THE EFFECT OF INDUSTRIAL CONFLICT IN ORGANIZATIONAL PRODUCTIVITY

CHAPTER ONE

1.1       BACKGROUND OF THE STUDY

Good organizational structure is vital for the existence and survival of any organization or establishment. For the survival and increase production, the establishment strives to make at least marginal profit, and that is where there is competent organization. In other word poor organizational structure and management may be enough reason for poor profit making.

          Management has been defined as the process of combing and utilizing or allocating an organization input (men, material, machine and money) by planning, organizing, directing and controlling in order to get a desirable output to accomplish the organizational objective (Akpala. 1990:3). Therefore poor management is bound to occur in a business with poor organization structure. This is because organization structure is the “frame work” of management without which the management cannot function effectively.

          According to Drucker, “Good organization structure does not by itself produce good performance just as a good constitution does not guarantee great leaders in a moral society. But a poor organization structure make good performance impossible, no matter how good the individual who manages may be (Drucker 1954:225).

          From the above, it is evident that a sound organization structure is a pre-requisite to effective and efficient organizational performance, though good organization structure is not an end itself. It is a means to an end, without which the end will not be achieved.

Hence given competent managers, highly   skilled and experience labour force, most modern plants and equipment, ample financial resources and adequate source of raw materials, without an appropriate structure, good performance will be impossible.

          The  trying economic time in Nigeria goes further to underscore the need for good and proper organization structure as business find it difficult  to get needed resources (financial and material). This is as a result of high lending rate depreciation in Naira value and government inconsistent polices. Therefore it is necessary that any establishment whether government owned or private owned should have proper designed and structured organization.

          In view of the likely problems associated with defects in the structure if any organization which invariably affect the organization performance, the purpose of this study is to review the organization structure of Anamco Ltd and Nigergas Ltd, Emene with a view of identifying defects (if any) and associated problems, how such defects have affected company performance and to recommend the one suitable for them.

 1.2   STATEMENT OF PROBLEMS

          The impact of organizational structure lies in the fact that many performance problems result from defect in the design or maintenance of the organization structure (Akpala 1990:60).Most problems which manifest in form of inter-personal and inter-group tension; conflicts etc have their root in the structure of the organization.

          However in the wake of economic recession as a result of the fall in the world oil price, the nation’s economy suffered reverberating consequences in all sectors, as oil is the chief foreign exchange earner. This gave rise to serious balance of payment problem, and inflationary trends with skyrocketing prices. Lack of fund leads to unavailability of raw materials, in industries and some establishment were compelled to take far-reaching measure such as retrenchment of workers and creating of employment opportunities in a bid to survive. Whereas some government establishment embarked on the policy of privatization and commercialization of its companies.         

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