Research Articles Base: Conflict Management Assessment Sample

The Impact of Conflict Management Strategies on Organizational Climate

The impact of conflict management strategies on organizational climate     Statement of the problem               In every organization, several conflicts are visible from every essential areas and functions of the organization and that there lacks proper handling of people and the organization is without strategies of conflict management, managing the impact of conflict into the organization. Ideally, the ability to take business control of conflict is important as the purpose of this study is to investigate whether the use of certain conflict management strategies, will predict reductions in into workplace conflict as well as role ambiguity, also work overload and time pressure. Research outcomes will indicate that, such conflict management strategies do significantly predict low scores on several specific conflict examples as tested and on levels of overall conflict management impacts.               There can be issues on conflict management effectiveness and how to achieve them according to the principles of the organization and its climate adaptations. The constructive conflict management is a vital concern for every manager. When conflicts are managed constructively they can help identify and solve problems, develop and maintain strong relationships, and sustain member loyalty and motivation. When conflicts are poorly managed they waste time and resources, damage member loyalty and motivation, undermine teamwork, and distort decision-making and planning. Strong productive teams can be maintained only when their members manage their conflicts well.  The organizations attempt to influence members’ beliefs and skills by providing training in conflict management. When team relationships become seriously problematic, some organizations conduct off-site retreats for teambuilding synergy and success, unless the organization’s climate promotes constructive conflict management behaviors, training tends to have frustratingly limited impact, and the beneficial effects of teambuilding retreats prove to be both limited and temporary. It is clear, there should address the impact of organizational climate on the conflict management behavior of members.   Background of the study             The ability to successfully minimize and resolve conflict is an important skill for the organization to develop, as faced with the classic confrontation between individual needs and organizational needs, requiring them to spend a major part of their time attempting conflict mediation.  The “appropriate” management strategy in a given situation requires accurate identification of both the conflict origin and participants and their relationships, in order to apply effective resolution technique.  Ideally, this technique must reduce the dysfunctional dimension of conflict so as to capitalize on its functionality for the good of the organization concerned.  Consequently, there is conflict anticipation and detection should always constitute the first two phases of good conflict management, the pro-action rather than reaction of the issues if there is any. Furthermore, strategies for conflict resolution will vary according to philosophical bases of the ones involved and encompasses win-lose, lose-lose and win-win approaches to conflict management, the impact can be overused as strategy for solving conflicts.  Methodology             The methodology will include usage of organization climate influence as well as power to bring about compliance and compromise. The need to realize win-win approach, the method yields solutions satisfactory to organization team to the conflict wins something, and the conflict is resolved in a constructive manner. An important point must be borne in mind when attempting to deal effectively with organizational conflict, for insurance one method will not apply to situations, as given in various approaches to conflict management. The conflict has been effectively managed when it no longer interferes with the ongoing activities of those involved.  Conflict management is therefore the process of removing cognitive barriers to agreement (1986).  Depending on the situation, conflict management techniques often focus on changing structure, changing process or both. Indeed, structural modifications are not very creative, and the response to conflict is simply more rules and hardening of the role structure.                Aside, if the basis of conflict is lack of trust or suspicion of motives, an effective approach is to bring the parties together and let them get to know each other.  However, if the conflict is rooted in differences in principle, increased interaction could exacerbate the situation, the modifying of reward system can be effective if inequity in extrinsic or intrinsic rewards is the cause of conflict.  An approach to conflict management is predicated upon the idea that diagnosis of the situation is necessary as a basis of action.  The contingency view is that there is not one best way of managing conflict under all conditions, but that there are optimal ways of managing it under certain conditions ( 1987).  An important aspect of conflict management is: alternative ways of managing conflict and kinds of situations in which each of these various alternatives might be expected to be the most effective.              The one good step is to assess the influence of an organization’s climate on members’ conflict management behavior. The Conflict Climate Inventory was designed to assist in this assessment, identified sixteen elements of organizational climate that have been shown to influence the behavior of members when they experience conflict. In interpreting the results of the conflict climate inventory, however, it will be important to bear in mind that “climate” is a holistic concept. Climate acts on individual members as an undifferentiated whole, affecting how they feel, what they notice and think about, and how they behave. Thus, while scores for each of the elements can be very helpful in diagnosing the climate and identifying specific ways to improve it, no score can tell in complete story, the understanding and enhancing of organizational climate remains noted.   Credit:ivythesis.typepad.com

The Impact of Conflict Management Strategies on Organizational Climate

The impact of conflict management strategies on organizational climate Statement of the problem In every organiza...

