BUCAS GRANDE FOUNDATION COLLEGE

Socorro, Surigao del Norte

CHAPTER I

THE PROBLEM AND A REVIEW OF RELATED LITERATURE

Lending institution like KUSALENCO, TAFIMCO and SOEMCO in the

municipality of Socorro have existed because these organizations achieve certain
economic, social or political objectives. These objectives may be in form of profit
making, provision of services, production of goods and increase in sales turnover etc.
However, these objectives can only be achieved when human resources are employed
to utilize other resources such as a raw material, machineries, money and information
(George and Jones, 1996). Organizations are made up of different people with
different attitude, belief, abilities and personality, therefore conflict is inevitable. There
is no organization that can effectively carry out its day to day activities without
encountering some form of conflict. Conflict in the workplace is inevitable, but it doesnt
have to bring down morale or effect productivity. Conflict can arise at any time. How
you utilize conflict resolution strategies depends on both conflict style and conflict
resolution skills. There are many ways to respond to conflict situations; some conflict
style involves a considerate or cooperative approach while others involve either a
competitive or passive approach.

Therefore, conflict is the commonest, general and wide-spread phenomenon

that is synonymous with group activity and interaction. According to Uya (1992),
conflict cannot be completely dissociated from human beings and their endeavors, be
it group or organization. This means that conflict is a necessary evil that one cannot
do without.

Conflict refers to a situation in which there are incompatible goals, cognition or

emotion within or between individuals or groups that led to opposition (Uya, 1992).
This definition recognizes three basic types of conflict that are goals. Conflict, which
arises when the desired outcomes are incompatible between groups, cognitive and
affective conflict. Cognitive conflict arises as a result of incompatibility of ideas,
affective conflict on the order hand usually arise when there is an incompatibility in
emotion. Conflict can also arise when two or more values, perspective and options are
 BUCAS GRANDE FOUNDATION COLLEGE
Socorro, Surigao del Norte

contradictory in nature and have not been agreed upon. Conflict has both positive and
negative effect on organization that is why there is a need for effective conflict
management strategy.

Conflict management refers to attempt to control or regulate conflict through a

number of measures. Conflict management strategies refer to the internal mechanism
used by the various authorities in resolving conflict (Adeyemi and Ademilua, 2012).
Constructively managed conflict induced a positive performance while poorly
managed conflict, heats up the environment to bring about dislocation of the entire
group and polanzation, reduced productivity on job performance, psychological and
physical injury, emotional distress and inability to sleep interference with problem
activities, escalation of differences into antagonistic position and malice and increase
hostility (Akanji, 2005). Through an effective conflict management are directed towards
non-violent, reconciliation or basic clashing interest (Uchede, Anijaobi and Odigove,
2013).

This study will be conducted to assess the conflict management strategies of

the selected lending institution to resolve conflict in business operation in Socorro,
Surigao del Norte.

Review of Related Literature

Conflict was viewed as a negative and undesirable aspect of organizational life

in the early days of management research and theorizing (Robbin, 1983). Hence, more
attention was towards its avoidance (Robbins, 1983). But recently it has been
generally that conflict is somewhat inevitable and is not always or necessarily bad for
an organization. If properly managed, conflict can lead to the development of ideas,
and can also create internal cohesiveness among groups. Therefore, the key for
organizational success is to recognize and manage conflict effectively for the good of
the organization, rather than to simply avoiding it. Some of the strategies used in
managing conflict includes forcing, avoidance, structural changes, compromise and
smoothing.
 BUCAS GRANDE FOUNDATION COLLEGE
Socorro, Surigao del Norte

Also, other management strategies such as suppression, smoothing,

compromise, third-party interaction, cooperation, democratic process, job rotation as
well as confrontation has also been identified. Problem solving, appeal to superior
organizational goals, prevention and avoidance, expression of opportunities and
resources, use of authority and command, changing the structure of the organization
and compromise were also opined to some of the management strategies used by
managers in resolving organizational conflict. Collective bargaining is a situation
whereby the representatives of each group come together with a mandate to work out
a solution collectively. Reconciliation is an act of procuring good will or inducing
friendly feelings. This involves a situation whereby groups who are in conflict and who
have failed to reach agreement can come together once again to attempt to settle their
differences. This is usually attempted before the more serious step of a strike by
workers or lockout by management is taken. Negotiation is a process in which two or
more parties who have common and conflicting interest state and discuss proposals
concerning specific term of a possible agreement. It is a deliberate process, conducted
by representatives of the groups deciding to reconcile their differences to reach
agreement by consensus. Conflict is not properly managed could result to strikes and
lockout must especially in the Civil Service which could have resultant effect on the
Psychology of the staff. It can also affect the nation both political and environmentally.

