IMPACT OF EMPLOYEE RELATION ON EMPLOYEE PRODUCTIVITY IN

GRAND CEEAL

BY

CHAKE ANNA ZAKKA

(18/53295D/1)

RESEARCH PROJECT
SUMMITTED TO THE FACULTY OF MANAGEMENT TECNOLOGY ABUBAKAR
TAFAWA BELEWA UNIVERSITY, BAUCHI IN FULFILLMENT OF THE
REQUIREMENT OF BACHELOR DEGREE IN TECHNOLOGY IN BUSINESS
MANAGEMENT

DEPARTMENT OF BUSINESS MANAGEMENT

FACULTY OF MANAGEMENT TECHNOLOGY

SEPTEMBER, 2024

i
 DECLARATION

I hereby declare that this thesis report was written by me and it is a record of my
research work. It has not been presented before in any previous application for a higher
degree. References made to published literature have been duly acknowledged.

……………………………… Date ……………

Chake Anna Zakka
Name of Student

The above declaration is confirmed by

………………………………………………… Date ………………...

Mallam Ahmad Shehu
Supervisor

ii
 CERTIFICATION

This project entitled Impact of Employee Relation on Employee Productivity In Grand

Ceeal meets the regulations governing the award of the bachelor degree of technology of
Abubakar Tafawa Balewa University, Bauchi, and is approved for its contribution to
knowledge and literary presentation.

…………………………………… Date ………………...

Mallam Ahmad Shehu

Supervisor

…………………………………………… Date ……………

Dr. Kabiru I. Musa
Head of Department, Business Management

……………………………………………………… Date ………………

Prof. S. I. Ningi
Dean of faculty, Management Technology

iii
 DEDICATION

This work is dedicated to the Almighty God the author and finisher of my faith, concerning
my academics He started it and He has also bring it to pass.

iv
 ACKNOWLEDGEMENT

I thank God almighty the overseer of my life and my source for giving me the opportunity,

knowledge and the intelligence to complete this study successfully. I thank my able

supervisor, Mallam Ahmad Shehu for His outstanding role in making series of corrections

and constructive criticism in making this work a huge success. I thank the readers for their

critical role and time spent in reading through the lengthy work and making corrections.

I register my special thanks then my beautiful and supportive parents late Mr. Chake Zakka,

may God rest his soul,and Mrs. Chake Hellen, and my precious siblings, Patience, Na'omi

and Linda you all have supported me with a lot of care and support up to my present level of

education.

I also appreciate my dear friends who supported me financially, prayerfully Regina,Mary,

Mercy, Patience, Ada, I thank Mr Shitna'an Tuamyil, -Q.S Livingston , -Mrs Zigwai Ndam

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 ABSTRACT

This study examines the impact of employee relations on employee productivity, focusing on
Grand Cereal as a case study. The research aims to assess how institutional shared goals,
communication, and the absence of damaging conflict influence employee productivity. A
quantitative approach was adopted, using regression analysis to test three hypotheses. The
results indicate that institutional shared goals have no significant effect on employee
productivity, with a p-value of 0.123. However, communication and the absence of damaging
conflict showed significant positive effects on productivity, with p-values of 0.004 and 0.003,
respectively. These findings suggest that while aligning institutional goals with employees
may not directly boost productivity, effective communication and conflict-free environments
are critical in driving higher employee performance. The study contributes to the
understanding of how internal organizational factors impact workforce productivity and
recommends fostering open communication channels and conflict resolution mechanisms to
improve employee relations and, consequently, productivity.
Keywords: Communication, Employee Productivity, Conflicts, Shared Goals, Employee
Relations

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 TABLE OF CONTENTS

Contents

DECLARATION.................................................................................................................................ii

CERTIFICATION..............................................................................................................................iii

DEDICATION....................................................................................................................................iv

ACKNOWLEDGEMENT...................................................................................................................v

ABSTRACT.......................................................................................................................................vi

TABLE OF CONTENTS..................................................................................................................vii

LIST OF TABLES.............................................................................................................................xii

LIST OF FIGURES..........................................................................................................................xiii

CHAPTER ONE..................................................................................................................................1

INTRODUCTION...............................................................................................................................1

1.1 Background of the Study...............................................................................................................1

1.2 Statement of the problem...............................................................................................................4

1.3 Aim and Research objectives...................................................................................................6

1.4 Research Hypothesis......................................................................................................................6

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1.5 Significance of the Study:........................................................................................................7

1.6 Scope of the Study...................................................................................................................7

1.7 Limitation of the Study..................................................................................................................8

1.8 Definition of Terms:................................................................................................................8

1.9 Historical Background of Study Area......................................................................................9

CHAPTER TWO...............................................................................................................................10

LITERATURE REVIEW..................................................................................................................10

2.1 Introduction..................................................................................................................................10

2.2 Conceptual issues.........................................................................................................................10

2.2.1 Employee Productivity.............................................................................................................10

2.2.2 Concept of Employee Relations...............................................................................................12

2.2.3 Institutional shared goals..........................................................................................................13

2.2.4 Institutional communication.....................................................................................................14

2.2.5 Absence of damaging conflicts.................................................................................................15

2.2.6 Factors leading to effective employee relations in the organization........................................17

2.2.7 Employee relationship strength................................................................................................18

2.3 Empirical Review........................................................................................................................18

2.4 Theoretical Framework................................................................................................................20

2.4.1 Human Relation Theory............................................................................................................20

viii
2.4.2 Acquired Needs Theory............................................................................................................22

2.4.3 Anchoring Theory.....................................................................................................................23

2.5 Framework of Study....................................................................................................................24

2.5.1 Impact of Positive Employee Relations on Productivity..........................................................24

2.5.2 Consequences of Poor Employee Relations on Productivity....................................................24

2.5.3 Institutional Shared goals and Employee productivity.............................................................25

2.5.4 Institutional communication and Employee productivity.........................................................26

2.5.5 Absence of damaging conflict and employee productivity......................................................27

2.6 Summary of literature review......................................................................................................27

CHAPTER THREE...........................................................................................................................28

METHODOLOGY............................................................................................................................28

3.1 Introduction..................................................................................................................................28

3.2 Research Design..........................................................................................................................28

3.3 Population of the Study................................................................................................................28

3.4 Sample Technique and Sample Size............................................................................................29

3.5 Sources of Data............................................................................................................................29

3.6 Method of Data Collection..........................................................................................................30

3.6.1 Reliability and Validity of the Research Instrument................................................................30

3.6.2 Reliability of instrument:..........................................................................................................30

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3.6.3 Validity of instrument...............................................................................................................31

3.7 Method of Data Analysis.............................................................................................................31

CHAPTER FOUR..............................................................................................................................32

PRESENTATION OF DATA, ANALYSIS AND INTERPRETATION.........................................32

4.1 Introduction..................................................................................................................................32

4.2 Descriptive Statistics of respondent.............................................................................................32

4.3 Reliability Analysis......................................................................................................................34

4.3.1 Out of Range value...................................................................................................................34

4.3.2 Missing Value...........................................................................................................................35

4.4 Correlation analysis.....................................................................................................................36

4.4.1 Reliability of constructs............................................................................................................36

4.4.2 Linear regression.......................................................................................................................37

4.4.2.1 Normality of dependent variable...........................................................................................37

4.4.2.2 Correlations and Multicollinearity.........................................................................................38

4.5 Data Analysis (Test of Hypotheses)............................................................................................40

4.5.1 Test of Hypothesis One.............................................................................................................40

4.5.2 Test of Hypothesis two.............................................................................................................40

4.5.3 Test of Hypothesis three...........................................................................................................41

4.6 Discussion of Findings.................................................................................................................41

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4.7 Summary of Findings...................................................................................................................42

CHAPTER FIVE...............................................................................................................................43

SUMMARY, CONCLUSION AND RCOMMENDATIONS..........................................................43

5.1 Summary......................................................................................................................................43

5.2 Conclusion...................................................................................................................................44

5.3 Recommendations........................................................................................................................44

REFERENCES..................................................................................................................................46

APPENDICES...................................................................................................................................51

APPENDIX A....................................................................................................................................51

APPENDIX B....................................................................................................................................52

QUESTIONNAIRE...........................................................................................................................52

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 LIST OF TABLES

Table 1: Descriptive Statistics of Respondents (Grand Cereal)

Table 2: Out of Range values

Table 3: Missing Values

Table 4: Reliability Result

Table 5: Correlation Matrix

Table 6: Multicollinearity

Table 7: Regression Result

xii
 LIST OF FIGURES

Figure 2: Normality Test

xiii
 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Employee relations relates to the processes, approaches and methods adopted by employers

to deal with employees either collectively or individually. Managing employee relations is

gaining increasing importance because of the central role of employees in driving

organizational success (Ugoani, 2020). Employee productivity is a key factor in the success

of any organization, and understanding the relationship between employee relations and

productivity will help organizations improve their overall performance. Poor employee

relations could result in employee dissatisfaction, which may lead to high turnover rates,

absenteeism, and low morale, all of which may negatively impact productivity. Good

employee relations can lead to positive outcomes such as increased employee engagement,

motivation, and commitment, which can help organizations achieve their goals and objectives

(Muogbo, Jacob & Chineze 2019). According to Mathis & John (2013), productivity is a

measure of the quantity and quality of work done, considering the cost of the resources used.

