CHAPTER 1

INTRODUCTION

1.1 Background to the Study

Corporate effectiveness is defined as meeting organizational objectives, adapting to dynamic environment and surviving in the future. According to Richard et al. (2009) corporate effectiveness captures organizational performance plus the myriad internal performance outcomes normally associated with more efficient or effective operations and other external measures that relate to considerations that are broader than those simply associated with economic valuation, such as corporate social responsibility. Lee and Choi (2003) defined corporate effectiveness as organizational member’s perceptions of the degree of the overall success, market share, profitability, growth rate and innovativeness of the organization in comparison with key competitors. Corporate effectiveness is far more than the ability of your company to make sales or to turn a profit. Rather, it focuses on the overall effectiveness in these short-term areas, as well as sustainability, concern for the environment, corporate culture, talent management, leadership, innovation, strategy, engagement, and communication. Corporate effectiveness requires that we take a more holistic view. “Effectiveness” means different things to different organizations, but we can agree that it means survival and a competitive edge in the 21st Century (Mihaicz, 2012).  One of the ways an organization can experience corporate effectiveness is through conflict management.

Conflict refers to some form of friction, disagreement, or discord arising within a group when the beliefs or actions of one or more members of the group are either resisted by or unacceptable to one or more members of another group. Conflict can arise between members of the same group, known as intergroup conflict, or it can occur between members of two or more groups, and involve violence, interpersonal discord, and psychological tension, known as intergroup conflict. Conflict in groups often follows a specific course. This period of conflict escalation in some cases gives way to a conflict resolution stage, after which the group can eventually return to routine group interaction once again (Harvard Program on Negotiation Glossary, “Conflict” 2013). Conflict is a social factual situation in which at least two parties (individuals, groups, states) are involved, and who strive for goals which are incompatible to begin with or strive for the same goal, which, can only be reached by one party and want to employ incompatible means to achieve a certain goal (Schmid, 1998).

Conflict is the most common general and wide-spread phenomenon that is synonymous with group activity and interaction. According to Uya (1992), conflict cannot be completely dissociated from human beings and their endeavors be it group or organization. This means that conflict is necessary evil that one cannot do without. Conflict is natural and normal phenomenon in all spheres of life. It is an unavoidable component of human activity ( Messman & Mikesell,2000; Brahnam et al., 2005 ; Gerami,2009 ) that may be viewed as a situation in which the concerns of two or more individuals appear to be incompatible (Darling & Fogliasso,1999; Pruitt Dan Rubia,1986; Putman Dan Poole,1987; Rhoades,1999; Thomas,1976), and which tends to occur when individuals or groups perceive that others are preventing them attaining their goals (Antonioni,1998). More broadly, conflict is an interactive process manifested in incompatibility, disagreement, or dissonance within or between social entities i.e. individual, group, organization etc. (Rahim, 2002; Sander, 2009; Thomas,1992).Within organizations conflicts are inevitable, and arise in case of disagreements over workloads, problems in communication, individual differences in needs, wants, goals, values, opinions, preferences or behavior, as well as in case of conflict between employees and employers (Augustine,2000; Bisno,1998). Explicitly, as human beings interact in organizations, differing values and situations create tension and conflict (Darling &

Walker, 2001; Stimec & Poitras, 2009). Conflict refers to a situation in which there are incompatible goals, cognition or emotion within or between individuals or group that led to opposition (Uya, 1992). This definition recognizes three basic types of conflict which are goal conflict which arises when the desired outcomes are in compatible between groups cognitive and effective conflict. Cognitive conflicts arise as a result of incompatibility of ideas.  Affective conflict on the other hand usually arises when there is an incompatibility in emotions. Conflict can also arise when two or more values, prospective and opinions are contradictory in natures and have not been agreed upon, conflict has both positive and negative effect on organization that is why there is a need for effective conflict management strategy. Conflict management refers to an attempt to control or regulate conflict through a number of measures. Adeyemi and Ademilua, (2012) constructively managed conflict induces a positive performance while privately managed conflict heats up the environment to bring about dislocation of the entire group and polarization reduced productivity on job performance, psychological and physical injury. Though an effective conflict management a cooperative atmosphere is created to promote opportunities and movements are directed towards non- violent, recondition or basic clashing interest (Uchindu, Anijaobi and Odigwe, 2013). From the foregoing therefore, the study seeks to examine the relationship between conflict management and corporate effectiveness in First Bank PLC Woji Branch Port Harcourt.

