Effectiveness of Conflict Handling Procedures

Today the businesses operate in a very turbulent and competitive environment. Organizations face competition from various players where, to carryout business much more emphasis needs to be given. The customers have lot of choices where the organizations needs to distinguish their offerings and must add value to win customers. In the course of the business is to attain its objectives, the key element of the business which is the human being or the people play a key role (John, Darling & Walker, 2001). Successfully managing the people element will ensure business success. As such, the dynamics of human behaviour needs to be mobilized or associated towards the business vision. In the process, preserve harmony, teamwork, job contentment will increase human yield in an organization (Amason, 1996). Here, managing conflicts is one key area among other aspects of organizational behaviour the business must focus on in order to maintain job satisfaction, productivity and goal accomplishment.

As human beings network in organizations, different values, perceptions and rapidly changing environment could create conflicts among people. Conflict can thereby be identified as a condition in which two or more individuals functioning within one unit appear to be behaviourally irreconcilable (Onishi & Bliss, 2006). Conflicts can arise due to a multiplicity of factors such as individual differences in goals, expectations, values, proposed course of action, task interdependency, status inconsistency, ambiguities, communication problems, lack of performance standards etc and even for factors like changes in technology, global shifting of power, political unrest and financial uncertainties. These factors and many other factors make conflict a reality.

Conventionally, conflict within an organization has been seen as a sign of a dilemma. Conflict meant there were differences of opinions and perceptions towards business process. But as to the modern view, conflict is considered as a constructive concept. Where if a conflict exists, that means somewhere down the line, something is happening differently than an organization likely and someone is exaggerated as a result (Armstrong, 2006). In a conflict situation employees tend to tell their exertion to their employers and the organization realizes that there is a problem where they have to deal with in a proper manner to reduce the negative impact it will have on the business.

Conflicts are foreseeable in organizations. Having conflicts could breed quality in the business process. However, there continuation of conflicts inside an organization has to be minimized. If conflicts are too much it will have unconstructive impact on employee performance, cause stress causing problems on the results accomplishment (Amason, 1996).. In an organization where there is no substantiation of conflicts, it could point out that the conflicting has not surfaced yet. Of not reflected through employee behaviour due to many reasons. Even though employers observe that there is no conflict at present, these conflicts will come out in the future, and make a unenthusiastic impact and unless they are identified at the level of materialization and managed. Further to endure in the market and to carryout businesses, it is necessary to identify factors that cause conflicts to manage them. In the past management theorists used the term ‘Conflict Avoidance’. But it’s impossible to eliminate conflict entirely. Today this phrase is increasingly replaced with the phrase (and concept) of conflict management (Gerard & Callanan at el, 1999).

Conflict management recognizes that while conflict does have connected costs, it can also bring with it great benefits. Managers may feel uncomfortable with conflicts and may see it as something to be suppressed in all situations. But a more realistic, practical view of argument presents a different picture. As a result, conflicts should be managed properly and if organizations do it in an effective way, conflicts fosters an understanding and appreciation of differences, it presents new and different possibilities where new opportunities flourish and organizations can attain many reimbursement. However, it could be understood, whether conflicts within an organization is viewed as advantageous or not, the significant fact is that conflicts needs to be recognized, accredited and dealt with in order to ensure business stability and growth.

With the above, explanation on the need to manage conflicts in organizations when we turn to the Sri Lankan context, one could observe that Sri Lanka as an example of a conventional society where aboriginal dispute resolution processes were replaced with a British legal system, and where there is evidence of a revival of Original Dispute Resolution system (ODR) in community and industrial contexts. Conflict management is not a new concept to Sri Lanka. Even from the Buddha’s teachings of the sources of conflicts which are inconsistent perceptions, cravings, pride and arrogance, ill-will, and aggression which develop from those inconsistent perceptions, it can be presumed that it is an old concept. Later, Sri Lankan adapted approaches relating to native teachings, however upon the British arrival such approaches being eliminated and introduced the court system.

