Tag Archives: Organizational Performance

EMPLOYEE RELATIONS AND ORGANIZATIONAL PERFORMANCE

THE EFFECT OF EMPLOYEE RELATIONS ON ORGANIZATIONAL PERFORMANCE

CHAPTER ONE

INTRODUCTION

1.1     Background of the study

An organization is a structural component that is made up of sub-component such as man, materials and money which work interrelated and interdependently in the achievement of organizational objective. All these sub-component must work together before an organization can increase or improve in its performance. But among them, man which is the employer and the employee must exist in a cordial relationship between themselves and with the organization so as to enable them actualized the objective of the organization, manage the materials and money and also have a satisfactory working environment. Again, the employees in the organizations are the vital elements an organization should always strive hard to satisfy because without the employees, the organization would find it difficult to survive. In that case, the employer in an organization must have a good employee relation which will help the employees feel relaxed and satisfied in their workplace.

However, in context to the prevalent discussion, employee relation is seen as the fairness, trust, and the harmonious relationship that exist among the employers and their employees within organization which has a positive effect on organizational performance (Bingham, 2016). It is also seen in simple terms as the relationship that exists between the employer and the employee. According to Muhammed, Sohail, & Riaz (2013) in their research “impact of employee relation on employee performance in hospitality industry of Pakistan” view employee relation as a set of organizational functions and practices that deals with issues related to people as staffing, compensation and benefit, performance management, organizational development, health and safety, communication and administration. These means that people separated as staff should have connections or relationships among each other which will enable them work together as a team in getting a setting work done. Nevertheless, employees who have worked so hard need to be compensated and grant benefit that will make them satisfied in their workplace. In order to determine the workplace satisfaction of employees, certain variables such as health, safety, employees’ canteen, compensation, benefit, communication and many other variables need to be considered so that the organization can improve in its performance.

Therefore, an organization can only improve in its performance when the employees that work in that organization have developed a sense of belonging, and go extra mile to help the organization prosper. It is against this boundary that this study seems to investigate the effect of employee relations on organizational performance using Michelle Pharmaceutical Company as a case study.

1.2     Statement of the Problem

In recent time, some organizations have been decreasing in its performance due to inadequate management abilities of employee relations by the human resource department which is in charge of the employee’s welfare within the organization. Organizations can only improve in its performance if only a proper employee relation is adopted and maintained. However, relatively little has been written about the everyday management strategies involved in management of the contemporary relationship. Over the years the Chartered Institute of personnel and Development has undertaken a series of interviews with human resource professionals that were designed to establish what significance the term employee relation has for them and their organization.

Nevertheless, the vital determinants of work place performance are employee relationship which has been given little, if any priority. The aspect of employee- employee relations and how it relates to performance has not been given the attention it deserves by management. This is based on the fact that employees in every organization should be regarded as the most valuable assets in that organization. Hence their workplace environment impacts a lot on whether the organization achieves its goals.

1.3     Objectives of the Study

The objectives which this study seems to achieve are as follows:

  1. To find out the extent employee relations is practice in this organization.
  2. To determine the components of employee relations the organization gives attention.
  3. To examine the extent employee relations strategies could be used to improve performance.

1.4     Research Questions

In the context of this study, the research asks the following questions:

  1. What is the extent of these organizational practices of employee relations?
  2. What are the components of employee relations in this organization?
  3. How can employee relations strategies improve organizational performance?

1.5     Research Hypotheses

The hypotheses will be testing the significant of the research question base on the following:

H1     Organizational practices of employee relation have a positive effect on organizational performance.

H0     Organizational practices of employee relation have no positive effect on organizational performance.

H1      Employee relations has some component that significantly affects organizational performance.

H0     Employee relations has no component that significantly affects organizational performance.

H1         Employee relation strategies has a positive effect on organizational   performance.

H0         Employee relation strategies has no positive effect on organizational performance.

1.6     Significance of the Study

To the Organization, it will help identify means of having better employee relations. It offers some useful information about employee relation that can be used for further scientific research.

To the Researcher, it can contribute to build up researcher’s knowledge and understanding on the aspect of employee relation by providing awareness to the examined organizations about employee relation and how it affects organizational performance.

To the Reader, it will widen his/her knowledge on how employee relation should practice in organization.

To the Employees, it will help them to know how there can be able to relate with one another within the organization which will help them in making their work less stressful and it will also help them to know the better ways to get their work done more effectively and efficiently.

1.7     Scope of the Study

The study was done mainly in Thinkers’ Corner where the researcher was able to get all the relevant individuals.

1.8     Limitation of the Study

In the process of carrying out the study, the researcher encounter the following difficulties:

Collection of Population Sample: The researcher found it difficult to collect the population sample from the proposed company due to some privacy. It was after some series of verification through a letter submitted to the company by the researcher which serve as a means of evidence showing that the population were meant for academic purpose only.

Administration of Questionnaire: The researcher also at first meet for the distribution of the research questionnaire through the help of the proposed Company’s Administrative manager was turned down. It was when the researcher have to go back there with the Head of Department that the questionnaire was administered and was collected after 1 week and 5 days.

1.9     Definition of Terms

1.9.1  Employee: These are the people spending their time, energy working within an organization in exchange for money. It is a person who is hired to provide services to a company on a regular basis in exchange for compensation and who does not provide these services as part of an independent business. It is also an Individual who works part time or full time under a contract of employment, whether oral or written, express or implied, and has recognized rights and duties.

1.9.2  Employee Relation: It is a tripartite (it involve the employer, employee and the government) relationship that exists within an organization. It can also be seen as a relationship between the employers and the employees which makes the employee to feel comfortable in the workplace.

1.9.3  Organizational Performance: In the ’50s organizational performance was defined as the extent to which organizations, viewed as a social system fulfilled their objectives. It can also be seen as the ability of an organization to exploit its environment for accessing and using the limited resources.

1.9.4  Job Satisfaction: It is referred to job satisfaction as the positive feelings and attitudes employees hold about their jobs.

1.9.5  Performance Management: Performance management is a systematic process for improving organizational performance by developing the performance of individuals and teams. It is a means of getting better results by understanding and managing performance within an agreed framework of planned goals, standards and competency requirements. Performance management is defined as a strategic and integrated approach to delivering sustained success to organizations by improving the performance of the people who work in them by developing the capabilities of teams and individual contributors.

