15
Abstract The ultimate concern of every Organization, Nation and the world at large is the maintenance of peace and tranquility. Most industries desire harmony which leads to stability, organizational progress and industrial growth especially in the developing countries as Nigeria. The greatest asset of any organization is her human resources and therefore the management of this valuable asset is one of the key challenges affecting organizational goal achievements. Conflict resolutions enhanced by collective bargaining has aided a lot of industrial effectiveness. This paper investigated the impact of collective bargaining as a conflict resolution strategy on organizational effectiveness. Both primary and secondary data were used to support the descriptive and survey methods adopted in this study. A case study of Lafarge Cement WAPCO Plc. was used and a population of120/69 staff generated a sample size of 59 through the stratified sampling technique applying Yamane formula. 59 questionnaires were distributed and 50 were filed and returned. Responses were later subjected to Chi-square analysis. Result showed that there could be a cordial relationship between management and employees emanating from collective bargaining as conflict resolution strategy. At 5% degree of freedom (12.59) tested, it was confirmed that industrial unrest can be controlled through collective bargaining. Most of the causes of the industrial conflicts are; poor condition of service, non adherence and attention to union leaders as representatives due to large and unrealistic demands from the management. Among other recommendations are that; the management must accept the union as an official representatives and watchdog of the employees interest in the organization while the union recognizes management as the primary planner and controller of the organization. In order to be effectively represented without bias, all levels of employees must be represented in the union using effective communication channel. Reasonable demands to be made at all times by the union. Employees should be treated equitably in all branches of Lafarge Cement WAPCO Plc. Keywords: Collective bargaining, Conflict resolution, Strategy, effectiveness, union Background to the Study Collective bargaining (CB) was originated by Webb and Webb to describe the process of agreeing to terms and conditions of employment through representatives of employers (and possibly their association) and representatives of employees (and probably their unions) Rose (2008). It is essentially a rule making process and also a system of countervailing power, a power relationship between organizations. It is not a usual practice to negotiate with employees on all conditions that govern the working life of such an employee in a work situation because; employers are always out to get factors of production at the minimal COLLECTIVE BARGAINING AS A CONFLICT RESOLUTION STRATEGY FOR ORGANISATIONAL EFFECTIVENESS Dr. Kabuoh, Margret Nma, Iyanmkume S. Erigbe, Patience A. & Ilori, A. A. Business Administration & Marketing Department Babcock University Shagamu Ogun State-nigeria 86

STRATEGY FOR ORGANISATIONAL … and survey methods adopted in this study. A case study of ... (12.59) tested, it was confirmed that industrial unrest ... through military era,

Embed Size (px)

Citation preview

AbstractThe ultimate concern of every Organization, Nation and the world at large is the maintenance of peace and tranquility. Most industries desire harmony which leads to stability, organizational progress and industrial growth especially in the developing countries as Nigeria. The greatest asset of any organization is her human resources and therefore the management of this valuable asset is one of the key challenges affecting organizational goal achievements. Conflict resolutions enhanced by collective bargaining has aided a lot of industrial effectiveness. This paper investigated the impact of collective bargaining as a conflict resolution strategy on organizational effectiveness. Both primary and secondary data were used to support the descriptive and survey methods adopted in this study. A case study of Lafarge Cement WAPCO Plc. was used and a population of120/69 staff generated a sample size of 59 through the stratified sampling technique applying Yamane formula. 59 questionnaires were distributed and 50 were filed and returned. Responses were later subjected to Chi-square analysis. Result showed that there could be a cordial relationship between management and employees emanating from collective bargaining as conflict resolution strategy. At 5% degree of freedom (12.59) tested, it was confirmed that industrial unrest can be controlled through collective bargaining. Most of the causes of the industrial conflicts are; poor condition of service, non adherence and attention to union leaders as representatives due to large and unrealistic demands from the management. Among other recommendations are that; the management must accept the union as an official representatives and watchdog of the employees interest in the organization while the union recognizes management as the primary planner and controller of the organization. In order to be effectively represented without bias, all levels of employees must be represented in the union using effective communication channel. Reasonable demands to be made at all times by the union. Employees should be treated equitably in all branches of Lafarge Cement WAPCO Plc.

Keywords: Collective bargaining , Conflict resolution, Strategy, effectiveness, union

Background to the StudyCollective bargaining (CB) was originated by Webb and Webb to describe the process of agreeing to terms and conditions of employment through representatives of employers (and possibly their association) and representatives of employees (and probably their unions) Rose (2008). It is essentially a rule making process and also a system of countervailing power, a power relationship between organizations. It is not a usual practice to negotiate with employees on all conditions that govern the working life of such an employee in a work situation because; employers are always out to get factors of production at the minimal

COLLECTIVE BARGAINING AS A CONFLICT RESOLUTION STRATEGY FOR ORGANISATIONAL EFFECTIVENESS

Dr. Kabuoh, Margret Nma, Iyanmkume S.Erigbe, Patience A. & Ilori, A. A.

