Assignment on

Industrial disputes and its impacts on

organizational performance

Submitted to: Mohammad Rezaur Rahman

Assistant professor,
Department of Business Administration
Dhaka International University

Submitted by: Nayon chandra mondal

RMBA-45B,Roll-14
Department of Business Administration
Dhaka International University
Introduction:
The rationale of the research was to find out that various types of conflict whether emotional or
task related, had any impact on performance of the employee or not. According to the
assumption of the research both the dimensions of conflict (task and emotional) not only had
made a significant impact on performance of the employee working in the organization directly
but also made a variation in the performance level through the other consequences of conflict
that were lower organizational commitment, lower job satisfaction, increase turnover intension.
The purpose of the research was although conflict was an unavoidable state in every
organization, the presence was not always non productive. Existence of Conflict among
employees in any organization could also be functional and beneficial for the employees and the
organization. The higher level of conflict among employees could show negativity in the
organizational commitment of the employees but also in the job satisfaction of the employees
working in the organization. The lower level of these two variables could increase turnover
intension among employees working in an organization. As a result increase of conflict whether
emotional or task related came up with various outcomes such as low organizational
commitment, low job satisfaction, increase turnover intension and all the outcomes could made
an impact on performance.
LITERATURE REVIEW
Organization-conflict can be resolved if the reason thereof can be recognized and find
resolution that please all the parties involved. The management or handling of the origin
(causes) is the only effective way to ensure that conflict will not develop again guided in such a
way that is beneficial to both the disputants and the organization. To manage it effectively
managers should understand the many sources of conflict.
Commencing the literature review through it turn into evident that the aspects researched on
managing conflict infrequently reflected on public sector organizations. Research done by
subsequent authors concentrated on different aspects of conflict that are relevant to larger
private sector organizations or groups from tertian, public sector, financial institutions and
others . While conflict is an optimal level, satisfaction and apathy should minimized,
motivation enhanced through the creation of a challenging and surprised environment with
strength that makes work interesting.
Different methods have to manage organizational conflict. The study aim to
characterization of the types of organizational conflicts and to identify such conflicts more
useful which are more harmful to the organization. It found that increase the degree of
satisfaction of the employees on the use of style confrontation in resolving personal conflicts
existing between them, a greater degree of satisfaction with the use of other methods.
The methods used in the management of organizational conflict such as, the settlement,
competition, cooperation, courtesy, and avoidance in government departments in the provinces
of the south. This study aim to determine the parameters forms of organizational conflict,
methods of management and strategies of organizational conflict management applied within
organizations. The conclusion show that, some of the tools that they can contribute to
organizational conflict management, as can achieve the highest rates of job satisfaction in
government agencies service. It found that there is a relationship framework responsive
between role conflict and task due to the large number of business or for different performance
expectations.
The study also found that conflicts between the groups and different sections these
methods teamwork, increase the resources of the disputed, and the development of standards of
fair promotions.
Rational of the study:
In Bangladesh, however, not much study has been undertaken on the impact of conflict in
workplace – particularly on employees’ performance. Nor is there a resolution mechanism in
place for handling of conflict situations in a proficient and effective manner. This may put the
organizations in a vulnerable position with the risk of major escalation of conflicts that can be
potentially harmful for both the organization and its employees. It can also lead to a downslide
in staff efficiency which is detrimental for any organization. It is therefore a humble endeavour
to select this timely.

Problem Statement:
There was a great impact of conflict among employees on their performance or came to be a
cause in the compromise of professional standards. The purpose of the research was that how
emotional and task conflict effect performance of employees directly and indirectly through the
dysfunctional consequences of conflict such as lower organizational commitment, lower job
satisfaction and increase turnover intension.

Hypotheses:
H1: Increase of emotional conflict was supposed to decrease performance.

H2: Increase of task conflict was supposed to increase performance.

H3: Higher level of conflict was supposed to lower organization commitment.

H4: High level of conflict was supposed to lower job satisfaction.

H5: Lower level of organization commitment was supposed to higher turnover intension

H6: Lower level of job satisfaction was supposed to higher turnover intension

H7: Higher turnover intension was supposed to lower performance.

