ABSTRACT
This research work is entitled “Effect of Conflict Management Strategies on the Performance of Manufacturing Industries in Abia State, Nigeria”. The broad objective of the study was to examine how conflict management affects organizational performance while the specific objectives were to; determine the extent to which competition strategy of conflict management affects organizational effectiveness; ascertain the extent to which avoidance strategy of conflict management affects organizational profitability; ascertain the extent to which compromise strategy of conflict management affects organizational productivity; and examine the extent to which collaboration strategy of conflict management affects organizational innovativeness. The study adopted the survey research design.. The study organizations had a population of 415 made up of both management and non-management staff of the selected organizations. Taro Yamane technique was used to determine the sample size of 203, to whom questionnaire was administered. The collated the data was analyzed using percentages, mean and standard deviation while the hypotheses formulated were tested using Pearson product moment correlation analysis with the help of SPSS version 22. The study found out that Competition strategy of conflict management significantly affects the performance of organizations to a high extent; conflict avoidance affects the performance of organizations; compromise strategy of conflict management affects organizational performance positively and negatively and finally, Collaboration strategy of conflict management proves to be the best tool for managing conflict at the work place since it requires both parties coming together to pursue a similar goal thereby creating room for better inter-personal relationships within the organization which breeds an environment/workforce characterized by unity and dedication and innovation. The study therefore recommends that management of organizations should be alert to conflicting situations in the organization and respond swiftly to avoid escalation to an unmanageable stage; be flexible when deciding on which conflict management style to use in conflicting situations as there exists no one conflict management style that best fits all conflict situations; adequate measures should be put in place to prevent conflict in the organization especially when it appears to be with negative consequences; finally, management should endeavour to educate their staff on the different approaches to conflicts and situations where they could be applicable as this would go a long way in forestalling conflicting situations with negative outcomes in the organization.
TABLE OF CONTENTS
CHAPTER ONE INTRODUCTION
1.1 Background of the Study
1.2 Statement of Problem
1.3 Objectives of the Study
1.4 Research Questions
1.5 Research Hypothesis
1.6 Significance of
the Study
1.7 Scope of the
Study
1.8 Operational
Definition of Terms
1.9 Profile of the
Companies Studied
CHAPTER TWO REVIEW OF RELATED LITERATURE
2.1 Conceptual Framework
2.1.1 Views of conflict
2.1.2 Causes of
Organizational Conflict
2.1.3 Stages of conflict
2.1.4 Types of Conflicts in Organizations
2.1.5 Effects of
Conflict on the Organization
2.1.6 Managing
Conflict in the Organization
2.1.7 Organizational Performance
2.1.8 Effect of Conflict on Organizational
Performance
2.2 Theoretical Framework
2.2.1 Equity Theory
2.2.2 Goal-Interdependence Theory
2.3 Empirical Review
2.4 Gap in Literature
2.5 Summary of Reviewed Related Literature
CHAPTER THREE METHODOLOGY
3.1.1 Research Design
3.1.2 Sources of Data
3.1.3 Population of the Study
3.1.4 Sample Size Determination
3.1.5 Sampling Technique
3.1.7
Validity of Research Instrument
3.1.8
Reliability of Research Instrument
3.1.9
Methods of Data Analysis
CHAPTER 4
DATA PRESENTATION, ANALYSIS AND DISCUSSIONS
4.1
Questionnaire Return Rate
4.2 Data Presentation
4.2.1 Demographic Characteristics of Respondents
4.2.2 Mean and
Standard Deviation of Responses to Items in the Research Instrument
4.3 Test of Hypotheses
4.4 Discussion of
Results
CHAPTER FIVE SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Findings
5.2 Conclusion
5.3 Recommendations
5.4 Suggestions for
Further Studies
LIST OF TABLES
Table
4.1Return Rate of Questionnaire
Table 4.2 Demographic Characteristics of Respondents .
Table 4.3 Mean Score
and Standard Deviation of responses to statements on the extent to which
competition strategy of conflict management affects organizational performance
in manufacturing organizations.
Table 4.4 Mean Score
and Standard Deviation of responses to statements on the extent to which
Avoidance strategy of conflict management affects organizational performance in
manufacturing organizations.
