THE INFLUENCE OF DIVERSITY MANAGEMENT ON EMPLOYEE MORALE IN BREWING INDUSTRY IN SOUTHEASTERN NIGERIA

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TABLE OF CONTENTS

                                                                                                                                  Pages

Declaration                                                                                                                  ii

Approval                                                                                                                     iii

Dedication                                                                                                                   iv

Acknowledgements                                                                                                     v

List of Tables                                                                                                               x

Abstract                                                                                                                       xi

CHAPTER ONE: INTRODUCTION

  1. Background to the Study                                                                                 1
  2. Statement of the Problem                                                               3
  3. Objectives of the Study                                                                                    4
  4. Research Questions                                                                                         5
  5. Research Hypotheses                                                                                       5
  6. Significance of the Study                                                                                 5
  7. Scope and Delimitations of the Study                                             6
  8. Profiles of the Four Breweries Studied                                    6

1.8.1    The Profile of Guinness Nigeria Plc                                    6

1.8.2    The Profile of Nigerian Breweries Plc                                    7

1.8.3    The Profile of Hero Breweries Plc                                            10

1.8.4    The Profile of Continental Breweries Plc                                  10

  1. Operational  Definitions of Terms                                             10
  2. Limitations of the Study                                                      11

References                                                                                                      

CHAPTER TWO: REVIEW OF THE RELATED LITERATURE

  • Introduction                                                                                                     14

2.2       Conceptual Framework                                                                        15

2.2.1    Concept of Diversity Management                                        15

2.2.2    The Concept of Demographic Workplace Diversity                   19

2.2.3    The Concept of Socio Cultural workplace Diversity               19

2.2.4    The Concept of Workplace diversity Management               20

2.2.5    The Concept of Workplace Management                                                 20

2.2.6    Concept of Employee Morale                                            20

2.2.7    Concept of Potency Aspect of Employee Morale                     21

2.2.8    The Concept of Participation Aspect of Employee Morale        21

2.2.9    The Concept of Polarization Aspect of Employee Morale                     22

2.2.10  The Concept of Autonomy Aspect of Employee Morale           22

2.3       Theoretical Framework                                                                            22

2.3.1    The Theory of Diversity Management                                          22

2.3.2    General Dimension Theory of Diversity                                        24

2.3.3    Demographic Theory of Workforce Diversity                      24

2.3.4    The Socio-Cultural theory of Workforce Diversity                    25

2.3.5    The Framework Theory of Workforce Diversity Management    31

2.3.6    The Reason Theory of Employee Morale                            31

2.3.7    Addressing a Problem of Employee Morale Theory              32

2.3.8    Leadership Approach Theory for Solving Morale Problem     33

2.3.9    Application Theory to Solve the Employee Morale Problem      37

2.3.10  Managing Workplace Diversity: Issues and Challenges              38

2.3.11  The Impact of Diversity Training on Commitment, Career Satisfaction

and Innovation                                                                        41

2.4       Empirical Review                                                            45

2.4.1    The Influence of Diversity Management on Employee Morale           45

2.4.2    The Influence of Workforce Diversity Management on the

Polarization aspect of Employee Morale                                  46

2.4.3    The Influence of Workplace Management of Diversity on the

Autonomy Aspect of Employee Morale                                47

2.4.4    The Nature of the Effect of Demographic Workplace Diversity on the

Potency Aspect of Employee Morale                                                               47

2.4.5    The Effect of Social-Cultural Workplace on the Participation  

Aspect of Employee Morale                                                                            47