Business Administration & Marketing DepartmentBabcock University Shagamu Ogun State-nigeria

86

cost. Rather, the practice is that, the union will bargain collectively with management over matters such as wages, hours of work, sick pay, holidays, overtime conditions, employment of apprentice etc. These variables should be effectively communicated to avoid conflict. Ineffective communication can lead to workers conflict which consequently results to poor performance Kabuoh & Oguanu (2013)

The word 'bargaining' is defined by Nayab (2011) as “the process by which representatives of employers and workers engaging in a series of negotiations, often with diplomatic and political maneuvers, to effect a collective agreement towards the resolution of any dispute or outstanding issues relating to terms and conditions of employment, and rights and responsibility of workers. The authentic interest of demand and supply are financially met and adjusted so as to end in an act of exchange. The interest of both the employers and employees are taken into consideration in collective bargaining. This helps to maximize productivity and give good rewards to employees for services rendered. According to Chamberlain (1951), “public sector's collective bargaining emerged at the onset of industrial revolution in Europe as the bit of industrial relations that epitomized the negotiation process. This was because of the realisation of the growing exploitative capitalised employer.

Lafarge cement WAPCO Nigerian plc tries to enhance industrial harmony through collective bargaining. Through this strategy, the company has been able to stand the test of time. Union actions which sometimes cause a lot of problems in the organization may have been minimized through collective bargaining such as unrealistic, pie-in-the sky proposals presented by the union, the union pressing for outrageous proposals on the rationale that “it doesn't hurt to ask” or the union and management relationship might be very poor with management feeling that the actions of the union restricts management flexibility. That is, the union also wants to be involved in some decisions that management feel it's strictly theirs (management's) to take. Collective bargaining looks at ways that the moral of the employees could improve for better performance. The practice of collective bargaining is not new in Nigeria and the government of the federation even before independence, through military era, the civilian government during the Shagari regime has always stressed their support for the practice. The stand of government could be seen in various trade unionism and various labor laws.

Unionism can be said to be the barometer through which the agreement between the employers and employees can be reached. In urban related matters, the union comes between the employers and the employees in order to create mutual understanding and harmony in the organization.

Statement of the ProblemCollective bargaining effort serves no purpose unless an overwhelming majority of the workers consent with the settlement effected by the negotiators, otherwise, the discontent and underlying issues that cause the need for the collective bargaining remain motionless. Nayab (2011), states that the biggest challenge in collective bargaining is ensuring consensus among the workers, so that the group representing the workers can negotiate without distraction of conflicting and divergent demands made by workers. Despite the tributes given to collective bargaining, organizations practicing the strategy still experience organizational unrest or conflicts in their organization. These problems could be brought about by the trade unions

87

Education and Science Journal of Policy Review and Curriculum Development (ESJPRCD)Volume 4, No.1 January, 2014Website: Http://www.internationalpolicybrief.org ISSN (Electronic): 1741-8771 ISSN (Print): 1741-8763

pressing for outrageous proposals or the employees not properly represented by the union which could stern from corruption or greed on the part of the union representatives. In some cases, it could be the weak or poor relationship between the union and management due to the fact that management feels that the labor union wants to get involved in decisions that are strictly management decisions, and hereby reduces management flexibility in matters such as; the introduction of new production equipment and methods, the determination of job content and the establishment of job standards.

The above problems may lead to industrial strike and other castigatory measures. It is in the light of this that the study is poised to ascertain the problems that cause unrest or lack of harmony in a manufacturing organization even with the use of collective bargaining as a conflict resolution strategy. Lack of manpower training and other incentives by some organizations is one of the challenges that may lead to industrial conflict. Most organizations disregard the training of their valuable asset (employees) while relying only on employees' university education knowledge which consequently leads to inadequate performance Kabuoh, Ihuoma, & Ogbuanu (2013).

Objective of the StudyThe study intends to examine the impact of collective bargaining (CB) as a conflict resolution strategy on organizational effectiveness. Other objectives include:i. To investigate if industrial unrest can be averted through collective bargaining. ii. To ascertain if CB can enhance employers and employees' relationship.iii. To investigate and reveal to employers the causes of problems that result in employee

dissatisfaction in the industry.

Research Questionsi. How does collective bargaining impact on industrial unrest?ii. To what extent does collective bargaining enhance relationship between employers and

employees?

Hypothesis; The study stated two hypotheses1 in the null form.H - Industrial unrest cannot be averted through collective bargaining as a conflict resolution strategy. o1

H - The employers and employees' relationship cannot be cordial through CB.o2

A Brief Profile of Lafarge Cement WAPCO Plc Lafarge has been a major player in the Nigerian manufacturing sector since it entered into the market in 1972, when it embarked on a construction of a cement plant known today as Dangote Cement Company Plc; the acquisition of west African Portland cement now Lafarge WAPCO as a result of taking over Blue Circle Industries Plc, U. K. on July 1, 2001, ASHAKACEM Plc (Ashaka); and with the incorporation of Atlas cement company ltd, a floating barge with a bagging plant on board, which commenced operations on March, 2001. It also has shareholdings at UNICEM Plant at Calabar.

