The Effect of Industrial Conflict on the Performance of Kaduna Refining and Petrochemical Company (Krpc) Ltd
CHAPTER ONE
Objectives Of The Study
The broad objective of this study is to examine the effect of industrial conflict on organisational productivity using KRPC as our case study. While the specific objective include:
- To examine the factors that are responsible for industrial conflict in an organisation.
- To investigate the effect of strikes on organizational productivity.
- To assess if industrial conflicts have positive impact on organizational productivity.
- To evaluate the role of labour union in industrial conflict and its resolution process in an organisation.
- To suggest the ways of resolving industrial conflict in an organisation.
CHAPTER TWO
LITERATURE REVIEW
Concept of Conflict and Industrial Conflict.
Unions and management tend to have opposite views because of the divergence between the expectations of management and labour in organizations which often leads to conflicts. Conflict by nature is a constant phenomenon in any human organization. It is so ubiquitous in social life that it has been isolated by some as the basic unit for understanding social existence (Ajala, 2003; Alimba, 2010).
The endemic nature of conflict in human grouping has been traced to the pursuit of divergent interests, goals and aspirations by individuals and/or groups in defined social and physical environment. Thus, conflict remains the most permanent feature that makes humanity convinced that growth and development are predicated on conflicts. Though conflict is generally perceived as something devastating, abnormal, dysfunctional and detestable, yet it could be a precursor of positive change if constructively handled (Edwards, 2003; Hammed & Ayantunji, 2003).
Conflict has been subjected to diverse definitions by various scholars based on the context and their understanding of the concept. Fisher et al (2004) defined conflict as a relationship between two or more parties (individuals or groups) who have or think they have incompatible goals. It therefore implies that conflict is a continuous interaction that span through lifetime of man and not just a one-off relationship.
Also, one of the most quoted traditional definitions of conflict describes it as struggle over values and claims to scarce status, power and resources in which the aims of the opponents are to neutralize, injure, or eliminate their rivals (Coser, 1956). This description of conflict explains the reasons why workers are often ready to ground all economic or productive activities via strike in a bid to get their demands met. In corroboration with Coser’s definition of conflict, Constantino et al (1995) described conflict as the process of expressing dissatisfaction, disagreement or unmet expectations with any organizational interchange. Otite (2001) conceptualized conflict as a way of settling problems originating from opposing interests and from the continuity of society.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
In this chapter, the method and procedure used in conducting this research is explained. The chapter describes the research design, area of study, population of the study, sample size and sample techniques, sources of data; strengths and its weakness, instrument of data collection, method of data collection and method of data analysis.
CHAPTER FOUR
RESULT AND ANALYSIS
Regression analysis showing the strikes affect organizational productivity of KRPC
CHAPTER FIVE
CONCLUSIONS AND RECOMMENDATION
CONCLUSION.
Industrial crisis portends a great issue of concern not only to the workers and employers but the society due to its effects on national productivity. The study found-using the asymmetric information and pluralistic industrial relation as theoretical framework that the causes of the industrial crisis in Nigeria include: inflation rate, socio-political situation, unions’ strength and unemployment rate. In addition, the results show that wage level and measure of trade liberalization had inverse associations with industrial crisis. On the other hand, the study established that industrial crisis had negative and significant effect on the level of economic activity in Nigeria denoting that industrial crisis has great cost to the Nigerian economy as a result of its effects in the loss of productive hours.
The empirical clarification from the study is that some indicators like inflation rate and the nature of socio-political environment, union density have significant and direct impact on industrial crisis. This is because they affect workers’ living condition which will increase their agitations and internal strength of the workers in pushing forward their demands which will threaten industrial peace. Other factors like unemployment rate also had strong positive effect on industrial crisis. In addition, wage was found to have inverse impact on industrial crisis. It then implies that a comfortable wage will help to ameliorate the level of industrial crisis in Nigeria. Thus, the minimum wage policy of the Federal Government can be said to be appropriate which needs to be improved in order to keep the real wage relatively satisfactory. Also policies that can reduce inflation and unemployment rates will help ameliorating the level of industrial crisis. The study also clarified that the measure of trade liberalization has an inverse and significant relationship with industrial crisis contrary to previous theoretical suggestions.
RECOMMENDATIONS
Based on the findings of this project, it can be seen that industrial conflict affects organizational productivity, except if it is handled with care. Recommendation made includes the following;-
- Management should adopt collective bargaining with the labour union in order to reduce or eliminate strike within the industry.
- In order to avoid conflict within the organisation, there should be free flow of communication, because if there is free flow of communication, managers and workers will be able to dialogue or talk things out that might lead to conflict.
- To promote harmonious labour management relationship, collective bargaining should be a major tools for conflict resolution strategies. Also, Management should re-orientate employees on the effect of conflict on organizational productivity and performance.
- Employee dissatisfaction can be eliminated through work incentive, recognition and other forms of benefit. Equally, Management should pay workers’ salaries on time and use incentives and remuneration to encourage workers to work and to minimize conflict.
- Management should be concerned about the workers general welfare. They should also be concerned about the workers in order to avoid or minimize conflict in the organization.
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