Nonye's Work

EFFECTS OF LABOUR MANAGEMENT RELATIONS ON WORKERS
PERFORMANCE IN AN ORGANISATION,A CASE STUDY OF

POWER HOLDING COMPANY OF NIGERIA.
BY
ONWU NONYELUM FELICIA
PG/MBA/10/54620
A DISSERTATION SUBMITTED TO THE DEPARTMENT OF

MANAGEMENT, FACULTY OF BUSINESS ADMINISTRATION,
UNIVERSITY OF NIGERIA ENUGU CAMPUS, IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF
MBA IN MANAGEMENT
SUPERVISOR: PROF. UJF EWURUM
APRIL 2012
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CERTIFICATION
I, Onwu Nonyelum Felicia, a postgraduate student in the Department of

Management do hereby certify that the work embodied in this dissertation is
original and has not been submitted in part or full for any other Diploma or
Degree of this or any other University.
---------------------------- ----------------------------
Onwu Nonyelum F. Date
PG/MBA/54620
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APPROVAL
This is certify that this research topic: Effect of labour management relations
on workers performance in an organization, using Power Holding Company of
Nigeria as a case study was approved for Onwu Nonyelum Felicia with
registration number PG/MBA/54620 and is submitted to the department of
management in partial fulfillment of the requirements for the award of MBA in
Management
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DEDICATION
This piece of work is dedicated to our Lord Jesus Christ and our blessed virgin
Mary.
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ACKNOWLEDMENTS
I am grateful to Almighty God for his wisdom an knowledge, My immense

gratitude goes to my supervisor Prof, UJF Ewurum for his guidance all through
this work . Am also indebted to all my lecturers both within and outside my
department: Dr Ezigbo C.A, Dr Agbaeze, Dr Chukwu C.O, Dr Nnadi, Chukwu
B.I, Dr Ugwuoke, Dr Modebe.
I will also like to use this medium to thank my colleagues and friends in the
same department; Charity, Chinyere, Debora, Oluoma.
I also wish to thank my mum, brothers and sisters, Chido, Ndu, Ify, Nneka and
Uzo. My brother In-law and my little niece Chiamaka cannot skip this page.
I owe a lot of gratitude to my friends Nonye, Amaka, Stan, Ikenna, Joseph,

Chika for their prayers and support during the course of this propgramme.
Finally, I wish to thank all who in one way or the other supported me through
this programme
God bless you all.
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ABSTRACT
This study is aimed at analyzing the effect of labour management

relations on workers performance in an organization using power holding
company of Nigerian as the case study. In every organization, activities
revolve around two major groups, the employer and the employee,
therefore co-operation is necessary if the organization must realize its
corporate goals. Taking into account the aim of this study which is to
look into the effect of labour management relations on workers
performance in an organization, you will see that serious and proper
examination of the existing literature on this topic has been assessed. The
review of this topic will be base on the issues in the research question
which are below. Effect of mutual relations between labour and
management, effect of motivation, effective communication, workers
participation in decision making, effect of strike, how leadership style
affects labour management relations . The data collection was form both
primary and secondary sources. Analysis of the data was done using
tables, percentages and statistical distribution. Form the finding in the
research work the researcher recommended that for an effective relation
to be maintained between labour and management, the employees must
be properly motivated, communication gap should be bridged, workers
should participate in decision making, and salaries must be paid as and
when due.
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TABLE OF CONTENT
Title page i
Approval ii
Certification iii
Dedication iv
Acknowledgement v
Abstract vi
Table of contents
List of table x
List of figures xii
CHAPTER ONE:
1.0 Introduction 1
1.1 Background of the study 1
1.2 Organizational background of PHCN 3
1.3 Organizational structure of PHCN 4
1.4 Statement of the problems 5
1.5 Objective of the study 5
1.6 Research questions 6
1.7 Hypothesis formulation 7
1.8 Significance of the study 8
1.9 Scope of the study 8
1.10 Limitation of the study 8
1.11 Definition of terms 9
Reference 10
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CHAPTER TWO
2.0 Review of related literature 11
2.1 An overview of labour management relations 12
2.2 Labour management relations and the management 12
2.3 Labour management relations and the employee 13
2.4 Effect of mutual relations between workers and management
on performance 15
2.5 Motivating labour 16
2.5.1 Special motivational package 18
2.6 Effect of labour participation in decision making 19
2.7 Effective communication 20
2.8 Leadership style 21
2.9 Trade Union 24
2.9.1 Weapons of the Union 24
2.9.2 Weapons of Management 25
2.10 Collective Bargaining 26
2.11 Operative Function of The personnel Department 27
References 30
CHAPTER THREE
3.0 Research Design and Methodology 31
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3.1 Introduction to the Study 31
3.2 Research Design Method 31
3.3 Area of Study 31
3.4 Population of the Study 31
3.5 Sample Size Determination 32
3.6 Instrument for Data Collection 32
3.7 Sources of Data/Method of Data Collection 33
3.8 Validation of the Instrument 33
3.9 Reliability of the Instrument 33
3.10 Method of Data Analysis 34
3.11 Questionnaire Distribution and Retrieval 35
References 36
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Presentation and Analysis of Data 37
4.2 Testing of Hypothesis 51
4.3 Summary of Result 66
CHAPTER FIVE: DISCUSSION, RECOMMENDATION AND

CONCLUSION
5.1 Discussion of Findings 66
5.2 Conclusion 67
5.3 Recommendation 68
5.4 Suggestion for Further Studies 69
Bibliography 70
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LIST OF TABLES
4.1.1 Table 1: Distribution and return of questionnaires. 37

4.1.2 Table 2: Sex of respondents 38
4.1.3 Table 3: Marital status of respondents 38
4.1.4 Table 4: Age of the respondents: 39
4.1.5 Table 5: Department of respondents 39
4.1.6 Table 6: Employment status of the respondents 40
4.1.7 Table 7: Length of service of respondents 40
4.1.8 Table 8: Response to Question Concerning the
Research Understudy 41
4.1.9 Table 9: Do you agree that mutual labour
management relations has any effect
on workers performance 42
4.1.10 Table 10: Is there a need for workers to participate
in decision 42
4.1.11. Table 11: Do you believe that allowing workers to participate
in decision making would give them a
sense of belonging. 43
4.1.12 Table 12: Does motivation make you and others to work
hard. 43
4.1.13 Table 13: What kind of motivational package do you
prefer 44
4.1.14 Table 14: What is the communication gap between
employees and management in your
organization. 45
4.1.15Table 15 Do you think that good communication enhance
smooth labour management relations. 45
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4.1.16 Table 16: Are your salaries paid as and when due 46
4.1.17 Table 17: Have your organization witnesses any strike 46
4.1.18 Table 18: If your answers to question (15) above is yes,
how many times has it occurred 47
4.1.19 Table 19 Do you agree that strike has an effect on
organizational performance: 47
4.1.20 Table 20: Which leadership style does your organization
operate 48
4.1.21 Table 21: Which leadership style will favour labour
management relations 49
4.1.22 Table 22: Do your organization have a personnel
department 49
4.1.23 Table 23: Is your personnel department performing
its duties. 50
4.1.24 Table 24: Do junior staff workers participate in decision
making in your organization 50
4.1. 25. Table 25: Does a cordial relationship exist between
labour and management 51
4.2.1 Table 26: Contingency table for hypothesis I: 52
4.2.2 Table 27: Computation of x2 for hypothesis I: 53
4.2.3 Table 28: Contingency table for hypothesis II: 55
4.2.4 Table 29: Computation of x2 for hypothesis II: 56
4.2.5 Table 30: Contingency table for hypothesis III: 58
4.2.6 Table 31: Computation of x2 for hypothesis III: 59
4.2.7 Table 32: Contingency table for hypothesis IV: 62
4.2.8 Table 33: Computation of x2 for hypothesis IV: 63
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LIST OF FIGURES
Fig 1.3 Organizational structure of PHCN 4
Fig 2.1 Abraham Maslow’s needs Hierarchy 15
Fig 2.2 Continuum of leadership behavior 23
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CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In the work place, we have the workers and management team in the
organization engage in formal relationship, which is purely for operational
purposes. The relationship between the management and workers contractual,
which is that the employer-employee relations.
Every organization has some set objectives which it wants to achieve, and these
objectives cannot be achieved without an effective cordial relationship between
labour and management, these objective: high productivity, large market size
and increased asset base. The success of an organization is not only measured
by the amount of profit the company can make, but also by the degree of
industrial peace and harmony that can be maintained, therefore employers of
labour must pay more attention to the needs of labour, so as to maintain high
performance. Management having been entrusted with the day running and
administration of the organization should regard and treat employees as a vital
and essential asset of the organization; employees on the other hand should try
to appreciate the effort of management in trying to protect the interest of
investors and shareholders.
Labour and Management are faced with many difficult challenges: In an
organization, management set goals and targets which it must meet, so they
employ men and women from different background to help meat these goals
and target. Most often these individuals goals and targets tend to conflict with
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the organization’s goals and sometimes the goals of the individual worker in
the organization conflict with one another, there is therefore bound to be
disagreement, disparities, dis-cordination and conflict which vary from minor
differences of opinions to intensive discord.
The problem of low performance in an organization occurs when there is no
cordial relation between management and its workers; this brings about lack of
understanding thereby preventing management and workers from achieving
their goals, in such a situation there is usually low productivity, no staff morale,
low pay, lack of promotion and no maintenance culture.
The swift-moving of current information, knowledge and skills, continue to
increase the difficulty for management to keep up and advance with new
development in an organization. It is tragic to note that employers are not
aware of the effect of lack of communication to productivity, if information’s
are communicated effectively to the employees, it will help them to put their
effort in the right direction and prevent waste, information should flow freely
from the lowest in the organization to the highest, it is important that workers
know at all times what is going on if they are to work happily and confidently.
Workers should be motivated if the best is to be expected from them, money
alone does not motivate a worker, job satisfaction and secured tenure of office
are equally necessary if not more important (E.I.O. Osundele). The problem of
monopolizing decision making by management disrupts peaceful co-existence
of labour management relations. Nel (2002) said that industrial democracy is
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important to workers because it result in an increased share in the control of the
organization, management should see workers participation in decision making
as a way of increasing the commitment and control of workers. As a result of
all these one can easily appreciate the need for a good labour- management
relation, if high productivity must be maintained.
1.2 ORGANIZATIONAL BACKGROUND OF POWER HOLDING

