CONFLICT MANAGEMENT FOR EFFECTIVE PERFORMANCE IN AN ORGANIZATION

  (A Case Study Of Union Bank of Nigeria)

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF THE STUDY

The general view of managing conflict in an organization such as Union Bank of Nigeria Plc, the principles and sub-structures of the organisation are designed to provide the necessary vertical and horizontal links and inter-relationship that ensure the maximum potential for communication and understanding. Therefore, two parties must be involved in every existing organisation and for the survival and effectiveness of the organisation. The employer and the employee must cooperate to work together for the attainment of that organisational goal. Though in spite of the strong desire that exist among the parties, there are some problems that mar arise and these can result to conflict among them. The employer may be having interest detrimental to the employee or/and the desire of the employer and his employee are more or less unlimited.

1.2       HISTORICAL BACKGROUND OF THE STUDY

Union Bank of Nigeria plc was established in 1917 as a colonial Bank with its branch in Lagos in 1925. Barclay’s dominion colonial and overseas was formed to take over the activities of the bank. Between 1959 and 1970, fifty new branches were established. In 1969 the bank was legally incorporated in Nigeria as a wholly owned subsidiary of Barclays Bank International limited. The ownership structure remained unchanged until 1971 when 8.33% of the banks shares were offered to Nigerians. In the same year, the bank was listed on the Nigerian stock exchange. As a result of the Nigerian enterprises promotion decree of 1972, the Federal Government of Nigerian acquired 51.67% of the banks shares which left Barclays bank plc London with only 46%.

A landmark in the bank history occurred in 1979 when Barclays Bank sold 50% of its shareholding in the bank to Nigerians. This resulted in the change of the banks name to reflect its new image holding of Barclays Bank was disposed off in 1989. Today, Union bank is the oldest independent non – government banking institutes that are 100% owned and wholly managed by Nigerians. In 1986, it becomes the first bank in Nigerian to hit billion marks in savings deposits and in 1997, its saving deposits of N21.5 billion was also on industrial record. It has won the Nigerian stock exchange president’s merit award in the financial sector for a record of ten times. In 1994, it won the farmers of the year award in 17 Seventeen) out of the 36 states including Abuja, and it has won four out of the five editors of the award. Only recently, it was named by the bankers’ almanac the number one bank in Nigeria. Since its establishment in 1917, the bank has stood out strongly as a resilient institution which has served as a veritable hub of the financial system.

The bank remains a giant, not only in Nigeria, but also in Africa it if referred to as “Big, strong and Reliable”. The banks new head office building, a 32 storey edifice is arguably the tallest and the most beautiful concrete structure along the west coast of Africa. Union Bank of Nigeria plc is a leading Nigerian commercial Bank with about 379 branches operating throughout the federation. The bank provides employment for over 7,000 men and women, thus, making it the largest employer of labour in the banking sector in Nigeria. The bank has a full-fledged branch in London and the only South Africa. These in addition to the banks network of international correspondents have put the world within its easy reach. The bank, Union Bank of Nigeria plc was one of the first four banks in Nigeria to hit the N25 billion recapitalization recently introduced by the federal government.

1.3       STATEMENT OF THE PROBLEM

In any organisation, be it public, private or government establishment, there is bound to be disagreement, misunderstanding and contradiction from time to time. it is realized that the level of economic productivity of any organisation id measured in terms of the relationship and the capacity to keep conflict at a reduced or minimized rate. Below are some of the problems inherent in organization:

a.           One of the problems facing organisation is the maintenance of collusion of the organisation.

b.           Lack of good management policy, when there is no effective and efficient management policy, there is bound to be grumbling among the workers, which eventually lead to conflicts.

c.           Low salary earning in an organisation.

d.           Lack of effective communication in the organisation.

e.           Lack of fulfillment of benefit equally brings about conflict in an organization.

1.4       STATEMENT OF HYPOTHESIS

Ho:   Effective conflict management has no direct impact on

Organizational performance.

Hi.     Effective conflict management has direct impact on

organizational performance.

1.5       AIMS AND OBJECTIVES OF THE STUDY

The main objectives of this study are as follows: -

a.           To determine the extent to which conflict affects job performance.

b.           To identify the conflict factors.

c.           The identification of major sources of conflicts.

d.           Determination of which factors of conflict are related to job performance (physical or mental).

e.           Recommending measure(s) for managing conflict for effective performance in an organisation.

 SIGNIFICANCE OF THE STUDY

The importance of this study is to find out various possible ways of minimizing and effectively manage conflict in order to increase organisational efficiency. Since the country is of a total system made up of sub – system such as compound and organisation, most times, conflicts do arise as a result of conflicting views between the workers and management. In actual sense, this may be due to parties looking at the same issues from different perspectives which may all be correct. There is to also study how communication can be effectively used in organisation setting, because effective communication will bring about non-distortion of goals and peaceful co-existence in the organization. Effective management in organisation will definitely increase the national benefits.

1.6       SCOPE AND LIMITATIONS OF THE STUDY

This project is concerned about how to manage conflict for effective performance in an organisation. The researcher wants to know the effect conflict has in an organisation in general and Union bank of Nigeria Plc Kaduna in particular. In the course of carrying out this research work, we had faced some limitations some of which is to strike a balance between our lecture(s) time, exam period and the time needed to visit the places required by this research work – the place of our case study included. We had also faced the constraints of getting information from our questionnaires as not everybody was willing to give us the needed attention. Finally, as students, finance was one of the major constraints considering our financial stand and the present state of the economy.

1.7       DEFINITION OF TERMS

Various management scholars have come out with their understanding about conflict and what its management is all about. Organisational conflict and its management came about in an effort to study the cordiality among people in work environment.

·                     Organisation: An organisation can be defined as a system of consciously coordinated activities or forces of two or more permanent social or human system that is structural and goal oriented.

·                     Conflict: Conflict refers to a competition and fighting for control, predominantly when resources are scarce. Traditionally, conflicts mean disagreements, contradictions or incompatibility between groups and individuals.

·                     Management: This is the art of getting things done through people. The Management process includes planning, organizing, staffing, control and directing activities that takes place in an organisation to achieve goal.

·                     egotiation: This is communication of information sharing process in which parties try to work out their real, perceived or potential difference through agreement that defines future behaviour. 

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