COLLECTIVE BARGAINING AND ORGANIZATIONAL GROWTH (A STUDY OF 9MOBILE PORT HARCOURT)

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Abstract

The study has examined collective bargaining and organizational growth of 9mobile Port Harcourt. The case study research design was adopted. The population of the study was one hundred and fifty (150) senior and junior staff of 9Mobile Port Harcourt. Self-designed questionnaire on collective bargaining and organizational growth was used and administered for the collection of data from the respondents. The instrument used in the data collected is interview and questionnaire method which are seen as being more effective and stable for a research of this nature. The researcher adopted simple random sampling technique. The Taro yemen’ formula was used to determine the sample size of 109. The method used to analyze the data was simple descriptive method stated in tables and expressed in percentages. To test the validity of already stated hypothesis, the chi-square statistical test was employed this test was used due to the nature of the questionnaire designed for the hypothesis testing with the SPSS version 22. It was also revealed that workers right, employer’s right and arbitration influences organizational growth. Based on the findings of the study, it was recommended that collective bargaining should be given prominence in the determination of employment conditions in private sector, continuous and adequate awareness need to be created among the stakeholders in industrial relations trade unions, management and government of their role in developing and sustaining a rancor free work environment and trade unions should develop appropriate strategies/measures that will help enlighten members on the need to be seriously committed to the furtherance of organizational goals.

Table of Content

Title Page   i

Cover Page ii

Declaration          iii

Certification        iv

Dedication  v

Acknowledgements       vi

Abstract     vii

Table of Content viii

List of Tables      x

List of Figures     xi

CHAPTER 1       1

INTRODUCTION        1

1.1 Background of the Study          1

1.2 Statement of the Problem 4

1.3 Objectives of the Study    5

1.4 Research Questions 5

1.5 Research Hypothesis        5

1.6 Significance of the Study 6

1.7 Scope/Limitation of the Study  6

1.9 Definition of Related Terms      7

SECTION 2        8

LITERATURE REVIEW     8

2.1 CONCEPTUAL FRAMEWORK       8

2.1 Conceptual Framework   8

2.1.1 Collective Bargaining    8

2.1.2 Dimensions of Collective Bargaining        13

2.1.3 Organizational Growth 13

2.1.4 Measures of Organizational Growth        15

2.2 Theoretical Framework   20

2.2.1 The Group Theory        20

2.3 Empirical Framework      21

CHAPTER 3       25

RESEARCH METHODOLOGY   25

3.1 Research Design      25

3.2 Population of the Study   26

3.3 Questionnaire Design       26

3.4 Sources and Methods of Data Collection     26

3.5 Sample and Sampling Techniques     26

3.6 Data Analytical Techniques      27

3.7 Reliability and Validity    28

CHAPTER 4       30

DATA PRESENTATION AND ANALYSIS    30

4.1 Data Collection and Presentation       30

4.2 Data Analysis          31

4.3 Testing of Hypothesis       34

4.4 Discussion of Findings     39

CHAPTER 5       41

SUMMARY, CONCLUSION AND RECOMMENDATIONS     41

5.1 Summary      41

5.2 Conclusion    41

5.3 Recommendations  41

REFERENCES   43

APPENDIX         46

List of Tables

Table 4.2: Showing the age of respondents       31

Table 4.3: Showing the Gender/Sex of Respondents  31

Table 4.4: Showing the Educational Qualification of the Respondents 32

Table 4.5: Showing the Marital Status of Respondents       32

Table 4.6: If workers right associate with organizational growth in 9mobile Port Harcourt, Nigeria.      33

Table 4.7: If employer’s right associate with organizational growth in 9mobile Port Harcourt, Nigeria         33

Table 4.8: If arbitration associates with organizational growth in 9mobile Port Harcourt, Nigeria.      34

Table 4.1: Questionnaire Administration and Retrieval      30

List of Figures

Figure 1: Conceptual Framework on Collective Bargaining and Organizational Growth 8

