ST.

MARY'S UNIVERSITY COLLEGE

FACULTY OF BUSINESS
DEPARTMENT OF MANAGEMENT

AN ASSESSMENT OF CONFLICT
MANAGEMENT PRACTICE IN
ETHIOPIAN SHIPPING LINES S.C

BY:
RUTH ARAYA

JUNE 2011
SMUC
ADDIS ABABA
 AN ASSESSMENT OF CONFLICT
MANAGEMENT PRACTICE IN
ETHIOPIAN SHIPPING LINES S.C

A SENIOR ESSAY SUBMITTED TO THE

DEPARTMENT OF MANAGEMENT
BUSINESS FACULTY
ST. MARY’S UNIVERSITY COLLEGE

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR THE DEGREE OF BACHELOR OF ARTS IN
MANAGEMENT

BY:
RUTH ARAYA

JUNE 2011
SMUC
ADDIS ABABA
 ST. MARY'S UNIVERSITY COLLEGE

AN ASSESSMENT OF CONFLICT MANAGEMENT

PRACTICE IN
ETHIOPIAN SHIPPING LINES S.C

BY:
RUTH ARAYA

FACULTY OF BUSINESS
DEPARTMENT OF MANAGEMENT

APPROVED BY THE COMMITTEE OF EXAMINERS

Department Head Signature

Advisor Signature

Internal Examiner Signature

External Examiner Signature

 ACKNOWLEDGMENTS

First, thank to the almighty God for helping me to do this senior essay.
Special thanks go to my advisor Ato Abera Legesse for his constructive
suggestions, guidance and great advice in the writing of this senior paper, as
well as for his devoting precious time in reading the paper.

Thanks a lot to all employees of ESL'SC, who assisted me and contributed a lot
for the preparation of this document senior essay.

My deepest and warmest thank goes to my mother Mulu for her all rounded
care and support. Moreover, I would like to express my sincere and deepest
thank to my brother Robel.

I would also like to thank my friends, Helen, Sara for providing me many
things.

Finally, I am in need of expressing my deepest thank to Eden for typing this

paper.

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 TABLE OF CONTENTS

Contents Pages
Acknowledgments ................................................................................. i
Table of Contents .................................................................................. ii
List of Tables ........................................................................................ iv
CHAPTER ONE
INTRODUCTION
1.1. Background of the Study .......................................................... 1
1.2. Background of the Organization ................................................. 3
1.3. Research Question .................................................................... 4
1.4. Objectives of the Study .............................................................. 4
1.5. Significance of the Study ........................................................... 4
1.6. Scope of the Study .................................................................... 5
1.7. Research Design and Methodology ............................................. 5
1.7.1. Research Design.............................................................. 5
1.7.2. Population and Sampling Technique ................................ 5
1.7.3. Types of Data Collected ................................................... 5
1.7.4. Methods of Data Collection .............................................. 6
1.7.5. Methods of Data Analysis ................................................ 6
1.8. Organization of the Paper .......................................................... 6

CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1. Introduction ............................................................................. 7
2.2. Definition .................................................................................. 7
2.3. Nature of Conflict ...................................................................... 8
2.4. Types of Conflict ........................................................................ 9
2.4.1. Task-Related Versus Socia-emotional Conflict .................. 11
2.4.2. Functional Conflict .......................................................... 12
2.4.3. Dysfunctional Conflict ..................................................... 13
2.5. Causes of Conflict in Organizations ............................................ 13
2.5.1. General Causes of Conflict ............................................... 14
2.6. Ambiguity ................................................................................. 16

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 2.7. Diversity as a Source of Conflict ................................................. 16
2.8. Approaches to Conflict Management .......................................... 17
2.9. Clarifying Rules and Procedures ................................................ 22

CHAPTER THREE
DATA ANALYSIS AND PRESENTATION
3.1. Respondents Biography ............................................................. 22
3.2. General Information .................................................................. 23
3.2.1. Trainings on Conflict Management ................................... 23
3.2.2. Challenges of Conflict Handling Techniques ..................... 24
3.2.3. Types of Conflict in Ethiopian Shipping Lines S.C ............. 28

CHAPTER FOUR
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
4.1. Summary ................................................................................. 39
4.2. Conclusions .............................................................................. 41
4.3. Recommendations ..................................................................... 42

BIBLIOGRAPHY
APPENDIXES: A. Questionnaire
B: Interview

iii
 LIST OF TABLES

Titles Pages

Table 1: General Characteristics of Respondents .............................. 22

Table 2: Training on Conflict Management ....................................... 23
Table 3: Challenges of Conflicts Handling Techniques ...................... 24
Table 4: The Employee's View towards the Effects of Conflicts in the
Organizations Success ........................................................ 25
Table 5: Respondents Level of Agreement on the Potential Source of
Conflict .............................................................................. 26
Table 6: Conflicts with the Immediate Boss ...................................... 27
Table 7: Respondents Level of Satisfaction with Conflict Resolution . 27
Table 8: Respondents Rating on the Type of Conflict in Ethiopian
Shipping Lines S.C............................................................. 28
Table 9: Respondents Attitude towards Conflict ............................... 29
Table 10: Respondents Opinion towards the Outcome of Conflict ....... 30
Table 11: Effectiveness of Conflict Resolution Techniques in ESL'SC .. 30
Table 12: Issues Related to the Mechanisms of Techniques used to
Resolve Conflict Frequently ................................................. 31
Table 13: Managers Contribution in Minimizing the Occurrence of
Conflict .............................................................................. 32
Table 14: Issues Related to Conflicts Handling ................................... 33
Table 15: Conflict Resolution Consideration in ESL'SC....................... 33
Table 16: The General Conflict Management Practice in ESL'SC ......... 34
Table 17: Conflict Impact on the Organizations Achievement.............. 35
Table 18: The Outcome of Conflict ..................................................... 36

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 CHAPTER ONE
INTRODUCTION

1.1. Background of the Study

People do not always work smoothly together in an organization. Indeed,
conflict is an inevitable element of interpersonal relationships in organizations,
conflict can occur between individuals or among groups virtually all
organizations operate in an environment that is characterized by constant
change and need for constant adaptation. Trying to eliminate conflict requires
tremendous amounts of energy. (Ricky W. Griffin, 2000: 582)

Conflict in management has attracted significant attention because managers

devote much of their time to conflict management. Individuals and groups
interact among each other in their day to day activities in the struggle for
survival and achievement of their own goals, this interaction that exist among
them is a source for the formation of disputes, violence. (Ivancevich, 1990: 483)

Conflict may manifest itself in a variety of ways, people may compete with one
another, glare at one another, shout. The attitude organizations and people
have towards conflict ranges from traditional view that considers it as bad,
disruptive and unnatural and represents a form of deviant behavior, which
should be controlled and changed to the perspective that assumes conflict as a
positive force and necessary for effective performance. (Robbins, 989:369).

A state of disagreement between individuals and groups that arise in almost

when there is human interaction originates in competition in which influence
incompatible goals, antagonistic actions, unfair distribution of work. According
to their bases conflict occurs in different aspects like physiological aspects,
political aspects and social aspects that all of them affect educational, cultural,
economical and social status of a country. (Creamer 1991:314)

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This study deals with individuals and groups conflict and its handling in
Ethiopian shipping lines by making special reference to the head office.

Ethiopian Shipping Lines S.C was founded in 1964 G.C and started operation
in 1966 G.C with three newly built ships (two general cargos and one tanker).

It was established as a share company with a capital of birr 50,000

subsequently and to be raised to birr 3,750,000 Tavrus investment INC of
Washington DC agreed to subscribe to 51% of the capital requirements
designating two directors of the company. The Ethiopian government under
wrote the remaining 46% of the capital required designating two directors of the
company. Eventually, the American company and sold its share to the
government of Ethiopia and the company was fully owned by the government of
Ethiopia and the company was full owned by the government of Ethiopia since
1969/70 G.C.

The company is now reformed to a share company with a capital of birr 289
million and operates under the supervision of public enterprises supervising
authority. Ethiopian shipping lines S.C is the only company involved in sea
freight activity in the county.

