CASUALIZATION AND EMPLOYEE COMMITMENT IN ETISALAT NIGERIA – Complete Project Material

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CHAPTER
ONE

INTRODUCTION

1.1     
Background
of the study

This
study is examining the relationship between casualization and employee
commitment in Etisalat Nigeria. Allen and Meyer (1996) defined employee
commitment as “a psychological status of an employee towards the organization
that makes it less likely that the employee will voluntarily leave the
organization” Lower levels of employee commitment amongst casual employees may
arise because of the precarious nature of their employment (Campbell, 1996).
Dessler et al, 2004) posited that “people have a psychological reference point
to their place of employment. Once you put them in the temporary category, you
are saying they are expendable and therefore they are less likely to exhibit
loyalty and commitment to their organizations”.

Employee
commitment has benefits for employers and employees (Mowday, 1998). For
employees, commitment to work and in an organization represents a positive
relationship that could ‘potentially add meaning to life’, whereas, for
employers, having committed employees has the potentials for increased
performance and reduced turnover and absenteeism. Employee commitment has also
been linked tentatively to an organization’s efficiency, productivity,
creativity and innovation (Mir, Mir &Mosca, 2002) as well as its
profitability (Raab& McCain, 2002).

One
of the few strong links in the literature is that between employee commitment
to an organization and staff turnover. As Allen and Meyer explained ‘employee
who are strongly committed are those who are least likely to leave the
organization’ (1990).

The
traditional industrial relations system based on the concept of full-time
employees working within an organization is increasingly being challenged by
the use of nonstandard work arrangements by employers. This changing nature of
work has taken a new dimension with the adoption of flexible work arrangements
by many firms globally. The theme running through many of the new approaches to
management in today’s globalized economy is the development of a more flexible
workforce which has become employers‟ new frontier in the management of human
resources. However, these changing patterns of work (e.g. casual, contract, temporary,
part-time employments, subcontracting, outsourcing/insourcing etc.) occasioned
by Structural Adjustment Programmes (SAP), have created concerns for workers
and trade unions alike, especially in Nigeria. Job security, social security,
terminal benefits and minimum conditions of work are some of the issues of
concern. The push toward casualisation in Nigeria is evident of a continued
effort by government and corporate elites to maximize profit at the expense of
a long-term jobs policy, transparent governance and shared economic
development. Casualization is a great malady that has engulfed the Nigerian
workplace and banking and telecommunication sector in particular.

Casualisation
as a form of labour practice has been defined by most management writers as the
process by which employment shifts from a preponderance of full time and
permanent positions to higher levels of casual positions. It can also be viewed
as an employment of an irregular or intermittent nature (Rodriguez, 2009).

This
is sometimes caused by some kinds of workplace politics which is the use of
power within an organization for the pursuits of agendas and self-interest
without regard to their effect on the organization’s efforts to achieve its
goals. Some of the personal advantages may include access to tangible assets or
intangible benefits such as status or pseudo-authority that influences the
behavior of others. Both individual and groups may engage in this kind of act
which can be highly destructive, as people focus on personal gains at the
expense of the organization.

In
life, one is suppose to either move horizontally or vertically but most
telecommunication companies have forced their casual staff to remain static. As
there is neither promotion nor increment in their salaries. Casual staff in
most cases spends 15 – 20 years in the same employment status/designation. The
worst is the disdain treatment casual staff are subjected to by some of the
company’s so-called full staff. They are treated as inferior beings and
demoralized.

Casual
staff in companies is the grievous of all form of modern slavery. It is an
aberration and infradignity for two set of employees one casual, the other
‘full staff’ to be performing the same job functions and at the end of the day,
the ‘so-called full staff’ is paid higher remunerations, promoted, given the
opportunities for further trainings and development in order to advance on the
job while the other ‘casual staff’ is totally neglected. Experience abound
whereby two individual who where employed in the same company, on the same day
though in different employment tactics (i.e. full staff and casual), within the
space of 10 years, the fellow employed as a full staff had risen to become a
Manager while the other fellow employed as casual staff still remains at the
same entry point/level where he was employed 10 years back. The only sin the
latter committed was probably because he was a polytechnic graduate and was
employed as casual staff.

Etisalat
Nigeria, the case study in this research is owned by Emirates
Telecommunications Corporation, branded trade name Etisalat is a multinational
UAE based telecommunications services provider, currently operating in 18
countries across Asia, the Middle East and Africa. As of February 2014,
Etisalat is the 13th largest mobile network operator in the world, with a total
customer base of more than 167 million. Etisalat was named the most powerful
company in the UAE by Forbes Middle East in 2012

Etisalat
Nigeria is now in business for the last seven years and is one of the country’s
fastest growing network with over 23 million subscribers. Etisalat Nigeria
provides network coverage in all 36 states of the federation (rolled out in
under one-and-a-half years) covering most of the population, and has deployed
more than 2,000 km of fibre to support broadband development. The company has a
track record of introducing innovative products for mobile banking, which have
made financial transactions convenient for customers and helped foster
entrepreneurialism.

