THE IMPACT OF INDUSTRIAL CONFLICT ON ORGANIZATIONALPERFORMANCE
(A CASE STUDY OF NIGERIA BREWERIES
9TH MILE CORNER NGWO ENUGU STATE)
This project studied the Impact of Industrial Conflict on Organizational Performance. A case study of Nigeria Breweries 9th mile corner Ngwo Enugu. Questionnaires were distributed as the tools which were used to analyze the data. Firstly, the researcher noted that inadequate training of headers/staff hinders the attainment of goal stated in Nigeria Breweries Enugu.
Secondly, not applying the fourteen principles of management will result in inefficient and ineffective industrial conflict in Nigeria Breweries Ltd (N.B.L) Enugu. Finally, the researcher recommended that proper training should be done regularly to achieve effective and efficient result.
TABLE OF CONTENTS
1.1 Background of the study
1.2 Statement of the Problem
1.3 Purpose of the study
1.4 Scope of the study
1.5 Research Questions
1.6 Limitation of the study
1.7 Definition of Terms
2.1 Meaning of Conflict
2.2 Types of Conflict
2.3 Sources of Organizational Conflicts
2.4 Management Conflicts
2.5 Impact of Conflict
2.6 Importance of conflict in an organization
2.7 Different Types of Conflicts
3.0 Research Methodology
3.1 Research Design
3.2 Area of Study
3.3 Population of Study
3.4 Sample and Sampling Procedure
3.5 Instrument of Data Collection
3.6 Reliability of the Instrument
3.7 Method of Data Collection
3.8 Method of Data Analysis
4.0 Data Presentation and Analysis
4.1 Presentation and Analysis
4.2 Test of Hypothesis
4.3 Summary of Findings (Result)
5.0 Discussions, Recommendations and Conclusions
5.1 Discussion of findings (Result)
5.2 Implication of the Research Findings
5.4 Suggestion for Further Studies
Individuals come together to form association they do so as to satisfy their basic needs which would be difficult to attain without organization. One of such associations is referred to as trade union. The expression, according to Section 1 of trade union Acts 1973 (as amended by the trade unions Amendment Acts 1973) states that, “any combination of workers or employers, whether temporary or permanent, the purpose of it is to regulate the terms and conditions of employment of workers, whether the combination in question would or would not, apart from this act, be an unlawful combination by reason of any of its purposes being in restraint of trade and whether its purposes do or do not include the provision or benefits for its members”. Two main issues stand out from the above expression are:
- a) The trade union must originate from a combination of workers or employers and
- b) Its purpose must concern the regulation of terms and conditions of employment of workers only.
There are professional’s grades and managerial people that join together for similar purpose as those of trade unions but refer to their organization as professional association. Workers join in trade unions to improve the workers bargaining strength with the employer through collective functions. They also join to minimize the humiliating effect and treatment which non-ownership of property brings to workers. Trade unions therefore, give workers who have no status a collective power. Other reasons for joining trade union are social and psychological needs.
Since trade unions refers to the association of workers and employers, the relationship which bring both workers and their employers together is known as industrial relation. Leeds (1992) say that industrial relation are concerned with the practices and problems arising from the employment relationship between employer and employee in an organization and with finding ways of preventing or overcoming internal conflicts.
In other words, Akpala (1992) defines industrial relation as; the regulation of employment relations by workers of the organization and a third party, private or government acting as an empire of a controller, the purpose of which is joint decision making for establishing job rules and job values and for co-operation of manpower resources for the attainment of the organizational objectives of the enterprise the trade union and of course the state. According to the author, all industrializing countries have their systems of industrial relations among management, labour and government agents. Each system is for channeling of worker protest and for establishing job values. He says that industrial relations involve rule making, the subject of which is wages, working conditions, trade union right etc.
1.1 BACKGROUND OF THE STUDY
Every industrial relations encounter conflict as part of its resolution. Conflict is the phenomenon of differing and opposing interest or perspectives and it is concretized by the activities of individuals or groups, organized with and identify themselves within compartments of some defined categories of these interests or perspectives. The conflict phenomenon may not be all that dramatic but many company leaders have assumed erroneously that it exists. According to Ejiofor (1989) it depends on the balance power in any given time available to the subordinate group for challenging the dominant group within the industrial relation system.
Stoner et al (1989) defines organizational conflict as disagreement or misunderstanding between two or more organizational members or group of steaming from the need to share scarce resources or independent work activities or from differences in status, goals or cultures. Conflict as earlier stated may be dysfunctional for the organization because it uses up times, energy, money etc. uncontrolled conflict can bring chaos in the organization, resulting to such problems as frustration among employees, low morale, high labour turnover, truancy, strained relationship between workers and employers deliberate low productivity. On the other hand, a functional perspective of conflict as it is seen leads to improve decision making, growth and co-operation among workers which lead to high productivity. It is necessary employer’s deliberate low productivity. It is necessary to resolve conflict so as to bring about harmonizing working environment that enhances achievement of organizational objectives.