88

Education and Science Journal of Policy Review and Curriculum Development (ESJPRCD)Volume 4, No.1 January, 2014Website: Http://www.internationalpolicybrief.org ISSN (Electronic): 1741-8771 ISSN (Print): 1741-8763

Equity Ownership of Lafarge Cement WAPCO PLC Share holders No. of shares held PercentageOdua Group of companies

300,346,605

10.01

Nigerian public

900,245,271

29.99

1,200,591,876

40. 00

Foreign

1,801,008,128

60.00

Total 3,001,600,004

100.00

Source: www.lafargewapco.com

Individual shareholdersAs a public Ltd company quoted on the Nigerian stock exchange, Lafarge WAPCO has a total of 63,884 shareholders.

Literature ReviewIntroductionReview on this chapter were based on the following segments: Conceptual frame work, theoretical framework & the empirical studies.

Conceptual FrameworkNayab (2011) stated that collective bargaining is a dispute redress where workers and employees engage in a series of negotiations, diplomatic and political maneuvers to effect a collective agreement to resolve a dispute. The international labor organization lists and recommends stages of the collective bargaining process, they are; Preparing, Arguing, Signaling, Proposal, Packaging, Bargaining, Closing, Agreeing. Adhering to the above recommended stages of CB facilitates smooth negotiations and enhances a win-win settlement situation.

Functions, Principles, and Techniques of Collective BargainingCollective bargaining is a technique of social change, sometimes performing its functions smoothly and at other times threatening to blow up. The performance of its functions can be viewed under the following three headings:1. Collective bargaining acts as a technique of long-run social change, bringing

rearrangements in power hierarchy of competing groups.2. Collective bargaining serves a peace treaty between two parties in continual conflict.3. Collective bargaining establishes a system of industrial prejudice, defining the rights and

duties of the conflicting parties.

Collective bargaining in its broader aspects is not confined solely to economic relations between employers and employees. Perlman (2013) has defined collective bargaining as a technique whereby an inferior social class or group carries on a never slacking pressure for a bigger share in social sovereignty as well as for more welfare, security and liberty for its individual members. Collective bargaining manifests itself equally in politics, legislation, court litigation, government administration, region education and propaganda.

89

Education and Science Journal of Policy Review and Curriculum Development (ESJPRCD)Volume 4, No.1 January, 2014Website: Http://www.internationalpolicybrief.org ISSN (Electronic): 1741-8771 ISSN (Print): 1741-8763

Principles and Techniques of Collective BargainingThe success of collective bargaining is based on certain principles. These principles are to be followed by the employers and unions. F. Campo (2013) laid down certain principles for union and management, for management, and for union.

For Both Union and Managementi. Collective bargaining process should give due consideration to hear the problems on both sides.

They will develop mutual understanding of the problem which is more important for arriving at solutions

ii. Both the management and the union should analyze the alternatives to arrive at the best solution.iii. There should be mutual respect for both parties. The management should respect the union and

the union should respect the importance of management.iv. Both the union and the management must have good faith and confidence in discussing and

arriving at a solution.v. Collective bargaining requires effective leadership on both sides to moderate discussions and

create confidence.vi. In collective bargaining, both the union and the management should observe the laws and

regulations in practice in arriving at a solution.vii. In all negotiations, the labor should give due considerations- in wage fixations, in working

conditions, bonuses etc.

For Managementi. Management should think of realistic principles and policies of labor regulations.ii. The recognition of a trade union to represent the employees is more essential. If there is more than

one union, the management can recognize the one which has the support of majority of the workers.

iii. Management should try a policy of goodwill and cooperation in collective bargaining, rather than an indifferent attitude towards the union.

iv. Management needs not wait for trade unions to present the grievances for settlement. Management can voluntarily take measures to settle the grievance.

v. Management should give due consideration to social and economic conditions of workers in collective bargaining.

For Unionsi. Unions should avoid undemocratic practices.ii. Unions also have to recognize their duties to the management before emphasizing their demands.iii. Unions have to consider the benefits to all workers rather than a section of workers.iv. Strike lock-outs should be restored to only as a last measure. As far as possible, it has to be avoided

by compromise and discussions.

