CONFLICT MANAGEMENT IN BANKING ORGANIZATION A STUDY OF UNITED BANK OF AFRICA (UBA) AND FIRST BANK OF NIGERIA PLC.

ABSTRACT

This study titled “conflict management in corporate organizations; A study of UBA, FBN Plc, Enugu Branch” is aimed at investigating the types, causes and effects of organizational conflicts  in  the  organization  as  well  as  the strategies adopted in managing the conflicts  in the bank. The survey research method was adopted for the study.  Primary data were collected from selected staff of the bank using questionnaire and interview techniques. Secondary data were collected from published works. Data were presented in tables as frequency distribution and analyzed with percentage and frequency. The Z-test technique was applied in testing the hypotheses. The major findings of the study were as follows;

–       Conflicts  regularly  occur  in  the  bank.  These  include intrapersonal, inter-personal and group-management conflict.

–      The   causes   range   from   personal   trait   and   goals,

organizational  policies   to   poor   communication  and reward system.

–      The  conflict  management  strategies  adopted  include

avoidance, accommodation, competition, compromise, collaboration,  mediation,  counseling,  team  resolution, etc.

–      Conflicts  have  adverse  effects  on  employees  and  the

organization.

–      Effective  conflict  management enhances organizational

performance.

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

Conflict is  a  regular feature of  formal organizations which results from divergences in interests of individual workers and management. Because individuals differ in their values, attitudes  and  goals,  conflict  among  them  becomes unavoidable. Conflict occurs at both individual and collective levels, personality and other structural factors coming into play. Obisi (2005:47) observes that there is intra-management conflict  just  as  conflict  situations  do  occur  between  and among groups of workers and their organizations as well as between individuals.

Two types of conflicts at work have been distinguished. These are organized and unorganized conflicts. Otobo (2005:125) expresses that organized conflict forms part of a conscious strategy to change the situation which is identified as source of discontent. This type of conflict is thus a group activity, involving deliberate decisions taken at a mass meeting or by selected representatives of affected staff.

In unorganized conflict, the worker responds to the situation in the only way open to him as an individual, that is, by with drawing from the source of discontent, or in reaction engaging in sabotage and rudeness Agwu (2006: 12) argues that such reaction rarely derives from any real calculative strategy. Indeed, unorganized expression of conflict are often, not regarded as conflict by the persons in the situation. This is why most people may not ordinarily associate acts of rudeness with being in a state of conflict. Quite often such rude behaviour may be attributed to “bad mood” and similar psychological states of mind. Conflicts in organizations, whether organized or unorganized individual or group, need to

be managed effectively because of their effects on the organization.

Conflict situations affect the overall effectiveness of co-operate organizations in the sense that they cause disharmony among organizational participants impacting negatively on organizational performance. This is because useful time and resources are wasted during conflicts in organizations. Nevertheless, we have to bear in  mind than on organization is immune to conflict within itself since every organization is made up of different individuals with diverse interests, goals, ideas and temperaments and it is very difficult to harmonize these divergences. As a corollary, interests and goals usually conflict between the individuals and the management team as well as within the management team members.

Conflict management is an important aspect of corporate management. Ugbaja (2002:111) notes that the aim of conflict management is not to create an ideal corporate situation since that is not attainable given the divergences in the individuals

goals, etc. However, conflict management   systematically uses the available conflict resolution strategies to build an effective mechanism for conflict management in corporate organizations. Although there may be existing mechanism and procedures already in place to deal with conflicts whenever they occur, some organizations with reactive managers rise to the situation when it occurs.

Dunlop (2002:321) expresses that the virtues of organizational harmony underscores effective conflict management which is indisputable to effective organization’s performance. For this reason every corporate organization strives to ensure good work environment in which relationships among workers on the one hand, and workers and management on the other are cordial and appreciated by all the organization’s participants. The banking industry is one such sector where conflict management is not only essential but should be effective given the   institutions’   vulnerability   to   huge   financial   losses whenever there is conflict.

Against  this  background,  therefore,  this  study  is  set  to examine conflict management in the United Bank for Africa, Plc with a view to determining its impact on its performance.

