This research work will be centering on effective conflict management, its impact on employee’s performance, productivity as well as resolution, linking to the management and employees of the organizations. Conflict can be regarded as disagreement regarding interests or ideas (Esquivel and Kleiner, 1997). Managing the conflict appears when the objectives, goals or interests of the individuals or groups are frustrated or about to frustrate.
Conflict is an inevitable part of life since the goals of different stakeholders such as managers and staff are often incompatible (Jones et al 2000, Bagshaw, 1998). There are many reasons of organization’s growth and decline. Among these one reason is “conflict”. There is no single reason of conflict in the organizations, it may be several, depends upon the nature and size of the organization. Conflict can arise upon even on minor difference of opinion and could cause a disaster to the organization.Effective conflict management is having a great impact on employees and organization’s performance and productivity. Conflict resolving is totally managerial skill. For any organization to be effective and efficient in achieving its goals, the people in the organization need to be visionary what they deserve for. Beside this, having clear objectives for each group and individual is essential. Some time organizations are greatly struck by the problem known as “conflict”. It’s up to the organization to find ways of resolving these conflicts amongst people.All members of the organization need to find ways of minimizing such kind of situation. This could happen to any organization either public sector or private sector. Conflict is a fact of life as people compete for jobs, resources, power, acknowledgement and security. According to Wilson (2002), those people or organizations that are able to manage conflict strategically are those who have most success in their endeavor. Most of the organizations are of the opinion that conflict is having negative impact on the productivity and performance of the employees.They think that it is a laborious, focus reducer, cause of discomfort, hostility and consume a lot of time and money. However, when conflict is managed effectively and efficiently, it can also be very positive, productive and beneficial for both the organization and employees as well. The good thing about conflict is that it highlights problems and promotes change to the organization. Beside this, it often encourages shared solutions and can enhance the morale and team spirit of the organization’s practice when it is dealt with openly and promptly.At last, conflict can stimulate the creativity and innovation in the organization which is the limelight for the growth and survival in today’s competing era. LITERATURE REVIEW Conflict is a process that materializes when an individual or group perceives that another individual or group is frustrating, or about to frustrate, the attempts of the former to attain a goal (Thomson, 1992 Wall and Callister, 1995). Most of the studies have shown that conflict when managed properly and effectively could lead to the desired or targeted goals attainment.Its impact remains for longer time period. It’s up to the management that how they manage conflict. As one may speculate that the reasons, why managers are paid the heights remuneration in the organizations is to compensate for the supposed acceptance of conflict, a good part of the remuneration may be regarded as combat pay to work in an environment which can be constantly uncomfortable (Robbins, 1987). Bagshaw (1998) has pointed out that conflict is not necessarily a bad thing if properly managed. It can be creative force for the business and the individual.One conflict management theory developed by the Society of Professionals in Dispute Resolution, states that a healthy conflict management system is integrated; integration is a higher level of organization than interconnection; that conflict management system is a human subsystem within organization; that the goal of an integrated conflict management system is achieved through a typical development process that starts with assessment and inquiry, and addresses design, implementation and evaluation. In this modern era of business, conflict is a serious problem.In many cases, it wastes precious human and physical resources which could be better directed to other activities. According to survey conducted in Certified Professional Accountants (CPA) firms Singapore, practicing managers suggest that they spend more than 20 % of their time dealing with conflict or its aftermath (Thomas, in press; Thomas and Schmidt, 1976). From the above discussion, we can’t conclude that conflict is totally time wasting activity for the organization. Studies have been also shown that conflict leads to change which play the role of oxygen for the life of the organization.People in organizations conflict about vague assignments, the refusal to accept feedback, unfair distribution of work, incompatible goals, downgrading coworkers, and personalities (Berbmann and Volkema, 1989). Studies have also been shown that those organizations who are handling conflict as a tool for change and innovation are occupying better place with respect to competing organizations, who consider conflict as boring and laborious thing. Numbers of studies have been conducted for the measurement of effective conflict management and its impact on employees as well productivity and performance.Because conflict has potentially damaging consequences, it is important that managers are aware of how to manage it. Conflict situations that are disruptive or counter-productive will have to be resolved. 