Abstract:

This research aimed to study the contribution of team cohesion in team relationship conflict and team conflict management to team performance. Data was obtained from questionnaire distributed to team members in Micro Banking in Solo. The methodology employed was Structural Equation Model for the hypothesis proposed. The result of research showed that the team cohesion mediated positively the relationship  conflict and conflict management to team performance. This finding supported the hypothesis stating that the effect of conflict and management on performance was mediated by team cohesion. Then, relationship conflict directly affected cohesion and performance negatively. Empirically, this research concluded that conflict and its management affected team performance. Team performance played an important role in protecting the team from negative effect of conflict and contributed to maximizing the team performance. The generalization of research finding should be taken into account to the condition of Micro Banking members in Solo.