Midland Bank Ltd Case Study: Causes and Effects of Workplace Conflict

This case study examines the causes and effects of workplace conflict at Midland Bank Ltd., Dhanmondi Branch. The research employs a survey of bank employees to identify key factors contributing to conflict, such as negative criticism, gossip, denial of mistakes, jealousy, and abusive language. The study reveals that these conflicts lead to broken relationships, instability, reduced commitment, and voluntary resignations. The authors recommend implementing a formal information dissemination system, promoting delegation of authority, and fostering open communication for conflict resolution. The study also reviews existing literature on conflict, defining different types, including affective, substantive, and conflicts of interest and values, while also categorizing conflict based on organizational level, such as intrapersonal, interpersonal, and intergroup conflicts. Desklib provides access to this case study along with a wealth of other solved assignments and resources for students.

International Journal of Business and Management Future
Vol. 1, No. 1; 2017
Published by Centre for Research on Islamic Banking & Finance and Business
32
Causes and Effects of Workplace Conflict in Midland Bank Ltd: A
Case Study on Dhanmondi Branch
Md. Kamrul Islam1 , Rezaul Karim2
1+2Department of Business Administration, Atish Dipankar University of Science & Technology, Banani,
Dhaka-1213, Bangladesh.
Correspondence:Md. Kamrul Islam,Department of Business Administration, Atish Dipankar University of
Science & Technology, Banani, Dhaka-1213, Bangladesh ,E-mail: [e-mail]
Received: September 11, 2017 Accepted: September 14, 2017 Online Published: September 16, 2017
URL: http://www.cribfb.com/journal/ijbmf
Abstract
Conflict is one of the major organizational phenomena. Where there is an employee involvement, conflict is
obvious to occur. Workplace conflicts happen everywhere and ignoring them can be costly. The objectives of
this research are to identify the causes and effects of workplace conflicts and also forecast the ways for the
prevention of the occurrence of conflicts in future. A survey was carried out in this regard among the employees
of Midland Bank Ltd., Dhanmondi Branch. According to the survey we found that it is the employees’ behavior
that causes conflicts in organization. Majority of the participants in the survey agreed that the main causes of
workplace conflict are the negative criticism & gossip, denying personal mistakes, jealousy, and moral
corruption and using abusive language. The effects that workplace conflicts have in this organization are broken
relationship (top most reason), instability and insecurity, loss of commitment to work, voluntary resignation etc.
It is recommended that bank should introduce a formal system of information dissemination, manager should
learn to practice delegation of authority and there should be adequate interaction and dialogue in conflict
resolution.
Keywords: Conflict, Workplace, Causes of Conflict, Effects of Conflict.
1. Introduction
Conflict is inevitable among humans. When two or more people come in contact with one another in attaining
objectives their relationship may become incompatible, inconsistent or incongruent. Actually conflict is the
perception of differences in interests among people. Conflict at workplace can be seen between individuals
involving colleagues, peers, superiors and subordinates. It can also be between groups involving teams or large
group of employees and management. Generally conflicts are seen in four level namely intrapersonal conflicts,
interpersonal conflicts, intra-group conflicts and intergroup conflict. Midland Bank is one of the fourth
generation scheduled private commercial bank of Bangladesh. It was incorporated on March 20, 2013 under the
companies Act 1994. Although it is new but it is a fast growing modern baking organization. The Bank started

