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HUMAN RESOURCE MANAGEMENT

CASUALIZATION AND EMPLOYEE COMMITMENT IN ETISALAT NIGERIA

CASUALIZATION AND EMPLOYEE COMMITMENT IN ETISALAT NIGERIA

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CASUALIZATION AND EMPLOYEE COMMITMENT IN ETISALAT NIGERIA

CHAPITRE ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The purpose of this research is to investigate the relationship between casualization and employee commitment in Etisalat Nigeria. Employee commitment was defined by Allen and Meyer (1996) as “a psychological state of an employee towards the organisation that makes it less likely that the employee will voluntarily leave the organisation.”

Because of the insecure nature of their work, casual employees may have lower levels of employee commitment (Campbell, 1996). According to Dessler et al. (2004), “people have a psychological reference point to their place of employment.”

When you put people in the temporary group, you’re suggesting they’re disposable, and as a result, they’re less inclined to show devotion and dedication to their organisations.”

Employers and employees both gain from employee commitment (Mowday, 1998). Employees see commitment to work and in an organisation as a good relationship that can ‘possibly bring meaning to life,’ whereas businesses see committed employees as having the potential for increased performance as well as lower turnover and absenteeism.

Employee commitment has been provisionally connected to an organization’s efficiency, productivity, creativity, and innovation, as well as its profitability (Raab & McCain, 2002).

The relationship between employee commitment to an organisation and worker turnover is one of the few strong correlations in the literature. According to Allen and Meyer (1990), “strongly committed employees are the least likely to leave the organisation.”

Employers’ use of nonstandard work arrangements is increasingly challenging the traditional industrial relations system, which is founded on the concept of full-time employees working within an organisation. With the implementation of flexible work arrangements by many firms worldwide, the changing nature of work has taken on a new dimension.

The development of a more flexible workforce has become employers’ new frontier in human resource management, and this subject runs across many of the innovative approaches to management in today’s globalised economy

. However, the shifting patterns of work (e.g., casual, contract, temporary, part-time employments, subcontracting, outsourcing/insourcing, etc.) brought about by Structural Adjustment Programmes (SAP) have caused alarm among workers and trade unions, particularly in Nigeria.

Some of the concerns of concern are job security, social security, terminal benefits, and working environment. The trend towards casualisation in Nigeria reflects a persistent drive by government and corporate elites to maximise profit at the expense of long-term job policies, transparent governance, and shared economic progress. Casualization is a major scourge that has overtaken the Nigerian workplace, particularly the banking and telecommunications sectors.

Most management writers define casualisation as the process by which employment transitions from a preponderance of full-time and permanent positions to higher levels of casual ones. It can also be considered irregular or intermittent employment (Rodriguez, 2009).

This is sometimes caused by workplace politics, which is the use of power inside an organisation for agendas and self-interest without consideration for the impact on the organization’s attempts to fulfil its goals.

Access to tangible goods or intangible benefits such as status or pseudo-authority that impacts the behaviour of others are examples of personal advantages. Individuals and groups can both engage in this type of conduct, which can be extremely detrimental because they are focused on personal benefits at the expense of the organisation.

One is supposed to move horizontally or vertically in life, but most telecommunications businesses have compelled their casual employees to remain immobile. Because there is no advancement or rise in their pay.

In most situations, casual employees remain in the same job status/designation for 15 to 20 years. Worst of all, some of the company’s so-called full-time employees treat casual employees with contempt. They are demoralised and treated as inferior beings.

Casual labour in businesses is the most heinous type of modern slavery. It is an anomaly and an embarrassment for two sets of employees, one casual and the other ‘full staff,’ to perform the same job functions, and at the end of the day, the’so-called full staff’ is paid more, promoted, and given opportunities for further training and development in order to advance on the job,

while the other ‘casual staff’ is completely ignored. Experience abounds in which two individuals who were employed in the same company on the same day but in different employment tactics (i.e. full staff and casual) rose to become Managers within the space of ten years,

while the other fellow employed as casual staff remains at the same entry point/level where he was employed ten years ago. The sole transgression the latter committed was most likely because he was a polytechnic graduate working as casual worker.

Etisalat Nigeria, the case study in this paper, is owned by Emirates Telecommunications Corporation. Etisalat is a multinational UAE-based telecommunications services provider that now operates in 18 countries across Asia,

the Middle East, and Africa. Etisalat is the world’s 13th largest mobile network operator, having over 167 million customers as of February 2014. In 2012, Forbes Middle East rated Etisalat the most powerful corporation in the UAE.

