THE EFFECTS OF WORKPLACE CONFLICT ON THE PERFORMANCE OF SENIOR

PARASTATALS IN KENYA

Mary Mwangi

& Rose Nderitu

Abstract

When conflicts occur in the organizations the main concern of the

stakeholders is the impact the conflict has on the entire

organizations performance. However the impact of the conflict on

the performance of the senior managers who have the prerogative

of managing the workplace conflicts is an area that goes

unnoticed and especially so because the presence of manifest

conflict is viewed as failure in the part of the senior managers

who just like the other employees suffer the adverse effects of

the conflicts. The study sought to examine the effects of

workplace conflicts on the performance of the senior managers in

parastatals in Kenya. The main objective of the study was to

establish the effects of the workplace conflict on performance of

senior manager’s parastatals in kenya. The factors under

investigation were productivity, job satisfaction and the

corporate image and how they influence the performance of senior

managers in parastatals. A review of literature was conducted so

as to find out what other researchers had found out on studies

related to the topic. Among the key findings established in the

study were that work place conflicts had a major influence on the

productivity of the senior managers whereby when the conflicts

were well managed the managers felt motivated but when the

conflicts became manifest and everyone pointed fingers at the

managers they became de-motivated as a result of the job stress

caused by the back lashing thus a decline in their productivity.

Job satisfaction among the senior managers was another effect of

workplace conflict. It was established that the senior managers

felt responsible for the presence of unresolved conflicts thus

job dissatisfaction finally it was established that employee

relations between the various senior managers and the other

employees is ruined and this was found to affect the performance

of senior ,manager. The researcher recommends that all the

necessary efforts should be made to assist the senior managers to

cope with the effects of the workplace conflict so as to enhance

their performance as they strive to keep the workplace conflicts

at the minimum and that communication amongst senior managers

and other employees on conflict management ought be enhanced. The

researcher further recommends that more studies should be done on

the strategies and mechanisms that need to be adapted to overcome

workplace conflicts in parastatals.

Introduction

Anytime people work together, conflict is a part of ‘doing

business’. Conflict is a normal and natural part of any

workplace. When it occurs, there is a tendency for morale to be

lowered, an increase in absenteeism and decreased productivity.

According to Adler, (2008), it has been estimated that managers

spend at least 25 percent of their time resolving workplace

conflicts – causing lowered office performance. Handling and

resolving conflicts that arise in the workplace is one of the

biggest challenges managers and employees face. Typically there

are two responses to conflict: run away (avoidance) or ‘battle it

out’. In either case, we often feel uncomfortable or dissatisfied

with the results because no resolution has been achieved. By

learning to constructively resolve conflict, we can turn a

potentially destructive situation into an opportunity for

creativity and enhanced performance.

Okoth Betwel & Agot, (2008) ,defines conflict as an underlying

issue in dispute between two or more parties. When there is a

struggle between incompatible or opposing needs, wishes,ideas

interests, of individuals or groups they all encounter goals

which are not satisfactorily attained this is referred to as

conflicts of interest. Effects of any conflict may be as a

result of the action of the management, individual employees or

trade unions. Conflict occurs in every workplace where ideas and

innovation are valued and diverse groups and personalities work

and interact together. Different needs, beliefs and views on how

things can or should be done may arise within or across the

organizational staff and have the potential to lead to conflict.

Ideally, when such situations arise, people are able to engage in

healthy and respectful debate and consideration of each other's

viewpoints. When handled well, conflicting needs or beliefs can

be an opportunity to deepen our understanding of issues, learn

from others, and to develop more inclusive and creative solutions

to problems.

While conflict is generally 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. 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 affects organizational productivity,affects job satisfaction,

the corporate image and culture, creates resistance to change,

establishes turmoil in organization or interpersonal relations,

fosters distrust, builds a feeling of defeat, or widens the chasm

of misunderstanding.

