The Moderating Role of Affective Interpersonal Conflict on Managerial Decision-making and Organizational Performance in Private Sector Organizations: A Study of Ghana

Abstract

The issue of interpersonal conflict has been a thorny issue in high-power distant environments due to disagreement and divergence of superior and subordinate views resulting from managerial decision-making. This work looks at the moderating role of affective interpersonal conflict on managerial decision-making and organizational performance. A quantitative methodology was used to sample 197 managers from 10 private sector organizations in Ghana. By means of structural equation modeling and hierarchical regression, findings showed that there is a significant positive relationship between managerial decision-making and how organizations performance. Findings also showed that there is a negative relationship between affective interpersonal conflict and organizational performance. Our major finding revealed that affective interpersonal conflict moderates the relationship between managerial decision-making and organizational performance. The article recommends prudence in decision-making by managers in the sub-Saharan African business environment. Prudent decision-making by managers is akin to ethical decision-making, which resides in moral and theological philosophies that are fundamentally in the realm of management and business and are also concerned with explaining and predicting employees’ actual behaviors.