Causes and Effects of Workplace Conflict in Midland Bank Ltd.: A Case Study on Dhanmondi Branch
Md. Kamrul Islam and Rezaul Karim
33
its banking operation on June 20, 2013. Employee conflict in banking organization is an important issue for
branch manager, top level manager, owners, regulatory authorities, and other concerned persons interested in
understanding the nature of organizational behavior and organizational process. As the banking organization
deals with financial transaction; so conflict must be dealt there in first hand. Nonchalance attitude, any linger,
prolonged decisions, poor guidance in conflict resolution can bring disaster for the organization.
2. Literature Review
According to Stoner and Freeman, (1992), “a conflict is defined as a disagreement between two or more parties
with perceived incompatible goals or interests. This disagreement can be about the allocation of resources or
clashes regarding goals, values, and so on that can occur on the interpersonal or organizational level.” Many
authors define conflict in various ways; the common point in the definitions offered though is the parties’
perceived incompatible goals or interests. Similarly, at workplace there are numerous interests are represented
by the parties converging at that location for a common cause-work. Management of such interests therefore,
requires dynamic, proactive and creative conflict management systems put in place to ensure a vibrant favorable
work environment. According to David Laton (2008), conflict arises from disagreements over the goals to attain
or the methods used to accomplish these goals.
2.1Complaints
According to Collins S.D (2009), “A complaint is an expression of divergence in opinion or the viewpoint
between two parties reflecting one party’s dissatisfaction.” A complaint is a lower level of conflict. Its
resolution requires minimal and mutual commitment and engagement from the two parties.
2.2 Disputes
According to Collins S.D (2009), disputes have their origins in disagreements between the individuals. The
disagreement becomes a dispute when one or the other party cannot accommodate the consequences of the
disagreement, and insists on having it resolved because the party feels interests are undermined when the
disagreement remains unresolved. When the dispute is not resolved in due time, it degenerates into a conflict
2.3Workplace
The workplace is defined by Masters, M.E and Albright R.R (2002), as “the setting in which work is
performed”. It can be interpreted as a physical location at which people interact in the process of producing
goods or services for an organizational purpose.
2.4Conflict at Workplace
At workplace conflict tends to manifest in two broad categories:
 It can be a conflict between individuals involving colleagues, employees and their managers. In this
way, it may be that two workers simply don’t get on; or that an individual has a grievance against their
supervisor or manager.
 It can be also between groups involving teams or large groups of employees and management. Conflict
may take the form of rivalry between teams; or it may be apparent by the lack of trust and cooperation
between large groups of employees and management.
On the broad side, Pondy cited by Afzalur (2011) has argued that organizational conflict can best be understood
as a dynamic process underlying organizational behavior.According to Roloff (1987, p-496), cited by Warren.O.
Lokke (2013, p-6), organizational conflict occurs when members of one group engage in activities presumed

Causes and Effects of Workplace Conflict in Midland Bank Ltd.: A Case Study on Dhanmondi Branch
Md. Kamrul Islam and Rezaul Karim
34
incompatible with the interests of colleagues within their network , members of other groups, or unaffiliated
individuals who utilize the services or products of the organization. Some of the manifestations of conflict
behavior are expressing disagreement with the opponent, yelling, verbal abuse, indifference and interference.
2.5 Types of Conflict
Conflict may be classified on the basis of its sources or on the basis of organizational level.
2.5.1 Affective Conflict
According to Afzalur, R.M (2011), affective conflict occurs when two interacting social entities while trying to
solve a problem together, become aware that their feelings and emotions regarding some or all issues to the
conflict are incompatible. This category of conflict is labeled psychological conflict, relationship conflict,
emotional conflict or interpersonal conflict.
2.5.2 Substantive Conflict
Afzalur R.M (2011), precise that substantive conflict occurs when two or more organizational members disagree
on their task or content issues. Jehn (1997) cited by Afzalur characterized this type of conflict as disagreements
among group members’ ideas and opinions about the task being performed, such as disagreement regarding an
organization’s current strategic position or determining the correct data to include in a report.
2.5.3 Conflict of Interest
According to Afzalur R.M (2011), this type of conflict occurs when each party sharing the same understanding
of the situation, prefers a different and somewhat incompatible solution to a problem involving either a
distribution of scarce resources between them or a decision to share the task of solving it. Common practice in
the Public Service Sector points to where senior staff directs juniors but remain behind to observe how the
young staff struggle with performance to meet targets and produce results. When such targets become untenable,
the senior staff returns to the juniors for the blame.
2.5.4 Conflict of Values
According to Afzalur R.M (2011), this conflict occurs when two social entities differ in their values or
ideologies on certain issues or aspects. This is also called ideological conflict. This conflict may affect
employees work relationships when their ideological beliefs collide with institutional work requirements.
2.5.5 Goals Conflict
According to Afzalur R.M (2011), this conflict occurs when a preferred outcome or an end-state of two social
entities becomes incompatible. When one party perceives its interests to fall victim of denigration by the other
party, victimization perception arises and then conflict occurs.
2.5.6 Classification of Conflict Based on Level
Afzalur M.R (2011), has classified organizational conflict based on the level of analysis. Conflict may be
classified as intra-organizational (i.e within organization) or inter-organizational (conflict between two or more
organizations). Intra-organizational conflict may also be classified on the basis of level: individual, groups, etc.
On this basis, intra-organizational conflict may be classified as intrapersonal, interpersonal, and intra-group and
inter-groups. Severally, intra-party conflict may affect the organization where the grieved employee pursues
restoration of the harmed interests against the will of the organization to which the employee serves.

