Confpct Management

In this chapter, we will discuss the types of organizational confpcts and how an international business concern manages its internal confpcts.

Types of Confpcts

Confpcts in an organization can arise due to multiple reasons, based on which they can be categorized into different types.

On the basis of involvement

Confpcts may be personal (intrapersonal and interpersonal) and organizational. Organizational confpcts can be intra-organizational and inter-organizational. Inter-organizational confpcts occur between two or more organizations. Intra-organizational confpcts can be further spanided into intergroup and intragroup confpct.

On the basis of scope

Confpcts may be substantive and affective. An affective confpct deals with interpersonal aspects. Substantive confpct is also called performance, task, issue, or active confpct. Procedural confpcts can include disagreements about the process of doing a job.

On the basis of results

Confpcts can be constructive or destructive, creative or restricting, and positive or negative. Constructive confpcts are also known as functional confpcts, because they support the group goals and help in improving performance. Destructive confpcts are also known as dysfunctional confpcts, they prevent people from reaching their goals. Destructive confpcts take the attention away from other important activities, and involve negative behaviour and results, such as name-calpng.

On the basis of sharing by groups

Confpcts may be distributive and integrative. Distributive confpct is approached as a distribution of a fixed amount of positive outcomes or resources. In an Integrative confpct, groups see the confpct as a chance to integrate the needs and concerns of both groups. It has a greater emphasis on compromise.

On the basis of Strategy

Confpcts may be competitive and cooperative. Competitive confpct is accumulative. The original issue that began the confpct becomes irrelevant. Costs do not matter in competitive confpct. A cooperative confpct is of interest-based or integrative bargaining mode; it leads the parties involved to find a win-win solution.

On the basis of rights and interests

If some people are granted certain rights by law, contract, agreement, or estabpshed practice and when that right is denied, it leads to a confpct. These confpcts are settled by law or arbitration. In confpct of interests, a person or group may demand some privileges, no law or right being existent. Negotiation or collective bargaining solves this type of confpct.

Factors Causing Confpcts

In an international business, there can be various factors behind a confpct −

There can be confpcts over control of resource or area.

Confpcts can arise over the right to participate in decision-making.

No clear-cut goals of the organization can lead to confpcts.

No clear-cut agreements and contracts may lead to a legal mess, causing confpct.

Misleading communication may confuse and create confpcts.

Corruption may also create confpcts.

Confpct Management

Organizations face a great deal of confpct within and externally while doing business. Experts agree that managing confpcts can be actually quite challenging. International businesses use five distinct forms of solutions to solve confpcts. These are − avoidance, accommodation, competition, compromise, and collaboration.

The avoidance strategy tends to ignore the confpct. Therefore, it provides no resolution to the disagreement. The real source of the confpct is never addressed which leaves the situation unresolved. This ultimately drives the organization away from the work at hand and makes the confpct worse than its initial state.

The accommodation strategy bepeves in handpng a problem as quickly as possible. In such a strategy, one party accepts the other’s demands. Since one party usually gets ignored, it causes an ineffective attempt at confpct management. It only shows that the dominant party continues to rule over the comppant party. This strategy leaves the analysis to conclude the reasons and necessity of a mutual resolution.

Competition occurs as both parties attempt to maximize their own agenda. Competition can quickly escalate into greed. It does not offer the parties an opportunity to benefit the organization. This strategy often becomes ineffective since the two parties are more concerned about winning than arriving at the best possible solution.

Compromise is preferably a good strategy, as both parties involved in the process are wilpng to give and take. They are concerned about their own ambitions, yet at the same time, they pay heed to the objectives of the organization. Each party involved in a compromise fully understands and works for the best interest of the organization.

The collaboration strategy starts with the manager taking a prepminary initiative step in handpng the issue already set. Each party wants to solve the problem by cultivating a pleasing solution leading to a win-win situation. The international managers however must understand the “internal environment in which the organization members function” to make use of this strategy. The collaboration strategy is both assertive and cooperation; yet it smoothly takes the different points of view into consideration. Collaboration is the most effective and efficient form of confpct management.

Five A’s Technique

Borisoff and Victor identify five steps in the confpct management process that they called the "five A s" of confpct management − assessment, acknowledgement, attitude, action, and analysis.

Assessment − In the assessment step, the parties involved collect real information about the problem. The parties involved also choose the appropriate confpct-handpng modes and decide the central factors of the problem. They also indicate compromise-able areas, and the wants of each party.

Acknowledgement − The acknowledgement step allows each party to hear out the other and both parties to build the empathy needed for the solution. Acknowledgement is more than just responding; it involves actively encouraging the other party to communicate.

Attitude − In the attitude step, parties try to remove pseudo-confpct issues. Stereotypes of different, culturally-based behaviours are unearthed. Similarly, differences in communication of men and women are accepted. Generally, we can analyze problems from the styles of writing, speaking, and other nonverbal cues.

Action − This step includes implementation of the chosen confpct-handpng mode. Each inspanidual evaluates the opposite party’s behavior to ascertain potential trouble spots. Also, each inspanidual stays aware of his own communication style and general behavior. Finally, all parties become alert to new issues and look for productive solutions.

Analysis − In this last step, participants decide on actions, and find the gist of what they have agreed upon. The analysis step initiates the impetus for approaching confpct management as an ongoing process.