CHAPTER ONE
INTRODUCTION
Background to the Study
So many researches have been done on finding the new methods on how to increase the commitment of the employees in the organization (Porter, Mowday, & Steers, 1982), as a result of these researches the organizational performance is dependent upon the organizational commitment. All previous studies based employee mainly on the employee self-reports of commitment. Also managers are also contributing towards the commitment of the employees. These contributions are may also has an effect on the allocation of rewards on their behalf. The perseverance of this study was to prepare a solid method to judge the effectiveness of the employee commitment in the organization.
The focus of studying the psychology of the organizations is lower down the subjective assessment techniques in the organizations and to enhance correctness or these measures practically (Murphy & Cleveland, 1991). As a consequence, researchers have been focusing on the behavioral side of employee evaluation through job behavior aspects (Werner, 1994). Extensive, very different and effective side of managerial thinking’s regarding the employees has been found which are not still addressed till now. This found a gap to find out the focus on rewarding employees personal attributes such as employee commitment. Initially, mainly the focus is on the appraisal systems on the personal characteristics that then makes the measures beneficial in the organization (Werner, 1994). As a result, this becomes very significant in apprehending the check on the relationship between managerial perceptions and personal attributes of the employees.
Historically, the term collective bargaining is believed to have been first conceived during the British system of the laissez-faire reign (Ugwu, 2006). This system is believed to have grown and matured over the years and latter became an active part of the voluntarism movement to ameliorate the work conditions of labours and workers. In 1919, the British civil service widely accepted the concept based on “the assumption that people would be bound by the ties of common interest to those on the same level in their place of work” (Ugwu, 2006:160). According to Utit (2008), the objective of collective bargaining is to agree upon an acceptable contract, acceptable management, union representatives and the union members. This concepts has been severally defined and supported by many renowned scholars, the likes of Flippo in 1980, Crance in 1974, Imoistki in 1984, Anadozie in 1987 and Decenzo and Robbin in 1989 among others.
In a general term, the concept can be said to refer to the negotiation, administration and interpretation and explanation of written agreement between two parties that cover a specific period of time. This agreement contract lays out in specific terms the conditions of employment, that is, what is expected of employees and what limits there are on management’s authority. As most of us may have assumed rightly, collective bargaining is most rampantly observed when a contract is about to expire or when negotiations break down. For example, collective bargaining would be very visible in a situation when lecturers in the university carry out peaceful demonstrations to remind university management of a contract or to draw their attention to the need for dialogue; similarly, this is also obvious when a major oil contract in the country is about to expire, collective bargaining is engaged to handle the situation either to extend the contract or to review its strides during the time of operation.
Collective bargaining as a vehicle for establishing, administrating and enforcing unions and management (ILO, website 2017) is still trend as much as labour unions and trade unions are still in existence. This is because parties – labour and management and their relationship can hardly exist without significantly attracting the collective bargaining process. This relationship influences to a high degree, the approach the different parties take to bargaining but regardless of the approach, the step by step bargaining is always in play. That is, both parties must prepare for negotiations by gathering data to support their respective positions (Researchclue.com, 2014).
It is worthy of note the process of collective bargaining ends with collective agreement that reduces all forms of ambiguity to the barest minimum. The collective agreement is a set of conclusion reached between a union on behalf of its members and an employer (or a group of employers) which shall govern the employment conditions of workers. A collective agreement is recognized but the Labour Act of 1974, the Wages Boards and the Industrial Councils Act, 1974 and the Trade Dispute Act, 1976.
Collective bargaining lies at the heart of the personnel process wherever employee-employer relationships involves unions, collective bargaining establishes, administers and enforces agreements between parties. According to Davey (1972) cited in Rose (2008), “collective bargaining is a continuing institutional relationship between an employer entity (government or private) and a labour organization (union or association) representing exclusively a defined group of employees of said employer (appropriate bargaining unit) concerned with the negotiation, administration, interpretation and enforcement of written agreement covering joint understanding as to wages or salaries rate of pay, hours of work and other conditions of employment”. This definition emphasizes the continuing relationship because collective bargaining is ongoing and dynamic. The resolution of problem between union-management is a process of day-to-day living under a negotiated agreement. President influences the outcome of bargaining because demands are often based on past practice within the organization as well as on negotiation settlements on other contracts. The desires and interests of constituents, influence the behavior of spokesman on both sides in bargaining sessions. And bargaining strategy also considers the present and predicted state of the economy and the sentiment of the public on both parties position.
Statement of the Problem
Collective bargaining has been defined as “a process by which the employer or management and the workers or union get to negotiate terms and conditions of employment including procedures of grievance (Etuk, 1995). The process is said to be collective because it replaces the individual worker’s usually feeble attempts to gain improvement for himself, and is instead based upon the cumulative, pooled experience of many workers, thrashed out through their union, coordinated into a single programme, and backed by their collective strength.
Collective bargaining is a good tool for resolving conflict because it allows both parties to the conflict or dispute to carefully prepare and plan their bargaining strategy by assembling data to support their bargaining proposals. Such conflicts occur when one party to the job (usually the employees) becomes dissatisfied either with pay, working conditions, the behavior of a particular supervisor, promotion prospects, job assignments, the way and manner the administration handles and interprets contracts or effects settlement of grievances.
This research was therefore, undertaken to examine the role which collective bargaining plays in union management relationship especially in conflict resolution using Anchor Insurance Company Limited as a case study. The problem of the study is stated thus: how effective is the use of collective bargaining as a tool in developing employees commitment?
Research Questions
In carrying out this research work, the following research questions were developed and used.
Does collective bargaining affect management of Anchor Insurance?
Does your organization have problem associated with collective bargaining in enhancing employees’ commitment?
Does bargaining have any effectiveness in enhancing employees’ commitment in Anchor Insurance Company?
Objectives of the Study
Researchers have shown that contracts are inevitable in organizations and potentially useful, but they must be managed correctly when they occur. This study is conducted to assess the impact of collective bargaining on employee’s commitment in Anchor Insurance Company Limited. However, specific objectives of the research are to:
To examine the effect of collective bargaining and management of Anchor Insurance Company.
To examine the effect of organizational problem associated with collective bargaining in enhancing employees’ commitment.
To examine the effectiveness of collective bargaining in enhancing employees’ commitment in Anchor Insurance Company.
COLLECTIVE BARGAINING: ITS IMPACTS ON EMPLOYEES COMMITMENT A CASE STUDY OF ANCHOR INSURANCE COMPANY LIMITED
