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The study sought to evaluate trade unionism and organisational effectiveness (a case study of Nestle Nigeria plc in Lagos). The study adopted the descriptive survey research design with the following objectives: to assess the priority accorded to the welfare of employees in public organisations;

to determine how employees are carried along in policy review and implementation with respect to communication; to evaluate the extent to which quality of negotiation influences employees’ performance; and to appraise the extent to which management-employee relations influences productivity in the organisation.

The study included one hundred and twenty (120) randomly selected respondents from the sample. The study’s data was collected via a self-constructed questionnaire. The questionnaire had twenty (20) items scored on a four-point scale. Trade unionism and organisational effectiveness were assessed using a Likert scale (TUAOE).

The data was analysed using basic percentages and chi-squared. The hypotheses were evaluated at the 0.05 level of significance. The study’s findings revealed that there is a link between trade unions and the provision of welfare measures among workers in an organisation,

that trade unions increase workers’ participation in the management affairs of the organisation, that trade unions ensure the reduction of disputes and the right to dialogue, and that management-employee relationships promote organisational productivity.

The study concluded and recommended that the welfare of employees be considered, top-down communication in the organisation be improved, the quality of negotiation and employee performance be encouraged, and employees be made to participate in critical decisions in order to feel a sense of belonging.Chapter one


1.1 Background for the Study

Nigerian workers, like their colleagues in other developing countries, have seen fundamental shifts in their circumstances throughout time. Trade unions played a crucial part in this development. In most developing nations, the government is the major employer of labour, with private persons employing only a small part of the working class (Fajana, 2000).

In Nigeria, trade unions have emerged as key agents of socioeconomic reform and class conflict (Aremu, 1996; Akinyanju 1997). Trade unions played prominent roles during the colonial fight and continued to do so after independence.

In the latter period, trade unions play an important part in the fight against totalitarian military authority and the restoration of civil governance in the nation.

More notably, during the civilian era, trade unions led the fight against unpopular government policies such as oil sector deregulation, worker layoffs, and refusal to honour wage rise agreements.

Most unions claim exclusivity. The union has the authority to determine who is and is not a member. Most unions claim the authority to require that only their members and no others be authorised to work in certain jobs.

Furthermore, the union contract is exclusive in terms of the employer; an employer is often prohibited from seeking the services of another labour union or hiring another rival labour union, even if he is displeased with the existing labour union’s performance (Fajana, 2000).

These organisations may include individual workers, professionals, former employees, or the jobless. The most prevalent, but far from the only, goal of these organisations is to maintain or improve their employees’ working conditions (Fajana, 2000).

According to Baird (2005), throughout the previous five decades, trade unions have taken on various shapes around the world, driven by different political and economic regimes. The immediate goals and actions of trade unions vary, but may include:

Benefits for members: Early trade unions, such as Friendly Societies, frequently provided a variety of benefits to protect members from unemployment, illness, old age, and funeral expenses.

In many industrialised nations, these functions have been taken over by the state; however, providing professional training, legal counsel, and representation to members remains an important benefit of trade union membership.

Collective bargaining: When trade unions are allowed to operate openly and are recognised by employers, they can negotiate salaries and working conditions.

Industrial action: Trade unions might organise strikes or opposition to lockouts to achieve certain goals.

Political activity: Trade unions may advocate for legislation that benefits their members or the entire workforce. To that purpose, they may run campaigns, lobby, or financially support individual candidates or parties for public office.

Trade unions play an important role in influencing organisational effectiveness in today’s businesses. The exposure of Nigerian firms and industries to greater market pressures,

a growing trend in outsourcing and the growth of traditional employment, employer-sponsored forms of participation and representation, and the imposition of legal constraints on unions’ ability to recruit, organise, collectively bargain, and take industrial action have all contributed to the roles of trade unionism (Yusuf, 2008).

Despite the implementation of various internal tactics and the passage of legislation encouraging companies to recognise unions, the decline in membership by private organisations has persisted in recent years, albeit at a slower pace.

According to Fajana (2000), how unions adapt to the difficulties and opportunities given by changing work and employment relations will determine their level of impact in organisational performance in the next years.

