Challenges Of Conflict Management On Organization Growth

Project and Seminar Material for Business Administration and Management BAM

Challenges Of Conflict Management On Organization Growth


Sometimes, during the course of labour-management relations, conflicts are inevitable. Infacts, some specialists are of the view that conflict is an institutionalized aspect of industrial relation because it brings about the much-needed co-operation at the end. Conflict is described as antagonism between people-between managements and workers at workplace. It is believed that conflict is better managed than eliminated within the growing realization that a number of benefits are accruable as well as costs. The study objectives includes the following; the examination of conflict on organizational growth; nature of conflict and employee job commitment and means of managing conflict within an organization. The research hypothesis includes; the significant relationship between conflict management and organizational growth; between implementation of conflict management policies and organizational growth and between intelligent cooperation and organizational productivity. Survey research method was used and the population size was (170) but (150) one hundred and fifty were returned, analyzed and computer in the chapter 4 analysis of data, while the statistical tool of Chi-square was used to analyse the hypotheses due forts significant. The study was concluded, summarized and recommendations were preferred at the end of the study for public and national consumption as my contribution to extending the frontiers of knowledge.

Table of Content

  • Title Page
  • Certification
  • Dedication
  • Acknowledgement
  • Table of Content
  • List of Tables
  • Abstract

Chapter One:


  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Objective of the Study
  • 1.4 Research Questions
  • 1.5 Research Hypothesis
  • 1.6 Significance of the Study
  • 1.7 Scope of the Study
  • 1.8 Limitation of the Study
  • 1.9 Definition of Terms
  • 1.10 Organisations of the Study

Chapter Two:

Review of Literature

  • 2.1 Conceptual Framework
  • 2.2 Theoretical Framework
  • 2.3 Empirical Review

Chapter Three:

Research Methodology

  • 3.1 Research Design
  • 3.2 Population of the Study
  • 3.3 Sample Size Determination
  • 3.4 Sample Size Selection Technique and Procedure
  • 3.5 Research Instrument and Administration
  • 3.6 Method of Data Collection
  • 3.7 Method of Data Analysis
  • 3.8 Validity of the Study
  • 3.9 Reliability of the Study
  • 3.10 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

  • 4.1 Data Presentation
  • 4.2 Analysis of Data
  • 4.3 Answering Research Questions
  • 4.4 Test of Hypotheses

Chapter Five:

Summary, Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation
  • References

Chapter One


1.1 Background to the Study

The word ‘conflict’ is universal because today organizations are faced with vast array of conflicting situations. Conflict is wide spread in human societies and runs through the whole organization both profit and non-profit making organization. It arises among members in an organization and even within the personality of an individual. Thus, conflict is one of the most difficult challenge a manager faces. The American Heritage College Dictionary defines conflict as “a state of disharmony between incompatible or antithetical persons, ideals, or interest; a clash”. A modern view of conflict is defined as follows: “conflict is a process in which one party perceives that its interest are being opposed or negatively affected by another party.

The use of the word perceived in the Second definition is a reminder that the source of a conflict can be real or imagined. Conflict can also mean that there is a difference in opinion or agreement between two parties or groups who are trying to achieve the same goal, causing one of the parties to feel that his or her efforts to achieve the goal is being hindered or .challenged by the other party. When disagreement is poorly dealt with, the outcome can be contention, creating a sense of psychological dissonance between people.

Conflicts occur due to the dynamic state of things today in organization and the society at large. In this way we could say that there is a growing recognition of the importance of conflict in organization. A recent survey that managers spends a considerable portion of their time dealing with conflict, and that conflict management has become increasingly important to their effectiveness most especially in the area of organizational productivity, therefore we can say that conflict is inevitable and important in human process.

In the earlier stage, conflict was viewed as evil and also linked with violence, destruction arid irrationality to re-engage it negative connotation by this definition “Conflict” is regarded as harmful and must be avoided. To the “traditionalist” the absence of conflict in an organization is an evidence of success in status- quo interest, yet the existence of conflict in an organization shows that the degree of co-operation is generally present in a well-managed organization. Due to this, we could say that conflict is better off when it is managed than eliminated. In this way one agrees that with the growing realization, conflict has a number of benefits as well as costs.

