CHAPTER ONE

INTRODUCTION

1.1. Background of the Study

Industrial relations which is the matter at stake is an integral part of management, it is pointless therefore, embarking or researching industrial relation without tracing point of its conceptual framework i.e. management which is the key element in the coordination and management of employees and work in PAN.

Improving productivity in PAN can be viewed as that part of the strategic management function in the development of business policy. Enhancing performance stress the role of the individuals in Peugeot Automobile Nigeria and industrial relations, which is the core concept of the relationship between employers and employees in the organization to ensure industrial peace and harmony? Industrial relations is all about building a cordial relationship between human being working in PAN by governing the affairs of the organization in a favorable and suitable manner that will benefit both to ensure productivity.

Industrial relations talks about the relationship which exists between the three main industrial actors, the employers, the employees and the government and there is a need for the management of resources to foster industrial harmony and also develop good industrial relations. The importance of production cannot be overemphasized because they are in collaboration with other resources to make a business run properly and thus there is the need for management.

This project will examine industrial relations as a tool and strategy for enhancing organizational performance using Peugeot Automobile Nigeria Kaduna as a research study. To do this effectively this work will focus attention on aims and objectives, statement of problems, research questions, scope and limitation as well as historical background of Peugeot Automobile Nigeria Limited.

1.2    Statement of the Problem

In organizations, industrial conflict is inevitable. It is said to be the opposition of interest of both the employers and the employees.

On the part of the employer, he is constantly seeking for greater output at minimal cost, seeking to lower the wage rate, lengthen the work hours, speeds up the worker and discharges the worker when it is expected for him.

While on the other part, the employee is constantly seeking for job security at the best possible condition of service, safety and comfort in the workplace, as well as hygienic environment. But most importantly, he wants to interact freely, socially in decision making that will facilitate growth and productivity in PAN.

In other words, most organizations fail not as a result of poor planning, policies or mismanagement but as a result of management inability to keep and maintain industrial harmony within the organization.

Based on the problems highlighted above, it is fundamental for co-existence in order to realize the organizations set aims and objectives.

1.3. Objectives of the Study

The main objectives of the study are to know how industrial conflict can be minimized via industrial relations to achieve industrial harmony so as to enhance performance and productivity in PAN such objectives include:

1. To assess the difficulties associated with industrial relations and industrial conflict.
2. To highlight the effectiveness of industrial relations via collective bargaining between both parties.
3. To outline various strategies to facilitate the enhancement and improvement of productivity.
4. To determine production factors as an integral process for improving organizational growth and survival.

1.4. Significance of the Study

This research work will be beneficial to the employers, employees future researcher in such areas as well as the government as reflected below:

1. The management and employers will benefit because it will save them losses and cost associated with industrial conflicts and strike actions
2. The employees and workers will benefit especially through the collective bargaining mechanism which will afford them opportunity to participate in decision making of the organization.
3. This research work will serve as a platform, a foundation for future researchers to build upon towards achieving academic goals.
4. This research work will serve as a guide that can be used by government to minimize and prevent future industrial dispute and conflict.

1.5. Research Questions

The following questions are drawn to guide this study.

1. What are the difficulties associated with conflict evolution and resolution?
2. How effective is the relationship between management and workers of the organization, is it deputation, joint consultation or the collective bargaining?
3. Are there strategies to facilitate the free flow of information and communication between employers and employees towards enhancing productivity?
4. What are the production factors employed by government to enhance and improve organizational growth?

1.6. Scope of the Study

This research work will cover the period of 2010 to date, it intends to assess areas of difficulties associated with industrial relations, its evolution and resolution, the various ways of improving industrial harmony between employers and employees and procedures for reaching agreement. Also the administration of improving conditions of service for workers and its impacts towards organizational performance and growth.

1.7. Limitation of the Study

Despite willingness and desire to provide so much information as possible on the subject matter, some constraints occur which includes?

1. Time constraints or limited time: due to the volume of academic work in school, research of this nature requires adequate time due to its broadness and the time available for the research is grossly tight also the researchers to continue to combine the research work with academics activity which in most times limit the research proper.
2. Lack of research materials: the research materials on this project matter are very few, the much relived library is filled with outdated books, which are of little significance to current research and the cost of new and updated materials is not affordable.
3. Respondents’ cooperation: in response to the research matter, more respondents over fifty per cent cooperated but attitudes is not welcoming particularly the customers of the company, some of which refuse to return their questionnaires because they consider official information as top secrete of the company.

1.8    History of Peugeot Automobile Nigeria Limited Kaduna 

Humans’ desire for comfort has been the genesis of research and development, scientific discoveries leading to growth within his natural habitat and even beyond.

Peugeot Automobile Nigeria Limited which by all indications is leading vehicle manufacturing in the country, made its first impact in Nigeria for back as 1959. When a set of one hundred (100) units of Peugeot 403 cars were imported by individuals into the country within the period of two years, the product became so popular a result of its dependability, reliability, durability and suitability on Nigeria roads. Hence, it assumed the status of official car for government officials and wealthy business men.

This unprecedented achievement cause an increase in the demand for Peugeot cars in the country which led to the appointment of associated commercial organization Societe commerciale De-L’Ouest africain (SCOA) as the sole distributing agent government in 1959. In 1960 with brand development, the federal government of Nigeria in the early period of the 1970s extends into negotiation with automobile Peugeot of France to set up assembling plant in the country to produce vehicles for local consumption with the initial ownership structure as follows:

1. Federal (government) Republic of Nigeria 35%
2. Bank of Industries 5%
3. Automobiles France 40%
4. Kaduna state government 4.7%
5. Katsina state government 5.3%
6. Societe Commerciale De l’ Ouest Africain (SCOA) 5%
7. United Trading Company (UTC)

The second phase of the historical background of PAN takes off from the privatization policy of the federal government of Nigeria. The policy offered great opportunities to indigenous companies to bid for and acquire majority shares in public enterprises. It was this policy that catalyzed a core investor, Messrs ASD motors Limited into acquiring majority share in PAN, leading to its eventual take over of PAN management year 2007. the change of management to the current one represent a paradigm shift, which may be described as new beginning with the current reference to the company as the new PAN. Spelling new hope, challenges and performance.

The new ownership structure of PAN reflects as follows:

1. ASD motors Limited 55%
2. Federal government of Nigeria 10%
3. Automobiles Peugeot of France 10%
4. Bank of Industries 5%
5. Kaduna state government 4.7%
6. Katsina state government 5.3%
7. Societe Commerciale De’ l’ Ouest Afrricain (SCOA) 5%
8. United Trading Company (UTC) 5%

The new PAN Limited has been restructured to enhance efficient and effective organizational performance as well as day to day activities/operations which is being overseen by the management team.