2.5       Model Specification                                                            48

2.5.1    Employee Morale Index Model Formulation                      48

2.5.2    Employee Morale Membership Function Model                        49

2.5.3    Leadership Commitment Model                                                49

2.5.4    Strategic Planning Model                                                             50

2.6       Critique of the Literature                                                          51

2.7       Summary of the Literature Review                                      53

References                                                                                                      

CHAPTER THREE: RESEARCH METHODS

3.1       Methodological Review                                                          59

3.2       Research Design                                                               59

3.3       Sources of Data Collection                                                            60

3.4       Population of the Study                                                                       60

3.5       Sampling and Sampling Technique                                      61

3.6       Operationlisation of the Variables                                      61

3.7       Description of Research Instruments                                        61

3.8       Data Analysis Technique(s)                                                                   62

3.8.1    Degree of freedom                                                                   62

3.8.1.1 Decision Rule                                                                    62

3.8.2    Confidence Level./Level of Significance                                              62

3.8.3    Spearman’s Rank Correlation Coefficient                                    62

3.8.4    The z-test statistic                                                                63

3.9       Validity of Instrument                                                                          63

3.10     Reliability of the Research Instrument                                              63

3.11     Pest Model Formulation                                                                   64

References                                                                                                      

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1 Introduction                                                                              66

4.2 Data Presentation                                                                                       66

4.3 Reliability Analysis                                                                                   67

4.4 Validity Analysis                                                                          67

4.5 Percentage Analysis                                                                            69

4.6 Hypotheses Testing                                                                               78

4.7 Theoretical Analysis                                                                       86

4.8 Model Solution                                                                                                     87

4.9 Analysis Using Z Test of Population Proportions                              88

4.10 Discussions of Findings                                                               91

4.10.1 Findings Related to the Personal or Demographic Data of the 740 Respondents          91

4.10.2 Discussions of the findings on the Dimensions of Workplace

Diversity Management                                                                      92

4.10.3 Discussion of the Findings on the type of Diversity Management                                92

4.10.4 Discussion of the Findings on the Dimensions of Employee Morale                93

4.10.5 Discussion of Findings on the levels of influence of Diversity

Management on Employee Morale                                                                  93

4.10.6 The Discussion of the Findings Related to the First Objective                          94

4.10.7 Discussion of the Findings related to the Second Objective                              96

4.10.8 The Discussion of the Findings related to the Third Objective                          99

4.10.9 The Discussion of the Findings related to the Fourth Objective                                    102

4.10.10 The Discussion of the Findings related to the Fifth Objective                                     105

4.10.11 The Discussion of the Findings related to the PEST Model                             106

References                                                                                                      

CHAPTER FIVE: SUMMARY, CONCLUSION, RECOMMENDATIONS,

CONTRIBUTION TO KNOWLEDGE AND SUGGESTIONS  

FOR FURTHER RESEARCH

5.1       Summary                                                                                110

5.2       Conclusion                                                                                      111

5.3       Recommendations                                                                      112

5.4       Contribution to Knowledge                                                         112

5.5       Suggestions for Further Research                                          113

References                                                                                                      

Bibliography                                                                                                   

Appendix I:     Letter of Introduction

Appendix II:    Oral Interview Schedule for Implementing the Objectives

Appendix III:   Dichotomous Interview for Implementing the PEST Model

Appendix IV:   The Spearman’s Rank Correlation Coefficient of the Scores given by the Respondents to the Variables in the Five Objectives in the Questionnaires at two points in time

Appendix V:    The 750 Sample Numbers Using the Table of Random Numbers

Appendix VI:   Calculation of Cronbach’s Alpha Coefficient of Reliability

Appendix VII: Table of Random Numbers

LIST OF TABLES

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Table 1: The Summary of the Personal Data on the distribution of the questionnaires          66

Table 2: The summary of the personal data of the 750 respondents                                      67

Table 3: The analyses of the responses on the dimensions of workplace diversity

Management that influence employee morale                               69

Table 4: The analyses of the responses on the two types of Diversity Management

that influence Employee Morale                                                                           70

Table 5: The analysis of the responses on the Level of Influence that Diversity

Management has on Employee Morale                                                                 70

Table 6: The analysis of the responses on the Dimensions of Employee

Morale that are influenced by Diversity Management                   71

Table 7: The analysis of the responses related to the First Objective                                     71

Table 8: The analysis of the responses related to the Second Objective                                73

Table 9: The analysis of the responses related to the Third Objective                                    74

