Employee relationships and organizational performance.A case study of tororo cement factory
Employee relationships and organizational performance.A case study of tororo cement factory
TABLE OF CONTENTS
DECLARATION. i
APPROVAL. ii
DEDICATION. iii
ACKNOWLEDGEMENT. iv
TABLE OF CONTENTS. v
LIST OF TABLES. vi
LIST OF ACRONYMS. vii
ABSTRACT. viii
CHAPTER ONE. 1
1.1 Background to the study. 1
1.2 Statement of the problem.. 2
1.3 Purpose of the study. 3
1.4 0bjective of the study. 3
1.5 Research questions. 3
1.6 The scope of the study. 4
1.6.1 Time scope. 4
1.6.2 Geographical scope. 4
1.6.3 Subject of scope. 4
1.6.4 Significant of the study. 4
CHAPTER TWO. 5
Literature Review. 5
Introduction. 5
2.1 Employee relationship. 5
2.2. Employee relationship techniques. 6
2.2.1 Monetary rewards. 6
2.2.2 Improving the quality of working condition plus job enrichment 6
2.2.3 Promotion, credits for work done and job security create relationship with employees. 6
2.2.4 Formal communication. 7
2.2.5 Employee participation. 8
2.3 Theories of Employee relationship. 8
2.3.1 The human relations approach. 8
Elton mayo theory. 8
Acceptance Theory. 9
Douglas Mc Gregory Theory. 9
2.3.2 The Human resources theorists’ approach. 9
The hierarchy of needs theory. 10
The expectancy theory. 10
Herzberg theory. 10
The Equity theory. 11
2.4 Benefits of employee relationship. 11
2.5 Ways in which managers can create relationships with employees 11
2.6 Organization Performance. 12
2.6.1 Performance. 12
2.6.2 Measures of performance. 13
2.6.3 Characteristic of performing organization. 13
Learning organizations. 13
Individual performance. 14
Total quality management 14
2.7 Managing Organizational performance. 15
2.7.1 Focus of five ES of managing performance. 15
2.7.2 Keep score of achievement and performance. 15
2.7.3 Differentiate on the basis of your customers and employees 16
2.8 Relationship between employees and organizational performance 16
2.9 Conclusion. 17
CHAPTER THREE. 18
METHODOLOGY. 18
Introduction. 18
3.1 Research design. 18
3.2 Survey population. 18
3.3 Sampling design. 18
3.3.1 Simple random sampling. 18
3.4 Sampling size. 19
3.5 Sources of data. 19
3.5.1 Primary data. 19
3.5.2 Secondary data. 19
3.6 Tools of data collection. 20
3.6.1 Questionnaires. 20
3.6.2 Interview guide. 20
3.7 Methods of data collection. 20
3.7.1 Survey. 20
3.7.2 Observation. 20
3.8 Data processing, analysis and presentation. 20
3.8.1 Data processing. 20
3.8.2 Data analysis. 21
3.8.3 Data presentation. 21
3.9 Limitation of the study. 21
CHAPTER FOUR. 23
Presentation of Findings and Discussion. 23
Introduction. 23
4.1 Demographic characteristic on respondents. 23
CHAPTER FIVE. 33
SUMMARY OF THE FINDINGS, CONCLUTION AND RECOMMENDATIONS. 33
5.1 Summary of the findings. 33
5.1.1 Findings on the role of employees in Tororo cement 33
5.1.2 Findings on the level of organizational performance for the last five years. 33
5.1.3 Findings on the relationship between employees and organization performance. 34
5.2 Conclusion. 34
5.3 Recommendations. 34
5.4 Areas of further studies. 34
REFERENCES. 35
APPENDICES. 37
LIST OF TABLES
Table 1 Showing Respondent gender 34
Table 2 Showing Respondents age. 35
Table 3 Showing Respondents education level 35
Table 4 Showing Number of years worked. 36
Table 5 Showing Respondent marital status. 37
Table 6 showing respondent occupation. 37
Table 7 Showing whether the organization performance has increased over the last five years. 38
Table 8 Showing factors that have contributed to organization performance. 39
Table 9 Showing organizational annual turnover 40
Table 10 Showing organization performance is as result of good employee relationships. 40
Table 11 Showing what organization offer to employees to improve relationship and improve performance. 41
Table 12 Showing employee management relationship. 42
Table 13 Finding the relationship between employees and Organization performance. 42
Table 14 Showing calculation between variables. 43
LIST OF ACRONYMS
WWW – World Wide Web
UDC – Uganda Development Corporation
TQM – Total Quality Management
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. www.Tororocement.co.ug
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.
1.6.3 Subject of scope
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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