1

EFFECT OF DISPUTE MANAGEMENT AND CULTURAL DIVERSITY ON

EMPLOYEE PERFORMANCE

BY

ADEROJU, OLUWASEUN ADEROJU

NOU144730809

MBA(HUMAN RESOURCES)

CHAPTER ONE

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INTRODUCTION

1.1 Background to the Study

The major aim of every organization is to exist for a long period of time and make

adequate profits during the period of their existence. Profit making by any organization

dependslargely on the management style adopted by an organization as well as the way their

employees are being managed. Good management style will not bring about job

satisfactionbutrather reduces conflict among employees to a minimal level. Conflict in their

daily lives is something fundamental and essential. Organizational Conflict has power to

establish staff performance, because the variables change simultaneously and dynamically.

Here, conflict is a natural process that occurs within an organization or community. Human

resource management is seen as line manager’s responsibility in many organizations.

Managers have to deal with different participants (subordinate, supervisor) that often have

different agendas, values, perspectives and objectives. Organizational conflict is interaction

between two or more parties each other that interconnected and interdependent, but separated

by goal difference.

Conflict among employees in an organization is unavoidable. If it is managed

properly, it will bring catalyst for change and can have a positive impact on employee

satisfaction and performance of the organization. Similarly, unmanaged conflict negatively

impacts both employee satisfaction and job performance. When organizational leaders ignore

workplace conflict, they send a message that unsatisfactory job performance and

inappropriate behavior are acceptable. Awan and Anjum (2015) noted that when conflict is

properly managed it will promote open communication, collaborative decision making and

timely conflict resolution in any level of human interactions. Open communication and

collaboration enhance the flow of new ideas and strengthen work relationship, which can

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have a positive effect on employee morale. Constant report and timely management of

conflict has the capacity of improving employee satisfaction and job performance.

Awan and Anjum (2015) argue that a negative work environment that does not

promote conflict resolution can result in poor employee behavior and job performance. When

conflict is not adequately managed, it makes communication process more ambiguous and

badly misunderstood and poor behavior among staff. Poor behavior on the part of one

employee has the power to affect overall employee morale, which results in lower

productivity. According to Dana (2000), “conflict is not just an annoyance. It costs money

and those costs can be calculated, in terms of wasted time, bad decision, lost employees.” In

the health care industry, patients’ health and even their lives can be affected by unmanaged

conflict. Awan and Ibrahim (2015) contend that if the individuals do not have the

communication or interpersonal skills to resolve their disputes, the conflict can grow and

spread to others, eventually affecting their job performance, which, in turn, affects the job

satisfaction of others, as well in addition to the staff not having the communication skills to

address their disputes, their leaders often lack the necessary skills to be effective in conflict

resolution. Once human resources personnel are involved, the process becomes punitive and

results in disciplinary action, which contributes to an even greater reduction in employee

morale and employee satisfaction.

Additionally, in any organization, there are alwaysvarious positions and jobs. People

in these positions possess entirely different aims, perceptions, goals, thought and concerns. It

is difficult to conceptualize society or an organization without inherent differences and

contradictions and these leads to conflict. In organization a serious problem can be conflicts

that are very serious. This is the bad practice that will be impossible for the workers to at the

same place for work. Awan and Ahson (2015) were of the opinion that conflict is a natural

occurrence and inevitable aspect of people with common goals and should therefore be

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managed in a level where it will not hinder the activities of the organization towards the

attainment of its goals.

Awan et al (2015) urged that conflict may also be beneficial to the organization where

it brings about radical change in the organizational power structure, current interaction

pattern and entrenched attitude and also can lead to increase in productivity. While some

conflicts are functional others are not. It also affects the organization in a negative way when

it is associated with employee dissatisfaction, insubordination, decreased productivity, leads

to economic loss. It is the management major responsibility to device strategies in bringing

down conflict as low as possible, which will enable the organization to still function to

succeed (Robbins &Sanghi, 2006) against this background the study was being carried out on

the negative effect of conflict.

Conflict management is all about how well the problems are addressed (and solved).

It is very crucial in this present world. Today, there are many organisations who reveal that

their human resources are their most paramount assets and it is no more human resources but

Human Capital. Therefore, it is necessary to verify the authenticity of the statements. This

can be done by measuring how faster the employees problems are addressed and solved. If it

is done faster, then it can be concluded by saying that the employee concern is significantly

present in the organization.

The conflict of the employees are related to the contract, work rule or regulation,

policy or procedure, health and safety regulation, past practice, changing the cultural norms

unilaterally, individual victimization, wage, bonus, etc. Here, the attitude on the part of

management in their effort to understand the problems of employees and resolve the issues

amicably have better probability to maintain a culture of high performance. Managers must

be orientated on the importance of the conflict process and their role in maintaining

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favourable relations with the union. Effective grievance handling is an essential part of

cultivating good employee relations and running a fair, successful, and productive workplace.

Akanji (2005) clearly stated that properly managed conflict promotes a good

performance, while improperly managed conflict brings about an intense work environment

that leads to dislocation and polarization of the entire group with reduction in productivity

and job performance. This is suggestive that a well-managed conflict aims at the

improvement of organizations for the purpose of stimulating performance in the work

situation. Good conflict management strategies expose weaknesses in the organizational

decision-making which may ginger the organisation to effect changes and search for positive

solutions. Hence, management are duty bound to resolve conflict properly for the sake of

increasing organizational performance, because the outcome of such action will result in

good communication, time management, good cooperation and increase corporate

productivity (Obasan, 2011).

With the permanent nature of conflict in work-relations, high performance

organizations will be those that may constantly develop the appropriate methods of managing

conflict to achieve set-standards and goals. As is now established, the Nigerian organizations

have for a long time been concerned with the effect of conflict management on business

performance in the country. However, empirical validation of findings across industries is

very limited at best. The available few studies within the country have concentrated mainly

on service and construction industries. Empirical research efforts are still passive in focusing

on the manufacturing industries. As such, this present study is an attempt to redress the

situation by providing valuable insights to management in the manufacturing organizations

about the strategic importance of conflict management as a resource tool for optimizing

business performance.

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In any organisation, conflicts may occur between superiors and subordinates; conflicts

among his subordinates, and conflicts between members of organization and outside

organization. Time to resolve conflict would increase if employees strike. Without

knowledge and skills of conflict management, they will not able to resolve conflicts faced.

Conflict can evolve from constructive to destructive aspect that would hamper organizational

goals and achievement. Furthermore, conflict is one of life essence and human development

that have diverse characteristics. Humans have different gender, social and economic strata,

legal system, nation, tribe, religion, creed, politics, as well as culture and purpose of his life.

Throughout human history, differences always lead to conflict. Organization Conflict

is an unavoidable thing and natural in all humaninteractions. Conflicts have a major effect on

lives of human beings, either individually or in groups, as well as the positive and negative

effect. Both of these effects can make a difference to human life. Conflict can change and

develop human life for the better. Conflict makes negative effect on organizations such as

lower productivity, high absenteeism, or turnover. In addition, conflict also had a positive

effect as eliminating stagnation, bring creative ideas and others. Therefore, organizational

leaders need to manage conflicts between individuals in order to have a positive effect on

organization. Conflict management includes understanding organization's leadership about

when, what, and how to manage conflict.

One positive effect of conflict management is to increase satisfaction of organization

member. The problem is how to manage conflict effectively and efficiently to minimize

losses and maximize benefits for employees and organizations to make positive effect on

organizational performance. Conflict management begins by mapping source, type and

conduct of conflict from the perspective of individual members of organization. Conflict on

organization performance will obviously have impact on employee and organization in

general. Several studies have been conducted at organization level about various factors

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causing conflict. Conflict may be due to objectives differences between divisions or between

departments in an organization.

Consequently, Farrer (2006) was of the opinion that, organizations aiming to expand

their market and increase their performance need to give greater attention to relating to a

multi-cultural workforce. Jehn&Bezrukova (2004) state that the trend of having different

work functions and departments in an organization that have different cultures, adds a strong

element of cultural diversity to today’s workgroups in many organizations. For an

organization to succeed and have a competitive edge over the rest in the industry, it has to

greatly embrace diversity to be able to realize its benefits, Farrer (2006). Being able to

successfully handle workplace diversity issues as well as develop and implement diversity

plans gives an organization several benefits (Stahl, Maznevsk, Voigt &Jonsen, 2010).

Cultural diversity is the representation, in one social system, of people with distinctly

different group affiliations of cultural significance (Ang,Van, Koh, Templer,

Tay&Chandrasekar, 2007). Tayeb (2003), described culture as the shared norms and values

of a social system which characterize a society, and lie beneath its art and architecture,

clothes, food, ways of greeting, working together and ultimately ways of communicating. On

the other hand, Hofstede (2001) defined culture as the collective programming of the mind

based on values that distinguishes one group or category from another. To Tayeb (2003)

cultures are different from one another in the degree to which they generally hold certain

values and attitudes, and not in the kind of those values and attitudes.

According to Aluko (2003), revealed that culture is a wide and multidimensional

concept that one cannot hope to deal with in its entirety in a single study. This is because

culture is divided into two major aspects which are (i) material and (ii) non-material cultures.

Aluko (2003) goes further to describe material culture as the physical pieces that are clear

and noticeable, such as clothing, tools, technology and art. The non-material aspects of

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culture are described as the abstract ideas and ways of thinking, morals, languages, attitudes,

values, and norms shared and transmitted in a society. They cannot be seen or touched but

can be revealed through the psychological state and behavior of individuals.

To Ely and Thomas (2001), the main objective of organizations trying to provide and

enhance cultural diversity is to dominate pluralism for single culture and ethno relativity for

ethno centralism. Daft (2003) explains Pluralism as embracing various subcultures of an

organization; while, ethno relativity is accepting the fact that members of subcultures and the

dominant culture are equal. As a consequence of these two perspectives, the ones who feel

themselves ignored and excluded because they come from different cultures in organizations

are able to be involved into the organization thoroughly (Ely & Thomas, 2001). According to

the defenders of diversity, cultural diversity is received as a necessary, useful, natural and

cheery fact enabling an organization to feel really happy about pluralism and utilizing

different human resource superiorities. There are both advantages and disadvantages of

cultural diversity in regard to organizations, and each of the facts on both poles should be

taken into consideration separately.Cultural diversity is now being widely accepted by

organizations as a way of creating competitive advantage. This is mainly because they have

the opportunity to utilize a vast array of knowledge, skills and abilities found in a diverse

cultural workforce (Stahl, Maznevsk, Voigt &Jonsen, 2010). It has no doubt more widely

recognized in contemporary issues of organizational performance that managers and other

organizational personnel have to develop an understanding of their cultural settings if their

organizations are to perform and function effectively (Kochan et.al, 2004).

