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International Journal of Management and Entrepreneurship
(IJME) Vol. 1, No. 1, COOU 2019
CONFLICT MANAGEMENT AND ORGANIZATIONAL
PERFORMANCE: A STUDY OF SELECTED BREWERIES IN THE
SOUTH EAST NIGERIA
Adilo Joy Nneka Department Of Business Administration, Faculty of Management Sciences,
Chukwuemeka Odumegwu Ojukwu University, Igbariam Campus
Abstract
This study focused on conflict management and organizational performance with particular
reference to selected breweries in the South East, Nigeria. The objectives aimed to determine the
relationship between conflict management strategies (negotiation, joint consultation, collective
bargaining and alternative dispute resolution) and organizational performance. The study
reviewed relevant theoretical and empirical literatures. This study is anchored on unitarism,
pluralist and radical theory. Survey research technique was adopted as the design of the study.
The data used were sourced from primary sources. A total of five brewery companies were
sampled. The data generated were analyzed using frequency tables and percentage analysis.
Regression analysis was employed to test the hypotheses formulated. The study revealed that all
the conflict management strategies studied namely negotiation, collective bargaining, joint
consultation and alternative dispute resolution were found to have significant positive
relationship with organizational performance. The study concludes that conflict management has
significant positive relationship with organizational performance in selected brewery companies
in South East Nigeria. The study recommends that Managers should adopt the conflict
management strategies above since they are found to be effective in managing conflicts in
organization.
Key Words: Conflict management, Negotiation, joint consultation, collective bargaining,
alternative and dispute resolution,
1.1 Background of the Study
Increasing uncertainty and complexity in the operating environment of organizations provide
fertile ground for the onset of conflict in the workplace. Workplaces are breeding grounds for
conflict, including those arising out of harassment, discrimination and personality clashes
(between employees, employees and their managers, particularly recently assigned managers).
Conflict among workers in an organization is inevitable. If it is managed properly, it will bring
catalyst for change and can have a positive impact on employee satisfaction and performance of
the organization. Conversely, unmanaged conflict negatively impacts both employee satisfaction
and job performance. When organizational leaders ignore workplace conflict, they send a
message that unsatisfactory job performance and inappropriate behavior are acceptable (Abdul
and Sehar, 2015).
Conflict is a part of organizational life and may occur between individuals, between the
individual and the group, and between groups (Weihrich, 1992). While conflict is generally
2
perceived as dysfunctional, it can also be beneficial because it may cause an issue to be
presented in different perspectives. Conflict has both positive and negative effects (Rusell and
Jerome cited in Hotepo, Asokere, Abdul-Azeez1 and Ajemunigbohun, 2010). It can be positive
when it encourages creativity, new looks at old conditions, the clarification of points of view,
and the development of human capabilities to handle interpersonal differences. Conflict can be
negative when it creates resistance to change, establishes turmoil in organization or interpersonal
relations, fosters distrust, builds a feeling of defeat, or widens the chasm of misunderstanding.
Conflict is described as the presence of discord that occurs when goals, interests or values of
different individuals or groups are incompatible and frustrate each others‘ attempt to achieve
objectives in an organization (Kazimoto, 2013). It is a communication process and an inevitable
consequence of transactional relationship manifesting in disagreement and dissonance with and
between individuals and groups in the work-environment. In this context, workplace conflict is a
fact of life in any organization as long as people will compete for jobs, power, recognition and
security (Adomie and Anie, 2005). Therefore, the task of management is not to suppress or
resolve all conflicts, but to manage them in order to enhance and not to detract from
organizational performance.
A constructively managed conflict induces a positive performance, while destructively managed
conflict heats up the work environment to bring about dislocation and polarization of the entire
group with reduction in productivity and job performance (Akanji, 2005). This is suggestive that
a well-managed conflict aims at the improvement of organizations for the purpose of stimulating
performance in the work-situation. Through good conflict management strategies, weaknesses in
the organizational decision-making are exposed which may prompt the establishment to effect
changes and search for positive solutions. Hence, management are duty bound to resolve conflict
properly for the sake of increasing organizational performance, because the outcome of such
action will result in good communication, time management, good cooperation and increase
corporate productivity (Obasan, 2011).
Empirical research findings have provided insights into causative factors of workplace conflict.
Hotepo, Asokere, Abdul – Azeez and Ajemunigbohun (2010) found lack of resources, different
expectation, competition, lack of cooperation, interdependence and communication problems as
factors that have caused conflicts in the Nigerian service industry. Relatedly, in the banking
sector in Nigeria, Obasan (2011) identified unacceptable terms of employment, poor human
relations between management and workers , non – consultation with employees before making
key decisions affecting them, anti-union posture of management and lack of effective mechanism
for prevention of conflict as multiple causal factors of workplace conflict. A Philippian study
also conducted in the banking industry by Tsevendorj (2008) rated communication failure,
perception, values and culture problems as moderately serious sources of conflict. Thus, most
organizational conflicts have economic and goal incompatibility orientations in the workplace.
In many organizations in Nigeria today especially brewery companies, internal (intrapersonal)
and interpersonal conflicts are consuming so much organizational time and attention that
organizations are starting to look as though conflict is their primary business (Ojielo, 2002). This
development is largely due to the inability of leaders in Nigerian work organizations to view the
management of conflict as systematically as they view information, human resources, and
3
financial management systems. Instead, conflict is viewed and handled in piecemeal and is
considered as local events. The inability to view and manage workplace conflicts systematically
has therefore rendered conflict dysfunctional in some organizations. This is evidenced by the
high frequency of strike action, unhealthy rivalry between and among sub-units and individuals
within an organization, sabotage at workplace, slow work, labour turnover, absenteeism, lack of
productivity, general inefficiency, high rate of industrial accident, low morale, withholding of
vital knowledge and a host of others that are being perpetrated by workers in workplaces (Ojielo,
2002). This study therefore, will examine conflict management and organizational performance
in Nigerian Breweries using evidence from selected breweries in South-East zone of Nigeria.
