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Effect Of Conflict Resolution On Organizational Performance. (A Case Study Of Nestle Nigeria Plc, Agbara Ogun State)






Table of Content



1.0       Background to the Study

1.1       Statement to the Study

1.2       Objective to the Study

1.3       Research Question

1.4       Research Hypothesis

1.5       Scope of the study

1.6       Significant to the Study

1.7       Limitation to the study

1.8       Operation Definition of the Terms

1.9       Historical Background to the Study



2.0       Introduction

2.1       Conceptual Framework

2.2       Theoretical Framework

2.3       Empirical Review



3.0       Introduction

3.1       Research Design

3.2       Population of the Study

3.3       Sample and Sampling Techniques

3.4       Data Collection Instrument

3.5       Reliability and Validity of Test`

3.6       Model Specification

3.7       Method of Data Analysis



4.1       Introduction

4.2       Data Analysis

4.3       Testing of Hypothesis




5.0       Introduction

5.1       Discussion of Findings

5.2       Conclusion

5.3       Recommendations

The Questionnaire




The importance of conflict resolution in an organization cannot be overlooked, proper conflict   management helps organization to achieve its set objectives, while it adverse affects organization negatively. Hence, this study therefore look at the efficiency of conflict resolution on organizational performance using Nestle Nigeria Plc as a case study. The main objectives of the study is to identify the causes of conflict in Nestle Nigeria Plc. And also was to examine the relationship between conflict management and organizational performance. A sample size of one hundred(100) employee of Nestle Nigeria plc in Agbara were selected through stratified random sampling techniques. Relevant data for the study was generated through the use of questionnaire constructed by the researcher to measure the effect of conflict resolution on organizational performance. A descriptive analysis of data was done using table and chart and the following hypothesis were formulated and tested at a given level of 0.05 alpha level using statistical package for social science(SPSS) version 20.0 to run chi square test of the data .the hypotheses are thus; conflict cannot affect organizational performance positively; there is no significant  relationship between organizational objectives and conflict in an organization, the analysis result state, that conflict cannot affect organizational performances positively concluding that there is a convincing  evidence base on the sample data collected in this research work to support the claim that there is significant relationship between organizational objectives and conflict management; conclusively, there is no convincing evidence based on the sample data collected in the research work to support the claim that management cannot control conflict in an organization. The study recommends that; management should ensure regular and timely meeting of the company’s joint consultative committee (JCC) so that burning issues could have been amicably resolved before it degenerates to strikes action by the unions.


1.0     Introduction

1.1     Background to the Study

Organization is an identifiable social entity whose members pursue multiple goals collectively. The pursuance of these goals is done side by side with their personal goals and aspirations through their coordinated activities and relationships. Hence, organization has people, materials and goals that are achieved through coordination

An organization exists to provide goods and services that people desire. These goods and services are the products of the behaviours of workers who occupy different level of the organizational structure. These people have different cultures, skills and educational background as well as different perceptions, roles, expectations and values. Conflict in an organization will depend on the degree with which the manpower is met with opposition in protecting their interest, values and goals.

However, the establishment and continuous existence of organization through the realization of set goals and objectives requires the continuous and effective functioning of its material input with the human element being indispensable. The human elements required to facilitate goals attainment often engage in disagreement and variance over factors such as; interest, views, style of management among others. The reactionary effect due to the perceived incompatibilities resulting typically from some form of interference or opposition is known as conflict. Azamoza (2015) observed that conflict involves the total range of behaviours and attitudes that is in opposition between owners/managers on the one hand and working people on the other. It is a state of disagreement over issues of substance or emotional antagonism and may arise due to anger, mistrust or personality clashes.

The Nestle Nigeria Plc is an organization that is not excluded from conflict situation as long as the human element is part of its resources. They may disagree over issues in the workplace which can trigger conflict that need to be managed for improve performance of the organization.

1.2     Statement of the Problem

Organizations have a shorter life cycle today because of various changes in the operation of organizations. These organizational changes may cause turbulence and uncertainties that in turn, create conflict. The Nestle Nigeria Plc, over the years, have being facing conflict in various dimensions that have reduce its performance.

Conflict in any organization may not enable the organization to achieve its set objectives if not properly managed. Hart (2000) asserted that, successful organization in the future must create the capability to absorb conflict during the organization’s life cycle. The capability here refers to conflict management mechanism in order to minimize the rate of conflict and improve performance. The Centre for Effective Dispute Resolution (2005) supports the perception of an increase in organizational conflicts with some hard facts. Their research reported a 17% increase in organizational conflict measured by the more than 115,000 employment tribunal applications in 2004 in the United Kingdom.