CHAPTER 1

INTRODUCTION

1.1 Background of the Study

Growth involves goal attainment. It is the successful transfer of input to output at the lowest possible cost. Growth implies both efficiency and effectiveness. Organizational growth is used as one indicator of effectiveness for small and large businesses and is a fundamental concern of many practicing managers (Crosby, 1999). Ultimately, success and growth will be measures of how well a firm does in relation to the goals it has set for itself. One construct that can enhance organizational growth is collective bargaining. Collective bargaining allows both workers and managers to discuss specific terms that can, depending on national law, determine the rules that govern their relationship, determine wages, deal with other matters of mutual interest such as hiring practices, layoffs, promotions, job functions, working conditions and hours, (Herman, 2003) work safety, workers discipline and termination, and benefit programme. It is the process whereby workers organize collectively and bargaining with employers regarding the work place. In a broad sense, it is the coming together of workers to negotiate their employment (Namit, 2007).

Collective bargaining involves workers organizing together usually in unions to meet, discuss and negotiate upon the work conditions with their employers. The term “Collective Bargaining” was first used in 1891 by economic theorist Beatrice webb. However, collective negotiations and agreement had existed since the rise of trade unions during the nineteenth century. Collective bargaining is a formal process that involves negotiation, consultation and the exchange of information between employees and workers, the end goal being an agreement that is mutually acceptable to all parties. It is traditionally a bi-partite process (i.e. a process involving two parties), although in many countries the state plays an important role in promoting collective bargaining by establishing relevant national legislation (Namit, 2007). The agreement reached through collective bargaining are legally binding and apply to all workers whether or not they actively participate in the bargaining process (Liontos, 2007). For example in the United States, the National Labour Relations Act (1935) covers most collective agreement in the private sector. This act makes it illegal for employers to discriminate, spy on, harass, or terminate the employment of workers because of their union membership or to   retaliate against them for engaging or organizing campaigns or other “concerted activities” to form “Company Union”, or to refuse to engage in collective bargaining with the union that represent their employees. Unions are also exempt from antitrust law in the hope that members may collectively fix a higher price for their labour.

In the words of De Gennaro, William, and Kay Mich elfeld. (2006), for effective collective bargaining to take place, regular and timely meetings must be hold between the bargaining teams. Sufficient time and human resources must also be allocated to the consultation process and assembling data in preparation for collective bargaining negotiations (Buidens and Wayne, 2001). At a work place where a majority of workers have voted for union representative, a committee of employees and union representative negotiate a contract with the management regarding wages, hours, benefits and other terms and conditions of employment, such as protection from termination of employment without just cause. Individual negotiation is prohibited. Once the workers committee and management have agreed on a contract, it is then put to a vote of all workers at the work place. If approved, the contract is usually in force for a fixed term of years, and when that term is up, it is then renegotiated between employees and management. Sometimes there are dispute over the union contract, this particularly occurs in cases of workers fired without just cause in a union workplace. These then go to arbitration, which is similar to an informal court hearing; a neutral arbitrator then rules whether the termination or other contract breach is extent, and if it is, orders that it be corrected.

Collective bargaining allows workers and managers to discuss issues and settle disputes through consensus and dialogue rather than through confrontation or labour dispute (Herman, 2003). Both parties know that there is an agreed method for handling disagreements. In addition, collective bargaining allows both employers and workers, or their representatives, to participate in the decision making process on a variety of topics such as benefits, leave, work hours and overtime as well as grievance procedures, discipline and dismissals.

Collective bargaining was originated by Webb and Webb in (1894) to describe the process of agreeing terms and conditions of employment through representatives of employers (and possibly their associations) and representatives of employees (and probably their unions) (According to Rose, 2008). Rose (2008) posits that collective bargaining is the process whereby representatives of employers and employees jointly determine and regulate decisions pertaining to both substantive and procedural matters within the employment relationship. The outcome of this process is the collective agreement. From the foregoing therefore, the study is intended to examine the relationship between collective bargaining and organizational growth.