The more productive an organization is, the better its competitive advantage. This is because

of the efficiency of the resources that have been used.

According to Nosike and okerekeoti (2022) Employee productivity in these times has been

the major concern of organizations, but the relationship with employees has been given little,

if any priority. The aspect of employee relations and how it relates to productivity has not

been given the attention it deserves by management. This is based on the fact that

1
organizations seems to throw employee relations behind them by not giving it special

attention and priority, as a result, they are still struggling to establish and maintain effective

employee relations, this causes unnecessary disputes in these organizations which in turn

affect their employees in any organization are the most valuable assets in that organization.

Adeniji (2019), opines that poor performance and low productivity is a direct consequence of

inadequate motivation and performance appraisal because performance appraisal and

motivation is not taken very seriously in public organizations. In line with this proposition,

Enyinta, (2011) noted that, there is general apathy on the side of the employers of labour to

reward a worker who is conscientious and dedicated to his duties. Workers more often than

not go on strike resulting to loss of man-hours before they get their due rights a case in point

is the incessant strikes being embarked upon by various government institutions in the recent

years.

Organizations cannot perform better and achieve its objectives if there is a bad relationship

between employees and employer, therefore it is very important for managers to create and

maintain good relationship with their employees. Effective employee and management

relationship is vital to the workplace whether at the time of recruitment, during an

employees’ tenure or at the time of separation (Rose, 2008). Good employer-employee

relations is essential to the organization because it inspires employees to work better and

produce more results (Burns, 2012). The application of human relations in managing human

resource is critical in today’s business competitive environment. Factors such as job

satisfaction is achieved when there is a great working relationship between labor and

management.

In the research of Chinomona (2013) the dimensions of employee relations was identified as

institutional shared goals, institutional communications, and absence of damaging conflict. In

2
the light of the above, the employee relations variables for this study are: institutional shared

goals, institutional communications, and absence of damaging conflict.

The Nigerian economy has been plunged into a state of economic decline since the early

1980's, following the introduction of Structural Adjustment Programme (SAP), by

Babangida's Administration. Since then, productivity improvement has become a major

challenge facing all work and business organizations and the Nigerian economy as whole. 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 (2017) 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.

In the study of employee relations and its effect on employee productivity, there is currently a

debate among about the role of employee voice and participation in shaping employee

attitudes and behaviors towards their work. Lawler (2011) argues that giving employees a

voice and involving them in decision-making processes can lead to higher levels of job

satisfaction, commitment, and productivity. Kira and Krishnan (2019) are of the opinion that

too much employee participation can lead to conflicts and inefficiencies, and that managers

should maintain a more directive approach. There is therefore the need for more empirical

research on the specific mechanisms through which employee relations (Institutional shared

goals, communications, and absence of damaging conflict) influence productivity outcomes.

While there is some evidence that employee relations can lead to positive outcomes, there is

still much we don't know about the conditions under which it is most effective, and the

3
specific mechanisms through which it operates. Hence this gives rise to the study of

Employee relations and its effect on employee productivity.

1.2 Statement of the problem

Many organizations are not recognizing the importance of employee relations in order to

increase their employee's productivity. Past researches proved a positive link between

employee relations and employee productivity, as organizations need employees who can

peacefully work together towards the achievement of the set objectives and goals, and this

can only be achieved if there is a good employee relations in the organization as the

objectives of employee relationship is to achieve harmonious employee relations and

minimize conflict practices in employment. (Folorunso, Adewale. & Abodunde 2014).

There are several issues affecting productivity in grand cereal, some of which include poor

communication, lack of career growth opportunities, and inadequate recognition and rewards

are some of the challenges facing employee productivity in Grand Cereal. Poor

communication between employees and management can lead to misunderstandings,

confusion, and reduced productivity, inadequate recognition and rewards which may lead to

conflict. Employees in Grand Cereal may feel that their contributions are not adequately

recognized or rewarded. This can lead to feelings of frustration, low morale, and reduced

productivity.

Ajayi and Akintoye (2016) have recommended that employers in Nigeria should adopt

flexible working hours, provide opportunities for remote work, and encourage employees to

take breaks and vacations to improve their work-life balance. Adeyemo and Akinbobola,

(2015) in their study of the effect of training and development on Employee Productivity in

Nigeria recommended that employers in Nigeria should provide training and development

4
opportunities to employees, such as mentoring, coaching, and job rotations. This can improve

employee skills and knowledge, boost their confidence, and increase their productivity.

Akinbode and Akintayo (2017) recommended that employers in Nigeria should adopt

recognition and rewards programs to motivate employees and increase their productivity.

These programs can include bonuses, promotions, and public recognition for outstanding

performance.

According to a survey conducted by the Society for Human Resource Management (SHRM)

in 2019, 47% of employees reported that their relationship with their immediate supervisor

was very important to their job satisfaction. Moreover, 89% of employees who rated their

relationship with their supervisor as good or very good reported being satisfied with their job.

On the other hand, employees who rated their relationship with their supervisor as poor or

very poor reported low job satisfaction. Employees with the highest level of commitment

perform 20% better and are 87% less likely to leave the organization. (Lockwood, 2007)

Additionally, a study conducted by the Harvard Business Review found that companies with

high employee engagement had a 19% increase in operating income and a 28% increase in

earnings per share compared to companies with low employee engagement. This suggests

that investing in employee relations can have a positive impact on a company's financial

performance.

However, poor employee relations can have a negative impact on employees' productivity.

According to a study conducted by the University of Warwick, happy employees were 12%

more productive than their unhappy counterparts. This suggests that maintaining positive

employee relations can lead to increased productivity.

5
Although much progress has been made in identifying the most effective solutions to the

challenges facing employee productivity in Nigeria. Several gaps remain, there is a lack of

research that specifically addresses the dimensions of employee relations to productivity such

as Institutional shared goals, communications, and absence of damaging conflict in Grand

Cereal. Therefore, this study fills this research gap and explores these dimensions as possible

drivers for employee productivity.

I.3 Aim and Research objectives

The aim of the study is to determine the impact of employee relation on employee

productivity and this aim shall be achieve with the following objectives:

II. To understand the influence of Institutional shared goals on employee productivity in

Grand Cereal.

III. To determine the effect of Communications on employee productivity in Grand

Cereal.

IV. To analyze effect of Absence of Damaging Conflict on employee productivity in

Grand Cereal.

1.4 Research Hypothesis

I. Ho: Institutional shared goals has no significant affect employee productivity in

Grand Cereal

II. Ho: Communications has no significant effect on employee productivity in Grand

III. Ho: Absence of Damaging Conflict has no significant effect on employee

productivity in Grand Cereal

6
1.5 Significance of the Study:

Academic Significance: The study will serve as a requirement for the award of bachelor

degree in Business Management. It will also aid students and future researchers in related

studies who wishes to investigate further in the subject matter

Practical Significance: It will help in building a strong and sustainable relationship with

employees, and will enhance the modalities/strategies used by the organization to understand

the needs of employees and how to improve them in various ways. The organization will also

learn of various means of training and developing its employees in order to give in their best,

which will lead to the growth of the organization.