Therefore it needs to be managed rather than eliminated. The various ideals about conflict, human relations argued that conflict is a natural and inevitable occurrence in all groups and organization and that conflict is a normal and natural consequence of human interaction :n organization settings, but they are complex and its occurs for many reasons. For example, internal stress coming from the person and overlapping with the job, incompatible expectations among workers, workers group and values etc. With these the human relations come out with the idea that conflict need not be evil, but rather has the potential to be a positive drive in determining organizational productivity, thus it is inevitable and unavoidable.

Organization in another Way is a principle of life. It meets many different kinds of man’s emotional, spiritual and intellectual and economic needs. The major purpose of organizations are developed and designed by man to overcome his own limitations.

Organizations are grouped into two mainly:

  1. Formal organization
  2. Informal organization

Format organization is an organization that has a well defined structure that described it authority, power, accountability and responsibility. Informal organization is an organization that is loosely organized, flexible and not well defined.

In organization, conflict often occurs between the supervisors and subordinate, supervisors in the same rank etc.

However, the solution is objective and skilled at creating a climate in which the two parties can arrive jointly at a solution

1.2 Statement of the Problem

The biggest problem in an organization is catching conflict young and addressing it before it escalates. According to Johnson (2007) it is obvious that most schools have devoted a greater part of academic time and effort to settle conflict related issues be it between employees or manager-subordinate conflict. This scenario has continued unabated, hence poses a negative challenge to the growth of these schools. Although, scholars have reasoned that conflict cannot be completely ruled out in any organization (Uchede, Anijaobi & Odigove, 2013) however when they occur frequently in the academic industry it could have an adverse effect on the schools especially in terms of parental trust, loss of students, poor brand image of the school, unemployment of school staffs and ultimately the reduction in profits.

The real challenge managers are facing today is the necessity of understanding and learning how to respond positively and creatively to conflict at the various levels and in the widely diverse areas found in the organization.

Conflict, if not properly managed can cause problem in job satisfaction and organizational commitment, thus, leading to an un-conducive atmosphere, strikes, labour disputes and unrest, distress on the part of the organization as well as hindering the realization of the organizational goals and objectives. The focus of the study will be on how to manage conflict effectively in order to avoid those problems

1.3 Objectives of the Study

The major objective of this study is to investigate the challenges of conflict management on organizational growth. Other objectives include:

  1. To examine the impact of conflict on organizational growth
  2. To examine the nature of conflict on employee job commitment
  3. To find the means of managing conflict with the organization
  4. To examine the different types of conflict and its impacts on organizations
  5. To emphasized the relationship between conflict and the organizational productivity
  6. To examine the causes, sources and solution of conflict in business organization

1.4 Research Questions

For the purpose of this study the following research questions- were formulated to guide the study:

  1. How can conflict lead to organizational decline in growth level?
  2. What are the general effects of conflict on organization performance?
  3. What bring about conflict in an organization?
  4. How can conflict be effectively managed in an organization in order to increase productivity?

1.5 Research Hypotheses

Hypothesis 1
  • HO1: Conflict management does not have any significant effect on organizational growth.
  • Hi: Conflict management has significant effect on organizational growth.
Hypothesis 2
  • HO2: Implementation of conflict management policies does not have significant effect on productivity.
  • H2: Implementation of conflict management policies has significant effect on productivity.
Hypothesis 3
  • HO3: Intelligent cooperation as a result of effective communication will not boost productivity
  • H3: Intelligent cooperation as a result of effective communication will boost productivity

1.6 Significance of the Study

The importance of the study is to look at the impact of conflict management in the organization. It is hope that the findings and recommendations would be useful to both public and private organizations. This study will help managers in exploring the benefits realization that conflict can bring to any organization, using NAHCO as a mirror.

1.7 Scope of the Study

A general survey has revealed that much attention has not been given to the challenges of conflict management on organizational growth in this country and most especially managers, despite the fact that the effect of conflict is inevitable and universal in the society. However, this project aims at looking into these problems, most especially in large organizations and to see the achievement so far and also make: the necessary recommendation.

