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Impact of Workplace Conflict on the Operational Performance of Deposit
Money Banks in Enugu State.
Leleh Rita Ndidi, Prof. C. C. Orga, Ezeh Kingsley Ikechukwu (PhD)
Department of Business Administration, Enugu State University of Science and Technology, Enugu.
DOI:
https://dx.doi.org/10.47772/IJRISS.2025.910000011
Received: 16 September 2025; Accepted: 21 September 2025; Published: 01 November 2025
ABSTRACT
Organizational life usually involves workplace conflict, which, in many cases, is caused by communication
failures, role ambiguity, resource competition, and leadership issues. Conflicts and disagreements in the banking
industry, where productivity, efficiency, and teamwork are crucial, cannot be tolerated without affecting the
performance of operations by decreasing productivity, service delivery, and customer satisfaction. Enugu State
deposit money banks are not an exception of these problems, as growing competitions, workload pressure, and
employee-management conflict remain to have an impact on performance results. This study aimed at examining
how workplace conflict affects the operational performance of the deposit money banks in Enugu State.
Particularly, the study aimed at identifying the key causes of workplace conflict, analyzing its impact on
productivity, service delivery, customer satisfaction, and profitability, and discussing the methods of effective
conflict management. The research design was a quantitative one, and data was gathered using a structured
questionnaire designed using Google Forms and sent to 200 employees of the selected banks. To capture the
perceptions of the respondents, the data were analyzed using the descriptive statistics, which included mean,
standard deviation, and the rate of agreement. The results showed that the most notable causes of conflict are
poor communication, role ambiguity, workload pressure, and inequitable reward systems. It was observed that
workplace conflict adversely affected productivity, teamwork, and service delivery and conflict-management
measures including training, open communication, and clear appraisal systems were highly recommended. This
paper concludes that conflict is unavoidable but can be used as a growth opportunity through proactive
management, hence increasing organizational efficiency, and sustainability.
Keywords: Workplace conflict, operational performance, productivity, service delivery, customer satisfaction,
deposit money banks.
INTRODUCTION
Organizations are social structures that include individuals who have different backgrounds, interests, and
expectations in their pursuit of shared objectives. Personalities, resources allocation, communication styles, and
variations in values are common in such places where conflict is likely to arise (Omisore & Abiodun, 2014).
Organizational conflict has become a common occurrence at the workplace in contemporary organizations
including financial institutions like deposit money banks where employees are in close contact with one another,
the management and the customers. Although some degree of fruitful conflict can encourage innovation and
problem-solving, unresolved or destructive conflict can pose a risk to organizational harmony, affect operations,
and overall performance (Ajike et al., 2015). The deposit money banks take a key role in the Nigerian economy
as they act as middlemen in carrying out financial transactions, offering credit, and mobilizing savings. The
metrics that determine their operational performance are efficiency, profitability, customer service quality,
employee productivity and adherence to regulatory frameworks (Ewa et al., 2019). Nonetheless, the banking
industry in Nigeria, especially in Enugu State has been experiencing mounting pressures like competition,
technological developments, regulatory requirements, and customers expectations. Such pressures have
increased stress in the workplace and in most situations they have led to work place conflicts among the
employees the supervisors and the management (Adekeye et al., 2024). As an example, conflicts on workload
allocation, reward system, career advancement or company policy may lead to disagreements that diminish trust,
morale and cooperation in the banks. Past research has determined that conflict at work may adversely affect
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
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work satisfaction, organizational commitment and service delivery among employees. The expenses of conflict
can be particularly destructive in banking institutions where teamwork and decision-making speed are vital
elements to consider (Igbokwe, 2024). Uncontrolled conflicts can lead to transaction delays, customer service
errors, turnover, absenteeism and even reputation damage. On the other hand, well-managed conflicts have the
potential to enhance communication, team building, and productivity. Therefore the manner in which the conflict
in the workplace is managed will either make it a constructive or a destructive element in the organizational life.
Deposit money banks are a crucial factor in the overall economic growth of a local economy like Enugu State in
terms of funding businesses, providing jobs, and transacting trade (Adamu, 2015). There is, however, anecdotal
evidence that the service quality and efficiency of these banks are possibly being compromised by continued
conflicts within them. Although this issue is important, there is a dearth of empirical research to specifically
explore the effect of workplace conflict on the operational performance of banks in Enugu State. This research,
hence, aims to fill this gap by undertaking a study on the effects of workplace conflict on the operational
performance of the deposit money banks within Enugu state. It is believed that the findings will offer some
insights that will enable bank managers, employees and policymakers to design improved conflict resolution
strategies that will improve organizational effectiveness and customer satisfaction.
