Trade Conflict And Organizational Success

Project and Seminar Material for Business Administration and Management BAM

Project and Seminar Material for Business Administration and Management BAM


Effect of trade conflict on organization success is intended to investigate the productivity in time of conflict and what the implication is on organization success. A population of three hundred was considered for the study and questionnaire were administered to one hundred and fifty five of managerial and non-managerial staff. The questionnaire were referred and analyzed using chi-square and sample percentage method also finding shown that conflict in organization has adverse effect on its survival on the basis of this; it was recommended that expert should be met to educate management on handling on organization conflict.

Chapter One


1.1 Background to the Study

Organizations are complex in nature. They are made up of people from different background in terms of needs, goods, skills, status, knowledge, style, interest value and aggressiveness.

Under this status of diversities, individual and groups are sometimes bound to disagree on issue with emotional intensity thus conflict according to Free Him (1982) stated that conflict is a disagreement between two or more parties over the same issue which has alternate cost. Conflict in an organization ranges from minor to major disagreement between workers themselves subordinate with basses, bosses themselves and worker with management.

Also trade conflict according to Tuka (1974) as a conflict between worker and employees which is “connected with” one or more of the following term and conditions of employment, engagement or non engagement or suspension of employment of workers, allocation of work, discipline, membership or non membership of a union.

In a work place trade conflict, employees are usually not satisfied with certain employment conditions. They may want more wages better benefits, different working hours, or adjustment to conditions in the work place.

Organization is often characterized by interdependency when there is interdependency between workers, the parties involved must work out their relation across boundaries between individuals and among group in the organization.

Areas of conflict is one of the most prevalent issue in organization. It has been one of the tools that management use to develop the relationship between managers and staffs, its in view of this, the study looked at the effect of trade conflict on organization success by using Nigeria Bottling Company Ltd., Benin City as a case study.

1.2 Statement of Problem

Organization strives to achieve its goals and objectives, organizational conflict is endemic in a organization. Its so disruptive that employees cannot give proper attention to performance goals because interpersonal and inter group.

In managing conflict employee’s are motivated to resolve conflict so that these conflicts don’t disrupt the normal day activities.

Some viewed conflict as bad, a considerable attention should be given to reduce or dominate it also some disagree with this technique because suppressing it may not allow them to get to the root cause of the conflict.

Some believed that conflict can be resolved by confrontational technique, where opposing parties openly share their views to each other.

Some argued that this was not going to solve the conflict in one was willing to state the real causes of the conflict, these controversial statement now lead to the study of this research work, using Nigeria Bottling Company Ltd as a case study.

1.3 Objectives of the Study

Conflict is the difference between the goals of management and individual workers. For managers to effectively utilize the human resource to achieve the organizational objective, there is need to have a better understanding of the vital areas of conflict.

Ignoring conflict in any organization will disturb works mode as well as the interpersonal relationship. This will demotivate workers while the organization suffers in the longs run.

For this reason the objectives of this study is to identify the following:

  1. To identify the effect of trade conflict on organizational success.
  2. To examine how conflict management can increase high productivity of goods and services on organization through conflict management.
  3. To examine how trade conflict affect the effectiveness and efficiency.

1.4 Research Questions

  1. What are the effects of trade conflict on organization success?
  2. Can productivity increase through conflict management?
  3. How does trade conflict affect organization effectiveness and efficiency?

1.5 Statement OF Hypothesis(es)

For the purpose of this study, the following hypotheses which are in the null form shall be tested.

Hypothesis I
  • Ho: Trade conflict does not affect organization success.
  • Hi: Trade conflict can lead to organization success.
Hypothesis II
  • Ho: Conflict management cannot lead to increase in productivity.
  • Hi: Conflict management can lead to increase in productivity.
Hypothesis III
  • Ho: Trade conflict does not affect organization effectiveness and efficiency.
  • Hi: Trade conflict can affect organization effectiveness and efficiency.

1.6 Scope of the Study

The scope of this study is based on solving the conflict between worker and employees in an organization over terms of employment working conditions and related matters. Conflict could come as a result of interdependent work activities also evaluating strategies of managing conflict in the organization.

Understanding causes of conflict in the organization, this research is limited to Nigeria Bottling Company Ltd, Benin City (NBC) as the institute under study. Its actually design to know how conflict affect effectiveness and efficiency in organization.

1.7 Significance of the Study

The significance of this research is in two fold, the practical and theoretical. The practical aspect will be useful to Nigeria Bottling Company Limited, Benin City as a case study.

All observation findings and recommendations of this study will be useful to the management in dealing and coping with conflict as an unavoidable phenomenon in organization.

Thus, the research work finding from provisional project and journals on the topic will be very useful to the company effectiveness and efficiency to achieve the overall organizational goal and objective in discovering the areas where the company has been negligent and thereby taking corrective measures. Its also believed that findings will help to identify areas where amendment need to be done so that effect should be directed toward the areas concerned.

1.8 Limitations of the Study

In the course of carrying out the research work, there were some limitations encountered. Some of the limitations are the busy nature of the company; Nigeria Bottling Company, its staffs made collection of relevant data from them very difficult.

The attitude of some respondents were hostile which made it difficult to gather information from them since some refuse to return the questionnaires distributed to them. This can be seen from the fact that 300 questionnaires given out, but only 125 were returned back.

Another problem encountered were certainly not easy management of Nigeria Bottling Company were reluctant in allowing the researcher to get vital information from the company under study as they were confidential.

Most of the workers decline accepting questionnaire and finally, in spite of these difficulties adjustable and acceptable work has been done to this research work.

1.9 Operational Definition of Terms

The following terms are defined as used in this study. This is to enhance the easy understanding of the study.


An organization according to Michael et al (2004) is a set of people working together to accomplish a goal or a limited set of goals.

It can also be defined as a relationship at network due point of how the management would like the various function and activities to be assigned and connected together.

Its collection of people work together to achieve individual and organizational goals.

Industrial Conflict:

Gray and Stark defined industrial conflict as a disagreement over objective, interest and ideas as they relate to the functioning of the industrial organization. It can be measured by the frequency of conflict in the organization, the issue involve in the conflict and the level of conflict.


Fress Ham (1992) stated that conflict is a disagreement between two or more parties over the same issue which has alternate cost. Conflict is an organization ranges from minor to major disagreement between workers themselves, subordinate with bosses and worker with management.

Trade Conflict:

Employment Act 1982 as the conflict between worker and their own employers and argument between employees and workers over terms of employment working conditions are related matters. Trade conflict result in a strike where employee refuse to work until their demands are met most commonly, employees and workers are able to reach an agreement.

Decision Making:

Michael et al (2004) defined decision making as the selection of one alternative from two or more alternative based upon some criteria.

Collective Bargaining:

Is the process whereby the union and management arrive at a compromise. It involves the process of negotiation over the rate of pay wages, hours at work or other conditions of the employment in the organization.


As the concerted refusal of members of a union to work. Its normally used by the union members to achieve their aim.


This is the benefit that the employee get for his contribution towards the achievement of the organizational goals. It’s a leader’s positive reinforcement of sub-ordinates desirable behavior.

Communication Breakdown:

As the stoppage in the communication flow between the workers in the organization.


Is the transfer of information, ideas and feelings from one person to another. Any external interference in this system will lead to the communication breakdown.


Momoh (2002) is the process of planning, organizing, leading and controlling the organization human and financial material and other resources to increase its effectiveness. A manager is a person who is responsible for supervising the use of the organization resources to achieve its goals.

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