Policy Significance: This study will assist policy makers who wishes to get the best from

their employees. This will enable them to formulate effective policies in line with the

findings of this research work and invariably lead to effective organizational growth. The

Nigerian economy and society will at large will benefit from effective and efficient Employee

productivity.

1.6 Scope of the Study

This study focuses on examining the effect Employees Relations and its effect on Employee

Productivity (A Case Study of Jos Grand Cereals Limited Company). Grand Cereal is a well-

established and reputable company with a large workforce. This would allow for a significant

sample size to be studied and potentially provide valuable insights into the relationship

between employee relations and productivity.

The study explained the various Employees Relation Tools which includes Institutional

shared goals, communications, and Absence of Damaging Conflict that can be adopted by

organization and also reviewed the existing investigation of other researchers as well as

7
theories of different authors. The population of this investigation consists of staff of Grand

cereals Limited company.

1.7 Limitation of the Study

Different literatures that are significant have been review for the study purpose in attempt to

give a clear meaning of various variables used in this research. Janes (2018) conducted a

study on the Effect of Employee Relations on Employee Performance and Organizational

Performance-Study of Small Organizations in Tanzania and found a significant relationship

between employee relations and employee performance as well as between employee

relations and organization performance. Ngari (2016) carried out a study on Influence of

Employee Relations on Organization Performance. The study found that industrial relations,

employment practices, employment practices, employee communication affect organization

performance.

Although much progress has been made in identifying the most effective solutions to the

challenges facing employee productivity. Several gaps remain, there is a lack of research that

specifically addresses the dimensions of employee relations to productivity such as

Institutional shared goals, communications, and absence of damaging conflict in Grand

Cereal. Therefore, this study fills this research gap and explores these dimensions as possible

drivers for employee productivity.

1.8 Definition of Terms:

Communication: refers to the extent to which the institution informs employees about

important issues in the organization.

Conflicts: refers to when an employee experiences tension due to perceived differences with

other employees.

8
Shared goals: Shared goal is a reflection of connection among employees and management

towards an important undertaking,

Employee Productivity: is a measure of how efficiently an employee is able to convert their

time and effort into quality work.

1.9 Historical Background of Study Area

Grand Cereals Limited (GCL) is an integrated foods company whose primary activity is the

creation of superior value from local raw materials, with leading brands in the Cereals,

Vegetable Oil and Animal Feed categories. In 1997 UAC of Nigeria Plc acquired a major

shareholding in Grand Cereals Limited, located on a 16-acre site at Kilometre 17, Zawan

Roundabout, Bukuru, Jos South in Plateau State, Nigeria. The company which was

incorporated in 1983, was originally designed to produce baking flour from imported wheat.

Following the ban placed on imported wheat, GCL modified its operation and production

objectives, and today, this growing subsidiary of UACN Plc is steadfastly engaged in many

value-added agricultural-based industrial activities (Meet Grand Cereals Limited’s Directors

– Grand Cereals Limited, 2020.)

9
 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This chapter contains the conceptual, theoretical, and empirical review. It also contains the

gaps highlighted in consonance with the statement of the research problem and the stated

objectives. The conceptual review discussed various concepts and constructs relevant to the

stated objectives of the study. The theoretical review was based on two theories that are

relevant to the topic. The empirical framework reviewed empirical studies in line with the

specific objectives of this study. A critical analysis of the reviewed literature was carried out

and gaps identified were summarized.

2.2 Conceptual issues

2.2.1 Employee Productivity

Productivity is a measure of the performance of an employee and an essential determinant of

cost efficiency. It can be used to examine efficiency and effectiveness of any activity

conducted in an economy, business, government or by individuals (Naveen, and Ramesh,

2015). According to Onah, (2010) in Dialoke, Ukah and Ikoro (2016), productivity is the

driving force behind an organisation’s success and profitability. Productivity is the link

between output of goods/services and employees input.

It is the measure of the input of human and non-human resources used in the production

process. In other words, productivity is the ratio of output to input. The higher the numerical

value of this ratio, the greater the productivity. This implies that when the employees are
10
efficient, they accomplish more in a given time. Organisation productivity is one feature that

determines how effectively its funds are utilized (Kaimahi, 2015). Simpson (2008) opines

that in recent years, there had been several requests to improve productivity in the public

sector which have not been responded to. This is due to the magnitude of the public, which

requires large number of employees and receives funding from the federal government and

the general public. Hence, it is very imperative for the public to get value for resources

expended, hence the need for an effective and vibrant public sector capable of qualitative

service delivery to the citizenry.

Similarly, Kaimahi (2015) argues that productivity in the public sector is interrogated for two

reasons. One of the reasons is that the public sector has been subjected to a variety of reforms

and restructuring over the past fifty years. While majority of these initiatives have been

justified on the basis that they might increase productivity, the experience of many public

servants has been that they have led to redundancy, proliferation of work, and an increase in

activities that do not contribute to public sector productivity. It is also arguable that these

reforms has resulted in lower quality services being delivered to citizens. According to

Pritchard (2002), the second reason why productivity issues are more difficult to deal with in

the public sector is that public sector productivity is difficult to measure. Productivity is

typically measured with regards to the output. It is much more difficult to measure where the

service being provided has no monetary value or where services are provided generically to

wide range of consumers.

2.2.2 Concept of Employee Relations

The concept of employee relations has attracted scholarly definitions since its inception in the

20th century as replacement to the industrial relations. Employee relations are concerned with

creating an enabling work environment for a pleasant interpersonal relationship in the

11
organization which gears towards the effective promotion of the organization goals and

objectives. Donohoe (2015) defines employee relations as the study of the relationship that

exist between employees and the employers. Basically, effective employee relations places

high premium on the human element in the organization, which results in higher employee

engagement, motivation and improved productivity. Pareek and Rai (2012) maintained that

effective employee relations management in an organization enhances confidence, trust and

loyalty amongst employees. To buttress the assertion it is noted that trust and loyalty are

earned by an employer through open communication, regular feedback system and the

delegation of duties to the staff (Janssens, 2013).

The inability of an employer to build trust and respect in their employees will eventually

affect the relationship negatively. According to Nikoloski, Dimitrova, Koleva, and Kacarski

(2014) employer-employee relations is concerned with the provision of information to

employees with regards to the objectives of the organization so that they have a clear

understanding of the direction of management. Effective employee relations focuses also on

creating an open door system in the organization where employees can freely express their

grievances, initiate ideas, suggestions without fear of intimidation and suppression.

Effective employee relationship management requires cooperation between managers,

representatives and employees (Laundon, 2019). This calls for development of policies that

help to maintain fairness and efficiency in the work place. Corporate culture provides a

benchmark of the standards of performance among employees: it provides clear guidelines on

attendance, punctuality, concern about quality, and customer service. Moreover, the

management style of line managers directly affect employee relations, since line managers

are crucial links to the human resource function and orchestrate the distinctive skills,

12
experiences, personalities, and motives of individuals. Good management of employee

relations in any business unit ensures schemes for rewards and recognition, transparent

communication system and proper care towards employee grievances. Good relationships

between employers and employees do not just happen; they are the result of a strategy and

activities that employee relations managers design to improve communication between

employees and management. Employee relations management creates ways to boost

employees' attitudes. Best employee relationship management practices incorporate labor and

employment laws, resourcefulness and human resource expertise in developing practices that

improve working relationships

2.2.3 Institutional shared goals

The essence of a shared goal is that it is a reflection of connection among employees and

management towards an important undertaking (Kantabutra & Avery, 2009). The coherence

help employees understand how work is related across all the departments, levels and units in

the institution as well as aligning the work of employees with the institution’s strategic

direction and priorities (Pulakos & O’Leary, 2011) . According to Koster, Stokman, Hodson

and Sanders (2007) sharing common goals enables employees to direct their efforts to the

achievement of that particular goal, but for that to happen there should be interdependence

and collaboration among employees. Pulakos and O’Leary (2011) recommend that for

employees to know about the organizational goals, management need to encourage informal

and simpler communication processes. This is done to make sure all the employees are aware

of the goals in order to direct their efforts towards the attainment of that goal. Scholars

believe that sharing common goals can positively impact on employee and organizational

outcomes. For example, regarding organizational outcomes, Jing, Avery and Bergeteiner

(2011) contend that organisations which share same goals with workers are likely to

13
outperform their competitors across many business indicators and are able to attract and

retain the best employees for a long time than those which do not have common goals. When

it comes to employee outcomes, Jing et al. (2011) argue that shared goals lead to enhanced

employee satisfaction and organizational commitment which ultimately result in customer

satisfaction. In a similar vein, Jing and Avery (2010) state that the result of shared goals is

trust within the organization, an essential ingredient that will connect employees and

management towards a common goal. This corroborates Kelly’s (2007) sentiments that

sharing common goals is an important condition for knowledge sharing in the organization

and this promotes continuous improvements that enable the business to timely respond to the

changing needs of customers. The foregoing discussion therefore suggests that sharing

common institutional goals can be a source of competitive advantage to institutions of high

learning.