H8: Lower organizational commitment was supposed to lower performance.

H9: Lower job satisfaction was supposed to lower performance.

Problem Statement:
According to the common view most people are
uncomfortable with conflict; however, conflict has
both positive and negative impact on employees’
performance. Conflict can lead to organization’s
less than optimal performance, or, in the worst case,
lead to workplace violent behavior. Surprisingly, a
moderate amount of conflict can actually be a
healthy (and necessary) part of organization life.
Distinguishing the effects of functional and
dysfunctional conflict on strategic decision, If
anyone needs to understand its root causes,
consequences, and tools to help managing it. The
impact of too much or too little conflict can disrupt
performance. The goal is to hold conflict levels in
the middle of this range. While it might seem
strange to want a particular level of conflict, a
medium level of task-related conflict is often
viewed as optimal, because it represents a situation
in which a healthy debate of ideas takes place .In
InvertedUrelationshipbe performance and conflict
other words, there should be a balance and conflict
resolution mechanism in place so as to maintain the
optimal level of performance and efficiency.
Inverter U relationship is showed in figure .
In the workplace, conflict and implementation of conflict management substantially influence
individual, group, and organizational effectiveness. At the individual level, one key
consistency across various theories has been the distinction of whether or not conflict is
managed in an agreeable and cooperative or disagreeable and competitive manner .At the small
group level, researchers have also highlighted this distinction between cooperative versus
competitive styles of conflict management .
In previous studies about the effect of different conflict management styles on work
effectiveness at the group level, researchers have suggested that a dominant conflict
management culture is unlikely to relate positively to team functioning and team
effectiveness .Findings in research on workplaces characterized by an avoidant management
conflict culture have been mixed. On the one hand, because group members do not discuss
differences of opinion for fear of disrupting group harmony, they also avoid discussions needed
to generate creative ideas and proactively develop solutions to critical problems found that
when there is an avoidant conflict management culture, this increases the levels of both team
functioning and team effectiveness. In contrast to both the dominant and avoidant conflict
management cultures, a collaborative conflict management culture is consistently associated
with positive workplace performance and group level outcomes.
Previous researchers have not covered thoroughly the impact of the conflict management
culture in the workplace on individual level outcomes such as employee performance, more
specifically in private commercial banks. Employee performance is one of the most important
and significant factors in the achievement of organizational goal. Greater performance has been
identified as being associated with a more positive attitude towards the job and with positive
workplace outcomes such as increased organization commitment and decreased employee
turnover rate.

Definitions:
Conflict:
The concept of conflict was a social phenomenon, where there was a disagreement between two
groups or individuals who had different opinion, conflict was a state of opposition between
persons, ideas, or interests. Existence of conflict was due to the reason of insufficiency of
resources, policy differences, stress, perceived or actual opposition of needs, values and interest;
it was due to tension, hostility and anxiety among the members of any organization. Another
reason for the cause of conflicts was that the perception and awareness of any conflict full
situation by the employee. Conflict was a struggle to resist or overcome. There was a painful
tension which was set up by the various clashes between opposed impulses. There was a feeling
of antagonism between the opposed members.

Task Conflict:
Task conflict was a condition where employees of the organization differed about task issues that
included objectives, aims of the organization, important decision areas, procedures, ideas,
appropriate choice for action in any organization among employees. Task conflict was due to the
reason that every individual had different role. Task conflict which was the conflict due to
disagreements in the procedures, ways to use equipments, diagnoses a patient. Hence task
conflict was due to the arguments in the roles or functions in the organization .
Emotional Conflict:
Emotional conflict was a clash due to personnel issue, which involved hatred, frustration among
the employees in the hospital. Emotional conflict was a state in which employees of the
organization had interpersonal clashes, which were characterized by irritation, aggravation,
jealousy, hatred, distrust, and other negative feelings in the organization .Affective or Emotional
conflict was the perception among groups that there were interpersonal clashes characterized by
anger, distrust, fear, frustration, and other form of negative effect. Affective conflict was
described as a state due to hostility, frustration, non-work related communication could be either
a positive, friendly interaction or a frustrating , hostile interaction demonstrated that emotional
conflict impairs the decision making quality of the employees, making an impact on their
performance.

