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TITLE PAGE
MANAGING INDUSTRIAL RELATIONS IN FEDERAL TEACHING HOSPITALS IN THE SOUTH EAST NIGERIA
BY
AYOGU, DEBORAH UCHE
PG/M.Sc/08/53221
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF SCIENCE
(M.Sc) IN MANAGEMENT
DEPARTMENT OF MANAGEMENT,
FACULTY OF BUSINESS ADMINISTRATION,
UNIVERSITY OF NIGERIA,
ENUGU CAMPUS
SEPTEMBER, 2011.
APPROVAL PAGE
This Dissertation has been approved for the Department of Management, Faculty of
Business administration, University of Nigeria, Enugu Campus, by:
...................................... …………………………….
SUPERVISOR HEAD OF DEPARTMENT PROF. UJF.EWURUM DR C.A EZIGBO
CERTIFICATION
AYOGU, DEBORAH UCHE, A Postgraduate student in the Department of
Management has satisfactorily completed the requirements for the award of Master of
Science (M.Sc) in Management. The work embodied in this dissertation is original
and has not been submitted in part or full for any diploma or degree of this university.
…………………………………
AYOGU, DEBORAH UCHE
PG/M.Sc/08/53221
DEDICATION
This dissertation is dedicated to God Almighty and my beloved brother, Dr B. O
Ayogu
ACKNOWLEDGEMENTS
My immense gratitude goes to God Almighty for His infinite love and Grace lavished
on me throughout the Course of the study.
My Profound gratitude goes to my Supervisor, Professor UJF Ewurum whose
constructive criticisms at various stages of this work made it possible for successful
accomplishment of this work. I must commend him for his patience, diligence and
thoroughness during this work, God bless you immensely.
The researcher is also grateful and indebted to Dr. C.A Ezigbo, the Head of
Department of Management, who offered useful advice and encouragement in the
course of the study.
My gratitude goes to all the lecturers in the Department of Management, University of
Nigeria Enugu Campus who through their lectures and tremendous encouragement
laid the foundation for this study.
Also, my sincere gratitude goes to Dr. Gideon Emerole for the whole lot of assistance
I received from him all through this study.
My special thanks goes to my beloved parents Late chief Ofielu Ayogu and Mrs.
Oriefi Ayogu, My brothers and sisters, Dr B.O Ayogu, Augustus Ayogu, Engr
Kanayochukwu Ayogu,Mrs. Patience Ugwoke, Mrs. Evelyn Dimanyi, and also to my
Sisters In-laws Pham (Mrs) Afy Ayogu and Mrs Chimezie Ayogu for their assistance,
patience, love and encouragement.
I specially thank Johnmark, Agu, Chika, Ifeoma, Blessing, Timi, Cyril, for their
assistance and encouragement.
Above all, I thank God for “watering” my efforts, for without His grace and bountiful
mercies, it would have been impossible for me to complete this work. May God bless
you all.
Ayogu, Deborah Uche
PG/M.Sc/08/53221
ABSTRACT
This study is on Managing Industrial Relations in Federal Teaching Hospitals. The objectives of study are to: examine the nature of industrial relations system in the Federal Teaching Hospital in the South East Nigeria; ascertain the nature of rules guiding industrial relations in Federal Teaching Hospitals in the South East Nigeria; ascertain whether industrial relations promote harmony in Federal Teaching Hospitals in the South East Nigeria; identify the major challenges of managing industrial relations in Federal Teaching Hospitals in the South East Nigeria. Data for this research were obtained from both primary and secondary sources. The study had a population size of 2160, out of which a sample size of 338 was realized using Taro Yamane’s statistical formula. Survey research design was adopted. Friedman Chi-square (X2) and Z-test were used to test the hypotheses. To ensure that the research instruments are valid, a conduct of a pre-test of every question in the questionnaire was carried out. For reliability of the research instruments, a test-re-test method was adopted using Pearson’s Product Moment Correlation Coefficient of reliability to calculate the result and the result gave reliability coefficient of 0.98. Findings indicate that; there is a smooth industrial relations system between management and workers in Federal Teaching Hospitals in the South East Nigeria; there are standard and positive rules guiding industrial relations in Federal Teaching Hospitals in the South East Nigeria; Industrial relations promote harmony in Federal Teaching Hospitals in the South East Nigeria; industrial disputes and strikes are the major challenges of managing industrial relations in Federal Teaching Hospitals in the South East Nigeria. Based on the findings, the study recommends that there should be adequate salaries, allowances and incentives for workers in order to boost workers morale and enhance better industrial harmony. Management should create a good working environment that can motivate employees to be committed to their organizations. Management should involve their employees in decision making concerning industrial related matters that may result to conflict.
TABLE OF CONTENTS
Title Page i Approval page ii Certification iii Dedication iv Acknowledgements v Abstract vi Table of Contents vii List of Tables x List of Figures xi CHAPTER ONE: INTRODUCTION 1.1 Background of the Study 1 1.2 Statement of the Problem 3 1.3 Objectives of the Study 4 1.4 Research Questions 4 1.5 Research Hypotheses 4 1.6 Significance of the Study 5 1.7 Scope of the Study 5 1.8 Limitations of the Study 5 1.9 Definition of Terms 6
References
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Concept of Industrial Relations 8 2.2 Overview of Industrial Relations Systems Model 18 2.3 Concept of Labour Law 23 2.4 The Nature of Relationship between the Employer and Employee 28 2.5 Regulation of Employment and Duties of Employers and Employees 32 2.6 Industrial Disputes/Challenges 40
References 63
CHAPTER THREE: RESEARCH METHODOLOGY 3.1 Research Design 66 3.2 Sources of Data 66 3.3 Population of the Study 66 3.4 Sample Size Determination 67
3.5 Description of Research Instrument 68 3.6 Data Analysis Techniques 69
3.9 Reliability of the Research Instrument 69
References 71
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS 72
CHAPTER FIVE 5.1 Summary of Major Findings 96 5.2 Conclusions 96 5.3 Recommendations 96 5.4 Contribution to Knowledge 97 5.5 Suggested Area for Future Research 99
Bibliography Appendix 1 Appendix 11
LIST OF TABLES
TABLES 3.1 Population Distribution 67 3.2 Breakdown of sample size 68 3.3 Correlation coefficient of reliability 69 4.1 Distribution and Return of the Questionnaire 72 4.2 Sex Distribution of Respondents 72 4.3 Age Distribution of Respondents 73 4.4 Marital Status 73 4.5 Education Qualification 73 ����������The nature of industrial relations system in Federal Teaching Hospitals in the South East Nigeria 74 4.7 The nature of industrial relations system in Federal Teaching Hospitals in the South East Nigeria 74 4.8 The nature of industrial relations system in Federal Teaching Hospitals in the South East Nigeria 75 4.9 The nature of industrial relations system in Federal Teaching Hospitals in the South East Nigeria 75 4.10 The nature of industrial relations system in Federal Teaching Hospitals in the South East Nigeria 76 4.11����Condensed outcome of the five questions administered for testing Hypothesis one����������������������������������������������������������������������������������������������������������������������� �����
4.12 Aggregate response for the two hospitals 77 4.13 Expected frequencies for Hypothesis one 77 4.14 The nature of rules guiding industrial relations in Federal Teaching Hospitals in the South East Nigeria. 77 4.15 The nature of rules guiding industrial relations in Federal Teaching Hospitals in the South East Nigeria. 78 4.16 The nature of rules guiding industrial relations in Federal Teaching Hospitals in the South East Nigeria. 78 4.17 The nature of rules guiding industrial relations in Federal Teaching Hospitals in the South East Nigeria. 79 4.18 The nature of rules guiding industrial relations in Federal Teaching Hospitals in the South East Nigeria. 79 4.19 Condensed outcome of the five questions administered for testing Hypothesis two 80 4.20 Aggregate response for the two hospitals 80 4.21 Expected frequencies for Hypothesis two 80 4.22 Industrial relations promote harmony in Federal Teaching Hospitals in the South East Nigeria. 81 4.23 Industrial relations promote harmony in Federal Teaching Hospitals in the South East Nigeria. 81 4.24 Industrial relations promote harmony in Federal Teaching Hospitals in the South East Nigeria. 82 4.25 Industrial relations promote harmony in Federal Teaching Hospitals in the South East Nigeria. 82
4.26 Industrial relations promote harmony in Federal Teaching Hospitals in the South East Nigeria. 83 4.27 Condensed outcome of the five questions administered for testing Hypothesis three 83 4.28 Aggregate response for the two hospitals 84 4.29 Expected frequencies for Hypothesis three 84 4.30 The major challenges of managing industrial relations in Federal Teaching Hospitals in the South East Nigeria. 84 4.31 The major challenges of managing industrial relations in Federal Teaching Hospitals in the South East Nigeria. 85 4.32 The major challenges of managing industrial relations in Federal Teaching Hospitals in the South East Nigeria. 85 4.33 The major challenges of managing industrial relations in Federal Teaching Hospitals in the South East Nigeria. 86 4.34 The major challenges of managing industrial relations in Federal Teaching Hospitals in the South East Nigeria. 86 4.35 Condensed outcome of the five questions administered for testing Hypothesis four 87 4.36 Aggregate response for the two hospitals 87 4.37 Expected frequencies for Hypothesis four 87 4.38 Descriptive Statistics 88 4.39 Ranks 89 4.40 Test Statistics 89 4.41 Descriptive Statistics 90 4.42 Ranks 91 4.43 Test Statistics 91 4.44 One-Sample Kolmogorov-Smirnov Test table 92 4.45 One-Sample Kolmogorov-Smirnov Test table 93
LIST OF FIGURES
Figure 2.1: Machinery for Prevention and Settlement of
Industrial Relations 45
Figure 2.2: Conflict 59
Figure 5.1: Models of Industrial Relations System 97
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Organization exists at the instance of the efforts of both the employer and the
employees who are the prime movers of the operational activities of the entity. The two
parties therefore, co-exist and interact in the course of the day-to-day operations of the
organization. The above scenario in the workplace implies that there is defined
relationship between the employer and the employees. Such two parties in the
organization engage in formal relationship, which is purely for operational purposes.
Therefore, the relationship between the employer and the employees is contractual in
nature, which is that of master-servant relations. The implication is that industrial
relations as a term embrace all aspects of the relationship between individual workers
and groups (trade union and the management) in the course of organizational operations
( Akubuiro, 2003).
Fajana, (1995) states that industrial relations cover all aspects of employment relations
between the employer and the employees in organizational operations. Hence, it relates
to contractual relationship between the employer and the employees, regulation of
conditions of service, collective bargaining, management of strikes, industrial
democracy, employer-trade unions relations, and organization personnel policies on
how to relate on mutual basis with individual workers and their trade unions in the
course of organizational operations.
Generally industrial relations can be viewed as employee – employer relationship in the
work place, the essence of which is to enhance employee satisfaction, and the
furtherance of industrial peace and organizational growth (Swanepoel 2002). Other
dimension to industrial relations is its tripartite nature as a relationship that exists
between workers, employers and government.
According to Emiola, (2000), the position of the government is that of a regulator and
protector of the workers’ rights. The legality of industrial relations derives from
government’s recognition of employer and employees as partners in the production of
goods and services. In the same vein, there is a range of government legislation
regulating their (the employer and the employees) day-to-day activities. It implies that
the position of government in industrial relations is one of acting as the watch-dog over
the relationship between the employer and employees in the workplace. The essence of
industrial relations revolves around the determination of general conditions of service,
discipline, maintaining a stable work force, maintaining an ideal level of productivity,
and providing welfare facilities for workers, among other issues in the workplace
(Akubuiro, 2003).
The existence of unions is to allow workers to participate in the determination of
policies under which they will consent to work. The principal interest of the employer
on the other hand, is to maintain control of the organization, especially by monitoring
allocation of organization’s resources. While the trade union demands represent extra
cost to the employer, the employer in order to remain in business will introduce some
measures to cut down costs by all means so as to make the maximum profit margin
(Thiebart, 2003).
The result is that there is latent and often manifest of antagonism among the two parties,
occasioned by the fact that their respective interests are at variance except in their bid to
ensure continuity of production which fosters their dependence on each other for
survival. There will be effective industrial relations in an organization if the following
conditions exit:
i. Effective Communication and mutual understanding between the employer (or
management) and trade unions;
ii. Payment of wages and salaries and the implementation of all other conditions of
service, which are fair and reasonable;
iii. High worker morale and the highest degree of workers identification with the
economic objective of the enterprise;
iv. The lowest possible level of industrial grievances and trade disputes.
Good industrial relations can make the enterprise move towards the welfare of the
employees and the management of the concern. Cordial and peaceful industrial relations
between the employees and employers are highly essential for enhancing productivity
and the economic growth of the organization (Debendra, 2009).
According to Swanepoel (2002), industrial relations have a broad as well as a narrow
outlook. Originally, industrial relations were broadly defined to include the
relationships and interactions between employers and employees. From this perspective,
industrial relations cover all aspects of the employment relationship, including human
resource management, employee relations, and union-management (or labor) relations.
Now its meaning has become more specific and restricted. Accordingly, industrial
relations pertains to the study and practice of collective bargaining, trade unionism, and
labor-management relations,
However, this study intend to achieve the relationships which arise at and out of the
workplace to include the relationships between individual workers, the relationships
between workers and their employer, the relationships employers and workers have
with the organizations formed to promote their respective interests, and the relations
between those organizations, at all levels. Industrial relations also includes the
processes through which these relationships are expressed (such as, collective
bargaining, workers’ participation in decision-making, and grievance and dispute
settlement), and the management of conflict between employers, workers and trade
unions, when it arises ( Adeogun, 1997).
1.2 STATEMENT OF PROBLEM
The harmonious relationship between employees and employers is a critical
determinant for the realization of organizational goals. Based on the contractual
relationship between the workforce and management, both parties are expected to meet
the conditions stated in the employment contract. However, most times management
fails to implement the procedural and substantive agreements with the labour unions
representing the workforce in organizations.
In view of the above situation, employees of organizations manifest traits of industrial
discontent such as lateness to work, absenteeism and refusal to put in their
effort/carryout management orders. In extreme cases, there are industrial disputes and
strike actions. This has become a recurring decimal of the health sub sector in Nigeria.
In recent times, there has been stoppage of health care delivery services due to
industrial disputes between workers and managements.
This does not argurwell for the quick recovery of in patient in the Nigeria hospitals. The
resultant effect is the incidence of high death rate in the country.
There is also the effect of economic loss to the country arising from the death of
patients that constitutes the labour force. It is against this background that this study
seeks to investigate the place of managing industrial relations in the south east Federal
teaching hospitals of Nigeria.
1.3 OBJECTIVES OF THE STUDY
The Specific objectives of the study include the following:
1
To examine the nature of industrial relations system in the Federal Teaching
Hospital in the South East Nigeria.
2
To ascertain the nature of rules guiding industrial relations in the Federal Teaching
Hospitals in South East Nigeria.
3 T
o ascertain whether industrial relations promote harmony in the Federal Teaching
Hospitals in South East Nigeria.
4 T
o identify the majors challenges of managing industrial relations in Federal
Teaching Hospitals in the South East Nigeria.
1.4 RESEARCH QUESTIONS
This research shall attempt to provide answers to the following questions:
1. What is the nature of industrial relations system in Federal Teaching Hospitals
in South East Nigeria?
2. What is the nature of rules guiding industrial relations in Federal Teaching
Hospitals in the South East Nigeria?
3. Can industrial relations promote harmony in Federal Teaching Hospitals in the
South East Nigeria?
4. What are the major challenges of managing industrial relations in Federal
Teaching Hospitals in the South East Nigeria?
1.5 RESEARCH HYPOTHESES
The following hypotheses were formulated for the study:
1.
There is a smooth industrial relations system between management and workers in
Federal Teaching Hospitals in the South East Nigeria.
2
There are standard and positive rules guiding industrial relations in Federal Teaching
Hospitals in the South East Nigeria.
3 I
ndustrial relations promote harmony in Federal Teaching Hospitals in the South
East Nigeria.
4 I
ndustrial disputes and strikes are the major challenges of managing industrial
relations in federal teaching hospitals in the south east Nigeria.
1.6 SIGNIFICANCE OF THE STUDY
The significance of this study cannot be over-emphasized and can be viewed from the
following perspectives.
• Health sector contributes a great deal to the development of the Nigerian
society. Therefore, a study on industrial relations in this sector is necessary.
• The study provides information on management of industrial conflicts.
• The study significantly improves understanding of rules and regulations guiding industrial relations. This will bring about industrial harmony.
• The study will be relevant to future researchers as it will serve as a guide for
further studies.
1.7 SCOPE OF THE STUDY
The study focuses on managing industrial relations in Federal Teaching Hospitals. The
study is delimited to nature of industrial relations, rules guiding industrial relations as
well as the challenges of managing Industrial Relations. Two federal Teaching
Hospitals were selected from South- East geopolitical zone. The Teaching Hospitals for
the study include: University of Nigeria Teaching Hospital Enugu and Nnamdi Azikiwe
Teaching Hospital Awka.
1.8 LIMITATIONS OF THE STUDY
In the process of conducting the research, the researcher was impeded by some
constraints such as;
Finance - This is a major constraint as sourcing for some vital information from some
teaching hospitals require a lot of money. The researcher has not got enough money to
carry an indept study.
Time Constraint –One of the reasons for restricting the area of this study to South-east
geopolitical zone is time; some of the places where data and relevant information could
have been obtained were not visited.
Attitude of the Respondents –Some respondents feel indisposed to provide vital
information concerning their Hospitals as a result of prejudiced opinion conceived
about the study.
1.9 CONCEPTUAL DEFINITION OF KEY TERMS
Industrial Relations
This is a tripartite relationship of government and its agencies, employers and their
associations and workers and unions. (Hornby, 2001; Yesufu, 2006; Fashoyin, 2005).
Collective Bargaining
This refers to the method of the use of bilateral negotiations across the table between
representatives of employees and those of employers or management to resolve
problems relating to wages and salary, bonus and other allowances, medical and
housing facilities, working conditions, safety and health, education for their children
and so on (Sheikh, 2000).
Conditions of service
These refer to the benefits and entitlements provided for the employees; basis for their
services (Debendra, 2009:59).
Employee
An employee is a worker or somebody engaged so that the organization’s goals and
objectives are realized ( Njoku 2005).
Management
Management is the process of getting things done effectively and efficiently, through
and with other people. (Robins and Decenzo 2005).
Industrial Dispute
Industrial dispute is any dispute or differences between employers and employees
which is connected with the employment or non-employment or the terms of
employment or with the conditions of labour of any person. (Debedra 2003)
Labour law
Labour Law is that branch of the country’s law which regulates industrial relations
(Ogunniyi 2004).
REFERENCES
Adeogun, A. A. (1997), “Strikes and Trade Disputes in the Public Sector” in Nigeria,
Lagos: Macmillan Nigeria Publishers in association with the Department of
Industrial Relations and Personnel Management, University of Lagos.
Akubuiro, N. H. (2003), Industrial Relations and Industrial Laws, Shomolu – Lagos:
PMA Printers.
Brauch, Y. (2004), Transforming Careers: From Linear to Multidirectional Career
paths-organisational and individual perspectives, Career Development
International.
Debendra, K.P (2009), Industrial Relations, UDH Publication, New Delhi-2. Emiola, A. (2000), Nigerian Industrial Law, 3rd Edition, Lagos: Emiola Publishers
Limited. Fajana, S. (1995), Industrial Relations in Nigeria: Theory and Features, Lagos: Labofin
and Company.
Fashoyin, T. (2005), Industrial Relations in Nigeria: Development and Practices,
London: Longman Group Limited.
Hornby, A.S. (2001) Oxford Advanced Learners Dictionary, Oxford: Oxford University
Press.
Imaga, E.U.L (2001), Administrative and management theory and practice, Lano
publishers.
Sheikh, A.M. (2006) , Human Resource Development and Management, New Delhi: S.
Chand and Company Limited.
Swanepoel (2002), Industrial Relations Management, Micro and Pretoria: University of
South Africa Press.
Thiebart, P. (2003), “Economic Dismissal of a Single Employee in France, 2003
Bender’s Industrial and Employ”. Bull. 167.
Yesufu, T.M. (2006), An Introduction to Industrial Relations in Nigeria, London: Oxford University Press.
CHAPTER TWO
REVIEW OF THE RELATED LITERATURE
2.1 CONCEPT OF INDUSTRIAL RELATIONS
In the broad sense, industrial relations cover all such relationships that a business
enterprise maintains with various sections of the society such as workers, state,
customers and public who come into its contact.
In the narrow sense, it refers to all types of relationships between employer and
employees, trade union and management, workers with union and between workers and
workers. It also includes all sorts of relationships at both formal and informal levels in
the organization.