The legal system in Sri Lanka is not operating effectively and as a result the conflict resolution systems are not performing well resulting in poor industrial relations within the organizations in Sri Lanka. This nature should be transformed where to manage the organizational conflicts there should be proper approaches which are functioning effectively. The organizations should comprehend the importance of conflicts and the benefits that they can expand by managing such conflicts. If they do so, all the parties can gain benefits via capitalizing on the opportunities which would arise as a consequence of conflict management (Gerard & Callanan at el, 1999). The approaches or styles of managing conflicts can lead to conclusion of conflicting situations or it may some times create new conflicting situations in an organization. This research intends to study the effectiveness of conflict management approaches presently used by Sri Lankan indigenous businesses.


As peoples’ needs & wants boost with the development in the economy & society, they tend to be more competitive in achieving their individual objectives (Armstrong, 2006). As a result, conflicts inside the organizations would also amplify. Thus it is imperative that employers manage these conflicts in order to progress efficiency as well as profits. When considering Sri Lankan organizations, the strategies employed to solve conflicts has given rise to more conflicts & ultimately it results in depletion of time & money. Therefore this study would help to find out whether these strategies have actually achieved their objectives in solving conflicts effectively.

In common scenario of the literature, even though there are an immense number of researches based on conflict management, they do not specifically focus on evaluating the effectiveness of these strategies (Gerard & Callanan at el, 1999). Even though conflict management is an essential phenomenon when it comes to Sri Lankan organizations, there is scarcely any research that has been carried out focusing on the effectiveness of the conflict management approaches in Sri Lankan businesses. Despite above mentioned reasons as I have a personnel interest on this topic; I hope to gain an in-depth knowledge of the subject through conducting a research on this topic. Because of these factors and the consequence of conflict management and its approaches, I chose this topic to do my study (Gerard & Callanan at el, 1999) . As to the literature, conflict management can be highlighted as a very ancient concept. Even though it is reasonably old, still the companies find many issues when it comes to dealing and managing conflicts. Most of the organizations have identified the importance of identifying and managing conflicts because of the communal benefits they can attain by dong so, but when it comes to practicing such approaches in managing conflicts, organizations still face many issues. When it comes to Sri Lankan organizations, they adopt certain strategies to manage conflict within the organization which would be granting birth to some more conflicts (Amason, 1996). As such, the conflicts are one of the major obstacles to maintaining peace, harmony and job satisfaction leading to high employee turnover and increasing costs due to continuous recruitments etc.

As such studying, the nature of conflicts emerging in Sri Lankan businesses, how they are dealt with and what approached they use and their effectiveness and identifying and recommending effective models would be beneficial to stability and growth of Sri Lankan businesses (Amason, 1996).. When looking at past literature, it is evident that this has not studied in the context of Sri Lankan businesses. This study aims at filling this gap in the literature. This research is will therefore focus on analyzing the effectiveness of the conflict management approaches in Sri Lankan organizations.

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4.1. Research Scope

In order to address the research issue of this study, data will be gathered from Lanka Orix Leasing Company. The study will focus on the supervisory level employees in the organization. They would include junior executives, team leaders and allied levels. The data will be collected from a sample of the target group consisting of 45 respondents

4.2. Research Questions

Researcher expected to raise and answer following question during the course of research project

What is the nature of conflicts emerging in (LOLC)?

What are the conflict management approaches adopted by LOLC?

How effective is the current approaches in managing conflicts in LOLC?

What remedies available for LOLC in managing conflicts effectively?

4.3. Research Objectives

Research expected to explore existing situation to attain following objectives

To identify the commonly used interpersonal conflict management approaches in LOLC.

To assess the effectiveness of the interpersonal conflict management approaches used in LOLC.

To identify the areas for change if any in comparison to appropriateness of interpersonal conflict management styles in LOLC.