1.2 Statement of the Problem
Conflict in an employment relationship has been an issue of continuing interest and debate.
Dealing with conflicts in organisations has over the years been seen as the sole responsibility of
the managers who often times took a rigid stand on how to deal with it; organisations that
address conflicts in this manner failed to recognize that conflict is natural in organisational life
and has its own both benefits and costs (Ebe and Osibanjo, 2014).
In many organizations in Nigeria today, internal (intrapersonal) and interpersonal conflicts are
consuming so much organizational time and attention that organizations are starting to look as
though conflict is their primary business (Ojielo, 2002). This development is largely due to the
inability of leaders in Nigerian work organizations to view the management of conflict as
systematically as they view information, human resources, and financial management systems.
Instead, conflict is viewed and handled in piecemeal and is considered as local events. The
inability to view and manage workplace conflicts systematically has therefore rendered conflict
dysfunctional in some organizations.
Unresolved conflict in the organization generates many serious consequences involving high
financial and human costs. Conflict may lead to frustration, tension, low morale, missing
meeting deadlines, lack of self confidence, low trust level, communication problems,
absenteeism, and legal proceedings (Buss, 2009). Mismanaged conflict affects productivity
(Cram and MacWilliams, 2009). Mishandled conflict affects employees‘ health and wellbeing,
which in turn results in absenteeism. It is a habitual pattern of absence from duty or obligation
(Jung, 2003). Mismanaged and unresolved conflict causes stress, reduces confidence levels,
makes employees anxious, and frustrated. All these lead to lesser job satisfaction, humiliation,
embarrassment, and stressed; these induce psychological and physical diseases. Escalated
conflict leads parties to shun contact, end communication, withheld information or provide
wrong information (Cram and McWilliams, 2009)
Empirically, conflicting findings abound on the relationship between conflict management and
organizational performance. Olukayode (2015) empirical tests showed a significant positive
relationship between conflict management strategies (collective bargaining, compromise, and
accommodation) and organizational performance. Abdul and Sehar (2015) and Mba (2013)
studies found that conflict management has a significant effect on organizational performance.
Whereas, Muhammad & Maria (2013) found that conflict management has a negative effect on
organizational performance. Hotepo, Asokere, Abdul-Azeez1 and Ajemunigbohun (2010) found
that conflicts have both negative and positive effects on organization. This conflicting findings
4
show that the relationship between conflict management and organizational performance have
not been resolved, hence this study is hypothesized to solve this problem.
1.3 Objectives of the Study
The main objective of the study is to examine conflict management and organizational
performance in Nigerian breweries. The specific objectives include:
1. To determine the extent of relationship between negotiation and organizational performance.
2. To determine the extent of relationship between collective bargaining and organizational
performance.
1.4 Research Questions
The following research questions were formulated to provide direction to this research work.
1. Is there any significant relationship between negotiation and organizational performance?
2. How significant is the relationship between collective bargaining and organizational
performance?
1.5 Hypotheses
The following research hypotheses guided this study.
Ho1: There is no significant positive relationship between negotiation and organizational
performance.
Ho2: Collective Bargaining has no significant positive relationship with organizational
performance.
Finally, this study will provide researchers especially student research theoretical and empirical
foundation for further research on the area relating to conflict management and organizational
performance.
2.0 Review of Related Literature
2.1 Conceptual Review
2.1.1 Organizational Conflict
Organizations are networks of interpersonal relationships designed to reach an objective and
accomplish goals. They transform inputs into the desired end-goals by putting together
technologies, procedures and people. The management system is responsible for the coordination
of these resources to reach the goals. To be a part of an organization or to do business is to be in
conflict. Conflict is built into organizational life. According to Adomi and Anie (2005) conflict is
a fact of life in any organization as long as people compete for jobs, resources, power,
recognition and security. In addition, dealing with conflicts is a great challenge to management.
It is important to view conflict not a negative but positive way. Conflict is defined as a
disagreement, a battle or to be at odds. In essence, conflict is a differing of opinions, point of
views or ideas. Conflict occurs when two or more people see things from different perspectives,
given their education, background, upbringing, knowledge of the issue, beliefs, time of day,
mood, etc. (Fuimano,2012). Moreover, Plunkett, Attrer and Allen (2005) defined conflict as a
disagreement between two or more organizational members or teams. Conflict occurs because
people do not always agree – on goals, issues, perceptions, and the like – and because people
inevitably compete.
5
Folger, Scott, Poole, and Stutman (2005) defined conflict as ―the interaction of independent
people who perceive incompatilibity and the possibility of interference from others as a result of
this incompatilibility‖. Cahn and Abigail (2007) also defined conflict as a problematic situation,
differing perceptions and desired outcomes, interdependence, potential which adversely affect
the relationship between individuals.
De Janasz, Dowd and Schneider (2006) stressed that conflict is a fact of life in organizations.
Conflict is not something that is a tangible product but it lies in the minds of the people who are
parties to it. It does become tangible when it manifests itself in arguing, brooding, or fighting.
The problem lies with the inability for people to manage and resolve it effectively. If managed
effectively, conflict can be constructive. If not, conflict can be a destructive force in people and
organizations.
