of differences between observed and expected values, and it

is represented by the formula below

X2 =

∑(��)�

��

Where =

Fo = Observed Frequency

Fe = Expected Frequency

X2

= Chi-square distribution

Df = Degree of freedom.

The degree of freedom “df” is computed thus:

Df = (R-1) (C-N)

Where

47

R = Number of rows in the table

C = Number of columns in the table

Expected frequency (Fe) = (�� )(�� )

��

The test of hypothesis will be carried out at 5% level of significance, the

decision rule is that if X2 calculated is less than (<) the critical value, we accept

the null hypothesis (H0) and reject alternate hypothesis (H1), but if the

calculated value, we reject null hypothesis (H0) and accept alternate hypothesis

(H1).

3.11 QUESTIONNAIRE DISTRIBUTION AND RETRIEVAL

The questionnaires were constructed in simple English language, the

respondents were assured the confidentiality of the information given, question

16 were questions dealing with personal that will lead to information’s needed

for the research under study. Questionnaires were distributed, and 38

questionnaires were either not fully completed or not returned by the

respondents, the total number of questionnaires returned was 122.

48

REFERENCES

Amaechi U. J. (2005), “Basic Business Statistics”, Precision Publishers.

Chukwuemeka E. E. O. (2002), “Research methods and Thesis writing,” HRV

Publishers.

Unamka P.C. and Chukwu (2002),“Analytical Management”, Seatil Publishers

Ltd.

49

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 PRESENTATION AND ANALYSIS OF DATA

This chapter deals with the analysis of research findings through the data

collected from questionnaires administered and testing of hypothesis as well as

interpretation. Questionnaires were administered to various departments, 160

questions were distributed but only 122 were fully filled and returned which

was used for the analysis.

Analysis of Data From Power Holding Company of Nigeria (PHCN)

Table 4.1: Distribution and Return of Questionnaires

Options No of Responses Percentage (%)

Returned 122 76

Not returned 38 24

Total Distributed 160 100

A total of 160 questionnaires were distributed, which represents the total

sample size, 122 copies representing 76% of the sample size were properly

completed and returned, while 38 copies of the questionnaires were not

returned which represents 24% of the sample size.

50

Table 4.2: Sex of Respondents


Male 75 61.5

Female 47 38.5

Total 122 100

The table above shows that 75 respondents representing 61.5% were male,

while 47 respondents representing 38.5% of the sample size were female.

Table 4.3: Marital Status of Respondents


Single 34 28

Married 88 72

Total 122 100

The table above shows that 34 of the respondents representing 28% are single,

while 88 of the respondents representing 72% are married; this goes to suggest

that the bulk of the workers are married.

51

Table 4.4: Age of Respondents


20-30 years 24 20

31-40 years 45 37

41-50 years 38 31

51 and above years 15 12

Total 122 100

From the table above, the number of people that falls between 20-30 years is 24

respondents representing 20%, the number that falls between 31-40 years is 45

respondents representing 37%, 38 respondents representing 31% choose the

options 41-50 years while 15 respondents were 51 years above represented by

12%.

Table 4.5: Department of the Respondents


Distribution 42 34

Marketing 28 23

Administration 35 29

Account 11 9

Computer 6 5

Total 122 100

52

The table shows that 34% of the respondents are from distribution, 23% from

marketing, 29% from administration, and 9% from account department while

5% of the respondents are from computer department.

Table 4.6: Employment Status of the Respondents


Junior staff 58 47.5

Senior staff 41 33.6

Management staff 23 18.9

Total 122 100

From the above analysis, the junior staff has 58 respondents representing

47.5% the senior staff has 41 respondents representing 33.6%, while the

management staff has 23 respondents representing 18.9%

Table 4.7: Length of Service of Respondents


1-4 years 28 23

5-8 years 40 33

9 years and above 54 44

Total 122 100

53

The table shows that 28 respondents have worked between 1-4 years

represented by 23%, 40 respondent represented by 33% have worked between

5-8 years, while 54 respondents have worked from 9 years and above, which is

represented by 44%.

