EFFECT OF CONFLICT RESOLUTION STRATEGIES ON

EMPLOYEE PERFORMANCE

(A STUDY OF SELECTED COMMERCIAL BANKS IN LAGOS)

Author by; Joseph Olawale Odeleye (BA, ASM, CFA)

Abeokuta Ogun State Nigeria. Email: joseph.odeleye@gmail.com
WhatsApp Number: +2348136168077
Year: February 2020
ABSTRACT
The study examined the effect of conflict resolution strategies on employee performance in
selected commercial banks in Lagos State. The study sought to examine the impact of forcing
strategy on employee competency; smoothing strategy on employee creativity; avoiding
strategy on employee service delivery and confronting strategy on employee productivity. The
sample of the study comprised four commercial banks namely First Bank, UBA Bank, Eco
Bank and Wema Bank. Primary data was used in the study. A structured questionnaire was
used to collect necessary data from 200 randomly selected staff of the banks. The study
employed the use of both descriptive and survey research design. Primary and Secondary
data were used to gather the necessary information. The main instrument that was used to
collect data was the questionnaire. Sampling technique used was the simple random
sampling techniques, Analyses of the data were carried out through the use of frequency
table, and Hypotheses was tested with the aid of Person Correlation Coefficient using
Statistical Package for Social Sciences (SPSS) version 25 to establish the relationship
between the variables. Findings of the study indicated that forcing strategy had significant
impact on employee competency; smoothing strategy had significant impact on employee
creativity; avoiding strategy had significant impact on employee service delivery and
confronting strategy had significant impact on employee productivity. The study maintained
that conflict resolution strategies enhance employee performance on the premise that they
are used constructively. The study recommended amongst others that, both management and
employees must resolve to work together amicably by formulating potent strategies and
sustaining acceptable policies as effective machinery for managing conflict on continuous
basis in organizations.
Keywords: Conflict Resolution, Conflict Management, Employee Performance, Avoiding
Strategies, Employee Competency.

1.0 INTRODUCTION

Conflict is a regular feature in business organizations which arises from the discordance
between the interests of the workers and management (Uju, 2010). Conflict is inevitable in
workplace and also occurs among individual workers in an organization because their values,
goals, interests and targets are not the same. Conflict occurs at both individual and collective

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levels, with personality, structural and other extraneous factors coming into play. Conflict in
organization is inevitable in organizations regardless of sound management practices and
policies put in place. The likelihood of occurrence of conflict is high in organizations with
hierarchical structure where people with different opinions, ideas and philosophies interact.

Conflict can be described as a situation where the interests and ideas of different employees
are dissimilar and frustrate each other’s attempt to achieve organizational objectives (Longe,
2015). Conflict can equally be conceived as the breakdown of effective communication
between employees and group in the organization. According to Thakore (2013), conflict is a
common issue of life in any organization and would always occur as long as employees
struggle for recognition, power, achievement and security. Thus, conflict does not tarnish the
reputation of an organization per say, because it provides the opportunity to settle
controversial issues for the betterment of the employees and organization. The responsibility
of management is not to suppress or resolve conflict, since they will always occur, but to
constructively manage them in order to stimulate employee performance and organizational
performance. Conflict management is a key component of corporate management. Ojo and
Abolade (2013) comments that the objective of conflict management is not to establish an
appropriate ideal corporate situation since it is unfeasible given the differences of interests
and goals between group of employees and management. However, conflict management
tactically uses the available conflict resolution strategies to create an effective mechanism for
conflict management in corporate organizations. Conflict is inevitable part of organizational
life since the goals of different stakeholders such as managers and staff are often
incompatible (Bruce & Hilton. 2009).

Businesses nowadays are operating in a turbulent environment where organizations and

institutions are searching for measures that will allow them to improve their performance and
competitiveness (Abu, Jasser, Sabreen, Murad & Nimer, 2010). In organizations, conflict is
regarded as the presence of discord that occurs when the goals, interests or values of different
individuals or groups are incompatible and frustrate each other’s attempting to achieve
objectives. Thus, every organization attempts to have a pleasant work environment in which
the relationships among workers and that between workers and management are cordial and
appreciated by both parties.

Conflict is inevitable in organizations irrespective of any industry it operates. This is because

individual employees have different interests, goals and targets they want to achieve, and also
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the interests of employees often times are not similar to the interests and goals of
management. The strategies an organization such as First Bank of Nigeria Plc adopts for
resolving conflicts determines their corporate performance as well as the performance of their
staff. This therefore connotes that conflict has positive and negative effects on organizational
performance.Constructively-handled conflicts brings peaceful coexistence among employees,
creates industrial harmony between employees and management, fosters the performance of
employees, improves the profitability and growth prospects of an organization, enhances the
quality of organizational decisions, informs organizations on effective ways of handling
future conflicts based on experience on prior conflict, reduces unhealthy rivalry between
employees and management and ensures organizational resources are effectively used
(Obasan, 2011; Uju, 2010; Korir, etal, 2015).

Destructively-handled or poorly-handled conflicts result in wastage of resources, deters

employees to perform at their best, creates disharmony between staff and management and
makes organizational objectives difficult to achieve. The effect of poorly-handled conflict
with respect in deposit money banks is catastrophic. Poorly-handled conflicts can expose
commercial banks to risk of huge financial losses. Furthermore, unresolved conflicts has the
capacity to drastically reduce the profitability of commercial banks, tarnish their goodwill,
lead to high employee turnover, scare existing and prospective customers and investors away,
jeopardize customers’ and investors’ confidence reposed on them, can destroy their liquidity
and insolvency and at the extreme, continually unresolved conflict can lead to financial
distress. It is therefore imperative for top management of commercial banks to ensure that
conflicts are constructively handled whenever they occur, in order to promote the
performance of employees as well as the overall performance of organizations.The main
objective of the study was to examine the effect of conflict resolution strategies on employee
performance in selected commercial banks in Lagos State. Other specific objectives of the
study are:

1. To examine the effect of forcing strategy on employee competency in selected

commercial banks in Lagos State.
2. To assess the effect of smoothing strategy on employee creativity in selected
commercial banks in Lagos State.
3. To investigate the effect of avoidance strategy on employee service delivery in
selected commercial banks in Lagos State.

