Conflict Management An Impetus For Effective Performance in An Organization

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EFFECTS OF CONFLICT MANAGEMENT ON ORGANISATIONAL

PERFORMANCE.

(A study of Toyota Nigeria Limited)

BY

SERIKI OLUWADAMILOLA BABATUNDE

17010301013

A PROJECT SUBMITTED TO THE DEPARTMENT OF BUSINESS


ADMINISTRATION (INDUSTRIAL RELATIONS AND PERSONNEL
MANAGEMENT) IN PARTIAL REQUIREMENT FOR THE AWARD OF BACHELOR
OF SCIENCE DEGREE (B.SC. HONS) IN BUSINESS ADMINISTRATION AT THE
COLLEGE OF HUMANITIES, MANAGEMENT AND SOCIAL SCIENCES.

MOUNTAIN TOP UNIVERSITY, MOWE, OGUN STATE

SEPTEMBER 2022

i
DECLARATION

I hereby declare that this submission is my own work under the supervision of Dr Babatunde
Olugbenga Oni towards the B.Sc of Industrial Relations and Personnel Management.

ii
DEDICATION

This research is dedicated to God Most High for his mercies and loving kindness, also to my loving
father, mother, my siblings, friends, and supervisor for being there, and serving as guides for me
through my stay in Mountain Top University.

iii
CERTIFICATION

This is to certify that this research project was carried out by SERIKI DAMILOLA
BABATUNDE, Matriculation Number 17010301013 at the Department of Industrial Relations
and Personnel Management, and Mountain Top University Ogun State, Nigeria under my
supervision.

_______________________

NAME OF SUPERVISOR SIGNATURE & DATE

DR BABATUNDE OLUGBENGA ONI

_______________________

NAME OF HEAD OF DEPARTMENT SIGNATURE & DATE

DR JAMES O. OJO

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ACKNOWLEDGEMENT

First and foremost, my gratitude goes to God Almighty, the gracious God who has spared my life
since the start of this Undergraduate program and has made its completion a reality.

I would like to thank Dr Olanipekun Ojo (HOD) and all my lecturers for their support towards the
completion of this project.

No research can be conducted without guidance and supervision, which is why it is more important
to recognize the exceptional, tireless, and motivating efforts of my supervisor Dr. Babatunde
Olugbenga Oni who helped, guided, and provided the best supervisory expertise throughout the
entire process of completing my project to ensure its success. May God continue to bless and
strengthen his efforts.

And I would like to also appreciate my parents Mr. and Mrs. Seriki for their financial, emotional
and spiritual supports throughout this period and would also be grateful to Mr. A.K.S Lasisi and
my sisters for all the supports provided from the beginning of my project. May God bless all your
efforts.

My sincere appreciation to my course mates for the unique experience gained from them.

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ABSTRACT

Conflict is a natural occurrence in most organizations that influences human relationships.


As a result of the employees' welfare, the presence of conflict has become a source of concern at
Toyota Nigeria Limited, Lagos. The study ascertains major causes of conflicts, to explain the types
of conflicts existing in the work organization and their management in relation to workers’ performance, it
assesses the effects of organizational conflict on performance of employees and to investigate the
effectiveness of leadership style on conflict management in Toyota Nigeria Limited.

The study is cross-sectional and uses a survey design. The study's population consists of 176
Toyota Nigeria Limited, Lagos employees. The study discovered that collaboration and avoidance
strategies have a significant positive effect on the performance of Toyota Nigeria Limited, Lagos,
while a compromise strategy has a negative significant impact on the organization's performance.
The study concluded that there is no single best strategy for managing conflict because conflict
management is dependent on the behavioral intentions of the parties involved, the time frame, and
the situation in which the organization finds itself. As a result, it was recommended that Toyota
Nigeria Limited's management emphasize the adoption of collaboration and avoidance strategies
in order to improve the organization's performance.

The findings will be used to improve operations and performance by investigating the most
appropriate conflict resolution mechanisms. This information will be used by Toyota Nigeria
Limited's management, board, and key stakeholders to understand the best way to handle conflict
while maintaining performance.

This study recommends that conflict management are inspired to design their firm in such a way
that will increase organizational performance in their organization and give room for full
involvement of their employee, Again, organisations are advised to put more that will encourage
their workers to come up with better ways to achieving and promoting organizational performance.
Every organization is advised to create a direct understanding and notion of the concept of
organizational performance to avoid conflict of interest among the employees and employer.

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TABLE OF CONTENTS

DECLARATION……………………………………………………………………………. ii

DEDICATION...........................................................................................................................iii

CERTIFICATION…………………........……………………………………………………iv

ACKNOWLEDGMENT…………..........……………………………………………………v

ABSTRACT………………………...................……………………………………………...vi

Chapter ONE............................................................................................................................................... 1
INTRODUCTION....................................................................................................................................... 1
1.1 BACKGROUND TO THE STUDY..................................................................................................... 1
1.2 STATEMENT OF PROBLEM ............................................................................................................ 4
1.3 OBJECTIVES OF THE STUDY ......................................................................................................... 5
1.4 RESEARCH QUESTIONS .................................................................................................................. 5
1.5 RESEARCH HYPOTHESES .............................................................................................................. 6
1.6 SIGNIFICANCE OF THE STUDY..................................................................................................... 6
1.7 PURPOSE OF THE STUDY ............................................................................................................... 6
1.8 SCOPE OF THE STUDY ..................................................................................................................... 7
1.9 LIMITATIONS OF THE STUDY....................................................................................................... 7
1.10 HISTORY OF TOYOTA ................................................................................................................... 7
1.11 DEFINITIONS OF TERMS .............................................................................................................. 9
CHAPTER TWO ...................................................................................................................................... 10
2.1 CONCEPTUAL FRAMEWORK ...................................................................................................... 10
2.1.1 SOURCES OF ORGANIZATIONAL CONFLICT ....................................................... 11
2.1.2 TYPES OF CONFLICTS IN ORGANIZATIONS ......................................................... 12
2.1.3 CAUSES OF CONFLICTS ............................................................................................... 14
2.1.4 Effects of Organizational Conflict .................................................................................. 15
2.1.5 IMPACT OF CONFLICT ON ORGANIZATIONAL PERFORMANCE. ................. 16
2.1.7 EFFECTIVE CONFLICT MANAGEMENT ON ORGANIZATIONAL
PERFORMANCE. ...................................................................................................................... 20
2.1.8 MANAGEMENT STYLES ............................................................................................... 21

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2.2 THEORETICAL FRAMEWORK .................................................................................................... 23
2.2.1 UNITARY THEORY......................................................................................................... 23
2.2.2 CONTINGENCY THEORY ............................................................................................. 24
2.2.3 CONFLICT THEORY ...................................................................................................... 24
2.3 EMPIRICAL REVIEW.................................................................................................................... 25
2.3.1 RESEARCH GAPS............................................................................................................ 28
2.3.2 GAP OF LITERATURE ................................................................................................... 29
CHAPTER THREE .................................................................................................................................. 33
3.4 SAMPLING SIZE DETERMINATION ........................................................................................... 33
3.5 METHOD OF DATA COLLECTION ............................................................................................. 34
3.8 VALIDITY OF INSTRUMENT ...................................................................................................... 34
CHAPTER FOUR..................................................................................................................................... 35
4.0 INTRODUCTION......................................................................................................................... 35
Table 4.1 Preliminary Survey Details ..................................................................................................... 35
Table 4.2. Demographic data of the Respondents. ................................................................................. 36
4.3. The cause of conflicts relative to output of the work organization ................................. 38
4.4: forms of industrial conflict and worker’s efficiency ....................................................................... 41
4.4.5: Workers are inefficient sometimes because of output restriction, thereby utilized to press
hold their demand from the management. ............................................................................................. 43
4.6: The Relationship Effectiveness of Leadership Style And Conflict Management. ......... 46
4.7 HYPOTHESES TESTING ............................................................................................................... 49
4.8 DISCUSSION OF THE FINDINGS.................................................................................................. 52
CHAPTER FIVE ...................................................................................................................................... 54
5.3 RECOMMENDATIONS .................................................................................................................... 56
5.4 SUGGESTION FOR FUTURE STUDY ........................................................................................... 57
REFERENCES. ......................................................................................................................................... 57
APPENDIX ................................................................................................................................................... 61

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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY


Conflict is a normal phenomenon in most organizations as long as human connections are
involved; as a result, the presence of conflict has become a source of concern as a consequence of
employee welfare. The term 'conflict' refers to a process that begins when one party feels that
another party has negatively affected or is about to negatively influence something that the first
party cares about. Conflict can arise between individuals, groups, and organizations, regardless of
age or gender, among those learning or working in an organization.

Employees with a diverse mix of education, gender, and age variances play a crucial role in
determining the organization's effectiveness in the workplace. As a result, not only have the
personnel been harmed, but so has the organization as a whole. Conflicts are unavoidable elements
of organized existence since the aims of various stakeholders, managers, for example and
employees, are frequently at odds (Adomi and Ojo, 2005). Conflict is unavoidable in any
organization because people strive for employment, resources, and power, recognition, and
security.

Organizational conflict can be defined as a disagreement that happens when the interests, aims, or
values of multiple persons or organizations are irreconcilable. This leads to a circumstance in
which they frustrate each other while attempting to attain their goals. Conflict emerges in
communities as a result as a result of a lack of independence, position, and resources Individuals
who appreciate their independence are more likely to resist the need for interdependence and, to a
lesser extent, group conformity. People engaging with each other may cause friction,
disagreements, or arguments as a result of genuine or imagined differences or incompatibilities,
rising to conflict.

Disputes in organizations can take numerous forms, such as interpersonal conflict, task conflict,
and process conflict, giving rise to a variety of conflict management systems (Budd & Colvin,
2013). Conflict circumstances have an impact on the overall efficacy of cooperative organizations
because they produce discord among organizational participants, which has a detrimental impact

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on organizational performance. This is because of the fact that valuable time and resources are
squandered during organizational conflicts. However, we must keep in mind that no organization
is immune to internal conflict because every organization is made up of different individuals with
diverse interests, aims, beliefs, and temperaments, and it is extremely difficult to reconcile these
divergences.

The attempt to control or regulate conflict using a variety of means is referred to as conflict
management. The internal processes employed by various authorities to resolve disagreement are
referred to as conflict management methods (Adeyemi and Ademilua, 2012). The Nigerian
government, on the other hand, has developed a number of strategies to assist organizations in
dispute resolution. However, the Nigerian government has developed a number of strategies to
assist organizations in dispute resolution. Some of these management techniques are available in
the provision of Labour/Employment Act, 1971; Workmen's Compensation Act, 2010, Trade
Dispute Amendment Decree, 1988, No 39 and Trade Dispute Act 18, 2004 which provided five
steps for legal management of conflict in organizations in the country (Akinwale, 2011).

Longe (2015) describes workplace conflict as a lack of good rapport that happens when the actual
or perceived needs, aims, interests, or values of the many members of the same do not align,
resulting in frustration as each tries to contribute to the firm's goals. A quarrel is considered
excellent when the parties debate it constructively and reach an acceptable resolution. Poorly
managed conflict heats up the environment, causing "dislocation of the entire group and
polarization, decreased productivity on job performance, psychological and physical injury,
emotional distress and inability to sleep, interference with problem activities, escalation of
differences into antagonistic position and malice, and increased hostility" (Akanji, 2005).