Table 4.8: Response to Questions Concerning the Research Understudy

Question 7: Is there a mutual relationship between labour and management in

your organization?


Yes 66 54

No 43 35

Undecided 13 11

Total 122 100

The table above shows that 66 respondents representing 54% agreed that there

is a mutual relationship between labour and management in their organization,

43 respondents disagreed to this representing 35%, while 13 respondents were

undecided about their opinion which represents 11% of the sample size.

Question 8: Do you agree that mutual labour management relations has any

effect on workers performance?

54

Table 4.9


Yes 94 77

No 21 17

Undecided 7 6

Total 122 100

The table shows that 94 respondents constituting 77% of the sample, agree that

mutual labour management relations has an effect on workers performance, 21

respondents representing 17%, disagreed, while 7 respondents representing 6%

could not decided whether to agree or not.

Question 9: Is there a need for workers to participate in decision making?

Table 4.10


Yes 80 73

No 21 17

Undecided 12 10

Total 122 100

The table above shows that 89 respondents represented by 73% agreed that

there is a need for workers to participate in decision making. 21 respondents

represented by 10% of the respondents were undecided about their opinion.

55

Question 10: Do you believed that allowing workers to participate in decision

making would give them a sense of belonging?

Table 4.11


Yes 109 89

No - -

Undecided 13 11

Total 122 100

From the table above, 89% of the respondent agreed that allowing to participate

in decision would give them a sense of belonging; none disagreed, while 13

respondents representing 11% choose the option undecided.

Question 11: Does motivation make you and others work hard?

Table 4.12


Yes 117 96

No 5 4

Undecided - -

Total 122 100

56

The table shows that 117 respondents representing 96% agreed that motivation

will make them and others work hard, 5 respondents represented by 4%

disagreed with it, while no respondent choose undecided.

Question 12: What kind of motivational package do you prefer?


Money 32 26

Participation in

decision making

27 22

Praise 12 10

Good working

condition

51 42

Total 122 100

The table above indicates that 32 respondents represented by 26% choose

money as the motivational technique they prefer, 27 respondents represented

by 22% choose participation in decision making, 12 respondents represented by

10% choose praise, while 51 respondents choose good working condition as the

motivational technique they prefer and it was represented by 42%.

Question 13: What is the communication gap between employees and

management in your organization?

57

Table 4.14


Wide 82 67

Narrow 40 33

Total 122 100

From the table above, we see that 82 respondents represented by 67% saw the

communication gap between management and labour as wide, while the

remaining 40 respondents represented by 33% saw the communication gap as

narrow.

Question 14: Do you think that good communication enhances smooth labour

management relations?

Table 4.15


Yes 122 100

No - -

Undecided - -

Total 122 100

The analysis above shows that 122 respondents represented by 100%, agreed

that good communication enhances smooth labour management relations, while

none of the respondents choose the option No and Undecided respectively.

58

Question 15: Are your salaries paid as an when due?

Table 4.16


Yes 89 73

No 24 20

Undecided 9 7

Total 122 100

The table shows that those who agreed that their salaries are paid as and when

due are 89 in number, represented by 73%, 24 of the respondents represented

by 20% insisted that their salaries are not paid as and when due, the remaining

9 respondents were undecided about their opinion.

Question 16: Have your organization witnessed any strike?

Table 4.17


Yes 122 100

No - -

Undecided - -

Total 122 100

59

The table above shows that all the respondents constituting of 122 people

where in agreement that their organization has witnessed strike, which

represents 100% of the sample size, there was none for No and Undecided.

Question 17: If your answer to question (15) is yes how many times has it

occurred?

Table 4.18


Once 12 10

Twice 31 25

More than twice 79 65

Total 122 100

From the table above, 12 respondents represented by 10% said that they have

witnessed strike once, 31 respondents represented by 25% were of the opinion

that their have witnessed strike twice, while 79 respondents being 65% said

that they have witnessed strike more than twice.