It gives liner service in:

o North continent and Mediterranean route
o Far east route
o Arabian Gulf route and India sub continent route.
(ESL'SC. 2011:1).

2
1.2. Statement of the Problem
Ethiopian shipping lines S.C play an important role in sea freight activity in the
country.

As an organization it has a group of individuals who have different interest and

unique characteristics shaped by culture, social and biological background
under the same goal and objectives of the organization. This situation with
other conflicting factors put interaction among individuals and groups with in
the organization in danger and consequently, it affects an organization over all
personality, performance and productivity.

Effective conflict and conflict resolution practices contribute a lot for achieving
organizational objectives. However, the management is not considering conflict
resolution as one important role of management, and conflicts are not resolved
in the right time to the best interest of the employees.

o The management tend to go for temporary solutions to conflicts;

rather than identifying the root causes of the conflict, assessing all
possible alternative resolution.
o In the organization high concern is given for the task while forgetting
employees' issues. As a result, employees are not satisfied with the
resolutions made for each conflict.
o The conflict resolution practices are not designed to make use of
conflict for creativity and innovation, rather it brought dissatisfaction
of employees which led to turnover.

The major reason for all the above stated problem is that there are no clear
understanding of conflict and conflict resolution method in the organization.

3
1.3. Research Questions
The research paper assumes that conflict between individuals and groups tend
to result an adverse effect on Ethiopian shipping lines SC's achievement of
goals. In this study the paper will answer the following basic questions.
1. What are the organizational factors that contributes to conflict
between individuals and groups in ESL'SC?
2. How do managers cope with all the potential conflict?
3. What the attitude of employees towards the conflict in the
organization.
4. What are the main types of conflict that exist between individuals /
groups in Ethiopian Shipping Lines S.C?

1.4. Objectives of the Study

While undertaking this study the general objectives of this paper is to assess
conflict and conflict management practices in ESL'SC.
More specifically, the aim of the study was:
o To investigate how managers cope with all conflicts in the organization.
o To identify the organizational factors that contributes to conflict.
o To identify the main types of conflict resolution techniques that has been
used in ESL'SC.

1.5. Significance of the Study

The outcome of this study is expected to provide important suggestion to the
Ethiopian Shipping Lines S.C to improve its conflict management practices, it is
also expected to give some of the outcomes below.
o The study will reveal the major factors that cause conflict in ESL'SC.
o The study will create awareness on the part of conflict management
and resolving it.
o The study will also serve as a spring board for other researchers who
would like to study the same issue in a wider scale.

4
 o The study provided the researcher a clear and appropriate information
and knowledge about conflict and conflict management practice in
ESL'SC.

1.6. Scope of the Study

Conflict is inevitable and occurs at all levels of any organization it was difficult
to conduct the study in all organizations. The researcher thus, was forced to
limit the study only in to Ethiopian Shipping Lines S.C. The study tried to
incorporate conflict management practices Ethiopia shipping line's by making a
special reference to the head office. The study was also confined to assess
conflict practice in ESL'SC for the year 2009 and 2010 E.C only. Since, it was
not possible to get reliable information for the year 2011 which is not ended yet.

1.7. Research Design and Methodology

1.7.1. Research Design
To carry out this paper the researcher used descriptive type of research
because the student researcher wanted to assess the situation in the
organization.

1.7.2. Population and Sampling Technique

In this study employees who work in head office were considered as a unit of
study. Since the total number of employees excluding the managers in the head
office is small in size, which is 170, the researcher used census method.
Therefore the researcher was able to contact all employees in the head office.

1.7.3. Types of Data Collected

In this research both primary and secondary data was collected. The study was
mostly base on primary source of information; secondary source was used in
the literature review and background of the organization part.

5
1.7.4. Methods of Data Collection
The data was gathered through questionnaire from employees and interview
with the management. The reason for using questionnaire is, in order to save
time and to get easily accessible sample information.

1.7.5. Methods of Data Analysis

The method that the researcher used to analyze the data is frequency
distribution and their relative percentage distribution. This help to show the
response from the majority of the employee in relation to the degree of the
problem.

1.8. Organization of the Paper

The study was organized in four chapters; the first chapter consists of the
problem and its approach, which contains background, objectives, problem
statement, significance, methodology, scope and organization of the paper. In
addition it contains the background of the organization. Chapter two deals with
review of related literature, chapter three will be about data presentation and
analysis. The last chapter will contain conclusions and recommendation.

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 CHAPTER TWO
REVIEW OF RELATED LITERATURE

2.1. Introduction
In this chapter, the related works in conflict management from other
researchers, books, journals are presented. The researcher believes the
framework is helpful for the readers of this project work to comprehend and
visualize the work of others. Then, the readers can understand what the actual
practice of ESL-SC look like in conflict and conflict management practices.
Specifically, the chapter looks to main types of conflict, causes of conflict,
functional and dysfunctional conflict and approaches to conflict management.

2.2. Definition
Conflict is a disagreement among two or more individuals, groups, or
organizations. This disagreement may be relatively superficial or very strong. It
may be short-lived or exist for months or even years, and it may be work-
related or personal (Ricky, 2000:582).

Conflict has also passed through main different stages. The first stage was the
time where conflict was seen' as negative, destruction and something that must
be avoided: the second is the human relations approach where conflict is
accepted as normal, and inevitable. The third one is the inter-actionist
approach that considers conflict not only as natural inevitable and important
for productivity but also as the must be encouraged for quality decision-making
(Robbins, 1989:369).

Conflict has different causes for its occurrences that ranges from the invisible
psychological one to the overt and visible one. Conflicts are not inherently
dysfunctional or function. The functionality or dysfunctional of conflict depends
on the way it is resolved. Different writers classified conflict in different ways.
Some as task process and relationship related.

7
Other authors classified conflict as intrapersonal, interpersonal, inter group,
organizational and inter-organizational. The rest classified conflict based on its
outcomes as functional or dysfunctional.

Conflict: is the process in which one party perceives that its interests are being
opposed or negatively affected by another. Conflict is a perception, so it exists
whenever someone believes or feels that another person or group might
obstruct its efforts.

Chung and Meggison (1981:450) describe conflict as the struggle between

incompatible or opposing needs, wishes, ideas, interests or people. Conflict,
they say arises when individuals or groups encounter goals that both parties
can not attain satisfactorily. So any tension experienced when one perceives
another as thwarting or frustrating his or her needs, or is likely to bring
conflict.

2.3. Nature of Conflict

Conflict and differences of opinions are natural and healthy (Cole, 2004:209).
When conflict is task related, the parties view the conflict experience as
something separate from them. Conflict is much more difficult to resolve when
it rises to a socio emotional state of tension.
According to Rue and Byars (1992:402) conflict in organizations is often
assumed to be unnatural and undesirable-to be avoided at all costs. Cost can
lead to rigidity in the system in which it operates, distort reality, and debilitate
the participants in the conflict situation. Therefore, they added, many
organizations approach the management of conflict with the following
assumptions:

Conflict is avoidable.

Conflict is the result of personality problems within the organization.

Conflict produces in appropriate reactions by the persons involved.

Conflict creates a polarization within the organization.

8
Conflict tends to increase under conditions of goal incompatibility,
differentiation, task interdependence, scarce resources ambiguity etc... conflict
is more common in a multicultural workforce because of greater differentiation
and communication problems among employees.

However, conflict is perfectly natural and it should be expected to occur (Ibid).

Management must know when to eliminate conflict and when to build on it.
Today's managers must accept the existence of conflict and realize that it
attempt to stop all conflict is a mistake. The consensus is that conflict itself is
not undesirable: rather, it is a phenomenon that can have constructive and
destructive effects.

Managers effectiveness in managing the conflict depends on how well they

understand the underlying nature of conflicts which may be different from its
expression and whether they can identify the crucial and tactical points for
intervention. (Ibid)

According to Hil1er, (1996:324) conflict is not an objective, tangible

phenomenon; rather, it exists in the minds of the people who are partly to it,
only its manifestations, such as brooding, arguing or fighting are objectively
real. To manage conflict, therefore one needs to empathize, that is, to
understand the key actors involved see the situation. An important element of
conflict management is persuasion.