Table 10:  The analysis of the responses related to the Fourth Objective                               76

Table 11: The analysis of the responses related to the Fifth Objective                                  77

Table 12: The computational details of the First Hypothesis                                                 79

Table 13: The computational details of the Second Hypothesis                                             80

Table 14: The computational details of the Third Hypothesis                                                82

Table 15: The computational details of the Fourth Hypothesis                                              83

Table 16: The computational details of the Fifth Hypothesis                                                 84

Table 17: The analysis of the responses from the dichotomous interview

schedule for implementing the PEST model                                                        87

Table 18: The categorization of the brewing companies studies according to how

they responded to the objectives                                                                          89

ABSTRACT

There is a challenge of the difficulty in determining the effect of Diversity Management on Employee Morale in the Brewing Industry in Southeastern Nigeria.  The specific objectives of the study were to determine the type of influence diversity management has on employee morale in the brewing industry in Southeastern Nigeria, to determine the nature of the effect of demographic work-place diversity on the state of the minds aspect of employee morale in the brewing companies that were studied, to establish the effect of socio-cultural work place diversity on the willingness to perform aspect of employee morale in the brewing companies in the area studied, to determine the influence of workplace diversity management on the polarization aspect of employee morale of the brewing companies in the area studied and to ascertain the effect of workplace management on the autonomy aspect of employee morale of the brewing companies in the area studied. The research design was a combination of the survey, oral interview and PEST model modification. Hypotheses 1, 2, 3 were tested using the Z test of population proportions while 4 and 5 used the Z test for Likert Scale Responses. It was found that Diversity Management had a positive influence on employee morale in the brewing industry in Southeastern Nigeria (Zc = 5.936 > Zt = 1.645), the demographic workplace diversity had a positive influence on the state of the minds aspect of employee morale in the brewing companies in the area studied (Zc = 7.139 > Zt = 1.645), the socio-cultural workplace diversity had a positive influence on the willingness to perform aspect of employee morale in the brewing companies in the area studied (Zc = 8.343 > Zt = 1.645), the demographic workplace diversity management had a positive influence on the polarization aspect of employee morale in the brewing companies in the brewing companies in the area studied (Zc = 33.904 > Zt = 1.645) and that the workplace management had a positive effect on the autonomy aspect of employee morale of the brewing companies in the area studied (Zc = 33.990 > Zt = 1.645). The conclusion was that Diversity Management had a positive influence on Employee Morale in the brewing industry in Southeastern Nigeria which implied that the management of the differences and similarities of the behaviour, attitude to work, culture, religion and management styles of the workers would make for an increase in the performance factor of employee morale which determines the extent to which the workers of the brewing companies are doing their work. Recommendations were made along that line.

CHAPTER ONE

INTRODUCTION

  1. BACKGROUND TO THE STUDY

Managing diversity and employee morale have had early influences. Management of diversity naturally has been of some concern to organized history throughout the history of civilization. Most of the early contributions came from practitioners such as Taylor and Fayol. Taylor is the father of scientific management and wrote his book in 1911 while Fayol developed the fourteen principles of administration (Koontz and O’Donnel, 2000). Management in antiquity shows the interpretation of early Egyptian papyri, extending as far back as 1300 B.C., that indicates the recognition of the importance of organization and administration in the bureaucratic states of antiquity with similar records of such existence for ancient China. Confucius’s parables include practical suggestions for proper public administration, and admonitions to choose honest, unselfish, and capable public officers (Koontz and O’Donnel and Weihrich, 2000).

The Roman Catholic Church, if one is to judge by age, is probably the most efficient formal organization in the history of Western civilization. Its long organizational life has been due not only to the appeal of its objectives but also to the effectiveness of its organization and management techniques. The development of the hierarchy of authority with its scalar territorial organization, the specialization of activities along functional lines, and the early use of the staff device are striking examples of these techniques. However, present times are showing the challenges of diversity management where the Pope Benedict XVI resigned on Thursday February 28, 2013 in the face of growing issues of age and general administration (Nwachukwu, 2013).