According to George & Hill, (2000), Conflict is an unpleasant

fact in any organization as long as people compete for jobs,

resources, power, recognition and security. Organizational

conflict can be regarded as a dispute that occurs when interests,

goals or values of different individuals or groups are

incompatible with each other and this results into a situation

whereby they frustrate each other in an attempt to achieve their

objectives The conflicts that arise in workplaces may be shaped

by the unique aspects of this environment, including the long

hours people spend at their workplace, the hierarchical structure

of the organization, and the difficulties (e.g. financial

consequences) that may be involved in switching to a different

workplace. In this respect workplace conflict are common with

parastatals in Kenya and though not addressed these conflicts

adversely affect the performance of senior managers `

Problem Statement

Once workplace conflicts occur, most organizational stakeholders

analyze the effect of the conflict to the organizations

productivity and on the employee performance. However the effect

of the workplace conflict on the senior managers who are viewed

as the people to manage these conflicts has always been ignored.

The senior managers just like other employees in the organization

are affected by the workplace conflict. Some practicing managers

view group conflict negatively and thus seek to resolve or

eliminate all types of disputes (Dowling et al, 2008). These

managers contend that conflicts disrupt the organization and

prevent optimal performance. As such, conflicts are a clear

indication that something is wrong with the organization and that

sound principles are not being applied in managing the activities

of the organization. Browarys & Price, (2008), base their

approaches on the principles of authority and unity of command to

eliminate conflict. They believe that conflicts could be

eliminated or avoided by recruiting the right people, carefully

specifying job descriptions, structuring the organization in such

a way as to establish a clear chain of command, and establishing

clear rules and procedures to meet various contingencies.

While well managed workplace conflicts contribute to

creativity, strategic initiative, more effective systems and

communication, stronger workplace relationships and greater

commitment to the organization, the unresolved conflict lead to

decline in productivity, labour turnover, low employee morale

ruined employment relations and a tainted c corporate image.

Presence of workplace conflict in an organization can lead to

the buildup of unresolved resentment thus affecting the

performance of senior managers since the conflicts will have an

effect on the managers productivity, their job satisfaction and

the employee relations.these conflicts further have effects on

reduced motivation leading to presenteeism and absenteeism,

reduced productivity, Quality problems, Delayed and missed

deadlines, Increased supervision, overhead Increased stress,

Reduced collaboration Fractionated activities, Decreased customer

satisfaction, distrust, all these affect the employee relations.

1.3. Objectives of the study

1.3.1 General Objective

An investigation on the effects of workplace conflict on the

performance of senior managers in parastatals.

1.3.2 Specific Objectives

1. To establish how workplace conflicts affects the productivity

of senior managers in parastatals.

2. To establish how workplace conflicts affect the job

satisfaction of senior managers in the organization.

3. To find out how labour turn over affects the performance of

senior managers in parastatals

1.4 Research Questions

1. How do workplace conflict affect the productivity of senior

managers in parastatals?

2. Do work conflicts affect the performance of senior manager

in parastatals?

3. How do the employee turn over of senior mangers affect the

organizational performance?

1.5. Significance of the Study

This study will be of great significance to a number of

stakeholders.

1.5.1. The parastatals: If the company was to adapt this

proposal, it would assist it in the reduction of the effects of

the conflict to the performance of senior managers. If the number

of the conflict is reduced, the efficiency and effectiveness of

all stake holders is enhanced thus enhanced organizational

performance.s.,

1.53 Future researchers: This study will enable the future

researches to identify the knowledge gaps in the study. It will

also be used as a future source of reference as they undertake

studies in similar or related topics.

1.6 Limitations of the Study

This study is likely to have a number of limitations such as:

1.6.1. Time the researcher being a full time employee faced the

challenge of time and could only avail a few hours to the seminar

paper.

1.7 Scope of The Study

The study confine will confine itself to senior managers in

parastatals in Kenya. The content scope will include the effect

of work place conflict on in respect to employee productivity,

job satisfaction and employee turnover on the performance of

senior managers in parastatals in Kenya.

1.8 Assumptions of The Study

It also assumes that workplace conflict have an effect on job

satisfaction, employee turnover, productivity and employee turn

over which thus have an effect on the performance of parastatals

in Kenya..

