Industrial Relations as a Strategy for Enhancing Organizational Performance

Industrial Relations as a Strategy for Enhancing Organizational Performance

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Industrial relations, which is the matter at stake, is an integral part of management; it is pointless, therefore, embarking or research industrial relations without tracing the point of its conceptual framework, i.e., management, which is the critical element in the coordination and management of employees and work in PAN.

Improving productivity in PAN can be viewed as a part of the strategic management function in developing business policy. Enhancing performance stresses the individuals’ role in Peugeot Automobile Nigeria and industrial relations, which is the core concept of the relationship between employers and employees in the organization to ensure industrial peace and harmony? Industrial relations are all about building a cordial relationship between human beings working in PAN by governing the organization’s affairs favorably and suitably that will benefit both to ensure productivity.

Industrial relations talks about the relationship between the three main industrial actors, the employers, the employees, and the government, and there is a need for the management of resources to foster industrial harmony and develop good industrial relations. The importance of production cannot be overemphasized because they collaborate with other resources to make a business run properly, and thus there is a need for management.

This project will examine industrial relations as a tool and strategy for enhancing organizational performance using Peugeot Automobile Nigeria Kaduna as a research study. To do this effectively, this work will focus attention on aims and objectives, statement of problems, research questions, scope and limitation, and the historical background of Peugeot Automobile Nigeria Limited.

1.2 Statement of the Problem

In organizations, industrial conflict is inevitable. It is said to be the opposition of interest of both the employers and the employees.

On the employer’s part, he is constantly seeking greater output at minimal cost, seeking to lower the wage rate, lengthen the work hours, speed up the worker, and discharge the worker when it is expected of him.

While on the other part, the employee is constantly seeking job security in the best possible condition of service, safety, and comfort in the workplace and a hygienic environment. But most importantly, he wants to interact freely and socially in decision-making that will facilitate growth and productivity in PAN.

In other words, most organizations fail not due to poor planning, policies, or mismanagement but due to management’s inability to keep and maintain industrial harmony within the organization.

Based on the problems highlighted above, it is fundamental for co-existence to realize the organization’s set aims and objectives.

1.3 Objectives of the Study

The study’s main objectives are to know how industrial conflict can be minimized via industrial relations to achieve industrial harmony to enhance performance and productivity in PAN. Such objectives include:

1) To assess the difficulties associated with industrial relations and industrial conflict.

2) To highlight the effectiveness of industrial relations via collective bargaining between both parties.

3) To outline various strategies to facilitate the enhancement and improvement of productivity.

4) To determine production factors as an integral process for improving organizational growth and survival.

1.4 Significance of the Study

This research work will be beneficial to the employers, employees future researchers in such areas as well as the government, as reflected below:

1) The management and employers will benefit because it will save them losses and costs associated with industrial conflicts and strike actions

2) The employees and workers will benefit, primarily through the collective bargaining mechanism, which will allow participation in the organization’s decision-making.

3) This research work will serve as a platform, a foundation for future researchers to build upon towards achieving academic goals.

4) This research work will serve as a guide that can be used by the government to minimize and prevent future industrial disputes and conflicts.

1.5 Research Questions

The following questions are drawn to guide this study.

1) What are the difficulties associated with conflict evolution and resolution?

2) How effective is the relationship between management and workers of the organization? Is it deputation, joint consultation, or collective bargaining?

3) Are there strategies to facilitate the free flow of information and communication between employers and employees towards enhancing productivity?

4) What are the production factors employed by the government to enhance and improve organizational growth?

1.6 Scope of the Study

This research work will cover 2010; it intends to assess difficulties associated with industrial relations, their evolution and resolution, the various ways of improving industrial harmony between employers and employees, and procedures for reaching an agreement. Also, the administration of improving conditions of service for workers and its impacts on organizational performance and growth.

1.7 Limitation of the Study

Despite willingness and desire to provide as much information as possible on the subject matter, some constraints occur, which include?

1) Time constraints or limited time: due to the volume of academic work in school, research of this nature requires adequate time due to its broadness, and the time available for the research is grossly tight. also, the researchers continue to combine the research work with academic activity, limiting the research appropriately.

2) Lack of research materials: the research materials on this project matter are very few. The much-relived library is filled with outdated books, which are of little significance to current research and the cost of new and updated materials is not affordable.

3) Respondents’ cooperation: in response to the research matter, more respondents, over fifty percent, cooperated, but attitudes were not welcoming, particularly the customers of the company, some of which refused to return their questionnaires because they considered them official information as top secrete of the company.

1.8 History of Peugeot Automobile Nigeria Limited Kaduna 

Humans’ desire for comfort has been the genesis of research and development, scientific discoveries leading to growth within their natural habitat and even beyond.

Peugeot Automobile Nigeria Limited, a leading vehicle manufacturer in the country, made its first impact in Nigeria back in 1959. When a set of one hundred (100) units of Peugeot 403 cars were imported by individuals into the country within two years, the product became so popular due to its dependability, reliability, durability, and suitability on Nigerian roads. Hence, it assumed the status of official car for government officials and wealthy businessmen.

This unprecedented achievement caused an increase in the demand for Peugeot cars in the country which led to the appointment of the associated commercial organization Societe commercial De-L’Ouest Africain (SCOA) as the sole distributing agent government in 1959. In 1960 with brand development, the federal government of Nigeria in the early period of the 1970s extended into negotiation with automobile Peugeot of France to set up an assembling plant in the country to produce vehicles for local consumption with the initial ownership structure as follows:

1)  Federal (government) Republic of Nigeria 35%

2) Bank of Industries 5%

3) Automobiles France 40%

4) Kaduna state government 4.7%

5) Katsina state government 5.3%

6) Societe Commerciale De l’ Ouest Africain (SCOA) 5%

7) United Trading Company (UTC)

The second phase of the historical background of PAN takes off from the privatization policy of the federal government of Nigeria. The policy offered great opportunities to indigenous companies to bid for and acquire majority shares in public enterprises. This policy catalyzed a core investor, Messrs ASD Motors Limited, into acquiring a majority share in PAN, leading to its eventual take over of PAN management year 2007. The management change to the current one represents a paradigm shift, which may be described as a new beginning with the current reference to the company as the new PAN. Spelling new hope, challenges, and performance.

The new ownership structure of PAN reflects as follows:

1)  ASD Motors Limited 55%

2)  Federal government of Nigeria 10%

3) Automobiles Peugeot of France 10%

4) Bank of Industries 5%

5) Kaduna state government 4.7%

6) Katsina state government 5.3%

7) Societe Commerciale De’ l’Ouest Africain (SCOA) 5%

8) United Trading Company (UTC) 5%

The new PAN Limited has been restructured to enhance efficient and effective organizational performance and day-to-day activities/operations, which are being overseen by the management team.