 

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COMPENSATION MANAGEMENT

THE EFFECT OF COMPENSATION MANAGEMENT ON ORGANIZATIONAL PERFORMANCE

ABSTRACT

The study deals with the investigation of the effect of compensation management in organizational performance: a case study of Copen Group. In today’s work environment, there is more change and uncertainty, there is increased need for empowered employees, there is decline in traditional incentives, there is rise of nontraditional incentives and there is increased use of variable compensation. In organization, compensation is usually narrowed to cash and as a result, employers only have a tunneled vision when it comes to the issues of compensation for their employees. In pursuit of the objectives, a survey research was carried out in the area and the population used for the study was obtained from Copen Group in Enugu. Sample size of 80 was determined using Taro Yamane’s statistical formula. Data were collected using questionnaire and interview and thereafter tables and statistical tools were used for presentation and analysis respectively. Findings of the study indicate revealed that employees’ level of job satisfaction is negatively affected by the fact that their remuneration is not commensurate with the tasks they perform and job security is not guaranteed. The study concludes that COPEN group is one of the vital sectors necessitating the growth and development of Nigerian economy, therefore, it is vital for organisations to embark on effective compensation management policies that will project and promote employees performance. Recommendation from the study states COPEN group should improve their compensation strategy and remuneration to boost employees’ dedication and commitment to efficiently deliver good customer service. This will improve the sector’s image

 

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

Compensation Management is one of the most complex and dynamic issues in organizational performance. For an organization to achieve its stated objectives, there is the need to effectively manage compensation, taken into cognizance one of the core aspect of resource management known as compensation management (Anyebe, 2003). The ability of a manager to achieve its stated objectives to a large extent depends on the effective implementation of compensational packages in order to motivate the subordinates and employees within and beyond their expectation. Compensation Management plays a crucial and functional role because it is the heart beat of human resource management. It is also vital to both employees and the employer (Begbie, Bussin, & Schurink, 2011). This is because employees typically depend on wages and salaries, and must be equivalent to the work done. However, to managers, compensation decisions influence the cost of doing business and thus, their ability to sell at a competitive price in the product market (Barry et al, 1995) It is an obvious fact that effective implementation of favorable compensation management will not only aid in stabilizing and retaining employees but also helps in reducing labour turnover within the organization. Employees’ compensation can be seen as all forms of financial returns and tangible benefits that employees receive as part of an employment relationship. It can be referred to as the totality of the financial and non-financial rewards an employee receives in return for his/her labor or services (Bernadin 2005).

Sola & Ajayi (2001) see compensation management as a process of establishing the structure of wages level for the various positions designing incentive systems, setting individual wages and incentives within the established structures. It is an integral part of human resources management that affects the performance of employees because it establishes the degree of relationship between employer and the employee. The manufacturing sector is one of the sectors responsible for the food and beverage industry. It is one of the sub-sectors of the manufacturing sector but responsible for the manufacturing of daily products, beverages, seasoning, convenience foods confectionaries and staple foods (Harrison, & Liska, 2008).

The turbulent management-labour crisis over continuous agitation for increased pay in the public services all over the world is challenging public sector organizations to utilize their employees more effectively to improve organizational performance (Hewitt, 2009). In Nigerian Civil Services, pay has become the driving force for seeking employment in the industry. It therefore becomes imperative that organizations establish and adopt a compensation system that can motivate employees to work while at the same time not eating too deep into the organization’s resources New Delhi (Chiang, & Birtch, (2008). Remuneration does not simply compensate employees procedures that will attain maximum return on Naira spent in Compensation is payment in the form of hourly wages or annual salary combined with benefits such as insurance, vacation, stock options, etc. that can positively or negatively affect an employee’s work performance. Compensation is the remuneration received by an employee in return for his/her contribution to the organization. It is an organized practice that involves balancing the work-employee relation by providing monetary and non-monetary benefits to employees. Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness (Danish & Usman, 2010).

Employees are pivotal to the achievement of organisational goal and enhancing the competitive advantage of the organisation in the global world and within the industry where the business firm is operating. Hence the leadership role of the employee’s in achieving this cannot be underestimated and to this done adequate measure must be put in place by the organisation through well managed compensation structure (Pearce, 2010). Therefore, compensation management as one of the fundamental functions of human resource department is meant to attract, retain, developed employees toward attaining organisational effectiveness, efficiency and competitive advantage in the globalised world (Adeoye, 2001; Tsai, 2005; Adeoye, Elegunde, Tijani & Oyedele, 2012).

Compensation management is a veritable instrument that affects the decision of job applicants and employees within the organisation. It has aided the firms to achieve their competitive edge over their competitors in the industry (Heneman & Judge, 2000; Ivancevich, 2004; Hyondong, 2006). Furthermore, a lot of monetary resources are invested on crafting, organising as well as administering organisational remuneration arrangement. Despite its vital contribution toward the success and development of the firm, scholars and even practitioners have lamented that there is a slow pace in the advancement of compensation research (Heneman & Judge, 2000; Kersley & Forth, 2005). In most recent times, the plan release cum adoption of reward management, have gone through a major shift that are dramatic in nature. This has reflected the motivational aspect in the employees’ leadership roles and performance (Heneman & Judge, 2000; Purcell et al., 2003).

In the context of organisational effectiveness, leadership roles cannot be underestimated and the critical existence of an organisation is largely anchored on the leadership that exists within the sphere of the firm. It is reiterated that the wire link between the vision, strategic direction and change of the organisation is leadership. Leadership has been in existence for as long as people on earth have co-existed and it is present in all the cultures (Rukmani et al., 2010; Fibuch, 2011). Bontis and Serenko (2009) and Ilies et al., (2006) viewed leadership from the managerial perspective and opined that managerial leadership is the grace to be able to encourage, arouse, mentally excite, propagate, anchor, visibly coordinates the organisational goals, and show good examples to subordinates. Articulate leaders must be ready to give feedbacks about the different aspects of the subordinates’ effort that may have positive result on self-efficacy, job satisfaction, and commitments of employees with focus on areas of improvement (Shea and Howell, 2009; Jawahar, 2006; Bontis & Serenko, 2009).