Question 18: Do you agree that strike has an effect on organizational

performance?

Table 4.19


Yes 92 75.4

60

No 27 22.1

Undecided 3 2.5

Total 122 100

The table shows that 92 respondents representing 75.4% believed that strike

has an effect on organizational performance, 27 respondents representing

22.1% did not see any effect strike has on organizational performance, while 3

respondents represented by 2.5% were undecided.

Question 19: Which leadership style do your organization operate?


Autocratic 40 32.7

Democratic 74 60.7

Laissez-faire 8 6.6

Total 122 100

The table above indicates that 32.7% of the respondents choose autocratic style

of leadership, 60.7% argued that it is a democratic style of leadership that is

being practice, and respondents representing 6.6% suggested that it is a laissez-

faire style of leadership that is being practiced in their organization.

Question 20: Which leadership style will favor labour management relations?

Table 4.21

61


Autocratic 22 18

Democratic 100 82

Laissez-faire - -

Total 122 100

From the table above, 22 respondents representing 18% choose autocratic

leadership style as the of leadership that will favour labour management

relation, 100 respondents representing 82% choose democratic leadership style

and none choose laissez-faire.

Question 21: Does your organization have a personnel department?

Table 4.22


Yes 122 100

No - -

Undecided - -

Total 122 100

The above table shows that 122 respondents representing 100% agreed that

power Holding Company of Nigeria has a personnel department, no respondent

choose the options No and Undecided respectively.

62

Question 22: Is your personnel department performing its duties?

Table 4.23


Yes 88 72

No 34 28

Undecided - -

Total 122 100

The table above shows that 88 respondents representing 72 agreed that the

personnel department in their organization is performing its duties, 34

respondents representing 28% said that the personnel department are into

performing their duties, no respondent choose the option undecided

Question 23: Do junior staff workers participate in decision making in your

organization?

Table 4.24


Yes 31 25

No 68 56

Undecided 23 19

Total 122 100

63

The table above shows that 31 respondents represented by 25% agree that

junior staff workers are allowed to participate in decision making in their

organization, 68 respondents represented by 56% disagreed, while 23

respondents represented by 19% were undecided about their opinion.

Question 24: Does a cordial relationship exist between labour and

management?

Table 4.25


Yes 38 31

No 65 53

Undecided 19 16

Total 122 100

The table above shows that 38 respondents representing 31% agreed that a

cordial relationship exist between labour and management, 65 respondents

representing 53% did not agree, 19 respondents representing 16% choose the

option undecided.

4.2 TESTING OF HYPOTHESES

This section is devoted to the testing of hypothesis stated in chapter one, in

order to validate the relationship between labour and management. As

indicated earlier in chapter three, the testing will be done using chi-square (x2)

at 5% level of significance. The chi-square formula is

X2 =

Σ(��)�

��

64

Where

X2 = Chi square distribution

Fo = Observed frequency

Fe = Expected frequency

Hypothesis I

Ho: Mutual labout management relations does not have an effect on workers

performance.

Hi: Mutual labour management relations has an effect on workers

performance.

In testing the hypothesis, responses from question 8 of the questionnaire will be

used.

Table 4.26: Contingency Table for Hypothesis I

Options Junior staff Senior staff Management

staff

Total

Yes 51 27 16 94

No 3 13 5 21

Undecided 4 1 2 7

Total 58 41 23 122

The frequencies expected are computed thus

Fe = �� !��

��

"# $

�� = 44.7

"# #�

�� = 31.6

"# �%

��= 17.7

65

�� $

��= 10

�� #�

��= 7.1

�� %

��= 4

� $

��= 3.3

� #�

��= 2.4

� �%

��= 1.3

Table 4.27: Computation of X2 for Hypothesis I

S/N Fo Fe Fo – Fe (Fo-Fe)2 (-. − -01

-0

1 51 44.7 6.3 39.69 0.8879

2 27 31.6 -4.6 21.16 0.6696

3 16 17.7 -1.7 2.89 0.1633

4 3 10 -7 49 4.9

5 13 7.1 5.9 34.81 4.9028

6 5 4 1 1 0.25

7 4 3.3 0.7 0.49 0.1485

8 1 2.4 -1.4 1.96 0.8167

9 2 1.3 0.7 0.49 0.3769

13.1157

Computation of Degree of Freedom (DF)

df = (R-1) (C-1)

