Influence of Employee Relations on Organization Performance of private universities in Kenya

The quality of the employee’s workplace relationship that most impacts on the level of employee’s motivation and subsequent performance. How well they engage with the organization, especially with their immediate environment that are in most cases their colleagues, influences to a great extent their error rate, level of innovation and collaboration with other employees, absenteeism and, ultimately, how long they stay in the job. The Study was confined within the private universities in Nairobi Central business District.

The study employed a descriptive research design. The target population for this study of target was employees of private universities in Nairobi County at top, middle and lower level of management since they are in a position to give reliable information on Influence of employee relations on organization performance. Stratified random sampling was used to select the population from which a sample 80 respondents was drawn to obtain.

Data was collected mainly by use of questionnaires. SPSS was used to generate the statistical outputs. The study found that industrial relations, employment practices, employment practices, employee communication affect organization performance. The coefficient of determination showed that 56.2% of variations in the organization performance is explained by the independent variables. The study concluded that, that HR department is a key department of the any high profile institution like a university and the institutions need to involve their staff in decision making. The study concluded that there is a positive relationship between the independent variables and dependent variables.

CHAPTER ONE

BACKGROUND TO THE STUDY

1.1 INTRODUCTION

Maintaining healthy employee relations in an organization is a pre-requisite for organizational success. Strong employee relations are required for high productivity and human satisfaction. Employee relations generally deal with avoiding and resolving issues concerning individuals which might arise out of or influence the work scenario. Strong employee relation depends upon healthy and safe work environment, cent percent involvement and commitment of all employees, incentives for employee motivation, and effective e communication system in the organization. Healthy employee relations lead to more efficient, motivated and productive employees which further lead to increase in production level. Over 40 percent of the companies listed in the top 100 of Fortune magazine’s “America’s Best Companies to Work For” also appear on the Fortune 500. While it is possible that employees enjoy working at these organizations because they are successful, the Watson Wyatt WorldwideHuman Capital Index study suggests that effective human resources practices lead to positive financial outcomes more often than positive financial outcomes lead to good practices.

In recent times, while most workers are on job, they do not produce more simply because of the un-healthy relationship they have with their fellow colleagues and employers. A recent study conducted by Blyton (2008) revealed that employees do not put up their best performances at workplaces when they are un-happy with management, government, or even their fellow colleagues. Bad employee-employer relationship results in strike actions and lockouts. All these actions taken by employees to display their grievances only do the organization harm than good as productivity will be reduced drastically.

By many accounts, employee relations today are in crisis. In academia, its traditional positions are threatened on one side by the dominance of mainstream economics and organizational behaviour, and on the other by postmodernism. In policy-making circles, the industrial relations emphasis on institutional intervention is trumped by a neo-liberal emphasis on the laissez faire promotion of free markets.

1.2 OBJECTIVE OF THE STUDY

The main objective of the study is to examine employee relations and its effect on employee productivity. Specific objectives of the study are:

To identify various employee relations practices, and its effect on the productivity of an organization.
To identify the challenges faced by employees at work places.
To identify ways of enhancing healthy relationship between employees and employers in an organization.

1.3 SIGNIFICANCE OF THE STUDY

This study seeks to bring out the various employee relations practices in an organization and the various practices needed to increase its productivity and contribute its quota in the economic development of the communities which it operates, and the country at large. This study will therefore help enlighten management of various organizations of the various effects of relationship practices between employers and employees in an organization. The study will also bring out specifically, the employee relations practices which various organizations use.

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