2.2.4 Institutional communication

According to Ng and Feldman (2012), communication in the institution refers to the extent to

which the institution informs employees about important issues in the organization. Such

important issues include business policies, values, mission, strategies, competitive

performance, events, and changes that affect the institution and employees. According to

Noordin, Omar, Sehan and Idrus (2010), communication in the organisation is important

because employees well informed in order to perform well and share ideas with their

colleagues. Institutional communication can be done either formally through formal

structures or informally by means of unstructured procedures (Clmans, 2008). However

informal communication is more credible than the formal one as it allows team flexibility,

open discussion, better flow of ideas and greater efficiency and productivity (Clamns, 2008).

Kelly (2007) and Chew and Entrekin (2011) assert that communication with employees

14
strengthens their identification with the institution and creates institutional solidarity due to

trust among employees or between different departments. Kelly (2007) therefore promotes

open and clear lines of communication within the institution so that there is free flow of

knowledge creation and sharing. Similarly, Mukherji, Francis and Mukherji (2009) state that

useful information should be freely, frequently and informally shared in the institution. For

Noordin. (2010) communication allows interaction among team members and this can happen

in various ways that consist of face-to-face meetings, telephone, e-mails and others.

A healthy employee relationship ensures a positive environment at work and also helps the

employees to achieve their targets at a much faster rate. People are more focused, can

concentrate better in their assignments and hence the output increases. Employees are not

engaged in constant fights, are eager to help each other and do not take work as a burden.

They enjoy each and every moment at work and do not take leaves often. Communication is

not only important in our daily lives but also plays a crucial role at workplace. It is one of the

most important factors which either improves or spoils the relationship among employees.

2.2.5 Absence of damaging conflicts

Conflicts at work happen when an employee experiences tension due to perceived differences

with other employees. According to Brinkert (2010) conflicts between employees show the

incompatibility between the values of employees that result in the possibility of interference

in one’s values. Landry and Vandenberghe (2009) distinguished between two types of

conflicts which are relationship conflicts and task conflicts. The former relates to the

interpersonal differences in styles, values and tastes that lead to tension, annoyance and

animosity between employees.

15
The latter relates to incompatibility in ideas, opinions and viewpoints about the job to be done

for example how to distribute the resources, the interpretation of facts and the procedure of

doing a task. Institutional conflicts threaten one’s self and similarity with others, they reduce

feelings of control and lead to increased uncertainty and hence stress among employees.

Brinkert (2010) warned that if conflicts are not attended to they result in litigation costs, loss

of reputation, lost productivity, damaged team morale, decrease in job satisfaction, damaging

work climate and high employee turnover. Employees therefore need to be liked by their

colleagues in order to enhance their self-esteem (Giebels & Janssen, 2005). It indicates that

institutions need to ensure there is harmony among the employees.

The documented benefits of absence of damaging conflicts are: positive atmosphere that

promotes reduction in stress, conflict related health problems, increased perceived fairness

and job satisfaction, good social behaviours and fewer incidents of aggressive behavior such

as theft and litigation (O’Grady 2014).

Workplace disputes usually needed to be resolved or arbitrated because of a basic conflict:

employers wished to set the terms and conditions of employment for each individual, while

employees and their unions wished to bargain collectively with employers to maintain

improved wages and entitlements. When disputes eventuated, unions would regularly take

strike action, until the State or federal 'umpire' stepped in to resolve the dispute. Many strikes

were actually illegal, yet were rarely stopped by civil penalties and statutory sanctions.

Although workers' wages and conditions improved under conciliation and arbitration,

employers felt that this system of dispute resolution was too costly to business and biased

towards the collective bargaining preference of unions (Kathryn, 2008).

16
2.2.6 Factors leading to effective employee relations in the organization

Gomez (2011) argued that for organizational members to perceive employee relations

management practices positively, the organizational leadership needs to put emphasis on

gaining support from employees, having mutual trust and confidence building, allowing

freedom of association, improving career and salary tracks, retirement benefits, and retaining

measures. Pearce and Robinson (2009) observed that organizations should strive to satisfy

their employees with good pay, good supervision and good stimulating work. Employee

relationship management practices incorporate labour and employment laws, resourcefulness

and human resource expertise in developing practices that improve working relationships.

Lewis, Thorn and Saunders (2003) contended that it is good to involve employees direct in

decisions that go beyond their immediate work tasks and given opportunity to control their

work situation in a manner that benefits the organization also to have a managerial policy

where employees and employers share goals and agree on the means to achieve them, their

involvement is very important because participation in goal setting has been found relating to

acceptance and subsequent commitment to the established goals which leads to favourable

outcomes in terms of performance and attitudes (Harzing & Ruysseveldt, 2004).

According to Shweitzer and Lyons (2008) factors that lead to good employee relations in the

organization include employee empowerment and involvement, initiating employee

suggestions, conflict management and grievance redress measures, facilitating collective

bargaining, expertize training and development, encouraging teamwork and transparency in

communicating. Ivancevich (2011) supported that employee empowerment improves

employee relations because it contributes directly to organizational objectives by increasing

skill sets and granting authority to the employees to make a decision that would traditionally

be made by managers. Employees with open lines of communication with managers are more

likely to build effective work relationships with those managers, increase their organizational
17
identification and enhance their performance which at last contributes to organization

productivity (Tsai, Chuang & Hsieh, 2019).

2.2.7 Employee relationship strength

Strong employee relationships occur when they have close working relationships and have

positive feelings about management and coworkers, when they assist each other and agree on

many issues (Koster et al., 2007; Ng & Feldman, 2012). Furthermore, Holtzhausen & Fourie

(2009) stated that relationships are strengthened when all parties in the relationship have a

desire to provide benefits to others because they are all willing to satisfy the needs of others.

Strengthened relationships among employees create teamwork, improved decision making

capacity, enhanced employee commitment and involvement, increased organizational

collaboration and performance (Gilley, Morris, Waite, Coates & Voliquette, 2010). Similarly,

Simon (2010) have observed the benefits of strong interpersonal relationships which include:

increased access to social support, creation of workplace friendship, sharing and celebrating

achievements together, job satisfaction which spills over onto life satisfaction. In the light of

these benefits, Chen and Tjosvold (2010) maintain that good relationships at work are critical

as they help organisations to share knowledge that will enhance performance.

2.3 Empirical Review

Janes (2018) conducted a study on the Effect of Employee Relations on Employee

Performance and Organizational Performance-Study of Small Organizations in Tanzania. The

study adopted a cross-sectional survey research design and used a stratified random sampling

technique to select a sample size of 387 respondents from selected small organizations in

Tanzania. Data was collected using structured questionnaires and interviews and analyzed

using descriptive statistics and correlation analysis and the results presented using tables. The

18
findings of the study show that small organizations in Tanzania are aware of the benefits of

maintaining good employee relations and correct remedial actions taken to minimize poor

employee relations in the organization. The findings further indicate a positive significant

relationship between employee relations and employee performance as well as between

employee relations and organization performance. The study recommends that small

organizations in Tanzania should focus more on implementing fair labour practices and

building effective and sustainable employee relations that will ensure their growth and

survival.

Jacqueline (2018) carried out a study on the influence of employee relations on employee

productivity in public universities in kenya. The target population included all the HR

workers in selected public universities with a sample of 125 HR employees. Structured

questionnaire was used as the main primary data collection instrument. A regression model

was used to establish the relevant relationships. The findings revealed that most of the

respondents agreed or strongly agreed that employee training has contributed to employee

productivity in public universities in Kenya. It was also established that good compensation

and reward have significant effect on employee productivity.

