The functional conflicts in an Organisation Essay

The term ‘conflict ‘ has grown to go a really imperative word in Organisations and in mundane human life. Thomas ( 1976 ) proclaimed that struggle has become a popular direction subject. This statement is further strengthened with the sum of research carried out on the capable affair every bit good as books, articles and diaries published on struggle.Conflict refers to events runing from interior convulsion produced by viing demands or desires to open force between full societies ( Greenberg & A ; Baron 1995 ) . Conflict is that procedure that begins when one party has negatively affected, or is about to negatively impact something the first party attentions about ( Buchanan & A ; Huczynski 2007 ) .Conflict in the administration is defined as the open battle between 2 or more people or groups in an administration.

It is normally centered on a province or status that favours an person over the other or a group over the other ( Hatch 1997 ) .Oceanic Bank Int’l ( OBI ) stands out amongst our Bankss in Nigeria because of its first-class service bringing civilization and that, has earned the bank a top 5 overall ranking in the Nigerian Banking industry. Conflict between Marketing and Operations & A ; Service sections is a common phenomenon in the Nigerian banking industry.This analysis will look at the position of assorted theoreticians on struggle and associate the Functional Theory to the OBI experience.

In depicting the OBI experience, we will analyze the “ HAND ” of direction and show how functional struggle in OBI resulted in originative job work outing following proper direction and increased invention to seek solution to jobs. Furthermore, the analysis really will demo that struggle in the administration is positive and can be used to better on service bringing, relationship direction and finally organizational ends ( Feldman & A ; Arnold 1983 ) . Conclusively, accent on execution and monitoring of Functional struggle will be suggested.


Positions and Theories

Theorists all over, have different positions on struggle. There is a school of idea that views it as Dysfunctional ; stating that it is negative in the Organisation and a mark of uncomplete societal construction.

They propose that taskforces, commissions and affair functions are ways to pull off and react to conflict in the organisation ( Hatch 1997 ) .Another group of theorist position struggle as impersonal, stating that it is negative to organisational ends but it is nevertheless inevitable and that it is a portion of the organisation. Pondy ( 1967 ) , says that struggle as impersonal may be regarded as negative and dysfunctional but as a impersonal status, it ‘s ineluctable and should be accepted.A more recent set of theoreticians view struggle as Functional and that it supports organizational ends and aims.

This position was promoted by the realization that struggle can excite invention and adaptability in the Organization. This position of struggle challenged the premise that administrations are or should be co-operative systems ( Hatch 1997 ) . This theory of Functional struggle can be traced to Chester Barnard.

Merits and Demerit

Conflict in the Organization could devolve and impact how the conflicting groups or persons relate, perceive and behave towards each other. It can bring on a win-lose orientation ( Filley 1997 ; Mac Callun et all 1985 ) . This Win-Lose orientation can de-motivate employees and of class affect public presentation. Rifts between employees or sections within an administration if non quickly or decently managed could besides take to loss of quality employees.

The negative effects may interpret to hapless public presentation of the organisation.Though struggle has several demerits including de-motivation and employee turnover, if decently managed, can assist make arousal among employees, stimulate and mobilise them to go more cognizant of their occupation maps and outlooks from direction. It can besides assist addition and develop advanced solution.

Hall ( 1971 ) suggests that when decently managed, struggle may non merely increase the invention to seek solution to jobs, it can frequently ensue in more originative solutions to job work outing. It is in such state of affairss that struggle will be viewed as Functional.The turning complexness in Organisations has provided increased empirical support for a positive relationship between struggle and group public presentation ( Bourgeois 1980 ) , organizational acquisition ( Fiol 1994 ) and high quality determination devising in the Organization ( Schwenk and Valacich 1994 ) .The competitory orientation that comes with Functional struggle can establish an employee audit system, addition in productiveness and quality of end product and client satisfaction as can be seen in my experience working with OBI in Lagos, Nigeria.