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The banking industry is a sector where conflict resolution ought to be given importance and
must be effective given the industry’s susceptibility to huge financial losses whenever there is
conflict. To this end, the study attempts to examine the effect of conflict resolution on the
performance of employees in selected commercial banks in Lagos.

The study is significant in multiple dimensions. To management of banks in Nigeria, the

study through its findings will enlighten them on how to properly and constructively handle
conflicts whenever they arise. It informs the banking sector on the causes of conflict and the
appropriate resolution strategies to adopt to minimize incidences of conflicts for the
betterment of employees and organizations. Employees will equally benefit from the study
because it shows how their intra and inter-relationships bring about conflict and the approach
they can use to resolve conflicts.

The study informs the management of organizations in various industries on the most
appropriate ways of handling conflict to promote organizational and industrial growth.
Organizations will be educated on the set of conflict resolution techniques applicable to the
industry they belong to. This study will provide an insight to managerial staff in the banking
industry on the causes and tactical ways of resolving conflict. The study will enable them to
create a pleasant work environment where management and employees can work in unity to
achieve organizational objectives.

The study is beneficial to the government because conflict is not limited to the private sector,
but more prevalent in the public sector. The findings of the study will be useful to the
government in formulate effective strategies for resolving conflict in the public sector. The
study also educates union leaders on how to use their position to ensure industrial harmony in
private and public organizations.Lastly, the study serves as a body of knowledge as regard
conflict resolution and employee performance. Students, academic and researchers intending
to conduct research on the subject matter will find this study invaluable. The study equally
contributes to empirical literature on the subject matter.

Scope and Limitations of the Study

The study focuses on the effect of conflict resolution strategies on employee performance in
selected commercial banks in Lagos State. The study prioritized on four (4) banks namely
First Bank, UBA Bank, Eco Bank and Wema Bank. The population of the study comprised

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400 employees. However, the sample of the study comprised 200 management, staffs and
customers of selected banks.The study is limited to banking sector in Nigeria (Selected banks
in Lagos). It would not cover manufacturing industries in Nigeria. Moreover, the respondents
in this study are limited to only banking sector in Nigeria.

2.0 LITERATURE REVIEW

2.01.1 Concept of Conflict

One important task of management is to create an environment in which individuals and

groups of people can cooperate with one another to achieve their goals and the goals of the
organization as a whole. Yet one persistent problem in organizations is that individuals and
work groups compete for limited resources, power, status, etc. to the extent that their
competition leads to disruption (or even enhancement) of cooperative endeavours. These
competitions (bad or good) are generally referred to as conflicts.

Conflicts exist whenever an action by one party is perceived as preventing or interfering with
the goals, needs, or actions of another party. Conflict can arise over a multiple of
organizational experiences, such as incompatible goals, differences in the interpretation of
facts, negative feelings, differences of values and philosophies, or disputes over shared
resources. As defined above conflict tends to be associated with negative features and
situations which give rise to inefficiency, ineffectiveness or dysfunctional consequences. But
in some cases, it can actually stimulate creative problem solving and improve the situation for
all parties involved. In this article, we simply view organizational conflict as competition by
the individuals and groups for organizational resources and organizational rewards. Since
industrial relations basically aims at the relationship among various actors in the workplace, it
then becomes necessary to examine the causes and effects of conflict and to provide insights
into how such relationship could be adequately performed.

Conflict situations are an important aspect of the workplace. Although it's generally accepted
that conflict is an inevitable and integral part of the work environment, it's important to
clarify just what conflict means. Dzisi, Smile (2014) several attempts have been made by
various authorities at defining conflict in modern societies. However, no single definition
stands out so clearly and distinct. Conflict is synonymous with antagonism, opposition,
disagreement, discord, combat and encounter. Conflict can also connote competition between
or among groups in society. Ursing (2003) stated that conflict is the differences in

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perspectives, beliefs, actions or interests which are sometimes verbalized and sometimes they
are not. Mankoe (2007), also defined conflict as the pursuit of incompatible or at least
seemingly incompatible goals, such that gains to one side come out of the expense of the
other. Rahim (2001) looked at conflict as “an interactive process manifested in
incompatibility, disagreement or dissonance within or between social entities (that is
individual, group, organization, etc.).”

Conflict Management

Conflict management is the process of limiting the negative aspects of conflict while
increasing the positive aspects of conflict. The aim of conflict management is to enhance
learning and group outcomes, including effectiveness or performance in organizational
setting (Rahim, 2002). Based on Ndulue & Ekechukwu (2016) cited from Hellriegel (2010),
define conflict management as the interventions designed to reduce conflict, or in some
instances, to increase insufficient conflict. It is a process whereby managers design plans, and
implement policies and procedures to ensure that conflict situations are resolved effectively.
Knippen, Yohan, and Ghalla (2011), asserted that conflict management broadens
understanding of the problem, increases the resolutions and tend to work towards consensus
and to seek a genuine commitment to decision making. Since there is a broader, stronger
element of disagreement and discord within the conflict process, a considerable amount of
mental and psychological energy is generated. The ability to divert this energy into
productive achievement for both parties involved in the conflict can result in the conversion
of conflict into a joint finding and problem-solving solution (Prentice, 2006). Conflict is a
fact of life in any organizations as long as people compete for jobs, resources, power,
recognition and security. In addition, dealing with conflicts is a great challenge to
management (Adomi and Anie, 2005). Conflict management contributes significantly to
successful leadership and teamwork, improves product and service quality for customers,
builds customer loyalty, reduces costs, and uses financial resources wisely (Tjosvold, Hui, &
Law, 2001).