Kagotho, (2018) also anchored her study on performance appraisal and employee

productivity in the Health sector on expectancy theory and Maslow’s Hierarchy of needs

theory. The research design adopted was a descriptive research design with a population of

250 staff of Gertrude’s Children hospital with the sample population of 100 employees. The

research used questionnaires as the main data collection instrument. The data collected was

analysed using descriptive statistics. The findings from the study indicates that performance

appraisal and performance appraisal feedback are critically important because the process

19
offers organizations a valuable opportunity to measure how each staff in relations to

previously established standards and expectations.

Ngari (2016) carried out a study on Influence of Employee Relations On Organization

Performance, 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.

2.4 Theoretical Framework

This study seeks to explore the relationship between employees’ relations and its effects on

employee productivity in grand cereals limited company. This study is theoretically

supported by Human Relations theory and Acquired Needs Theory. Therefore, the theoretical

underpinning of this study is the Acquired Needs theory.

2.4.1 Human Relation Theory

Human Relations Theory was introduced in 1933 by Elton Mayo. Elton Mayo is generally

seen as the founder of Industrial Sociology and the Human Relations School of business

organization. His research on groups and behavior in work has had direct implications for

management of organizations and for sociology. He studied a spinning mill in Philadelphia

and the Hawthorne works of the Western Electric Company in Chicago. The results of

Professor Elton Mayo's Hawthorne studies proved that the factors most influencing

20
productivity are relationships. The researchers realized productivity increased due to

relationships and being part of a supportive group where each employee's work had a

significant effect on the team output. As a side result, the researchers noticed that the

increased attention the workers received by the researchers increased motivation and

productivity, which resulted in what is the Hawthorne Effect. Human Relations has the

assumption that men have social needs desires rewarding relationships in the work place and

answers more to the peer pressure than to the superiors authority and administrative control

forms its main contribution for management.

The Human Relations Theory by Elton Mayo is highly relevant to studying employee

relations and its effect on employee productivity. This theory suggests that employees are not

just motivated by financial incentives or working conditions, but also by the social and

psychological factors of their work environment.

In the workplace, the Human Relations Theory can be applied by creating a supportive and

collaborative work environment. This can involve providing opportunities for employees to

engage with each other and build strong relationships, such as team-building activities or

social events. It can also involve creating a culture of open communication, where employees

feel comfortable sharing their ideas and concerns with their managers and colleagues.

By implementing the principles of the Human Relations Theory, employers can create a more

positive and productive work environment. Employees who feel valued and supported are

more likely to be engaged and motivated in their work, which can lead to higher levels of

productivity and job satisfaction.

21
2.4.2 Acquired Needs Theory

McClelland, a well-known psychologist at the Harvard University, studied employee's

behaviour. He used the Thematic Apperception Test (TAT) to measure employee motivation

in satisfying various needs and found out that employees craved the need for achievement,

the need for power and the need for affiliation (Kreitner and Kinicki, 1998). The Acquired

Needs Theory focuses on the diversity of people and is rooted in culture. It assumes that

needs are acquired or learned on the basis of our life experiences. When a need is strong, it

will motivate the person to engage in behavior that satisfies that need. Achievement is

represented by the drive to excel, accomplish challenging tasks to achieve a standard of

excellence. Achievement motivation depends on childhood, personal and occupational

experience and even the type of organization. According to this theory some people have a

compelling drive to succeed. They strive for personal achievement rather than for the rewards

of success. They have a strong desire to do something better or more efficiently than it has

been done before.

The Acquired Need Theory by McClelland is highly relevant to studying employee relations

and its effect on employee productivity. This theory suggests that people are motivated by

three basic needs: the need for achievement, the need for power, and the need for affiliation.

In the workplace, employees who have a high need for achievement are driven to excel and

succeed in their work. They are motivated by challenging goals, feedback on their

performance, and opportunities for growth and development. Employees who have a high

need for power are motivated by the ability to influence others and make an impact in their

work. They are often drawn to leadership roles and seek out opportunities to assert their

authority.

22
Finally, employees who have a high need for affiliation are motivated by interpersonal

relationships and a sense of belonging. They thrive in collaborative environments where they

can work closely with others and build strong connections.

Understanding these different needs and motivations can help employers create a more

positive and productive work environment. By providing employees with challenging goals,

recognition for their achievements, and opportunities for growth and development, employers

can tap into their need for achievement and drive higher levels of productivity. Similarly, by

giving employees opportunities to influence others and take on leadership roles, employers

can tap into their need for power and help them feel more engaged and invested in their work.

Finally, by fostering a collaborative and supportive work environment, employers can tap

into employees' need for affiliation and build stronger teams that are more productive and

effective.

2.4.3 Anchoring Theory

The study is anchored on Acquired Need Theory which focuses on individual needs and

motivations, which can help employers design work environments and incentives that are

tailored to the specific needs of their employees. This theory is used to anchor the work as it

provides a framework for understanding what motivates employees and how employers can

create a work environment that meets their individual needs. It is human relations theory

which was developed by Elton mayo as it emphasizes the importance of social and

psychological factors in the workplace, such as positive relationships between employees and

their colleagues and managers. This theory supports the work by providing a framework for

creating a supportive and collaborative work environment that fosters positive relationships

between employees.

23
2.5 Framework of Study

2.5.1 Impact of Positive Employee Relations on Productivity

Enhancing employee relations is essential for improving organizational efficiency and

productivity (Priya, 2022). Establishing a positive work environment that meets employees'

emotional needs is key to enhancing productivity and success within a company (Tiwari et

al., 2022). Improving employee experience should be one of employer’s main priorities.

Doing so can bring quality benefits for the business moving forwards. The impact of such

positive relation is an increase in employee retention: employees will have fewer reasons to

leave and continue their development elsewhere, an increase in output and performance: It's

simple, the happier employees are the more likely they are to work harder, an increase in

employee engagement: Having better communication will lead to employees feeling valued,

involved, and connected, an increase in employee experience: Better relations with

colleagues and their employer can lead to happier employees. It's imp.ortant to ensure

everyone is happy whilst they're at work, an increase in your workplace culture: The more

positive workplace culture, the more productive your employees will be. Having a positive

workplace culture can also help to attract the best talent to your business, an increase in

work-life balance: Positive employee relations will lead to your employees having more

confidence to communicate if they're struggling to cope with work demands (Price, 2024).

2.5.2 Consequences of Poor Employee Relations on Productivity

The effect of the poor labour management relation on productivity in business organisation, is

drawn from the theory of industrial relation because of the way that a few ventures don't

relate appropriately with their employees regarding motivation, incentives and furthermore

24
the needs of their staff. In a situation where workers' needs are not met, the employees may

not put in their best towards the accomplishment of the organisation development and

expansion; no organisation will succeed or advance without the friendly relationship of the

management and workers and furthermore without addressing the needs of the employees

(Muogbo & Jacobs, 2019). Poor employee relations have significant consequences on

productivity within organizations. Research from various contexts highlights that inadequate

employee relations practices lead to decreased performance, motivation, and job satisfaction

(Bwanah & Omondi, 2023;Dlamini et al., 2022).Studies emphasize that a negative

relationship between employees and managers results in reduced productivity, as employees

feel less motivated and dissatisfied with their work environment (Dlamini et al., 2022).

Additionally, neglecting the emotional needs of employees, such as respect, recognition, and

value, can lead to ill-treatment, demotivation, and decreased organizational productivity

(Arimie & Oronsaye, 2020).It is evident that fostering positive employee relations, including

effective communication, support for work-life balance, and creating a conducive work

environment, is crucial for enhancing productivity and overall organizational success (Arimie

& Oronsaye, 2020; Bwanah & Omondi, 2023)

2.5.3 Institutional Shared goals and Employee productivity

Institutional shared goals can have a positive effect on employee productivity. When

employees feel that they are working towards a common goal with their colleagues and the

organization, they are more likely to be motivated and engaged in their work(Burns, 2012).

This sense of shared purpose can also foster a sense of teamwork and collaboration, which

can lead to better communication and more efficient work processes. When an organization

has clear and well-communicated goals that are shared among all employees, it provides a

sense of direction and purpose for everyone. This can lead to increased motivation,

25
engagement, and commitment among employees, which in turn can positively impact their

productivity.