1.2     Statement of the Problem

In today’s work environment, there is more change and uncertainty, there is increased need for empowered employees, there is decline in traditional incentives, there is rise of nontraditional incentives and there is increased use of variable compensation. In organization, compensation is usually narrowed to cash and as a result, employers only have a tunneled vision when it comes to the issues of compensation for their employees. The company has also attempted to give attention to employee compensation strategies. However, employees themselves have failed to recognize the fact that their compensation is a package and not only related to cash. The byproduct of the above understanding of compensation strategy is that it is managed to a moderate extent and most of the time employee performance could be affected and vice versa. The study therefore sought to address this gap by investigating the effect of compensation management in organizational performance.

1.3     Objective of the Problem

The main objective guiding the study was to investigate the effect of compensation management in organizational performance: a case study of Copen Group

The specific objectives are:

1 to determine the extent at which compensation management affect employee’s performance in Copen Group 

2 To access the rate at which welfare services affect employee’s performances in Copen Group 

3 To explore relationship between compensation management and improved productivity in Copen Group 

4 To explore the relationship between compensation management and retirement of staff in Copen Group 

1.4     Research Questions

1 What is the extent at which compensation management affect employee’s performance in Copen Group?

2 what is the rate at which welfare services affect employee’s performances in Copen Group? 

3 what is the relationship between compensation management and improved productivity in Copen Group? 

4 what is the relationship between compensation management and retirement of staff in Copen Group? 

1.5     Hypothesis

Hypothesis One

Ho: Compensation management does not affect employee’s performance in Copen Group 

Hi: Compensation management affect employee’s performance in Copen Group 

Hypothesis Two

Ho: welfare services does not affect employee’s performances in Copen Group 

Hi: welfare services affect employee’s performances in Copen Group 

Hypothesis Three

Ho:  there is no significant relationship between compensation management and organization

Hi: there is a significant relationship between compensation management and organization

Hypothesis Four

Ho:  there is no significant relationship between compensation management and retirement benefits of staff

HI: there is a significant relationship between compensation management and retirement benefits of staff.

1.6     Scope of the Study

The study covers only Copen Services Limited which is articulated and organised firm with diversified interests in Real Estate, Construction, Services, and Consultancy.

Copen Services Limited is the fruit of the desire of a number of young, honest, knowledgeable and experienced professionals, with over 20 years cognate post-graduation/practical experience in public and private service, to pool together their resources for the service of humanity. 

1.7     Significance of the Study

Compensation management in organization is an important business approach because it can enhance a company’s ability to achieve the ultimate goal and gain competitive advantage over its competitors.

This study is important for organization, employees, academia and even government. Customers will have access to better and qualitative services from the organization. Employees can also have improved conditions of service due to better organizational performance. Organizations can gain in terms of superior performance. The research can also benefit the academia in terms of addition to knowledge.

1.8     Limitation of the Study

There always exist many constraints militating against a good research work. Among these limitations/ constraints include the unwillingness attitude of some individuals and civil servants to come up with relevant information, for some reasons best known to them.

Another constraint is that of reaching to the appropriate respondents. Most of our respondents do not reside where they can be easily reached and this posed a problem for the researcher.

Besides, some of the respondents subjected the researcher to some rigorous bureaucratic process thereby making it hard for the researcher to get some relevant information needed for the study and this also posed a limitation to the researcher.

However, despite these constraints, the research was successfully carried out through persistence and perseverance.

1.9     Definition of Operational Terms

Compensation: The process of concealing or offsetting a psychological difficulty by developing in another direction.

Management: the process of dealing with or controlling things or people

Organization: an organized group of people with a particular purpose, such as a business or government department.

Performance: the action or process of performing a task or function.

Business: A business is an organization or enterprising entity engaged in commercial, industrial or professional activities. A company transacts business activities through the production of a good, offering of a service or retailing of already manufactured products

Profit: a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something

Money: Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context.

Productivity: the effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input.

 

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EMPLOYEE RELATIONS AND ORGANIZATIONAL PERFORMANCE

THE EFFECT OF EMPLOYEE RELATIONS ON ORGANIZATIONAL PERFORMANCE

ABSTRACT

Employee relation is a set of organizational functions and practices that deals with issues related to people as staffing, compensation and benefit, performance management, organizational development, health and safety, communication and administration (Muhammed, Sohail, &Riaz 2013). The main objective of this work is to determine the effect of employee relations on organizational performance in Michelle Pharmaceutical Company, Thinker’s Corner Enugu, Enugu Nigeria. Three research question were formulated to guide the study. The study adopts the scientific management theory, human relation theory, conflict theory and the two factor theory. The population comprises of a random sampling of 171 working staff of which 160 were properly filled and collected. The researcher used a descriptive survey design; data was collected through a questionnaire developed by the researcher. A descriptive statistics was adopted to know the mean, standard deviation and the variance. The values were presented in a table. The research was validated at a significant of 0.05. The study conclude that Michelle Pharmaceutical Company, Thinker’s Corner Enugu, Enugu Nigeria practices employee relation. The study also figured out the component of employee relations of the company and also enlist the strategy of employee relation the company adopt to ensure good organizational performance. It is recommended that organizations should create a work environment that promotes work-life balance and give their employees the flexibility to balance both in the aspects of their life which will improve relations and ultimately create a strong team. The findings of the study are expected to provide a source of information for policy makers, researchers and human resources professionals to understand link between employee relations and organizational performance.

 

CHAPTER ONE

INTRODUCTION

1.1     Background of the study

An organization is a structural component that is made up of sub-component such as man, materials and money which work interrelated and interdependently in the achievement of organizational objective. All these sub-component must work together before an organization can increase or improve in its performance. But among them, man which is the employer and the employee must exist in a cordial relationship between themselves and with the organization so as to enable them actualized the objective of the organization, manage the materials and money and also have a satisfactory working environment. Again, the employees in the organizations are the vital elements an organization should always strive hard to satisfy because without the employees, the organization would find it difficult to survive. In that case, the employer in an organization must have a good employee relation which will help the employees feel relaxed and satisfied in their workplace.