Theoretical Framework A lot of scholars have defined collective bargaining in their own ways or views. According to Stephen Hoperman and his associates (2011), “collective bargaining is an exercise in which workers through their

90

Education and Science Journal of Policy Review and Curriculum Development (ESJPRCD)Volume 4, No.1 January, 2014Website: Http://www.internationalpolicybrief.org ISSN (Electronic): 1741-8771 ISSN (Print): 1741-8763

trade unions, try to reach an agreement with their employers on wages payable and other benefits which they will enjoy in exchange for their labor”. According to Fajana (2000), trade union laws in the UK and Nigeria defines trade union as “any combination whether temporary or permanent, with the principle objectives of its constitution being the regulation of the relation between work men and work men; or between masters and masters, or the imposing of restrictive conditions on the conduct of any trade or business and also the provision of benefits to members”. Rose (2008), defined collective bargaining as a process whereby representatives of employers and that of employees jointly determine and regulate decisions pertaining to both substantive and procedural matters within the employment relationship.

Theories in Collective BargainingCollective bargaining is fundamental to labor-management relations in Nigeria, just as in many other countries. Its principles, processes and outcomes, anchored on the goals of trade unions, are based on four theoretical models of unionism (Adeogun 1980).

Economic TheoryThis is premised by the conjecture that the logical role of the trade union is to control the job situation. Therefore, the aim of collective bargaining is to secure higher wages and better terms and conditions of work. In the western setting, this is referred to as “bread and butter” goal of the union or business unionism when negotiating a contract with the employer for its constituents. The contemporary economic crisis, unemployment, increasing labor flexibility, and the abundant labor supply of unskilled labor force, as well as existing labor laws, tend to compel unions to lean towards an economic orientation on the bargaining table (Edralin 2003).

Social TheoryThis is rooted in Tannenbaum's (1921) view that the primary reason of workers joining the union is to eradicate or lessen their job alienation due to work automation or computerisation. The collective bargaining agreement must be able to guarantee that workers gain the respect and recognition that is not usually given to them by being treated equally and fairly. It is in this context that hours of work, leaves, employee assistance, health care benefits, promotion and transfer are among the subject of negotiations between the employer and the union (Edralin 2003).

Political TheoryThis is derived originally from Karl Marx's (1959). He observed that individual workers will certainly resort to radical collective action, perhaps revolution, to transform the economic system. Trade unions become hostile in outlook, as well as confrontational, coercive and combative in their methods. The union aims to enhance the interest of the working class through political action, which “denotes the attempt to get influence upon legislation, administration, informal and/or formal government intervention in problems of all kinds including, at times, the determination of wages and working conditions” (Dejillas 1994). Therefore, collective bargaining is to negotiate for favorable terms related to union's exclusive representation, union security, union rights/privileges, security of tenure, labor and management committee, and grievance machinery, among others. Collective bargaining becomes a means to allow

91

Education and Science Journal of Policy Review and Curriculum Development (ESJPRCD)Volume 4, No.1 January, 2014Website: Http://www.internationalpolicybrief.org ISSN (Electronic): 1741-8771 ISSN (Print): 1741-8763

workers to participate in decision making on matters that affect them in all levels of society in order to democratize power and to secure the unity and strength of the members (Dejillas 1994).

Dualistic TheoryThis was developed by Ramos (1990), which was partly derived by Solomon B. Levine's (cf. Ramos 1990) analysis of the Japanese experience. Levine notes that in Japan, national trade unions centers devote their major concerns to advancing the workers' interest through political channels, while the local unions tend to look inward and to pursue the pragmatic and immediate goals of the work site.

Empirical Review The Nigerian Civil Service Union (NCSU) was one of the first to be formed in 1912. In 1919, the Nigerian

railway, native staff union of teachers (NUT) was formed in 1939. On April 1937, trade union was to be registered before it could negotiate with an employer to take industrial action. The most vigorous union at that time was the railway workers union (NWU). The active roles played by this unions led by Michael Imodu as regard the cost of living award, made government to take more active interest in labor matters in 1982; the department of labor was formally created and was staffed by senior administrative officers. Also the trade dispute and arbitration ordinance were enacted. By 1942, the atmosphere was set for a favorable collective bargaining practice (ILO, 1996).

All these factors have influenced the course of development and the employee unions of organizations themselves. The machineries present great complexities and variety in structures and organizations. Identifying collective bargaining needs labor decree No.21 of 1974 as amended in 1978 which defines collective bargaining as “the process of arriving or attempting to arrive at a collective agreement. It is interpreted as an agreement in writing regarding work conditions and terms of employment conducted between the following organizations:

a. An organization of employers or an organization representing employees, or an association of such organizations.

b. An organization of workers representing workers or association of such organization.c. The government agencies that is Federal Ministry of Labor and Productivity.

Causes of Conflict in IndustriesAccording to Ogunbayo (2013) the following factors increase the chances of conflict in an organization.i. Scarce resources: Individuals and groups in an organization compete for limited resources

namely, man, machines, materials and money. Hence conflict may result when an organization functions within an environment of scarcity.

ii. Task dependency: This occurs when task interdependency exists, when two or more units of an organization depend on each other for an overall goal of the organization. Mutual task dependency is a key variable in interdepartmental conflict. Interdependence of task produces the need for collaboration but also presents an accession and the need for bargaining between units over issues in conflict.