Conclusively, no matter how one looks at conflict, it is important to realize that

conflict is one of the best ways in the world to turn the tide and improve unsatisfactory

conditions. Sometimes there may be no real conflicts to be resolved, but there may be reasons

for greater understanding, cooperation and team work to enable the promotion of

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interpersonal relationship, harmony and good organizational environment for teaching and

learning. Therefore, conflict should not always be regarded as unwanted desire but rather as a

crucial outcome that can bring positive results or changes if properly managed. On the other

hand, the cultural differences are distinguished into collectivism and individualism,

acceptability of workplace conflict, gender, age, and disability. For example, Asian and

Southern American culture are more toward fully devote themselves to the company where as

Western countries like America and British culture emphasize on working balance (Dimitrov,

2012). Thus, top management team play an important role in managing cultural diversity in

multinational company. It is on this note that it becomes pertinent to investigate the effect of

dispute management and cultural diversity on employee performance.

1.2 Statement of the Problem

Conflict usually occurs in an organization when an individual perceives that his

objectives are threatened or hindered by the actions or efforts of another person. Most

conflicts in many organisations in Nigeria come from the inability of the organisations to

fulfill its collective goals with its employees and thereby making employees to embark on

industrial action which may be work-to-rule or total strike. Employees’ industrial action

usually results suspension of industrial performance in terms of using manpower and other

factors of production from being fully utilized and consequently affects the revenue of the

organisation during that period.

On the other hand, organizations with strong cultures perform better than those

without these cultures. A strong culture is an organizational culture with a consensus on the

values that drive the company and with an intensity that is recognizable even to outsiders. A

strong culture is deeply held and widely shared and is also highly resistant to change. Canella

et. al, (2008) stated that despite the large number of studies on diversity, most of these studies

have so far yielded inconsistent results, thus leading to a question of whether really diversity

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in diversity is advantageous for companies. Anget al., (2007) acknowledged that diversity

can have both positive and negative impacts on organizations, but the nature of the impact

depends on the type of diversity climate that exists rather than the fact of diversity itself.

Differences in culture makes the general management and technical know how difficult to

exploit, when differences in cultural context make activity sharing and synergy formation

among business units less efficient. This study will therefore investigate the effect of dispute

management and cultural diversity on employee performance.

1.3 Objectives of the Study

The main objective of this study is to examine the effect of dispute management and

cultural diversity on employee performance. However, the specific objectives of the study

are:

i) To ascertain the prevalence of dispute management and cultural diversity on

employee performance

ii) To inquire the effects of dispute management and cultural diversity on an

organization’s productivity

iii) To investigate the measures taken by organizations to resolve dispute and cultural

diversity among employees to ensure job satisfaction

1.4 Research Questions

This research will be carried out to answer the following research questions:

i) What is the prevalence of dispute management and cultural diversity on employee

performance?

ii) What are the effects of dispute management and cultural diversity on an

organization’s productivity?

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iii) What are the measures taken by organizations to resolve dispute and cultural

diversity among employees to ensure job satisfaction?

1.5 Research Hypothesis

The research hypotheses to be tested include:

i) there will be a significant relationship between dispute management and

employees’ productivity in an organization

ii) there will be no significant difference between cultural diversity and employees’

performance in an organization

iii) there will be a significant correlation between organizational management of

dispute and cultural diversity and job satisfaction among employees

1.6 Significance of the Study

This study investigates the effect of dispute management and cultural diversity on

employee performance. This study reveals to various stakeholders how employee dispute

management and cultural diversity affect organizational performance. Many organizations

will find this study more beneficial by obtaining information on the significance of employee

conflict management and cultural diversity on its organizational performance. The findings of

the study are an opportunity for strategy formulation and implementation for many

organisations in Nigeria. It is obvious that policymakers obtain data that guides them in

regards to recruitment of employees with diverse cultural orientations in its different sectors.

This in return, makes our government competitive economically since the success of a

government globally, is becoming increasingly dependent on its ability to deal with the

challenges of cultural diversity. This study will be of great benefit to the government, human

resource managers and policymakers. Researchers will as well benefit from the findings of

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this study as it contributes to the package of knowledge and skills on enhancing performance

in a diverse cultural organization. The research also opens up new areas for future research by

interested academicians, scholars and researchers.

1.7 Scope of the Study

This study investigates the effect of dispute management and cultural diversity on

employee performance. For the purpose of reliability and validity, therefore the respondents

shall be human resource managers, policymakers, and entrepreneurs.

1.8 Limitation of the Study

1.7 Definitions of Terms

The following terms were used in the course of this study:

Conflict: refers to some form of friction, or discord arising within a group when the beliefs

or actions of one or more members of the group are either resisted by or unacceptable to one

or more members of another group.

Cultural diversity: is the existence of diverse individuals from different cultures or societies

whose differences arise from language, religion, race, sexual orientation, gender, age and

ethnicity

Culture: is a man’s medium that forms the human life of an individual

Diversity: is defined as the differences in race, gender, culture, class, ethnicity, physical

ability, sexual orientation, religion and educational level of individuals

Performance: is the execution or accomplishment of work, tasks or goals to a certain level of

desired satisfaction

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CHAPTER TWO

LITERATURE REVIEW

2.1 Review of Related Literatures

Dispute resolution constitutes an important managerial responsibility and activity, and has a

crucial impact on the well being of the organization. Managers often serve as third parties to

a dispute resolution process. Organizations develop many constructive dispute resolution

strategies at various levels of the organization. Many researchers have documented that

protagonists who emphasize their cooperative, positively related goals where they believe

that as one moves toward goal attainment the others do too are prepared to engage in open-

minded discussions; they express their various views directly, try to understand each other,

and combine their ideas to solve the underlying problem for mutual benefit. In contrast to this

theory on the approach that is likely to result in positive outcomes, the definition of

constructive dispute is not

so clearly operationalized. Deutsch (1973) argued that disputes are constructive to the extent

that participants consider that overall they have gained more benefits than costs.

Assessing these benefits and comparing them with the costs though involve a complex

calculus. Disputes can have wide-ranging effects and it seems likely that actors typically

experience different effects and that consequences valuable in the short-term are not

necessarily valuable in the long-term.

According to a study conducted by Etty Liberman, Yael Foux Levy and Pertz Segal (2009), it

has been accepted that there is a notion that an internal Dispute Management System for

workplace disputes must be designed to promote a positive work environment. This article

discusses the design and implementation of Dispute Management System for an Israeli

municipality. It assesses how effective the Dispute Management System has been from the

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perspective of users on improving interpersonal relationships and creating a positive

workplace atmosphere.

Linda L. Putnam (2007), discussed on employee dispute management systems - the early

dispute models such as Adjudication and Arbitration which are replaced by the Non-union

environments characterized by team-based work systems, co-operative partnerships and joint

ventures, participatory and collaborative management systems.

In a study made by Steve Alper, dean Tjosvold, Kenneth S.Law, (2000), it was discussed that

co-operative approach to dispute leads to dispute efficacy that in turn results in effective

performance as measured by managers.

Michael.R (1989) quotes in a study on Dispute management and employee development, that

personal relations in an organization depends on four general forms such as,

i) Power and dependency

ii) ii) Negotiating

iii) iii) Instrumental, and

iv) iv) Socio-emotional aspects.

In various studies conducted by Carten K.W.De Dreu (2007) and many researchers, it is

discussed that workplace dispute is quite desirable, should be welcomed and, where possible,

stimulated Pondy (1992). In fact, this is exactly what Van de Vliert and De Dreu (1994)

suggested some time ago: In overly harmonious or protest-repressive situations, therefore,

encouragement and intensification rather than prevention and mitigation of dispute may often

be recommended.

George and Jones (2005) note in a book the view on dispute, although unavoidable, it can

often increase employee performance, if it is carefully managed and negotiated.

The major finding of the study by Jose M.Guerra, Ines Martinez, Lourdes Munduate and

Francisco J. Medina (2005) is that the role of employee culture is more in influencing the

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nature of disputes that occur in the workplace. It is found that Task disputes take place in

private organizations with a high goal oriented culture compared to public organizations with

a low goal oriented culture.

Angela I. Greenwald (2007), the major findings were quite attention drawing. The study is to

investigate the degree to which the Six Sigma leadership training program prepares leaders to

resolve organization dispute, a major source of stress related illness. A qualitative case study

approach was utilized. Twenty-three Black Belt leaders in three Six Sigma roles of one

Fortune 100 company were interviewed from five strategic business units to determine if

improvements may be made to reduce unresolved dispute and enhance leader effectiveness.

Leaders reported to be ill equipped to manage dispute, negatively impacting productivity,

rendering them less effective and unable to meet personal and employee goals. The results

confirmed that no training in the area of dispute resolution was included in the curriculum. To

compensate, the leaders sought training outside of the curriculum, ignored disputes, or

worked alone. Adequate recognition, a supportive leader and peer network, judicious project

selection and a dispute-receptive culture were positive influences.

Recommendations for promoting positive social change by reduction of harmful workplace

dispute include dispute resolution training, the initiation of a peer network, clearer role

definition, and more thorough project selection.

According to Ruth Sirman (2008), Collaborative Leadership is a sound solution to complex

problems at workplace. The study explains the Management style that was ripe for dispute.

Collaborative leadership changes the dynamics and re-establishing a functional workplace,

assessing the damage, soliciting inputs from employees, having a collaborative plan and

moving beyond the politics of work.

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Patrick Lencoini (2008) stated five critical success factors to build trust among the team

members at workplace. By building trust disputes can be managed in a constructive and

productive manner.

According to a survey conducted by George Kohlrieser (2007), there are six essential skills

for managing dispute. The researcher enumerated the benefits of disputes to a company and

how to manage dispute for high performance.

According to Janice L Dreachslin, Dane Kiddy (2006), there are six main causes of dispute.

Viz., unclear expectations, Ineffective or poor communication, lack of clear jurisdiction,

interpersonal styles or attitudes, disputes of interests, and employee change. She also stated

the resolving styles of disputes such as collaborating, competing, compromising,

accommodating, and avoiding. The researcher suggested the best technique to manage

dispute by developing emotional intelligence among the members of the team or group at

workplace.

A study is conducted by Debra Lynn Ravanheimo Casey (2007), on managing disputes

through employee ombudsmen programs. This study found that for that period of study, these

programs exist as informal dispute management mechanisms with different types and dispute

management contexts. This study focused on ombudsmen at the level of the programs and

organization that use them in dealing with the world of workplace disputes.

Kelly Blayne Warren (2004), according to this study, the dominating style of dispute

management is a style that forces behavior to win one‘s position at any cost.

