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IMPACT OF INTERPERSONAL RELATIONSHIP SKILLS ON ORGANIZATIONAL

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 International Journal of Human
Capital Management (IJHCM)

Vol 1(1), pp 1-16, December 2022

IMPACT OF INTERPERSONAL RELATIONSHIP SKILLS ON ORGANIZATIONAL

PERFORMANCE

BY

PROF. OYADIRAN PHILLIP A., DR. MUSA F. ISHAQ, DR. YUSUF LAWAL
Department of Public Administration, Faculty of Management Sciences, University
of Abuja, Nigeria.
AND

OTU JOSEPH AYI

PhD Student, Department of Public Administration, Faculty of Management Sciences,
University of Abuja, Nigeria.

ABSTRACT

Social interaction within the workplace is an important factor to achieving the goals of
organizations. This paper focused on the impact of interpersonal relationship on organizational
performance. The main objectives of the study are to identify the kinds of interpersonal relationship
skills in organisation, importance of interpersonal relationship to organizations and the impact of
interpersonal relationship skills on organizational performance. Social Exchange Theory
propounded by George Homans in 1958 was adopted and the major thrust of the theory is costs
and benefits derived from relationships between two or more people in the organization. The study
adopted content analysis whereby data was derived from secondary sources such as journal
articles, books and periodicals. From the discussion, it was revealed that interpersonal
relationship skills such as conflict management skills, communication skills, positive attitude, good
leadership skills and team work play significant role in improving organizational performance. To
avoid strife, anger among employees and low performance, the organisation must imbibe these
interpersonal skills mentioned above.

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INTRODUCTION

Aristotle once said ‘Man is a social being’. He can’t survive in isolation. Thus human interaction
occurs on daily basis in our society and it is vital to our survival. Formal organizations are
established to meet specific goals and objectives and human beings (employees) are saddled with
responsibilities to achieving the short and long term goals of the organisation. An organisation
consists of men and women from different ethnicity, opinions and religious belief system.
Interactions among employees could result to differences in opinions, break down of
communication and strife among employees. If the people that make up the workplace will not
relate positively with one another then, the goals of the organisation can hardly be achieved. When
strife, jealousy, hatred, bias, backbiting, witch-hunting, all of these can hampered the performance
of the organisation.

Interpersonal relationship is a definitive management function which helps to establish and

maintain mutual line of communication, understanding, acceptance and cooperation between an
organization and its individual workers. It involves the management to keep opinions, defines, and
as well emphasizes the responsibility of management to serve the human interest. However,
interpersonal relations has long attained professional status but it has been discovered that most
organizations are not taking full advantage of its efficient utilization when dealing with their
workers due to ignorance or improper understanding as to the effectiveness of the discipline to
organizational success. Interpersonal relationships at work have an advantageous impact on both
organizational and individual variables. Obakpolo (2015) has demonstrated that friendships at
work can improve individual employee attitudes such as job satisfaction, job commitment,
engagement and perceived organizational support. In addition, Song and Olshfski (2008) and
Morrison (2009) observed that employee’s negative work attitudes can be mitigated when peers
act as confidants to discuss bad and unpleasant work experiences. In today’s corporate world, there
is a need for work to be done as quick as possible, and for this purpose, working professionals need
to have good relationship with each other. Healthy professional relations can be maintained by
effective workplace communication and team work. Interpersonal relationships gradually develop

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with good team participation with other members. On the other hand, these relationships may
deteriorate when a person leaves the group and stops being in touch (Stephen, 2010).

Organizations are managed and administered by chief executive offices, managers/ administrators
working in a web of interpersonal relationships. The organisation is structured in a way that there
are various departments or units having their specific functions to perform. Employees occupy
these positions within the organizations and interactions must abound within the work space.
Information is shared within management and employees and reactions is bound to occur. In the
view of Agba (2018), interpersonal communication and relationship is one of the significant factors
for the establishment and development of the organizations and the advancement of society in all
its ramifications. Interpersonal relationships and communication can serve as an important
mechanism through which the effectiveness, efficiency and quality of services rendered by
organizations are gauged, evaluated and measured.

