Abstract
This study investigates the effect of outsourcing practice on employment relations in Multinational Corporations with special focus on Shell Petroleum Producing and Development Company (SPDC). The study also examined the importance of employment relations in organizational performance. Descriptive research methodology was adopted in this study. The questionnaire that was administered in the field survey was the abbreviated version of Hewitt’s Human Resource Outsourcing Survey Questionnaire. The research findings showed that: the management of SPDC engages in unfair labour practices in order to trivialize workers conditions of service; mere transferring human resource management to a third party does not necessarily improve labour-management relations; outsourcing affects workers’ performance in Nigeria; there is positive relationship between employment relations and organisational performance. Based on the research findings, it recommends that the management of SPDC must discontinue its unfair labour practices; should improve the working conditions of its contract staff and show more interest in their career development; should focus attention on fostering mutual employment relations by ensuring that all its human resource policies are not counter-productive especially its outsourcing policy.
 
 JEL: L20; L23; L53
 
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Highlights
Unemployment occurs when a person who is actively searching for employment is unable to find work
This paper is designed to investigate the effect of outsourcing on employment relations investigate with special focus on Shell Petroleum Producing and Development Company (SPDC) with the aim of ascertaining its impacts on the workers’ productivity
In the case of SPDC where it has been found that majority of its contract staff are not satisfied with their job and not committed to it, the consequence may be problematic
Summary
Unemployment occurs when a person who is actively searching for employment is unable to find work. Unemployment is often used as a measure of the health of the economy. The most frequently cited measure of unemployment is the unemployment rate. This is the number of unemployed persons divided by the number of people in the labor force. The failure of the economy to fully employ its labour force is called unemployment. Unemployment is a state or condition in which a person, who is genuinely willing to work for money, is not being able to find a job. The decline of job availability has been widely attributed to new technology, competition from foreign companies, and the outsourcing of production and service by most organizations
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