Dunlop (2001) defines industrial relations as “the complex interrelations among
managers, workers and agencies of the governments”. According to Dale Yoder (2004),
“industrial relations is the process of management dealing with one or more unions with
a view to negotiate and subsequently administer collective bargaining agreement or
labour contract”.
Industrial relations, therefore is one way one seeks to study how people get on together
at their work place, what difficulties arise between them, how their relations including
wages and working conditions etc., affects them and are regulated. Industrial relations,
thus, include both ‘industrial relations’ and ‘collective relations’ as well as the role of the
state in regulating these relations (Debendra 2009). Accordingly, Quinn (2000) sees
industrial relations as the study and practice of collective bargaining, trade unionism, and
labor-management relations.
Industrial relations deal with the way in which both common and divergent interest are
or must be expressed to accommodate and reconciled (Sweet and Maxwell 1998). But in
its broadest definition, industrial relations (labour-management) concerns the entire
range of human relationships at the workplace especially as characterized by the
employment of one group (the employed) by another (the employer). Mamoria and
Sathish (2002) see industrial relations as a discipline concerned with the systematic
study of all aspects of the employment relationship. Basically, industrial relations
involve the interaction of three main actors thus: the workers with their unions,
employers with their associations and the government and its agencies. It is an
identifiable scheme which admits, in addition, the inflow of outputs of other systems, the
impact of the shareholders and customers. It also involves a rule making exercise,
politics (power relations) economic and social in nature. Industrial relations refer to
processes and outcomes involving employment relationships. Frequently, the term is
used in a narrower sense, for employment relationships involving collective
representation of employees in the form of a labour union or employee association
(Erickson, 1998).
Similarly, industrial relations is not limited to formal employment relationships, but
rather to what one might call "functional employment relationships." There are many
instances where workers are technically classified as self-employed" independent
contractors," and yet for practical purposes these workers are essentially employees.
Many laws governing employment are limited to formal employment relationships, and
independent contractor status is often used by firms as a means of cutting labor costs,
possibly by avoiding or evading legal obligations to employees ( Lewin, 2000).
2.1.1 Distinction between Human Relations and Industrial Relations Akubuilo (2001), states that the term ‘human relations’ stresses the processes of inter-
personal relationships among individuals as well as the behavior of individuals as
members of groups. While the term ‘industrial relations’ is used widely in industrial
organizations and refers to the relations between the employers and workers in an
organization, at any specified time.
Thus, while problem of human relations are personal in character and are related to the
behavior of individuals where moral and social element predominate, the term ‘industrial
relations’ is comprehensive covering human relations and the relations between the
employers and workers in an organization as well as matters regulated by law or by
specific collective agreement arrived at between trade unions and the management.
However, the concept of ‘industrial relations’ has undergone a considerable change since
the objective of evolving sound and healthy industrial relations today is not only to find
out ways and means to solve conflicts or resolve difference but also to secure unreserved
cooperation and goodwill to divert their interest and energies toward constructive
channel. The problems of industrial relations are therefore, essentially problems that may
be solved effectively only by developing in conflicting social groups of an industrial
undertaking, a sense of mutual confidence, dependence and respect and at the same time
encouraging them to come closer to each other for removing misunderstanding if any, in
a peaceful atmosphere and fostering industrial pursuits for mutual benefits.
2.1.2 Objectives of Industrial Relations According to Tripathi (2001), the basic needs of an industrial worker are security of job,
freedom from fear and other basic amenities like food, clothing and shelter etc. An
environment which gives workers a job satisfaction, assures them a bright future and
which satisfies their basic needs in life refers to a good industrial relations. The
objectives of good industrial relations are:
1. To bring better understanding and cooperation between employers and workers.
2. To establish a proper channel of communication between workers and management.
3. To ensure constructive contribution of trade unions.
4. To avoid industrial conflicts and to maintain harmonious relations.
5. To safeguard the interest of workers and the management.
6. To work in the direction of establishing and maintaining industrial democracy.
7. To ensure workers’ participation in decision-making.
8. To increase the morale and discipline of workers.
9. To ensure better working conditions, living conditions and reasonable wages.
10. To develop employees to adapt themselves for technological, social and economic
changes.
11. To make positive contributions for the economic development of the country (Tripathi, 2001).
2.1.3 Importance of Industrial Relations Maintenance of harmonious industrials relations is one vital importance for the survival
and growth of the industrials enterprise. Good industrial relations result in increased
efficiency and hence prosperity, reduced turnover and other tangible benefits to the
organization. Daver (2002) identifies the important of industrial relations to include the
following:
1. It establishes industrial democracy: Industrial relations means settling employees’
problems through collective bargaining, mutual cooperation and mutual agreement
amongst the parties i.e., management and employees’ unions. This helps in
establishing industrial democracy in the organization which motivates them to
contribute their best to the growth and prosperity of the organization.
2. It contributes to economic growth and development: Good industrial relations lead
to increased efficiency and hence higher productivity and income. This will result in
economic development of the economy.
3. It improves morale of the work force: Good industrial relations, built-in mutual
cooperation and common agreed approach motivate one to contribute one’s best,
result in higher productivity and hence income, give more job satisfaction and help
improve the morale of the workers.
4. It ensures optimum use of scare resources: Good and harmonious industrial
relations create a sense of belongingness and group-cohesiveness among workers,
and also a congenial environment resulting in less industrial unrest, grievances and
disputes. This will ensure optimum use of resources, both human and materials,
eliminating all types of wastage.
5. It discourages unfair practices on the part of both management and unions:
Industrial relations involve setting up machinery to solve problems confronted by
management and employees through mutual agreement to which both these parties
are bound. This results in banning of the unfair practices being used by employers or
trade unions.
6. It prompts enactment of sound labour legislation: Industrial relations necessitate
passing of certain labour laws to protect and promote the welfare of labour and
safeguard interests of all the parties against unfair means or practices.
7. It facilitates change: Good industrial relations help in improvement of cooperation,
team work, performance and productivity and hence in taking full advantages of
modern inventions, innovations and other scientific and technological advances. It
helps the work force to adjust them to change easily and quickly.
2.1.4 Causes of Poor Industrial Relations Kapur and Punia (2003), state that the main cause or source of poor industrial relations
resulting in inefficiency and labour unrest is mental laziness on the part of both
management and labour. Management is not sufficiently concerned to ascertain the
causes of inefficiency and unrest following the laissez-faire policy, until it is faced with
strikes and more serious unrest. Even with regard to methods of work, management does
not bother to devise the best method but leaves it mainly to the subordinates to work it
out for themselves. Contempt on the part of the employers towards the workers is
another major cause. However, the following are briefly the causes of poor industrial
relations:
1. Mental inertia on the part of management and labour;
2. An intolerant attitude of contempt of contempt towards the workers on the part of
management.
3. Inadequate fixation of wage or wage structure;
4. Unhealthy working conditions;
5. Indiscipline;
6. Lack of human relations skill on the part of supervisors and other managers;
7. Desire on the part of the workers for higher bonus and the corresponding desire of the
employers to give as little as possible;
8. Inappropriate introduction of automation without providing the right climate;
9. Unduly heavy workloads;
10. Inadequate welfare facilities;
11. Dispute on sharing the gains of productivity;
12. Unfair labour practices, like victimization and undue dismissal;
13. Retrenchment, dismissals and lock-outs on the part of management and strikes on the
part of the workers;
14. Inter-union rivalries; and
15. General economic and political environment, such as rising prices, strikes by others,
and general indiscipline having their effect on the employees’ attitudes.
2.1.5 Approaches to Industrial Relations Industrial conflicts are the results of several socio-economic, psychological and political
factors. Various lines of thoughts have been expressed and approaches used to explain
his complex phenomenon. Bhagoliwal (2003) observes that an economist tries to
interpret industrial conflict in terms of impersonal markets forces and laws of supply
demand. To a politician, industrial conflict is a war of different ideologies – perhaps a
class-war. To a psychologist, industrial conflict means the conflicting interests,
aspirations, goals, motives and perceptions of different groups of individuals, operating
within and reacting to a given socio-economic and political environment”.
2.1.5.1 Psychological Approach
According to psychologists, problems of industrial relations have their origin in the
perceptions of the management, unions and rank and file workers. These perceptions
may be the perceptions of persons, of situations or of issues involved in the conflict. The
perceptions of situations and issues differ because the same position may appear entirely
different to different parties. The perceptions of unions and of the management of the
same issues may be widely different and, hence, clashes and may arise between the two
parties. Other factors also influence perception and may bring about clashes.
The reasons of strained industrial relations between the employers and the employees
can be understood by studying differences in the perception of issues, situations and
persons between the management groups and labour groups.
The organizational behavior of inter-groups of management and workers is of crucial
importance in the pattern of industrial relations. The group-dynamics between the two
conflicting groups in industrial relations tend to shape the behavioural pattern.
2.1.5.2 Sociological Approach
Industry is a social world in miniature. The management goals, workers’ attitudes,
perception of change in industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-symbols, rationality,
acceptance or resistance to change, tolerance etc. Industry is, thus inseparable from the
society in which it functions. Through the main function of an industry is economic, its
social consequences are also important such as urbanization, social mobility, housing
and transport problem in industrial areas, disintegration of family structure, stress and
strain, etc. As industries develop, a new industrial-cum-social pattern emerges, which
provides general new relationships, institutions and behavioural pattern and new
techniques of handling human resources. These do influence the development of
industrial relations.
2.1.5.3 Human Relations Approach
Human resources are made up of living human beings. They want freedom of speech, of
thought of expression, of movement, etc. When employers treat them as inanimate
objects, encroach on their expectations, throat-cuts, conflicts and tensions arise. In fact
major problems in industrial relations arise out of a tension which is created because of
the employer’s pressures and workers’ reactions, protests and resistance to these
pressures through protective mechanisms in the form of workers’ organization,
associations and trade unions.
Through tension is more direct in work place; gradually it extends to the whole industry
and sometimes affects the entire economy of the country. Therefore, the management
must realize that efforts are made to set right the situation. Services of specialists in
Behavioural Sciences (namely, psychologists, industrial engineers, human relations
expert and personnel managers) are used to deal with such related problems. Assistance
is also taken from economists, anthropologists, psychiatrists, pedagogists, etc. In
resolving conflicts, understanding of human behavior – both individual and groups – is a
pre-requisite for the employers, the union leaders and the government – more so for the
management. Conflicts cannot be resolved unless the management must learn and know
what the basic what the basic needs of men are and how they can be motivated to work
effectively.
It has now been increasingly recognized that much can be gained by the managers and
the worker, if they understand and apply the techniques of human relations approaches to
industrial relations. The workers are likely to attain greater job satisfaction, develop
greater involvement in their work and achieve a measure of identification of their
objectives with the objectives of the organization; the manager, on their part, would
develop greater insight and effectiveness in their work.
2.1.6 Principle of Good Industrial Relations Daver (2002) identifies principles of good industrial relations to include:
• The willingness and ability of management and trade unions to deal with the
problems freely, independently and with responsibility.
• Recognition of collective bargaining.
• Desirability of associations of workers and managements with the Government while
formulating and implementing policies relating to general economic and social measures
affecting industrial relations.
• Fair redressal of employee grievances by the management
• Providing satisfactory working conditions and payment of fair wage.
• Introducing a suitable system of employees’ education and training.
• Developing proper communication system between management and employees.
• To ensure better working conditions, living conditions and reasonable wages.
• To develop employees to adapt themselves for technological, social and economic
changes.
• To make positive contributions for the economic development of the country.
2.1.7 Role of State in Industrial Relations
In recent years the State has played an important role in regulating industrial relations
but the extent of its involvement in the process is determined by the level of social and
economic development while the mode of intervention gets patterned in conformity with
the political system obtaining in the country and the social and cultural traditions of its
people. The degree of State intervention is also determined by the stage of economic
develop. For example, in a developing economy like ours, work-stoppages to settle
claims have more serious consequences than in a developed economy and similarly, a
free market economy may leave the parties free to settle their relations through strikes
and lockouts but in other systems varying degrees of State participation is required for
building up sound industrial relations.
In India, the role played by the State is an important feature in the field of industrial
relations and State intervention in this area has assumed a more direct form. The State
has enacted procedural as well as substantive laws to regulate industrial relations in the
country.
2.1.8 Role of Management in Industrial Relations The management has a significant role to play in maintaining smooth industrial relations.
For a positive improvement in their relations with employees and maintaining sound
human relations in the organization, the management must treat employees with dignity
and respect. Employees should be given ‘say’ in the affairs of the organization generally
and wherever possible, in the decision-making process as well. A participative and
permissive altitude on the part of management tends to give an employee a feeling that
he is an important member of the organization – a feeling that encourages a spirit of
cooperativeness and dedication to work.
• Management must make genuine efforts to provide congenial work environment.
• They must make the employees feel that they are genuinely interested in their
personal development. To this end, adequate opportunities for appropriate programmes
of training and development should be provided.
• Managements must delegate authority to their employees commensurate with
responsibility.
• They must evolve well conceived and scientific wage and salary plan so that the
employees may receive just compensation for their efforts. They must devise, develop
and implement a proper incentive plan for personnel at all levels in the organization.
• There must be a well-planned communication system in the organization to pass on
information and to get feedback from the employees.
• Managements must pay personal attention to the problems of their employees
irrespective of the fact whether they arise out of job environment or they are of personal
nature.
• They must evolve, establish and utilize appropriate machineries for speedy redressal
of employees grievances.
• Managements must provide an enlightened leadership to the people in the
organization.
An environment of mutual respect, confidence, goodwill and understanding on the part
of both management and employees in the exercise of their rights and performance of
their duties should prevail for maintaining good industrial relations.
2.1.9 Role of Trade Unions in Maintaining Industrial Relations The trade unions have a crucial role to play in maintaining smooth industrial relations.
It is true that the unions have to protect and safeguard the interests of the workers
through collective bargaining. But at the same time they have equal responsibility to
see that the organizations do not suffer on account of their direct actions such as
strikes, even for trivial reasons. They must be able to understand and appreciate the
problems of managements and must adopt a policy of ‘give and take’ while
bargaining with the managements. Trade unions must understand that both
management and workers depend on each other and any sort of problem on either side
will do harm to both sides. Besides public are also affected, particularly when the
institutions involved are public utility organizations.
2.1.10 Planning Industrial Relations: Tasks Ahead In future organization systems, employees would consider themselves to be partners
in management and expect their talents to be utilized to the fullest. With increased
self-esteem and self-image, young graduates will resist authority and would challenge
prevailing management prerogatives. Tomorrow’s management control centers,
advanced OR models will aid future managers in the use of resources, they would
need to balance humanistic values with the flow of advancing science and technology.
According to Victor Fuchs, “In future, the large corporation is likely to be over-
shadowed by the hospital, university, research institutes, government offices and
professional organizations that are the hallmarks of a service economy’. Following
the concept of ‘corporate citizenship’, the ‘responsible corporation’ has to develop as
a social institution, where people share success and failure, create ideas, interact and
work for development and realization of the individual’s potential as human being.
Since Industrial Relations is a function of three variables – management, trade unions
and workers, a workable approach towards planning for healthy labour-management
relations can be developed by:
• Defining the acceptable boundaries of employer/ employee action; • Granting the freedom to act within these boundaries; and • Monitoring the resulting developments.
For achieving the objectives of improved management – trade union the following line of action is suggested:
• A realistic attitude of managers towards employees and vice versa for humanizing industrial relations.
• Proper organization climate and extension of area of Industrial Relations, • Institutionalism of industrial relations and effective forums for interaction
between management and trade unions at plant, industry and national levels. • A comprehensive system of rules and discipline, • The maintenance of an efficient system of communication, • An objective follow-up pattern for industrial relations system. • Respect for public opinion and democratic values • An integrated industrial relations policy incorporating rational wage policy;
trade union and democratic rights, sanctity of ballot, collective bargaining and tripartite negotiations.
Whatever labour laws may lay down, it is the approach of the management and union
which matters and unless both are enlightened, industrial harmony is not possible. In
fact both managements and workers need a change in their philosophy and attitudes
towards each other. In all fairness, both management and workers should not look
upon themselves as two separate and distinct segments of an organization, but on the
contrary, realize that both are partners in an enterprise working for the success of the
organization for their mutual benefit and interest. It is becoming increasingly obvious
that industrial peace amongst all participants in the industrial relations systems
requires truth as foundation, justice as its rule, love as its driving force, and liberty as
its atmosphere.
2.2 OVERVIEW OF INDUSTRIAL RELATIONS SYSTEMS MODEL The conceptual framework for the study of industrial relations is the "Industrial
Relations Systems" model advanced by Dunlop (2001). The concept of a system is
applied in the sense that industrial relations, according to Quinn (2002), author of
Labor-Management Relations, consists of the "processes by which human beings and
organizations interact at the workplace and, more broadly, in society as a whole to
establish the terms and conditions of employment." In other words, certain inputs (e.g.,
human labor, capital, managerial skill) from the environment are combined via
alternative processes (e.g., collective bargaining, unilateral management decisions,
legislation) to produce certain outcomes (e.g., production, job satisfaction, wage rates).
Consistent with the definitions of industrial relations system noted above, the study of
industrial relations and the systems model focus on outcomes most closely related to the
interaction of employees and employers and the "web of rules" concerning employment
that they and their organizations, along with government, establish to govern employer-
employee relations. Thus production per se is a system outcome, but not a principal
focus of industrial relations. It has been noted that the industrial relations system concept
may fall short of the definition of a system in the physical or biological sciences, but
nonetheless the concept has proved useful and endured. Dunlop, in Industrial Relations
Systems, noted that industrial relations systems can be thought of as being embedded in
broader social systems. In Collective Bargaining and Industrial Relations, Kochan(1999)
observes that like any complex social system, industrial relations systems are best
understood by identifying and analyzing their various components and how they interact
with one another to produce certain outcomes. The major components of the industrial
relations system are:
1. The actors (workers and their organizations, management, and government).
2. Contextual or environmental factors (labor and product markets, technology, and
community or "the locus and distribution of power in the larger society" [from Dunlop's
Industrial Relations Systems]).
3. Processes for determining the terms and conditions of employment (collective
bargaining, legislation, judicial processes, and unilateral management decisions, among
others).
4. Ideology or a minimal set of shared beliefs, such as the actors' mutual acceptance
of the legitimacy of other actors and their roles, which enhance system stability.
5. Outcomes, including wages and benefits, rules about work relations (e.g.,
standards for disciplinary action against workers), job satisfaction, employment security,
productive efficiency, industrial peace and conflict, and industrial democracy.
2.2.1 Purpose of Industrial Relations System The basic purposes of the industrial relations systems concept according to Dunlop
(2001), are to provide a conceptual framework for organizing knowledge about industrial
relations and for understanding how various components of an industrial relations
system combine to produce particular outcomes (and hence why outcomes vary from one
setting to another or over time). Thus for example, wage rates for a particular group of
workers might be understood as reflecting the interactions of their unions with
management via collective bargaining within the constraints of a particular market,
technological, and community environment.
The precise specification of system components may vary with the level of analysis and
from one system to another. For example, when applied to a particular work site,
legislation may be best understood as an environmental constraint upon the immediate
parties to the employment relationship (workers, management, and possibly unions). But
when speaking of a nation's industrial relations system or systems, legislation can be
viewed as a process by which the parties (via government) establish terms and
conditions of employment or the rules workers and management must follow in
establishing those terms and conditions. As another example, when comparing industrial
relations systems at a given level of analysis, the roles of the various actors may differ.
Unions may play a critical role in one system, and virtually no role in another. In some
national systems, other actors such as the military or organized religious institutions may
play influential roles. The nature of actor roles may also vary across industries within a
nation, perhaps as best illustrated by public sector employment, where government is
also the employer.
2.2.2 Objectives of Sound Industrial Relations
A sound industrial relations system is not capable of precise definition. Every industrial
relations system has to take into account, and reflect, cultural factors. Systems cannot
change culture, but only behavior within a cultural environment. As such, one can only
describe some of the elements which have generally come to be recognized as
contributing to a sound industrial relations system. These elements would constitute a
sort of 'check-list'. A relatively sound industrial relations system according to
Bhagoliwal (2003), will exhibit some of these elements.
¬ A sound industrial relations system is one in which relationships between management
and employees (and their representatives) on the one hand, and between them and the
State on the other, are more harmonious and cooperative than conflictual and creates an
environment conducive to economic efficiency and the motivation, productivity and
development of the employee and generates employee loyalty and mutual trust.
¬ Industrial relations itself may again be described as being concerned with the rules,
processes and mechanisms (and the results emanating therefrom) through which the
relationship between employers and employees and their respective representatives, as
well as between them on the one hand and the State and its agencies on the other, is
regulated.