Table 4.5 Mean Score
and Standard Deviation of responses statements on the extent to which
Compromise strategy of conflict management affects organizational performance
in manufacturing organizations.
Table 4.6 Mean Score
and Standard Deviation of responses to statements on the extent to which
collaboration strategy of conflict management affects organizational
performance in manufacturing organizations.
Table 4.7: Pearson Product Moment Correlation Analysis
Result Showing the effect of competition strategy of conflict management on
organizational performance.
Table 4.8: Pearson Product Moment Correlation Analysis
Result Showing the effect of Avoidance
strategy of conflict management on Organizational Performance in the manufacturing
Industry
Table 4.9: Pearson Product Moment Correlation Analysis
Result Showing the effect of Compromise
strategy of conflict management on Organizational Performance in the
manufacturing Industry
Table 4.10: Pearson Product Moment Correlation Analysis
Result Showing the effect of
Collaboration strategy of conflict management on Organizational Performance in
the manufacturing Industry
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE
STUDY
In
recent times, many organizations have witnessed various forms and degrees of
conflict occasioned by the rapid change and severity of the competition that
characterizes the present business environment, thereby drawing the attention
of many researchers (Naser and Shebiab, 2013). According to Rotha (2009),
conflict refers to a process beginning when a person perceives that another
person has negatively, or intends to negatively affect something of value to
the first person. Conflict also has to do with the various actions we take to make
our feelings and perceptions known and also achieve our goals in a manner that
can affect other people from achieving theirs (Meyer, 2004). Shapiro (2006) corroborates
the above stance in relation to the above states that, conflict is a process of
social interaction involving a struggle over claims to resources, power,
status, beliefs, preferences and desires.
According to Alkharb (2007), organizational conflict is one of the
patterns of social integration arising from a clash of interests between
individuals or groups. Corroborating this, Alhrahsha (2010) opines that
conflict is necessary since it is a result of the relationship between
individuals. Kazimoto (2013) adds that organizational conflict is defined as
the existence of disharmony occasioned by differing values, interests and goals
of individuals or groups which hinders others from achieving the organization’s
objectives. In this context, organizational conflict is ever present in any
organization as long as people will compete for jobs, power, recognition and
security (Adomie and Anie, 2005). Organizations, whether public or private,
small or big exist essentially to achieve certain economic, social or political
objectives. These objectives could be in areas such as generating profits,
rendering services, manufacturing goods, improving on turnover etc. Achieving
these objectives however, can only come when human resources are deployed to
make use of the other resources ranging from raw materials to machinery,
finances, and the know-how (information) (George and Jones, 1996). These human
resources possess divergent attitudes, beliefs, abilities and personalities and
perform different functions within the organization. These differences
therefore make conflict inevitable in organizations. Conflict manifests in
diverse ways in organizations. This includes infractions between formal
authority and power and those individuals and units involved; there are also
disagreements over how profits should be shared, how the duties should be
carried out, as well as the durations for work; there are also disagreements
regarding areas of job focus between individuals, units, unions and
authorities. Many schools concerning conflict have consequently come up based
on various views of researchers. The traditional school considers conflict as a
serious phenomenon which infects organizations while the modern school in an
opposing view considers conflict as being unavoidable in almost all areas of
organizational life (Ibazd, 2008; Aboa, 2006). It is therefore, expedient that
management of organizations does not discourage conflicts, rather, they should
manage conflicts in order to the task of management not to suppress or resolve
all conflicts, but to manage the conflicts in order to improve and not worsen
organizational performance.
According
to Taher, Das and Rashed (2008), conflict management entails a process for
changing the negative perceptions in a conflict to that which allows finding
solutions to the conflict. Tschannen-Moran (2001) notes that conflict
management refers to a set of activities which uses a strategy or series of
strategies to support individuals or groups in learning about conflict
situations so that transformative action can take place. Similarly, Adeyemi and
Ademilua (2012) posit that conflict management refers to the process of
controlling or regulating conflict using strategies consistent with internal
processes of resolving conflict by authorities.
This
research therefore, focuses on conflict in organizations and the effects of
conflict management strategies on organizational performance.