Conflict resolution creates a cooperative environment for encouraging opportunities and action
toward nonviolent, reconciliation, or core conflicting interests (Uchendu, Anijaobi and Odigwe,
2013). Conflict resolution is a critical component of corporate management. The goal of conflict
resolution is not to establish an ideal corporate environment, which is impossible to achieve due
to differences in human aspirations, etc. Conflict management, on the other hand, systematically
employs available conflict resolution strategies to construct an effective mechanism for conflict
management in corporate organizations. Although there may already be mechanisms and
procedures in place to deal with conflicts as they arise, some organizations with reactive

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management respond to the problem as it arises. Conflict is a natural component of organizational
life and can arise between individuals, between individuals and groups, or between groups. While
conflict is commonly regarded it can also be malfunctioning, constructive since it can cause a
problem to be presented from various angles. Conflict can have both beneficial and harmful
consequences. It can be beneficial when it fosters innovation, new perspectives on old problems,
the clarification of points of view, and the development of human capacity to deal with
interpersonal diversity. Conflict can be harmful when it produces resistance to change, creates
turmoil in organizational or interpersonal relationships, encourages distrust, creates a sense of
defeat, or increases the chasm of misunderstanding. Conflicts in organizations, whether organized
or unorganized, must be managed properly due to their repercussions on the organization.

In the organization context, performance is the ability to carry out the job well (Armstrong, 2006).
According to Lebans & Euske (2006), Performance is a set of financial and nonfinancial indicators
which offer information on the degree of achievement of objectives and results. According to Daft
(2000), organizational performance is defined as an organisation‘s ability to attain its goals by
using resources in an efficient and effective manner. As a result, it is evidence of the output
of an organization's members measured in terms of income, profit, growth, development, and
expansion. Similarly, organizational performance refers to an organization's capacity to achieve
goals such as high profit, high quality product, huge market share, strong financial results, and
survival at pre-determined levels time using relevant strategy for action. Different researchers
have different ways to measure performance. The different type of measurement that has been
applied has been classed as an objective or subjective. It was explained that an objective measure
is measuring the financial records while subjective measures used the managers’ perceptions
regarding the organization performance. Nevertheless, many studies suggest using subjective
measures due to the data for objective criteria could be inappropriate, misleading and difficult to
obtain. If the data are available, the data may not genuinely represent the actual organization
performance as the information may be manipulated. As a result, management has a duty to handle
conflict properly in order to improve organizational performance, because doing so will result in
better communication, time management, cooperation, and increased corporate productivity.

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1.2 STATEMENT OF PROBLEM
In recent years, there has been a surge in interest in dispute resolution. First, research has
sparked interest in conflict resolution strategies and approaches that may have previously required
court litigation. Second, Workplace legalization has increased, particularly in the areas of
occupational health and safety, discrimination, and harassment. Third, there has been a surge of
interest in the need for organizations to transition to high performance work systems. Most
businesses' performance has taken a comparatively nosedive trajectory as a result of frequent
organizational conflicts. Traditional workplace practices and systems, with their hierarchical
structures, strict divisions of labor, tightly defined positions, specific regulations, and limits on
employee involvement, managerial decision making, power, and control, are no longer sufficient
since they generate conflict. As a cornerstone of an effective high-performance workplace, the
high-performance workplace promotes conflict management. Low morale, low productivity,
distrust, high staff turnover, absenteeism, defects, high work discontent, and low commitment to
the organization are all counterproductive outcomes of these conflicts. The prevalence of conflict
is a subject of concern in Toyota Nigeria Limited, Lagos. The organisation is confronted with the
subject of negotiation of personnel incentives, usually at the end of the year.

The lingering issue regarding dispute between management and organization personnel, which
manifests as employees nursing grievances against management, a change in attitude or behavior,
a decrease in effort toward work, a physical confrontation between both parties, and a halt in
production activities as employees refuse to work. This has an impact on the efficacy and
performance of individual employees as well as the organization as a whole. Several studies on
conflict resolution have been conducted; however, the majority of these studies are qualitative in
character (Fatile & Adejuwon, 2011; Garcia, 2013; Kazimoto, 2013; Nwosu & Makinde, 2014;
Ebhote & Monday, 2015). They cannot be applied to all elements of organizations since conflict
resolution involves human motivations. While some empirical studies in this area were carried out
using some or all the major conflict management strategies on organisational performance (Ongori,
2009; Hotepo, Asokere, Abdulazeez, &Ajemunigbohun, 2010); Obasan, 2011; (Mughal & Khan,
2013); (Ajike, Akinlabi, Magaji & Sonubi, 2015); (Awan & Saeed, 2015) and Longe, 2015.
However, a full research of the impact of conflict management tactics such as collaboration,
compromise, and avoidance strategies on organizational performance has yet to be completed,
therefore the degree of this influence is unknown, and this study adds to closing that gap.

4
This study is being conducted against this backdrop in order to determine the effects of conflict
management on the performance of Toyota Nigeria Limited.

1.3 OBJECTIVES OF THE STUDY


The primary goal of this study is to investigate the effects of conflict resolution on Toyota Nigeria
Limited's organizational performance. The following are the study's particular objectives:

1. To ascertain major causes of conflicts in relation to output in Toyota Nigeria Limited.


2. To explain the types of conflicts existing in the work organization and their management
in relation to workers’ performance in Toyota Nigeria Limited.
3. To assess the effects of organizational conflict on performance of employees in Toyota
Nigeria Limited.
4. To investigate the effectiveness of leadership style on conflict management in Toyota
Nigeria Limited.

1.4 RESEARCH QUESTIONS


The research questions are as follows:

1.What are the major causes of conflicts in relation to output in Toyota Nigeria Limited?
2. What are the different types of conflicts and their management in relation to workers’ efficiency
in Toyota Nigeria Limited?
3) What are the effects of conflicts on performance of employees in Toyota Nigeria Limited?
4) How effective are the leadership styles in managing conflict in Toyota Nigeria Limited?

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1.5 RESEARCH HYPOTHESES
HO1: There is no significant relationship between the major causes of conflicts and output in
Toyota Nigeria Limited.

H02: There is no significant relationship between the types of conflicts and workers’ efficiency in
Toyota Nigeria Limited.

H03: There is no significant relationship between effects of conflict and performance of employees
in Toyota Nigeria Limited.

Ho4: There is no significant relationship between leadership style and conflicts management in
Toyota Nigeria Limited.

1.6 SIGNIFICANCE OF THE STUDY

The significance of this present study is to contribute to knowledge on how conflict management
can help in improving organizational performance. The knowledge gained will also be vital in
developing various conflict resolutions. It will help to develop various modes and training for
effective organizational performance. The study is of benefit to the general public as it provides
them with adequate information concerning the activities of the organization as it relates to conflict
management in the private sector. It will be especially beneficial in organizational performance of
the organization. This study is important in knowing the company’s conflict management
strategies which play a significant influence in shaping success and failure of the organization.
Again, workers would be able to devise outstanding methods of ensuring excellent performance
even in the event of a strike as a result of this research.

1.7 PURPOSE OF THE STUDY


The goal of this research is to determine the effects of conflicts on organizational performance in
Toyota Nigeria Limited (Head Office). Conflict management being the independent construct was
operationalized by the following dimensions: collaboration strategy, compromise strategy and
avoidance strategy; while the dependent variable was organizational performance.

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1.8 SCOPE OF THE STUDY
The scope of this study is limited to the effects between conflict management and organizational
performance in Toyota Nigeria Limited (Head Office). It has many departments that provide
services to their clients, and the repercussions of conflict must be managed and kept to a minimum.
The study was carried out on a cross-sectional basis and focus was on the conflict management
strategies that contributed to organisational performance.
This is due to the researcher’s limited time and financial resources. Also, some managers’
reluctance to use their organization for research. Despite these limitations, the study will examine
all available data in order to meet its objectives.

1.9 LIMITATIONS OF THE STUDY


The study is cross-sectional in nature which captures the effect of conflict management on the
organisational performance of Toyota Nigeria Limited, Lagos at a point in time. Thus, the study
cannot prove causal relationship on a longitudinal basis and is limited in the area of sample size
which may not give a comprehensive view on the effect of conflict management on organisational
performance. Therefore, there is need to conduct a comprehensive study with more sample size to
make concrete conclusions on the management of conflict

1.10 HISTORY OF TOYOTA


Toyota made its initial appearance in Nigeria in 1965. The number of Toyota distributors has
increased to five by 1976.

Toyota Motor Corporation, Japan (TMC) recruited two additional distributors ten years later due
to poor performance by some of the appointed distributors. At the time, the country was
undergoing economic transformation, which prompted the ruling government to implement an
economic Structural Adjustment Program (SAP) to stabilize the system. This resulted in significant
changes in the Nigerian corporate environment, which the vehicle industry was not immune to. By
1995, four distributors; which included Elizade Nigeria Limited were the only surviving
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distributors for Toyota Motor Corporation, Japan. Toyota Motor Corporation, Japan, decided to
centralize its activities in Nigeria by designating Toyota (Nigeria) Limited as its only distributor
for the sake of convenience of business processes and efficiency.

This prepared the door for Toyota (Nigeria) Limited (TNL) to begin operations as Toyota Motor
Corporation's exclusive distributor in Nigeria in 1996. Toyota had to fight for acceptance in
Nigeria in its early days, especially in the face of heavy competition from established brands at the
time.

For almost two decades, the firm has been the exclusive franchise owner of the Toyota brand in
Nigeria, continually maintaining the brand's top position in the Nigerian vehicle sector. This
incredible success story can be attributed to the board of directors' originality and resourcefulness
under the untiring Chairmanship of Chief Michael Ade Ojo OON. His vision, industry, and
unwavering dedication to the brand over the years set the ground for Toyota's adoption in Nigeria.
ELIZADE is the brainchild of Chief Michael Ade Ojo.

The relationship that gave rise to Elizade began with Chief Ade.Ojo and his late wife, Mrs.
Elizabeth Wuraola Ojo, when they met as students at the University of Nigeria, Nsukka in the early
1960s. Chief Ade.Ojo, who was a pioneer student of Firm Administration at the time, had sworn
to build and run his own business within the first ten years of his working life. (He completed the
promise in six years.) The name, ELIZADE – coined from Elizabeth his wife’s first name and
‘Ade’ his own middle name instantly struck him as a viable company name.

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1.11 DEFINITIONS OF TERMS

The following management terms are used in this study:

 Conflict: A collision between individuals caused by a difference in thought process,


attitudes, understanding, interests, needs, and, in certain cases, perceptions. A
disagreement can alter a relationship.
 Conflict management: Is the process of reducing conflict's negative features while
increasing the positive aspects of conflict. The goal of conflict resolution is to improve
learning and group outcomes, such as organizational effectiveness or performance.
 Interpersonal conflict: It refers to any type of conflict involving at least two people in any
setting.
 Management: The coordination and administration of tasks in order to achieve a goal; it
can also refer to the seniority structure of employees inside an organization.
 Organization: It is the process of identifying and grouping work to be performed, defining
and delegating responsibility and authority and establishing relationships for the purpose
of enabling people to work most effectively together in accomplishing objectives.
 Performance: It is the execution of an action. It is also defined as the action or process of
carrying out or accomplishing an action, task or function.
 Process Conflict: means the disagreement on the procedures or methods that the team or
group should employ to complete its tasks. It happens when procedures, policies, and
strategies clash. It is a conflict regarding the way in which a task should be completed,
including the actual process and allocation of resources for the task.
 Task conflict: It is a workplace disagreement over the best way to accomplish work tasks.
It might be a disagreement over organizational policies and procedures, resource
distribution, or the technique or methods of performing a task.