42% of a Manager’s time is spent addressing conflict in the workplace. (Watson, C ; Hoffman, R, Managers as Negotiators, Leadership Quarterly 7(1), 1996). “I have had CEOs and senior vice presidents tell me they can spend up to 70% of their time on conflict… ” (Taylor, Robin, Workplace tiffs boosting demand for mediators. National Post Mar. 7/03). “Over 65% of performance problems result from strained relationships between employees, not from deficits in individual employee’s skill or motivation. ” (Dana, Dan, [online]The Dana Measure of Financial Cost of Organizational Conflict, 2001)Up to 30% of a typical managers time is spent dealing with conflict. (Thomas, K and Schmidt, W. A survey of managerial interests with respect to conflict. Academy of Management Journal, June 1976. )A 1996 study demonstrated that 42% of a manager’s time is spent on conflict related negotiations. Watson, C and Hoffman, R, Managers as Negotiators, Leadership Quarterly 7 (1) 1996. ) Effective conflict management not only leads to the organization’s survival and growth but also play a vital role in employee’s productivity and performance. Which not only satisfy the employees but also motivate them in their respective activities. The key factors in conflict management is the way an organization perceive it, those who are consider it for the betterment of the organization are reaping the rewards and those who considering it as time and resources wastage are suffering from management myopia.PURPOSE OF THE STUDY This study gives essential information on the causes of conflict and its corresponding effects to the organization that will assist in the proper management of conflict. What has been presented is a general structure that describes how conflict is managed in organization. This study can be useful tool for conflict management researchers and practitioners both to understand better and predict decision modes and methods that are likely to be used by decision makers to address conflict.SCOPE OF THE STUDY In view of the time and other constraints, the report deals with different sub sectors selectively rather than comprehensively. The researcher is confident that this report will also be useful for utilizing it as a comprehensive tool for managing the conflict in the organizations. There are variety of organizations which are extremely poor in their employee’s productivity and job performance. This number has gone up as a result of poor conflict management within the organizations.To boost up the employee’s productivity and job performance, conflicts should be managed at the essence of conflict management. The study will be conducted in the Pakistani organizations. The study will also be limited to the jurisdiction of Peshawar. In conclusion, the report would like to emphasize the important role of the effective conflict management in boosting the employees’ productivity and job performance. It would provide maximum policy support by improving the institutional and implementation capacity of all the departments and organizations dealing with conflict management.That in turn will require the appointment and induction of qualified professional and policy makers in the field of conflict management. BACKGROUND OF THE STUDY The developing countries like Pakistan depend on the growth of their Industrial sector because they help a lot in the socio economic development of that country. Industrial sector is a great source of development that plays an important role in the economic growth of a country. The role of the manager in the progress of the organization is quiet significant.But sometime the management is facing a conflict in the organization, which tests the actual ability of the managers to manage it effectively. Effective conflict management has always played positive role in the achievement of the organizational objectives and employee’s productivity and job performance. At the time of independence, the areas that constitute Pakistan were producing only food grains and agriculture raw materials. There were no industries and whatever raw materials were produced being exported. After the evolution of the industrial sector inPakistan, organizations are expanding rapidly. On the one side, organizations rapid growth has rewarded much more profit to the organization, but on the other hand it created conflicts in the organizations. In this study the researcher will examine the effective conflict management and its impact on employees’ productivity and job performance. OBJECTIVES OF THE STUDY The under mentioned are the main objectives of the study: ? To know the impact of effective conflict management on employee’s performance. ? To know the impact of effective conflict management on employee’s productivity. To analyze the cause and effect relationship of effective conflict management and employee’s productivity and performance. ? To highlight the pros and cones of effective conflict management. ? To recommend the relevant information for managing the conflict effectively. LIMITATIONS OF THE STUDY The under mentioned are the limitations of the study: ? Limited excess to the all relevant data. ? Time bound of six months to complete the study. ? Lack of financial resources. ? Law and order situation in the region. ? Lack of work done already on this study. ? Other constrains. METHODOLOGY OF THE STUDYFor this study the most important task was to collect as much quality information about the problem as possible. Due to this reason, a number of techniques used to collect the required material and compile the report. The methodology, which was adopted for this research, is based on both the primary data as well as secondary data. While preparing report following data collection techniques have been used. a) Primary Data collection It was collected through i) Questionnaire ii) Personal observations b) Secondary Data collection i) Books ii) Internet iii) Newspaper iv) Journals v) Library i) Television Primary Data The first hand data, i. e. the data collected for the first time is called as primary data. The Sources of Primary Data • Personal observations. • Questionnaire For this study data was collected through questionnaire. The questionnaire contains 25 questions having both open ended and close-ended questions. It were distributed among respondents of Industrial Estate Hayatabad Peshawar. Secondary Data And the data, which is collected from other sources and already processed through mathematical and statistical techniques, are called the secondary data.The Source for Secondary Data Annual Reports • Articles by different scholars. • Relevant books • Government documents, visiting libraries. • Internet • News papers • Television SCHEME OF THE REPORT The scheme of the report is as following Chapter one includes statement of the problem and objectives of the study Chapter two consists of literature review. Chapter three describes the research methodology of the study. Chapter four describes data analysis. Chapter five is consists of findings, conclusion and recommendations. Chapter six includes bibliography.