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I certify this work on the impact of industrial conflict in performance in a government parastatal. A case study of the Nigerian National Petroleum Corporation (NNPC) was carried out by -------------- with Registration Number ---------- of the department of Public Administration, -------------------- under my supervision.


………………………………                           ………………………

----------------                                  Date

(Project Supervisor)                       





………………………………                           ………………………

-------------------                              Date

Head of Department)                       





…………………………..                       ………………………

External Examiner                          Date




I dedicate this work to the lord saviour only.



A bird that is dancing in the rope definitely has something in the bush beating drum for her the success of this work is to a great extent attributed to the assistance given to me by various people both in and outside the institution. Firstly, I am great indebted to Almighty God for his perfect protection throughout my stay in the institution.

I wish to express my sincere appreciation and gratitude to my project supervisor Mr. ------------. for his love, kindness, direction and for making necessary corrections without his academic and expert guidance, the success of this research study would have been the illusory. Also thanks to the able lecturers in the public administration department Mr. ------------, Mr. -----------, Mr. -----------, Mrs. -----------, Mr. -------------- to mention but few whose advice led to the successful completion of this work.

My special thanks goes to my lovely parents, Mr. & Mrs. --------------, Mr. and Mrs. ------------ who gave me the best they could out of their little resources. Also thanks to my beloved friend Mr. ---------------for his support and encouragement morally and financially, Mr. --------------.

Finally, my regards to my aunty -----------, ---------------, ----------- and other for their assistance and maximum co-operation in carrying out this research study. Also I must not fail to recognize and appreciate.

I say big thanks and may God reward you all bountifully well Amen.




This research study is to attempt to have on insight on the impact of industrial and conflict on performance workers in government parastatal particularly in the Nigerian National petroleum corporation (NNPC). It starts by highlighting the historical development (nature) of industrial conflicts, its causes and forms and manifestation. Also it determines the means / mechanism of reducing or resolving conflict in workplaces.

However, information was picked from the use of questionnaire and personal interview administered to the individual worker and staff of the corporation as well as observations. Also, the researcher makes use of survey method to investigate on the general effects of industrial conflict on performance in the workplace. Thus, the data collected from the respondents are grouped into frequency distribution table and then converted to percentage with short explanation of its contends to facilitate the analyzes and as well ensure simple understanding of the work. Specifically, the postulated hypothesis are adopted and tested using chi-square distribution and simple percentage in ascertaining the validity or otherwise of the stated hypothesis. In addition, the work also identified some problems affecting the operating divisions of the corporation. Many others are government under funding, insufficient delegation of authority from the center which is relatively weaker, lack of autonomy etc.





Title page                                                                               i

Approval page                                                                       ii

Dedication                                                                                        iii

Acknowledgement                                                                iv

Abstract                                                                                  v

Table of contents                                                                  vi


1.1    Background of the study                                             1-4

1.2    Statement of the problem                                           5-6

1.3    Objectives of the study                                               7

1.4    Significance of the study                                            7

1.5    Statement of Hypothesis                                            8

1.6    Scope and limitations of the study                                      9

1.7    Definition of terms                                                       9-10

          References                                                                  11


2.0    Literature Review                                                        12

2.1    Historical development and nature

          of industrial conflicts                                                    13-18

2.2    Types of industrial conflicts                                        19-21

2.3    Sources of industrial conflicts                                    22-25

2.4    Causes of industrial conflicts                                     26

2.5    Industrial conflicts grievances, disputes

          and its settlement procedure                 

          conceptual clarification                                                         27-32

2.6    Forms and manifestation of industrial

          conflicts                                                                        33-39

2.7    Consequences of industrial conflicts                        40

2.8    The impact of industrial conflicts on

          performance in the Nigeria National

          petroleum corporation (NNPC)                                    41-43

2.9    mechanisms of conflict resolution                                       44-47

2.10  The labour management corporation

          strategies                                                                      48-50

          References                                                                  51-53


3.0    Research methodology                                              54

3.1    Research design                                                         55

3.2    Methods of data collection                                          56

3.3    Sample size                                                                 57

3.4    Sampling techniques                                                   58

3.5    Data analysis and techniques                                   59

          References                                                                  60


4.0    Analysis and data presentation                                  61

4.1    Data presentation                                                        61

4.2    Data analysis                                                               62-67

4.3    Test of Hypothesis                                                      68-69

4.4    Research findings                                                       70-73


5.0    Summary, recommendations and conclusion                    74

5.1    Summary of findings                                                   74-76

5.2    Conclusion                                                                   77-78

5.3    Recommendation                                                        79-82

          Bibliography                                                                 83-86

          Appendix                                                                      87

          Questionnaire                                                              88-93





Conflict is a normal phenomenon and can occur any level in a workplace in every work place, there is bound to be some form of interaction and different interests in the process o achieving organizational goals.


Some of them occurring daily while others in frequently on special occasion though may result in open antagonism. It is therefore, these inevitable among formal management) and informal (labour) group that by the ground for conflict in organization / industries, conflict is likely when one persons or groups goals jeopardize others where there is open antagonism between the people or group and when rules and procedures regulate their behaviour when this happens, the goals becomes extremely vital, antagonism increases and the rules procedure are violated. Thus, an attempt to satisfy ones goal leads to the frustration of the other.

According to Okenwa and Ugbo (2003) conflicts are of five basic types –intra personal interpersonal, inter group, inter-group and inter organization conflicts. In this study we are mainly concerned with inner-group conflict especially those occurring between management and labour at the industrial level.

