Influence of Collective Bargaining on Organizational Performance in the Tea Factories Managed by the Kenya Tea Development Agency

Abstract

This study investigated the influence of collective bargaining on organizational performance in 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 determined the relationship between Organizational Performance and Collective Bargaining. 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 in three (3) respondents from each of the 23 sampled factories, totaling 69 respondents. Both 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 collective bargaining (Beta = 0.347, t = 3.296, p =0.002) had a significant positive effect on organizational performance. The study recommended that organizations should improve the quality of collective bargaining practices in the workplace for improved organizational performance.