Influence of Trade Union Activities on Organizational Performance In Tea Factories Managed By Kenya Tea Development Agency

Abstract

This study investigated the influence of trade union activities on organizational performance in the tea factories managed by KTDA. The Kenyan tea industry faces numerous challenges that have impacted its overall performance and one potential explanation that has gained increased attention is the role of trade unions in enhancing the industry's fortunes. The study purpose was to investigate the influence of trade union activities on organizational performance in tea factories managed by KTDA. The specific objectives were to examine the impact of union affiliation, to investigate the influence of collective bargaining and to assess the effect of industrial democracy on organizational performance in tea factories managed by the KTDA. In order to address stated objectives, the researcher formulated research hypothesis and sought to test them. The study's findings offer valuable insights into the influence of trade union activities on organizational performance, providing organizations with the necessary knowledge to develop effective management strategies to enhance their performance. The literature review acknowledged other researchers work in the area of trade unions and organizational performance globally and locally. The study determined the relationship between the dependent (Organizational Performance) and independent variables (Union Affiliation, Collective Bargaining and Industrial Democracy). A Descriptive Survey design was adopted to conduct the study in the sixty-six (66) tea factories managed by the KTDA which operates in all the tea-growing regions within Kenya. The factories were categorized into seven strata based on their regional location, and a sample size of 30% was randomly drawn from each stratum. This resulted in a total of 23 factories being selected for the study. Thereafter, the Human Resource and Administration Manager and Union Official were selected using purposive sampling, whereas Union Members were chosen randomly, resulting to three (3) respondents from each of the 23 sampled factories, totaling to 69 respondents. Both the primary and secondary data were used in this study, with primary data being collected using structured questionnaires. The questionnaires were tested and revised, and reliability was assessed yielding a Cronbach's alpha coefficient of 0.786 that affirmed the reliability of the measure. The collected data underwent both descriptive and inferential statistical analysis. The analysis revealed that all three independent variables: union affiliation (Beta = 0.344, t = 3.245, p = 0.002), collective bargaining (Beta = 0.347, t = 3.296, p =0.002), and industrial democracy (Beta = 0.327, t = 3.062, p = 0.003) had a significant positive effect on organizational performance. The study recommended that organizations should encourage union affiliation, work with their unions to improve the quality of collective bargaining and promote democratic practices in the workplace for improved organizational performance. Future studies to consider investigating the role of other variables such as leadership, organizational culture, and technology in moderating or mediating the relationship between union activities and organizational performance.