The Impact of Conflict Management on Organisational
Effectiveness
(A Case Study of Guaranty Trust Bank Plc)
ABSTRACT
This research work examines the impact of Conflict Management on Organisational
Effectiveness with special reference to Guaranty Trust Bank Plc.
This project is patterned into five chapters, the first deals with the study; it also reveals the
statement of problems, objective of the study, significant of the study, research questions and
limitations of the study and equally mentions the definitions of terms.
In addition, chapter three deals with methodology and thus adopted the technique of personal
interview.
There is a great emphasis on sources of data, population sample and determination of sample
size.
Meanwhile, chapter four deals with the summary, conclusion and recommendation of the
study.
TABLE OF CONTENTS
TITLE PAGE i
CERTIFICATION ii
ACKNOWLEDGEMENT iii
DEDICATION iv
ABSTRACT v
TABLE OF CONTENT viii
CHAPTER ONE
1.1 INTRODUCTION 1
1.2 STATEMENT OF PROBLEM 4
1.3 PURPOSE OF THE STUDY 5
1.4 RELEVANT RESEARCH QUESTIONS 6
1.5 RESEARCH HYPOTHESES 7
1.6 SIGNIFICANCE OF THE STUDY 6
1.7 SCOPE AND LIMITATION OF THE STUDY 9
1.8 BRIEF HISTORY OF GUARANTY TRUST BANK PLC 9
1.9 DEFINITION OF TERMS 10
CHAPTER TWO:
LITERATURE REVIEW
2.1 CONCEPT OF INDUSTRIAL CONFLICT 13
2.2 SOURCES OF INDUSTRIAL CONFLICT 14
2.3 EXTERNAL STRATEGIES OF CONFLICT RESOLUTION 18
2.4 CONSEQUENCES OF INDUSTRIAL CONFLICT 20
2.5 ROLE OF TRADE UNION IN INDUSTRIAL CONFLICT 22
2.6 INDUSTRIAL ACTION/WEAPON 23
2.7 RESOLUTION MACHINERIES 24
2.8 EXTERNAL RESOLUTION 25
2.9 STAGES OF INTERNATIONAL RESOLUTION
MACHINERIES 28
2.10 CONFLICT MANAGEMENT 30
2.11 WAYS OF REPORTING CONFLICT 32
2.12 ISSUES WHICH MAY LEAD TO CONFLICT 33
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 INTRODUCTION 36
3.1 RESEARCH DESIGN 36
3.2 AREA OF STUDY 36
3.3 DESCRIPTION OF THE STUDY POPULATION 37
3.4 SAMPLING SIZE DETERMINATION 37
3.5 DESCRIPTION OF DATA COLLECTION INSTRUMENT 39
3.6 ANALYTICAL PROCDURE 39
3.7 CODING PROCEDURE 40
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.0 INTRODUCTION 42
4.1 ANALYSIS OF RESPONDENT BIO-DATA 43
4.2 ANALYSIS OF INDIVIDUAL QUESTIONS 46
4.3 TESTING OF HYPOTHESIS 51
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 SUMMARY OF FINDINGS 57
5.2 CONCLUSION 59
5.3 RECOMMENDATION 60
5.4 SUGGESTION FOR UNION STUDIES 61
BIBLOGRAPHY 63
QUESTIONNAIRE 64
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
According to Kornhanser, Dubin and Russ (1954), conflict can be referred to as “the total
range of behaviours and attitude that express opposition and divergent orientation between
individual, owners and managers on one hand and working people and their organization, on
the other hand. Furthermore, a conflict situation is therefore one that is characterized by the
inability of those concerned to iron out their differences, and this does not necessarily have to
result in strikes.
Flanders (1968) defined conflict as the difference between an actual state of affairs and a
desired state of affairs.
In other words, conflict is the gap between where one is and where one wants to be. Crises
are un-expected problem that lead to disaster if not resolved quickly in an acceptable manner.
No one can avoid crises and the intensity of the corporate crises in the modern world.
Conflict is an inevitable byproduct of inter-personal dealings. This is particularly true of work
groups because-they generally are expediently assembled collection of individuals with
different back grounds, perceptions attitudes, and value.
Conflict can be good, bad or ugly and it can be managed in goods, bad and ugly ways. In an
organization the issue that generate the most, emotion and frustrated comments is conflict
within the organization, we generally do not look at conflict as opportunity but we tend to
think about conflict as unpleasant, counter- productive and time consuming.
Conflict that occurs in organization need not be destructive, provided the emergency
associated with conflict harnessed and directed towards problem solving and organizational
improvement, however managing conflict effectively requires that all parties understand the
nature of conflict, in the workplace.
The dysfunctional view of organizational conflicts imbedded in the nation that organization
are created to manufacture goods by creating structure that perfectly define job
responsibilities, authority and other’ job functions, like a clockwork, watch each “Cog knows
where it fits, knows how it relates to other part. This traditional view of organization value
orderliness; stability and the repression of any conflict that occurs. Using the timepiece
analogy we can see the sense in this.