However, within every organization, there are various sub-goals of the various group and management attempts to manipulate these sub-goals to ensure that the survival of the industries is more readily achieved. This involves coordinating all demands both from inside and outside the industry. Example, shareholders and government, pay and prices, competition for sales and market etc industrial conflict on the other hand, resulting in a stick is an expression of possible dissatisfaction by the labour union or management. It usually start in form of grievances in which case the employees right is considered to have been mishandled e.g. the right to be paid, the right to enjoy goal condition work, etc hence,  sources of conflict in a work place (industry) may either be internal or external.

Generally, in considering the nature of industrial conflicts it could also be position or negative. It is negative when the work and union could not achieve their main goals of the conflict. While it is positive, it they were able to get their position through which invariably will improve he economic well being of members of the union.

This therefore necessitated the need of examine the effects of industrial conflict on performance in the Nigerian national petroleum corporation (NNPC) though, the causes of conflict in this corporation is not distributive in nature, but could arise as a resist of delay in implementation of an agreement between the management and the union. For instance, in 1988, the report of the last force on commercialization of the corporation (NNPC) puts staff asunder. It has become a subject of serious disagreement earning the corporation into two opposing groups for and against one group consist of technocrats and majority of senior management staff of the corporation (NNPC) support the report to be fully implemented while the other group more (politically. Powerfully disagree with the report because they consider it inherently initial to certain selection interest.

Today, the corporation (NNPC) is facing a crisis of confidence, government under finding when the economic downturn hit the national border dispute and above all lack of understanding and unwillingness to appreciate the intricacies of the industry. All these would also sap the emerges of the management. The Nigerian National petroleum corporation (NNPC) as a major market to petroleum products has apparently interfered with its market forces of simple and demand with regard with petroleum products, thereby making prices of the products rise far above the reach of the masses.

Notwithstanding the corporation was established with aim of initiating economic growth and to promote nation integration as well. Consequently, government itself is more guilty of the offence yet the same government will back to cause the parastatal of poor or no performance.

Finally, industrial conflict impaired the activities of an enterprise and also the chances of achieving effective and efficient performance in a work place and in true result to strike lack outs etc moreover one unique interest over the mentioned conflict is the way by which they are been handled and settled without attracting closure.



In spite of the laudable mechanisms of conflict resolution with internal and external, there are still some identified problems affecting the entire operation of the corporation (NNPC) which are yet to be solved.


Firstly, the operating division of the corporation are constrained in their performance because of insufficient weaker. Secondly, the corporation performance by law, functions from which it derives no review at all thirdly, lack of management information system resulting in the inability of the corporation to establish responsibility and accountability for profit and loss. Again, inability of the corporation to obtain external non-government financing for profitable project or through joint ventures with the private sectors.

Finally, the conflict is as a result of demands for fresh collective agreement or result of demands for fresh collective agreement or renewal or new items negative responses to worker demand and delay in implementation of agreement of the management or parastals do not enjoy full autonomy, most board members are appointed to distribute political patronage by the government in power and not to work for the growth of the enterprise.



The research objective is to examine the effect of industrial conflict on performance in a government paratatals, with a view to ascertains how and to what extent conflict in the industry influences workers performance with analytical frame work drawn from the Nigeria National petroleum corporation (NNPC) within the ambit of the above stated broad goals the following specific objective can also be identified.

·              To ascertain the cause of low performance in the enterprise.

·              To review the means of resolving conflict in the industries finally, make appropriate recommendation on how performance would be enhanced and improved so as to have industrial harmony.


This study is quite essential for any establishment in dealing with conflict either at the individual, group or industrial level more especially in acquiring or achieving effective and efficient industrial performance.

In greater effect, the society will have an understanding view of both the positive and negative consequences of industrial conflicts. Perhaps, long standing problems are brought to the surface and be resolved, better ideas are equally produced, there will be stimulation of interest and creativity, also this work will be useful for further  research topic related to the study.


For the purpose of this study the following hypothesis were adopted:

Ho: Industrial conflict in the Nigerian National petroleum          corporation (NNPC) has negatively affected the workers      performance.

Hi: Industrial conflict in the Nigerian national petroleum   corporation (NNPC) has not negatively affected the         workers      performance.

Ho:   Insufficient delegation of authority from the centre has not      significantly constrained efficiently in the operating division      of the corporation.

Hi:  Insufficient delegation of authority from the centre was      significantly constrained efficiently in the operating division of   the corporation.


For the purpose of this study, the sphere of conflict that would be considered includes the inter-group conflict the one that concerned or occurring between the management and the union. The work is also restricted to the industrial conflict between the employer and employee of the Nigerian National petroleum corporation (NNPC) and how it affects their performance.

As a matter of fact, some factors limits the potential of this study. Such as financial constrains which relatively narrow down the shape of this work, constraints arising from the tendency to board information and finally, time constraints.



Collective bargaining: This is the process of negation drafting, administration and interpretation of written agreements between of employers and employees, over conditions and terms of employment for a period of time.

Grievance: According Ubeku (1995) grievance is defined as real or imagined compliant by an employee against his employer based on the alleged minister relation, misapplication or non-application of the terms and condition of employment.

Industrial conflict: This is any dispute or incompatibility of interest between and employees and employee(s) connect with employment or non-employment.

Performance: This is the act of working or doing something well or body. Also it is the ability to carrying of speed in work deliberately as a result of various reason such as poor remuneration etc.

Trade dispute: According trade degree of 1976, it is a disagreement between workers over representation or between the worker and management.

Union: Group of people or any combination of determine and regulate their welfare or goals.







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