THE EFFECT OF DISPUTE MANAGEMENT AND CULTURAL DIVERSITY ON EMPLOYEE PERFORMANCE

THE EFFECT OF DISPUTE MANAGEMENT AND CULTURAL DIVERSITY ON EMPLOYEE PERFORMANCE

CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Fadipe (2000) sees dispute as a form of disagreement in an establishment between two individuals or groups who have cause to interact formally or informally. Similarly, Miller and King (2005), see it as basically a disagreement between two or more individuals or groups over compatible goals. Dispute therefore is a process of incompatible behaviours. It may involve the interference or disruption by one person or group of persons, or in some way or ways which make another action less likely to be effective.

According to Deutsch (1973), dispute inevitably means that people are working against each other, in such a manner that what one wants is incompatible with that which another wants. It could bring about competition in the pursuit of goals. What the competitor gets comes at the expense of others or the job. It is therefore counter-productive, disruptive, unnatural, and produces a deviation from the free flow of events. A major factor that can throw parties into a state of incompatibility is their perception of the issue at hand or issue of interest. There are other factors that can contribute to the creation of dispute in organizations like task interdependence, scarce resources, goal incompatibility, communication failures, individual differences (or cultural differences) and poorly designed reward system (Ngbekem, 2004).
Dispute is a necessary and useful part of organizational life. It is inevitable and an integral part of the process of change. Indeed, it is an aid to cooperation, not an obstacle. There are two sides to dispute, one is destructive and unhealthy and the other has a problem-solving base where those involved are willing to sublimate personality and cultural differences, to listen to others’ views and to be open and candid to each other, to be supportive and helpful whereas the former defeats cooperation.

Albert (2001) averred that there are productive and destructive disputes. According to him, “A dispute is said to be positive when it is constructively discussed by the parties and amicable terms for settlement reached”. Constructively managed disputes induces a positive performance while poorly managed disputes heats up the environment to bring about ‘dislocation of the entire group and polarization, reduced productivity on employee performance, psychological and physical injury, emotional distress and inability to sleep, interference with problem activities, escalation of differences into antagonistic position and malice and increased hostility (Akaniji, 2005). Through disputes management a cooperative atmosphere is created for promoting opportunities and movement directed towards non-violent, reconciliation or basic clashing interest.

THE EFFECT OF DISPUTE MANAGEMENT AND CULTURAL DIVERSITY ON EMPLOYEE PERFORMANCE