Workplace Conflict

Workplace conflict has been defined in several ways by many authors. Obi (2012) defined
workplace conflict as an act of discontentment and contention which either the workers or
employers of labour utilize to put excessive pressure against each other so as to get their
demands. This view is consistent with Henry (2009); Ikeda, Veludo and Campomar (2005);
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Azamoza (2004) and Ajala and Oghenekohwo (2002) descriptions of workplace conflict as a
dispute that occurs when interests, goals or values of different individuals or groups are
incompatible with each other in organizations. On this premise, workplace conflict within the
context of employment relationship can be regarded as an inevitable clash of interests and
resulting disputes of varying intensity between and within any or all of the active actors in
organizations. Thus, in the absence of common values in organizations, conflict is bound to
occur.

Causative Factors of Work-place Conflict

Empirical research findings have provided insights into causative factors of workplace
conflict. Hotepo, Asokere, Abdul – Azeez and Ajemunigbohun (2010) found lack of
resources, different expectation, competition, lack of cooperation, interdependence and
communication problems as factors that have caused conflicts in the Nigerian service
industry. Relatedly, in the banking sector in Nigeria, Obasan (2011) identified unacceptable
terms of employment, poor human relations between management and workers, non –
consultation with employees before making key decisions affecting them, anti-union posture
of management and lack of effective mechanism for prevention of conflict as multiple causal
factors of workplace conflict. A Philippian study also conducted in the banking industry by
Tsevendorj (2008) rated communication failure, perception, values and culture problems as
moderately serious sources of conflict. Thus, most organizational conflicts have economic
and goal incompatibility orientations in the workplace.

2.01.6 Formal and Informal Workplace Conflict

Ogunbameru (2006) classified workplace conflict into two broad types: informal and formal
workplace conflicts. According to him, conflict in work-relations is informal when it is not
based on any systematic organizational problem but results directly from a source of
grievance and supposedly is wholly expressive in nature. In this connection, the underlying
sources cannot be openly seen, but can be inferred from unconscious form of protest,
sabotage, unruly behaviour and poor work-attitudes by employees in organizations. If the
situation is sufficiently widespread, it can significantly affect employee job description focus,
turnover and impact on the prosperity of an organization (Kazimoto, 2013). On the other
hand, formal workplace conflict is referred to as an organized expression of conflict
articulated through a trade union or other workers representatives (Ogunbameru, 2006). This
type of conflict is highly visible, since it is often a conscious strategy or calculated attempt to
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obtain alteration in employment relationship. To sum all, Albert (2001) averred that there are
two sides to workplace conflict, whetherformal or informal, one is destructive and unhealthy
and the other is productive and healthy, having a problem-solving base. However, the two
conflict situations are neither bad nor good, since disagreement and dissatisfaction must
occur in work-relations for adjustment to be made to improve total workplace performance.

2.01.7 Management of Workplace Conflict

According to Rahim (2002) conflict management involves designing effective strategies to

minimize the dysfunctions of conflict and enhance the constructive functions in order to
optimize learning and effectiveness of an organization. This implies that managing conflict
does not necessarily connote avoidance or termination but the decrease of the odds of non-
productive escalation. As such, conflict management is the method by which organizations
and people handle grievances or disputes so as to find a middle way alternative to increase
resolution,work towards consensus and offer genuine commitment to decision-making. As
observed by Uchendu, Anijaobi and Odigwe (2013), since conflict is inevitable in
organizations, its management determines whether it will generate positive or negative effect
on the organizational performance. The timely recognition and immediate explication of the
underlying tension before the conflict issues go out of hand are germane to effectual
management of conflict inthe workplace. Consequently, conflict management orientation is a
highly obtrusive process which can be implemented in a number of diverse ways in
organzations. Ford (2007) posited a four-way process which includes assessment and inquiry,
design, implementation and evaluation aimed at achieving efficacious and objective conflict
decision in the workplace. This integrative approach is often employed to encourage
management to satisfy the needs of stakeholders in the resolution of conflict. Vigil and King
(2000) observed that the use of integrative style of managing conflict is likely to create better
result and higher commitment in individuals than teams using non-integrative conflict
management. The integrative approach broadens the understanding of the conflict problem
and increases resolution. In the same vein, collective bargaining strategy has been suggested
as the approach for managing union-management conflict in organizations. The approach is
internationally acclaimed as the legal instrument by which workers and management settle
conflicts arising from employment contracts (Fajana & Shadare, 2012).

Forms of Conflict in Organizations

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Conflict can take on any several different forms in an organization, including interpersonal,
intrapersonal, intergroup, intergroup and inter-organizational conflicts. It is important to note
that the prefix inter means ―between‖ whereas the prefix intra means ―within‖.

 Interpersonal Conflict: Interpersonal conflict emphasizes the interaction of human

factors in an organization. Here we are concerned with these factors as they appear in
a dyadic relationship. Conflict between people can arise from many individual
differences, including personalities, attitude, values, perceptions and other
differences. It may be substantive or emotional or both. Two persons debating each
other aggressively on the merits of hiring a job applicant is an example of a
substantive interpersonal conflict. Two persons continually in disagreement over each
other’s choice of work attire is an example of an emotional interpersonal conflict.
 Intrapersonal Conflict: Intrapersonal conflict is internal to the individual (though its
effects can profoundly influence organizational functioning) and is perhaps the most
difficult form of conflict to analyze and manage. Intrapersonal conflict is basically a
conflict between two incompatible tendencies. It arises when a stimulus evokes two
different and incompatible tendencies and the individual is required to discriminate
between these tendencies. In such a situation it is common for individuals to
experience frustrations and to allow their conflict situation to be expressed in a range
of behavioural strategies ranging from apathy and boredom to absenteeism, excessive
drinking or destructive behaviour. If such behavioural consequences are to be
avoided, then it is essential to diagnose individual perception and utilize some
techniques that would reduce anxiety-eliciting stimuli and increase consonance
between individual behaviour and organizational requirements. Intrapersonal conflicts
often involve actual or perceived pressures from incompatible goals or expectations of
the following types: Approach–approach conflict occurs when a person must choose
between two positive and equally attractive alternatives. An example has to choose
between a valued promotion in the organization or a desirable new job with another
firm. Avoidance–avoidance conflict occurs when a person must choose between two
negative and equally unattractive alternatives. An example is being asked either to
accept a job transfer to another town in an undesirable location or to have one’s
employment with an organization terminated. Approach–avoidance conflict occurs
when a person must decide to do something that has both positive and negative

