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

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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.


TABLE OF CONTENTS

List of Tables
Abstract

CHAPTER ONE: INTRODUCTION
1.1       Background to the Study
1.2       Statement of the Problem
1.3       Objectives of the Study
1.4       Research Questions
1.5       Research Hypotheses
1.6       Significance of the Study
1.7       Scope and Delimitations of the Study
1.8       Profiles of the Four Breweries Studied
1.8.1    The Profile of Guinness Nigeria Plc
1.8.2    The Profile of Nigerian Breweries Plc
1.8.3    The Profile of Hero Breweries Plc
1.8.4    The Profile of Continental Breweries Plc
1.9       Operational  Definitions of Terms
1.10     Limitations of the Study
References

CHAPTER TWO: REVIEW OF THE RELATED LITERATURE
2.1.1    Introduction
2.2       Conceptual Framework
2.2.1    Concept of Diversity Management
2.2.2    The Concept of Demographic Workplace Diversity
2.2.3    The Concept of Socio Cultural workplace Diversity
2.2.4    The Concept of Workplace diversity Management
2.2.5    The Concept of Workplace Management
2.2.6    Concept of Employee Morale
2.2.7    Concept of Potency Aspect of Employee Morale
2.2.8    The Concept of Participation Aspect of Employee Morale
2.2.9    The Concept of Polarization Aspect of Employee Morale
2.2.10  The Concept of Autonomy Aspect of Employee Morale
2.3       Theoretical Framework
2.3.1    The Theory of Diversity Management
2.3.2    General Dimension Theory of Diversity
2.3.3    Demographic Theory of Workforce Diversity
2.3.4    The Socio-Cultural theory of Workforce Diversity
2.3.5    The Framework Theory of Workforce Diversity Management
2.3.6    The Reason Theory of Employee Morale
2.3.7    Addressing a Problem of Employee Morale Theory
2.3.8    Leadership Approach Theory for Solving Morale Problem
2.3.9    Application Theory to Solve the Employee Morale Problem
2.3.10  Managing Workplace Diversity: Issues and Challenges
2.3.11  The Impact of Diversity Training on Commitment, Career Satisfaction and Innovation
2.4       Empirical Review
2.4.1    The Influence of Diversity Management on Employee Morale
2.4.2    The Influence of Workforce Diversity Management on the Polarization aspect of Employee Morale
2.4.3    The Influence of Workplace Management of Diversity on the  Autonomy Aspect of Employee Morale
2.4.4    The Nature of the Effect of Demographic Workplace Diversity on the Potency Aspect of Employee Morale
2.4.5    The Effect of Social-Cultural Workplace on the Participation Aspect of Employee Morale
2.5       Model Specification
2.5.1    Employee Morale Index Model Formulation
2.5.2    Employee Morale Membership Function Model
2.5.3    Leadership Commitment Model
2.5.4    Strategic Planning Model
2.6       Critique of the Literature
2.7       Summary of the Literature Review
References
CHAPTER THREE: RESEARCH METHODS
3.1       Methodological Review
3.2       Research Design
3.3       Sources of Data Collection
3.4       Population of the Study
3.5       Sampling and Sampling Technique
3.6       Operationlisation of the Variables
3.7       Description of Research Instruments
3.8       Data Analysis Technique(s)
3.8.1    Degree of freedom
3.8.1.1 Decision Rule
3.8.2    Confidence Level./Level of Significance
3.8.3    Spearman’s Rank Correlation Coefficient
3.8.4    The z-test statistic
3.9       Validity of Instrument
3.10     Reliability of the Research Instrument
3.11     Pest Model Formulation
References

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Introduction
4.2 Data Presentation
4.3 Reliability Analysis
4.4 Validity Analysis
4.5 Percentage Analysis
4.6 Hypotheses Testing
4.7 Theoretical Analysis
4.8 Model Solution
4.9 Analysis Using Z Test of Population Proportions
4.10 Discussions of Findings
4.10.1 Findings Related to the Personal or Demographic Data of the 740 Respondents
4.10.2 Discussions of the findings on the Dimensions of Workplace Diversity Management
4.10.3 Discussion of the Findings on the type of Diversity Management
4.10.4 Discussion of the Findings on the Dimensions of Employee Morale
4.10.5 Discussion of Findings on the levels of influence of Diversity Management on Employee Morale
4.10.6 The Discussion of the Findings Related to the First Objective
4.10.7 Discussion of the Findings related to the Second Objective
4.10.8 The Discussion of the Findings related to the Third Objective
4.10.9 The Discussion of the Findings related to the Fourth Objective
4.10.10 The Discussion of the Findings related to the Fifth Objective
4.10.11 The Discussion of the Findings related to the PEST Model
References

CHAPTER FIVE: SUMMARY, CONCLUSION, RECOMMENDATIONS, CONTRIBUTION TO KNOWLEDGE AND SUGGESTIONS FOR FURTHER RESEARCH
5.1       Summary
5.2       Conclusion
5.3       Recommendations
5.4       Contribution to Knowledge
5.5       Suggestions for Further Research
References
Bibliography

Appendix


CHAPTER ONE
INTRODUCTION
1.1              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.

1.2              STATEMENT OF THE PROBLEM
Nigerian managers since independence in 1960 have struggled with the challenges of managing religious, ethnic and political diversities bordering on gender, nationality, social class, background, sex orientation, age, mental and physical capabilities amongst others in organisations. This major test of manager’s ability to promote organisational integration has been causing a lot of moral and performance difficulties on diversity management.


There is the difficulty in determining the type of influence diversity management has on employee morale in the brewing industry in Southeastern Nigeria. There is the difficulty in finding out the nature of the effect of demographic work-place diversity on the potency aspect of employee morale in the brewing companies to be studied in Southeastern Nigeria. There is the difficulty in establishing the effect of socio-cultural work place diversity on the participation aspect of employee morale in the brewing companies in the area to be studied....


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