9
CHAPTER TWO
LITERATURE REVIEW

This section examines existing literature on conflict management in the context of Toyota Nigeria
Limited's organizational performance. It starts by examining concept of conflicts, its causes and
its effects on organizational performance, it also explains the signs the organization should work
on.

2.1 CONCEPTUAL FRAMEWORK


MEANING OF ORGANIZATIONAL CONFLICT

Conflict is viewed as an effect of behavior, which is an essential component of human life. Dunlop
(2002) defines conflict as a disagreement between two or more parties try to make the other accept
its view or position. According to Ugbaja (2002), organizational conflict is any individual or group
dispute that emerges in the workplace and generates discord within a group of workers or between
an individual and management. According to Sinclair (2005), conflict is defined as a disagreement
between employees and their bosses. One key objective of management is to establish an
atmosphere in which individuals and groups of people may work together to achieve their
individual and organizational goals. However, one recurring issue in organizations is that
individuals and work groups struggle for limited resources, authority, status, and so on to the point
where their competition disrupts (or even enhances) cooperative endeavors. These competitions
(bad or good) are generally referred to as conflicts. Conflicts exist whenever an action by one party
is perceived as preventing or interfering with the goals, needs, or actions of another party. Conflict
can arise over a multiple of organisational experiences, such as incompatible goals, differences in
the interpretation of facts, negative feelings, differences of values and philosophies, or disputes
over shared resources. As defined above conflict tends to be associated with negative features and
situations which give rise to inefficiency, ineffectiveness or dysfunctional consequences. But in
some cases, it can actually stimulate creative problem solving and improve the situation for all
parties involved Nwatu (2004) remarks that in all organizations, employees and employers have
common interests in getting work done. What constitutes the work, how the work should be done
and the price of labour services in the price of labour services in the work process constitute areas
where the interests of the two parties vary. It is therefore essential to put in place machineries for

10
effective management of conflicts naturally resulting from their common and opposing interests.
Conflict is perceived as any act or situation resulting from disagreement, incompatibility or
opposition between project participants within their contractual obligations, whereby such
disagreements, incompatibility or opposition have not matured into a dispute requiring
intervention of a third party. Rahim (2011) defines conflict as an interactive process manifested in
incompatibility, disagreement, or dissonance within or between social entities (individual, group
and organisations) and opined that conflict may occur when:
•A party is forced to participate in an activity that is contrary to his or her wants or interests.

• One party has behavioral preferences that are incompatible with another person's implementation
of his or her preferences.

• A party desires a mutually desirable resource that is in short supply, such that everyone's desires
may not be entirely realized.

• One party has attitudes, values, skills, and objectives that are important in driving his or her
conduct but are considered to be exclusive of the other party's attitudes, values, skills, and goals
(s).

• In the performance of functions or activities, two parties are interdependent.

2.1.1 SOURCES OF ORGANIZATIONAL CONFLICT


Businesses today operate in a highly volatile environment, and the causes of organizational conflict
vary according to the business. Whether we like it or not, whether conflicts inside an organization
are viewed as good or undesirable, the truth remains that conflict exists and is common culture.
When people interact in companies, their varied values and situations generate a tense connection.
The key is to identify the source within an organization and act accordingly.

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2.1.2 TYPES OF CONFLICTS IN ORGANIZATIONS

There are two types of conflict in organizations.


Individual disputes (which might emerge when one person is dissatisfied) and group conflicts
(which may originate from an individual employee or many result from a disagreement between
the union and management).
Individual conflict happens when an employee believes that he has been mistreated or denied
something to which he is legally entitled, or that his rights have been violated. This could be due
to an unfair disciplinary action taken against the employee, a lack of advancement chances for
him, or the failure to receive an annual increment, among other things. This conflict, if not properly
investigated, may have negative consequences for the employee in question. On the other hand,
collective conflict arises either from misinterpretation of collective agreement or non-
implementation of the whole or parts of the agreement. It may also result from break down of
collective bargaining.
A large number of conflicts that occur in organizations may be those concerning
situations not governed by rules. Such conflicts are primarily the result of individual workers, and
may be the consequence of an alleged ill-treatment of workers by his boss or the result of some
claimed right.
Chandan (2005) distinguishes between five types of conflicts which occur within an organization.
These include the following;
i. Intra-personal conflict
ii. Inter-personal conflict
iii. Personal-group conflict
iv. Inter-group conflict
v. Inter-organizational conflict

 Intra-personal
Accordingly, intra-personal conflict occurs within an individual which results from conflict
between an individual’s goals and the values expected of him. The circumstance creates a

12
tension in the individual as he tries to satisfy both his personal interest and what people expects
from him. Nwatu (2004) exemplifies this type of conflict with a bank cashier who is expected to
remain polite to a customer in the face of high level of provocation by the customer just to
maintain good relations with the customer.

 Inter-personal conflict
It occurs due to disagreements between individuals over the goals of an organization which they
are left to decide for themselves. Their respective desires for organization may conflict resulting
in disagreements it is based on opinions rather than on facts. Such competition also results from
competition among individual workers arising from limited vacancies and opportunities for
personnel development and promotion in the organization.

 Personal-group conflict
It is defined as a group of two or more people acting independently but in unified manner towards
achieving a common goal and in the process they share common concern, values or ideologies.
Individual members are expected to adhere strictly the group’s norms, when an individual
member’s behaviour is not in agreement with the group’s norms and values.

 Inter-group conflict
This type of conflict occurs when there is disagreement between groups, departments, sections or
units in an organization over established norms and values. Chandan (2005) observes that such
conflicts are not personal in nature because they arise from factors inherent in the organizations
structure e.g. when tasks are properly defined, they cause conflict.

 Organizational conflict
These types of conflicts exist among organizations. Such conflict
arises when the policies of one organization causes one organization
causes disaffection among management or employees of other organization.

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2.1.3 CAUSES OF CONFLICTS
Several factors have been identified as causes of conflicts in organizations.
These include;

 Organizational policies and objectives


Organizational policies and objectives are always conflict prone areas in
corporate organizations. Organizational goals are always task-oriented and not always welfare-
oriented. For instance, the policy of profit plough back leaves little fund for improvement of
workers‟ welfare.

 Individual goals and objectives


Individual employees have personal goals while working in the organization. In fact, the essence
of taking up a job in the organization is to have a means of attaining personal goals.

 Management style
This can also be referred to as leadership style or employer employee or superior-sub-ordinate
relationship. Generally, workers resent
dictatorial or autocratic management or leadership style. It is observed that this leads to oppressive
or master-slave relationship in corporate organizations. Feeling of resentment and anger associated
with such relationship often leads to conflict.

 Poor communication
Communication is the interchange of thoughts and information or knowledge between individuals.
Through communication, management information employees about decisions taken on the
workers‟ welfare and the workers inform
management about their needs and problems. Thus, communication enhances
interpersonal relationships in the organization and fosters understanding among
everybody in the organization.

14
 Nature of assignments
The nature of tasks undertaken by workers could be a source of conflict.
Some tasks are easy and do not stress the individuals to perform. Others
are very difficult and stressful to perform. It is observed that difficult and stressful tasks are a
serious factor that causes conflicts in organizations especially where the principle of job rotation
dose not obtain, such jobs give workers frustrations.

2.1.4 Effects of Organizational Conflict


 Negative outcomes

According to one point of view, organizational disagreement has negative consequences. Conflicts
increase stress, which decreases worker satisfaction. This diminished satisfaction can lead to
increases in absenteeism and turn over. Conflict can also undermine trust in bosses and coworkers,
slowing or stopping project development. The accumulation of internal negative repercussions,
such as lost trust and decreased progress, can have a detrimental impact on client satisfaction as a
result of missed deadlines and lower job quality.

 Sub optimization
It may occur when contending parties engage in intense dispute. When competing parties
pursue their own interests excessively, the organization's aims are jeopardized. Instead of
cooperating to attain the organization's goals, competing parties engaged in unnecessary
feuds that resulted in superiority contests. Goals are distorted when sections begin to
undermine each other's efforts.
 Waste of time and resources

The business may loss prized time and resources at times of conflict. Instead of concentrating on
meeting their objectives, employees waste time on troublesome issues. Misuse of business
materials and funds in quite widespread when conflicting parties engage in “warfare.” Disputes,
stress and emotional confrontations reduce the workers’ productivity, and eventually, the
profitability of the business.

15
 Positive possibilities

Organizational disagreement, on the other hand, might be viewed as an opportunity for beneficial
reform. The utilization of efficient communication is central to this point of view. Conflicts within
organizations arise for a purpose. By recognizing the presence of the problem and determining its
source, business executives open the way to innovative solutions. Recognizing and seeking
solutions to organizational issues can defuse them and bring people into closer relationships with
the company. It can also foster an adaptive company that can deal effectively with the rapid
changes that modern business faces.

2.1.5 IMPACT OF CONFLICT ON ORGANIZATIONAL PERFORMANCE.


Chandan (2005) said that where they not brought under control in good time, conflicts
could work against the achievement of organizational goals. Individual and group responses in
conflict situations could range from sabotage, slowing down the pace of work, over-load to lack
of cooperation. More importantly, targets and objectives are achieved by groups and individuals
and as such, more critical the conflict is to the core operations of the organization and the higher
the position in hierarchy of persons in conflict situation, the more devastating the impact of such
conflict situations. This is because as conflict rages on individual workers become more aggrieved,
less committed to work, frustrated, unmotivated and less productive, these lead to levity, loss of
time, low productivity and output.
McDaniel (2001) supports this by stating that the problems of organizational conflict is that if it
not properly managed, it hampers productivity, lowers moral, causes more and continued conflict
and breeds indiscipline and misconduct. These hamper productivity, profitability and performance
of the organization. The bad consequences of organizational conflict make it imperative for
management to ensure that conflicts are promptly resolved as they occur.
Organizational performance has suffered as a result of both a definition and a conceptual issue,
cited in Henry, (2009) stated:
That organizational performance, as a notion in modern management, suffered from conceptual
clarity issues in a number of domains. The first was the definition area, and the second was the
measuring area. The terms performance and productivity were occasionally used interchangeably.
Productivity was a ratio that represented the amount of work done in a given length of time.

16
2.1.6 CONFLICT MANAGEMENT STRATEGIES AND STYLES

Having defined causes, importance and effects of conflicts, one is expected to start solving them.
In order to do so, managers must have a clearly defined strategy for stimulating conflicts. In
addition, strategy must be followed by an adequate conflict management style. Managers can
follow three strategies for solving conflicts (Petkovic,2008 cited in Spaho (2013):

 Strategy of negotiation- this is the most common strategy of solving conflicts and it is
successful when the interests of opposite sides are partly common and partly different. The
negotiation is a process, in which different tactics can be applied. Those include:
 Face -to –Face tactic- mutual confidence as a foundation for negotiation can be established
by using this tactic.
 Persuading tactic- This strategy entails employing various ways and approaches to win
over partners and get a better negotiation position.
 Deceitfulness tactic- This strategy is based on presenting fake data and reasoning. Its
success is determined by how well the negotiation parties know one other and whether
deception is successful.
 Treat tactic- this tactic is based on deterrence from the side which holds a better position,
or has more power. The stronger side presents consequences to the weaker, if it doesn’t
accept the proposed solution.
 Promise tactic- this tactic is also based on having a better position and more power, with
the stronger side persuading the weaker that it will keep its promise.
 Strategy of a superior goal- one of the best ways for solving conflict situation is to define
a superior goal. The point of this strategy is to define a goal above the individual goals,
causing the conflict.
 Strategy of third party intervention- If a negotiating tactic fails to produce outcomes, a
third-party intervention strategy should be used. In this case, management employs an
outside consultant to tackle the problem. The consultant can be a mediator, whose job it is
to advise conflicting parties on how to solve the problem, or an arbitrator, whose job it is
to impose a solution. According to practical experience, the last technique is the least
adopted. The other two techniques, on the other hand, must be managed by first-line
managers because it is their responsibility to resolve problems. If they are unable or

17
unwilling to resolve the disagreement, upper-level management must do so. Practical
experience shows that the last strategy is least used.

