EFFECTS OF CONFLICTS ON EMPLOYEE PERFORMANCE, A CASE STUDY OF

SOUTH NYANZA (SONY) SUGAR COMPANY-LIMITED KENYA

BY
AUDI S. A. FAITH
BHR/10072/81/DF

A DISSERTATION PAPER SUBMITTED TO THE SCHOOL

OF BUSINESS AND MANAGEMENT OF KAMPALA
INTERNATIONAL UNIVERSITY IN PARTIAL
FULFILLMENT FOR THE AWARD OF
BACHELORS DEGREE IN HUMAN
RESOURCE MANAGEMENT

FEBRUARY 2011
 DECLARATION

I Audi S.A. Faith hereby declare that this work has not been submitted in this university or any
other institution of higher learning before for an academic award and should not be reproduced
without my consent.

Signature .. ~-~ .. .... .

AUDI S. A. FAITH

Date ... Q~..\. 9.~ .\ ~~u ....

 APPROVAL

This work has been done under my supervision as a university as a university supervisor and
submitted with approval.

Signature ..... ~2.~~J..;:;.~. .

MR BALIRUNO JOHN BAPTIST

-<°7~ ( 0 1.-- ( u'/ I

Date .. , ..... , ........... . ..... .. .... . .
'

11
 DEDICATION

To my dear parents Wilson Audi Okach and Ruth Mmbone Audi, my unborn baby, the father of
my baby Julius Osambo and all my Sisters among them Janet, Winnie, Jae!, Brenda, Anne and
BJ and the entire Kokatch family for being with me throughout the difficult moments of my
education.

To all my friends and relatives who supported me in different ways may the almighty God bless
you all abundantly.

lll
 ACKNOWLEDGEMENT

The completion of my studies at Kampala International University couldn't have been possible
without the support of the almighty GOD for He is everything in my life.

In a special way I would like to register my gratitude to my parents Mr. Wilson Audi Okach and
Mrs. Ruth Mmbone Audi for their enduring suppo11 tln·oughout the j oumey of my education.

To my sisters; Janet, Wim1ie, Jae!, Brenda, Anne and Berther for their moral and enduring
suppo11.

My sincere gratitude also goes to my supervisor Mr. Balirnno John Baptist whose guidance and
cooperation contributed immensely to the successful completion of this work. His keen
supervision and editorial experience can be seen through this work.
I also thank Ms. Opiata Janet, the Human Resource Manager of SONY Sugar Company, Mrs.
Rosemary K.ijana the Human R~source Development Manager SONY Sugar and the entire
employees for their cooperation and providing me with the information I needed for my project,
may they continue with the same spirit.

In a special way I would like to thank my favorite friends notably; Mr. Julius Osambo, Miss
Mildred A wuor and Mr. Elius Mutuma for their constant suppo11 and encouragement tln·oughout
my studies at Kampala International University, I appreciate your assistance.

Finally my thanks goes to the entire K.I.U fraternity; Human Resource Management class 2008-
2011, teaching staff and the management for their assistance during my studies, may God bless
and reward all the above mentioned persons abundantly.

IV
 TABLE OF CONTENTS
Declaration ........................................................................................ .i
Approval. .......................................................................................... .ii
Dedication ........................................................................................ .iii
Acknowledgement. .......................... ,, .................................................. .iv
Table of contents ................................................................................... v

CHAPTER ONE: INTRODUCTION ...................................................... 1

1.0 Introduction ................................................................................. .. 1
1.1 Background of the study ..................................................................... !
1.2 Statement of the problem .................................................................... 2
1.3 Purpose of the study .......................................................................... 3
1.4 Specific objectives of the study ............................................................. 3
1.5 Research questions ............................................................................ 3
1.6 Scope of the study ............................................................................ 3
1. 7 Significance of the study ..................................................................... 3

CHAPTER TWO: LITERATURE REVIEW .................................................. 5

2.0 Introduction ....................................................................................... 5
2.1 Types of conflict.. ............................................................................... 5
2.2 Relationship between conflicts and employee performance ............................... 6
2.3 School of thoughts on conflicts ................................................................ 7
2.4 Effects of conflicts on employee performance .............................................. 8
2.5 Causes of conflicts .............................................................................. 11
2.6 Styles of handling conflicts ................................................................... 12

CHAPTER THREE: METHODOLOGY .................................................... 13

3.0 Introduction ..................................................................................... 13
3. lResearch design ............................................................ : .................... 13
3.2 Research site .................................................................................... 13

V
3 .3 Study population ................................................................................ 13
3 .4 Sampling size ................................................................................... 13
3.5 Sampling design ................................................................................ 13
3.6 Data collection instrnment ..................................................................... 14
3.7 Data analysis ..................................................................................... 15
3.8 Research limitation .............................................................................. 15

CHAPTER FOUR: PRESENTATION AND DATA ANALYSIS ...................... 16

4.0 Introduction .................................................................................... 16
4.1 Relationship between conflicts and employee performance .............................. 18
4.2 Effects of conflicts on employee performance ............................................ 22
4.3 Types of conflicts and their possible solutions ............................................ 23

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECCOMENDA TIONS ... 30

5.0 Introduction .................................................................................... 30
5.1 Summary ofresearch .......................................................................... 30
5 .2 Conclusion ...................................................................................... 31
5.3 Recommendations ............................................................................. 32
5.4 Areas offu1iher research ..................................................................... 33

REFERENCES .................................................................................... 34
APPENDIXA: Time schedule ................................................................... 35
APPENDIX B: Budget estimate ................................................................ 36
APPENDIX C: Questionnaire ................................................................... 37

VI
 LIST OF TABLES
Tablel: Classification ofrespondents according to age ..................................... 16
Table 2: Classification of respondents according to sex .................................... 17
Table 3: Classification ofrespondents according to their education level.. .............. 18
Table 4: Views of various employees if SONY Sugar experienced conflicts in
various departments ...................................................................... 19
Table 5: Representing the employees response on whether they experience conflicts
in every department ................................................................................. 20
Table 6: Representing the employees response (YES) in relation to their
level of education ........................................................................ 21
Table 7: The respondents were asked the type of conflicts they
experience mostly ........................................................................ 22
Table 8: The respondents were asked how conflicts affected
their performance ......................................................................... 23
Table 9: The respondents were asked how long conflicts took to be
resolved in their department.. .......................................................... 24
Table 10: The respondents were asked how often they reported any conflict
occurrence in the organization .......................................................... 25
Table 11: The respondents were asked how conflicts were resolved
in the company ........................................................................... 26
Table 12: The respondents were asked to whom they report the
departmental conflicts .................................................................. 27
Table 13: Time schedule of the study ......................................................... 35
Table 14: Proposed budget of the study...................................................... 36

