Effect Of Alternative Dispute Resolution Practices On Employee Productivity In The Export Processing Zones In Kenya

Abstract

Organizations have in the past failed to manage disputes within their staff. This has largely been due to lack of proper mechanisms within the organization that provide for the solving of the disputes that arise in the workplace. The effect of the organizations’ failure has manifested itself in an increase of attendant man-days lost and industrial strikes. This has led to a general decline in the employee’s productivity. Kenya’s labour productivity growth declined from 4 per cent in 2007 to 1.4 per cent in 2012. Employee productivity is a significant indicator of an organization’s competitive advantage. It is utilized to enable the organization make forecasts as to its future undertakings. Recognizing this, it is important for the organization to seek to manage the employees with a view to fostering their productivity. This study sought to establish the effect of employing alternative dispute resolution practices on employee productivity in the Export Processing Zone Enterprises. The study variables were negotiation, mediation, and arbitration and employee productivity. The study adopted descriptive research design and employed the stratified sampling procedure using a sample population of 400 that was determined using the Taro Yamane formula. Questionnaires were used to collect primary data which were validated using Cronbach’s test. Data was collected using drop and pick process and was collected in a two week period. It was then analyzed by aid of Statistical Package of Social Scientists (SPSS). The findings were summarized using statistical measures of dispersion while data is presented using tables and figures. The study found out that negotiation, mediation and negotiation have a positive and significant relationship on employee productivity. This study thus recommends that Export Processing Zone companies need to adopt alternative dispute resolution mechanisms in general and in particular negotiation (since it had the largest coefficient to improve employee productivity within the workplace.