On the other hand, the other two strategies must be under control of first line managers,
because it is their task to solve conflicts. If they cannot, or do not want to solve the conflict,
this must be done by upper-level managers. Managers can utilize one of five conflict
management strategies, as depicted in Figure 5 (Fox, 2006), depending on the intensity of the
disagreement and their concern for others:

• Integrating: which this technique presumes attitude confrontation, mutual recognition of


the problem, and proposal of a viable solution. This technique is suited for difficult situations
that are not always clear. This approach is effective in the long run. It is not, however,
appropriate for conflicts arising from different values. Despite the benefits of this technique,
managers should be aware that it is time-consuming.
• Obliging: This style assumes reduction of differences and focusing on common interests. Its
advantage is encouragement of cooperation, but it does not solve the cause of the problem.
This style is not appropriate for escalating problems.
• Dominating: This style is frequent among persons who are more concerned with their
personal interests than with collective ones. Managers use this strategy to compel staff to obey.
This method is excellent when controversial working solutions must be implemented, when
time is of the essence, and when dealing with minor concerns. It does not take long to adopt,
but it is associated with employee criticism and resistance.
• Avoiding: This is passive style, characterized by distancing from problems and hiding them.
It is appropriate for trivial problems, rather than for difficult and escalating problems, as it
cannot solve the essence of the problem.
• Compromising: This style requires achieving of balance between personal and common
interests. All participants must change some attitudes through interventions, negotiations and
voting. This style is appropriate, when a balance of forces exists, but it should be avoided, if it
results in something negative such as a delay in production, etc. It leads to democratic solution,
but may prevent arriving to a creative solution of the problem.

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https://sourcesofinsight.com/wp-content/uploads/2011/03/image_thumb1.png

19
2.1.7 EFFECTIVE CONFLICT MANAGEMENT ON ORGANIZATIONAL
PERFORMANCE.
Effective conflict resolution requires that the complaints of the disputing parties be resolved or, at
the very least, minimized to the minimal minimum so that the offended parties feel relieved.
According to Ojo (2005), effective conflict management is critical for business organizations due
to its impact (direct or indirect) on corporate performance. It has been determined that effective
conflict management restores trust, confidence, calm, and harmony among employees, and that
the management consequence of this is that it increases management-employee relations on the
one hand, and employee-employee relations on the other. Ojo (2005), good conflict management
enables workers to attain their organizational goals, which may include status enhancement. This
is frequently related with advancement in position, earnings, and well-being. These are major
motivational factors. When these goals are met, workers are motivated to be more productive. As
a result, it has a positive impact on organizational performance.
Effective conflict management guarantees that production continues and operations do not halt.
The continuous work process that results from successful conflict management improves
organizational performance. According to Bryant (2000), good conflict management improves
morale, productivity, and profitability, all of which improve organizational success. The idea is
used to analyze the performance of a business that has the legal standing of an organization. To
provide context for the notion, a specific and satisfactory description of the context in which it is
utilized should be provided.
The traditional human resource management method to improving worker performance has
focused on evaluating past performance and allocating rewards. In other words, prizes were given
in exchange for performance. It is unavoidable that employee performance improvement will be
of direct interest solely to management. As a result, performance is stereotyped as being
uninteresting to the individual executing the work. Performance is a sort of compensation. Every
day, several tiny activities contribute to increase worker performance. It is vital that the
organization chooses the most effective performance measure for the organization as a whole as
well as for the individuals inside it. Single measures are unlikely to be robust enough.

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2.1.8 MANAGEMENT STYLES

AUTOCRATIC STYLES
The most controlling management style is autocratic management. All workplace decisions
are made by autocratic managers. Communication with this type of management is one-way, from
the top to the bottom. Employee ideas and contributions are neither encouraged nor
required. Roles and tasks are clearly defined, and employees are anticipated to follow these
directions without question while being checked and supervised on a regular basis. This style is
especially useful in hierarchical organizations where management makes all decisions based on
their position in the hierarchy. Employees who benefit from this management style include those
who are new, inexperienced, or unmotivated, as they require supervision and clear direction.
Managers can profit immensely from utilizing this strategy during times of crisis or extreme time
limitations.
Autocratic management has several advantages, including little uncertainty, well defined
responsibilities and objectives for personnel, and swift decision-making. The manager makes all
decisions, and employees are expected to comply, leaving little room for variation or confusion.
The decision-making speed is optimal and is not slowed by competing ideas or agendas. The
benefits of autocratic management include low uncertainty, clearly defined roles and expectations
for employees, and quick decision-making. The manager makes all decisions, and employees are
expected to comply, leaving little room for variation or confusion. The decision-making speed is
optimal and is not slowed by competing ideas or agendas.
One disadvantage is the lack of staff input, which results in ideas that are not encouraged or shared.
Job dissatisfaction, absenteeism, and employee turnover can all result from this. Because managers
make all decisions, employees are less likely to act autonomously and may become overly reliant
on the manager. Employees who do not want or require supervision may become resentful and
unhappy as a result. Too many disgruntled employees, combined with the separation of power that
comes with an autocratic management style, can lead to a "us vs. them" mentality.
DEMOCRATIC STYLES
The democratic management style entails managers making decisions with employee input
but ultimately making the final decision. This management style has many variations, including
consultative, participative, and collaborative styles. Employee ideas and contributions are

21
welcomed but not required. Top-down and bottom-up communication creates a cohesive team.
This style is adaptable and has the advantage of involving more diverse perspectives in decision
making. Employees feel valued when their opinions are considered before management makes
decisions, which increases motivation and productivity.
The time it takes to make a decision due to the gathering of ideas and opinions is one of the
disadvantages of democratic management. There is also the possibility of conflicting viewpoints
playing a role in decision making, which can make employees feel less valued if their input is not
considered, resulting in lower morale and productivity.

LAISSEZ-FAIRE STYLE
A French term that means "leave alone" refers to a managerial style that is diametrically
opposite to the autocratic manager. Because that is exactly what the laissez-faire management style
is all about. The laissez-faire management style involves little or no management intervention. The
employees do not require supervision and are highly skilled, allowing management to take a hands-
off approach and delegate problem solving and decision making to the employees. Delegative
styles and bossless environments or self-managed teams are examples of variations of this style.
This management style is most effective in organizations with flatter decentralized management.
Staff is often more skilled than management and is charged with setting the bar for innovation and
goals. The benefits of laissez faire include increased innovation and creativity as a result of expert
staff autonomy. Teachers, creatives, and designers are examples of this type of employee.
Disadvantages include the risk of low productivity by unsupervised employees and a loss of
direction due to a hands-off management style.

PERSUASIVE STYLE
Managers in this manner make the ultimate decision, but then utilize their persuasion
talents to persuade their staff that the right option was made. A persuasive management style can
explain the reasoning behind a decision and then encourages everyone to ask questions in order to
fully comprehend the reasoning. As a result, employees believe they are a trusted and valued
member of the organization. They become involved in key business decisions, which reduces
resentment and tension between management and employees. It is distinguished by strong,

22
centralized control that makes business decisions. Instead of enforcing "do this or else" policy
directives, persuasive managers take the time to invite inquiry.

2.2 THEORETICAL FRAMEWORK


2.2.1 UNITARY THEORY
The essence of the unitary theory is that the larger social system or the work enterprise as a sub
system of the larger social system is a unitary organization. The theory views the organization as
pointing towards a unified authority and loyalty structure. The theory emphasizes on common
values, interest and objectives. Those who believe in this perspective view organizational
participants as a team or family that emphasize on shared values, shared goals and common
destiny. Conflict is viewed as irrational/bad and the sacking of striking workers is preferred to
consultation or negotiation. Those holding to the perspective of unitary theory see managers and
employees as having a common interest in the survival of their organizations.
According to Rose (2008), trade unionism is outlawed and suppressed under the unitary
perspective because it is perceived as an illegitimate intrusion or infringement on management's
authority to manage; trade unions are regarded as a threat to management an outside intervention
into the corporation that competes with management in exchange for staff loyalty. As a result,
management is obligated to handle conflicts properly in order to improve organizational
performance because doing so will result in improved communication, time management,
cooperation, and overall organizational performance. A good conflict improves decision
outcomes, particularly task-related conflict, and group productivity by increasing quality through
constructive criticism and individuals playing the devil's advocate role, because most task-related
conflict allows for the exchange of ideas and helps employees perform better. Thus, organizational
stability may be maintained even when the leader is low in conflict management because workers
sometimes exhibit acceptance behaviour over the superior’s attitude thus reflecting apathy and
subjugation with little manifestation of aggression. The unitary theory tends towards
authoritarianism and paternalism, it is pro-management, biased and emphasizes
consensus and industrial peace. The underlying assumption of this view is that the organization
exists in perfect harmony and all conflict is unnecessary.

23
2.2.2 CONTINGENCY THEORY
The theory underpinning this study is the Contingency Theory. This theory is Fred Fiedler's
hypothesis was created in 1964.The assumption of the theory is that there is no universal or one
best way to manage an organisation and that an organisational/leadership style that is effective in
some situations may not be successful in others. According to the notion, a manager's effectiveness
is determined by the interaction of task, or relationship, incentive, and circumstance. In other
words, some conditions require different management approaches with a focus either on
motivating for task completion or maintaining harmonious group relations.
It can be summarized as an “it all depends” approach. The appropriate management approaches
and actions are determined by the situation. Managers with a contingency view use a flexible
approach, draw on a variety of theories and experiences, and evaluate many options as they solve
problems. Managers in the contingency perspective are tasked with assessing which managerial
style is most likely to be beneficial in a given situation. It acknowledges the critical importance of
individual manager performance in each particular situation, and the contingency method is
heavily reliant on the manager's expertise and judgment in a given organizational setting.
Contingency theory is however made of six independent constructs (strategy, task, technology,
organisational size, structure and culture) and two dependent constructs (efficiency and
organisational performance). The study investigates the aspect of strategy being the independent
variables and organisational performance being the dependent variable.

The decision to base the study on this theory was informed by the fact that there is no one best
strategy in resolving organisational conflict. A strategy is regarded appropriate for a conflict
scenario if its use results in successful problem formulation and/or resolution (Rahim, 2011).

2.2.3 CONFLICT THEORY


Conflict theory is synonymous with the pluralist frame of reference, which is also attributed to
conflict theory of Fox (1966). According to this theory, the company is a conglomeration of
sectional groups with distinct values, interests, and ambitions; hence, employees have values and
aspirations that differ from those of management, and these values and aspirations are always at
odds with those of management.

24
According to conflict theorists, conflict is an unavoidable, reasonable, functional, and normal
occurrence in organizations that is resolved by compromise and agreement or collective
bargaining. Trade unions, according to conflict theorists, are acceptable challenges to managerial
rules or prerogatives, and they promote competition and teamwork. This viewpoint regards trade
unions as legitimate representative organizations that allow groups of employees to exert influence
management decisions (Rose, 2008). Rose further states that the pluralist perspective would seem
to be much more relevant than the unitary perspective in the analysis of industrial relations in many
large unionized organizations and congruent with developments in contemporary society.