Service Quality Gaps – Obeah is one of top 5 Bankss in Nigeria with a strong trade name name that is based on its first-class service bringing civilization and prompt response to client petition. Over the old ages, the really factors that built the strong trade name name were on the diminution. Service and Operations section with the back-end duty of presenting prompt service and pleasing the client and Marketing section with the duty of pull offing the relationship between clients and the bank every bit good as reacting to client petitions quickly, both lost focal point and developing a casual attitude towards their occupation maps.

They believed that the strong trade name name of the Organisation would continually pull the clients irrespective of the quality of service and the kind of relationship that existed between the administration and the clients.There were legion ailments from clients surrounding on basic service issues and relationship spreads ; the prompt check verification procedure had been ignored, and relationship officers had become excessively lazy to upload clients ‘ verification online for hard currency officers to see bank-wide, a necessity for cheque payment. This resulted in clients holding to waiting up to 30 proceedingss or more to acquire their 3rd party checks paid, even when the history holder had called in progress to corroborate such checks to the relationship officers. There were besides instances in which the relationship officers had uploaded the clients ‘ check verification online as is required but instead than the service officer look into the online authorization, but decided to name the relationship officer who could non be reached because he was in a meeting ; this once more resulted in delayed payment to the client.

A 3rd scenario besides experienced were clients ‘ inability to run their histories because they had non been issued cheque books 4 hebdomads after history gap and fulfilment of all demands. The service and relationship issues were infinite and the consequence, dissatisfied clients.Resultant Conflict – While relationship officers took the flack catcher for the oversights of the operations section for failure to supply back-end support, the hard currency officers besides took the flack catcher for the laxness of relationship officers. This resulted in rifts between both sections ; an illustration of ( Buchanan & A ; Huczynski 2007 ) definition of struggle in ( 1 ) above.

Consequence on Corporate Performance – Organizational ends were non being met, the net income had significantly declined following a diminution in concern volume as defeated clients had moved to competition.The “ HAND ” of Management – Following the stimulation of struggle and its end point dwindling fiscal consequences, direction came up with several policies to realine the focal point of employees toward first-class client service and reliable relationship direction. The constabularies included bettering the service clip allocated to a dealing ; completion of service excellence signifiers by clients after each dealing in the banking hall ; day-to-day relationship studies used to track selling staff and their relationship with clients.The most important and most effectual scheme was the usage of employees to measure employees in their assorted units every bit good as outside their units.

Employees were made to intensify to the highest degree, service and relationship spreads noticed in the class of service to the client. If an employee had to present quality service to a client, and encountered challenges due to the carelessness or irresponsibleness of another employee, irrespective of the section of the employee involved, the mistaking employee was immediately reported to the undertaking force and immediate action was taken against that employee.This policy was really efficaciously managed, monitored and the unity of this studies and escalations were really good verified. The policy was precedence to direction and this was emphasised when an executive manager was drafted to head the undertaking force. He got a daily caputs up on the activities of the taskforce and he reported straight and made recommendations as respects disciplinary steps to the CEO.The consequence and so benefits of this stirred Functional struggle led to an astronomical addition in the volume of concern ; the feedback from clients on relationship direction was so really hearty and the net income border grew vastly. The organisation began to accomplish its general ends one time once more, and direction was happy with the positive consequences


This reappraisal tried to capture how existing struggle can go Functional coercing administrations to innovatively seek solutions to jobs taking to a encouragement in public presentation through improved client service, net income and accomplishment of organisational ends utilizing Oceanic Bank Int’l Plc as mention. It besides showed that Functional struggle required proper and effectual execution and monitoring to accomplish desired consequence. The usage of a taskforce, intra and inter-departmental assessments and client feedback mechanism worked good for OBI.Though struggle may be with negative effects as opined by Hatch ( 1997 ) and Pondy ( 1967 ) , direction can do it favorable by originating competition. Service flat understandings should be agreed between sections with KPIs to which wagess and punishments are attached. SLAs should besides cover escalations and to what degrees.

Beyond studies from clients, intra and inter-departmental assessments and enigma shoppers can besides be introduced as portion of the feedback mechanism.