1.2 STATEMENT OF PROBLEM
Conflict management as a theme has witness wide interest in recent years
with heightened focus on strategies to handling conflicting situations and
issues as well as the imperative of organizations utilizing high performance
work systems (Awan and Anjum 2015). Due to frequent
organizational conflict, performance in most organizations nosedive (Babin and
Boles, 2000). Managers of business organizations have
the task of ensuring superior organizational performance but are most times
faced with numerous challenges, such as devising the best way to handle
conflict. All organizations irrespective of nature of activities (manufacturing
or service oriented) have members from diverse backgrounds, with different
individual needs and desires interacting frequently. The organization also has
its own objectives and goals which it strives to attain. The diversity existing
among the employees creates conflicts as so does the prevalent incompatibility
between organizational goals and employees’ goals. Also, this situation is
inevitable and thus impresses upon management to devise means and strategies
suitable to manage every conflict that may arise in organizations occur in the
organization in order to sustain efficient performance. Based on this, this
study aims to investigate the effect of conflict management strategies on
organizational performance using Nigerian Breweries and Saclux Industries as
study organizations.
1.3 OBJECTIVES OF THE
STUDY
The
overall objective of this study is to investigate the effect of conflict
management strategies on performance of manufacturing industries. However, the
specific objectives of this study are to:
i. determine
the extent to which competition strategy of conflict management affects organizational
effectiveness.
ii. ascertain
the extent to which avoidance strategy of conflict management affects
organizational profitability.
iii. investigate
the extent to which compromise strategy of conflict management affects
organizations’ productivity.
iv. examine
the extent to which collaboration strategy of conflict management affects
organizational innovativeness.
1.4 RESEARCH QUESTIONS
To facilitate the actualization of the objectives of
this study, the following questions will serve as a guide for the course of the
study:
i. To
what extent does competition strategy of conflict management affect
organizational effectiveness?
ii. To
what extent does avoidance strategy of conflict management affect
organizational profitability?
iii. To
what extent does compromise strategy of conflict management affect
organizational productivity?
iv. To
what extent does collaboration strategy of conflict management affect
organizational innovativeness?
1.5 RESEARCH HYPOTHESIS
The following null hypotheses have been formulated
in order to help in drawing valid conclusions:
Ho1: Competition
strategy of conflict management does not significantly affect organizational effectiveness.
Ho2: Avoidance
strategy of conflict management does not significantly affect organizational
profitability.
Ho3: Compromise
strategy of conflict management does not significantly affect organizational productivity.
Ho4: Collaboration
strategy of conflict management does not significantly affect organizational innovativeness.
1.6 SIGNIFICANCE OF THE STUDY
This
research work will be of great importance to various publics. Business organizations will have a well
validated in information and knowledge of how proper conflict management
strategies can affect organizational performance. Also, Business managers will
benefit from this study as they will better understand how the various
variables of conflict management affect the performances of the organization in
their care. It will also help policy makers when making decisions; it will add
to the general literature enrichment; and serve as a good reference material
for prospective researchers and students who would want to conduct research in
areas related to conflict management and performance.
This
study will also provide theoretical basis for teeming researchers on the
subject of conflict management and organizational performance as well as
provide more empirical validations to the existing studies on the effect of
conflict management managerial on organizational performance.
1.7 SCOPE OF THE STUDY
1.7.1 Unit scope
This study is conducted to investigate the effects
of conflict management on organizational performance.
1.7.2 Content scope
The
research attempts to explore and highlight the specific conflict management
strategies and their effects on the performance of manufacturing organizations
with particular focus on determining the extent to which competition strategy
of conflict management affects organizational performance; ascertaining the
extent to which avoidance strategy of conflict management affects
organizational performance; ascertaining the extent to which compromise
strategy of conflict management affects organizational performance; and
examining the extent to which collaboration strategy of conflict management
affects organizational performance.
1.7.3 Geographical scope
The
research also is conducted in Aba and Umuahia Local Government Areas of Abia
state, Nigeria.
1.8 OPERATIONAL DEFINITION OF TERMS
i. Conflict: This refers to a disagreement
over physical or emotional issues often born out of perception.
ii. Management: This
refers to the act or skill of dealing with situations that require controlled
in some ways.
iii. Conflict management Strategies: This
refers to the methods or approaches adopted in handling conflicts mostly in an
organized setting.
iv. Effect: The Oxford Dictionary of
current English defines "effect” as; “the result or consequence of an
action”.
v.
