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THE INDUSTRIAL RELATION CLIMATE AND EMPLOYEES SATISFACTION

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

An industrial society is a highly complex and dynamic arrangement of differentiated groups, activities and institutional relationships intertwined with a variety of attitudes, beliefs and expectations. Industrial relations is only one segment of this structure and activity and is influenced by, and in turn influences, other segments. Actions or changes in these areas may directly stimulate or constrain specific industrial relations activities as well as indirectly influence the attitudes of the participant. Industrial climate refers to the background or circumstances surrounding a particular event or situation which may influence or constrain its development. It is the evaluation that workers give to the policies, practices and programs of the organization which also in turn influence their behaviours.

It is important to recognize that these climates exert an influence at all levels of industrial relations and therefore, as Fox (2005) stated, 'organizational issues, conflicts and values are inextricably bound up with those of the society at large'. The role, relationships, institutions, processes and activities which compose the phenomenon of industrial relations exist in a wide variety of industries and services and at number of levels ranging from the sub-organizational (workgroup, section or department) and organizational (site or company) levels through the industry level to the national level. This inevitably creates a pattern of internal influences both horizontally (between different organizations and industries) and vertically (between different levels).

Consequently, the industrial relations system, in terms of attitude and activity existing within it at any point in time, provides its own context or climate for the individual industrial relations situations.

The industrial relations climate comprises of (political, social, economic and technology) which surround industrial relations is composed of a number of interrelated elements and each environment interrelates with other environments and with the industrial relation system. For example, the growth of female employment, and its importance for industrial relations, is closely bound up with; ,changing social patterns and expectations In respect of education, work and family arrangements, changes in industrial structure, technology and the level of economic activity, as well as the introduction of legislation directed towards reducing sex discrimination in employment.

1.2   STATEMENT OF THE PROBLEM

Management can often take for granted labour evaluation of its policies and practices. This is however necessary as such evaluation affects both the substantive and procedural issues in the labour management relations, especially as negotiation is influenced by such evaluation. The manner of handling collective bargaining, grievance, dispute and implementation of collective agreement including its review go a r long way to determine workers satisfaction and dissatisfaction. These in turn influence workers commitment, performance and eventually organisation outcomes in either positive or negative way. That is a climate perceived negatively would result in negative behaviour or less commitment performance in organisation.

1.3   OBJECTIVES OF THE STUDY

It is the intent of this study to explore some relationships that exist between the industrial relations climate and employee satisfaction.

The study will attempt to answer the following questions:

1. To investigate the extent to which management is aware of existing industrial relations climate in the organisation.

2. To assess the extent to which perceived industrial relations climate influence the direction of labour management relationship.

3. To find out how positive industrial relations climate lead to job satisfaction.

4. To find out the influence' of industrial relations climate on workers' commitment.

1.4   RESEARCH QUESTIONS

These are quests that the research seeks to answer. They are as follows:

1.  To what extent do management measure the rate of industrial relations climate of the organization?

2.  Why would industrial relations climate perceived as negative lead to strained relations between management and labour?

3.  To what extent can positive industrial relations climate leads to job dissatisfaction?

4.  To what extent can industrial relations climate influence organizational commitment among workers?

1.5   RESEARCH HYPOTHESE

Ho:   management are not likely to regularly measure existing industrial climate in their organization.

HI:    management are likely to regularly measure existing industrial climate in their organization.

Ho:   the direction of perceived industrial relations climate is likely to be indirectly related to the direction of labour management relations.

HI:    the direction of perceived industrial relations climate is likely to be directly related to the direction of labour management relations.

Ho:   a positive industrial relations climate is not likely to lead to job satisfaction among workers.

HI:    a positive industrial relations climate is likely to lead to job satisfaction among workers'.

Ho:   the direction of industrial relations climate IS indirectly related to the direction of job commitment.

HI:    the direction of industrial relations climate IS directly related to the direction of job commitment.

1.6   SIGNIFICANCE OF THE STUDY

A sound industrial relations climate in an organization is essential to a numbers if Issues which examines the relationships between industrial relations climate and variables reflecting the state of the firms performance, industrial relations structure and over all organizational, outcomes. This study also attempts to highlight the relationship between the above variables and emphasize the importance of conceptualizing industrial relations climate in such a way that can adequately reflect the attitudes and behaviour of industrial actors. However, it ascertains the direct and indirect influences of industrial relations climate and other variables under study on company effectiveness. Finally, the researcher will seek to enlighten scholars, managers and leaders in organizations that the pattern of causality is not simple one but involve reciprocal and feedback relationship. The improvement to the explanatory power of the company effectiveness by including the notion of industrial relations climate is clearly demonstrated.

1.7   SCOPE OF THE STUDY

The study is limited to Chevron Nigeria Limited, Lagos, owing to time and cost consideration. The research will seek to reveal the industrial relations climate on employee satisfaction in Chevron Nigeria Limited, Lagos.

1.8   BRIEF HISTORY OF CHEVRON CORPORATION

Chevron Corporation is a company founded in California (USA) on the 10thof September 1879 by a group of oil explorers and merchants; among whom were Charles N. Felton, Lloyd Tevis and George Loomis. It was then known as pacific Coast Oil Company. The company has undergone many mergers and acquisitions to become Chevron Corporation. Some of the major mergers include the 1984 merger of Standard Oil Company of California (Social) and Gulf Oil Corporation to become Chevron Corporation. In October, 9 2001, Chevron Corporation also merged with Texaco Incorporated to become Chevron Texaco Corporation. A couple of years later, the name was changed again to Chevron Corporation. The mission of the company is to find, produce and sell oil and gas, with a vision of 'being the global energy company most admired for its people, partnership and performance.

The company is operating in over 180 countries globally with a workforce of more than 50,000 people worldwide. Chevron Corporation is committed to operational excellence, and has a high value for safe and reliable performance. The cardinal values in Chevron Corporation are, integrity, trust, diversity, ingenuity, partnership, protecting people and the environment and high performance. The company treasures its diverse workforce and promotes an all-inclusive - environment. The employees are the most valued assets of the company. According to the Chairman of Chevron Corporation, Dave O'Reilly (2008), 'everything at Chevron is secondary to our primary goal - returning everyone home safe to their families each day.

Chevron Nigeria Limited (CNL) is a subsidiary of Chevron Corporation, controlling the Nigeria Mid-Africa Strategic Business Unit (NMA SBU). Chevron Nigeria Limited has a workforce of approximately one thousand, six hundred (1,600). This number steadily grew over the years. The rate of employee turnover in CNL is very minimal with many outsiders striving, to join the workforce. CNL has equally made giant strides in the financial arena. Its profit after taxation quadrupled from 2001 - 2005: increasing from approximately fifteen billion naira (N15 billion) to a little over sixty eight billion naira (N68billion) respectively.

In view of CNL's success story, one can reasonably argue that CNL is a successful corporate performer i.e ability to meet its corporate goals and objectives. Finally, CNL's corporate culture is summed in the phrase, 'the Chevron way', which Dave O'Reilly (2008) explained as "getting results the right way".

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