COMPANY OF NIGERIA (PHCN).
Power Holding Company of Nigeria (PHCN) formally called National Electric
Power Authority (NEPA), came into existence by the degree no 24 of 1972
following the amalgamation of the electricity corporation of Nigeria (ECN) and
the Niger Dams Authority (NDA). Its name changed form NEPA to PHCN ON
May 5th 2005, its consumer population is about 2.5 million and staff strength as
at January 2009 was 37,000 comprising of senior staff, management staff and
junior staff.
It has the patent right to provide electricity to Nigeria, so producing electricity
to its customers is the organizations major objectives with 37 years of its
operations major objectives, within 37 years of its operation, it has constructed
10 power stations with only 6 of them operating partially, the power stations
are grouped into two, the thermal power stations and the hydrso power stations.
The thermal power stations are located at Afam, Delta and Ijora; the hydro
power stations are located at Kainji, Shiroro and Jebba. In Enugu zonal
headquarters there have 14 field units namely: Onitsha, Ogidi, Awka,
Ekwulobia, Abakaliki, Ogui, Abakpa, Aba, Ariari, Orlu, Mbaise, Nnewi,
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Umuahia and Owerri, the presence of electricity was first felt in Nigeria as
far back as 1886.
1.3 ORGANIZATIONAL STRUCTURE OF PHCN

According to the decree setting it up, the affairs of the company are conducted
by a 9- man board of directors, with the chairman as the head, all of them been
appointed by the minister under the Ogui business unit of PHCN, its
organizational structure is represented by the diagram below;
GENERAL MANAGER/CEO
Head of Technical Head of Head Finance Head Finance

Service Administrative Service
Principal Manager Principal Manager Principal Manager Principal Manager

Distribution Human Resources Finance Audit
Senior Manager Senior Manager Senior Manager Senior Manager

Distribution Human resources Finance Audit
Manager Manager Manager Manager
Officer 1 Officer 1 Officer 1 Officer 1
Officer 11-V Officer 1I-V Officer 1I-V Officer 1I-V
Staff 1-V Staff 1-V Staff 1-V Staff 1-V
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1.4 STATEMENT OF THE PROBLEM
The problem of the study is to determine the effect of labour management
relations on workers performance in Power Holding Company of Nigeria
(PHCN).
For there to be an efficient and effective performance in an organization, there
ahs to be a mutual satisfaction and dedication of the group that constitute the
human side of the organization, unfortunately most organizations fail to
achieve this mutual satisfaction and peaceful co-existence that they end up
producing below expectation.
When the organizational goals and individual goals are not compatible, it
brings about conflict and disharmony which can result to strike. Strike brings
frustration to management and causes unnecessary waste that will interfere
seriously with the total organizations accomplishment.
Organizations where there is poor labour management relations ends up
producing below expectation, the cause of this as earlier mentioned are lack of
communication between management and labour, bad leadership from
management, poor motivational skills and lack of workers participation in
decision making, since the major objective of PHCN is to generate, transmit,
distribute, and market electricity to all its customers with least interruption, it
has tried to an extent to maintain a fair labour management relation, yet the
performance in this organization is still low because fair labour management
relation is not enough. For consumers to get electricity with least interruption,
the workers must perform well, and for workers to perform well there must be
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an adequate mutual relationship between them and management, so PHCN is
experiencing some problems of poor labour management relations.
1.5 OBJECTIVES OF THE STUDY

The major objectives of this study include:
1. To ascertain the effect of a mutual relationship between management
and employees.
2. To highlight the effect of motivation on workers performance.
3. To determine the importance of labour management communication.
4. To examine the need for workers participation in decision making.
5. To ascertain the effect of strike on organizational performance.
6. To examine whether or not leadership style effect labour management
relations.
1.6 RESEARCH QUESTIONS

This research study will find answers to the following research questions at the
end of the investigation.
1. Does a mutual labour management relation have any effect on workers
performance?
2. What is the effect of motivation on workers performance?
3. Does good communication enhance smooth labour management
relations
4. What is the importance of employee participation in management
decision making?
5. What are the effects of strike on organizational performance?
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6. How does the leadership style of an organization affect its labour
management relations?
1.7 HYPOTHESES FORMULATION

The following hypotheses have been formulated:
1. H0: Mutual labour management relations does not have any effect on
workers performance.
H1: Mutual labour management relations have an effect on workers
performance.
2. H0: There is no need for workers participation in decision making.
H1: There is need for workers participation in decision making.
3. H0: Strike ahs no effect on organizational performance.
H1: Strike has an effect on organization performance.
4. H0: Motivation does not encourage workers to work hard.
H1: Motivation does not encourage workers to work hard.
5. H0: Good communication does not enhance smooth labour
management relations.
H1: Good communication enhances smooth labour management
relations.
6. H0: The leadership style of an organization affects its labour
H1: The leadership style of an organization affects its labour
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1.8 SIGNIFICANCE OF THE STUDY
The benefit of this study is as follows:
a. It will help the labour and management of an organization to know the
areas they are performing well and also loopholes they need to attend to:
b. It will help management to know what it entails to improve performance
in an organization.
c. This study will help management to know the benefit of relating well
with its workers.
d. This study will motivate other researchers to go into further study on the
issue.
e. The information contained in this study will be of immense value to
students, management and the general public.
1.9 SCOPE OF THE STUDY

This study attempts to examine the effects of labour management relations on
workers performance in an organization.
The data for the study will be obtained from power Holding Company of
Nigeria (PHCN), basically its business unit, the Ogui business unit at Okpara
Avenue, Enugu.
1.10 LIMITATION OF THE STUDY

An obvious limitation to this study was financial constraints, this study proved
to be very demanding on the researcher because of the need to source for
materials from PHCN.
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These materials needed where gotten from the mangers and public relations
officer of PHCN, and it was not easy meeting them at the office, talk less of
them having enough time to get you the needed materials, this project was also
time consuming
1.11 DEFINITION OF TERMS

1. Labour: The people who are available to perform work. The collection
of people who work or perform the work of an organization.
2. Management: Is a group of people responsible for running an
organization or directing the organization’s human activities for specific
ends, they take care of the process of planning, organizing, directing and
controlling of human activities.
3. Performance: The way a job or task is done by an individual, a group
or an organization.
4. Productivity: Is the measure of the relationship between the quantity of
results produced and the quantity of resources required for production,
production is the measure of the work efficiency of an individual, work
unit or an entire organization.
5. Organization: Is a group of people brought together for the purpose of
achieving certain objectives.
6. Conflict: A condition that arises when two or more individuals or
group of people perceive their own interest as being challenged by
others and where strong feelings can be aroused.
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REFERENCES
CIB Study text “Nature of Management” BPP publishing Ltd.