However, in context to the prevalent discussion, employee relation is seen as the fairness, trust, and the harmonious relationship that exist among the employers and their employees within organization which has a positive effect on organizational performance (Bingham, 2016). It is also seen in simple terms as the relationship that exists between the employer and the employee. According to Muhammed, Sohail, & Riaz (2013) in their research “impact of employee relation on employee performance in hospitality industry of Pakistan” view employee relation as a set of organizational functions and practices that deals with issues related to people as staffing, compensation and benefit, performance management, organizational development, health and safety, communication and administration. These means that people separated as staff should have connections or relationships among each other which will enable them work together as a team in getting a setting work done. Nevertheless, employees who have worked so hard need to be compensated and grant benefit that will make them satisfied in their workplace. In order to determine the workplace satisfaction of employees, certain variables such as health, safety, employees’ canteen, compensation, benefit, communication and many other variables need to be considered so that the organization can improve in its performance.

Therefore, an organization can only improve in its performance when the employees that work in that organization have developed a sense of belonging, and go extra mile to help the organization prosper. It is against this boundary that this study seems to investigate the effect of employee relations on organizational performance using Michelle Pharmaceutical Company as a case study.

1.2     Statement of the Problem

In recent time, some organizations have been decreasing in its performance due to inadequate management abilities of employee relations by the human resource department which is in charge of the employee’s welfare within the organization. Organizations can only improve in its performance if only a proper employee relation is adopted and maintained. However, relatively little has been written about the everyday management strategies involved in management of the contemporary relationship. Over the years the Chartered Institute of personnel and Development has undertaken a series of interviews with human resource professionals that were designed to establish what significance the term employee relation has for them and their organization.

Nevertheless, the vital determinants of work place performance are employee relationship which has been given little, if any priority. The aspect of employee- employee relations and how it relates to performance has not been given the attention it deserves by management. This is based on the fact that employees in every organization should be regarded as the most valuable assets in that organization. Hence their workplace environment impacts a lot on whether the organization achieves its goals.

1.3     Objectives of the Study

The objectives which this study seems to achieve are as follows:

  1. To find out the extent employee relations is practice in this organization.
  2. To determine the components of employee relations the organization gives attention.
  3. To examine the extent employee relations strategies could be used to improve performance.

1.4     Research Questions

In the context of this study, the research asks the following questions:

  1. What is the extent of these organizational practices of employee relations?
  2. What are the components of employee relations in this organization?
  3. How can employee relations strategies improve organizational performance?

1.5     Research Hypotheses

The hypotheses will be testing the significant of the research question base on the following:

H1     Organizational practices of employee relation have a positive effect on organizational performance.

H0     Organizational practices of employee relation have no positive effect on organizational performance.

H1      Employee relations has some component that significantly affects organizational performance.

H0     Employee relations has no component that significantly affects organizational performance.

H1         Employee relation strategies has a positive effect on organizational   performance.

H0         Employee relation strategies has no positive effect on organizational performance.

1.6     Significance of the Study

To the organization, it will help identify means of having better employee relations. It offers some useful information about employee relation that can be used for further scientific research.

To the researcher, it can contribute to build up researcher’s knowledge and understanding on the aspect of employee relation by providing awareness to the examined organizations about employee relation and how it affects organizational performance.

To the reader, it will widen his/her knowledge on how employee relation should practice in organization.

To the employees, it will help them to know how there can be able to relate with one another within the organization which will help them in making their work less stressful and it will also help them to know the better ways to get their work done more effectively and efficiently.

1.7     Scope of the Study

The study was done mainly in Thinkers’ Corner where the researcher was able to get all the relevant individuals.

1.8     Limitation of the Study

In the process of carrying out the study, the researcher encounter the following difficulties:

Collection of Population Sample: The researcher found it difficult to collect the population sample from the proposed company due to some privacy. It was after some series of verification through a letter submitted to the company by the researcher which serve as a means of evidence showing that the population were meant for academic purpose only.

Administration of Questionnaire: The researcher also at first meet for the distribution of the research questionnaire through the help of the proposed Company’s Administrative manager was turned down. It was when the researcher have to go back there with the Head of Department that the questionnaire was administered and was collected after 1 week and 5 days.

1.9     Definition of Terms

1.9.1  Employee: These are the people spending their time, energy working within an organization in exchange for money. It is a person who is hired to provide services to a company on a regular basis in exchange for compensation and who does not provide these services as part of an independent business. It is also an Individual who works part time or full time under a contract of employment, whether oral or written, express or implied, and has recognized rights and duties.

1.9.2  Employee Relation: It is a tripartite (it involve the employer, employee and the government) relationship that exists within an organization. It can also be seen as a relationship between the employers and the employees which makes the employee to feel comfortable in the workplace.

1.9.3  Organizational Performance: In the ’50s organizational performance was defined as the extent to which organizations, viewed as a social system fulfilled their objectives. It can also be seen as the ability of an organization to exploit its environment for accessing and using the limited resources.

1.9.4  Job Satisfaction: It is referred to job satisfaction as the positive feelings and attitudes employees hold about their jobs.

1.9.5  Performance Management: Performance management is a systematic process for improving organizational performance by developing the performance of individuals and teams. It is a means of getting better results by understanding and managing performance within an agreed framework of planned goals, standards and competency requirements. Performance management is defined as a strategic and integrated approach to delivering sustained success to organizations by improving the performance of the people who work in them by developing the capabilities of teams and individual contributors.

 

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THE IMPACT OF PROMOTIONAL STRATEGIES ON ORGANIZATIONAL PERFORMANCE

THE IMPACT OF PROMOTIONAL STRATEGIES ON ORGANIZATIONAL PERFORMANCE

CHAPTER ONE

INTRODUCTION

1.1     Background to the Study

In any organization, whether manufacturing or service industry, profit or non-profit oriented, the main purpose of its establishment is to achieve certain goals and objectives of the organization. Most companies today in Nigeria and the world at large operate in an increasing complex and unstable environment. Nigerian Breweries is one of the multinational companies that are involved in the brewing of alcoholic and non-alcoholic drinks. These brewery companies are spread all over the six geo-political zones in Nigeria. These breweries include: Champion Breweries Uyo, Akwa-Ibom state; Golden Guinea Breweries Umuaya Abia state; Guinness Nigeria Plc. Ikeja Lagos state; International Breweries Jos, Plateau State; Nigerian Breweries Plc. Iganmu, Lagos state; Premier Breweries Plc. Onitsha Anambra state; 7UP Bottling Company Plc., Ijora Lagos state. The Nigerian Breweries under this study is the Kakuri branch in Kaduna state.