Etisalat Nigeria has been in business for seven years and has over 23 million members, making it one of the country’s fastest expanding networks. Etisalat Nigeria has network coverage in all 36 states of the federation (rolled out in less than a year and a half),

covering the majority of the population, and has deployed over 2,000 kilometres of fibre to facilitate broadband development. The company has a long record of providing new mobile banking products that have made financial transactions more accessible for users while also encouraging entrepreneurship.

1.2 STATEMENT OF THE PROBLEM

Casualization extends beyond Nigeria and telecom firms. Good jobs are being lost around the world in practically every economic area as corporations cut costs at the expense of working families. Too many occupations are being outsourced, contracted out, or redefined as a result of a slew of legal definitions designed to keep wages low, benefits low, and unions out. Employment casualization is increasing at an alarming rate.

More and more permanent workers are losing their jobs and being re-hired as or replaced by casual or contract workers. This situation is considered as an employer’s strategy to decrease costs, maximise profit, and subject employees to economic captivity.

Casual work, which is supposed to be a type of temporary employment, has been elevated to the status of permanent employment in many Nigerian organisations, despite the lack of legislative benefits associated with permanent job status.

Casual workers are paid less, have no ability to form unions, and are denied medical and other benefits. Companies have devised tricks such as hiring numerous part-time workers instead of one or two full-time workers to avoid providing benefits,

divide the workforce, and discourage unionisation efforts. However, the purpose of this study is to determine the impact of some company management’s unjust casualization of employees on employee commitment.

1.3 OBJECTIVES OF THE STUDY

The overall goal of this study is to examine the impact of casualization on employee commitment at Etisalat Nigeria, with the following specific goals:

The purpose of this study is to look at the impact of casualization on employee engagement at Etisalat Nigeria.

To identify the many reasons of employee casualization.

To investigate how casualization affects organisational performance and productivity.

1.4 RESEARCH QUESTIONS

What effect does casualization have on employee commitment at Etisalat Nigeria?

What are the many reasons for employee casualization?

What impact does casualization have on organisational effectiveness and productivity?

HYPOTHESIS (1.5)

The First Hypothesis

In Etisalat Nigeria, there is no substantial relationship between casualization and employee commitment.

In Etisalat Nigeria, there is a considerable relationship between casualization and employee commitment.

The second hypothesis

In Etisalat Nigeria, there is no substantial relationship between casualization and organisational effectiveness and productivity.

In Etisalat Nigeria, there is a considerable relationship between casualization and organisational success and efficiency.

1.6 SIGNIFICANCE OF THE STUDY

The following are the study’s implications:

The findings of this study will help the researcher better comprehend casualization and employee commitment in Nigeria’s telecommunications sector, as well as the extent to which casualization has affected organisational performance and productivity at Etisalat Nigeria.
At the societal level, the findings of this survey would allow people to voice their perspectives on casualization and employee commitment, as well as the impact of this precarious trend on employees, employers, and society at large.

Academically, it will be a reference point for future research in this area of study, adding to the body of existing knowledge in the field of Human Resource Practises as it relates to organisations’ casualized employment practises. The conclusions of this study would benefit employees, employers, and society as a whole.

1.7 SCOPE AND LIMITATIONS OF THE STUDY

The study looked at the impact of casualization on employee engagement among certain Etisalat Nigeria employees in Edo State.

Despite the fact that Casualization affected the whole Nigerian telecommunications sector, the population of this study was limited to Etisalat Nigeria, Benin Centre.

1.8 OPERATIONAL DEFINITION OF TERMS

Precarious life: this is a phenomena that describes people (workers) who are abandoning a life of social and economic instability, which is frequently accompanied by high debt. The “precariat” is a fearful class of people who live in such an unpredictable world.

Casualisation is the corporate tendency of recruiting and retaining people on temporary contracts rather than permanent contracts, even for years, as a cost-cutting tactic.

In Nigeria, casualization refers to labour arrangements that are characterised by poor working conditions such as job insecurity, low wages, and a lack of employment benefits that accrue to regular employees, as well as the right to organise and bargain collectively.

The casualisation model is a process in which companies disregard workplace rules and workers’ social requirements in order to establish a significant barrier to workplace organising.

Formal workers, often known as normal corporate employees, are hired directly by the corporation. They are given contracts that outline their working conditions, salary, hours, and perks.

Casual workers are employees who are frequently engaged by third-party contractors under various sorts of part-time and (or) temporary employment arrangements. They are not affiliated with any union. They are paid less than normal workers, have fewer benefits, and can be fired at any time.

A direct labour contract is an employment arrangement in which a person is hired as an independent contractor.

Service Contract: This is a non-individual contract employment arrangement between a bank and a smaller company that provides specific technological skills.

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