Where R= Rows

66

C = Columns

= (3-1) (3-1)

= (2) (2) = 4

df = 4

From the table, 4 degree of freedom at 0.05 is 9.488,

Therefore x2 critical value = 9.488

X2 calculated value = 13.1157

Decision Rule

Do not reject null hypothesis (Ho) if the calculated value of x2 is less than (<)

the critical value of x2 and reject alternate hypothesis (Hi). Reject null

hypothesis (Ho) if the calculated value is greater than (>) the critical value of x2

and accept alternate hypothesis (Hi)

DO NOT

REJECT

REJECT

9.488

Critical value

67

Decision: since the calculated value of 13.1157 is greater than the critical value

of 9.488, the null hypothesis (Ho) which states that mutual labour management

relation does not have an effect on workers performance should be rejected,

while alternate hypothesis (Hi), which states that mutual labour management

relation have an effect on workers performance is accepted.

Hypothesis II

Ho: There is no need for workers participation in decision making

Hi: There is need for workers participation in decision making

In testing the hypothesis, responses from question 9 of the questionnaire will be

used.

Table 4.28: Contingency table for hypothesis II


staff

Total

Yes 41 36 12 89

No 7 5 9 21

Undecided 10 0 2 12

Total 58 41 23 122

The frequency expected (Fe) are computed thus:

68

Fe = �� !��

��

Fe

$" $

�� = 42.3

$" #�

�� = 30

$" �%

��= 16.8

�� $

��= 10

�� #�

��= 7.1

�� %

��= 4

�� $

��= 5.7

�� #�

��= 4

�� %

��= 2.3

Table 4.30: Computation of X2 for Hypothesis II

S/N Fo Fe Fo – Fe (Fo-Fe)2 (-. − -01

-0

1 41 42.3 -1.3 1.69 0.0399

2 36 30 6 36 1.2

3 12 16.8 -4.8 23.04 1.3714

4 7 10 -3 9 0.9

5 5 7.1 2.1 4.41 0.6211

6 9 4 5 25 6.25

7 10 5.7 4.3 18.49 3.2439

8 0 4 4 16 4

9 2 2.3 -0.3 0.09 0.0391

17.6654

69


df = (R-1) (C-1)

Where

R = Rows

C = Columns

= (3-1) (3-1)

= (2) (2)

df = 4

From the table, 4 degree of freedom at 0.05 is 9.488


Decision Rule



DO NOT

REJECT

REJECT Ho

9.488

Critical value

70

hypothesis (Ho) if the calculated value is greater then (>) the critical value of x2

and accept alternate hypothesis (Hi).

Decision: Since the calculated value of 17.66754 is greater than the critical

value of 9.488, the null hypothesis (Ho) which states that there is no need for

workers participation in decision making should be rejected, while the alternate

hypothesis (Hi), which states that there is no need for workers participation in

decision making is accepted.

Hypothesis III

Ho: Strike has no effect on organizational performance

Hi: Strike has an effect on organizational performance

In testing the hypothesis, responses from question 18 of the questionnaire will

be used.