Furthermore, Chinomona (2013) stated that when employees understand how their individual

work contributes to the larger goal of the organization, they may feel a greater sense of

meaning and purpose in their work. This can lead to increased job satisfaction and a greater

sense of fulfillment, which can in turn lead to higher levels of productivity.

Overall, when an organization establishes and communicates a clear set of shared goals and

values, it can help to align employees' individual efforts with the overall objectives of the

organization. This can lead to a more engaged, motivated, and productive workforce.

2.5.4 Institutional communication and Employee productivity

Clear and open communication can provide employees with a better understanding of their

roles, responsibilities, and expectations. When employees have a clear understanding of what

is expected of them, they are more likely to be productive and efficient in their work

(Osborne & Hammoud 2017). Effective communication helps to reduce misunderstandings,

conflicts, and errors in the workplace. When employees are able to communicate effectively

with each other and with their managers, they can clarify expectations, resolve issues, and

work collaboratively to achieve common goals. This can lead to increased productivity and

improved work quality.

According to Chukwuyem (2018), Communication helps to create a positive work

environment that fosters trust, respect, and engagement among employees. When employees

feel that their ideas and opinions are valued and heard, they are more likely to be motivated

and committed to their work, which can lead to increased productivity.

26
2.5.5 Absence of damaging conflict and employee productivity.

According to Chinomona (2013), when employees work in an environment where there is no

damaging conflict, they are more likely to be productive and efficient in their work. The

absence of damaging conflict in the workplace can have a positive effect on employee

productivity. When employees feel safe and valued in their work environment, they are more

likely to be engaged and motivated to perform their job duties, they can focus on their work

without the distraction of interpersonal conflicts and office politics. This can lead to increased

efficiency, better communication, and improved teamwork.

Additionally, when employees feel appreciated and supported, they are more likely to go

above and beyond their job requirements, leading to higher levels of productivity. Overall,

the absence of damaging conflict in the workplace creates a positive work environment that

can lead to improved employee morale, motivation, and productivity.

2.6 Summary of literature review

This chapter captures the literature on effect of the employee relations elements (Institutional

shared goals, Institutional communication, and absence of damaging conflict,) and Employee

Productivity. For this research, several concept such as concept of Employee Relations,

Factors leading to effective employee relations in the organization, Concept of Productivity

in Organisations, Two theories relevant to this study were reviewed, (Human Relation

Theory Acquired Needs Theory), several empirical studies were also reviewed, as well

gaps highlighted which shows the rationale / justification for the study.

27
 CHAPTER THREE

METHODOLOGY

3.1 Introduction

This study examines employees relations and its effects on employee productivity in grand

cereals limited company. This chapter presents a comprehensive plan with regards to how the

study was conducted, methods employed, and the methods used for data analysis. In this

chapter, the research design, population, sample size, sampling technique, instrument for data

collection and instrument for data analysis are discussed.

3.2 Research Design

According to Creswell (2009), there are three philosophies of research design, which are

quantitative, qualitative and mixed method. For the purpose of this study a quantitative

research method was employed, using causal survey design. This research adopts a causal

relationship to give an in-depth analysis to determine employees’ relations and its effects on

employee productivity in grand cereals limited company.

3.3 Population of the Study

According to Nworgu (2006) “Population is the totality of any group, person or objects which

is defined by some unique attributes”. This is to say that population is any group of being the

researcher has focused attention on and chosen as approved topic of study.

For this research 160 population will be use in alignment with the population table of Krejcie

and Morgan (1970)

28
3.4 Sample Technique and Sample Size

Sample techniques is the method or techniques that the researcher used to obtain a

representative sample. Simple random sampling technique was adopted, in view of its nature

of being unbiased, since each member of a population has an equal chance of being chosen

(Simkus 2022)

Sample size can interpreted as the total number of respondents which was selected to answer

a research questions, the Krejcie and Morgan table a number of items that represent the total

population d Morgan table

Thus N = 160.

s = 113

3.5 Sources of Data

According to Kothari (2004) a researcher should consider methods of data collection, primary

source and secondary source. For this research, primary data source would be employed.

Primary data refers to data obtained from first-hand experience. One advantage of using

primary data is the fact that it allows the researcher to gather specific information that

addresses the objectives of the research.

The study used primary data to examine employees relations and its effects on employee

productivity in grand cereals limited company. This was obtained through the use of a close-

ended 5 point Likert scale questionnaire.

3.6 Method of Data Collection

The researcher utilized questionnaire as the data collection instrument. The questionnaire was

divided into two section i.e. section A and section B. part A deals with demographic

29
information about the respondents such as age, sex, education background, and occupation,

while part B consists of questions measuring employees relations and its effects on employee

productivity in grand cereals limited company with five point likert scale answers, ranging

from 1= strongly disagree, 2 = disagree, 3= Undecided, 4= agree, and 5= Strongly Agree.

Hence the structural form of questionnaire was employed. The questions used to obtain

information from the respondents were worded to be capable of finding out employees

relations and its effects on employee productivity in grand cereals limited company.

3.6.1 Reliability and Validity of the Research Instrument

The study tests the validity and reliability of the research instrument to ensure instrument

measure what it should measure and established the consistency or dependability of a

measurement technique.

3.6.2 Reliability of instrument:

The reliability of the constructs was tested and one way of testing the reliability between the

items in each factor is through the Cronbach’s alpha test. The Cronbach’s alpha is based on

the average inter-item correlation. According to Pallant (2005), a scale with a Cronbach’s

alpha higher than 0.7 is required in order to create a reliable construct of multiple variables.

3.6.3 Validity of instrument

Validity is the extent to which an instrument captures what it is supposed to capture and

performs as it is designed to perform. Validity is important because it helps determine what

type of tests to use, and helps to make sure researchers use methods that are appropriate.

Validation involves collecting and analysing data to assess the accuracy of an instrument

(Creswell 2009). There are tests and measures that apply to assess the validity which includes

30
construct validity, content validity, criterion-related validity and face validity. For this study,

the researcher adopted the face validity.

3.7 Method of Data Analysis

This study adopted the Regression Analysis. Regression Analysis is applied when predicting

an ordinal variable. This will be done using SPSS version 25 for the analysis. The formula

of the Regression Analysis are given as:

Y = a + bx1 + bx2 + bx3 + bx4 + µi

Where in our case:

Y = Employee productivity

X1 = Institutional shared goals

X2 = Communications

X3 = Absence of Damaging Conflict

a = Intercept

b = Slope (coefficient)

Decision Criteria: If the P-value is more than the level of significance at 0.05, it means that

we fail to accept H0 and accept the alternate.

31
 CHAPTER FOUR

PRESENTATION OF DATA, ANALYSIS AND INTERPRETATION

4.1 Introduction

This section explained the data presentation, analysis and interpretation. The chapter showed

that data was collected through the administration of questionnaire using 5-point Likert scales.

Preliminary study was conducted which are out of range value test, missing value and normality

tests, to validate the data and how reliable it is for this study. Consequently, descriptive statistics

(descriptive and correlation) and Regression were applied for the test of the hypotheses. A total

of one hundred and sixteen (116) copies of questionnaire were administered and only hundred

and twelve (112) questionnaire were retrieved giving a sample response rate of 96.5%.

4.2 Descriptive Statistics of respondent

By understanding these characteristics, Grand Cereal can create more targeted and effective

employee relations strategies that foster productivity across different demographics. This

research aims to explore how these factors, along with employee relations, influence

productivity in the company

Table 1: Descriptive Statistics of Respondents (Grand Cereal)

Variable Sub variable Frequency Percentage (%)

Gender Male 74 65%

Female 39 35%

Age Group 21-39 years 62 55%

40-49 years 39 35%

50-59 years 9 8%

32
 60 years and above 2 2%

Educational Level BSc 67 60%

MSc 33 30%

PhD 11 10%

Total Respondents 113 100%

Table 1 shows that out of the 113 respondents at Grand Cereal, the majority are male (65%),

while 35% are female. This gender distribution could influence various aspects of employee

relations, as research often highlights differences in communication styles, work preferences,

and employee satisfaction between genders. Understanding these dynamics can help shape

effective employee relations strategies to enhance productivityThe largest age group falls

between 21 and 39 years (55%), followed by those aged 40-49 years (35%). The relatively

young workforce could indicate a high level of adaptability to new organizational policies

and practices. Employee relations strategies focusing on skill development, career

advancement, and inclusive communication could be effective in maintaining productivity

across age groups. A significant proportion of respondents hold a BSc (60%), with 30%

having an MSc and 10% holding a PhD. The diverse educational backgrounds reflect a

workforce with varying levels of expertise and knowledge. Employee relations initiatives at

Grand Cereal could benefit from recognizing the need for continuous professional

development, mentorship, and tailored employee engagement programs to align with their

educational qualifications.

