Institutional Strategies and Collective Bargaining Agreements in the Tea Industry: A Case of James Finlay Company Limited Kericho County, Kenya
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Date
2017
Authors
Motanya, Julius Mong’are
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Collective Bargaining takes many different forms and takes place at different levels.
Whereas Collective Bargaining can be adversarial, it is effective in building trust between
parties and the resultant agreement should bind the signatories and those on whose behalf
it is concluded. There has been misinterpretation of collective bargaining as a forum for
negotiating salary reviews, Lack of or inadequate training in negotiation skills, the
inability of negotiators from both sides to identify easy tradeoffs among the terms being
negotiated, tendency to use collective bargaining process as a platform for political
activism etc. The general objective of this study was to investigate the influence of
institutional strategies on collective bargaining agreement. The purpose of the study was
to determine the effect of Institutional strategies on collective bargaining agreements in a
tea industry a case of James Finlay Limited, Kericho County. The study used descriptive
survey research design as it sought to describe data and characteristics about the
population or phenomenon being studied. The target population comprised of 123
respondents from five Departments in James Finlay Company Limited. Primary data was
collected for the purpose of this study and analysed using descriptive statistics. Stratified
sampling technique was used to select the sample. Simple random sampling method was
used to select the sampled employees. Taro Yamane’s formula was used to determine the
sample size for the study. The sample size used was 94 respondents which made up for
0.76% of the target population (123). Both qualitative and quantitative data were
collected. Data collection was through self administered questionnaires. The study was
composed of respondents from different age gaps whose cumulative frequency show that
79.5% of the respondents were aged 36 years and above. The findings also showed that
64.1% were female and 35.9% were male. The findings further showed that majority of
the respondents had attained a high level of education whose cumulative frequency was
65.4% of the respondents who had attained a Bachelor’s degree level of education and
above. The study established that alternative dispute resolution strategy, human capital
development strategy and participatory management strategy had a positive and
significant effect on collective bargaining agreement. The study concluded that
alternative conflict management that seeks to address the question of how people can
make better decisions together, particularly on difficult, contentious issues. The main
theoretical framework of the study was guided by theories of human capital, Mary parker
Follett’s conflict management, stakeholder theory and Michael porter’s competitive
analysis model theory. The study recommends that organizations should adopt
negotiation, mediation and arbitration methods as alternative conflict resolution strategies
because they usually take far less time to reach a final resolution than if the matter were
to go to trial by way of litigation.
Description
A Research Project Submitted to the School Of Business in Partial Fulfilment of the Requirements for the Degree of Master of Business Administration (Strategic Management) Of Kenyatta University October, 2017
Keywords
Institutional Strategies, Tea Industry, James Finlay Company, Kericho County, Kenya