CONFLICT MANAGEMENT

Organizational Conflict and Management Styles Introduction             The thought of the word conflict usually connotes a sharp disagreement between two or more individuals. Disagreements over interests, issues or ideas are some of the common roots of conflict. In turn, this makes involved parties emotionally troubled; at times, this disturbance causes people to act undesirably towards others. It is said that conflict cannot be avoided especially between individuals or groups of people who regularly work together. This is because working together allows people to use their skills, bring out their ideas and show their personalities. As each person is made unique, personal differences on these mentioned aspects are likely to collide among workers in the organization. While conflict may be inevitable, this common organizational problem can be resolved.               In particular, organizational managers play an important role in ensuring that conflicts in the workplace are resolved effectively. From this point, it is stressed that rather than take a negative behavior towards the occurrence of conflict in the workplace, involved parties and managers should integrate positive forces to prevent the problem from worsening. In order to do these, one must be able to conduct an in-depth evaluation of the causes of conflict; understanding the views of both contradicting parties and exploring possible alternative that can lead to agreement must also be done. By means of adapting certain conflict management styles, managers may be able to maintain harmony within the workplace. Most importantly, if conflicts are handled properly, managers may be able to use this issue as a source of personal and organizational growth. In this essay, focus will be on description of conflict, its sources and its effects. The content and discussion of this paper will be centered on the workplace setting. Finally, the different styles of conflict management that managers may apply will be identified and evaluated.   Conflict: Sources and Effects             According to  (1998), conflict may be defined as the perception of personal differences among individuals. Other meanings of conflict defined the term as the process of social interaction between struggling parties over beliefs, status, power, resources and other desires or preferences. The goal of the contradicting parties may vary from a simple aim of gaining acceptance to securing a resource advantage; in worst cases, conflicting parties will go even to the point of harming or eliminating their opponents ( 2001).               Conflict can result due to a number of sources; in most literature, types of conflicts are often categorized based on the source or origin. Affective conflict for instance is a type of conflict that arises when two contradicting parties have incompatible emotions or feelings. This is why this type of conflict is also termed as relationship, emotional or psychological conflict. According to  (1997), affective conflict happens when interpersonal clashes are observed between the contradicting parties. Oftentimes, this type of conflict is characterized by frustration and anger. When two or more organizational parties argue over content or task issues, substantive conflicts result. Also known as cognitive, task or issue conflict, this type of conflict occurs when group members disagree on each other’s opinions or ideas in relation to the task at hand ( 2001). An example of this conflict is when organizational members disagree on which marketing strategy or alternative is to be applied; arguing over company data to develop a business plan is also a common example.               Organizations also often encounter conflicts due to differing interests. In this type of conflict, two parties realize and understand the problem; however, the solution they intend to use to solve it is different from one another.  Ideological conflict or the conflict of values is yet another source of this organizational problem. Basically, this conflict type occurs when two or more social entities have contradicting ideologies over certain matters. This conflict is often observed in human resource issues especially when one party prioritizes what is best for the company while the other is after the interest of the employees. Conflict may also occur in an organization due to contradicting goals. When social entities have different preferred results or decision outcomes, conflict may also result. A person or group may feel the need to cause conflict so as punish an opponent. This is referred to as retributive conflict. Lastly, conflict may also be considered as displace conflict; this happens when conflicting parties direct their emotional disturbances or negative feelings towards other who are not involved in the issue ( 2001).               Other authors also raised similar sources of conflict in the workplace. In a literature review done by Renwick in 1975 for example, the author noted that intra-organizational conflict occurs due to differences in beliefs, basic values or knowledge; personal dislike; differing attitudes or perceptions generated through organizational structure; and competition for power, position or recognition. Diversity in the workplace is said to be an important aspect for efficient and optimized organizational performance. Diversity does not only pertain to people’s gender, age and race; differences in role expectation. Goals, thoughts and values are also part of this concept ( 1993). The concept of diversity is a notion of individual differences. While others may consider this as a way of expanding one’s perspectives, experience or ideas, diversity may be taken negatively and be seen as a factor that hinders organizational effectiveness. This negative perception on diversity then causes   In the article written by  (1995),      provided a summary of conflict sources by developing the three main levels of organizational conflict. These levels include intrapersonal, intragroup and intergroup conflicts. The researchers stated that intrapersonal conflicts occur when an organizational member is asked to perform a particular task that does not match his of her interest, values, goals or skills. Intragroup conflict on the other hand, happens between organizational members or groups disagree over a certain issue. When the organizational members’ leaders or representatives are the ones arguing, intergroup conflict results.    The effect of conflict to the organization is not purely negative. In some instances, positive outcomes may also arise out of disagreements. For example, conflicts may result to the development of and better goals. Rather than draw contradicting parties apart, conflicts can actually bring people together, resulting to closer interpersonal relations. As conflicts may be taken as a challenge, its presence can motivate others to become more positively involved and committed to the assigned task. Conflicts can also promote better understanding of each person’s personality, views and attitudes. Nonetheless, conflicts in the organization can also result to negative outcomes. The goals of the company for example may be distorted or not reach achievement at all. Conflicts on tasks can cause delays, resulting to resource wastes or misapplication. The emotional impact of conflicts can also cause adverse effects on people and may draw them further apart ( 1991). As conflicts can results to even worst outcomes, it is important that managers apply appropriate conflict management styles.   Conflict Management             Conflicts had been occurring even from way back; thus, traditional methods of managing conflict had been introduced and applied. One of these conflict management styles is through compromise where one party would just have to agree to one side of the argument. Postponement or procrastination is another style of conflict management; in this method, action will be done in order to determine the cause of the conflict while the solution to the problem is delayed. Another traditional method of conflict management is avoidance. Here, both the cause and the solution to the conflict are simply avoided ( 1991).   