Impacts of industrial democracy on organizational performance (case study of selected private and public sector organizations in Lagos State, Nigeria)

Abstract

This study investigated the impact of industrial democracy on organizational performance. A structured survey instrument was used to collect data from a sample of 815 workers randomly selected from purposively selected work organizations. Both male and female respondents who had spent between 3 to 10 years and above in their organizations were used as subjects for the study. Three hypotheses were tested at 0.05 level of significance. Data were analyzed using Statistical Analysis System (SAS 9.2). Regression Analysis and Pearson Correlation coefficient statistical were used in testing the hypotheses. Simple percentage was used to analyse the demographic information collected from the respondents. Findings revealed that industrial democracy had positive impact on organization performance with the degree of influence being 93.06%. The finding also showed that there was significant relationship between industrial democracy and employee behaviour; and that industrial democracy did not undermine management power but rather strengthened it, since it accounted for 53.60% of the total strength of management power: Fcal> Ftab (211.37> 3.8925). It is therefore recommended that management should make industrial democracy part of its policy and ensure that it is practiced to the letter for better performance of the organization and the satisfaction of the employees.