1.2    
STATEMENT OF THE PROBLEM

Casualization
goes beyond Nigeria and beyond telecommunication companies. Around the world in
nearly every economic sector, good jobs are falling prey to corporate
cost-cutting moves at the expense of working families. Too many jobs are being
outsourced, contracted out, or reclassified under a barrage of legal
definitions designed to keep pay down, benefits low, and unions out.
Casualization of employment is growing at an alarming rate. More and more
workers in permanent employment are losing their jobs and are being re-employed
as or replaced by casual or contract workers. This state of affairs is viewed
as employers’ strategies to cut cost; maximize profit and subject the employees
under economic captivity. Casual work which is supposed to be a form of
temporary employment has acquired the status of permanent employment in many
organizations in Nigeria without the statutory benefits associated with
permanent employment status. Casual workers are subject to lower pay, barred
from their right to join a union, and denied medical and other benefits.
Companies have devised antics by often hiring several part-time workers instead
of one or two full-time workers to avoid their obligation to provide benefits,
to divide the workforce, and to dissuade unionizing efforts. However, this
research is out to find out the effect of this unfair casualization of staffs
by some management of companies on the employee commitment.

1.3    
OBJECTIVES OF THE STUDY

The
general objective of this study is to analyze the effect of casualization on
employee commitment in Etisalat Nigeria while the following are the specific
objectives:

1.   To
examine the effect of casualization on employee commitment in Etisalat Nigeria.

2.   To
determine the different causes of employee casualization.

3.   To
examine the effect of casualization of organizational performance and
productivity.

1.4    
RESEARCH QUESTIONS

1.   What
is the effect of casualization on employee commitment in Etisalat Nigeria?

2.   What
are the different causes of employee casualization?

3.   What
is the effect of casualization of organizational performance and productivity?

1.5    
HYPOTHESIS

Hypothesis
One

H0:
There is no significant relationship between casualization and employee
commitment in Etisalat Nigeria.

H1:
There is significant relationship between casualization and employee commitment
in Etisalat Nigeria.

Hypothesis
two

H02:
There is no significant relationship between casualization and organizational
performance and productivity in Etisalat Nigeria.

H2:
There is significant relationship between casualization and organizational
performance and productivity in Etisalat Nigeria.

1.6    
SIGNIFICANCE OF THE STUDY

The
following are the significance of this study:

The
outcome of this study would enable the researcher to understand better the
casualization and employee commitment in the telecommunication sector of
Nigeria and also determined the extent to casualization has affected
organizational performance and productivity in Etisalat Nigeria.

At
the social level, results from this study would enable the people express their
views on casualization and employee commitment and the effect of this
precarious trend on the employees, employers and the society at large.
Academically, it would be a reference point for further research in this area
of study, it will add to the body of existing knowledge in the field of Human
Resource Practices as regards casualized employment tactics by organizations.
Both employees, employers and the society would benefit from the findings of
this study

1.7    
SCOPE/LIMITATIONS OF THE STUDY

The
study covered the influence of Casualization on employee commitment of some
selected Etisalat Nigeria workers in Edo State.

Despite
the fact that Casualization cut across the length and breath of the
telecommunication sector of Nigeria, only Etisalat Nigeria, Benin Center
constituted the population of this study.

1.8    
OPERATIONAL DEFINITION OF TERMS

Precarious
life: this is a phenomenon which describe people (workers) leaving a life of
social and economic uncertainty often coupled with extreme debt. This anxious
class of people living such uncertain life is referred to as the
“precariat”.

Casualization: It
is the corporate trend of hiring and keeping workers on temporary employment
rather than permanent employment, even for years, as a cost reduction measure.
Casualization is a term used in Nigeria to describe work arrangements that are
characterized by bad work conditions like job insecurity, low wages, and lack
of employment benefits that accrue to regular employees as well as the right to
organize and collectively bargain.

Casualizationmodel:
This is a process whereby employers ignore workplace standards and workers’
social needs and create a strong barrier against workplace organizing.

Formal workers:
They are also called regular company employees; they are hired directly by the
company. They receive contracts that explain work conditions, wages, hours and
benefits.

Casual worker:
these are employees often employed by third-party contractors, under various
types of part time and (or) short-term work arrangements. They are not part of
any union structure. They earn lower wages than the regular workers, receive
fewer benefits and can be fired at will.

Direct Labour Contract: this
is an employment arrangement whereby an individual is hired as an independent
contractor.

Service Contract:
This is an employment arrangement which is not an individual contract, but an
arrangement between a bank and a smaller company that provides specific
technical expertise


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