2.3 EMPIRICAL REVIEW


Conflict is inherent in all social life; it is an unavoidable aspect of life since it is tied to conditions
of scarcity, division of functions, power relations, and role differentiation. In the absence of a clear
definition of conflict, several researchers from other fields have proposed alternative definitions.
Psychology, behavioral sciences, sociology, communication, and anthropology have all
contributed to this list. Conflict can occur between individual, groups, organizations, and even
nations. As human being interacts in organizations, differing values and situations create tension.
Conflict is thereby viewed as a situation in which two or more individuals operating within a unit
appear to be incompatible.
Nwosu and Makinde (2014) carried out a research to understand the idea of conflict and how it
can be managed in private institutions. It was concluded that managers should employ the use of
conflict management strategies and also encourage negotiations to ensure peaceful working
environment so that organisational goals and objectives can be achieved. Enabling environment
should be created to promote healthy expression of opinions, feelings, values, needs and positions.
Management of organisations should be quick to identify situations that are pointers to suppressed
opinion or values that are predisposing factors to conflict in an organisation. However, the
strategies are not empirically tested, and cannot give a true generalisation of the study.
Ebhote and Monday (2015) conducted a qualitative research on conflict management, a managerial
approach towards improving organisational performance. It was concluded that managers on their
part having resolved the conflict efficiently can use the techniques or the approaches adopted to
resolve further conflict which might ensue the future. It is a qualitative study.

25
Ojo and Abolade (2014) evaluated the impact of conflict management on employee performance
at Nigeria Power Holding Company (PHCN). The survey research approach was used in this study,
and a total of 100 questionnaires were delivered to respondents by stratified sampling. The data
was analyzed using descriptive statistics, and hypotheses were tested using regression analysis and
correlation coefficient. The findings demonstrated that effective conflict management improves
employee performance in an organization and that the conflict management system of the company
influences employee performance in the organization. It was suggested that the organization begin
training and retraining its personnel in dispute resolution in order to create a conducive working
atmosphere for the employees, and that there be efficient and effective communication between
and among all types of employees in the organization. This will help to reduce conflict in the
workplace. The study looks at one component of organizational performance: employee
performance.
Ajike et al. (2015) used Access Bank Plc as a case study to investigate the effect of conflict
management on organizational performance in Nigerian banks. A total of eighty-one (81)
questionnaires were distributed to the bank's various employees in three branches located in Lagos
state. The association between conflict management and organizational performance was
investigated using descriptive and regression analysis with SPSS. The study discovered a
substantial positive association between conflict resolution and organizational performance.
Because the study used simple regression, the significant influence of conflict management tactics
was not demonstrated.
Longe (2015) investigated the impact of workforce conflict management on organisational
performance in Nigerian manufacturing firm, using 250 employees selected through stratified
random sampling techniques and analysed using descriptive and inferential statistics. The findings
revealed a significant positive relationship between integrated conflict management strategies
(collective bargaining, compromise, and accommodation) and organizational performance,
whereas non-integrated conflict management strategies (competition, domination, and avoidance)
had a statistically significant negative effect on organizational performance. The study did not take
into account the impact of cooperation strategy on organizational performance.
Mukolwe, Korir, Eliza, Milka, and Musyoki (2014) evaluated the impact of interpersonal conflict
on organizational performance in a sample of Kisii town hotels. The study used both descriptive
survey and explanatory research techniques and targeted 368 employees from carefully chosen

26
hotels. The data was analyzed using descriptive and inferential statistics, and the hypotheses were
tested using multiple regression. The results indicated that interpersonal conflict strategies,
relationship conflict and task conflict significantly affect organizational performance respectively,
while outcomes of interpersonal conflict do not significantly affect organizational performance.
In Schmuel’s (2014) investigative study on approaches to conflict resolution in Israel, he selected
150 personnel from different organisation using structured questionnaire and analyzed by simple
percentage and descriptive statistics. He found out that the outcomes produced by negotiated
settlement is better than those reached by litigation or political compromise.
Akkerman and Torenvlied (2014) conducted a research on the effects of industrial conflict between
and within organizations. The questionnaire was delivered in 300 copies using stratified random
sampling. 263 copies were returned. Pearson moment coefficient correlation was used to analyze
the data. The study found out that industrial conflict in form of strikes are found in two areas of
study: (1) collective bargaining outside the immediate scope of the focal organizations and (2)
work relations among employees within the organization that are affected by strikes.
Onyemachi (2014) examined the strategic Oil and Gas Industrial Conflict Management in Nigeria,
descriptive research methodology was adopted in this study. A five-point numerically scaled
Likert-type questionnaire was developed and distributed to the selected staff of the chosen
organizations. The research hypotheses were tested using the Pearson correlation coefficient. The
revelation showed that industrial conflict started with the emergence of trade unionism in 1912.
And concluded that industrial conflict has resulted in strikes, work stoppages and loss of man-
days.
Ekankumo and Koye (2014) carried out an empirical study on managing industrial dispute in the
Nigerian teaching hospitals. Their conclusion was that management will better achieve result if
they foster partnership through creation of Labour Management Committee (LMC), to meet
regularly to discuss and resolve issues or problems that may not be covered by collective
bargaining.
In summary of the findings in the review outlined above, studies on the effects of conflict
management showed a wide range of results depending on situations. Studies were of the view that
integrative conflict management strategies are positive and significantly related while the non-
integrative conflict management strategies are negative and insignificantly related.

27
2.3.1 RESEARCH GAPS
Organizational conflicts can arise from task dependency, status discrepancies, jurisdictional
ambiguity, communication issues, reliance on a common resource pool, a lack of consistent
performance standards, and individual variations. Conflict classification can be difficult and
varied. A state of disharmony induced by the actual or apparent antagonism of needs, values, and
interests among people working together is referred to as organizational conflict. The goal of this
research was to establish the association between corporate performance and good conflict
management. The study's research aims are to determine how conflict will be effectively handled;
to identify the key sources of conflict; to assess the impact of organizational conflict on
performance; and to determine which leadership style is most effective in managing conflict and
finally to make recommendations for the stated problem based on the finding’s from the study.

28
2.3.2 GAP OF LITERATURE

Author/Year Title Gap

Ekankumo and Koye (2014) An empirical study on managing Their conclusion was that
industrial dispute in the Nigerian management will be better
teaching hospitals. achieved result if they foster
partnership through creation
of Labour Management
Committee (LMC), to meet
regularly to discuss and
resolve issues or problems
that may not be covered by
collective bargaining.
Mukolwe, Korir, Eliza, The effect of interpersonal conflict The results indicated that
Milka, and Musyoki 2014) on organizational performance of interpersonal conflict
selected hotels in Kishi town. strategies, relationship
conflict and task conflict
significantly affect
organizational performance
respectively, while outcomes
of interpersonal conflict do
not significantly affect
organizational performance.

29
The concept of conflict and how it It was concluded that
Nwosu and Makinde (2014) can be managed in private managers should employ the
institutions. use of conflict management
strategies and also encourage
negotiations to ensure
peaceful working
environment so that
organisational goals and
objectives can be achieved.
The impact of conflict management It was recommended that
Ojo and Abolade (2014) on employees‟ performance in organisation should embark
Power Holding Company of Nigeria on training and retraining of
(PHCN). its employees in area of
conflict management so as to
create a conductive working
environment for the
employees and that there
should be efficient and
effective communication
between and among all
categories of the employees
in the organisation.
Onyemachi (2014) Strategic management of industrial Concluded that industrial
conflicts in Nigeria oil and Gas. conflict has resulted in
strikes, work stoppages and
loss of man-days.

30
Schmuel’s (2014) Approaches to conflict resolution in The study found out that
Israel. industrial conflict in form of
strikes are found in two areas
of study: (1) collective
bargaining outside the
immediate scope of the focal
organizations and (2) work
relations among employees
within the organization that
are affected by strikes.
The effect of conflict management The result found that there
Ajike et al. (2015) on organizational performance of was a significant positive
banks in Nigeria using Access Bank relationship between conflict
Plc as a case study. management and
organizational performance.

Ebhote and Monday (2015) Qualitative research on conflict It was concluded that
management. managers on their part having
resolved the conflict
efficiently can use the
techniques or the approaches
adopted to resolve further
conflict which might ensue
the future.

31
The impact of workforce conflict The result showed that there
management on organisational is significant positive
performance in Nigerian relationship between
Longe (2015) manufacturing firm. integrated conflict
management strategies
(collective bargaining,
compromise and
accommodation) and
organisational performance,
while non-integrated conflict
management strategies
(competition, domination and
avoidance) had a negative
statistical determinate effect
on organisational
performance.

32
CHAPTER THREE
RESEARCH METHODOLOGY

3.1 RESEARCH DESIGN

This study will use a survey research design as its research method. The current study entailed the
gathering of primary data from workers of Toyota Nigeria Limited(TNL) in Lagos state via the
administration of structured and non-structured questionnaires, the survey will be regarded
acceptable.

3.2 POPULATION OF THE STUDY

The participants in this study are all 315 employees of TOYOTA NIGERIA LIMITED in Lagos,
Nigeria. This population is made up of numerous employees’ cadres and operating units, which
the study will proportionate to ensure that it is representative.

3.3 SAMPLING TECHNIQUE

The sampling method that will be employed in this study is both stratified and simple random
sampling. The population of the study will be stratified in five major target groups based on the
existing department. Since the population size is very large to access, the researcher chooses to
use sampling method to conduct the research business process structure of the organization i.e.
Chief Executive, Marketing, Internal Audit, Human Resource Department and Public relations.

3.4 SAMPLING SIZE DETERMINATION


The sample size of the study is determined using the formula adopted from Toro Yamane’s (1967).
Thus, the formula used to calculate the sample size is:

n = N/ (1+N (e)2

Where:

n = sample size required

N = number of people in the population

e = allowable error (%)

n= 315/1+N(e)2
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n=315/1+315(0.0025)

n= 315/1.7875

n= 176

3.5 METHOD OF DATA COLLECTION


The study used primary source of data to examine the effect of conflict management on the
performance of Toyota Nigeria Limited. Data was collected using questionnaire which was self-
administered to the staff of Toyota Nigeria Limited.

3.6 TECHNIQUES OF DATA ANALYSIS

The data generated during investigation were analyzed using both descriptive and inferential
statistics. The descriptive statistics included the use of tables, frequency tables and percentage
distributions. The inferential statistics included the use of Regression Analysis and Product
Moment Correlation, to determine the parameter of the study and hypotheses testing.

3.7 RELIABILITY OF THE INSTRUMENT

It is concerned with how reliable the data collection instrument is, whether the questions in the
survey get the same form of answer. To enhance reliability of the data generated, efforts were
made to ensure that only the respondents who fall within the identified group were given the
questionnaire since they are sure they would give the relevant responses.

3.8 VALIDITY OF INSTRUMENT


The research instrument(questionnaire) adopted will be adequately checked and validated by the
supervisors, his contributions and corrections will be checked into the final draft of the research
instrument used.

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CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.0 INTRODUCTION
This chapter study focused on analysis of data collected. The resulting analysis will be
interpreted and presented. 176 copies of questionnaire were carefully administered to respondents
fur the purpose of this research, however, only 170 copies were correctly filled and returned at the
stipulated time to be used for analysis. This indicated 97.5% response rate. Thus, 170 copies of
questionnaire retrieved were analyzed and presented in tables with the aid of Software Package for
Social Science (SPSS) for easy comprehension.

