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
TABLE OF CONTENT viii
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
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
2.10 CONFLICT MANAGEMENT 30
2.11 WAYS OF REPORTING CONFLICT 32
2.12 ISSUES WHICH MAY LEAD TO CONFLICT 33
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
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
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
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
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
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
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
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
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
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
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
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.