Quite visibly, most organizations have devoted a greater part of economic time
and effort to settle conflict related issues. This scenario has continued unabated,
hence posing a negative challenge to industrial and economic growth of an
organization. Although, scholars have reasoned that conflict cannot be completely
ruled out in any organization (Uchede, Anijaobi&Odigove, 2013) but then, frequent
occurrence of organizational conflict could have an adverse effect on the organization
in terms of loss of production hour, reduction in profits, unemployment and of course
reduction in income level of the organization. Just like any other organization,
AkwaIbom State Service is still confronted with various forms of conflict both
interpersonal and conflict task conflicts. The State civil service has also been criticized
that they do not live up to expectation of the masses due to their poor productivity.
 BUCAS GRANDE FOUNDATION COLLEGE
Socorro, Surigao del Norte

Therefore, it is very important to examine which of the conflict management strategies

could endanger increase in employees productivity in the workplace given the fact
that conflict is inevitable. This is because when conflict is not properly managed, there
cannot be an increased productivity. Hong, (2005) conducted a study to compare
conflict management strategies (CMS) between Koreans and Americans. Six hundred
(600) respondents took part in the study involving 300 Koreans and 300 Americans,
the study showed that Koreans prefer an avoidance conflict management and a
cooperative orientation, whereas the American prefers a competition strategy and an
assertive orientation. Also, Lee & Rogan (1991) examined the conflict management
styles of local government employee with superiors, peers and subordinates. The
study made used of mail survey and personal interview in data collection. The study
found that the conflict management styles used by government employees varied
depending on the relative status. Lee & Rogan (1991) found that in conflict with peers,
Korean tend to use the compromising style, most frequently and then followed by
integration obliging, dominating and avoidance respectively. Conflict happens. It
happens everywhere: between friends, in the classroom, around the corporate
conference table. The good news is that it doesn't have to damage friendships or
business deals. Knowing how to resolve conflict, wherever it happens, creates
confidence and eases stress. Conflict resolution in the corporate world can mean the
difference between good business and no business. Teach your managers,
supervisors, and employees how to manage conflict in the office and watch morale,
and business, improvement. Sometimes it is great to get the people together and just
hash it out. You can't fix a problem you are not aware of. Sometimes it helps to just
confront the gossip who is causing all the problems. Disputes between employees are
common and inevitable. The difficult decision is when to step in, says Joseph F.
Byrnes, professor of management at Bentley Colleges Graduate School in Waltham,
Mass. Give the warring parties a chance to resolve it on their own, he says. The
time to take action is when things get out of hand, and the problems are affecting their
work or disrupting other peoples work.
 BUCAS GRANDE FOUNDATION COLLEGE
Socorro, Surigao del Norte

Find out if the conflict is work-related and has a structural root, or whether its
interpersonal and has no relationship to the job, Byrnes advises. An interpersonal
conflict can happen on or off the job, whereas structural ones are inevitable in many
organizations. Working alongside difficult people can be hard enough. However,
managing someone with whom you have a personality clash can cause major tension.
Experienced managers know how to separate emotions from the work at hand when
dealing with employees. Rather than dwelling on an employees negative personality
traits, smart managers focus on tasks, projects and results. They do not allow their
personal feelings to interfere, and they treat everyone the same way.
But in too many cases, managers simply turn away from their least favorite
employees. Rather than interacting with them, they avoid them. Whats worse,
managers may just write off the problem employees and do the employees jobs
themselves. Turning your back on difficult employees isnt just a management
mistakeit can also create legal trouble. Thats because employees who frequently
bump heads with management are also the ones most likely to file lawsuits when they
feel theyre being treated unfairly. Thats why, when confronted with employees who
dont do whats asked, its best to devise a strategy for making the best of a potentially
explosive situation. Although it may be hard to transform a difficult employee into a
warm, friendly ally, there are several steps you can take to make it easier for the
employee to comply.
 BUCAS GRANDE FOUNDATION COLLEGE
Socorro, Surigao del Norte

Statement of the Problem

This study aims to assess effective strategies to resolve conflict in lending

institutions in Socorro, Surigao del Norte.

Specifically, this study will try to answer the following questions:

1. What is the profile of the business participants in terms:

1.1 Ownership

1.2 Capitalization

1.3 No. of employees

1.4 No. of years in operation

2. What are the strategies employed by lending institution in terms of?

2.1 structural changes

2.2 compromise

2.3 smoothing

2.4 cooperation

2.5 confrontation

3. is there significant difference in the conflict management strategies with respect to

the lending institution?