Competition among these breweries has called for intense application of promotional tools that will appeal to customer for sustainable patronage by each of these breweries. Nigerian Breweries Plc. however, seems to be dominating the market with its numerous products in the past.

Challenges are facing companies to seek the best management and promotional strategies, to grow the company’s performance and increase shareholders value. Excellent companies are known not only by well-conceived promotional outlining where, when and how the companies will compete but also by their ability to execute the promotional decision option selected (Chris Fill, 2006). Appropriate and effective executed promotional strategy are required to productively guide the deployment of available resources where the company promotional abilities in pursue of desired goals and objectives (Michael P., 2002; Chris F., 2006; Rafael, 2014; Ayuba, 2005; Frances & Stephen, 2006; Michael R. Solomon, 1997). The customers are now better educated and the global whole of business today is a very complex one. In order to satisfy the changing need of customers, companies must first know their needs and that is where promotional strategy begins. For a company to survive in today’s competitive market, it has to strategize in satisfying customer’s needs more effectively and efficiently through promotional strategies.

However, promotional strategy is a marketing concept that has to do with the choice of a target market and formulation of the most appropriate promotional mix to influence and persuade the customer’s consumption pattern in order to improve the organizational performance and increase shareholder’s interest (Nzelibe, Moruku and Joseph, 2011).

Promotional strategy is aiming at the target heads of the household as they had the final say on where the disposable income will be spent. Marketing department is also saddled with the responsibility to determine the best promotional strategy to be employed in a given customer demographic environment.

Over the years, some notable authors such as Ayuba (2005), Chris Fill (2006), Akpan (2010) have regarded the promotional mix (advertising, personal selling, sales promotion, public relation and direct marketing) as having such roles as stimulating demand, boosting sales in a particular geographical area, improving profit, increasing market shares, countering competitor’s strategies and retaining customer loyalties and patronage in the organization. It is in line with this that the study was carried out on the impact of promotional strategies (advertising, personal selling and sales promoting) on organizational performance (profit, sales volume, market share and customer loyalty) of Nigerian Breweries.

1.2       Statement of the Problem

There has been a lingering problem in Nigerian Breweries Plc Kaduna regarding the right blend of promotional strategies to be used, at what time, at what place, and to whom?,  to inform and persuade consumers about its products. This problem has resulted to decrease in profit level, sales volume, market share, customer loyalty and profit level (Nigerian Breweries Annual Financial Report, 2003, 2005, 2007, 2010, 2013 & 2015).

Apparently, there has been continuing researches in both the developed and developing countries with respect to the impact of promotional strategies that will inform, persuade, rebuild and restore confidence in customer’s buying pattern (Akpan B.A., 2010; Michael P., 2002; Chris F., 2006; Rafael, 2014; Ayuba, 2005; Frances & Stephen, 2006; Michael R. Solomon, 1997).

We want to investigate how the promotional strategies of advertising, personal selling and sales promotion can persuade customers to patronize the Nigerian Breweries products in order to improve the company sales volume, market share, customer loyalty and eventually profit.

1.3       Research Questions

Based on the above stated research problem, the following research questions have been formulated to guide the investigation:

  1. To what extent can advertising improve the performance of Nigerian Breweries Plc. in terms of profit?
  2. To what degree can personal selling promotes sales volume of Nigerian Breweries Plc.?
  3. How can sales promotion improve market share?
  4. To what extent do promotional strategies enhance customer’s loyalty?

1.4       Objectives of the Study

The main objective of this study is to investigate the impact of promotional strategies on organizational performance of Nigerian Breweries Plc., Kaduna State as a focus. The specific objectives are to:

  1. Examine the extent to which advertising can improve the Nigerian Breweries Plc. profit level.
  2. Determine the degree to which personal selling improves sales volume of Nigerian Breweries Plc.
  3. Investigate the extent to which sales promotion improves market share.
  4. Evaluate the extent to which promotional strategies enhance customer loyalty.

1.5       Statement of Hypotheses

Based on the proposed research problem, research question and the research objectives above, the following null and alternate hypotheses have been postulated:

H01: Advertising does not significantly improve Nigerian Breweries Plc.’s profit level.

H02: Personal selling does not significantly improve the sales volume of Nigerian Breweries Plc.

H03: Sales promotion does not significantly improve the market share of Nigerian Breweries Plc.

H04: Promotional strategies do not enhance customers’ loyalty.

1.6       Significance of the Study

This study is embarked on to determine the impact of promotional strategies on the performance of Nigerian Breweries Plc. Kaduna. It establishes the significant relationship that exist between promotional strategies and Nigerian Breweries performance with the understanding of strategies that best fit Nigeria Breweries manufacturing company for effective performance. This study contributed significantly to the application of three independent variable; advertising, personal selling and sales promotion for organizational performance of sales volume, market share, customer loyalty and profit. However, the study will be of significant value to the following:

Nigerian Breweries Plc. stands to gain or to know the right blend of promotional strategies (advertising, personal selling and sales promotion) that should be used at what time, on the right stage of Product Life Cycle (PLC), to who and the feedback about their product in order to remain relevant in the field of business. If not, competitors will write them off. Also, a research of this nature is not only going to be relevant, but also very significant, especially at the time when every effort is made to increase profit, sales volume, increase in market share of the organization, in other words Nigerian Breweries Kaduna branch stands to gain immensely from the findings and recommendations of this research.

Marketing Managers/Students of Marketing: It enables the marketing managers to understand in-depth of the strategic importance of promotional strategies (advertising, personal selling and sales promotion) to the organization and the need to systematically and strategically plan their promotional strategies campaign program in the light of the limited resources available.

Companies: It also helps companies in building up a sound promotional mix element in order to retain or capture potential or existing customers that will enable them remain relevant in business.

Potential/Existing Customers: Promotional strategy is able to make potential/existing customers aware of their products and services which normally lead to a more effective market, as consumers have more information available to them. Knowledge of a product or services increases consumer choice, leading to stable prices and improve profits, sales volume, market share and so on.

Business Administration: Promotional strategy creates awareness of the laws, responsibilities and consumer service needed to excel e.g. Employee communication, Enrollment and Changes. Reconciliation of provides Billing, Maintenance of employee benefits data also the ethical issues on the promotional mix elements.