2.4. Types of Conflict

As Dwivedi, (2001:301) indicated conflict can be classified in to two general
categories:- Internalized or Intrapersonal and Organizational conflict.

Internalized Conflict: occurs within an individual, and can be further

classified as frustration, role conflict and goal conflict. Since this study is
concerned about the individuals and organizational kind of conflicts, it will be
briefly classified below.

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Organizational conflict occurs in organizational settings and embodies
institutionalized and emergent conflict. Institutionalized conflict stems directly
from the formal organizational and technological process whereas emergent
conflict arises informally within the formal system as a consequence of
individual and social goals.

Institutionalized Conflict: originates from division of work. Different

departments have not only incompatible goals, but, even within a single
department, competition for organizational rewards causes intense conflict
among members. This type of conflict has been classified as individual versus
individual. Individual versus organization, hierarchical, functional, and line
versus staff.
i. Individual Vs Individual Conflict: is common at work. In this type of
conflict, every individual' attempts to occupy a scarce resource, including
tangible and intangible goals such as status, prestige, power, money,
etc... This conflict is based on 'win-lose' analysis. If one individual
reaches his goal, another must lose it.
ii. Individual Vs Organizational Conflict: This conflict occurs when the
individual wants independence, long-term perspective etc... the
organization wants dependence, short-term perspective, etc. The conflict
stemming from this inherent incongruence causes frustration, a sense of
failure and loss of self-esteem.
iii. Hierarchical Conflict: is the outcome of hierarchy incompatibility. The
most typical hierarchical conflict is obtained between labour and
management groups.
iv. Functional Conflict: arises from organizational framework mostly
between different departments in an organization.
v. Line-staff Conflict: arises from with the organizational structure. This is
personality conflict between line personnel and staff personnel which
aggravated due to divergent criteria for goal attainment in the
organization.

10
 While the staff is evaluated in terms of profession or indentation, the line
has to be result oriented and is assessed accordingly.

Emergent Conflict: As Harbert (2001:204) points out, this type of conflict stems
from personal and social reasons in organizational settings, embracing informal
and on-formal behavior. It has been classified as individual versus informal
group, formal-informal, status and political conflict.

i. Individual Versus Informal Group Conflict: arises when an individual

seeks to satisfy his needs through his informal group which, in turn,
demands utmost amount of conformity or undesirable behavioral pattern.
ii. Formal- Informal Conflict: is a common at work. Informal organizations
have their own specific goals, norms and values, which may be quite
opposed to those of the formal organization.
iii. Status Conflict: is caused largely because of technological changes and
initiation of action. Seniority and age have ceased to act as the criteria for
accomplishing higher status in this era of technological growth.
iv. Political Conflict Arises: when an individual or a group attempt to get a
head, regardless of the means adopted to do so. Thus in contradiction to
the prescribed system of merit or seniority, an individual may earn
promotion by undermining the seniority or performance of another
individual in an informal or non-formal way. This causes a political
conflict in the organization. (Dwivedi, 2001:408)

2.4.1. Task-Related Versus Socia-emotional Conflict

Successful organizations encourage mild forms of conflict without having it
escalate into an emotional battle between employees or corporate divisions. The
key is to keep conflict task related and prevent it from escalating to a socio-
emotional state. When conflict is task related, the parties view the conflict
experience as something separate from them. It is an object "out there" that
must be addressed. This conflict is potentially healthy and valuable because it
makes people rethink their perspectives of reality.

11
As long as the conflict remains focused on the issue, new ideas may emerge
and the conflict remains controlled.

Unfortunately, conflict often becomes personal. Rather than focusing on the

issue, each party starts to see the other person as the problem. This socio-
emotional dimension is apparent at Arthur and Erson and Andersen consulting
because each side believed the other was deliberately trying to undermine its
success, with socio emotional conflict, differences are viewed as personal
attacks rather than attempts to resolve an issue. The discussion becomes
emotionally charged, so that perceptional biases are introduced and
information processing is impeded. (Mary Ann, 2000; 402)

Conflict can have functional as well as dysfunctional effects on persons, groups

and organizations (Kast and et al, 1985:344). Moorhead and Griffin (2001:297)
have also shown that conflict has both advantages and disadvantages stating at
through conflict is often considered harmful, and thus some thing to avoid, it
can also have some benefits. A total absence of conflict can lead to apathy and
lethargy.

Robbins et al, (2004:203) started to explain the functional and dysfunctional

faces of conflict by recognizing the evolution of its paradigms. These are the
traditional view that believes conflict is harmful and must be avoided, the
human relationists view that accepts conflict as normal, and the interactionist
view does not propose that all conflict good-rather, some conflicts support the
goals of the individual, group or organization in improve its performance, these
are functional, constructive forms of its conflict.

2.4.2. Functional Conflict

Benneft and Hess (2004:380) demonstrated the importance of conflict stating
that organizations with no conflict are dormant, static, unimaginative and
unable to change and in danger of becoming obsolete. They further explained
that conflict is constructive if it:

12

Encourages better decision making

Make life more interesting

Increases motivation to deal with problems

Stimulating

Mullins, (2005:905) included the following as positive out coming of conflict:

Better ideas are produced.

Cong-standing problems will be brought to the surface and resolved.

Clarification of individual views.

Stimulation of interests and creativity.

A chance for people to test their capacities.

2.4.3. Dysfunctional Conflict

When conflict disrupts, hinders job performance, and upset personal
psychological functioning, it is dysfunctional conflict.

Mullins, (2005:905) put some of the negative outcomes of conflict including:

A climate of mistrust and suspicion developed.

Individuals and groups concentrated on their own narrow interests.

An increase in employee turnover.

Some of them will feel defeated and demanded.

2.5. Causes of Conflict in Organizations

Whatever be the character of conflict, it arises in the presence of certain
conditions. Robbins classifies this conditions or sources of conflicts into three
general categories: communication, structure and personal variables.

Communication: communication gaps hamper collaboration and foster

misunderstandings. The communication source relates to those contradictory
forces which stem from semantic problems, insufficient exchange of
information, misunderstanding and noise. Semantic problems are caused on
account of divergent training, selective perception and insufficient information
about others.

13
MC Shalne, (2000:408) stated conflict often occurs due to the lack of
opportunity, ability or motivation to communicate effectively. The potential for
conflict intensifies in the face or either too little or too much communication.
Perhaps, the amount of communication is functional to a particular extent,
beyond which it may lay the seeds for conflict.

Structure: conflict tends to increase with size and specialization. The structure
involving the size and amount of, specialization and standardization in the
tasks, heterogeneity of individuals, leadership styles, reward system and level of
dependence form the potential antecedent conditions to conflict.

Personal Variables: personal characteristics and value systems can be a

source of conflict. Authoritarian and dogmatic personality leads to potential
conflict. Likewise differences in value system form a source of conflict on
account of involvement of prejudices and disagreements associated with them.

2.5.1. General Causes of Conflict

Unrealized Expectations: it has been assumed that unrealized expectations
are a source of conflict. In our society, expectations among the deprived are
increasing faster than visible improvements, giving rise to unfavorable attitudes
and unrealized expectations. The emergence of the new legitimized values or
rights and failures to meet the growing expectations cause unfavorable
attitudes and frustration.
Change: conflict is caused by change resulting in tension, anxiety and
resistance.

Research: although research is important for progress, it gives rise to conflict

on account of changes introduced based on its findings. Obviously, changes in
a business organization in the light of research give rise to intra-and
interdepartmental conflict.

14
Modern Technology: technology has caused conflict in another way by
increasing the per capital income and making available resources and time to
people. When people have time and resources, they tend to press their right for
participation.

Cultural Factors: conflict is also caused by differences in cultural factors,

above (Macmillan: 2001:520)

Goal Incompatibility: A common source of conflict is goal incompatibility, as

the name implies, goal incompability occurs when people or work units have
goals that interfere with each other. Financial rewards for goal accomplishment
further entrench the perceived conflict because employees are more motivated
to pursue their own goals.