92

Education and Science Journal of Policy Review and Curriculum Development (ESJPRCD)Volume 4, No.1 January, 2014Website: Http://www.internationalpolicybrief.org ISSN (Electronic): 1741-8771 ISSN (Print): 1741-8763

iii. Difference in style: Difference in style adopted by management in directing the affairs of their employees and this lead to conflict when employees feel that they are being treated differently.

iv. Communication breakdown: This also becomes a cause of conflict when instructions are not properly passed to employees or when they don't understand the instruction given to them.

v. Role ambiguity: This occurs when an individual must assume roles for different situations that are inconsistent with one or more other roles.

Dispute Settlement ProcedureAccording to Ogundayo (2013), “dispute settlement procedure is a result of conflict orientation in a work settings which centers around the concerns of the workers for their relative share in the making of rules that govern their relationship at work i.e. the degree to which the relationship gives them the opportunity to satisfy their needs for love, belonging, esteem, recognition, personal development and resolution of their potential as human beings to the full. This needs, whether material or non-material is perhaps the single source of conflict in an organization or industry.

Secondly, the interest of the employees and employers are generally opposed. The employers are seeking the greater possible output at the least cost i.e., constantly seeking to love the wage rage, the length of hours of work, to speed up workers whenever it is temporarily economical. On the other hand, the union which represents the working group is seeking continuously the employment of its entire members at the right or acceptable wages and or working conditions.When the labor and management fail to reach an agreement on a labor contract through a negotiated settlement, they may turn to a procedural technique to resolve the impasse, such as:i. Mediatorii. Refer to matter of arbitration paneliii. National industrial court

StrikesAccording to Brady (2013), a strike action is what happens when a group of employees conduct a work stoppage. Typically, a strike happens because of grievances the work force has with the employer. A strike according to trade dispute (emergency provision) decree of 1968 is the assertion of the work by a body of persons employed acting in combination or a concerted refusal of work under a common understanding for an employer in consequence of a dispute. It is an established principle of law that workers deserve the right to withhold their labor over an issue which concerns their condition of employment. During the period of strike, some employers may refuse payment of wages. In firms where unions are financially sound, they pay a fraction of their worker's wages for support during the strike period. Various kinds of strikes including the sit down strike are described under the topic.

Types of StrikesThe following are a few of the common strikes found in industries, Brady (2013):i. Economic Strike: This strike occurs when the parties fail to reach agreements during collective

bargaining agreement.

93

Education and Science Journal of Policy Review and Curriculum Development (ESJPRCD)Volume 4, No.1 January, 2014Website: Http://www.internationalpolicybrief.org ISSN (Electronic): 1741-8771 ISSN (Print): 1741-8763

ii. Unfair Labor Practice Strike: Here, union members strike over what they feel is illegal employer's action, such as refusal to bargain.

iii. Wildcat Strikes/Outlaw Strikes: Workers go on strike without the official consent of the union, thus violating the terms of the contract. Strike can be discharging or disciplined.

iv. Slow Down Strike: Workers continue to work but at a slower pace. On the individual bases, this is called goofing off or soldiering on the job.

v. Sit-down Strike: Employees show up at the place of their employment but they refuse to work. They also refuse to leave, which makes it difficult for anyone to defy the union and take the worker's places.

vi. General Strike: This is a strike in which all or most workers in an entire region or country go on strike together, regardless of the union's affiliation. These strikes are usually intended to create political pressure on the ruling government rather than on anyone employer.

MethodologyFor the purpose of this study, the population consists of all the management and non-management (senior and junior) staff of Lafarge Cement WAPCO Company limited (Ewekoro plant) totaling 120 members but 69 as main staff was intuitively used as the main population. The population was gotten from the use of staff presented to the researcher as the assistant human resource manager of the company. Primary and secondary sources of data aided the study. Primary data are raw materials or information gotten from management and non-management staff of Lafarge Cement WAPCO Company limited (Ewekoro plant) through questionnaire as the main instrument.

The stratified sample technique was used and the sample size determined by Yamane as seen below; n= N/1+N(e)2

Where n= sample size desirede= desired margin of error N= population sizeThe sample error is 0.05%n= 69/1+69(0,05)269/1.1725 n= 59

Two sets of questionnaires were used; section A personal data of the staff and section B Questions relating to study topic (see Appendix 1). 59 staff were administered questionnaires , 50 were completed and returned representing 86%. The total questionnaires distributed to the staff of Lafarge cement WAPCO Plc was fifty-nine (59). Junior staff 28, senior staff 21 and management staff got 10, representing 47.5%, 35.6%, and 16.9% respectively of which nine (9) of the questionnaires were not returned, representing 15.3%. simple percentage method was used to analyse the data at four point likert scale as; Strongly agree (SA), Agree (A), Disagree (D) & Strongly disagree (SD). The data was further subjected to the use of chi-square statistical method to test the

2hypothesis. The chi-square is denoted by a Greek letter x . It is the tool to be used in determining if the observed frequency in a sample distribution differs significantly from frequencies that can be expected to rise from hypothesis.

