Conflict Management In Business Organization

Project and Seminar Material for Business Administration and Management BAM

Conflict Management In Business Organization


This project was conducted to look properly unto the conflict management in organization, its causes and resolution.

The aim of this project is to help management to overcome the problems which was stated properly in the introduction aspect as well as the historical aspect of he project.

The whole literature books concerning the management to conflict in organization were also reviewed thoroughly, which will also help in the resolution process of this conflict. A lot of research was mine in this project which if management adopts will help in tackling of his issue.

Finally, the work was analyzed and a lot of things were found out which may also be used for the tackling of the conflict management as well as the recommendation for the resolution of conflict, which is to known that negative position on attitude can prevent productive resolution.

And concluded that conflict occurs in personnel and professional setting regarded as a very negative force or as sources of great potential and productivity.

Chapter One

1.0 Introduction

1.1 Background of the Study

The historical background of conflict in organization can be seen as far back as the ancient times, which involves the scientific management era, personnel and human relation movement and the modem management period.

The ancient firms (before 1800AD) is based on the events of the past years. This period gave a lot of knowledge about management.

The scientific management era (Fredrick W. Taylor in 1856 – 1917). He developed a method known as scientific management, which is the method used to investigate every operating problem and try to determine the best way to solve the problems, using scientific methods of research. The concept involved a-way of thinking about management.

In his concept, he observed some management conflict in an organization as

  1. That workers wasted more time than that was necessary to accomplish a give task.
  2. That there was a general inefficiency of the workers.
  3. That labour costs were consequently higher than they would have been.

Human relations movement and behavioural science (personnel) period by Elton Mayo (1900-1950). He found out that here are conflict in management driving his research and concluded that monetary incentive and other working conductions are not only the motivating factors in an organization. But proper attitude to work is equally important also the superior’s role was important for moral and productivity. Group spirit and teamwork were vital to accomplish organizational goals and workers satisfaction. Also, that within every formal organization, informal organization for any formal organization to achieve its corporate objective, the managers must therefore know why employees act in the manner they do, and the psychological, social and other factors which motivate them.

The modern era (Heney Faylo 1841 – 19250), which is the revisionism. He classified organization activities, the qualification of a manager. He did his own research and found out many conflict encountered by workers and managers in a given organization. After which the concluded the fourteen principles of management:

Division of work: Authority and responsibility, discipline: unity of command; unity of direction; remuneration; centralization; order, equity; stability of tenure; initiative and spirit de corps.

These principles in his own view, if conflict is followed in organization will reduce the conflict management and make things flow easily without them encountering any problems.

1.2 Statement of Problems of the Study

There are many potential problems of conflict in organization. Today’s organization are characterized by complex relationship and a high degree of interdependence of task that can occur. People also have different values and different perception of issues. For instance, a production manager may want to concentrate on product(s) that have available materials and technology to produce them, while the sale manager may desire, a brand product line that will satisfy diverse customers demands.

Potential cause of conflicts can be between people in line and staff position, also superiors autocratic and leadership style.

The problems are summarized below:

  1. The organization conflicts are due to lack of communication between the employee and employees.
  2. In terms of money, the ratio of profits to wages and salary cause conflict between workers and management.
  3. Management are concerned with efficiency and workers with job security. Management want more efficient machinery, this displace workers as less needed. Conflict occurs between marketing and production mangers as their policies and interest often differ.
  4. Workers restriction for more participation in decisions which affect their lives. This is vertical conflict between workers and management.
  5. The socio-technical system organized men in a particular way which often, leads to a boring job, no control of the pace of work, no responsibility of group identify.
  6. Downwards fluctuations in the market for the products are threat to workers security. Such problems causes conflict even within a union, of there is notling doing to secure their job.

1.3 Objective of the Study

The general aim of this study is to have a general view of the problems and the prospects of conflict management in organization (Niger Gas, Emene).

Thus, this, study has the following specific objectives:

  1. To review and make people understand the nature of conflict in some of the management organization in some places.
  2. To find out he main causes and sources of conflict in Niger gas, concerning their management and administration department.
  3. To have a good review on the rerivedies to organizational conflict in Niger Gas.
  4. To identify the destructive and constructive nature of conflict no the workplace.
  5. To have proper understanding of management and as a logical check lest in training.
  6. To identify the approaches for dealing with any conflict situation.
  7. To determiner how to transform conflicts for constructive outcomes.
  8. To achieve social objectives and goals, if the work of conflict will be properly taken care of.
  9. For research purpose and to perpetuate cultural impact and practice.

1.4 Significance of the Study

This study is beneficial and important with respect to the problems under study.

The research is intended to examine the problems and prospects of conflict management in Niger Gas, Emene.

Since, the ultimate goal of any business organization is to optimize profit by minimizing cost, management should know how to tackle conflict, that is how to make conflict beneficial to Niger Gas.

Other organization located at Emene, who are having similar problems will benefit generously from the study for better performance.

It will be helpful, if the results of this study are properly implemented. Also, it will enable the managers improve their marketing activities formers better and attract new ones.

The consistent improvement of the quality of the product and services based on the finding of this study will help gain a sustainable consumer confidence and patronage and hence improve productivity, profit and growth of the Niger gas economic development.

1.5 Research Hypothesis

  1. Conflict management is a serious problems which has reduce productivity and efficiency.
  2. There will be a better and improved workers and productivity if conflict is properly managed.
  3. The welfare programme in Niger gas is not encouraging.

1.6 Scope of the Study

The scope of this study borders on conflict management in busines organization . The study further discussed the nature, causes, sources and remedies to organizational conflict. The study is however delimited to Niger Gas, Emene in Enugu State.

1.7 Limitation of the Study

However, like in every human endeavour, the researchers encountered slight constraints while carrying out the study which posed as a limitation. The significant constraint was the scanty literature on the subject owing to the nature of the discourse thus the researcher incurred more financial expenses and much time was required in sourcing for the relevant materials, literature, or information and in the process of data collection, which is why the researcher resorted to a limited choice of sample size. More so, the choice of the sample size was limited to Nigeria Gas only as few respondent were selected in few to answer the research instrument hence cannot be generalize to other State. However, despite the constraint encountered during the research, all factors were downplayed in other to give the best and make the research successful.

1.8 Operational Definition of Terms


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.

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.

Chapter Five

Summary, Conclusion and Recommendation

5.1 Summary

The general aim of this study is to have a general view of the problems and the prospects of conflict management in organization (Niger Gas, Emene). The study reviewed the nature of conflict in some organization. It find out the main causes and sources of conflict in Niger gas, concerning their management and administration department and had a good review on the remedies to organizational conflict in Niger Gas.

Survey research design was adopted for the study and with the aid of convenient sampling method, the researcher selected sixty-six (66) participant who are staff in Niger Gas Emeneas the respondent of the study. Well structured questionnaire was issued to the 66 respondent whereas only (60) were retrieved and validated. 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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