Vll
 LIST OF FIGURES
Figurel: Conceptual framework .................................................................. .4
Figure2: Relationship between conflicts and employee performance ........................ 7
Figure3: Graph representing classification of respondents according to age ............... 17
Figure4: A graph representing classification of respondents according to
edncation ..................................................................................... 17
Figures: A graph representing classification of respondents according
to education ........................................................................ 18
Figure 6: A pie chart representing how long conflicts took to be
resolved .................................................................................. 24
Figure7: A pie chart representing respondents how often they repo1ied
any conflict occun-ence .................................................................... 26
Figure8: A pie chaii representing respondents how conflicts were resolved in SONY
Sngar Company ........................................................................... 27
Figure9: A pie chaii representing respondents to whom they repmied the depai1mental
conflicts ..................................................................................... 28

Vlll
 ABSTRACT
The research topic was chosen because most private and public sector industries do not believe
that conflicts when dysfunctional leads to low performance and when positive leads to increased
perf01mance. This made SONY Sugar Company to lag behind in operations and the poor
performance was attributed to lack of ttust and reduced morale. The purpose of the study was to
investigate the effects of conflicts on employee perfonnance of SONY Sugar Company LTD
Kenya. Specific objectives revolved around the type of conflicts, their effects and their possible
solution in the company.

The study was collected using research design, research area, study population, sample size and
sampling techniques of which a sample size of I 80 employees were chosen of which all
responded. The research instrnments used were questio1maire and interview. The data obtained
was analyzed and presented in tabular form, and in form of pie charts and bar graphs for easy
interpretation.

The findings revealed that conflicts have significant effects on organization perfonnance. The
management paid little attention on conflicts to the extent that they do not know conflict
resolution processes. It also discovered that the organization sometimes does not resolve
conflicts which has led to poor performance, at the same time some conflicts are not reported and
thus it is hard to know that people in the organization have differences.

It was therefore rec01mnended that the organization have better policies to govern the conflict
processes, train the management on how to resolve the conflict and to always try and resolve all
the conflicts as rep01ied.

IX
 CHAPTER ONE
1.0 Introduction
1.1 Background of the study
The study was on the effects of conflicts on employee perfo1mance. Conflicts are
disagreements between two or more parties, they maybe either positive or negative
disagreements, for example depending on the impact it may either be classified as
functional or dysfunctional thus they need to be looked at in the organization.
The inevitability of conflicts in organizations, suggest that organizations are more than
just production systems, organizations also have political systems. Political systems are a
collection of individuals or groups that must work together and speak with one voice
even though each has a private agenda to pursue.

South Nyanza Sugar Company

SONY Sugar factory was established in 1976 with an objective of increasing national
Sugar production to reduce dependence on imp01tation, creating employment
opportunities and enhancing regional development.
Located in Rongo district in Nyanza province it lays 160 lan South ofK.isumu city. It is a
key player in the sugar sub-sector serving over 30,000 farmers spread in the 7 districts of:
Homabay, Gucha, Transmara, Kuria, Migori, Uriri and Rongo.
It has the following depaitments:
Agriculture
Manufacturing
General Administration
Finance
Marketing and business development
Human resource, ICT, Company secretariat and Procurement
The processes involved include: Production, cane development and packaging process.

Conflict
Robin S. (1988) defined conflict as the processes that begins when one paity perceives
that another party has negatively affected or is about to negatively affect something that

1
the first party cares about. It refers to antagonistic interaction in which one party attempts
to block the interactions, intentions 'crosses over' to become interplay. It encompasses
the wide range of conflicts over interpretation of facts, disagreements based on
behavioral expectation.
Generally conflict is the disagreement between two parties which may bring either
positive or negative outcomes
Conflict is the perceived incompatible difference that results into interference or
opposition (Robins & Mary 1999).

Performance
Perfonnance is the act of achievement. Ivanchevic (2001) defines performance as the
extent to which performance to which duty is efficiently and effectively executed.
Perfmmance is the process of canying out duties, responsibilities and tasks in order to
achieve desired goals. The working definition of this duty will be adopted by Daft L.R
(1991) performance is the organizations ability to attain its goals by using resources in an
efficient and effective maimer.
According to Williams (2002) perfonnance refers to the degree of accomplishment of the
tasks that make up an employees job. Armstrong (2003) perfonnance means both
behavioral and results, behaviors emanate from the performer and transform performance
from abstraction to action. Not just the instrnments for results, behavior are also
outcomes in their own right- the product of mental and physical effort applied to tasks

1.2 Statement of the problem

Despite the emphasis put by SONY Sugar Company's management, the organization still
faced conflicts which had negative impacts to its performance. Dysfunctional conflicts
have led to poor relationship amongst employees, lack of trnst, poor coordination of
activities, insecurities at the work place. This had in tum reduced commitment and moral
of employees leading to poor performance and high labour turnover.

2
1.3 Purpose of the study
The purpose of the study was to establish the impact of conflicts on the employee
performance in SONY Sugar Company in South Nyanza Kenya.

1.4 Specific objectives of the study

The following were the objectives under which the research was to be carried out
• To establish the relationship between conflict and perfonnance of the employees
of SONY Sugar Company
• To examine the effects of conflicts on employees performance in SONY Sugar
company
• To find out what type of conflicts that exist and their possible solutions in SONY
Sugar Company

1.5 Research questions

• What was the relationship between conflicts and employee performance at SONY
Sugar Company in South Nyanza Kenya?
• How did conflicts affect perfonnance of the employees at SONY Sugar Company
in South Nyanza Sugar Company Kenya?
• What types of conflicts existed and their possible solutions at SONY Sugar
Company in South Nyanza Kenya?

1.6 Scope of the study

The study was carried out at SONY Sugar company in south Nyanza located 160Km of
Kisumu in Nyanza province Kenya. The researcher had chosen to use the company due to
its nearness to residential area for easy study and data collection of data.

1.7 Significance of the study

• The study was to be useful in finding how best the management of SONY Sugar
Company can manage conflicts effectively for the better perfonnance of their
employees.