Organizational Commitment:
Organizational commitment was defined as a feeling of trust and confidence in organizational
objective, purposes and values .It was a feeling of loyalty and sincerity towards the organization.
It was a state where there was firm aspiration of the employee to maintain association in the
organization. Committed employees were characterized as loyal, productive members of work
organizations who not only recognized the vision and goals of the organizational and but also
identified the principles of organization. Organizational Commitment to the organization was
defined as an attitudinal variable characterized by an enduring psychological attachment of the
employee to the organization. Further concluded that the different levels of organizational
commitment of an employee could be different from other employee’s level as the tendency of
being committed to the organization was different in every employee. The attractive
opportunities and alternatives that was available to the employees caused the difference in their
commitment level to the organization

Job Satisfaction:
Job satisfaction was the variable used to explain whether employees were happy, pleased and
contented with their jobs. It stated that job satisfaction was a variable that was found as a
evaluative judgment as job satisfaction could be measured by comparison of the employees job
to his or her needs, wants or expectations. Job satisfaction explained the ease, affirmative
emotions, comfort, contentment, pleasure of the employee at the workplace he/ she was working
in. Job satisfaction was defined as the approach of physiotherapists toward the organization, their
job, job environment, culture in the organization, achievements from the organization. A positive
attitude of the employees towards the organization indicated their job satisfaction and vice versa.
Job satisfaction explained the ease level, positive emotions, comfort, happiness, pleasure at the
organization in which he/ she was working. The reason of job satisfaction could vary from
individual to individual.

Turnover Intension:
Turn over intention was the best predictor of whether an employee would leave the organization
and job satisfaction was one of the major factors affecting an individual’s decision It was
described as the propensity to leave the organization; it was a behavioral intension that preceded
actual turnover .Propensity to leave was explained as predictor to turnover. Turnover intension
was a variable that linked with various work related outcomes such as job satisfaction,
performance, pay, pay satisfaction. It concluded that the propensity to leave the organization of
an employee is linked with diminished performance of the employee when profit of the
organization and customer satisfaction is considered. Turnover intension was a variable that was
found to be adverse for the organization .

Performance:
Performance in any organization had a multifaceted and a complex nature related to a
predetermined set of expectations. Organizational performance could similarly be evaluated by
comparing the performance profitability and achievement of various organizations in specific
measurable areas or evaluation of the organization performance by predetermined set of
expectations. Organizational effectiveness was likely to be characterized in terms of the
attainment of specified goals such as financial or productivity outcomes and the satisfaction of
strategic constituencies such as owners, shareholders, customers, suppliers and creditors.

Conflict among Employees:

It was observed that several researches were done on conflict among the employees in the
organization. Conflict was a phenomenon that occurred whenever disagreements existed in a
social situation over issues of substance or whenever emotional antagonisms created frictions
between individual and groups. It was always important to recognize the situations that had the
potential for conflict to avoid the adverse impact that happened due to the existence of conflict.
Conflict in any organization reflected the environment and culture of the organization. Conflict
was a social phenomenon that was unpredictable and also unavoidable; it appeared to be as a
clash, argument, disagreement between two individuals, teams and groups. Conflict reflected
opposition and difference in point of views, opinions, school of thought ideas and interests of
individuals or groups working in the organization. Conflict was a dynamic process where
sometimes the employees were even unaware of the starting point of the conflict situation, the
members of the organization involved in the dispute showed various traits of conflicting
behavior in which there was a lot of discomfort, unfriendly attitude, disagreements, arguments
related to the job, jealousy, hatred, frustration and unwillingness to work together in an
organization. Another reason of the existence of conflict was opposition and variation in values,
needs among the employees that could trigger anxiety and stress leading to further disturbance
among them. During conflict there was a feeling of antagonism, aggression and rivalry among
the employees who were involved in this phenomenon. Conflict was a social phenomenon which
had several dimensions that became cause for psychological behavior, emotional or sentimental
attitude, behavior or attitude depending on conditions. The three most important dimensions of
conflict were attitudes of conflict, where the approaches, outlook, feelings, and mind-sets of the
individuals in conflict were involved. Second dimension was the conflict situation in which the
two opposed groups or individuals were involved. It showed the condition and state of conflict
between the individuals. Third dimension was conflict behavior that was about consequent
actions, activities, change in performance, dealings with the opposed group or individual.
Conflict among two opposed individuals was not just behavior or actions that were said to be the
consequences of the conflict full situation, whereas it also dealt with perception, different
thinking, disagreements, arguments, it was related to emotional issues or task related issues.The
conflict in the employees further leaded to some functional and dysfunctional work related
outcomes. In order to conduct the research some of the famous hospitals were chosen, specially
where physiotherapy was done.