Causes and Effects of Workplace Conflict in Midland Bank Ltd.: A Case Study on Dhanmondi Branch
Md. Kamrul Islam and Rezaul Karim
35
2.5.7 Intrapersonal Conflict
According to Afzalur, M.R (2011), intrapersonal conflict is also known as intra-individual or intra-psychic
conflict. This is a conflict that happens inside the person’s conscience. It occurs when an organizational member
is required to perform certain tasks and roles that do not match the employee’s expertise, interests, goals, and
values and prompts the concerned party to rebel against the given orders.
2.5.8 Interpersonal Conflict
Afzalur, M.R (2011) states that interpersonal conflict is also known as dyadic conflict.It refers to the conflict
between two or more organizational members of the same or different hierarchical levels or units. The conflict
between the two entities happen when one party trespasses the interests of the other and efforts to settling such a
dispute remain uncooperative.
2.5.9 Intergroup Conflict
Afzalur, M.R (2011) also identifies intergroup conflict as interdepartmental conflict. It refers to conflict between
two or more units or groups within an organization. Conflict between headquarter and field staff, labor and
leaders or management are examples.
2.5.10 Intra-group Conflict
Intra-group conflict refers to the incompatibility, incongruence, or disagreement among the members of a group
or its subgroups regarding goals, functions or activities of the group. Jarboe and Witteman define, “An
intra-group problem exists whenever a group member perceives a difference what is presently occurring
between him or her and the group and he or she desire to occur.” (Rahim, 2011)
Dysfunctional Outcomes / Effects of Conflict:
According to Rahim (2011), effects of conflict can be categorized into following parts:
 Conflicts may cause job stress, burnout and dissatisfaction.
 Communication between individual and groups may be reduced.
 A climate of distrust and suspicion may be developed.
 Relationship may be damaged.
 Job performance may be reduced.
 Resistance to change can increase.
 Organizational commitment and loyalty may be affected.
3. Objectives of the Research
The study objectives focus on compiling a report on the causes and effects of workplace conflict at Midland
Bank Ltd. Among the specific objectives the study intends:
 To identify the causes of conflicts at workplace.
 To identify the effects of conflicts at workplace.
 To identify how to solve those conflicts and forecast the ways for the prevention of the occurrence in
future.
4. Methodology of the Research
The paper is exploratory in nature and the study is mainly based on primary data and information. A survey
includes a questionnaire was conducted regarding causes of workplace conflicts and its probable effects on the
organization. The sample size for the survey was on 10 employees. Random sampling technique has been used

Causes and Effects of Workplace Conflict in Midland Bank Ltd.: A Case Study on Dhanmondi Branch
Md. Kamrul Islam and Rezaul Karim
36
in this study. For better understanding the causes and impacts of conflicts in banking organization; conflict
related books, articles and essays have been reviewed.
5. Analysis of the Survey
Table-1: Causes of Conflict at Workplace
Causes Strongly
Agree
(%)
Agree
(%)
Disagree
(%)
Frequency
(No. of
participation)
Criticism & Gossip 50 30 20 10
Denying Personal Mistakes 50 30 20 10
Employees Misconduct 30 50 20 10
Stressful Environment 30 50 20 10
Envy/Jealous 40 30 30 10
Moral Corruption 40 30 30 10
Abusive Language 30 30 40 10
Professional Malpractices 20 20 60 10
0% 20% 40% 60% 80%
Negetive Critism …
Employees…
Envy/Jealous
Abusive Language
Disagree
Agree
Strongly Agree
Table-2: Effects of Conflicts at Workplace
Effects Strongly
Agree (%)
Agree (%) Disagree (%) Frequency
(No. of participation)
Broken Relationship 70 20 10 10
Employee Instability 60 30 10 10
Loss of Commitment to
Work
60 30 10 10
Voluntary Resignation 30 50 20 10
Forceful Resignation 40 40 20 10
Moral & Physical Injuries 30 50 20 10
Institutional Impact 30 50 20 10
Decreased Productivity 50 40 10 10

