Negotiation and Conflict Resolution The Conflict Management

Question: Describe about the Negotiation and Conflict Resolution for The Conflict Management. Answer: Introduction The following report presents the critically review on the conflict management which is categorized in two parts. The first discusses about the conception of conflict management in association with several levels of conflict as well as various approach of conflict management. Apart from that, the first part of the study covers the discussion on the importance and significance of conflict management in the organization which assists in developing the learning and group outcomes. On the contrary, second part of the report is entirely directed on the development of perfect model that helps in managing the situation of conflicts and disagreements involving the process of decision making in the same circumstances. In order to understand the entire procedure and development of model in a better way, Woolworths Limited organization has been selected in the present report. Part 1: Literature review on conflict management Concept of conflict management Conflict is a circumstance where friction and disagreement occurs either among two individuals or within the same group of people. It arises when there are differences in the beliefs or actions of the individuals and the members of the group in a business organization or at any other state of affairs. Dyer and Song (2015) mentioned that the organizational performance gets affected in a negative way if there are situations of conflicts among the management or groups or other employees. On the contrary, Masuda and Kostopoulos (2016) argued that the circumstance of conflicts generates a form of competition among the members or workers within the business enterprise that helps in improving and enhancing the performance benchmark. Whereas, Mazei et al. (2015) mentioned the negative impact of conflict situation that creates perturbed situation in the internal control of the organization that is not preferable for the growth and sustainability. Moreover, there are several techniques and methods of conflict management have been advanced to overcome the situation of conflicts and disagreements. Harinck and Druckman (2015) considered that the conflict management is a systematic process that assists in controlling the friction or discord by removing the harmful effects caused in the organization. Prati et al. (2016) stated that the significant goal of conflict management is to develop the overall business performance in the organization as well as enhancing the performance level among the individual employees. Further, Diehl and Regan (2015) explained the conflict management as a procedure that deals with the arguments or frictional situations in a balanced and efficient manner. Different levels of conflict As per the concept given by Yeung, Fung and Chan (2015), the situation of conflict within the enterprise can be overcome by applying various methods of conflicting management. However, the selection and application of appropriate methods or techniques of conflict management depends on the kinds of conflict that are discussed as follows: Discomfort level of conflict: First level of conflict in the business organization is the level of discomfort where the happening of events is not suitable or acceptable by the individuals or members of the groups. Since this level of conflict is the initial stage, therefore the disagreement among the organizational members is not significant and can be easily avoided by ignoring the present circumstance (Elfenbein 2015). At this level, the conflict in the organization has less impact on the standard of employees performance and the performance of the entire business enterprise. Incident level of conflict: In case the conflict at the level of discomfort is not taken care by the management of the organization then the second level of conflict i.e. incident level of conflict arises. The conflict of the business organization at this level creates short and sharp communication between the employees and group members of the organization (Monroe et al. 2015). Mix- up level of conflict: This level of conflict in business organization occurs when there are misunderstandings exist between the previous two levels of conflict. Prause and Mujtaba (2015) stated that to manage the disagreed situation at this current level is critical for the organizational management at a given point of time. This is because the point of misapprehension at this stage is comparatively high than that in the other two levels (Manchikanti et al. 2015). Therefore, solving the situation of conflict through the process of negotiation is critical. Tension level of conflict: Currie and Teague (2015) mentioned that if the management of the enterprise or executive employees fails to solve the conflicts or disagreements in the above level i.e. mix- up level then conflict of the organization comes to the next level. This level of conflict is known as tension level which is critical for the management and other members of the group. at this level of disagreement employees or other members do not have the clue or understanding on the ideas and thinking of other people (Dinar et al. 2015). As a result, members and employees of the business enterprise act in a way revealing the incompatibility among them which affects the overall organizational performance. Crisis level of conflict: The last level of conflict known as crisis level in the business enterprise is referred to as an extreme point that may cause serious damage to the industry. Conflict at this level or stage affects the relationship among the employees of the companies or it may also terminate the employment of the workers. Accordingly, Weingart et al. (2015) proposed that the organizational management should construct appropriate strategies beforehand so that the conflicts or disagreements do not reach to the level of crisis. Hence, it can be said from the discussion stated above that the management in an enterprise is required to organize the business functions in an effective manner. The management should conduct the organizational situation in appropriate way so that in case of any conflicts, the situation can be solved at the level of discomfort. However, the management of the organization should be efficient and careful so that the situation of conflicts can be avoided. Importance of conflict management Cederman et al. (2015) commented that the management for conflict at the right and appropriate time is essential for the business enterprise. Moreover, there are several reasons that form the importance of conflict management in the organization which are