What would happen to traditional watches decide to become less traditional, and redefine
their role in the system?
To the “Traditional” organizational thinkers, conflict implies that the organization is not
designed or structured correctly or adequately common remedies would be to further
elaborate job descriptions, authorities and responsibilities, increase the use of central power
(discipline), separate conflicting members etc.
This view of, organization and conflict problems. Unfortunately most of us consciously or
unconsciously value some of the characteristic of this “orderly” environment. Problem arise
when we not realize that this ways of looking at organization and conflict only fits
organization that work in routine ways where innovation and change are virtually eliminated.
The functional view of organizational conflict sees conflicts as a productive process, one that
can stimulate members of the organization to increase their knowledge and skills and their
contribution to the organizational innovation and productivity unlike the position maintained
above, this more modern approach organization then NEEDS conflict so that diverging views
can be put on the table, and new views of doing things can be created.
The functional view of conflict also suggests that conflict provides people with feedback
about how things are going even “personality conflict” carry information to the manager
about what is not working in an organizational affording the opportunity to improve.
We have the good (conflict is positive), the bad (conflict is to be avoided) and now we need
to address the ugly. Ugly occurs where· managers (and perhaps employers) attempt to
eliminate or suppress conflict in situations where it is impossible to do so. You know you
have ugly in your organization when:– Many conflicts run for years people have given up on, resolving and addressing conflict
problem in an organization.
– When there is a tendency to look to the manager or formal leader as being responsible for
the mess. In fact, that is how most employees would look at the situation, it is true that
managers and supervisors play critical roles in determining how conflicts is handled in the
organization, but it is also true that the avoidance of ugliness must be a shared
responsibilities. Management and employees must work together in a cooperative way to
reduce the ugliness, and increase the likelihood that conflict can be channeled into an
effective force for change.
In industrial relations, there is no permanently an adversary, either at individual or at group
level. There may be times, when a conflict has to be managed bluntly on managerial issues
and with intention to achieve long-term managerial objectives. One hopes that manager in
public and private enterprises will provide increasing evidence of ability and willingness with
such clarity of managerial. However, conflict seems to be inevitably re-accruing in our
organizations and institutions.
1.2 STATEMENT OF PROBLEMS
Conflict management is a necessity that must be ensured in any organization, as no
organization actually exist without the existence of conflict. This is the essence for the need
to understand the word conflict.
Managing conflict is needed in order to reduce the negative effect(s) of it in the efficient
running of an organization.
This bring to the fore the need to understand the cause of conflict and the ways and manners
to adopt in order to arrive at best possible result(s).
Organizations do face conflict such as
a. What are the conditions of employment: When employment in an organization is based on
favoritism giving unfair advantages to some Nepotism when employment is based on people
with power or influence of favouring their own relatives.
b. When corrupt workers/management in the organizations selfish in decision making and in
general operation of the organization.
c. Where there is lack of inadequate provision of appropriate resources and support to meet
goals expected.
d. When there is lack of accountability in an organization
e. When there is lack of communication within an organization.
1.3 PURPOSE OF THE STUDY
The purpose of this study is to understand and examine the impact of conflict in achieving
organizational objectives and effectiveness. It is aimed at understanding and suggesting ways
conflict can be handled and avoided in an organization.
In view of this, the overall objectives of this an organizational effectiveness. The following
ate the objectives of the study:
1. To identify the causes of industrial conflict.
2. To ascertain the consequences of industrial conflict.
3. To evaluate the impact of conflict management on organizational performance productivity
and effectiveness.
4. To make necessary recommendations so that industrial conflict of various forms will be
“reduced” if not eliminated or eradicated.
5. To ascertain approach and techniques of solving conflicts in an organization.
1.4 RELEVANT RESEARCH QUESTIONS
– What are the causes of industrial conflict in Nigerian organization?
– Of what impact is industrial conflict on organizational effectiveness?
– Is there any relationship between conflict and strike of worker?
– Can conflict be avoided in an organization?
– Does conflict affect organization positively or negatively?
– Is there any direct impact of conflict on organizations effectiveness?
– Does conflict in an organization strengthen the effectiveness, of an organization?
1.5 RESEARCH HYPOTHESES
Ho: There is no significant relationship between industrial conflict and workers strike.
H1: There is significant relationship between industrial conflict and workers strike.
Ho: There is no significant impact between industrial conflict and organization effectiveness.
Hi: There is a significant impact between industrial conflict and organizational effectiveness
Ho: There is no significant efficiency in conflict management.
H1: There is significant efficiency in conflict management.
Ho. Conflict does not contribute immensely to the growth of an organization.
H1: Conflict contributes immensely to the growth of an organization.
