EVALUATING CONFLICT MANAGEMENT STYLES AND ORGANIZATIONAL COHESION IN SMEs

 

CHAPTER ONE

INTRODUCTION

Background to the Study

Conflict is a state of disagreement or diversion of viewpoints (Ehie, 2010). Whenever, people feel their interests being compromised because of opposing standpoints of others results in conflict (Pondy 1967: Wall &Callister, 1995). Conflict management is the process of limiting the negative aspects of conflict while increasing the positive aspects of conflict. Whether relationship based or task based, conflicts are inevitable and in a way indispensable towards organizational growth, since they ensure creative stimulation and innovativeness. Devoid of conflict, organizational life indicates stagnation and status quo (Ozkalp, Sungur&Ozdemir, 2009). However, the presence of conflicts brings miscommunication, stress and tension among organizational members (Cheung &Chuah, 1999: Hackman & Morris, 1975: Wall &Callister, 1995) and thus better be avoided (Reynecke, 1997). Conflict resolution involves the reduction, elimination, or termination of all forms and types of conflict. Five styles for conflict management as identified by Thomas and Kilmann are: Competing, Compromising, Collaborating, Avoiding, and Accommodating. (Technical Brief for the Thomas-Kilmann Conflict Mode, CPP Research Department, 2007).Conflict management minimizes the negative outcomes of conflict and promotes the positive outcomes of conflict with the goal of improving learning in an organization. (Rahim, 2002).

In personal and social life, conflict is quite natural and in social organizations a degree of conflict always exists among different employees with different statues. Therefore, conflict is inevitable. Organizations with their diverse nature can create a setting for conflicts and disagreements. Presence of different individuals with different personal peculiarities, needs, beliefs and expectations have made conflict something predictable. Conflict is a part of organizational life that has attracted managers’ attention to some extent that discussion about conflict is one of principal debates on organizational behavior and theory. Conflict is one of factors contributes to waste of energy and employees’ capabilities. Since, instead of a proper combination of production elements with human resources and moving toward organization’s objectives and effectiveness, they dissipate human and financial resources. This with regard to the competitive world today which requires economic and highly qualified productions is less desired by organizations. To enjoy from their maximum physical, mental and intellectual power, organizations need to remove interfering and disturbing factors. However, conflict often would not be a damaging element and it’s a wrong idea that when conflict happens must be disappeared immediately. In fact, a proper level of conflict has to be established. As a rule of thumb, severe conflict could be useless but an apt level of it can lead to increase of employees and organization effectiveness. Additionally, no conflict in an organization will be in state of stagnation and individuals become de-motivated toward their work and consequently job satisfaction and organizational effectiveness decrease as well. If managers can find an appropriate solution to deal with conflict, instead of removing it, they can develop job satisfaction and organization effectiveness, guarantee organization achievement and finally increase confidence, trust and job satisfaction of employees. It should be also mentioned that it is not the conflict itself that may cause disintegration and disorder in organizations but it is ineffective management that brings disfavored results. Thus, one of important issues about these organizations relates to how conflict must be managed and resolved.

1.2 Statement of Research Problem

Since small and medium scale enterprises (SMEs) are social systems whose processes are mostly governed by humans and teamwork, it seems that they experience more tension and conflict in comparison to ant other social system. That is because they maintain revenues, assets or a number of employees below a certain threshold. They outnumber large firms considerably, employ vast numbers of people and are generally entrepreneurial in nature, helping to shape innovation. Therefore, conflict and disagreement is inevitably and constantly present in every SMEs. For effectiveness and efficiency of small and medium scale enterprises  as an organization, it is important how such conflicts are managed or resolved (Soleimani, 2005).

An organization’s growth depends on the way it confronts the conflicts. The absence of any conflict does not necessarily provide the best condition for survival. The decision-making regarding a conflict can be either destructive or constructive. The constructive way can help see the situation from different angels, whereas the destructive way can actually lead to loss and damage. Therefore, conflict management is the most important requirement for the organization’s growth. In fact, the presence of conflict is justifiable and it is a positive indicator of organizational health (Antonioni, 1998). Olcum and Hacifazlioglu (2004) reveal that if the conflict is accurately and actively managed, it becomes one of the most important instruments for organizational growth. Rahim et al. (2002) define conflict as an interactive process which results in incompatibility, disagreement and difference between different social entities (Serivasan, 2005). Hence, successful implementation of methods and techniques of management.

1.3 Objectives of the Study

The major objective of this study is to examine the influence of conflict management strategies on small and medium scale enterprises (SMEs) in Jimeta-Yola. Specifically, the objectives of the study include:

1) To examine forcing as a style of conflict management in organization cohesion

2) To examine cooperation as a style of conflict management in organization cohesion

3) To examine compromising as a style of conflict management in organization cohesion

4) To examine avoiding as a style of conflict management in organization cohesion

5) To examine accommodating as a style of conflict management in organization cohesion

1.4 Research Questions

The following are the research questions;

 1) What is the extent of relationship between conflict and organizational performance? 

2) What is the extent of relationship between management style and organizational performance? 

1.5 Significance of the Study

This study will add to the body of knowledge by enlightening small and mid –size enterprises (SMEs) in Jimeta-Yola on how they can cope with conflict, so as to enable them perform as expected in their various businesses. Furthermore, this study would also help to further research and add to knowledge build-up in the general build up of small and mid –size enterprises (SMEs) in the future. Again, from this study, small and medium scale enterprises (SMEs ) would be able to device exemplary means of ensuring excellent performance even with the occurrence of an industrial action. Policy makers may also find the outcome of the study useful for future planning. This study will be significant to the academia, policymakers/ government and will also add value to the existing works of literature on small and medium enterprises in Nigeria. The work could also be valuable for consultations and recommendations to various stakeholders, like government at all levels, non-governmental organizations (NGOs), promoters of SMEs, ministries, departments and agencies, investors, banks and financiers.

1.6 Scope of the Study

The scope of this study is limited to the relationship between conflict management styles and organizational cohesion which in turn affects performance in small and medium scale enterprises (SMEs ) in Jimeta-Yola, Adamawa state . 

1.7 Definition of the Terms

Conflict: Conflict is defined as a clash between individuals arising out of a difference in thought process, attitudes, understanding, interests, requirements and even sometimes perceptions. 

Conflict Resolution: Conflict Resolution refers to putting an end to the conflict. It is a means of finding a solution to a disagreement, argument and opposition

Conflict Management: Conflict management is the practice of being able to identify and handle conflicts sensibly, fairly, and efficiently.

Organization Performance: Organizational performance involves analyzing a company’s performance against its objectives and goals. In other words, organizational performance comprises real results or outputs compared with intended outputs. 

Employee: A person who works in the service of another (the employer) subject to a contract for hire, where the employer controls the conditions of work performance.

Small and Medium-Sized Enterprises (SMES): Small and medium-sized enterprises (SMEs) are non-subsidiary, independent firms which employ fewer than a given number of employees. This number varies across countries. The most frequent upper limit designating an SME is 250 employees, as in the European Union. However, some countries set the limit at 200 employees, while the United States considers SMEs to include firms with fewer than 500 employees

Management Styles: Management style is the manner in which an organization manages its employees and their work activities and will vary depending upon factors such as the characteristics of employees, the work activities engaged in, and the culture of the organization.