Effect Of Industrial Conflict On Organisational Productivity; A Case Study Of NASCO Company Of Nigeria

Project and Seminar Material for Business Administration and Management BAM

Project and Seminar Material for Business Administration and Management BAM


This study titled “Effect Of Industrial Conflict on Organizational Productivity; A Case Study Of NASCO Company Of Nigeria” was aimed at investigating the types, causes and effects of industrial conflicts in the organization as well as the strategies adopted in managing the conflicts in the organization. The survey research method was adopted for the study. Primary data were collected from selected staff of the organization using questionnaire and interview techniques. Secondary data were collected from published works. Data were presented in tables as frequency distribution and analyzed with percentage and frequency. The Z-test technique was applied in testing the hypotheses. The major findings of the study were as follows; Conflicts regularly occur in the organization. These include intrapersonal, inter-personal and group-management conflict.The causes range from personal trait and goals, organizational policies to poor communication and reward system. The conflict management strategies adopted include avoidance, accommodation, competition, compromise, collaboration, mediation, counseling, team resolution, etc. Conflicts have adverse effects on employees and the organization.Effective conflict management enhances organizational productivity.

Table Of Content

Preliminary Page(s)

  • Title
  • Declaration
  • Approval
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Content

Chapter One:


  • 1.1 Background of the Study
  • 1.2 Statement of Problem
  • 1.3 Objectives of the Study
  • 1.4 Research Questions
  • 1.5 Hypotheses
  • 1.6 Significance
  • 1.7 Scope and Limitations of the Study
  • 1.8 Definition of Terms
  • References

Chapter Two:

Literature Review

  • 2.1 Meaning of Industrial conflict
  • 2.2 Types of Conflict in Organizations
  • 2.3 Causes of Conflict in Organizations
  • 2.4 Conflict Management Aids
  • 2.5 Techniques of Conflict Management
  • 2.6 Impact of Conflict on Organizational productivity
  • 2.7 Impact of Effective Conflict Management on Organizational productivity

Chapter Three:

Research Methodology

  • 3.1 Research Design
  • 3.2 Sources of Data
  • 3.3 Population
  • 3.4 Sample Size Determination and Sampling Technique
  • 3.5 Instrument for Data Collection
  • 3.6 Method of Data collection
  • 3.7 Method of Data Analysis

Chapter Four:

Data Presentation And Analysis

  • 4.1 Presentation and Analysis of Data
  • 4.2 Test of Hypotheses

Chapter Five:

Summary, Conclusion And Recommendations

  • 5.1 Summary of Findings
  • 5.2 Conclusion
  • 5.3 Recommendations
  • Bibliography
  • Appendix
  • Questionnaire

Chapter One


1.1 Background Of The Study

Overtime, Industrial conflict is a canker worm that has eaten deep into the fabrics of most organizations both government and private.In other to achieve organizational productivity, enhance growth and profitability in any organization, a lot has to be done in ensuring that workers or employees are in the right frame of mind in other to give their best to the cause of any firm or organization. Overtime, a lot of scholars have actually observed a striking relationship between employees’ frame of mind and their productive capacity. If operational performance and productivity is to be achieved, then workers/employees have to be provided with the best possible condition to give their best and enhance productivity. In achieving organizational aims and objectives, the workers inputs constitute over 70 percent to achieving profitability (Schlep 2010).

Industrial or industrial conflicts are one inevitable act that takes place in organizations or firms which is capable of ruining an establishment if no properly handled. Misunderstandings are inevitable but the way it is handled in an organization goes a long way of determining the eventual success of such organizations. In an organization where there are people from different background and ideologies industrial conflict is bound to occur. It take quite a lot of professional and ethical ways of ensuring that these industrial conflicts when they do occur can be effectively managed so that it doesn’t have a negative stamp on the organization.Aindustrial crises can be as a result of several factors which ranges from wages/salary, poor working condition, selective punishments just to mention but a few.

Nigeria as a country has witnessed its fair share of industrial crises; in 1964, there was a general industrial action/strike carried out by the United Labour Union over the non-implementation of the revised salary structure in Nigeria. Workers demonstrated their grievances in the streets of major cities in Nigeria and some labour leaders were tortured in the process by the police. In 1994 during the regime of late General SaniAbacha, the academic staff union of universities (ASUU) carried out a strike action throughout the federation which lasted for more than a year over poor working conditions. Also in 2002 ASUU also embarked on six months old indutrial action over the better working conditions promised earlier.

In 2010, the academic staff union of universities particularly in the south Eastern States of Nigeria embarked on a five months strike over the non-implementation of the 2009 FG-ASUU agreement.