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 consequences. An example is being offered a higher paying job whose responsibilities
entail unwanted demands on one’s personal time.
 Intergroup Conflict: Intergroup conflict occurs among members of different teams
or groups can also have substantive and/or emotional underpinnings. Intergroup
conflict is quite common in organizations, and it can make the coordination and
integration of task activities very difficult. The classic example is conflict among
functional groups or departments, such as marketing and manufacturing, in
organizations. The growing use of cross functional teams and task forces is one way
of trying to minimize such conflicts and promote more creative and efficient
operations.
 Intragroup Conflict: Conflict that occurs within groups or teams is called intragroup
conflict. There are two types ofintragroup conflict: Task conflict and Relationship
conflict. Task conflict is a perception of disagreement group members or individuals
about the content of their decisions and involves differences in viewpoints, ideas and
opinions. For example, task conflict about the distribution of resources, about
procedures or guidelines and about the interpretation of facts. Relationship conflict is
a perception of interpersonal incompatibility and includes annoyance and animosity
among individuals.
 Inter-organizational Conflict: Conflict that occurs between two or more
organization is called inter-organizational conflict.Competition can heighten inter-
organisational conflict. Corporate take over’s, mergers and acquisition can also
produce inter-organizational conflict.

Conflict Resolution Model

Different people use different strategies for managing conflict. Usually we are not aware of
how we act in conflict situations. We just do whatever seems to come naturally. But we do
have a personal strategy; and because it is learned, we can always change it by learning new
and more effective ways of managing conflicts. When you become engaged in a conflict,
there are two major concerns individuals have to take into account:

Achieving your personal goals — Individuals are in conflict because individuals have a goal
that conflicts with another person’s goal. Individual goal may be of high importance to him,
or it may be of little importance to him.

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Keeping a good relationship with the other person — Individuals may need to be able to
interact effectively with the other person in the future. The relation-ship may be very
important to individual or may be of little importance to him. How important your personal
goals are to you and how important the relationship is to you affects how you act in a
conflict. Given these two concerns, it is possible to identify styles of managing conflict in an
organization are as follows:

Avoiding: The basic goal of the avoidance it to delay. Person would rather hide and ignore
conflict than resolve it. This leads to the uncooperative and unassertive. Person tend to give
up personal goals and display passive behavior creating lose-lose situations. Person believes
it is easier to withdraw from a conflict rather than to face it. Avoiding strategy may help to
maintain relationship that would be hurt by conflict resolution and very effective way to
affront conflictive situations at short term. Disadvantage may be conflict remain unresolved;
overuse of the style leads to others walking all over them. Appropriate time to use this style
when stakes are not high or issues is trivial, when confrontation will hurt a working
relationship, when there is little chance of satisfying your wants, when disruption outweighs
the benefit of conflict resolution, when gathering information is more important than an
immediate decision, when others can more effectively resolve the conflict and when time
constraints demand a delay.

Smoothing: Smoothing refers to the conciliation that occurs when one person or group is
willing to yield to the other. Smoothing results from a low concern for one’s group own
interests combined with a high concern for the interest of another group. Smoothing conflict
management style emphasis on human relationships. Individuals ignore their own goals and
resolve conflict by giving in to others because they see the relationships as of the greatest
importance while their own goals are of the least importance. Individuals smooth over the
conflict out of fear of harming the relationship—their unassertive and cooperative behavior
creates a win/lose situation want to be accepted and liked by others. Individuals think that
conflict should be avoided in favor of harmony and that people cannot discuss conflicts
without damaging relationships. Individuals are afraid that if the conflict continues, someone
will get hurt and that would ruin the relation-ship. Advantage of Smoothing style is to
maintain relationship but giving in may not be productive. Appropriate time to use this style
is when maintaining the relationship outweighs other considerations, when
suggestions/changes are not important to the accommodator, when time is limited or when
harmony and stability are valued.
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Forcing: It designates a situation in which one person or group attempts to acquire complete
dominance. Individual do not hesitate to use aggressive behaviour to resolve conflict.
Individual assume that conflict is settled by one person winning and one person losing and
they want to be the winner and creating a win-lose situation. Winning gives a sense of pride
and achievement. Losing gives a individual a sense of weakness, inadequacy or failure. If
individual decision is correct a better decision without compromise can result. If individual
decision is incorrect may bred hostility and resentment toward the person using it. This style
is appropriate when quick decisive action is vital; on important issues where, unpopular
actions need implementing example. Cost cutting,

Confronting: Confronting style refers to strong cooperative and assertive behaviour. It is the
win-win approach to interpersonal conflict handling. The person using confronting desire to
maximize joint results. An individual who uses this style tends to see conflict as natural,
helpful, and leading to a more creative solution if handled properly. Exhibit trust in others
and conflict is resolve to the satisfaction of all. Confronting style is most practical to find an
integrative solution when both sets of concerns are too important to be compromised, when
objective is to learn, to gain commitment by incorporating concerns into a consensus and to
work through feelings that have inferred with a relationship.

Organization Structure based conflict resolutions: Structure of an organization provide

fuel to create conflict situation. If conflict is not managed properly become dysfunctional or
destructive. Following are the ways to manage structure-based conflict:

Super ordinate goals: An organizational goal that is more important to both parties in a
conflict than their individual or group goal is a super ordinate goal. Goals cannot be achieved
by an individual or by one group alone. The achievement of goal requires cooperation by
both parties. Super ordinate goal converts a conflict between departments to friendly
interactions, develops favorable attitudes and seeks to achieve solutions that are mutually
satisfactory.

Reduce interdependence between groups: Interdependency is one of the major causes of

conflict. It is necessary to identify and clarify poorly defined and poorly arranged
interdependencies through unifying workflow. This work flow can be designed either to
increase the interdependencies or to eliminate them entirely.

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Increase resources: Conflict will occur whenever the wants and needs of two or more parties
are greater than the sum of the resource’s available foe allocation. This conflict can be
reduced by planning ahead about the proper distribution of such resources instead of making
haphazard and last-minute allocations.

