CONFLICT MANAGEMENT IN BUSINESS ORGANIZATION: A SPECIAL REFERENCE TO NIGERIAN GAS LTD


CONFLICT MANAGEMENT IN BUSINESS ORGANIZATION: A SPECIAL REFERENCE TO NIGERIAN GAS LTD

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CHAPTER ONE
INTRODUCTION

1.1 BACKGROUND OF THE STUDY
The historical background of conflict in organization can be seen as far back as the ancient times, which involves the scientific management era, personnel and human relation movement and the modem management period. The ancient firms (before 1800AD) is based on the events of the past years. This period gave a lot of knowledge about management.

The scientific management era (Fredrick W. Taylor in 1856 – 1917). He developed a method known as scientific management, which is the method used to investigate every operating problem and try to determine the best way to solve the problems, using scientific methods of research. The concept involved a-way of thinking about management.
In his concept, he observed some management conflict in an organization as those workers wasted more time than that was necessary to accomplish a give task, that there was a general inefficiency of the workers and that labour costs were consequently higher than they would have been.

Human relations movement and behavioural science (personnel) period by Elton Mayo (1900-1950). He found out that here are conflict in management driving his research and concluded that monetary incentive and other working conductions are not only the motivating factors in an organization. But proper attitude to work is equally important also the superior’s role was important for moral and productivity. Group spirit and teamwork were vital to accomplish organizational goals and workers satisfaction. Also, that within every formal organization, informal organization for any formal organization to achieve its corporate objective, the managers must therefore know why employees act in the manner they do, and the psychological, social and other factors which motivate them.
The modern era (Heney Faylo 1841 – 19250), which is the revisionism. He classified organization activities, the qualification of a manager. He did his own research and found out many conflict encountered by workers and managers in a given organization. After which the concluded the fourteen principles of management:
Division of work: Authority and responsibility, discipline: unity of command; unity of direction; remuneration; centralization; order, equity; stability of tenure; initiative and spirit de corps.
These principles in his own view, if conflict is followed in organization will reduce the conflict management and make things flow easily without them encountering any problems.

1.2 STATEMENT OF THE PROBLEM
There are many potential problems of conflict in organization. Today’s organizations are characterized by complex relationship and a high degree of interdependence of task that can occur. People also have different values and different perception of issues. For instance, a production manager may want to concentrate on product(s) that have available materials and technology to produce them, while the sale manager may desire, a brand product line that will satisfy diverse customer’s demands.

Potential cause of conflicts can be between people in line and staff position, also superiors autocratic and leadership style. The problems are summarized below:
i) The organization conflicts are due to lack of communication between the employee and employees.
ii) In terms of money, the ratio of profits to wages and salary cause conflict between workers and management.
iii) Management are concerned with efficiency and workers with job security. Management want more efficient machinery, this displace workers as less needed. Conflict occurs between marketing and production mangers as their policies and interest often differ.
iv) Workers restriction for more participation in decisions which affect their lives. This is vertical conflict between workers and management.
v) The socio-technical system organized men in a particular way which often, leads to a boring job, no control of the pace of work, no responsibility of group identify.
vi) Downwards fluctuations in the market for the products are threat to workers security. Such problems causes conflict even within a union, of there is nothing doing to secure their job.

1.3 OBJECTIVES OF THE STUDY
The objectives of this study include the following:
1. To examine whether conflict management aid effective business organization in Nigerian Gas Limited.
2. To ascertain whether conflict is effectively managed in an organization.
3. To assess the effect of organizational conflict on performance of employees in Nigerian Gas Limited.
4. To ascertain the major causes of conflict in an organization.

1.4 RESEARCH QUESTIONS
The following research questions were stated to guide this study:
1. Does conflict management aid effective business organization in Nigerian Gas Limited?
2. Does conflict is effectively managed in an organization?
3. What are the effects of organizational conflict on performance of employees in Nigerian Gas Limited?
4. What the causes of conflict in an organization?

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