Causes and Effects of Workplace Conflict in Midland Bank Ltd.: A Case Study on Dhanmondi Branch
Md. Kamrul Islam and Rezaul Karim
37
Findings of the Research
 According to the survey it is found that it is the employee’s behavior that causes conflict in
organizations.
 Majority of the participants in the survey agrees that negative criticism & gossip, denying personal
mistakes, envy/jealousy, moral corruption, employee’s misconduct, abusive language etc are the main
causes of conflict in workplace.
 Most participants disagreed that professional malpractice cannot be a cause of workplace conflict.
 The effects that workplace conflicts have on an organization are broken relationship among employees
on top most, followed by employee instability and insecurity, loss of commitment to work, voluntary
resignation, resignation, moral & physical injuries and decreased productivity.
 Few participants even disagreed that workplace conflicts does not have any effect on institutional
impact, moral and physical injuries of employees and forceful and voluntary resignation.
 It can also be seen that Midland Bank does not have adequate room for decision making.
 There is no proper system of information dissemination to all employees.
 Less adequate interaction and dialogue in conflict resolution.
 There is no training workshop for employees on conflict resolution procedure.
Recommendation of the Research
Arising from the findings of this study, the following are herewith recommended for Midland Bank Limited
 To avoid rumor mongering, Midland Bank Limited should evolve a proper system of information
dissemination to all and sundry.
 Managers should learn to practice delegation of authority to members of staff in the lower cadre.
 Participatory, rather than autocratic style of management should be encouraged.
 There should be adequate interaction and dialogue in conflict resolution.
 Competition for supremacy should not be the priority of the staff of Midland Bank Limited but rather
working together in peace and unity to achieve a common goal for the good of the organization should
be encouraged.
 Training workshops should be organized for employees of Midland Bank Limited on conflict
resolution procedure.
 Ensure regular monitoring to prevent negative criticism and gossiping that might occur in the
workplace.
 Provide supportive management system to regularly assist employees who are less efficient so that they
won’t deny personal mistakes in future preventing any type of conflict.
Conclusion
It is quite evident that conflicts occur in organizations as a result of competition for supremacy, leadership style,
scarcity of common resources etc. This reduces staff satisfaction about the job and also reduces productivity or
service rendered. Thus, early recognition of the conflict and paying attention to the conflicting parties is very
important. Negotiation between parties involved is the best way to resolve conflict while force should not be
used at all. Darling and Fogliasso (1999) conclude that it is impossible to eliminate conflict totally. Mangers
who try to eliminate conflict will not last long, while those who manage it well will typically experience both
institutional benefits and personal satisfaction.

Causes and Effects of Workplace Conflict in Midland Bank Ltd.: A Case Study on Dhanmondi Branch
Md. Kamrul Islam and Rezaul Karim
38
References
Collins, S.D. (2009). Effective Communication. Jessica Kingsley Publishers.
Darling and Fogliaso (1999). Conflict Management across cultural boundaries; a case analysis
from a multinational bank. MCB UP Ltd.
David Laton (2008). Causes and impacts of conflicts at workplace. Public Service Commission
Rwanda.
Jarboe, S.C. & Witteman H.R.(1996). Intra-group conflict management in task-oriented groups.
Small group research, 27, 316-333.
John, K.A. (1997). A qualitative analysis of conflict types and dimensions in organizational
groups. Administrative Science Quarterly, 42,530-557.
Masters, M. E. and Albright R.R. (2002). The complete Guide to conflict resolution in the
workplace. AMACOM Publisher.
Pondy, L. (1992). Reflection on organizational conflict. Journal of organizational Behavior, 13, 257-261.
PSC of Rwanda (2014). Causes and impacts of conflicts at workplace:
https://www.google.com/search?q=causes+and+impacts+of+conflicts+at+workplace&ie=utf-8&oe=utf-8
[Extract on 23 Aug.2016].
Rahim, M. A. (1986). Managing Conflict in Organizations. Praeger Publishers, New York.
Rahim, M. A (2000). Managing conflicts in organizations (Westport, CT: Quorum Books).
Rahim, M. A. (2001). Managing Conflict in Organizations. Praeger Publishers, New York.
Roloff, M.E.(1987). Communication and Conflict. In C.R. Berger & S.H. Chaffee (Eds.).
Handbook of Communication Science (PP.484-534). Newbury Park, CA: Sage.
Stoner and Freeman (1992). Management. Prentice Hall.
Warren. O. Lokker (2013). Patient care complaints management. Vancouver Island Health Authority.
Copyrights
Copyright for this article is retained by the author(s), with first publication rights granted to the journal.