Justification of the Study

Studies indicate that various studies about the workplace

conflicts have been carried out globally but none has earmarked

the senior managers in parastatals in Kenya..

Chapter 2:Literature review

Concept of workplace conflict

According to Alder.(2008), work place conflict is a sharp

disagreement or opposition of interests or ideas. He further

indicates that anytime people work together ,conflict is part of

doing business especially so since the presence of conflict

lowers employee morale ,increases absenteeism, delayed deadlines

and a general decrease in productivity .According to him managers

spend at least 25% of their time resolving workplace conflict-

thus causing lowered office performance.

Fraenken and Wallen ,(2000), assert that organizations strive to

develop cohesiveness and promote agreement on work environment

that engenders positive thinking among the employees. However, it

is candidly opined that conflict among the employees remains in

some form or the other. Conflict at an initial stage could easily

be controlled but which could lead to complications if allowed to

aggravate. Hence a strategy of conflict resolution in any

organizations becomes mandatory. It has been experienced that

work conflict creates dissatisfaction among the employees. In the

wake of such a situation, routine tasks are adversely affected

than non routine tasks. It is imperative that conflict emergence

be addressed and vigilance is maintained in such an environment

to stall its adverse effect at an early stage. Usually dominant

and avoiding approach creates conflict among the employees. These

conflicts become noticeable during the meetings and general

discussions on organizational objectives and goals. The

phenomenon also takes place whereby useful and important

decisions are at offing stage.

Jones et al (2000) affirms that workplace conflict may occur when

people's ideas, decisions or actions relating directly to the job

are in opposition, or when two people just don't get along.

Conflict in the workplace may be productive if it leads to

positive change, but can also be stressful and unpleasant.

Resolving disputes and clashes at work is important for employers

and employees. There are broadly two kinds of workplace conflict:

when people's ideas, decisions or actions relating directly to

the job are in opposition, or when two people just don't get

along. The latter is often called 'a personality clash'. A

conflict of ideas on any aspect of business can often be

productive, if the parties involved are willing to 'brainstorm'

solutions together. Sometimes, the compromise can be better for

business than either of the original ideas. Conflict of this kind

often generates better work practices and initiates positive

changes that would otherwise never have occurred. Personality

clashes, on the other hand, are very rarely productive (Dowling

et al, 2008). A clash may start with a dispute on business

practices and escalate from there to mutual loathing, or else the

two people may simply have disliked each other from the

beginning. This type of workplace conflict is bad for business,

because it can lead to downturns in productivity and increases in

absenteeism. On an individual level, workplace conflict is

stressful and unpleasant. This anxiety may spill over into other

areas of life and disrupt, for example, personal relationships.

2.2 Theoretical Literature Review

In the theoretical literature, the researcher reviews theories

that are relevant to workplace conflicts and explains the

applicability of these theories in the study.

2.2.1 Social exchange theory

Social exchange theory was developed by Kelley and Thibault

(1978). They claim that parties in a relationship assess their

relationship in terms of what they are putting into the

relationship and what they are receiving. This theory says

conflict arises when one party feels that they are not getting as

much back as they are putting in they feel shortchanged. Social

Exchange theory assumes people behave rationally out of self

interest. This is highly simplistic as research shows that people

do not always behave rationally. For example the entire area of

behavioural economics depends on people not behaving rationally.

2.2.2 The Contemporary theory of conflict resolution

Conflict is defined as disagreement between individuals. It can

vary from a mild disagreement to a win-or-lose, emotion-packed,

confrontation (Kirchoff and Adams, 1982). This paper is based on

the contemporary theory of conflict which recognizes that

conflicts between human beings are unavoidable. They emerge as a

natural result of change and can be beneficial to the

organization, if managed efficiently. This theory by considers

innovation as a mechanism for bringing together various ideas and

viewpoints into a new and different fusion. An atmosphere of

tension, and hence conflict, is thus essential in any

organization committed to developing or working with new ideas.

