conflict management is essential for organisational success

In the contemporary business environment, conflict management is essential for organisational success. This is mainly because companies are often faced with numerous conflicts that can not only cripple operations but also result in organisational closure if not properly managed. The conflicts can broadly be classified into internal and external conflicts. Kiitam, McLay & Pilli (2016) note that internal conflicts tend to affect individual performance, whereas external conflicts tend to affect organisational performance. In most instances, conflicts in organisations are caused by factors such as nepotism, poor communication, favouritism, inadequate rewards for work done, employee maltreatment, lack of adequate resources, and stress, among others.

Interestingly, depending on how the causes of conflict in organisations are managed, the implications can be positive or negative in nature. Specifically, McKibben (2017) asserts that, when conflicts properly managed, positive working relations are developed within the company. This is more so in instances, the causes of conflict are addressed in a manner that ensures optimal outcomes. For Gilin Oore, Leiter & LeBlanc (2015), through interventions such as training and mediation, companies can be able to ensure the outcomes are not only positive in the long term but also provide valuable insights to organisational leaders and foster organisational and individual growth.

One of the main companies that have benefitted attempted to manage conflict, and the main focus of this research study is HSBC Holdings Plc. To be exact, HSBC is a multinational company that provides investment and financial services to consumers in different parts of the world. Being the largest financial institution in Europe and the 7th largest in the global arena, the company has its headquarters based in London. Specifically, the company has close to 4000 offices and over 40 million customers in the different regions of operation (HSBC Group, 2020). In the course of its operations, the company has encountered numerous conflicts emanating from factors such as communication barriers, background, opinions, and personality, among others. Though some of the strategies used in addressing the conflicts have been successful, others have had negative implications in the company’s performance.

Based on the different causes identified above, the different implications of conflicts in organisations and the reality that conflicts are part and parcel of organizational operations, this research sets out to assess conflict management at HSBC.

4.0 Research Questions

The following are the research study’s research questions;

• What causes conflicts in organisations such as HSBC?
• Which kind of positive and negative implications do conflicts have on organisations such as HSBC?
• How does HSB respond to conflicts and which conflict management skills are existing within the company?

5.0 Preliminary Literature Review and Relevant Past Studies

For companies to be able to manage conflicts arising in an effective and efficient manner, understanding the types of conflicts likely to affect employee and organisational performance is key. This is mainly because for there to be a chance to address external conflicts likely to affect an organisation successfully, managing the internal ones is a necessity. Wu, Zhao & Zuo (2017) opine that the types of conflict include personal, intragroup, intergroup, and inter-organisational conflicts. Generally, personal conflicts tend to happen between two or more people due to elements such as different personalities, leadership, clash of core values, and poor communication, among others. Intragroup conflicts on the hand emanate from issues such as limited organisational resources, inequality in pay, and members’ desire for power, among others (Beheshtifar & Zare, 2013). In such conflicts, the group members often strive to win since it is the winner that gets access to the desired elements. For intergroup conflicts, loyalty is deemed an asset. This is mainly because the vertical or horizontal conflicts tend to foster competition as each group seeks domination over the other. Lastly, inter-organisational conflicts tend to foster growth and development as decision-makers facilitate the generation of amicable solutions (Wu, Zhao & Zuo, 2017). This is mainly because the parties in conflict such as competitors, suppliers, and companies, or even customers and companies ought to co-exist.

In understanding conflicts, three main theories have been presented; the traditional view of organisational conflict, human relations view of organisational conflict, and the interactionist theory of conflict management (Dale & Smith, 2013). The authors continue to note that in the traditional conflict view, any form of conflict is destructive and detrimental to an organisation. As such, companies ought to ensure they avoid all forms of conflicts for continuity purposes. The human relations view, on the other hand, encouraged companies to accept companies since there are instances of conflict that are beneficial to organisations (Igbokwe, 2014). Since they are inevitable, companies are encouraged to ensure the existing conflicts are solved for improved better performance. In the interactionist view, conflict is believed to be a necessity for group improvement and individual growth (Ogunbayo, 2013). This is mainly because it encourages individuals to compete, improve themselves and the company, increase creativity levels, and learn to solve encountered problems. As a result, companies have been able to improve the quality of services offered and innovated /invented new products. In managing conflicts, several strategies have been put forth. According to Thakore (2013), some of them include; conflict avoidance, compromise, integration, collaboration, and giving in.