¬ Industrial relations seek to balance the economic efficiency of organizations with equity,
justice and the development of the individual, to find ways of avoiding, minimizing and
resolving disputes and conflict and to promote harmonious relations between and among
the actors directly involved, and society as a whole.
¬ The rules, processes and mechanisms of an industrial relations system are found in
sources such as laws (legislative, judicial, quasi-judicial), practices, customs, agreements
and arrangements arrived at through a bipartite or tripartite process or through
prescription by the State.
2.2.3 Importance of Industrial Relations System
Tripathi & Arya (2001) identify the important of industrial relations system to include:
¬ A sound labour management relations system is important to the removal of one of the
main objections of workers and unions to productivity drives by employers. Productivity
increases have sometimes been opposed by workers and unions on the grounds that they
do not result in equitable sharing of benefits to workers and that increased productivity
may lead to redundancy. Developing understanding of basic productivity concepts and of
the methods of increasing productivity, as, well as of the formulation of equitable
productivity gain-sharing schemes help to dispel such suspicions. This task is easier
where there are mechanisms which provide for dialogue and two-way communication
between management and workers.
¬ Labour management relations therefore play a crucial role in securing acceptance by
workers and unions of the need for productivity improvement, and also in obtaining their
commitment to achieving it.
¬ Cooperation between management and workers or unions facilitates not only a
settlement of disputes or disagreements but also the avoidance of disputes which may
otherwise arise.
2.2.4 Criticisms of the Industrial Relations Systems Model Although it has endured, the industrial relations systems concept has been criticized
and challenged. Criticisms have included charges that it is too static, failing to specify
how change occurs in industrial relations; that its treatment of ideology is too
simplistic; and that it is too deterministic or does not encourage sufficient appreciation
for strategic choices made by the actors.
Kochan(1999), argues that as it has been widely understood, the systems concept has
not prepared us to appreciate the nature and extent of the transformation taking place.
In particular, he stresses how the strategic choices of management to avoid and
oppose unions (both legally and illegally), often in conjunction with decisions to open
or close facilities or locate production abroad or in areas where unions are weak, have
fundamentally altered U.S. industrial relations. He notes for example, that in the
1950s, when unions represented roughly one-third of U.S. workers, the unionized
sector of the economy was often the leader in introducing workplace innovations,
including innovations in employment terms and work methods. Further, that level of
unionization was sufficiently high to provide a compelling model (or perhaps threat)
for nonunion firms, such that they tended to follow the lead of the unionized sector.
By the 1980s, however, innovation came to be associated more with the nonunion
sector, and with unionization falling, the power of the unionized sector as a model to
be emulated by nonunion firms was diminished in tandem. For example, although
unions themselves represent a form of employee participation, many of the recent
innovations in employee participation at the workplace level (e.g., employee
involvement programs, team concepts, quality circles, employee empowerment, etc.)
are more closely associated with the nonunion sector. In addition, Kochan and his
coauthors stress that there are multiple levels of interaction between employers and
employees—strategic (e.g., top executives' decisions to open or close facilities),
functional (e.g., collective bargaining), and workplace (e.g., day-to-day supervisor-
subordinate relations)—arguing that the industrial relations systems conception has
tended to encourage excessive preoccupation with the functional level and thereby
neglect of the other levels.
During the same time, public policy on employment matters had shifted from a reliance
on collective bargaining (and markets) to more of an emphasis on individual worker
rights established by statute and judicial decisions. Equal employment opportunity laws
and judicial decisions narrowing the notion of employment-at-will (the notion that
employer and employee are free to enter or terminate an employment relationship at any
time for good reason, bad reason, or no reason in the absence of a formal contract) are
prominent examples of this trend. Reflecting its temporal origins, Dunlop's industrial
relations systems concept had tended to portray or least is perceived as portraying
collective bargaining as the principal mechanism for setting employment terms, although
this is not inherent in the industrial relations systems concept. By the 1980s and 1990s,
this tendency (or interpretation) was clearly open to question, if not clearly inaccurate.
Although not denying change, several scholars have argued that even though major
transformations in industrial relations may be occurring, they are not inconsistent with
traditional understandings of industrial relations or the systems concept.
2.2.5 Industrial Relations System and the Role of the Law
Industrial relations systems are founded on a framework of labour law which exerts an
influence on the nature of the industrial relations system (Tripathi & Arya 2001) .
However, recourse to the law and its potential to influence the resulting industrial
relations system may sometimes be over-emphasized. It is useful, therefore, to examine,
from three points of view, the role of the law in influencing an industrial relations system
– what its objectives should be and the areas it should cover, as well as what the law
cannot achieve. In any working situation people need to cooperate with each other if
there is to be maximum gain to themselves, to management and to society as a whole.
Cooperation, however, is not easily obtained as people working together have conflicting
interests. Employees are primarily concerned with the security of their jobs and what
they can earn, and the employer with what he can produce as cheaply as possible to
obtain the maximum profit. When these conflicting interests have taken definite form
and shape, the State has often stepped into protect some of these interests through legal
control. Labour law has amply demonstrated the sociological theory that "law is a social
institution which seeks to balance conflicting interests and to satisfy as many claims as
possible with the minimum of friction. Since the law must necessarily determine those
interests which most urgently require protection over and above other interests, those of
labour, where they lack self-reliance, have invariably formed a significant class of
interests which the law protects. Hence, especially in Nigeria, the legal rules of an
industrial relations system have been judged to some extent by the degree to which they
further this end.
2.3 CONCEPT OF LABOUR LAW
Ogunniyi (2004) defines Labour law as that branch of the country’s law which regulates
industrial relations. In essence, labour laws are meant to guarantee peace and harmony in
the industry so as to increase productivity and profits. Our labour laws are largely a
reflection of our colonial heritage. By virtue of this, many principles of British labour
law featured prominently in our labour statutes. The main characteristics of the incursion
of the colonial masters were the introduction of labour laws and policies which seemed
largely designed to facilitate the commercial and economic objectives and interests of
the colonial masters.
Simon (2008) defines Labour law as the body of laws, administrative rulings, and
precedents which address the legal rights of, and restrictions on, working people and
their organizations. As such, it mediates many aspects of the relationship between trade
unions, employers and employees Thus, in spite of the fact that Britain proudly
claimed to observe the Bill of Rights and the rule of law, labour leaders were targets of
repression and oppression for no other justifiable reason than that they had the effrontery
to demand for their rights. In 1861, Lagos was ceded to the British Crown and in 1862 it
was made a colony or settlement as it was sometimes called.
By virtue of the Supreme Court Ordinance 1876, English common law, doctrines of
equity and statutes of general application were received into Nigerian legal system and
by extension, Nigerian Law. Notwithstanding that the offence of criminal conspiracy as
it affected trade unions had been abolished in England by the Conspiracy and Protection
of Property Act as far back as 1875, Nigerian workers did not enjoy such protection until
1939 when the Trade Union Ordinance was enacted. Apart from statutes and laws
regulating employment, common law has played and continues to play an important if
not dominant role in regulating the relationship of master and servant or, as it is known
in modern times, employer and employee ( Obilade, 1999).
The courts have by themselves had also developed rules which have become permanent
features of the contract of employment. By these rules, certain obligations and rights are
implied into contracts of employment in order to give such contract the required and
necessary business efficacy. According to the eminent Professor of Law, Professor
Uvieghara, Nigeria Judges provide the vehicle by which the received English Common
law is brought into Nigerian law with binding effects.
2.3.1 Nature of Labour Law/Employment Law
Labour law, otherwise known as employment law, is the body of laws, administrative
rulings, and precedents which address the legal rights of, and restrictions on working
people and their organizations (Nwazuoke, 2001). Labour law mediates many aspects of
the relationship between trade unions, employers and employees. It is evolved to
regulate the activities and conducts of the various actors or the main stakeholders in the
world of work so that the game is played according to the dictate of the rules and
regulations (Howell, 1988). Such main actors are the workers and their union, the
employers and their associations, the government and its agencies.
2.3.2 Philosophy and Nature of Labour Law
Ogbudinkpa (1999) notes that thinking about employment and its contextual issues
especially the mode of interaction at the workplace is growing by the day. The role of
each of the parties in a particular organization and the world of work in general, the
diversity and conflict of interests, the likely fallouts in various dimensions, the need for
harmonization of these diverse interests, prevention of unwholesome happenings and
engendering of required peaceful industrial or work environment, healthy enough for
required productivities in form of employment relation remain paramount and tenable
philosophy. The importance of work as a primary human activity and a means of
fulfilling man’s potentialities cannot be overemphasized. The employment of individual
to work amount to the development of the human potentialities of the worker as a social
being, a wealth creator and a master of nature. Employment (work) makes individual to
be useful to himself and the society lack of work or unemployment makes man
incomplete and threatens man’s existence. Thus, employment integrates people into the
social structure and gives them an identity. The essential nature of employment (work)
and its social nature in terms of uneven interests, interdependence, contribution to
individual and community life, calls for evolvement and enforcement of necessary codes
of conduct or rules of the game as being or may be played by the actors or parties
making up the whole system to forestall any breach that may result from the inbuilt
differences. Such codes, principles and regulatory instruments constitute the labour
(employment) law.
2.3.3 Purpose of Labour Law
Adeogun (2000) states that the major purpose of labour law is to regulate the
relationship between an employer and an employee. By this, the common law and statute
have established that an employer is under an obligation to ensure the safety and security
of his employee. Therefore, it is now recognized that an employer owes a duty to each
employee to take such action as the nature of the work and circumstance of the employee
demand so that the employee is reasonably safe at his place of work. An often quoted
statement of this important duty of the employer is that of Lord Wright in Wilson and
Clyde Coal Co. Ltd V English (1938) where he said that; …the whole course of
authority consistently recognizes a duty which rests on the employer and which is
personal to the employer to take reasonable care for the safety of his workman, whether
the employer is an individual, a firm or a company, and whether or not the employer
takes any share in the conduct of the operations. Therefore, the primary purpose of
labour law is that it imposes direct liability on the employer and is separate from the
Master’s vicarious liability for negligence of his servants. This is a duty imposed on the
master and recognized by the common law. It is popularly referred to as the ‘Duty of
Care’ but is subject to certain limitations as it is open to defenses of volenti non fit
injuria and contributory negligence. This duty is now statutorily under the Factories Act
and other statutes designed for the safety of workers.
2.3.4 Aims and Objectives of Labour Law
Ogbudinkpa (1998), states that the essence of labour law is to ensure orderliness and
stability in the world of work through harmonious relationship among and between the
actors within the work organisation. This situation, if well established and sustained,
there will be good job performance that will engender continuous and improved
productivity level whereby interests of individual employee, the investors and the
community will be favoured as to each party and the overall well-being. Labour law, just
like other areas of law including the constitution and the entire judicial system of the
land (nation) is set out to show direction of conduct, control, protect interests, prevent
oppression, exploitation of a party by another party and many more.
2.3.5 The Role of the Law Manfred (1997), states that Industrial relations systems are founded on a framework of
labour law which exerts an influence on the nature of the industrial relations system.
However, recourse to the law and its potential to influence the resulting industrial
relations system may sometimes be over-emphasized. It is useful, therefore, to examine,
from three points of view, the role of the law in influencing an industrial relations
system. In any working situation people need to cooperate with each other if there is to
be maximum gain to themselves, to management and to society as a whole. Cooperation,
however, is not easily obtained as people working together have conflicting interests.
Employees are primarily concerned with the security of their jobs and what they can
earn, and the employer with what he can produce as cheaply as possible to obtain the
maximum profit. When these conflicting interests have taken definite form and shape,
the State has often stepped into protect some of these interests through legal control.
Labour law has amply demonstrated the sociological theory that "law is a social
institution which seeks to balance conflicting interests and to satisfy as many claims as
possible with the minimum of friction. Since the law must necessarily determine those
interests which most urgently require protection over and above other interests, those of
labour, where they lack self-reliance, have invariably formed a significant class of
interests which the law protects.
2.3.6 The Functions of the Law in Industrial relations
Manfred (1997) describes the three main functions of the law in an industrial relations
system as auxiliary, regulatory and restrictive.
• The first function is the support it gives to the autonomous system of collective
bargaining, its operation and observance of agreements.
• The second function is one of providing a set of rules governing the terms and conditions
of employment and supplementing those created by the parties themselves. The greater
the coverage by collective bargaining, the less will be the regulatory function of the law.
• The third function prescribes what is permitted or forbidden in industrial conflict with a
view to protecting the parties from each other, and the public from both of them.
Manfred (1997) explains the main functions of the law in industrial relations further to
include:
1. One major function of labour law is to create the legal framework which is necessary
for employers, workers and their organizations to function effectively and as
autonomous groups in the industrial relations system. Hence the law should protect the
freedom of association so that the two parties are accorded the protections and
guarantees found in the ILO Convention on the Freedom of Association and Protection
of the Right to Organize No. 87 (1948). Since one of the major purposes of such
association is to enable workers and employers to protect and further their interests, the
law should also provide the legal framework needed to promote collective bargaining. In
this connection the ILO Convention on the Right to Organize and Collective Bargaining
No. 98 (1949) would provide the necessary basis for such legislation.
2. A second important function of labour law is to prescribe the minimum terms and
conditions of employment which should be observed by employers in the course of
conducting business. Therefore, the legal system often contains provisions stipulating the
minimum conditions which must be observed in areas such as compensation for
industrial accidents, social security, safety and health in enterprises, the minimum age of
employment. Some countries may consider it appropriate to prescribe minimum wages.
The basic rules to be followed in terminating employment may be another area of the
employment relationship which would need to be covered by minimum standards.
Methods for settling disputes, both individual and collective, through institutions such as
labour courts, arbitration and conciliation systems, have not been an uncommon feature
of State intervention through the law.
3. A third and more general role for the law in industrial relations is as an instrument of
social change. The law does not always merely or solely reflect contemporary thinking
in society and does not necessarily lag behind social and other values. It sometimes
anticipates them and can, on occasion, be employed to fashion new ideas and to effect
changes in behaviour. It is not always possible to leave crucial and complex social issues
to be solved through purely voluntary action such as collective bargaining. Sometimes,
especially in developing countries, the absence of strong and independent trade unions
reduces the effectiveness and role of voluntary action, and necessitates greater regulation
through legal prescription. In such situations desirable measures such as remedies for
unfair dismissal, protection against acts of anti-union discrimination, the minimum
conditions a contract of employment should conform to, safety requirements, etc., are
prescribed by the law. But intervention on this ground should not lead to the introduction
of rigidities in the labour market through overregulation. Legal prescription should be
viewed as merely laying down minimum terms and defining the permissible boundaries
of action within which the two parties (employers and workers) must operate. Over
regulation through law could have adverse consequences on building a sound industrial
relations system through voluntary action, and on the competitiveness of enterprises.
2.4 THE NATURE OF RELATIONSHIP BETWEEN THE EMPLOYER AND
EMPLOYEE
Fundamentally, the nature of relationship between the employer and the employee is the
contract of employment (Adeogun, 2003). The employers and the employees are
normally brought together by virtue of the understanding that there exists a contractual
relationship between them. In essence, the action of the employer, which constitutes an
invitation to treat, beckons on the employee that invariably makes an offer for the
acceptance of the employee invariably results into employment relationship. The
implication of such relationship between the employer and the employee is that there is
always an agreement that is legally binding and enforceable on the basis of which the
latter party accepts to work for the former. Hence a contract of employment is an
agreement that creates the relationship between the employer and the employee and
contains terms that are legally binding on both parties just like all other forms of
contract. In this unit of the course, you are going to be exposed to the nature of the
contract of employment, which serves as the basis of the relationship between the
employer and the employee.
2.4.1 Overview of the Contract of Employment
According to Aturu, (2005), contract of employment is essentially a bilateral agreement
between an employer and an employee, whereby the employee offers his or her
industrial potential to the employer, and, in exchange therefore, the employer
remunerates him/her industrial. The content of the employment contract is determined by
the employer and employee. More often than not the contract of employment is expected
to set out the conditions of service in term of the issues relating to job description;
remuneration; working hours per day; annual leave, sick leave, maternity leave,
compassionate leave and study leave; and the fringe benefits (pension, provident fund,
medical fund and housing). Other issues considered in the contract of employment are in
relation to protection of the company’s interests – confidentiality and restraint of trade,
the term of the contract, retirement age and notice period, requirements in respect of
agreement, occupational health and safety rules, disciplinary rules, grievance procedure,
and any relevant procedural or substantive agreement between the employer and a trade
union in area of collective bargaining.
The contract of employment is regulated by: common law rules of contract and other
applicable laws such as the Industrial Act of 1978 and judicial decisions. The reasons for
the state intervention are not difficult to see. Such reasons include the need to:
1. Protect the employee, who is the weaker party
2. Ensure harmonious relationship between both parties to the contract;
3. Ensure fair treatment of the weaker party in terms of conditions of service;
4. Amicable resolution of employer-employee disputes;
5. Interpretation and enforcement of the contractual of the parties;
6. Check the excesses of both parties;
7. Check wrongful disengagement of the employees; and
8. Mitigate oppression of the employees by the employers.
Therefore, you can appreciate the fact that both the employers and the employees operate
under the watchful eyes of the government so as to ensure equity as much as possible, in
terms of the contract relationship between both parties.
2.4.2 Essential Elements of Contract of Employment
For a contract of employment to be valid there are some conditions precedent, which
must be adhered to by both parties who are the subjects of the contractual relationship
that subsists in the workplace. In the same vein, Aturu (2005) succinctly posits that all
such ingredients of validity must be satisfied for a contract of employment to be legally
binding on both parties.
Such conditions precedents in the contract of employment are as follows:
¬ Offer: It is an expression of interest by one person or group of persons, or by
agents on their behalf, made to another of his or their willingness to be bound to a
contract with that other person on terms either certain or capable of being made
certain. The terms of the offer must be made clear and capable of being accepted. It
must also be communicated to the other person. This is very applicable to the
contract of employment.
¬ Acceptance: It signifies the indication by the person to whom the offer is made of
a person to accept unconditionally the term of the offer and to be bound by them. In
the acceptance of the offer, the terms of the offer must not be varied; otherwise it
would amount to a counter offer. And until the person who first made the initial
offer accepts the counter offer, there cannot be any valid agreement subsisting
between both parties. This condition is also very essential in the contract of
employment.
¬ Consideration: Based on classical definition, the term means some right, interest,
and benefit accruing to one party or some forbearance, detriment, responsibility
given, or undertaken by the other party. Hence it implies consideration is what the
parties give to each other in order to derive a benefit under the contract, and it is
must be sufficient and not necessarily enough. In the contract of employment, the
consideration from the point of view of the employee is the salary that the employer
pays, and to the employer his expectation from the employee is the services to be
rendered by the worker.
¬ Intention: The intention to enter into legal relations, who ought to be binding on
both parties, in our consideration the employer and the employee, is said to be
usually inferred from the consideration. Hence, the mutual agreement between the
employer and the employee should be incorporated into individual worker’s
contract of employment.
¬ Capacity: Under this condition, a person cannot a valid contract of employment
unless he or she is of a sound mind and has reached of majority. Therefore, a person
who is under the age of 16 years is not capable of entering into a contract of
employment as a manual or clerical worker except as an apprentice. The industrial
Act provides that the parent or guardian of a person above the age of 12 years and
under the age of 16 years with the consent of the person may by a written contract
permit an employer to train the person for a trade or employment in which art or skill
is required or as a domestic servant. The term of the apprenticeship cannot exceed 5
years. The Industrial Act also provides that where the young person is up to 16 years
and above, he or she may apprentice himself or her for the same term. The contract
of apprenticeship must be duly attested to by a industrial office otherwise it is termed
void. Removing or attempting to take out of Nigeria an apprentice who is under the
age of 16 years is prohibited.
2.4.3 Conditions of Service in Contract of Employment
The conditions of service that are normally spelt out in a contract or employment
include the following:
• Remuneration: This is considered as the important item in a contract of
employment. Remuneration in itself comprises of salaries (or wages) and
allowances (fringe benefits and commissions) which form part of the terms of a
contract of service. Remuneration is normally negotiated between master and
servant, and where no rate is agreed, the rate paid is deemed to be what is current in
similar industry in the area. Nevertheless, the need to prevent workers from
exploitation has necessitated the promulgation of legislation on wages. A worker’s
rights to his wage is inherently incorporated into the contract of employment, and
where fringe benefits are a part of the contract, payment of bare wages will not be
considered adequate. An employer is allowed to make deductions from the
employee’s wages to any pension fund, taxes or others. Deductions of overpayment
can also be made but it must be made in at least three equal installments and must
not exceed one third of the worker’s monthly wages at a time. The Industrial Act
does not permit an employer to suspend his worker without payment of wages
except where criminal offences are committed. Restriction in the use of wages by
the worker is not allowed. The manner in which a worker expends his wages shall
not be restricted in any way. A worker who is registered to walk for at least 16
kilometers or more to his place of work or another work site shall be entitled to free
transport or an allowance in lieu.
