CHAPTER ONE
INTRODUCTION
1.1 Background
of the study
An
organization is a structural component that is made up of sub-component such as
man, materials and money which work interrelated and interdependently in the
achievement of organizational objective. All these sub-component must work
together before an organization can increase or improve in its performance. But
among them, man which is the employer and the employee must exist in a cordial
relationship between themselves and with the organization so as to enable them
actualized the objective of the organization, manage the materials and money
and also have a satisfactory working environment. Again, the employees in the
organizations are the vital elements an organization should always strive hard
to satisfy because without the employees, the organization would find it
difficult to survive. In that case, the employer in an organization must have a
good employee relation which will help the employees feel relaxed and satisfied
in their workplace.
However,
in context to the prevalent discussion, employee relation is seen as the
fairness, trust, and the harmonious relationship that exist among the employers
and their employees within organization which has a positive effect on
organizational performance (Bingham, 2016). It is also seen in simple terms as
the relationship that exists between the employer and the employee. According
to Muhammed, Sohail, &Riaz (2013) in their research “impact of employee
relation on employee performance in hospitality industry of Pakistan” view
employee relation as a set of organizational functions and practices that deals
with issues related to people as staffing, compensation and benefit,
performance management, organizational development, health and safety,
communication and administration. These means that people separated as staff
should have connections or relationships among each other which will enable
them work together as a team in getting a setting work done. Nevertheless,
employees who have worked so hard need to be compensated and grant benefit that
will make them satisfied in their workplace. In order to determine the
workplace satisfaction of employees, certain variables such as health, safety,
employees’ canteen, compensation, benefit, communication and many other
variables need to be considered so that the organization can improve in its
performance.
Therefore,
an organization can only improve in its performance when the employees that
work in that organization have developed a sense of belonging, and go extra
mile to help the organization prosper. It is against this boundary that this
study seems to investigate the effect of employee relations on organizational
performance using Michelle Pharmaceutical Company as a case study.
1.2 Statement of the Problem
In
recent time, some organizations have been decreasing in its performance due to
inadequate management abilities of employee relations by the human resource
department which is in charge of the employee’s welfare within the
organization. Organizations can only improve in its performance if only a
proper employee relation is adopted and maintained. However, relatively little
has been written about the everyday management strategies involved in
management of the contemporary relationship. Over the years the Chartered
Institute of personnel and Development has undertaken a series of interviews
with human resource professionals that were designed to establish what
significance the term employee relation has for them and their organization.
Nevertheless,
the vital determinants of work place performance are employee relationship which
has been given little, if any priority. The aspect of employee- employee
relations and how it relates to performance has not been given the attention it
deserves by management. This is based on the fact that employees in every
organization should be regarded as the most valuable assets in that
organization. Hence their workplace environment impacts a lot on whether the
organization achieves its goals.
1.3 Objectives of the Study
The
objectives which this study seems to achieve are as follows:
1. To
find out the extent employee relations is practice in this organization.
2. To
determine the components of employee relations the organization gives
attention.
3. To
examine the extent employee relations strategies could be used to improve
performance.
1.4 Research Question
In
the context of this study, the research asks the following questions:
1. What
is the extent of these organizational practices of employee relations?
2. What
are the components of employee relations in this organization?
3. How
can employee relations strategies improve organizational performance?
1.5 Research Hypotheses
The
hypotheses will be testing the significant of the research question base on the
following:
H1 Organizational practices of employee
relation have a positive effect on organizational performance.
H0 Organizational practices of employee
relation have no positive effect on organizational performance.
H1 Employee relations hassome component that significantly affects
organizational performance.
H0 Employee relations
hasno component that significantly affects organizational performance.
H1 Employee
relation strategies has a positive effect on organizational performance.
H0 Employee
relation strategies hasno positive effect on organizational performance.
1.6 Significance of the Study
To the organization,
it will help identify means of having better employee relations. It offers some
useful information about employee relation that can be used for further
scientific research.
To the researcher,
it can contribute to build up researcher’s knowledge and understanding on the
aspect of employee relation by providing awareness to the examined
organizations about employee relation and how it affects organizational
performance.
To the reader,
it will widen his/her knowledge on how employee relation should practice in
organization.
To the employees,
it will help them to know how there can be able to relate with one another
within the organization which will help them in making their work less
stressful and it will also help them to know the better ways to get their work
done more effectively and efficiently.
1.7 Scope
of the Study
The
study was done mainly in Thinkers’ Corner where the researcher was able to get
all the relevant individuals.
1.8 Limitation
of the Study
In
the process of carrying out the study, the researcher encounter the following
difficulties:
Collection of Population Sample: The
researcher found it difficult to collect the population sample from the
proposed company due to some privacy. It was after some series of verification
through a letter submitted to the company by the researcher which serve as a
means of evidence showing that the population were meant for academic purpose
only.
Administration of Questionnaire: The
researcher also at first meet for the distribution of the research
questionnaire through the help of the proposed Company’s Administrative manager
was turned down. It was when the researcher have to go back there with the Head
of Department that the questionnaire was administered and was collected after 1
week and 5 days.
1.9 Definition
of Terms
1.8.1 Employee: These
are the people spending their time, energy working within an organization in
exchange for money. It is a person who is hired to provide services to a
company on a regular basis in exchange for compensation and who does not
provide these services as part of an independent business. It is also
anIndividual who works part time or full time under a contract of employment,
whether oral or written, express or implied, and has recognized rights and
duties.
1.8.2 Employee Relation: It is a tripartite (it
involve the employer, employee and the government) relationship that exists
within an organization. It can also be seen as a relationship between the
employers and the employees which makes the employee to feel comfortable in the
workplace.
1.8.3 Organizational Performance: In the '50s
organizational performance was defined as the extent to which organizations,
viewed as a social system fulfilled their objectives. It can also be seen as
the ability of an organization to exploit its environment for accessing and
using the limited resources.
1.8.4 Job Satisfaction: It
is referred to job satisfaction as the positive feelings and attitudes
employees hold about their jobs.
1.8.5 Performance Management: Performance management
is a systematic process for improving organizational performance by developing
the performance of individuals and teams. It is a means of getting better
results by understanding and managing performance within an agreed framework of
planned goals, standards and competency requirements. Performance management is
defined as a strategic and integrated approach to delivering sustained success
to organizations by improving the performance of the people who work in them by
developing the capabilities of teams and individual contributors.
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