1.8 Limitation of the Study

There are some limitations faced by the researcher during the course of this study. Limited time and financial challenge were some of the limitation encounter by the researcher.

1.9 Definition of Terms


This is the way a person responds to a situation or stimulus.


This is define as a disagreement between two or more organizational members or groups based on the fact that they need share resources or because they have different goals, values or perception.


It is primarily a mechanical process, in which a message is constructed and encoded by a sender, transmitted through some channel, then receive and decoded by a receiver.

Conflict Management:

This is a holistic approach to divergent orientation between both parties (employer and employees) as the case may be, with the objective of mitigating the effect of the conflict, preventing conflict from ensuring and to make the most of the opportunities offered by the same conflict.


The process of planning, organizing, leading and controlling the effort of an organization member and of using all other organizational resources to achieve stated organizational goals.


This is define as a co-ordinate social unit, made up of two or more people that function on a relatively continuous basis to achieve a common goal.

Organizational Productivity:

This is the aggregate level at which all the resources in the corporate organization are being put to use; its measurement in real terms is the output level of all resources in the organization.

1.10 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows.

  • Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
  • Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
  • Chapter three deals on the research design and methodology adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion, and recommendations made of the study.

Chapter Five

Summary, Conclusion and Recommendation

5.1 Summary

This study examine the challenges of conflict management on organizational growth using NAHCO in Lagos Metropolis as case study. The study examined nature of conflict and employee job commitment and means of managing conflict within an organization. The research hypothesis includes; the significant relationship between conflict management and organizational productivity; between implementation of conflict management policies and organizational productivity and between intelligent cooperation and organizational productivity.

Survey research design was adopted for the study and with the aid of convenient sampling method, the researcher selected One hundred and seventy (170) participant who are NAHCO in Lagos Metropolis as the respondent of the study. Well structured questionnaire was issued to the (170) but (150) one hundred and fifty were returned, analyzed Data was analyzed in frequencies and tables using simple percentage. Hypothesis test was conducted using Chi-Square statistical tool.

5.2 Conclusion

Conflicts are inevitable part of organizational life since the goals of different stakeholders such as managers and staff are often incompatible. Conflict is an unpleasant fact in any organization as longer as people compete for jobs, resources, power, recognition and security.Conflict situations affect the overall effectiveness of co-operate organizations in the sense that they cause disharmony among organizational participants impacting negatively on organizational performance. This is because useful time and resources are wasted during conflicts in organizations. Therefore in order to harmonize these divergences,Conflict resolution becomes an important aspect of corporate management. From the analysis of the study, Findings reveals that:

  1. Factors like Task inter-dependencies, Status inconsistencies, jurisdictional ambiguities, communication problems, dependence on common resource pools/tools, and Individual difference are the causes of conflict in organization.
  2. Implementation of conflict management policies has significant effect on productivity.
  3. Organizational conflict can have a significant effect on productivity this is because it decreased employee satisfaction, Low morale and job commitment, breed Insubordination and low performance, lead to Project failure and economic loss.
  4. Approaches to resolve organizational conflict include Prioritize the areas of conflict. encourage constructive discussions on different idea, create an atmosphere of mutual trust, Identify points of agreement and disagreement and Focus on behavior and events, not on personalities.

5.3 Recommendation

Base on the result of the study, the following recommendations were made:

  1. Organizations (Managers) should pay more attention on the conflict phenomena, they should increase qualification and gain/improve skills related to conflict management.
  2. Also, there can be conducted trainings about the conflict and its constructive and destructive outcomes.
  3. Conflict resolution by a third party through dispute resolution or direct dialogue is one of the most effective means. But should be considered that, every organization has specific style, specific rules, policy and situations which can not be combine in general rules. All this knowledge should be used in daily routine at the workplace. This will increase both the performance and the productivity of the employees and will be reflected on organizational outcomes positively.
  4. Adequate conflict resolution mechanism is recommended to be set up and maintained in order to serve as a catalyst to reduce accumulated grievance and trigger employees to better performance.
  5. Finally, There is a need to continuously educate the workforce on the best way to channel their grievances. This is to ensure that the employees do not take laws into their hands.

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