Daniel Heirtzell (2006), “Academic Dictionary Management”, India:
Academic Publsihers.
Geralk Cole, (2004), “Management theory and Practice”, London: Book
power /ELST Publishers.
Majoku J.O. (2006), “Power Sector in Nigeria: Past present Future”, PHCN
News, September and December.
Michael Armstrong, (1977), “Human Resources Management Practice”,
Kogan Page Publishers.
Osindele E.L.O. (2007), “What is Good for the Employee”, NEPA Review,
May.
Paul Mali, (2001) “Improving Total Productivity”, New York, Willey- Inter
Science Publication.
Public Relation Department (1992), “A Fact sheet of PHCN at 20,” Enugu:
October.
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CHAPTER TWO
2.0 REVIEW OF RELATED LITERATURE
2.1 AN OVERVIEW OF LABOUR MANAGEMENT RELATION
Labour management can be used as a substitute for the following terms
namely: union-employer relation, worker-employer relation or employee
relation. According to Akpala (1982:29) labour management relations is
concerned with the internal arrangement between employers and trade union in
a bipartite relationship within an industry or across industries or within an
enterprise to regulate their relations affecting employment and its
compensation, according to him labour management relation connotes a
relationship between workers, not as individuals but in their identity as the
employer. Okenwa C. P (2000) in her book concept of industrial relations in
Nigeria defined management labour relation as a relationship between workers
not as an individual but in their collective entity with the employer.
Management must relate with labour if the organization must survive the
absence of this relation will robe the organization of the workers loyalty and
high performance. Herman W. Stekraus, called it human relation and he
defined it as the working together of management and employees in the spirit
of mutual understanding and team work, with the definitions above, we can
now understand that when management and labour are integrated into group,
they will work harmoniously and productively for economic benefit and social
satisfaction of all.
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Labour management relations is part of industrial relations, but industrial
relations is broader, whenever an intervention by government as third party
occurs the relationship becomes more involved and is known as industrial
relations (Akpala 1982). Ukoha (1989: 185) said that industrial relations is the
relationship that exists between workers, employers and the government for the
purpose of determining the conditions under which work is done, therefore we
can state that industrial relations is the regulation of the employers relationship
by the workers or labour union, the employers or management and the
government or its agencies, the propose of which is the establishment of job
rules which specify the rights, duties and responsibilities of each other.
2.2 LABOUR MANAGEMENT RELATIONS AND THE

MANAGEMENT
Most management practitioners have come to recognize that paying attention to
employees in their organization is as important as any attention paid to the
technical side of their plans if not more important . Andre Carnegtie is beloved
to be the first to emphasis the value of the individual worker to an economic
system, he was said to heave rated workers higher than everything else in
importance.
There is not universal acceptable definition of management; the word has
different meaning depending on the context and purpose. The word
management was derived from the Italian word “managgiare” meaning to train
houses, Druker (1973) defined management as an objective function that ought
to be grounded in the responsibility for performance, according to MC
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Farland, management is the process by which mangers create, direct, maintain
and operate pruoose organization through systematic co-ordinate and control”
the definition that suited the researcher was the one defined by Mary Parker
Folleft (1920); she defined management as the arts of getting things done
through and with people.

[
Management should exercise certain powers and envoy some privileges, but
not at the detriment of its workers and the organization as a whole, totalitarian
attitude or being too bossy on workers does not constitute what can be rightly
called labour management relation. In the book human relation for
management edited by E. C. Busk, it is said that an employer, who is strict and
fair is usually respected by his workers, so management should be just, firm
and impartial towards things that concern its workers.
It should also be noted that a reasonable manager should always make
necessary arrangement to ensure that all materials required for the efficient
performance of the job are made available at the right time and place.
2.3 LABOUR MANAGEMENT RELATIONS AND THE EMPLOYEE

Every employee is important to an organization; putting personal touch to job
environment is a good element of labour management relations, for instance a
chat with a junior staff at his table by a top management might mean much to
the junior staff and bolster his sense of belonging and willingness to work
harder. Meanwhile as one considers the need to be reasonable, the employees
should also cultivate the right attitude to work by being willing to accept
change and pledge his loyalty as well.
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Section 1 of the labour decree 1974, defined labour as “a servant, an employee
or a worker” According to Ukoha (1989:185) he defined a worker as any
person who has agreed to render service to another and in the process of
rendering this service to obey his orders and to submit to his instructions and
directives for remuneration called wages, the labour code of United Republic of
Cameroun (1974) defined labour as any person who ahs undertaken to place his
gainful activity in return for a remuneration under direction and control of
another person who may be an individual, a private or public company or a
corporation who is styled the worker.
An employee who puts all his effort at work, expects good pay, conductive
condition, holiday and sick leaves, security of job and at present in Power
Holding Company of Nigeria (PHCN), there are benefits which workers enjoy
and it tend to improve their working relationship, these benefits are long
service award, souvenirs, provision of uniform to those entitled to wear them,
leave bonus, rent subsidy, vehicle and housing loans. When all these lack, there
is labour turnover, industrial dispute and conflict.
Eareless attitude to work result to poor performance at work, no matter how
vast the resources of an organization may be if it has not got capable and well
satisfied employees, it will scarcely be successful in its operation, hence the
need for a good labour management relation.
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2.4 EFFECT OF MUTUAL RELATIONSHIP BETWEEN WORKERS
AND MANAGEMENT ON PERFORMANCE
Performance is the measure of how resources are brought together in an
organization and utilized for accomplishing a set of result, performance cab be
effective and efficient only if there is a mutual relationship between workers
and management.
There is always a condition of service in every organizations together labour
and management should determine the term and condition under which
employees will work, how much employees are paid, when t hey must come to
work, when they are to leave work and how promotion are to be done, if both
parties fulfill their own part there will definitely co-exist peacefully.
In the year 2003, the managing director of PHCN, Engr J. O. Majoku went
around to personally acknowledge and appreciate the staff contribution to the
management’s success, in 2004 he went round again and even went a step
further to write letter to the field staff in which he highlighted management
achievement, commitments and projections, his effort to relate to workers
delighted the workers, money alone can only buy machinery, tools, man’s
physical presence in an organization, but cannot buy initiative, loyalty and
enthusiasm.
Cooperation on both sides will lead to better wages, good condition of work,
increased productivity, industrial peace and more importantly increased
performance.
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2.5 MOTIVATING LABOUR
Managers
gers must motivate people to join the organization, remain in the
organization, perform well and come to work regularly. Motivation are factors
that causes, channel and sustain an individuals behavior, qualified manpower
must be attracted and maintained iin

n a n organization Hodgetts (1989:40)
defined motivation ad the psychological drive that direct someone towards an
objective, managers should understand that the continuous success of their
business depends on being able to attract and retain staff that iiss willing and
committed to the business; employees who are not interested and bored would
not provide good services, would make mistakes and damage the
organization’s reputation.
In view of this, the motivation theory by Abraham Maslow will be explained
for further understanding of the effects of motivation on workers performance.
He grouped needs into hierarchy arranged in an ascending order starting from
low level needs to higher level needs.
Fig: 2.1 Abraham Maslow’s Needs Hierarchy
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Management may carter for physiological needs by offering adequate wages
and salary, acceptable working hours and working condition like heat,
ventilation and rest room. Need for safety and security can be satisfied by
management initiative to provide life insurance, job security, cost of living
increment and pension plans, social needs, provide opportunity for employees
to interact, self esteem need will be achieved by giving workers challenging
task and providing positive feedback on their performance and lastly to satisfy
self actualization, the employees should be given an opportunity to shape their
own jobs and freedom of expression.
To solve a problem one needs to understand not only the enormity of the
problem, but also the different dimension of the problem. There is also the
problem of health and training of workers in an organization as a means of
motivation. The need for safety and health precaution cannot be
overemphasized in an engineering firm like PHCN, there is need for safety
equipment that are needed to do the job , but in situations where management
do not provide these equipments, the workers would rather not work than risk
their life doing the work.
Management of PHCN tries to make it their duty to train workers especially the
technical staff that needs information on procedures where exposure to
electricity current cannot be eliminated. One has to take stock of the losses
ands cost implications of any electrical industrial accident, in terms of death
benefits (where lives are lost), loss of man hours, repairs, replacement of
equipment damaged as a result of handling or operation by non trained or
29
inadequately trained staff, to appreciate the need for training staff especially in
an industry such as PHCN.
So motivating workers through health care, training, job enrichment,
participation and increased incentives is both for the benefit of management
and labour, and also to enhance smooth relations between management and
labour
2.5 .1 SPECIAL MOTIVATIONAL TECHNIQUES