STATEMENT OF THE PROBLEM

Organizations are established to achieve stated goals and objectives and these set goals are
measured by comparing actual achievements against set goals, the efficiency of business functions,
area, processes and balancing expenditures against returns (Smith, 2019). Performance of members
of any organization depends on the ability to effectively interact with their superiors, subordinates
and co-workers within the organization and consumers, suppliers and general public outside.
Interpersonal relations, therefore is a very important issue involving any organization.
Some organizations have people problems rather than business problems. Employees’ problems
are due to faulty interpersonal relations, faulty conditions of service, poor working environment,
poor communication channels which hinder the attainment of organizational goals. Interpersonal
relationship at work constitutes the day today interaction between co-workers or managers and
employees. These relations are a natural part of work environment and are usually pleasant and
creative, but sometime, the source of conflict or tension and frustration (De Dreu, 2003).

Formal organization is made up of employees, having men and women from different ethnicity
and religious belief systems. These elements could result to differences in opinions, break down
of communication and strife among employees. If the people that make the workplace will not
relate positively with one another then, the goals of the organisation can hardly be achieved.
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OBJECTIVES OF THE STUDY

The main objective of this paper is to examine the influence of interpersonal relationship skills on
organizational performance. The specific objectives include the following:

i. To examine the concepts of Interpersonal Relationship and Organizational Performance

ii. To identify the types of Interpersonal Relationship skills in an Organisation iii. To

ascertain the importance of Interpersonal relationship skills within an organization

iv. To find out the impact of Interpersonal Relationship Skills on Organizational Performance.

METHODOLOGY

The paper utilized documentary sources in the form of content analysis as its methodology. Data
for this paper were derived from journal articles, textbooks, Internet articles, official documents
and periodicals.

THEORETICAL FRAMEWORK

This study was hinged on Social Exchange Theory propounded by George Casper Homans in the
year 1958. This theory emphasises on “give and take” and this forms the basis of almost all
relationships though their proportions may vary as per the intensity of the relationship. In a
relationship, every individual has expectations from his/her partner. A relationship without
expectations is meaningless. The social exchange theory is hinged on the premise that social
interaction and relationships between people is formed through a process of cost benefit analysis.

According to Social Exchange Theory, the reciprocation of emotions and feelings is one of the
fundamental reasons for a long lasting relationship between individuals. Individuals go into
relationships to gain one or two benefits. An individual invests his time and energy in relationships
only when he gets something out of it. There are relationships where an individual receives less

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than he gives. This theory is relevant to this paper because the organisation consists of individuals.
The organisation exists within the social environment and interaction is inevitable at the
workplace. Employees are expected to work in harmony to ensure the actualization of the general
and specific goals and objectives of the organization. An organisation where there are cordial
relationships among employees tend to achieve better results than one characterized by frosty
relationships between and among employees.

Figure 1: Describing the impact of Interpersonal Relationship Skills on Organizational

Performance

EMPLOYEES

(Different ethnic,
religious groups, age,
sex, educational
qualification,
temperament etc)

Interpersonal
Relationships Skills
Improving Quality/
(Conflict management,
Quantity of
empathy,
Tasks/Efficiency
communication, team -
building etc

Figure 1 depicts the way and manner the attributes of employees affect their interactions within
the work place and its impact on the performance of the organisation. Employees are made up of
values, norms, principles derived from religious belief, education, experience based on age,
traditional based on ethnic or tribal affiliations etc. All these individual characteristics are carried
forward into the organisation work space. In the daily routines in the workspace, all these
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characteristics are displayed. For instance, employees who are easily angered tend to display their
outburst when provoked and this could result to physical confrontations thereby disrupting cordial
relationships within the work place.

CONCEPTUAL REVIEW

Interpersonal Relationship

There is a plethora scholarly definition of the concept interpersonal relationship. To some, the
interpersonal relationship within the organizational space while others focused on the social
interaction outside the formal work space. However, this paper is restricted to the social interaction
within the formal working environment. Interpersonal relationship within the working
environment could mean a strong association among employees or individuals working together
in the same organisation. One can describe the concept as close association, solidarity, intimate
and close association that exists between and among individuals within an organisation. The human
factor is fundamental in an organisation because of coordinating and managing of other resources
thus the need for interpersonal relationship is germane to organizational performance.

Writing on interpersonal relationships in the workplace, Reich and Hershcovis (2011), succinctly
observe, interpersonal relationships are inevitable reality for all those working in organizations.
Similarly, Jahoda (1982), argue that, outside the family circle is an employment setting that
provides a social context and demonstrates a daily reality that no one is an island and that the
purpose of collectivity goes beyond the purposes of an individual worker. Studies on science of
interpersonal relationships in the workplace have been largely lopsided focusing on the negative
effects of interpersonal relations on the performance of workers and organizations.