3
 • To provide up to date literature for academicians and managers in the depaiiment
of Human resource management and the findings may be used for future reference
• The study was also to be useful to the management of SONY Sugar Company in
providing effective resolution to conflict for better perfonnance.
• The study was also to be used by other researchers, Kampala international
University students, lecturers and administrators for fu1iher reference on conflicts.

Figure 1
1.8 Conceptual framework

Positive impacts

Independent variables • Increase in Dependent variables

performance
• Emphasis on
loyalty
• High
commitment

Conflict Performance

Negative impacts
• Lack of
trust
• poor
performan
ce
• reduced
morale
• reduced
ability to
innovate

Source: Armstrong (200 I)

4
 CHAPTER TWO
2.0 Introduction
This chapter was about the ideas and views of other people in relation to the topic
identified by the researcher. The literature was vital and enables the researcher to
investigate f\niher on the topic. The literature was mainly taken from other sources of
data.

2.1 Types of conflicts

There are two types of conflicts
• Functional conflicts
• Dysfunctional conflicts

2.1.1 Functional conflicts

It is a confrontation between groups that enhance and benefits the organizations
performance. (Ivanchevic &Matteson, I 999)
The modem view of conflict that holds that conflicts may in fact under certain situations
be necessary for performance effectiveness because harmonious peaceful and cooperative
groups can become static and un innovative and some level of conflicts is needed to keep
the group alive and creative.

2.1.2 Dysfunctional conflicts

This type of conflict occurs when ones effmis are frnstrated while fighting for
organizational good. This kind of conflict negatively affects the performance of both the
employees and organization as a whole. (Robbins &Mary 1999)

Conflict can fu1iher be classified into the following groups

Conflicts between individuals
This is the role conflict/mind conflict, for example the manager having a conflict with
another manager in another branch because they were fighting to win the love of the
same girl.

5
Interpersonal conflict
This occurs between two or more people and precisely the commonest in the society.
(Griffin W. 2002, pg 600)

1. Conflict between groups

It is conflict between people in a group. For example rivalry is rising because of
political differences, a group that has supporters on a party having rivalry with the
other because of political differences. (Griffin W. 2002).
2. Inter group conflicts
These are conflicts between two or more groups mainly because of goal difference.
(Griffin 2002, page 601).
3. Inter organizational conflict
This is a disagreement between organizations. For example organizations within the same
industry producing the same products and aiming at the same market will have conflict
when trying to out do each other. (Griffin W.)

2.2 Relationships between conflicts and employee performance

According to Griffin R. (2002, pg 600) if there is absolutely no conflict in the group or
organization, its members may become complacement and apathetic; as a result the group
or the organizational performance and innovation may begin to suffer. A moderate level
of conflict among group organizational members on the other hand can spark motivation,
creativity and innovation. Conflict, though can produce undesirable results such as
hostility and lack of cooperation which lowers performance. The key for managers is to
find and maintain the optimal amount of conflict that foster perfonnance.

6
Figure 2

Perfonnance optimal level of conflict

l
j
j
Low Conflict High

Source (Stephen 2003)

2.3 SCHOOL OF THOUGHTS ON CONLICT

These were ideas that people have come up with in relation to conflicts
According to Robbin & Nancy 2003, there are three schools of thoughts:
a. Traditional view
b. Human relation view
c. Interractionist view

7
2.3.1 Traditional view
According to Fieldman & Arnold 1983, Conflict was a view that existed and prevailed in
1930s and 1940s. It assnmed that conflict was bad and caused harm, it was negatively
viewed and was used synonymously with such terms as violence, destruction and
irrationality to reinforce its negative connotation. Conflict as was viewed as harmful was
avoided at all costs. This is because it was seen as dysfunctional and resulted because of
poor communication channels, lack of trust, openness and failure of managers to be
responsive to the needs and aspiration of their employees.

2.3.2 The Human Relations View

Under this it was argued that conflict was a natural occurrence in all groups and
organization. Since conflict was inevitable, the Human Relations School advocated
acceptance of conflicts. Proponents rationalized its existence, that it cannot be eliminated
and there are at times when conflict may benefit a group's performance. This school of
thought dominates conflict theory from the late 1940s through the mid 1970s.

2.3.3 The Interactionist View

According to Garry John 1996, it is a belief that conflict is not only a positive force in a
group but that it is absolutely necessary for a group to perform effectively.
The interactionist approach encourages conflict on the grounds that are harmonious,
peaceful and cooperative group is prone to becoming static, apathetic and non responsive
to needs for change and innovation. The approach encourages group leaders to maintain
an on going minimum level of conflict-enough to keep the group viable, self critical and
creative.

2.4 Effects of conflict on employee performance

Conflict has both the positive and negative impacts on perfo1mance of the organization as
argued by Chandan (2002)

8
Positive impacts include the following:
Helps in analytical thinking
Conflicts may induce challenge to such views, opinions, rnles, policies, goals and plans
that require critical analysis in organization. This therefore results into increase in
productivity.
Promotes healthy competition
Conflicts which are considerable leads to input of more eff01i in work by individuals at
work place hence leading to more productivity thus healthy growth.
Increased group cohesiveness
It is clear that when groups engage in a conflict or perceived external threats it usually
results into group members putting a side individual differences and closing ranks. This
increases cohesion which is necessary to mobilize group resources in dealing with the
enemy and tends to result in the suppression of internal disagreement
Focus on activity
When a group is in conflict, its members usually emphasize doing what the group does
and doing it very well. The group becomes more task oriented. Tolerance for members
who goof off low and there is less concern for individual satisfaction.
Emphasis on loyalty
The tendency of groups to increase cohesiveness suggests that conformity to group nonns
becomes more important in conflict situation. Group goals take precedence over
individual's satisfaction as members are expected to demonstrate their loyalty.