Fajana (2000) sees organizational conflict as the inability of these parties either between
employers and employees or within their groups to reach agreement connected with the object of
employer-employees interaction, whether or not this inability results in strikes or lockout or other
forms of protestation. Another definition that seems to be the most acceptable sociological
definition of organizational conflict is that of Kornhauser, Dubin and Ross (2004), which viewed
conflict as the total range of behaviour and attitudes that express opposition and divergent
orientations between individual owners and managers on the one hand, and working people and
their organizations on the other.
Unions and management tend to have opposite views because of the divergence between the
expectations of management and labour in organizations which often leads to conflicts. Conflict
by nature is a constant phenomenon in any human organization. It is so ubiquitous in social life
that it has been isolated by some as the basic unit for understanding social existence (Ajala,
2003; Alimba, 2010). The endemic nature of conflict in human grouping has been traced to the
pursuit of divergent interests, goals and aspirations by individuals and/or groups in defined social
and physical environment (Otite, 2001). Thus, conflict remains the most permanent feature that
makes humanity convinced that growth and development are predicated on conflicts. Though
conflict is generally perceived as something devastating, abnormal, dysfunctional and detestable,
yet it could be a precursor of positive change if constructively handled (Edwards, 2002; Hammed
& Ayantunji, 2002). As a concept, conflict has been subjected to diverse definitions by various
scholars based on the context and their understanding of the concept. For example, Lederach
(1995) described conflict as an ongoing situation that is based on deep seated differences of
values, ideologies, and goals. In support of this definition,
Fisher (2004) defined conflict as a relationship between two or more parties (individuals or
groups) who have or think they have incompatible goals. It therefore implies that conflict is a
continuous interaction that span through lifetime of man and not just a one-off relationship. Also,
one of the most quoted traditional definitions of conflict describes it as „struggle over values and
claims to scarce status, power and resources in which the aims of the opponents are to neutralize,
injure, or eliminate their rivals (Coser, 1956). This description of conflict explains the reasons
why workers are often ready to ground all economic or productive activities via strike in a bid to
get their demands met. In corroboration with Coser‘s definition of conflict, Constantino et al
(1995) described conflict as the process of expressing dissatisfaction, disagreement or unmet
6
expectations with any organizational interchange. But in his contribution, Otite (2001)
conceptualized conflict as a way of settling problems originating from opposing interests and
from the continuity of society. Ajala (2003) succinctly summarises the discourse on conflict
when he said conflict is the mechanism which keeps society going.
Industrial conflicts, on the other hand are viewed as the clash of interest and resulting disputes of
varying intensity between individuals, groups and organizations in the industrial relations system
(Akanji, 2005). Fajana (2000) sees industrial conflict as the inability of these parties either
between employers and employees or within their groups to reach agreement connected with the
object of employer-employees interaction, whether or not this inability results in strikes or
lockout or other forms of protestation. Another definition that seems to be the most acceptable
sociological definition of industrial conflict is that of Kornhauser, Dubin and Ross(1954) which
viewed conflict as ―the total range of behaviour and attitudes that express opposition and
divergent orientations between individual owners and managers on the one hand, and working
people and their organizations on the other‖.
Related to the above definition is that of Onyeonoru (2005) who holistically defined industrial
conflict as all expressions of dissatisfaction within the employment relationship especially those
pertaining to the employment contract and effort bargain. He expatiated further that it includes
formal expressions of conflict, organized along the lines of trade unions and employers
associations as well as the informal conflict that lack systematic organizations such as covert
grievances that may be expressed in the form of industrial sabotage, absenteeism, or lateness.
Smyth (1977) defined it as "the inability of two conflicting bodies to reach agreement on any
issue connected with object of industrial interaction, whether or not, this conflict results into a
strike, lock-out or other forms of protestation". Hinds support the analysis of Otobo (2000) who
said that the fact that there is no sign of overt conflict in a given period does not mean other
forms of industrial conflicts are not occurring. Dahrandorf (1959) said that "conflict of interest is
inevitable between employer and employee because an authority relationship in the aim of the
two parties will at least lead to conflicts". Dahrandorf holds the view that there will always be
conflicts between those in authority and those without authority, that is, the governing and the
governed, because of divergent views on the basic employment relationship, which seems to
make some degree of conflict inevitable at the work place. He observed that while the
government wants to impose on the governed, the governed want to have a say in the imposition
upon them. It is the absence of having a say that usually brew conflict. Yesufu (1984) said,
"Conflict is a normal and inevitable part of everyday life. As it is destructive, so also, it is
beneficial depending on the situation, circumstance and the issue at stake.
Usually conflict result in wasteful use of human and material resources leading to low
productivity, retrenchment, dismissal, and alienation. Conflict can manifest itself in the form of
unrest, work stoppage (strikes), sabotage, absenteeism, work to rule, lock out, and so on. The
most common of the manifestation of conflict is strike. This implies that conflict as a
phenomenon can manifest in diverse ways such as strike, absenteeism sabotage, labour turnover,
pilfering, restriction of output, lockout and a host of others. Ubeku (1983) opined that most
conflicts are caused by motivational factors. He stated that „an employee who feels aggrieved
against a manager, a supervisor or against the company as a whole is unhappy employee and an
7
unhappy employee cannot work effectively. The employee becomes very low; satisfaction at
work in terms of all the circumstances that surround the job is the key to high morale. It does not
matter how well paid and interesting a job may be unless the individual performing the job feels
that he is being fairly treated his morale will be adversely affected.