1. Money: Money can never be overlooked as a motivator whether in the
form of wages, bonuses, company paid insurance or any other incentive
pay that may be given to employees for performance, in spite of the
variation to eh place of money in motivation among scholars, it is worthy
to mention that money will still remain a strong means of motivating
workers particularly where workers live below poverty line.
2. Reinforcement: The teaching of re-enforcement as a means of motivation
could be credited to the words of B. F. Skinner, he states that a worker
would want to repeat a performance if he/she receives recognition or
praise for such an act, on the other hand, whenever a worker is
reprimanded for an act, the tendency is that he/she will drop it since it was
not approved of.
3. Job Enrichment: This type of motivational technique points to the
importance of making jobs challenging and meaningful. Job enrichment
is related to Hertzberg’s theory of motivation in which factors such as
challenge, achievement and responsibility are seen as real motivators,
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workers can be enriched by giving them more feedback in decision issues,
by encouraging interaction between workers and giving workers the
feeling of personal responsibility for their task and giving them feedback
on their job performance.
2.6 EFFECT OF LABOUR PARTICIPATION IN DECISION MAKING

Employees should be afforded the opportunity of directly or indirectly
participating in decision making, it is a matter of social justice to let workers
shave a say, if in nothing, but at least matters affecting them an employee will
work hard to achieve an objective knowing he was involved in its formulation;
a means of participation not only increases employee’s contribution to problem
analysis, but also enhances their ability to make important operational
decisions.
Workers participation in decision making in an organization promotes good
industrial relations, improves commitment and production. Other words, in
labour relations, empowerment in the work place is allowed and employers and
employees are seen as partners. Management see participation as a way of
increasing the commitment and control of workers, trade unions see it as a way
of increasing workers influence and control in the work place, workers see it
as a way of overcoming employer-employee conflict and of achieving co-
operation between management, trade union and workers.
Nel (2002) opines that industrial democracy is important to workers because it
results in an increased share in the control of organization in the economy and
community as a whole. According to Pons and Deale (1998) industrial
31
democracy refers primarily to participation in management and participation in
decision making process by the workers in an organization, in the same vein,
Elliot (1988) as quoted in Swanepol et al (200) defined participation as the act
of claiming right to have a say over matters affecting their work lives.
Industry democracy is a compelling aspect of management decision making,
the reason for the involvement of workers in decision affecting that affairs of
the organization is hinged on the fact that the workers are regarded as partners
in progress by management, it is also important for management to involve
workers in decision, in order to ensure high level of morale and performance.
2.7 EFFECTIVE COMMUNICATION

As a manager, your prime responsibility is to get things done through people,
however sound your ideas or well reasoned your decision are, they become
effective only as they are transmitted to others and achieve action or re-action,
communication is specifically needed to establish and distribute or spread
widely the goals of an organization, develop and appraise members of the
organizational and control performance. It is important for information to flow
freely between management and labour.
The purpose of communication in an organization is to effect change, to
influence action towards the welfare of the organization. Communication is
needed to establish and disseminate goals, develop plans for their
achievements, organize human and other resources in the most effective and
efficient way, select, develop and appraise members of the organization and
control performance.
32
In an effective communication, communication flows in various directions,
downwards, upwards and crosswise. Traditionally downwards communication
was emphasized but if communication flows only downwards, problems will
develop, in fact one could argue that effective communication has to start with
the subordinate and this means primarily upward communication,
communication also flows horizontally, that is between people on the same or
similar organizational levels and diagonally involving persons forms different
levels who are not in direct reporting relationship with one another.
Maintenance of effective communication rest squarely with the management,
also labour should try as much as possible to communicative its position with
management at all times.
The researcher observed that PHCN Enugu headquarters maintain an effective
communication network. Management through circulars, meetings radio and
newspaper pase information to their subordinates.
2.8 LEADERSHIP STYLE

Leadership is an important aspect of managing, the ability to lead effectively is
one of the keys to an effective manger. The essence of leadership is
followership, in other words it is the willingness of people to follow that makes
a person a leader, employees tend to follow those whom they see as providing a
means of achieving their own desires, wants and needs.
The leadership style of an organization can affect its general performance.
Leadership style refers to leaders’ manner of acting in a work situation,
according to fielder; leadership style is contingent on the personality of leader.
33
Leadership style could be autocratic, democratic or laissez -faire leader.
1. Autocratic Leader- This type of leader centralizes power and decision
making, he commands and expects compliance, he is dogmatic and leads
by the ability to withhold, give rewards and punishments.
2. Democratic or Participative Leader: Decentralizes authority by taking
decision with employees in form of participation, leaders here consult
with subordinates on proposed term of action and decision, and
encourages participation from them.
3. The Laissez-Faire Leader: This leader avoids power, they are
sometimes called leadership of “Mr. Right”, they allow the groups to
establish its own goals and work out its own problems.
Lippitt and White (196)) investigated the effects of leadership on productivity
in different groups, they concluded that:
a. Work oriented conversation was the greatest in a democratic group, less
in an autocratic group and least in a laissez-faire groups.
b. The amount of work actually done was greatest sin an autocratic group
and in a laissez-fare group, motivation was strongest in a leader left the
room, however motivation was not sufficient to increase output above
the level of the autocratic group.
c. Hostility and discontents where greatest in an autocratic group, people in
an autocratic group where more dependent on their leader, more
34
submissive, group mindedness and friendly playfulness where greatest
in a democratic group.
Figure 2.2 Continum of Leadership Beahaviour
MANAGER MANAGER MANAGER MANGERS MANAGERS MANGERS MANAGERS

ABLE TO MUST SELL PRESENTS PRESENTS PRESENTS DEFINES AND
MAKE DECISION DECISION TENTATIVE PROBLEM LIMITS NON-
DECISIONS BEFORE BUT MUST DECISION GETS WITHIN MANAGERS
WHICH NOW GAINING RESPOND SUBJECT TO IMPUTS WHICH JOINTLY
MANAGER ACCEPTANCE TO CHANGE FROM NON NON- MAKE
ACCEPTS QUESTIONS AFTER MANAGERS MANGERS DECISION IN
FROM NOW NON- MAKE THE
MANGERS MANAGERS ORGANI-
SATIONS
Source: Harvard Business Review, Exhibit from “How to Choose A
Leadership Pattern” By Robert Tannenbalm and Schmat
In Figure 2.2 we see leadership style involving a variety of style ranging from
one that is highly boss-centred to one that is subordinate-centred, the style vary
with the degree of freedom a leader or manager grants to subordinates.
It is pertinent to note that employees’ performance in an organization to an
extent depends on leadership styles; it is therefore left for the management to
know the required style for effective management of men and materials, so as
to achieve a suitable result.

35
In PHCN the leadership style used by management is democratic leadership
and workers prefer it because it gives the room to say something.
2.9 TRADE UNION

Trade Unions are the association formed and managed by workers, the trade
union is normally established by workers and run by their representatives for
the principal purpose of using them to protect their interest and aspirations,
trade union as indicated by Freeman and Medoff (1994) provide workers with
“a collective voice” to make this wishes known to management and thus
achieve actual and desired condition.
A trade union is a voluntary organization of workers who aim to protect and
promote economic, social and political interest of its members, mainly by
means of collective bargaining with employers, according to the trade union
decree 1973, trade union is any combination of workers or employees whether
temporary or permanent, the purpose of which is to regulate the terms ands
conditions of employment of workers.
Union can assist members in achieving the need for love, affection and
belonging, educational benefits can also be obtained through seminars,
conferences and workshops organized by the unions, the union can achieve all
this and more, since it is better placed and stronger than the individuals.
2.9.1 WEAPONS OF THE UNION

The trade unions have certain strategies and tactics used to extract greater
concession from employers, these strategies includes:
36
1. Strike: this is the partial or complete refusal to work or obstruction of
work by persons who are or have been employed by the same employer
or by different employers for purpose of remedying a grievance or
resolving a dispute in respect of any matter of mutual interest between
employer and employee, when a strike is embarked upon by a labour
union, there arises an industrial or trade dispute arising from some
unresolved disagreement between the union and management in an
organization, in most cases the disputes are resolved through negotiation
or collective bargaining.
2. Picketing: Is a form of union powers in which large posters, play cards
or signs are carried by the union workers, the picketing maybe
informational in order to inform the public about the unfair practices of
their employer.
3. Primary Boycott: Refers to the economic pressures, in which unions
attempt to influence people not to buy from a given firm.
4. Secondary Boycott: Is a situation where economic pressure, is placed
on another firm to prevent it from doing business.
2.9.2 WEAPONS OF MANAGEMENT

The following are the weapons used by the management to prevent the union
form demanding too much concession:
1. Lockout: The employer closes its doors to union members, to cause
them loss of work and wages.
2. Injunction: A court order that restrain the union form engaging in some
activities such as strike, boycott and picketing.

