CHAPTER ONE 1.1 BACKGROUND OF THE STUDY The aim of every business is to make profit at the maximum level, employees are continually under pressure to make sure that resources are utilized fully and labour cost are stabilized or reduced. Employers on the other hand have different interest. Their main concern is to maintain and improve their standard of living. They tend to seek wages and salaries increase, better working conditions, stability of employment, improved welfare packages, opportunity for advancement and so on in their work place. The interest of employers and employees are not usually the same especially at this period when the technological and industrial change keep occurring constantly, therefore conflicts are more likely to arise. No many may be interested in seeing that the goal of the organization are achieved, those that may be interested are possibly more likely to be in a higher positioning the organization (Reference to Modern Business Administration by Robert Appleby). (Robert, year). Within every organization, there are various sub-goals of the various groups and management always attempts to manipulate these sub-goals to ensure that the survival of the organization is more readily achieved. According to Adefisayo (2000) industrial dispute may arise if negotiation between labourand management fails a trade union may threaten to go on strike if its demand are not met on the other hand management may threaten to embark on lock out of workers if they refuse to reach a consesus (Adefisayo, 2007) An organization has goals and these such as maximizing the wealth of their shareholders, maximizing profit, growth concern, survival and so on, could be achieved efficiently and effectively if there is peace and harmony in the organization. The organization has goals and these such as maximizing the wealth of their shareholders maximizing profit, growth concern, survival and so on, could be achieved efficiently and effectively if there is peace and harmony in the organization. The types of relationship existing between the employers and employees is a major and strong determinant of the success of any organization. Therefore, the emphasis in the industrial relation strialpeaces. The parties employees and their employers have different belief, philosophies and perceptions. This usually result into conflicts and these conflicts have challenges on the management of Nigerian organization generally. In summary, conflict is a reality in organization, yet it is generally viewed negatively by management conflict could be functional that results in creativity, increase motivation, increase productivity, etc. that the organizational needs for survival or could be dysfunctional that result in low productivity, loss of human energy time and money, low morale, frustration, etc. the traditional view of conflict was that it was necessary and harmful but incurrent view, the interactionists believe that conflict in organization is inevitable and even necessary, on matter how organizations are designed and operated ( theory and development by mc oliver and Nwagwu, 2000, pq, 184 – 185) In spite of these, demands, both from inside and outside the organization. 1.2 STATEMENT OF THE PROBLEM Certainly, manufacturing companies produce to sell the volume of goods produced to sell the volume of goods produced and sole, thereby determines their profit. Therefore any hindrance to production run, will affect sales volume resulting into low profit management conflicts are problem that need to be seriously looked into these conflicts usually occur between union workers and their management. A trade union con declare trade dispute that could result in strike or the management may embark on lock out workers. All problem put together in an organization, often result in management unrest such as strikes, lock out, work to rule, demonstration, go slow and so on. The sad twist in all this is their adverse effect on production andsales volume of business organization. Since the aim of every organization is to make profit on its investment in order to grow and survive, therefore any problem that tends to hinder the realization of this goal and objective warrant investigation. The challenges of conflict management on organization growth in Nigeria need to be looked into so as to find possible solution to prevent and management their occurrence. 1.3 OBJECTIVE OF THE STUDY The efficiency of challenges of conflict management on organization growth cannot be overemphasize. The following objective are relevant. a. To examine the effect of conflict management on organization growth. b. To determine the effect of conflict management on productivity. c. To examine the effect of conflict management on long term survival of the organization. 1.4 RESEARCH QUESTION a. To what extent does conflict management affect organization growth b. To what extent does conflict management affect productivity c. T what extent does conflict management affect long tern survival of the organization 1.5 FORMULATION OF HYPOTHESISThe following hypothesis is here by formulated HYPOTHESIS 1 Ho: there is no significant relationship between conflict management and organization growth. Hi: there is significant relationship between conflict management and organization growth.HYPOTHESIS 2 Ho: poor remuneration does not result into conflict management in the organization. Hi: poor remuneration doesresult into conflict management in the organization. 1.6 SIGNIFICANCE OF THE STUDY Industrial conflict has been so rampant in this country which result into product stoppage, low sales volume, profit production and therefore does effect the national income and gross domestic product (GDP) by the end of this study, it is expected that the findings of this research work will bring to the notice of both the trade union and management of every business organization that industrial conflicts have both the positive and negative effect and if not properly managed, could jeopardize the achievement of much organizations goals and objectives. This research work will enable the management to know that they should not wait until trade unions embark on strike before meeting theory demand will the union will also be enlightened that not only through industrial unrest that they could their needs. This study will as well encourage the government not to neglect its adjudicative role as umpire that regulates or monitors the activity in industrial relation to ensure peace and harmony. Finally, this study will be beneficial to employees, employers, business administrators, law makers, government and so on abut current view on industrial conflict the it is necessary for progress in every organization if properly coordinated. 1.7 SCOPE OF THE STUDY This study will focus on the challenges of conflict management on organization growth are numerous and we cannot study all, therefore we will limit our study to Nigeria Bottling Company Plc, ikeja plant Lagos state. We are going to examine management conflict in this company that result in six of strike between april 8 and april 14, 2004. This study will also deal with the causes consequences and control of management conflict in the organization. 1.8 DEFINITION OF TERMSARBITRATION: this is the process whereby the parties in a dispute present their causes to an impartial umpire who sits on the case and determines it. COLLECTIVE BARGAINING: this is a process by which the trade union representative and management resolve their differences trough joint negotiation. INDUSTRIAL CONFLICT: this occurs when there is any disagreement between labour and management. Management dispute may arise if negotiation the harmful aspect and maximizing the beneficial aspect (clegg, 1979). Stoner and wankel schematically capture the land scape in the evolution of view on conflicts.