CONFLICT MANAGEMENT STRATEGIES AND ORGANIZATIONAL PERFORMANCE OF SMALL-SCALE MANUFACTURING FIRMS IN PORT HARCOURT

CHAPTER 1

INTRODUCTION

1.1 Background to the Study

Organizational performance is derived from the word job performance that means real work produced an employee within a specific time period. Performance is a comparison between the works of the real compared to the standard set by the company (Dessler, 2000). Performance is the quantity and quality of produced or services rendered by a person in doing the job (Luthan, 2005). Performance is the work of behavior (Armstrong, 1999). Performance is the relationship between work and behavior. One way an organization can perform is through conflict management strategies. Conflict occurs between people in all kinds of human relationships and in all social settings. Because of the wide range of potential differences among people, the absence of conflict usually signals the absence of meaningful interaction. Conflict by itself is neither good nor bad. However, the manner in which conflict is handled determines whether it is constructive or destructive (Deutsch and Coleman, 2000). Conflict is defined as an incompatibility of goals or values between two or more parties in a relationship, combined with attempts to control each other and antagonistic feelings toward each other (Fisher, 1990). The incompatibility or difference may exist in reality or may only be perceived by the parties involved. Nonetheless, the opposing actions and the hostile emotions are very real hallmarks of human conflict. Conflict has the potential for either a great deal of destruction or much creativity and positive social change (Kriesberg, 1998). Therefore, it is essential to understand the basic processes of conflict so that; we can work to maximize productive outcomes and minimize destructive ones. This review describes some common sources of conflict, the nature of conflicts in modern organizations, and the general strategies of approaching conflict that are available. Organization, is it public or private, small or big exist essentially to achieve certain economic social or political objectives. These objectives may be in form of profit making, provision of services production of goods and increases in sales turnover etc. However these objectives can only be achieved when human resources are employed to utilize other resources such as raw materials, machineries, money and information. (George and Jones 1996) organization is made up of different people with different attitude, beliefs, abilities and personality therefore a conflict is inevitable. There is no organization that can effectively carry out its day to day activities without encountering some form of conflict.

Conflict is defined as an incompatibility of goals or values between two or more parties in a relationship, combined with attempts to control each other and antagonistic feelings toward each other (Fisher, 1990). The incompatibility or difference may exist in reality or may only be perceived by the parties involved. Nonetheless, the opposing actions and the hostile emotions are very real hallmarks of human conflict. Therefore, it is essential to understand the basic processes of conflict so that; we can work to maximize productive outcomes and minimize destructive ones. This review describes some common sources of conflict, the nature of conflicts in modern organizations, and the general strategies of approaching conflict that are available.

Robbins and Judge (2009) defined conflict as ‘’ a process that begins where one party perceives that another party has negatively affected, or is about to negatively affect something that the first party cares about’’. This is a very apt definition, emphasizing that conflict is about perceptions, not necessarily real hard facts. It points to the emotional nature of conflict, by referring to a word like ‘’care’’, it states that more than one party is involved and that there may be a future component attached to it.

Shapiro (2006) in relation to the above states that, conflict is a process of social interaction. It involves a struggle over claims to resources, power, status, beliefs, preferences and desires. Darling and Walker (2007) linked this idea to the organization by stating that, even when conflict is a natural phenomenon in social relations (as natural as harmony), it can nevertheless be managed within organizations. They add that conflict may have both positive as well as negative consequences within the organization, the submission above blend with the fact that, conflict can never be totally eliminated within organizations but can be efficiently managed in order to move organizations to greater height  and performance level.

Organizations, be it public or private, small or big exist essentially to achieve certain economic social or political objectives. These objectives may be in form of profit making, provision of services production of goods and increases in sales turnover etc. however these objectives can only be achieved when human resources are employed to utilize other resources such as raw materials, machineries, money and information. (George and Jones 1996) organization is made up of different people with different attitude, beliefs, abilities and personality therefore a conflict is inevitable. From the foregoing therefore, the study seeks to examine the relationship between conflict management strategies and organizational performance of Small-scale manufacturing firms in Port Harcourt.

1.2 Statement of the Problem

Expanding industrial activities have been ascribed incompletely as casualisation of specialists (Kalejaiye, 2014). Taking the manufacturing sector as a case, as related to the extent to which the issue can be seen.