Differentiation: Conflicts are caused mainly by differentiation. Differentiation

occurs when people hold divergent beliefs and attitudes due to their unique
backgrounds, experiences or training.

Task Interdependence: The degree to which team members must share

common inputs, interact in the processes of executing their work, or receive
outcomes determined partly by their mutual performance. Conflict tends to
increase with the level of task interdependence. The higher the level of task
independence, the greater the risk of conflict, because there is a greater chance
that each side will disrupt or interfere with the other side's goals.

Scarce Resources: Scarce resources generate conflict because scarcity

motivates people to compete with others who also need those resources to
achieve their objectives.

15
2.6. Ambiguity
Ambiguity breeds conflict because the uncertainty increases the risk that one
party intends to interfere with the over party's goals. Ambiguity also encourages
political tactics and, in some cases, employees enter a freefor-all battle to win
decisions in their favor. When rules exist, on the other hand, everyone knows
that to expect from each other and have agreed to abide by those rules. (Mary
Ann, 2000: 408)
Mullins (2005:906) summarized the following as the major causes of conflict.

Differences in Perception: we all see things in different ways. We all have our
own, unique picture or image of how we see the 'real' world difference in
perception result in different people attaching different meanings to the same
stimuli. As perceptions become a person's reality, vague judgments can be a
potential major source of conflict.

Violation of Territory: people tend to become attached to their own 'territory'

within work organizations; for example to their own work area, or king of clients
to be dealt with or to their own noon, chair or parking space, jealousy may arise
over other people's territory. For example, size of room, company car, avocation
of a secretary or other perks, through access to information, or through
membership groups.

Environmental Change: changes in. any organizations external environment

such as shift in demand, increased competition, government intervention, new
technologies and changing social values, can cause major areas of conflict.

2.7. Diversity as a Source of Conflict

Unfortunately, diversity in an organization can also become a major source of
conflict. This conflict can arise for a variety or reasons one potential avenue for
conflict is when an individual thinks that some one has been hired, promoted
or fined because of her or his diversity status.

16
Another source of conflict stemming from diversity is through misunderstood,
misinterpreted or inappropriate interactions between people of different groups.

Conflict can also arise as a result of other elements of diversity as a result when
one organizations culture places a much higher premium on group loyalty and
identity than an individual accomplishment. The employee will likely feel
ashamed and embarrassed. Thus a wellintentioned action may backfire and
result in unhappiness.

There are five conflict resolution techniques, but there is no one best technique
to be followed rigidly in all situations. The way we employ conflict resolution
techniques/styles depend on the degree of our concern for ourselves or for
others, the degree of emphasis is given to task accomplishment (meeting our
goals) or the degree of emphasis given to people (keeping good relationships
with others).

Conflict Management: refers to interventions that alter the level and form of
conflict in ways that maximize its benefits and minimize its dysfunctional
consequences.

2.8. Approaches to Conflict Management

Conflict arises from varied sources and inevitable in organizational settings.
This necessitates application of appropriate techniques to manage it effectively.
Several approaches have been suggested, particularly in behavioral science and
in general, in management literature, to resolve conflicts. Robbins and Webber
(1989:308) presented the approaches to conflict management as stated below:

Dominance
The easiest technique to resolve a conflict is to eliminate the other partial
together. This technique can be exercised by individuals, coalitions and
majorities. Individual dominance involves application of fighting or physical
strength in a way that the other party is damaged without causing injury to
self.

17
Frequently, in such situations, the loser party withdraws from the conflict and
attempts to compete with less formidable rivals.

Thus, a manager may use dominance technique to eliminate rival parties by

dismissing them. However, this technique is useful only if the problem is
people-oriented rather than organization-oriented. Moreover, coalitions of two
or more individuals can be used to generate extra support and facilitate
decisions. The coalition dominance resolves conflict by consolidating power
around a central figure, enabling him to fore the opponent to give up the fight.
(Robbins et al, (2004:205)

Avoidance

Conflict can also be reduced by avoiding it altogether. This involves efforts on

the part of the conflicting parties either to withdraw or disguise the
inconsistency. By withdrawing, one party enables the other to 'win', that is,
becoming the sole occupant of the goal. Moreover, conflict can also be managed
by redefining the goals through mutual withdrawal and establishing other non-
over-lapping goals. Sometimes, subordinates withhold or suppress unpleasant
information to avoid conflict with their superiors. This technique merely
facilitates the avoidance of conflict rather than its resolution. (Robbins et al,
(2004:206)

Smoothing
In this technique, differences between parties are disguised while similarities
are highlighted. It enables the conflicting parties to realize that they are not
very much a part from each other. This shared viewpoint enhances the
possibility of working together towards a commonly held goal.

Compromise
This technique forms a commonly used method to benefit all the parties in a
conflict in one way or the other. Either the 'goal object' is divided among the
competing parties or one party provides something else to the other in exchange
for the desired outcome.

18
This method may involve offers and counter-offers, and proves effective in
arriving at a mutually satisfying solution, where the competing parties are of
nearly equal strength. It is influenced heavily by the relative strength of the
parties. This technique merely provides a temporally solution and conflict may
recur with the emergence of suppressed demands.

Hierarchical Decision-Making
In addition to compromise, appeal for hierarchical decision-making can be
made by the parties in conflict. Sometimes, an appeal to change, such as
tossing a coin-can be made to resolve conflict by compelling the loser party to
withdraw from the situation. An appeal to positional authority or authoritative
command can also be used to resolve conflict. Thus, a common superior can be
requested to use his authority to resolve conflict through a proper decision.

Problem-Solving
This technique seeks to resolve conflicts through face-to-face confrontation and
embodies measures to accomplish the common interests of the parties in
conflict. The conflicting parties are required to come together to resolve the
problem instead of accommodating each other's divergent viewpoints.

Bargaining
Unlike in dominance, here both parties recognize their mutual dependence and
work together satisfactorily to resolve the conflict rather than eliminating the
other side. On the other hand Marry Ann (2004:208) explained approaches to
conflict management in a way by:

Emphasizing Super Ordinate Goals

One way to minimize conflict is by focusing everyone on super-ordinate goals.
Super ordinate goals are common objectives held by conflicting parties that are
more important than the departmental or individual goals in which the conflict
is based. Focusing attention on super-ordinate goals is particularly useful
where conflict is caused by goal incompatibility and differentiation.

19
Reducing Differentiation
Super-ordinate goals offset differentiation by establishing a common frame of
reference, but they don't actually remove any of the underlying diversity that
people bring to the relationship. To reduce differentiation, one must alter or
remove the conditions that create these differences in the first place. It could be
for example by having everyone to wear the same work clothes.

Improving Communication and Understanding

Communication is critical to effective conflict management. By improving the
opportunity, ability, and motivation to share information, the parties develop
less extreme perceptions of each other than if they rely on stereotypes and
emotions. Direct communication provides a better understanding of the other
party's work environment and resource limitations. It's also important to
introduce dialogue meetings, in which the disputing parties discuss their
differences.

Reducing Task Interdependence

Another way to minimize dysfunctional conflict is to reduce the level of
interdependence between the parties.

Increasing Resources
An obvious way to reduce conflict due to resource scarcity is to increase the
amount of resources available. Corporate decision makes might quickly dismiss
this solution because of the costs involved. However, they need to carefully
compare these costs with the costs of dysfunctional conflict arising out of
resource scarcity.

2.9. Clarifying Rules and Procedures

Some conflicts arise from ambiguous decision rules regarding the allocation of
scarce resources. Consequently, these conflicts can be minimized by
establishing rules and procedures. "I think the key to avoiding conflict is to be
up front and tell people what you expect", advises Hubert Hawkins. One way to
clarify rules is to establish a schedule for sharing scarce resources.