The basis of conflict depends on the finding which laid down on unequal recognition of interests and in the equal perceptions and treatment of unequal entities and situations. These arising differences structure from unequal recognitions of opposite opinion or interests and capabilities are responsible for the hierarchical relationship found within the work environment as equity in the organization will rely on the likes being treated the same, ensuring opportunities that exist for the exertion and full attainment of goal according to differing capabilities by the human element that compose society.
Taking the Nigerian working environment into considerations the need for examining the impact of conflict on organizational performances becomes increasingly important. The conflict between the Federal Government and the Nigerian Labour Congress in 2012 led to lost of billions of Naira. Also the conflict between Abacha’s government and the Nupeng and panasen led to the shortage of petroleum products, vandalization of refinery equipments as well as distribution of crude oil pipe that connects porthacourt and Kaduna refineries.
According to Akpala (1995) the conflict between the Federal Government and the Academic staff union (A.S.U) in (1994) had a “face off” which resulted in deterioration of the nations educational sector. At the peak of the incident many lecturers left the country in search of better opportunities else where. Others, who stayed behind but were unwillingly to continue, were asked to vacate their residential quarters at the expiration of the negative impact of conflict. On it, alternative programmes were designed to allow for upliftment of all educational sector using cost reduction strategies recognizing the unavoidable nation of conflict in organizations.
Historical Background of Nigeria Breweries Plc 9th Mile CornerEnugu State
Nigeria brewery Enugu Ngwo is the fifty breweries acquired in Nigeria. However, because of the observable down – town in the nation’s economy, building work did not take off. Nigerian breweries bought the assets of “Diamond Breweries in September 1993 and also fulfilled its desire to have a brewery in Enugu. The argument put forward for this acquisition was that it would improve the company’s services to its customers in the Enugu axis.
Diamond Breweries was not built to the standard of Nigeria Breweries. Refurbishing work had to be done such plant and equipment would be so updated as to ensure that the products brewed there would be of the same quality as those breweries in the other locations. It cost some N50 million to get product in work to start and it does appear that reliabilitation work was not completed as at 1996. When fully operational, the brewery is designed to produce 55 million cartons per annum. As at 1996, it was at the level of 2.1 million cartons, through the brewery manager, W.A Nubi, was optimistic that the figure would be exceeded. As at (1996) Enugu breweries were producing only Star and Gulder. It services for four (4) states in terms of distribution of products Taraba, Benue, Akwa-Ibom and Enugu state itself. Because only star and Gulder are produced in Enugu the company’s other products are brought to Enugu from Aba for distribution to the “territories” demarcated zone’s covered by the sales representatives. The presence of Nigeria Brewery in Enugu is a source of joy in Enugu and its environs and the benefits of having a company with that reputations there are beginning to be reaped. The investment have been heavy but the company is satisfied that they are worthwhile the asset of diamond breweries were acquired at a time of great economic difficulties which is an evidence of the confidence that Nigeria breweries has in the future of Nigeria.
1.2 STATEMENT OF THE PROBLEM
As s result of the ever changing business environment the existence of conflict becomes increasingly important and worrisome in organization as it may be dysfunctional. Several studies have shown that the bulk of research done on industrial relation has been concentrated on trade union but little or no research has been done in the area of impact of information available (Leads 1989, Benson Elung 1998) have not been based on field research.
The problems of this field research study are:
- What are those things that lead to industrial conflict?
- How could these conflicts be minimized?
- To what extent will industrial conflict affect organizational performance?
1.3 PURPOSE OF THE STUDY
The general purpose of this study is to investigate on the impact of industrial conflict on organizational performance.
The study aims at:
- To know what industrial conflict is all about
- To determine the cause of conflict in Nigeria Brewery Company PLC, 9th mile corner, Enugu.
- To determine the importance of conflict in the organization.
- To determine various methods in resolving conflicts
- To determine the possible ways of averting conflict in organization
1.4 SCOPE OF THE STUDY
The scope of this study is very wide because it has to do with all organization no matter the type; this study is based on the impact of industrial conflict on organizational performance, and Nigeria Breweries 9th Mile Corner Ngwor Enugu State being the area of concentration.
1.5 RESEARCH QUESTIONS
To achieve the objective of this study, the following research questions will be examined.
- What is Industrial conflict?
- What are the immediate causes of conflict?
- What are the importance of conflict in the organization?
- Which methods are used in resolving of conflict?
- What are the impacts of unresolved conflict in organizational performance?
1.7 DEFINITION OF SPECIAL TERMS
- Conflict: conflict is said to exist between two or more industries or work group when the disagree and clash over a significant issue or number of issues. A conflict is a dispute or struggle between two parties that is characterized by over expression of hostility of intentional interference in the goal attainment of the opposing part (Waxy and Yad, 1984:92)
- Labour: labour involves the human resources use in the accomplishments of organizational goals.
- Management: management is effective utilization of human and material resources to achieve the organizational goals or objectives.