Mutual problem solving: This is one of the most frequently used techniques for increasing
collaboration. It requires the conflicting parties to come together, analyze and define the
problem, understand each other’s viewpoints and arrive at a rational and objective solution
through mutual interactions.

Increase interactions: Organizations should provide more opportunities to the employees in

subunits to interact with each other. If people interact with each other not only would they
develop better understanding of each other’s way of functioning but also may discover
common interests, problems and priorities. Appointment of Ombudsperson, Cross
fertilization, merger, rules, procedures and policies also helps in resolving structure-based
conflict in an organization.

Collaboration involves people surfacing their differences and then work on the problems until
they have attained mutually satisfactory solutions. This approach assumes that people will be
motivated to expend the time and energy for such problem-solving activity. Bargaining on the
other hand assumes that neither party will emerge satisfied from the confrontation but that
both through negotiation can get something they do not have at the start or more of something
they need, usually by giving up something of lesser importance. One party generally wins
more than the other; by the skillful use of tactical orders, he can get the maximum possible
from the other side.

Third approach is Power play, which differs from the other two approaches because its
emphasis is on self-interest. Whereas, in collaboration and bargaining the two sides come
together to try to resolve their problems, when power is the dominant mode, the actions are
unilateral or in coalitions acting unilaterally.

Timely Resolution of Conflict

Communication plays a central role in handling conflict. Conflict is an interactive process

between two or more parties that requires effective human interaction. (Brower & Darrington
2012). By communicating effectively, leaders and followers can successfully resolve
conflicts to bring positive results. When conflict exists in leadership situations, it is

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recognized and expressed through communication. (Brower & Darrington
2012).Communication is the means that people use to express their disagreements or
differences (Gottman & DeClaire, 2001). Communication also provides the avenue by which
conflicts can be successfully resolved, or worsened. To understand conflict, we need to
understand communication. Most people know that in order to resolve conflicts, they need to
communicate about the issue; but negative patterns of communication can often lead to
greater frustration and escalation of conflict. (Brower & Darrington, 2012). Every
organization should therefore endeavor to make effective communication an essential integral
part in effect management strategies to help minimize organizational conflict so as to
improve performance (Dreu, 2006). Most organizational conflict has been traced to breakage
in communication as supported by Mukhtar, Qureshi, & Sharif (2012), therefore overcoming
communication roadblocks requires effective speaking and listening skills. Awan and Anjum
(2015) argue that a negative work environment that does not promote communication and
conflict resolution can result in poor performance. Conclusively, effective communication to
the management and staff is the panacea for sustained and increased productivity of the
workforce and organizational performances. It is not enough to have a good or ideal conflict
management strategies in place, but awareness and participation as a means of
communication will help to enhance organizational performance (Ngozi & Okonkwo 2015).
The 51 next section studied literature on communication in improving customer satisfaction
and highlighted the gaps that the study aimed to fill.

2.02 Theoretical Review

Conflict Theory (Modern Conflict Theory Knapp, 1994).

In Mill’s view, social structures are created through conflict between people with differing
interests and resources. Individuals and resources, in turn, are influenced by these structures
and by the “unequal distribution of power and resources in the society”. (Knapp, 1994). The
power elites of the American society, (i.e., the military – industrial complex) “emerged from
the fusion of the cooperate elite, the pentagon and the executive branch of government”.
Mills argues that the interests of these elites were opposed to those of the people. He
theorized that the policies of the power elites would result in “increased escalation of conflict
of weapons of mass destruction, and possibly the annihilation of human race” (Knapp, 1994).

A recent articulation of the conflict theory is found in Alan Sears (Canadian Sociologist)
book: “A Guide to Theoretical Thinking” (2008). According to Sears’ (2008): Societies are
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defined by inequality that produces conflict, rather than order and consensus. This conflict
based on inequality can only be overcome through a fundamental transformation of the
existing relations in the society, and is productive of new social relations. The disadvantaged
have structural interests that run counter to the status quo, which, once they are assumed, will
lead to social change. Thus, they are viewed as agents of change rather than objects one
should feel sympathy for.

Human potential (e.g., capacity for creativity) is suppressed by conditions of exploitation and
oppression, which are necessary in any society with an equal division of labour. These and
other qualities do not necessarily have to be stunted due to requirements of the so called
“civilizing process” or “functional necessity”. Creativity is actually an engine for economic
development and change. The role of theory is in realizing human potential and transforming
society, rather than maintaining the power structure. The opposite aim of theory would be
objectivity and detachment associated with positivism, where theory is a neutral, explanatory
tool.

Views on Conflict

There are various perceptions regarding conflicts. Conflict is a reality in everyone’s life and
should be considered a natural process that occurs daily. As a group performs its assigned
tasks, conflict inevitably arises (Robins, et al, 2003). Conflict is viewed as natural due to
life’s uncertainty. Conflict is good and necessary because it can stimulate innovative thinking
when it is managed in the right way. Lacking conflict, thoughts and actions are performed
because they are habitual. Conflict allows an examination of the necessity of these thoughts
and actions. People find it easier to live with unresolved misunderstanding than facing the
fact that fundamental differences do exist, and demand recognition and appropriate
management (Deetz and Stevenson, 1986). Conflicts are an integral past of a human’s life in
all aspects. One cannot avoid conflicts in families, at work or even when watching the news
on television (Viletta Bankovs Kay, 2012). Historically, the following views on conflict are
identified:

Traditional View (1930-1940)

One school of thought says that conflict must be avoided as it reflects malefaction within the
group. Conflict is viewed negatively and is associated with violence and destruction. Conflict
is a result of poor communication and a lack of trust between people. Conflict can be

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eliminated or resolved only at high level of management. According to this view, all conflicts
should be avoided. Thus, there is need to pay attention to causes of conflict and correct them
in order to improve group and organization performance (Robins, 2005). Most conflicts have
negative connotations, invoke negative feelings and often lead to destruction. Whether the
effect of conflict is good or bad depends on the strategies used to deal with it (Rahim, 1986).

