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Chapter one


1.0 Background of the Study

Conflict is unavoidable. Management’s dominating goal is to maximise profits, whereas labor’s primary goal is to secure and maintain the greatest level of pay in the best conditions.” Obisi (1996) suggested that, despite this, peace is one of the most important variables in increasing productivity

which benefits both labour and management as well as the country’s economic development. As a result, it is not unreasonable to view conflict as an unavoidable and desirable aspect of the workplace.

Conflict can be defined as a scenario of competition in which the parties are aware of the incomparability of their potential future positions and each seeks to occupy a position that is incompatible with the wishes of the other.

According to the Oxford Dictionary (2000), conflict is a scenario in which people, groups, or countries have a severe dispute or quarrel.

Because industrial relations is primarily concerned with the relationships between various players in the workplace, it is vital to investigate the origins and effects of conflict and to provide insights into how such relationships can be effectively managed.

A programmed choice follows standard operating procedures, whereas a non-programmed decision does not. There is no need to investigate alternate solutions because the ideal one has already been established and documented.

In contrast, novel, difficult, or ill-defined challenges necessitate non-programmed decisions. In these instances, decision-makers must look for alternatives and, in some cases, create their own answer.

However, as difficulties arise, a programmed decision routine emerges. In this respect, programmed decisions trump non-programmed decisions since we aspire for predictable, routine situations.

Conflict may emerge as a result of the employee’s desire to maximise profit, whilst workers’ representatives seek to ensure that their members’ living conditions continue to improve. Conflict may also occur as a result of failure to honour agreed-upon items in collective bargaining.

Damachi (1999) emphasised that if workers’ rights and prerogatives are violated, it may lead to conflict. These include payment terms, conditions of service, and so on.

Indirect participation refers to modes of participation in which representatives or delegates from the main body of employees participate in various ways in the organization’s decision-making process.

Indirect versions, such as joint consultation, which broadens the scope of collective bargaining and worker participation, are related with the border’s concept of ‘industrial democracy’ (Barman et al., 1976; Bullock, 1977).

1.1 Statement of Problem

Poor worker motivation reduces output, resulting in low profit for the organisation. Employees are also affected.Poor interpersonal relationships, loss of payment, removal from employment, or even death, are all examples of temporal constraints.

The effect of such a situation is similar to foul winds that do no one any good and have an impact on organisational performance. In most cases, all stakeholders in the organisation are affected.

Industrial conflict has the potential to cause societal disorder; instability and mass unemployment may jeopardise the government’s capacity to meet its obligations to the citizens.

In his 1987 article on the repercussions of strikes and lockouts, Otobo explored the psychological, political, and economic consequences of industrial strife. Overall, every party to the industrial action is affected.

The importance of competent conflict management in resolving conflict-related issues and assisting organisations in achieving business objectives cannot be overstated. This study will focus on the “industrial relation climate in power holding company of Nigeria” (PHCN).

1.2 Research Objectives

The primary goal of this research study is to identify and evaluate the impact of conflict management on employee performance in the public sector. The particular goals are to

a) Determine the origins and outcomes of conflicts.

b) Investigate how to avoid disputes from escalating into employee strikes and lockouts.

C) Assess the impact of conflict management on employee performance.

d) Consider how effective conflict resolution can promote harmonic and peaceful coexistence among various interest groups in the workplace, with a focus on PHCN.


The study will seek to provide as comprehensive a response to the topic as feasible.

1. How does conflict management affect employee performance at Power Holding Company of Nigeria?

2. To what extent does a conflict management system reduce labour turnover?

3. How much does a conflict management system influence employee engagement in an organisation?

4. What form of conflict resolution strategy would reduce employees’ lack of interest in their jobs?

1.4 Research Hypothesis

Hi: PHCN’s conflict management approach affects employee effectiveness in the organisation.

Ho: Employee performance is unaffected by PHCN’s dispute management mechanism.

Hello, the conflict management system influences employee commitment in an organisation.

Ho: A conflict management system has little impact on employee performance in an organisation.

Hi: The conflict management method will minimise workers’ loss of interest in their jobs.

Ho: The conflict resolution method will not reduce employees’ lack of interest in their jobs.
1.5 Scope of the Study

The study will seek to assess the conflict management scenario at Nigeria’s Power Holding Company. A comprehensive review of the study’s theoretical framework will be conducted, as well as an examination of PHCN’s historical context.

1.6 Relevance of the Study

The ability of an organisation to fulfil stated goals is dependent on the quality of its workforce. It is thus vital to investigate the impact of a conflict management system on employee performance in the public sector.

The study is relevant and essential since both employees and management of a public organisation are often under the idea that “this is government work” and therefore everything goes.

Now that the economy is adopting more economic deregulation and Power Holding Company has been commercialised, it is critical to examine how conflict is now managed.

It is intended that the findings of this study will serve as a reference point for other former public businesses that have been commercialised or privatised in order to understand how to handle conflict inside their organisations so that their primary goal of being in business is not jeopardised. The study will also contribute to existing literature in the topic.

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