The negative impacts include the following:

Rise in Autocratic leadership
Democratic methods of leadership are likely to become less popular with the existence of
conflicts. Managers tends to adopt dictatorship style of leadership to manage the
organization (Michael Armstrong 2003)

9
Distorted perception
Group members develop stronger opinions of the importance of the units. Each group
sees itself as supe1ior in performance to the other and is the most impmiant to the
survival of the organization than other groups. (Armstrong 2003)

Negative stereotype
As conflict increases and perception become more distmied the entire negative stereotype
that may have ever existed and reinforced. When negative stereotype is a factor in a
conflict, the members of the group sees less difference between the groups than actually
exist. (Annstrong 2003)

High labor turnover

With conflict in the organization, employees tend to move out in search for peaceful
working environment hence the organization losses skilled and experienced personnel.
(A1mstrong 2003)
Poor communication
Communication between the conflicting groups usually breaks down. This can be
extremely dysfunctional especially where sequential interdependence exists between
gronps. The decision making process can be disrupted and the cnstomers or other s whom
the organization serves to be affected. (Armstrong 2003)
Destruction of property
With conflicts in the organization, violence is rampant due to strikes and demonstrations
which can result into destruction which can result into destruction of an organization's
property. (Annstrong 2003)
Bad reputation
Organization with much conflict develop poor public image with time. The external
stakeholders will eventually hear of the conflicts and this will make the organization
loose its customers and also have a bad image. (Gomez & Balkin 1995)

10
2.5 Causes of conflicts
The following are the causes of conflicts as discussed by Daft (1999)

Lack/Minimum resources
Resources may include finances, raw materials and hwnan resources. In their desire to
achieve goals, individuals may wish to increase their resources, and as they try to
compete for the scarce resources to meet organizations target conflicts eventually occur.
Jurisdictions ambiguities
Conflicts also emerge when job boundaries and responsibilities are not well defined and
unpredictable. People should know what is exactly expected of them and when this is not
clearly brought to light by the management or the supervisors, employees may disagree
about who has the responsibility for a specific task or who has a claim of resources.
Size of the organization
The larger the size of the organization, the difficult the integration of its department
towards the achievement on the set objectives thereby making the members of the
organization to be redundant. At the same time decision making is difficult thus leading
to conflicts.
Communication breakdown
Co1mnunication is sometimes faulty. The potential for communication breakdown is even
greater with vi1tual teams and goal teams made up of members from different countries
and culture. Poor communication result in misunderstanding of the other people and
teams. (Gomez & Balkin 1995)
Personality clashes
Power and status difference occur when one aiiy has disputable influence over another.
Low self esteemed individuals or depaiiments may resist their low status. People may
engage in conflict to increase their power and influence in the team or organization.
(Gomez &Balkin)
Goal differences
Conflicts often occur simply because people are pursumg conflicting goals. Goal
differences are natural in organizations. Individuals target may put hem in conflict with
one another or with the managers. (Gomez & Balkin)

11
2.6 STYLES OF HANDLING CONFLICTS
The competing style
This reflects assertiveness to get one away. It should be used when quick decisive action
is vital on important issues or unpopular actions, such as during emergencies or urgent
cost cutting. (Subba Rao2009)
Avoiding style
Reflects neither asse1iiveness nor cooperativeness style. It is appropriate when an issue is
trivial, when there is no chance of winning and the involved pmiies delay to gather more·
information about the conflict. (Subba Rao)
Compromising style
This style reflects a moderate amount of both asse1iiveness and cooperativeness style. It
is appropriate when the goals on both sides are equally impmiant. When opponents have
equal power m1d both sides wants to split the difference or when people need to arrive to
temporary or expedient solutions under time pressure. (Subba Rao)
The collaborating style
This refers to both a high degree of asse1iiveness and cooperativeness. It is a situation
where the pa1iies to conflict each desire to satisfy fully the concerns of all pa1iies.
(Subba Rao)
Arbitration
The management can employ a third pmiy who is not biased to solve conflict midst
conflicting pmiies. The arbitrator must be accepted by the two paiiies who are at conflict
to solve the dispnte. (Subba Rao)

12
 CHAPTER THREE
METHODOLOGY
3.0 Introduction
This chapter described the methods and techniques which were to be applicable in the
data collection.

3.1 Research design

The research included both qualitative and quantitative methods where qualitative
method gave the attitude of respondents on the effects of conflicts on employee
performance while the qualitative method gave numerical data.

3.2 Research site

It was conducted at SONY Sugar Company South Nyanza Kenya.

3.3 Study population

SONY Sugar Company has about 1500 employees working on contract and about 700
employees working on permanent employment basis, both female and male from
different departments ranging from Agriculture, Manufacturing, Finance, Human
Resource, Company secretariat, Procurement, ICT and Marketing department.

3.4 Sample size

From each department respondents were picked according to the number of employees
smmning up to 180 respondents out of which some were administrators and the others
employees from the company of SONY Sugar Kenya.

3.5 Sampling design

The researcher used purposive observation, questiomiaires and 'man on the street'
techniques to get information from the respondents in the area of study.

13
3.6 Data collection instrument
Both primary and secondary data collection methods were used, the primary method
involved going to the field while secondary included information from the internet,
journals, textbooks, and even magazines.

The primary data included the following:

1. The researcher used on ground observation of the coexistence status of
interpersonal relationship between workers in the organization
2. Questionnaires with both open and closed questions were used to collect
information from respondents.
3. Interviews which gathered information about the cmTent conflicting emergence
between various respondents in the line of work.
4. Focused group discussions.
5. Documentation.

3.6.1 QUESTIONNAIRE
A questiomiaire by definition means a set of printed questions addressed by researcher to
the respondents for her or him to answer and after answering return them to the
researcher. They can be either open ended questions or closed ended. The open ended
questions helped in getting more infonnation from the respondents in their own view,
while closed ended were used to facilitate easy statistical data entry and analysis.
Alternatively the researcher used questi01111aires in personal interviews in which it was
called 'interview guide' the designed questiommires were relevant to the study.

3.6.2Interviews
The researcher used the interview guide to interview the employees at SONY Sugar
Company. The interviews consisted of both stmctured and unstructured questions, they
were centered on the influence of conflict on employee performance. Similarly written
repo1is, speeches and minutes of the company were analyzed to acquaint the researcher
with the circumstances of the company.

14
3.6.3 Observation
In this method the researcher went to the area of interest and analyzed the events as they
happen. This enabled access the validity and reliability of the data as given by the
respondents.

Secondary data
Consisted of acquisition of information from the trade umons, private employers,
organizations, government an<l other interested groups.

Research procedures
Before can-ying out the research, the group of researchers presented the idea to the
management of Kampala international University School of Business and management
office to acquire a letter to address the Company of SONY Sugar.