1.2 Statement of the Problem

Expanding industrial activities have been ascribed incompletely as casualisation of specialists (Kalejaiye, 2014). Taking the banking sector 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 management and corporate effectiveness to bridge the gap.

1.3 Objectives of the Study

The aim of the study is to examine the relationship between conflict management and corporate effectiveness. The specific objectives of the study are to:

1.       Examine the relationship between conflict avoidance and corporate effectiveness in First Bank, Woji Branch, Port Harcourt.

2.       Determine the relationship between competition and corporate effectiveness in First Bank, Woji Branch, Port Harcourt.

3.       Ascertain the relationship between cooperation and corporate effectiveness in First Bank, Woji Branch, Port Harcourt.

1.4 Research Question

The following research questions were proposed to guide the study.

1.       Does conflict avoidance associate with corporate effectiveness in First Bank, Woji Branch, Port Harcourt?

2.       Does competition enhances corporate effectiveness in First Bank, Woji Branch, Port Harcourt?

3.       Does cooperation associate with corporate effectiveness in First Bank, Woji Branch, Port Harcourt?

1.5 Research Hypotheses

The following research hypotheses were postulated to guide the study.

H01: There is no significant relationship between conflict avoidance and corporate effectiveness in First Bank, Woji Branch, Port Harcourt.

HA: There is a significant relationship between conflict avoidance and corporate effectiveness in First Bank, Woji Branch, Port Harcourt.

H02: There is no significant relationship between competition and corporate effectiveness in First Bank, Woji Branch, Port Harcourt.

HA: There is a significant relationship between competition and corporate effectiveness in First Bank, Woji Branch, Port Harcourt.

1.6 Significant of the Study

The importance of this study is being includes an analysis of the most important themes of work, and define attributes general methods of managing organizational conflict on the effectiveness of regulatory. The importance of the results which expect to determine the relationship between organizational conflict and effective regulatory, and offers practical solutions to rationalize the organizational conflict, including serving achieve effective organizational structure, in order to raise the level of performance and the advancement of your devices administrative, to achieve the lofty goals of the highest efficiency and effectiveness.

The significance of this study is to deal with administrative problems faced by managers every day in their management of organizations and considers. This study is essential from the scarcity of studies that addresses this important issue in Jordan ministry of higher education. In daytime of the foregoing, therefore, aimed to determine the relationship between each method of managing organizational conflict in effective regulatory workers from their point of view terms constitute methods behavioral and administrative disparate and varied.

Consequently, administrators who deal with multiple conflicts follow the difference that occurs within organizations for its effects on the effectiveness of rise or fall regulatory in terms of its level and its impact on the achievement of the desired goals

1.7 Scope/Limitation 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 management and corporate effectiveness.

Geographical Scope: This study is delimited to First Bank PLC Woji Port Harcourt, Rivers State.

Unit of Analysis: The unit of analysis involved the staff at the terms of carrying this study. The scope of this study is to ascertain the relationship between conflict management and corporate effectiveness.

In carrying out an investigation of this nature the researcher must of necessity be faced with some constraints.

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

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

Thirdly, Poor response from the respondent and inability to access the entire population of the study.

1.8 Definition of Terms

Avoidance

This study argues that “avoidance” in some instances, be recognized as an active form of conflict resolution. That adopting avoidance as a method of conflict resolution can be an active method of team building demonstrated if the organization considers the staff.

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. If the stakes are high, enough, a very competitive person’s use of power may well be limit only by some greater external power such as the law or social taboos.

Cooperation

Cooperation is the most appropriate tool for managing organizational conflict if do not suffer the parties from time pressures.

Conflict Avoidance

 This attempts to keep the conflict surfacing at all or would simply ignore the conflict or impose a solution.

Adaptability

Is an aspect of resilience that reflect clearing flexibility to experiment and adopt novel solutions and the development of generalized response to broad classes of challenges.

Dynamic Capabilities

By contrast refers to the capacity of an organization to purposely create extend or modify it resources base.

Conflict

This refers to a solution in which there are incompatible goals recognition or emotion within or individual or group that lead to opposition.

Conflict Management

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