Impact Of Conflict Management On Organizational Efficiency

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Impact Of Conflict Management On Organizational Efficiency


This study investigated the impact of workplace conflict management on organizational efficiency. Participants comprised 200 employees selected through the use of simple random sampling technique. Data were generated through the use of validated structured questionnaire. Descriptive and inferential statistics were employed to analyze data collected from the respondents. The results of the empirical tests showed a significantly positive relationship between conflict management strategies (collective bargaining, compromise, and accommodation) and organizational performance. Non-integrative conflict management strategies (competition, domination and avoidance) had a negative statistically determinate effect on organizational performance. Also, the result of the regression analysis indicated that collective bargaining strategy displayed the highest significant positive correlation with organizational performance. In addition, study findings revealed that conflicts arose over multiple factors of organizational experiences based on economic and goal incompatibility orientations in the workplace.

Chapter One


1.1 Background of the Study

The word conflict brings to mind images such as antagonism, struggle between parties, opposition processes and threats to co-operation. But not all conflicts come in these forms especially in the construction industry. They come in form of needs to be met or desires to be satisfied, disagreement to be settled and ideas to be shared that eventually leads to the change of attitudes, feelings and perception. Conflict also arises when parties have divergent views toward the best ways of achieving their common goal.

Fadipe (2000) sees conflict as a form of disagreement in an establishment between two individuals or groups who have cause to interact formally or informally. Similarly, Muler and King (2005) see it over compatible goal. Conflict is therefore a process of incompatible behaviours. It may involve the interference or disruption by one person or group of persons or in some way or ways which makes another action less likely to be effective. Arc conflict inevitably means that parties are working against each other; in such a manner that one wants is incompatible with that, which another wants. It could bring about competition in the pursuit of goals. What the competitor gets comes at the expense of others or the job. It is therefore counter-productive, disruptive, and unnatural and produces a deviation from the free flow of events. A major factor that can throw parties into a state of incompatibility is their perception of the issues at hand or issues of interest. There are other factors that can contribute to the creation of conflict in organization like task independence, scarce resources, goal incompatibility, communication failures, individual difference and poorly designed reward system. Conflict is a necessary and useful part of organization life. It is necessary and useful part of organization life. It is inevitable and an integral part of the process of change. Indeed, it is an aid to co-operation, not an obstacle.

There are two sides to conflict, one is destructive and unhealthy and the other has a problem solving base where those involved are willing to sublimate personality differences, to listen to other’ views and to be open and candid to each other, to be supportive and helpful where as the former defeats co-operation.

Albert (2001) averd that there are productive and destructive conflicts. According to him “A conflict is said to be positive when it is constructively discussed by the parties amicably and terms for settlement reached’’ constructively managed conflict includes a positive performance while poorly managed conflicts heats up the environment to bring about dislocation of the entire group and polarization, reduced productivity on job performance, psychological and physical injury, emotional distress and inability to sleep, interference with problem activities, escalation of differences into antagonistic position and malice and increased hostility. Through conflict management, a co-operative atmosphere is created for promoting opportunities and movement directed towards non-violent, reconciliation or basic clashing interest to achieve organizational goals.

However, no matter one’s view of conflict it is pertinent to realize that conflict is one of the best ways in the world to turn the tide and improve unsatisfactory performance. Sometimes there may be no real dispute to be managed, but there may be need for greater understanding, co-operation and team work to promote interpersonal harmony and good organizational climate for the achievement of organizational goals. Therefore, conflict should not always be seen as something undesirable but rather as a necessary outcome that can bring positive consequences if properly managed. It is against this background that it becomes necessary to examine conflict management and organizational efficiency in First Bank Nigeria Plc, Asaba.

1.2 Statement of Problem

Conflict emerges in an organization when an individual perceives that his goals are threatened or hindered by the activities of another person. Conflict in any organization may not enable the organization to achieve it’s set objective if not properly managed. Successful organization in the future must create the capability to absorb conflict during the organization’s life cycle. The capability here refers to conflict management mechanism in order to minimize the rate of conflict and improve performance.

Furthermore, the research will seek to establish any possible impact of conflict management strategies on the efficiency of the company.

Profitability and financial strength are the means of assessing the efficiency of companies. The continued existence of a company is dependent of profitable operations. This research work seeks to establish any possible impact of conflict management strategies and leadership style on organizational efficiency.