94

Education and Science Journal of Policy Review and Curriculum Development (ESJPRCD)Volume 4, No.1 January, 2014Website: Http://www.internationalpolicybrief.org ISSN (Electronic): 1741-8771 ISSN (Print): 1741-8763

It is given by; 2 2X =∑ (0-E) /E2 =X

Where 2X = chi-square ∑ = summation sign O = observed frequency E = expected frequency

Decision ruleIf the chi-square calculated is greater than the tabulated, reject the null hypothesis (Ho) and accept the alternative (Hi). If the chi-square calculated is less than the chi-square tabulated, accept the null hypothesis (Ho) and reject the alternative hypothesis (Hi).For space purpose, we presented questions 6 and 8 in table forms for the test of the two hypotheses stated for this study.

From the table above, 20 of the respondents representing 40% strongly agree that collective bargaining as a conflict resolution strategy guarantees organizational effectiveness. 30 respondents representing 60% agree, while none disagreed or strongly disagreed. The result shows that, collective bargaining as a conflict resolution strategy guarantees organizational effectiveness.

Q8: The management and employee relationship is cordial in this company through collective bargaining.

From table 2 above, 13 respondents representing 26% strongly agreed that management and employee relationship in this company is cordial through collective bargaining. 27 representatives (54%) agreed. 5 respondents representing 10% disagree while another 5 respondents representing 10% strongly disagreed.

Q6: collective bargaining as a conflict resolution strategy guarantees organizational effectiveness.TABLE 1 Options

Number

Percentage

Strongly agree

20

40 Agree

30

60

Disag ree

-

-

Strongly disagree

-

-

Total 50 100Source : field survey, 2013

TABLE: 2 Options Number Percentage Strongly agree

13

26

Agree

27

54 Disagree

5

10

Strongly disagree

5

10

Total 50 100Source : field survey, 2013

95

Education and Science Journal of Policy Review and Curriculum Development (ESJPRCD)Volume 4, No.1 January, 2014Website: Http://www.internationalpolicybrief.org ISSN (Electronic): 1741-8771 ISSN (Print): 1741-8763

It shows that the management and employee relationship is cordial in the company through collective bargaining.

Test of HypothesisTwo hypotheses structured in null format were designed to measure the mathematical validity of the research findings. They are tested using the chi-square.

Hypothesis OneTABLE 3 Respondents

SA

A

DA

SDA TOTAL

Management

2

4

1

-

7

Senior staff

8

10

-

2

20Junior staff

3

13

4

3

23Source: field survey 2013

SA A DA SDAManagement 13x7/50 27x7/50 5x7/50 5x7/50Senior staff 13x20/50 27 x20/50 5x20/50 5x20/50Junior staff 13x23/50 27x23/50 5x23/50 5x23/50

TABLE 4 O E O-E (O-E)2

(O-E)2/E2

1.8

0.2

0.04

0.02

4

3.8

0.2

0.05 0.01

1

0.7

0.3

0.09 0.13

-

0.7

-0.7

0.49

0.70

8

5.2

2.8

7.80

1.5010

10.8

-0.8

0.64

0.06-

2

-2

4

22

2

0

0

03

5.98

2.98

8.90

1.513

12.4

0.58

0.34

0.034 2.3 1.7 2.89 1.33 2.3 0.7 0.49 0.2TOTAL 7.45Source : field survey, 2013

Critical value is calculated thus: X

2= 0.05 (r-1) (c-1)

X2=0.05 (3-1) (4-1) =0.05 (2) (3) =0.05 (6) df=12.59

96

Education and Science Journal of Policy Review and Curriculum Development (ESJPRCD)Volume 4, No.1 January, 2014Website: Http://www.internationalpolicybrief.org ISSN (Electronic): 1741-8771 ISSN (Print): 1741-8763

Decisioni. Reject the alternative hypothesis (H ) and accept the null hypothesis (H ) as the tabulated 1 O

value is greater than the critical value.ii. Accept the alternative hypothesis (H ) and reject the null hypothesis (H ) is tabulated 1 O

value is less than critical value.From the discussion and calculation, since the tabulated value is less than the critical value i.e. since 7.45 < 12.59, we accept the alternative hypothesis and conclude that industrial unrest can be controlled through collective bargaining.