Traditionally, conflict is arising from opposite interests of the individuals who are party to it and also would occur because of scarce resources, goal difference and frustration (Mack and Snyder, 1957; Pondy, 1967; Schmidt and Kochan, 1972). As to the leanings of Buddhism, conflict and misery arise from inconsistent perceptions, and the cravings, pride and arrogance, ill-will, and aggression which develop from those inconsistent perceptions (Palihawadana, 2003). Most of the times conflicts have emerged in mixed-motive relationships where persons have competitive as well as cooperative interests (Bacharach and Lawler, 1981; Kochan and Verma, 1983; Walton and McKersie, 1965). Thus the competitive elements would generate the conflict and the cooperative elements would create the incentives to bargain to reach an agreement between parties (Deutsch and Krauss, 1962).

As for the present context, researchers have defined conflict in broad terms. The conflict is perceived as unmatched or discrepant views among the parties who are party to it (De Dreu et al., 1999; Jehn and Bendersky, 2003). Conflict in modern organizations comprises employee-employer disputes, subordinate disputes, and includes all kinds of issues, not only employment considerations (Rowe and Bendersky, 2003). Conflict is a multipart phenomenon which involves the thoughts, emotions, behaviours and unconcealed actions of the people who are party to it (Thomas, 1992). Because of the chaotic environment which the organizations are functioning, the organizations itself have to execute its business conduct in meeting turbulent, the demands of rapidly changing environment. Because of this nature, the sources of conflicts have also enlarged and as a result organizations face greater challenges when dealing with these situations.

Number of researchers, using various theoretical perspectives, have researched and found the importance of conflict when making decisions in organizations as well as in social life (Amason, 1996; Anderson, 1983; Cosier, 1978; George, 1974; Gruenfeld, 1995; Mason and Mitroff, 1981; Peterson and Nemeth, 1996; Schweiger et al, 1986; Tetlock et al, 1994). Traditionally managers carried out their role doing anything and everything to maintain the serenity in the organizations. But as to the modern view conflicts must take place in the organization where it gives a sign to managers that there is something going on which needs the manager’s attention. (Nurmi and Darling, 1997). The signals which are given by these conflicts are seen as a signs of an effectively operating organization (Hellriegel et al., 1995).

When conflict exists in an organization it designate that the employees are allowing emerging their problems in front of managers rather than hiding them that could lead to catastrophic ends in the future. Conventionally in organizations managers tried to eradicate conflicts. But as to today’s businesses it’s renounce unfeasible to eliminate conflicts. As an alternative it must be managed with benefiting both the employees and the employers. To determine and manage conflicts it is crucial to observe the root cause of the conflicting situation which is a elementary teaching in Buddhism, which tells to let go of exclusivist or stringent positions; to reject violence and; to practice right speech, which indicates speaking only the truth; and to practice patient negotiations until a constructive solution which benefits both the parties have found. (Palihawadana, 2003). Some managers perceive conflicts as negative, which cause disharmony within the organization and they implement activities to avoid those at all costs. But for some managers conflicts are positive aspects which help to identify opportunities and to capitalize such opportunities by managing those conflicts in an effective way (Darling and Fogliaso, 1999). A conflict change the organizational activities thereby adaptation of new strategies which would assure the long-term stability of the business via gaining success in many forms (Walton, 1976). Effective managers take conflicts as positive signs where they use them productively for personnel development on improve problem solving, increase critical alertness and self appraisal, and to address values which are conflicting when taking decisions (Blome, 1983).

