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THE IMPACT OF CONFLICT MANAGEMENT ON PROFITABILITY IN A CORPORATE ORGANIZATION

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CHAPTER ONE 

INTRODUCTION 

1.1   BACKGROUND TO THE STUDY 

In every organization whether corporate or formal, conflict must definitely arise in the course of carrying out their various functions. In order for the organization to achieve its goals, it need to inter – relate with the various department/individuals in it. As a result of the inter – relationship and inter – department of the various units and individuals in an organization, there are bound to be conflicts. Conflicts, which is a serious disagreement/differences in goals, opinion, ideas, wishes, aims, perspectives, objectives, wants and profitability is found among or within a group in a co – operate organization. This conflict can either enhance profitability or not on the co – operate organization which can be functional or dysfunctional in nature. Functional conflict accelerate the organizational performance, in that it is an instrument for change and cohesiveness. While dysfunctional conflict are conflict that binds the achieveness of the organizational goals. Most managers have different views about conflicts. While some tends to eliminate both types of conflict, others encourage only functional conflicts and try to eliminate dysfunctional conflicts. For co – operate organization to function effectively and efficiently inter – related and inter – dependent departments/employees within the organization must find a way to resolve conflicts. Due to the assertion that “conflicts are inevitable in every organization”, couple with the effects that are in it if not carefully handled.

The researcher was inspired to investigate thoroughly the impact of conflict management on profitability in a co – operate organization with particular reference to First Bank of Nigeria Plc as a case study, in other to ascertain the validity of the aforementioned exertion. First Bank of Nigeria Plc Fort over century has distinguished itself as a leading financial institution and a major contribution to the economic advancement and development of Nigeria. The bank was incorporated as a limited company in 1894 Head office in Liverpool by sir Alfred Jones, a shipping magnate. The bank recorded an impressive growth and worked closely with the colonial government in performing the traditional functions of a central bank, such as issue of specie in the West  Africa sub – region. To justify its West Africa coverage, a branch was opened in Accra, Ghana in 1896 and another in Freetown, Sierra Leon in 1898.

These marked the genesis of the Bank’s international banking operation. The second branch of the Bank in Nigeria was in the old Calabar in 1900 and two years later, services were extended to Northern Nigeria. To reposition and take advantage of opportunities in the changing environment, the Bank had at various times embarked on restricting intiatives. In 1957, it changed its name from Bank of British West African. In 1969, the Bank was incorporated locally as the standard Bank of Nigeria limited in line with the companies Decree of 1968. Changes in the name of the Bank also occurred 1979 and 1991, to First Bank of Nigeria limited and First Bank of Nigeria Plc., respectively. First Bank got listed on the Nigeria Stock Exchange (NSE) in 1991 and has won the NSE president’s merit award eleven times for the best financial report in banking sector.

1.2   STATEMENT OF THE PROBLEM

In recent times, there has been high rates of conflict on profitability in a corporate organization. The high rate of conflict on profitability in a corporate organization may be due to a number of factors such as change in limited resources, organizational structure, difference in perception, low productivity, poor human relations between management and workers, anti – union posture of management, poor government economic and industrial policies etc. This high rate of conflict management on profitability in a corporate organization will affect the organizational growth if not carefully handled. The problems to be fully addressed in what the management must do in the area of conflict or profitability to ensure that they improve quality of service, reduce incidence of conflicts, less wastage in time and resource usage etc. so as to be able to achieve their objectives and set goals.

1.3     PURPOSE OF THE STUDY The purpose of this study are:- 

1. To identify the cause of such conflict or disagreement on profitability in a corporate organization.

2. To find out if there is relationship between conflict management and profitability in a corporate organization.

3. To find out if there is any effect of such organizational conflict on profitability in a corporate organization.

1.4     RESEARCH QUESTINONS 

1. What are likely to be the cause of conflict in a corporate organization?

2. What is the relationship between conflict management and profitability?

3. Does management has a role to play in conflict management?

1.5   RESEARCH HYPOTHESIS 

Ho: There are no causes of conflict in a corporate organization

Hi: There are causes of conflict in a corporate organization

Ho: There is no significant relationship between conflict management and profitability

Hi: There is significant relationship between conflict management and profitability

Ho: There is no role to be played by management on conflict management

Hi: There is role to be played by management on conflict management

1.6   SCOPE AND LIMITAATION OF THE STUDY. 

SCOPE OF THE STUDY

This project work is based on “THE IMPACT OF CONFLICT MANAGEMENT ON PROFITABILITY IN A CORPORATE ORGANIZATION”. The researcher restrict his work to First Bank Nigeria Plc., Agbor Branch Delta State.

LIMITATION OF THE STUDY

The following posed a problem in the course of the study:

TIME: The time allocated for the study was short due to much academic activities which the researcher was involved in.

FINANCE: The limited available resources available to the researcher proved problematic. Funds was only provided by the researcher.

LITERATURE: The review of related literature was limited books, journals and other materials obtained in libraries in Delta State as a result of the constraints mentioned above.

DATA COLLECTION: This was the most difficult problem encountered in the study. As a result of staff’s inability to obtain attention, there was difficulties in obtaining the required data in the area of conflict management on profitability. Even when little attention was obtained, there were complaints that the question asked were the type treated with utmost secrecy due to Nigeria banking environment. The respondents also complained of the time to answer the questions because of pressing office work.

1.7   SIGNIFICANCE OF THE STUDY 

It is important to point that on completion of this project work by the researcher, it would be of immense significance of the following:

1. Researcher: The output of this work serve as a base for literature review for researchers in further on related or similar topic.

2. First Bank of Nigeria: Work cohesiveness and good relationship should be achievable of the management appraise the findings and recommendations of this research work.

3. This research work will help to demonstrate that functional conflicts can be resolved and converted to accelerate the efficiency and effectiveness of the organization.

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