Direct Impact of the two dimensions of Conflict:

According to the research of conflict had certain consequences related to performance directly as
conflict had several dimensions, the two important and significant dimensions discussed in the
study were emotional conflict which was a clash due to personnel issue, which involved hatred,
frustration among the employees in the hospital. Emotional conflict was a state in which
employees of the organization had interpersonal clashes, which were characterized by irritation,
aggravation, jealousy, hatred, distrust, and other negative feelings in the organization .Affective
or Emotional conflict was the perception among groups that there were interpersonal clashes
characterized by anger, distrust, fear, frustration, and other form of negative effect. Due to
anxiety, a feeling when present in employees characterized the emotional conflict, made them
not to consider the solutions and views of each other when certain problems has to be solved in
the organization .Affective conflict was described as a state due to hostility, frustration; non-
work related communication could either a positive, friendly interaction or a frustrating, hostile
interaction .Second dimension was Task conflict which was the conflict due to disagreements in
the procedures, ways to use equipments and diagnose a patient. Hence task conflict was due to
the arguments in their roles or functions. Task conflict was a condition where employees of the
organization differed about task issues that includes objectives, aims of the organization,
important decision areas , procedures, ideas and appropriate choice for action in any organization
among employees. Task conflict was due to the reason that every individual had different role in
the organization. It concluded that substantive conflict or task related conflict among employees
was defined as an opposition between the employees that was intellectual and logical for the
organization. Both the two dimensions of conflict had some impact on the productivity and profit
of the organization it affected the performance of the employee.

Task conflict which was generated by the disagreements in task related issues was supposed to
improve the performance of the employees as the substantial conflict allowed group members to
come up with new ideas, it made the employees to think in a new direction. Due to the
arguments, the employees heard each other’s point of views, the individuals came up with new
solutions of their problems .It concluded that the employees in an organization are too much
anxious about how to preserve synchronization and harmony, they would fail to criticize each
others point of view which is not healthy for the organization. Whereas Emotional conflict
among employees in the organization was supposed to diminish and decrease the performance
.Emotional conflict among the employees in an organization gave negative and unfavorable
consequences of performance.

Indirect Impact of Conflict through its consequences on Performance:

The researcher proved that higher level of conflict among employees showed negativity not only
in the organizational commitment of the employees but also in the job satisfaction of the
employees working in the organization. The low level of the two variables was supposed to
increase turnover intension among employees working in an organization. The increased level of
conflict whether its emotional or task related came up with various outcomes such as low
organizational commitment, low job satisfaction, increase turnover intension and all these made
an impact on performance explained .The conflict reduced organizational commitment and job
satisfaction and the reduction of these two variables increased the likelihood of employee
turnover intension. The difference between organizational commitment and job satisfaction
explained by Williams and Hazer was that the former was an emotional and sentimental response
to the whole organization, whereas the latter represented an emotional attachment to specific
dimensions of job. According to presence of conflict in any organization caused lower level of
organization commitment and job satisfaction.