20
Managerial Implications
According to UMA Sekaran, (1989:215)
There are several indicators s to h6w managers should handle conflict and get involved
in negotiation, should it become necessary. Below a few suggestions are enumerated:
1. Be aware of destructive conflicts and take appropriate action to minimize, if
not all together prevent their ill effects.
2. Since workflow interdependencies, role ambiguity, resource scarcity and
power and value differences are instrumental in creating conflicts, be aware
of the potential problems and incorporate the necessary structures to
prevent them.
3. Super-ordinate goals are a good strategy to overcome conflict in some
instances. Identify such situations and use it as a means to resolve conflicts
wherever necessary.
4. Appealing to common goals and value systems also reduces conflict.
5. Inter group conflict could be dealt with by taking an integrative problem
solving approach, making organization design changes and through
mediation.
6. Staff-line conflict could be minimized by clearly defining the functions of each,
letting staff know that their role is advisory, and the line personnel realize that it
is useful and important to heed good suggestions.
7. Be ware of surrounding yourself with "yes men".
8. Play the devil's advocate when things are stagnant.
9. Take a situational approach to managing conflict use competition for quick
decision making and immediate action, collaboration for integrative long term
solutions, accommodation for establishing reasonableness, compromise for
temporary settlement of issues, or when collaboration or competing do not yield
the expected results, and avoidance when the issues are trivial.
10. Display sensitivity in cross cultural negotiations and be aware of differences in
the orientations of the contending parties.
11. To improve negotiating effectiveness (i) try to understand and predict the
strategy of the opposing party, (ii) crate a climate of trust, (iii) start with a
positive approach and yield to minor differences initially; (iv) address issues and
not the individual and (v) be a good listener.

21
 CHAPTER THREE
DATA ANALYSIS AND PRESENTATION

This chapter of the study is mainly concerned with presentation analysis and
interpretation of data collected through questionnaire and interview. The
majority of data were gathered from the employees and the interviews were
conducted with the manager. The questionnaires were distributed to all
employees in the organization. The total number of questionnaire distributed
was 170 which is the total number of employees; out of 170 questionnaires
distributed to employees 126(73.5%) questionnaires were properly completed
and returned. Accordingly, the obtained facts are presented, analyzed and
interpreted below:

3.1. Respondents Biography

Table 1: General Characteristics of Respondents

S. Respondents
Question
No. Frequency Percentage (%)
1 Sex

Male 68 54.4

Female 58 45.6
Total 126 100
2 Age

18-29 74 59.2

30-39 37 29.6

40-49 15 11.2

Above 49 - -
Total 126 100
3 Educational qualification

10th or 12 complete - -

Certificate - -

Diploma 18 14.4

B.A degree 89 71.2

MA 17 13.6

Above M.A 2 1.6
Total 126 100

Source: Primary Data, 2011

22
Question 1 of table 1, reveals that about 58(45.6%) of the sample populations
are females while the rest of them are males. Regarding question 2 of the same
table, 37(29.6), 74(59.2%) of the respondents were in age group between 30-39,
18-29 and 40-49 respectively. As far as educational qualifications of
respondents are concerned, as shown in question 3 of table 1, 18(14.4%) are
diploma graduates, 89(71.2%); 17(13.6%) of the respondents are degree and MA
holders respectively, the rest 2(1.6%) ones are above M.A. holders. So the
majority of the respondents are male. And age group between 18-29 and most
of them are B.A degree holders.

From this we can infer that majority of all respondents are B.A holders. This
enables the corporation to undertake its work simply by familiarizing them with
the advanced technology.

Having the majority of the employees being male have allowed the women to get
respect and encouragement in the organization, and most of the employees are
between 18-29 which are in a very alert, and with a good potential age group,
which allows the organization to have a very good workforce.

3.2. General Information

3.2.1. Trainings on Conflict Management
There are many ways through which employees and management are aware
about conflict management; from these training is the one, regarding these,
respondents were asked; and, their responses are depicted in the table below:

Table 2: Training on Conflict Management

S. Respondents
Question
No. Number In %
1 Have you ever taken any formal training on
conflict management?

Yes 57 66

No 69 34
Total 126 100

Source: Primary Data, 2011

23
As indicated in table 2, 34.4% of employee respondents confirmed that they
have not taken trainings entitled conflict management rather they took
professional trainings. 66.6% of respondents took such trainings. This shows
that special concern has not been given to conflict management in the
organization.

3.2.2. Challenges of Conflict Handling Techniques

As briefly discussed in the literature review part, there are many techniques
that are used to handle conflicts effectively. To asses the effectiveness of
conflicts handling in the corporation, the respondents were asked to indicate
their views regarding the challenges of conflict handling techniques and their
responses are tabulated as shown below.

Table 3: Challenges of Conflicts Handling Techniques

S. Respondents
Question
No. Number In %
1 Do you think conflict resolution has been hard to
handle?

Yes 61 48

No 65 52
Total 126 100

Source: Primary Data, 2011

Table 3 indicates majority of the employees, which are 52%, said that conflict
resolution has been easy or simple task to handle and 48.8% indicated that it
was hard to handle conflicts in the organization. Therefore it appears that even
if handling conflicts in the organization wasn't hard for the majority. There is
still large number of employee struggling with conflict handling. Therefore it
appears that due emphasis is not given to the conflict management practices in
the organization.

24
Table 4: The Employee's View towards the Effects of Conflicts in
the Organizations Success
S. Respondents
Question
No. Number In %
1 Do you think the organization would be
successful if there was not any kind of conflicts?

Yes 54 44

No 72 56
Total 126 100

Source: Primary Data, 2011

Table 4 indicates that 72 the majority of the respondents that is 56% do not
think the organization would be successful if there was not any kind of
conflicts. This shows that the majority of the employees in the organization
have noticed the functionality of conflicts. 44% of the respondents think the
organization would be successful if there was not any kind of conflicts, this
shows that 44% of the employees in the organization have a negative view
towards conflicts for the organization's success.

25
 Potential Sources of Conflict
Table 5: Respondents level of Agreement on the Potential Source of Conflict
Potential Sources of SA A N D SD Total
Conflict ≠ % ≠ % ≠ % ≠ % ≠ % ≠ %
Personal character 32 25.6 62 49 28 22.4 4 3 - - 126 100
Competition for limited
34 27.2 32 25.6 29 23.2 29 23.2 2 1.6 126 100
resource
Poor communication 55 44 34 27.2 27 21.6 10 8 - - 126 100
Collective or group decision
11 8.8 52 41.6 54 29.6 7 5.6 - - 126 100
making
Hierarchical structure 13 8.8 69 55.2 34 27.2 10 8 - - 126 100
Perceptional differences on
values, facts, norms and 24 19.2 29 23.2 61 48.8 12 9.6 - - 126 100
beliefs
Interdependent task
18 14.4 71 56.8 24 19.2 11 8.8 2 1.6 126 100
completion of one task

Source: Primary Data, 2011

Note 1: SA = Strongly Agree, A = Agree, N = Neutral,

D = Disagree, SD = Strongly Disagree

The primary data collected have shown that the causes of conflict in Ethiopian
Shipping Lines S.C are diverse. Among the potential sources of conflicts
mentioned in the literature review (chapter two), respondents described nearly
all of them as sources of conflicts in Ethiopian Shipping Lines S.C.

94(75.2%) of the questionnaire respondents have strongly agreed and agreed

that personal character as potential source of conflict in Ethiopian Shipping
Lines S.C 71.2% of respondents indicated that poor communication as source
of conflict in Ethiopian Shipping Lines S.C. interdependent tasks are also
indicated as source of conflict by 71.2% of the respondents.

26
Also 82 or (64%) of respondents strongly agree and agree on hierarchical
structure as a source of conflict, in the organization, only 53 respondents
indicated that perceptional differences on values, facts, norms as a source of
conflict in Ethiopian Shipping Lines. This shows that personal character, poor
communication and task interdependent are the major potential sources of
conflict in Ethiopian Shipping Lines.

Table 6: Conflicts with the Immediate Boss

S. Respondents
Question
No. Number In %
1 Have you ever been in conflict with your
immediate boss?

Yes 55 44

No 71 56
Total 126 100

Source: Primary Data, 2011

Table 6, shows that 71(56%) of respondent haven't been in conflict with-their

immediate boss that means the majority of respondents are working with out
conflict with their immediate both. In fact 54(44%) of respondents indicated
they have been in conflict with their immediate boss.