If these methods will be analyzed, none of these conflict management styles appear to be effective. For one thing, no positive resolution is obtained out of these styles, particularly in postponement and avoidance methodologies. Moreover, the focus is on short-term rather than long-term solutions. In compromise for example, one contradicting side will just have to give in to the argument so as to prevent the conflict from worsening. The postponement technique on the other hand, used the delay factor so as not to prolong the argument. Among other conflict management styles cited, the avoidance strategy is perhaps the most ineffective as there were no effort exerted to resolve the conflict.               As indicated by  (1999), managers must have the confrontation skill in order to handle organizational conflicts. This is because conflicts can be destructive if managers will just choose to avoid or ignore them. Others adapt this behavior of conflict management style in order to avoid hurting others’ feeling or acting impolite. By means of confrontation, conflicting parties are able to face, analyze and settle the issue; they are allowed to generate views and ideas, which can help achieve clear settlement. Aside from these, confronting rather than avoiding the problem generates the feeling that both sides are willing to resolve the matter by hearing each other out. Face to face interaction also exhibits respect, openness and commitment.               The studies of  in 1977 ( 1991) suggested that conflicts should be managed through the same strategies applied for negotiations. These include lose/lose, win/lose and win/win techniques. In the lose/lose conflict management strategy, neither contradicting party wins the argument. Although either party may have benefited from this strategy as the disagreement is immediately addressed, this style may still not be recommendable since no solution is reached. In the win/lose style, the losing party will likely be hostile to the winning party; this negative feelings in turn prevents the losing party from being cooperative and committed to the given solution. In as sense, there is no actual winner in this conflict management style since cooperation and friendship is not achieved.              The win/win strategy is the most effective conflict management style among the three mentioned negotiation strategies. This is mainly because this strategy leads to the most favorable outcome. With this strategy, a solution is developed and all parties involved are satisfied with these solutions (2003). Though the parties may not obtain what they initially intend to achieve, both sides receive at least part of their objectives. As both conflicting parties gained something beneficial out of the disagreement, friendship is established. Furthermore, both are likely to participate in implementing the solution they agreed upon. Although this strategy results to the best outcome, it is the most difficult to apply. Compared to the two other cited styles, the win/win strategy takes the most time, energy and effort. Since both parties would have to benefit in the situation, all possible alternatives would have to be considered.   Though there had been conventional styles and approaches applied in order to manage conflicts within organizations, some modern tools are also integrated in order to promote harmonious working relations and conflict prevention. At present, information technology systems and online collaborative instruments are used by companies in order to ensure that all members of the organization are able to communicate their ideas and opinions easily and effectively. Instant messaging, electronic mailing and voice chatting are some of the known technologies applied today to prevent conflicts in the workplace. Furthermore, conflicts between the company and the customers are also addressed effectively by means of these technologies ( 2004).   Rather than encountering a multitude of barriers before a complaint is forwarded, customers find it easier to use the internet or e-mail so as to receive a faster response or solution. Employees also find this style less stressful since they are given enough time to understand and respond to the problem. Communication technologies are also helpful in preventing the generation of too intense emotions due to conflict.               This approach can be effective as conflict prevention is more advantageous than curing an actual conflict. In this case, conflicts are totally prevented, harmonious working relations are maintained and no time and energy for discussions are wasted. However, others do not see it as useful. In fact, it is often considered as the coward’s choice for handling conflicts. Some think that this only gave organizations a way to evade complaints and issues of conflict.   It is possible that these communication technologies for conflict management may not be as effective as face to face communication. This is because in online communication, no non-verbal cues are observed; in turn, this could increase the likelihood of miscommunication, leading to conflict. Moreover, if this is the only style used by the organization to manage conflict, others who are not familiar with these technologies will tend to keep their issues to themselves.               While there are other possible styles of conflict management, other literatures had stressed that in addition to methodologies, managers must also be equipped with the essential skills so as to address organizational conflicts effectively. For instance, it is essential that managers have the right communication and listening skills for conflict management. It is important that managers must be able to speak up his or her thoughts to others. Without proper communication abilities, employees will just feel frustrated every time a conflict arises. Effective communication also practices two-sided conversation; in this aspect, managers should let the conflicting parties raise their views and reasons. Managers should not refrain from hearing the parties’ inputs and just focus on developing the right solutions.   Listening abilities is also important among managers; in this case, the managers should concentrate on what both sides are saying and not on response for each point raised. The aim of having these important skills among managers is to ensure that a positive environment is observed despite the conflict (2005). The maintenance of a positive environment is not only helpful for developing the right solutions but also in speeding the process of conflict management.               Conflict management also requires the right attitude among managers. For example, managers must be able to handle his or her emotions well. Strong negative emotions such as despair, frustration and anger must be managed well so as not to worsen the situation. Through effective emotional management, respect will be exercised all parties involved. It is essential that managers do not verbally attack employees who are trying to issues of conflict; it is important that managers still see to it that good relations are still observed in the workforce. Rational behavior is also important in conflict management; managers should realize that they have to be connected with the parties at all times so as to understand the situation and implement the proper solutions.   Conclusion             Conflict is a normal occurrence in the organizational setting. In general this can be caused by individual differences on personalities, attitudes, ideas and goals. Managers on the other hand must be equipped with both conflict management skills and styles so as to handle issues effectively. From the evaluation of possible styles for managing conflict, it is clear that all styles have their own positive and negative features. This then suggest that managers should be flexible in utilizing these conflict management styles. In conclusion, it is important that managers should focus on what is best for all parties involved and not on which conflict management style is appropriate.   References: Credit:ivythesis.typepad.com