Considering the organizational commitment among the employees in the organization, was the
variable that defined the involvement of the employee with the organization. Organizational
commitment was about believes and acceptance organizational goals and values; it was defined
as a willingness to perform well than before, for the sake of the organization. Employee having
strong organizational commitment had a strong sense of loyalty, sincerity, responsiveness with
the values of the organization. Second variable had a significant impact by the existence of
conflict among the employees working in an organization. Job satisfaction among the employees
was defined as variable that measured whether the employee was happy, contented and pleased
with the job, organization, culture and work place. Job satisfaction explained the ease level,
positive emotions, comfort, happiness, pleasure at the organization in which he/ she was
working. The reason of job satisfaction varied from individual to individual. High level of
conflict lowered both the variables Job satisfaction and organizational commitment. The lower
level of job satisfaction and organizational commitment further gave rise to increase in turnover
intension. Turnover intension was the variable that predicted whether the employee wanted to
leave the organization. It showed whether the employee had the willingness to remain associated
with the organization he /she was working in or whether there was a desire to leave the
organization and be a part of some other organization. Turnover intension of the employees was
either useful or dysfunctional for the organization. The loss of poor performing employees from
the organization could be beneficial for the organization whereas loss of high performing
employees from the organization could be dysfunctional for the organization.

According to the research conducted turnover intension had significant links with various
consequences; turnover intension was highly associated with job satisfaction and organizational
commitment. There was an inverse relationship between turnover intension and job satisfaction.
Lower level of job satisfaction gave rise to higher level of turnover intension among employees.
This showed that the employees who were less satisfied with their jobs, organizations, cultures
and locations were much more willing to leave the organization. There was an inverse
relationship of organizational commitment among the employees and turnover intension. The
employees working in an organization who were less committed to the organization and showing
less loyalty, sincerity, trustworthiness, devotion were more prone to turn over intension. Mobley
stated that turnover disturbed performance as employee who was willing to leave became less
competent , whereas when a knowledgeable and experienced employee had left the
organization , time and cost of the organization were lost to secure a substitute.

Finally due to all the consequences, that were lower organizational commitment, lower job
satisfaction and higher turnover intension affected the performance of the employees.
Performance was defined as the profitability of the organization when the desired result was
achieved by the employee. If the employee had achieved the goals set by the organization it was
said that he had performed well. Whereas if the employee hadn’t done well in achieving his
targets it was said that he hadn’t performed well. Performance referred to output results and their
outcomes. To analyze the performance of the employee, there were certain targets, standards,
past results that were set by the management of the organization. The measurement of
performance of the employee was fundamental to the improvement of the productivity of the
organization. Another importance of performance analysis was to uncover several perspectives
on the problem and opportunity determining any barrier to successful performance.

Interrelationship of the three variables:

The three variables that were studied as the consequence of conflict among employees in the
organization , job satisfaction, organizational commitment and turnover intension were further
explained as job satisfaction was an work related outcome that was defined as optimistic feeling
of the employee had toward his or her organization, job policies, way of work done in that
organization . Organizational commitment was the variable that explained as the degree to which
employees felt themselves dedicated towards the organization and turnover intention was the
work related variable that defined as employee’s propensity to leave the organization . The three
variables were interlinked with each other. The largest view was that job satisfaction was an
originator of organizational commitment as higher job satisfaction was supposed to increase the
organizational commitment of the employees working in the organization .Whereas
organizational commitment was supposed to be a precursor of job satisfaction explained by
There was a mutual relationship between commitment and turnover intention, with lower
commitment it was thought to be greater intention to quit where as if there was high turnover
intension in any organization it was supposed to be lowers commitment among employees The
variable job satisfaction among the employees had several consequences. Organizational
commitment was one of the consequences, For example, job satisfaction influenced
organizational commitment among the employees toward the organization. If an employee was
contented with pay he was getting from the organization, it was supposed that this employee was
dedicated to the organization in which he or she was associated. Conversely, higher job
satisfaction with the organization was considered as a cause for higher organizational
commitment toward the organization. It explained that higher level of organizational conflict
were associated with lower level of job satisfaction and lower level of organizational
commitment as a result showed higher turnover intension. According to in any organization, job
satisfaction of the employees and their organizational commitment showed a relationship which
was positively correlated to each other. Shore and Martin concluded that although both
organizational commitment and job satisfaction were related to turnover intension, but
organizational commitment was more strongly related to turnover intension. It has demonstrated
that the organizational commitment and turnover have produced highly significant link between
each other.