• Working Hours and Holidays: The working hours of a worker are not more
than eight hours per day, and all the public holidays which attract work are
normally expressly stated in the contract of employment. Any excess hour over
this constitutes an over time.
• Normal Working Hours: The normal working hours in terms of time of
reporting for duty and closing has to be fixed by agreement or through collective
bargaining. In addition, statutes have been used to regulate strictly the number of
hours, which may be worked in any one week. Both Sundays and Public holidays
are to be observed as work-free days. By implication, an employee cannot be
compelled to work on these days against his wish. Where employees agree to
work on such days, he should be paid for on the basis of full working day or more
in addition to his wages. There must be at least a 90 minutes break for meal or
rest each day.
• Provision for Holidays: Provision for the annual leave is embedded in the terms
of employment between employer and employee. Nevertheless, the employee is
entitled to an annual leave with pay unless otherwise stated in the contract of
employment. Women on maternity leave are entitled to at least fifty per cent of
their salary provided they have worked for 6 months prior to the maternity leave.
2.5 REGULATION OF EMPLOYMENT AND DUTIES OF EMPLOYERS AND
EMPLOYEES
The regulation of employment between the employer and the employee by the
statutory provisions as contained in the industrial law (Swanepoel, 2002). The contract
of employment can be oral or in writing. This is because an oral agreement known as
parole in law can be enforceable under the general law of contract. Manual workers
and clerical staff may only be employed orally for a period of three months. The
industrial law provides that not later than three months after commencing work with an
employer, the latter has a duty to give to the worker a written statement specifying the
terms of employment except the worker already has a written contract.
Contract of apprenticeship must be in writing and attested by an authorized industrial
officer. The authorized industrial officer must satisfy himself that the apprentice
consented to the contract and that the consent was not obtained by coercion or undue
influence.
2.5.1 Terms of Employment
The industrial law makes it mandatory for employers to give their workers not later than
three months after the beginning of a worker’s employment a written statement
specifying the following terms:
1. The name of the employer or group of employers, and where appropriate, of the
undertaking by which the worker is employed;
2. The name and address of the worker and the place and date of his engagement;
3. The nature of the employment;
4. If the contract is for affixed term, the date when the contract expires;
5. The appropriate period of notice to be given by the party wishing to terminate the
contract which must conform to the relevant provision of the Industrial Act;
6. One week where the contract has continued for more than three months but less than two
years:
a. two weeks where the contract has continued for a period of two years but less than five
years,
b. One month where the contract has continued for five years or more;
7. The rates of wages and method of calculation thereof and the manner and periodicity of
payment of wages;
8. Terms and conditions relating to:
a. hours of work,
b. holiday and holiday pay,
c. incapacity for work due to sickness or injury, including any provisions for sick pay; and
9. Any special conditions of the contract. The employer has a duty to inform the worker of
any change in the terms not more than one month after the change. The requirement of
written. Particulars is however not applicable to workers who have been given a written
contract of employment covering the above particulars. The following terms cannot be
included in a contract of employment of manual or clerical workers:
a. that wages shall be paid at intervals exceeding one month unless it is authorized by the
state
b. that a worker can be made liable for the debt or default of another person.
c. that a worker’s employment shall depend on whether he or she joins does not join a trade
union or that he or she shall or shall not remain a member of a trade union. A worker
cannot be dismissed or prejudiced by reason of trade union membership or because of
trade union activities outside working hours or within working hours with the consent of
the employer.
d. Any provision excluding or limiting the liability of an employer in respect of personal
injuries caused to an employee or an apprentice by the negligence of a fellow employees.
10. Termination of Contract of Employment. The Industrial Act gives a guideline in case
where the parties have not have not by conduct waive their right to notice. Example is
where a party accepts payment in lieu of notice or commits such acts as may entitle the
employer to terminate the employee summarily.
i. Where the contract has continued for a period of three months or less, one day notice
shall be given.
ii. One week where the contract has continued for a period of more than three months but
less than two years.
iii. Two weeks where the contract has continued for a period of two years but not less than
five years.
iv. One month where the contract has continued for a period of five years or more. Any
notice for a period of one week or more shall be in writing and that all wages and other
entitlements shall be paid on or before the expiry of any period of notice.
2.5.2 Individual Agreement in Industrial Relations
Fundamentally, the individual agreement is the contract of employment by means of
which the relationship between the individual employer and employee is regulated. Since
the contract of employment constitutes a very important component of industrial
relations management at the Organization level, it is important that it is considered.
Basically, once a person offers his or her services (industrial) to any other person (an
employer) in exchange for remuneration, a specific contractual relationship comes into
being. There does not need always for such agreement to be a written, formal contract.
Where an oral agreement is concluded between the two parties, such parties are expected
to abide by the provisions agreed upon. You will recall from the previous study unit that
a contract of employment is essentially a bilateral agreement between an employer and
an employee.
The employee offers his or her industrial potential to the employer, and, in exchange
therefore, the employer remunerates him/her industrial. The content of the employment
contract is determined by the employer and employee, but relevant laws and agreements
laying down minimum conditions also have to be taken into consideration (Thiebart,
2003). Usually, the contract sets out the rights and obligations of the employer and
employee by way of provisions dealing with issues such as: job description;
remuneration; working hours per day; annual leave, sick leave, maternity leave,
compassionate leave and study leave; benefits (pension, provident fund, medical fund
and housing); protection of the company’s interests – confidentiality and restraint of
trade; the term of the contract, retirement age and notice period; requirements in respect
of closed-shop agreements or agency-shop agreements; occupational health and safety
rules; disciplinary rules; and any relevant procedural or substantive agreement between
the employer and a trade union. The implicit aspect of this contract of employment is
that both employer and employee have specific rights and duties. The employee sells
his/her services to the employer and in return the employment relationship requires the
employer to render counter-performance. The rights of the employee in the organization
normally include the right to associate with other employees (that is, to belong to a trade
union), to bargain collectively, to withdraw his industrial or go on strike, to be protected
and to receive training, among others.
2.5.3 Master-Servant Relationship between Employer and Employee
Emiola, (2000) states that, the master is the employer of industrial, and by implication,
he is the stronger party in the relationship. The responsibility of the master arising from a
master-servant relationship implies that the master owes some duties to the servant and
also assumes some liability to the servant.
Duties of the Master to His Servant
The master’s duties to his servant are fixed partly by the express terms of the contract
and partly implicit in the nature of the contract. Such duties according to Emiola, (2000)
include:
• To provide of Work. It is mandatory for the master to provide work for the servant.
• To remunerate the servant. The master has the duty to pay cash remuneration in
legal tender, at the right time and the agreed quantity unless otherwise stated or for
reasons known and acceptable to the two parties.
• Maintenance of a safe, secured and clean work environment.
• To provide competent and responsible staff, instruct him and follow up with
reasonable supervision.
• To indemnify a servant for all liabilities and losses of property incurred in the
course of his duty.
• To indemnify a servant for all liabilities and losses of property incurred in the
course of his duty.
• Statutory duties to: Comply with all necessary conditions for the purchase, use,
maintenance and discard of equipment and machineries at work.
• To safeguard employees from fumes, exposure to dangerous and explosive items
and installation of much safeguard devises.
Employers Liability to the Employees
The master also owes the servant some liabilities. A master is liable for the acts of the
servant in the following circumstances.
• When the servants action of inaction has been expressly authorized.
• When even unauthorized actions or inactions of the servant is subsequently
ratified.
• The actions or inactions of the servants were done in the course of servants’
employment.
The liability arises from the implied terms in the contract of service which specify
that a master shall indemnify his servant in respect of all legitimate actions in the
course of his duty. Nevertheless, care must be taken by the servant to the effect that a
mere relationship of master and servant does not give the servant any power to act as
agent for his master.
2.5.4 Duties of the Employer and the Employee
Emiola, (2000) posits that both the employer and the employee have some duties to
perform arising from the contractual relationship between the two parties. Such duties
are set out below:
Duties of the Employer towards the Employee
The duties of the employer are as follows:
• Duty of Employment: Once a contract of employment has been concluded
between an employer and an employee, the employee must be employed by the
employer in accordance with the provisions of the employment contract. The
employer must therefore take the employee into his/her service and remunerate the
employee as from the date agreed upon. Implicit in this duty is the duty to keep the
employee in employment and not to dismiss him or her arbitrarily.
• Duty to Provide Work as Agreed Upon: The designation of the job to which the
employee is appointed is usually specified in the contract of employment, and, in
such contract, the employee’s duties are set out in broad outline. The employer
may, within the limits of the provisions of the employment contract, use his or her
discretion regarding the utilization of the employee’s services. Nevertheless, the
question that must always be asked is what the intention of the parties was and
what can reasonably be expected of the employee. An example which is clearly
indicative of breach of contract in this regard is that where a person is appointed as
a manager, but is demoted to a lower post after a few months, yet still receives the
same salary. Another of such a breach of contract is that where a person is
appointed as a training instructor, but is instructed after two weeks to perform low
level, clerical work for a few months. In both cases, there is no consensus (a
meeting of the minds) and a lowering in status is the outcome. The employer is not
entitled to unilaterally amend the terms of the employee’s appointment.
• Duty to Remunerate: In the contract of employment, the parties agree that
remuneration is payable periodically (daily, weekly or monthly). The remuneration
need not necessarily be payable in money (an employee may, for example, be
entitled to part of a harvest). Moreover, not all of the remuneration need be paid in
the form of a wage or salary, but may be calculated on a commission basis. The
remuneration must, however, be fair and reasonable vis-à-vis the services rendered.
It is the employer’s duty to remunerate the employee for purely making his/her
services available, which means that, where the employer is prevented from
utilizing the employee’s services owing to circumstances beyond the control of the
employer, he/she (i.e. the employer) must remunerate the employee, provided that
the latter continues to offer his/her services. The principle of “no work, no pay”
however applies where an employee fails to make his or her services available as a
result of participation in a strike.
• Duty to Provide a Safe Working Environment: Every employer is expected to
exercise reasonable care in ensuring his or her safety of the employees. In essence,
not only must the workplace safe, but also the machinery, equipment and work
systems which are used. There are relevant safety laws in Nigeria that impose
specific obligations on the employer as regards the safeguarding of the work
situation. Nevertheless, numerous matters pertaining to safety are negotiated by
employers and trade unions, such as the training of employees and safety
representatives in safety matters.
• Duty to Grant Leave: The employers are to grant paid vacation leave to their
employees. Where the employer cannot go on leave due to the nature of his or her
work, the leave bonus must be paid.
• Other Duties of the Employer include:
i. to contribute to the pension fund;
ii. to keep certain prescribed records;
iii. to provide severance allowance at the instance of separation;
iv. may not disallow employees from belonging to a trade union; and
v. to encourage the use of collective bargaining.
Employee Duties to the Employer
The employee also has specific duties to perform, arising from the contract of
employment. Such employee duties include the following:
1. Duty to make his or her Services Available: Every employee has a duty to make his
or her services available to the employer as agreed upon in the employment contract.
Thus his or her right to remuneration depends on the availability of his or her services
and not on the actual rendering thereof.
2. Duty to be Competent on the Work: On the strength f a person’s application for
employment, he or she tacitly guarantees that he or she is able and competent to do the
work required by the post. Every employee undertakes, by way of his or her employment
contract, to exercise the necessary care and competence in performing his or her work. It
is only when an incapacity is serious or continuing that termination is justifiable.
3. Duty to Act in Good Faith: On conclusion of a contract of employment, a relationship
of trust comes into being between the employer and the employee. Therefore, the
employee is required at all times to serve his or her employer honestly and to act in good
faith. The employee must further the employer’s business interests and the personal
interests of the employee may not conflict with the interests of the employer.
4. Duty to Protect Property and Information: Employees may also not misuse the
property of their employers or divulge confidential information or business secrets.
5. Duty towards Good Behaviour: Employees must refrain from committing acts of
misconduct such as dishonesty, theft, intoxication, and the like.
6. Duty to Render Services as Subordinate of the Head: Employees are expected to
render his or her services in subordinate capacity, and to obey the lawful and reasonable
instructions of the employer. They are also required to act respectfully to the employer
and senior colleagues. An employer may only take disciplinary action against the
employee if the employee’s refusal to carry out lawful instructions is intentional and of a
serious nature.
2.5.5 Employer’s Rights and Management Responsibilities
Employer’s Rights
The employer has specific rights vis-à-vis the employees ( Sweet and Maxwell, 1983)
.Therefore, the employee must:
i. perform the required duty and may not arrive unnecessarily late, be absent from the
workplace or be under the influence of alcohol or drugs;
ii. be obedient, must not ignore the lawful instruction and reasonable instructions of
management, and must incite or intimidate co-workers;
iii. behave properly and acknowledge and respect the authority of management, must
not swear or fight, must not be dishonest towards management, must not commit
fraud and must insult coworkers;
iv. exercise the right to associate, negotiate and strike in a reasonable and responsible
way; and
v. be loyal to the employer.
Management Responsibilities
The management is responsible for ensuring that both parties respect each other’s rights
and abide by their respective duties ( Bendix, 2000). Such management responsibilities
include:
i. determining organizational objectives and strategies;
ii. Arranging for the utilization of resources to realize the objectives of the organization;
iii. Entrench quality assurance that products or services satisfy the requirements of
consumers or the customers;
iv. Ensuring that things are done efficiently;
v. ensuring that customers are satisfied and will therefore buy and use the products or
services, thereby guaranteeing the overall success of the organization.
The nature of the regulation of the relationship between the employer and the employee
in terms of the statutory terms in contract of employment and the necessary areas within
which both employers and the employees can exercise their rights regarding the
contractual relationship between them. Nevertheless, it is instructive to note that such
contractual rights of both parties carry with them some defined obligations. Hence as
both parties are entitled to their rights and they are also under obligations to reciprocate
in the like manner.
2.6 INDUSTRIAL DISPUTES/CHALLENGES According to Section 2(K) of the Industrial Disputes Act, 1947, an ‘industrial dispute’
means “any dispute or difference between employers and employees or between
employers and workmen or between workmen and workmen, which is connected with
the employment or non-employment or the terms of employment or with the conditions
of labour of any person.
Thus form the legal point of view, industrial dispute does not merely refer to difference
between labour and capital as is generally thought, but it refers to differences that affect
groups of workmen and employers engaged in an industry. Essentially, therefore, the
differences of opinions between employers and workmen in regard to employment, non-
employment, terms of employment or the conditions of labour where the contesting
parties are directly and substantially interested in maintaining their respective
contentious constitute the subject-matter of an industrial dispute.
2.6.1 Causes of Industrial Disputes The causes of industrial conflict or disputes have been much varied. These may be
described partly a psychological or social and partly political, but predominantly
economic. Some important factors responsible for industrial conflict and poor industrial
relations according to Daver (2002) are briefly stated as follows:
• Management’s general apathetic towards workers or employees because of their
contention that they want more and more economic or monetary rewards and want to do
less work.
• Mental inertia on the part of both management and labour.
• Lack of proper fixation of wages inconformity with cost of living and a reasonable wage
structure generally.
• Bad working conditions.
• Attempts by management to introduce changes (such a rationalization, modernization or
automation) without creating a favourable to appropriate climate or environment for the
same.
• Lack of competence or training on the part of first-line supervision as well management
at upper levels in the practice of human relations.
• Assignment of unduly heavy work-loads to worker, unfair labour practices (such as
victimization or undue dismissal).
• Lack of strong and healthy trade unionism, lack of a proper policy of union recognition
and inter-union rivalries.
• A spirit of non-cooperation and a general tendency among employees to criticize or
oppose managerial policies or decisions even when they may be in the right directions.
• A fall in the standard of discipline among employees largely due to wrong or improper
leadership, often resulting in insubordination or disobedience on the part of employees.
• Difference in regard to sharing the gains of increased productivity.
• Inadequate collective bargaining agreements.
• Legal complexities in the industrial relations machinery or settlement of industrial
disputes.
• Lack of necessary changes in the working of government in accordance with changing
needs and circumstances.
• Combination of too much law and too little respect for law even at high levels.
• Growing factional and personal difference among rank-and-file employees who are
union members or union leaders and a tendency on the part of the management in some
cases to prefer having with outside leaders and not give due respect to worker-leaders.
• Political environment of the country; and
• Agitation and wrong propaganda by selfish labour leaders to further their own interests
of their own party.
2.6.2 Forms of Disputes
Strikes, lockouts and gheraos are the most common forms of disputes. Strike “Strike” means a cessation of work by a body of persons employed in any industry acting in combination; or a concerted refusal or a refusal under a common understanding or an number of persons who are or have been so employed to continue to work or to accept employment. The following points may be noted regarding the definition of strike:
• Strike can take place only when there is a cessation of work or refusal to work by the workmen acting in combination or in a concerted manner.
• A concerted refusal or a refusal under a common understanding of any number of persons to continue to work or to accept employment will amount to a strike. A general strike is one when there is a concert of combination of workers stopping or refusing to resume work. Going on mass casual leave under a common understanding amounts to a strike.
• If on the sudden death of a fellow-worker, the workmen acting in concert refuse to resume work, it amounts to a strike (National Textile Workers’ Union Vs. Shree Meenakshi Mills (1951) II L.L.J. 516).
• The striking workman must be employed in an ‘industry’ which has not been closed down.
• Even when workmen cease to work, the relationship of employers and employees is deemed to continue albeit in a state of belligerent suspension. ���� 2.6.3 Types of Strike Kapur and Punia (2003) identify types of strike to include the following:
• Stay-in, sit-down, pen-down strike: In all such cases, the workmen after taking their
seats, refuse to do work. All such acts on the part of the workmen acting in combination,
amount to a strike.
• Go-slow: Go-slow does not amount to strike, but it is a serious case of is conduct.
• Sympathetic strike: Cessation of work in the support of the demands of workmen
belonging to other employer is called a sympathetic strike. The management can take
disciplinary action for the absence of workmen. However, in Remalingam Vs. Indian
Metallurgical Corporation, Madras, 1964-I L.L.J.81, it was held that such cessation of
work will not amount to a strike since there is no intention to use the strike against the
management.
• Hunger strike: Some workers may resort to fast on or near the place of work or residence
of the employers. If it is peaceful and does not result in cessation of work, it will not
constitute a strike. But if due to such an fact, even those present for work, could not be
given work, it will amount to strike (Pepariach Sugar Mills Ltd. Vs. Their Workmen).
• Lightning or wildcat strike: A wildcat strike is an unofficial strike i.e. a strike not
sanctioned by the union. Such strikes occasionally occur in violation of the no-strike
pledge in collective bargaining agreements. In such a situation union is obliged to use its
best efforts to end the strike. Such strikes are prohibited in public utility services under
Section 22 of the Industrial Disputes Act, 1947. Further, the standing order of a company
generally required for notice.
• Work-to-rule: Since there is a no cessation of work, it does not constitute a strike.
Lockout Section 2(1) of the Industrial Disputes Act, 1947 defines “lockout” to mean the
temporary closing of a place of employment or the suspension of work, or the refusal by
an employers to continue to employ any number of persons employed by him, lockout,
thus, is the counterpart of strike – the corresponding weapon the hands of employer to
resist the collective demands of workmen or to enforce his terms. It has been held by the
courts that the suspension of work as a disciplinary measure does not amount to lockout.
Similarly, temporary suspension of work called lay-off is not lock-out.
Gherao
Gherao means encirclement of the managers to criminally intimidate him to accept the
demands of the workers. It amounts to criminal conspiracy under Section 120-A of the
I.P.C. and is not saved by Sec. 17 of the Trade Unions Act on the grounds of its being a
concerted activity.
2.6.3 Regulation of strikes and lock-outs
Employees do not have an unfettered right to go on strike nor do employers have such
right to impost lockout. The Industrial Disputes Act lays down several restrictions on the
rights of both the parties. A strike or lockout commenced or continued in contravention
of those restriction is termed illegal and there is serve punishment provided for the same.
Illegal strikes and lockout are of two types:
• Those which are illegal form the time of their commencement; and
• Those which are not illegal at the time of commencement but become illegal
subsequently.
Section 22 and 23 of the IDA provide for certain restriction which if not followed make
strikes and lockouts illegal from their very commencement.