1.2 Statement of the Problem

The need for a conducive work environment, cordial relationship between the three actors in industrial relations (labour, management and the government) and how best to promote and maintain employee job satisfaction and productivity has engaged the attention of the management of both public and private

 organizations. This is because; it is a fact that these variables are very crucial to the survival of every organization. A close look at these variables suggests that Labour management relations are a crucial factor that may determine or influence the other variables. One basic feature of the components of an organization is varying interests. Every stakeholder in an organization has his/her interest which normally may differ from other stakeholder’s interests. The extent to which these interests are harmonized and satisfied determines the extent to which the organizational climate/environment is conducive for team work and maximum production. This is because; it is a fact that these variables are very crucial to the survival of every organization. These interests are often realized through collective bargaining. This study therefore seeks to establish the relationship between collective bargaining and organizational growth.

Problems that led to the study are;

1.       Employees are denied of their right.

2.       Fear of delegating negotiation power to the employees on the side of the employer.

3.       Bias amongst employees and employers.

4.       Poor working environment.

5.       Low payment rate.

Hence, the study seeks to examine the relationship between collective bargaining and organizational growth of 9Mobile in Port Harcourt.

1.3 Objectives of the Study

The main objective of the study is to examine the relationship between collective bargaining and organizational growth in 9mobile Port Harcourt, Nigeria. The specific objectives are as follows:

i.        To investigate the relationship between workers right and organizational growth in 9mobile Port Harcourt, Nigeria.

ii.       To ascertain the relationship between employers right and organizational growth in 9mobile Port Harcourt, Nigeria.

iii.      To determine the relationship between arbitration and organizational growth in 9mobile Port Harcourt, Nigeria.

1.4 Research Questions

i.        To what extent is the relationship between workers right and organizational growth in 9mobile Port Harcourt, Nigeria?

ii.       To what extent is the relationship between employer’s right and organizational growth in 9mobile Port Harcourt, Nigeria?

iii.      To what extent is the relationship between arbitration and organizational growth in 9mobile Port Harcourt, Nigeria?

1.5 Research Hypothesis

Ho1: There is no significant relationship between workers right and organizational growth in 9mobile Port Harcourt, Nigeria.

Ho2: There is no significant relationship between employer’s right and organizational growth in 9mobile Port Harcourt, Nigeria.

Ho3: There is no significant relationship between arbitration and organizational growth in 9mobile Port Harcourt, Nigeria.

1.6 Significance of the Study

The value of any study lies in its usefulness to the society. In view of this fact therefore, this study which focuses on collective bargaining and organizational growth is of most useful to managers in various organization especially the human resources department of 9mobile, in Port Harcourt Rivers State.

Apart from its value to decision makers in organizations, this study is of immeasurable importance to students and lecturers of the School of Management sciences who may like to further their understanding of the role of industrial relations practices in both government owned parastatals and outside firms.

Above all, it is therefore hoped that this study will stimulate further studies in this area.

1.7 Scope/Limitation of the Study

Content Scope: The study examines the relationship between collective bargaining and organizational growth.

Geographical Scope: The study limits to Port Harcourt, metropolis Rivers State with special reference to 9mobile.

Unit of Analysis: The unit of analysis for the study includes both Junior and Senior staff of 9Mobile at the time of the study.

The followings are limitations to the research work.

Finance: Accessing fund for the research work as difficult and this to a great extent limited the quality of research activity.

Time: The time allocated to the research work was not sufficient to give room for further intensive work on the field of study.

Organization Policy: The policies of 9Mobile limited were rigid and the level of information received was not concrete. And then the personnel of the firms were not willing to give information, stating that it was against the organization’s policy.

1.9 Definition of Related Terms

Bargaining: Negotiate the terms and conditions of a transaction.

Collective: Done by people acting as a group.

Collective Bargaining: Negotiation of wages and other conditions of employment by an organized body of employees.

          Organization: An organized group of people with a particular purpose, such as a business or government department.

          Organizational Growth: A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

          Growth: The state or quality of being productive.

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