THE EFFECT OF INDUSTRIAL CONFLICT ON THE PERFORMANCE OF KADUNA REFINING AND PETROCHEMICAL COMPANY (KRPC) LTD

ABSTRACT

This study focused on the effect of industrial conflict on performance of kaduna refining and petrochemical company (KRPC). 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.The study adopted survey research in carrying out the research. result from the analysis indictated that industrial conflict affects organizational performance at KRPC. Some recommendations were made   

CHAPTER ONE

INTRODUCTION

Background to the 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.

KRPC 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 KRPC. 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.

 Statement Of The 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 KRPC. 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?

Research Questions

This research work is based on the following question;

• What are the factors that are responsible for industrial conflict in an organisation?   

• Do strikes affect organizational productivity?

• Does industrial conflict have positive impact on organisational productivity?  

• What is the role of labour union in industrial conflict and its resolution process?  

• What are the ways of resolving industrial conflict in an organisation?

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:

ü To examine the factors that are responsible for industrial conflict in an organisation.  

ü To investigate the effect of strikes on organizational productivity.

ü To assess if industrial conflicts have positive impact on organizational productivity.

ü To evaluate the role of labour union in industrial conflict and its resolution process in an organisation.

ü To suggest the ways of resolving industrial conflict in an organisation.

Research Hypotheses

This research work is based on the following hypotheses

     Hypothesis 1

H1. Strikes affect organizational productivity of KRPC.

Hypothesis 2

H1. There is significant relationship between labour union and organizational productivity of  KRPC.

         Hypothesis 3

H1. Industrial conflicts have impact on organizational productivity.  

Significance Of The Study  

The significance of this study are as follows:

• It would provide an objective view of the nature of industrial conflict in Nigeria.

• It would contribute to existing literature by identifying the major causes of industrial conflict in Nigeria.

• The study would also provide an establishment the link between industrial conflict, unionism and organizational productivity.

Scope and Limitation Of The Study

This research encountered a limitation in regards to availability of information. Thus due to the institutions working ethics, we could not get access to vital information since it was treated as confidential  and the targeted respondent’s number was not attained since some employees were on leave. Inadequate funds and availability of time also became a limitation.

The scope of the study is conflict management and organizational performance in KRPC. 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.

 Operational definition of Terms

Conflict; This can be defined as a disagreement or clash between ideas, principles or people. Industrial Conflict: This could be defined as the inability of employers and employees to reach agreement on any issue connected with the subject of employer-employees interaction.

Collective Bargaining: This is defined as a situation whereby the employees and the employers are free to negotiate their relationships about the terms and working conditions without government interference.

Trade Union: This is an association of employees for the purpose of promoting and protecting the interest of their members about terms and conditions of employment. Employee: Is anyone who has agreed to be employed under a contract of service to work for some form of payment.

Employer: Is a legal entity that directs a servant employment and pay or is obligated to pay him or her salary or wages in compensation.

Lock-Out: This is the employer's action of closing a business for the purpose of enforcing   a demand on employees by causing them to be thrown out of work.