According to this section, no person employed shall go on strike in breach of contract-
• Without giving notice of strike to the employer, as here matter provided, within 6 week
before striking; or
• Within fourteen days of giving such notice; or
• Before the expiry of the date of strike specified in any such notice as aforesaid; or
• During the pendency of any conciliation proceedings before a Conciliation Officer and
seven days after the conclusion of such proceedings.
2.6.4 Consequences of illegal strikes and lock-outs.
1. Penalty for illegal strikes [Sec.26(1)]: Any workman who commences, continues or
otherwise acts in furtherance of a strike which is illegal, shall be punishable with
imprisonment for a term which may extend to 1 month, or with fine which may extend to
Rs. 50, or with both.
2. Penalty for illegal lock-out [Sec.26(2): Any employer who commences, continues or
otherwise acts in furtherance of a lock-out which is illegal, shall be punishable with
imprisonment for a term which may extend to 1 month, or with fine which may extend to
Rs. 1,000 or with both.
3. Penalty for instigation, etc. [Sec. 27]: Any person who instigates or incites others to take
part in, or otherwise acts in furtherance of, a strike or lock-out which is illegal, shall be
punishable with imprisonment for a term which may extend to 6 months, or with fine
which may extend to Rs. 1,000 or with both.
4. Penalty for giving financial aid for illegal strikes and lock-outs [Sec. 28] : Any person
who knowingly expends or applies any money in direct furtherance or support of any
illegal strike or lock-out shall be punishable with an imprisonment for a term which may
extend to 6 months, or with fine which may extend to Rs. 1,000 or with both.
2.6.5 Machinery for Prevention and Settlement of Industrial Relations
According to Bhagoliwal (2003), the machinery for prevention and settlement of the
disputes has been given in the following figure:
Source: Bhagoliwal T. N. (2003) “Personnel Management and Industrial Relations”, Sahitya Bhawan, Agra. Fig 2.1: Machinery for Prevention and Settlement of Industrial Relations Voluntary Methods of Dispute/Challenges Control
Code of discipline
Formally announced in 1958, the Code of Discipline provides guidelines for the workers,
unions and employers. The code which was approved by major national trade unions and
principal organisation of employers enjoyed on them to create an environment of mutual
trust and cooperation and to settle the disputes by mutual negotiation, conciliation and
voluntary arbitration. It required the employers and workers to utilize the existing
machinery for the settlement of disputes.
A few important provisions of code of discipline are:
• Strikes and lockout cannot be declared without proper notice.
• The parties should not take any action without consulting each other.
Voluntary Methods Government Machinery Statutory Measures
Code of Discipline
Tripartite Machinery
Worker’s Participation
Collective Bargaining
I.D. Act, 1947 State Acts
Labour Administration (States & Central Levels)
Works Committee
Conciliation Voluntary Arbitration
Court of Enquiry Adjudication
Conciliation Board
Conciliation Officers
Labour Court
Industrial Tribunal
National Tribunal
• There should be no go slow statistics or any resort to deliberate damage to plant or
property or resort to acts of violence, intimidation, coercion etc.
The code has moral sanction only and it does not entail any legal liability or punishment.
Tripartite machinery
Tripartite machinery consists of various bodies like Indian Labour Conference, the
Standing Labour Committee, the International Committees, the Central Implementation
and Evaluation Committee and the Committee on conventions. Generally, these
committees include representatives from centre and the states, and the same number of
workers’ and employers’ organisatoins. These various committees are basically of
advisory nature, yet they carry considerable weight among the government, workers and
employers.
Workers’ participation in management
Workers’ participation in management is an essential ingredient of industrial democracy.
The concept of workers participation in management is based on “Human Relations”
approach to management which brought about new set of values to labour and
management.
According to one view, workers participation is based on the fundamental concept that
the ordinary workers invest his labour in, and ties his fate to, his place of work and,
therefore, he has a legitimate right to have a share in influencing the various aspects of
company policy”.
According to G.S. Walpole, participation in management gives the workers a sense of
importance, pride and accomplishment; it gives him the freedom and the opportunity for
self-expression; a feeling of belonging to his place of work and a sense of workmanship
and creativity. It provides for the integration of his interests with those of the
management and makes him a joint partner in the enterprise”.
The forms of workers participation in management vary from industry to industry and
country to country depending upon the political system, pattern of management relations
and subject or area of participation. The forms of workers participation may be as
follows:
1. Joint Consultation Modes
2. Joint Decision Model
3. Self Management, or Auto Management Scheme
4. Workers Representation on Board
It should be borne in mind that when individuals are provided with opportunities for
expression and share in decision-making, they show much initiative and accept
responsibility substantially. The rationale of workers’ participation in management lies
in that it helps in creating amongst the workers a sense of involvement in their
organisatoin, a better understanding of their role in the smooth functioning of industry
and provides them a means of self-realization, thereby, promoting efficiency and
increased productivity.
Collective bargaining
Collective bargaining is a source of solving the problems of employees in the work
situation collectively. It provides a good climate for discussing the problems of workers
with their employers. The employees put their demands before the employers and the
employers also gives certain concession to them. Thus it ensures that the management
cannot take unilateral decisions concerning the work ignoring the workers. It also helps
the works to achieve reasonable wages, working conditions, working hours, fringe
benefits etc. It provides them a collective strength to bargain with the employer. It also
provides the employer some control over the employees.
The process of collective bargaining is bipartite in nature i.e., the negotiations are
between the employers without a thirds party’s intervention. Thus collective bargaining
serves to bridge the emotional and physiological between the workers and employers
through direct discussions.
Government Machinery The Ministry of Labour and Employment at the centre is the key agency for the policy
formulation and administration in all the matters pertaining to labour. The State
governments with the cooperation of their labour departments are responsible for the
enforcement thereof. The Directorate General of Employment and Training (DGET),
Office of Chief Labour Commissioner (CLC) (Central), the Director General of Mines
Safety (DGMS), the Director General of Factory Advice and Labour Institutes, and
Industrial Tribunals are some of the agencies through which the Central Government
discharges its functions related to framing of labour laws and settlement of industrial
disputes. The Labour Secretary is the overall incharge of policy formulation and
administration, and commissioners of labour in the States are the operative arms for the
effective implementation of Labour Laws.
Statutory Measures – Industrial Disputes Act, 1947 The States are free to frame their own labour laws as the labour falls in the concurrent
list, Some States like Maharashtra, M.P., U.P. and Rajasthan have their own Acts. In the
rest of the states, Industrial Disputes Act, 1947 applies. However, in the States having
their own Acts, the IDA, 1947 will be applicable to the industries not covered by the
State Legislation. Formally announced in 1947, the Industrial Disputes Act, has been
amended several times since then. Under the Act the following authorities have been
proposed for the investigation and settlement of industrial disputes.
Works Committees The IDA, 1947 provides for setting up works committees in every organization having
100 or more employees. Having representatives of employees and employees, these are
consultative bodies and are set up for maintaining harmonious relations at the work lace
and sort out the difference if any. Though the act does not define the jurisdiction of these
committees, yet their functions mainly include providing proper working conditions and
amenities for the welfare of employees at the work place or away from the work. A work
committee aims at promoting measures for securing the preserving amity and good
relations between employees and workers.
Conciliation When the services of a neural party are availed for the amicable solution of a dispute
between the disputing parties, this practice is known as conciliation. The IDA, 1947
provides for conciliation and it can be utilized either by appointing Conciliation Officer
or by setting up Board or Conciliation.
The Conciliation Officers are appointed by the Government by notifying in the Official
Gazettee. Usually at the State level, Commissioners of Labour, Additional and Deputy
Commissioners of Labour act as Conciliation Officer for disputes arising in any
undertaking employing less than twenty workers. In the conciliation process the officer
ties to bring the disputing parties together towards a settlement of the dispute and hence
works as a mediator. The intervention of conciliation officer may e mandatory or
discretionary. But in the disputes related to public utilities in respect of which proper
notice is served to him, his intervention becomes mandatory.
The Board of Conciliation is a higher forum and is constituted for a specific dispute. It
consists of equal number of representatives of employers and employees under the
chairmanship of an independent person, appointed by the government. The Board has to
submit its report to the government regarding the dispute within two months from the
date dispute was referred to it. However, depending on the case, the period can be
extended.
Voluntary arbitration Industrial Disputes (Amendment) Bill, 1956 incorporated Section 10A favouring
voluntary arbitration. In case of existed or apprehended dispute, the disputing parties can
enter into an arbitration agreement in writing. The success of voluntary arbitration
depends on “a sufficient degree of mutual confidence in decision by agreement on
subjects which may be submitted for arbitration”.
Court of enquiry The IDA, 1947 empowers the appropriate government to constitute a Court of Enquiry.
This body basically is a fact-finding agency, constituted just to reveal the causes of the
disputes and does not care much for the settlement thereof. The Court of Enquiry is
required to submit its report to the government ordinarily within six months from the
commencement of enquiry. The report of the court shall be published by the government
within 30 days of its receipt.
Adjudication����If the dispute is not settled by any other method, the government may refer it for
adjudication. Hence it is a compulsory method which provides for three-tier system for
adjudication of industrial disputes. This machinery consists of Labour Court, Industrial
Tribunals and National Tribunal. The first two bodies can be set up either by State or
Central Government but the National Tribunal can be constituted by Central
Government only, when it thinks that the solution of dispute is of national significance.
A Labour Court consists of one person only, called Presiding Officer, who is or has been
a judge of a High Court. The jurisdiction of Industrial Tribunal is comparatively wider
than Labour Courts, and further the Presiding Officer of Tribunal can have two assessors
may be appointed by the Central Government to help its Presiding Officer.
Labour Courts and Tribunals are now required to submit award to the appropriate
government within three months in case of individual disputes The submitted award
shall be published by government within 30 days from the date of its receipt. It shall
come into force on the expiry of 30 days from the date if its publication and shall be
operative for a period of one year, unless declared otherwise by the appropriate
government.
2.6.6 Grievance Handling A grievance is a sign of the employees’ discontent with job and its nature. It is caused
due to the difference between employee expectation and management practice.
Beach defines a grievance as, ‘any dissatisfaction or feeling of injustice in connection
with one’s employment situation that is brought to the notice of the management.
Jucius (2000), defines a grievance as ‘any discontent or dissatisfaction, whether exposed
or not, whether valid or not, arising out of anything connected with the company which
an employee thinks, believes or even feels to be unfair, unjust and inequitable’.
A grievance is a problem submitted by an employee or by a few employees of different
types. It may be conce4ring a situation or may likely to affect the terms and conditions
of employment of one worker or a few workers.
In the Nigeria context, ‘grievance’ may be said to “the representation by a worker, a
group of workers or the unions to the management relation to the terms and conditions of
employment, breach of the freedom of association or the provisions of standing orders or
non-implementation of the Government orders, conciliation agreeme4nts or
adjudicators’ awards”. It may also include representation against non-compliance with
provision of a collective agreement in an establishment where it has been signed.
Grievances usually result in definite and considerable loses to employee morale,
efficiency and productivity. The accumulation of grievance leads to strikes, lock outs
and other forms of conflicts. Therefore, proper disposal of grievances deserves special
and adequate consideration in any programme of harmonizing industrial relations.
2.6.6.1 Methods of Identifying Grievances The following methods according to Jucius (2000), helps the employer to identify the grievances:
1. Directive observation: Knowledge of human behaviour is requisite quality of every good
manager. From the changed behaviour of employees, he should be able to snuff the
causes of grievances. This he can do without its knowledge to the employee. This
method will give general pattern of grievances. In addition to normal routine, periodic
interviews with the employees, group meetings and collective bargaining are the specific
occasions where direct observation can help in unfolding the grievances.
2. Grip boxes: The boxes (like suggestion boxes) are placed at easily accessible spots to
most employees in the organisation. The employees can file anonymous complaints
about their dissatisfaction in these boxes. Due to anonymity, the fear of managerial
action is avoided. Moreover management’s interest is also limited to the free and fair
views of employees.
3. Open door policy: Most democratic by nature, the policy is preached most but practiced
very rarely in Indian organizations. But this method will be more useful in absence of an
effective grievance procedure; otherwise the organisation will do well to have a
grievance procedure. Open door policy demands that the employees, even at the lowest
rank, should have easy access to the chief executive to get his grievances redressed.
4. Exit interview: Higher employee turnover is a problem of every organisation. Employees
leave the organisation either due to dissatisfaction or for better prospects. Exit interviews
may be conducted to know the reasons for leaving the job. Properly conducted exit
interviews can provide significant information about the strengths and weaknesses of the
organisation and can pave way for further improving the management policies for its
labour force.
2.6.6.2 Principles or Guidelines for Grievance Handling
1. In handling grievances, a considerable amount of time must be spent in talking to
employees; gathering data from them and passing on various types of information. Such
talks to be most effective, should conform to definite patterns and adhere to well tested
rules.
2. The manager must seek to develop an attitude towards employees that should be helpful
in gaining their confidence. The management should also display a sincere interest in the
problems of employees and their constructive willingness to be to help to them with a
view to gain not only their confidence but also their utmost loyal by and genuine
cooperation.
3. The procedure adopt by the management in handling the grievances must be apparent.
4. Grievances should be handled in terms of their total effect on the organisation and not
solely their immediate or individual effect.
2.6.6.3 Steps in handling grievances
It is important that grievance must be handled in a systematic manner. Jucius (2000)
identifies
steps that should be taken in handling grievances.
1. Defining, describing or expressing the nature of the grievances as clearly and fully as
possible;
2. Gathering all facts that serve to explain when, how, where, to whom and why the
grievance occurred;
3. Establishing tentative solutions or answers to the grievances;
4. Gathering additional information to check the validity of the solutions and thus ascertain
the best possible solution;
5. Applying the solution, and
6. Following up the case to see that it has been handled satisfactorily and the trouble has
been eliminated.
2.6.6.4 Grievance handling procedures Grievance procedure is the most significant channel through which dissatisfaction of
employees can be communicated to management Mamoria & Sathish(2002). A
grievance procedure is an ordered multistep process that the employer and employee
jointly use to redress grievances and resolve disputes that arise. Thus a formal procedure
which attempts to resolve the differences of parties involved, in an orderly, peaceful and
expeditious manner, may be defined as grievance procedure or grievance redressal
machinery. The steps in this machinery vary from organisation to organisation.
For handling grievances, as a first step, the management is required to designate the
persons for each of the various departments to be approached by the works and the
department heads for handling grievances as the second step. A Grievance Committee
may also be constituted with representatives of workers and management. The model
grievance producer gives the various steps through which a grievance should be
processed.
First, the grievance is taken to the departmental representative of the management who
has to give an answer within 48 hours. Failing this, the aggrieved worker/ employee can
beat the departmental head along with the departmental representative of the
management and this step is allotted three days. Above this, the grievance is taken up by
the Grievance Committee which should make its recommendations to the manager
within seven days. The final decision of the management has to be communicated to the
workers or employee concerned within three days of the Grievance Committee’s
recommendations. If the employee is not satisfied, he can make an appeal for revision
and the management has to communicate its decision within a week. In the case of non-
settlement, the grievance may be referred to voluntary arbitration. The formal
conciliation machinery will not be invoked till the final decision of the top management
has been found unacceptable by the aggrieved employee.
In the case of any grievance arising out of discharge or dismissal, the workman or
employee has the right to appeal either to the dismissing authority or to a senior
authority specific by the management within a week from the date of dismissal or
discharge.
Although the grievance procedure gives the employees opportunity to raise their
grievances to the highest possible level of management, yet they should be resolved as
close as possible to their source. The main object of grievance procedure is to resolve the
grievance at earliest possible stage. The management must convince itself that justice is
not only done, but seen to be done and the presence of a trade union representative with
the aggrieved party helps to ensure fair play not only for the employee concerned, but
also for his management.
2.6.7 Employee Discipline Kapur & Punia (2003) define Discipline as an attitude of mind which aims at
inculcating restraint, orderly behaviour and respect for and willing obedience to a
recognized authority. In any industry discipline is a useful tool for developing,
improving and stabilizing the personality of workers. Industrial discipline is essential for
the smooth running of an organization, for increasing production and productivity, for
the maintenance of industrial peace and for the prosperity of the industry and the nation.
It is a process of bringing multifarious advantages to the organization and its employees.
2.6.7.1 Meaning
Webster’s Dictionary gives three meanings to the world “discipline”. First, it is the
training that corrects moulds, strengthens or perfects individual behaviour; second, it is
control gained by enforcing obedience; and third, it is punishment or chastisement.
According to Dr. Spiegel, “discipline is the force that prompts an individual or a group
to observe the rules, regulations and procedures which are deemed to be necessary to the
attainment of an objective; it is force or fear of force which restraints an individual or a
group from doing things which are deemed to be destructive of group objectives.
Discipline is a product of culture and environment and a basic part of the management of
employee attitudes and behaviour. It is a determinative and positive willingness which
prompts individuals and groups to carry out the instructions issued by management, and
abide by the rules of conduct and standards or work which have been established to
ensure the successful attainment of organizational objectives. It is also a punitive or a big
stick approach which imposes a penalty or punishment in case of disciplinary violations.
There are two types of discipline, one is positive and the other is negative. Positive
Discipline employs constructive force to secure its compliance. It is immeasurably more
effective and pays a greater role in business management. Negative Discipline, on the
other hand, includes both the application of penalties for violation and the fear of
penalties that serve as a deterrent to violation. Positive discipline prevails only where the
employees have a high morale. In other situations, negative discipline becomes
unavoidable.
2.6.7.2 Aims and objectives of discipline
The main aims and objectives of discipline are:
• To obtain a willing acceptance of the rules, regulations and procedures of an
organization so that organizational objectives can be attained;
• To develop among the employees a spirit of tolerance and a desire to make adjustments;
• To give and seek direction and responsibility;
• To create an atmosphere of respect for human personality and human relations;
• To increase the working efficiency morale of the employees; and
• To impart an element of certainty despite several differences in informal behaviour
patterns and other related changes in an organization.
2.6.7.3 Indiscipline
The term ‘indiscipline’ generally means the violation of formal or informal rules and
regulations in an organization. Indiscipline, if unchecked, will affect the morale of the
organization. Hence indiscipline is to be checked by appropriate positive means to
maintain industrial peace.
2.6.7.4 Causes for indiscipline in organizations
It is more complex and difficult to identify the causes of indiscipline. The policies and
procedures of organizations, the attitude of the management towards workers, the
attitude of workers, individual behaviors etc. are the causes for indiscipline, Tripathi &
Arya (2001).
The important causes for indiscipline are:
• Ineffective leadership to control, coordinate and motivate workers.
• Low wages and poor working conditions.
• Lack of timely redressal or workers’ grievances.
• Lack or defective grievance procedure.
• Character of the workers such as gambling, drinking, violet nature etc.
• Political influence.
2.6.7.5 Principle of Effective Discipline
Disciplinary actions have serious repercussions on the employees and on the industry,
and, therefore, must be based on certain principles in order to be fair, just and acceptable
to be the employee and their unions, Daver (2002). Therefore, in any discipline
maintenance system, certain principles are to be observed such as:
1. The rules of discipline, as far as possible, should be framed in cooperation and
collaboration with the representatives of employees for their easy implementation.
Employees in a group should be associated in the process of discipline enforcement. The
group as a whole can control an individual works much more effectively than the
management can through a process of remote control or by imposing occasional
penalties. Informal groups are likely to exert social pressures on wrong-doers avoiding
the need for negative disciplinary actions.
2. The rules and regulations should be appraised at frequent and regular intervals to ensure
that they are appropriate, sensible and useful.
3. The rules and regulations should be flexible to suit different categories of employees in
the organisation, i.e., both the blue-collar workers and white-collar employees.
4. The rules must be uniformly enforced for their proper acceptance. They must be applied
fairly and impersonally. In other words, all defaulters should be treated alike, depending
upon the nature of their offence and past record. Any discrimination or favoritism in this
regard is likely to create discontent among the employees. Further, there should be a
definite and precise provision for appeal and review of all disciplinary actions.
5. The rules of discipline embodied in the standing orders, or in the company’s manual,
must be properly and carefully communicated to every employee preferably at the time
of induction for their easy acceptance. It serves as a warning and a learning process and
helps to improve future behaviors of the employees in the enterprise.
6. Every kind of disciplinary penalty, even if it is a rebuke or a warning, should be
recorded. In some of the American industries they have what is known as the “pink slip
system”. Pink slips are issued as warning signals to a defaulting employee. A person
who has been issued with a stated number of pink slips will be liable to be laid-off or
discharged, and no elaborate procedure has to be followed.
7. The responsibility for maintaining employee discipline should be entrusted to a
responsible person (e.g. a line executive), through it is the personnel officer who should
be given the responsibility of offering advice and assistance. The line executive should
issue only verbal and written warnings. In serious matters, which warrant suspension,
discharge etc., the industrial relations departments should be consulted.