Folarin (1988) stated that individuals, group and organization or institution are naturally not in
the state of harmony or equilibrium and that conflict is a natural and inevitable occurrence in
human condition. He stated further that conflict is not invariably synonymous with a breakdown
in communication but rather, it is a different type of communication, which may in fact be the
ideal mode of expressing ideas. The most liable treatment is often conflict management rather
than conflict resolution. He also pointed out that not all conflict is detrimental to the individual,
group or organization. He stated that it is generally recognized that there can be no change
without conflict and without change there can be no progress or development whether personal,
social or scientific.
Conclusively, conflict is defined within the context of work relationship as inevitable
disagreements between and within any or all of the actors in the work place. The views of
various writers on the concept of conflict and industrial conflicts have established that conflict is
inevitable and that it is not inherently dysfunctional rather its outcome depends on how it is
handled or responded to by the parties involved. Whether conflict is seen as central or ancillary
to the employment relationship, however, depends upon one‘s conceptualization or larger view
of the origins, function and structure of this relationship. From one perspective, historically and
contemporaneously reflected in the work of industrial relations scholars, the employment
relationship is a pluralist, mixed motive relationship featuring two parties, labor and
management, with opposing interests; hence, conflict is inevitable in this relationship.
2.1.2.2 Collective Bargaining
Alimba (2008) opined that collective bargaining is a term that has been used by Sydney and
Beatrice Web to describe negotiations on conditions of service and terms of employment
between employers and workers or between employers associations and trade unions. It covers
all arrangements in which workers do not negotiate with employers by themselves but do so
collectively through their representatives. The issues covered by such collective bargaining are
always very extensive and they include wages hours of work, increments, promotions, job
grading and classification, annual leave etc. In fact in the present dispensation, any matter which
is capable of causing a trade dispute is negotiable. It has also been extended to sociopolitical
matters like the election tribunal (Sydney and Beatrice, 52)
It has been argued that the terms which trade unions seek to get through collective bargaining,
the process by which they are negotiated and the enforcement of the agreement, all depend on
the size and strength of the bargaining unit. In the public sector, collective bargaining takes place
at the national level. If the issues involved pertain to the whole nation, but if they concern a
particular state only, the bargaining takes the procedure adopted in the private sector. (Sydney
and Beatrice, 53) More so issues affecting the whole country that is those which involve both the
federal and state governments are discussed between representatives of the federal and state
governments and those of the Nigerian Labour Congress (NLC) or agency. Decisions reached at
such negotiations are usually implemented by the parties involved.
8
In Nigeria, the issue of collective bargaining was provided for under the labour Act Cap 198
Laws of the Federation 1990. Collective bargaining was defined by the Act as the process of
arriving or attempting to arrive at a collective agreement while collective agreement means, ―an
agreement in writing regarding working conditions and terms of employment concluded
between;
a. An organization of workers or an organization representing workers (or an association of
such organization of the one part and
b. An organization of employers or an organization representing workers (or an association of
such organizations) of the other part (S.91, Labour Act 1990).
However S.47 of the trade dispute Act 1990 provided a contrast definition. This not withstanding
both definitions refers to collective bargaining as negotiations between employers and their
employees collectively, represented by unions, for the settlement of terms and conditions of
employment. The end result is an agreement. As an aspect of labour relations, collective
bargaining provide the forum for a bargain or negotiation and leads eventually to decision
making or agreement between the parties, thus creating some form of social order in the
relationship.
Fasoyin (1992) cited in Fajana (2000) asserted that collective bargaining requires patience by the
parties bargaining because it is usually long and tortuous and results are normally unpredictable.
Decisions are reached after discussions. Such decisions are arrived at by unanimity and parties
usually agree that while negotiations are in progress, there should be no strike or lockouts and
that participants on the union side should not be victimized for their part in the negotiations. The
government rarely intervenes in collective bargaining and if voluntary negotiations break down,
parties are expected to follow the requirement of the trade disputes Decree No 7 of 1990 that
provides for a voluntary collective bargaining and parties are required by the decree to exhaust
their grievance procedures where they exist before resorting to other methods of dispute
resolution. From the above facts, collective bargaining to a certain degree does not work in
Nigeria. It is seen as a national alternative to strike and lockouts in the midst of collective
bargaining (Fajana, 2000).
As earlier stated, the government does not intervene in any collective bargaining. The
government merely acts as a watch dog for the enforceability of any agreement reached. More
often than not most negotiations are entered into by an agent of the government on its behalf as
well as the employees of the government. The main aim is not to make the government a judge
in their own case which will defeat the principle of public policy. The agents acting on the
permission of the government can contract on her behalf and the government must be willing to
be bound by such agreement and of course effect its enforceability. The government must
maintain its status as a regulatory body and ensure that agreements entered on her behalf are
carried out successfully.
2.1.3 Organizational Performance Organisational performance as a concept suffers from problems of conceptual clarifications. The
term performance is often used indiscriminately to describe everything from efficiency,
effectiveness to improvement. According to McCloy, Campbell and Cudeck, (1994), the term
performance has to do with those behaviours or actions which are regarded relevant to those
9
goals of the said organisation in question. They further argued that performance itself cannot be
said to be the outcome itself, consequences or the result of behaviors or action but rather
performance can be said to be the action itself. Thus they argued that performance tends to be
multidimensional, a situation whereby for any specific-type of job, there tends to be a number of
substantive performance components that are distinguished in terms of their inter correlations
and patterns on co-variation with other variables. However, there is no one definition of
organisational performance. The primary reason for this is that researches from different fields of
study such as psychology, human resource management, public administration and
organizational behaviour have dealt with the concept based on their field of study. Hence, it is no
surprise that the literature accommodates a variety of different definitions related to
organizational performance.