Performance: This refers
to the execution of an action, or the act of doing a job.
vi.
Industry: This refers to a
group of businesses that provide similar goods and services to the public.
1.9 PROFILE
OF THE ORGANIZATIONS UNDER STUDY
Nigerian breweries plc.
Nigerian
Breweries Plc. is the pioneer and largest brewing company in Nigeria. It serves
the Nigerian market and exports to other parts of West Africa.
The
Nigerian Breweries was incorporated in 1946. Its first bottle of beer, Star,
Lager, rolled of the bottling lines of its Lagos brewery in June 1949.Other
breweries were commissioned including Aba Breweries in 1957, and Kaduna Brewery
in 1963, and Ibadan brewery 1982. In September 1993, the company acquired its
fifth brewery in Enugu and in October 2003,its sixth brewery, sited at Ameke in
Enugu. Ama Brewery began brewing on the 22 March 2003 and at 3omilliom
hectoliters is brewery in Nigeria. Operation at Enugu breweries will
discontinue in 2004, while the company acquired a malting plant in Aba in 2008.
In
October 2011, Nigeria brewery acquires majority equity interest in Sona system
associate in business management Limited (sons system) and life brewery limited
Heineken N.V. This followed Heinken’s acquisition of controlling interests in
five breweries in Nigeria from Sona Group in January 2011.Sona systems two
breweries in Otta and Kadunna, and Life Breweries bin Onitsha have now become
part of Nigeria Breweries plc, together with the three brands; Goldberg lager,
Malt Gold and life continental lager.
In
December 31st 2014, Nigeria Breweries Plc. completed the merger with
consolidated Breweries plc which added the three breweries in Ijebu-ode,
Awo-Omama and Markudi. The brands 33 Export larger, William Dark Ale, Turbo
King Stout, More lager, Breezer, Himalt
and Maltex (the first Nigerian malt drink) were also added.
In
November 2015, Nigerian Breweries launched the international brand Strongbow
cider which makes it the first in Nigeria to produce and bottle the cider
category beverage.
Nigerian
Breweries Plc. now has ten operational breweries from which its products are
distributed to all parts of Nigeria, in addition to the malting plants in Aba
and Kaduna. Nigerian Breweries also supports operations in Champion Breweries
Plc, Uyo.
The
Nigerian Breweries owns brands like Heineken, Star Lager. Climax Energy Drink,
Gulder, Goldberg, 33 Export, Legend Extra Stout, Amstel Malta, Maltina, Malta
Gold, Maltex, Hi Malt, Strongbow Apple Ciders, and Fayrouz.
Saclux industries Nigeria
limited
Saclux
Industries Nigeria Limited took its feet in the early 1970’s as a trading
concern with the name “Sammy Bros Nigeria” in line with his quest, passion and
drive to fashion, a viable business, the Chairman/CEO, single-handedly
supervised and nurtured the outfit basically with the concern of dealing on
paints. By 1981, Sammy Bros Nigeria won the heart of discerning end-users of
paints as a major distributor to so many manufacturing companies in Nigeria and
abroad.
Consequent
upon its position in the surface coating, the need to establish a paint company
was muted. However, in 1986, production of Saclux paints was started under the
business name Saclux Industries Nigeria Limited. In the same 1986, Saclux
Industries Nigeria Limited was incorporated as a Limited Liability Company with
RC. NO 79691. Today, the company has moved from Grace to Grace challenges
notwithstanding giving birth to other companies viz:
1. Rushed
Industries Nigeria Limited- Makers of Sapil Plastics Products and Polythene
Shopping Bags and an Alkyd Resin Plant.
2.Monica
Integrated Global Industries Limited Palm Kernel Crushing/Processing Plant.
Saclux
Industries Nigeria Limited is today a company and a major player in the
Manufacturing sub-sector of the Nigeria economy with a staff strength of 130.
In view of its expansion, the company in 2007 moved into its state of art and
ultra-modern industry complex located at Ohokobe-Afaraukwu along Old Aba Road
Umuahia, while at the same time retaining and maintaining its old factory at
Amuzukwu-Ibeku also in Umuahia.
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