8. Disciplinary actions should be taken in private because its main objectives is to ensure
that a wrong behaviour is corrected and not that the wrongdoer is punished. If
disciplinary actions are taken in the presence of other employees, it may offend the sense
of dignity of the employee and impair his social standing with his colleagues. Similarly,
an immediate supervisor should never be disciplined in the presence of his subordinates.
If this happens, it would lower his status and authority, and make it difficult, if not
impossible, for him to discipline his subordinates under certain circumstances.
2.6.8 Conflict Management Conflict is a basic fact of life in groups and organizations. Organizations contain people
with divergent personalities, perceptions, goals, ideas, values and behaviours. Hence,
conflict is an inevitable feature of organizations. Chung and Megginson (2002) describe
conflict as the struggle between incompatible or opposing needs, wishes, ideas, interests
or people. More specifically,“conflict is a process in which an effort is purposefully
made by one person or unit to block another that results in frustrating the attainment of
the other’s goals or the furthering of his or her interests”.
Conflict is a naturally occurring phenomenon; inevitable; inherent in any system; not
always bad and in fact an optimum level of conflict energizes the system. Fosters
creativity and innovation, and acts as a catharsis. At the same time if conflict is allowed
to develop beyond control, it could tend to become destructive, resulting in such aversive
consequences such as strikes, sabotage and other dysfunctional behaviours.
The effective manager must understand the nature of conflict that is beneficial to the
organisation and conflict that is not. He must deal with conflict in ways that promote
both individual and organizational goals. The management of conflict is an essential
prerequisite to sound human relations.
2.6.8.1 Features of conflicts
• Conflict occurs when two or more parties pursue mutually exclusive goals, values or
events.
• Conflict arises out of differing perceptions.
• Conflict refers to deliberate behaviour.
• Conflict can exist either at the latent or overt level
• In conflict one side sees on opportunity to interfere with the others opportunity to
acquire resources or perform activities.
• Conflict is not an organizational abnormality but a normal aspect of social intercourse.
2.6.8.2 Level of Conflict
Low level of conflict creates conditions of inertia and boredom in the system and
excessive conflict results in destruction and dysfunctional tendencies. Managers have to
monitor the level of conflict in the system and if there is too little or no conflict at all, the
managers may even have to induce some level of conflict to energize the system. As the
level of conflict tends to go beyond the optimum level the manager must act to resolve
the conflict in a manner that will be beneficial to the organisation.
Latent Conflict
Each episode of conflict starts with a ‘latent conflict’ but the actual conflict has not
emerged. Factors such as competition for scarce resources, competition for positions in
the organisation exist which could become conflicts.
Perceived Conflict
This conflicts results in due to the parties misunderstanding of each other true position.
One party perceives the other to be likely to thwart or frustrate his goals.
Felt Conflict
When the conflict makes one tense or anxious, the conflict is a felt conflict because the
difference are personalized or internalized.
Manifest Conflict
This is the stage for open confrontation. It takes the form of conflictual behaviour
including aggression, sabotage, apathy etc. all of which reduce organization’s
effectiveness.
2.6.8.3 Conflict resolution
When conflict is resolved in some form, it is called conflict resolution.
Conflict aftermath
The aftermath of conflict may be either positive or negative for the organisation
depending on how the conflict is resolved. If the conflict is genuinely resolved, it can
lead to more enduring relationship between parties; if the conflict is merely suppressed
but not resolved, the latent of conflict may be aggravated and explode in more violent
and serious forms. This is called ‘conflict aftermath’,
2.6.8.4 Types of Conflicts Kapur & Punia (2003) state that Conflicts may take following forms:
Source: Kapur S. K. & Punia B.K.(2003) “Personnel Management and Industrial Relations”, S.K. Publishers, New Delhi. Fig 2.2: CONFLICT Individual conflict Inter-individual conflict
Inter-individual or inter-personal conflict involves two or more individuals who hold
polarized points of view. The most common reasons for inter-personal conflicts are
personality differences, perceptions, clashes of values and interests, and competing for
scarce resources.
Intra-individual Conflict
Intra-individual conflict is internal to the person and probably the most difficult type of
conflict to analyze. Basically, intra-personal conflict can be related to two things;
conflict arising due to divergent goals or conflict arising from out of multiple roles to be
played.
Goal conflict occurs when a goal that an individual is attempting to achieve has both
positive and negative features. Generally three separate types of goal conflicts are
indentified.
• Approach-approach conflict: A person wants tow positive situations but can have only one.
Individual Conflict Group Conflict Organizational Conflict
Inter-individual conflict
Intra-individual conflict
Inter-organization
al conflict
Intra-organizational conflict
Inter-group conflict
Inter-group conflict
• Approach-avoidance conflict: In this form of goal conflict the person attempts to achieve
a goal that has both positive and negative aspects but wants to avail of positive and
negative.
• Avoidance-avoidance conflict: This type of conflict can be resolved because a person
faced two negative goals and he may not choose either of them and may simply leave the
situation.
Role conflict is the result of divergent role expectations. It exits when the expectations of
a job are mutually different or opposite and the individual cannot meet one expectation
without rejecting the other. An individual confronting with role conflict will experience
psychological stress leading to emotional problems, resulting in poor performance.
Group conflict
Inter-group conflict
Every group is in at least partial conflict with every other group it interacts with. The
groups differ in goals, work activities, power and prestige. The sources of intergroup
conflict are incompatible goals, task interdependence, resource allocation, competitive
incentive and reward system, differences in values or perception etc.
Intra-group conflict
Intra-group conflict is essentially same as the bases of inter-individual conflict.
Organizational conflict
Inter-organizational conflict
The bases to inter-organizational conflicts are essentially the same as the bases on inter-
group conflict. The types of inter-organizational conflict are between management and
government, management and management, union and government etc.
Intra-organizational conflict
Intra-organizational conflicts are mainly three kinds:
• Horizontal conflict: It refers to conflict between employees of departments in the same
hierarchical level in an organization.
• Vertical conflict: If refers to any conflict between different hierarchical levels in an
organization. It occurs usually in superior-subordinate relations. The reasons for vertical
conflicts are inadequate communication, differences in interest, perception and attitudes
between position holders occupying different levels.
• Line and staff conflict: It refers to conflict between line managers and staff specialists.
Conflict Management
Conflict has to be resolved as soon as the optimum level is crossed and before
dysfunctional consequences start occurring. Following are some of the techniques
employed to resolve conflict.
Dominance through position
Quiet often managers use positional authority to fire a lower ranking subordinate they
consider to be a trouble-maker. Individuals, in organization, with rare exception,
recognize and accept the authority of their superiors as an acceptable way or resolving
conflicts. Although they may not be in agreement with these decisions, they abide by
them.
Appeals procedure The people in disagreements may appeal to higher authority to help them to arrive at a
solution by resolving the problem satisfactorily.
Liaison groups To arbit differences between two warring factions, an arbitrator can be appoint who can
use this expertise and persuasion to achieve coordination and get people together.
Interdependence Reduce
On way to resolve conflict is to reduce interdependences. Departments may be provided
with resources that are independent of those provided for other departments.
2.6.8.5 Conflict Resolution Model
Thompson (2003) suggests five styles such as competiting, avoiding, accommodating,
collaborating and compromising to resolve conflicts.
If two parties experience conflicts, each one could be more concerned above their own
self or could be more concerned for the other.
When the concern for ‘self’ is very low they could be very unassertive. If the concern for
the self is very high, they could be very assertive.
If their concern for the other is low, they would tend to the non-cooperative. If the
concern for the other it high, they could be co-operative.
In a conflicting situation:
• If an individual’s concern for self and others is low, he will avoid the conflict;
• If he has high concern for himself and low concern for others he will compete;
• If he has high concern for himself and for others, he will collaborate;
• If he has high concern for other but low concern for himself, he will accommodate;
• If he has medium level of concern for both himself and the other, he will go for
compromise.
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Emiola, A. (2000), Nigerian Industrial Law, 3rd Edition, Lagos: Emiola Publishers Limited.
Erickson, C L, and Sarosh K. (1998), "Industrial Relations System Transformation."
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CHAPTER THREE
RESEARCH METHODOLOGY
This chapter presents an overview of the method used to obtain the relevant data, which
were used in presenting, analyzing and interpreting the result of the study. The chapter
consists of research design, sources of data, population of the study, sample size
determination, description of research instrument, data analysis techniques, validity of
data collection and reliability of the instrument.
3.1 RESEARCH DESIGN
Research Design is the frame work which specifies the type of information to be
collected, the sources of data and the collection procedure. It is the basic plan for data
collection and analysis of the study. The design used for this study is survey research
design.
3.2 SOURCES OF DATA
The research data to be used will be collected from two major sources: primary and
secondary sources.
Primary Source – Primary data is defined as the data gathered for a specific research.
They are first hand information which the researcher generated for the purpose of the
study. The primary source of data collection consists of information obtained from
questionnaire and oral interview.
Secondary Source – Secondary data were collected from several sources which include
books, journals, magazine, newspapers and some unpublished works related to
industrial relations. Some materials were obtained from the internet.
3.3 POPULATION OF THE STUDY
The target population of the study includes the Management staff and Non management
Staff of the following federal teaching hospitals: University of Nigeria Teaching
Hospital Enugu, Nnamdi Azikiwe University Teaching Hospital Awka
Table 3.1 Population Distribution
HOSPITALS Population
University of Nigeria Teaching Hospital Enugu 1160
Nnamdi Azikiwe University Teaching Hospital Awka 1000
Total 2160
Source: Field survey, 2010.
3.4 SAMPLE SIZE DETERMINATION
Based on this population, a normal confidence level of 95% and error tolerance of 5%
were used. We therefore, determine the sample size using Taro Yamane’s formula:
Taro Yamane’s formula is given as: 21 NeN
n+
=
Where n = sample size
N = Population size
e = Error of tolerance
1= Statistical constant
i.e
N= 2160
e = 5% or 0.05%
therefore:
( )
3384.51
2500)0025.0(21601
216005.021601
21602
=+
=
+=
+=
n
n
n
So the sample size is 338
A stratified sampling technique was used so as to give a proper representation to the
designated hospitals.
Using Bowley’s proportional allocation statistical technique for stratification, with the
formula as:
nh= nNh
N
Where, nh = The number of unit allocated to each stratum.
Nh = Number of staff in each stratum.
n = sample size
N = The entire population
By the use of stratified sampling the distribution of the sample size of federal teaching
hospitals to be studied are as follows:
Proportion of the staff of University of Nigeria Teaching Hospital Enugu
nh = 338 x 1160 = 392,080 = 182
2160 2160
Proportion of staff of Nnamdi Azikiwe University Teaching hospital Nnewi
nh = 338 x 1000 = 338000 = 156
2160 2160
Table 3.2 Breakdown of the sample size
Hospital A Q
University of Nigeria Teaching Hospital Enugu 1160 182
Nnamdi Azikiwe University Teaching Hospital
Awka.
1000 156
Total 2160 338
Source: Field survey, 2010.
3.5 DESCRIPTION OF RESEARCH INSTRUMENT
The major research instrument used for this study is a structured questionnaire and
personal interview.
The questionnaires were formulated considering the research questions that were raised
in the first chapter of this study. The designed questionnaire has two (2) sections.
Specifically, all the questions in section A were drawn and aimed at providing some
general information on the respondents while the remaining questions in section B were
meant to directly address the research questions.
In the design of the questionnaire, five (5) point likert scale method was adopted. The
questionnaire was distributed to staff of the federal teaching hospitals in the south east
Nigeria. The researcher equally made use of interview method to elicit information.
3.6 DATA ANALYSIS TECHNIQUES
The analysis of data is subjected to simple and statistical treatment organized and
presented in tables and percentages. Hypotheses one and two were tested using chi-
square (x), while hypotheses three and four were tested using Z-test to determine the
extent to which one research variable affects the other.
3.7 VALIDITY OF THE RESEARCH INSTRUMENT
Onwumere (2005:69) defines validity as the extent to which a measuring instrument on
application performs the function for which it is designed. To make sure that the
research instrument applied in this work are valid, the researcher ensured that the
instrument measure the concept they are supposed to measure. A proper structuring of
the questionnaire and the conduct of a pre-test of every question contained in the
questionnaire was carried out to ensure that they are valid. Also design of the
questionnaire was made easy for the respondents to tick their preferred choice from the
options provided as it has been established that the longer the length of questionnaire,
the lower the response rate (Lavine,1987) Response validity was obtained by
recontacting individuals whose responses appear unusual or inconsistent.
3.8 RELIABILITY OF THE MEASURING INSTRUMENT
To test for reliability of the instrument, a test re-test method was adopted in which 30
copies of the questionnaire were distributed to the federal teaching Hospitals understudy
i.e. 15 copies for each Hospital. After some days, the instrument was collected and re-
administered for the second time. Pearson’s Product Moment Correlation Coefficient of
reliability was used to test the result. The result gave reliability coefficient of r = 0.98
showing that there is consistency in the items of survey. The reliability was calculated
as follows:
Table 3.3: Correlation coefficient of reliability
X Y Xy X2 Y2
1 12 13 156 144 169
2 10 12 120 100 144
Total 22 25 276 244 313
Source: Researcher Field Survey 2011.
Formula:
= 0.98
Therefore r = 0.98
REFERENCES
Churchil, G. (1991) Marketing research: Methodological Foundation, New York: The
Dryden Press.
Onwumere J.U. (2009) Business & Economic Research Methods, Enugu: Vougasen
Publishers.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
Data obtained in the course of the study were presented and analyzed in frequency
tables, simple percentages and descriptive analysis.
Table 4.1 Distribution and Return of the Questionnaire
Organisation No Distributed
%
No. Returned
%
No. not Returned
%
University of Nigeria Teaching Hospital Ituku Ozalla Enugu
182
53.8 161 47.6 22 6.5
Nnamdi Azikiwe University Teaching Hospital Awka
156 46.2 145 42.9 10 3.0
Total 338 100 306 90.5 32 9.5
Source: Researcher’s Field Survey 2011.
Table 4.1 above shows that a total of three hundred and thirty eight (338) copies of
the questionnaire were distributed to the respondents from the two (2) Federal
Teaching Hospitals. A total of three hundred and six (306) representing 90.5% copies
were returned and used; thirty two copies (32) representing 9.5% copies were not
returned and were not used.
Table 4.2: Sex Distribution of the Respondents.
ORGANISATION UNTH NAUTH
Sex
Mgt. Staff
Non-Mgt Staff
Mgt Staff
Non-Mgt Staff
Frequency %
Male 78 20 61 18 177 57.8 Female 46 17 53 13 129 42.2
Total 124 37 114 31 306 100
Source: Researcher’s Field survey 2011.
From the above table, it was observed that 177 respondents representing 57.8% were
males while 129 respondents representing 42.2% were females. This indicates that
males were more than females.
Table 4.3: Age distribution of the respondents
Source: Researcher’s Field Survey 2011.
From table 4.3 above, 31.0% respondents were between the age of 20-30 years, 47.4%
were within the age bracket of 30-40 while 21.6% of the respondents were in the ages
of 40 years and above. This shows that majority of the respondents are in the ages of
30-40 years.
Table 4.4: Marital Status. ORGANISATION
UNTH NAUTH Marital Status Mgt
Staff Non-Mgt Staff
Mgt Staff
Non-mgt Staff
Frequency %
Single 42 4 40 2 88 28.8 Married 96 19 87 16 218 71.2 Total 138 23 127 18 306 100
Source: Researcher’s Field survey 2011.
Table 4.4 shows that 28.8% respondents were single while the remaining 71.2% were
married. This shows that greater number of the respondents were married.
Table 4.5: Educational Qualification
ORGANISATIONS � UNTH NAUTH �
Qualification Mgt Staff
Non-Mgt Staff
Mgt Staff
Non- Mgt Staff
Freq %
OND - 23 1 18 42 13.7 HND 32 8 34 7 81 26.5 B.Sc 63 9 58 4 134 43.8 M.Sc, MBA 11 - 10 - 21 6.86 Ph.D 8 - 6 - 14 4.57 Professional cert. 7 - 7 - 14 4.57
�
ORGANISATION ����
UNTH NAUTH Age Range Mgt
Staff
Non-Mgt Staff
Mgt Staff
Non-Mgt Staff
Freq %
20-30 4 5 39 4 95 31.0
30-40 51 27 47 20 145 47.4 40 & above 20 11 21 14 66 21.6 Total 118 43 107 38 306 100
Total 121 40 116 29 306 100 Source: Researcher’s Field Survey 2011.
Table 4.5 above reveals that 13.7% of the respondents hold OND, 26.5% were HND
holders, 43.8% were B.Sc degree holders, M.Sc/MBA degree holders constitute 6.86
of the respondents. 4.57% of the respondents hold Ph.D, while 4.57% of the
respondents hold professional certificate. This implies that majority of the
respondents hold B.Sc followed by HND holders.
RESEARCH QUESTION 1: What is the nature of industrial relations system in
Federal Teaching Hospitals in the South East Nigeria?
Question 5: Do you agree that industrial relations contribute to economic and
development of the organization?
Table 4.6: The nature of industrial relations system in Federal Teaching Hospitals in
the South East Nigeria.
ORGANISATIONS � UNTH NAUTH �
Rating
Mgt Staff
Non-Mgt Staff
Mgt Staff
Non- Mgt Staff
Freq %
S. Agree 81 21 73 25 200 65.4 Agree 32 9 28 8 77 25.2 Undecided 2 - - - 2 0.65 Disagree 5 2 4 1 12 3.92 S. Disagree 8 1 5 1 15 4.90 Total 128 33 110 35 306 100
Source: Researcher’s Field Survey 2011.
Table 4.6 reveals that 65.4% of the respondents indicated strongly agree, 25.2% of the
respondents indicated agree, 0.65% of the respondents indicated undecided while
3.92% disagree and 4.90% strongly disagree. This shows that Industrial relations
contribute to economic and development of the organizations.
Question 6: Do you agree that industrial relations improve morale?
Table 4.7: The nature of industrial relations system in Federal Teaching Hospitals in the South East Nigeria.
ORGANISATIONS � UNTH NAUTH �
Rating
Mgt Staff
Non-Mgt Staff
Mgt Staff
Non- Mgt Staff
Freq %
S. Agree 21 11 23 9 64 20.9 Agree 73 12 61 1 8 164 53.6 Undecided 4 1 5 - 10 3.27
Disagree 19 9 7 11 46 15.0 S. Disagree 8 3 5 6 22 7.19 Total 125 36 101 44 306 100
Source: Researcher’s Field Survey 2011.
Table 4.7 reveals that 20.9% of the respondents indicated strongly agree, 53.6% of the
respondents indicated agree, 3.27% were indifferent on the matter, while 15.0% and
7.19% were disagree and strongly disagree respectively. This shows that industrial
relations improve morale.
Question 7: Industrial relations encourage workers participation in decision making.
Table 4.8: The nature of industrial relations system in Federal Teaching Hospitals in
the South East Nigeria.
ORGANISATIONS ��
� � UNTH NAUTH � Rating
Mgt Staff
Non- Mgt Mgt
Mgt Staff
Non-Mgt Staff
Freq %
S. Agree 81 31 69 27 208 68.0 Agree 22 15 19 15 71 23.2 Undecided 1 - 2 - 3 0.98 Disagree 3 3 5 2 13 4.25 S. Disagree 4 1 5 1 11 3.60 Total 111 50 100 45 306 100
Source: Researcher’s Field Survey 2011.
Table 4.8 reveals that 68.0% of the respondents indicated strongly agree, 23.2% of the
respondents indicated agree, 0.98% were indifferent, while 4.25% and 3.60% disagree
and strongly disagree respectively. This shows that Industrial relations encourage
workers participation in decision making.
Question 8: Do you agree that industrial relations facilitate positive change in the
organization? Table 4.9: The nature of industrial relations system in Federal Teaching
Hospitals in the South East Nigeria.
ORGANISATIONS � UNTH NAUTH �
Rating
Mgt Staff
Non-Mgt Staff
Mgt Staff
Non-Mgt Staff
Freq %
S. Agree 78 14 71 18 181 59.2 Agree 21 8 17 10 56 18.3 Undecided 1 1 1 - 3 0.98 Disagree 14 4 13 4 35 11.4 S. Disagree 17 3 7 4 31 10.1 Total 131 30 109 36 306 100
Source: Researcher’s Field Survey 2011.
Table 4.9 reveals that 59.2% of the respondents indicated strongly agree, 18.3% of the
respondents indicated agree, 0.98% were indifferent while 11.4% and 10.1% disagree
and strongly disagree respectively. This shows that industrial relations facilitate
positive change in the organizations.
