Industrial Conflicts And Organisational Performance (A Case Study Of 7Up Bottling Company)

Project and Seminar Material for Business Administration and Management BAM

Project and Seminar Material for Business Administration and Management BAM


The study on industrial conflicts and organisational performance aimed to examine the influence of conflict resolution and management in promoting and enhancing organizational performance, to identify resolution mechanism, introduced by Kaduna state civil service in the resolution and management of conflict. The study made use of primary data which are gotten from the distribution of the research questionnaires; the sample size for the study is 40. The study made use of the Pearson correlation method for the analysis. The study therefore concluded that Conflict resolution and management have significant influence on organizational performance. The study also made useful recommendation to assist the management of 7up bottling company in conflict management and policy generation.

Chapter One

1.0 Introduction

1.1 Background Of Study

The establishment and continuous existence of organisation through the realization of set goals and objectives requires the continuous and effective functioning of its material input with the human element being indispensable. However, the human elements required to facilitate goals attainment often engage in disagreement and variance over factors such as interest, views, style of management among others.

The reactionary effect is due to the perceived incompatibilities resulting typically from some form of interference or opposition is term conflict. Azamosa (2004) observed that conflicts involve the total range of behaviours and attitudes that is in opposition between owners/managers on the one hand and working people on the other. It is a state of disagreement over issues of substance or emotional antagonism and may arise due to anger, mistrust or personality clashes. Conflict are inevitable part of organisational life since the goals of different stakeholders such as managers and staff are often incompatible (Jones et al 2003). In addition, it is argue that Conflict is an ever-present process in human relations. That is why various companies have changed their approaches to enable them to manage their organisations effectively to avoid conflicts at all costs. Conflict is a fact of life in any organisations as longer as people compete for jobs, resources, power, recognition and security. In addition, dealing with conflicts is a great challenge to management (Adomi and Anie, 2005). Conflicts commonly arise when employees interact in work place and compete for scarce resources. Employees in various organisations are organized into manageable groups in order to achieve common goal, therefore, the probability of conflicts to arise is very high.

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. The same case applies to organisations 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. They contribute a very indefinable role both in the achievement of various organization goals and objectives as well as the government economic programme. However, for employees to perform their crucial role effectively and efficiently there must exist a strong cordial relationship between the employer and employee of such organizations. Although conflict in an organization is inevitable, it must however be noted that friction between employer and the employee must be reduced through a vibrant collective bargaining process to ensure smooth operation in the business of the organization.

Conflicts are inevitable in every organization. There will always be conflicts and disagreements between employers and employees, either on wages or on the general condition of service of the workers. Conflict in Nigerian industries has become perennial and disturbing so much that it has hampered the growth of some organizations in Nigeria. 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, 2003). 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. 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.

7UP bottling Company is an organization that is not excluded from conflict situation as long as the human element is part of its resources. They may disagree over issues in the workplace which can trigger conflict that need to be managed for improve performance and to enhance productivity in the organization. To this effect, this study seeks to explain further and identify the effect and problems of industrial conflict in Nigeria companies particularly 7UP bottling company. Also building on earlier research projects and study, this study sets to deepen our understanding and expose us to more facts in terms of benefit and economic advantage that organisation will benefit in choosing right and effective means of managing conflict that may arise within the industry.

1.2 Historical Background Of 7Up Bottling Company

On October 1st 1960, the exact day our great country Nigeria won her independence, also saw the birth of a soft drink giant as the first bottle of 7Up rolled out from its factory located in Ijora. The Seven-Up bottling company Plc is now one of the largest independent manufacturers and distributors of well-known and widely consumed brands of soft drinks in Nigeria. The Pepsi, 7UP, Mirinda, Teem and Mountain Dew and Aqua Dana Table water brands are all produced in the company’s nine bottling plants with state of the art manufacturing facilities located strategically across the country.

