THE IMPACT OF CORDIAL INDUSTRIAL RELATIONS ON THE GROWTH OF AN ORGANIZATIONS

CHAPTER ONE

GENERAL INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Industrial relations has become one of the most delicate and complex problems of modern industrial society. Industrial progress is impossible without cooperation of labour and harmonious relationship. Therefore, it is in the interest of all to create and maintain good relations between employees (labour) and employers (management). Trade unions are important institutions in the industrial relations scene. They play a major role in representing employee’s interest and in regulation labour market relations and management relations with employers Pimolu and Farnharm (2005:105). Describing the difficulties often associating with an attempt to define industrial relations, Yesufu (2002) says the “effort” is generally compounded by a wooliness of thought and usage that is so often characteristics of the social sciences”. In spite of this difficulty, Yesufu goes on to define industrial relations as “the whole weight of human interactions at work which is predicated upon, and arises out of the employment contract”. He distinguishes industrial relations from labour relations which he say refers to dealings between management and union and from  personnel relations which refers to direct dealing between management and individual employees in which the union does not participate. He thus concludes that industrial relations is equivalent to labour relations. In his contribution Armstrong (2004) says that industrial relations is concerned with the systems rules and procedures used by unions and employers to determine the reward for effort and other conditions of employment to protect the interests of the employee and their employers include  the processes of collective bargaining as well as formal procedural agreement. It is also concern with the roles of the parties involved in the system-management, union officials, shop stewards and employees and the relationship between them. Richard Hyman (2005) argues that industrial relations is the study of process of control over work relation and among these processes those involving collective worker organization and action are of particular concern. From the above divergent views, we can deduce that industrial relations are a process through which management or organizations deal with one or more union of employees. That process includes both the negotiation and subsequent administration of collective bargaining agreements and labour contract.

1.2     STATEMENT OF THE PROBLEM

Against the background of industrial relations serving as the muscle in the growth and development of an organization research have shown that many organizations have fail due to lack of cordial industrial relations which has become one of the most delicate and complex problems of modern industrial society, that is why the research has decided to choose this topic “the impact of cordial industrial relations on the growth of an organization”. Thus, the researcher has been able to come out with certain problems facing the organization which without cordial industrial relations, cooperation, good communication between the employers and the employees, the organization progress is impossible and thereby will be no harmonious relationship in the work place and will later result in industrial conflict between labour force and management which has becomes the key issues of discussions in the contemporary business world. A brief read through the daily newspaper inevitably presents the reader with an abundance articles relating to conflict in workplace. Its needs perhaps to be emphasized that the central issues of industrial relations is how to engender industrial peace and there by attain and maintain maximum or optimum levels of product efficiency and how to share economic returns. It needs to be noted here that industrial peace is not synonymous with the peace of the graveyard nor is it a complete absence of strike or lockout- Damachi (2006). This later situation is not only impossible to attain but is also not desirable. This is because by the very nature of the interactions at the work place, there is no ruling out of occasional functions, indeed it is not the existence of conflict that is the problem but the way it is handled. For conflict, if it is properly managed, can bring about a fresher and newer vista to handling industrial relations issues. In terms of specific contents therefore, industrial relations is concern with labour problems in their entire ramification such as employment security, condition of work (hours of works, shifts, holidays, etc) remuneration (level, frequency, method of wage payment and wage fixing); labour and employer grievances and disputes, levels of production and efficiency, safety, health and welfare at work, social security (sickness) and old age benefits, development (training, upgrading and promotions). As a matter of fact, the researcher to the best of his knowledge found that through qualitative education of masses, seminars and other vital means that many organizations have adopted cordial industrial relations. But there are no permanent solutions to the problems and industrial relations as the demand which management make on labour and vice versa are constantly changing, but it is the interest of all to create and maintain good working relations between labour and management.

1.3     PURPOSE OF THE STUDY

The main purpose the researcher decided to pick this topic is to draw a synergy between cordial industrial relations and the growth of an organization of Champion breweries Plc.    In other words, the study is to bring to light how a good communication and cordial industrial relations provide harmonious and conducive environment, engender peace in an organization and contribute effectively and efficiently towards the growth of an organization in the company under review. The objectives of the study include the following: To assess the positive impacts created by industrial relation in developing the growth of an organization. To examine the obstacles against effective performance of cordial industrial relations in organization. To recommend solution to identified problems of industrial relations on the growth of an organization.

1.4     SIGNIFICANCE OF THE STUDY

The following are the significance of the study; This study will be of great benefit to any organization that will embark on industrial relations in that it will educate them on what business is all about and how to operate and manage effectively in order to achieve its desired goals. This research work will surely serve as reference materials for future researchers of related topic. The work will also serve as a guide to top management in realizing the positive impact created through industrial relations and to see the need to encourage the union in order to achieve the organizational growth. It will help to process grievances that may arise in connection with the employee’s conditions of employment.

1.5     RESEARCH QUESTIONS

The following were the research questions:

What is the main function of industrial relations in Champion Brewery?
Does industrial relations improve the growth of Champion Brewery?
What are the basic problems militating against their effective performance in Champion Brewery?
What are the positive impacts created by industrial relations towards the growth of Champion Brewery?
To what extent has industrial relations being adopted for the growth of Champion Brewery?
To what extent has industrial relations assisted in the growth of Champion Brewery?
Are the possible ways to enhance the success of industrial relations in Champion Brewery?

1.6     RESEARCH HYPOTHESIS

Under is the research hypothesis that the researcher is testing for null hypothesis denoted by Ho) which is opposing the alternative hypothesis (Hi).

Ho: There is no impact of cordial industrial relations on the growth of Champion Brewery.

Hi:        There is an impact of cordial industrial relations on the growth of Champion Brewery.

Ho: Cordial industrial relations contribute effectively to the growth of Champion Brewery.

Hi:        Cordial Industrial Relations does not contribute effectively to the growth of Champion Brewery.

1.7     SCOPE OF THE STUDY

The researcher is limited to Champion Breweries Plc, Uyo. Since the research study was design to determine the relevance of cordial industrial relations to the growth and eventual expansion of any business organization in our society.

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