CONFLICT MANAGEMENT

Organizational Conflict and Management Styles Introduction The thought of the word conflict usually connotes a sharp disagre...

Case Study

1.  What explains the presence of conflict at TVN? Your analysis should be supported by relevant theory and show awareness of the sources of power of the respective parties. Answer:               The case was about the problem faced by TVN in line with their senior management groups and leaders.  Conflict is defined as incompatible activities where people at least temporarily interfere with and obstruct each other’s behavior ( 1973). In addition, it is also regarded as an expressed struggle between interdependent parties based on the perception of incompatible goals (1991;  1987). However, not all conflicts are alike. Conflicts vary according to intensity, number of parties, degree of interdependence, importance of outcomes, power imbalances, and so on. In addition, some conflicts are categorized as disputes.  (1986) suggested that emerging conflicts are disputes in which participants acknowledge the dispute, realize that most issues have been clarified, but are unable to enact workable problem-solving or negotiation processes.   In this case, the conflict is seen in two of the senior management of TVN. i.e.  was the managing director of the company and described as an inexperienced when it comes to television. On the other hand  who had been the acting managing director of the company has been described as an innovator when it comes to television films.  He is also noted for being a well experienced manager. The two different personalities of these senior managements have been the main reason why there is conflict in TVN.  Furthermore, conflicts arise because of the differences in opinions about the needs, goals, interests and priorities of the organization, the poor communication, lack of teamwork and lack of clarity in terms of responsibilities and roles.                In this case, it can be said that the kind of conflict faced by the management is structural conflicts. Structural conflicts are mostly caused in management disagreement or disputes and it usually occurs when workers with differing responsibilities and structure or even personality find themselves in conflict in which both have considerable stakes (2002). Added to this is the structural element of time, which may increase the urgency felt by the two. Solutions to structural conflicts would involve redistributing power and roles, establishing fair criteria for decision making, and changing physical or environmental barriers, perhaps by having pair or small groups for the purpose of relationship building and ongoing dialogue.                are two strong individuals having their distinct style of management, values, beliefs and perceptions. These individual differences are the cause of the conflict since the two could not meet half-way to clear their responsibilities. Further, with their individual preferences, there exists a conflict for having incompatible goals (1989).  Both  only wants the best for the organization, however, because they don’t have a common goal, conflict happens.   Hence, it can also be said that interpersonal style of conflict is also dominant in this case.                 In addition, two parties can have incompatible goals because they play different roles in an organization.  For example,  is in charge as a managing director while  is a programme management. With this differentiation, although considers the goal of the organization, their individual goals have been the main cause of clash between the two of them. Each wants to show that the leadership or management style and goal of one is better than the other.     With this, coordination and cooperation between the subordinates of the two leaders are also affected and that this may lead to separation of groups or individuals.   An important reason why different actors have incompatible goals is that they – be they individuals or groups – value themselves much more highly than others value them. They feel that they are not fully appreciated by others, that they are not receiving their due: students are shattered if they receive a bad grade, employees feel almost invariably that they deserve higher pay; children feel that their siblings are loved more than they are. And, as has been observed by anthropologists, all societies are “ethnocentric,” believing themselves better than others.               Among managers, interpersonal style is the most human, fascinating, and important aspect of any organization. Managers’ individual quirks, strengths, weaknesses, and peculiarities profoundly affect all goals, roles, and decisions. It is noted that one of the things to consider is to look at the impact of leaders on their organizations to see how it reflects their interpersonal styles in hundreds of ways, no matter how large that organization grows.   The biggest conflict in organizations is between what management  calls the administrators and the lunatics ( 1968). Administrators are sensing types who like to make things happen on time, budget, and schedule, according to the rules which can be attached to the personality of . On the other hand, lunatics are the intuitives who do not want to play by any rules—they just want to play the game which is clearly seen in the description of   Another common clash is between a participatory management style and a command-control style.  Both  possess a leadership style as a command-control style or authoritarian style (2003).    In this manner the authority have the right to do the decision making without asking the opinion of the followers.  The leader is this type of leadership tends to tell the followers what must be done in order to achieve the goals or objectives of the organization.   Furthermore, conflict is present at TVN because of the role competition that happens between the groups of   Role conflicts arise when there is dispute, about who is performing what functions, in what manner and with what other members of an organization and this is illustrated in the case.   Every organization, even those structured around work teams, has to specify how work will be done—who has authority, what is the appropriate amount or type of work for a group to take on, what exactly is a group supposed to do to contribute to the overall effort, how that contribution is to be integrated with others’ efforts, how resources are to be divided up. Conflicts with roles generally stem from four problems: overload, ambiguity, overlap, and competition.  In this case, it can be concluded that conflict are present because of the role competition.   Role competition adds an element of nastiness to role overlap conflicts. Groups come to see themselves in competition with each other and no longer believe there is a solution to their conflict. They are ready to fight, to beat the other guy, or seek revenge for past insults. This happens between the group of . Since the group of  believes that the group of  has nothing to do with their responsibilities, problems or conflicts arise.                Aside from interpersonal conflict between  another conflict that can be seen in the case is intergroup conflict. This conflict refers to the collective incompatibility between two or more divisions, departments or subsystems in connection with tasks, resources, information and others. In the case of TVN, intergroup conflict is present between the group of  and the group of (1987) has rightly indicated that, “while intergroup conflict implies each member of a group is in conflict with those of another, quite often the actual dispute is carried out between representatives (e.g., department heads, or labor-management negotiators)” (p. 501).  Like the conflict between   A “law of intergroup conflict” states that all groups are in partial conflict with each other (1968). Intergroup conflict is inevitable in complex organizations. “In complex organizations having differentiated subsystems with different goals, norms, and orientations, it appeared that intergroup conflict would be an inevitable part of organizational life” ( 1967).               Furthermore, the intergroup conflict is present in TVN because of the emergence of an autocratic leader like  Very often it is the aggressive person or the ones who express themselves clearly and well who take over. Sometimes those who like fights emerge in leadership positions. Those members who can provide the best leadership and the most skillful leadership processes often are submerged along with the questioning and sounder thinking which they would foster.   The new leaders) is well accepted by the group and is perceived as friendly and perceptive in the analysis of the other group’s information. There is also greater pressure on the leader or representative to carry out the wishes of the in-group when interacting with the out-group leader or representative.  The new leader may establish a power structure quickly. Emphasis on task attainment is increased together with the emergence of a greater degree of formality and structure.   A structure of interaction is formulated that discourages free exchange of information. Rules and procedures are established prohibiting intergroup communication. All information is screened by group leadership before dissemination. This kind of situation is not new in TVN.  As mentioned,  is an authoritative leader which dictates everything to his group while  has a different style, in this manner, as  tries to rule the group of , the members did not follow his management style which resulted into conflicts between the groups of the two leaders. The reasons that have been mentioned above are clearly seen in the case of TVN, and because of these disputes, individual differenced and others, conflict is present within the company.   2.  