Put differently, the effects (positive and negative) of interpersonal relationships in the workplace
is largely conditioned by the nature of interpersonal relationships existing between and among
workers in the organizations. If such interpersonal relationships are cordial, purposeful, and
effective, then its effect on the performance of the organization and workers will be positive.
Otherwise, the effective will be negative requiring urgent human resource management decisions
to arrest the situation. (Agba, 2018).

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Workplace interpersonal relationship is the social association, connection or affiliation between
two or more people in an organization. Developing interpersonal relationship is a serious business
that yields dividends to those committed to it. Maxwell (2004) observed that a thing brings two
persons together to make them remain in the context of relationship. Such things may be common
interest like desire, aspiration or a goal. More so, workplace interpersonal relationship is the type
of relationship that exists between employee to employee, superior to subordinates, employed and
employee in any organization. This kind of relationship can be formal or informal. However,
relationship is born, fed, nurtured and it grows. It is born at the level of acquaintance relationship;
it is fed at associate relationship and is nurtured at friendship. It is very important to emphasize
that relationship is the ladder to your gain or pain and therefore, it must be consciously handled. It
does not come by chance, but it is a social work to be done because interpersonal relationship is a
social link between two or more people (Obakpolo, 2015).

Workplace interpersonal relationship is a very important issue that influences the level of employee
productivity in any organization. Members or employees should effectively interact with their
superiors, subordinates, and co-workers within the organizations. How they relate with the
customers, suppliers and general public outside the operational base of the organization determines
their level of viability and productivity. Previous studies on interpersonal relationship revealed that
the enterprise is the operation of employee behavior based. The greater the density of relationships
within the organization, the greater is the impact on organizational efficiency and productivity.
(Lee and Dawes, 2005; Tsui, 2000).

ORGANIZATIONAL PERFORMANCE

Performance has been one of the topical issues for managers of organizations. The business
environment is a dynamic and evolving one. The core aim for the establishment of any organisation
is to meet set targets and objectives. Objectives of the organisation can be for long term or short
term and there is always need for judicious use and allocation of available resources to meet goals
of the organisation. Achieving the goals of the organizations is summed up as performance.
Performance is a measure of the efficiency of a person, machine, factory, system in converting
inputs into useful outputs. Productive workplaces are built on team work and shared vision.
Workplace performance is essential to employees, employers and organisation. The more the

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economy grows, the more unemployment will decrease, raising the standard of living for everyone.
Therefore, workplace productivity is pivotal for economic growth. Being productive is
fundamental to business success as well as personal satisfaction.

Organizational performance is the amount of goods and services that a worker produces in a given
amount of time. Workforce or organizational performance is a measure for an organization or
company, a process, an industry or a country (Goodman, 2003).

Organizational performance can be looked at the level of individuals working within the
organisation. At individual level certain parameters are used to measure the performance level of
employees.

At individual level performance can be measured in the following ways:

i. successful completion of assigned tasks

ii. number and quality of work iii. skills

and knowledge of performer iv. problem-

solving skills

v. monitoring and decision- making).

vi. Creativity of employees vii. Enthusiasm viii.

Initiative ix. Commitment

x. Interpersonal relationships

xi. Innovation xii. Flexibility

The general performance of organisation is largely dependent on performance at the individual

level. Employees are paid wages/salaries and other incentives to motivate them to exert energies,
skills to ensure organizations meet her set goals and objectives. The aforementioned measurement
of organizational performance at individual is vital for growth and survival of every organisation.

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INTERPERSONAL RELATIONSHIP SKILLS IN ORGANISATIONS

Formal organizations consist of people who are saddled with the roles of ensuring organizations
meet their set goals and objectives. In achieving this, employees, there are certain determining
factors and one of such is interpersonal relationship skills. This paper highlights and discusses the
following s some of the core interpersonal relationship skills within the organisation:

i. Conflict Management: Conflict is bound to happen within the organisation due to several
reasons. Conflicts may occur due to differences in thinking or ideologies, ambiguity of
roles. This involves conflict resolution (identifying the solution and arriving at a
consensus), constructive criticism (it is performed with compassionate attitude towards the
person qualified for criticism), counseling (offering necessary advice), mediating and
problem-solving.

ii. Leadership Qualities: Leadership qualities entail ability to encourage others, inspire trust,
ability to instruct, motivation skills, positive reinforcement, visionary etc. Leadership style
is a key determinant of the success or failure of any organization. A leader is a person who
influences, directs and motivates others to perform specific task and also inspire his
subordinates for efficient performance towards the accomplishment of the stated corporate
objectives.