Financial Analyst: Promotional strategy help financial analyst to formalize, usually in written form of the marketing plan. The essence of the process is that it moves from the general to the specific, from the vision to the mission, to the goals and to the corporate objectives of the organization, then down to the individual action plan for each part of the marketing program.

General Public: It creates more employment opportunities to the public in various job directly or indirectly e.g. advertisers, sales promotion force, marketers etc. thereby reducing crime in the society. It initiates a process of creating more wants and satisfying consumer on their need and improve higher standard of living.

Government Agencies (FIRS): The government will benefit in terms of taxes to be paid as part of internal fund raising by the government and thereby reducing crime from the society.

1.7    Scope of the Study

This study is restricted to Nigerian Breweries Kaduna. The company was selected because of the representation of companies and consideration of customers within the area coupled with its proximity to the researcher for collection of data for the study. This study covered three elements of promotional strategies namely; advertising, personal selling and sales promotion and four organizational performances namely; profit, sales volume, market share and customer loyalty. The organization under this study is Nigerian Breweries Plc. Kaduna branch. The study used correlation and regression analysis and Likert scale measurement as a tool for data analysis.

The study also covered fifteen (15) marketing years or financial statements 2001 to 2015 owing to the fact that a lot of reforms and Breweries companies have taken place within the period and also to understand the most recent trend in respect to promotional strategy as practiced by Nigerian Breweries in relation to organizational performance. The target respondents are management staff, mostly top management of marketing department, production department, human resources department and customers of the Nigerian Breweries within the area of the study. The study considered the most patronized products of the Nigerian Breweries: such as Goldberg, Gulder, Maltina, Betalmalt, Gold Malt, Maltex, Fayrous, Dubic Malt, Heineken and others (Nigerian Breweries/Customer’s Forum, 2016).

The reason for the study of Nigerian Breweries is that Nigerian Breweries in the Northern part of Nigeria (Kaduna branch), is experiencing decrease in profit, decrease in sales volume, decrease in market share, decrease in customer loyalty in recent time unlike Nigerian Breweries in the Southern part of Nigeria (Lagos). Due to the tradition of the Northerner ,culture and religion play a vital key in their lifestyle because an average Northerner do not consume alcoholic drinks also the complexity of the environment, high concentration  soft drink industry in the area of the study can go a  long way affecting Nigerian Breweries performance. The numerous numbers of product produced by Nigerian Breweries can attract researchers on the management of such products with competitors in the market. The study considered the impact of promotional strategies (that is, advertising, personal selling and sales promotion) on the performance indicators (profitability, sales volume, market share and customer loyalty).

1.8       Limitations of the Study

  1. The unwilling nature of some respondents to timely respond to the questionnaire given to them resulted into uncountable number of repeated visits to the factory. This can be very frustrating. Though some gave reasons for such delays as; lack of time due to their tight official schedules.
  2. The cost and risk associated with transportation and other logistics involved in photocopying, typing among others.
  3. The bureaucratic nature encountered in the course of data collection. This resulted in delay in making data available.

1.9       Definition of Operational Terms

Advertising: is any paid form of non-personal presentation and promotion of ideas, goods and services through mass media such as newspaper, magazine, television or radio by an identified sponsor.

Communication: is the process of establishing a commonness or oneness of thought between a sender and a receiver.

Four P’s of Marketing: these are marketing strategies that are independent variables that determine organizational performances.

Integrated Marketing Communication: is a process of which involve the management and organization of all agents in the analysis, planning and implementation and control of all marketing communication contacts, media, messages and promotional tools focused at selected target audiences in such a way as to derive the greatest economy, efficiency, effectiveness and coherence marketing communication effort in achieving predetermined product ad corporate marketing communication objectives.

Marketing Communication: is a management process through which an organization engages with its audiences.

Marketing Communication Mix: can also be seen as promotional mix.

Market Share: is the percentage of an industry or market’s total sales that is earned by a particular company over a specified time period.

Organizational Performance: refers to organizational developmental indices; which include: organizational profit, sale volume, market share, customer loyalty or increase in customers, increase in earning per-share, increase in organizational size etc. 

Personal Selling: is a two-way communication tool between a representative of an organization and an individual or group, with the intention to inform, persuade or remind them, or sometimes serve them to take appropriate actions.

Profit: is a financial gain especially the difference between the amounts earned and amount spent in buying, operating, or producing something

Promotional Mix: is the combination of the promotional elements such as advertising, personal selling, sales promotion, public relation and direct marketing.

Promotional Strategy: is the use or application of various marketing communication mix that attempts to introduce, build, persuade, inform, and encourage customers of the product or services that is available, which tend to focus on where to get it, how to get it, to whom to get it, its advantages in such a way that it enhances customer benefits and improves organizational performance.

Pull Factor: is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product.

Push Factor: is the use of a company’s sales force and trade promotion activities to create consumer demand for a product.

Sales Promotion: seeks to offer buyers additional value as an inducement to generate an immediate sale.

Sales Volume: the quantity or number of product sold or services provided by a company in a particular period of time.

 

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ASSESSMENT OF THE EFFECT OF EMPLOYEES TRAINING ON ORGANIZATIONAL PERFORMANCE