TABLE 4.1 PRELIMINARY SURVEY DETAILS


Response Rate to Questionnaire Administered
S/No Questionnaires Frequency Percentage

1. Number of questionnaire sent for 176 100%


administration.
2. Questionnaire retrieved and used for the final 170 97.5%
analysis
3. Number of questionnaire not properly 3 1.25%
administered
4 Number of questionnaire not retrieved 3 1.25%

Source: Field Survey 2022

Table 4.1 above provides the response rate to questionnaire administered. A total of 176 copies of
questionnaire were administered to the Toyota Nigeria Limited according to the sample size
determination. The total number of questionnaire retrieved after administration was 170 as 3 copies
were not properly administered and 3 copies were not returned. This means 97.5% response rate
was achieved.

35
TABLE 4.2. DEMOGRAPHIC DATA OF THE RESPONDENTS.
The following shows the frequency counts and percentage of demographic data of the respondents
in terms of their gender, age range, educational qualification, working experience, department and
marital status.
Variable Frequency Percentage (%)
GENDER
Male 114 67.1
Female 56 32.9
TOTAL 170 100.0
AGE
Below 25 years 97 57.1
26 – 40 years 46 27.1
41 – 50 years 16 9.4
Above 50 years 11 6.5
TOTAL 170 100.0
EDUCATIONAL QUALIFICATION
SSCE 35 20.6
B.Sc 114 67.1
Masters’ Degree 21 12.4
TOTAL 170 100.0
EXPERIENCE
Below 5 years 91 53.5
6 – 10 years 48 28.2
11 – 15 years 21 12.4
16 – 20 years 10 5.9
21 years and above 91 53.5
TOTAL 170 100.0
DEPARTMENT
Administration 33 19.4
Account 95 55.9

36
Audit/I.T 5 2.9
Marketing 37 21.8
TOTAL 170 100.0
MARITAL STATUS
Single 103 60.6
Married 62 36.5
Divorced 5 2.9
TOTAL 170 100.0

Source: Field Survey 2022

Table 4.2 presented the demographic information of the respondents. As shown in table 4.2, 114
of the respondents representing 67.1% were males while 56 representing 32.9% of the respondents
were females. This simply indicates that majority of the employees of Toyota Nigeria Limited in
Lagos, Nigeria that participated in this study were males.
Results obtained in table 4.2 indicates that 97 representing 57.1% of the respondents were below
25 years, 46 representing 27.1% of the respondents were between the ages of 26 – 40 years, 16
representing 9.4% of the respondents were between the ages of 41 – 50 years and 11 representing
6.5% of the respondents were above 50 years respectively. This result reveals that majority of the
employees of Toyota Nigeria Limited in Lagos, Nigeria that participated in this study were below
20 years of age.
Regarding the educational qualification of the respondents, it was also revealed that 35 (20.6%)
were SSCE holders, 114 (67.1%) were B.Sc. holders and 21 (12.4%) were Master’s degree holders.
This indicates that majority of the respondents that participated in the study were B.Sc holders.
Based on the working experience of the respondents as indicated in table 4.2, 91 representing
53.5%, have below 5 years of experience, 48 (28.2%) have between 6 – 10 years of experience, 21
(12.4%) have between 11 – 15 years of experience, 10 representing 5.9% of the respondents were
between 16 – 20 years of experience and 91 (53.5%) were 21 years and above.
On the basis of department, 33 respondents representing 19.4% were in administrative department,
95 (55.9%) were in account department, 5 (2.9%) were in Audit/IT department and 37 (21.8%) of
the respondents were in marketing department. The result indicates that the respondents were in
account department.

37
Based on the marital status of the respondents as indicated in table 4.2, 103 (60.6%) were single,
62 (36.5%) were married and 5 (2.9%) were divorced. Having had about 61% of the entire sample,
the majority of the respondents that participated in the study were single.
4.3. The cause of conflicts relative to output of the work organization
This section presents the opinion of respondents in response to research question one that seeks to
evaluate whether an association exist between cause of conflicts and output of the work
organization
Table 4.3.1. Poor salaries and wages prevent maximum output from workers
Items Frequency Percentage (%)
Strongly Disagree 11 6.5
Disagree 5 2.9
Undecided 10 5.9
Agree 61 35.9
Strongly Agree 83 48.8
Total 170 100.0

Source: Field Survey 2022

Table 4.3.1 above presented the result of the frequency distribution in response to whether poor
salaries and wages prevent maximum output from workers. The table showed that majority of the
respondents 48.8% strongly agreed, a large percentage (35.9%) agreed, 6.5% disagreed, 5.9% were
undecided and 2.9% disagreed that poor salaries and wages prevent maximum output from
workers. Hence, majority strongly agreed that poor salaries and wages prevent maximum output
from workers.
Table 4.3.2: Unfair labour practices on the part of management prevent workers from
contributing maximally to the output of the organization
Items Frequency Percentage (%)
Strongly Disagree 5 2.9
Disagree 11 6.5
Undecided 5 2.9
Agree 65 38.2
Strongly Agree 84 49.5

38
Total 170 100.0

Source: Field Survey 2022

Table 4.3.2 above presented the result of the frequency distribution of staffs in response to the
statement unfair labour practices on the part of management prevent workers from contributing
maximally to the output of the organization. The table showed that majority of the respondents
(49.5%) strongly agreed, a large percentage (38.2%) also agreed, a few of the respondents (6.5%)
disagreed, 2.9% were undecided and 2.9% strongly disagreed. Hence, majority strongly agreed
that unfair labour practices on the part of management prevent workers from contributing
maximally to the output of the organization.
Table 4.3.3: Poor terms and condition of employment hinder efficiency of workers
Items Frequency Percentage (%)
Strongly Disagree 0 0
Disagree 5 2.9
Undecided 0 0
Agree 73 42.9
Strongly Agree 92 54.2
Total 170 100.0

Source: Field Survey 2022

Table 4.3.3 above presented the result of the frequency distribution of staffs in response to if the
statement poor terms and condition of employment hinder efficiency of workers. The table showed
that majority of the respondents 54.2% strongly agreed, 42.9% agreed and 2.9% disagreed that
poor terms and condition of employment hinder efficiency of workers. Hence, majority strongly
agreed that poor terms and condition of employment hinder efficiency of workers.

39
Table 4.3.4: Absence of incentives arising from good job performance prevent high
productivity from employees.
Items Frequency Percentage (%)
Strongly Disagree 6 3.5
Disagree 5 2.9
Undecided 41 24.1
Agree 80 47.1
Strongly Agree 38 22.4
Total 170 100.0

Source: Field Survey 2022

Table 4.3.4 above presented the result of the frequency distribution in response to whether absence
of incentives arising from good job performance prevent high productivity from employees. The
table showed that majority of the respondents 47.1% agreed, 22.4% strongly agreed, 24.1% were
undecided, 3.5% strongly disagreed and 2.9% disagreed that absence of incentives arising from
good job performance prevent high productivity from employees. Hence, majority strongly agreed
that absence of incentives arising from good job performance prevent high productivity from
employees.
Table 4.3.5: Lack of regular promotion of staff brings job dissatisfaction thereby causing low
output in the work organization
Items Frequency Percentage (%)
Strongly Disagree 5 2.9
Disagree 0 0
Undecided 11 6.5
Agree 94 55.3
Strongly Agree 60 35.3
Total 170 100.0

Source: Field Survey 2022

Table 4.3.5 above presented the result of the frequency distribution in response to whether lack of
regular promotion of staff brings job dissatisfaction thereby causing low output in the work
organization. The table showed that majority of the respondents 55.3% agreed, 35.3% strongly

40
agreed, 6.5% were undecided and 2.9% strongly disagreed that lack of regular promotion of staff
brings job dissatisfaction thereby causing low output in the work organization. Hence, majority
strongly agreed that lack of regular promotion of staff brings job dissatisfaction thereby causing
low output in the work organization.

4.4: FORMS OF INDUSTRIAL CONFLICT AND WORKER ’S EFFICIENCY


This section is intended to illustrate the association between forms of industrial conflict and
worker’s efficiency.
4.4.1: Strike is a major factor that hinders worker’s performance
Items Frequency Percentage (%)
Strongly Disagree 0 0
Disagree 11 6.5
Undecided 53 31.2
Agree 78 45.9
Strongly Agree 28 16.4
Total 170 100.0

Source: Field Survey 2022

Table 4.4.1 above presented the result of the frequency distribution in response to whether strike
is a major factor that hinders worker’s performance. The table showed that 45.9% agreed, 31.2%
were undecided, 16.4% strongly agreed and 6.5% disagreed that strike is a major factor that hinders
worker’s performance. Hence, majority of the respondents strongly agreed strike is a major factor
that hinders worker’s performance.
4.4.2: Sometimes workers engage in work to rule thereby reducing their productivity

Items Frequency Percentage (%)


Strongly Disagree 0 0
Disagree 12 7.1
Undecided 29 17.1
Agree 87 51.2
Strongly Agree 42 24.6
Total 170 100.0

41
Source: Field Survey 2022
Table 4.4.2 shows response on if sometimes workers engage in work to rule thereby reducing their
productivity. The response reveals that 51.2% agreed, 24.6% strongly agreed, 17.1% were
undecided and 7.1% disagreed that sometimes workers engage in work to rule thereby reducing
their productivity. This implies that sometimes workers engage in work to rule thereby reducing
their productivity.
4.4.3: Lock-outs are sometimes used by employees against workers during strike thereby
promoting low productivity.
Items Frequency Percentage (%)
Strongly Disagree 0 0
Disagree 0 0
Undecided 26 15.3
Agree 107 62.9
Strongly Agree 37 21.8
Total 170 100.0
Source: Field Survey 2022
Table 4.4.3 presented the results of respondents on the statement lock-outs are sometimes used by
employees against workers during strike thereby promoting low productivity. It was shown that
62.9% strongly agreed, 21.8% agreed and 15.3% were undecided that lock-outs are sometimes
used by employees against workers during strike thereby promoting low productivity. Hence,
majority of the respondents agreed that lock-outs are sometimes used by employees against
workers during strike thereby promoting low productivity.
4.4.4: Workers do engage in picketing to disrupt work arrangement that has brought
reduction in organizational productivity.
Items Frequency Percentage (%)
Strongly Disagree 6 3.5
Disagree 11 6.5
Undecided 27 15.9
Agree 94 55.3
Strongly Agree 32 18.8
Total 170 100.0

42
Source: Field Survey 2022
Table 4.4.4 presented the results of respondents on the statement workers do engage in picketing
to disrupt work arrangement that has brought reduction in organizational productivity. It was
indicated that 55.3% agreed, 18.8% strongly agreed, 15.9% were undecided, 6.5% disagreed and
3.5% strongly disagreed. Hence, from the response, it can be inferred that workers do engage in
picketing to disrupt work arrangement that has brought reduction in organizational productivity.

4.4.5: WORKERS ARE INEFFICIENT SOMETIMES BECAUSE OF OUTPUT RESTRICTION,


THEREBY UTILIZED TO PRESS HOLD THEIR DEMAND FROM THE MANAGEMENT .
Items Frequency Percentage (%)
Strongly Disagree 5 2.9
Disagree 0 0
Undecided 16 9.5
Agree 107 62.9
Strongly Agree 42 24.7
Total 170 100.0
Source: Field Survey 2022
Table 4.4.5 presented the results of respondents on the statement workers are inefficient sometimes
because of output restriction, thereby utilized to press hold their demand from the management. It
was indicated that 62.9% agreed, 24.7% strongly agreed, 9.5% were undecided and 2.9% strongly
disagreed. Hence, from the response, it can be inferred that workers are inefficient sometimes
because of output restriction, thereby utilized to press hold their demand from the management.

