CONFLICT RESOLUTION AND ORGANIZATIONAL PERFORMANCE OF DEPOSIT MONEY BANKS IN RIVER STATE

CHAPTER 1

INTRODUCTION

1.1 Background to the Study

Organizational performance is derived from the word job performance that means real work produced an employee within a specific time period. Performance is a comparison between the works of the real compared to the standard set by the company (Dessler, 2000). Performance is the quantity and quality of produced or services rendered by a person in doing the job (Luthan, 2005). Performance is the work of behavior (Armstrong, 1999). Performance is the relationship between work and behavior. One way an organization can perform is through conflict resolution. Conflict occurs between people in all kinds of human relationships and in all social settings. Because of the wide range of potential differences among people, the absence of conflict usually signals the absence of meaningful interaction. Conflict by itself is neither good nor bad. However, the manner in which conflict is handled determines whether it is constructive or destructive (Deutsch and Coleman, 2000).

Robbins and Judge (2009) defined conflict as ‘’ a process that begins where one party perceives that another party has negatively affected, or is about to negatively affect something that the first party cares about’’. This is a very apt definition, emphasizing that conflict is about perceptions, not necessarily real hard facts. It points to the emotional nature of conflict, by referring to a word like ‘’care’’, it states that more than one party is involved and that there may be a future component attached to it.

Shapiro (2006) in relation to the above states that, conflict is a process of social interaction. It involves a struggle over claims to resources, power, status, beliefs, preferences and desires. Darling and Walker (2007) linked this idea to the organization by stating that, even when conflict is a natural phenomenon in social relations (as natural as harmony), it can nevertheless be managed within organizations. They add that conflict may have both positive as well as negative consequences within the organization, the submission above blend with the fact that, conflict can never be totally eliminated within organizations but can be efficiently managed in order to move organizations to greater height  and performance level.

Organizations, be it public or private, small or big exist essentially to achieve certain economic social or political objectives. These objectives may be in form of profit making, provision of services production of goods and increases in sales turnover etc. however these objectives can only be achieved when human resources are employed to utilize other resources such as raw materials, machineries, money and information. (George and Jones 1996) organization is made up of different people with different attitude, beliefs, abilities and personality therefore a conflict is inevitable.

There is no organization that can effectively carry out its day to day activities without encountering some form of conflict. From the foregoing therefore, the study seeks to examine the relationship between conflict resolution  and organizational performance of deposit money banks in Rivers State.

1.2 Statement of the Problem

Expanding industrial activities have been ascribed incompletely as casualisation of specialists (Kalejaiye, 2014). Taking the deposit money banks in Rivers State as a case, as related to the extent to which the issue can be seen. Considering the impact of conflict in an organization and how people view the concept it becomes imperative for such a research work to be carried out in order for the organization association and even interested public appreciate the concept. This study also seeks to explain the effectiveness of conflict in organization and also the harmony available in managing the conflict. Numerous organizations in  Nigeria  are  tormented  by  a  bunch  of  issues  and  illnesses  created  by  wasteful  and incapable administrative style or strained relationship amongst administration and the worker’s party (Fapohunda, 2012).   It is against these problems that, this study empirically evaluates the relationship between conflict resolution  and organizational performance of deposit money banks in Rivers State. 

1.3 Objectives of the Study

The essence of the study is to examine the relationship between conflict resolution  and organizational performance of deposit money banks in Rivers State. The specific objectives of the study are as follows:

1.       To examine the relationship between dialogue and organizational performance of deposit money banks in Rivers State.

2.       To examine the relationship between integrative negotiation and organizational performance of deposit money banks in Rivers State.

3.       To examine the relationship between procrastination and organizational performance of deposit money banks in Rivers State.

1.4 Research Question

The following research questions were proposed to guide the study.

1.       What is the relationship between dialogue and organizational performance of deposit money banks in Rivers State?

2.       What is the relationship between integrative negotiation and organizational performance of deposit money banks in Rivers State?

3.       What is the relationship between procrastination and organizational performance of deposit money banks in Rivers State?

1.5 Significance of the Study

The relevant of this study rest in the importance to stakeholders in the organization. This study will assist organizational managers on the tools techniques to employ in managing conflict in their respective organizations in the banking industries. This study is pertinent to trade unionist in their respective organizations. This study is justified because it will assist in the stability and relative profitability in the organization particularly in the period of economic recession. This study will also contribute in enriching the literature in industrial relations particularly in resolution sciences in general.

1.6 Scope of the Study

The study is delimited under the following headings; content scope, geographical scope and unit of analysis.

Content Scope: The content of this study involves on investigation to ascertain the relationship between conflict resolution and organizational performance of deposit money banks in Rivers State. The dimensions of conflict resolution are dialogue, integrative negotiation and procrastination. The measures of organizational performance are productivity, effectiveness and market share.

Geographical Scope: This study is delimited to organizational performance of deposit money banks in Rivers State which include FCMB, Fidelity Bank, Union Bank, Access bank and GTB all in Trans-Amadi.

Unit of Analysis: The unit of analysis involved the staff at the terms of carrying this study. Hence, it is a micro level study. In carrying out an investigation of this nature the researcher must of necessity be faced with some constraints.

1.7 Limitation of the Study

The time constraints, the time frame provided for this study was short.

Financial constraints. Usually, a study of this nature involved some level of expenditure therefore; finance was also a limiting factor.

Poor response from the respondent and inability to access the entire population of the study. In the next segment significance of the study will be discussed and lastly, poor measurement instrument.

1.8 Definition of Related Terms

AVOIDANCE: This study argues that “avoidance” in some instances, be recognized as an active form of conflict resolution.

COMPETITION: It reflects a desire to meet one’s own needs and concerns at the expense of the other party. As the model illustrates, the most assertive and least co-operative people use the competitive style.

CONFLICT AVOIDANCE:  This attempts to keep the conflict surfacing at all or would simply ignore the conflict or impose a solution. This type of strategy may be used if the conflict is trivial or if quick action is needed to prevent the conflict from occurring.

CONFLICT RESOLUTION: This can be defined as attempt to control or regulate conflict through numbers of measures.

CONFLICT: This refers to a solution in which there are incompatible goals recognition or emotion within or individual or group that lead to opposition (Uya, 1992)

INTEGRATIVE NEGOTIATION: Integrative negotiation is the most appropriate tool for managing organizational conflict if do not suffer the parties from time pressures.

ORGANIZATIONAL PERFORMANCE: It comprises the actual output or result of an organization measured against its intended output.