To enhance performance of employees of commercial banks, it is imperative to improve harmony, develop favorable relationship and alleviate relationship conflict among them. To ascertain the viability of assertion, sample of 450 individuals belonging to different commercial banks was selected. Questionnaire comprising three components were sent directly to the sample target. Part first relates to general information, second part consist of relationship conflict, and last part relates to the employee’s performance. The study delineates that relationship conflict has significant impact on employees’ performance. Their performance depletes ranging between 28 percent and 46 percent due to relationship conflict. The model is significant at the 95% of confidence level (p This study provides novel results regarding previously unexplored domain of relationship conflict and employee’s performance. Relationship Conflict is dangerous for organizations employees, so top hierarchy strives to get rid of relationship conflict rather than relegating its resolution. Management in organization establishes redress grievances & interactive cell comprising senior, middle and lower level management. Special strategies may be adopted to lessen relationship conflict amongst the employees of an organization enabling organization to improve their performance. It is imperative to provide smooth functioning in the commercial banks due to their promising role in today’s scenario of economic growth and imbued consumer’s expectation. This paper is an endeavor to unveil factors impinges disagreement among employees and subsequently yielding the solution. Adoptions to these solutions being novel in nature would enhance employee’s performance in commercial banks considerably.