In the Military Organisations as might be expected, some of the more important principles and practices of modern business management may be traced to military organizations. Except for the Church, no other form of organization in the history of Western civilization has been forced, by the problems of managing large groups, to develop organization principles. Yet despite the need, the military organizations probably failed to put the theory to use before the past two centuries (Koontz and O’Donnel, 2000).

Management of diversity has also existed in Nigeria and employee morale has been a very important performance variable. In 1946 there was the first pre-development plan and it was financed by the British Administration. Its aim was to raise raw materials as inputs in the British factories to generate revenue to win the Second World War. The diversity here was whether the plan was for Nigeria or for Britain as their interest was on growth abroad rather than indigenous employee’s moral. Between 1962 and 1985 there were four post-independence development plans, followed by the 7-point agenda of late President Musa Y’Adua. There were the economic reforms of President Olusegun Obasanjo between 1999 and 2007 and presently there is a road map of President Goodluck Jonathan till date. The diversity here is that all the plans, programmes and strategies used by the various Nigerian administrations have had good formulations but it has been observed by some development experts that there were very poor implementations because of the diverse Nigerians socio-economic and religious backgrounds (Nwankwo, 2010).

Diversity management continued to have an influence on employee morale in relation to age, gender, religion, tribe, etc which could be positive if the strategies were right and negative if they were not. As Lawrence (2001) puts it, management of diversity in organisations is dependent upon the acceptance of some primary objectives to which the employees are ready to commit, like the way it would impact on their morale which is a state of the mind of the individuals, or groups as shown in the willingness to perform assigned tasks.

The effect of diversity management on employee morale was very relevant in the Managements of United States of America, Japan and Nigeria. The United States of America in the modern era had diverse management approaches that enhanced the spirit with which the American workers did their work. No wonder their economy became that of wealth and prosperity. A typical example was in the mass production which was initiated by Henry Ford which made it possible to produce a lot of cars that were different and similar as if it were the same brand. In American Management, there was a lot of planning but the Americans were too fast in their planning making for emergent decision making, demand forecasting and simulating the objective function (Koontz, O’Donnel and Weihrich, 2012).

In the case of Japanese Management, diversity management also had a positive effect on employee morale. The Japanese did not have raw materials but had the technology, so they could import raw materials and transform them through the production process to get product like electronic products and Toyota brand of cars. The transform consisted of different machines, methods and maintenance and so diversity management was very relevant. The Americans were very happy about the increased productivity of the Japanese so much so that American entrepreneurs built factories and asked the Japanese Managers to man the factories, so employee morale was very relevant. The Japanese Management was boosted by the use of life time employment, use of quality circles and effective technology (Koontz, O’Donnel and Weihrich, 2012).

In the case of Nigerian Management, diversity management had also had a positive effect on employee morale. In 1946, the pre-independence development plan which was financed by the British Government was aimed at raising different raw materials to finance the British factories so that Britain will not lose the Second World War. The plan lasted for 10 years between 1946 and 1956 (Nwankwo, 2000). So diversity management in Nigeria had a colonial origin. The Nigerian Enterprises Promotion Decrees of 1972 and 1977 left the control and management of the different enterprises in Nigerian hands. Management was the factor that enhanced economic growth in Nigeria. Between the last quarter of 2013 and the first quarter of 2014, due to a rebasing done, the Gross Domestic Product growth rate of Nigeria was 7.4%. This made the economy of Nigeria bigger than that of South Africa that has continued to be an emerging economy with Egypt. The Nigerian economy became the largest in Africa (Nigerian Bureau of Statistics, 2014). Unfortunately, this economic growth has not been matched with effective employment of young school leavers, poverty alleviation and high literacy rate.

  1. STATEMENT OF THE PROBLEM
THE INFLUENCE OF DIVERSITY MANAGEMENT ON EMPLOYEE MORALE IN BREWING INDUSTRY IN SOUTHEASTERN NIGERIA