33
4.3 Reliability Analysis

4.3.1 Out of Range value

The data collected through the administration of questionnaire are coded based on the range of

values from the questionnaire options. It is expected that the data does not exceed the expected

range. For instance, this study adopted the five-point Likert scale. This means that all the value

range for this study is 1-5. Any value outside this range may bias the result. Therefore, out-range

value test was conducted to ensure that there are no out of range values. Table 1 shows that there

are no out of range values.

Table 2: Out of Range values

N Minimum Maximum Mean Std.

Deviation
Q1 113 1.00 2.00 1.3404 .47898

Q2 113 1.00 3.00 2.0426 .69023

SHA1 113 1.00 5.00 3.6304 .90330

SHA2 113 1.00 5.00 3.9149 .90481

SHA3 113 1.00 5.00 4.1064 .93795

COM1 113 2.00 5.00 3.9787 .60754

COM2 113 3.00 5.00 4.2553 .70612

COM3 113 2.00 5.00 3.9574 .65798

ADC1 113 2.00 5.00 4.0213 .79371

ADC2 113 3.00 5.00 4.2340 .72869

ADC3 113 2.00 5.00 4.0213 .73690

PROD1 113 3.00 5.00 4.1915 .57628

PROD2 113 2.00 5.00 4.2766 .74315

PROD3 113 2.00 5.00 4.1489 .75119

34
Valid N (listwise) 113

Source: SPSS 25.0

4.3.2 Missing Value

Table 3: Missing Values

Univariate Statistics
N Mean Std. Missing No. of Extremesa
Deviation Count Percen Low High
t
Q1 113 1.3404 .47898 0 .0 0 0

Q2 113 2.0426 .69023 0 .0 0 0

SHA1 113 3.6304 .90330 1 2.1 1 0

SHA2 113 3.9149 .90481 0 .0 . .

SHA3 113 4.1064 .93795 0 .0 3 0

COM1 113 3.9787 .60754 0 .0 . .

COM2 113 4.2553 .70612 0 .0 0 0

COM3 113 3.9574 .65798 0 .0 . .

ADC1 113 4.0213 .79371 0 .0 2 0

ADC2 113 4.2340 .72869 0 .0 0 0

ADC3 113 4.0426 .77900 0 .0 . .

PROD 113 4.1915 .57628 0 .0 0 0

1
PROD 113 4.2766 .74315 0 .0 1 0
2
PROD 113 4.1489 .75119 0 .0 1 0
3
Source: SPSS 25.0

35
Table 2 shows the result for missing values. Missing values were detected in the result, since

the percentage of missing values is less than twenty percent (20%) as indicated by Hair,

Black, Babin, Anderson and Tatham (2006) and Scheffer (2002), does not pose a challenge to

the analysis of data.

4.4 Correlation analysis

4.4.1 Reliability of constructs

The reliability of the constructs were tested and one way of testing the reliability between the

items in each factor is through the Cronbach’s alpha test. The Cronbach’s alpha is based on

the average inter-item correlation. According to Pallant (2005), a scale with a Cronbach’s

alpha higher than 0.7 is required in order to create a reliable construct of multiple variables.

Table 3 shows the result of the cronbach’s alpha for all four variables are reliable since the

overall reliability result is 0.725 is higher than 0.7 benchmark.

Table 4: Reliability Result

S/N Questionnaire Constructs Cronbach Number of Remark

Alpha Items
Reliability
Result

1 Shared Goals (SHA)

2 Communication (COM)

3 Absence Of Damaging Conflict (ADC)

4 Employee Productivity (PROD)

5 Overall 0.725 12 Reliable

Source: SPSS 25.0

36
4.4.2 Linear regression

Regression analysis describes and evaluates the relationships between a specified dependent

variable and one or more independent variables. In order to authenticate and rely on the

estimation for decision making, normality of the dependent variable, multicollinearity and

auto-correlation were tested.

4.4.2.1 Normality of dependent variable

One important assumption of the regression analysis is that the dependent variable be

normally distributed. Normality is used to describe a symmetrical, bell-shaped curve, which

has the greatest frequency of scores around in the middle combined with smaller frequencies

towards the extremes (Pallant, 2005). The regressions in this study have customer satisfaction

as the dependent variable. If the dependent variable is not normally distributed, there is little

point in performing regression analysis because a major assumption of the model is broken.

The dependent variables customer satisfaction was calculated by using the mean of three

items that measured Employee Productivity.

37
Figure 1: Normality Test

From the figure 2, the histogram shows that the data follows anormal distribution given that the

bell-shaped curve is symmetric.

4.4.2.2 Correlations and Multicollinearity

In this study, correlation and multicollinearity were applied to test if there are excessive

correlations between the variables in the model. The correlation matrix can scanned as a

preliminary look for multicollinearity. To avoid multicollinearity in the sample, there should

be no substantial correlations (R > 0.9) between the predictors (Field, 2005). The correlation

matrix in Table 4 shows that there are no variables that have excessive correlations between

them.

38
Table 5: Correlation Matrix

CS COM INV TRA

PRO Pearson Correlation 1 .028 .438** .475**

D Sig. (2-tailed) .852 .002 .001
N 47 47 47 47
SHA Pearson Correlation .028 1 .373** .208
Sig. (2-tailed) .852 .010 .160
N 47 47 47 47
**
COM Pearson Correlation .438 .373** 1 .273
Sig. (2-tailed) .002 .010 .063
N 47 47 47 47
**
ADC Pearson Correlation .475 .208 .273 1
Sig. (2-tailed) .001 .160 .063
N 47 47 47 47
**. Correlation is significant at the 0.01 level (2-tailed).

The correlation result for dependent and independent variables in table 5 shows that all the

variables have a positive relationship to Employee relations (CS).The result revealed that

shared goals, (SHA), institutional communication (COM), and Absence of Damaging

Conflict (ADC) correlate to customer satisfaction by 2.8%, 43.8%, and 47.5% respectively.

Table 6: Multicollinearity

Collinearity Statistics
Tolerance VIF
.849 1.178
.821 1.218
.912 1.096

From table 6, the variance inflation factor (VIF) for the predictors is used to test if there is a

strong linear association among them. The result of the multicollinearity shows that there is

no multicollinearity among the independent variables, since the values of the VIF are all less

than 4 which is the benchmark (Garson, 2016).

39
Table 7: Regression Result

Model Unstandardized Standardized T Sig.

Coefficients Coefficients
B Std. Error Beta
1 (Constant 1.531 .621 2.467 .018
)
SHA -.148 .094 -.208 -1.574 .123
COM .401 .133 .404 3.013 .004
ADC .384 .120 .408 3.211 .003

4.5 Data Analysis (Test of Hypotheses)

4.5.1 Test of Hypothesis One

Ho1: Institutional Shared goal has no significant effect on employee productivity

The result of the regression result in table 6, shows that the p-value of shared goal is 0.123,

the decision rule is that if the p-value is less than the level of significance of 0.05, the null

hypothesis will be rejected while the alternate hypothesis is accepted. But if the p-value is

greater than the level of 0.05, accept the null hypothesis and reject the alternate. Since the p-

value (0.123) is greater than the significant level of 0.05. The null hypothesis is therefore

accepted concluding that there is no significant relationship between institutional shared goal

and employee productivity

4.5.2 Test of Hypothesis two

Ho2: Communication has no significant effect on Employee productivity

The result of the regression result in table 6, shows that the p-value of Communication

(COM) is 0.004, the decision rule is that if the p-value is less than the level of significance of

40
0.05, the null hypothesis will be rejected while the alternate hypothesis is accepted. But if the

p-value is greater than the level of 0.05, accept the null hypothesis and reject the alternate.

