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

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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

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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

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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.

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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

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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

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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.

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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

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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

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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

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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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