However, considering the past history of Nigerian industrial relations, one may conclude that industrial conflict is a dominant factor in the Nigerian Labour Relations and could affect the nations productive capacity if neglected.

1.2 Statement Of Problem

Industrial crises have been a reoccurring decimal in Nigeria’s labour relations. This has grossly lead to economic hardship now evident in the country as the gross domestic product has steadily depleted which has led to job retrenchment. There have been many disputes and disagreement between the Nigerian workers and their employers, this disagreement usually lead to industrial actions, crises and its pathetic result is the poor performance of the economy as millions of naira is lost each time Nigerian workers embark on strike or industrial actions.

However, one would begin to ask why is industrial conflict a dominant factor in the Nigerian Labourhistory? What could be the cause of these actions, the effects as well as possible alternatives to the problem of industrial conflict in Nigeria?

1.3 Objectives Of The Study

The objectives of this study are;

  1. To identify the causes of conflicts in corporate organizations.
  2. To examine the different strategies of conflict management in organizations.
  3. To determine the extent to which these strategies are effective.
  4. To determine the impact of conflict on workers’ productivity.
  5. To determine the impact of effective conflict management on organizational productivity.

1.4 Research Questions

The following questions will be addressed in this study;

  1. What are the causes of conflicts in corporate organizations?
  2. What are the different strategies for conflict management in organizations?
  3. To what extent are the strategies effective?
  4. What is the impact of conflicts on workers’ productivity?
  5. What is the impact of effective conflict management on organizational productivity?

1.5 Hypotheses

The following hypotheses are postulated for this study;

  1. Ho: Industrial conflict does not arise from poor superior-subordinate relationship.
    H1: Industrial conflict arises from poor superior subordinate relationship
  2. Ho: Industrial conflict does not hamper workers’ productivity.
    H1: Organizational conflict hampers workers’ productivity.
  3. Ho: Effective conflict management does not enhance organizational productivity
    H1: Effective conflict management enhances organizational productivity.

1.6 Significance Of The Study

The study has both theoretical and practical significance. Theoretically, this study will be useful to both students and scholars who wish to advance their knowledge on the meaning, causes, effects and possible alternatives to industrial conflict in higher institution of learning and Nigeria at large. On the other hand, it also has a practical significance to the management of the Nigerian government and its employees, as it will help them improve their industrial relations, economic bargaining and collective understanding among them as actors in Industrial Relations. Significantly, it will also provide practicing industrial personnel managers with knowledge on the causes, effects and possible alternatives to industrial conflicts in Nigeria.

1.7 Scope And Limitations Of The Study

This study is majorly focused on the effect of industrial conflict on workers’ productivity with a case study of NASCO in Akwa Ibom state.

Limitations of study
Financial constraint

Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection through the internet, questionnaire and interview.

Time constraint

The researcher simultaneously engaged in this study with other academic work. This consequently cut down on the time devoted for the research work.

1.8 Definition Of Terms


This is a situation in which people, groups, or countries are involved in a serious disagreement or argument due to clash of interest.

Industrial conflict:

This refers to as the dissatisfaction arising from the interaction between the labour and management in the work place.


This is the formal discussion between people who are trying to reach an agreement.


This is temporary refusal by workers to work in accordance to the prevailing employment contract or other conditions that may have been specified or implied in the contract of employment.

Industrial action:

This is the reaction of either party to conflict in any attempt to make the other party succumb to its demand.

Poor performance:

This refers to a situation whereby an employee failed to meet up with his or her expected target in any task assigned to him in an organization.

Chapter Five

Summary, Conclusion And Recommendations

5.1 Summary Of Findings

The following are the major findings of the study;

  1. Conflicts occur in NASCO, Akwa Ibom state. These include intra-and inter-personal conflicts, personal group
  2. The causes of the conflict include poor communication, organizational policies, individual goals, management style, ineffective reward system and poor superiorubordinate relationship. Others include unconducive work environment, poor condition of service, personality traits, bad economic policies among others.
  3. The conflict management strategies adopted include avoidance, accommodation, competition, compromise and collaboration’s. Others include mediation, counseling, team resolution and modifying organizational policy.
  4. Specific conflicts re occurs in the organization. But this is not mainly due to poor conflict management.
  5. Industrial conflicts lowers workers’ morale, discourage commitment to work, de-motivates workers and breeds distrust and suspicious. It also hampers effective inter-personal and group relationships. Besides, it hampers workers’ productivity.
  6. Industrial conflict leads to loss of time, slows down production process, reduces output and profit levels and output and profit levels and hampers organizational growth.
  7. Effective conflict management enhances organizational productivity by creating conducive and harmonious work environment.