1.6 SIGNIFICANCE OF STUDY
Ø All responses and answers obtained from this study will enables Guaranty Trust Bank Plc
and other Nigerian industries, to improve their management of conflict and review its
productivity, profitability performance, labour turnover and effectiveness level.
Ø It is also hope that finding of this study will help curriculum planners to appreciate the
inevitability of conflict in a’ work setting so that area of improvement can be identified.
Ø Bother large, and small scale industries can also benefit from the findings and particularly,
to provide practicing industrial relations managers with the knowledge of the cause of the
industrial conflicts, the skill required for resolving such conflict wand ways of reducing or
total eliminating industrial conflict and its impact on organizational effectiveness.
1.7 SCOPE AND LIMITATION OF THE STUDY
The scope of the study is on the impact of conflict management on organizational
effectiveness, using Guaranty Trust Bank, as a case study.
However, due to time constraints, shortage of funds as the disposal of the researcher,
accessibility to both human and material data are constraints research work to this and other
prevalent constraint to this research undertaking, this work will be Limited to Guaranty Trust
Bank Plc.
1.8 BRIEF HISTORY OF GUARANTY TRUST BANK PLC
Guaranty Trust Bank Plc was licensed on August 1990, to carry out commercial banking
business in Nigeria. The bank commenced full banking operations in February 1991, at the
plaza 6 Adeyemo Alakija Street, Victoria Island, Lagos.
Over the years, Guaranty Trust Bank Plc has become synonymous with good service and
demonstrated a commitment to being the best in all it does. In September 1996, Guaranty
Trust Bank became a publicity and quoted company.
In its first year of quotations on the Nigerian Stock Exchange, Guaranty Trust Bank won the
Presidents merit award, which is the most prestigious annual award, bestowed on deserving
members of the Nigerian Stock Exchange.
From the start, Guaranty Trust has been driven by a vision embodied in a culture of services
excellence, total quality, professionalism and adherence to strictest ethical-standard possible.
These values have been embraced by the Nigerian business community, which has rewarded
the bank with patronage at unprecedented level as evidence by its leadership ‘position in the
banking industry. Today, Guaranty Trust is one of the most profitable organizations in
Nigeria Banking Industry.
The bank has also being consistently rated by independent industry analysts in Nigeria,
Agusto and Co, has having a superior risk rating. This is the best categorization available on
this scale. This rating is based on performance indicators such as Liquidity, capital adequacy,
quality of earnings, management efficiency, leadership position in the industry etc, the bank
has continuously evolved better ways to enhance the structure and delivery of bank services
in Nigeria, through the employment of a highly motivated and competent work force aided by
functional and up to date technology.
Guaranty Trust Bank has aligned its information technology with business strategy, thus
transforming the bank from a lighter to technology aided organization, into a technology
driven institution. The newly acquired banking software (basis) an acronym for banking
automation system for integrated services as put Guaranty Trust Bank. Further ahead on
global competitive technological platform. The bank is among few that met N25 billion
capitalization that, set by Central Bank under Prof. Charles Chukwuma Soludo.
Among the Guaranty Trust are Energy, Aviation, Telecommunications, multinationals,
conglomerates, pharmaceutical metal, fabrications, breweries, household personal care
product and other financial institution. In its about twenty years of operation, the bank has
become a major banker to most, crisscrossing the major commercial nerve centers in Nigeria,
viz, Abuja, Aba, Ibadan, Effurnrun-Warri, Port-Harcourt, Kaduna, Kano, Onitsha, Apapa,
Ikeja, Broad Street and, Victoria-Island. The bank recently opened branches in West
African states by Ghana, The Gambia etc.
The bank endeavours to remain sensitive to the need of their clients responding to their tacit
and stated needs and even going ahead to anticipate the needs of the customer. To this end the
bank encourages constant conceptualizing and brainstorming to elicit original thinking among
its people, on ways to delight its selected customers. The bank is strategically repositioning
itself to becoming your financial service partner, providing service that is superior reliable
and universally appealing, but also meet your fundamental need effortlessly.
1.9 DEFINITION OF TERMS
Conflict is a struggle or contest when worker and management have incompatible conflict or
irreconcilable value or issues that could lead to conflict. Conflict tendencies are not new to
the banking sector. Conflict is normal and, it is positive as well as negative.
Management as designed by Mary Parker Follet is the art of getting things done through
people. This definition implies that management is an art which depends on qualities.
Planning is the mental process of setting objective and determining the means of achieving
the set objectives. It entails deciding in advance what to do, how to do, when to do, and what
to do. In short it is a blueprint for business actions.
Collective Bargaining – is the negotiations of work condition and term of employment
between employees, group of employees.
Joint Consultation, meeting between worker and employees where relationship is seen not as
in term of bargaining strength.
Performance: – is a rate which work is done, or the level of input put into achieving a goal.
Effectiveness: is a measure using in ascertaining a goal or bring about result.
Productivity: Usually defined as a ration of output produced per unit of resources.