Table 7: Respondents Level of Satisfaction with Conflict

Resolution
S. Respondents
Question
No. Number In %
1 Were you satisfied with the conflict resolution?

Yes 34 61.8

No 21 39
Total 55 100

Source: Primary Data, 2011

27
 As shown in the table 7, the respondents who have been in conflict with their
immediate boss are 55 in number 34(61%) were satisfied with the conflict
resolution while 21(39%) were not satisfied with the conflict resolution
technique used. This shows that the conflict resolution in ESL'SC is not
effective.

3.2.3. Types of Conflict in Ethiopian Shipping Lines S.C

Table 8: Respondents Rating on the Type of Conflict in Ethiopian
Shipping Lines S.C
Relevant Type of Conflict SA A N D SD Total
in ESL'SC ≠ % ≠ % ≠ % ≠ % ≠ % ≠ %
Inter-departmental 16 12.8 62 49.6 24 19.2 22 17.6 2 1.6 126 100
Superior-Subordinate - - 35 28 58 46.4 33 26.4 - 126 100
Task Conflict 5 4 67 24.8 32 25.6 22 17.6 - 126 100
Conflict on the content of
4 3.2 51 40.8 45 18 26 20.8 - 126 100
work
Intra-personal (within the
8 6.4 28 22.4 67 52.8 21 16.8 2 1.6 126 100
person
Inter-personal (between
6 4.8 32 25.6 55 45.6 31 22.8 2 1.6 126 100
persons)
Intra-group 6 4.8 29 23.2 66 52 25 20 - 126 100
Intra-organizational (within
10 8 18 14 75 60 19 15 4 3 126 100
organization)

Source: Primary Data, 2011

Note 1: S.A = Strongly agree, A= Agree, N = Neutral, D = Disagree

SD= Strongly Disagree

As it is shown in the table 8 the most prevalent type of conflicts which were felt
by the respondents are inter-departmental, which is 78(62.4%) of respondents.
Conflict on the content of work is the next most frequently indicated type of
conflict, which are 67 (52.8%). Inter-personal or between persons is another

28
type of conflict in the Ethiopian Shipping Lines SC it was indicated by 30.4% of
respondents, intra-group. Intra-personal, task conflicts wee indicated with the
same frequency which is 28% of the respondent. Only 22.4% of the respondents
indicated intra-organizational conflict as the most frequent type of conflict.

This indicates inter-departmental, conflict on the content of work, inter-

personal types of conflict are the major types of conflict in Ethiopian Shipping
Lines S.C.

Table 9: Respondents Attitude towards Conflict

S. Respondents
Question
No. Number In %
1 What do you think about conflict resolution?

Advantageous 21 16.8

Disadvantageous 20 16

Both 85 67.2
Total 126 100

Source: Primary Data, 2011

Employee's opinion towards conflict has a major effect on conflict handlings. So

the respondents were asked about their opinion towards conflict and the above
table indicates that the majority of the respondents 85(67.2%) have an opinion
of conflict that it is both advantageous and disadvantageous, which is a good
opinion as was indicated in the literature review, the rest 21(16.8%) and
20(16%) thinks that conflict is advantageous and disadvantageous respectively.

29
Table 10: Respondents Opinion towards the Outcome of Conflict
S. Respondents
Question
No. Number In %
1 Which one do you think is potential negative
outcome of conflict?

The distance between employees increase 2 1.6

Resistance developed rather than team 50 40
work.

An increase in an employee turnover. 33 26.4

The climate of mistrust and suspicion
developed 18 14.4
Total 103 100

Source: Primary Data, 2011

Those who indicated conflict as disadvantageous were asked to choose the

potential negative outcome of conflict they think. As shown in the table 10,
50(40%) of the respondents indicated the avoidance of teamwork and resistance
development between workers as the major negative outcome of conflict. An
increase in an employee turnover is also the second major outcome of conflict
indicated by the employees of the Ethiopian Shipping Lines which is 33 in
number, 18 respondents indicated the climate of mistrust and suspicions
develop as another negative outcome of conflict. Only 2 respondents indicated
the increase of distance between employees as the negative outcome of conflict.

Table 11: Effectiveness of Conflict Resolution Techniques in ESL'SC

S. Respondents
Question
No. Number In %
1 Are conflict resolution techniques effective in
ESL'SC?

Yes 51 40

No 75 60
Total 126 100
Source: Primary Data, 2011

30
Table 11, indicates majority of the employees which is 60% said that the
corporation does not take appropriate measures to resolve conflicts. So the
effectiveness is less and only 51 respondents pointed the conflict resolution
techniques as effective.

Therefore it appears that the emphasis is not given to the conflict management
practices in the corporation: most measures taken are not satisfactory and
effective.

Table 12: Issues Related to the Mechanisms of Techniques used to

Resolve Conflict Frequently
S. Respondents
Question
No. Number In %
1 Techniques which have been used to resolve
conflict frequently?

Avoiding 10 8

Smoothing 54 43.2

Forcing 28 22.4

Problem solving 34 26.4
Total 126 100

Source: Primary Data, 2011

If there are conflicts, there are also techniques to resolve them. So the student
researcher attempted to know the techniques used by ESL'SC. From the table
12 it is possible to observe that, problem solving type of handling techniques
are used as 34(26.4%) of respondents indicated. Smoothing is the other types of
techniques used in the ESL'SC as 54(43.2%) of respondents indicated, forcing
was pointed by 28(22.4%) of respondents. Avoiding hasn't been the most
important techniques in the organization as only 10 respondents indicated it.
From the data one can infer that quite large number of respondents believe in
problem solving to handle conflicts.

31
Table 13: Managers Contribution in Minimizing the Occurrence of
Conflict
S. Respondents
Question
No. Number In %
1 In what way does the management contribute in
minimizing the occurrence of conflict between the
workers?

By giving appropriate information 32 24.8

By giving on time information 17 13

By making an open discussion and 47
participating the workers. 59

By giving trainings. 18 14.4
Total 126 100

Source: Primary Data, 2011

In any organization the management should play a great roll in minimizing the
occurrence of conflicts. The management is the one who should make a
peaceful working environment by using different ways, so the respondents were
asked in what way the management has contributed in minimizing the
occurrence of conflict between the workers. So as shown in the table 13,
59(42.2%) of respondents indicated that the management contributed by
making an open discussion and participating the workers, which is very good
but as shown in the table the rest supported by giving appropriate information,
giving on time information and giving trainings 32(24.8%), 17(13.6%) and
18(14.4%) respondents respectively.

32
Table 14: Issues Related to Conflicts Handling
S. Respondents
Question
No. Number In %
1 Most of the time who were responsible in
handling the conflicts in ESLS'C?

The management 80 64

The committee being organized 15 12

The labour union 12 9.6

By the conflicting parties 19 15.2
Total 126 100

Source: Primary Data, 2011

Depending on the types of conflict, every employee, unions, committee or parties in the
organization should take part in conflicts handling. So, the respondents were asked
who were responsible in handling conflicts in ESLS'C. As shown in the table 80(64%) of
respondents indicated the management as responsible in handling the conflicts. The
committee organized, the labour union and the conflicting parties were supported by
15(12%), 12(9.6) and 19(15.2%) respondents respectively. This shows that the
management is being more responsible in handling conflicts in ESLS'C.

Table 15: Conflict Resolution Consideration in ESLS'C

S. Respondents
Question
No. Number In %
1 How do you think conflict resolution is considered
in ESL'SC?

By no means conflict resolution is seen as
a role of management 17 13.6

Accepted as vital role of management on
paper but not exercised/ 27 22

Accepted as vital role of management and
exercised effectively. 24 18.2

Accepted as vital role of management and
exercised ineffectively. 58 46.4
Total 126 100
Source: Primary Data 2111

33
As discussed in the literature review, conflict resolution is one of the major
roles of management and should be exercised properly or effectively, in order to
asses how conflict resolution is considered in ESL'S. As shown in the table
58(46.4%) of the respondents indicated that conflict resolution is accepted as
vital role of management but exercised ineffectively. 27(22%) of respondents
said that conflict resolution is accepted as vital role of management on paper
and not exercised. Only 13.6% of respondents think that conflict resolution is
by no means seen as a role of management this shows that conflict resolution
is accepted as vital role of management but exercised ineffectively or not
exercised at all in ESL'SC. So there is less understanding and awareness about
the contribution of conflict resolution to the organization and how it should be
experienced.

