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EVALUATION OF EFFECT OF EMPLOYEES
RELATIONS ON ORGANISATION PERFORMANCE
ABSTRACT
The study focused on
employee relationship and organization performance, a case study of Tororo
cement factory. The purpose of the study were, to examine the role of employees
in Tororo cement factory, to establish the level of organizational performance
in Tororo cement and to find out the relationship between employee relationship
and organizational performance of Tororo cement.
The research design used
was cross sectional, explanatory and descriptive research design. A Sample of
25 respondents was selected by use of Kralje and Morgan (1970). Both primary
and secondary data were used. Data was collected using questionnaires,
interview guide, survey and observation. Data was analyzed using correlations
and multiple regressions Pearson was used to determine relationship between
variables.
The study found that
there is high level of employee
turnover because of lack of motivation, inefficient communication, poor working
condition, and lack of employee participation. The company employs more
professional employees than unprofessional employees.
On the level of
organization performance the poor performance is as a result of poor
relationship with employees. The study also revealed that a positive strong
correlation exists between employee relationship and organization performance
(r=0.8).
The study recommends the
following , Management should improve the working conditions, motivate
employees , Improve communication within the organization and involving
employees in decision making so as to improve relationship with employees to
improve Organization performance.
CHAPTER ONE
1.1 Background to the study
Employee relationship
refers to the relationship between employees and management as a framework of
organizational justice consisting of organizational culture and management
style as well as rules and procedural sequence for grievances and conflict management
indeed, the objective of employee relationship is to achieve harmonious
employee relations and minimize conflict practices in employment. Torrington
and Hall (1998).
Organizational
performance is a function of employee performance .Organization effectiveness
depend on constantly improving the performance of organization members and
maintaining the human potential that serves as the backbone of the organization
Kerning and Jaeger (1990)
Most organizations in an
attempt to increase productivity have come up with motivation of employees
aimed at improving on the organization performance and condition of job, hence
proper performance, Organizations should induce their employees to work hard
towards achieving the business set objectives. This can be done through
provision of incentives Peter Drucker (1999)
Organization renewal is
increasingly perceived to depend not only on management skills in areas such as
finance, production and marketing, but also critically in the intertwined
fields of people management. Armstrong M (1987)
The values, beliefs,
altitudes and behavior of the enterprises employees are held to occupy
strategic roles in corporate success. All organizations which aim at high
performance need to have policy agenda to create relationship with the
employees or working people, which support their business objectives what this
calls for, is to have an employee management relations Sultan Kermally (1997)
Tororo cement factory was
incorporated in December 1952; it was taken over by the Uganda Development
Corporation (UDC) in 1953. The ownership of Tororo cement changed hands at the
end of 1995 to the present owners under the government privatization scheme; it
is well served with infrastructure such as roads, railway and power.
It’s a leading cement
manufacturing company in Uganda located in the eastern part of Uganda its an operating company that deals in
several products such as cement products which includes Portland cement, Portland pozolana , steel
products such as barbed wire . Nails, Nyumba brand chain link. Other products
include roofing nails, twisted round bars and construction steels.
Among the objectives of
Tororo Cement Company is the focus on people. The company seeks to have well
motivated, trained and professional people will contribute fully towards
achieving successful results. In support of this, the company has a fully
fledge human resource department that is charged with the responsibility of
supporting organizational and human resources development policies and maintain
a fit for purpose employee relation climate.
In support of the
employee management relation the company has provided benefit to employees
satisfaction such as operating and maintaining the health center drugs where
trained staffs distributes treated mosquito nets to all employees. The company
imports some of the raw materials such as coal gypsum and iron ore, other raw
materials are available locally.
1.2 Statement of the problem
Employee relationships
are known to play significant roles in fostering organizational performance.
Tororo cement factory is perceived as successful organization within the cement
industry because of the market share its commands. Tororo cement industry is
being characterized by increased cases of staff complains. As it was reported
by the New vision of ( 12 June 2010) over 1000 workers of Tororo cement went on
strike accusing management of failing to implement the mandatory salary wage
review policy agreed with the workers union representatives. The nature of work
in cement manufacture is quite hazardous the process produces dusts,
unfavorable operating temperatures and harsh work and environment conditions,
in addition caused by loud noise emanating from machines used, the employees
are exposed to fine, soft and heavy dust pollution due to complain and it has
resulted into frustration amongst the employees which is affecting the overall
performance of the organization. But management seem not to be bothered by this
and hence a research to find out the impact of employee relation on
performance.
1.3 Purpose of the study
The study was conducted
to establish the relationship between employee relation and organizational
performance in Tororo cement factory.
1.4 0bjective of the study
•
To
examine the roles of employees in Tororo cement factory.
•
To
establish the level of organizational performance in Tororo cement.
•
To
find out the relationship between employee relation and organizational
performance of Tororo cement industry.
1.5 Research questions
1) What are the roles of
employees in Tororo cement factory?
2) What was the level of
performance for the years 2005−2010?
3) What is the
relationship between employee relation and organizational performance of Tororo
cement?
1.6 The scope of the study
1.6.1 Time scope
The study covered years
between 2005−2010 that gave the researcher a true picture and drew up the
rightful conclusion about the topic in question and took place between
February− June 2011.
1.6.2 Geographical scope
The researcher was intending to focus his finding s on the
relationship of employees and organizational performance in Tororo cement
factory which is located in Tororo district in eastern Uganda.
The study focused on
determining how employee relationship as the independent variable affects
organizational performance which is the dependent variable.
1.6.4 Significant of the study
1) The significance of
the study was the provision of knowledge and skills to me a researcher and
gained skills of doing research and came to know the relationship between
variables which was under study
2) Others researchers and
scholars will also use the study as literature review to investigate other
parameters within the same or similar organization.
3) The study will help
the general public to know how the organization relates with its employees in
order to improve their performance.
4) The study was intended
to help the organization understudy to improve performance through good
employee relationship.
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