Hypothesis TwoH : The management and employee relationship cannot be cordial through collective bargainingo

TABLE 5 Respondents SA A DA SDA TotalManagement

2

3

1

1

7

Senior staff

3

14

3

- 20

Junior staff 8 10 3 2 23Source: field survey, 2013

SA A DA SDA Management 13x7/50 27x7/50 7x7/50 3x7/50 Senior staff 13x20/50 27x20/50 7x20/50 3x20/50 Junior staff 13x23/50 27x23/50 7x23/50 3x23/50

TABLE 6 Chi Square Observed/Expected Frequency Table O E 0-E (O-E)2

(O-E)2/E2

1.8

0.2

0.04

0.02

3

3.8

-O.8

0.64

0.171

1

0

0

0

1

0.4

0.6

0.36

0.93

5.2

-2.2

4.8

0.914

10.8

3.2

10.2

0.93

2.8

0.2

0.04

0.01-

1.2

-1.2

1.44

1.28

6

2

4

0.710

12.4

-2.4

5.9

0.53 3.2 -0.2 0.04 0.012 1.4 0.6 0.36 0.3Total 5.61Source: field survey 2013

Critical value is calculated thus; X

2=0.05 (r-1) (c-1)df

=0.05 (3-1) (4-1) =0.05 (2) (3) X2=0.05 (6) df = 12.59

97

Education and Science Journal of Policy Review and Curriculum Development (ESJPRCD)Volume 4, No.1 January, 2014Website: Http://www.internationalpolicybrief.org ISSN (Electronic): 1741-8771 ISSN (Print): 1741-8763

Decisioni. Reject alternative hypothesis (H ) and accept the null hypothesis (H ) if the tabulated 1 o

value is less than the critical value.ii. Accept the alternative hypothesis (H ) and reject the null hypothesis (H ) if the tabulated value is 1 o

less than the critical value i.e. 5.61 < 12.59, we accept the alternative hypothesis and conclude that, the management and employee relationship can be cordial through collective bargaining.

ConclusionThis study has attempted to analyse and evaluate the impact of collective bargaining as a conflict resolution strategy on organizational effectiveness. Based on the evidence of the interpreted statistical analysis, findings and presentations, the study concludes thus:

Collective bargaining agreements often institutionalise settlement through dialogue. For instance, a collective agreement may provide the method by which disputes between the parties will be settled. In that event, the parties know beforehand that if they are in disagreement, there is an agreed method by which such disagreement may be resolved. It is a form of participation. Both parties participate in deciding what proportion of the 'cake' is to be shared by the parties entitled to a share. Collective bargaining has by-products relevant to the relationship between the two parties. It contributes towards mutual understanding by establishing a continuing relationship. Collective bargaining is the foundation on which industrial relation is built. The problems between management and unions could be solved through honesty and understanding by both parties to ensure organizational effectiveness.

RecommendationsAfter studying the issues and problems that exist between union and management of Lafarge Cement WAPCO, the following recommendations were made.i. The management must accept the union as the official representatives and watchdog of the

employee's interest in the organization, and the union on the other hand must recognize management as the primary planner and controller of the organization. To achieve the above, management should not view the union as a threat but as partners in progress, and the union members must not feel that management is seeking the opportunity to undermine them.

ii. We are recommending that union must consist of all levels of employees in order to carry out the union objectives effectively and efficiently without bias. There should be better communication system in the union. They must state their grievances and demands clearly to the union representatives and these representatives should carry out their duties as agreed upon by union members as soon as possible. These will enhance the support of union members for agreements reached by the union representatives.

iii. The union should make reasonable demands when the need arises. This will go a long way in strengthening the arms of management, union relationship and reduce strike action in the company.

iv. There should be uniformed and equitable treatment of the employees in all branches of Lafarge Cement WAPCO Plc. and the management should not wait for unions to make demands before they act.

98

Education and Science Journal of Policy Review and Curriculum Development (ESJPRCD)Volume 4, No.1 January, 2014Website: Http://www.internationalpolicybrief.org ISSN (Electronic): 1741-8771 ISSN (Print): 1741-8763

v. The working conditions of employees should be of high priority to the management as this will promote understanding, motivate the employees and thus, bring about a higher level of productivity.

ReferenceAdeogun, A.A. (1987). “The legal framework of collective bargaining”. In Otobo, D. and Omole, M. (eds).

Readings in industrial relations in Nigeria. Lagos: malthouse press Ltd, Lagos.Brady, M. (2013). “Implications of game theory underpinning cooperative relations in workplace

Partnership”. Industrial relations journal. 44(3) pp 268-276C a m p o, F. ( 2 0 1 3 ) . “ P r i n c i p l e s o f c o l l e c t i v e b a r g a i n i n g ”. R e t r i e v e d J u l y, 2 0 1 3

http://www.whatishumanrecource.com. Chamberlain, N.W. & Kuhn, A. (1965). cf. Edralin, D. (2003).

th Chamberlain, N.W. (1951). “Collective bargaining”. 5 edition: McGrawhill Book Company: New York.Dejillas, L. (1994). “Trade union behavior in the Philippines 1940-1990”. Quezon City: Anteneo de Manila

University Press.Edralin, D. (2003). “Collective bargaining in the Philippines”. Manila: national book store.

ndFajana, s. (2000). “Industrial relations in Nigeria: theory and features”. (2 ed). Lagos: labofin Educational ltd.