as follows: Improvement in performance standard: Situation of conflict at workplace or at any organization is common that creates the negative effect on the standard of performance of the employees. Conversely, Goh, Ilies and Wilson (2015) mentioned that the techniques or methods of conflict management helps the organizational management can eliminate the discrepancies among the workers that would form a favorable work ambience in the organizations. Such steps and actions would enhance the work interest of the employees towards the companies and eventually improvement in the performance standard will be formed. Such activity would improve the overall performance of the enterprise. Improves team bonding: Conflict management method assist the organizational management to satisfy the employees interests in performing the business functions either fully or partially. Such action helps in creating the agreement among the members of the group that is significant to maintain the team bonding at the organization (Ilies et al. 2015). Helps to achieve goodwill: Appropriate use of conflict management method helps the group members and management of the organization to sustain a favorable and beneficial environment. It creates the motivation among the employees and other members to perform the work in a better way that enhances the performance benchmark of the enterprise (Koch and Binnewies 2015). Additionally, it helps in improving the production and goodwill of the company as per the industrial standard. Hence, the aforementioned discussion indicates that the techniques of conflict management are very significant to improve the business performance and business position. It also helps in enhancing the standard of the business performance as well as the market goodwill in the global economy. Part B: A model to make decisions and manage conflicting situation As mentioned in the first of the report i.e. the literature review on the conflict management study, disagreements are common in any organization. Hence, it is imperative in taking appropriate decisions to administer the situations of conflict by developing a conflict management model. In the present report, the model of conflict management has been established in solving the conflicts between employees and management at the selected organization. The model has been based on the Thomas Kilmanns conflict management model at Woolworths Limited (Tafel-Viia and Alas 2015). It has been observed that conflicts at Woolworths Limited have taken place at several times for several reasons. Situation of conflict occurs not only between management and employees but also between the board and executive employees. For instance, the situation of conflict at Woolworths has been not during the year 2014 between the board of directors and middle level of management. The situation occurs due to fragile financial performance in the business as well as decision- making procedures (Woolworthslimited.com.au 2016). On the contrary, situation of conflict arises due to the disagreement in the interests of the employees and the management. Another instance of the conflict noted was during the year 2009 that occurred between the employees and management of Woolworths Limited. It occurred because the top level of management of the organization undertook a decision to decline the level of cost by decreasing the number of workers. Such decision created the apprehension of losing the job among the organizational employees and accordingly the combat situation occurred between the management and the employees (Woolworthslimited.com.au 2016). In addition to this, conflicts occurred at Woolworths due to the discrepancies with respect to the bonus, incentives and such other rewards as well as the different policies in the organization. On analyzing the conflict situation of the Woolworths Limited, it can be noted that three major types of friction existed in the business enterprise that are mentioned as under: Conflicts due to weak performance Conflicts due to companys policies Conflicts due to management decision (com.au 2016) This situation of conflicts in the Woolworths Limited may be overcome by developing the model on the basis of Thomas Kilmanns conflict management model. Thomas Kilmanns model of conflict management According to the model of conflict management based on Thomas Kilmann there are five forms to overcome the situation of conflicts that are mentioned below: Figure 1: Different approaches of conflict management (Source: Created by author) Collaborative: In this specific approach of the conflict management in the organization, the management or executive employees considers the concept of all the workers related to the circumstance. At the same time, the higher level of management provides equivalent importance to the viewpoint of each of the worker. (Wilson, Davis and Murdie 2016) alleged that the approach of collaborative in the conflict management, concept of all the related individuals is measures that make the procedure of decision making easier for the management. Accommodating: Another approach of conflict situation in the organization is accommodating approach that focuses on solving the situation of conflict. Leaders and management utilize accommodating approach of the conflict management in the organization at the time the fail to overcome such situations. It occurs when the management fails to solve it in the regular way and without considering the outcome of such circumstance. Einarsen et al. (2016) stated that the accommodating approach could recognize the innovative way to overcome the circumstance of the disagreement that helps in maintaining the industrial goodwill. Competitive: Next approach of the conflict management is the competitive approach in which the management sticks at a specific decision, which does not diversify its position by any means. Ayoko and Ayoko (2016) opined that in order to use the competitive approach, the management should have the understanding the ideas or concept to back-up the requirements of workers end. Way, Jimmieson and Bordia (2016) disagreed about the concept of this approach since the management is required to experience the resistance of higher level of employees. Moreover, Ilies et al. (2015) mentioned that the competitive approach of the conflict management helps the concerned management in taking fast decisions. Compromising: Approach of compromising in the conflict management indicates the decision-making by the management, which is partially acceptable by all the workers. It states that the approach of compromising in conflict management, individuals involved in the circumstances of disagreement are required to compromise the interest