Table 16: The General Conflict Management Practice in ESL'SC

S. Respondents
Question
No. Number In %
1 How do you express the general conflict practice
in ESL'SC?

It is something that needs reform in order
to contribute for the corporation goal
achievement. 51 40.8

The corporation must continue in the
existing mode of conflict practices. 16 12.8

Before taking any transformation measure,
the conflict management practice must be
studied throughout. 18 14.4

It is difficult to express. 41 32
Total 126 100

Source: Primary Data 2111

34
The degree of emphasis given to conflict and conflict management is
insignificant as compared to other activities in Ethiopian Shipping Lines S.C.
As indicated by 51(40.8%) of the respondents, the conflict management practice
in ESL'SC is something that needs reform in order to contribute for the
corporations goal achievement, this shows the current conflict management
practice in ESL'SC is not satisfactory. 41(32.8%) of respondents pointed that it
is difficult to express the whole situation towards conflict. This shows that
there is no awareness towards conflict management practice in ESL'SC.
18(14.4%) of the respondents indicated, before taking any transformational
measure, the conflict management practice must be studied thoroughly, and
only 16(12.8%) respondents indicated that the corporation must continue in
the existing mode of conflict practices.

Table 17: Conflict Impact on the Organizations Achievement

S. Respondents
Question
No. Number In %
1 If conflict resolution is not accepted as vital role of
management how will it affect the organization's
development?

It will not have any negative consequence 26 20.8
on ESLSC achievement.

It will affect the whole employee relation
which leads to less performance and less 78 62.4
development.

It is difficult to explain its impact on 8 6.4
organizations achievement. 14 11.2

None
Total 126 100

Source: Primary Data 2111

35
In all organizations there are consequences of conflict which are very
destructive and have impact on the organizations goal achievement. So conflict
management should be accepted as a role of management. Respondents were
asked if conflict resolution was not accepted as vital role of management and its
impact on the organizations development. The majority of respondents
78(62.4%) indicated that it will affect the whole employee relation which leads
to less performance and less development. 26(20.8%) of respondents indicated
that it will not have any negative consequence on ESLSC achievements, which
shows that there is less awareness to conflict resolution in the ESLS'C, that
means they didn't understand the importance of conflict resolution in the
organizations achievement.

Table 18: The Outcome of Conflict

S. Respondents
Question
No. Number In %
1 Which one is real in ESL'SC as an outcome of
conflict?

Conflict encourages people 15 12

Conflict encourages better decision making 34 27.2

Increases employees turnover 55 44

Conflict is an educational experience. 22 17.6
Total 126 100

Source: Primary Data 2111

The potential outcomes (impacts) of conflict on organization depend on the type

of conflict and the way the organization resolves the conflict. According to
Robbins et al (2004:203) relationship conflicts are almost always dysfunctional
since the friction and interpersonal hostilities inherent in relationship conflicts
increase personality clashes and decreases mutual understanding, which
hinders the completion of organizational task. On the other hand, low levels of
process conflict and low to moderate levels of task conflicts are functional.
Dominant numbers of the respondents 55(44%) believe that conflict increases

36
employees turnover in ESL'SC, 34(27.2%) of respondents believe that it
encourages better decision making and 22(17.6%) and 15(12%) of respondents
believe conflict is an educational experience and it encourages people
respectively. This shows that conflict in ESL'SC has brought much employees
turnover and there is ineffective conflict resolution in ESL'SC.

Interview Result Analysis

The Existence of Conflict in ESL'SC
The interviews conducted with management in human resource department
showed the existence of conflict among different groups. Some of the inter-
group conflicts mentioned were conflict between the management and labour
union, conflicts between the management and labour union, conflicts between
the management and different comments and among functional units.

Conflict Resolution Techniques used in ESL'SC

Human resource department head briefly gave detail explanation about conflict
resolution techniques as follows:

Discussion is carried out to solve those conflicts which are found among the
employee association and the management. These two parties discuss each
other about their situation openly. If it doesn't work, a third body the third
body interferes among the management and the employee association and tires
to resolve the conflict. It also tries to create peaceful condition as much as
possible.

The techniques that the organization has been using to resolve conflicts have
its own good and bad side. The advantage of the technique is to develop open
discussion and contributed to the organizations development. Its difficulty or
drawback is that it is time taking, and going for temporary solution to problem
rather than identifying the root cause.

37
The existing technique in ESL'SC hasn't been much effective because of some
reasons.
Some of the reasons were indicated as:
o Communication set backs during negotiating
o People argue back and forth
o Parties may not talk to each other
o People not being an active listener
o People not using appropriate language
The other problem is that there is lack of open-mindedness and the people
being very emotional, judgmental while evaluating the issues.

38
 CHAPTER FOUR
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
This chapter summarizes and concludes the finding of the research and
forward possible recommendations.

4.1. Summary
The main focal area of this research paper is to assess the effectiveness of
conflict and conflict management practices in Ethiopian Shipping Lines S.C.
Specifically, the source of conflict, the types of conflict, the attitude of
employees towards conflict and the degree of importance given to conflict
resolution as a role of management. To answer the research questions data was
collected using questionnaire and interview. For subsequent analysis, the
review of related literature was organized from various books, journals and
internet.

The assessment of conflict and conflict management practices in ESL'SC

indicated the following major findings.

55(44%) of the questionnaire respondents and all the key informants
reflected the existence of conflict in ESL'SC. However, 56% denied its
existence.
The types of conflicts in ESL'SC are many. Some of the prevalent types
include:-
o Inter – Department Conflict
o Task Conflicts
o Inter-personal conflict

55% of respondents were in conflict with their immediate boss in
ESL'SC. Among them 69% were dissatisfied with the conflict resolution.

Dissatisfied respondents either resisted the decision or tried to leave
their jobs or accepted the decision with dislike.

69% of the respondents remarked that they haven't taken any formal
training on conflict management.

39

The potential outcome of conflict is dominantly the negative impact of
conflict. As the findings indicated an increase in an employee turnover
and decrease in team are some of the potential negative outcome of
conflict.

Among the major conflict resolution techniques, smoothing is used
dominantly in the organization. It has been a temporary solution, and
conflicts kept on resurface again in the course of time.

The findings have shown that the causes of conflict in ESL'SC are
numerous. The questionnaire respondents indicated: personal
characters poor communication interdependent task, and hierarchical
structure as a source.

67% of employee's indication towards conflict is both as advantageous
and disadvantages, which relates to negatively to the traditional thought.

The management was the one responsible in handling the conflict in
ESL'SC most of the time but the social affairs acts as a third party in
handling conflicts.

46.4% stated that conflict resolution is accepted as vital role of
management but exercised ineffectively, 22% believed that conflict is
accepted as vital role of management on paper but not exercised. 18.2%
stated conflict resolution is accepted as vital role of management and
exercised effectively, the management key informants explained the
degree of emphasis given to conflict and conflict resolution is
insignificant as compared to other activities due to lack of awareness
and giving no concern.

60% of respondents indicated the whole conflict resolution practice in
Ethiopian Shipping Lines as ineffective. But the management key
informants believed that the existing conflict resolutions in ESL'SC are
effective to some extent. Though they mentioned some drawbacks as
giving low concern to conflict resolution and going for temporary
solutions to problem rather than identifying the root causes of conflict.

40
4.2. Conclusions
To research findings from the questionnaire and interviews showed that:

Trainings are not prepared to broaden the understandings of employees
on concepts of conflict and its management. Therefore, it is possible to
conclude that they are not familiar with the modern view of conflict
management issues.

The sources of conflicts are so many in ESL'SC which have been hard to
identify why these many causes of conflict exist in the organization.

Because of poor communication system, communication breakdowns
occur. These communication breakdowns tend to lead to conflicts as
respondents of ESL'SC indicated.

