FEDERAL POLYTECHNIC NEKEDE

OWERRI
P.M.B 1036
OWERRI, IMO STATE

THE IMPACT OF INDUSTRIAL

UNREST ON MANAGEMENT
EFFICIENCY
(WITH PARTICULAR REFERENCE TO THE OIL SECTOR)

WRITTEN BY

NAME: OBIOHA BLESSING IJEOMA

REG. NO: 21EH/0046/BAM
LEVEL: HND I EVENING
COURSE: SEMINAR IN MANAGEMENT I
COURSE CODE: BAM 328
DEPT: BUSINESS ADMINISTRATION & MGT.
SCHOOL: BUSINESS & MANAGEMENT TECHNOLOGY

NOVEMBER, 2022.
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 DEDICATION

This project work is dedicated to God Almighty who made it a huge success and

for his grace which is sufficient for us.

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 TABLE OF CONTENT

Front page

Dedication

Table of contents

CHAPTER ONE

Background of the study

Objectives of the study

CHAPTER TWO

Literature review

CHAPTER THREE

Findings

Conclusion

Recommendations

References

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 CHAPTER ONE

BACKGROUND OF THE STUDY

This study will focus primarily on the oil sector; the reason is because of the
incessant industrial unrest associated with the sector as a government parastatal
Unrest is a normal phenomenon and can occur at any level in a workplace in
every work place, there is bound to be some form of interaction and different interest
in the process of achieving organizational goals. Some of them occurring daily while
other frequently on special occasion though may result in open antagonism. It is
therefore, inevitable among formal management and information (labour) to
experience unrest in the organization/ industries. Unrest is likely when one persons or
groups goals jeopardize others where there is open antagonism between the people or
group and when rules or procedures regulates their behavior when this happens, the
goal 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 goal.
According to Okenwa and Ugbo (2003) unrest are of five basic types-intra
personal, inter-personal, inter-group, intra-group and inter-organization unrest. In this
study we are mainly concerned with inter-group unrest especially those occurring
between management and labour at the industrial level.
However, within every organization, there are various sub goal 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, share holders and
government, pay and prices, competition for sales and market etc. industrial unrest on
the other hand, resulting in a stick is a expression of possible dissatisfaction by the
labour union or management. Over employment relationship it usually start in form of
grievances which case on employees right in concisely to have been mishandled e.g.
the right to be paid, the right to enjoy goal condition of work, etc. hence, sources of
unrest in a work place (industry) may either be internal or external.
Generally, in considering the nature of industrial unrest, it could also be
positive or negative. It is negative when the work and union could not achieve their
main goals of the unrest. While it is positive if they were able to get their position
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through which invariably will improve the economic well being of members of the
union.
This therefore necessitated the need to examine the effect of industrial unrest
on management efficiency. Though, the causes of unrest 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 (NNPC) into
two opposing groups for and against one group consist of technocrats and majority of
senior management staff of 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 crises 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 products has apparently interfered with its market forces of supply
and demand with regard to petroleum products, there by marking prices of the
products rise far above the rich of the masses.
Not withstanding the corporation was established with aim of initiating
economic growth and to promotion 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 unrest 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 unrest
is the way by which they are been handled and settled without attracting closure.
OBJECTIVES OF THE STUDY
The research objective is to examine the effect of industrial unrest on management
efficiency.

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The following are the specific objectives of this study:
1. To review the means of resolving unrest in organizations.
2. Examine the various type of industrial unrest in different establishments

3. Ascertain the effect of industrial unrest in management efficiency.

4. To proffer solution(s) to the causes of industrial unrest.

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 CHAPTER TWO

LITERATURE REVIEW

This has attracted quite a good number or related literature in all its ramifications. In
this chapter our focus shall be on the review of the relevant literature under the
following sub-0heads: historical development and nature of industrial unrest, types of
unrest. Sources of industrial unrest, grievance, conceptual clarification of industrial
unrest, disputes and its settlement procedures, forms and manifestation of industrial
unrest, consequences of industrial unrest, consideration fact for industrial action, the
impact of industrial unrest on performance in the corporation (NNPC) mechanisms of
unrest resolution and final, the labour management co-operation strategies.

HISTORICAL DEVELOPMENT AND NATURE OF INDUSTRIAL

UNREST
Succinctly the emergence of industrial unrest in Nigeria society and workplace did not
take place until 1942 when the Nigeria society was under colonial rule, and the level
of awareness coupled with aggressive unionisms was also not visible during this
period. As a result, unrest is said to be ever-existing or ever present. It can be viewed
at the industrial, group or industrial/organization.
We shall at this point examine the various dispute or unrest in the
industrial level, especially those occurring between management and labour.
However, the first industrial labour dispute was the “cola” demand in 1992. This was
as a result of hardship the working classed experienced during the second world war
by the British which led the rail way union to demand a cost of living allowances or
award (cola). Workers agitated so much but their demand was turned down and crisis
ensured between the government and the rail way workers, again the establishment of
labour department, enactment of trade and arbitration ordinance and workers
compensation ordinance in 1992, the active role of the railway workers union led by
Michael Imodu, coupled with the infamous government order of the general defence