According to Michael (2011) leadership has a direct cause and effect relationship upon
organizations and their success. Leaders determine values, culture, change tolerance and
employee motivation. A leader’s style of administration may favour or discourage
employee workplace interpersonal relationship and moderate their level of productivity in
the workplace.

iii. Empathy: Management or superiors should listen and express compassion towards issues
bothering employees. Empathy can be expressed in form of care, compassion, diplomacy,
respect, diversity and inclusion, kindness etc. Some organisations have welfare policies for
staff which encourages empathy.

iv. Listening: Listening is one of the fundamental interpersonal relationship skills. It is a

social skill that is so vital and aids communication. Listening entails concentration and
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 attention during verbal or oral communication between two or more people. Listening skill
helps to develop curiosity, focus and inquiry. It causes employees to feel valued and
respected. Employees have feelings, emotions and they can be angry or depressed.
Management who listens to the plight of the employees on harsh or unfavourable working
conditions may have better output from their employees. Listening too can be done among
employees. A good listener is a good observer, rational thinker and the possibility for he/she
to make rash decisions is minimal.

v. Positive Attitude: Attitude of employees is key to achieving the set objectives of the
organisation. One of the reasons for the implementation of reforms within the public
service in Nigeria is to improve the work attitude of public servants. Attitude can be
infectious and as such it is important for employees to imbibe positive attitude. Employees
with right work attitude do not participate in unethical behaviour. Positive attitude includes:
rapport building, friendliness, humour, networking, social skills, zealousness, commitment.

vi. Teamwork: Teams are fundamental aspects of organizations. Composition of teams makes
the organisation achieve its goals and objectives much faster. Team within the organisation
consists of individuals who share the same or similar work ethics, norms or values.
Bringing people together with same work ideologies can improve interpersonal
relationship. Teamwork is an important factor in enhancing interpersonal relationship
within an organisation. Teamwork functions with good communication, listening to others,
peer motivation and collaboration.

vii. Communication Skills: Communication within the organisation can be in form of verbal
and non-verbal. Verbal or oral communication deals with written and spoken language. Put
differently, it entails the use of words to pass information or express ideas or feelings. Non-
verbal communication on the other hand is important aspect of interpersonal relationship.
Interaction between individuals takes place every day. Communication is made to convey
important information which has to be acted upon. It can also be in form of complementary
remarks, jokes etc. Non-verbal communication deals with body language. It involves the
use of body demonstrations, posture etc to express feelings and

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 pass information. Factors to consider when assessing employees with right body language
are eye contact, facial expression, gestures, posture and body position.

IMPORTANCE OF INTERPERSONAL RELATIONSHIP SKILLS IN

ORGANIZATIONS

Organization consist of a group of people with similar aims, objectives, goals and insights who
cooperatively joined hands together to achieve what individuals cannot achieve in isolation under
an effective coordinating mechanism. However, in any organization that is goal-oriented, workers
cooperative efforts coupled with their level of interpersonal relationship tend to influence the entire
work-group performance.

Individual spends around eight to nine hours in his/her organization and it is practically not possible
for him to work all alone. Human beings are not machines who can work at a stretch without
interactions. Interpersonal relationship has a direct effect on the organization culture.
Misunderstandings and confusions lead to negativity at the workplace. Conflicts leads nowhere
and in turn spoil the work environment.

Having employees caring co-worker around us can relief work tensions or depression. We need
colleagues to fall back on at the times of crisis. If you do not talk to anyone at the workplace, no
one would come to your help when you actually need them. An individual needs to get along with
fellow workers to complete assignments within the stipulated time frame. An individual working
all alone is overburdened and never finishes tasks within deadlines. Support of fellow workers is
important. You just can’t do everything on your own.

IMPACT OF INTERPERSONAL RELATIONSHIP SKILLS ON ORGANIZATIONAL

PERFORMANCE

In achieving the goals of the organizations, it means employees imbibe the right and expect form
behaviours within the work place. Organization consist of a group of people with similar aims,
objectives, goals and insights who cooperatively joined hands together to achieve what individuals
cannot achieve in isolation under an effective coordinating mechanism. However, in any

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organization that is goal-oriented, workers cooperative efforts coupled with their level of
interpersonal relationship tend to influence the entire work-group performance.

