IMPACT OF INDUSTRIAL DISPUTE ON WORKERS PERFORMANCE IN PRIVATE ORGANIZATIONS IN MAIDUGURI METROPOLITAN CENTRE, BORNO STATE

CHAPTER ONE

1.1. BACKGROUND OF THE STUDY

INTRODUCTION

Work performance is generally regarded as an unquestioned fact of life in most large organizations. This is because of its widely accepted and generally unquestioned benefits. When asked, most organizations would argue that the system brings about the benefits of employees being a given feedback regarding their performance, usually at least once a year so that action can be taken to rectify any weaknesses. This would hopefully lead to more effective performance and increased productivity, the system provides an opportunity for performance related discussions that could include; setting goals and work objectives for the employee, aligning individual and organizational goals, identifying training and development needs, and discussing career progression opportunities. That an individual’s performance in a job is improved by having definite goals, feedback about their performance and complemented by an appropriate reward system However, dispute is inherent and endemic in any organization because of the different goals and objectives employers pursue which are constantly changing. It is a dynamic process that usually involves two or more parties to each other and could be covert or overt. Dispute is decisive or crucial in the course of human relation whose outcome determines whether good or bad consequences will result. Industrial dispute could be organized, that is representing a conscious strategy on the part of the actor to change a situation defined as the source of discontent. In contrast, unorganized form of industrial dispute is usually individual phenomena neither recognized by the individual as an expression of dispute as such nor designed to change the identified source of discontent. Dispute can be destructive but in some other times constructive. When dispute takes attention away from other important activities or undermines employees’ morale and eventually leads to irresponsible and damaging behaviour is considered destructive. Industrial dispute is said to have started as soon as the employer-employee relationship emerges in the course of economic development. In practice, the employment relationship is based on the notion of exchange between the employer and the employee and focus on the area of work performance and it argued, therefore that industrial dispute is caused by the different values attached to what is being exchanged at the work place. Of all the resources used in an organization, to accomplish the set goals and objectives, human resource is the most, difficult to handle because of the unpredictable and complex nature of man. In every organization however, where different people of different attitudes, interests and desires work together the tendency is high that they are often at loggerheads. Although, it is understandable to the management and the staff of an organization that the two arms need to work harmoniously together for the attainment of the organizational goals, this expectation however, is not always fulfilled in practice, because the departments, units or groups share scarce resources or work activities and have different status, goals, roles values and perceptions.(Ojeleye , 2007) At any rate, industrial disputes unavoidably occur on daily basis within many organizations across the globe. On many occasions dispute results from differences in facts - this type of dispute centres on what is or what is not; methods - this stems from disagreement about procedures and about how something is done; goals and objectives is the disagreement about what is to be accomplished; the values - this dispute stems from disagreement about what is right or wrong. The other causes of dispute result from the use of power or position lack of time, money, or other resources. While many people try to avoid dispute at all cost, dispute is simply inevitable in the workplace. Dispute is a normal part of everyday life on the job or off the job. In fact, dispute is an inherent feature of organization (Mullins, 1999). Undoubtedly, dispute results in reduced employee work performance because of lack of teamwork. However, there is a need to certify that this is so, hence, the work performance measurement system was evolved (Crouch, 1989). However, the instance of industrial dispute whenever or wherever it happens tends to have debilitating psychological effects on the workers involved; dispute usually have negative impact on the morale of employees. A sudden outbreak of dispute changes work performance and/or personal behaviour that could signal the beginning of problems at the workplace. The change can be due to poor communication between manager and employee repeated tardiness, absenteeism and misconduct. Furthermore, dispute create bad feelings, resentment and hostility that would not enable the employees to work together as a team and a resultant decline in work performance, low productivity, loss of customers, high labour turnover, adverse effects on the goodwill of the organization and complete collapse of the organization. To avoid the aforementioned implications, it is very necessary to implement a work performance measurement system, which will serve as an indicator for an increase or decline in employee work performance. Nevertheless, when dispute occurs within an organization, how it is resolved before it assumes a tragic proportion and adversely affects the productivity of employees is the challenge for many employers. It is also possible to manage a dispute without resolution, in forms of avoidance, without resolving the underlying dispute by getting the parties to recognize that they disagree but that no further action could be taken at that time (Waal & Frans, 2012). Industrial dispute endangers the work environment and makes it uncomfortable for the employees to perform to satisfaction. In virtually all organizations where people of different behaviours, interests and values must work together as a team, dispute occurrence is realistically inevitable and when it becomes too frequent and unabated, the overall employee work performance, in terms of productivity begins to plummet and all progress within the organization becomes so fragile. By and large, the inevitability of industrial strife and its concomitant effects on the work performance of the employees’ vis-à-vis the general output of the organization makes the study of this nature vitally important.

