Employee Relation Practices and Organisational Performance of Selected Deposit Money Banks in Lagos State, Nigeria
In today’s competitive business environment, organizations are constantly working to improve their overall performance. In the banking industry, there is a growing understanding of the importance of enhancing employee relations to achieve better performance outcomes. However, despite these efforts, certain banks, especially deposit money banks, are still struggling to effectively manage organizational disparities while maintaining a high level of performance. This indicates that poor employee relations can have negative consequences for banks, including employee dissatisfaction, decreased profitability, reduced market share, and weakened competitive advantage. To address these performance issues, this study aims to investigate the impact of employee relations on the organizational performance of selected deposit money banks in Lagos State, Nigeria. The study adopted survey research design. The population of study consist of 3,098 top, middle, and low-level management of the five selected deposit money banks in Lagos State, Nigeria. A sample size of 450 was determined using researcher’s advisors sampling table, and data was collected using a valid and reliable questionnaire with a Cronbach alpha value raged from 0.706 to 0.813. The data were analysed using both descriptive and inferential tools. A response rate of 94.4% was recorded. Multiple regression analysis was used to determine the effect of the variables using Statistical Package for Social Science (SPSS) version 27. The findings revealed employee relation practices have significant effect on organisational performance in selected deposit money banks in Lagos State, Nigeria (Adj. R2 = 0.398; F(4, 420) = 71.141; p < 0.05). The study concluded that employee relation practices have significant influence on organisational performance in selected deposit money banks in Lagos State, Nigeria. The study recommended that, to optimize performance, management of deposit money banks should prioritize and invest in improving employee relations. By doing so, they can positively influence various aspects of their organization, including employee satisfaction, profitability, market share, and competitive advantage.
Keywords: Collective bargaining, Communication, Employee relation practices, Employee trust, Leadership style, Organisational performance