This theory therefore appreciates the presence of theories in an

organization so long as they are resolve

2.2.3 Labour Turnover Theory

March and Simion, (1958), identified the perceived desirability

of movement and also the main determinants of wok satisfaction.

This theory suggests that the greater the conformity of the job

characteristics to self image, the higher the higher the job

satisfaction and that the predictability of the instrumental

relationships of the job promotes job satisfaction as does the

comparability of work requirements with other role

requirements. They further argue that the size of the

organization influences a person’s decision to leave. Griffeth

and Hom (1995) argues that the withdrawal process is complex and

may take the form of a range of behaviors such as presenteeesm

and absenteeism.

2.3 Empirical literature review

2.3.1 Effects of workplace conflicts on performance of teachers

in public secondary schools

Conflict may have either a positive or a negative effect on

organizational performance, depending on the nature of the

conflict and how it is managed Armstrong (2006). For every

organization, an optimal level of conflict exists which is

considered highly functional as it helps to generate good

performance. When the conflict level is too high (dysfunctional),

performance suffers. Consequently, innovation and change may

become unmanageable and the organization may not adapt to change

in its environment (Beardwell and Claydon ,2007). According to

Advisory, Conciliation and Arbitration Service, (2004), the

informal resolution of dissatisfaction is an essential part of

effective day-to-day management. Most difficulties can be

resolved as they arise but more formal arrangements are necessary

when dissatisfaction in the employment relationship becomes

unresolved conflict.

According to Hart ,(2000), it is now becoming more evident that

this is something that companies and managers need to recognize,

and deal with. Conflict significantly affects employee morale,

turnover, and litigation, which affects the prosperity of a

company, either constructively or destructively. Workplace

conflict is a specific type of conflict that occurs in

workplaces. The conflicts that arise in workplaces may be shaped

by the unique aspects of this environment, including the long

hours many people spend at their workplace, the hierarchical

structure of the organization, and the difficulties (e.g.

financial consequences) that may be involved in switching to a

different workplace. In this respect, workplaces share much in

common with parastatals.

2.3.1 Productivity

Donald, Pietri and Morsley,(2008), defines productivity as a

measure of outputs compared to inputs, to a whole

organization ,productivity refers to the total value of units or

services a company produced as compared to the total cost of

producing them.An increase in productivity translates into lower

prices, larger market share and greater profits which enables an

organization to invest in research and development, utilize new

advanced technology, increase wages and benefits and to improve

working conditions. The managers and the employees s will have a

decline in their productivity because of presence of workplace

conflicts. Besides suffering increased supervisory overhead, the

conflict saddled manager is in danger of losing credibility in

the eyes of peers, subordinates and superiors this may lead to

the manager being dissatisfied for they feel their positions are

no longer being respected.. Subordinates feel a sense of

disappointment when conflicts are allowed to continue. The

managers may begin to look at the disputing group as badly

managed and uncooperative and this may lead to disciplinary

measures being rendered to the employees this may cause low

morale among the employees thus a reduction in production and at

times may result to employee turnover which contributes to a

decline in production before the employee is replaced following

the due recruitment process. Its therefore notable that presence

of workplace conflicts lead to: Excessive employee turnover, Low

morale ,Reduced productivity Quality problems Delayed and missed

deadlines Increased supervision overhead Increased stress Reduced

collaboration Fractionated activities Passive/aggressive behavior

Abusive behavior Damaged management credibility Decreased

customer satisfaction Negative upward attention Split alliances

(factions & cliques) Distrust all these effects will directly or

indirectly have an impact on the productivity.

Tension and stress reduce motivation and disturb concentration.