The Human Relations or Contemporary View (1940-1970)

Conflict is a natural occurrence in all groups. The human relations school accepts conflict. It
believes that conflict may benefit a group’s performance (Robbins, 2005). Dispute happens
from time to time and it is not wise to put too much effort into avoiding or preventing the
conflict. Concentrating only on large or critical conflicts allows people to resolve the conflict
in a better and more effective way (Leung, 2010). According to this view, conflict is seen as a
natural and inevitable outcome of people working together in groups and teams. Thus, it
needs not necessarily be viewed negatively, but rather positively as a potential force in
contributing to the performance of individuals (Robbins, et al, 2003).

The Interactionist View

According to this view, conflict is not only a positive force, but is also necessary for an
individual to perform effectively. Resolving conflicts means challenging normal processes
and procedures in an effort to improve individual productivity or introduce innovative
systems (Robbins, et al, 2003). Conflict is necessary to perform effectively, but not all
conflicts are good. This school of thought has identified several types of conflict: - task
conflict, relates to the content and goals of the work; relationship conflict, which focuses on
interpersonal relationships; and - process conflict, which relates to how the work gets done
(Robbins, 2005). The interactionists interpret conflict in a totally different way from
traditionalists and people with a contemporary view. According to interactionists, conflict can
be identified as either dysfunctional or functional. Conflict is a part of people’s lives and a
natural phenomenon in all organizations. A low level of conflict will not be harmful for daily
operations but will help to create smooth functioning by better understanding of existing
issues. Conflict at the desired level can inspire creativity when handling issues and resolving
conflict. Thus, conflict can be positive in work environments, but whenever a critical or
major conflict occurs, it should be resolved as the undesired level of conflict can be harmful
and dysfunctional for the organization (Leung, 2010).

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Empirical Review

Uchendu, Anijaobi-Idem and Odigwe (2013) examined the relationship that exists
between principals’ conflict management and organizational performance in Cross River
State,
Nigeria. The authors employed questionnaire to gather their data. The instrument was a 4
point
likert type scale consisting 32 items. Pearson Product Moment Correlation Coefficient
Analysis
was used in analyzing the data. The result of the analysis revealed that, there is a significant
relationship between principals’ conflict management in terms of teacher-teacher conflict
(TTC), teacher-student conflict (TSC), principal-teacher conflict (PTC) and organizational
performance.
Adomi and Anie (2006) investigate the pattern of conflict management in Nigerian
libraries. The researchers employed descriptive design and questionnaire to collect data from
professional and para-professional staff of three Nigerian University libraries. Majority of the
respondents perceive conflict as positive and can be stimulated by library managers. The
study further found out that interpersonal conflicts are the dominant conflicts in Nigerian
libraries, and accommodation ranks highest as technique of conflict avoidance.

3.0 METHODOLOGY

Research Design

The study is a descriptive survey because it adopted the use of questionnaires aimed at
finding the impacts of leadership style on conflict management and resolution in an
organization. It seeks to find out the dimensions of conflict resolution strategies that may
contribute to the employee performance.

Data was collected based on the concepts defined in the research model and hypothesis. The
main source for this research work is the both primary and secondary source of data. Primary
data collected through the use of personally administered questionnaire distributed to
respondents to get first-hand information about the issue at hand on the project. While
secondary data collected through journals, textbooks, articles and notes in the past research
work.

The Study Population

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The population for this study consists of management staff, frontline employees at various
levels of the selected banks as well as customers of the study establishments. The employees’
positions cut across various types of managerial and customer service roles. This is
considered to be well represented across job classifications and can serve the research
purpose regarding the characteristic of the target population’s organizational role. The choice
to study the establishments was premised on their perceived standard as first-class
commercial banks in the country.

The target population is made up of employees, management staffs, and customers of the
selected establishments. The determination of the sample size is based on the 400study
population.

Population of the Four (4) Selected Commercial Banks in Lagos

Section FirstBank Nig Plc UBA Plc Eco Bank Plc Wema Bank Plc Total
Employee 30 35 35 31 131
Management 36 31 32 29 128
Customers 36 32 40 33 141
Grand Total 102 98 107 93 400
Source: Field Survey, February, 2020

Sampling is a key component of any investigation and involves several considerations. A

stratified sampling method was adopted so as to ensure that the selected managers,
supervisors, and staffs of four (4) selected commercial banks. The aim of most investigations
is to obtain information about a population. A census or sample of the population is taken for
analysis.

Sample Size

The sample size for the study was determined using Yaro Yammane’s Formula. This was
used because of the large population of the study. It is stated thus;

n= [ N
1+ N ( e)
2
]
Where;
n = Corrected sample size
N = Population size
e = Margin of error, e = 0.05 based on research conditions.

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 n= [ 400
1+ 400(0.05) ]
2 = 2

n= [ ]
400
2
= 200

Where: Q = the number of questionnaires to be allocated to each segment.

A = the population of each segment

N = the total population of the entire segment.

n = the estimated sample size used in the study.

Therefore, the sample size for the study is Two hundred (200) staff respondents of the
selected commercial banks.

Research Instrument Specification

The main research instrument was the questionnaire. They were personally administered to
the respondents. The questionnaires were divided into two sections (Section A and B).
Section A questionnaire comprising questions relating to participants’ biographical
information while section B focuses on conflict resolution strategies variables, and the
employee performance, arranged using Likert table, respondents will indicate the extent at
which they Agree or Disagree with each of the statements in the Likert table, by ticking [√]
where necessary. SA =Strongly Agree, A =Agree, U = Undecided, D = Disagree, and SD =
Strongly Disagree.

Measurement of Variables

Ordinary scale was employed to measure the relationship between variables in the study. The
ordinary scale is ranked order scale in which the numbers are assigned to the objects to
determine the relative extent to which certain characteristics is possessed. It helps in
identifying whether the object has more or less of a characteristic as compared to another
object. Therefore, in the aim of this research is to examine whether the independent variables
(conflict resolution strategies) result in a change in the dependent variables (i.e. employee
performance). When the two sets of responses were compared, it was evidenced that their
responses were similar as the respondents, maintained similar stand points in both cases. The
dependent variable is employee performance, which is measured by four variables namely
employee competency, employee creativity, employee service delivery, employee

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competency. The independent variable is conflict resolution captured by forcing, smoothing,
avoidance and confrontation strategies.

