In a society where people with a diverse interests, views and values co-exist, differences between such individuals and group are to be expected. This research “CONFLICT MANAGEMENT & ORGANIZATIONAL PERFORMANCE”, in Nigerian Breweries Plc, Enugu, is aimed at critically looking at conflict situations and it’s causes, as well as possible areas of improvement of conflicting situations for a better working environment in an Organisation. The research shows that Conflict comes from incompatibility of goals and interest and the result destroys the Organization. Conflict affects the Organisation in several ways such as decreased employee satisfaction, insubordination, decreased productivity, leads to economic loss, fragmentation. Descriptive and survey study were the tools used to elicit information. The major findings are that That Education does not have any effect on the opinion of respondents on Conflict Management Strategies. That there is no Significance different between the opinion of male and female respondents on the causes of Conflict. That there is a significant effect of Conflict on Organisational performance. The major conclusions drawn are that management strategies adopted in handling Conflict will not be affected by differences in Educational Qualification of the respondents, That management strategies adopted in handling Conflict will not be affected by differences in Educational Qualification of the respondents, also that the causes of Conflict in an Organisation will not have any difference whether it came from the male or female respondents. That the causes of Conflict in an Organisation will not have any difference whether it came from the male or female respondents. The Recommendations are as follows. That Management must adopt Conflict Management strategies that will improve on the Performance of the Organisation. That management should ensure a free flow of communication between the management and the employee. Management should encourage and promote interpersonal relationships among co-workers to improve on their morale
1.1 Background of the Study
Within any organization, there are usually different positions and jobs. People occupying these positions have different perceptions, goals, thought and concerns. It is difficult to conceptualize a society or an organization without inherent differences and contradictions and these leads to conflict. Conflict can be a serious problem in an organization. It can create organizational climate that makes it nearly impossible for employees to work together. Conflict is a natural and inevitable part of people working together and should be kept at a manageable level where it will not disorganize the activities of the organization towards the attainment of it’s objectives.
Conflict can also said to be beneficial to the organization where it brings about radical change in the organization existing power structure, current interaction pattern and entrenched attitude and also can lead to increase in productivity. While some conflicts are functional others are not. It can also affect the organization negatively when it is associated with decreased employee satisfaction, insubordination, decreased productivity, leads to economic loss, fragmentation to mention but a few. It is the
management major responsibility to device strategies in bringing down conflict as low as possible, which will enable the organization to still function to succeed (Robbins & Sanghi, 2005:418) against this background the study was being carried out on the negative effect of conflict.
1.2 Theoretical Framework
The Theoretical Framework is based on the effect of conflict on Organisational performance. Conflict is a disagreement in which parties involved disagree about facts or opinion expressed by those in authority.
There are different views based on those effects in this respect we shall discuss the functional and dysfunctional Conflict (Ivanceveich, Konopaske and Matteson (2005: 365).
Functional Conflict is a Confrontation between groups that enhances the organizational performance. e.g various department in an organization may be Conflict over most efficient and adaptive method of achieving a goal. They may agree on a goal but not on the means to achieving it. Without this type of conflict their will be little commitment to change.
The second is the dysfunctional Conflict and it is Confrontation between groups that harm or hinder the organizational goal.
Management must seek to eliminate dysfunctional Conflict. Similarly, (www.ehow.com) view the effects of conflict as
1. Insubordination- Insubordination develops because employees do not think management can maintain control over the company.
2. Drop in productivity.- Allowing a conflict to continue means that employee attention becomes more focused on the conflict and not on productivity.
3. Lack of Direction- Conflict can sometimes arise when management is unable to communicate the direction of the company to employees. Conflict will erupt as employees are allowed to interpret change within the company in their own way.
4. Fragmentation- Conflict creates rival functions. Sometimes those functions are individuals, sometimes they are groups. Unresolved conflict can create tension between groups that may normally need to work together.
5. Lack of New Ideas- Groups in conflicts tends not to collaborate on new ideas. When conflicts goes unresolved it can be difficult to create new ideas the company needs to solve problems it is facing.
Effects of Conflict also have both functional and dysfunctional outcome(Robbins and Sanghi, (2006:410). Functional Outcomes – It
is hard to visualize a situation in which open or violent aggression may be functional. But there are a number of instances in which it’s on possible to envision how low or moderate levels of conflict could improve the effectiveness of a group.
Conflict is constructive when it improves the quality of decisions, stimulates creativity and innovation, encourages interest and curiosity among group members, provides the medium through which problems can be aired and tension released, and foster an environment of self evaluation and change.
Dysfunctional Outcomes – The destructive consequences of conflict on a group or organization’s performance are generally well known. A reasonable summary might state: uncontrolled opposition breed discontent, which act to dissolve common ties, and eventually lead to the destruction of the group. Dysfunctional varieties can reduce group effectiveness. Among the more undesirable consequences are a retarding of communication, reductions in group cohesiveness and subordination of group goals to the primary of infighting between members.
1.3 Statement of the Problem
Every successful organization realizes different opposing views and debate in creating the organizational decisions. The decisions are focused on the side of the business leaders and on the side of the employees, either way, conflict is also present. Organization is clearly described as the collection of people working together to achieve a common goal.
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