In western counties like USA, has increasingly moved toward Alternative Dispute Resolution (ADR) as a means to manage workplace disputes and to reduce costs associated with conflicts. Workplace ADR refers to the use of alternatives to lawsuit for the resolution of workplace disputes, which include third-party processes such as facilitation, mediation and arbitration. Another accepted integrative dispute resolution process which can be highlighted in the USA is the interest-based mediation (Fisher et al., 1991), which is widely used to resolve work place related disputes (Kochan and Lipsky, 2003). When we consider about the cross-cultural conflict management literature and Pinto’s (2000) notion of “original dispute resolution” (ODR), it’s presumed that mediation can be a appropriate mechanism to resolve workplace disputes despite the existence of a transplanted western legal system. Mediation is the original form of dispute resolution. Based on five years of professional experience in organizational development projects to promote industrial peace in Sri Lanka (Reade and Reade McKenna, 2006), When we talk about history of Sri Lanka, According to some writers, Consensus-based dispute resolution in Sri Lanka originates from earliest times, 425 BCE (Herat, 1988; Rubasinghe, 1996). The win-win resolution of disputes made popular in the modern world by Professors Uri [sic] and Fisher of the Harvard Negotiation Project was first introduced to the world by Lord Buddha (Daily News Online, Legal Aid Page, Colombo, Sri Lanka (Daily News Online, 2006).

From the industrial context, Sri Lanka’s management of labour relations is rated as highly challenging (WEF, 2004). These factors, along with the ongoing civil conflict in the north of the country, weaken the country’s opportunities to attract and retain foreign direct investment (WEF, 2004). As to the legal scholars, the unfavourable nature of the legal system in Sri Lankan is the prominent factor contributing to poor industrial relations in the organizations (Amerasinghe, 1999). The Community Mediation Boards being successfully generated consciousness among Sri Lanka’s industrial relations stakeholders in the likelihood and the importance of using mediation to resolve industrial and workplace conflicts.

Interest-based mediation was a real success in resolving industrial and workplace conflicts in the United States (Fonstad et al., 2004; Kochan and Lipsky, 2003), and because it well-matched with Sri Lankan values, In 2003 legislation was adopted granting the Sri Lankan Minister of Justice the authority to expand the scope of the Boards to mediate industrial disputes. The Employment Mediation Services Center, which is in cooperation governed by employer and union representatives, provides mediation services as well as training to increase the competence of managers, union representatives, and employees to resolve conflicts more collaboratively at the venture level.

Today organizations are undergoing rapid change, and this change naturally gives birth to conflicts, which may require ground-breaking methods for it to be effectively managed (Constantino and Merchant, 1996; Rowe and Bendersky, 2003). Managers who carryout work to eliminate conflicts, those companies would not last for long. While those managers who take actions to manage it would achieve both organizational and personnel benefits (Darling and fogliasso, 1999 and Nurmi and Darling, 1997).As pointed out by Palihawadana (as cited in Read and Mckenna, 2007, p. 113), in the Sri Lankan context, to resolve and manage conflicts it is essential to observe the root cause of the conflicting situation which is a fundamental teaching in Buddhism, which tells to let go of exclusivist or firm positions; to reject hostility and; to practice right speech, which indicates speaking only the truth; and to practice enduring discussions until a favourable solution which benefits both the parties have found.

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Conceptual Framework

A good conceptual framework identifies and labels the important variables in the situation that are relevant to the problem defined. It logically describes the inter connections among these variables. According to this specific research, there are three types of variables which are independent, dependant and moderating. The perceived relationships developed by the past researchers in relation to the above mentioned variables are shown by the following conceptual framework:

Independent Variables






Dependant Variables

Mutual Relationships

Employee Job Satisfaction

Extent to which the Parties have Reduced Conflict Issues

Moderating Variables


Hierarchical Status

Source: Authors own construct

Research Question

Related Literature

What is the nature of conflicts emerging in (LOLC)?

John R. Darling and W. Earl Walker, (2001),Use of effective conflict management: use of the behavioural style mode, Leadership & Organization Development Journal

How effective is the current approaches in managing conflicts in LOLC?

What are the conflict management approaches adopted by LOLC?

Carole Reade and Mark Reade McKenna, (2005), from antiquity to the factory floor: Reviving “original dispute resolution” in the Sri Lankan subsidiary of a multinational enterprise, International Journal of Conflict Management, Vol. 18 – This explains the nature and typical conflict handling approaches in Sri Lankan Contest

What remedies available for LOLC in managing conflicts effectively?

Lourdes Munduate, Juan Ganaza, Jose M. Peiro and Martin Euwema, (1999) Patterns of styles in conflict management and effectiveness, International Journal of Conflict Management, Volume 10

Source: Authors own construct


The research approach

To improve the quality of research findings and their clarity researcher expecting to use the positivism approach which will focus on recuperating the understanding of the various matters come up from the data gathered. The basics of positivism is initiation in the direction of the realism approach to greater intelligibility and proficiency, thus, it will support highlighting many possible reasons in relation to current scenario of LOLC. Further quantitative approaches purposely deal with mathematical capacities which are unsurprisingly the conventional scientific approach in psychological studies. Additionally the ideal methodologies of research studies can be recognized as pragmatic, hypothetic-deductive and experimental psychology. In contrast quantitative approaches aim to test hypotheses that typically spotlight on identifying numerical differences between sets.

However in contrast, qualitative approaches deal with how people comprehend their life experiences and events. These approaches engage broader academic analysis of quantitative approaches where such scrutiny tends to indicate certain exertion with naturalism. Continually naturalism is the purpose of the methods of the natural sciences in to the study of social or psychological occurrences. Such qualitative methods characteristically aim at scrutinize meaning, and has chosen for the investigation of issues which, for principled issues, sensible problems which generally difficult to measure. Some are presenting these approaches as dual hostility to one another; but they can also be used to harmonize one another. This research is to be conducted based on positivism in order to enhance the quality of data analysis and evaluation, where such will focus on improving the understanding of the various imprecations arising from the gathered data. The ground rule of positivism is that the commencement towards the sensibleness in approach to superior precision and efficiency since, it will facilitate many possible reasons in relation to current state of affairs of LOLC.

The research strategy

In evaluation of data it is expected to demeanour this research based on the deductive approach as it is enhancing the edifice of this research to greater extent. Further such approach may allow researcher to simplify the analysed data such that realism in the industrial environment can be explored in an competent and effective manner. Deductive approach persuade researcher to extent the focus up to the ground level where conflict handling measures are adequately highlighted. This research look for an explanation and relationships between variables as well as reasons behind an industrial situation, researcher has decided to use the deductive approach. Research involves carrying out a survey; therefore quantitative data will be gathered.

Saunders et al (2002) point out that the case for a deductive approach, where researcher would be able to abolish biasness in data analysis. Inductive method is where researcher observe and logically establish a general proposition based on observed facts where deductive method is arrive at a reasoned conclusion by logical generalization of a known fact. (Sakaran, 2003).

This study would be carried out in deductive manner, extracting literature from literature and proving those concepts which are in line or does not go in line with selected organizational perspective. On the other hand deductive approach encourage researcher to extent the focus up to the basic stage where employee conflict handling approaches are sufficiently highlighted. Given that my research seeks an explanation and relationships between variables as well as reasons behind an industrial situation, researcher has decided to use the deductive approach throughout the research.

6.2.1. Justification of the Research Strategy of the Study

The dominant strategy used in carrying out this study is the survey strategy. In order to justify the reasons behind selecting this particular research strategy as the central strategy, it is significant to look at the research questions raised, the degree of control the researcher need to have over the research setting and also whether the researcher is focusing on a modern-day or a momentous event.

6.2.2. Probability Sampling Methods

Random Sampling is the purest form of probability sampling. Each member of the population has an equivalent and recognized chance of being selected. When there is a very bulky population, it is often difficult or impossible to identify every member of the population, so the pool of available subjects becomes biased.

Systematic Sampling is often used in its place of random sampling. It is also called an Nth name selection technique. After the required sample size has been calculated, every Nth record is selected from a list of population members. As long as the list does not contain any concealed order, this sampling method is as good as the random sampling method. Its only improvement over the random sampling technique is straightforwardness. Systematic sampling is regularly used to select a specified number of records from a computer file.

Stratified Sampling is commonly used probability method that is superior to random sampling because it reduces sampling error. A division is a subset of the population that share at least one universal characteristic. Examples of stratums might be males and females, or managers and non-managers. The researchers first categorize the applicable stratums and their actual demonstration in the population. Random sampling is then used to select a satisfactory number of subjects from each stratum. “Sufficient” refers to a sample size large enough for us to be logically confident that the stratum represents the population. Stratified sampling is often used when one or more of the stratums in the population have a low incidence relative to the other stratums.

6.2.3. Non probability Sampling Methods

Convenience Sampling is used in exploratory research where the researcher is involved in getting an economical approximation of the truth. As the name implies, the sample is selected because they are expedient. This non probability method is often used during preliminary research efforts to get a gross estimate of the results, without incurring the cost or time required to select a random sample.

Judgmental Sampling is a common non probability method. The researcher selects the sample based on verdict. This is usually and addition of convenience sampling. For example, a researcher may decide to draw the entire sample from one representative city, even though the population includes all cities. When using this method, the researcher must be confident that the chosen sample is truly representative of the entire population.

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Quota Sampling is the non probability equivalent of stratified sampling. Like stratified sampling, the researcher first identifies the stratums and their magnitude as they are represented in the population. Then, expediency or judgment sampling is used to select the required amount of subjects from each stratum. This differs from stratified sampling, where the stratums are filled by random sampling.

Snowball Sampling is a special non probability method used when the desired sample characteristic is rare. It may be extremely difficult or cost prohibitive to locate respondents in these situations. Snowball sampling relies on referrals from initial subjects to generate additional subjects. While this technique can dramatically lower search costs, it comes at the expense of introducing bias because the technique itself reduces the likelihood that the sample will represent a good cross section from the population.

Methods of data collection

Data-collection techniques allow us to systematically collect information about the objects of study (people, objects, phenomena) and about the settings in which they occur. Data collection is an imperative aspect of any type of research study. Inaccurate data collection can impact the results of a study and ultimately lead to invalid results. In other words, if data are collected haphazardly, it will be difficult to answer the stated research questions in an authentic manner. As to the research carried out by Onishi and Bliss (2006) respondents were asked to envisage a situation in which they are involved in a conflict with a co-worker. They were asked to indicate how much they agreed or disagreed with each of statements describing how they might act to resolve conflict. For all items, responses were coded on a five-point Likert scale, with of 1 (strongly disagree) and 5 (strongly agree).

According to Thomas, Tjosvold and Johnson, 1989 (as cited in Munduate, Ganaza, Peiro and Euwema, 1999, p. 8) effectiveness was assessed using ten 5-point scales for substantive and relational outcomes based on literature review These outcomes included (1) the eventual number of conflict issues; (2) the gravity of those issues; (3) the propinquity to a solution; (4) the chances of recidivism; (5) the quality of concerted task performance; (6) concentration given to areas of common ground; (7) eventual amount of mutual distrust.; (8) ultimate amount of mutual understanding, (9) ultimate atmosphere, and (10) personal association. These scales were combined into one measurement ranging from 1 (very ineffective) to 5 (very effective). Accordingly, when conducting this study, there were several data collection methods which were used as mentioned below.

6.3.1. Questionnaire

A structured questionnaire will be developed by the researcher to gather data from the sample. The questionnaire is prepared by focusing on each and every variable where certain number of questioned were assigned to address each of the variables highlighted in the conceptual framework to gather data on mostly used interpersonal style and to asses their effectiveness focusing on the above mentioned literature.

6.3.2. Interviews

A one to one in-depth interview will be carried out by the researcher using an interview protocol with the heads of the organisations that are responsible for the HRM functions in each of the three organisations in order to validate the data gathered by using the questionnaires.

6.3.3. Testing – pilot survey

Questionnaire design is fraught with difficulties and problems. A number of rewrites will be necessary, together with refinement and rethinks on a regular basis. Do not assume that a researcher will write the questionnaire accurately and perfectly at the first attempt. If poorly designed, the questionnaire will collect inappropriate or inaccurate data and good analysis cannot then rectify the situation.

To refine the questionnaire, the researcher needs to conduct a pilot survey. This is a small-scale trial prior to the main survey that tests the question planning. Amendments to questions can be also be made in the process. After making some amendments, the new version would be re-tested. If this re-test produces more changes, another pilot would be undertaken and so on. For example, perhaps responses to open-ended questions become closed; questions which are all answered the same way can be omitted; difficult words replaced, etc.

It is usual to pilot the questionnaires personally so that the respondents’ reactions can be observed and amended appropriately if necessary. By timing each question, researcher can identify any questions that appear too difficult, and he or she can also obtain a reliable estimate of the anticipated completion time for inclusion in the covering letter. The result can also be used to test the coding and analytical procedures to be performed later.

Accordingly the researcher will carry out the pilot survey on a selected group of executive level individuals who were known to the researcher and got the questionnaire pre-tested before giving it to the actual respondents of the study. There were some questions which could not be understood by the respondents and after evaluating their suggestions necessary alterations were done so as to get the reliable feedback from the informants.

Data analysis

Collected data will be analyzed and evaluated using statistical software and which will be interpreted in a prompt manner

Descriptive Analysis – Past researches on similar variables by Ruyter & Bloemer (1999) have concentrated on use of mean and standard deviation. Descriptive analysis use in an effective manner to analyze the demographic factors and the other data collected from the questionnaires which would ensure the achievement of each objective in an acceptable manner.

Simple Linear Regression – It is recognise that this method as suitable in data analysis of the research based on the past researches which have used Simple Linear Regression Analysis technique in their research in order to measure similar variables by Nguyen & Leblanc (1996). Simple linear regression analysis is to spot relationships between each dependant and independent variable.

Correlation Coefficient – Correlation coefficient measures relationship between two variables (Hanke & Wichern, 2006). Pearson’s product moment correlation coefficient was used in correlation testing, since data gathered through questionnaires which include interval data, where past researches on similar variables by Wong (2004) with interval data, have also used Pearson’s correlation in analysis of the correlations between variables.


Researcher is well aware and accepts the general rules of ethics in conducting this research. In order to ensure, researcher is protected against plagiarism and all data and information is correctly referenced in both terms within the text and at the end. There are many reasons exist for the importance of adhering to ethical norms in research. Fundamentally it is to promote the aims of research, such as awareness, reality, and evasion of error. Additionally it is required to promote the values that are necessary to mutual work, such as trust, accountability, mutual respect, and fairness Most researchers want to receive credit for their contributions and attempt to avoid situations where other steel such ideas and facts without any acknowledgement.


Research is mainly focus on LOLC, still researcher strongly believe that finding are applicable to applicable to all, financial services organizations in both Sri Lankan and suburbs. There is a much more attention toward financial institution by public which is never experience before and on the other hand there is a greater possibility for financial sector firms to become failure. International arena as well as in Sri Lankan context there are many organisations that are experiencing bad outcome; Lehman Brothers – US, City Bank -US, AIG Us and Europe. Under such a bad condition in financial sector no organization required to loose there position in the market due to human resources issues such as conflict. In that dramatic turnaround there are many organisation who operate in same or similar culture would be interested and make use of facts and finding of this research since researcher addressing to a major common problem.


Researcher estimated that following cost to be incurred in conducting this research.

Data collection – £300

Statistical software £100

Editing £150

Stationary and other – £200

Researcher has estimated that minimum of £750 as the estimated cost of the research


To be completed using a Gantt chart

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