1.2 Statement of Problem

Employee wellbeing is not a priority for most organisations in Nigeria, and most employees in the public sector frequently report low morale as a result of their employers’ uncompetitive welfare packages. This has frequently resulted in misunderstandings between employees and their bosses.

In most public sectors, employees are not properly involved in policy assessment and execution. This breakdown in communication is detrimental to the organization’s overall success since constant dispute with management wastes valuable time and reduces production.

Unions in public organisations frequently negotiate badly with their employers. Instead of making precise and implementable decisions, their agreements are typically ambiguous and generic, making them unable to address efficiency across boards.

Management-employee interactions are a limitation that frequently leads to a breakdown in the law and, as a result, employee downsizing. This results in a significant loss of resources as valuable time is spent pleasing both employers and employees. Hence, the requirement for Trade Unionism and organisational effectiveness.

1.3 The purpose of the study

The study’s objective was to:

ü Evaluate how trade unions assist in providing welfare measures for their members in an organisation.

ü Determine how trade unions advocate for worker engagement in management.

ü Assess the extent to which trade unions assist to lowering industrial conflicts in an organisation.

ü Determine the extent to which management-employee relationships influence organisational productivity.

1.4 Research Questions.

The following research questions were posed during the course of this study:

ü How can a trade union assist in implementing welfare measures for its members in an organisation?

ü Do trade unions call for worker participation in management?

ü To what extent do trade unions help reduce industrial conflicts in an organisation?

ü How do management-employee relationships affect organisational productivity?

1.5 Research Hypotheses.

The following hypotheses were developed and tested in this study.

HO1: There is no major association between trade unions and the supply of welfare benefits for their employees in an organisation.

HO2: There is no substantial association between trade union and the need for worker participation in management.

HO3: There is no significant link between trade unions and a drop in industrial disputes.

HO4: Management-employee relations have no meaningful association with organisational productivity.

1.6 Significance of the Study

The effectiveness of trade unions has been the subject of much debate throughout the years. The impact of these on organisational performance has sparked passionate debate among the educated and the uneducated, the rich and the poor, as well as the country’s elites and aristocrats.

There is a lack of research on the topic matter of this study, hence the study aims to address that gap.

Policymakers would find the academic paper to be an excellent guiding resource when developing policies for managing employee-employer relationships.

Citizens would find the research effort to be an enlightening piece for those interested in learning more about the topic area.

Researchers interested in this field will find the book a useful reference and beginning point for their research.

1.7 Scope of Study

The study conducted research on trade unionism and organisational effectiveness. The study was motivated by the need to numerically assess the extent to which trade unionism influences organisational effectiveness. The study was limited to Nestle Nigeria Plc. in Lagos.

1.8 Operational Definitions of Terms

According to Ivancevich et al. (1994), compensation management encompasses all financial and non-financial rewards received by employees in exchange for their labour or services.

Conflict Resolution: This is an organised method of settling employer-employee problems, which are typically triggered by disagreements about pay packages or overall employee welfare.
Wage: This is the daily or weekly payment made in exchange for employment.

Organisational goals: These are objectives set by an organisation to improve its performance indexes. This could be long or short-term.

Katz and Kahn (1966) define organisation as an integrated social structure with the following three cardinal features:

Reward System: This refers to an organization’s current employee reward structure or system. It is typically directed by organisational policy.

Salary: This is the monthly payment made in exchange for employment.

The terminology below are defined as used in the study.

Individual commitment to the organisation is supported by the ideological reason or principles that underpin the norms and rules.

The members are functionally interconnected.

The norms of behaviour of members are governed by acceptable behaviour set by the authority structure and enforced by reward and sanctions;

Trade unions, often known as labour unions, are organisations of workers. The trade union’s leadership deals with employers on behalf of its members (rank and file members) and negotiates labour contracts with them.

This may include salary negotiations, work regulations, complaint procedures, rules regulating employee hiring, firing, and promotion, benefits, workplace safety, and policies.

The agreements reached by union leaders are binding for rank-and-file members, the employer, and, in some situations, other non-member employees.

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