Problem Statement
Conflict in the workplace is an inevitable reality of the organizational being and when mismanaged, its impact
may extend everywhere into performance (Mohamed et al., 2024). Unaddressed issues among employees and
managers in the deposit money banks that have made efficiency and accuracy, as well as customer satisfaction,
important, might interfere with the normal running of the banks. Competition over resources, failure to
communicate, and poor definition of job descriptions, or view of unfair treatment are most likely causes of
conflicts (Obiora Anthony, 2023). Anecdotal reports recorded in the Enugu State show that cases of interpersonal
conflicts, poor employee employer relationship and employee turnover are on the rise in banks, which can
negatively affect the quality of services offered and efficiency in the running of banks. Much as a certain level
of disagreement is healthy, a continued and unchecked conflict may lead to diminished productivity, slow service
delivery and loss of customer confidence. Although deposit money banks are strategic in the process of financial
intermediation and economic growth, empirical evidence on the direct impact of workplace conflict on the
operation of the banks in Enugu State is minimal. This study attempts to bridge that gap.
Literature Review
Concept of Workplace Conflict
Conflict at the workplace is a condition of disagreement or tension among individuals or groups of people in an
organization where each is perceived to have conflicting interests, values, or goals. It is a natural and inevitable
occurrence in the organizational life, as there is a variety of employee backgrounds, personalities, roles and
expectations (Wogwu et al., 2024). Poor communication, unfair treatment, competition among scarce resources,
sharing responsibilities, or differences in attitudes and work styles may be a few of the factors that could trigger
a conflict in the workplace. There are three broad types of conflict in the workplace, commonly identified by
scholars. The interpersonal conflict involves two or more people, and it may happen due to personality conflicts
or misunderstanding (Deep et al., 2016). Intragroup conflict occurs within a team as it occurs due to the
differences between how to process occurs, how to distribute the tasks or how to perform them. On the other
hand, intergroup conflict is conflict that takes place between departments or units that are in competition over
resources, recognition or influence in the organization (Yusoff et al., 2023). Although conflict is commonly seen
as destructive, it might also be something positive should it be dealt with properly. Constructive conflict
promotes critical thinking, boosts creativity, enhances communication and assists companies in solving the root
causes (Isidori et al., 2023). The destructive or unmanaged conflict may decrease employee morale, stress, delays
in service delivery and, eventually undermine the performance of the organization. In banking where teamwork,
accuracy and efficiency are very crucial, the existence or lack of conflict management is a key determinant of
the outcome of operations (Okwuise et al., 2022). Therefore, workplace conflict is an essential concept that
should be understood in order to maximize productivity, healthy relations in the workplace, and performance of
the organization.
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
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Types of Workplace conflict
1. Relationship Conflict: Relational conflict arises among employees as a result of disparities in personalities
or individual differences regarding preferences. Frustration arises when one is faced with a disorganized
colleague or when one is on the receiving end of the pressure push from an overzealous team member. Such
conflicts tend to arise from personal issues which are not task related, and which include gossips during social
functions, or disagreements in world issues. Behavioral scientists sometimes describe an organization as a
system of position roles. Using the banking industry as a case in point, every member of the organization is
associated with a role set. These are individuals who share interdependent tasks, and who, therefore, perform
formally defined roles. Rizzo, House and Lirtzman (2005) observe that role conflict exists when the actions
expected of a person are, themselves, contradictory. Such a person is bound to suffer stress, dissatisfaction and
in the end, reduced performance.
2. Task conflict: Task conflicts involve concrete aspects of work such as work assignment disputes. These
include disagreements over the allocation of limited resources, disagreements over the different policies and
procedures, and over the judgment and interpretation of facts. "Task conflict is also known as content conflict
which refers to disagreements that arise when employees have divergent views on the proper procedures for
accomplishing a task or have different interpretations of policies and procedures" (Donohoe, 2019). If handled
in an effective manner within a certain timeframe, task conflicts can enhance the openness among employees. If
unchecked, the conflict can reduce the productivity of the workgroup and lower the morale of the organization
as a whole. Task conflict is the result of disagreements on how to perform certain work activities
3. Process Conflict: Process conflict refers to disagreements involving details of how the team will go about
accomplishing its tasks. It is the conflict that arises when there is a disagreement about the order of activities in
a set policy or a defined strategy concerning the completion of a task. More particularly, process conflict is
described as controversies about division of work and the control over the resources available, that is, who does
what, and the different degree of control multiple individuals will exercise over multiple resource. It may include
disagreements about calendar scheduling, distribution of activities, or anything in between. While unresolved
procedural conflicts can block work on team-based assignments from even being initiated, discussion of
alternative procedures may produce a compromise that all collaborators find acceptable, one that is favorable to
their decision making process.