Question 9: Do you agree that industrial relations bring better understanding and
cooperation between employers and workers?
Table 4.10: The nature of industrial relations system in Federal Teaching Hospitals in
the South East Nigeria.
ORGANISATIONS � UNTH NAUTH �
Rating
Mgt Staff
Non-Mgt Staff
Mgt Staff
Non- Mgt Staff
Freq %
S. Agree 97 21 71 28 217 70.9 Agree 24 11 22 9 66 21.6 Undecided - - 2 - 2 0.65 Disagree 3 2 7 2 14 4.58 S. Disagree 1 2 1 3 7 2.29 Total 125 36 103 42 306 100
Source: Researcher’s Field Survey 2011.
Table 4.10 reveals that 70.9% of the respondents strongly agree, 21.6% of the
respondents indicated agree, 0.65% were indifferent on the issue, while 4.58% and
2.29% disagreed and strongly disagreed respectively. This shows that industrial
relations bring better understanding and cooperation between employers and workers.
Table 4.11: Condensed outcome of the five questions administered for testing
Hypothesis one.
Organisations Category of staff
Strongly Agreed
Agreed Undecided Disagreed Strongly Disagreed
Total
Mgt Staff 358 172 8 44 38 620 UNTH Non Mgt Staff
98 55 2 20 10 185
Mgt Staff 307 127 10 36 23 503 NAUTH
Non-Mgt Staff
107 60 - 23 15 205
Grand Total 870 414 20 123 86 1513 Source: Researchers Field Survey 2011.
Having gotten a grand total from the compressed analyses, aggregate responses from
the two hospitals presented below in accordance with the category of staff to
determine the expected frequency of each observation.
Table 4.12: Aggregate response for the two hospitals
Category of staff Strongly agreed
Agreed Undecided Disagreed Strongly Disagreed
Freq %
Mgt Staff 665 299 18 80 61 1123 74 Non-Mgt Staff 205 115 2 43 25 390 26 Grand 870 414 20 123 86 1513 100 Source: Researcher’s Field Survey 2011.
Table 4.13: Expected frequencies for Hypothesis one
Category of staff
Strongly agreed
Agreed Undecided Disagreed Strongly Disagreed
Freq %
Mgt Staff 646 307 15 91 64 1123 74 Non-Mgt Staff
224 107 5 32 22 390 26
Grand 870 414 20 123 86 1513 100 Source: Researcher’s Field Survey 2011.
RESEARCH QUESTION 2: What is the nature of rules guiding industrial relations
in Federal Teaching Hospitals in the South East Nigeria?
Question 10: There are laid down rules, regulations and procedures in the execution of work between management and workers. Table 4.14: The nature of rules guiding industrial relations in Federal Teaching
Hospitals in the South East Nigeria.
ORGANISATIONS � UNTH NAUTH �
Rating
Mgt Staff
Non-Mgt Staff
Mgt Staff
Non-Mgt Staff
Freq %
S. Agree 93 27 79 29 228 74.5 Agree 21 10 21 8 60 19.6 Undecided 2 - - - 2 0.65 Disagree 4 1 4 2 9 2.94 S. Disagree 1 2 3 - 7 2.21 Total 121 40 107 38 306 100 Source: Researcher’s Field Survey 2011.
Table 4.14 reveals that 74.5% of the respondents strongly agree, 19.6% of the
respondents indicated agree on the same issue, 0.65% were indifferent on the issue,
while 2.94% and 2.21 % disagree and strongly disagree. This shows that there are
rules, regulations and procedures in the execution of work between management and
workers.
Question 11: some of the rules and regulations are off-shot of collective bargaining process between management and workers. Table 4.15: The nature of rules guiding industrial relations in Federal Teaching
Hospitals in the South East Nigeria.
ORGANISATIONS � UNTH NAUTH �
Rating Mgt Staff
Non-Mgt Staff
Mgt Staff
Non- Mgt Staff
Freq %
S. Agree 103 28 97 29 254 83.0 Agree 12 13 8 3 26 8.50 Undecided 1 - 1 1 3 0.98 Disagree 6 2 4 - 12 3.92 S. Disagree 5 1 4 1 11 3.59 Total 127 34 114 31 306 100 Source: Researcher’s Field Survey 2011.
Table 4.15 reveals that 83.0% of the respondents strongly agree, 8.50% of the
respondents indicated agree, 0.98% were indifferent on the issue, while 3.92% and
3.59 % disagree and strongly disagree respectively. This shows that rules and
regulations are off short of collective bargaining between management and workers.
Question 12: Management and unions of workers adhere to the procedural rules in resolving conflict and conditions of work. Table 4.16: The nature of rules guiding industrial relations in Federal Teaching
Hospitals in the South East Nigeria.
ORGANISATIONS �UNTH NAUTH
Rating
Mgt Staff
Non-Mgt Staff
Mgt Staff
Non-Mgt Staff
Freq %
S. Agree 107 22 103 18 250 81.7 Agree 13 5 10 5 33 10.78 Undecided 2 1 2 - 5 1.63 Disagree 3 2 3 1 9 2.94 S. Disagree 4 2 2 1 9 2.94
Total 129 32 114 25 306 100 Source: Researcher’s Field Survey 2011.
Table 4.16 reveals that 81.7% of the respondents indicated strongly agree, 0.78% of
the respondents indicated agree, 1.63% respondents were indifferent, while 2.94% and
2.94% respondents respectively disagree and strongly disagree. This shows that there
is strict adherence to the procedural rules in resolving conflicts and conditions of
work.
Question 13: Rules and regulations with respect to industrial relations are meant to
promote unity between workers and management.
Table 4.17: The nature of rules guiding industrial relations in Federal Teaching
Hospitals in the South East Nigeria.
ORGANISATIONS �� � �
� � � UNTH NAUTH �
Rating Mgt Staff
Non-Mgt Staff
Mgt Staff
Non- Mgt Staff
Freq %
S. Agree 106 21 81 38 246 80.4 Agree 22 8 13 5 48 15.7 Undecided - 1 1 - 2 0.65 Disagree 2 - 2 1 5 1.63 S. Disagree 1 - 2 2 5 1.63 Total 131 30 99 46 306 100 Source: Researcher’s Field Survey 2011
Table 4.17 reveals that 80.4% of the respondents indicated strongly agree, 15.7%
respondents indicated agree, 0.65% respondents were indifferent, while 1.63% and
1.63% respondents respectively disagree and strongly disagree. This shows that rules
and regulations with respect to industrial relations promote unity between workers
and managements.
Question 14: Labour rules and regulations ensure orderliness and stability. Table 4.18: The nature of rules guiding industrial relations in Federal Teaching
Hospitals in the South East Nigeria.
ORGANISATIONS � UNTH NAUTH �
Rating Mgt Staff
Non-Mgt Staff
Mgt Staff
Non-Mgt Staff
Freq %
S. Agree 81 22 79 20 202 66.0
Agree 27 15 25 11 78 25.5 Undecided 2 1 2 - 5 1.63 Disagree 7 2 4 1 14 4.58 S. Disagree 3 1 2 1 7 2.29 Total 120 41 112 33 306 100
Source: Researcher’s Field Survey 2011
Table 4.18 reveals that 66.0% of the respondents indicated strongly agree, 25.5% of
the respondents indicated agree, 1.63% respondents were indifferent, while 4.58% and
2.29% respondents respectively disagree and strongly disagree. This shows that
labour rules and regulations ensure orderliness and stability.
Table 4.19: Condensed outcome of the five questions administered for testing
Hypothesis two.
Organisations Category of staff
Strongly Agreed
Agreed Undecided Disagreed Strongly Disagreed
Total
Mgt Staff 490 95 7 22 14 628 UNTH Non-Mgt Staff
120 51 3 7 6 187
Mgt Staff 439 77 10 17 13 556 NAUTH
Non-Mgt Staff
134 32 - 5 5 176
Grand Total 1183 255 20 51 38 1547
Source: Researchers Field Survey 2011
Having gotten a grand total from the compressed analyses, aggregate responses from
the two hospitals are presented below in accordance with the category of staff to
determine the expected frequency of each observation.
Table 4. 20: Aggregate response for the two hospitals
Category of staff
Strongly agreed
Agreed Undecided Disagreed Strongly Disagreed
Freq %
Mgt Staff 929 172 17 39 27 1184 77 Non-Mgt Staff 254 83 3 12 11 363 23 Grand 1183 255 20 51 38 1547 100 Source: Researcher’s Field Survey 2011.
Table 4.21: Expected frequencies for Hypothesis two
Category of staff
Strongly agreed
Agreed Undecided Disagreed Strongly Disagreed
Freq %
Mgt Staff 905 195 15 39 29 1183 76 Non-Mgt Staff 278 60 5 12 9 364 24 Grand 870 414 20 123 86 1547 100 Source: Researcher’s Field Survey 2011.
RESEARCH QUESTION 3: Can industrial relations promote harmony in Federal
Teaching Hospitals in the South East Nigeria?
Question 15: Effective collective bargaining brings harmonious relationship between employees and the employers. Table 4.22: Industrial relations promote harmony in Federal Teaching Hospitals in the South East Nigeria.
ORGANISATIONS � UNTH NAUTH �
Rating
Mgt Staff
Non-Mgt Staff
Mgt Staff
Non-Mgt Staff
Freq %
S. Agree 75 23 68 21 187 61.1 Agree 36 11 26 9 82 26.8 Undecided 1 - 1 1 3 0.98 Disagree 5 3 7 2 17 5.56 S. Disagree 6 1 9 1 17 5.56 Total 123 38 111 34 306 100
Source: Researcher’s Field Survey 2011
Table 4.22 reveals that 61.1% of the respondents indicated strongly agree, 26.8% of the
respondents indicated agree, 0.98% were indifferent on the issue, while 5.56% and 5.56
% disagree and strongly disagree. This shows that effective collective bargaining brings
harmonious relationship between employees and the employers.
Question 16: Do you agree that positive outcome from industrial relations promote
harmony.
Table 4.23: Industrial relations promote harmony in Federal Teaching Hospitals in the
South East Nigeria.
ORGANISATIONS � UNTH NAUTH �
Rating
Mgt Staff
Non-Mgt Staff
Mgt Staff
Non-Mgt Staff
Freq %
S. Agree 99 32 82 29 242 79.1 Agree 13 7 12 4 36 11.8 Undecided - - 2 - 2 0.65 Disagree 6 1 7 2 16 5.23 S. Disagree 3 - 6 1 10 3.27 Total 121 40 109 36 306 100
Source: Researcher’s Field Survey 2011
Table 4.23 reveals that 79.1% of the respondents indicated strongly agree, 11.8% of the
respondent indicated agree, 0.65% were indifferent on the issue, while 5.23% and 3.27
% disagree and strongly disagree. This shows that positive outcome from industrial
relations promote harmony.
Question 17: Harmonious industrial relations provide satisfactory working conditions and payment of fair wage. Table 4.24: Industrial relations promote harmony in Federal Teaching Hospitals in the
South East Nigeria.
ORGANISATIONS � UNTH NAUTH �
Rating
Mgt Staff
Non-Mgt Staff
Mgt Staff
Non- Mgt Staff
Freq %
S. Agree 82 27 77 21 207 67.6 Agree 29 11 27 10 77 25.2 Undecided - 1 1 1 3 0.98 Disagree 2 3 4 1 10 3.27 S. Disagree 4 2 1 2 9 2.94 Total 117 44 110 35 306 100
Source: Researcher’s Field Survey 2011
Table 4.24 reveals that 67.6% of the respondents indicated strongly agree, 25.2% of the
respondents indicated agree, 0.98% respondents were indifferent, while 3.27% and
2.94% respondents respectively disagree and strongly disagree. This shows that
harmonious industrial relations provide satisfactory working conditions and payment of
fair wage.
Question 18: Do you agree that harmonious industrial relations lead to increased
efficiency and productivity.
Table 4.25: Industrial relations promote harmony in Federal Teaching Hospitals in the
South East Nigeria.
ORGANISATIONS � UNTH NAUTH �
Rating
Mgt Staff
Non-Mgt Staff
Mgt Staff
Non- Mgt Staff
Freq %
S. Agree 95 32 89 29 245 80.1 Agree 14 4 9 5 32 10.5 Undecided 1 1 2 1 5 1.63 Disagree 7 2 4 2 15 4.90 S. Disagree 4 1 3 1 9 2.94
Total 121 40 107 38 306 100
Source: Researcher’s Field Survey 2011
Table 4.25 reveals that 80.1% of the respondents indicated strongly agree, 10.5% of the
respondents indicated agree, 1.63% respondents were indifferent, while 4.90% and
2.94% respondents respectively disagree and strongly disagree. This shows that
harmonious industrial relations lead to increased efficiency and productivity.
Question 19: Do you agree that industrial relations promote harmony.
Table 4.26: Industrial relations promote harmony in Federal Teaching Hospitals in the
South East Nigeria.
ORGANISATIONS � UNTH NAUTH �
Rating
Mgt Staff
Non-Mgt Staff
Mgt Staff
Non- Mgt Staff
Freq %
S. Agree 91 27 77 24 219 71.6 Agree 24 9 19 7 59 19.3 Undecided - - 2 1 3 0.98 Disagree 6 1 7 3 17 5.56 S. Disagree 3 - 4 1 8 2.61 Total 124 37 109 36 306 100
Source: Researcher’s Field Survey 2011
The question above was set to know if industrial relations promote harmony.71.6% of
the respondents strongly agreed that industrial relations promote harmony. 19.3%
respondents agreed on the same issue, 0.98% respondents were indifferent, while 5.56%
and 2.61% respondents respectively disagree and strongly disagree. This shows that
industrial relations promote harmony.
Table 4.27: Condensed outcome of the five questions administered for testing
Hypothesis three.
Organisations Category of staff
Strongly Agreed
Agreed Undecided Disagreed Strongly Disagreed
Total
Mgt Staff 442 116 2 26 20 606 UNTH Non-Mgt Staff
141 42 2 10 4 199
Mgt Staff 393 93 18 29 23 556 NAUTH
Non-Mgt Staff
124 35 4 10 6 179
Grand Total 1100 286 26 75 53 1540
Source: Researchers Field Survey 2011
Having gotten a grand total from the compressed analyses, aggregate responses from
the two hospitals are presented below in accordance with the category of staff to
determine the expected frequency of each observation.
Table 4.28: Aggregate response for the two hospitals
Category of staff
Strongly agreed
Agreed Undecided Disagreed Strongly Disagreed
Freq %
Mgt Staff 835 209 20 55 43 1162 75 Non-Mgt Staff
265 77 6 20 10 378 25
Grand 1100 286 26 75 53 1540 100 Source: Researcher’s Field Survey 2011
Table 4.29: Expected frequencies for Hypothesis three
Category of staff
Strongly agreed
Agreed Undecided Disagreed Strongly Disagreed
Freq %
Mgt Staff 830 216 20 57 40 1163 76 Non-Mgt Staff 270 70 6 18 13 377 24 Grand 1100 286 26 75 53 1540 100
Source: Researcher’s Field Survey 2011.
Research Question 4: What are the major challenges of managing industrial
relations in Federal Teaching Hospitals in the South East Nigeria?
Question 20: Regular threat of strikes by workers is a challenge. Table 4.30: The major challenges of managing industrial relations in Federal
Teaching Hospitals in the South East Nigeria.
ORGANISATIONS � UNTH NAUTH �
Rating
Mgt Staff
Non-Mgt Staff
Mgt Staff
Non-Mgt Staff
Freq %
S. Agree 79 23 76 21 199 65.0 Agree 28 13 28 11 80 26.1 Undecided - 2 - - 2 0.65 Disagree 6 1 4 2 13 4.25 S. Disagree 7 2 2 1 12 3.92 Total 120 41 110 35 306 100
Source: Researcher’s Field Survey 2011
Table 4.30 reveals that 65.0% of the respondents indicated strongly agree, 26.1% of
the respondents indicated agree, 0.65% respondents were indifferent, while 4.25% and
3.92% respondents respectively disagree and strongly disagree. This shows that threat
of strikes by workers is a major challenge.
Question 21: The frequency of industrial disputes between management and workers is a challenge. Table 4.31: The major challenges of managing industrial relations in Federal Teaching Hospitals in the South East Nigeria.
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������� �#�$�#�#� ����� ��� � ������ ���� � ���%� ��� �
������& �'������ ��� %� ���(� ���� �� ������ ����%� !���
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�������� ���)� ��� ��� ����� � "!� ����"� ���"�� ""�
Source: Researcher’s Field Survey 2011
Table 4.31 reveals that 56.5 % of the respondents strongly agree, 13.1% of the
respondents indicated agree, 2.61% were indifferent on the issue, while 15.7% and
12.1 % disagree and strongly disagree. This shows that the frequency of industrial
disputes between management and workers is a challenge.
Question 22: Non and improper implementation of collective agreement reached.
Table 4.32: The major challenges of managing industrial relations in Federal Teaching
Hospitals in the South East Nigeria.
ORGANISATIONS UNTH NAUTH
Rating
Mgt Staff
Non-Mgt Staff
Mgt Staff
Non- Mgt Staff
Freq %
S. Agree 69 23 61 28 181 59.2 Agree 21 8 26 6 56 18.3 Undecided 1 1 - 1 3 0.98 Disagree 13 5 12 5 35 11.4 S. Disagree 14 6 7 4 31 10.1 Total 118 43 101 44 306 100
Source: Researcher’s Field Survey 2011.
Table 4.32 reveals that 59.2% of the respondents strongly agree, 18.3% of the
respondents indicated agree, 0.98% were indifferent on the issue, while 11.4% and 10.1
% disagree and strongly disagree. This shows that non and improper implementation of
collective agreement reached is a challenge.
Question 23: Inability to reach consensus.
Table 4.33: The major challenges of managing industrial relations in Federal Teaching
Hospitals in the South East Nigeria.
ORGANISATIONS UNTH NAUTH
Rating
Mgt Staff
Non- Mgt Staff
Mgt Staff
Non-Mgt Staff
Freq %
S. Agree 16 5 15 4 40 13.1 Agree 17 3 11 6 37 12.1 Undecided 2 1 1 1 5 1.63 Disagree 20 11 20 9 60 19.6 S. Disagree 65 21 56 22 164 53.6 Total 120 41 103 42 306 100
Source: Researcher’s Field Survey 2011
Table 4.33 reveals that 13.1% of the respondents strongly agree, 12.1% of the
respondents indicated agree, 1.63% were indifferent on the issue, while 19.6% and 53.6
% disagree and strongly disagree. This shows that inability to reach consensus is a
challenge.
Question 24: Lack of strong and healthy trade unionism.
Table 4.34: The major challenges of managing industrial relations in Federal Teaching
Hospitals in the South East Nigeria.
ORGANISATIONS � UNTH NAUTH �
Rating
Mgt Staff
Non-Mgt Staff
Mgt Staff
Non-Mgt Staff
Freq %
S. Agree 76 36 65 31 208 68.0 Agree 27 10 26 8 71 23.2 Undecided 1 - 1 1 3 0.98 Disagree 5 1 5 2 13 4.25 S. Disagree 3 2 3 3 11 3.60 Total 112 49 100 45 306 100
Source: Researcher’s Field Survey 2011
Table 4.34 reveals that 68.02% of the respondents indicated strongly agree, 23.2% of
the respondents indicated agree, 0.98% were indifferent on the issue, while 4.25% and
3.60 % disagree and strongly disagree. This shows that lack of strong and healthy trade
unionism is a challenge.
Table 4.35: Condensed outcome of the five questions administered for testing
Hypothesis four.
Organisations Category of staff
Strongly Agreed
Agreed Undecided Disagreed Strongly Disagreed
Total
Mgt Staff 304 108 8 62 102 582 UNTH Non-Mgt Staff
111 40 5 27 38 221
Mgt Staff 280 105 4 55 80 524 NAUTH
Non-Mgt Staff
106 36 4 25 35 206
Grand Total 801 289 21 169 255 1535
Source: Researchers Field Survey 2011
Having gotten a grand total from the compressed analyses, aggregate responses from
the two hospitals are presented below in accordance with the category of staff to
determine the expected frequency of each observation.
Table 4.36: Aggregate response for the two hospitals
Category of staff Strongly agreed
Agreed Undecided Disagreed Strongly Disagreed
Freq %
Mgt Staff 584 213 12 117 182 1108 72 Non-Mgt Staff 217 76 9 52 73 427 28 Grand 801 289 21 169 255 1535 100
Source: Researcher’s Field Survey 2011
Table 4.37: Expected frequencies for Hypothesis four
Category of staff
Strongly agreed
Agreed Undecided Disagreed Strongly Disagreed
Freq %
Mgt Staff 578 209 15 122 184 1108 76 Non Mgt Staff
223 80 6 47 71 427 24
Grand 801 289 21 169 255 1535 100 Source: Researcher’s Field Survey 2011.