4. Based on the results, what intervention measures may be proposed?

Significance of the Study

Result of this study will give benefits to the following:

 BUCAS GRANDE FOUNDATION COLLEGE
Socorro, Surigao del Norte

BUSINESS: The lending business would be able to level up through their effective
strategies to resolve conflict in managing through preparation, as stated in this study
that preparation is the key to establishing business quality effectiveness.

EMPLOYESS: This study will help the employees enlighten their minds about the
importance of their roles to resolve conflict and to achieve lending institution.

RESEARCHERS: The researchers would benefit on how to resolve conflict in

lending. Through making a research about the topic from this study.

Scope and Limitation of the study

This study will focus on the effective strategies to resolve conflict in lending
institution in Socorro, Surigao del Norte. This study will have conducted from Nov.
2016 until the end of the data gathering information and understanding the effective
strategies by resolving conflict in lending that gives a knowledge on how to resolve
conflict in every Socorronhon who will engaged lending business in Socorro.

Definition of terms:

Cooperation- This is a strategy to use for achieving the best outcome from
conflictboth sides argue for their position, supporting it with facts and rationale
while listening attentively to the other side. The objective is to find a winwin
solution to the problem in which both parties get what they want. Theyll
challenge points but not each other.

Structural change- This intervention attempts to improve the organizational

effectiveness by changing the organizations structural design characteristics,
which include differentiation and integration mechanisms, hierarchy, procedures,
reward system, and so on. This approach mainly attempts to manage conict by
altering the perceptions of the amount of conict of the organizational members
at various levels.
 BUCAS GRANDE FOUNDATION COLLEGE
Socorro, Surigao del Norte

Compromise- The compromising style is a middle-ground style, in which

individuals have some desire to express their own concerns and get their way but
still respect the other persons goals. The compromiser may say things such as,
Perhaps I ought to reconsider my initial position or Maybe we can both agree
to give in a little. In a compromise, each person sacrifices something valuable to
them.

Smoothing-

Third party-

Interaction-

Democratic process-

Job rotation-

Confrontation- Confrontation techniques aim at finding a mutually acceptable and enduring

solution through collaboration and compromise. It is done in the hope that conflicting parties
are ready to face each other amicably, and entails intercession, bargaining, negotiation,
mediation, attribution and application of the integrative decision method, which is a
collaborative style based on the premise that there is a solution which can be accepted by
both parties. It involves a process of defining the problem, searching for alternatives and their
evaluation, and deciding by consensus.
 BUCAS GRANDE FOUNDATION COLLEGE
Socorro, Surigao del Norte

Conceptual Framework

Conflict management is the process of limiting the negative aspects of conflict

while increasing the positive aspects of conflict. The aim of conflict management is to
enhance learning and group outcomes, including effectiveness or performance in
organizational setting (Ra him, 2002). Properly managed conflict can improve group
outcomes (Alpert, Tjosvaldo, & Law, 2000; Bodtker& Jameson, 2001). Conflict
resolution involves the reduction, elimination, or termination of all forms and types of
conflict. Five styles for conflict management are as identified by Thomas and Kilmann
are: Competing, Compromising, Collaborating, Avoiding, and Accommodating
(Thomas-Kilmann 2007). Businesses can benefit from appropriate types and levels of
conflict.

. The schematic diagram in figure 1 shows flow of the study. In the first box of
the study contain the profile of the participant with the following:
The first box shows the profile of the business participants ownership,
capitalization, number of employees and the number of years in operation.
The second presents as the independent variable of the study. The
independent variable reveals the strategies to merge conflict where the underlying
factors such as cooperation, suppression, structural changes, compromise,
smoothing, third party, interaction, democratic process, job rotation and confrontation
predicts the intervention measures of the study.
 BUCAS GRANDE FOUNDATION COLLEGE
Socorro, Surigao del Norte

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Profile of the business

participants.
1.1 Ownership Strategies to resolve Intervention measures.
1.2 Capitalization conflict.
1.3 No. of Employees
1.4 No. of Years in
operation

Figure 1. Schematic Diagram of the study

 BUCAS GRANDE FOUNDATION COLLEGE
Socorro, Surigao del Norte

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CHAPTER II

METHOD

Research Design

This study adopts the descriptive research design of survey type. In descriptive
methods, the purpose, is to find new truth, which may come in different forms such as
increased quantity of lending. Which are operating, a more accurate formulation of the
problem to be solved managing and many others.

Sampling Design and Participants of the Study

This study will use purposive sampling technique. All lending institution in
Socorro, Surigao del Norte including the manager and personnel will be the
participants of the study. Specifically, three (3) administartors and employees with the
number of respondent per lending.
 BUCAS GRANDE FOUNDATION COLLEGE
Socorro, Surigao del Norte

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Research Instruments

A researcher made questionnaire will be used to collect the data. The

questionnaire has two parts. Part 1 consist of the profile of the business and part II
contains items that will ask participants on the strategies to resolve conflict in business.