Causes of Conflicts
Several factors have been identified as causes of conflicts in workplace. These include;
1. Poor Communication: Communication encompasses the transfer of thoughts and ideas from one
endpoint to another. In a management context, from the perspective of the management, information is shared
regarding decisions made to enhance the workers’ welfare while the workers provide information to the
management regarding the management regarding their problems and needs. Communication, therefore,
improves interaction amongst people within and outside the organization and improves relations in the
organization. In the same vein, Ugbaja (2002) noted the absence of ineffective communication in an organization
results in the information gap within the management and the workers on one side and the employers and workers
on the other, and also among the managers themselves. Such a scenario is likely to breed mistrust,
misunderstanding, and suspicion. Organizational conflict will be the outcome of such a scenario, as employees
will not justify the rationale behind some of the decisions made, as consultation is not part of the process.
2. Organizational Policies and Objectives: In today’s corporate institutions, conflicts are very easily
derived from policies of the organization and the way those policies are implemented. In Darel’s view, such goals
are usually task sensitive and seldom sensitive to the needs of the people, and this creates tension and conflicts
within the organization. For example, the profit plough back policy allocates very little funds for worker’s
welfare improvement.
3. Individual Goals and Objectives: Every employee has certain objectives which they try to achieve in
an organization. Approaching an organization is in fact to pursue one’s objectives. In numerous cases these
objectives. Darel (2003) also refers to goal incongruence when an employee is unable to pursue personal goals.
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
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4. Nature of Assignments: The nature of tasks is sometimes a source of conflict. It is a fact that some tasks
will not stress the individual while others are very difficult and are bound to cause stress. Difficult and stressful
tasks are a serious factor of conflict within an organization as pointed out by Ankwor (2006). Such conflicts are
common in offices where job rotation is not a policy. Within such an office, the workers are likely to suffer job
dissatisfaction.
5. Management Style: In the workplace, the working relations can also be termed as ‘leadership style’ or
‘employer employee’ relations, or ‘superior-subordinate’ relations. In most cases, employees do not appreciate
the authoritarian or autocratic leadership style of many managers or leaders. Ankwor (2006) notes of the
existence of such relationships in corporate institutions as the oppressive or master-slave relation. As a
consequence of such relationships, the feelings of resentment and anger in most cases result in conflict.
METHODOLOGY
This study employed a quantitative survey approach to assess the impact of conflict on the operational
performance of deposit money banks in Enugu State. All employees of deposit money banks operating in Enugu
State constituted the study population. Yamane's sample size population formula (N=200) was used to determine
sample size by setting e=0.05 (5 percent margin of error). A sample frame was developed by using employee
records from the banks that had been previously selected. In order to enhance representativeness, banks were
selected purposively to include national, regional, and commercial banks operating in Enugu State. Within the
developed sample frame, a simple random sampling technique was employed. Each eligible staff member was
registered within the system and their names assigned unique identifiers. In total, 200 identifiers were
systematically chosen and linked to the survey to ensure they had an equal opportunity of being selected. Data
was gathered from the respondents using a well-structured questionnaire, which was distributed using Google
Forms. Respondents were asked to provide their data in form of a questionnaire distributed in 4 main parts:
section A which includes the respondents’ demographics, section B, which assesses the various levels of conflict
in the workplace, section C which entails measurement of operational performance and section D that captures
respondent’s consent and clarifications on the ethical considerations made in the process of data collection. The
constructs of conflict and operational performance were assessed through multiple-item Likert scales (5-point
scale: 1 = Strongly Disagree to 5 = Strongly Agree). This instrument was built by using validated literature and
adding constructs when necessary; constructs and their sources are exhibited in Appendix B. Clarity and timing
were assessed through a pilot study (n = 30); this study let them refine their wording. Construct validity was
assessed through exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). Reliability was
assessed using Cronbach’s alpha (acceptable threshold α ≥ 0.70) and composite reliability and internal
consistency. The data analysis plan was a combination of inferential and descriptive analysis. Respondent
demographics and descriptive statistics (means, standard deviations, frequencies) were used to analyze item
distributions. Pearson correlation analysis was done to analyze the relationships between workplace conflict and
operational performance (for continuous/approximate-normal variables). The impact of conflict dimensions on
operational performance was assessed through multiple linear regression models while controlling for
demographic covariates (e.g. age, tenure, job level). Regression diagnostics were used to assess assumed violated
by the use of robust standard errors or nonparametric alternatives (e.g. Spearman’s rho, quantile regression).