Seven-Up Bottling Company has a well coordinated distribution network with an extensive network of over 200 distribution centers located across Nigeria. The company’s workforce is currently in the neighborhood of 3500 employees. The Nigerian headoffice office is located along Moshood Abiola Way, Ijora, Apapa, Nigeria.

1.3 Statement Of Research Problem

For peace and harmony to reign supreme in any organization, it is very important that employers and employee give their best in employment matter. The employer should be able to provide job for the employees provide safe and good working tools pay the wages of workers. On the other hand employee must be loyal and faithful, obey reasonable instruction and be ready to do the job for which he is employed. When both parties play their roles perfectly, their relationship will be very cordial, but where one party fails in his duty there would be crisis in the work environment. This cordial and mutual respect sometimes suffer breakdown. It is not unusual to learn that a particular union called out its members on a strike action as a result of failure on the part of the management of an organization to fulfill its obligation either by non-payment of salary or non-provision of working tools. Against this backdrop, the study intended to find out the effect of industrial conflict on organizational productivity in 7up bottling Company. This is for the purpose of ascertaining the relevance and benefit of well manage conflict in an organization in consideration for the provision of good working tools. As such the problem of the study is to find out what is the industrial relationship practice in the organization and factors responsible for the industrial conflict in the organization?

1.4 Objectives Of The Study

Conflict is a broad topic as can be seen from the introduction and its an imperative factor in organization harmony and performance therefore this research work will attempt to look at industrial conflicts and organizational performance using the 7up bottling company as a case study with a view to proffering some solutions to industrial disputes or conflicts.

The following are the objectives of this study:

  1. To examine the influence of conflict resolution and management in promoting and enhancing organizational performance.
  2. To identify resolution mechanism, introduced by Kaduna state civil service in the resolution and management of conflict

1.5 Statement Of Hypothesis

This study formulated the following hypothesis:

Ho: Conflict resolution and management do not have significant influence on organizational performance

Hi: Conflict resolution and management have significant influence on organizational performance.

1.6 Significance Of The Study

This study is significant for the following reasons:

It is an attempt to bring into light the problems faced by the 7up bottling company in Nigeria

The findings of this study are also significant to employee associations, trade unions, employers union, labour ministry, organizations and the society at large.

It is an avenue for assessment of all the machineries put in place by the government to help in maintaining industrial peace in 7up bottling company.

Practicing managers will also find this study rich and ideal reference material as it recognizes ways and tools to tackle problem of industrial conflict management in 7up bottling company

Finally, to those in the academia and conflict researchers, this study will serve as a spring board for further investigation.

1.7 Scope Of The Study

Industrial conflicts remains a problem that deserves to be minimized. This study will be restricted to the causes, effects or influence, and types of conflicts on organizational performance.

Therefore, this project is intended to examine the possible causes of conflicts and conflict resolution has on the performance of organizations. The study will source its data from the target respondents who are members of staff of 7up bottling company and as well use secondary sources of data such as textbooks, journals and internet.

1.8 Limitation 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 (internet, questionnaire and interview).

Time constraint

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

1.9 Definition Of Terms


This refers to any worker or persons that is employed by another person, organization or government.


This means a person, industry company, organization or government that pay people to work for them.


Those who coordinate and control resources towards achieving the objectives of an organization. This involves planning, organizing, coordinating and controlling the activities of the organization.

Industrial Conflict:

This refers to a conflict or dispute or difference of opinion between management and involves or employees on the terms of employment or other work related factors.

Labour/Management Relationship:

This refers to the process by which employers refers to the process by which employers and employees relate regarding the terms and conditions of employment.

Collective Bargaining:

Is the process that involves the negotiation, drafting, administration and interpretation of a written agreement between employees of a union for a specific period of time.

Trade Union:

Trade union is a group of workers with the ideology and believe who come together to negotiate with employers about wages, working conditions and other work related matters.

Organizational Harmony:

This is the ideal state of peaceful existence and agreement between employers and employees in productivity.

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