4.1 TESTING HYPOTHESIS
In analyzing the four (4) hypotheses in chapter one as earlier stated, the test statistics
of Friedman’s Chi-square tests and Z-test aided by computer Microsoft special
package for social science (SPSS) were used to test the hypothesis. Friedman’s Chi-
square analysis was used in testing hypothesis one and two while Z-test analysis was
used in testing hypothesis three and four. Below are the analysis and the testing of the
hypothesis formulated to answer the research questions asked to guide the study.
HYPOTHESIS ONE
Ho: There is no smooth industrial relations system between management and
workers in Federal Teaching Hospitals in the South East Nigeria.
H1: There is a smooth industrial relations system between management and workers
in Federal Teaching Hospitals in the South East Nigeria.
Questions 6-10 were designed and administered to validate or disprove the above
hypothesis.
The Test
Our goal is to analyze the nature of industrial relations system in the two Federal
Teaching Hospitals in the South East Nigeria. Based on the outcome of five questions
in the questionnaire administered to test hypothesis one, Friedman’s chi-square test
was employed using the relevant area of the computer special package for social
science (SPSS) as related to research question one and hypothesis one respectively.
The result below emerged.
NPar Tests
Table 4.38: Descriptive Statistics
N Mean Std. Deviation
Minimum
Maximum
Industrial relations contribute to economic and development of the organization.
�"�� �!�%�� �"� !� �""� !�""�
Industrial relations improve morale. �"�� ����((� � ���(� �""� !�""�
Industrial relations encourage workers participation in decision making.
�"�� �!��(� �(�("�� �""� !�""�
Industrial relations facilitate positive change in the organization.
�"�� �(! "� ��"!��� �""� !�""�
Industrial relations bring better understanding and cooperation between employers and workers.
�"�� ��!�!� �(" ��� �""� !�""�
Source: Microsoft SPSS
Friedman Test Table 4.39: Ranks
Mean Rank Industrial relations contribute to economic and development of the organization.
���!�
Industrial relations improve morale. �����
Industrial relations encourage workers participation in decision making. ��!��
Industrial relations facilitate positive change in the organization. �����
Industrial relations bring better understanding and cooperation between employers and workers.
���(�
Source: Microsoft SPSS.
Decision Rule:
The decision rule that governs the acceptance or rejection of the null hypothesis is that
if the calculated Chi-square value is greater than the tabulated Chi-square value, or if
the sig. value is lesser than the critical value at which the test was carried, the null
hypothesis should be rejected; otherwise the null should be accepted.
With a Friedman’s Chi-square (X2) calculated value of 629.186, which is greater than
the tabulated Chi-square value (X2) (at df = 4) of 9.488, the null hypothesis should be
rejected. This result is also strengthened by the asymptotic significance value of 0.000
which is lesser than the critical value of 0.05 at which the test was carried out. Hence,
there is a smooth industrial relations system between the management and
workers in Federal Teaching Hospitals in the South East Nigeria.
HYPOTHESIS TWO
Ho: There are no standard and positive rules guiding industrial relations in Federal
Teaching Hospitals in the South East Nigeria.
Table 4.40: Test Statistics (a)
� �"��
* ��#�))+'�
, ��
�! ��
- .����/���� ��(� %��
& �� ��
'01 2������� �"""�
A Friedman Test
H1: There are standard and positive rules guiding industrial relations in Federal
Teaching Hospitals in the South East Nigeria.
Questions 11- 15 were designed and administered to validate or disprove the above
hypothesis.
Test
Our aim is to ascertain the nature of rules guiding industrial relations in Federal
Teaching Hospitals in the South East Nigeria. Based on the analysis outcome of the
five questionnaire administered for testing hypothesis two, Friedman’s Chi-square
(X2) test statistics was employed using the area of the computed special science
(SPSS) as related to each question two and hypothesis two. The result below emerged.
NPar Tests Table 4.41: Descriptive Statistics
N Mean
Std. Deviation Minimum
Maximum
There are laid down rules, regulations and procedures in the execution of work between management and workers
306 1.3889 .83905 1.00 5.00
Some of the rules and regulations are offshoot of collective bargaining process between management and workers
306 1.3660 .95986 1.00 5.00
Management and unions of workers adhere to the procedural rules in resolving conflicts and conditions of work
306 1.3464 .88943 1.00 5.00
Rules and regulations with respect to industrial relations are meant to promote unity between workers and management
306 1.2843 .71578 1.00 5.00
Labour rules and regulations ensure orderliness and stability
306 1.5163 .91332 1.00 5.00
Source: Microsoft SPSS.
Friedman Test Table 4.42: Ranks
Mean Rank
There are laid down rules, regulations and procedures in the execution of work between management and workers
3.03
Some of the rules and regulations are offshoot of collective bargaining process between management and workers
2.94
Management and unions of workers adhere to the procedural rules in resolving conflicts and conditions of work
2.91
Rules and regulations with respect to industrial relations are meant to promote unity between workers and management
2.81
Labour rules and regulations ensure orderliness and stability 3.32
Source: Microsoft SPSS Table 4.43: Test Statistics
N 306
Kendall's Wa .101
Chi-Square 123.610
Df 4
Asymp. Sig. .000
A Friedman Test Source: Microsoft SPSS Decision Rule:
The decision rule that governs the acceptance or rejection of the null hypothesis is that
if the calculated Chi-square value is greater than the tabulated Chi-square value, or if
the sig. value is lesser than the critical value at which the test was carried, the null
hypothesis should be rejected; otherwise the null should be accepted.
With a Friedman’s Chi-square (X2) calculated value of 123.610, which is greater than
the tabulated Chi-square value (X2) (at df = 4) of 9.488, the null hypothesis should be
rejected. This result is also strengthened by the asymptotic significance value of 0.000
which is lesser than the critical value of 0.05 at which the test was carried out. Hence,
there are standard and positive rules guiding industrial relations in Federal
Teaching Hospitals in the South East Nigeria.
HYPOTHESIS THREE:
Ho: Industrial relations do not promote harmony.
H1: Industrial relations promote harmony
Questions 16- 20 were designed and administered to validate or disprove the above
hypothesis.
The test
Our aim is to ascertain whether positive industrial relations promote harmony in
Federal Teaching Hospitals in the South East Nigeria. Based on five questions in the
questionnaire administered for testing hypothesis three, Z-test statistics analysis was
employed using the relevant area of the computer special package for social science
(SPSS) as related to research question three and hypothesis three. The result below
emerged.
Z Tests Table 4.44: One-Sample Kolmogorov-Smirnov Test
Can industrial relations promote harmony
N 1530
Mean 1.4935 Normal Parametersa,,b Std. Deviation .99061
Absolute .410
Positive .410
Most Extreme Differences Negative -.309
Kolmogorov-Smirnov Z
16.028
Asymp. Sig. (2-tailed)
.000
a. Test distribution is Normal.
b. Calculated from data. Source: Microsoft SPSS
With Z-test calculated value of 16.028, which is greater than the tabulated Z-critical
value (95% level of sig.) of 1.96, the null hypothesis should be rejected. This result is
also strengthened by the asymptotic value of 0.000 which is lesser than the critical
value of 0.05 at which the test was carried out. Hence, Industrial relations promote
harmony in Federal Teaching Hospitals in the South East Nigeria.
HYPOTHESIS FOUR:
Ho: Industrial disputes and strikes are not the major challenges of managing industrial
relations in Federal Teaching Hospitals in the South East Nigeria.
H1: Industrial disputes and strikes are the major challenges of managing industrial
relations in Federal Teaching Hospitals in the South East Nigeria.
Questions 21- 25 were designed and administered to validate or disprove the above
hypothesis.
The test
The essence of the question was to identify the major challenges of managing
industrial relations in Federal Teaching Hospitals in the South East Nigeria. Based on
five questions in the questionnaire administered for testing hypothesis three, Z-test
statistics analysis was employed using the relevant area of the computer special
package for social science (SPSS) as related to research question four and hypothesis
four. The result below emerged.
Z Tests
Table 4.45: One-Sample Kolmogorov-Smirnov Test
What are the major challenges for managing industrial relations in federal teaching hospitals in the south east
Nigeria?
N 1530
Mean 2.2111 Normal Parametersa,,b Std. Deviation 1.56080
Absolute .305
Positive .305
Most Extreme Differences
Negative -.219
Kolmogorov-Smirnov Z
11.916
Asymp. Sig. (2-tailed)
.000
a. Test distribution is Normal.
b. Calculated from data. Source: Microsoft SPSS
With Z-test calculated value of 11.916, which is greater than the tabulated Z-critical
value ( 95% level of sig.) of 1.96, the null hypothesis should be rejected. This result is
also strengthened by the asymptotic value of 0.000 which is lesser than the critical
value of 0.05 at which the test was carried out. Hence, Industrial disputes and
Strikes are the major challenges of managing industrial relations in Federal
Teaching Hospitals in the South East Nigeria.
4.4 DISCUSSION OF RESULTS
The study evaluated through the use of questionnaire with questions tailored
towards managing industrial relations in the federal Teaching Hospitals in the
South East Nigeria. All the four hypotheses were subjected to statistical test and these
tools were employed: Friedman’s chi-square statistics and Z-test. Computer aided
Microsoft special package for social science (SPSS) was used to aid analysis to
ensure accuracy and eliminate mistake arising from manual computation.
Hypothesis one was tested with Friedman’s chi-square to examine the nature of
industrial relations system in Federal Teaching Hospitals in the South East Nigeria. It
was discovered that all the variables listed examine the nature of industrial relations
system. Hence, there is a smooth relationship between the management and
workers as well as regular interaction between unions and management based on a
computed chi-square of 629.20 against tabulated chi-square value of 9.49. This result
is in line with what Quinn 1994 postulated in the literature review. He pointed out that
industrial relations system is a process by which human beings and organizations
interact at the workplace and, more broadly, in society as a whole to establish the
terms and conditions of employment. Dunlop 1950 also pointed out that industrial
relations system is a subsystem of the wider society that existed to resolve economic
conflict.
Hypothesis two was tested using Friedman’s chi-square test to ascertain the nature of
rules guiding industrial relations in Federal Teaching Hospitals. With a computed chi-
square of 123.61 against tabulated chi-square of 9.49, the null hypothesis was rejected
concluding that there are standard and positive rules guiding industrial relations.
Following this result, Simon 2008 was of the opinion that labour law is the body of
laws administrative rulings and precedents which address the legal rights of, and
restriction on, working people and their organizations. As such, it mediates many
aspects of the relationship between trade unions, employers and employees. Ogunniyi
2004 also pointed out that labour law is that branch of the country’s law which
regulates industrial relations. In essence labour laws are meant to guarantee peace and
harmony in the industry so as to increase productivity and profits.
Hypothesis three was tested using Z-test to ascertain whether contractual rights and
duties to parties in industrial relations promote harmony in the Federal Teaching
Hospitals; it was discover that all the variables listed actually ascertain that industrial
relations promote harmony in the Federal Teaching Hospitals. Statistically results
showed that Z-calculated is 16.03 against Z-critical of 1.96 indicating that industrial
relations promote harmony. This result agrees with Aturu 2005. He stated that
contract of employment is essentially a bilateral agreement between an employer and
an employee, whereby the employee offers his or her industrial potential to the
employer and in exchange therefore, the employer remunerates him/her industry. He
stated that contract of employment is expected to set out the conditions of service in
terms of the issues relating to job description, remuneration working hours per day,
annual leave, and sick leave.
Lastly, Hypothesis four was tested using Z-test to identify the major challenges of
managing industrial relations in Federal Teaching Hospitals. With a computed Z-
calculated of 11.92 against Z-critical of 1.96, the null hypothesis was rejected and it
was concluded that industrial disputes and strikes are the major challenges of
managing industrial relations in Federal Teaching Hospitals in the South East Nigeria.
In line with this result, Adeogun 1987 stresses that strikes and industrial disputes are
the ultimate weapon of power that may be used by industrial against employers.
Akubuiro 2003 also pointed out that strike is regarded as the partial or complete,
concerted refusal to work, or the retardation or obstruction of work, by persons who
are or have been employed by the same employer or resolving a dispute in respect of
any matter of mutual interest between employer and employee.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1 SUMMARY OF FINDINGS
The result based on the descriptive statistics revealed the following:
1. There is a smooth industrial relations system between management and
workers in Federal Teaching Hospitals in the South East Nigeria. Test of
hypothesis one confirmed this; 629.20 > 9.49.
2. There are standard and positive rules guiding industrial relations in Federal
Teaching Hospitals in the South East Nigeria. Test of hypothesis two
confirmed this; 123.61 > 9.49.
3. Industrial relations promote harmony in Federal Teaching Hospitals in the
South East Nigeria. Test of hypothesis three confirmed this; 16.03 > 1.96.
4. Industrial disputes and strikes are the major challenges of managing industrial
relations in Federal Teaching Hospitals in the South East Nigeria. Test of
hypothesis four confirmed this; 11.92 >1.96.
5.2 CONCLUSIONS
The study concludes that maintenance of harmonious industrial relations is vital and
important for growth and development of the economy. Managing industrial
relations teaches both employers and employees how to get on together in their
workplace and also ensure their compliance with the existing industrial laws.
Government intervenes in industrial relations to ensure fair deal for the workers
whose interest can be abandoned by the employers in their inordinate quest to
maximize profit in their operations. Above all, government serves as an arbiter in
industrial disputes by using its various agencies to mediate in such cases.
5.3 RECOMMENDATIONS
These recommendations were put forward based on the finding of the study.
There should be adequate salaries, allowances and incentives for workers in order to
boost workers morale and enhance better industrial harmony.
Management should create a good working environment that can motivate employee
to be committed for their organizations.
Management should involve their employees in decision making concerning
industrial related matters that may result to conflict.
5.4 CONTRIBUTIONS TO KNOWLEDGE
Industrial relations is a process of defining power and authority relations among
management, labour organizations and government agents. It is for controlling and
channeling workers protest and for establishing job values, procedurals and
substantive or rule of job values. Industrial relations system is conceived as mainly
rule-making arrangement and processes for job determination.
Fig 5.1: Models of Industrial Relations System.
Organizations: Is an arrangement of human and physical resources based upon the
need to control and integrate the activities of individuals and groups. It is a process
Organizations
Employees Trade Union Government Public opinion
Enhanced Productivity Industrial peace Improve worker s̀ morale Organizational growth
Methods/machinery
Collective bargaining Conciliation Mediation Arbitration
Subject of Negotiation
Wages, working conditions Trade union rights Employment rights
Process of rules
Regulate industrial relations Ensure peace and harmony Execution of work
Low productivity Lack of welfare packages Poor working environment Job security
Process of disputes Industrial dispute
Source: The researcher
whereby the actors in industrial relations interact with each other to deliberate on the
employment relationship of the organization.
Actors: All industrial relations have similar actors namely employers, trade unions
and the government, with public opinion influencing their interaction. Organization
established to achieve predetermined goals and objectives; it is the actors that will
have to devise appropriate strategies with which the organizations will successfully
utilize their available resources into goods and services. More so, the parties have to
establish appropriate contractual relationship between one another so that the
objective of the organizations will be met.
Subject of Negotiation: All industrial relations involve rule making on such issues
as wages, working conditions, trade unions right, training procedures and other related
matters. This phase involves composition of a negotiation team. The negotiation team
consists of representative of both the parties with adequate knowledge and skills for
negotiation. In subject of negotiation both parties’ representatives and their union
examine their own situation in order to develop the issues that they believe will be
most important to them.
Process of Rules: For the actors of industrial relations to interact harmoniously in
their place of work, there must be rules that will guide their activities. These rules are
meant to regulate industrial relations, ensure peace and execution of work.
Government should make law for the compulsory recognition of a representative
union in each industrial unit. This will intervene to settle disputes if the management
and employees are unable to settle their dispute.
Process of Disputes: Dispute arise when there are differences between the actors in
industrial relations over low productivity, lack of welfare packages, poor working
environment and job security. When an industrial dispute occurs, both the parties try
to pressurize each other. The management may resort to lockouts while the workers
may resort to strikes, picketing or gheroaos. These differences affect groups of
workers and employers engaged in an industry.
Methods/Machinery: When there is unresolved disagreement between the union and
the management, Government which is often referred to as the third party in industrial
relations has to step in by using its different intervention strategies like collective
bargaining, Arbitration, conciliation and mediation for the protection of the economic
interest of the country and bring peace within organisations.
Ream of Peace: The need of an industrial worker is security of job, wages, rights and
other basic amenities. An environment which gives workers a job satisfaction,
assures them a bright future and which satisfies their basic needs in life will return
experience increase in productivity, peace, job satisfaction and organizational growth.
In conclusion, the industrial relations model gives great significance to external on
environmental forces. In other words, it was discovered that management, labour, and
the government possess a shared ideology that defines their roles within the
relationship and provides stability to the system.
5.5 SUGGESTED AREAS FOR FUTURE RESEARCH
1. The study was carried out in the South Eastern Nigeria. The researcher suggests
therefore that similar works be carried out in other parts of the country as well.
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APPENDIX 1
QUESTIONNAIRE
School of postgraduate studies, Department of Management, Faculty of Business Administration University of Nigeria Enugu Campus.
…………………………………….
…………………………………..
………………………………….
Dear Respondent,
Please the researcher is a student of the above institution. I am conducting a research on
Managing Industrial Relations in Teaching Hospitals”. A case study of selected Federal
Teaching Hospitals in South East Nigeria and your hospitals were among those
selected.
I therefore appeal to you to read and complete the attached questionnaire. Your
responses will be treated confidentially and be used for research purpose, which is
purely academic. I therefore, solicit for your sincerely and honesty in responding to the
questions.
Thanks, for your anticipated cooperation.
Yours Sincerely,
Ayogu Deborah Uche.
Please tick ( √) appropriately which ever is chosen.
SECTION A: PERSONAL DATA
(1) Sex
(a) Male [ ] (b) Female [ ]
(2) Age group:
(a) 20 –30 years [ ] (b) 30 - 40 years [ ] (c) 40 years and above [ ]
(3) Marital Status: ( a) Married [ ] ( b) Single [ ]
(4) Academic qualification (a) OND [ ] (b) HND [ ]
(c) B.Sc [ ] (d) M.Sc/MBA [ ] ( e) Professional certificate
SECTION B:
NOTE: The options to select are in the following scale. Please indicate your view by
ticking the number which most closely matches your opinion in the table below.
(a) Strongly Agree (SA)
(b) Agree (A)
(c) Undecided (U)
(d) Disagree (D)
(e) Strongly Disagree (SD)
QUESTIONNAIRE
A What is the nature of industrial relations system? SA A U D SD
5 Do you agree that industrial relations contribute to economic
and development of the organization.
6 Do you agree that industrial relations improve morale.
7 Industrial relations encourage workers participation in
decision making.
8 Do you agree that industrial relations facilitate positive change
In the organization.
9 Do you agree that industrial relations bring better understanding
and cooperation between employers and workers.
B What is the nature of rules guiding industrial relations?
10 There are laid down rules, regulations and procedures in the
Execution of work between management and workers.
11 Some of the rules and regulations are off-shot of collective
Bargaining process between management and staff.
12 Management and unions of workers adhere to the
procedural rules in resolving conflicts and conditions of
Work.
13 Rules and regulations with respect to industrial relations are
Meant to promote unity between workers and management.
14 Labour rules and regulations ensure orderliness and stability.
C Can Industrial relations promote harmony
15 Effective collective bargaining brings harmonious relation-
Ship between employees and the employers.
16 Positive outcome from industrial relations promote
harmony.
17 Harmonious industrial relations provide satisfactory working conditions and payment of fair wage.
18 Do you agree that harmonious industrial relations lead to
increased efficiency and productivity.
19 Do you agree that industrial relations promote harmony.
D What are the major challenges of managing
industrial relations?
20 Regular threat of strikes by workers is a challenge.
21 The frequency of industrial disputes between management
and Workers is a challenge.
22 Non and improper implementation of collective agreement
reached.
23 Lack of strong and healthy trade unionism.
24 Inability to reach consensus.
APPENDIX (11)
INTERVIEW GUIDE
1. How would you rate the relationship between employers and employees in your
organization?
2. What are the duties of employers and employees in your organization?
3. Is there any rule/law guiding industrial relationship in your organization?
4. Does this rule regulate industrial relationship in your organization?
5. Can you mention some of the negotiation teams in your organization?
6. What are the roles of this negotiation teams in your organization?
7. Has your organization been involved in industrial dispute? 8. What caused industrial dispute you had in your organization? 9. How would the problem of industrial dispute be resolved?