ILO. (1960). “Collective Bargaining. A Workers education manual: Geneva”.Kabuoh, M.N., Ihuoma, N.G., Ogbuanu, B.K. (2013). Assessment of On-The-Job Training on Employee's

thPerformance: The 7 International Conference on Social Inequalities, Corruption and Development in Africa., International Journal of Development Studies, Vol.7, No. 6.

Kabuoh, M.N. and Ogbuanu, B. K. (2013). “Business Communication as a Tool for Improving Workers' thPerformance: The 7 International Conference on Social Inequalities, Corruption and

Development in Africa”. International Journal of Vocational Studies, Vol. 7, No. 6.International Labour Organization (1996). “Freedom of association: digest of decisions and Principles of

THfreedom of association committee of the Governing body of the ILO”. (4 ed) Geneva: ILO. Jetems.scolarlylinkreseach.com.

Marx, k. (1951). “Manifesto of the communist party. In Marx and Engles. Basic writing on politics and philosophy, ed. L.S feur. Garden City: Double day”.

Na y a b, N. ( 2 0 1 1 ) . “C h a l l e n g e s o f c o l l e c t i v e b a r g a i n i n g ”. R e t r i e v e d Ju l y, 2 0 1 3 http://www.brighthub.com/office/humanresources.

Ogundayo, O. (2013). “Conflict management in Nigerian construction industry”. Journal of emerging trends in economics and management Sciences ( JETEMS). 4(2): 140-146.

Perlman, S. (2013). “A theory of labor movement”. New York: McGrawhill book company.Ramos, E.T. (1990). “Dualism and industrial relations”. Philipines: New Day Publishers.

rdRose, E.D. (2008). “Employment relations”. (3 edition). London: Pearson Education limited.

99

Education and Science Journal of Policy Review and Curriculum Development (ESJPRCD)Volume 4, No.1 January, 2014Website: Http://www.internationalpolicybrief.org ISSN (Electronic): 1741-8771 ISSN (Print): 1741-8763

APPENDIX IDear Respondent,We are researchers from Babcock University conducting an academic research for the purpose of conference presentation and suggestions on Collective bargaining as a conflict resolution strategy on organizational effectiveness. Any information given is treated with utmost confidentiality.

SECTION APlease tick [ ] where appropriateAge: 25-30 [ ] 31-35 [ ] 36-40 [ ] 41 and above [ ]Marital status: single [ ] married [ ] divorced [ ]Status: Management staff [ ] senior staff [ ] junior staff [ ]Qualification: diploma [ ] B.sc [ ] M.sc/Ma [ ] Ph.D. [ ]

SECTION B1. My organization practice collective bargaining as a conflict resolution strategy?a. Strongly agree [ ] b. Agree [ ] c. Disagree [ ] d. Strongly disagree [ ] 2. The productivity of the organization improves with collective bargaining?a. Strongly agree [ ] b. Agree [ ] c. Disagree [ ] d. Strongly disagree [ ] 3. Workers are given adequate incentives?a. Strongly agree [ ] b. Agree [ ] c. Disagree [ ] d. Strongly disagreed [ ] 4. Employee's incentivesare often reviewed?a. Strongly agree [ ] b. Agree [ ] c. Disagree [ ] d. Strongly disagreed [ ] 5. Incentives motivate one to improve his or her productivity?a. Strongly agree [ ] b. Agree [ ] c. Disagree [ ] d. Strongly disagreed [ ] 6. Collective bargaining as a conflict resolution strategy guarantee organizational

effectiveness in your organization?a. Strongly agree [ ] b. Agree [ ] c. Disagree [ ]d. Strongly disagree [ ] 7. The union in this organization have the ability to protect the worker's interest through

collective bargaining?a. Strongly agree [ ] b. Agree [ ] c. Disagree [ ] d. Strongly disagree [ ] 8. Collective bargaining brings about cordial relationship between management

and employees?a. Strongly agree [ ] b. Agree [ ] c. Disagree [ ] d. Strongly disagree [ ] 9. The trend of output level over the last few years has been increasing due to

organizational effectiveness?a. Strongly agree [ ] b. Agree [ ] c. Disagree [ ] d. Strongly disagree [ ] 10. Workers fully participate in decision-making concerning their welfare?a. Strongly agree [ ] b. Agree [ ] c. Disagree [ ] d. Strongly disagree [ ] 11. Industrial unrest in this company is usually controlled through collective bargaining?a. Strongly agree [ ] b. Agree [ ] c. Disagree [ ] d. Strongly disagree [ ] 12. I am satisfied with my job

Strongly agree [ ] b. Agree [ ] c. Disagree [ ] d. Strongly disagree [ ]

100

Education and Science Journal of Policy Review and Curriculum Development (ESJPRCD)Volume 4, No.1 January, 2014Website: Http://www.internationalpolicybrief.org ISSN (Electronic): 1741-8771 ISSN (Print): 1741-8763