CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

Organizations employ people who have to coordinate and work in harmony with each other in order to achieve the desired aims and objectives. Employees seek guidelines from managers as team members to establish good working relations. No doubt these people are also part of the society where conflicts are likely to occur at home as well as at their workplaces. In many cases these conflicts are obvious and unavoidable. So team members, competitors and organizations have to face conflicts while carrying out their daily operations.

Conflict occurs when there is opposition in attitude and behavior which takes place between managers and working people and also among groups. It means that people of different attitudes have to face conflicts in the professional environment. The co nflict is basically a disagreement which may arise  due to  some factors such as anger, mistrust, personality clashes and biased policies of institutions Cooperation and mutual collaboration are also important aspects required  both at work place and in daily life  of individuals  for accomplishment of  their task  to  carry out their activities in  a steady, secure  and stable environment.  But it does not  mean that we consider conflict as bad whereas cooperation as a good component because they both exist together and are part of our daily life.

Conflict is likely to occur at workplace because organization has many goals to achieve through different people and they all do not have similar thoughts and approaches. If conflict does not take place then this means that the organization does not prefer improvement, perfection, innovation  and  novelty in its operations  and  favors strict adherence  to  its  system  without  flexibility and softness resulting in an unfavorable environment created hindrance in the development and sustainability of the firm. For  managing  conflict in  an  effective  way  it  is essential  that  it  should be  identified first  and  someone has  to get  involved  to resolve  it.  Conflicts  occurring  in  an  organizational  environment  cannot  be  permanently  removed,  rather  they  require management  to  improve  the  organization’s  learning  process  and  its  activities.

During  the  process  of  conflict  management managers have to take decisions mutually beneficial for employees, firm and its stakeholders . Neskertin and Porterfield (2016)  are  of  the  view that managing and handling  conflict  increases support  of  the team  members within the organization. This ultimately affects the performance in a positive way. At workplace  it may be  difficult to completely avoid  conflicts, but what  we can do is  to manage them  effectively by recognizing them  and  providing timely  solution.  Conflicts  can  influence  the  functioning  of  the  organization  so  it  would  be  beneficial  to manage  them  as  early as  possible. So  the basic  purpose to  manage conflict  would be  to reach  the point  where organizational performance is maximized.

According  to  Opute (2014)  managers  have to  be vigilant  in the  sense that  they  come  up with  the  best possible  solution  that satisfies both  the conflicting parties.  So  that organizational performance  is not affected and  there are no  unfavor able outcomes that  may  hinder the  productivity. Chen,  Zhao,  Liu  and Wu  (2012) posit  that  learning to  manage  conflict is  an  important job requirement and  managers have the  responsibility to arrange  training sessions so  that employees  can learn skills to effectively manage conflicts. Employees become satisfied with their jobs and their performance improves with the help of various methods used to manage conflicts. Conflict  is considered  as  social  problem and  within  the  organization it  may  exist in  various  types.  It may  have  a  positive  or negative or both  type  of  effect  on the  performance  of  the organization. Pawlak (1998)  argues  that  research  on conflict, play  a significant role in all types of public and private organizations. When conflicts are not managed well within an organization then this may  adversely cause tensions, stress,  clashes and other forms  of unpleasant social strains and  disagreements.

The conflict between individuals and groups of people influence the performance of the organization negatively and unconstructively. So, it is important to study the potential causes of disagreement, divergence and collisions at workplace with a perspective to determine their impact  on  performance and  highlight the  effective strategies  to manage  such conflicts.  Therefore, aim of  this study  is  to determine  the  relationship  between  two  important  variables  known  as  conflict  management  strategies  and  organizational performance

CHAPTER ONE:

                     1.0 Introduction

1.1     Background of the Study

Commercial banks are “retail banking institutions” that accept deposits and make short-term, medium-term, and long-term credits available to government, public/private business enterprises, and individuals. Some of their functions include accepting deposit through current and savings accounts; fixed deposit and others, granting of loans and advances, equipment leasing, loan syndication; financing advisory services; trade and export finance; other investments and foreign remittances. The relationship between Commercial bank and others financial institutions in terms of functions, limits, and modus operandi are spelt out in the Bank and other financial institutions Decree 25 Banking and other financial matters decree (BOFID)of 1991. The Banking and other financial matters decree (BOFID) Decree 25 of 1991 in particular permits some other financial institutions like Merchant Bank, Development Bank and Insurance companies to engage in granting loans through mostly medium and long- term in nature.

This research work is mainly done on the management of loans and advance (short, medium-term, and long-term) granted by the Commercial bank in Nigeria. Granting of loans and advances is an integral part of the functions of the Commercial Bank but one of the most risky one. It is based on its risky nature that made it an interest of study focus in terms of its management by the commercial banks.

Filder (1982:249), states that it is a known fact that loans and advances are granted at a profit. Most loans and advances are granted out of the deposits accepted by the commercial banks or funds borrowed at a lower interest rate. The difference between the interest paid out plus share of management cost and the loan interest received makes up the profit to the commercial bank.

