Full Project – THE IMPACT OF CONFLICT MANAGEMENT ON PROFITABILITY IN A CORPORATE ORGANIZATION
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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF 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.
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