THE IMPACT OF INDUSTRIAL CONFLICT ON ORGANIZATIONAL PERFORMANCE (A CASE STUDY OF NIGERIA BREWERIES 9TH MILE CORNER NGWO ENUGU STATE)
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THE
IMPACT OF INDUSTRIAL CONFLICT ON ORGANIZATIONAL PERFORMANCE
(A
CASE STUDY OF NIGERIA BREWERIES
9TH
MILE CORNER NGWO ENUGU STATE)
ABSTRACT
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
CHAPTER ONE
Introduction
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
CHAPTER TWO
Literature Review
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
CHAPTER THREE
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
CHAPTER FOUR
4.0
Data Presentation and
Analysis
4.1
Presentation and
Analysis
4.2
Test of
Hypothesis
4.3
Summary of Findings
(Result)
CHAPTER FIVE
5.0
Discussions, Recommendations and Conclusions
5.1
Discussion of findings
(Result)
5.2
Implication of the Research
Findings
5.3
Conclusions
5.4
Suggestion for Further
Studies
Bibliography
Appendices
CHAPTER ONE
INTRODUCTION
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 Corner
Enugu 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:
1.
What are those things that lead to industrial conflict?
2.
How could these conflicts be minimized?
3.
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:
1. To
know what industrial conflict is all about
2. To
determine the cause of conflict in Nigeria Brewery Company PLC, 9th
mile corner, Enugu.
3. To
determine the importance of conflict in the organization.
4. To
determine various methods in resolving conflicts
5. 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.
1. What
is Industrial conflict?
2. What
are the immediate causes of conflict?
3. What
are the importance of conflict in the organization?
4. Which
methods are used in resolving of conflict?
5. What
are the impacts of unresolved conflict in organizational performance?
1.7
DEFINITION OF SPECIAL TERMS
1.
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)
2.
Labour: labour involves the human resources use
in the accomplishments of organizational goals.
3.
Management: management is effective utilization of
human and material resources to achieve the organizational goals or
objectives.
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