4.5: Link between effects of organization conflict and employees’ performance.


This section is reveals the connection between the effects of organization conflict and employees’
performance.
4.5.1: Low performance of employees can be attributed to series of industrial conflict
Items Frequency Percentage (%)
Strongly Disagree 10 5.9
Disagree 0 0
Undecided 5 2.9

43
Agree 86 50.6
Strongly Agree 69 40.6
Total 170 100.0
Source: Field Survey 2022
Table 4.5.1 above presented the result of the frequency distribution in response to whether low
performance of employees can be attributed to series of industrial conflict. The response indicated
that 50.6% which constitute the majority of the respondents agreed, 40.6% strongly agreed, 2.9%
were undecided and 5.9% strongly disagreed that low performance of employees can be attributed
to series of industrial conflict. Hence, majority strongly agreed that low performance of employees
can be attributed to series of industrial conflict.
4.5.2: Individual conflict in form of fraud has led to inefficiency on the part of many workers
Items Frequency Percentage (%)
Strongly Disagree 10 5.9
Disagree 6 3.5
Undecided 23 13.5
Agree 78 45.9
Strongly Agree 53 31.2
Total 170 100.0
Source: Field Survey 2022
Table 4.4.3 presented the results of respondents on the statement individual conflict in form of
fraud has led to inefficiency on the part of many workers. It was shown that 45.9% strongly agreed,
31.2% agreed, 13.5% were undecided, 5.9% strongly disagreed and 3.5% disagreed that individual
conflict in form of fraud has led to inefficiency on the part of many workers. Hence, majority of
the respondents agreed that individual conflict in form of fraud has led to inefficiency on the part
of many workers.

4.5.3: Daily reduction in organizational profit can be attributed to series of strike action by
workers

44
Source: Field Survey 2022
Table 4.5.3 presented the results of respondents on the statement daily reduction in organizational

Items Frequency Percentage (%)


Strongly Disagree 11 6.5
Disagree 5 2.9
Undecided 12 7.1
Agree 101 59.4
Strongly Agree 41 24.1
Total 170 100.0
profit can be attributed to series of strike action by workers. It revealed that 59.4% agreed, 24.1%
strongly agreed, 6.5% strongly disagreed, 7.1% were undecided and 2.9% disagreed that daily
reduction in organizational profit can be attributed to series of strike action by workers. Hence,
majority of the respondents strongly agreed that daily reduction in organizational profit can be
attributed to series of strike action by workers.
4.5.4: Many workers involve in never-on-sit syndrome thereby reducing the organizational
revenue

Items Frequency Percentage (%)


Strongly Disagree 6 3.6
Disagree 0 0
Undecided 64 37.6
Agree 49 28.8
Strongly Agree 51 30.0
Total 170 100.0
Source: Field Survey 2022
Table 4.5.4 presented the results of respondents on the statement many workers involve in never-
on-sit syndrome thereby reducing the organizational revenue. It revealed that 37.6% were
undecided, 30.0% strongly agreed, 28.8% agreed and 3.6% strongly disagreed. Hence, majority of
the respondents strongly agreed that many workers involve in never-on-sit syndrome thereby
reducing the organizational revenue.

45
4.5.5: Labour turnover is common in my workplace because of poor terms and conditions of
employment that has brought inefficiency of workers

Items Frequency Percentage (%)


Strongly Disagree 11 6.5
Disagree 0 0
Undecided 59 34.7
Agree 64 37.6
Strongly Agree 36 21.2
Total 170 100.0
Source: Field Survey 2022
Table 4.5.5 presented the results of respondents on the statement labour turnover is common in my
workplace because of poor terms and conditions of employment that has brought inefficiency of
workers. It revealed that 37.6% agreed, 34.7% were undecided, 21.2% 35.8% strongly agreed and
6.5% strongly disagreed. Hence, majority of the respondents agreed that labour turnover is
common in my workplace because of poor terms and conditions of employment that has brought
inefficiency of workers.

4.6: The Relationship Effectiveness of Leadership Style And Conflict Management.

This section is reveals how effectiveness of leadership style correlate conflict management.
4.6.1: Leaders get involved in autocratic style thereby making conflict resolution difficult.
Items Frequency Percentage (%)
Strongly Disagree 5 2.9
Disagree 5 2.9
Undecided 47 27.6
Agree 49 28.8
Strongly Agree 64 37.8
Total 170 100.0

Source: Field Survey 2022

Table 4.6.1 presented the results of respondents on the statement leaders get involved in autocratic
style thereby making conflict resolution difficult. It was shown that 37.6% strongly agreed, 28.8%

46
agreed, 27.6% were undecided, 2.9% disagreed and 2.9% strongly disagreed that leaders get
involved in autocratic style thereby making conflict resolution difficult. Hence, majority of the
respondents affirmed that leaders get involved in autocratic style thereby making conflict
resolution difficult.
4.6.2: Leaders operating democratic style but refuse to manage conflict well
Items Frequency Percentage (%)
Strongly Disagree 6 3.5
Disagree 5 2.9
Undecided 24 14.2
Agree 99 58.2
Strongly Agree 36 21.2
Total 170 100.0
Source: Field Survey 2022
Table 4.6.2 presented the results of respondents on whether leaders operating democratic style but
refuse to manage conflict well. It was found that majority of the respondents 58.2% agreed, 21.2%
strongly agreed, 14.1% were undecided, 3.5% disagreed and 2.9% strongly disagreed that leaders
operating democratic style but refuse to manage conflict well. Hence, majority of the respondents
agreed that leaders operating democratic style but refuse to manage conflict well.
4.6.3: Workers are not allowed to participate in management decision hence conflict
management is very difficult.
Items Frequency Percentage (%)
Strongly Disagree 0 0
Disagree 0 0
Undecided 11 6.5
Agree 85 50.0
Strongly Agree 74 43.5
Total 170 100.0
Source: Field Survey 2022
Table 4.6.3 presented the view of respondents on the statement workers are not allowed to
participate in management decision hence conflict management is very difficult. Accordingly,
50.0% agreed, 43.5% strongly agreed and 6.5% were undecided. Hence, majority of the

47
respondents agreed. Therefore, this implies that workers are not allowed to participate in
management decision hence conflict management is very difficult.
4.6.4: The leadership style in my work place is not suitable for crisis management.

Items Frequency Percentage (%)


Strongly Disagree 28 16.5
Disagree 0 0
Undecided 28 16.5
Agree 77 45.2
Strongly Agree 37 21.8
Total 170 100.0
Source: Field Survey 2022
Table 4.6.4 presented the results of respondents on the statement the leadership style in my work
place is not suitable for crisis management. It revealed that 45.3% agreed, 21.8% strongly agreed,
16.5% were undecided and 16.5% strongly disagreed that the leadership style in their work place
is not suitable for crisis management. Hence, majority of the respondents agreed that the leadership
style in my work place is not suitable for crisis management.
4.6.5: Leaders in my workplace do not create room for an atmosphere of goof conflict
management.
Items Frequency Percentage (%)
Strongly Disagree 5 2.9
Disagree 17 10.1
Undecided 60 35.3
Agree 47 27.6
Strongly Agree 41 24.1
Total 170 100.0
Source: Field Survey 2022
Table 4.6.5 presented the view of respondents on the statement leaders in my workplace do not
create room for an atmosphere of goof conflict management. Accordingly, 35.3% were undecided,
27.6% strongly agreed, 24.1% strongly agreed, 10.1% disagreed and 2.9% strongly disagreed.
Hence, majority of the respondents agreed. Therefore, this implies that leaders in respondent’s
workplace do not create room for an atmosphere of goof conflict management.

48
4.7 HYPOTHESES TESTING
Table 4.7.1: Hypothesis One:
Ho: There is no significant relationship between the major causes of conflicts and output in Toyota
Nigeria Limited
Correlations
Major causes Output in
of conflicts Toyota
Nigeria
Limited
Spearman’s Major causes of Correlation coefficient 1.000 0.260**
rho conflicts
Sig (2-tailed) .088
N 170 170
Output in Toyota Correlation coefficient 0.260** 1.000
Nigeria Limited Sig (2-tailed) .088

N 170 170

Source: Field Survey 2022

The result above indicated that there is a weak positive correlation between the major causes of
conflicts and output in Toyota Nigeria Limited having had a correlation coefficient “r” of 0.260.
Also, the significant value (sig 2- tailed) “0.088” is higher than the p-value (p-value = 0.05). This
implies that the weak relationship observed between the two variables is not significant. Hence,
null hypothesis is accepted. That is, there is no significant relationship between the major causes
of conflicts and output in Toyota Nigeria Limited.

4.7.2: Hypothesis Two

Ho: There is no significant relationship between the types of conflicts and worker’s efficiency in
Toyota Nigeria Limited

49
Correlations
Types of Worker’s
conflicts efficiency
Spearman’s Types of Correlation coefficient 1.000 0.602*
rho conflicts
Sig (2-tailed) .145
N 170 170
Worker’s Correlation coefficient 0.602* 1.000
efficiency Sig (2-tailed) .145

N 170 170

Source: Field Survey 2022

The result above indicated that there is a moderate positive association between types of conflicts
and worker’s efficiency. Having had a correlation coefficient “r” of 0.602, the association between
types of conflicts and worker’s efficiency is moderate. Also, the significant value (sig 2- tailed)
“0.145” is higher than the p-value (p-value = 0.05) which indicated that the moderate relationship
observed between the two variables is not significant. Hence, null hypothesis is accepted. This
means, there is no significant relationship between the types of conflicts and worker’s efficiency
in Toyota Nigeria Limited.

4.7.3: Hypothesis three:

Ho: There is no significant relationship between effects of conflict and performance of employees
in Toyota Nigeria Limited

50
Correlations
Effects of Performance
conflict of employees
Spearman’s Effects of conflict Correlation coefficient 1.000 0.472
rho
Sig (2-tailed) .255
N 170 170
Performance of Correlation coefficient 0.472 1.000
employees Sig (2-tailed) .255

N 170 170

Source: Field Survey 2022

The result above indicated that there is a weak positive correlation effects of conflict and
performance of employees. With a correlation coefficient “r” of 0.472, there is an indication that
that there is a weak positive correlation between the effects of conflict and performance of
employees. Also, with a significant value (sig 2- tailed) of 0.472 which is higher than the p-value
(p-value = 0.05), it indicates that the variables of consideration were not significant. Hence, null
hypothesis is accepted. This means that there is no significant relationship between effects of
conflict and performance of employees in Toyota Nigeria Limited.

4.7.4: Hypothesis four:


Ho: There is no significant relationship between leadership style and conflicts management in
Toyota Nigeria Limited
Correlations

51
Leadership Conflicts
style management
Spearman’s Leadership style Correlation coefficient 1.000 0.534
rho
Sig (2-tailed) .901
N 170 170
Conflicts Correlation coefficient 0.534 1.000
management Sig (2-tailed) .901

N 170 170

Source: Field Survey 2022

The result above indicated that there is a weak positive correlation between leadership style and
conflicts management. Having had a correlation coefficient “r” of 0.534, the relationship between
leadership style and conflicts management is weak. Also, the significant value (sig 2- tailed)
“0.901” is higher than the p-value (p-value = 0.05). This implies that the positive weak correlation
observed between the two variables is not significant. Hence, the null hypothesis is accepted. This
means that there is no significant relationship between leadership style and conflicts management
in Toyota Nigeria Limited.