Recall Rahim‘s (1992) statement, ―Dominating may mean standing up for one‘s rights and /

or defending a position that the party believes to be correct‖. Analysis from this data produced

a positive correlation between the dominating dispute style and the spiritual gift of ruler. The

leader with the gift of rulership looks ahead to possibilities and future goals, offers guidance

to reach those goals, and communicates those goals in such a way that others will listen and

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work to achieve them. Thus, when dispute occurs, the ruler will stand up for his or her

position because it is believed to be essential to goal achievement. Dominating may win in

the short term, but Rahim et al. (1999) contended that the style is short-sided and short-lived.

Therefore, the ruler who uses the dominating style of managing dispute too often may win the

battle but lose the war.

Constance Barrow – Green (2004) in his study focused on the relationship between the styles

of dispute management and the quality of the dyadic relationship between leader and

follower. The study states that effective leadership is critical to employee success which

influences the styles of leadership and the relationships exchanged by a leader and a member.

Jennnifer L Clarke (2003), the study explains the experiential learning as an enabler to

improve dispute management in a work team. The experiential learning program affects the

ability of a work team to effectively manage dispute.

Linda Berens(2010), discusses the essential characteristics of the interaction styles from the

view point of positives, dialogue, differences discussions, decisions, dexterity, unfinished

business discussions. All these characteristics are important for constructive dispute

management at work environment.

According to a study conducted by Frank Harrison (1986), there is a necessity for synergy in

professional organizations. Managerial and Professional orientations are opportunities for

employee disputes. Several other studies have concurrent with Kornhauser's findings

regarding a potential divergence between the value and goal orientations of professional and

managers in complex organizations. One study in particular made at the Industrial Relations

Center at the University of Chicago, comprising separate surveys of 587 professional

employees in 19 separate work groups, cited differences in managerial and professional

orientations toward goals and objectives as a primary source of potential dispute.

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Increasing globalization and advances in communication technology have fuelled the

emergence of global virtual teams (GVT). There is much potential for dispute in GVT as

members work across cultural, geographical, and time boundaries.

This study examines the antecedents of GVT dispute and the circumstances under which

dispute affects team performance. An in-depth study of GVT dispute episodes was carried out

using interviews, observations, communication logs, and documents.

Based on findings from the teams under study interpreted in the light of prior literature,

propositions are developed about the antecedents and impacts of GVT dispute as stated. GVT

cultural diversity is likely to contribute to both task and relationship dispute, while functional

diversity may result in task dispute. Large volume of electronic communication and lack of

immediacy of feedback in asynchronous media can contribute to task dispute. Additionally,

the relationship between task dispute and team performance is likely to be contingent upon

task complexity and dispute resolution approach. The influence of relationship dispute on

performance may depend on task interdependence and dispute resolution approach. The

dispute resolution approach may in turn be determined by the nature of dispute attribution.

These propositions have been synthesized into a model to guide future empirical research and

GVT practice.

The study by Olufemi Adejare Adewole and Olukemi Grace Adebola, 2010 on Collective

bargaining as a strategy for industrial dispute management in Nigeria investigated the

strength of collective bargaining as a strategy for Industrial dispute management and

Industrial harmony among 5 manufacturing Industries randomly sampled in Ibadan, Oyo

State, Nigeria. With the use of a questionnaire administered to 100 respondents, an empirical

study of a descriptive type was carried out on the selected manufacturing industries to

determine the role played by collective bargaining in the resolution of industrial disputes and

promotion of industrial harmony at the workplace. Techniques of data analysis were mainly

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by the use of non-parametric statistics which included simple frequency distributions and

percentage values from opinion information derived on the Likert 5- point scale. The major

finding of the study revealed that the frequent eruption of industrial disputes between

employers and employees in Nigeria generally, can be effectively managed through collective

negotiation and consultation with the workers‘ representatives. The paper therefore

recommends that both public and private organizations and all stakeholders in Industrial

relations should encourage regular review of labour agreement and effective employer-

employee consultation and negotiation so as to reduce disputes at the workplace and thereby

promote industrial harmony and enhance productivity.

Concepts of Dispute

Obi (2012) defined workplace conflict as an act of discontentment and contention

which either the workers or employers of labour utilize to put excessive pressure against each

other so as to get their demands. This view is consistent with Henry (2009); Ikeda, Veludo

and Campomar (2005) descriptions of workplace conflict as a dispute that occurs when

interests, goals or values of different individuals or groups are incompatible with each other

in organizations. In this context, workplace dispute within the area of employment

relationship can be regarded as an unavoidable clash of interests and resulting disputes of

varying intensity between and within any or all of the active actors in organizations. Thus, in

the absence of common values in organizations, conflict is bound to occur.

Research findings have shown many factors that are responsible for workplace

conflict. Hotepo, Asokere, Abdul–Azeez and Ajemunigbohun (2010) found lack of resources,

different expectation, competition, lack of cooperation, interdependence and communication

problems as factors that have caused conflicts in the Nigerian service industry. Similarly, in

the banking sector in Nigeria, Obasan (2011) identified unacceptable terms of employment,

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poor human relations between management and workers , non – consultation with employees

before making key decisions affecting them, anti-union posture of management and lack of

effective mechanism for prevention of conflict as multiple causal factors of workplace

conflict. A Philippian study also conducted in the banking industry by Tsevendorj (2008)

rated communication failure, perception, values and culture problems as moderately serious

sources of conflict.

Ogunbameru (2006) structured workplace conflict into two ways: informal and formal

workplace conflicts. In his opinion, conflict in work-relations is informal when it is not based

on any systematic organizational problem but results directly from a source of grievance and

supposedly is wholly expressive in nature. In this connection, the underlying sources cannot

be openly seen, but can be inferred from unconscious form of protest, sabotage, unruly

behaviour and poor work-attitudes by employees in organizations. If the situation is

sufficiently widespread, it can significantly affect employee job description focus, turnover

and impact on the prosperity of an organization. On the other hand, formal workplace conflict

is referred to as an organized expression of conflict articulated through a trade union or other

workers representatives (Ogunbameru, 2006). This type of conflict is highly visible, since it

is often a conscious strategy or calculated attempt to obtain alteration in employment

relationship. To sum all, Albert (2001) opined that workplace conflict can be formal or

informal, one is destructive and unhealthy and the other is productive and healthy, having a

problem solving base. However, the two conflict situations are neither bad nor good, since

disagreement and dissatisfaction must occur in work-relations for adjustment to be made to

improve total workplace performance.

According to Rahim (2002) conflict management involves designing effective

strategies to minimize the dysfunctions of conflict and enhance the constructive functions in

order to optimize learning and effectiveness of an organization. This implies that managing

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conflict does not necessarily connote avoidance or termination but the decrease of the odds of

non-productive escalation. As such, conflict management is the method by which

organizations and people handle grievances or disputes so as to find a middle way alternative

to increase resolution, work towards consensus and offer genuine commitment to decision-

making. Uchendu, Anijaobi and Odigwe (2013), postulated that conflict is inevitable in

organizations, but whether it will generate positive or negative effect on the organizational

performance depend majorly on how it is managed. The timely recognition and immediate

explication of the underlying tension before the conflict issues go out of hand are germane to

effectual management of conflict in the workplace.

Ford (2007) posited a four-way process which includes assessment and inquiry,

design, implementation and evaluation aimed at achieving efficacious and objective conflict

decision in the workplace. This integrative approach is often employed to encourage

management to satisfy the needs of stakeholders in the resolution of conflict. Vigil and King

(2000) observed that the use of integrative style of managing conflict is likely to create better

result and higher commitment in individuals than teams using non-integrative conflict

management. The integrative approach broadens the understanding of the conflict problem

and increases resolution.

Similarly, collective bargaining strategy has been viewed as the instrument for

managing organizational conflict. The approach is globally regarded as the legal instrument

through which workers and management resolve conflicts arising from employment contracts

(Fajana and Shadare, 2012). Presently, faster rates of adoption of collective bargaining

strategies have been encouraged in Nigeria by the Trade Union Amendment Act (2000) and

by the positive use of this machinery for resolving conflict by some multinational firms in the

country. In practice, this collaborative approach of managing conflict, involves negotiation

between union and management in a process of meeting demands, discussing, presenting

21
 22

counter demands, bluffing and sometimes threatening all in a bid to reach collective

agreement.

Thomas (1976) also stated some components for managing conflicts. These are

avoidance, accommodation, competition, compromise and collaboration. The avoidance

strategy is called conflict avoidance. Any organization using this method is sitting on a keg of

gun-powder. The accommodation strategy believes that no amount of sacrifice is too much to

allow peace to reign. It is a palliative technique which involves capitulation and appeasement.

The competition strategy involves the survival of the fittest and win-lose method, without

taking other party into consideration. In the compromise strategy, actors to the conflict are

willing to let go of something in order to settle the dispute. The last approach is collaboration

which is a win-win approach whereby parties to a conflict are prepared, willing and ready to

satisfy each other demands fully. Except for the collaboration strategy which is reflected in

behaviours that are both cooperative and assertive, all other approaches depend majorly on

the structure of the organization, because they provide a short term solution to conflict

situations.

2.2 Concepts of Performance:

High employee’s performances lead an organization and have greater opportunities for

employees then those who have low performance (Vans cotter, 2000). “Performance is

related to that organization hires the person to do and do well”(Campbell 1993). Performance

is not only related to the actins but also involves judgment and evaluation process (Ilgen &

Schneider, 1991). The activities that can be examined and measurable are reflected as

performance (Campbell, 1993).

Organizations need highly performance of its employees so that organization can meet their

goals and can able to achieve the competitive advantage (Frese, 2002).(Borman and

22
 23

Motowidlo, 1993) differentiate between work and performance. Work related to the person

abilities through which employee performed activities which is contributed by the technical

core. Performance not related to the technical core characteristics but it cares about the

organization psychological environment and social environment in that organization achieve

its objectives. It involves behaviors such as helping colleagues or being a reliable member of

the organization (Frese, 2002). Performance appraisal emphasizes on the performance

variables not on personal traits (Smither, 1998). (Kane, 1995) argued that performance should

be measured in term of the work related behavior.Murphy in 1991 argued that analyzing

performance through personal characteristics has different disadvantages.

(Jankoz, 2004) argued that the validity and reliability of attribute based performance

appraisal are greater suspected as the perception of superior officer maybe biased. (Squires

and Adler, 1998) appraisal based on traits of employee has little value. (Malos, 1998)

concluded that fair appraisal is based on job related behaviors not traits of persons.

Employees must believe that in performance appraisals there is great opportunity for them

(Weick, 2001). Without fairness the performance appraisal system, rewards, motivations and

developments create negative impact and frustration (Gilliland and Langdon, 1998).

2.1.2 Cultural Diversity

Employees may have low self-esteem or isolated due to their race and national origin.