3. 7 Data analysis
Both qualitative and quantitative data methods were used. Qualitative data included
number of conflicts received by the Human Resource department after a certain given
pe1iod ohime and the average number of employees conflicting.
Number of conflicts the organization had encountered with the organization. Qualitative
methods led to production ofreports from the different interest groups.

3.8 Research limitation

Difficulties in getting respondents on time was encountered, impmtant documents as
secondary source of info1mation were not found or traced for reasons that the appropriate
persons to contact were not available.
Respondents demanded payment for either being interviewed or for having to participate
in group discussions.
Local traveling was a challenging factor due to the traffic jam on the roads heading to the
study area. This hindered prompt research since the only chance to interview most of the
respondents was after working hours and they by that time they were tired and wanted to
leave for home

15
 CHAPTER FOUR
PRESENTATION AND DATA ANALYSIS
4.0 Introduction
This is the chapter of presentation and analysis of data related to the impacts of conflicts
on employee performance in South Nyanza Sugar Company. The research mainly
concentrated in the establishment of the relationship between conflict and employee
performance, effects of conflicts and employee perfo1mance and finally to find out what
type of conflicts existed in SONY Sugar Company and their possible solntions

Table 1: Classification of respondents according to age

Age of respondents (yrs) Frequency (f) Percentage(%)
18-25 30 16.67
26-31 60 33.33
32-41 55 30.56
42-60 35 19.44

Total 180 100

Source: Questionnaire output

The findings indicate that most of the respondents 60(33.33%) were of average age of
between 26-31 years, few were of the ages of 18-25 years and 42-60 years which is
evident to 16.67% and 19.44% respectively. Employees who were in the age bracket of
32-41 were represented by 30.56% which is a closer percentage to those of 26-3 lyears.
The purpose of asking the ages of the respondents was to determine which class of
sample provided a larger number of respondents and also to detennine the age difference
in the organization and which age bracket is common which was established.

16
Figure 3: Represeuted in the graph as:

80
60 + - - - -
40 +----

20
0
18-25 26-31 32-41 42-60

Table 2: Classification of respondents according to sex

Sex Frequency(f) Percentage(%)
Male 100 44.44
Female 80 55.56
Total 180 100
Source: Questionnaire output
This is because a larger number of employees at SONY Sugar are male that implies that
there is no gender balance.
Figure 4: Represented in the graph as

120 ~ - - - - - - - - -
100
80
60
40
20
0

17
Table 3: Classification of respondents according to their education level
Level Frequency (f) Percentage
Primary 20 11.11
Secondary 24 13.33
Diploma 62 34.44
Degree 49 27.22
Masters 25 13.89
Total 180 100
Source: Ques!lonnaire output
Figure 5 As represented in the graph

70 . - - - - - - - - - - - - - - - -
60
50
40
30
20
10
0

The findings indicate that most of the respondents are literate. The purpose of asking
their educational level was to find out whether they would give the required information
on the effects of conflicts on the performance of employees at SONY Sugar Company.

4.1 Relationship between conflict and employee performance

This was the first objective of the study which was meant to investigate the impacts of
conflicts on employee performance at SONY Sugar Company. The findings were based
on the research questions for this specific objective; How to establish the relationship
between conflict and employee performance in SONY Sugar Company. In order to
achieve this objective, the respondents were asked if they experience conflicts, the kind
and how it has affected their perfonnance.

18
Table 4. Various views if employees of SONY Sugar Compauy experienced conflicts
in their various departments

Question Employee response

Do you experience YES NO Total
conflict in your
department?
Frequency 150 30 180
Percentage 83.33 16.67 100
Source: Quest10nnaJre output

The results in table 4.1 A depicts that 150 (83.33%) employees accepted that they do face
conflicts in their depmiments while 30 (16.67%) said they do not experience conflicts in
their depatiments. The results above thus show that SONY Sugar Company experience a
high level of conflicts in their departments as characterized by the majority who said
YES.
The frequent reasons the respondents attached to the reasons as to why they experienced
conflicts were unfair policies, role ambiguity, poor communication and low wages and
salaries. They also confessed that the conflicts affected both male and female employees
from the highest hierarchical level to the lowest level i1Tespective of age, marital status
and educational level. "Modern view of conflict holds that conflicts may in fact under
some situations be necessary for performance effectiveness because harmonious, static
and peaceful groups can become un innovative and some level of conflicts is needed to
keep the group alive and creative." (Ivanchevic & Matteson 1999)

19
Table 5: Representing the employees' response on whether they experience conflict
in every department
Departments Yes Percentage No Percentage
Agiiculture 20 13.33 3 10
Manufacturing 35 23.33 7 23.33
General Admin 15 10 4 13.33
Finance 10 6.67 2 6.67
Human 25 16.67 5 16.67
resource
ICT 15 10 2 6.67
Company 10 6.67 3 10
secretariat
Procurement 20 13.33 4 13.33
Total 150 100 30 100
Source: Quest10nnmre output

From the above source it is observed that conflict was mostly experienced in the
manufacturing department represented by a 23.33% followed by the Human Resource
department represented by a 16.67%. The others though followed at a closer range with
finance and the company secretariat departments experiencing the least percentage of
conflicts.
The above data was again analyzed in relation to their level of education.

20
Table 6 Representing the employees' response (YES) above in relation to their level
of education
Do you Response Level of education of the representation of
experience respondents from all the departments
conflicts in your
department
Departments YES Masters Degree Diploma Secondary Primary
Agriculture 20 2 4 10 3 1
Manufacturing 35 3 6 20 4 2
General Admin 15 4 8 3 0 0
Finance 10 2 5 3 0 0
Human resource 25 3 10 8 3 1
ICT 15 2 6 7 0 0
Company 10 I 2 4 2 1

secretariat
Procurement 20 2 7 7 2 2
Total 150 19 48 62 14 7
Source: Questionnaire output

From the above data two conclusions can be drawn that is conflicts are recognized in the
organization by those of higher level of education, this is evident by the low turnout of
the lowly educated to accept that conflicts exist as represented by the number of
respondents or most of the conflicts are experience by the highly educated people as the
larger percentage is represented by the people from the degree and diploma level.