Poorly motivated employees do not work towards increasing the

organizations productivity and it has led to low morale among

employees. Employees are motivated by a good working condition,

recognition for outstanding performance despite the challenges

and an appealing monetary reward system .A loss of simple

productivity of doing things other than work related activities,

such as discussing the dispute, playing computer games, finding

reasons to get out of the area reduces an average work week to

fewer than 20 hours, based on an annualized, valid time off

adjusted basis. Reduction in productivity is also exhibited by

constant absenteeism of employees with supposedly genuine

reasons. The cost of any conflict in the work place is quite

high; this is so because conflicts leads to dissatisfied

employees including senior managers who are thus de-motivated

affecting their productivity when the productivity is low the

impact is felt by all the stakeholders since .when a managers is

viewed to have failed because of the presence of organizational

conflict ,the labour market is also affected because a company

with persistent latent and manifest conflicts also affects the

recruitment process of the company because the organization is no

longer in a position to attract qualified employees to fill the

vacant positions especially on senior management positions. The

company’s image is also tainted because the market views it as an

unstable environment to invest in. Addressing the effects of

workplace conflict on the senior managers should therefore be

viewed as an important element in achieving organizational

effectiveness and enhancing productivity. Many organizations,

however, suffer chronic patterns of existing conflict that are

costly and often symptomatic of serious organizational

dysfunction.

2.3.2 Job Satisfaction

Job satisfaction is a term that describes a positive feeling

about a job resulting from an evaluating of its

characteristics. According to Fraser, (1984), job satisfaction as

a subjective, personal state perceived by an individual as being

in his favor. He also assumes that humanization of work ensures

the generation or the maintenance of job satisfaction. Job

satisfaction for the individual worker exists when the

perceived benefits of the work exceed the perceived costs by a

margin deemed by the worker to be adequate under the

circumstances,

Hertzberg,(1996), states that the main factors involved in job

satisfaction are advancement recognition, responsibility, growth

and the job itself; these factors are also referred to as

satisfiers will correlate if optimized ,with improved

performance, reduced labor turn over and having more tolerant

attitudes to management. He further identifies dissatisfaction

which is results as an effect of lack of satisfaction as factors

that act against advancement, recognition, responsibility, growth

and the job itself this in most organizations including the

parastatals may occur because the people in management are

blamed in case of the presence of any manifest form of workplace

conflicts and in such occurrences are viewed as failures while

the well management conflicts are not viewed as successful

conflict management thus need for recognition for the managers

effort. This study looks as the workplace conflict as one of the

influences that encourage the employees in senior management

positions to either stay or leave the organization. when an

organization doesn’t handle the effects of the conflict on the

managers themselves the manager as an employee feels less

appreciated since they don’t get room to explain their efforts in

conflict management and are thus judged by the presence of the

manifest conflicts

2.3.3Employee Turnover

Winslow, (1911) focuses on how to manage people within an

organization by maximizing employees performance while at the

same time developing staff and gaining their loyalty in this all

organizations need to spend time, energy and money in the quest

for greater productivity and a stable workforce. Once a senior

managers feels appreciated especially in his efforts on conflict

management, he will tend to work with the organization that

recognizes hard work despite the presence of challenges This

study looks as the workplace conflict as one of the influences

that encourage the employees to either stay or leave the

organization. when an organization doesn’t handle the effects

of this type of conflict the employee feel less appreciated.