Hence, top management must pay high attention into employee perceptions regarding to the

cultural diversity either through the organization structure or formal or informal

communications. It is important for management to recognize employee perceptions that

foreign workers are supported and integrated into informal networks. Once they recognize

management support, they will feel integrated into their informal network and work in a

positive working environment. Communication is the one of the obstacles that caused

23
 24

misunderstanding between employees as foreign workers are not familiar with the local

language. Managers can encourage freedom of speech among employees so that they can

express their problems to avoid miscommunication and conflict in order to create a good

working condition. (Leveson, Joiner, &Bakalis, 2009). Management also has to apply

different rules and policies for foreign workers that may have different regulations such as

employment law in their national countries (Zheng, Hyland, &Soosay, 2007). Based on their

national laws, they would have different perspectives on organization structure and workers

policy that will arouse dispute of organization management.

2.1.3 Employee Goals

Individuals are part of societies and culture manifests itself through individuals.

Knippenberg (2000) states that human beings have different goals and expectations about

their work depending on the culture they live in. Hofstede (2001) asserts that the values and

beliefs held by members of cultures influence the degree to which the behaviors of

individuals, groups, and institution within cultures are enacted and the degree to which they

are viewed as legitimate, acceptable, and effective. All individuals possess a moral compass,

defined via values, which direct how they treat others and conduct themselves. Soares, et.al

(2007) adds that People who lack strong or ethical values may participate in negative

behavior that can hurt the organization. While a company cannot do anything about the

influences that shape a person's values and behavior before hiring, the organization can try to

influence employee behavior in the workplace.

Knippenberg (2000) states that a system of punishments and rewards can help foster

the type of values the company wants to see in its employees, essentially filtering behavior

through conditioning. If people see that certain behaviors are rewarded, then they may decide

to alter their behavior and in turn alter their values. In addition, Soares, et.al (2007) adds that

a gap sometimes exists between a person's values and behavior. This gap can stem from a

24
 25

conscious decision not to follow a specific value with a corresponding action. This decision

can be influenced by how deeply this value affects the person's character and by the

surrounding environment.

Barret (2005) acknowledges that an employee can deal with a situation in three

different ways. They can use their beliefs to formulate a response, they can use their values to

formulate a response, or they can use their intuition to formulate a response. Barrett continues

to explain that if you use beliefs to make decisions; those decisions will reflect your past

history in dealing with similar situations. Past history is always experienced and context-

based, and beliefs are not equipped to handle complex new situations that have not been

experienced previously. Beliefs are steeped in our past histories, habits and traditions, and are

thus constrained by individual experiences and not as adaptable to new situations.

Alternatively, if you use values to make decisions, those decisions will align with the future

you want to experience. Values transcend both contexts and experiences. Therefore, they can

be used for making tough decisions in complex situations that have not yet been experienced.

As a result, values provide a more flexible mode of decision-making than beliefs.

Knippenberg (2000) indicates that when an individual discovers genuine and

meaningful alignment between his or her own personal values with those of his or her

employer, a powerful connection is created. This connection creates numerous possibilities

for both individual growth and company productivity, manifested in several ways.

Ringovet.al (2007) explains that when an organization and its team members unite around a

shared set of values, they become more flexible, less hierarchical, less bureaucratic, and they

develop an enhanced capacity for collective action. When employees not only share similar

values – but also a similar vision the performance of a company is enhanced. Soares, et.al

(2007) adds that shared values build trust. Trust is the foundation on which relationships are

25
 26

established, both with team members and customers alike. Value-based leadership is a way of

making authentic decisions that build the trust and commitment of employees and customers.

Sociologically speaking, Nigeria does not have a ‘national culture’ similar to what

obtains in the Western world. This is because Nigeria is made up of forty three ethnic groups.

From all indications, one cannot expect a multicultural, multiethnic, multi-religious and

pluralistic nation like Nigeria to have a homogeneous culture. In recognition of this diversity,

for this study, we will not focus on individual ethnic groups but by dimensions of culture

using Hofstede’s (2001) typology of culture as equivalent to individual’s respondents’ values.

This simply means that the value of an individual will be identified in terms of the selected

dimension of culture. Hofstede (2001) explains that Cultural values influences individual’s

thinking and behavior which then impacts on their performance. Hofstede describes value

theory to includes five dimensions of cultural values and beliefs which are Individualism

versus Collectivism, Masculinity versus Femininity, Tolerance versus Intolerance of

Uncertainty, Power Distance (Stratification) versus Power Equalization and long term versus

short term orientation.

Power Distance is the extent to which people in a society accept the often unequal

distribution of power, (Merrit 2000). Triandis (2004) describes power distance as the extent

to which power differences are expected and accepted by a society. A high score on power

distance indicates the belief that there should be a well-defined order in which every

individual has a rightful place; a low score indicates the belief that everyone should have

equal rights and the opportunity to change their position in society, (Merritt 2000). Hofstede

(2001) believes that employees are better judges of power than their superiors. Employees of

high power distance prefer the paternalistic style of leadership whereby they accept and

expect to be told what to do. Low power distance employees prefer a consultative leadership

style because they like to be consulted.

26
 27

Triandis (2004) describes Individualism as a culture attribute that explains a loose-

knit social framework in which people emphasize only the care of themselves and their

immediate family. In cultures that uphold individualism, people are expected to take care of

themselves and their immediate family, and remain emotionally independent from the group,

(Merritt 2000). According to Hofstede (2001) individualistic employees prefer self-

sufficiency. The individuals decide and take actions by themselves instead of with others.

Independence, creativity, self-reliance, solitude, and self-actualization are valued in

individualistic cultures (Triandis, 2004). Triandis 2004 goes further to explain that

individualistic employees prefer to have management done at the individual level than as a

group. For these employees, self interest is the dominant motivation (Soares, et.al 2007).

Individualistic employees find it important to advance more than others and to succeed in

different kind of ways (Knippenberg 2000). Knippenberg (2000) further explains that to them

tasks prevail over relationships. Individualistic employees are more likely than collectivistic

employees to run the risk of opposing invention when they have not contributed (Soareset.al

20070. This is because they put less value on knowledge and ideas that are developed in a

different context and put more emphasis on individual initiative and personal achievement.

Collectivism is a national culture attribute that describes a tight social framework in

which people expect others in groups of which they are a part to look after them and protect

them (Triandis, 2004). People in collectivist cultures are less likely than individualists to

emphasize the significance of information that is written and codified and are more likely

than individualists to disregard such information (Chrisman et.al 2002). Collectivistic

cultures need face-to-face contact because people depend on context more than do

individualists who are quite satisfied with written communications (Hofstede, 2001).

Employees with a collective culture tend to be more emotionally dependant on their

colleagues and organization than individualistic employees. Ringov&Zollo (2007) believe

27
 28

that an organization has an obligation of taking care of collectivistic employees’ failure to

leads to dissonance in social order and peoples values. A collectivistic employee expects a

relationship of trust and loyalty from the employer (Merritt 2000). Knippenberg (2000) says

that these employees don’t expect to be fired for a mistake but rather to be corrected and

given more chances. On the other hand as Hofstede (2001) puts it, an individualistic

employee does not expect a personal relationship with the employer but rather a more

calculative one.

Li, Lam, &Qian, (2001) state that collectivist employees find it natural to treat people

closer to them in a better manner because they expect a relationship of trust to be built before

business can take place. Individualistic employees on the other hand treat their clients

equally. According to Ringovet.al (2007) individualistic employees expect performance

appraisals that will enable them to improve on their weak areas while collective employees

see it as demining to discuss ones performance. Ringovet.al (2007) further explains that

employees with collective cultures believe it’s important for them to fully use their abilities

and learn new skills on a job than those of individualistic cultures. Li et.al (2001) says that

individualistic employees think it’s more valuable to have an exciting work than to earn more

money hence their work performance greatly improves when they are happy with what they

do.

Merritt (2000) describes uncertainty avoidance as a culture attribute describing the

extent to which a society feels threatened by uncertain and ambiguous situations and tries to

avoid them. Hofstede (1980) refers to it as the extent to which the society willingly

accommodates risk and ambiguity. Employees who are risk averse are characterized with

high scores of uncertainty avoidance. They prefer certainty and security. In contrast,

employees characterized by low scores are motivated by risk taking and searching for novel

solutions (Li et.al, 2001). Li et.al, (2001) also stated that when employees are characterized

28
 29

by strong uncertainty avoidance, the introduction of new leadership styles or strategies raises

their anxiety level which leads to resistance of abandonment of the systems and structures

that they are acquainted with. Employees in strong uncertainty avoidance cultures, tend to

stay with their organizations for a long time. In contrast, those from weak uncertainty

avoidance cultures are much more mobile, (Ringovet.al 2007)Employees with strong

uncertainty avoidance cultures are likely to be more resistant to change which makes transfer

of change difficult to administer. Employees with low uncertainty avoidance feel less in

control of external forces than those of a high tolerance. Company loyalty is a virtue for

them. However they expect to have flexible working hours (Li et.al, 2001).

Long-term orientation is a culture attribute that emphasizes the future, thrift, and

persistence while Short-term Orientation is a culture attribute that emphasizes the past and

present, respect for tradition (Triandis, 2004). Hofstede (2001) explains long term-orientation

as the extent to which a society exhibits a pragmatic future oriented perspective rather than a

conventional historic or short term point of view. Employees scoring low tend to be

conventional and traditional, and pursue instant benefits and satisfaction in work related

aspects. On the other hand, employees scoring high have thrift for investment and a long-term

orientation both financially and psychologically. They also value long-term commitment

towards organizations and career, (Li et.al, 2001)

Chrisman et.al (2002) describes masculinity as the way in which people are motivated

towards different types of goal, either concerned with the quality of life (feminine) or money

and recognition (masculinity). Ringov&Zollo (2007) describe the dimension of

masculinity/femininity as a reflection to the degree to which the social gender roles are

clearly distinct. In masculine cultures, males are expected to be assertive, tough and focused

on material success, and females are expected to be tender and focused on quality of life (Li,

et.al 2001). Traditional masculine goals include: earnings, recognition, and advancement,

29
 30

valuing material possessions, assertiveness and money. Traditional feminine goals include:

good relations with supervisors, peers, and subordinated; good living and working conditions;

and employment security.

2.1.4 Employee Performance

According to Hassan, Muhammad, Imran (2009) study, conflict is a state in which

two or more parties have incompatible objectives and in which their perception and behavior

is appropriate with that incompatibility. Conflict is a foreseeable authenticity. It may not fade

away nor ignored. It is found in personal, group or organizational interaction. Conflict is

either “good or bad” and “sinful or immoral”. It assumes significance, once it is handled

intelligently. When conflict is handled unskillfully and badly, it becomes detrimental and

when it is handled morally and creatively, it ceases to be frightening and incapacitated, and

results in growth, maturity, and empowerment for individual, group and organization.