5.2 Conclusion

Industrial conflict is a regular feature in corporate organizations which arises whenever there is disagreement between individual or group of individuals and management. Various strategies are adopted in managing the conflicts but the strategy adopted in each instance depends on the nature of the conflict and the person involved.

The strategies adopted are largely effective in resolving the conflicts. However, the reoccurrence of specific conflict is not mainly due to ineffective conflict management but the dynamic socio-economic situation.

Industrial conflicts adversely affect employees and management as well as their relationships. It impacts negatively on workers’ productivity and over all performance and growth of the organization.

5.3 Recommendations

  1. Management should ensure that there is effective communication between the management team and subordinates. This will ensure that all are aware of management policies and actions as well as contributory to decision-making in the organization. This will eliminate alienation and communication gap.
  2. Individual aims and organizational goals should not be congruent. Individuals should ensure that their selfish interests do not conflict with organizational goals. Otherswise, personal interests should be re-align with organizational
  3. There should be effective interpersonal relationships, as well as effective management employee relationships. This should be underscovered by democratic management style. This will ensure that employees’ problems are well addressed and opportunities are always offered to them to achieve their goals.
  4. There should always be adequate reward system or compensation plan for employees. These include adequate pay packages, prompt promotion and advancement and effective welfare and social security programmes.
  5. 5. There should always be regular training and development programmes which will not only improve the skills and intelligence of employees but should also make them well disposed to their work. This will in assignments competently as tasky assignments are an important source of conflict and stress in the work environment.

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Frequently Asked Questions

How do industrial conflicts affect an organization?

Irrespective of the factors resulting in conflict, it has been observed that industrial conflicts produce considerable effects on organisations and should be consciously managed as much as possible. Employees occupy a very strategic place in an organization because of their centrality to the production process.

What are the consequences of conflict in the workplace?

Nowadays, most serious conflicts make headlines in the newspapers, which might affect the public image of the company. Conflicts have both negative and positive outcomes to the individual employees and the organization at large. In social life, conflicts do occur but they are managed by family members, friends and relatives.

Why do we study Conflict Management in an organization?

This organization is chosen because of ease in accessibility and also being an organization with diverse goals, conflicts situation will always be manifesting in the life of the organization. The study also covers majorly on the industrial relationship of the organisation and no other area of the production.

Why is conflict so dysfunctional in some organizations?

The inability to view and manage workplace conflicts systematically has therefore rendered conflict dysfunctional in some organizations. 

How does industrial conflict affect the performance of employees?

Industrial conflict is a very severe matter as it affects the usual performance of the employees. It also deteriorated the relationship between management and employee which ultimately affect the organization productivity, employee morale, dissatisfaction etc.

What are the effects of organizational conflict?

It’s unfortunate, but organizational conflicts may cause violence among members, resulting in legal problems for members and possibly the organization. Conflict can distract individuals and groups from their primary purposes, leaving them with less time and resources for other activities.

What happens when employees are in conflict with management?

If employees are in conflict with management they will work seriously at the same time they will not think themselves as a citizen if the organization, which demodulate them to work with enthusiasm and spirit to do the best and to bring the best outcome for the organization. Industrial conflict impede the achievement of organizational objectives.

What are the most common causes of conflict at work?

Misunderstandings, poor communication, opposing priorities and cultural preferences are all common causes of conflict at work. Whatever form they take, these situations affect an organization’s productivity and performance, create tension between employees and increase stress levels.

Why is conflict management important in the workplace?

With the use of conflict management, certain strategies can be implemented to eliminate and resolve negative aspects of the conflict, increase the positive factors of conflict and enhance performance within the working environment.

Can we control our exposure to conflict in the workplace?

Although we can’t always control our exposure to conflict in our professional and personal lives, we can approach conflict management in a way that makes the difference between a positive and a negative outcome. In the workplace, conflict among employees may create a hostile environment and hinder communication and collaboration.

What are the different types of conflict management techniques?

Conflict management techniques include changing organizational structures to avoid built-in conflict, changing team members, creating a common “enemy,” using majority rules, and problem solving. Conflict management styles include accommodating others, avoiding the conflict, collaborating, competing, and compromising.

What are the causes of conflict in organizations?

Conflict in organizations can be caused by task interdependencies, status inconsistencies, jurisdictional ambiguities, communication problems, dependence on common resource pools, lack of common performance standards, and individual differences. A model of the conflict process follows four stages.  


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