Since the p-value (0.004) is less than the significant level of 0.05. We reject the null

hypothesis and conclude that there is a significant relationship between Communication and

Employee productivity.

4.5.3 Test of Hypothesis three

Ho3 Absence of Damaging conflict has no significant effect on Employee Productivity.

The result of the regression result in table 6, shows that the p-value of Absence of Damaging

Conflict (ADC) is 0.003, the decision rule is that if the p-value is less than the level of

significance of 0.05, the null hypothesis will be rejected while the alternate hypothesis is

accepted. But if the p-value is greater than the level of 0.05, accept the null hypothesis and

reject the alternate. Since the p-value (0.003) is less than the significant level of 0.05. The

null hypothesis is therefore rejected concluding that there is a significant relationship between

Absence of damaging conflict, and employee productivity.

4.6 Discussion of Findings

Based on the result in table 6, Employee Relations in terms of Institutional shared goal has no

significant effect on employee productivity. This finding is in contrary with Jacqueline

(2018) who carried out a study on the influence of employee relations on employee

productivity in public universities in kenya. The findings revealed that most of the

respondents agreed or strongly agreed that employee training has contributed to employee

productivity in public universities in Kenya. They also established that good compensation

and reward have significant effect on employee productivity.

41
Table 7 further showed that Employee Relations in terms of communication had a positive

significant effect on Employee Productivity. The finding is agreement with Ngari (2016) who

carried out a study on Influence of Employee Relations on Organization Performance, The

study found that industrial relations, employment practices, employment practices, employee

communication affect organization performance.

The result in table 6 also revealed that Employee relation in Absence of Damaging conflict

has a positive and significant effect Employee Productivity. This meets apriori expectation.

Janes (2018) conducted a study on the Effect of Employee Relations on Employee

Performance and Organizational Performance-Study of Small Organizations The findings of

the study show that small organization are aware of the benefits of maintaining good

employee relations and correct remedial actions taken to minimize poor employee relations in

the organization. The findings further indicate a positive significant relationship between

employee relations and employee performance as well as between employee relations and

organization performance.

4.7 Summary of Findings

1. There is no significant relationship between institutional shared goal and employee

productivity. This meets the first objective which seeks to understand the influence of

Institutional shared goals on employee productivity in Grand Cereal

2. There is significant relationship between Institutional communication and employee

productivity. This meets the second objective which seeks to determine the effect of

institutional Communications on employee productivity in Grand Cereal.

42
3. There is significant relationship between absence of damaging conflict and employee

productivity in Grand cereal. This meets the third objective which seeks to analyze effect

of Absence of Damaging Conflict on employee productivity in Grand Cereal.

CHAPTER FIVE

SUMMARY, CONCLUSION AND RCOMMENDATIONS

5.1 Summary

The aim of this study was to assess the impact of employee relations on employee

productivity at Grand Cereal. Data were collected from 113 respondents using a 5-point

Likert scale questionnaire, and hypotheses were tested using regression analysis. Key

findings are summarized below:

Institutional Shared Goals and Employee Productivity: The analysis revealed that

institutional shared goals have no significant effect on employee productivity at Grand

Cereal. The p-value for shared goals was 0.123, which is greater than the significance level of

0.05, indicating that this factor does not have a meaningful impact on productivity. This

suggests that aligning shared organizational goals with employee productivity may not be as

critical in this context.

Communication and Employee Productivity: Communication was found to have a

significant positive effect on employee productivity. The p-value of 0.004 indicates a strong

relationship, supporting the notion that effective internal communication fosters better

productivity among employees. This highlights the importance of maintaining open lines of

communication within the company to enhance performance.

43
Absence of Damaging Conflict and Employee Productivity: The absence of damaging

conflict also had a significant positive effect on employee productivity, with a p-value of

0.003. This underscores the importance of a conflict-free working environment, as unresolved

conflicts can lead to disruptions that negatively affect output. Ensuring effective conflict

resolution strategies may therefore contribute to better employee performance.

These findings suggest that while shared goals may not be as influential, effective

communication and the absence of damaging conflict are critical drivers of employee

productivity at Grand Cereal. As such, the company should prioritize fostering an open and

harmonious workplace environment to maximize productivity

5.2 Conclusion

In conclusion, the study explored the relationship between employee relations and employee

productivity, focusing on the variables of institutional shared goal, institutional

communication, and absence of damaging conflict. The findings indicate that these variables

play a crucial role in shaping employee productivity within an organization. The study found

that when employees share common goals with the institution, they exhibit higher levels of

motivation and commitment. This alignment fosters a sense of purpose and direction, leading

to increased productivity. Furthermore, effective institutional communication enhances

employee engagement, clarity, and understanding of organizational objectives, which

positively impacts productivity levels. Lastly, the absence of damaging conflict creates a

harmonious work environment, allowing employees to focus on their tasks and collaborate

effectively, leading to improved productivity.

5.3 Recommendations

The following recommendations are made based on the findings of the study;

44
1. Establish and communicate institutional shared goals: Organizations should define

clear and compelling goals that resonate with employees' values and aspirations.

Regularly communicate these goals through various channels, such as team

meetings, newsletters, and intranet portals, to reinforce their importance and

maintain alignment.

2. Foster open and transparent communication: Encourage and facilitate two-way

communication channels throughout the organization. Implement mechanisms like

town hall meetings, suggestion boxes, and online platforms for employees to

express their ideas, concerns, and feedback. Ensure that communication is timely,

consistent, and accessible to all employees.

3. Promote conflict resolution and mediation: Develop conflict resolution

mechanisms and provide training to managers and employees on effective conflict

management strategies. Encourage a culture of open dialogue, active listening,

and mutual respect. Timely and fair resolution of conflicts can prevent their

escalation and minimize their negative impact on productivity.

45
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 APPENDICES

APPENDIX A

Abubakar Tafawa Balewa University,

Faculty of Management Science,

Department Of Business Management,

Bauchi State.

Dear Respondent,

RESEARCH QUESTIONNAIRE

I am a final year student of Faculty of Management Sciences, Department of Business

Management, Abubbakar Tafawa Belewa University of Bauchi, Bauchi State. I am

conducting a research on the topic “Employee Relations and Its Effect on Employee

Productivity (A Case Study of Grand Cereal Limited Company). The information needed

is purely for academic purpose and it would be treated with utmost confidentiality. Your

cooperation will be highly appreciated in this regard. Thanks.

Yours faithfully,
51
CHAKE ANNA

APPENDIX B

QUESTIONNAIRE

SECTION A

General Guidelines:

This questionnaire has two parts; you are kindly requested to respond to the questions

based on the instructions under each section by filling the blank and ticking where

appropriate.

Respondent’s general information

Please TICK in the appropriate box

SECTION A

Q1. Please indicate your gender.

Female Male

Q2. Staff Rank / Level Senior Staff Junior Staff

Q3 Educational Background

BSc MSc PhD

Q4 Age

52
30-39 40-49 50-59 60 and above

SECTION B

SA= Strongly Agreed, A=Agreed, N= Neutral, D= Disagreed, SD= Strongly Disagreed

SHARED GOALS SA A N D SD

1 The organization clearly communicates its goals and

objectives to employees.

2 Employees understand how their individual goals align with

the overall goals of the organization.

3 Shared goals positively influence my motivation and

commitment to achieving high levels of productivity.

COMMUNICATION SA A N D SD

1 There is open and transparent communication between

management and employees.

2 Communication channels are effective in providing timely

and relevant information to employees.

3 Effective communication enhances my understanding of

tasks, expectations, and overall performance.

ABSENCE OF DAMAGING CONFLICT SA A N D SD

1 Conflicts are resolved in a fair and constructive manner

within the organization.

53
2 The organization promotes a culture of collaboration and

teamwork, reducing damaging conflicts

3 A positive work environment, free from damaging conflicts,

improves my productivity and job satisfaction.

EMPLOYEE PRODUTIVITY SA A N D SD

1 I believe that strong employee relations positively impact

overall employee productivity.

2 When there is a strong focus on shared goals,

communication, and absence of damaging conflicts, I feel

more motivated to perform at my best

3 I believe that employee productivity is influenced by the

quality of relationships within the organization.

54