Conflict occurs due to difference of perception, ideas, behaviors, interest, attitudes,

religious differences, political differences and unjustified distribution of national resources.

Conflict is not always negative. It depends how the conflict is handle. If handled properly, it

can become source of development; otherwise it creates hostilities (Kigali, 2006). So it

affects quality, performance and profit of organization. Conflict is essential for life and

dynamic for team performance. When managers ignore the clash between the co-workers,

those clashes will be converted into personal and emotional conflict in the long run and

therefore damages the organizational culture, worker morale and overall chap reduction of

organizational performance. A perception of interpersonal incompatibility is labelled as

relationship conflict and it typically includes tension, annoyance and animosity among group

members (Hasan, Muhammad and Imran, 2009 and Simons, Peterson, 2000). It is a related to

difference of relationship between team members. It is infertile, difficult to manage and likely

to leave people with more pressures and less ability to manage them. Normally, it occurs

30
 31

between frontline workers and their supervisors. It can reduce creativity, innovation, quality,

and performance of employees and organizations. Relationship conflict also relates to conflict

about personal taste, political preferences, values, and interpersonal style. Relationship

conflict negatively effects on the team performance and it breaks personal and professional

relations.

Besides, it also produces tension between team members. Once relationship conflict

erupts, each individual’s displays varying difference. In case conflict continues, it results in

nervousness, rivalry, stress and discontents, which results into reduction in performance of

employees in organization (Hassan, Muhammad and Imran, 2009). Divergence of thoughts,

action and opinion results in sorting out flimsy occurrences. It depletes energy of people to

resolve conflict or to counter its effect rather than spending time in achievement of

organizational objectives (Simons and Peterson, 2000).However, according to Jonathan,

David and Aparna (2004), the past research on workplace diversity suggests that diversity can

be either detrimental or beneficial for workgroup performance. For instance, workgroup

diversity is positively associated with creativity and problem-solving skills and negatively

related with cohesiveness and cooperation. Good workforce diversity practices in the area of

human resources are believed to enhance employee and organizational performance.

Managing diversity involves leveraging and using the cultural differences in people's skills,

ideas and creativity to contribute to a common goal, and doing it in a way that gives the

organization a competitive edge. There is a strong correlation between good diversity

practices and profits based on recent studies. (Diversity allows increased creativity, a wider

range of perspectives, better problem definition, more alternatives and better solutions. It is

also argued that, with decreasing homogeneity in the workforce, it has become crucial for

organizations to develop equal opportunities and diversity management policies to maintain

31
 32

the skills of employees with diverse backgrounds in order to protect their competitive

position in the marketplace (Gilbert and Ivancevich 2000; Shaw 1993).

2.1. Employee Religion and Organization performance

Religion is the high levels of traditional religious belief, frequent involvement in religious

institutions such as churches, synagogues, mosques, and temples, and engagement in

religious practices such as reading scripture, worship, and prayer (McCullough &

Willoughby, 2009). Religion comprises of both religious belief and religious behavior.

Religious belief, which is also referred to as internal religiosity, or faith, is defined as belief

in God and a trusting acceptance of God’s will (Steiner,et al.,2010). Religious behavior, or

external religiosity, on the other hand, includes all observable activities, which are

undertaken in a religious context, in particular going to church (Steiner,et al., 2010 ).

Religion has been identified as one of the critical elements that influence an individual’s

value system and hence in shaping the cultural environment of an organization (Kutcher, et

al., 2010). As mentioned by Abdel-Khalek, (2010) religion affects the way in which people

behave through an individual’s value system. Cash & Gray, (2000) examined that religion

and spirituality strongly influence many American managers’ behaviors’ at work. Religion

too was found to contribute to healthy organizations (Noland, 2003).

For a long time the relationship between religion and work had been described as that, that

cannot and should not be mixed (Noland, 2003). However, that has drastically changed.

Individuals’ are now increasing desiring to incorporate their religious perspective into their

work and to express their religious and spiritual beliefs at work, (Barro, & McCleary 2003).

There is a wealth of information that suggests a positive relationship between religiosity and

subjective well-being (Abdel-Khalek, 2010). The positive consequences that studies show

accompany religious belief and practices have made the Americans to increasingly want their

32
 33

religion integrated into all the areas of their lives (Kutcher, et al., 2010). The many benefits

religious beliefs has been found to have on physical and mental health and ethical decision

making, has pushed some organizations to support and encourage expressions of religion and

faith in the workplace says Kutcher, et al., (2010).

Employees who are allowed to express their faith, religion, or spirituality improve the quality

of work life, certainly for themselves, if not for others (Miller 2007). As Elm (2003) states,

there is growing evidence that the line between workplace and religious beliefs is growing

thin by the day. People differ in their religious motivation. Some people hold religious beliefs

and engage in religious practices because they find their primary motivation in religion; their

religious belief is driven by intrinsic factors. Others, however, see religious belief as a means

to their own ends, such as a satisfying social need, a sense of security, and status (Allport &

Ross, 1967). Their religious belief is driven by extrinsic factors. Weaver & Agle (2002)

found that individuals with intrinsic religious orientation are high in determination and self-

esteem thus encouraged and anticipated actual entrepreneurial activity. On the other hand,

individuals with extrinsic religious orientations appear to discourage entrepreneurship.

Morgan (2005) in his research has found that the traditional wall between faith and work is

crumbling at an accelerated rate and that religion can longer seem to be “a hat that can be

removed and forgotten as soon as an employee enters the doorway of an office.” Further,

Cash and Gray (2000) found that during the decade spanning 1994 to 2000 the percent of

workers who felt they needed to experience spiritual growth in their work increased from

30% to 78%. Because of these dramatic changes, organizational researchers have begun to

examine the influence of religion and spirituality on work outcomes.

Recent researchers have examined the relationship between religious belief and job

satisfaction, job performance, organization-based self-esteem, and organizational frustration.

However, researchers have failed to examine the direct influence of individuals’ religious and

33
 34

spiritual beliefs on their commitment to their work as well as their performance which

influences the organization performance. Religious involvement can be defined as, the extent

to which an individual attends religious services and takes part in worship activities, groups,

committees, and worship-related organizations (Day,2005). Researchers have examined the

relationship between religiosity and civic involvement and found out that the more religious

individuals easily took part in civic volunteer activities in the society (Weaver, & Agle,

2002).

Day, (2005) says that individuals with higher levels of religious involvement have lower rates

of alcohol and drug abuse and addiction which have negative impacts on an employee’s

productivity. Noland, (2003) adds that the relationship between religious practices and the

avoidance or moderate use of alcohol is well documented, whether or not denominational

groups specifically prohibit the use of alcohol. Barro and McCleary (2005) indicate that

religion significantly affects the level of an individual's happiness and overall sense of well-

being. Happy people tend to be productive and law-abiding and also tend to learn well, thus

having a positive impact on an organization’s performance (Elm, 2003). Weaver, & Agle,

(2002) state that employees who frequently attend religious services are less stressed, and

have a greater sense of control which is correlated with decreased distress hence are more

productive at work. They further add that the employees who have a strong religious

commitment have an increased self-esteem and social support, as well as enhanced coping

skills which positively contribute to their work performance.

An earlier review of 250 epidemiological health research studies found a reduced risk of

colitis, different types of cancer, and untimely death among people with higher levels of

religious commitment. Conversely, at any age, those who did not attend religious services

had higher risks of dying from cirrhosis of the liver, emphysema, arteriosclerosis, and other

cardiovascular diseases and were more likely to commit suicide, according to an even earlier

34
 35

review by faculty of the John Hopkins University School of Public Health. Weaver, & Agle,

(2002) add that the most significant pathway by which religious practice delivers these

longevity benefits is a lifestyle that reduces the risk of mortality from infectious diseases and

diabetes, by encouraging a support network among family and friends that helps to maintain a

pattern of regimented care. King, & Williamson, (2005) agree that healthy employees are

more productive at work and they contribute tremendously to an organization’s success.

Conscientiousness, agreeableness, and satisfaction were all found to be positively associated

with religion (Kutcher, et al., 2010; McCullough & Willoughby, 2009). Studies also found

that Christian university students and adults during their important religious experience,

perceived themselves as high in agreeableness and conscientiousness (McCullough &

Willoughby, 2009). However, later studies have revealed that the relationship between

individuals’ religiousness and their involvement in civic organizations is more complicated

than first believed (Day,2005). Barro and McCleary ( 2005) have shown that, on average, it is

true that the religious are more involved in civic organizations than the non-religious up to a

certain level; but, as religiousness increases, religious involvement also increases leading to

individuals spending less time engaged in secular, civic organizations.

Individuals who are highly religious often devote a significant amount of their time and

resources to their religious activities leaving little time for secular and civic activities. This

then affects the organization’s commitments and performance (Elm, 2003). Day (2005) states

that as an individual’s religiosity increases, they become more devoted to their religious

social networks which then weaken ties to other civic activities and organizations as well as

coworkers. Garcia‐Zamor (2003) explains that as religiosity in an individual increases, they

begin to place more emphasis on their spiritual world and less emphasis on the material,

secular world. The need to engage more in religious good works surpasses the desire to

volunteer in civic activities (King, & Williamson, 2005). Noland, (2003) adds that individuals

35
 36

who possess high levels of religiosity are more likely to place significant value on spiritual

rewards than material rewards. This then may result to less attachment to financial or

otherwise results offered by ones job. When this is the case, an organization faces a high

employee turnover from the highly religious employees than from the non- religious ones

(Cash & Gray, 2000).

2.2. Employee Value System and Organizational Performance

Individuals are part of societies and culture manifests itself through individuals, (Brette &

Weast 2012). Knippenberg (2000) states that human beings have different goals and

expectations about their work depending on the culture they live in. Hofstede (1980) asserts

that the values and beliefs held by members of cultures influence the degree to which the

behaviors of individuals, groups, and institution within cultures are enacted and the degree to

which they are viewed as legitimate, acceptable, and effective. All individuals possess a

moral compass, defined via values, which direct how they treat others and conduct

themselves (Merrit 2000). Soares, et.al (2007) adds that People who lack strong or ethical

values may participate in negative behavior that can hurt the organization. While a company

cannot do anything about the influences that shape a person's values and behavior before

hiring, the organization can try to influence employee behavior in the workplace (Li, Lam, &

Qian, 2001).