Data Gathering Procedures

The following steps were taken in collecting data for this study. The researchers
asking permission to the staff of KUSALENCO, SOEMCO, and TAFIMCO to conduct
the interview in lending. Upon the approval, interview follow. Afterwards, then it will
have retrieved, tabulated and analyzed. When the retrieval was done, were encoded
ready for data processing.

Statistical Analysis

Frequency count, percentage distribution, mean standard deviation and analysis of

variancce will be used to analyze the data. Also, analysis of variance will be utilized to
analyze the significant difference in conflict management strategies.

References
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Akaniji, T., 2005, Perspectives on Workplace Conflict Management and New
Approaches for the Twenty- First Century. In Albert, I. O. (Ed) Perspectives on Peace
and Conflict in Africa Essays in Honour of General (Dr.) Abdusalami A. Abubakar,
Ibadan: John Arches Publishers.
George, F and Jones, G., 1996, Understanding and Managing Organizational
Behaviour: Reading; Addison Wesley Publishing Company.
Ibukun, W. O, 1997, Educational Management: Theory and Practice. Bamigboye& Co.
 BUCAS GRANDE FOUNDATION COLLEGE
Socorro, Surigao del Norte

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Ladipo, M., 1997, Crisis Management: The Experience of Nigerian Universities.

Paper presented at the Conference of the Association of Nigerian
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Rahim, M. A., and Buntzman, G. F., 1989, Supervisory power bases, styles of handling
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Robbins, S, 2001, Organizational Behvaiour: 9th edition Prentice Hall Inc. New
York. Robbins, S.P. (1983). Organizational Behavior. Prentice Hall, Englewood Cliffs.
Uchendu, C, C, Anijaobi- Idem, F.N and Odigwe F.N, 2013: Conflict Management and
Organizational Performance in Secondary Schools in Cross River State:
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Tennessee, Knoxville
Sekeran, U., 2003, Research method for business: A skill building approach, 4th edition,
John Wiley & Sons.
Hirschman, C.,2001, Order in the haer, HR Magazine, 46(7), 58-64.
Lee, H.O, Rogan, R.G., 1991, A Cross- cultural comparison of organizational
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Socorro, Surigao del Norte

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BUCAS GRANDE FOUNDATION COLLEGE

Taruc, Socorro, Surigao del Norte

HUMAN RESOURCE MANAGEMENT OF SELECTED BUSINESS ORGANIZATION IN

SOCORRO, SURIGAO DEL NORTE

Questionnaire Survey
PART I Demographic profile
Directions: Put a check on the space provided below based on your knowledge.
Name: __________________________
Profile of the business
1. ownership
Ownership
Corporation
Partnership
Sole proprietorship
2. capitalization
100-500k
1-5 million
6-10 million
10-15 million
3. number of employees
5-20
20-30
30-40
 BUCAS GRANDE FOUNDATION COLLEGE
Socorro, Surigao del Norte

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40-50
4. Number of years in operation
1-10 years
10-20 years
21-30 years

Part II
Please indicate you response according to the response format below:

1 = Never 2 = Rarely 3 = Sometimes 4 = always

Please tick the appropriate box

Indicators 1 2 3 4
A. Organizational climate and working relations management
1. Adequate and constant communication between staff and
clients
2. Use of Supply and Management Database system
(inventory, distribution, disposal, cost, requests, etc)
3. Installation of waiting/receiving area for clients
4. Adoption of lean organizational structure and simple
requirements for clients requests
5. Teamworking among staff in providing services to clients
B. Discipline administration
1. Very strict implementation of office policies
2. Strict implementation of office policies but with little
leniency of the immediate supervisor on a case-to-case
basis
3. Regular posting of guidelines and updates
4. Giving of recognition to high performing staff
5. Use of courteous or accommodating words by the staff
C. Personnel Development
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Socorro, Surigao del Norte

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1. training is given on knowledge acquisition relative to

supply and property management

2. Provision of related trainings to all personnel

3. Formulation of programmed trainings for staff

4. training is given on attitude reformation
5. training is given on skills enhancement relative to supply
and property management
D. Performance management
1. Use of customer feedback system
2. Conduct of Office performance appraisal
3. Conduct of succession planning (for personnel promotion,
transfer, demotion)
4. Conduct of manpower audit (according to age, position,
salary grade, performance rating, educational attainment,
personal qualities, assessment of potential)
5. Conduct of personnel commitment mapping