1.3 Objectives of the Study

The specific objectives of this study are:

  1. To ascertain the extent to which conflict management has affected the efficiency of the organization
  2. To examine the influence of leadership practices on organizational efficiency
  3. To determine the effect of conflict management to employee performance

1.4 Research Questions

The following research questions will guide the study

  1. To what extent has conflict management affected the efficiency of the organization?
  2. What is the influence of leadership practices on employee’s performance?
  3. Is there effect of conflict management on employee’s performance

1.5 Research Hypotheses

  1. Ho: There is no impact of effective conflict management on organizational efficiency
    Hi: There is an impact of effective conflict management on organizational efficiency
  2. Ho: There is no influence of leadership style and employee’s performance
    Hi: There is an influence of leadership style and employee’s performance
  3. Ho: There is no effect of conflict management on employee’s performance.
    Hi: There is an effect of conflict management on employee’s performance

1.6 Scope of the Study

The scope of the study is the impact of conflict management on organizational efficiency. The study is based on First Bank of Nigeria Plc.

The study covers five years; (2009 – 2014). This is to allow the researcher to study the trend in the organization.

1.7 Significance of the Study

The research will be useful in the following ways:

It will be useful to both public and private section in identifying some salient causes of conflict and the ways to manage the situation judiciously.

The study will also arouse government interest to see the need to provide adequate resources to public in order to maximize the rate of conflicts in organizations.

The outcome of the study will serve as a reference material to other researchers.

1.8 Limitation of the Study

The research work is limited to First Bank Plc, Asaba.

Time was a major constraint, due to the short time given for the study. Combining jobs and educational activities was not an easy task.

As a result of money constraint, the researcher did not have enough money to carry out the study beyond this level.
Some respondents refused to give audience and release information holding to the fact that the information is confidential.

1.9 Operational Definition of Key Terms

The following terms used for this study are defined thus:


A state of serious disagreement and argument about something perceived to be important by at least one of the parties involved.


This is the process of acquiring, developing, protecting and utilizing the resources that allow an organization to be efficient and effective

Conflict Management:

The process of limiting the negative aspects of conflict while increasing the positive aspects of conflict

Organizational Efficiency:

This is an organization’s degree of success in utilizing the least positive inputs in order to produce the greatest possible outputs.

1.10 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

  • Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
  • Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
  • Chapter three deals on the research design and methodology adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion, and recommendations made of the study

Chapter Five

Summary, Conclusion and Recommendation

5.1 Introduction

It is important to ascertain that the objective of this study is to examine the impact of conflict management on organizational efficiency.

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of conflict management in organizations.

5.2 Summary

Conflict management strategies are crucial for the attainment and achievement of organizational goals and objectives. In other words, if the management is not knowledgeable in conflict resolution strategies, it will affect the performance of organizations negatively but if conflict is constructively managed, it will enhance organizational performance.

Organizational conflict is a regular feature in corporate organizations which arises whenever there is disagreement between individual or group of individuals and management. Various strategies are adopted in managing the conflicts but the strategy adopted in each instance depends on the nature of the conflict and the person involved.

The strategies adopted 86 are largely effective in resolving the conflicts. However, the re-occurrence of specific conflict is not mainly due to ineffective conflict management but the dynamic socio-economic situation. Organizational conflicts adversely affect employees and management as well as their relationships. It impacts negatively on workers‟ productivity and overall performance and growth of the organization.

5.3 Conclusion

This study was exploratory in nature with regard to establishing the organizational conflict managing. Limitations to the study were due to the relative complication of the questionnaire and the ability of all employees to complete it, the survey had to be restricted to job-levels that eliminated the lower ranks of the workforce. Studying the lower job levels may reveal different perceptions as to causes of conflict and different conflict-handling styles being use by them in interpersonal conflict situations. Because of there is no studies could be found that was done to evaluate conflict dynamics and specifically conflict-handling styles in municipalities it is believed that this study contributed to the possibility of further research in various aspects of conflict management within public sector organizations. With the growing interest in the skill of conflict management where experiencing different organizations many kinds of conflict acquires the time and effort next to their negative impact on the ability of the organization to the bear management excellence responsibility scaled conflicts.

5.4 Recommendation

Management should ensure that there is effective communication between the management team and subordinates. This will ensure that all are aware of management policies and actions as well as contributory to decision-making in the organization. This will eliminate alienation and communication gap.

Individual aims and organizational goals should not be congruent. Individuals should ensure that their selfish interests do not conflict with organizational goals. Otherwise, personal interests should be re-align with organizational interests. There should be effective interpersonal relationships, as well as effective management employee relationships. This should be under covered by democratic management style. This will ensure that employees‟ problems are well addressed and opportunities are always offered to them to achieve their goals. There should always be adequate reward system or compensation plan for employees. These include adequate pay packages, prompt promotion and advancement and effective welfare and social security programs.

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