Manley (1996)looks at both the negative and positive effects

of employee turnover n thus suggests the creation of the right

organizational environment so as to control the turnover. In

this case the presence of an organizations policy on conflict

will curb turnover which is contributed to by low morale and

dissatisfaction which prompt an employee to quit in search of an

organization where they will be motivated and satisfied through

appreciation of their effort. The cost of any conflict in the

work place is quite high; this is so because conflicts leads to

dissatisfied employees who are thus demotivated affecting

their productivity when the productivity is low the impact is

felt by all the stakeholders since . A company with persistent

conflicts also affects the recruitment process of the company

because the organization is no longer in a position to attract

qualified employees to fill the vacant positions. Addressing

conflict and its effect on employees of all levels of employment

including management and it should therefore be viewed as an

important element in achieving organizational effectiveness and

enhancing productivity. Addressing the effects of workplace

conflict on the senior managers should therefore be viewed as an

important element in achieving organizational effectiveness and

enhancing productivity. Many organizations, however, suffer

chronic patterns of existing conflict that are costly and often

symptomatic of serious organizational dysfunction. The cost of

any conflict in the work place is quite high; this is so because

conflicts leads to dissatisfied employees who are thus de-

motivated affecting their productivity when the productivity is

low the impact is felt by all the stakeholders. The company’s

image is also tainted because the market views it as an unstable

environment to invest in the customers on the other hand lose

faith in the company. Corporate reputation affects the way in

which various stakeholders behave towards an organization,

influencing, for example, employee retention, customer

satisfaction and customer loyalty

CONCEPTUAL FRAMEWORK

INDEPENDENT VARIABLES

DEPENDENT VARIABLE

PRODUCTIVITY

JOB SATISFACTION

EMPLOYEE TURNOVER

PERFORMANCE

Chapter Three : Research methodology

The study used secondary data and Secondary data was collected

based on the findings of published papers, articles, books, prior

studies, and the public service website.

Chapter Four: Research findings and discussions

The study indicates that workplace conflict has a significant

influence on performance of senior managers in that their levels

of productivity will either be high, low or consistent depending

on the perception of the other managers, employees and

organizational stakeholders on the conflict management styles of

these managers and the work time consumed during conflict

management.

From the results there is an indication that the job satisfaction

of the senior managers in the parastatals will have an influence

of their performance in respect to harmonious work relations,

implementable conflict management policy and strategies adopted

by the organization task as well as the compensation levels and

motivation are key determinants of senior managers’ performance

in the public service.

The research further established that employee turnover among the

employees in senior management positions is in the rise because

the managers feel that their conflict management efforts are

unappreciated. Employee turnover also affects the corporate

image of an organization will in return affect the general

performance of the organization and its employees including the

senior managers. The employee loyalty will be reduced and a

feeling of working in an organization which is no longer the

employer of choice will lead to employees including those in

senior management positions to exit the organization: turn over

affects the general performance of an organization.

Chapter five: Conclusions and recommendations

Conclusions

A body of research indicates that workplace conflict has a

significant effect on the performance of senior managers in the

workplace. In conclusion level of productivity, job satisfaction

and labour turn over are affected by the presence of workplace

conflict thus affecting the general performance of senior

managers in the parastatals in. The overall the current

performance of senior managers was noted to be average again as

indicated by the literature reviewed and quite a number of things

need to be implemented to improve the performance of senior

managers.

5.4 Recommendations

In light of the above findings, the researcher made the following

recommendation

For the senior managers level of productivity to remain

consistent with the general organizational performance, the

senior managers should use effective communication to

communicate with each other and with other employees so that

their effort to manage the workplace conflict is appreciated even

in circumstances that the conflict lead to industrial arrest,

they should also never let their status and that of their

colleagues influence their performance, they hold tight to their

prevalent values and to accommodate those of others, discourage

gender discrimination and interact in social group that build

them morally and socially this will earn then support of fellow

employees in case of industrial action since the employees will

view them as one of their own and this will thus create a good

working condition for them thus enhanced productivity.

On job satisfaction; The necessary policies strategies and

procedures for conflict management ought to be put in place by

the organizations management as this is evident of the support

managers get in conflict management; this enhances adequate

motivation and compensation mechanism that are geared to

improving the morale of managers and come up with an appropriate

job design that is all inclusive. The work environment within the

parastatals should be conducive to all stakeholders coupled with

a flexible organizational culture, leadership style and school

philosophies and policies.

To enhance the organizations corporate image; the study

recommends that the organization adapts a conflict management

culture whereby the employees are trained on workplace conflict

and conflict management strategies and thus it becomes the

overall responsibility of the employees to create a work

environment that’s with minimal manifest types of conflict .this

will thus attract the best fit people in the management positions

.

Finally the study recommends that the senior managers should

come up with specific Measurable Attainable Realistic and Time

bound (SMART) goals on conflict management and also to develop a

conflict management policy that is fair, equitable and

transparent so as to reduce employee turn over..

5.5 Suggestions for Further Studies

The researcher recommends that more studies should be carried out

on strategies and mechanisms that should be adopted to overcome

workplace conflicts in the parastatals in Kenya..

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