21
7 The respondents were asked the type of conflicts they mostly experience
Question [Response of employees
What type of Functional Dysfunctional Both Total
conflict do you
experience in your
department
Frequency (t) 40 120 20 180
Percentage(%) 22.22 66.67 11.11 100
Source: Questionnaire output

The above findings indicated that dysfunctional conflicts were highly experienced in the
various departments of SONY Sugar Company as shown by the high percentage of
respondents registering that i.e.120 (66.67%) thus the reduced level of performance and
productivity in the organization. Dysfunctional conflict if not managed can result into
poor communication, destrnction of property, poor labor relations and all these rotate
under one umbrella that will definitely lead to poor employee performance in SONY
Sugar Company. Functional conflicts on the other hand are experienced at a lower level
registered at 40 (22.22%). SONY Sugar Company should endeavor to improve functional
conflicts that will lead to increased productivity hence an increase in performance.
Robbins P.S 1998 argued that conflicts are constructive and functional when it improves
performance. However it is hard to visualize a situation in which open or violent
aggression could be functional. But there are a number of instances in which it is possible
to envision how lower moderate levels of conflict could improve the effectiveness of an
individual or a group, this is because people often find it difficult to think of instances in
which conflict can be constrnctive.

4.2 Effects of conflicts on employee performance

This was the second objective of the study which was meant to investigate the impacts of
conflicts on employee performance in SONY Sugar Company. The findings were based
on research question for this specific objective: How does conflict affect employee
perfonnance?

22
It is then obvious that the effects of dysfunctional conflicts led to decrease in
perfonnance hence low productivity. However the researcher found out that SONY Sugar
Company had not put into consideration conflict as a major factor that could affect
employees' perf01mance.

Table 8 Respondents were asked how conflict affected their performance

Question Employees response
How has conflict Increased Decreased Total
affected your performance performance
performance
Frequency (f) 20 160 180
Percentage(%) 11.11 88.89 100
Source: Quest10nna11"e output

According to the employees response shown above, effects of conflict leads to a decrease
in perfonnance as indicated by a larger percentage 88.89%, it can thus be deduced that
SONY Sugar Company experiences a higher level of dysfunctional conflict that is
resuliing to the decreased performance other than the functional conflict which is capable
of boosting the organizational output and the employee performance as it is represented
by a smaller percentage of 11.11 %.

4.3 Types of conflicts and their possible solution in SONY Sugar Company
Types of conflicts and their possible solutions at SONY Sugar Company
This was the third and last objective of the study which was meant to investigate the
impacts of conflicts on employee performance in SONY Sugar Company. The findings
were based on research questions for the specific objective: What types of conflicts exist
and their possible solutions in SONY Sugar Company. To answer this question the
respondents were asked how long conflicts took to get resolved, how often conflicts were
reported in the organization, to whom the conflicts were repo1ted to, difficulties faced in
conflict resolution and finally their opinion on the current conflict resolution methods in
the organization.

23
From the past info1mation given by the employees in SONY Sugar Company, both
functional and dysfunctional is experienced in the organization. However the
dysfunctional conflict is on the lead by 130 employees with 86.67% than the 20
employees of 13.33% who confomed that also functional conflict was being faced. Only
10 employees confessed both functional and dysfunctional conflicts were experienced.

Table 9 The respondents were asked how long conflicts took to be resolved in their
departments
Question Employee response
After how Instantly Daily Monthly None Total
long is
conflict
settled/solved
Ill your
department
Frequency(f) 10 25 45 70 150
Percentage 6.67 16.67 30 46.67 100
(%)
Source: Quest101maire output
Figure 6
As represented in the pie chart:

Ifill instantly
Iii Daily
Monthly
Bill None

From the above it is evident that most conflicts are not solved at all as represented by the
larger number

24
of employees 70 (46.67%), this is a good reason as to why SONY Sugar Company
autho1ity experiences high levels of conflicts. Some of the reasons attached along their
responses were inequality and disc1imination in the organization. Cases that involve
employees from different nationalities with a Kenyan employee ended up getting little
attention on the other end cases that involved just Kenyans were given some attention.
They also confessed that repmting of conflicts to the concerned individuals did not mean
getting a solution to the conflict, a good number of conflicts reported daily, but the
managers failed to solve them, conflicts solved instantly were mainly done by the
employees among themselves but rarely were the conflicts between management and
employees resolved instantly and this increased conflict. On the other hand the
conflicting parties the conflicting paities do not reach mutual agreement because
adequate time is not given to define the roots of the conflict and proper measures put in
place to avoid its re-occurrences and this greatly affected employee's performance.

Table 10 The respondents were asked how often they reported any conflict
occurrence in the organization
Question Employee response
How often do Daily I Weekly Monthly Rarely Total
I
you repo1t any
conflict
occun-ence in the
organization?
Frequency(£) 5 15 40 120 180
Percentage (%) 2.78 8.33 22.22 66.67 .
100
Source: Quest10nna1re output
From the above information, the response shows that conflicts was rarely repmted as
indicated by the high percentage 66.67%, while the employees who said they repmted
conflicts monthly scored a percentage of 22.22%, this is then enough to suppo1t the high
level of conflicts at SONY Sugar Company. The others show a smaller percentage that is
weekly and monthly to mean employees who experienced conflicts or are faced with

25
conflicts took a long period to rep01t the conflicts or never repo1ted them at all. But
remember "prolonged conflicts can be very disastrous to an organization" Daft (1999).

Figure 7
As represented in the pie chart:

Percentage
ill Daily

ill Weekly

Monthly

12 Rarely

Table 11 Respondents were asked how conflict were resolved in SONY Sugar
Company
Question Conflict resolution styles
How are Avoiding Compromising Competing Arbitration Collaboration
conflicts
resolved ll1

the
organization
Frequency(f) 90 30 15 10 35
Percentage 50 16.67 8.33 5.56 19.44
(%)

Source: Questionnaire output

From the table above, the given conflict resolution styles are the only mentioned in the
employees response. Their response shows that, competing style, "reflects asse1tiveness
to get one away and normally used when quick decisive action is vital on imp01tant
issues or unpopular actions, such as during emergencies or urgent cost cutting." (Mc
Shane & Ann, 2003).Only 15(8.33%) indicated that competing style was sometimes used.