According to Rivers (2005), the hidden costs of unresolved conflict in organizations are enormous and finding effective ways to manage and resolve organizational conflicts can have a significant impact on productivity and therefore, may enhance performance. Healthy differences of opinion are however vital in an organization in order for it not to stagnate, but when individuals are not able to work through their differences constructively and agree on a way forward, the conflict becomes destructive and damaging to individual, teams and ultimately to the organization (Rivers, 2005)

The Nestle Nigeria Plc, as a research institute has being suffering one form or the other of conflict, mostly interpersonal conflict among her staff and industrial conflict with the government which has affected the smooth operation of the organization overtime (Nestle Newsletter, 2010). The effective management of these conflicts will go a long way to enhance the performance of the organization in meeting to its mandate. It is in the light of the above problem that the following research questions were asked and this study is expected to provide answers to;

  • What are the possible causes of conflict in Nestle Nigeria Plc?
  • What are the possible ways of managing conflict in the organization to improve performance?

1.3     Objectives of the Study

The main objective of this study is, conflict management and organizational performance as relates to Nestle Nigeria Plc.

Specific objectives include:

  • To identify the causes of conflict in Nestle Nigeria Plc;
  • To examine the relationship between conflict management and organizational performance.

1.4     Research Questions

  • Can conflict affect organizational positively?
  • Is there any significant between organizational objectives and conflict management?
  • Can management control conflict in an organization?

1.5   Research   Hypothesis  

HO1: Effective management does not lead to improve organizational performance

Hi1:   Effective conflict management leads to improve organizational performance

HO2: There is no significant relationship between conflict management and organizational performance.

Hi2: There is significant relationship between conflict management and organizational performance.

1.6     Scope and Limitation of the Study

The scope of the study is conflict management and organizational performance in Nestle Nigeria Plc. This organization is chosen because of ease in accessibility and also being an organization with diverse goals, conflicts situation will always be manifesting in the life of the organization. The limitation of the study is insufficient financial resources, time and materials.

1.7     Significance of the Study

This study will be of value to organizations both public and private in order for them to identify some silent causes of conflicts and to be able to manage the situation judiciously using some of the conflict management strategies. The study will also arouse government interest to see the need in providing adequate resources to public organizations in order to minimize the rate of conflict in these organizations specifically Nestle Nigeria Plc.  The study will also provide a plat form for management of organizations to direct resources appropriately in order to minimize conflicts situations in the workplace. The study is also expected to be of great value to academicians and practitioners in the field of conflict management, public relations and public administration. The study can also be useful to researchers for further studies.

1.8      Operational Definition of Relative terms

Conflict: This is a struggle or contest between people with opposing needs, ideas, values, or goals (Algert and Watson, 2006). Paul and Dean (2002) defined a conflict as the friction felt when two or more people or groups disagree about something.

Management: This is the act or skill of dealing with situations in a successful way. That is, bringing situations like conflict in organization under control.

Public: As used in this study, it stands for Government.

Organization: According to Robinson (2008), organization is an establishment set aside to provide services to members of the public.

1.9     Historical Background of Nestle Nigeria PLC

Nestle foods Nigeria Plc was  formally known as Food specialties Nigeria Limited. It was established in 1961 in Nigeria at km32 Lagos-Badagry express road,Agbara Estate, Ogun State. In 1971, a factory was established at Ilupeju for processing and wrapping of Maggi-cubes. In 1978, the company which was formally food specialties  Ltd. Became a public company. In 1985, an agricultural subsidiary called Agro development Nigeria Ltd. Incorporated farming was established followed by five new products introduced into the Nigeria market, such as Cereal, Maize, Nutrient, Golden morn, Nesco, Maggi super and was offered for sale in 1986. The company’s brands of products includes weaving foods-Nutrend, Cereal, Maize, and Choco-milo. Beverages drinks-Milo, Nido and Nesco.

Breakfast cereal- golden morn, kitchen seasoning range which includes magi-cubes, magi super and spices, magi chicken, magi maxi and magi crayfish.

Nestle Nigeria Plc. Has been able to carve a niche for itself and its product against other competitors with the use of Marketing Communication strategy aimed at building consumer’s commitment to band and changing consumers” behavioral patterns.

The marketing department has been effective by placing advertisement in media, sponsoring events on products, sales promotion activities, publicity and public relations campaign. These promotional programmes have helped the organization measures its standard and access its product performance.

According to Broniarczyk and joseph (1994), the economy is affected by various factors responsible for resource allocation which influence the flow of goods and services as well as money. These factors affect the way they think and what they believe. Though, with the use of market system consumers have freedom of choice and this influence what is produced, how much of each product is needed and at what price. However, to calm excessive high profit from goods and services, competition is allowed. A firm can complete with rivals in various ways using marketing strategies like market penetration strategy, discount sales, product modification, new product development, other promotional activities etc.

To prevent unfair trade practices, government has regulated business operations of businesses by introducing various legal constraints such against consumer exploitation.

According to Schneider (1998), consumers play three distinct roles in the economy;

  • He receives income used to buys goods and services.
  • He acts as a consumer or user of income.
  • An individual who is a citizen and joins with others in collective decision making.

In summary, consumers play an important role in the economy because of the effect they have on the society’s gross national income and multiplier effect.


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