to certain extent. Cederman et al. (2015) mentioned that the chance of further conflict or disagreement is less on the matter since the involved persons are in state of compromising the interests. Avoiding: As stated by Yeung, Fung and Chan (2015) avoiding approach of conflict management, the management of the business enterprise denies to consider any specific decision in solving the frictional problem. However, it was argued by Tafel-Viia and Alas (2015) that the approach of avoiding in conflict management is critical and effective at the circumstance when the outcome quality of the disagreement situation is not significant. For the purpose of overcoming the circumstances of disagreement or conflict in Woolworths Limited, the approaches of conflict management as mentioned by Thomas Kilmann could be considered. In order to solve the conflicting situation at Woolworths, three primary approach of the model can be considered i.e. collaborative approach, competitive approach and compromising approach. The model of conflict management for Woolworths Limited cab be indicated by using the following diagram. Figure : Conflict management model at Woolworths Limited (Source: Created by author) Considering the above diagram, it can be recognized that the three approaches of the conflict management would have been useful in overcoming different levels of friction at Woolworths Limited. It has been analyzed that the collaborative approach developed in the model given by Thomas Kilmann would be the most suitable approach to solve the disagreements between the board members and the management at middle level because of the fragile performance in the organization. However, the approach of collaboration in the conflict management would require both the board members as well as the management in providing their opinions in the specific situations of disagreements. With the help of communication and discussion on the concepts given by each individuals or members, the financial position of the company can be improved in a better way. Since the collaborative approach gives equivalent preference to all the members on their ideas, chances of misunderstanding and disagreements can be mi nimized (Wilson, Davis and Murdie 2016). Similarly, if the situation of conflict arises due to the situation of legal policies in the organization then the same can be solved by using the approach of compromising. The organization management of Woolworths Limited is required to develop the policies for the purpose of operating the business activities in a systematic manner. Moreover, the firmness of the developed policies affects the interests of the employees in certain ways that creates conflict between the employees and the management. Hence, it would be better if the management of Woolworths Limited use the approach of compromising as a conflict management. It would assist the organization to avoid the misunderstandings on compromising the partial interests among the workers and management (Dinar et al. 2015). This policy and approach would help in avoiding the creation of issues since the interests of management and employees would be satisfied in a partial manner. It has been noted that most serious conflict situation at Woolworths Limited occurred when the organizational management undertook the decision in declining the employment of employees. It was analyzed that the number of employees was decided to be reduced by around 30,000 numbers of employees. It was noted that such circumstance on labor turnover was the most crucial circumstance experienced by the organizational management. Moreover, the decision on decrease of number of employees was important for the purpose of reducing the business activity costs. On the contrary, it was a tough situation for the concerned workers and employees since their future was at stake. Accordingly, the circumstances of friction at this stage occurred within the enterprise at high level of management. Hence, to manage and control such situation implementation of competitive approach was analyzed to be effective for the management (Koch and Binnewies 2015). It has been observed that this approach of confli ct management could easily solve the conflict circumstances since the higher management is likely to implement is decision by any means. Accordingly, it can be stated from the above arguments and discussion that solution to any conflict circumstances in an enterprise it is important to understand the nature and level of disagreement. The management is responsible to analyze the present situation, examine the nature of conflict among the parties involved as well as the level of conflicts. Upon proper examination and evaluation, the management is required to develop the appropriate model of conflict management that helps in resolving the issue. Conclusion It has been identified from the present report that the situation of conflict arises when there is difference in beliefs, thoughts, ideas or actions among two or more individuals. The conflicts may arise among the similar level of members of the organization or among the higher level of group members of the enterprise. Accordingly, the management of the organization is required to understand the circumstances of conflicts that help in managing and solving the issues arising on disagreement at different levels. It has been observed that there are five levels of conflict and it is significant to develop the relevant models to improve the organizational performance at employees level and at entire organization. In order to solve the situations of conflicts there exists several approaches of the conflict management that helps in resolving the situations of conflicts. It has been identified in the present report that Woolworths Limited, one of the largest companies in Australia experience d several conflicting circumstances during several past years. One of the primary conflict situations identified in case of Woolworths Limited was a situation between employees and management occurred as a result of labor turnover. Accordingly, it has been observed that the management focused on developing the best and appropriate model of conflict management as provided by Thomas Kilmann to get the assistance on resolving the conflicting situation. Hence, it can be concluded that the issues on conflict can be resolved by considering the appropriate techniques that helps in improving the organizational overall performance. Reference list: Ayoko, O.B. and Ayoko, O.B., 2016. Workplace conflict and willingness to cooperate: The importance of apology and forgiveness.International Journal of Conflict Management,27(2), pp.172-198. 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