Knippenberg (2000) states that a system of punishments and rewards can help foster the type

of values the company wants to see in its employees, essentially filtering behavior through

conditioning. If people see that certain behaviors are rewarded, then they may decide to alter

their behavior and in turn alter their values. In addition, Soares, et.al (2007) adds that a gap

sometimes exists between a person's values and behavior. This gap can stem from a

conscious decision not to follow a specific value with a corresponding action. This decision

36
 37

can be influenced by how deeply this value affects the person's character and by the

surrounding environment.

Barret (2005) acknowledges that an employee can deal with a situation in three different

ways. They can use their beliefs to formulate a response, they can use their values to

formulate a response, or they can use their intuition to formulate a response. Barrett continues

to explain that if you use beliefs to make decisions; those decisions will reflect your past

history in dealing with similar situations. Past history is always experienced and context-

based, and beliefs are not equipped to handle complex new situations that have not been

experienced previously. Beliefs are steeped in our past histories, habits and traditions, and are

thus constrained by individual experiences and not as adaptable to new situations.

Alternatively, if you use values to make decisions, those decisions will align with the future

you want to experience. Values transcend both contexts and experiences. Therefore, they can

be used for making tough decisions in complex situations that have not yet been experienced.

As a result, values provide a more flexible mode of decision-making than beliefs.

Knippenberg (2000) indicates that when an individual discovers genuine and meaningful

alignment between his or her own personal values with those of his or her employer, a

powerful connection is created. This connection creates numerous possibilities for both

individual growth and company productivity, manifested in several ways. Ringov et.al (2007)

explains that when an organization and its team members unite around a shared set of values,

they become more flexible, less hierarchical, less bureaucratic, and they develop an enhanced

capacity for collective action. When employees not only share similar values – but also a

similar vision – the performance of a company is enhanced. Soares, et.al (2007) adds that

shared values build trust. Trust is the foundation on which relationships are established, both

with team members and customers alike. Value-based leadership is a way of making

37
 38

authentic decisions that build the trust and commitment of employees and customers (Barret,

2005).

Sociologically speaking, Kenya does not have a ‘national culture’ similar to what obtains in

the Western world. This is because Kenya is made up of forty three ethnic groups. From all

indications, one cannot expect a multicultural, multiethnic, multi-religious and pluralistic

nation like Kenya to have a homogeneous culture. In recognition of this diversity, for this

study, we will not focus on individual ethnic groups but by dimensions of culture using

Hofstede’s (1980, 1991) typology of culture as equivalent to individual’s respondents’

values. This simply means that the value of an individual will be identified in terms of the

selected dimension of culture. Hofstede (2012) explains that Cultural values influences

individual’s thinking and behavior which then impacts on their performance. Hofstede

describes value theory to includes five dimensions of cultural values and beliefs which are

Individualism versus Collectivism, Masculinity versus Femininity, Tolerance versus

Intolerance of Uncertainty, Power Distance (Stratification) versus Power Equalization and

long term versus short term orientation, (Hofstede 1980).

Power Distance is the extent to which people in a society accept the often unequal

distribution of power, (Merrit 2000). Triandis (2004) describes power distance as the extent

to which power differences are expected and accepted by a society. A high score on power

distance indicates the belief that there should be a well-defined order in which every

individual has a rightful place; a low score indicates the belief that everyone should have

equal rights and the opportunity to change their position in society, (Merritt 2000). Hofstede

(2001) believes that employees are better judges of power than their superiors. Employees of

high power distance prefer the paternalistic style of leadership whereby they accept and

expect to be told what to do. Low power distance employees prefer a consultative leadership

style because they like to be consulted, (Soares, Farhangmehr, & Shoham, 2007).

38
 39

Triandis (2004) describes Individualism as a culture attribute that explains a loose-knit social

framework in which people emphasize only the care of themselves and their immediate

family. In cultures that uphold individualism, people are expected to take care of themselves

and their immediate family, and remain emotionally independent from the group, (Merritt

2000). According to Hofstede (2001) individualistic employees prefer self-sufficiency. The

individuals decide and take actions by themselves instead of with others. Independence,

creativity, self-reliance, solitude, and self-actualization are valued in individualistic cultures

(Triandis, 2004).

Triandis 2004 goes further to explain that individualistic employees prefer to have

management done at the individual level than as a group. For these employees, self interest is

the dominant motivation (Soares, et.al 2007). Individualistic employees find it important to

advance more than others and to succeed in different kind of ways (Knippenberg 2000).

Knippenberg (2000) further explains that to them tasks prevail over relationships.

Individualistic employees are more likely than collectivistic employees to run the risk of

opposing invention when they have not contributed (Soares et.al 20070. This is because they

put less value on knowledge and ideas that are developed in a different context and put more

emphasis on individual initiative and personal achievement (Chrisman, Chu, & Steier, 2002).

Collectivism is a national culture attribute that describes a tight social framework in which

people expect others in groups of which they are a part to look after them and protect them

(Triandis, 2004). People in collectivist cultures are less likely than individualists to

emphasize the significance of information that is written and codified and are more likely

than individualists to disregard such information (Chrisman et.al 2002). Collectivistic

cultures need face-to-face contact because people depend on context more than do

individualists who are quite satisfied with written communications (Hofstede, 2001).

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Employees with a collective culture tend to be more emotionally dependant on their

colleagues and organization than individualistic employees (Ringov, & Zollo, 2007). Ringov

& Zollo (2007) believe that an organization has an obligation of taking care of collectivistic

employees’ failure to leads to dissonance in social order and peoples values. A collectivistic

employee expects a relationship of trust and loyalty from the employer (Merritt 2000).

Knippenberg (2000) says that these employees don’t expect to be fired for a mistake but

rather to be corrected and given more chances. On the other hand as Hofstede (2001) puts it,

an individualistic employee does not expect a personal relationship with the employer but

rather a more calculative one.

Li, Lam, & Qian, (2001) state that collectivist employees find it natural to treat people closer

to them in a better manner because they expect a relationship of trust to be built before

business can take place. Individualistic employees on the other hand treat their clients

equally. According to Ringov et.al (2007) individualistic employees expect performance

appraisals that will enable them to improve on their weak areas while collective employees

see it as demining to discuss ones performance. Ringov et.al (2007) further explains that

employees with collective cultures believe it’s important for them to fully use their abilities

and learn new skills on a job than those of individualistic cultures. Li et.al (2001) says that

individualistic employees think it’s more valuable to have an exciting work than to earn more

money hence their work performance greatly improves when they are happy with what they

do.

Merritt (2000) describes uncertainty avoidance as a culture attribute describing the extent to

which a society feels threatened by uncertain and ambiguous situations and tries to avoid

them. Hofstede (1980) refers to it as the extent to which the society willingly accommodates

risk and ambiguity. Employees who are risk averse are characterized with high scores of

uncertainty avoidance. They prefer certainty and security. In contrast, employees

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characterized by low scores are motivated by risk taking and searching for novel solutions (Li

et.al, 2001). Li et.al, (2001) also stated that when employees are characterized by strong

uncertainty avoidance, the introduction of new leadership styles or strategies raises their

anxiety level which leads to resistance of abandonment of the systems and structures that they

are acquainted with. Employees in strong uncertainty avoidance cultures, tend to stay with

their organizations for a long time. In contrast, those from weak uncertainty avoidance

cultures are much more mobile, (Ringov et.al 2007)Employees with strong uncertainty

avoidance cultures are likely to be more resistant to change which makes transfer of change

difficult to administer (Brette & weast 2012). Employees with low uncertainty avoidance feel

less in control of external forces than those of a high tolerance. Company loyalty is a virtue

for them. However they expect to have flexible working hours (Li et.al, 2001)

Long-term orientation is a culture attribute that emphasizes the future, thrift, and persistence

while Short-term Orientation is a culture attribute that emphasizes the past and present,

respect for tradition (Triandis, 2004). Hofstede (2001) explains long term-orientation as the

extent to which a society exhibits a pragmatic future oriented perspective rather than a

conventional historic or short term point of view. Employees scoring low tend to be

conventional and traditional, and pursue instant benefits and satisfaction in work related

aspects. On the other hand, employees scoring high have thrift for investment and a long-term

orientation both financially and psychologically. They also value long-term commitment

towards organizations and career, (Li et.al, 2001)

Chrisman et.al (2002) describes masculinity as the way in which people are motivated

towards different types of goal, either concerned with the quality of life (feminine) or money

and recognition (masculinity). Ringov & Zollo (2007) describe the dimension of

masculinity/femininity as a reflection to the degree to which the social gender roles are

clearly distinct. In masculine cultures, males are expected to be assertive, tough and focused

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on material success, and females are expected to be tender and focused on quality of life (Li,

et.al 2001). Traditional masculine goals include: earnings, recognition, and advancement,

valuing material possessions, assertiveness and money. Traditional feminine goals include:

good relations with supervisors, peers, and subordinated; good living and working conditions;

and employment security (Hofstede, 1980).

2.2 Theoretical Framework

People tend to view conflict as a negative force operating against successful

completion of group or common goals. Conflict can create negative impact to group but may

also lead to positive effects depending on the nature of the conflict. Hence, management are

duty bound to resolve conflicts properly for the sake of increasing organizational

performance because the result of such action will result to good communication, time

management, good cooperation and increase organizational performance. A good conflict

improves decision outcomes especially on task-related conflict and group productivity by

increasing the quality through a constructive criticism and individual playing a devil advocate

role since most task related conflict allows the exchange of ideas and assist better

performance among work force.

Various conflict management theories opined that a healthy conflict management

system should integrate the internal sub-system with the higher level of the organizational

hierarchy while Ford (2007),provided a four-way process which include assessment and

inquiry, addresses the design, implementation and evaluation aimed at reaching a valid and

objective conflict management decision. Ekong (2000) reported a positive correlation

between democratic management styles and organizational stability. He noted that

democratic strategies would promote inclusion in decision and by consequence workers

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identification with decisions and commitment to the organization. This research is based on

this theory of democratic conflict management strategy.

Korbanik, Baril and Watson (1993) and Wall and Galenes (1986) commented on the

integrating style of handling conflict which shows that this style results in high joint benefits

for the parties. Vigil-King (2000) also found that the use of more integrative conflict

management strategies are likely to have higher commitment than teams using less

integrative styles while it was noted that a supportive leader engenders respect, job

satisfaction and higher productivity from his staff while an authoritarian leader represents the

opposite, even if productivity is higher in the short run, it is bound to fall in the long run.

Rahim (2004) suggested that the nature of leadership power in an organization mediates the

needs of conflict management strategies. Thus, organizational stability may be maintained

even when the leader is low in conflict management because workers sometimes exhibit

acceptance behaviour over the superior’s attitude thus reflecting apathy and subjugation with

little manifestation of aggression.