Method of Data Presentation and Analysis

The descriptive statistics such as frequencies, percentage and graphs were used for the
analysis of the research questions, while the hypotheses’ testing was carried out with Pearson
Correlation Method. The analysis was run through the aid of Statistical Package for Social
Sciences (SPSS) computer software.

4.0 DATA PRESENTATION AND ANALYSIS

Analysis of Research Questions

Analysis of research questions in Section B contains the general questions and these were
assigned values which are used in drawing conclusion. From the total number of 200
questionnaires which were administered to the Employee and management of selected bank
in Lagos, all 200 questionnaires were properly answered. A total of 20 questionnaires were
collected from the top managers, 35 questionnaires were collected from middle managers, 45
questionnaires were collected from the supervisors, while total of 100 questionnaires were
collected from junior workers of selected bank in Lagos.

Therefore, the research opinion and analysis will be based on 200 questionnaires that were
properly administered.

Table 8: Question 2: It is important to have negotiation at the beginning of the performance

contract so that an employee is well informed of what is expected

Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 20 10.0 10.0 10.0
Agree 148 74.0 74.0 84.0
Valid Undecided 4 2.0 2.0 86.0
Disagree 24 12.0 12.0 98.0
Strongly Disagree 4 2.0 2.0 100.0
Total 200 100.0 100.0
Source: Field Survey February, 2020

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Table 8 indicates that, 10% of the respondents answered Strongly Agree, 74% of the
respondents answered Agree, 2% answered Undecided, and 12% of the respondents answer
Disagree, while 2% answered Strongly Disagree. It indicates that it is important to have
negotiation at the beginning of the performance contract so that an employee is well informed
of what is expected.

Table 10: Question 4: Better human relations between management and staff reduced
incidence of conflicts
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 8 4.0 4.0 4.0
Agree 176 88.0 88.0 92.0
Undecided 4 2.0 2.0 94.0
Valid Disagree 8 4.0 4.0 98.0
Strongly Disagree 4 2.0 2.0 100.0
Total 200 100.0 100.0
Source: Field Survey February, 2020

Table 10 indicates that, 4% of the respondents answered Strongly Agree, 88% of the

respondents answered Agree, 2% answered Undecided, 4% of the respondents answer

Disagree, while 2% answered Strongly Disagree. It shows that Better human relations

between management and staff reduced incidence of conflicts.

Table 11: Question 5: Management encourages employees to express their views and
express their feelings frankly.
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 8 4.0 4.0 4.0
Agree 180 90.0 90.0 94.0
Valid Undecided 4 2.0 2.0 96.0
Disagree 4 2.0 2.0 98.0
Strongly Disagree 4 2.0 2.0 100.0
Total 200 100.0 100.0
Source: Field Survey February, 2020

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Table 11 indicates that, 4% of the respondents answered Strongly Agree, 90% of the
respondents answered Agree, 2% answered Undecided, 2% of the respondents answer
Disagree, while 2% answered Strongly Disagree. It shows that Management encourages
employees to express their views and express their feelings frankly.

Table 18: Question 12: Unacceptable terms of employment such as poor hours of work,
poor salary and lack of fringe benefits cause conflict in the organization
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 8 4.0 4.0 4.0
Agree 180 90.0 90.0 94.0
Valid Undecided 4 2.0 2.0 96.0
Disagree 4 2.0 2.0 98.0
Strongly Disagree 4 2.0 2.0 100.0
Total 200 100.0 100.0
Source: Field Survey February, 2020

Table 18 indicates that, 4% of the respondents answered Strongly Agree, 90% of the

respondents answered Agree, 2% answered Undecided, 2% of the respondents answer

Disagree, while 2% answered Strongly Disagree. It shows that Unacceptable terms of

employment such as poor hours of work, poor salary and lack of fringe benefits cause conflict

in your organization.

Table 20: Question 14: OftenNon consultation with employees before key decisions
affecting management decisions taken
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 4 2.0 2.0 2.0
Agree 180 90.0 90.0 92.0
Valid Undecided 8 4.0 4.0 96.0
Disagree 8 4.0 4.0 100.0
Strongly Disagree 0 0.0 0.0 100.0
Total 200 100.0 100.0
Source: Field Survey February, 2020

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Table 20 indicates that, 2% of the respondents answered Strongly Agree, 90% of the
respondents answered Agree, 10% of the respondents answer Undecided, while 2% answered
Disagree It shows that non consultation with employees before key decisions affecting
management decisions taken.

Table 22: Question 16: Often your organization consulting with workers in order to resolve
the conflict
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 20 10.0 10.0 10.0
Agree 148 74.0 74.0 84.0
Valid Undecided 4 2.0 2.0 86.0
Disagree 24 12.0 12.0 98.0
Strongly Disagree 4 2.0 2.0 100.0
Total 200 100.0 100.0
Source: Field Survey February, 2020

Table 22 indicates that, 10% of the respondents answered Strongly Agree, 74% of the
respondents answered Agree, 2% answered Undecided, and 12% of the respondents answer
Disagree, while 2% answered Strongly Disagree. It indicates that your organization
consulting with workers in order to resolve the conflict.

Table 23: Question 17: Your organization put machineries in place to address the sources of
conflict
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 8 4.0 4.0 4.0
Agree 188 94.0 94.0 98.0
Valid Undecided 0 0.0 0.0 0.0
Disagree 4 2.0 2.0 100.0
Strongly Disagree 0 0.0 0.0 100.0
Total 200 100.0 100.0
Source: Field Survey February, 2020

Table 23 indicates that, 4% of the respondents answered Strongly Agree, 94% of the

respondents answered Agree, 0% answered Undecided, and 2% of the respondents answer

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Disagree, while o% answered Strongly Disagree. It shows that organization put machineries

in place to address the sources of conflict.