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regulations in this same year with in demonstrations, out law strikes and lock outs
during the world was period.
At the end of war, workers expected AC ange in their economic
fortunes, but nothing was done and the economic condition were so had so, they
embarked on a general strike in 1945 led by chief Michael Imodu, the strike lasted for
forty-five (45) days, it almost paralyzed the colonial economic because of the
tremendous support from workers and led to the encouragement in the formation of
other unions.
However, one major tragic incident of labour unrest was the Enugu
shooting of 1949” when the coal miners at iva valley in Enugu went on a strike during
this period, armed policemen were called in and twenty-one (21) coal miner were
killed. The shooting at iva valley in Enugu on 18th November, 1949, created more
awareness among workers and united them.
Another incident was the general strike of 1964 this was as a result of agitation
made by the workers for a revision of wages and condition of work which was not
adhered. According to Nwabuzor (1990) the strike cost government about twenty (20)
million Naira.
The general strike of 964 and the outbreak of war in 1967 led to the enactment of
some labour law in order to ensure a lasting industrial peace throughout the war.
Furthermore, the damage of the economic as a result of strike brought about
government taken a drastic action in 1968 government enacted the “trade dispute
decree (emergence provision) which out lawed strikes and look ones but made room
for labour and management to voluntarily agree on issues concerning the union.
In addition, the available records of the federal ministry of labour and
productivity in conjunction with the federal office of statistics reveals what constraints
the major uprising in development of unrest between union and management as “
conditions of service which comprises of allowances, wages and salaries put
differently, labour most frequent disages with the management / government over
non-payment of wages and salaries, benefits and allowances, insecurity of job, poor
working condition etc. most often, cases handled by the industrial arbitration panel
(IAP) responsible for the industrial unrest in Nigeria.

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 However, punch editorial (2003) identified some other factors that
would also result to unrest in the National Oil producing industry to be in clued, delay
in the implementation of agreement between the management and the union, border,
dispute, lack of confidence, lack of autonomy, and insufficient delegation of authority
above all the negative responses to workers demand. Hence, Sonubis finding (1973)
conformed this when he added that unrest of interest and advances between employees
and employer always center around the factor enumerated above, and that of the
condition of service.
Top the lists of main development of industrial unrest in the
corporation/enterprise. In a related views, Nwanegbo’s (2005) study on unrest in
Nigeria clearly shows that deprivation was at the center most if not all of the unrest in
Nigeria. It is responsible for frustration which is true leads to aggressive responses.
Today, one of the greater disputes in the Nigeria Oil sub-sector as to do
with manipulation of meters, particular among the independent marketer of petroleum
products, perhaps because they do not enjoy the privilege accorded the various major
oil marketing firm by the corporation (NNPC) among others are high cost of product
by the various marketing agents and full support age which led to plant closing down
and retrenchment of staff. For example, in 1997, the country experienced the one that
lasted eight (8) weeks which almost brought the economy down. Again, the
corporation (NNPC) presented to government wide ranging proposal in the
implementation of the leasing options but nothing carue of the proposal. All these
impact negative on the resources and economic development of a country and could
lead to industrial unrest between the government and union.
Basically, industrial unrest have two major view namely, traditional
views and international view.
However, traditional views see unrest as dysfunctional for an
industry/organization. Because of its negative consequences where as the international
view sees unrest an unavoidable in an organization because of its positive and
negative consequences.
From our discussion so far unrest can be described as a type of
behaviour which occurs when two or more parties are in opposition as a result of a

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perceived relative deprivation from the activities of or interacting with another person
or group, finally, industrial unrest equally can bring the country economic activities to
half.

TYPES OF UNREST

Unrest is likely, however, when one person or group goals jeopardize the other.
According to Okenmla and Ugbo (2003) basic types of unrest in the organization are
listed below.
- Intra-personal unrest
- Inter-personal unrest
- Inter-group unrest
- Intra-group unrest
- Inter-organizational unrest
This is explained in detail for proper and clear understanding.
Intra-personal unrest: this is a unrest that exists or occur within an
individual and can be caused when one sees his goals and that of the organization as
been incompatible where one persons goals jeopardize or give rise to some tension.
Inter-personal unrest: this exist between two or more individual within
an organization as a result of disagreeing about the organizational goal difference in
states etc in addition to this Akuma (2003) Identified her unrest that can profoundly
influence inter-personal behavior in workplace as;
a. Approach –approach unrest:- a situation were an individual is attracted to two
or more goals that are of equal vital to him but moral any government laws dictates
that an individual can only have one at a go.
b. Avoidance- avoidance unrest:- this is when an individual is at the cross road of
two things he wishes to avoid.
c. Approach-avoidance unrest:- a situation where there are both good and bad
element in a certain action.
d. Inter-group unrest:- this relates to unrest arising within the member of groups
similarly, it is a overt expression of hostility within group, other formal or informal or
intentional interference with each others activities in line with this, Moorhead and

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Grifin (1989), described inter-group unrest as a “form of group interaction that occur
when ever one group perceives that it attempt to accomplish its goal have been
frustrated by another.
e. Intra-group unrest:- this refer to unrest between different group in an
organization such as between department, units and management, non technical
employees, line staff etc. it occur as a result of goals incompatibility, function unrest
and hierarchical unrest.
f. Inter –organizational unrest:- this involves unrest among enterprise and others
and this can be as a result of sales and market competition.