Table 4.31 Computation of X2 for Hypothesis III


staff

Total

Yes 50 22 20 92

No 6 18 3 27

Undecided 2 1 - 3

Total 58 41 23 122

71


The frequencies expected (Fe) are computed thus

Fe = �� !��

��

"� $

�� = 43.7

"� #�

�� = 30.9

"� �%

��= 17.3

�� $

��= 12.8

�� #�

��= 9.1

�� %

��= 5.1

% $

��= 1.4

% #�

��= 1

% �%

��= 0.6

Table 4.32: Computation of X2 for Hypothesis III

S/N Fo Fe Fo – Fe (Fo-Fe)2 (-. − -01

-0

1 50 43.7 6.3 39.69 0.9082

2 22 30.9 -8.9 79.21 2.5634

3 20 17.3 12.7 161.29 9.3231

4 6 12.8 -.8 46.24 3.6125

5 18 9.1 8.9 79.21 8.7044

6 3 5.1 -2.1 4.41 0.8647

7 2 1.4 0.6 0.36 0.2571

8 1 1 0 0 0

72

9 0 0.6 0.6 0.36 0.6

26.5763


df = (R-1) (C-1)

Where

R = Rows

C = Columns

= (3-1) (3-1)

= (2) (2)

df = 4




DO NOT

REJECT

REJECT Ho

9.488

Critical value

73

Decision Rule










Hypothesis Iv

Ho: Motivation does not encourage workers to work hard

Hi: Motivation encourages workers to work hard

In testing the hypothesis, responses from question II of the questionnaire will

be used.

74

Table 4.33: Contingency Table for Hypothesis IV


staff

Total

Yes 58 40 19 117

No 0 1 4 5

Undecided 0 0 0 -

Total 58 41 23 122

The frequencies expected (Fe) are computed thus

Fe = �� !��

��

�� $

�� = 55.6

�� #�

�� = 39.3

�� %

��= 22.1

$

��= 2.4

#�

��= 1.3

�%

��= 0.9

� $

��= 0

� #�

��= 0

� �%

��= 0

75

Table 4.34: Computation of X2 for Hypothesis IV

S/N Fo Fe Fo – Fe (Fo-Fe)2 (-. − -01

-0

1 58 55.6 2.4 5.76 0.1036

2 40 39.3 0.7 0.49 0.0125

3 19 22.1 -3.1 9.61 0.4348

4 0 2.4 -2.4 5.7 2.4

5 1 1.3 -0.7 0.49 0.2882

6 4 0.9 3.1 9.61 10.6778

7 0 0 0 0 0

8 0 0 0 0 0

9 0 0 0 0 0

13.9169


df = (R-1) (C-1)

Where

R = Rows

C = Columns

= (3-1) (3-1)

= (2) (2)

df = 4


76



Decision Rule










4.3 SUMMARY OF RESULT

1. The result of the above analysis shows that a greater percentage of the

respondents agreed that labour management relations has an effect on

DO NOT

REJECT

REJECT Ho

9.488

Critical value

77

workers performance in an organization, some people disagreed with this

opinion, while some where different about their opinion.

2. With these findings it became obvious that a cordial relationship can be

achieved between labour and management if there is a good

communication between them, timely payment of salaries, proper

motivational techniques, good leadership and creating room for workers to

participate in decision making.

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 basically 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 PHCN is

wide and it has negative effect on workers performance.

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.

78

CHAPTER FIVE

DECISION, 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 the effect of

labour management relations on workers performance in Power Holding

Company of Nigeria (PHCN).

5.1 DECISSION OF FINDIGNS

Based on the analysis in chapter four as collected from the 122 respondents of

Power Holding Company of Nigeria (PHCN), the findings of the research are

summarized below:

1. That labour management relations has an effect on workers

performance.

2. Power Holding Company of Nigeria 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 basically 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

PHCN is wide and it has negative effect on workers performance.

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.

79

10. The organization has witnessed strike more than twice, and this has an

effect on workers performance.

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

performance, 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, so as to give them a sense of belonging and enhance their

performance. 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, so as to enhance performance.

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 organizaiton

80

5.3 CONCLUSION

The study and findings of the effect of labour management relations and its

effect on workers performance in an organization 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

performance, 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 performance,

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.

81

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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