1.2 STATEMENT OF PROBLEM

According to the common view most people are uncomfortable with dispute; however, dispute has both positive and negative impact on workers’ performance. Dispute can lead to organization’s less than optimal performance, or, in the worst case, lead to workplace violent behavior. Surprisingly, a moderate amount of dispute can actually be a healthy (and necessary) part of organization life (Amason, 1996). Distinguishing the effects of functional and dysfunctional dispute on strategic decision, If anyone needs to understand its root causes, consequences, and tools to help managing it. The impact of too much or too little dispute can disrupt performance. The goal is to hold dispute levels in the middle of this range. While it might seem strange to want a particular level of dispute, a medium level of task-related dispute is often viewed as optimal, because it represents a situation in which a healthy debate of ideas takes place (Bauer and Erdogan, 2010). In other words, there should be a balance and dispute resolution mechanism in place so as to maintain the optimal level of performance and efficiency. In the workplace, dispute and implementation of dispute management substantially influence individual, group, and organizational effectiveness (De Dreu and Van Vianen, 2001). At the individual level, one key consistency across various theories has been the distinction of whether or not dispute is managed in an agreeable and cooperative or disagreeable and competitive manner (Rahim, 1983). De Dreu and Van Vianen (2001) found that when there is an avoidant dispute management culture, this increases the levels of both team functioning and team effectiveness. In contrast to both the dominant and avoidant dispute management cultures, a collaborative dispute management culture is consistently associated with positive workplace performance and group level outcomes (Pruitt and Carnivale, 1993). Previous researchers have not covered thoroughly the impact of the industrial dispute management culture in the workplace on individual level outcomes such as workers performance, more specifically in private organizations. Worker performance is one of the most important and significant factors in the achievement of organizational goal. Greater performance has been identified as being associated with a more positive attitude towards the job and with positive workplace outcomes such as increased organization commitment and decreased workers turnover rate (Brown and Peterson, 1993) (Wright and Bonett, 2007). Therefore, this research has investigated on impact of industrial dispute on workers’ performance in private organizations in Maiduguri metropolitan centre.

1.3 AIMS AND OBJECTIVES OF THE STUDY

The major aim of the study is to examine impact of industrial dispute on workers performance in private organizations in maiduguri metropolitan centre, borno state.  Other specific objectives of the study include;

1. To examine the impact of industrial dispute on workers attendance.
2. To examine the effect of industrial dispute on workers problem solving skills.
3. To assess the impact of industrial dispute on workers dependability.
4. To ascertain the relationship between industrial dispute and workers ability to meet established goals and deadlines.
5. To proffer solution to the problems of industrial dispute in private organizations.
   1. RESEARCH QUESTIONS

1. What is the impact of industrial dispute on workers attendance?
2. What is the effect of industrial dispute on workers problem solving skills?
3. What is the impact of industrial dispute on workers dependability?
4. What is the relationship between industrial dispute and workers ability to meet established goals and deadlines?
5. What are the solutions to the problems of industrial dispute in private organizations?

1.5 RESEARCH HYPOTHESES

Hypothesis 1

H0: There is no significant impact of industrial dispute on workers dependability.

H1: There is a significant impact of industrial dispute on workers dependability.

Hypothesis 2

H0: There is no significant relationship between industrial dispute and workers ability to meet established goals and deadlines.

H1: There is a significant relationship between industrial dispute and workers ability to meet established goals and deadlines.

1. SIGNIFICANCE OF THE STUDY

The study would be of benefit towards development and adoption  of better dispute resolution approaches by the managements of private organizations so as to improve workers performance and the overall performance of the organization at large. The study would also be of immense benefit to students, researchers and scholars who are interested in developing further studies on the subject matter.

1. SCOPE AND LIMITATION OF THE STUDY

The study is restricted to impact of industrial dispute on workers performance in private organizations in Maiduguri metropolitan center, Borno state.

1. LIMITATION OF THE 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. DEFINITION OF TERMS

Dispute: means difference or disagreement of strife over some issues between the parties. In other words, the test of industrial dispute is that the interest of all or majority of workmen is involved in it.

Industrial dispute: According to Section 2 (k) of the Industrial Disputes Act, 1947, the term ‘industrial dispute’ means “any dispute or difference between employers and employers or between employers and workmen, or between workmen and workmen, which is connected with the employment or non- employment or the terms of employment and conditions of employment of any person”.

Private organization: refers to any person, partnership, corporation, association or agency which is not a public body that is operated for profit.

Workers performance: The job related activities expected of a worker and how well those activities were executed. Many business personnel directors assess the employee performance of each staff member on an annual or quarterly basis in order to help them identify suggested areas for improvement.