CHAPTER 1

INTRODUCTION

1.1     Background to the Study

Conflict among workers in an organization is inevitable. If it manages properly, it will bring catalyst for change and  can  have  a  positive  impact  on  employee  satisfaction  and  performance  of  the  organization.  Conversely, un-managed conflict negatively impacts both employee satisfaction and job performance. When  organizational leaders  ignore  workplace conflict,  they  send  a  message that  unsatisfactory  job  performance  and inappropriate behavior are acceptable.

Organizational stability involves maintaining the status quo or growing in a methodical but slow manner. The organization follows a safety oriented, status quo type strategy without effecting any major changes in its present operations. The resources are put on existing operations to achieve moderate, incremental growth. As such, the primary focus is on current products, markets and functions, and maintaining the same level of effort.

An organization that has stretched its resources during the period of accelerated growth may want to attain stability before it attempts further accelerated growth. Stability works only when the firm is doing well and the environment is not excessively volatile. So, organizations must practice pro-active planning. They must practice planning to manage the changes successfully.

One way an organization can be stable is through conflict management. Organization, 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. Therefore 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 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 arise 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 organizational stability in Commercial Banks in Eleme.

1.2     Statement of the Problem

Expanding industrial activities have been ascribed incompletely as casualization 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 impart 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 organizational stability in Commercial Banks in Eleme with emphasis on the moderating role of organizational culture.

1.3     Objectives of the Study

The aim of the study is to examine the relationship between conflict management and organizational stability in Commercial Banks in Eleme. The specific objectives of the study are to:

1.       Examine the relationship between conflict avoidance and organizational stability in Commercial Banks in Eleme.

2.       Determine the relationship between competition and organizational stability in Commercial Banks in Eleme.

3.       Ascertain the relationship between cooperation and organizational stability in Commercial Banks in Eleme.

4.       To examine the extent to which organizational culture moderate the relationship between conflict management and organizational stability in Commercial Banks in Eleme.

1.4     Research Question

The following research questions were proposed to guide the study.

1.       Does conflict avoidance associate with organizational stability in Commercial Banks in Eleme?

2.       To what extent does competition influence organizational stability in Commercial Banks in Eleme?

3.       Does cooperation associate with organizational stability in Commercial Banks in Eleme?

4.       What is the extent to which organizational culture moderate the relationship between conflict management and organizational stability in Commercial Banks in Eleme?

1.5     Research Hypotheses

The following hypotheses are stated to guide this study;

H01: There is no significant relationship between conflict avoidance and organizational stability in Commercial Banks in Eleme.

H02: There is a significant relationship between competition influence organizational stability in Commercial Banks in Eleme.

H03: There is a significant relationship between cooperation and organizational stability in Commercial Banks in Eleme?

1.6     Significant 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 management sciences in general.

1.7     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 management and stability.

Geographical Scope: This study is delimited to Commercial Banks in Eleme.

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 organizational stability.

1.8     Scope of the Study

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. In the next segment significance of the study will be discussed and lastly, poor measurement instrument.

1.9     Definition of Related Terms

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 (Walter et al 2006)

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. Solution to achieve the benefit of all the conviction of the importance common interests the manager can a therapist for the conflict broke out between his subordinates, when touching their tendency to encourage him and asked to sit down to determine the nature the conflict between them and the reasons for, and pray for themselves to appropriate solutions.

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

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)

CONFLICT MANAGEMENT

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

Incremental Growth

The firm following this strategy concentrates on one product line at a time, growing steadily. It is a low risk, low market share, change resistant kind of strategy followed by firms that are very comfortable with their present line of business.

Organizational Stability

Organizational stability involves maintaining the status quo or growing in a methodical but slow manner.

Profit / Harvesting

This is followed when the primary goal of the firm or any of its strategic business units is to generate cash to ensure a steady growth of business. 

Sustainable Growth

This is followed when the firm perceives that the external environment is not favorable due to certain critical resource constraints like financial resources or raw material import / export restrictions government policy changes, entry of a big player etc.