2.3 Empirical Review

Conflict is not always destructive, it may be a motivator. When it is destructive,

however, senior management or executives need to understand and do something about it; a

rational process for dealing with the conflict should be planned. Richard Arvid Johnson

(1976) explained that this process includes a planned action response on the part of the

manager or the organization, rather than relying on a simple reaction or a change that occurs

without specific action by management. Conflict management leads to improved organization

performance and effectiveness. Effective conflict management is the concept of how an

organization is achieving planned objectives by harnessing the organization performance and

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internal performance outcomes of a team is generally associated with more efficient or

effective operations and other external measures.

Esquivel and Kleiner (1997) viewed that conflict is generally regarded as a

disagreement regarding interests or ideas. Therefore, organizational conflict relates to

arguments that occur when goals, interests or values of different individuals or groups are

incompatible and they block or tend to frustrate each other’s attempt to achieve their

objectives. Jones, George, and Hill (2000) reiterated that these actions and reactions make

conflict an inevitable part of an organization’s life, since the goals of different stakeholders,

such as senior management or executives and staff are often incompatible. Bagshaw (1998)

view conflict as a fact of life. In an organization, people compete for jobs, resources, power,

acknowledgement and security. Dealing with conflict is difficult because it arouses primitive

emotions such as people feeling threatened, which creates a version of the age old stress

responses. Personal conflict is a conflict between two people, most often from a mutual

dislike or personality clash. Boston University Faculty Staff Assistance Office (FSAO)

mentioned in a study of their online report that workplace conflict can occur due to

personality or style differences and personal problems such as substance abuse, childcare

issues, and family problems. Jehn (1994) wrote in a research that conflict can be beneficial

for the performance of student groups as well as organization groups if conflict is task-

focused. In fact, this is one of the most valuable ideas that had the greatest influence in

moving the research on organizational conflict forward, and allowing researchers to examines

whether conflict is negative or positive in workgroups. The distinction between task-related

and personal or relationship-focused conflict is thus a critical part of research on conflict.

Organizational conflict is focused primarily on three types of conflict: relationship, task, and

process.

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Behavioural scientists sometimes describe an organization as a system of position

roles. In case of banking industry, each member of the organization belongs to a role set,

which is an association of individuals who share interdependent tasks and thus perform

formally defined roles. John R. Rizzo, Robert J. House, and Sidney I. Lirtzman (2005) view,

role conflict when the behaviors expected of an individual are inconsistent. That person will

experience stress, become dissatisfied, and perform less effectively. Role conflict can

therefore be seen as resulting from contradiction of the two principles of two individuals

which leads to decreased individual satisfaction and decreased organizational efficacy. Other

types of role conflict occur when an individual receives inconsistent demands from another

person; for example, they are asked to serve on several time-consuming committees while at

the same time, they are urged to deliver service to bank customers in their workstation.

Another kind of role strain takes place when the individual finds that they are expected to

meet the opposing demands of two or more separate members in a banking organization. For

example, such a case would be that of an employee who finds himself or herself pressured by

their supervisor or department heads to improve the quality of their work, while their work

group wants more revenue outcomes in order to receive a higher bonus share. Additionally,

the relationship between task conflict and team performance highly correlate with task

complexity and conflict resolution approach. The influence of relationship conflict on

performance may depend on interdependence of tasks. Conflict resolution can be determined

as per conflict factors (Kankanhalli, Tan, and Wei, 2007).

Conflict arises in groups because of the scarcity of freedom, position, and resources.

People who value independence tend to resist the need for interdependence and, to some

extent, conformity within a group. People who seek power struggle with others for position or

status within the group. Rewards and recognition are often perceived as insufficient and

improperly distributed, and members are inclined to compete with each other for these prizes

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(Mills, 1967). Group meetings are often conducted in a win-lose climate that is, individual or

subgroup interaction is conducted for the purpose of determining a winner and a loser rather

than for solving problem mutually (Johnson, 1976). Positive conflict is very useful in group

deliberations. Most groups will look for more information to resolve it when they are faced

with a conflict. However, when disagreement is expressed, a more thorough investigation

needs to be conducted. When the group makes a decision, it will be based on additional

information that had probably been obtained on the conflict (Stack, 2005). Even though some

of the feelings generated by conflict may be negative, disagreement indicates the two parties’

involvement in the discussion. However, approaching workplace conflicts as opportunities to

improve operations is a much more productive solution. Certainly, there are some obvious

cons to conflict.

Zaidi (2012) found in his study in the context of Bangladesh that maximum conflict is

recognized between employee and employer. Conflicts are related to organization benefits

provided to the employee and personal attitude difference of employees. However, these

conflicts should be manageable if conflict produces negative outcomes. Conflicts also may

arise in Bangladeshi organizations due to decision making from top management. Employees

have low scope to participate in decision making process so that in many cases there is a

conflict between top management and employees.

Conflict may occur when two parties have partially involved in a joint action to

accomplish a task for achieving goal. Workplace conflict can be personality or style

differences and personal problems such as substance abuse, childcare issues, and family

problems. Organizational factors such as leadership, management, budget, and disagreement

about core values can also contribute in creating conflict. Role conflict in banks takes place

when the employees find that they are expected to meet the contradictory demands of two or

more supervisors of the organization. Another source of conflict arises in groups is scarcity of

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freedom, designation of employees, and less than optimal resources allocation of a

department for accomplishment of tasks. Relationship conflicts occur because of the presence

of strong negative emotions, misperceptions or stereotypes, poor communication or

miscommunication, or repetitive negative behaviours.

Cultural diversity is now being widely accepted by organizations as a way of creating

competitive advantage. This is mainly because they have the opportunity to utilize a vast

array of knowledge, skills and abilities found in a diverse cultural workforce. Blunt and Jones

(1992), George and Jones (1996) argued that all organizations everywhere function within a

specific culture. It is becoming more widely recognized in contemporary discussions of

organizational performance that managers and other organizational practitioners have to

develop an understanding of their cultural settings if their organizations are to perform

effectively (Kochan et.al, 2004).

Every organization aims to sustain its existence and meet the needs of highly

competitive markets by continuously improving its performance. According to Chen (2002),

organizational performance means the transformation of inputs into outputs for achieving

certain outcomes. Ely & Thomas (2001) describe performance as the execution or

accomplishment of work, tasks or goals to a certain level of desired satisfaction. There are

several ways to understand organization performance but for the purposes of this thesis, we

will look at it as the ability of an organization to satisfy the desired expectations of two main

stakeholders comprising of owners and customers. This is measured in terms of the following

parameters; Owners’ satisfaction with financial returns or profits from organizational

operations and customers’ expressed satisfaction with the quality of products and services of

the organization.

A positive effect of cultural diversity in the workplace is that employees

belonging to different cultures usually have different ways of thinking and can thus analyze a

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matter at hand from a variety of perspectives. This is hard to achieve when employees

belonging to the same culture are asked to analyze the same matter. Employees coming from

different cultures have different experiences, which can be beneficial by providing the

organization with a sound and vast knowledge base. Al-Jenaibi (2011) studied the impact and

scope of cultural diversity in organizations in the UAE. The study showed most of the

workers agreed that group work with culturally diverse people helps “to overcome cultural

differences through shared experiences when working within a team” (Al- Jenaibi, 2011, p.

71).

Another positive effect of cultural diversity in the workplace is the increased tendency

of organizational personnel to overcome culture shock as the business expands in other

countries and becomes international. This is a very important benefit derived from cultural

diversity of the employees because many modern companies have global expansion on their

corporate agendas. With expansion into other countries comes a range of obstacles including,

but not limited to, gathering information about local customs and laws in the foreign country,

assessing risk, and designing strategies to overcome those risks. When an organization has a

culturally diverse workforce, it can use the information and knowledge of the individual

workers to achieve these objectives and overcome the aforementioned obstacles. For

example, an American company trying to expand its business in India can draw information

about the Indian federal and provincial laws that apply to the business, insurances required,

and applicable tax regulations.

Another way the knowledge of culturally diverse workers can be useful for the

organization is the tendency of the workers to inform the concerned employees or managers

about the culture of their respective countries. This helps when they work as expatriates in a

foreign country; they have sufficient information about the culture of the foreign country to

avoid, or at least minimize, the culture shock. Normally, organizations that do not have a

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culturally diverse workforce have to incur expenses of getting their workers informed about

the culture and work procedures of the foreign countries. Investments might include hiring

trainers from foreign countries, purchasing documentaries about foreign cultures to show to

employees or distributing books, journals, and pamphlets to increase their knowledge about

foreign cultures. All of these measures not only take a lot of time to be arranged, but also cost

the company substantial amounts. With a culturally diverse workforce, this time, cost, and

energy can be saved as workers in-house serve as trainers and practitioners. Thus, the process

of integration of such an organization into a foreign country becomes smoother.

Similarly, cultural diversity of the workforce helps an organization shift its business

from the brick-and mortar office to the online marketplace. Diversity helps in the expansion

of an organization’s perspective, approach, strategic tactics, launch of a new product,

development of a marketing plan, creation of a new idea, design of a new operation, and

assessment of emerging trends (Adler, 2002). Adler (2002) identified five fundamental

strategies for the management of cultural diversity in the workplace; namely, cultural

dominance, cultural avoidance, cultural compromise, cultural synergy, and cultural

accommodation. Of these, the most desirable strategy is of cultural synergy, which is

acquired through placing value in other cultures without giving up self culture (Kamal and

Ferdousi, 2009, p. 161).

Literature on the Subject Matter

Organizations and their employees do not exist in a vacuum, separated from their cultural

surroundings, but in a specific culture or socio-cultural environment (Hofstede, 1991). For an

organization to remain relevant in a competitive environment, it’s necessary for the

management to hire employees who represent its demographics (Jehn & Bezrukova, 2004).

This could include people who represent a particular ethnic community, who understand and

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know the needs of their culture. It could also mean having a representative from a particular

religion, who may be able to give insight on the acceptable and non offensive traditions that

could be used by the organization, for example during a marketing campaign (Worman,

2006). Worman (2006) further explains that understanding the effect of culture on human

behavior is crucial to the business success of any organization.

Farrer (2006) believes that, organizations aiming to expand their market and increase their

performance need to give greater attention to relating to a multi-cultural workforce. Jehn &

Bezrukova (2004) state that the trend of having different work functions and departments in

an organization that have different cultures, adds a strong element of cultural diversity to

today’s workgroups in many organizations. For an organization to succeed and have a

competitive edge over the rest in the industry, it has to greatly embrace diversity to be able to

realize its benefits, Farrer (2006). Being able to successfully handle workplace diversity

issues as well as develop and implement diversity plans gives an organization several benefits

(Stahl, Maznevsk, Voigt & Jonsen, 2010).