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 CHAPTER THREE

FINDINGS

Over the years, there seems to be no good relationship existing between the union and
the management. This has in a way affected the delay in implementing agreement
between both parties, thereby lead to poor performance off the workers it adversely
disrupt essential services of the corporation.
However, researchers in the field shows that different organizations has been
suffering from poor funding from the federal government since 1982. Government
parastatals, particularly the oil sub-sector therefore continue to become drain pipes as
they would continue to perpetually rely on government for subventions even to meet
recurrent costs on the other hand, no foreign investor will invest in an atmosphere that
is interested with labour unrest, just like indigenous ones either privately or publicly
owned will produce below capacity.
Subsequently, management have tried to sanitize the oil industrial sector
by adopting affective techniques and better procedures of handling unrest in a
workplace such as joint consultation, collective bargaining and others.
Also, attempts have been made to improve and enhance the workers performance
through provision of good condition of services, proper channel of communication
good remuneration as well as effective dialogues.
Undoubtedly, many respondents hold the opinion that the above
objectives are the most valuate means to actualize the specific objectives of the
organization and equally maintain a cordial relationship in a working place.
Finally, in the course of investigation work which has been confronted with
some obstacles such as financial constraints hoarding of management information
time factor. This made it difficult for him to venture into some areas that might
contributed to the quality of this study.

CONCLUSION

We have argued in this study that the industrial unrest in government parastatal has
adversely affected the industries, the individual worker and the economy itself it has

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quits substantially and significantly impaired, the industries activities, constrained
their performance including the nations oil industrial sector thereby reducing the
standard living of the masses in terms of paying more than before (directly or
otherwise for petroleum products such as kerosene diesel and petroleum.
Succinctly, unnecessary interference by the government, political instability,
fear of job insecurity, poor motivation and incomprehensive industrial climate impacts
negatively on the performance and the labour productivity particularly in the public
parastatals.
However, unrest relationship between tripcutile government, management and labour
group in the productivity in the country. Therefore employers of labour should see
union leaders as partners in progress and not as their enemies. Union on the other
hand should be articulated in their demands rather than using the opportunity given to
them to cause trouble or necessary industrial actions, they should work for the
actualization of the goals of the enterprise.
To crown it all, the practice of industrial democracy peace and harmony are
needed for growth and enhancement. Therefore there is need to imbibe the spirit of
tolerance appreciation understanding, co-operation efficiency and effectiveness in our
government parastatal (NNPC) to be précised to these and the impact of industrial
unrest on performance in workplace would be eliminated.

RECOMMENDATION

Industrial democracy is the best system to achieve equal power between the
management and the labour.

Therefore, in the true spirit of industrial democracy, a worker has the right to
chose who to manage the workplace just as a citizen has the right to choose their
governor of his state or the president of his country.

Nonetheless, against the backdrop of the problems and effects identified in this
discourse which include, insufficient delegation of authority from the center, back
autonomy.

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 Lack of management information system, delay in implementation of
agreement by the management or the government, etc. for the pur4pose of efficiency,
effectiveness and industrial relation, the following among other possible strategies are
therefore suggested fro the way forward.

1. Workers should be allowed and encouraged to buy shares in their workplace

and become part owners. Secondly, participation of workers in the enterprises in
which they work will definitely make them fill free and will equally contribute to the
success of such enterprise.
2. There should be full autonomy in the government parastatal especially in terms
of recruitment promotion etc.
3. An effective worker performance requires motivation and reward system.
Generally, workers will show greater commitment and less tendecy6 to industrial
actions if they have sometime at srake in the organization other than their regular
salaries and other remuneration and in turns encourages quality work.
4. There is an urgent need for sufficient delegation of authority from the center.
This to improve and enhance the performance of the operating division of the
enterprise/corporation.
5. There is need for proper and adequate channel of communication, good
remuneration and improved conditions of services for employees with emphasis on
incentives that would make them more innovative in order to enhance the quality of
labour available in the parastatal.
6. There is need for adequate financial management base activities of any
parastatal can only function very well if there is enough fiancé.
7. Also, there should be efficient management government labour relations to
stem incessant industrials strife and it attended consequences
8. There should be promotion and maintenance of the required facilities and
innovative medium management system that would engender efficient performance in
Nigeria industrial sectors.
9. The activities of the oil marketers and industry source in Nigeria have closely
monitored and viewed seriously to help them within the framework of the industrial
peace and harmony.
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10. Thus, most of the government policies should be closely monitored to ensure
that such policies are not selfishly faulted at the implementation stage.
11. Lastly, organization in enterprise should expend considerably efforts in design
and implementation of reward system that will lead to achievement of corporate goals
and as well as improve the welfare of employees.
There is no doubt that the above measure would help to enhance efficiency and
effectiveness in the government parastatal particularly in the nation oil industrial
sectors.

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