Effect of Industrial Democracy Practices on Employees Performance, A Case Study of Manufacturing Firms in Enugu State, Nigeria

Abstract

This paper examined the effect of industrial democracy practices on employee’s performance, a study of manufacturing firms in Enugu State, Nigeria. Specifically the study ascertained the effect of workers participation in decision making on employee turnover rate in the manufacturing firms in Enugu and determined the effect of collective bargaining on employee retention in the manufacturing firms in Enugu. The study employed both primary and secondary data in achieving its objectives. The sample size of the study is 120 which was determined using Taro Yamane’s formula. A total of 120 Questionnaires were administered to 120 respondents and 95 were received back, representing 79.17% response rate. The study found that worker’s participation in decision-making have a significant effect on the employees turnover rate in the manufacturing firm in Enugu t = 6.831***; p = 0.000 < 0.05). Result also show that there is a significant relationship between collective bargaining and employee retention in manufacturing firms in Enugu state (r = 0.279^**;  p = 0.000 < 0.05). Based on the findings it is recommended that a democratic management style should be imbibed in for manufacturing firms in Enugu State.