THE IMPACT OF CONFLICT MANAGEMENT ON ORGANISATION EFFECTIVENESS (A Case Study of Guaranty Trust Bank Plc)

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.

-        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 LIMITATIONOF 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.