95% confidence intervals, effect sizes and p-values were calculated. All statistics were conducted in SPSS and
the threshold for significance was set at α = 0.05. All necessary ethical approvals were secured prior to the
commencement of the study. As defined in the ethical guidelines, consent to participate in the study was given
voluntarily at the onset of the survey, starting with a preliminary explanation of the survey's purpose and the
privacy and confidentiality measures. Respondents have the right to not answer specific questions. In this study,
sensitive, personal information was collected. Theory suggests the information will be stored on encrypted fom
rams accessible only to the researcher, however, the reliability of this method is debatable.
RESULTS
Research Question 1
What are the major causes of workplace conflict among staff of deposit money banks in Enugu State?
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
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Table 1: Causes of workplace conflict among staff of deposit money banks
S/N
Statement
Mean (x)
Standard
Deviation
(S.D)
Agreement
(%)
1.
Poor communication between staff
and management
4.35
0.72
87.0%
2.
Role ambiguity and unclear job
descriptions
4.12
0.81
82.4%
3.
High workload and job-related
pressure
4.05
0.88
81.0%
4.
Perceived unfairness in promotion
and incentives
3.78
0.95
75.6%
5.
Autocratic or poor leadership style
3.90
0.85
78.0%
6.
Competition for limited resources
(e.g., tools, support)
3.20
1.10
70.0%
7.
Organizational changes and
restructuring
3.65
1.25
64.0%
8.
Personality clashes among colleagues
3.65
1.02
73.0%
Table 1 indicates that the most important contributors to workplace conflict among the employees of the deposit
money banks in Enugu State include poor communication (87%), role ambiguity (82.4%), and workload pressure
(81%). The other aspects that are also significant include unfair promotion practices (75.6%), the leadership style
(78%), and the personality clashes (73%). There was the lowest agreement of 64 percent in organizational
changes and restructuring, which had a moderate effect. Generally, the results imply that communication
breakage, role ambiguity, and job overload are the main causes of conflicts in banks and adversely influence the
work relationships and work efficiency.
Research Question 2
To what extent does workplace conflict affect the operational performance of deposit money banks in Enugu
State in terms of productivity, service delivery, customer satisfaction, and profitability?
Table 2: Effect of Workplace Conflict on Operational Performance
S/N
Statement
Mean (x)
Standard
Deviation
(S.D)
Agreement
(%)
1.
Conflict reduces employee
productivity and efficiency
4.25
0.78
85.0%
2.
Conflict disrupts service delivery and
slows operations
4.10
0.82
82.0%
3.
Workplace conflict reduces customer
satisfaction
4.05
0.90
81.0%
4.
Conflict leads to financial losses and
reduced profitability
3.95
0.88
79.0%
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5.
Conflict increases staff turnover and
absenteeism
3.85
0.92
77.0%
6.
Conflict affects teamwork and
organizational harmony
4.15
0.80
83.0%
Table 2 indicates a strong agreement by the respondents that conflict at the workplace adversely affects
operational performance. The greatest impacts are on productivity (85%), teamwork (83%), and service delivery
(82%). Though profitability (79%) and employee turnover (77%), are a bit lower, they are still high, which
proves that unmanaged conflict deteriorates the efficiency, customer experience, and financial results of banks.
Research Question 3
What strategies can be adopted to effectively manage workplace conflict and improve the operational
performance of deposit money banks in Enugu State?
Table 2: Effectively manage workplace conflict and improve the operational performance
S/N
Statement
Mean (x)
Standard
Deviation
(S.D)
Agreement
(%)
1.
Regular conflict-management and
communication training for staff
4.40
0.65
88.0%
2.
Establish clear job roles and well-
defined job descriptions
4.25
0.70
85.0%
3.