26
According to Daft, (2002), avoiding style reflects neither assertiveness nor
cooperativeness. It is approp1iate when an issue is trivial, when there is no chance of
winning and the involved parties delay to gather more information about the conflict.
Avoiding style-90(50%) was frequent conflict resolution style used in SONY Sugar
Company. The employees stressed that even conflicts that could impose negative impacts
on employees were avoided and thus the parties involved are never satisfied and this led
to further re-occun-ence of the conflict.
Compromising style reflects a moderate amount of both assertiveness and
cooperativeness style. It is appropriate when the goals on both sides are equally
important. When opponents have equal power and both sides want to split the differences
or when people need to arTive to temporary or expedient solutions under time pressure.
There is no clear wiimer or loser and 30(16.67%) was also used at a moderate level.
Represented in the pie chart as:
Figure 8

!El Avoiding

!ill Compromisin
g
Competing

@ll Arbitrction

EE ColluborQtion

Table 12 Respondents were asked to whom they report the departmental conflicts
Question
I
Whom do you Immediate Departmental HR Depariment None
report supervisor Head
departmental
conflicts to?
Frequency( f) 70 35 15 60
Percentage (%) 38.89 19.44 8.33 33.33
Source: Questionnaire output

27
From the table above it is evident that number of employees who report departmental
conflicts to their immediate supervisors-70(38.89%) is almost equal to the number that
doesn't report conflicts at all. However, these employees who never repo1t conflicts at all
confessed that it was better if they ignored the conflicts at their level than repmting and
no effmt made to resolve them by their superiors. Only 35 employees repmted conflicts
to the depaitmental heads but they too confirmed that in most cases their departmental
heads would refer them to their immediate supervisors who never acted at all. The 15
employees of 8.33% who rep01ted to the Human Resource depa1tment claimed that the
Human Resource manager lacked listening skills and would nonnally dismiss them
without letting them air their frnstrations.

Figure 9
As represented in the pie chart:

mu lrrnr1ccl1atc
--~
superJisor
113 DPprlrl'lrlP"ll;il
head
HR Dq1art111cnt

!21None

4.3.5 Respondents were asked some of the difficulties faced in conflict resolution
This question was tricky to respondents. However, some of the challenges they put across
were time, ideological differences and lack of problem solving and conflict resolution
skills. Some of the reasons they attached to these challenges were; most of the
conflict were being resolved with the help of the management, little time was
allocated for conflict resolution and this left the conflicting patties at logger heads
with each other because the problem was paitially solved with no mutual
agreement reached. Ideological conflicts rose when different people had had different
styles _under which they wanted the conflict solved since the management had
poor, unreliable and inconsistent way of solving conflicts. Their superiors who

28
helped in the conflict resolution lacked problem solving and conflict resolution
skills to cairy out the activity. They are not equipped with factual lmowledge on
how to give guidance during this time and this brought no success.

4.3.6 Respondents views on the conflict resolution methods used by the management
or their department
Out of the 180 respondents to be interviewed about 90% commented that the conflict
resolution method used in SONY Sugar Company were pathetic and poor making
the organization to lag behind in perfonnance. Some of the employees stressed that
even serious matters that needed the attention of the superiors were neglected and
left unsolved. This saw avoiding style of conflict resolution to dominate the
organization whereas there are a quite number of strategies and styles that could
help the conflicting partners come to a consensus.

29
 CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.0 Introduction
This chapter mainly deals with summary, conclusions and recommendations related to
the impacts of conflict on employee performance in SONY Sugar Company drawn from
the findings and analysis made after conducting the study.

5.1 Summary of the research

When conducting the study, the research questions and objectives were aimed at
explaining whether impacts of conflict could have on employee performance.
One of the three major objectives of the study identified in chapter one was to establish
the relationship between conflict and employee performance in SONY Sugar Company.
The study condncted revealed that conflict had a great impact on employee performance
it was demonstrated that among employees performance tend to improve more when
functional conflict occurs among members than when there is fairly close agreement, the
average improvement among the high conflict groups is always greater than that of those
employees characterized by iow conflict conditions. It was evident from the response
from employees that dysfunctional conflict if not managed could result into poor
performance thus low productivity. A moderate level of conflict among employees on the
other hand can spark motivation, creativity and innovation. Conflict, though, when it is
dysfunctional can produce undesirable results such as hostility and lack of cooperation
which lowers performance. SONY Sugar Company should find and maintain the optimal
amount of conflict that foster performance.

The second objective was to examine the effects of conflict on employee performance in
SONY Sugar Company. It is obvious that the effects of dysfunctional conflict leads to
decrease in performance hence low productivity. However, SONY Sugar Company had
not put conflict into consideration as one of the factors that could affect employee
performance in the organization.

30
The third and last objective of the study was to find out what types of conflicts exists and
their possible solution in SONY Sugar Company. According to the answers received, it
revealed that employees suffered more dysfunctional conflict than functional conflict in
SONY Sugar Company. Most respondents expressed that if SONY Sugar Company had a
proper conflict resolution policy which could help reduce and eliminate conflict, then
they would be motivated hence increase performance of the organization.

This study was therefore successful in meeting the objective of providing further
information to researchers in addition to effects of conflicts in an organization.

5.2 Conclusions
In accordance to the first objective of the study which was to establish the relationship
between conflict and employee performance, the researcher concluded that indeed
conflicts had both positive impacts when it is functional on employee perfo1mance and
negative impacts when it is dysfunctional on the employee perfonnance. This is contrary
to what exists in SONY Sugar Company which is dominated by dysfunctional conflicts.
A moderate level of conflicts on employees on the other hand can spark motivation,
creativity and innovation. Conflicts though when dysfunctional can produce undesirable
results such as hostility and lack of cooperation which eventually lowers perfonnance.
SONY Sugar Company should find and maintain the optimal amow1t of conflict that
foster perfmmance.

The second research question which stated that: How does conflict affect performance of
employees at SONY Sugar Company, put forward the following conclusion. It is obvious
that effects of dysfunctional conflicts could result into negative impacts to the
organization and effects of functional conflicts could bring positive impacts that would
then spur organizational growth.

According to the respondents, SONY Sugar Company is experiencing a high level of

dysfunctional conflict characterized by the number 120 (66.67%) than functional conflict,
this has resulted to the poor performance of the company. The management of SONY

31
Sugar thus should look into it and see on how to strike a balance between functional and
dysfunctional conflicts to increase performance and productivity..