Analyze an organization with which you are familiar. Is it an arena where people join together to pursue an organizational goal, fulfilling their own goals at the same time? Or is the organization an arena where people tend to pursue their own goals, using the organization for their own ends? What organizational factors contribute to the situation you describe? Answer:             The competition in the business arena has been very stiff and complex.  In this regard, the organization must be able to utilize a strategy and management system that will enhance the performance of the business so as to outgrow its rivals (2000; 2003). The organization that will be given emphasis in this case is a service organization which is an airline industry. One of the largest service organizations known in the world today are those airline industries.   These industries all over the world are now living in an interesting era.  More and more people have been using these industries for every services and purpose they want and for their travel satisfaction.  The process of change as of the old economy to the new global economy has brought tremendous changes and development to the services being offered.  Part of the changes brought by the competition of these industries globally is the new economics, new market structure, new marketing strategy as well as the new technological structures of each and every industry within the marketing service field.    Nowadays, people are more willing to use the services of the airline industry especially those individuals who wanted their travel to be convenient and satisfying which makes all such industries to be in demand. This Airline began its service on June 18, 1971 with flights to Houston, Dallas, and San Antonio. This Airline industry was a hard birth.             Primarily, the core mission of this industry is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. The company has been the number one carrier in terms of domestic boarding. Yearend results for 2003 marked airline’s 31st consecutive year of profitability. In 1989, the industry has become a major airline when it exceeded the billion-dollar revenue mark. This organization is the only major short haul, with low-fare, high-frequency, and point-to-point carrier in America.    It can be said that the competitive performance of the company can be attributed to its corporate strategy and how the company manages its people.  This organization can be characterized as an industry where people join together to pursue an organization goal, fulfilling their own goals at the same time.  For the management of the company, being able to achieve or reach organizational goal means achieving each and everyone’s goal. In this company, the organizational goal is to provide affordable cost to travelers while having customer satisfaction. In order to achieve such goal, the company utilizes different strategies.   One of the important and impressive strategies utilized by this organization, to ensure that the employees share a common goal is its management-employee relationship. Any organization, may it be profit oriented or not-for-profit, the most vital asset is its employees.  In addition, for these organizations to maximize their assets, human resource management (HRM) should manage the employees’ working condition with intelligence and efficiency (1998).  The employees must be allowed to be involved in making work-related decisions to further enhance the organisational structure (1996).  Furthermore, the structure of tasks among the employees strengthens the organizational performance (1989).    It is therefore necessary to understand the employees to build a good relationship on them (1983).  The development, building, motivation, enhancement, and enrichment of the employees of any organization largely depend on the leadership, mandate, and vision of the human resource management (HRM) of an organization (1999).  According to (2002), the process of making an organization is simultaneously the growth and maintenance of relationships among individuals who are working towards a common goal and the actual accomplishment of tasks, individually and collectively.    It is noted that excellent and exceptional companies must be people-oriented and the highly rated performance of the industry is through the notion of the people who works for the company. According to  (1997, ), the organization that recognize their employees and staff as the basic source of quality and productivity of the organization tends to gain, and this organization treats their workers as important people.     The management of this airline industry shares commonness in their personalities and characteristics (i.e. full of sense of humor and sociable attitude) and they doesn’t imposed personality test among their employees unlike any other companies (1995). In addition, they are not after the skills and ability of the applicants but they are after the good attitude that such employee has.  For them, it is not difficult to enhance once capability but the attitude cannot be changed easily ( 1991). In addition, the Airline encourages their people to develop and express their individuality that in return motivates the employee for being more responsible and independent.  The management sees too it that by giving the employees the opportunity to excel organizational and individual goals are met.   Another strategy of the Airline that shows that each of them share a common goal and work together to achieve such goal is the ability of the leader to manage their organization in a manner that everything and everybody are being taken into consideration.  Having a strong leader and the good management approach combined can truly bring a company to its pedestal.  Open-door policy is being utilized within the Airline.  In this manner, the management allows other members to voice out their opinion and ideas regarding different issues. The ideas and opinions that have been considered will be analyzed and ensured that it meets organizational goals.   Furthermore, the management utilizes a leadership style that is somewhat democratic and authoritative.  Democratic because, employee may suggests certain strategy to be used by the organization like the use of rap-singing in explaining its rules and regulations to achieve their organizational goal of customer satisfaction (1996) and employees often creates and employ solutions to the problems they encountered on the spot instead of waiting for the decision of the top management.  In addition, the management also incorporates equal rights to each and every employee, a certain aptitude that no other company utilizes effectively.               In an organization it is important that the leader or the management must know what style of leadership to be used in order to make the flow of the organization towards the goal or the objective set by the organization. In addition, the leader of the airline can also be described as a charismatic leader which can be seen. Charismatic leaders had the following attributes: a “presence,” a presence of mind, quality of the eyes, physical beauty, use of voice, energy, confidence, and endurance, image of unusual mental attainments, and the power to elicit an almost pathological response from their followers. And these characteristics and values are always being seen to the Airline’s respected leader.   As much as possible, the whole industry tries their best to provide their goal of having affordable yet worthy and satisfying travel for their passengers.  In addition, unlike any other largest airline industry, this airline industry carries their passengers in a point-to-point basis, a strategy that were being patronage by their customers. And lastly, the unique characteristic of not offering anything to passenger such as full service meals and others, but offering only the ability of the employees in amazing, surprising and entertaining the customer by the sense of humor of the staff. These unique and excellent characteristics have made the whole industry become admirable not only in the entire global marketing environment.                         Moreover, the airline industry also sees to it that in order for this airline industry to achieve its organizational goal through its employees they use the concept of empowerment. Empowerment is known as a technique for improving employee satisfaction which is being undertaken by many organizations.  Satisfying the employees can significantly create a good working relationship among employer and the employee and a good reason for the employees to do their best to achieve organizational goal.  It involves responsibility and authority for decisions affecting the workplace, downwards through the organization. Thus, in an organization, employees need to be equally empowered. This empowerment results to an increased competence, self-esteem and self-respect, which are very important to one’s well-being.   Moreover, creating an environment in the workplace that results in employees feeling better about themselves when they are in it results in love of their work. A working environment that constantly raises an employee’s self-esteem, above that she/he experiences anywhere else in their life, will be where she/he most desires to spend their time and yields very high employee satisfaction with their job and costs next to nothing. People do more of what they enjoy and less of what they don’t enjoy. The results also show that people who enjoy working are more productive. Furthermore, analysis shows that in an organization, there is an existing problem that the employees are facing due to their individualities.  Since, they have different personalities and values, they may tend to have difficulty in communicating with other employees, thus result in some conflicts.    It cannot be denied that one of the most important factors for an organization to be successful is to have a harmonious relationship between the management and the employees.  It is essential that the communication provided by the organization is clear and consistent from within all levels of the organization. It must address both organizational and individual employee concerns.       Credit:ivythesis.typepad.com

