FACTORS LEADING TO INDUSTRIAL CONFLICTS IN KENYA AND THEIR EFFECTS ON ORGANIZATIONAL PRODUCTIVITY: A CASE STUDY OF OIL CROP DEVELOPMENT LIMITED.

Abstract

The main aim of the research was to determine the factors leading to industrial conflicts and their effects in an organization's productivity: a case study of the Oil Crop Development Limited. An industrial dispute is described as a disagreement between management and workers about the terms of employment (Kornhauser, Dubin and Ross, 1994). In today's corporate environment, competition is the norm. Production, quality, revenues, and corporate social responsibility are all important areas where businesses may gain a competitive advantage. To gain a competitive advantage, businesses must first secure collaboration and harmony among all stakeholders. The study utilized a descriptive research approach to discover what caused the disputes and what potential remedies were available. The target population was 200 employees from which a sample size of 60 respondents was selected using stratified random sampling technique. The sample included shop stewards and human resource managers, as well as regular and casual employees at Oil Crop Development Limited. A questionnaire was distributed to the respondents as the study tool. Data was examined qualitatively and quantitatively. Qualitative data was provided as descriptive notes, whereas quantitative data was given as tables and figures. It was determined that the major reasons of the conflicts were bad working conditions, rates, terms of employment, and employee relations. Weak trade union movement, inefficient and inadequate social security, lack of employment benefits, opportunities for training, promotion, trained personnel at the health service, short contract and low pay are the main problems encountered by workers who end up having conflicts with their management, and if these conflicts are not well addressed during the initial stages, the workers end up striking, causing production time to be lost. The study revealed that industrial conflicts have a great impact on organizations productivity because where strikes occur there are work-stoppages which impoverish the workers actually involved in the conflicts and, thus, lessens their purchasing power. The organizations reputation is also ruined since customers don't want to be associated with an organization prone to conflicts which affects the organizations sales.