CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF STUDY

Industrial democracy practices are a vital course for the civil service. The civil service refers to subdivision of government that is neither legislative nor judicial, but constitutes the greatest ratio of the employees in a given economy like rivers state Nigeria. They are primarily bestowed with the mandate to render services to the public. This is so because infrastructure has being provided through the agencies, departments and ministries of the government which puts up action plans that result into progress, and improvement of the quality of life of its citizens. Since government activities are usually personnel intensive (Ingraham and Kneedler, 2000), however these personnel need to perform their duties very important to the performance of the river state government. Therefore it is vital for rivers state government to perceive its human resource as its most important asset. Verburg et al, (1999) explained that organization’s effectiveness is a product of the individual and collective efforts of its employees. Emphasizing on the significance of human resources to an organization, Thomas J. Watson (1996) observed that although funds can be generated and structured, it takes people to build a business. Reiterating the same point, stone (1998) posited that organizations that pursue success through improved structure and productivity depend on how motivated their employees are to perform their task. This is because organizational performance and efficiency is tied to employee performance in an organization.

Consequently, the process of industrial democracy practices brings about the practice going on in an organization and the relationship between employees and management body of union, the government with its several parastatals need to regulate the employee and employment terms and conditions and other activities that borders on the initiation and substance of purposeful work relation which involve applying machinery handling compliant, grievances and disputes in an organization Anugwon (2002). Also, Yesufu (1984) described industrial democracy practice as a whole web of human interactions at work and practices on the matters that arise out of the employment contract.

An interest in industrial democracy (usually termed employee participation in management) has spanned the generations. This is not least because of the strength of the humanistic case for its extension: or as Heller, Pusic, Strauss and Wilpert (1998:8) have recently argued: ‘participation helps satisfy employees’ non pecuniary needs including those for creativity, achievement and social approval. It contributes to a sense of competence, selfworth and self-actualization. It makes use of the whole person.’ The Webbs (1898) produced their monumental treatise on this subject a century earlier and anchored the institutional foundations of industrial democracy in strong trade unions and effective collective bargaining machinery.

1.2 STATEMENT OF PROBLEM

What really instigated the study on industrial democracy and organizational performance is due to poor relationship among employees and the management; most employees are not given a chance in decision making. These may be due to lack of trust in the employee or lack of adequate skills. At the end of the day most employees now hide useful information that may help improve industrial growth and organizational performance. Secondly there have been series of studies on industrial democracy but even a single study has been carried out on industrial democracy and organizational performance in EEDC headquarters Enugu state in Nigeria.

1.3 AIM AND OBJECTIVES OF STUDY

The main aim of the research work is to examine industrial democracy and organizational performance. Other specific objectives of the study are:

1. to determine the relationship between industrial democracy and organizational performance in EEDC headquarters Enugu state in Nigeria
2. to examine the approaches adopted by EEDC headquarters to achieve industrial democracy
3. to investigate on the factors affecting the implementation of industrial democracy in EEDC headquarters, Enugu State
4. to determine the effect of industrial democracy on employees in EEDC headquarters
5. to determine the extent to which EEDC headquarters allow their employees in decision making and representation of the organisation
6. to proffer solution to the above stated problems

1.4 RESEARCH QUESTIONS

The study came up with research questions so as to ascertain the above stated objectives of the study. The research questions for the study are:

1. What is the relationship between industrial democracy and organizational performance in EEDC headquarters Enugu state in Nigeria?
2. What are the approaches adopted by EEDC headquarters to achieve industrial democracy?
3. What are the factors affecting the implementation of industrial democracy in EEDC headquarters, Enugu State?
4. What is the effect of industrial democracy on employees in EEDC headquarters?
5. To what extent do EEDC headquarters allow their employees in decision making and representation of the organization?

1.5 STATEMENT OF RESEARCH HYPOTHESIS

H0: there is no significant relationship between industrial democracy and organizational performance in EEDC headquarters Enugu state in Nigeria

H1: there is significant relationship between industrial democracy and organizational performance in EEDC headquarters Enugu state in Nigeria

1.6 SIGNIFICANCE OF STUDY

The study on the industrial democracy and organizational performance will be of immense benefit to the management of EEDC headquarters in the sense that the study will educate them on the approaches to industrial democracy and ways to achieve organizational performance. The study will also educate them on the need for the involvement of employees in decision making and representation of the organization. The study will serve as a repository of information to other researchers that desire to carry out similar research on the above. Finally the study will contribute to the body of existing literature and knowledge in this field of study and provide a basis for further research

1.7 SCOPE OF STUDY

The study on the industrial democracy and organizational performance will consist of 50 members of staff of EEDC workers at the headquarters. The study will also cover on approaches to industrial democracy and ways to achieve organizational performance.

1.8 LIMITATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work

1.9 DEFINITION OF TERMS

Industrial democracy: the involvement of employees of EEDC headquaters in the running of the organization to achieve organizational performance efficiency.