Case Study

1. What explains the presence of conflict at TVN? Your analysis should be supported by relevant theory and show awareness of the sources...

Dispute Resolution

Financial Services     Overview   The following document is a report on the topic regarding the Dispute Resolution Technique that may be incorporated within an organization’s conflict management system and its issues in the theoretical foundations for using such system within an organization particularly in financial service institutions. This document will also talk about the extent on the technique applies within a systems approach to organizational conflict management, how each technique will present new challenges, cost benefits or risks to an organization (e.g. financial services institution), how it would convince management to implement some subset of these techniques within the organization’s overall conflict management system and how might the techniques improve or change the existing dispute resolution procedures in an organization.     Introduction   For consumers, credit cards serve as a means of payment and as a source of credit. (1991) Credit cards are frequently used for their convenience, and also because they serve as open-ended, easily available credit source. (2000) People need not bring cash or checks, and plus, there are lots of promotions being offered, such as dispute resolution services and bonuses for frequent users, that enhance credit card usage. (2001) One convenience being offered by credit cards is the freedom from having to spend time and effort borrowing from financial institutions; this is one of the reasons why consumers choose to pay high interests for an outstanding credit card balance rather than apply for a loan that offers a lower interest rate (2000).  In accordance, credit cards play a major role for consumers in the global market. (1995) For consumers involved in cross-border transactions, major credit cards and charge cards are fast becoming the universal means of payment. (1995) Moreover, for as early as 1987, the Commission of the European community had already considered cards as the “payment system of the future”. (1995) Meanwhile, for individual consumers, the use of one major card is usually cheaper and much simpler than any other means of cross-border payment. ( 1995) As  (1995) elaborated: “Credit cards also may be the key to resolving a vexing question in the global market-place: how to resolve a dispute with a seller located in another country. For some time now several credit-card networks have offered liberal ‘chargeback’ rights (a refund via the credit card) to the consumers in the event of an unresolved dispute. This procedure is voluntary in the United States, and similar rights exist under common law in the United Kingdom. Indeed, that the US development was voluntary is particularly instructive: increasing consumer confidence in distance selling is seen in the United States as crucial to the growth of this form of distribution. Card associations in the United States will drop merchants from their networks if they cause excessive charge-backs, and report that charge-backs as a percentage of sales have fallen dramatically, to a fraction of 1% of sales. The development of widespread chargeback rights in international transactions will play an important role in the new global market.” However, despite these good features, credit cards have also been associated with the rise of indebtedness. (1998) Between 1990 and 1996, debtors in America pay an average of ,000 per annum in the interest and fees alone for their credit card balance, where interest rates are reaching nearly 20 percent. (1998) While in the United Kingdom (U.K.), official figures show that consumers currently owe a total of ₤52.92 billion (or .60 billion) on credit cards, resulting to a growing concern over a possible increase on personal bankruptcies in the country. If this is the scenario, does this imply that consumer spending is being encouraged by credit cards? (1998) said credit companies are encouraging consumers to borrow more. “Using subtle tactics to encourage borrowing, the recent onslaught has led consumers to hold more cards, to borrow more, and to fork over an increasing fraction of their incomes to the companies. If you don’t borrow, the company may cancel your card, since it isn’t making money on you.” (1998) But is this encouragement enough to instigate consumer spending to a point where consumers can not even well afford to do so? Or are there other reasons for an increase in consumer spending with the use of credit cards? Is it right to implicate credit cards as the factor that can make consumers to buy more, even to the extent of spending beyond one’s resources? With these queries and other assumptions, an in-depth study of the roles of credit cards in consumer spending therefore is needed. Understanding of the implications of credit cards in the context of consumer spending will be a good breakthrough in solving problems of debt and bankruptcies of not only individual persons but also of a country or society are as well. Also, understanding of consumer spending will impart a valuable lesson on frugality. As  (1991) have commented, “A renewed appreciation of the national value of thrift is essential for the future well-being of our economy. But even if we are unable to restore the old positive definition of frugality, at least the history of thrifty ancestors can be a precious memory to treasure as we struggle to survive with a sharply reduced standard of living.” (ix) For years, credit cards have been used as a mode of payment and have provided certain benefits to the users, including merchants and consumers. This development has led to the significant growth in the value and number of credit card transactions made. In this report, a general understanding of the credit card network will be discussed by means of describing its operation, pricing and profitability. With the foregoing impressions of the researcher regarding this dispute, this study hopes to formulate generalizations and recommend quality resolutions.   Discussions   The early twentieth century gave birth to the use of credit cards. However, using credit card as a mean of payment was then limited to some gasoline chains, department stores and hotels. The demand for the provision of credit eventually grew due to the combined forces of mass production, high disposable income and increased mobility of the society. After being lifted from restriction during World War II, trains and airlines began to issue these cards. The further growth of credit cards was particularly stimulated by air travel. Credit cards then serve as secure mean of financing travel. Due to the possibility of loss or theft, credit cards became a good alternative for paying cash. Originally, oil companies issued cards to pay for gas purchases but quickly expanded their use to cover other travel expenses (1972).             Eventually, the universal credit card was distributed by certain vendors with the Diner’s Club in 1949. The card served as a credit reference agency, guaranteeing the credit of customers to those restaurants that joined. The founders of Diners Club introduced no radically new ideas. Rather, they combined a number of well-known and widely used techniques for extending credit and changed the way credit service was delivered to the customer. “The key to their success was their recognition of the need and demand for mobile credit device” ( 1990). The universal credit card represents the development of a trend that was already developing among issuers of consumer credit. During the 1950s, creditors began relaxing credit terms: repayment schedules were extended, collateral was not needed to purchase many items, and down payments were reduced. The good itself became an inducement to accept debt: “Selling consumer credit is, of course, selling debt–a commodity that would generally be an undesirable one as far as the buyer is concerned. The techniques of selling debt today, however, are such that the nature of the commodity for sale is concealed from the buyer” ( 1961). Nowhere, however, is “the loan disguised as a sale” more than with regard to credit cards. Banks came late to the credit card game; Franklin Bank issued the first bankcard in 1951. “According to a report of the Federal Reserve System, of the nearly 200 banks which had credit card plans in force in 1967, only 27 had started their plans before 1958″ (1972). In 1958 a number of large banks entered the credit card business, including Bank of America National Trust and Savings Association, The Chase Manhattan, and others. Until 1965, however, all cards were issued locally. Credit cards including both store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (1997, 2000; 2001;2000). Based on their main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (1999). Convenience users tend to employ credit cards as an easy mode of payment and to typically pay their balance in full upon receiving the account statement. Revolvers, on the other hand, use the card principally as a mode of financing and elect to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits sought from a product or a service are one of the best predictors to explain consumer purchase behavior (1999). The popularity of using credit cards among consumers was due the convenience it provides of not bringing cash or checks. Moreover, the use of credit leads to a limited liability when cards are stolen or lost. Additional enhancements of dispute resolution services and perks such as frequent-use award programs had also led to credit card growth in popularity (1992). Credit cards are predominantly used for various types of purchases like Internet transaction and telephone bills. These cards also serve as an easily available and open-ended source of credit. (2000) reported that the revolving component of consumer credit most of which is generated by credit cards, has increased relative to income over the past three decades. When consumers use credit card as a mode of financing, credit cards compete with bank loans and other forms of financing (1995). Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers’ debt (1992).   Operations of the Credit Card Network                In modern commerce, credit cards serve as a payment device in lieu of cash or checks for millions of routine purchases as well as for many transactions that would otherwise inconvenient, or perhaps impossible (for example, making retail purchases over the internet). Credit cards have also become the primary source of unsecured open-end revolving credit, and they have largely replaced the installment-purchase plans that were important to the sales volume at many retail stores in earlier decades. Consumers use credit cards for two main purposes: as a substitute for cash and checks when making purchases and as a source of revolving credit. In using credit cards as means of payment, one must understand how the credit card network operates. This can be achieved by understanding the various participants involved within the network (2003).                Basically, credit card network participants are composed of the issuers, consumers, acquirers, merchants and network operators. All the network participants are involved in a sequence of interconnected bilateral transactions. The operation of the credit card network may appear complicated at first, with all the complex payment structures and transactions. However, the operation may be understood by a simple example. Typically, a credit card transaction is composed of four participants: the consumer, the issuer or the bank that issued the card to the customer, the merchant and the bank of the merchant (1995). The credit card transaction commences as the customer makes a purchase from the merchant using the credit card. In this case, the merchant receives less than the customer pays to the issuer. For instance, the merchant may only collect out of the 0 purchase. The difference is then called the discount. Hence, there are two ways on how to collect rent: one is by the issuer through the interchange fee and the other is by the merchant bank that collects the difference between the discount and the interchange fee (1995).                