Findings show that, ESL'SC management has better understanding on
concepts of conflict management. Therefore conflicts are seen in both
directions, i.e., as functional and dysfunctional.

Regardless of their participations in the conflict resolution processes, the
dominant numbers of respondents were dissatisfied. Due to
dissatisfaction with the resolution, most of them resisted the resolution
while few tried to leave their jobs; but the rest accepted the decisions
regardless of their resentment.

The conflict resolution practices in ESL'SC are ineffective and conflicts
are not resolved to the best interest of the offices and employees.

The analysis made in this chapter clearly shows that the conflict
management practices in ESL'SC are something that needs due attention
for its success.

41
4.3. Recommendations
These recommendations are made based on the conclusions, drawn and the
findings of the study.

ESL'SC has the aim and objectives to be one of the most competitive
Shipping Lines in Africa. In order to attain this objective, ESL'SC top
management need to give due attention for conflict management as part
of its effort to achieve its vision.

ESL'SC must accept the usually existence of conflict and they must work
to create understanding about its advantages and the nature of conflicts
by giving training. So that the advantage would be for both of the
employees satisfaction and for the organizations development.

Since workflow interdependencies, role ambiguity, and power and value
differences are instrumental in creating more of dysfunctional conflicts,
the management need to proactively respond to conflicts resulting from
such factors.

The sources of conflict must be studied so that this organization can
resolve conflicts more easily.

Instead of using smoothing techniques which is dominantly temporary,
the organization must employ other conflict resolution techniques
depending on the situation the technique works best.

Not only ESL'SC has to accept conflict resolution as vital role of
management but must exercise it effectively. So that it can use conflict
for change, creativity, innovation and also resolve it as early as possible.

42
 BIBLIOGRAPHY

Boulding Elise. (1965), Conflict Management in Organization. Broun

and Breem Kield, Inc, USA.

Ethiopian Shipping Lines S.C (2011). Company Profile.

Mc Shane Steven L. (1949), Organizational Behavior. Broun and Breem
Kield, Inc, USA.

Moorhead, G and Griffin, RW. (2001), Organizational Behavior:

Managing People and Organizations. Houghton Miffince: USA.

Mullins, L. J. (2005), Management and Organizational Behavior.

England: Person Education Limited.

Stephen P. Robbins. (1989), Organizational Behavior. Fourth edition,

Prentice Hall, New Delhi.

Robbins, S. P, Mary, C., Cheeseman 4, and Gilliland, C. (2004),

The Human Side of Organizations. 2nd ed. Untied States of
America: Published by prentice-Hall, Inc.
Appendix A:
ST. MARY'S UNIVERSITY COLLEGE
BUSINESS FACULTY
DEPARTMENT OF MANAGEMENT
Questionnaire to be filled by Ethiopian Shipping Lines S.C
Employees
Part I: General Remark
The purpose of this survey is to obtain reliable information about conflict
and conflict management practices in ESL.SC.

All information provided will be kept confidential and only used for
academic purpose. There is no write or wrong answer and just show the
level of opinion to each item.
Thank you for your willingness!!

Direction: Put a tick mark (  ) in the box ( ) for the answer you choose.
Part II: Background Information
1. Respondents personal information
1.1. Sex Male Female
1.2. Age 18-29 30-39 40-49 Above 49
1.3. Service year in the organization
Below 1 year 1-5 years 6-10 years
11-15 years 16-20 years Above 20
1.4. Position in the organization
1.5. Level of education
Below certificate Certificate Diploma
B.A Degree MA Degree Above MA
General Information
1. Have you taken any courses or trainings on the job about conflict
management practice?
Yes No

i
 2. Do you think conflict resolution has been hard to handle?
Yes No
3. If your answer is yes for question no (3), what is your reason?

4. Do you think the organization would be successful if there were

not any kinds of conflicts?
Yes No
5. The following table provides the potential source of conflict. Rate
them on the bases of their frequency of occurrence in the
organization.

Disagree
Strongly

disagree
Neutral

Strong
Agree
agree
Potential sources of conflict in
No
ESL'SC

A) Personal character
B) Competition for limited resources
C) Poor communication
D) Collective or group decision making
E) Hierarchical structure
F) Perceptional differences on values,
facts, norms and beliefs
G) Interdependent task - completion of
one task depends on completion of
another task

6. Have you ever been in conflict with your immediate boss?

Yes No
7. If your response is yes to question no 7, were you satisfied with the
conflict resolution?
Yes No

ii
 8. Which type of conflicts below are the most prevalent in ESL'SC
Rate them on the basis of their frequency of occurrence in ESL'SC.

Disagree
Strongly

Strongly
disagree
Natural
Agree
agree
No Types of Conflict in ESL'SC

8.1 Inter-departmental
8.2 Superior-subordinate
8.3 Task conflict
8.4 Conflict on the content of the work
8.5 Intra-personal (within the person)
8.6 Inter-personal (between two persons)
8.7 Intra-group (with the group)
8.8 Intra-organizational (within the
organization)

9. What is your opinion towards conflicts?

Advantageous (functional) Both
Disadvantageous (dysfunctional)
If other mention

10. If your answer is dysfunctional for question number 9, which one

do you think is the potential negative outcome of conflict?
The distance between employees increased
Resistance developed rather than team work
An increase in an employee turnover
The climate of mistrust and suspicion developed
Other opinion

11. Are conflict resolution techniques effective in ESL'SC?

Yes No
More opinion

iii
12. What techniques or mechanisms have been used to resolve
conflicts frequently?
Avoiding Smoothing Forcing
Problem solving Other
13. In what way does the management contribute in minimizing the
occurrence of conflict between the workers?
By giving appropriate information
By giving on time information
By making an open discussion and participating the workers
on idea sharing
By giving trainings
If there is another, please mention

14. Most of the time who were responsible in handling the conflicts in
ESL'SC?
The management
The commete being organized
The labour union
By the conflciting parties
If there is another please mention

15. How do you think conflict resolution is considered in ESL'SC ?

By no menas conflcit is seen as role of management
Accepted as vital role of management on paper but not
exercised.
Accepted as vital role of management and exercised
effectively.
Accepted as vital role of management but exercised in
effectively.
If there is another please mention

iv
16. How do you express the general conflict practice in ESL'SC?
It is something that needs reform in order to contribute for
the corporation's goal acheivement
The corporation must continue in the existing mode of
conflict practices.
Before taking any transformation measure, the conflict
management practices must be studied thoroughly
It is difficult to express as to what measure will be taken
Any other opinion

17. If conflict resolution is not accepted as vital role of management

how do you see its impact on achievement of the corporation's
developmental and profit oriented goals?
It wil not have any negative consequence on ESL'Sc
acheivment
It will affect the whole employee relation which leads to less
performance and less developmetn of the organization.
It is difficult to explain its impact on organizations
achievement
None
18. Which one is real in ESL'SC as an outcome of conflict?
Conflcit encoruages people
Conflcit encourages better decision making
Increases employees turn over
Cofnlcit is an eductional experience
Any other opion
19. If you have any additional information on conflict management of
your organization would you explain

v
Appendix: B

ST. MARY'S UNIVERSITY COLLEGE

BUSINESS FACULTY
DEPARTMENT OF MANAGEMENT

Interviewees with Management of Ethiopian Shipping

Lines S.C

1. Do you think conflict exists in ESL'SC?

2. What are the frequently conflicts in the organization?
3. Which techniques do you use in resolving the conflicts?
4. Do you believe the existing conflict resolution techniques are
effective enough? What are the major weaknesses of the
techniques?
5. Do you think managing conflicts in the organization has
contributed to its development?
 DECLARATION

I, the undersigned, declare that this senior essay is my original work,

prepared under the guidance of Ato Abera Legesse. All sources of
materials used to the manuscript have been dully acknowledged.

Name: RUTH ARAYA

Signature:

Place of Submission: St. Mary's University College

Date of Submission:
 THE ADVISOR'S DECLARATION

This senior essay has been submitted for examination with my approval
as an advisor.

Name:

Signature:

Date: