| dc.description.abstract | Organizational conflict arises when and if an employee thinks that their goals are under threat
or is being hindered by another person’s activities. Unresolved or poor handling of conflicts
may lead to exit of some employees from the organization. The objective of the study was to
assess how conflict management strategies influence performance of Microfinance
Institutions. The study was guided by the following specific aims, to: explore how
accommodating strategy affects performance of Microfinance Institutions; assess how
dominating strategy affects performance of Microfinance Institutions; determine how
compromise strategy affects performance of Microfinance Institutions, and; examine the how
collaborating strategy affects performance of Microfinance Institutions. The research study
looked at the contingency theory, stakeholder theory and human relations management
theory. The study employed descriptive survey research design. The study targeted 90
managers of MFIs that operate within Nairobi. A census method was adopted by the study.
Questionnaires were used as the research instrument. The researcher confirmed validity of the
instrument by discussing the questionnaire with research project supervisors who are experts
in research. To confirm reliability of the instrument, the researcher did a pilot test. The
questionnaires were administered using the method of drop and pick later. The gathered data
information was coded and then analyzed by use of SPSS. In summary, the regression model
showed: a significant inverse relationship between accommodating strategy and performance
of MFIs in Nairobi; A significant positive relationship between dominating strategy and
performance of MFIs in Nairobi; A significant negative relationship between compromise
strategy and performance of MFIs in Nairobi, and; A significant direct relationship between
collaborating strategy and performance of MFIs in Nairobi. The research deduces that: a
counter association exists between performance of MFIs in Nairobi and accommodating
strategy shown by coefficient value of -0.293 and significance value of 0.008; there exists a
significant positive relationship between dominating strategy and performance of MFIs in
Nairobi shown by coefficient of 0.694 and significance value of 0.000; a negative correlation
exists between performance of MFIs in Nairobi and compromise strategy shown by
coefficient of -0.530 and significance value of 0.003, and that a direct linkage exists between
performance of MFIs in Nairobi and collaborating strategy indicated by coefficient of 1.121
and significance value of 0.000. The study recommended that: Managers should avoid using
accommodating and compromise strategies unless it is very necessary, and; managers should
always use dominating and collaborating strategies as they have direct relationship with
organizational performance. The study proposes that future researchers explore nonfinancial
institutions; other financial institutions and publicly owned organizations. The findings of this
study will be of benefit to various parties. These include managers of MFIs, managers of
other related institutions and businesses, regulating bodies and researchers and scholars. | en_US |