Each participant plays a particular role and earns certain benefits out of the operations of the credit card network. For instance the issuers of credit cards gain revenue from the acquirers and consumers. As consumers pay for annual fees, finance charges and other fees like over the limit and cash advance fees, the issuers on the other hand compete for cardholders on different aspects like various fees, finance charges, frequent usage awards and many others. Issuers are paid with interchange fees by acquirer so as to compensate them for maintaining or attracting a cardholder base. These fees are established within the network level. In some areas, such as in the United States, these fees are dependent on the merchant type and other aspects of the transaction, like whether the merchant views the card physically or have it processed electronically (2003). Interchange fees in Australia on the other hand, are the same for all types of merchants. However, they are dependent on whether the payments were made with the cardholder present or not and whether payments were electronically processed.   Pricing Most literature define credit card price as various prices that make up a credit card transaction. It involves the card fee and charges, the merchant service charge, retail prices for card transaction and the interchange fee (2002). The report of the  (June, 2001) suggested: “Analysis of the trends in credit card pricing in this report focuses on credit card interest rates because they are the most important component of the pricing of credit card services. Credit card pricing, however, involves other elements, including annual fees, fees for cash advances, rebates, minimum finance charges, over-the-limit fees, and late payment charges. In addition, the length of the “interest-free” grace period, if any, can have an important influence on the amount of interest consumers pay when they borrow on their credit cards.” Credit card pricing has changed from past several years as many card issuers that in the past offered programs with a single price to now offer a broad range of card plans with differing rates depending on credit risk and consumer usage patterns. Moreover, as noted, many issuers have also moved to variable rate pricing that ties movements in their interest rates to a specified index such as the prime rate. From the beginning, issuers have utilized risk-based pricing methods by initially setting the interest rate to a consumer. Based from credit bureau aspects, issuers evaluate the customer’s default risk and charge the customer a premium for that risk. Typically, the premium is reflected in the annual percentage rate (APR) that is stated in the card solicitation or application (2003). By charging consumers with the same rate, issuers are able to gain high profit from consumers with low default risk. The excess profit may be used to cover the defaults produced by customer with increased risk. Eventually, the nominal APR of the card became a competitive element and driving force towards the massive adoption of risk-based pricing. Later, the use of risk based pricing has widened and used to modify consumers’ APR after using the account. This strategy is called penalty APR, which enable issuers to regulate customers’ nominal APR that are no longer in line with the original APR. In addition risk-related fees have also been introduced in credit card pricing. These fees include bounced-check fees, over-limit fees and late fees. These risk-related fees help recompense issuers for increased default risks of some consumers ( 2003). Indeed, credit card pricing has undergone several significant changes for the past years. The simple pricing model of APR that is made up of an annual fee and modest penalty fees has been transformed into a new model with a complex series of APR, new and higher fee structures as well as sophisticated finance charge computation mechanisms. The adoption of a new pricing structure resulted to decreased costs for some consumers and increased costs for others (2003).   Profitability             The use of credit cards has been popular among consumers due to several advantages, including security and convenience. On the corporate point of view, credit cards have been popular primarily due to its profitability.  Credit enables the consumer to purchase products that would in many cases go unpurchased. Credit augments demand, overcomes the pecuniary effects of overproduction, and enhances corporate profits (2000). Overall, corporations derived several benefits out of using credit cards. For instance, it was noted that credit enable corporations to augment the expenditures of the consumers without increasing the wages (1978). Second, the emergence of corporations along with the use of stocks to finance investment in the late nineteenth century enhanced the importance of consumer credit. The purchase and sale of stocks altered the manner in which businesses are valued, creating new opportunities for amassing wealth. By increasing sales, consumer credit boosts the prospective earnings capacity of corporations, thereby increasing their stock value. Credit becomes the lever through which corporations transform the prospective income of consumers into corporate assets. As , former president of Montgomery Ward observes: “A regular customer buying on credit buys two and a half to three times more in a year than the average cash customer” (1991). Credit in the form of credit cards also provides the holder instant liquidity for an almost infinite number of commodities. Once granted, credit cards eliminate the transactions cost of accessing credit. Unless the user refuses to yield to the advertising onslaught appealing to the emulative impulse, providing instant liquidity fosters spending. Credit limits replace checking account balances in constraining consumer spending, blurring the budget constraint ( 2000). Finally, and perhaps the most significant factor, is the change in values. Consumers become habituated to using credit, a habituation nourished and fostered by corporations themselves. The message conveyed is deceptive. Credit is sold as removing the need to economize. Current income no longer constrains consumption. The message suppressed is the cost involved. But since the cost lies in the future, it is for many people an abstraction lacking reality. Others rationalize their actions by creating illusions of much higher incomes, winning the lottery, and so on. The reality is that credit imposes an obligation, disciplining consumers who find their future income wanting. For such people, the obligation pressures individuals to work longer or more intensely (1992). As concludes, “consumers run the risk of being both deceived by consumerism and dragged along by consumer credit. To say there have been worse ways of living is not to say this is a good way to live” (1999). All of the cited advantages of credits card usage in the corporate view all lead to one main benefit and that is profit gain. In this corporate view, the credit card system indeed has strong profitability potentials that make it popular and favorable among various corporations.   Recommendations In financial sector, the methods for resolving disputes can be classified in various ways. One way is in terms of the extent to which the disputants win or lose (1991). In this regard, solutions to disputes can be classified as follows. First, super-optimum solutions which in all sides come out ahead of their initial best expectation. Second, the Pareto optimum solutions, in which nobody comes out worse off and at least one side comes out better off. However, this is not a very favorable solution compared to a super-optimum solution. Third, is a win-lose solution where what one side wins the other side loses. The net effect is zero when losses are subtracted from gains. This is the typical litigation dispute when one ignores the litigation costs. Fourth, is a lose-lose situation where both sides are worse off than they were before the dispute began. This may often be the typical litigation dispute, or close to it, when one includes litigation costs. These costs are often so high that the so-called winner is also a loser. Fifth, is the so-called win-win solution, which at first glance sounds like a solution where everybody comes out ahead. What it typically refers to, however, is an illusion, since the parties are only coming out ahead relative to their worse expectations. In this sense, the plaintiff is a winner no matter what the settlement because the plaintiff could have won nothing if liability had been established at trial. The parties are only fooling themselves in the same sense that someone who is obviously a loser tells himself he won because he could have done worse. Thus, for this particular case of credit card issues, the following was recommended: <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%"> Credit card holders should be aware of specific types of information, such as frequency of use of credit cards and the payment of credit card debt, so they will be able to monitor effectively and regularly their credit card debt. Also, credit card holders should restrain themselves from buying unnecessary things so they may stir clear of the debt pool.</li> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%"> Credit card companies should educate their clients / customers on the responsibilities associated with credit card use and credit card debts, such as the positive and negative aspects of frequency of use of credit cards, how interest charges will impact the pay off amounts or time when only partial payments are made, and the positive and negative aspects of having large numbers of credit card accounts (Austin & Phillips, 2001), because credit card companies also have responsibilities towards their clients / customers.</li> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%"> The Government must ensure that consumers are protected from abuse of big-time credit card companies by providing strict regulation and legislation concerning consumer debt. </li>   Conclusion Regardless of profitability, size, ownership, or industry sector, all businesses share a common problem: conflict and conflict resolution. Internal conflicts in financial institution, as well as external conflicts with customers, deplete valuable resources of time, money, and manpower. Unfortunately the resolution of many conflicts culminates not in smiles, handshakes, and prospects for synergy, but in acrimony, legal fees, and mutual loss. The business sector is another strong proponent of alternative dispute resolution procedures. Business people need expeditious justice at a reasonable cost. They often need to be able to maintain a business relationship with the opponent while resolving a particular dispute. Most disputes between businesses involve a contractual problem. People in business accept that disputes are inevitable. Even when a written contract is drawn carefully, problems will arise over the interpretation of a clause or a disputed set of facts. Disputes over service quality, contract performance, and so on are bound to arise. Once a dispute occurs, most business people prefer to resolve it quickly, privately, inexpensively, and informally. Maintaining a business relationship while involved in litigation is difficult, if not impossible. To preserve goodwill, most business people favor alternative dispute resolution procedures that will be fair, inexpensive, and quick, but that also arrive at a just result.   Credit:ivythesis.typepad.com

