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The IUP Journal of Organizational Behavior :
The Impact of Conflict Resolution Mechanism on Employees’ Motivation: A Study of Bank Employees
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In a competitive environment, conflict resolution plays a vital role in avoiding the communication gaps and misinterpretation in any organization. If these gaps are not filled at the right time, it will affect employees’ motivation. Thus, the purpose of this paper is to find out the association between conflict resolution mechanism and employees’ motivation and also to find out the impact of conflict resolution on employees’ motivation in the banks of the state of Punjab. For this, data was collected from 524 bank employees from the Punjab state with the help of a survey questionnaire. Correlation and multiple regression analysis were used for analyzing the collected data. The results revealed that that there is a significant association between conflict resolution mechanism and employees’ motivation. The findings also revealed that conflict resolution strategies significantly impact employees’ motivation, except avoiding strategy, competing strategy and collaborating strategy. This research will be useful for bank managers for framing policies regarding resolution of conflict in their respective banks in such a way that employees feel motivated and the goals of the organization are achieved. The results also contribute to the existing body of knowledge on the topic.

 
 
 

In today’s competitive environment, organizations are having a large pool of diverse employees of different age, religion, nationality, gender, etc. In such an environment, there are chances of communication gaps and misunderstanding which result in conflict among the employees. Conflict arises when individuals have different values, beliefs, opinions, needs, interests, etc. and are unable to find a solution. Sometimes they are distressed because of the behavior of the supervisors or the management which also affects the employees’ presenteeism (Gilbreath and Karimi, 2012). Therefore, an effective conflict resolution procedure is required which ensures a friendly work environment rectifying the conflict to the mutual satisfaction of both the employees and the managers. It also helps the management to frame policies and procedures which are acceptable to the employees. It becomes an effective medium for the employees to express their feelings, dissatisfaction and unhappiness openly and officially.

The reasons for conflicts are specialization, deficiency of common resources, goal differences, authority relationships, and roles and expectations. Further, timely recognition and negotiation between conflicting parties should be deployed for resolving conflicts without using any force or intimidation (Omisore and Abiodun, 2014). In order to prevent the circumstances leading to conflict, an organization formulates the conflict resolution procedure. This procedure is efficient only when there is formal procedure, speedy settlement, acceptance, settlement at lower level, perceived justice, simplicity and training (Gamage and Hewagama, 2007). Effective communication, consultation and employee engagement can also be useful for resolving conflicts. Regular meetings and feedback should be in place to avoid conflicts in an organization. Two-dimensional approach can be used, i.e., concern for self and concern for others while resolving the conflict (Rahim and Bonama, 1979). On the basis of these two dimensions, the management can use various strategies for resolving the conflict. Strategies can be competing strategy, collaborating strategy, compromising strategy, avoiding strategy and accommodating strategy (Thomas and Kilmann, 2010).

An unhappy employee can publicize their conflicts with the help of the internet, Facebook or other social media if the conflict is not addressed in a timely manner. This will affect the employers’ image and goodwill, which in future could cause unwarranted embarrassment to the management and organization. To avoid such situations, organizations must develop fair conflict resolution mechanisms and create a constructive working environment through adoption of fair employment practices as a satisfied employee is a prerequisite for customer satisfaction. Providing prompt and efficient conflict resolution is essential to retain existing employees and to attract new ones. Thus, it is necessary to remove these conflicts in a timely manner so that the organization runs smoothly.

 
 
 

Organizational Behavior Journal,Competitive environment ,Conflict resolution , Communication gaps, Conflict Resolution Mechanism, Employees’ Motivation, Bank Employees.