Table 26: Question 20: Conflict can be reduce in your organization by enforcing strict
disciplinary rules on workers
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 8 4.0 4.0 4.0
Agree 188 94.0 94.0 98.0
Valid Undecided 0 0.0 0.0 0.0
Disagree 4 2.0 2.0 100.0
Strongly Disagree 0 0.0 0.0 100.0
Total 200 100.0 100.0
Source: Field Survey February, 2020

Table 26 indicates that, 4% of the respondents answered Strongly Agree, 94% of the

respondents answered Agree, 0% answered Undecided, and 2% of the respondent’s answer

Disagree, while o% answered Strongly Disagree. It shows that conflict can be reduce in your

organization by enforcing strict disciplinary rules on workers.

4.03 Test of Hypotheses

The hypotheses were using Pearson correlation. The analysis enables us identify relationship

between dependent variable and independent variables.

Decision Rules: Reject and null hypotheses (H0) if the sig. value (0.000) is less than the

conventional 0.01 level of significance and accept it otherwise. The level of strength between

these variables can also be determined as indicated below;

Coefficient value Strength of Association

0.1</r/<,3 Weak Correlation

0.1</r/<,5 Moderate Correlation

/r/>,5 Strong Correlation

Where r means the absolute value of Pearson Correlation Coefficient.

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4.03 Discussion of Findings

It can be inferred from the Pearson correlation table above shows that there is a significant
relationship between forcing strategy and employee competency, this is shown by the
correlation coefficient of ..935 and probability error of 0.01 indicating a positive relationship
between the two variables at 1% level of significance. This implies that the null hypothesis
(H0) is rejected. Therefore, there is a significant relationship between forcing strategy and
employee competency in selected commercial banks in Lagos State.

The Pearson correlation table above shows that there is a significant relationship between
smoothing strategy and employee creativity, this is shown by the correlation coefficient
of .519 and probability error of 0.000 indicating a positive relationship between the two
variables at 1% level of significance. This implies that the null hypothesis (H0) is rejected.
Therefore, there is a significant relationship between smoothing strategy and employee
creativity in selected commercial banks in Lagos State.

The Pearson correlation table above shows that there is a significant relationship between
avoidance strategy and employee service delivery, this is shown by the correlation coefficient
of .499 and probability error of 0.000 indicating a positive relationship between the two
variables at 1% level of significance. This implies that the null hypothesis (H0) is rejected.
Therefore, there is a significant relationship between avoidance strategy and employee
service delivery in selected commercial banks in Lagos State.

5.0 SUMMARY, CONCLUSSION AND RECOMMENDATIONS

Summary of Findings

The predominant purpose of this study was to assess the effects of conflict resolution
strategies on employee performance with a special focus on selected commercial banks in
Lagos. To achieve the overall goal of the study key prerequisite objectives had to be
accomplished. The literature review section of this thesis focused on defining employee
performance and its connection to different conflict resolution strategies. In relation to that,
the study analyzed the effectiveness of negotiation, communication, and third-party
intervention as conflict management strategies. Establishing the connection between
employee performance and conflict resolution strategies necessitated a detailed analysis of
each strategy while considering the role of situational factor at any given time.

It can be inferred from the Pearson correlation table above; it was found out that:

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 1. There is a significant relationship between forcing strategy and employee competency
in selected commercial banks in Lagos State.
2. There is a significant relationship between smoothing strategy and employee
creativity in selected commercial banks in Lagos State.
3. There is a significant relationship between avoidance strategy and employee service
delivery in selected commercial banks in Lagos State.

5.02 Conclusion

For an organization to grow effectively and efficiently it depends on the way it manages the
conflict within its organization. Having studied the opinions of the various stakeholders as far
as this research is concerned, it should be noted that the employees should be flexible and
should direct their energy towards the achievement of organizational goals and objectives. It
should be more than a target, against which performance is routinely assessed, in viable and
vibrant plan for success of the organization. This research work has effectively addressed the
effects of conflict resolution strategies on employee performance in an organization like
(selected commercial banks in Lagos).

5.03 Recommendations

Based on the findings of this research, the researches make the following recommendations:

1) Management in the workplace must try to adopt an inclusive and collaborative

strategies in conflict management and at the same time strive to involve union –
leadership or employee representative in vital decisions that affect the workforce.
2) Both management and employees must resolve to work together amicably by
formulating potent strategies and sustaining acceptable policies as effective
machinery for managing conflict on continuous basis in organizations.
3) Since conflict is indispensable in an organization, management should not take it with
kids’ glove as it can influence the employee performance, and this can either mar or
make the organization in achieving its stipulated objectives from time to time.
4) The organization should embark on training and retraining of its employees in area of
conflict management so as to create a conductive working environment for the
employees.

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 5) There should be efficient and effective communication between and among all
categories of the employees the organization. This will reduce conflictful situations in
the organization.
6) Management should formulate policies that will ensure that conflicts that may occur
within the organization are quickly resolved.

5.04 Policy Implication

This study has contributed to the body of knowledge, academically and professionally. It has
also empirically contributed to literature, especially in the field of employee performance as
well as conflict resolution management. Primarily, it has confirmed conflict management as a
key attribute of the successful of banking sector in Nigeria. This study contributes to the
understanding conflict resolution strategies in commercial banks in Lagos. The results of the
study offered strong empirical support for the existence of a positive and statistically
significant effect of conflict resolution on employee performance.

5.05 Suggestions for Further Studies

Future studies should adopt the use of financial measure of performance as non- financial
measures of performance was used in the study in order to know the effects of conflict
resolution strategies on financial performance especially in the industry. The studies should
adopt the use of reliable secondary data which are non-perceptual in nature and that could
reflect firm’s activities and performance over time, rather than using subjective self-reported
perceptual measures in assessing the study. One of the shortcomings of cross-sectional
research design is that information or data are collected only once at different location. Future
research could carry out this study using longitudinal research design, which takes into
cognizance performance over a period of time. Lastly, this study suggests that this research
be extended to other industries with the same variables used in this study in order to ascertain
its effectiveness in the overall performance of those sectors.

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