1.2  STATEMENT OF PROBLEM

Conflicts  in  organizations have  destabilizing effects  on  the overall  performance  of  the  organization.  It  leads  to  under performance since valuable time and resources (human and material) are used in controlling and managing conflicts rather than in enhancing output and productivity. Conflicts also lead to interpersonal disharmony in the organization which makes attainment    of    organizational   goals    difficult.    Attaining organizational goals is possible if efforts are always made to reduce the overall level of conflict within the organization. Consequently,  it  is  very  imperative  that  efforts  are  made towards finding ways of effectively managing conflict so as to achieve organizational objectives.  The problem of poor conflict management   in   corporate   organizations   with   particular

emphasis on UBA and First Bank of Nigeria, Plc is the focus of this study.

1.3  OBJECTIVES OF THE STUDY

The objectives of this study are;

i.      To   identify   the   causes   of   conflicts   in   corporate organizations.

ii.     To    examine    the    different    strategies    of    conflict management in organizations.

iii.    To determine the extent to which these strategies are effective.

iv.    To   determine   the   impact   of   conflict   on   workers’

productivity.

v.     To determine the impact of effective conflict management on organizational performance.

1.4  RESEARCH QUESTIONS

The following questions will be addressed in this study;

i.      What   are   the   causes   of   conflicts   in   corporate organizations?

ii.     What are the different strategies for conflict management in organizations?

iii.    To what extent are the strategies effective?

iv.    What is the impact of conflicts on workers’ productivity?

v.     What is the impact of effective conflict management on organizational performance?

1.5  HYPOTHESES

The following hypotheses are postulated for this study;

           Ho:   Organizational  conflict  does  not  arise  from  poor superior-subordinate relationship.

H1:   Organizational conflict arises from poor superior- subordinate relationship

       Ho:   Organizational conflict does  not  hamper  workers’

productivity.

H1:  Organizational      conflict      hampers      workers’

productivity.

           Ho:  Effective  conflict  management  does  not  enhance organizational performance

H1:  Effective       conflict       management       enhances organizational performance.

1.6  SIGNIFICANCE OF THE STUDY

This study is very important in several respects. Firstly, it will be beneficial to management in all corporate organizations. This is because conflict has become a regular and frequent feature of corporate organizations. By investigating the causes of organizational conflicts the study will be able to   find out how the conflicts will be minimized since   they cannot be completely avoided. Besides, in examining the causes of conflicts, the study will be able to determine why they re- occur. Furthermore, by examining how conflicts are managed, the  study  will  be  able  to  find  out  the  limitation  of  the strategies. All these will provide the basis on which recommendations will be made for the benefit of management.

Secondly the government will also benefit from the study. As conflicts occur at organizational level so do they occur in the public sector level. The findings of this study will be very

useful to the government in formulating effective strategies for managing conflicts in the public sector.

Thirdly, employees in both the private and public sector organizations will also benefit from this study. This is because it will show how their intra and inter-relationships bring about conflict and how they can accommodate one another or what approach to adoption order to avoid conflicts.

Fourthly, union leaders will also benefit from the study. This is because  the  findings  will  show  how  they  can  use  their positions in helping to ensure sustained harmony in corporate organizations.  Finally, the study will be useful for academic purpose. This is because students who will carryout related studies will use this project report as a reference material.

1.7  SCOPE AND LIMITATIONS OF THE STUDY

This study focuses on conflict management in corporate organizations. No doubt, it will be practically difficult to cover all organizations in this study. Hence, the scope of the study is

restricted to United Bank of Africa and first bank of Nigeria, Plc’s, Enugu.

The following are the limitations of the study;

1.     Uncooperative attitude of some of the staff of UBA, Plc who refused to complete the questionnaires given to them or  to be  interviewed for  fear  of official reprisal. Their refusal to  cooperate adversely affected  the  amount  of data collected through primary sources.

2.     Financial Constraint: The study could have been very extensive if more organizations were included. But the researcher could not afford the cost involved. Thus, the study is restricted to only one corporate organization.

3.     Time Constraint: The researcher could not complete the study within a record time because of the pressure of other academic works on her.

1.8  DEFINITION OF TERMS

Conflict:  This  refers  to  a  situation  of  disharmony  and grievance.

Organization: This refers to a combination or group of people who work together to achieve a goal.

Idiosyncrasy: This refers to a set of attitudes, behaviors and values which characterize an individual.

Goal: This refers to a set objective.

Goal congruency: This is a situation of overlapping personal interests.

Strategy: This is an approach or measure adopted in order to achieve a goal.

Corporate Organization: This refers to a business entity. Disharmony:  This   refers   to   a   situation   of   absence   of

togetherness.

Management: This refers to the art of planning, organizing, directing and controlling.

It also refers to decision-makers in a corporate organization.

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