The success or failure of the Commercial Banks in achieving their profit objective very much depends on how well the loans and advances are managed.

An efficient lending policy will in every ramification reduce the incidence of bank distress and generally increase the wealth of the owners of the bank as a business. It will equally help in revitalizing and boosting the economic activities in the country.

According to Teriba (1990:21), a situation where the bank lending policy is weak and inadequate makes loan and advances management difficult and this result to shoot-outs of several problems in the development of the economy. Any economy with inadequate level of loan and advances, stringent lending policy and obvious huge bank bad-debts and provisions has a dull future in terms of its overall development. It is this incidence of poor management of commercial bank loan and advances in the Nigerian economy that has promoted my idea of instituting this scholarly investigation as a way to findings lasting solution to the problems.

1.2     Statement of the Problem

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The impact of staff training and development on non clinical worker’s performance in Ekiti State Teaching Hospital, Ado-Ekiti

CHAPTER ONE: INTRODUCTION

1:1 Background of the Study

Human capital can be regarded as the prime asset of an organization and businesses need to invest in that asset to ensure their survival and growth. The organization should ensure that, it obtains and retains skilled, committed and well-motivated workforce it needs. This means taking steps to assess and satisfy future people needs and to enhance and develop the inherent capacities of people- their contributions, potential and employability- by providing learning and continuous development opportunities.

Global competition has caused organizations to focus on every aspect of their operations, questioning how each function and process can contribute to strategic goals. Training departments are also under pressure to demonstrate their organizational value in the same terms Steed, (2000), this is because organizations spend a considerable time, effort and money in training their employees, but the benefits from these efforts are not clearly visible in organizations in terms of improved performance. To make training and development useful, it should be well planned and systematically implemented Rao and Nair, (1990). The capacity of staff in a firm influences the ability to achieve the desired targets particularly in performance driven enterprises. Human resource is recognized as a critical resource for success. In order to sustain performance of the organization, it is important to optimize the contribution of employees towards achievement of the aims and goals of an organization (Armstrong, 1999).

Armstrong, (2001) defines training as the formal and systematic modification of behavior through learning, which occurs as a result of education, instructions and development and planned experience. Training is the process of equipping the workforce with the necessary knowledge, skills and attitude to tackle the job responsibilities. Staff development on the other hand is improvement of the employees‘ competences for future environmental demands and adaptability. Beardwell and Hidden (1994) consider training and development as a planned process to modify attitude, knowledge or skill behavior through learning experiences to achieve effective performance in an activity or range of activities. Corporations are offering a variety of training programs to meet their organizational needs. These include content on IT and systems, processes, procedures and business practices, industry-specific trainings, managerial or supervisory training, interpersonal skills, compliance, sales, executive development, basic skills, new employee orientation, customer service and quality. As Reynolds (2004) points out, training has a complementary role to play in accelerating learning. It should be reserved for situations that justify amore directed expected approach rather than viewing it as a comprehensive and all-pervasive people development solution. He also commented that the conventional training model has a tendency to emphasize subject –specific knowledge rather than trying to build core learning abilities.

Development is a long term education process utilizing a systematic and organized procedure by which managerial personnel learn conceptual and theoretical knowledge for general purpose. According to Campbell (1971) development implies an individual

growth and self-realization in a brand base. Cole (1990) suggests a broader view of knowledge and skills acquisition training. He suggests that he is more concerned with employee potential than immediate skills and views employees as adaptable resource aiming at personal growth and realization of potential of an employee. Armstrong (2001) indicates individual development is the progression by individuals in their career with guidance encouragement and help from the manager.

Training and Development improves the workforce competence in order to create a competitive advantage and contribute to organizational success. Training and development is also a means for employers to address the employees‘ needs. By offering the training and development opportunities employers help employees develop their own competitive advantage and ensure long term employability, Jackson (2008). Development implies it is an ongoing process and that progress is made over time and this fits also with the emphasis on long life learning.

Holton (1995) defines performances a multi-dimensional construct, the measurement of which varies depending on variety of factors. Armstrong (2000) on the other hand indicates performance as both behavior and results and emphasizes that both behavior (input) and results (output) need to be considered when managing performance. Performance of an organization is the outcome of acrostic of individuals and units of the organization. Except for the external influences on individual behavior and personal traits, organizations can either influence or control all factors affecting performance of

individuals and units through formal and informal means. Greater influence of individuals can be exercised formally through communication; work culture and management style Kasturi (2006).

Employee performance involves all aspects which directly or indirectly affect and relate to the work of the employees. Performance means both behavior and results. Behavior emanates from the performer and transforms performance from abstraction to action. Not just the instruments for results, behaviors are also outcomes in their own right-the product of mental and physical effort applied to tasks-and can be judged apart from results Brumbranch (1998). Within high performance work systems, training will be aligned and integrated with actual work. Employees need training in group dynamics and interpersonal relations, and in systems thinking to understand better how all parts of their organization fit together and affect each other. Trainers play a key role in providing feedback on employees‘