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Full Project – A SURVEY OF THE DEGREE OF LABOUR RELATIONSHIP EXISTING BETWEEN MANAGEMENT AND EMPLOYEES

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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Anambra State Motor Manufacturing Company Limited is a Joint Venture between Federal Republic of Nigeria and Daimler Benz AG of Germany. The company produces Mercedes – Benz vehicles. It is situated at Emene Industrial Layout along Enugu Airport Road. The company belongs to schedule two of Nigeria Enterprises promotion Act 1977, with 408 foreign equity participation and 60% local.

The company which had over 1,500 labour strength in 1981 has been experiencing difficulties resulting from different government policy measures. This had given rise to series of retrenchments in the organization. The company product ranges from trucks of 5 – 38 metric tons gross weight, MBL 608 D (33 seaters) buses, to MBO 131 (42 seaters) city buses. The company is mainly an assembling plant type. All the parts are obtain from the parents company – Daimler – benz AG of Germany.

The raw materials obtained in Nigeria ranges from 10% to 20% depending on the product. The achievements of the percentage of local contents in made possible due to federal by government policy on local sourcing of raw materials by companies.

The central management of the company is made six major divisions viz managing directors, deputy managing directors, finance and organization managers, technical, marking manager and personnel manager.

The last five divisions report to the managing directors. The issue of accurate definition of productivity and how to measure it in relation to Nigeria workers has not been fully resolved.

Management are group of people entrusted with the day to day administration of an organization. The management direct and control activities of the organization. Their concern is to protect the interest of the investors (shareholders) by ensuring the survival of the organization, there must be mutual trust and co-operation between these two parties for the organization to achieve its objectives.

Incidentally employees and management most often have conflicting objective for employees to achieved the highest price for their product and maximum profit for the shareholders, this objectives include cost control which will result in fair return to shareholders.

According to Akin Oloja, “since the best part of a workers active life is spent in the work place, they should be given the opportunity to share from the organization profit which accumulate through workers effort and labours”.

Employees should recognize managements stand in trying to protect the interest of the investors. The investors only aim is at getting interest on their investment which must be high enough to enable them forgo investment in risk-free areas such as government bonds, debentures, long term investment etc.

Stoner, J. A. F. (1978) said in his human relation theory, that the way managers interact with subordinates, their human aspects of management – employee relationships, industrial relationship and organized bargaining and negotiating between the two. Its main task is to make employees happy so that, they can work cooperatively for optimum production.

Labour / management problems: In an organization where poor human relations attitude exists, employee are not motivated to work towards the achieving organizational goal. If they find their job unsatisfactory, they could develop a lukewarm attitude towards the job, if an employee is unjustly evaluated during performance appraisal the employee’s moral.

1.2 STATEMENT OF PROBLEMS

Human beings have insatiable needs and the urge to satisfy their needs creates problems in business organization. In fact human beings with insatiable needs constitute the workforce of an organization. It is important that problems that will distract them at work are taken care to a reasonable degree before they go off. Problems encountered at the work in any work environment could be either economical, social or political.

It is difficult to determine how cordial the labour relationship between management and employees of Anammco Plc, Enugu. It is also difficult to determine whether the employees of Anammco are well motivated by the management for their increased productivity.

This research work therefore determined the degree of labour relationship between management and employees of Anammco Plc, Emene Enugu.

1.3 PURPOSE OF THE STUDY

The purpose of the study is to:

i. Determine if cordial labour relationship exists between management and employees of Anammco Plc.

ii. Determine the degree of the relationship of Anammco Plc.

iii. Determine if management encounters any problems in maintaining good labour relationship with their workers.

iv. Determine the best strategies to sustain good labour relationship between management and workers of Anammco Plc.

v. Make recommendations on how to maintains good labour relationship between management and employees in any business organization.

1.4 SIGNIFICANCE OF THE STUDY

The finding of this study shall be useful to business organization in determine ways of solving problems of industrial unrest. The project shall also be immense benefit to all prospective employees in business organization to determine various ways through which they related with employees to ensure industrial harmony.

The finding in this study shall also be useful to business administration and managers in designing effective strategies to ideal with their staff to ensure tranquil industrial atmosphere.

1.5 ASSUMPTION OF THE STUDY

The researcher assume in this study that if workers of Anammco Plc are properly motivated. They will happy with management therefore a sound industrial harmony may exist. It is equally assume in this work where workers are not motivated and not giving sense of belonging they will not be happy with management.

Finally, a researcher assume the management of Anammco may have sound policy of human relation which may create forum for dialogue.

1.6 RESEARCH QUESTIONS

The following questions were developed to guide the study.

1. To what extent does cordial labour relationship exist in Anammco Plc Emene, Enugu.

2. To what degree does this labour relationship exist between management and the employees of Anammco Plc Emene Plc?

3. What problem does management encounter in maintaining good labour relationship between workers of Anammco Plc Enugu.

4. What strategies shall be used to ensure good labour relationship between management and employees of Anammco Plc Emene, Enugu.

1.7 DEFINITION OF TERMS

The following terms were explained to guide the understanding of the words.

LABOUR: According to the Advanced learner’s dictionary of English language labour is to work or try hard. Labour used in this project to mean duties which are performs in an organization.

PRODUTIVITY: According to Advanced learner’s dictionary of English language productivity is efficiency, especially in an industry, measured by comparing the amount produced with the time taken.

ORGANISATION: According to Advance learner’s dictionary of English language is the activity of organizing something. It is used in this project as an enterprise set up for the purpose of doing business with the aim of making project.

INVESTOR: According to advanced learner’s dictionary of English language, investor is used in project to mean somebody who have set aside to reasonable of money to start of business with aim of making profit.

1.8 IMPLICATION FOR THE STUDY

The study of degree of labour relationship existing between management and employees of Anammco Plc Emene Enugu will have the implication of establishing standard of relationship that show the exist between management of the business organization and employees of such organization.

The study will also implied that where they has cordial relationship existing between management and employees of Anammco thee may not be national for this study. If ANAMCO Plc has ever witness and bad in industry atmosphere the implication that this study is useful.

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