4.8 DISCUSSION OF THE FINDINGS


In this section, the findings from the survey analysis of the Topic “EFFECTS OF CONFLICT
MANAGEMENT ON ORGANISATIONAL PERFORMNCE – A STUDY OF TOYOTA
NIGERIA LIMITED (TNL) – LAGOS” was discussed.

52
The general objective of this research was to determine the effects of conflicts on organizational
performance in Toyota Nigeria Limited. The general objective is further sub-divided into four
specific objectives. The specific objectives drawn from these general objectives are to: ascertain
major causes of conflicts relative to output in Toyota Nigeria Limited, verify the types of conflicts
existing in the work organization in relation to worker’s efficiency in the work organization, assess
the effects of organizational conflict on performance of employees in Toyota Nigeria Limited and
investigate the effectiveness of leadership style on conflict management in Toyota Nigeria
Limited.

A descriptive survey design was adopted in order to get information from selected respondents
through structured questionnaire while examining the effects of conflict management on
organizational performance of Toyota Nigeria Limited. The data used for the study was collected
from 176 respondents while 170 were found valid and therefore were used for analysis. Descriptive
statistics and correlation analysis was conducted and the findings from the study are presented as
follows.

The relationship between the major causes of conflicts and output in Toyota Nigeria Limited was
investigated. The findings showed that there was no significant relationship between the major
causes of conflicts and output in Toyota Nigeria Limited. The relationship between the two
variables is weak and insignificant. It implies that the major causes of conflicts are not a major
determinant of output in Toyota Nigeria Limited. This finding tally with the findings of Onyemachi
(2014) in a research on strategic management of industrial conflicts in Nigeria oil and Gas which
found that industrial conflict started with the emergence of trade unionism in 1912 hence was not
a significant determinant of the productivity of the employees in recent years.

The relationship between types of conflicts and worker’s efficiency was also investigated by the
researcher. Findings showed that there is a moderate relationship between types of conflicts and
worker’s efficiency. Also, the study revealed a relationship, this relation was not significant. This
implies that types of conflicts have less impact on worker’s efficiency. This finding does not
corroborate the findings of Longe (2015) which examined the impact of workforce conflict
management on organisational performance in Nigerian and revealed that there is significant
positive relationship between integrated conflict management strategies (collective bargaining,
compromise and accommodation) and organisational performance, while non-integrated conflict

53
management strategies (competition, domination and avoidance) had a negative statistical
determinate effect on organisational performance.

Additionally, the research analyzed the effects of conflict and performance of employees.
Ultimately, a weak positive correlation was observed with correlation between effects of conflict
and performance of employees. The implication of this is that the resultant effect of conflict in the
organization will contribute less to the output of the employees. However, the study by Ajike
(2015) that examined the effect of conflict management on organizational performance of banks
in Nigeria revealed that found that there was a significant positive relationship between the effect
of conflict and organizational performance.

Finally, the relationship between leadership style and conflicts management was ascertained. The
result indicated a weak correlation between the variables of observation. Also, the observed
variables (leadership style and conflicts management) were insignificant. This finding differs the
findings of Nwosu and Makinde (2014) which focused on the concept of conflict and how it can
be managed in private institutions and affirmed that managers should employ the use of conflict
management strategies and also encourage negotiations to ensure peaceful working environment
so that organisational goals and objectives can be achieved. Also, the study by Ojo and Abolade
(2014) revealed that effective conflict management enhance employee’s performance in an
organization and that organization’s conflict management system influences employee
performance in the organization.

CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1 SUMMARY

54
This chapter summarizes the research, conclusions, and recommendations based on the
study findings' implications. The chapter begins with a study summary, with a special emphasis
on the problem statement, objectives, findings, and general implications of the study; concurrently,
the second part articulates conclusions, and the third part of the chapter deals with research and
practitioner recommendations.

The study's findings revealed that the conflict management has a significant impact on the
performance of Toyota Nigeria Limited, Lagos. Thus, the greater the acceptance of a conflict
management Toyota Nigeria Limited, Lagos management, the higher the organizational
performance. Conflict management has a negative significant effect on organizational
performance, implying that using a conflict management to manage conflict will result in a
decrease in organizational performance. As a result, the more Toyota Nigeria Limited, Lagos
adopts a compromise strategy, the worse the organization's performance. Furthermore, avoidance
strategy has a significant effect on organizational performance, implying that the greater the use
of avoidance method by Toyota Nigeria Limited Lagos management, the higher the organizational
performance. As a result, strategies for collaboration, compromise, and avoidance can be
developed.

5.2 CONCLUSION

Based on the research hypotheses and objectives, the conclusion reached was that finding
solutions to the conflict management, particularly at the work place will improve the performance
of Toyota Nigeria Limited, Lagos.

To improve the performance of Toyota Nigeria Limited, Lagos, both management and employees
have demonstrated that adopting a middle-ground approach in problem solving by both parties
agreeing on the grounds that they both sacrifice a little, that is, give up some of their demands, has
not improved the organization's performance. Furthermore, the ability of management and
employees to avoid issues that will cause division when the need arises has improved the
organization's performance. In light of this, the researchers correctly infer that if the organization
can handle conflict effectively and efficiently within its operations, this will result in high levels
of organizational performance, which will result in attainment of the organization's goals and
objectives. Successful conflict resolution has a cascading effect, helping managers to establish a
setting in which people may thrive.

55
5.3 RECOMMENDATIONS
In line with the preceding conclusion, the study recommends that Toyota Nigeria Limited,
Lagos create an enabling environment in which employees can openly communicate and discuss
issues affecting them. In doing so, every effort should be made by management to find mutually
acceptable solutions to problems and to implement any joint decision made while keeping
organizational goals and employees' interests in mind.

Furthermore, given the significant level of conflict management resolution improves Toyota
Nigeria Limited workers’ performance, such issues should be left alone during meetings to be
discussed openly. This will help to reduce tension in the workplace, allowing it to remain peaceful.

Organisational performance

The study's findings highlight the critical importance of conflict management tactics in increasing
and maintaining organizational effectiveness. Toyota Nigeria, Limited should prioritize the use of
conflict resolution tactics such as negotiation and third-party intervention in order to improve
organizational performance. To improve conflict management, managers should be responsive to
conflicts and establish efficient communication channels. The relationship between employees and
top management is important because it influences the effectiveness of dispute resolution
procedures.

Negotiation and Organisational Performance

Mediation and other kinds of negotiation should be supported to ensure that the company avoids
litigation. The reviewed literature and conclusions demonstrate that litigation carries a significant
financial burden, which may limit the organization's ability to invest in novel approaches to
improve process output. Litigation undermines organizational effectiveness by limiting the
resources available for investment. The study suggests that management use mediation strategies
more frequently to avoid conflicts from spinning out of control.

Communication and Organisational Performance

The study's findings demonstrate the absence of a positive and substantial association between
communication as a dispute resolution approach and organizational performance. As a result,

56
management should maintain good communication channels and look for other ways to boost
organizational effectiveness.

5.4 SUGGESTION FOR FUTURE STUDY


Based on the limitations of the study, this research implies that more research is required. To draw
meaningful findings on conflict management, a complete study with a bigger sample size is
necessary. This study focuses on conflict management tactics (collaboration, compromise, and
avoidance strategies) that give a satisfactory balance to parties involved in dispute. Further
research should focus on a comparative examination of conflict management techniques that give
sufficient balance to parties involved in conflict vs those that do not (accommodation and
domination tactics). The study's findings can be utilized to guide future research into the
development of a conflict management model specific to the needs of Toyota Nigeria Limited in
Lagos. Future research should look into the role of different types of negotiation and third-party
intervention styles in resolving or aggravating organizational conflicts. The study's findings can
provide a complete explanation of how conflict management and organizational performance are
influenced by negotiation, third-party intervention, and communication.

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APPENDIX
EFFECTS OF CONFLICT MANAGEMENT ON ORGANISATIONAL
PERFORMANCE.

DEPARTMENT OF BUSINESS ADMINISTRATION ( INDUSTRIAL RELATIONS AND


PERSONNEL MANAGEMENT UNIT).

MOUNTAIN TOP UNIVERSITY

QUESTIONNAIRE

Dear Respondent,

I am SERIKI DAMILOLA BABATUNDE, a student of Mountain Top University from the


department of Business Administration (Industrial Relations and Personnel Management) (IRPM
UNIT). I am conducting a research on “THE EFFECTS OF CONFLICT MANAGEMENT ON
ORGANISATIONAL PERFORMANCE”; and your organization is used as a case study.

I hereby seek for your assistance in honestly responding to the Questions in this questionnaire
with the assurance that any information provided will be held in strict confidentiality and only be
used for the research purpose.

Thanks in anticipation of your co-operation.

Yours Faithfully.

Seriki Damilola

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SECTION A: DEMOGRAPHIC DATA

Instruction: Please tick (√) in the box provided below against the information about you.

1. Sex: Male ( ) Female ( )


2. Age Range: Below 25 ( ) 26 – 40 ( ) 41 – 50 ( ) above 51 ( )
3. Educational Qualification: SSCE () BSC ( ) Master’s degree( )
4. Working experience (In Years): Below 5 years ( ) 6 – 10 years ( ) 11 – 15 ( )
16 – 20 years ( ) 21 years and above ( )
5. Respondents Department: Administration ( ) Accounts ( ) Audit/ I.T ( )
Marketing ( )
6. Status: Single ( ) Married( ) Divorced( )

Section B

Kindly Tick (√) The option in front of each item that is most applicable to you using the keys
below.

Strongly Agree[SA]=5; Agree[A]=4; Undecided[U]=3; Disagree[D]=2; Strongly


Disagree[SD]=1

Causes of conflicts relative to output to the work organization.

S/N STATEMENT SA A U D
1 Poor salaries and wages prevent maximum output from
workers
2 Unfair labour practices on the part of management prevent
workers from contributing maximally to the output of the
organization
3 Poor terms and conditions of employment hinder efficiency
of workers

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4 Absence of incentives arising from good job performance
prevent high productivity from employees.
5 Lack of regular promotion of staff brings job dissatisfaction
thereby causing low output in the work organsation.

Forms of Industrial conflict and workers’ Efficiency

S/N STATEMENT SA A U SD D
6 Strike is a major factor that hinders workers’
performance.
7 Sometimes workers engage in work to rule
thereby reducing their productivity.
8 Lock-outs are sometimes used by employers
against workers during strike thereby promoting
low productivity.
9 Workers do engage in picketing to disrupt work
arrangement that has brought reduction in
organizational profit.
10 Workers are inefficient sometimes because of
output restriction, they utilized to press hold
their demands from the management.

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Effects of Organisational conflict on employees’ performance.

S/N STATEMENT SA A U SD D
11 Low performance of employees can be attributed to series
of industrial conflict.
12 Individual conflict in form of fraud has led to inefficiency
on the part of many workers.
13 Daily reduction in organizational profit can be attributed to
series of strike action by workers.
14 Many workers involve in never- on – sit syndrome thereby
reducing the organizational revenue.
15 Labour turnover is common in my work place because of
poor terms and conditions of employment that has brought
inefficiency of workers.

Effectiveness of leadership styles on conflict management.


S/N STATEMENT SA A U SD D
16 Leaders get involved in autocratic style thereby making
conflict resolution difficult.
17 Leaders operating democratic styles but refuse to manage
conflict well.
18 Workers are not allowed to participate in management
decision hence conflict management is very difficult.
19 The leadership style in my workplace is not suitable for
crisis management.
20 Leaders in my workplace don’t create room for an
atmosphere of good conflict management.

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