EFFECT OF CONFLICT MANAGEMENT ON ORGANIZATION EFFECTIVENESS (A Case Study of Guaranty Trust Bank Plc)

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EFFECT OF CONFLICT MANAGEMENT ON ORGANIZATION EFFECTIVENESS (A Case Study of Guaranty Trust Bank Plc)

CHAPTER ONE

INTRODUCTION

1.1   Background to the Study

Organization is an identifiable social entity whose members pursue multiple goals collectively. The pursuance of these goals is done side by side with their personal goals and aspirations through their coordinated activities and relationships. Hence, organization has people, materials and goals that are achieved through coordination

An organization exists to provide goods and services that people desire. These goods and services are the products of the behaviours of workers who occupy different level of the organizational structure. These people have different cultures, skills and educational background as well as different perceptions, roles, expectations and values. Conflict in an organization will depend on the degree with which the manpower is met with opposition in protecting their interest, values and goals.

However, the establishment and continuous existence of organization through the realization of set goals and objectives requires the continuous and effective functioning of its material input with the human element being indispensable. The human elements required to facilitate goals attainment often engage in disagreement and variance over factors such as; interest, views, style of management among others. The reactionary effect due to the perceived incompatibilities resulting typically from some form of interference or opposition is known as conflict. Azamoza (2004) observed that conflict involves the total range of behaviours and attitudes that is in opposition between owners/managers on the one hand and working people on the other. It is a state of disagreement over issues of substance or emotional antagonism and may arise due to anger, mistrust or personality clashes.

The GT bank (GTB) is an organization that is not excluded from conflict situation as long as the human element is part of its resources. They may disagree over issues in the workplace which can trigger conflict that need to be managed for improve effectiveness of the organization.

1.2   Statement of the Problem

Organizations have a shorter life cycle today because of various changes in the operation of organizations. These organizational changes may cause turbulence and uncertainties that in turn, create conflict. The GT bank (GTB) Zaria, over the years, have being facing conflict in various dimensions that have reduce its effectiveness.

Conflict in any organization may not enable the organization to achieve its set objectives if not properly managed. Hart (2000) asserted that, 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 effectiveness. The Centre for Effective Dispute Resolution (2005) supports the perception of an increase in organizational conflicts with some hard facts. Their research reported a 17% increase in organizational conflict measured by the more than 115,000 employment tribunal applications in 2004 in the United Kingdom.

According to Rivers (2005), the hidden costs of unresolved conflict in organizations are enormous and finding effective ways to manage and resolve organizational conflicts can have a significant impact on productivity and therefore, may enhance effectiveness. Healthy differences of opinion are however vital in an organization in order for it not to stagnate, but when individuals are not able to work through their differences constructively and agree on a way forward, the conflict becomes destructive and damaging to individual, teams and ultimately to the organization (Rivers, 2005)

GTB, as a research institute has being suffering one form or the other of conflict, mostly interpersonal conflict among her staff and industrial conflict with the government which has affected the smooth operation of the institute overtime (GTB Newsletter, 2010). The effective management of these conflicts will go a long way to enhance the effectiveness of the organization in meeting to its mandate. It is in the light of the above problem that the following research questions were asked and this study is expected to provide answers to;

  1. What are the possible causes of conflict in GTB, Zaria?
  2. What are the possible ways of managing conflict in the organization to improve effectiveness?

1.3   Objectives of the Study

The main objective of this study is, conflict management and organizational effectiveness as relates to GTB, Zaria.

Other specific objectives include:

  1. To identify the causes of conflict in GTB;
  2. To determine ways of managing conflict in the organization to improve effectiveness;

1.4     Statement of Hypothesis      

H0 that effective conflict management does not lead to improve organizational effectiveness

 

H1   that effective conflict management does lead to improve organizational effectiveness

 

1.5   Scope and Limitation of the Study

The scope of the study is conflict management and organizational effectiveness in GTB, Zaria. This organization is chosen because of ease in accessibility and also being an organization with diverse goals, conflicts situation will always be manifesting in the life of the organization. The limitation of the study is insufficient financial resources, time and materials.

1.6   Significance of the Study

This study will be of value to organizations both public and private in order for them to identify some silent causes of conflicts and to be able to manage the situation judiciously using some of the conflict management strategies. The study will also arouse government interest to see the need in providing adequate resources to public organizations in order to minimize the rate of conflict in these organizations specifically GTB.  The study will also provide a plat form for management of organizations to direct resources appropriately in order to minimize conflicts situations in the workplace. The study is also expected to be of great value to academicians and practitioners in the field of conflict management, public relations and public administration. The study can also be useful to researchers for further studies.

1.7       Method of Data Collection

The researcher used both primary and secondary sources as a means of data collection. The instruments of primary data used were both questionnaire and interviews. The questionnaire is administered to the staff of the organisation (GTB). The questionnaire was designed using both the open and closed ended styles. The secondary source of data was generated from textbooks, published and unpublished materials including journals and the internet.

In the area of population size, sample size and sampling techniques, the organisation has staff strength of 1,521. Out of this population, 180 were selected as the sample size of the total population using Taro Yamane’s technique with 93% confidence level to the 1,521 population.

The samples were selected through the simple random sampling technique. Out of the 180 questionnaires administered, 110 were completed and returned given 61% returns.

1.8      Method of Data Analysis

Data for this study was analyzed qualitatively and quantitatively with more emphasis on the quantitative method using the percentages and highest mean score statistical tool to test the hypothesis.

1.9      Definition of Relative terms

Conflict: This is a struggle or contest between people with opposing needs, ideas, values, or                   goals (Algert and Watson, 2006). Paul and Dean (2002) defined a conflict as the friction felt when two or more people or groups disagree about something.

Management: This is the act or skill of dealing with situations in a successful way. That is, bringing situations like conflict in organization under control.

Public: As used in this study, it stands for Government.

Organization: According to Robinson (2008), organization is an establishment set aside to provide services to members of the public.

1.10    Outline or Plan of the Work

Chapter one will look at the background to the study, statement of problem, objective of the study, statement of hypotheses, scope of the study, significance of the study, research methodology, definition of terms, and plan of the work. Chapter two will look at literature review and theoretical framework. Chapter three will discuss the historical background of the area of study. Chapter four will discuss the presentation of data and analysis. And finally, chapter five will be summary, conclusion and recommendations.

 

EFFECT OF CONFLICT MANAGEMENT ON ORGANIZATION EFFECTIVENESS (A Case Study of Guaranty Trust Bank Plc)

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