To find out what type of conflicts exist at SONY Sugar Company and their possible
solutions which was the third objective of the study, according to the respondents, it
revealed that employees suffered more of dysfunctional conflicts than the functional
conflicts. Most employees expressed that if the company had a proper conflict resolution
policy which could help reduce and eliminate conflicts, then they would be motivated to
work hence increase in performance leading to increased output

5.3 Recommendations
In accordance with the findings and conclusions of the study, the researcher finds it vital
to make the following recommendations which would help in bringing about positive
change in regards to employee performance in SONY Sugar Company.

Have proper and better conflict resolution systems. SONY Sugar Company should put up
a system which will put into consideration the type of conflict in situation. The
organization should realize the benefits of conflicts to the organization and try to
maintain a balance between the functional and dysfunctional conflicts since a moderate
level of conflicts is healthy to the organization.

Try to solve conflicts as they are repmied, the management of SONY Sugar Company
should not ignore conflicts because they have a great impact on employee performance.
The Human Resource manager should ensure that all depm1ments have their conflicts
solved as they are repo1ied.

Have a consistent system to manage and resolve conflict. Explain the conflict resolution
procedures to the employees for them to be aware of what order to follow when in a
conflict, the pa1iies involved for example the heads of departments and immediate
supervisors should also be aware of the procedures so that they can cooperate with the
management and help in the conflict resolution.

32
Train the departmental heads and the managers and even the supervisors on how best
conflicts should be addressed and resolved without causing more harm to the affected
parties. Conflicts can be effectively managed at an early stage, its roots well addressed to
avoid its reoccurrence than when the situation goes out of hand. Adoption of open door
system can help reduce conflicts.

5.4 Areas of further research

Employee performance being a wide and vital area in an organization, the researcher has
not exhausted and accurately looked at it, this is because of the limitations by the scope
of the study and the topic which was only focusing on effects of conflicts other than other
factors which affect employee perfonnance and therefore the areas below could wmrnnt
further research.

The above completed study mainly followed on the impacts of conflicts on employee
performance in SONY Sugar Company. However it was discovered that not only
conflicts could lead to poor employee performance at the company but also factors like;
Ergonomic factors at work, poor communication, poor management styles, inadequate
training and poor compensation, poor working environment but not narrowing it down to
conflict.

33
 REFERENCES
Aquitano N. J & Chase R. B. (1999). Fundamentals of Operation Management. USA
Irwin publishers
Chandan J. S (2002). Organization Behavior (2 nd edition). New Delhi Vikas Publishing
House PVT LTD

Daft L. R. (2002). Management (5 th edition). New York The Dryden press.

John M. Ivanchevich (2001). Human resource Management, (8 th edition).McGraw-Hill

Irwin.

Johns Gary (1996), Organization Behaviors Understanding Life at Work, (4th edition)
Haiper College USA.

Kathryn and David (1998). Management 3rd edition McGraw Hill New York

Luis- Gomez Mejia, David B. Balkin & Robe1i L. Candy (1995). Managing Human
Resources, Prentice Hall, Inc USA.

Michael Armstrong (2001). Human Resource Management Practice, (8 th edition). Kogan

Page limited.

Olive M. Mugenda & Abel G Mugenda (2003).Research Methods, African Centre for
Technology Studies, Nairobi

Ricky G. W (2003). Management (7"' edition). Boston Houghton Miffin Company.

Stephen P. Robbins & Mary Coutler (1999). Management, Prentice Hall New Jersey.

34
APPENDIX A: TIME SCHEDULED

TIME/PEEi OD ACTIVITY
October Topic identification
October-November Research proposal writing
December-January Data collection
January Data analysis
February Preparation of repmi and presentation

35
APPENDIX B: BUDGET ESTIMATE FOR THE STUDY

ITEM UNIT COST PER AMOUNT

UNIT(KSH) (KSH)

Stationery
Photocopy papers I realm 300.00 300.00
Pens 4 20.00 80.00
Rubber 1 20.00 20.00
Flash disk I 1,000.00 1000.00
SUBTOTAL 1,400.00
Local transport and
communication
Airtime 500.00 500.00 500.00
Local travel 700.00 700.00 700.00
SUBTOTAL 1,200.00
Typing and photocopying
Questionnaire 3pages 10 600.00
copies 20.00 400.00
Research proposal typing 20 pages 20.00 1000.00
Research report typing and 50 pages 20.00
Photocopy 600.00
Binding proposal 2 copies 300.00 900.00
Binding rep01t 3 copies 300.00

SUBTOTAL 3,500.00
Research assistant 1 500.00 500.00
Miscellaneous 500.00 500.00
SUBTOTAL 1,000.00
GRAND TOTAL 7,100.00

36
APPENDIX C: QUESTIONNAIRE FOR OPERATIONAL STAFF AND
EMPLOYEES
The questionnaire is designed to obtain data o "The effects of conflicts on employee
performance" which is being carried out as a partial fulfillment for the award of a
Bachelors Degree in Human Resource Management at Kampala International University.
This research is purely for academic purposes and the response obtained will be handled
confidentially.

Thank You.
SECTION A: Personal Information (tick where appropriate)
Age

□
18-25years

□
26-3 lyears

32-4lyears

42-60years

Sex

□
Female

□
Male

Marital status

□
Single
Ma1Tied

□
Occupation ...................................................................... .

37
Education level

□
Masters Degree

Diplomas LJ
Certificate

Secondary ~I- ~ Primary

SECTION B (Fill where appropriate)

I Do you face/experience disagreements in the organization?

Yes D No D
2. How often do you face disagreements?

Dailyi==l Weekly C:::J

Monthlyc::=J Rarely C:::J

3. What type of disagreements do you experience?

Good (constructive)C:::J Bad (destructive) C:::J both C:::J

4. What are the common causes of disagreements at your work place?

1.

11.

lll.

iv.
v.

38
5. How have the disagreements affected your perfonnance?

Increased pe1formance C:::J Decreased performance C:::J

6. How long does it take for a disagreement to get settled in the organization?

Instantly C:::J Daily C:::J

Monthly C:::J None C:::J

Others (specify) ............................................................... .

7. How are disagreements resolved in the organization?

I.

11.

111.

IV.

V.

8. To whom do you report the disagreements to?

Immediate supervisor C:::J

Departmental heads

Human resource department

Others (specify .................................................................. .

39
9. What are the difficulties faced in disagreement solving?

1.

ii.
iii.
IV.

V. . ............•.•..•...•.................................................

What is your view on the conflict resolution methods used by management?

THANK YOU SO MUCH FOR YOUR COOPERATION

40