Organizational performance is an important construct in leadership that determines how to
manage organizations. Previous literature reviews reveal that organizational performance is a
multidimensional concept that reflects the heterogeneous nature, circumstances and objectives of
organizations at a given period. This compelled Kirby (2005) to comment that the definition and
meaning of organizational performance is an open subject for further inquiry. According to
Lebans and Euske (2006), defining organizational performance requires sound judgment and
interpretation of how current actions will affect future results. The writers also contend that
depending on the background of the assessor, performance may be understood indifferent ways.
Corvellec (1995) maintained that the concept of performance is relative to period, organizational
goals and type of instruments used to measure performance.
According to Daft (2000), organisational performance is defined as an organization‘s ability to
attain its goals by using resources in an efficient and effective manner. Consequently, it is an
evidence of the output of members of an organisation measured in terms of revenue, profit,
growth, development and expansion of the organisation. In the same vein, organizational
performance refers to the ability of an enterprise to achieve such objectives as high profit, quality
product, large market share, good financial results, and survival at pre-determined time using
relevant strategy for action (Koontz and Donnell, 1993). Organizational performance can also be
used to view how an enterprise is doing in terms of level of profit, market share and product
quality in relation to other enterprises in the same industry. Accordingly, it is a reflection of
productivity of members of an enterprise measured in terms of revenue, profit, growth,
development and expansion of the organization (Kehinde, Jegede, and Akinlabi, 2012).
Different researchers have different ways to measure performance. The different type of
measurement that has been applied has been classed as an objective or subjective. Tang and
Zhang (2005) explained that an objective measure is measuring the financial records while
subjective measures used the managers‘ perceptions regarding the organization performance.
Nevertheless, many studies suggest using subjective measures due to the data for objective
criteria could be inappropriate, misleading and difficult to obtain. If the data are available, the
data may not genuinely represent the actual organization performance as the information may be
manipulated (Siti & Perera, 2011). It is as well determined by the industry factors which make it
unsuitable for cross industry comparison. Therefore, Falshaw and Glaister (2006) concluded that
the objective measures are unsuitable for the purpose of research. In comparison, subjective
measures are an easier way to measure performance. It is an effective manner because it permits
10
the organization to carry out benchmark across firms. Subjective measure also enables
organizations to measure the growth in sales, market share, productivity, customer satisfaction
and product quality (Haber & Reichel, 2005). In fact, Falshaw et al. (2006) establish that the
subjective and objective measures provide the same outcomes. Therefore, using subjective
measures in the research provides more accurate information. Hence, this study made use of
subjective measures in measuring performance.
This study is anchored on the Radical theories that are strongly identified with Marxist theories.
Karl Marx (1818-1883), the great German theorist and political activist, is credited with sowing
the seeds for the several theories that emphasize social conflict. Marx‘s conflict theory
emphasizes a materialist interpretation of history, dialectical method of analysis (dialectical
materialism), a critical stance towards existing social arrangements and political programme of
revolution or, at least reform. Marx began his assumption that economic organization, especially
the ownership of property, determines the organization of the rest of the society. In other words,
the most important determination of social life is the work people are doing, especially work that
result in provision of the basic necessities of life, food, clothing and shelter. Marx thought that
the way work is socially organized and the technology used in production have a strong impact
on every other aspect of society. He maintained that every thing of value in society results from
human labour. The central institution of capitalist society according to Marx is private property,
a system by which capital is controlled by a small minority of the population. This arrangement
leads to two opposed classes, the owners of capital (the bourgeoisie) and the workers (the
proletariat) whose only property is their own labour time, which they have to sell to the
capitalists. Owners are seen as making profits by paying workers less than their work is worth,
thus exploiting them. Herein lies the core of industrial conflict.
The Marxist analysis assumed that organizational change is universal within societies and that
class conflict is the catalytic source of such change. The conflict that takes place in industrial
relations between employer and employee is seen as a permanent power feature of capitalism
which merely reflects the predominant power base of the bourgeois and class relations. The
Marxist perceives political and class conflict as synonymous.
2.3 Empirical Review
The relationship between conflict management and organizational performance has attracted
much attention in management literature. For instance, Olukayode (2015) examined the impact
of workplace conflict management on organizational performance using evidence from Nigerian
manufacturing firms. Participants comprised 250 employees selected through the use of stratified
random sampling technique. Data were generated through the use of validated structured
questionnaire. Descriptive and inferential statistics were employed to analyze data collected from
the respondents. Employing Spearman correlation analysis, the results of the empirical tests
showed a significantly positive relationship between conflict management strategies (collective
bargaining, compromise, and accommodation) and organizational performance. Non-integrative
conflict management strategies (competition, domination and avoidance) had a negative
statistically determinate effect on organizational performance. Also, the result of the regression
analysis indicated that collective bargaining strategy displayed the highest significant positive
correlation with organizational performance. In addition, study findings revealed that conflicts
arose over multiple factors of organizational experiences based on economic and goal
11
incompatibility orientations in the workplace. Union-management conflict was discovered as the
most prevalent type of industrial conflict in the organization.