Cultural diversity is the representation, in one social system, of people with distinctly

different group affiliations of cultural significance (Ang,Van, Koh, Templer, Tay &

Chandrasekar, 2007). Tayeb (2003), describes culture as the shared norms and values of a

social system which characterize a society, and lie beneath its art and architecture, clothes,

food, ways of greeting, working together and ultimately ways of communicating. On the

other hand, Hofstede (2010) defines culture as the collective programming of the mind based

on values that distinguishes one group or category from another. To Tayeb (2003) cultures

are different from one another in the degree to which they generally hold certain values and

attitudes, and not in the kind of those values and attitudes.

According to Aluko (2003), culture is a wide and multidimensional concept that one cannot

hope to deal with in its entirety in a single study. This is because culture is divided into two

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major aspects which are (i) material and (ii) non-material cultures. Aluko (2003) goes further

to describe material culture as the physical pieces that are clear and noticeable, such as

clothing, tools, technology and art. The non-material aspects of culture are described as the

abstract ideas and ways of thinking, morals, languages, attitudes, values, and norms shared

and transmitted in a society. They cannot be seen or touched but can be revealed through the

psychological state and behavior of individuals.

To Ely and Thomas (2001), the main objective of organizations trying to provide and

enhance cultural diversity is to dominate pluralism for single culture and ethno relativity for

ethno centralism. Daft (2003) explains Pluralism as embracing various subcultures of an

organization; while, ethno relativity is accepting the fact that members of subcultures and the

dominant culture are equal. As a consequence of these two perspectives, the ones who feel

themselves ignored and excluded because they come from different cultures in organizations

are able to be involved into the organization thoroughly (Ely & Thomas, 2001). According to

the defenders of diversity, cultural diversity is received as a necessary, useful, natural and

cheery fact enabling an organization to feel really happy about pluralism and utilizing

different human resource superiorities (Seymen, 2006).There are both advantages and

disadvantages of cultural diversity in regard to organizations, and each of the facts on both

poles should be taken into consideration separately (Peppas, 2001).

Cultural diversity is now being widely accepted by organizations as a way of creating

competitive advantage. This is mainly because they have the opportunity to utilize a vast

array of knowledge, skills and abilities found in a diverse cultural workforce (Stahl,

Maznevsk, Voigt & Jonsen, 2010). Blunt and Jones (1992), George and Jones (1996) and

Zakaria (1997) argued that all organizations everywhere function within a specific culture. It

is becoming more widely recognized in contemporary discussions of organizational

performance that managers and other organizational practitioners have to develop an

51
 52

understanding of their cultural settings if their organizations are to perform effectively

(Kochan et.al, 2004).

Every organization aims to sustain its existence and meet the needs of highly competitive

markets by continuously improving its performance (Arslan & Staub 2013). According to

Chen (2002), organizational performance means the transformation of inputs into outputs for

achieving certain outcomes. Ely & Thomas (2001) describe performance as the execution or

accomplishment of work, tasks or goals to a certain level of desired satisfaction. There are

several ways to understand organization performance but for the purposes of this thesis, we

will look at it as the ability of an organization to satisfy the desired expectations of two main

stakeholders comprising of owners and customers. This is measured in terms of the following

parameters; Owners’ satisfaction with financial returns or profits from organizational

operations and customers’ expressed satisfaction with the quality of products and services of

the organization.

Financial growth of the organization will be measured through its sales performance. Sales

performance can be explained as all the economic activities or investment carried out in the

organization in a given period of time. It can be measured by the total amount of revenue

collected for the goods sold. In many organizations, employee morale and satisfaction are

related to identity groups or cultural affiliations (Cox, 1994). The amount of diversity in both

formal and informal structures of organizations will impact factors such as creativity,

problem solving and intra-organizational communications (Ang et.al, 2007). How people feel

and think about their jobs and their employers is greatly influenced by their cultural beliefs,

norms and value system (Peppas, 2001). Seymen (2006) further states that this is indeed

crucial because behavior is driven by perceptions of reality. What people believe about their

opportunities in the work environment is of vital importance regardless of whether or not

these beliefs are consistent with the facts (Kochan et.al, 2003). Cox (1994) goes ahead to say

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that cultural differences to a great extent shape a person’s beliefs and relationship to other

employees as well as customers.

There seems to be a general agreement that if cultural diversity is managed well, it can be an

asset to performance, and if it is overlooked or mismanaged, it may diminish the performance

of an organization (Browaeys & prince, 2011). Managing cultural diversity is the whole

action of planning and implementing organizational systems and practices to manage people

so that the potential advantages of diversity are maximized while minimizing its drawbacks

(Stahl, Maznevski, Voigt & Jonsen, 2010). Jehn & Bezrukova (2004) believe that the goal of

managing cultural diversity is to maximize the ability of all employees to contribute to

organizational goals, and to achieve their full potential unhindered by cultural identities such

as religion, norms, values and language.

OiLibya has now been in existence in Kenya since 2006, having taken over Exxon Mobil’s

business in Kenya. The retail business continues to present vast opportunities for growth and

expansion in the Kenyan market. Since 2006, they have seen the brand achieve major

milestones. The company has been awarded the ISO 9001:2008 certification for continued

implementation of Quality Management System at their Lubes Oil Blending Plant (LOBP),

Mombasa. They have also achieved the 2009 - 2010 ‘Superbrand’ Status. Libya Oil Kenya

Limited (LOKL) is the local subsidiary of the Libya Oil Group with affiliates in over 15

African countries including Morocco, Niger, Senegal, Cote d’Ivoire, Mali, Gabon,

Cameroon, Egypt, Morocco and Tunisia. In Eastern Africa, Oil Libya is in Kenya, Djibouti,

Sudan, Ethiopia, Eritrea and Uganda where they continue to look for investment

opportunities. The Group’s reporting office is in Casablanca, Morocco.

Oil Libya Kenya’s vision is ‘To be Africa’s leading and most respected partner in shaping

African energy and empowering African born prosperity’. Its mission is ‘To energize the

local people and delight their partners by providing responsible energy solutions’. Oil Libya

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Kenya operates under the values of Pursuing excellence, Encouraging collaboration,

Fostering innovation and Nurturing leadership under the brand name ‘OiLibya’, LOKL

operates 67stations country wide through a dealer network. It operates a lubricant blending

plant in Mombasa, terminals in Nairobi, Mombasa and Eldoret and has a presence at the

Kenya Pipeline Company (KPC) depots in Western Kenya. It also operates its aviation

business through the two main airports in Kenya.

The business covers the sale and marketing of a range of quality Lubricants, Fuel to retail and

commercial customers, L P Gas, Chemicals and Special products. LOKL also provides

services such as ATMs and Chemist outlets at select retail outlets. LOKL has also partnered

with Innscor (K) Limited to provide a comprehensive back-court offering that includes

quality food brands and convenience retailing stores. Due to its broad market focus, Oil Libya

has a cultural diverse workforce in all of its areas of operation.

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CHAPTER THREE

RESEARCH METHODOLOGY

3.0 Introduction

This chapter is concerned with the methods used in collecting data for the research project; it

essentially sheds light on the research design, the study population, the research instrument,

the validity and reliability of the instrument, the methods of data analysis to be used in

carrying out the research and the mode of questionnaire administration was also examined.

3.1 Area of study

The geographical location of this study is Ibadan, Oyo State, Nigeria. Ibadan is on 7.39o

North latitude, 3.9o East longitude and 239 meters elevation above the sea level. Ibadan is

located in southwestern Nigeria in the southeastern part of Oyo State. It has about 120 km

east of the border with the Republic of Benin in the forest zone close to the boundary

between the forest and the savanna. Ibadan is bounded in the South by Lagos State, in the

North by Kwara State.

3.2 Research Design

A survey research was employed in this study. Nwogu (1991) defined a survey research as

one in which a group of people or items is studied by collecting and analyzing data from only

few, people considered to be a representation of the entire group. The research relied on both

primary and secondary sources of data. The primary source of data involved the conduct of

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employees interview and the use of questionnaire which consisted of two sections, Section A

and B. Section A consisted of personal data of respondents, the questionnaire elicited

information about the sex, age, working category and employment duration of the

respondents.

3.3 Sources of Data

Every research work has a framework for collecting data. Its function is to ensure that the

required data are collected accurately and economically.

The researcher utilized both primary and secondary methods of data collection.

3.3.1 Primary Sources of Data Collection

The primary data consists of a number of items in structured questionnaire that was

administered to the respondents. The decision to structure the questionnaire is predicated on

the need to reduce variability in the meaning possessed by the question as a way of ensuring

comparability of responses.

Two methods used for securing information required through this source were oral interview

and questionnaires. The questionnaires which consisted of many multiple choice question and

some questions were issued mainly to the junior officers, where as intention made up of

mainly open ended questions were conducted for top executives of the firm.

3.3.2 Secondary Sources of Data Collection

Secondary data were collected through texts books, journals, newspapers, magazines and

other materials relevant to the research topic.

3.4 Population of the Study

The target population of the study are staff of University of Ibadan. The research work will

derive information through the use of structured interview and questionnaires from various

categories of staff classified with academic and non academic staff.

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3.5 Sample Size and Sampling Techniques

The study sample is deduced from the total population through sample randomization the

distribution are highlighted as follow

ITEMS POPULATION %
Academic 600 50
Staff
Non-Academic Staff 600 50

TOTAL 1200 100%

Source: Fieldwork July, 2016.

3.6 Research Instrumentation

The main instrument of data collection in this study is a self developed questionnaire.

The questionnaire comprised of questions related to labour unrest and underdevelopment in

Nigeria: An appraisal of civilian rule 1999 to 2016

The first part of the questionnaire is section “A” which comprises of the personal data

of the respondents. Then followed by section “B” that comprises of information about labour

unrest in Nigeria.

3.7 Validity of the Instrument

The instrument of the research was given face validity by the project supervisor.

Permission was obtained from the schools’ authority explaining the purpose of the study as

being mainly for research. The researcher visited the school chosen for the research work few

days before the distribution of the questionnaires to both the academic staffs and non-

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academic staffs of the university explaining the purpose of the study as being mainly for

research.

The researcher also made a promise to the staffs that their information would be kept

confidential.

3.8 Reliability of the Questionnaire

It is the extent to which research instrument is consistent and stable therefore,

predictable and accurate is said to be the reliability of the instrument.

3.9 Methods of Data Analysis

The framework of content analysis is what was adopted due to the fact that it will aid the

researcher in giving better appreciable acknowledgment to the study and make the researcher

knowledgeably acquainted to the subject under analysis.

3.10 Limitations of the Study

As regards the limitations of this study, there were indeed limited documented materials on

the issue and the factors of it being timely in conjunction with financial impediments or

constraints, time and numerous academic work in campus. However, it was obvious that the

prevailing unrest was at its peak at the time of this research.

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