Analysis of Work Conflict and its Impact on Employee Productivity of PT Riau Sakti United Plantations Coconut Plantation on Bird Island

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FORMOSA NEWS - Riau - Workplace Conflict Found to Reduce Employee Productivity in Indonesian Coconut Plantation. A 2026 study by Parno Lintang, Widyawati, and Dharmasetiawan from Indragiri Islamic University reveals that workplace conflict significantly lowers employee productivity at PT Riau Sakti United Plantations (RSUP), a major coconut plantation company in Indragiri Hilir, Riau. Published in the Formosa Journal of Sustainable Research, the research highlights how unresolved tensions among employees and departments can directly impact operational performance and business outcomes. The findings matter for labor-intensive industries such as agriculture and manufacturing, where coordination and teamwork are critical. As companies face increasing production targets and workforce pressures, understanding how internal conflict affects productivity has become a key management concern.

Background: Rising Conflict, Falling Productivity
PT RSUP has experienced a steady decline in productivity in recent years. Company data shows that productivity dropped from 92% in 2022 to 81% in 2024, alongside increasing reports of employee conflict, stress, and burnout.
The study identifies several recurring sources of conflict within the plantation environment:

• Unequal workload distribution between departments.
• Disputes over shift schedules and working hours.
• Poor coordination between production, packaging, and quality control teams.
• Delays in reporting and communication breakdowns.
• Differences in performance standards and expectations.

These issues often escalate into broader organizational tensions, affecting morale and disrupting workflow. In plantation operations, where tasks such as harvesting and processing require tight coordination, even small conflicts can create bottlenecks and delays.

Methodology: Surveying 171 Employees
The researchers conducted a quantitative study using an associative research design to examine the relationship between work conflict and employee productivity.
Key aspects of the methodology include:

• Population: 300 employees across production, administration, and field roles.
• Sample: 171 respondents selected using the Slovin formula.
• Data collection: Questionnaires (Likert scale), interviews, and company records.
• Analysis: Simple linear regression using SPSS.

Work conflict was measured through indicators such as differences in goals, competing interests, and interpersonal tensions. Productivity was assessed based on employee ability, motivation, work ethic, and discipline.

Key Findings: Conflict Has a Clear Negative Impact
The study delivers a clear conclusion: higher levels of workplace conflict lead to lower employee productivity.
Main results include:

• A negative regression coefficient (-0.306) indicates that each increase in conflict reduces productivity.
• The relationship is statistically significant (t = -5.026; p < 0.05).
• Work conflict explains 12.5% of productivity variation, with the rest influenced by other factors.

In practical terms, this means that while conflict is not the only driver of productivity, it plays a measurable and meaningful role. The researchers emphasize that unmanaged conflict reduces focus, slows decision-making, and weakens collaboration. Over time, this leads to lower-quality output, increased errors, and declining employee motivation.

Real-World Implications for Industry and Management
The findings offer practical lessons for companies operating in high-pressure environments:

• Strengthen Communication Systems. Clear and timely communication between departments can prevent misunderstandings and reduce friction.
• Clarify Roles and Responsibilities. Ambiguity in job roles is a major source of conflict. Defining responsibilities helps minimize overlap and disputes.
• Improve Conflict Management Strategies. Organizations should adopt structured approaches such as mediation, team discussions, and collaborative problem-solving.
• Monitor Employee Well-Being. Rising stress and burnout are closely linked to conflict. Addressing workload and mental health can improve both morale and productivity.
• Consider Broader Productivity Drivers. Since conflict accounts for only part of productivity variation, companies should also focus on leadership quality, motivation, compensation, and work environment.

For policymakers and business leaders, the study highlights the importance of human resource management in sustaining productivity, especially in sectors reliant on manual labor and teamwork.

Author Profiles

Parno Lintang, S.E. – Researcher in human resource management, Universitas Islam Indragiri

Widyawati, S.E., M.M. – Lecturer and researcher in organizational behavior, Universitas Islam Indragiri

Dharmasetiawan, S.E., M.M. – Academic specializing in management and productivity studies, Universitas Islam Indragiri

Source
Parno Lintang, Widyawati dan Dharmasetiawan (2026).“Analysis of Work Conflict and its Impact on Employee Productivity of PT Riau Sakti United Plantations Coconut Plantation on Bird Island”. Formosa Journal of Sustainable Research (FJSR), Vol. 5 No. 3 tahun 2026.
DOI: https://doi.org/10.55927/fjsr.v5i3.22
URL: https://journalfjsr.my.id/index.php/fjsr