Abdul and Sehar (2015) examined conflict management and organizational performance using
Askari Bank Ltd as a case study. A formal questionnaire was constructed and survey method was
used to collect data from a target group of respondents. Descriptive analytical techniques such as
frequency, percentage, mean, standard deviation & variance and factor analysis were applied to
analyze and interpret the data. Ratio Analysis is used to analyze Askari Bank‘s performance. The
major findings are that Education does not have any effect on the opinion of respondents on
Conflict Management Strategies. Similarly, there is no significant difference between the opinion
of male and female respondents regarding the causes of conflict. However, there is a significant
effect of conflict on organizational performance.
Ajike, Akinlabi, Magaji and Sonubi (2015) examined the effect of conflict management on the
performance of financial service organisation in Nigeria using Access Bank Plc as a case study.
A sample size of eighty-one (81) out of the numerous employees of the bank was administered
with questionnaires in three branches of the bank located in Lagos State. A descriptive and
regression analysis with the aid of SPSS was used to analyze the relationship between conflict
management on organizational performance of Access Bank Plc. The result of the study found
that there was a significant positive relationship between conflict management and
organizational performance.
Osabiya (2015) examined conflict management and resolution in Nigeria public sector. The
study focused on the factors that informed an organization‘s decision to seek and alternative
means of handling conflict to traditional discipline and grievance procedures; and also looked at
the barriers and facilitators to integrating mediation into workplace practice and culture. Two
hypotheses were formulated to determine the source of conflict and conflict resolution in the
Nigeria Public Service. The study makes use of descriptive statistics to analyze the data collected
from a sample of 170 employees of the Nigeria Public Service. Percentages and frequencies were
used to analyze the responses collected from the respondents. The findings of the experimental
survey of conflict management and resolution in public sector showed that conflict can be
resolved through compromise between the employee and management. That leadership styles
can lead to conflict in the organization.
Okpalibekwe, Onyekwelu and Dike (2015) studied collective bargaining and organizational
performance using Nigeria Union of Local Government Employees of Idemili North Local
Government Council, Anambra State. The survey research method was adopted for the study and
the study relied much on primary and secondary data. Three hypotheses were formulated as
guide to the study and simple random sampling technique was used to select the study sample.
The data generated were analyzed using percentages and mean scores and the hypotheses were
tested using one sample t-test. The findings from the study showed that the Nigeria Union of
Local Government Employees has helped to ensure industrial peace, employee commitment to
optimum job productivity as well as effectively using collective bargaining to enhance
organizational performance. The researcher concludes that the Nigeria Union of Local
Government Employees of Idemili North is a veritable instrument for improved employee
productivity as well as organizational performance.
12
Udoh, Opusunju and Dusu (2016) examined alternative dispute resolution and the performance
of Shell Nigeria Plc Port Harcourt Branch. The study sought to find out how alternative dispute
resolution (conciliation, arbitration and mediation) enhances performance of Shell Nigeria Plc,
Port Harcourt branch. The major problem is that dispute is repeatedly occurred in the
organization and the organization tends to be confused on the right alternative dispute resolution
method to choose. The main objective is to examine the alternative dispute resolution on the
performance of Shell Nigeria Plc, Port Harcourt branch. Point in time data were collected from
primary source. The Ordinary Least Square was adopted and finding reveals that alternative
disputes resolution in terms of conciliation, arbitration and mediation contributes significantly to
the performance of shell Nigeria Plc, Port Harcourt branch.
Okpu and Jaja (2014) examined joint consultation and workers commitment in Nigerian Banking
industry. Using Cross Sectional Survey design, a sample size of 357 workers from the banks in
the South-South zone of Nigeria was used as respondents. The results drawn from the use of
Spearman Rank Order Correlation showed that Joint Consultation had a significant positive
association with workers affective commitment, but no significant association with workers
continuance and normative commitment. The study found that with the use of Joint Consultation,
workers are emotionally attached to their organizations and exhibits little continuance and
normative commitment.
Uwa (2014) examined conflict management strategies and employees‘ productivity in a Nigerian
State Civil Service. Four conflict management strategies were considered which include
collective bargaining, negotiation, avoidance and imposing. The descriptive survey design was
adopted and self developed questionnaire tagged Conflict Management Strategies and
Employees‘ Productivity Questionnaire was used in the data collection. The reliability of the
instrument was tested and Cronbach Alpha reliability coefficient of 0.92 was obtained for the
whole instrument. Taro Yamane formula was used in determining sample size and stratified
random sampling technique was used in selecting 240 respondents from a cross-section of four
ministries in Akwa Ibom State Civil Service, South- South, Nigeria. Pearson Product Moment
Correlation and multiple regression were used to analyse the hypotheses. Collective bargaining
and negotiation showed a significant positive contribution to employees‘ productivity while that
obtained for avoidance and imposing were significantly negative. Also, collective bargaining and
negotiation were significantly positively related to employees‘ productivity.
Okereke (2014) carried out an empirical study on conflict management in the workplace. This
research project explores the nature of conflict, the conflict process, conflict resolution skills and
conflict management techniques in the case of workplace conflict in Centro Comunitário S.
Cirilo. A semi-structured interview was used to reach both target groups: people that live and
come in contact with the Center for psycho-social help, as well as the staff who are working in
Centro Comunitário S. Cirilo (CCSC). The study used in-depth interviews to reach the staff
while using focus group discussion (FGD) to target other people who live and go for psycho-
social help in the centre. During the interview a total of 23 people were reached: five staff and
eighteen persons who live and come in contact with the Center. The results were analyzed using
a Colaizzi's process for phenomenological data analysis approach. The conclusions of this
research are that managers at Centro Communitário S. Cirilo (CCSC) are quite familiar with the
conflict resolution process and the majority of them apply conflict resolution techniques. It is
easy to achieve a win-win outcome when it comes to a person who lives in the Center with
13
negotiation mediation and reconciliation but among the employees it is always difficult to
achieve that because of tension and friction associated with their workplace.
Mizanur and Tanjela (2015) examined the nature, types, causes, and cost to manage the conflict
along with its effects at individual and organizational levels and organizational performance is
discussed. A self-administered questionnaire is used to collect data. The survey respondents from
eight corporate sectors in Bangladesh are selected for this study. 120 questionnaires were
distributed among the study respondents. Results shows that the two most commonly faced
conflict types are intra-personal and inter-personal conflicts. Both employees and managers gave
their shared concerns that emergence of conflict does not primarily bring positive effects to the
organizational performance; rather it brings negative effects more to the work performance and
organization‘s productivity. Albeit, out of the five most popular conflict management strategies,
three strategies come out to be the most adopted ones by the managers and other employees;
these include: integrating, dominating and compromising.
3.0 Methodology
In this study, survey research design was used. Data were collected from sampled employees of
organisations selected for the study in order to determine the relationship between organisational
performance (dependent variable) and conflict management (independent variable).
This study is carried out in breweries located in South East Nigeria. South East Nigeria is a geo-
political zone located in eastern part of Nigeria. The zone is made of 5 states namely Anambra
State, Ebony State, Enugu State, Abia State and Imo State. At least one brewery industry was
selected for the study from each of the states in the zone with exception of Ebony State.
In undertaking this study, the researchers collected data from two major sources. These major
sources are primary and secondary sources. The primary data was collected through the survey
conducted while the secondary data include journals, textbooks, periodical, reports, etc.
The population for this study consists of staff and management of the selected breweries in
South-East Nigeria. Information made available to the researchers at the time of this study from
the administrative unit of the respective breweries shows that they have staff strength of 3167
employees. Based on this, the population for this study is 3167. Analysis of the population is
reflected in the table below:
The staff strength of the selected breweries as at 3Ist December, 2018
s/n Breweries Senior Staff Junior Staff Total
1 Nigeria Breweries Plc, Night Mile Corner,
Enugu State.
275 549 824
2 Interfact Beverages Nigeria (Sabmiller),
Onitsha, Anambra State
181 601 782
3 Nigeria Breweries Plc, Aba, Abia State. 118 524 642
4 Consolidated Breweries Plc, Awo
Omamma, Imo State.
96 447 543
5 Life Brewery Co. Ltd, Port Harcourt Road
Onitsha.
136 240 376
Total 806 2361 3167
Source: Human Resources of the Respective Breweries, 2018
14
To ensure a clear account for determination of sample size, the statistical formula devised by
Borg and gall (1973) was employed to determine the sample size. The formular state thus:
n = (Zα)2eN
Where n = Sample size
N = Population of study
e = Margin of error, and in this case = 0.05
Z = Confidence level and for 0.05 it is 1.964
N.B. Target population of manufacturing companies is 3167.
Substituting into formula gives
n = (1.964)2 0.05 x 3167
n = (3.9) 158.4
n = 617.6 approximately 618.
Hence the sample size is calculated to be 618. Thereafter, proportionate sampling technique was
employed in getting the sample based on the institutions. The proportionate distribution of the
sample by organization is shown in the table below:
Table 3.2: Proportionate Distribution Based on Organization
s/n Brewery Companies Population Sample Size
1 Nigeria Breweries Plc, Night Mile Corner, Enugu State. 824 161
2 Interfact Beverages Nigeria (Sabmiller), Onitsha,
Anambra State
782 153
3 Nigeria Breweries Plc, Aba, Abia State. 642 125
4 Consolidated Breweries Plc, Awo Omamma, Imo State. 543 106
5 Life Brewery Co. Ltd, Port Harcourt Road Onitsha. 376 73
Total 3167 618
Source: Author’s Computation
Thereafter, simple random sampling technique was use in selecting the respondents from the
respective organization.
3.1 Instruments of Data Analysis
The tools used in analyzing the data collected include tables, simple percentages, and absolute
number. In analyzing the hypothesis, the hypotheses to be tested and the variable to be predicted,
a parameter must be used, a static must be chosen i.e. functions of the observed variables that
must be completely specified under the assumption that the hypothesis to be tested is true.
Therefore, the hypotheses were analyzed and testing using multiple regression analysis. Based on
this, the functional form of the model is stated below:
OP = ƒ(CM, CB, JC, ADR) (1)
Where OP = Organizational Performance (dependent Variable)
CM = Conflict Management
CB = Collective Bargaining
JC = Joint Consultation
ADR = Alternative Dispute Resolution
This model can be restated in econometric form as:
15
The econometric form of equation (1) is represented as:
OP = α + β1CM + β2CB+ β3JC + β4ADR + ẹ (2)
Where:
B0 = Intercept of relationship in the model/constant
B1 – B4 = Coefficients of each independent or explanatory variable
ẹ = Stochastic or Error term
4.1 Data Presentation And Analysis
In this section, the data generated from the management and employees of the sampled brewery
companies in South East Nigeria were presented in frequency tables and analyzed using
statistical tool. The analysis was done with descriptive and inferential statistics with the aid of
SPSS version 21.0.
4.2 Presentation and Analysis of Regression Results
The regression results are presented in the tables below.
Table 4.3.1: Summary of Regression Result
Model R R Square
Adjusted R
Square
Std. Error of
the Estimate Durbin-Watson
1 .840a .706 .703 1.867 1.904
a. Predictors: (Constant), Negotiation, Collective Bargaining, Joint Consultation,
Alternative Dispute Resolution
b. Dependent Variable: Organizational Performance
Source: SPSS Version 21
The table above shows that summary of the regression result. The R square (R2) value of 0.706
indicates that 70.6 percent of the variations in organizational performance are explained by
variations in negotiation, collective bargaining, joint consultation and alternative dispute
resolution. Similarly, R square adjusted value of 0.703 indicates that 70.3% of variation in the
dependent variable is accounted by variation in the independent variable, all things been equal.
The Durbin-Watson statistics which is employed to check for autocorrelation recorded 1.904 as
its value which is within the acceptable threshold. This shows that the variables used in the
model are not auto-correlated and are therefore, reliable for predications.
Table 4.3.2: ANOVA Result
Model Sum of Squares df Mean Square F Sig.
1 Regression 4704.657 5 940.931 269.822 .000a
Residual 1959.822 562 3.487
Total 6664.479 567
a. Predictors: (Constant), Negotiation, Collective Bargaining, Joint Consultation, Alternative
Dispute Resolution
b. Dependent Variable: Organizational Performance
Source: SPSS Version 21
16
Table 4.3.2 above indicates that the F-test which test the overall significance of the model
recorded a value of 269.822 with a probability value of 0.000 which is statistically significant at
0.05 level of significant. This indicates that negotiation, collective bargaining, joint consultation
and alternative dispute resolution can collectively explain the variations in organizational
performance. This indicates that conflicts management has significant relationship with
organizational performance in selected brewery companies in South East Nigeria.
4.4 Testing of Hypotheses
Two hypotheses were formulated for the study and the variables relating to the hypotheses were
measured with multiple items which were consolidated through scale summation before using
them to test the hypotheses. The hypotheses were tested using t and sig value in the coefficient of
the regression result. The results are presented in the table below.
Table 4.4.1 Coefficients of the Regression Result
Model
Unstandardized
Coefficients
Standardized
Coefficients
t Sig. B Std. Error Beta
1 (Constant) 13.024 1.149 11.335 .000
Negotiation .089 .038 .148 2.322 .021
Collective Bargaining .177 .042 .316 4.170 .000
Joint Consultation .317 .049 .673 6.450 .000
Alternative Dispute Resolution .573 .056 .391 10.218 .000
a. Dependent Variable: Organizational Performance
Source: SPSS Version 21
4.4.1 Test of Hypothesis One
Ho: There is no significant positive relationship between negotiation and organizational
performance.
Hi: There is a significant positive relationship between negotiation and organizational
performance.
Negotiation recorded a t-statistics value of 2.322 with an alpha value of 0.021 which is
statistically significant at 0.05 level of significance. We reject the null hypothesis and accept the
alternative hypothesis. This implies that there is a significant positive relationship between
negotiation and organizational performance.
4.4.2 Test of Hypothesis Two
Ho: Collective Bargaining has no significant positive relationship with organizational
performance.
Hi: Collective Bargaining has a significant positive relationship with organizational
performance.
Collective bargaining has a t-statistics value of 4.170 with an alpha value of 0.000 which is
statistically significant at 0.05 level of significance. We reject the null hypothesis and accept the
alternative hypothesis. This implies that collective bargaining has a significant positive
relationship with organizational performance.
17
5.0 Summary of Findings, Conclusion and Recommendations
In summary, the findings of the study are:
1. There is a significant positive relationship between negotiation and organizational
performance.
2. Collective Bargaining has a significant positive relationship with organizational performance.
3. Joint consultation has a significant positive relationship with organizational performance.
4. Alternative dispute resolution has a significant positive relationship with organizational
performance.
5.1 Conclusion
This work investigated conflict management and organizational performance in selected
breweries in the South East Nigeria. The study revealed that all the conflict management
strategies studies namely negotiation, collective bargaining, joint consultation and alternative
dispute resolution were found to have significant positive relationship with organizational
performance. The results of the study offered strong empirical support for the existence of a
positive and statistically significant relationship between conflict management strategies and
organizational performance. To a very large extent, the findings of this present study concur with
earlier empirical studies on conflict management and organizational performance that the use of
integrative strategies in conflict management yields positive results.
5.2 Recommendations
Based on the findings of the study, it is recommended that:
1. Managers should adopt the conflict management strategies studied since they are found to be
effective in managing conflicts in organization.
2. Management in the organization must try to adopt an inclusive and collaborative strategies in
conflict management and at the same time strive to involve union – leadership or employee
representative in vital decisions that affect the workforce. Both management and employees
must resolve to work together amicably by formulating potent strategies and sustaining
acceptable policies as effective machinery for managing conflict on continuous basis in
organizations. This can be achieved through collective bargaining.
3. Since conflict management strategies studied were found to have significant relationship with
performance, management should not take it with kids‘ glove as it can influence the
employee performance, and this can either mar or make the organization in achieving its
stipulated objectives from time to time.
4. Management should take cognizance of the conflict management strategies in their policy
formulation as that will ensure that conflicts that may occur within the organization are
quickly resolved without disrupting the activities of the organization.
5.3 Contribution to Knowledge
The major contribution made by this study is that it established that negotiation, joint
consultation, collective bargaining and alternative dispute resolution has a significant
relationship with organizational performance in the selected brewery companies in South east
Nigeria. The study also provides empirical evidence that can aid management and policy
formulators in managing work related conflicts.
18
The study also provides a useful guide to research into conflict management by identifying the
relationship between conflict management strategies (collective bargaining, alternative dispute
resolution, negotiation and joint consultation) and organizational performnance.
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