37
3. Blacklisting: This has been unlawful for use in labour management
relation, blacklisting is a list of undesirable employees who have
engaged in organizing activities for the union, the list is circulated to
other employers to reduce the chance of listing the blacklisted workers
getting employment in other firms.
4. Yellow Dog Control: Is an agreement signed usually as a condition of
service, whereby they promise not to join a union while working for
their employer.
2.10 COLLECTIVE BARGAINING:

Collective bargaining is regarded as the process by which employers meet in
conference from time to time, to agree upon terms of employment, under which
labour shall be performed. Davey quoted by Egbo (1987) views it as those
formal and informal process of accommodation through which an employer or
a group of employers and their organized workers attempt to establish a mutual
set of relationship which will allow them to achieve their respective goals,
collective bargaining is intended to be a mutual give and take between
representatives of two organizations for mutual benefits of both, in collective
bargaining negotiation about the working condition and terms of employment
is between the employer and the worker.
Since labour management relations must be maintained, and since conflict is
unavoidable, it becomes important for management to think carefully before
making decision, conflict between trade union and management is always a
possibility due to the fact that their interest sometimes differ, therefore a
38
process must be devised for the handling of these conflict on an on going basis,
so collective bargaining has been viewed as the process for managing this
complex relationship.
According to Akubuiro (2003), collective bargaining can be viewed as a
process which determines what terms labour will be sold under what terms
labour will continue to be supplied to a particular company, he said that it
includes all methods by which groups come together to attempt to reach on an
agreement in matters by a process of negotiation.
It is essential that management regularly review their collective bargaining
structure, decide not only what extent bargaining will take place, but also at
what level it prefers to negotiate certain issues. The bargaining structure has
to be appropriate not only to the organizations business strategy and structure
but also and especially to labour relations.
2.11 OPERATIVE FUNCTION OF THE PERSONNEL

DEPARTMENT
Personnel management also called human resource management is the
management of people at work, it is the part of management which is
concerned with people, it is the effective and efficient utilization of human
resource to accomplish the pre-determined objectives of an organization,
personnel management involves recruitment, selection, training and
development of the needed labour force, Elippo (1971) defined personnel
management as the application of management function in the process of
39
procurement, development, compensation, integration and maintenance of
human resources in an organization.
The personnel department is a staff and line establishment the personnel
department advices other department on personnel matters, this department
takes care of the engagement and dismissal of employees and the keeping of
record about them.
In small organizations the managers takes care of the responsibility of
personnel function, they try to combine effectively personnel functions with
their primary responsibility but as the activities increases in number and
complexity, mangers may not be able to face the challenges. Therefore a staff
specialist will be employed to assist the mangers on their personnel problems.
The role of the personnel manager is advisory and administrative as a
specialist, it is his duty to interpret the behaviour of individuals within the
organization and convey the implication of such behaviour to management, the
personnel manager also carries out administration and implementation of
personnel polices and programmes of the organization.
The duties of the personnel department in an organization are as follows:
1. Formulation of basic personnel polices and procedures, for effective
utilization of the available labour force, such policies serve as guidelines
for employer relationship.
2. Advising management on principles governing employer-employee
relation.
40
3. Supplying the organization with adequate staff, by the right people in
the right position and at the right time.
4. Assisting the organization in job evaluation.
5. Providing personnel services such as eating facility, recreation
opportunities and insurance policies.
6. Maintaining staff discipline and dealing with the union.
7. Keeping records on the attitudes of the workers.
41
REFERENCES
Bharskar Chatterjee “Human Resources Management” Sterling Publishers
Chandan J. S. (1987) “Management Theory and Practice”, Vikas Publishers.
Grace Nwobodo (2002), “The Importance of Staff Training in the Electricity

Industry”, NEPA News, October, pg. 6.
Imaga E. U. L. and Ewurum U. J. F. (1998), Business Management Topics”,

Oktek Publishers.
James A. f. S. “Management”, Published by Pearson Education Inc.
Laurie J.M. (1985), “Management and Organizational Behaviour”, England:

Published by Pearson Educational Ltd.
Lawal Abdulazeez A. (1993), “Management in Focus”, Nas Prints Publishers.

Ltd.
Mark Thomas, (2006), “Curus on Leadership”, Thorogood Publishing.
Ndidi Mbah, (2004), “Are You Satisfied With Your Job”, NEPA News, March
May pg. 28.
Osindele E. I. O. (2007), “Human Relation in an Industrial Establishment like

NEPA,” NEPA Review, May, pg. 24.
Tosa Usuanlele K. (2004), “The Importance of Greasing The Workers Elbow”,

NEPA Review, Pg. 10.
Unamaka P. C. and Ewurum U. J. F. (1995), “Business Administration,”

Precision Printers and Publishers.
42
CHAPTER THREE
3.0 RESEARCH DESIGN AND METHODOLOGY

3.1 INTRODUCTION TO THE STUDY
This chapter focuses mainly on the method employed in securing information
on the research topic, emphasis was laid on research design and method, area
of study, population of the study, sample size determination, instrument,
reliability of the instrument, method of data collection, method of data analysis
and questionnaire distribution and retrieval.
3.2 RESEARCH DESIGN METHOD

The research method adopted in any research study to an extent is dependent
on the nature and objectives of the study. Since this study centers on “the
effect of labour management relations on workers performance in an
organization”, the survey research study will include questionnaires, the
questionnaires will b structured and the selection of respondents will be based
on the sampling method whereby a representative part of the population will be
selected and studied with a view to making references and generalization about
the population.
3.3 AREA OF STUDY

The geographical coverage of this research study is Power Holding Company
of Nigeria (PHCN) in Enugu State, basically its Ogui Business Unit at Okpara
Avenue.
3.4 POPULATION OF THE STUDY

The population size of this study has been drawn form the management staff
and employees of Power Holding Company of Nigeria at Ogui Business Unit,
43
the Population size is two hundred and sixty six (266) people, and it was gotten
form its various department namely; Distribution (103), Marketing (86),
Administration (42), Accounts (24) and Computer (11) Workers, Making the
total population to be 266.
3.5 SAMPLE SIZE DETERMINATION

In determination of sample size, YARO YAMANI’S statistical formula (1964)
will be used as stated below.

n =
()
Where:
n = the Sample Size
N = Population
e = Margin of error (5%)
I = Constant
Hence

n =
(.
)

n =
(.
)

n =
.

n =
.

n =
.
n = 159.7597598
n = M (appropriate) = 160
n = 160
3.6 INSTRUMENT FOR DATA COLLECTION
The instrument used for data collection was questionnaire, the questions used
in the questionnaire were targeted at the respondents with a view to satisfying
the purpose of the study and providing analysis, the questions dwelled on
44
research questions, objectives of the study, research hypothesis and personal
questions.
3.7 SOURCES OF DATA/METHOD OF DATA COLLECTION

The sources form which data was obtained or collected for this research work
are primary and secondary sources.
Primary Sources
The primary sources of data collection was based on information gathered
directly form management and employees through questionnaires, another
primary source, is the interview held with some of the management and
employees in the organization.
Secondary Sources
The secondary sources of data were collected from already written works, both
published and unpublished that have relevance to the subject matter, these
includes text books, magazines, newspapers and various journals.
3.8 VALIDATION OF THE INSTRUMENT

To improve the validity of the instrument the expert validation and content
validation was used, the expert validation was sought through the researchers
supervisor who gave an expert advice about the area of study, content
validation of this research study was based essentially on judgment alone.
3.9 RELIABILITY OF THE INSTRUMENT

