EFFECT OF OUTSOURCING ON EMPLOYMENT RELATIONS IN NIGERIA: A STUDY OF SHELL PETROLEUM PRODUCING AND DEVELOPMENT COMPANY

Cyril Ogugua Obi, Obiageli Gloria Akamobi, Uchenna Juliana Nwumeh, Juliet Ogonna Okonkwo

Abstract


This study investigates the effect of outsourcing practice on employment relations in Multinational Corporations with special focus on Shell Petroleum Producing and Development Company (SPDC). The study also examined the importance of employment relations in organizational performance. Descriptive research methodology was adopted in this study. The questionnaire that was administered in the field survey was the abbreviated version of Hewitt’s Human Resource Outsourcing Survey Questionnaire. The research findings showed that: the management of SPDC engages in unfair labour practices in order to trivialize workers conditions of service; mere transferring human resource management to a third party does not necessarily improve labour-management relations; outsourcing affects workers’ performance in Nigeria; there is positive relationship between employment relations and organisational performance. Based on the research findings, it recommends that the management of SPDC must discontinue its unfair labour practices; should improve the working conditions of its contract staff and show more interest in their career development; should focus attention on fostering mutual employment relations by ensuring that all its human resource policies are not counter-productive especially its outsourcing policy.

JEL: L20; L23; L53

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Keywords


outsourcing, employment relations, workers’ commitment, SPDC

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DOI: http://dx.doi.org/10.46827/ejhrms.v5i2.1043

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