Job Satisfaction:
Job satisfaction was manipulated by many factors, for example, one’s relationship with their
supervisor, physical environment in which they was degree of achievement in their work, etc.
Job satisfaction in the employees of any organization gave remarkable advantage to any
organization, as high in spirits workers were supposed to work better and produce more, take
fewer days off, and stayed devoted to the company. Job satisfaction was defined as the approach
of physiotherapists toward the organization, their job, job environment, culture in the
organization and achievements from the organization. A positive attitude of the employee
towards all the aspects indicated job satisfaction and vice versa. Job satisfaction was analyzed
directly through a survey by asking the physiotherapists questions about the company and the job
etc. The physiotherapists were asked to respond in a manner which was quantifiable. Job
satisfaction was inversely proportional to turnover intension. It showed that lower level of job
satisfaction gave rise to greater turnover intension among employees in any organization. There
was a positive relationship between person-organization fit and job satisfaction .Job satisfaction
had been negatively related to turnover intension. Low job satisfaction at the organizational
level, was considered to be responsible for decrease performance of the employees, enhanced
rate of absenteeism, increase in job turnover of employees, and declined morale of the
organization.

Organizational commitment:
Organizational commitment was defined as relative strength of individual recognition with and
connectivity and attachment with the organization . Organizational Commitment was a work
related variable that was fond to have relation with other variables such as turnover, absenteeism,
and performance the variable is also related to job satisfaction, job involvement and job tension.
Organizational commitment had three components. First component was about the feel of
conviction and accepting the organizational goal. Second component showed the desire to make
better attempts on behalf of organization. It was a willingness in the employee to be loyal with
the organization. Third component showed the individuals willingness or desire to maintain
membership in the organization explained and refined that Organizational commitment was
further divided in three distinct types of employee commitment to an organization: Affective
commitment, continuance commitment, and normative commitment. Affective commitment was
defined as the emotional attachment and affection with the culture, place, location, co-workers,
environment and organization itself. It explained that employee who had high level of affective
commitment wanted to stay with the organization for more than merely economical reasons.
Continuance commitment was a commitment which was due to the threat of losses that an
employee had to incur if he/she had to leave the organization. For example if an employee had
developed his skills in an organization, he would be scared that if he left the
Recommendations:
In light of the results of this study provide the researcher a number of recommendations, which
hopes to contribute to increasing the effectiveness of the research by reducing conflicts to the
extent desired, which does not affect the functioning of the process, and on the other hand raise
the level of management organizational commitment. Therefore, the most important of these
recommendations include:
1-Try to identify the causes that lead to managing organizational conflict between individuals
in the beginning in order to control it early before aggravating the situation in addition to the
use of appropriate methods to deal with the conflict between the workers depending on the
situation and circumstances.
2- To allow workers to discussion about how to implement the business and motivate them, to
work harder, and allow them to express their ideas and opinions opposition and perspectives
different and motivate them to take advantage of conflict situations in the work and attention
to positively conflict, and try to solve all the problems faced by the workers.
3-The director seeks to reach a better understanding of the individuals and not to avoid
disagreements with others and try to reach a solution on them, and allow workers to express
their feelings and not suppressed.
4- The methods of communication and effective communication and provide information that
will benefit the organization through formal meetings and joint committees.
5-Adopt the principle of justice in the distribution of tasks and costs, incentives, and based on
efficiency, principle of justice over his affiliation to his work and his foundation and his
aspiration for career development on an ongoing basis, which has a good return on the level of
commitment.
6- Need to develop a detailed list of tasks, rights and duties, be accessible to all teachers, since
the beginning of the year.

Conclusion:
This study was exploratory in nature with regard to establishing the organizational conflict
managing. Limitations to the study were due to the relative complication of the questionnaire
and the ability of all employees to complete it, the survey had to be restricted to job-levels that
eliminated the lower ranks of the workforce. Studying the lower- job levels may reveal different
perceptions as to causes of conflict and different conflict-handling styles being use by them in
interpersonal conflict situations. Because of there is no studies could be found that was done to
evaluate conflict dynamics and specifically conflict-handling styles in municipalities it is
believed that this study contributed to the possibility of further research in various aspects of
conflict management within public sector organizations. With the growing interest in the skill of
conflict management where experiencing different organizations many kinds of conflict acquires
the time and effort next to their negative impact on the ability of the organization.