To ensure the reliability of the instrument test-retest method was used, since it
is more effective than other methods, questionnaires were administered at
different times to the same respondents, the scores from the respondents
45
correlated together showing that the results were consistence, which indicates
that the instrument was reliable.
3.10 METHOD OF DATA ANALYSIS

This will be based on the data collected and survey made. The researcher made
use of tables, percentages and statistical method of distribution, the table is
used to represent the number of respondent and the degree of responses to each
question in percentages, thereafter chi-square (X2) statistics will be used for
testing the hypothesis.
The chi-square is represented by the sign “X” it is defined as the sum of the
total of the ration of differences between observed and expected values, and it
is represented by the formula below
∑()
X2 =

Where =
Fo = Observed Frequency
Fe = Expected Frequency
X2 = Chi-square distribution
Df = Degree of freedom.
The degree of freedom “df” is computed thus:
Df = (R-1) (C-N)
Where
46
R = Number of rows in the table
C = Number of columns in the table
( )( )

Expected frequency (Fe) =

The test of hypothesis will be carried out at 5% level of significance, the
decision rule is that if X2 calculated is less than (<) the critical value, we accept
the null hypothesis (H0) and reject alternate hypothesis (H1), but if the
calculated value, we reject null hypothesis (H0) and accept alternate hypothesis
(H1).
3.11 QUESTIONNAIRE DISTRIBUTION AND RETRIEVAL

The questionnaires were constructed in simple English language, the
respondents were assured the confidentiality of the information given, question
16 were questions dealing with personal that will lead to information’s needed
for the research under study. Questionnaires were distributed, and 38
questionnaires were either not fully completed or not returned by the
respondents, the total number of questionnaires returned was 122.
47
REFERENCES
Amaechi U. J. (2005), “Basic Business Statistics”, Precision Publishers.
Chukwuemeka E. E. O. (2002), “Research methods and Thesis writing,” HRV

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

Ltd.
48
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 PRESENTATION AND ANALYSIS OF DATA
This chapter deals with the analysis of research findings through the data
collected from questionnaires administered and testing of hypothesis as well as
interpretation. Questionnaires were administered to various departments, 160
questions were distributed but only 122 were fully filled and returned which
was used for the analysis.
Analysis of Data From Power Holding Company of Nigeria (PHCN)
Table 4.1: Distribution and Return of Questionnaires
Options No of Responses Percentage (%)
Returned 122 76
Not returned 38 24
Total Distributed 160 100
A total of 160 questionnaires were distributed, which represents the total

sample size, 122 copies representing 76% of the sample size were properly
completed and returned, while 38 copies of the questionnaires were not
returned which represents 24% of the sample size.
49
Table 4.2: Sex of Respondents
Male 75 61.5
Female 47 38.5
Total 122 100
The table above shows that 75 respondents representing 61.5% were male,
while 47 respondents representing 38.5% of the sample size were female.
Table 4.3: Marital Status of Respondents
Single 34 28
Married 88 72
Total 122 100
The table above shows that 34 of the respondents representing 28% are single,
while 88 of the respondents representing 72% are married; this goes to suggest
that the bulk of the workers are married.
50
Table 4.4: Age of Respondents
20-30 years 24 20
31-40 years 45 37
41-50 years 38 31
51 and above years 15 12
Total 122 100
From the table above, the number of people that falls between 20-30 years is 24
respondents representing 20%, the number that falls between 31-40 years is 45
respondents representing 37%, 38 respondents representing 31% choose the
options 41-50 years while 15 respondents were 51 years above represented by
12%.
Table 4.5: Department of the Respondents
Distribution 42 34
Marketing 28 23
Administration 35 29
Account 11 9
Computer 6 5
Total 122 100
51
The table shows that 34% of the respondents are from distribution, 23% from
marketing, 29% from administration, and 9% from account department while
5% of the respondents are from computer department.
Table 4.6: Employment Status of the Respondents
Junior staff 58 47.5
Senior staff 41 33.6
Management staff 23 18.9
Total 122 100
From the above analysis, the junior staff has 58 respondents representing
47.5% the senior staff has 41 respondents representing 33.6%, while the
management staff has 23 respondents representing 18.9%
Table 4.7: Length of Service of Respondents
1-4 years 28 23
5-8 years 40 33
9 years and above 54 44
Total 122 100
52
The table shows that 28 respondents have worked between 1-4 years
represented by 23%, 40 respondent represented by 33% have worked between
5-8 years, while 54 respondents have worked from 9 years and above, which is
represented by 44%.
Table 4.8: Response to Questions Concerning the Research Understudy
Question 7: Is there a mutual relationship between labour and management in

your organization?
Yes 66 54
No 43 35
Undecided 13 11
Total 122 100
The table above shows that 66 respondents representing 54% agreed that there
is a mutual relationship between labour and management in their organization,
43 respondents disagreed to this representing 35%, while 13 respondents were
undecided about their opinion which represents 11% of the sample size.
Question 8: Do you agree that mutual labour management relations has any
effect on workers performance?
53
Table 4.9
Yes 94 77
No 21 17
Undecided 7 6
Total 122 100
The table shows that 94 respondents constituting 77% of the sample, agree that
mutual labour management relations has an effect on workers performance, 21
respondents representing 17%, disagreed, while 7 respondents representing 6%
could not decided whether to agree or not.
Question 9: Is there a need for workers to participate in decision making?
Table 4.10
Yes 80 73
No 21 17
Undecided 12 10
Total 122 100
The table above shows that 89 respondents represented by 73% agreed that
there is a need for workers to participate in decision making. 21 respondents
represented by 10% of the respondents were undecided about their opinion.
54
Question 10: Do you believed that allowing workers to participate in decision
making would give them a sense of belonging?
Table 4.11
Yes 109 89
No - -
Undecided 13 11
Total 122 100
From the table above, 89% of the respondent agreed that allowing to participate
in decision would give them a sense of belonging; none disagreed, while 13
respondents representing 11% choose the option undecided.
Question 11: Does motivation make you and others work hard?
Table 4.12
Yes 117 96
No 5 4
Undecided - -
Total 122 100
55
The table shows that 117 respondents representing 96% agreed that motivation
will make them and others work hard, 5 respondents represented by 4%
disagreed with it, while no respondent choose undecided.
Question 12: What kind of motivational package do you prefer?
Money 32 26
Participation in 27 22
decision making
Praise 12 10
Good working 51 42
condition
Total 122 100
The table above indicates that 32 respondents represented by 26% choose

money as the motivational technique they prefer, 27 respondents represented
by 22% choose participation in decision making, 12 respondents represented by
10% choose praise, while 51 respondents choose good working condition as the
motivational technique they prefer and it was represented by 42%.
Question 13: What is the communication gap between employees and

management in your organization?
56
Table 4.14
Wide 82 67
Narrow 40 33
Total 122 100
From the table above, we see that 82 respondents represented by 67% saw the
communication gap between management and labour as wide, while the
remaining 40 respondents represented by 33% saw the communication gap as
narrow.
Question 14: Do you think that good communication enhances smooth labour
management relations?
Table 4.15
Yes 122 100
No - -
Undecided - -
Total 122 100
The analysis above shows that 122 respondents represented by 100%, agreed
that good communication enhances smooth labour management relations, while
none of the respondents choose the option No and Undecided respectively.
57
Question 15: Are your salaries paid as an when due?
Table 4.16
Yes 89 73
No 24 20
Undecided 9 7
Total 122 100
The table shows that those who agreed that their salaries are paid as and when
due are 89 in number, represented by 73%, 24 of the respondents represented
by 20% insisted that their salaries are not paid as and when due, the remaining
9 respondents were undecided about their opinion.
Question 16: Have your organization witnessed any strike?
Table 4.17
Yes 122 100
No - -
Undecided - -
Total 122 100
58
The table above shows that all the respondents constituting of 122 people
where in agreement that their organization has witnessed strike, which
represents 100% of the sample size, there was none for No and Undecided.
Question 17: If your answer to question (15) is yes how many times has it
occurred?
Table 4.18
Once 12 10
Twice 31 25
More than twice 79 65
Total 122 100
From the table above, 12 respondents represented by 10% said that they have
witnessed strike once, 31 respondents represented by 25% were of the opinion
that their have witnessed strike twice, while 79 respondents being 65% said
that they have witnessed strike more than twice.
Question 18: Do you agree that strike has an effect on organizational

