EFFECT OF CONFLICT MANAGEMENT ON BUSINESS PERFORMANCE

Abstract

This study was on effect of conflict Management on business performance. Three objectives were raised which include: To ascertain the effect of conflict management on business productivity, to ascertain the impact of conflict management on effective and efficient of business performance and to ascertain the negative impact of conflict in organization. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from Micro finance bank Lapo, ilorin kwara state. Hypothesis was tested using Chi-Square statistical tool (SPSS).

Chapter one

Introduction

1.1Background of the study

In the early 1900’s, conflict was seen as an indicator of poor organizational management which needed to be avoided, in the mid 1950’s, it was accepted passively and perceived as normal and expected; manager focused on resolving conflict, while in the 1970’s, conflict was viewed necessary as not good or bad but could be used to promote growth, in the 1990’s, managers needed to confront and manage conflict appropriately (Algert and Watson, 2012). Conflict has historically been viewed as undesirable, something to be avoided (Azamoza (2015)). The Classical organization theorists believed that conflict produced inefficiency and was therefore undesirable, detrimental to the organization and should be eliminated or at least minimized to the extent possible (dysfunctional conflict). Perceptions about conflict changed with the emergence of social systems and open system theory. According to the social system theories, conflict is one of the central forms of interaction. Conflict is normal and positive as well as negative. This view was supported by Emile Durkheim that conflict is normal and functional because it brings about positive changes in an organization. Conflict, however, becomes negative if it is not managed and allows reaching a dysfunctional stage.

Conflict in an employment relationship has been an issue of continuing interest and debate. Conflict is a common occurrence in organizational life. It occurs when a desire goal or objective, the desire to obtain more in both economic (wages and benefit) and non-economic (contract provisions and operation practices) areas. Labour union also expects to make these gains via the bargaining process, the grievance and arbitration procedure and management default. The organized private sector on the other hand, resists all efforts of the union to restrict management freedom to make decision necessary to run business profitably. Conflict in organized private sector like banks is endemic and such various procedures have been developed for the available amicable settlement of these disputes. One of such procedures lies in the institutionalization of grievance device like collective resolution of these conflicts determine the success or otherwise of the organization. Organizational leaders need to manage conflicts between individuals in order to have a positive effect on organization.

Many of the studies on the impact of conflict management on organizational performance were done outside Nigeria. These studies particularly focus on educational institutions and manufacturing organizations. Research on conflict management and bank organizational performance are very few. In Nigeria, most of the available studies about conflict management such as Adebile and Ojo (2012), Osisioma, Osisioma and Chukwuemeka (2012), Bankole and Lawal (2012), Fatile and Adejuwon (2011), Ige, Adeyeye and Aina (2011), and Obasan (2011) investigated causes of conflicts across various organizational settings and suggested several measures or strategies for managing organizational conflict. These researches were also theoretical studies whose findings were subjectively based on researchers’ personal opinions. It is noted that the past studies did not give attention to the impact of conflict management on organizational performance, as well as highlighting effective conflict management strategy that can stimulate better organization performance. It is perceived that the strategies developed by management to resolve or manage conflicts could increase subordinates’ satisfaction and subordinates with high levels of satisfaction are more likely to be committed to the organization, thereby, improving organizational performance.

Statement of the problem

It may seem that whenever two or more people are gathered, there will be conflict. The efficacies of organizational conflict are myriad. The problem of incessant industrial conflicts, disputes, strikes, lockouts, and boycotts have generated much concern not only among employers of labour but also employees themselves and other stakeholders-as well. The magnitude of the adverse effects can well be understood when one considers the huge looses in productivity, reduced profits, damages to organization’s assets. The negative impacts of such event is like “ill wind that how nobody good”. All parties are usually affected, employees in the areas of poor inter-personal relationship between them and the management, and among themselves, loss of pay, termination and dismissal form employment etc for the society potency for social disorder, instability, of jobs and mass unemployment, which could a:Tect the fulfillment of its obligation.

Given the reality as described above, it behooves but labour and management to seek ways of coping and minimizing undesirable tensions and conflicts, and its unpleasant consequences for this reason, it is pertinent to look into the various effects of industrial conflict on the organizations, and approaches toward managing these problems positively, so that their favorable impact measurement could be felt on the effectiveness and efficiency of organizations.

Objective of the study

The objectives of the study;

1. To ascertain the effect of conflict management on business productivity
2. To ascertain the impact of conflict management on effective and efficient of business performance
3. To ascertain the negative impact of conflict in organization

Research hypotheses

The following research hypotheses were formulated;

H0: there is no effect of conflict management on business productivity

H1: there is effect of conflict management on business productivity

H0: there is no impact of conflict management on effective and efficient of business performance

H2: there is impact of conflict management on effective and efficient of business performance

Significance of the study

The study will be very significant to students, business organization and policy makers. The study will give a clear insight on the effect of conflict management on business performance. The study will serve as a reference to other researcher that will embark on the related topic

Scope and limitation of the study

The scope of the study covers effect of conflict management on business performance

Limitations/constraints are inevitable in carrying out a research work of this nature. However, in the course of this research, the following constraints were encountered thus:

1. Non-availability of enough resources (finance): A work of this nature is very tasking financially, money had to be spent at various stages of the research such resources which may aid proper carrying out of the study were not adequately available.

Time factor: The time used in carrying out the research work is relatively not enough to bring the best information out of it. However, I hope that the little that is contained in this study will go a long way in solving many greater problems.

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