Scholars have carried out studies on the impact of employees’ attitude to organizational
performance. One of such studies is that of Gyan and Yadav (2022). They discovered that high
performance results from appropriate behaviours, especially discretionary behaviours and the
effective use of the required skills, knowledge and competencies. Positive work attitude entails the
acceptable behaviours in the organisation and these could include zealousness and promptness,
empathy, friendliness and others will improve positive work atmosphere and improve interactions
between or among individuals within the workplace.

Communication cannot be erased from organisation’s activities. Employees must communicate

with each other. Management of the organisation must relay policies of the organisation to the
employees and these are done through channels of communication. For organizations and human
as a social being, communication has a vital importance and is considered as an inseparable piece
of life and also it has an important role on all activities aimed at achieving organizational objectives
(Ada and Alver, 2008).

It is the glue that binds people together in an organization. In the view of James and Nickson
(2013), communication skills play a pivotal role in all types of relationships whether it is personal
or professional. A healthy employee relationship ensures a positive environment at work and also
helps the employees to achieve their targets at a much faster rate. Employers who have open lines
of communication with managers are more likely to build effective work relationships with those
managers, increase their relational identification, enhance their performance and contribute to
organizational productivity (Tsai, Chuang and Hsieh, 2009). Notably, there is strong evidence that
different aspects of effective management communication such as high frequency, openness and
accuracy, performance and feedback, and adequacy of information about organizational policies
and procedures are positively related to employee’s performance and organizational productivity
(Asamu, 2014).

Obakpolo (2015) opined that the level of compatibility, communication and interaction settings
between workers goes a long way in either improving or hindering interpersonal relationship in

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workplace as valued interpersonal relations positively impact individual attitudes, opinions and
organizational outcomes such as performance and productivity.

The failure or success of the organisation is also dependent on the type and effectiveness of
leadership qualities and skills. Leaders are very powerful and they influence behavior of their
subordinates. A good leader can be a source of motivation or demotivation. Michael (2011) notes
that leadership skills or qualities have a direct cause and effects relationship on organizations and
their successes. The culture, values or norms are majorly determined by leaders in the organisation.
Leaders who have good leadership skills may settle conflicts amicable, promote positive work
attitude and build effective teams.

Furthermore, McGrath and Macillan (2000) reported that there is a significant relationship between
leadership styles and organizational productivity. Effective leadership style is seen as a potent
source of management development and sustained competitive advantage. Leadership style helps
organizations to achieve their current objectives more efficiently by linking job performance to
valued reward and by ensuring that employees have the needed resources to get the job done. Sun
(2002) compared leadership style with leadership performance in schools and enterprises, and
found that leadership style had a significantly positively correlation with organizational
performance in both schools and enterprises.

Avraham and Guy (2022) examined the power of listening and its impact on organizational
performance. They discovered that listening is linked with the success of organisation. They posit
that listening has impact on performance, leadership, quality of relationships, job knowledge, job
attitudes and well-being of the employees.

Conflict is investable in the workplace because of the different personalities, cultural and
educational backgrounds of employees. Conflict may arise due to poor allocation of resources,
poor communication, ambiguity of roles and others. Conflict management skills can impact
positively on the performance of organisations (Okpalibekwe, Oyekwelu and Dike, 2015; Uwa,
2014 as cited in Adilo, 2019). Conflict management skills such as mediation, negotiation, problem
solving can resolve conflicts among employees and improve interpersonal relationships.

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CONCLUSION AND RECOMMENDATIONS

This paper examines the impact of interpersonal relationship skills on organizational performance.
Humans are social beings and live in a world where interactions must take place for better co-
existence. Employees are considered the most important element of the organisation and their
interactions with one another play significant role to the performance of organization. The
organisation consists of individuals from different ethnic, religious, education backgrounds as well
as diverse personality traits thus the need for an efficient interpersonal relationship skill is
inevitable for the actualization of goals and objectives of the organisation. Social exchange theory
adopted by this study explains that relationships between individuals are tied to cost and benefits.
People within the organisation relate with each other based on what they are expected to get. The
study concludes that a work place filled with strife, anger, bitterness, malice and lack of
communication may affect the actualization of organizational goals and objectives. Managements
and employees of organisations can avoid frosty relationships leading to low performance by
efficiently utilizing the skills of conflict management, positive work attitude, communication
skills, team work, listening and good leadership skills.

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