Research studies in the area also differ on the implications of conflicts on organisations because they can be positive or negative on nature. For instance, according to Choi& Kim (2012), limiting the level of work-family conflicts can not only result in an increment in employee job satisfaction levels but also an enhancement in employee job performance. These findings were presented after data was collected from frontline employees working in 10 different hotels based in Seoul and analysed. In Saeed et al. (2014)’s research study, it was discovered leaders employing different styles of leadership managed conflicts in organisations differently. To be exact, laissez-faire leaders tended to avoid any form of conflict with their followers, transactional leaders comprised while transformational leaders responded via integration or obliging of the conflicts encountered. To draw these conclusions, the researchers collected information for analysis from 150 middle managers working in different companies operating in the manufacturing industry. For Chen et al. (2012), the management of conflicts in an organization through compromise and integration is positively related to employee creativity, innovation, and job satisfaction. Management through avoidance, on the other hand, negatively influences organizational performance and innovation capabilities. Also, Odetunde (2013) found out that conflicts in organisations are caused by elements such as employee dissatisfaction, warring ego, poor communication, personality clashes, and weak performance management systems, among others. Their findings also indicate that when compared to the transactional leader, transformational leaders are more effective in managing conflicts when they arise in organisations.

6.0 Sources of Data

When collecting data for analysis, the researcher intends to make use of the primary data collection method. This method was selected because it provides the researcher with an opportunity to collect first- hand information for analysis. In doing so, Mackey & Gass (2015) elucidate that the chances of the findings presented being successful in obtaining desired goals increase since chances of biasness would have reduced significantly. In order for further insights to be gained regarding various aspects of conflicts in organisations, their causes, and management, the researcher will be employing the interview research strategy. With the aid of the strategy, follow up questions can be asked when further elaboration of the answers given is needed (Kumar, 2019). This is more so if the researcher is a little confused or needs clarification for distinguishing between already presented findings and those to be presented at the end of the study. The fact that the research participants will be directly involved in and affected by the area of study increases the validity, reliability, and applicability of the findings to be presented at the end of the research study (Jamshed, 2014). Specifically, the researcher will be interviewing ten employees at HSBC working in different leadership levels through phone and face to face. Face to face interviews would ensure the researcher picks up on the non-verbal cues as the interviewees respond to the different questions asked. The phone interviews would be used in instances that the research participants are not available for a face to face interview within the two weeks allotted time frame. People in managerial leadership at HSBC will be selected in this research study mainly because they are better positioned to identify the cause of conflicts in their forte, responses used to address those conflicts, and the outcome. To be exact, the interview will obtain data for analysis from two employees at the strategic leadership level, three working at the managerial leadership level, and five working directly with employees at the operational leadership level.

7.0 Proposed Methodology

In data collection and analysis, this research study will be making use of the interpretivistic research philosophy. This is mainly because the philosophy allows for subjective data to be collected for analysis. As a result, further understanding of various phenomena affecting people’s lives becomes possible. The understanding is made possible by the philosophy’s ability to allow research participants to provide feedback on questions asked based on aspects such as experience, personal perspectives, understanding and interpretation of different scenarios and their effect on the environment (Mackey & Gass, 2015). In addition, Flick (2015) asserts that considering existing theories are forming the main basis for this research study, the researcher will also be making use of the inductive approach. This is mainly because of the area of conflict management, especially in an organisation is one that has piqued the interest of numerous researchers. This is mainly in an attempt to provide organisational leaders with a roadmap that would facilitate growth and development through the encountered conflicts. The fact that the researcher seeks further understanding of the area of study before presenting finds for use by different parties further makes this research approach appropriate (MacDonald, 2012).

Taking into consideration that the data collected will be qualitative in nature, the researcher will employ the content analysis technique when analysing the data collected. This is mainly because the major focus will be placed on the answers provided. To be exact, the meaning would be derived from the feedback to questions asked provided, followed by a presentation of findings based on the researcher’s understanding and interpretation (Flick, 2015). The researcher also intends to adhere to various research guidelines, including seeking the consent of both organisational leaders and the research participants, maintaining anonymity and confidentiality, informing the research participants of their right to quit at any time, and even being honest, among others.

8.0 Anticipate Problems

During the course of completing the research study, the researcher expects to encounter some challenges. Some of them include:

1. Gaining consent from HSBC Holdings Plc.’s management to collect data for analysis from its employees.
2. Getting the consent of a research participant in the strategic leadership level of the company
3. Scheduling the interviews in a manner that ensures they are completed within two weeks considering employees in leadership positions often have limited time to spare for non-work related things.
4. The data collection process is expected to be highly costly as the researcher intends to conduct face to face interviews and only use phone interviews when face to face interviews are not possible.

All in all, the researcher intends to ensure, the negative effect of the aforementioned problems on the findings presented is minimal. This is mainly by being flexible when it comes to the time scheduled for the interviews to take place. In doing so, the researcher will ensure there are little to no disruptions in the day to day completion of expected activities