Dispute Resolution

Financial Services Overview The following document is a report on the topic regarding the Dispute Resolution Technique that ...

Managing Conflict

OBJECTIVES As a management consultant who specializes in organizational conflict, the author has always brought up to his superiors the viability of strategy formation regarding handling organizational conflict and at times fail to understand the reasons or logic behind certain strategic implementations imposed on it. By delving into this project paper, the author intends to have better insights into how organizational conflict management is thought up, formulated and then imparted down. The author hopes to have an in-depth understanding as to how the management of organizational conflict enables companies and organizations to compete effectively and profitably in this era of internationalization where competition is extremely intense. In order to reinforce the learning objectives, two key focal issues were focussed upon i.e. innovation and diversity. Innovation was discussed with regard to organizational conflict management where it was renowned for its developmental capabilities to constantly innovate. Diversity came under strategic thinking and formation as the author considered the diverse culture, political climate, economic surroundings, social environment, technological settings, government policies and legal systems in order to better understand the issues.     EXECUTIVE BRIEF This essay utilized Personal Investments Pty Ltd as the model organization to review its present organizational conflict management and how they dealt with critical situations. From the analysis, key trends in the organizational conflict management were identified, how it worked and its effectiveness in dealing with critical situations was ascertained. The paper then moved on to assess these organizational conflict management strategies of Personal Investments Pty Ltd with regard to its suitability to critical situations, during which the internal capabilities of these organizational conflict management in relation to the strategy being followed was determined also. An overall analysis of the performance and effectiveness of the organizational conflict management of Personal Investments Pty Ltd was also conducted to assess and compare the capabilities of these organizational conflict management strategies with those of others. Gaps in the organizational conflict management capabilities and environment of Personal Investments Pty Ltd were then identified. Finally, several choices of strategies to improve the organizational conflict management of Personal Investments Pty Ltd as effective means in critical situations were recommended and evaluated in terms of appropriateness to the issues reviewed, feasibility in carrying out the options and acceptability within the key stakeholders and decision makers. Several key implementation issues related to managing strategic change was also addressed as well.   INTRODUCTION Organizational conflict management can be defined as the efficient and effective implementation of the policies and tasks necessary to resolve the ongoing problems and issues within a company or organization, leading to the satisfaction of the firm’s customers, employees, and management. Organizational conflict management focuses on the careful management of the processes involved in the problem solving and decision-making. More often than not, small companies and organizations don’t really have the capabilities to implement organizational conflict management. Instead, these companies and organizations engage in activities that various schools of management typically associate with organizational conflict management. These activities include the identification of problems as well as performance evaluation of employees and management. However, organizational conflict management deals with all operations done within companies and organizations. Activities such as the management of organizational behavior, change management, logistics and performance evaluations are often related with organizational conflict management. A great deal of emphasis lies on the efficiency and effectiveness of processes. Therefore, organizational conflict management includes the analysis and management of internal processes.   ANALYSIS The aftermath of most recent hiring cases among organizations and companies often leads to the implementation of a somewhat autocratic type of leadership and management. In the case of Personal Investments Pty Ltd, because of the adjustments that the senior employees and officers would have to endure upon the entry of Tabitha into the scene, it was not surprising that at first the senior employees held so much power and decision-making authority to the point that Tabitha and her fellow younger employees felt suffocated and deprived of their freedom to express their ideas. It was also not surprising that  and the management of Personal Investments Pty Ltd paid more attention to the advice of their senior employees especially in making crucial decisions as against Tabitha’s suggestions. This was after all a precautionary measure, since in crucial times for the company they would have to be a perfectionist. The new reporting system would have to remain consistently efficient. The motivation environment will be characterized through the establishment of a new structured set of rewards and punishments. However, as time goes by the senior employees and the new employees like Tabitha would get to jive with each other. Along with this is the changing of leadership type from autocratic to a democratic type. This way, the participation of all key stakeholders especially the new employees will be more encouraged. If they feel something is right or wrong, or if they want to tell something important to the management, they can now be free do so without any worries. Also, a democratic leadership approach allows the management to have a feedback regarding the policies and regulations being implemented. They will immediately know if there is any tension going on between or among the stakeholders involved. Thus, immediate action can be planned and implemented by the management to keep matters from getting worse. It is also normal that when the new employees start to assume their posts, the senior management will have to implement stricter rights and privileges for them. This is the simple fact that Tabitha just can’t seem to understand. She overreacted to the pint that the once strong and transparent relationship that existed between the management and employees prior to her arrival at Personal Investments Pty Ltd was replaced by frustration and hatred. And we all know that when this happens, the performance of the new workforce will surely be severely affected and their efficiency will decline. This is because of concentrating on their work, they will now be more concerned about the ongoing problems within their organization. These worries and anxieties will pave the way for them to inhibit frustration and anger towards their supervisors, their co-workers and the management as a whole, feeling they are already taken for granted. It is a well known fact that human resources play a crucial role towards differentiation and a potent source of competitiveness for any organization or company ( 2001). Therefore, any organization must take care and constantly invest in human resource development especially during these periods of adjustment to a new management and environment. However, the determination of the extent to which an organization can invest in terms of human resources development depends on the financial capabilities of the company or organization. The rights and privileges of the workers must be carefully studied under the change management program of the company, because it should jive with the basic policies of an organization’s human resource development strategy. Common Organizational Behaviour Concerns 1)     Formation of the divisional-corporate authority relationship – the problem here is in making the decision as to how much authority would be needed to centralize at the corporate level and how much authority would be also needed to decentralize at the divisional level (2001). 2)     Information Distortion – if the corporate centre will pressure the divisions too much, then the divisions might be encouraged to radically change the information they normally supply to their corporate managers. 3)     Competition of Resources – since corporate divisions are normally evaluated on return of investment (ROI) criteria, this might cause them to start competing for resources (2003). 4)     Transfer Pricing problem – when corporate divisions engage in competition, it would become extremely difficult to set fair prices for trading resources between them (2002). This is because each division will try to set the highest price it can to maximize its own ROI. However, these efforts can undoubtedly alter the corporate performance and ROI. 5)     Short-term focus on research and development – if the corporate divisions will be evaluated on the basis ROI target, this might put pressure on research to improve their financial performance (2003). RECOMMENDATIONS Cultural Change Planning Cultural change planning is a necessary function within companies and organizations undergoing conflicts. In most companies and organizations this process is often very difficult because of the fast rate of cultural change and the occurrences of unplanned events. Therefore, companies and organizations must use several methodologies to prevent further unnecessary resistance to change by the workforce, particularly the entry of new employees. Nevertheless, the objectives of the organization for cultural change planning do not change: efficiency and effectiveness in the long run. Cultural Change Planning within Personal Investments Pty Ltd Cultural change planning must be implemented by Personal Investments Pty Ltd in order for their workforces to re-establish once again the healthy working relationship that was tarnished by Tabitha and be able to do their activities and resources in time. However, Dan Richardson would have to let go of Tabitha, the source of the problems within the organization. This will enable the company to achieve its goals with minimal resource utilization while providing opportunities for the new and old employees to bond together as a new workforce. Cultural change planning will also enable Personal Investments Pty Ltd to monitor the progress of their plans at regular intervals and maintain their control over operations. Cultural change planning within Personal Investments Pty Ltd must involve four elements: cultural change scheduling, labor planning, and cultural change cost planning. <ul type="disc" style="margin-bottom: 0in"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Cultural change scheduling involves the specification of the beginning, the length or the duration, and end of the planned cultural change activities. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Labor planning involves allocating the necessary personnel and delegation of responsibilities and resources during the process of cultural change, especially the responsibilities that will be left by Tabitha.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Cultural change cost planning involves determining the costs and the possibility of their occurrence during the process of cultural change.</li> </ul> B. Cultural Research Analysis The occurrence of cultural research within Personal Investments Pty Ltd will reflect the growing difficulty of its management to effectively use their valuable resources, especially their people like Tabitha. This is the reason why cultural research analysis must be done by Personal Investments Pty Ltd in order to determine the most effective ways to coordinate their newly acquired human resources through the application of analytical methods derived from fields of studies such as mathematics, science, and engineering. This will prevent them from mishandling another precious employee like Tabitha. Through this process, culture-related problems among the old and new employees are solved in different ways and alternative solutions are then relayed to the company’s management. The management then selects the appropriate course of action in line with their goals. More often than not, cultural research analysis is concerned with complicated issues such as top-level strategy and human resource allocation. Culture research analysis actually may vary according to the structures and philosophy of the company. But normally, most companies centralize cultural research analysis in one department at a time. Cultural research analysis may also have the possibility of working closely with top level managers in order to identify and solve a variety of culture-related problems. No matter what the type or structure of the company is, culture research analysis operates under similar sets of methodologies in order to carry out the analysis to support the company’s goal to improve the overall performance of their newly established workforce. The process is started by the description of the symptoms of a culture-related problem, followed by the formal definition of the problem. For example, a culture research analyst for an organization might be questioned regarding the most effective bonding activity for every department. Also, the analyst might be asked to determine the optimal number of employees needed to be kept in a department while taking into consideration the differences of the cultures of the people involved ( 2001).   CONCLUSION The results of the analysis carried out on the organizational conflict management of Personal Investments Pty Ltd. indicated very significant effects, even amidst the threats of unrest. Therefore, we could conclude that the organizational conflict management of Personal Investments Pty Ltd. could still be expected to improve faster than average. The review of the Personal Investments Pty Ltd.’s organizational conflict management capabilities and resources revealed very little inconsistencies regarding their strategies. This is coherent with their traditional inside-out approach. However, the need to reconcile both the inside-out and outside-in approaches becomes imperative now for Personal Investments Pty Ltd. The analysis among the environment as well as the organizational conflict management and capabilities of Personal Investments Pty Ltd. revealed certain gaps, most of which are biased towards the environment. However, these gaps paved the way towards determining a number of recommended strategic options to secure the competitiveness of the company. Also, Personal Investments Pty Ltd. has to find a balance between adherence to internal forces within the management and to the changing forces of the environment in order to implement such strategic options.     Credit:ivythesis.typepad.com

Managing Conflict

OBJECTIVES As a management consultant who specializes in organizational conflict , the author has always brought up to his superiors th...