Considering the impart of conflict in an organization and how people view the concept it becomes imperative for such a research work to be carried out in order for the organization association and even interested public appreciate the concept. This study also seeks to explain the effectiveness of conflict in organization and also the strategies available in managing the conflict. Numerous organizations in  Nigeria  are  tormented  by  a  bunch  of  issues  and  illnesses  created  by  wasteful  and incapable administrative style or strained relationship amongst administration and the worker’s party (Fapohunda, 2012).   It is against these problems that, this study empirically evaluates the relationship between conflict management strategies and organizational performance of Small-scale manufacturing firms in Port Harcourt.

1.3 Objectives of the Study

The aim of the study is to examine the relationship between conflict management strategies and organizational performance of Small-scale manufacturing firms in Port Harcourt. The specific objectives of the study are to:

1.       Examine the relationship between competition and organizational performance of Small-scale manufacturing firms in Port Harcourt.

2.       Examine the relationship between relationship between collaboration and organizational performance of Small-scale manufacturing firms in Port Harcourt.

3.       Examine the relationship between conflict avoidance and organizational performance of Small-scale manufacturing firms in Port Harcourt.

1.4 Research Question

The following research questions were proposed to guide the study.

1.       Does competition and organizational performance of Small-scale manufacturing firms in Port Harcourt?

2.       Does collaboration associate with organizational performance of Small-scale manufacturing firms in Port Harcourt?

3.       Does conflict avoidance associate with organizational performance of Small-scale manufacturing firms in Port Harcourt?

1.5 Research Hypotheses

The following research hypotheses were postulated to guide the study.

HO: There is no significant relationship between conflict management strategies and organizational performance of Small-scale manufacturing firms in Port Harcourt.

HA: There is a significant relationship between conflict management strategies and organizational performance of Small-scale manufacturing firms in Port Harcourt.

1.6 Significant of the Study

The relevant of this study rest in the importance to stakeholders in the organization. This study will assist organizational managers on the tools techniques to employ in managing conflict in their respective organizations in the banking industries. This study is pertinent to trade unionist in their respective organizations. This study is justified because it will assist in the stability and relative profitability in the organization particularly in the period of economic recession. This study will also contribute in enriching the literature in industrial relations particularly in management sciences in general.

1.7 Scope of the Study

The study is delimited under the following headings; content scope, geographical scope and unit of analysis.

Content Scope: The content of this study involves on investigation to ascertain the relationship between conflict management strategies and organizational performance of Small-scale manufacturing firms in Port Harcourt.

Geographical Scope: This study is delimited to Port Harcourt metropolis with reference to some selected Small-scale manufacturing firms which include ALO Aluminium Manufacturing Co, East/West Road, Rumuokoro, Berger Paints 70, Ordinance Road, Trans-Amadi Industrial Layout, and Energy Works Technology Ltd Nestoil Industrial Area, End of Okilo Road, Abuloma all in Port Harcourt, Rivers State.

Unit of Analysis: The unit of analysis involved the staff of the selected small and medium scale manufacturing firms at the time of the study. Hence it is a micro level study. In carrying out an investigation of this nature the researcher must of necessity be faced with some constraints.

The time constraints, the time frame provided for this study was short.

Financial constraints. Usually, a study of this nature involved some level of expenditure therefore; finance was also a limiting factor.

Poor response from the respondent and inability to access the entire population of the study. In the next segment significance of the study will be discussed and lastly, poor measurement instrument.

1.8 Definition of Related Terms

AVOIDANCE: This study argues that “avoidance” in some instances, be recognized as an active form of conflict management strategies. That adopting avoidance as a method of conflict management strategies can be an active method of team building demonstrated if the organization considers the staff.

COMPETITION: It reflects a desire to meet one’s own needs and concerns at the expense of the other party. As the model illustrates, the most assertive and least co-operative people use the competitive style. If the stakes are high, enough, a very competitive person’s use of power may well be limit only by some greater external power such as the law or social taboos.

COOPERATION: Cooperation is the most appropriate tool for managing organizational conflict if do not suffer the parties from time pressures.

CONFLICT AVOIDANCE:  This attempts to keep the conflict surfacing at all or would simply ignore the conflict or impose a solution. This type of strategy may be used if the conflict is trivial or if quick action is needed to prevent the conflict from occurring.

CONFLICT: This refers to a solution in which there is incompatible goals recognition or emotion within or individual or group that lead to opposition.

CONFLICT MANAGEMENT STRATEGIES: This can be defined as attempt to control or regulate conflict through numbers of measures.