ABSTRACT

The study focused on the effect of employee training on organizational performance. The process and procedure of identifying employee skill gap in most organizations pose a big challenge to the Human Resource Department (HRD). Employee training is based on various reasons which could be detrimental to the overall objective of the organization. The HRD ensure that sending an employee on training will translate to increase in productivity. Thus, adequate consideration should be taken by the HRD when selecting a candidate for training. The ability to manage and work around the challenges faced when carrying out this HR function will ensure a better training objective that will affect the productivity of the employee and the organization. Since the effect of these factors brings with it some negative implications and consequences of low productivity, high rate of employee turnover and high cost; this study therefore was aimed at identifying the effects of employee training on organizational performance with special emphasis on the process and procedure of selecting employee for training. Pursuant to this, some objectives were formulated by the researcher and these were to ascertain the extent to which unsystematic approach of employee training affects organizational productivity; to determine the extent of effect of training design on employee productivity; to ascertain the extent to which training delivery style affects employee productivity; to determine the relationship between employee perceptions of training and organizational productivity; and to determine the extent to which employee training affects organizational performance. In pursuit of the objectives, a survey research was carried out in Enugu State, Nigeria. The population used for the study was 694 staff of Nigerian Bottling Company and 7UP Bottling Company. Sample size was determined using Yamane (1964) formula. A sample size of 254 was drawn. The study made use of data from primary and secondary sources which were collected using questionnaire administered to the 254 staff of the selected Organizations. Personnel records and annual reports of the selected Organizations were used for secondary data. The data analyses was carried out using the Statistical Package for the Social Sciences (SPSS), while the person product moment correlation coefficient and the one-sample test were used to test the hypotheses formulated in the study. Findings from the study reveal that the extent to which unsystematic approach of employee training affected organizational productivity was high. This was statistically supported by the one-sample test at 0.05 (Zc = 8.246 < Zt = 0.000).  Again, the extent of effect of training design on employee productivity was high. The one-sample test (Zc = 0.679 < Zt = 0.730; a= 0.05) confirms this assertion. The extent to which training delivery style affected employee productivity was high as attested to by the result of one-sample test (Zc = 0.681 < Zt = 0.762; a= 0.05). Similarly, there was a very strong positive relationship between employee perception of training and organizational performance. This is confirmed with the Pearson Correlation coefficient value of 0.948 at 0.05level of significance. The extent to which employee training alone affected organizational performance was low, however, when other variables like training design, training delivery style were considered, its effect became significant. This is confirmed by the one-sample test at 0.05 (Zc = 0.705 > Zt = 0.665). Based on the finding, the study concludes that if the right employees are sent on training through the systematic training procedure of identifying and selecting employees for training, there would be a significant improvement on the organizational performance. Finally, it is recommended that a mechanism should be created for proper assessment and evaluation of employee performance after training as this will ensure that only employees who require training are sent on training.

 

CHAPTER ONE

INTRODUCTION

1.1       Background of the Study

The history of training in business organizations is as long as the entire history of business organizations (Miller, 1996:3). This is because the knowledge base or skills of the normal employees in the labour market is not sufficient for the specialized tasks within the organizations. However, the academic study of various forms of training did not start until about a century ago, when researchers started a branch of research under the name of “vocational training” (Salas and Cannon Bowers, 2001). The beginning of the twentieth century and especially after World War II saw the widespread of training programs among organizations, involving more and more employees and also expanding in content (Luo, 2000). In the 1910s, only a few large companies such as Westinghouse, General Electric, and International Harvester had factory schools that focused on training technical skills for entry-level workers. By the end of 1990, forty percent of the Fortune 500 firms in America had a corporate university or learning center (Meister, 1997).

Training in Nigeria could be traced back to 1960 when it was discovered that most of the top government and business positions were occupied by expatriates (Olalere and Adesoji, 2013). The departure of the whites after independence gave rise to a big vacuum of capable indigenous human capital. This prompted the Federal Government of Nigeria to set up a Manpower Board in 1962 following the Ashby Commissions Recommendations (Olalere and Adesoji, 2013:83). Consequently, the Federal Government of Nigeria established complimentary institutions like the Centre for Management Development (CMD), Administrative Staff College of Nigeria, Industrial Training Fund (ITF), and Federal Training Centre to train and retrain employees as well as give orientation to fresh graduates of formal academic institutions (Olalere and Adesoji, 2013).

Today, we are witnessing an overwhelming number of research studies from both descriptive and prescriptive traditions, focusing on several characteristics of training programs as well as their costs and benefits for business organizations (Becker and Gerhart, 1996). At the same time, organizations have come to better understand the significance of training for their survival in knowledge-intensive and volatile markets of this era, and thus have increasingly acknowledged the profitability of developing their human resources through various forms of training (Berge, 2001; Salas and Cannon-Bowers, 2001). Human resource capital of any organization plays an important role, thus training and retraining helps in fortifying employees (Khan, Khan and Khan, 2011).

Despite the obvious significance of training, the enormous expansion in the content of training programs over time has largely been taken for granted. Some Human Resources Departments rarely question the necessity and appropriateness of training a particular employee at a particular time. Often times, there are ulterior motives why employees are sent on training.  Mourdoukoutas (2012) found out that some of those organizations that neglect employee training do so because of the huge cost of training and the fear of losing those employees after training them.

To show the importance attached to employee training, Nigerian Bottling Company has a training school and 7UP Bottling Company conducts on-the-job and off-the-job training for employees from time to time. This notwithstanding HR Departments in these organizations still face challenges in the selection of employees for training. To assist in the possible improvement of employee training in Soft Drinks Bottling Companies in particular and manufacturing companies in general, the research was embarked upon to investigate the effect of employee training on organizational performance vis-à-vis the processes of employee training and the challenges faced by the Human Resource Department in the selection of employees for training with reference to the employees of Nigerian Bottling Company and 7UP Bottling Company, 9th Mile Corner, Ngwo, Enugu.

1.2       Statement of the Problem

The perception of employees on training has a greater impact on the success of any organization. If the employees are satisfied with the training policies of the organization, this will have a positive impact on the organization’s productivity. The perception or attitude of employees is transformed into positive or negative behaviour. How do the employees see employee training policies of the organization? How seriously does the Management take the Training Policy of its organization? Some see training and development as a waste of time and resources that would have been employed in the production of goods and services that will yield profit to the organization. Sometimes, the fear that an employee could leave the organization after training affects the employees training and sometimes makes it unplanned and unsystematic.

The procedure and process usually adopted by some Human Resource Departments in the identification of those employees that require training are worrisome. Employees sometimes go for training for personal reasons which include enriching themselves; preparing themselves for other positions in other organizations; power play/politics; because he/she knows the person in-charge of training and not necessarily because there is an identified skill gap which needs to be filled through training. Often times, the HR Department does not conduct training needs assessment. Employees’ training selection criteria ought to be systematic and free from bias. It must follow a lay down procedure to ensure that the right candidates are sent for training for positive effect on organizational performance.

It is found that previous researchers have concentrated on the importance and benefits of training and no study has been carried out on the challenges faced by the HR departments of Soft Drink Bottling Companies in the selection of employees for training. In order to fill this gap, the researcher is compelled to conduct a study on the effect of employee training on organizational performance with focus on processes and procedures of identifying skill gaps, training design and delivery style and employee perception towards training in Soft Drinks Bottling Companies in Enugu State.