performance?
Table 4.19
Yes 92 75.4
59
No 27 22.1
Undecided 3 2.5
Total 122 100
The table shows that 92 respondents representing 75.4% believed that strike
has an effect on organizational performance, 27 respondents representing
22.1% did not see any effect strike has on organizational performance, while 3
respondents represented by 2.5% were undecided.
Question 19: Which leadership style do your organization operate?
Autocratic 40 32.7
Democratic 74 60.7
Laissez-faire 8 6.6
Total 122 100
The table above indicates that 32.7% of the respondents choose autocratic style
of leadership, 60.7% argued that it is a democratic style of leadership that is
being practice, and respondents representing 6.6% suggested that it is a laissez-
faire style of leadership that is being practiced in their organization.
Question 20: Which leadership style will favor labour management relations?
Table 4.21
60
Autocratic 22 18
Democratic 100 82
Laissez-faire - -
Total 122 100
From the table above, 22 respondents representing 18% choose autocratic

leadership style as the of leadership that will favour labour management
relation, 100 respondents representing 82% choose democratic leadership style
and none choose laissez-faire.
Question 21: Does your organization have a personnel department?
Table 4.22
Yes 122 100
No - -
Undecided - -
Total 122 100
The above table shows that 122 respondents representing 100% agreed that
power Holding Company of Nigeria has a personnel department, no respondent
choose the options No and Undecided respectively.
61
Question 22: Is your personnel department performing its duties?
Table 4.23
Yes 88 72
No 34 28
Undecided - -
Total 122 100
The table above shows that 88 respondents representing 72 agreed that the
personnel department in their organization is performing its duties, 34
respondents representing 28% said that the personnel department are into
performing their duties, no respondent choose the option undecided
Question 23: Do junior staff workers participate in decision making in your

organization?
Table 4.24
Yes 31 25
No 68 56
Undecided 23 19
Total 122 100
62
The table above shows that 31 respondents represented by 25% agree that
junior staff workers are allowed to participate in decision making in their
organization, 68 respondents represented by 56% disagreed, while 23
respondents represented by 19% were undecided about their opinion.
Question 24: Does a cordial relationship exist between labour and

management?
Table 4.25
Yes 38 31
No 65 53
Undecided 19 16
Total 122 100
The table above shows that 38 respondents representing 31% agreed that a
cordial relationship exist between labour and management, 65 respondents
representing 53% did not agree, 19 respondents representing 16% choose the
option undecided.
4.2 TESTING OF HYPOTHESES

This section is devoted to the testing of hypothesis stated in chapter one, in
order to validate the relationship between labour and management. As
indicated earlier in chapter three, the testing will be done using chi-square (x2)
at 5% level of significance. The chi-square formula is
Σ()
X2 =

63
Where
X2 = Chi square distribution
Fo = Observed frequency
Fe = Expected frequency
Hypothesis I
Ho : Mutual labout management relations does not have an effect on workers
performance.
Hi : Mutual labour management relations has an effect on workers
performance.
In testing the hypothesis, responses from question 8 of the questionnaire will be

used.
Table 4.26: Contingency Table for Hypothesis I
Options Junior staff Senior staff Management Total

staff
Yes 51 27 16 94
No 3 13 5 21
Undecided 4 1 2 7
Total 58 41 23 122
The frequencies expected are computed thus
!

Fe =

"#
$ "# # "# %
= 44.7 = 31.6 = 17.7

64

$ # %
= 10 = 7.1 =4

$ # %
= 3.3 = 2.4 = 1.3

Table 4.27: Computation of X2 for Hypothesis I
S/N Fo Fe Fo – Fe (Fo-Fe)2 (-. − -01

-0
1 51 44.7 6.3 39.69 0.8879
2 27 31.6 -4.6 21.16 0.6696
3 16 17.7 -1.7 2.89 0.1633
4 3 10 -7 49 4.9
5 13 7.1 5.9 34.81 4.9028
6 5 4 1 1 0.25
7 4 3.3 0.7 0.49 0.1485
8 1 2.4 -1.4 1.96 0.8167
9 2 1.3 0.7 0.49 0.3769
13.1157
Computation of Degree of Freedom (DF)
df = (R-1) (C-1)
Where R= Rows
65
C = Columns
= (3-1) (3-1)
= (2) (2) = 4
df = 4
From the table, 4 degree of freedom at 0.05 is 9.488,
Therefore x2 critical value = 9.488
X2 calculated value = 13.1157
REJECT
DO NOT
REJECT
9.488
Critical value
Decision Rule
Do not reject null hypothesis (Ho) if the calculated value of x2 is less than (<)
the critical value of x2 and reject alternate hypothesis (Hi). Reject null
hypothesis (Ho) if the calculated value is greater than (>) the critical value of x2
and accept alternate hypothesis (Hi)
66
Decision: since the calculated value of 13.1157 is greater than the critical value
of 9.488, the null hypothesis (Ho) which states that mutual labour management
relation does not have an effect on workers performance should be rejected,
while alternate hypothesis (Hi), which states that mutual labour management
relation have an effect on workers performance is accepted.
Hypothesis II
Ho : There is no need for workers participation in decision making
Hi : There is need for workers participation in decision making
In testing the hypothesis, responses from question 9 of the questionnaire will be

used.
Table 4.28: Contingency table for hypothesis II

staff
Yes 41 36 12 89
No 7 5 9 21
Undecided 10 0 2 12
Total 58 41 23 122
The frequency expected (Fe) are computed thus:
67
!
Fe =

Fe
$"
$ $" # $" %
= 42.3 = 30 = 16.8

$ # %
= 10 = 7.1 =4

$ # %
= 5.7 =4 = 2.3

Table 4.30: Computation of X2 for Hypothesis II
S/N Fo Fe Fo – Fe (Fo-Fe)2 (-. − -01

-0
1 41 42.3 -1.3 1.69 0.0399
2 36 30 6 36 1.2
3 12 16.8 -4.8 23.04 1.3714
4 7 10 -3 9 0.9
5 5 7.1 2.1 4.41 0.6211
6 9 4 5 25 6.25
7 10 5.7 4.3 18.49 3.2439
8 0 4 4 16 4
9 2 2.3 -0.3 0.09 0.0391
17.6654
68
df = (R-1) (C-1)
Where
R = Rows
C = Columns
= (3-1) (3-1)
= (2) (2)
df = 4
From the table, 4 degree of freedom at 0.05 is 9.488
REJECT Ho
DO NOT
REJECT
9.488
Critical value
Decision Rule
69
hypothesis (Ho) if the calculated value is greater then (>) the critical value of x2
and accept alternate hypothesis (Hi).
Decision: Since the calculated value of 17.66754 is greater than the critical
value of 9.488, the null hypothesis (Ho) which states that there is no need for
workers participation in decision making should be rejected, while the alternate
hypothesis (Hi), which states that there is no need for workers participation in
decision making is accepted.
Hypothesis III
Ho: Strike has no effect on organizational performance
Hi: Strike has an effect on organizational performance
In testing the hypothesis, responses from question 18 of the questionnaire will

be used.
Table 4.31 Computation of X2 for Hypothesis III

staff
Yes 50 22 20 92
No 6 18 3 27
Undecided 2 1 - 3
Total 58 41 23 122
70
The frequencies expected (Fe) are computed thus
!

Fe =

"
$ " # " %
= 43.7 = 30.9 = 17.3

$ # %
= 12.8 = 9.1 = 5.1

%
$ % # % %
= 1.4 =1 = 0.6

Table 4.32: Computation of X2 for Hypothesis III
S/N Fo Fe Fo – Fe (Fo-Fe)2 (-. − -01

-0
1 50 43.7 6.3 39.69 0.9082
2 22 30.9 -8.9 79.21 2.5634
3 20 17.3 12.7 161.29 9.3231
4 6 12.8 -.8 46.24 3.6125
5 18 9.1 8.9 79.21 8.7044
6 3 5.1 -2.1 4.41 0.8647
7 2 1.4 0.6 0.36 0.2571
8 1 1 0 0 0
71
9 0 0.6 0.6 0.36 0.6
26.5763
df = (R-1) (C-1)
Where
R = Rows
C = Columns
= (3-1) (3-1)
= (2) (2)
df = 4
REJECT Ho
DO NOT
REJECT
9.488
Critical value
72
Decision Rule
Hypothesis Iv
Ho: Motivation does not encourage workers to work hard
Hi: Motivation encourages workers to work hard
In testing the hypothesis, responses from question II of the questionnaire will

be used.
73
Table 4.33: Contingency Table for Hypothesis IV

staff
Yes 58 40 19 117
No 0 1 4 5
Undecided 0 0 0 -
Total 58 41 23 122
The frequencies expected (Fe) are computed thus
!