Open communication channels and
regular feedback mechanisms
4.30
0.72
86.0%
4.
Transparent promotion, reward, and
incentive systems
4.10
0.85
82.0%
5.
Encourage participative leadership
and employee involvement in
decisions
4.05
0.88
81.0%
6.
Implement Employee Assistance
Programs (counselling/support
services)
3.65
1.05
73.0%
Regular team-building and staff
engagement activities
3.90
0.95
78.0%
Transparent performance appraisal
and formal grievance procedures
4.00
0.90
80.0%
Table 3 indicates that the respondents strongly believe in a number of important conflict management strategies
in deposit money banks in Enugu State. Conflict-management training (88%), open communication channels
(86%), and clear job roles (85%) were rated as the most popular options and have an explicit influence on
achieving transparency and preventing misunderstandings. Cleared reward and appraisal systems (82% and 80%
respectively) were also noted as being important in the perceived unfairness reduction. Although the support in
employee assistance program (73) and team-building (78) was slightly less, the programs are still significant.
The evidence indicates that active, collaborative, and open practices are critical to conflict management.
DISCUSSION
The results of this research indicate that workplace conflict has a strong impact on the performance of the
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
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operations of the deposit money banks within the Enugu State. According to the results provided in Table 1, the
most common causes of conflict in the bank staff are poor communication, role ambiguity, and workload
pressure. This is in line with available literature that notes that lack of clarity in responsibilities and
communication gaps are some of the main catalysts of organizational disagreements. Unresolved conflicts
among them tend to lead to poor working relationships in the workplace, as this will ultimately weaken
cooperation and productivity. Table 2 results also demonstrate that workplace conflict has a significant negative
impact on bank performance. In particular, it was found that productivity, teamwork, and service delivery were
the most influenced areas in which more than 80 percent of the respondents concurred. These results help sustain
the perception that unresolved conflict decreases efficiency and slows down operations, thus deteriorating
customer satisfaction and profitability. Conflict threatens the stability of customer loyalty and sustainable
financial performance in a competitive banking environment where timely service and accuracy are the primary
determinants of success. As shown in Table 3, the respondents are aware of the significance of proactive
approaches when dealing with conflicts. The highest levels of agreement were obtained with conflict-
management training, open communication and well-defined job roles, which highlight the necessity of
transparency and capacity building at the workplace. The focus on participative leadership, reward fairness, and
grievance procedures also demonstrates that the employees appreciate inclusion and equitable managerial
practices. They had moderate scores in terms of employee assistance programs and team building although they
are still applicable in promoting the long-term harmony. Overall, the discussion indicates that conflict in deposit
money banks is unavoidable but the effects can be reduced by the adoption of effective management techniques.
The proactive measures placed in place will not just improve the relationship between employees but the levels
of productivity, customer satisfaction, and profitability, increasing the overall performance of the operations.
CONCLUSION AND RECOMMENDATIONS
This research investigated the extent to which workplace conflict affects operational performance of the deposit
money banks in Enugu State. The results indicated that conflict in banks is the biggest by poor communication,
role ambiguity, heavy workload, and perceived unfairness in promotions. These conflicts were observed to have
adverse effects on the performance of operations through employee productivity, service delivery, customer
satisfaction and profitability. It was also demonstrated that the outcomes of unresolved conflicts undermine
teamwork, raise staff turnover, and bring harm to organizational harmony. Nevertheless, the research also
revealed that appropriate conflict-management practices could convert conflicts to growth and efficiency. On
the findings, some recommendations are made. To start with, the management of the bank would be advised to
institutionalize frequent conflict-management and communication training so that the employees would be
armed with skills to deal with conflicts constructively. Second, job roles and responsibilities ought to be outlined
to minimize confusion and overlapping responsibilities. Third, the management ought to maintain free channels
of communication and regular feedback devices that promote dialogue and trust. Fourth, there should be clear
reward systems and performance appraisals to respond to the fears of employees about fairness. Fifth, banks
must embrace participative styles of leadership, which entails inclusion of staff in decision making to promote
inclusiveness and ownership. Lastly, employee assistance programs, counselling services, and team-building
activities need to be reinforced to attain healthy relations and staff welfare. To sum up, conflict is a normal
process in the workplace, but, with proper management, it may contribute to organizational learning and
resilience. Deposit money banks in Enugu state can enhance employee relations, operations efficiency, and
performance sustainability by following proactive practices.
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