1.3       Objectives of the Study

The main objective of the study is to investigate the effect of employee training on organizational performance with focus on the processes and procedures of selection employees for training. However, specific objectives of the study are as follows:

  1. To ascertain the extent to which selection procedure of employee for training affects organizational productivity;
  2. To determine the extent of effect of training design on employee productivity;
  3. To ascertain the extent to which training delivery style affects employee productivity;
  4. To find out the relationship between employee perceptions of training and organizational productivity; and
  5. To determine the extent to which employee training affects organizational performance.

1.4       Research Questions

The research questions were drawn in line with the objectives as follows:

  1. To what extent does selection procedure of employee for training affect organizational productivity?
  2. To what extent does training design affect organizational performance?
  3. To what extent does training delivery style affect organizational performance?
  4. What is the relationship between employee perception of training and organizational productivity?
  5. To what extent does employee training affects organizational performance?

1.5       Hypotheses

To achieve the objectives of this study, the following five hypotheses were formulated for testing.

Ho: 1    Selection procedure of employee for training does not have a high effect on organizational productivity.

Ho: 2    The extent to which training design affects organizational productivity is not significant.

Ho: 3    The extent to which training delivery style affects organizational productivity is not significant.

Ho: 4    There is no substantial relationship between employee perception of training and organizational productivity.

Ho: 5    The extent to which employee training affects organizational productivity is not significant.

1.6       Significance of the Study

The significance of this study cannot be over-emphasized and can be viewed from the following perspectives.

  1. The study will help the top management in taking strategic decision that affect training and development for the overall growth of the industry;
  2. Members of Staff of the two manufacturing industries to be used as case study will have adequate knowledge as to the importance of training and why it is necessary that they are trained from time to time;
  3. The study will help the Human Resource Department in proper planning and execution of training and development programmes;
  4. Future researchers will also find this work very useful as reference materials for further studies;
  5. The study will be useful to the researcher as it will help her in actualizing her dream and lead her to the completion of M.Sc. program in Management.

1.7       Scope of the Study

The study focused on the investigation of the effect of employees training on organizational performance. The study was delimited to training and development programmes, employee training design and delivery style, post-training performance evaluation of training on organizational performance.

The geographical scope of the work is Enugu State in the South-east of Nigeria. The only two soft drinks manufacturing companies located in Enugu State were chosen for the study. They are: Nigerian Bottling Company Plc and 7UP Bottling Company Plc.

The field work for this research was conducted between August and September, 2012.

1.8       Limitations of the Study

The following constraints were encountered in the course of this work.

  1. Lack of reliable data: The Respondents’ unwillingness to give out available and reliable data was major constrain in the course of the study.
  2. Dearth of Research materials: The researcher was constrained in the search of research materials. Most current books and journals on the related area are not free, and so the researchers was limited to those materials she could afford.
  3. Measure used to collect data: Secondary data would have been more appropriate for the post-evaluation analysis, but because it was difficult to separate and link percentage (%) increase in turnover to employee training, primary data was used.
  4. Self-reported data: Self reported data was a major limitation of the study, because it rarely can be independently verified. The researcher had to take what the respondents said at face value.

Nonetheless, with available data and judicious use of the limited resources, reasonable analysis was carried out to ensure that research findings add up to the body of knowledge.

1.9       Operational Definition of Terms    

Delivery style     –       This is a set of a systematic processes designed to meet learning objectives related to trainees’ current or future jobs (Simmering, M.J., www.referenceforbusiness.com).

Training design –        This is the process of creating a blueprint for the development of instruction for a training for positive impact (O’Toole, S., eHow Contributor).

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Impact of Workplace Design on Organizational Performance in WAEC, Lagos.

ABSTRACT

This study evaluated Impact of Workplace Design on Organizational Performance in WAEC, Lagos.  The main objective of this study is to examine impact of workplace design on organizational performance of WAEC, Lagos. Other specific objectives are identify the workplace design factors that can affect organizational performance,to check the extent to which good ergonomics practices  can improve  profitability of WAEC, Lagos, to ascertain the extent to which workplace design affect  productivity of employees and to establish the relationship between workstations and organizational performance. The population of the study was represented by total workforce of WAEC,Lagos. The population size was 105.The sample size was determined using Taro-Yamene’s Formular and it was 83.The actual sample size based on those that completed and returned their questionnaires was 75.The research design was survey and descriptive in nature. A structured questionnaire was designed and used to elicit information from the respondents. The use of structured questionnaire(research instrument) was necessitated by the fact that it generates high response rate and it has ability to reduce incidence of bias. A random sampling technique was adopted so as to allow all respondents actual chance of participating in the study. The reliability of the research instrument was tested using Cronbach’s alpha and Cronbach’s alpha coefficient obtained was 0.89.  This shows that the instrument is valid and reliable. The data obtained through the use of research instrument were analyzed using frequency and percentage. The hypotheses were tested using  chi-square(X2). Specifically, SPSS version 22 was used in data analysis. The major findings established were that workplace design factors that can affect organizational performance in WAEC Lagos are organizational culture, organizational structure, desk heights in relation to monitors and key boards, poor seating, lighting ,workflow, space within the workplace, way finding design and temperature amongst others, there is  significant effect of workplace design on organizational performance in WAEC, Lagos, good ergonomics practices can significantly improve   profitability of WAEC, Lagos, workplace design has significant effect on productivity of employees in WAEC and there is significant relationship between workstations and organizational performance in  WAEC. The review of extant literature has shown that workplace design has impact on productivity of employees which crystallizes in overall performance of the organization. This therefore follows that the environment in which the organization operates in terms of workplace can not be toyed with. The identified  workplace designed factors should be made in such away that they should provide the employees a better operating environment so that the work can flow freely for enhanced productivity. Based on the analysis of the data obtained in this study one can safely conclude that workplace design has significant effect  on organizational performance in WAEC. Lagos. It can also be concluded that workplace design affects the productivity of employees in WAEC, Lagos. Based on the conclusions drawn the following recommendations were offered organizations should more than ever before pay attention to their work environment because of the impact it has on their overall performance, they should be mindful of all the workplace design factors that can pose as constraints towards employees’ productivity and make sure they are put in the right perspective, to save costs that may result from  poor employees healthy conditions due to poor seating in relation to monitors and desktops, poor lighting etc, a good ergonomics practices are suggested and organizational culture, structure and issue of motivation should be made to facilitate increase in employees’ productivity so as to result to enhanced corporate bottom line.

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