Fe =

$ # %
= 55.6 = 39.3 = 22.1

$
#
%
= 2.4 = 1.3 = 0.9

$ # %
=0 =0 =0

74
Table 4.34: Computation of X2 for Hypothesis IV
S/N Fo Fe Fo – Fe (Fo-Fe)2 (-. − -01

-0
1 58 55.6 2.4 5.76 0.1036
2 40 39.3 0.7 0.49 0.0125
3 19 22.1 -3.1 9.61 0.4348
4 0 2.4 -2.4 5.7 2.4
5 1 1.3 -0.7 0.49 0.2882
6 4 0.9 3.1 9.61 10.6778
7 0 0 0 0 0
8 0 0 0 0 0
9 0 0 0 0 0
13.9169
df = (R-1) (C-1)
Where
R = Rows
C = Columns
= (3-1) (3-1)
= (2) (2)
df = 4
75
REJECT Ho
DO NOT
REJECT
9.488
Critical value
Decision Rule
4.3 SUMMARY OF RESULT
1. The result of the above analysis shows that a greater percentage of the
respondents agreed that labour management relations has an effect on
76
workers performance in an organization, some people disagreed with this
opinion, while some where different about their opinion.
2. With these findings it became obvious that a cordial relationship can be

achieved between labour and management if there is a good
communication between them, timely payment of salaries, proper
motivational techniques, good leadership and creating room for workers to
participate in decision making.
3. That there is need for workers to participate in decision making, because it

will give them a sense of belonging.
4. Junior staff workers do not participate in decision making in Power Holding

Company of Nigeria, this is basically left for the management staff, who
believe they can handle the job better.
5. Motivation is a necessary inducement for workers to work hard.
6. The motivational package preferred was good working condition, followed

by money, participation in decision making and lastly praise.
7. That the communication gap between workers and management of PHCN is

wide and it has negative effect on workers performance.
8. The success of a cordial relationship depends on a good and smooth

communication between labour and management.
9. That salaries are paid as and when due.
77
CHAPTER FIVE
DECISION, RECOMMENDATION AND CONCLUSION
The discussion, conclusion and recommendation made under this chapter are
based on the findings of the study. The study sought to identify the effect of
labour management relations on workers performance in Power Holding
Company of Nigeria (PHCN).
5.1 DECISSION OF FINDIGNS
Based on the analysis in chapter four as collected from the 122 respondents of
Power Holding Company of Nigeria (PHCN), the findings of the research are
summarized below:
1. That labour management relations has an effect on workers

performance.
2. Power Holding Company of Nigeria has fair mutual labour management
relations.
3. That there is need for workers to participate in decision making, because
it will give them a sense of belonging.
4. Junior staff workers do not participate in decision making in Power
Holding Company of Nigeria, this is basically left for the management
staff, who believe they can handle the job better.
5. Motivation is a necessary inducement for workers to work hard.
6. The motivational package preferred was good working condition,
followed by money, participation in decision making and lastly praise.
7. That the communication gap between workers and management of
PHCN is wide and it has negative effect on workers performance.
8. The success of a cordial relationship depends on a good and smooth
communication between labour and management
9. That salaries are paid as and when due.
78
10. The organization has witnessed strike more than twice, and this has an
effect on workers performance.
11. That the leadership style operated is democratic style of leadership,
which is the best for an effective relationship between labour and
management.
5.2 RECOMMENDATION
For proper and adequate sustenance of a cordial relationship between labour

and management, the researcher has stated the following recommendations;
1. Since labour management relation has an effect on workers

performance, management should see to it that a cordial relation is
maintained. Terms and conditions under which employees will work
must be determined and if both parties fulfill their own parts, there will
definitely co-exist peacefully.
2. Workers should be given the opportunity to participate in decision
making, so as to give them a sense of belonging and enhance their
performance. Opinions should be sort from the employees before
decisions are taken, since they spend most of their time working for the
organization.
3. The employees should be motivated in order for harmony to reign
between management and labour, so as to enhance performance.
4. It is important that the communication gap between the management and
workers be bridged to prevent unnecessary sabotage and enable them
speak with one voice, thereby avoiding rumor mongering.
5. Management must pay salaries and when due, since this has been a
major cause of industrial action in the organizaiton
79
5.3 CONCLUSION
The study and findings of the effect of labour management relations and its
effect on workers performance in an organization is the purpose of this study.
The introductory studies and analysis of information in the last chapter forms
the foundation for the following conclusion.
1. Industrial peace and harmony is necessary in order to have an increased

performance, this can only be maintained with good labour management
relations.
2. Both the management and employees should understand that they both
play an important role in the organization, they should see each other as
indispensable in the actualization of the organizational goals and
objectives, and this can be achieved by seeing and treating the
organization as a system
3. Labour must be handled with care, in order to avoid unproductive
labour, on the order hand; labour should not exploit and remain dormant
in the organization.
4. Motivation and communication are vital factors that affect performance,
efforts should be made to meet up with the yearnings of the employees
by introducing a motivational package that will suit and satisfy their
needs. Communication is the only way information’s can be effectively
transmitted, good communication if maintained will reduce
misinterpretation and increase the speed with which work is performed.
5. Since it is a known fact that workers will purse an objective better, if
they join in making the decision on that objective, management should
allow workers to participate in decision making, because if workers are
granted such permission to participate in decision making, they will feel
privileged and indebted to work hard to achieve the joint decision made.
80
6. Organization requires a leadership style that ensures adequate flow of
information to all workers, democratic leadership style for now is the
prefect style of leadership for labour management relations.
7. Whenever there is a grievance or disagreement in the organization,
management should try and resolve it at its early stage either through
negotiation or collective bargaining, before it gets too late and result to a
strike.
81

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EFFECTS OF LABOUR MANAGEMENT RELATIONS ON WORKERS

PERFORMANCE IN AN ORGANISATION,A CASE STUDY OF

ONWU NONYELUM FELICIA

A DISSERTATION SUBMITTED TO THE DEPARTMENT OF

SUPERVISOR: PROF. UJF EWURUM

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

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

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

God bless you all.

This study is aimed at analyzing the effect of labour management

1.1 Background of the study 1

1.2 Organizational background of PHCN 3

1.3 Organizational structure of PHCN 4

1.4 Statement of the problems 5

1.5 Objective of the study 5

1.6 Research questions 6

1.7 Hypothesis formulation 7

1.8 Significance of the study 8

1.9 Scope of the study 8

1.10 Limitation of the study 8

1.11 Definition of terms 9

2.0 Review of related literature 11

2.1 An overview of labour management relations 12

2.2 Labour management relations and the management 12

2.3 Labour management relations and the employee 13

2.4 Effect of mutual relations between workers and management

2.5 Motivating labour 16

2.5.1 Special motivational package 18

2.6 Effect of labour participation in decision making 19

2.7 Effective communication 20

2.8 Leadership style 21

2.9 Trade Union 24

2.9.1 Weapons of the Union 24

2.9.2 Weapons of Management 25

2.10 Collective Bargaining 26

2.11 Operative Function of The personnel Department 27

3.0 Research Design and Methodology 31

3.2 Research Design Method 31

3.3 Area of Study 31

3.4 Population of the Study 31

3.5 Sample Size Determination 32

3.6 Instrument for Data Collection 32

3.7 Sources of Data/Method of Data Collection 33

3.8 Validation of the Instrument 33

3.9 Reliability of the Instrument 33

3.10 Method of Data Analysis 34

3.11 Questionnaire Distribution and Retrieval 35

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1 Presentation and Analysis of Data 37

4.2 Testing of Hypothesis 51

4.3 Summary of Result 66

CHAPTER FIVE: DISCUSSION, RECOMMENDATION AND

4.1.1 Table 1: Distribution and return of questionnaires. 37

Fig 1.3 Organizational structure of PHCN 4

Fig 2.1 Abraham Maslow’s needs Hierarchy 15

Fig 2.2 Continuum of leadership behavior 23

organization engage in formal relationship, which is purely for operational

purposes. The relationship between the management and workers contractual,

which is that the employer-employee relations.

objectives cannot be achieved without an effective cordial relationship between

industrial peace and harmony that can be maintained, therefore employers of

administration of the organization should regard and treat employees as a vital

to appreciate the effort of management in trying to protect the interest of

investors and shareholders.

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