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TERM PAPER

MANAGEMENT PRACTICE AND ORGANIZATIONAL BEHAVIOUR.

TOPIC-CONFLICT MANAGEMENT

SUBMITTED TO: SUBMITTED BY-

MS. MARLYN KOUL NEHA TIKOO

ROLL NO.B37

SECTION NO. - RR1904


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INDEX


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1 EXECUTIVE SUMMARY

2 INTRODUCTION

3 THE INGREDIENTS OF CONFLICT

4 MANAGING CONFLICT

5 CONFLICT MANAGEMENT STRATEGIES

6 CONFLICT MANAGEMENT STYLES

7 WHAT DO ORGANIZATIONS USE CONFLICT MANAGEMENT

FOR?

8 STAGES OF CONFLICT

9 CONFLICT RESOLUTION

1 LITERATURE REVIEW

1 CONFLICTS BETWEEN RELIANCE

1 EFFECTS OF CONFLICTS

1 SOLUTION TO SOLVE THE CONFLICTS

1 CONCLUSION


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1 BIBLIOGRAPHY

Executive summary:-

The term paper is about conflict management.Conflict management is solving or

sorting out conflicts in an organization.

In an organization Conflicts occur because different people have different point of

views and perceptions due to which different people take things or situations

differently which results in conflicts.

Conflict management is important for the organization to solve issues so that all

the employees could come together and work efficiently and effectively for the

attainment of the common objective or goal of an organization.

The ways of solving conflicts, the different types of conflicts, the conflict

management styles and various other contents of conflict management would be

discussed further.


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INTRODUCTION


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Definition of Conflict:

Conflicts can be define as a process that begins when one party perceives that

another party has negatively affected or is about to negative affect, something

that the first party cares about. This definition is purposely broad. It describesthat point in any ongoing activity when an interaction crosses over to

become interparty conflicts. It encompasses the wide range of conflicts that

people experience in organization incompatibility of goals, differences over

interpretation of facts , disagreement based on behavioural expectations and

the like.

Conflicts can be a serious problem in an organization. It can create chaotic

conditions that make it nearly impossible for employees to work together.

Conflict represents an integral part of human experience and concern bothpersonal and public relationship. They range from the micro level of

individual to the macro dimension of international and global concern .They

can be a source of positive development and growth or, on the contrary, a

source of uncontrolled violence and destruction depending on how they

managed. Conflict is a natural disagreement resulting from individuals or

groups that differ in attitudes, beliefs, values or needs. It can also originate

from past rivalries and personality differences. Other causes of conflict

include trying to negotiate before the timing is right or before neededinformation is available.


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CONFLICT MANAGEMENT:

Conflict management refers to the long-term management of intractable conflicts.It

is the label for the variety of ways by which people handle grievances

standing up for what they consider to be right and against what they considerto be wrong. Those ways include such diverse phenomena as gossip, ridicule,

lynching, terrorism, warfare, feuding, genocide, law, mediation, and

avoidance.

Conflict management is the process of identifying and addressing differences that

if unmanaged would affect project objectives. Effective conflict management

prevents differences becoming destructive elements in a project.

Conflict management is often considered to be distinct from conflicts. In orderresolution for actual conflict to occur, there should be an expression of

exclusive patterns, and tell why the conflict was expressed the way it was.

Conflict is not just about simple inaptness, but is often connected to a

previous issue.

The contents of conflict.

Needs-needs are things that are essential to our well-being. Conflicts arise when

we ignore others' needs, our own needs or the group's needs. Be careful not toconfuse needs with desires (things we would like, but are not essential).

Perceptions- People interpret reality differently. They perceive differences in

the severity, causes and consequences of problems. Misperceptions or

differing perceptions may come from: self-perceptions, others' perceptions,

differing perceptions of situations and perceptions of threat.

Power - How people define and use power is an important influence on the

number and types of conflicts that occur. This also influences how conflict ismanaged. Conflicts can arise when people try to make others change their

actions or to gain an unfair advantage.


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Values- Values are beliefs or principles we consider to be very important.

Serious conflicts arise when people hold incompatible values or when values

are not clear. Conflicts also arise when one party refuses to accept the fact

that the other party holds something as a value rather than a preference.

Feelings and emotions - Many people let their feelings and emotions become a

major influence over how they deal with conflict. Conflicts can also occur

because people ignore their own or others' feelings and emotions. Other

conflicts occur when feelings and emotions differ over a particular issue.

Advantages of Conflict-

Conflict is not always negative. In fact, it can be healthy when effectively

managed. Healthy conflict can lead to.

1. Growth and Innovation

2.New ways of thinking

3. Additional management options

If the conflict is understood, it can be effectively managed by reaching a consensus

that meets both the individual's and society's needs. This results in mutual

benefits and strengthens the relationship. The goal is for all to "win" byhaving at least some of their needs met.

Managing Conflict

There are five steps to managing conflict. These steps are:

1. Analyze the conflict

2. Determine management strategy

3. Pre-negotiation

4. Negotiation

5. Post-negotiation


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term objectives. This approach can also distract the partners from the merits of anissue and create a cynical climate.

Competition - This strategy results from a high concern for your group's owninterests with less concern for others. The outcome is "win/lose." This strategyincludes most attempts at bargaining. It is generally used when basic rights are atstake or to set a precedent. However, it can cause the conflict to escalate and losersmay try to retaliate.

Accommodation - These results from a low concern for your group's owninterests combined with a high concern for the interests of other partners. Theoutcome is "lose/win." This strategy is generally used when the issue is moreimportant to others than to you. It is a "goodwill gesture." It is also appropriatewhen you recognize that you are wrong. The drawbacks are that your own ideas

and concerns don't get attention. You may also lose credibility and futureinfluence.

Avoidance -These results from a low concern for your group's own interestscoupled with a low concern for the interests of others. The outcome is "lose/lose."This strategy is generally used when the issue is trivial or other issues are more

pressing. It is also used when confrontation has a high potential for damage ormore information is needed. The drawbacks are that important decisions may bemade by default.

Step 3:Pre-negotiation.To set the stage for effective negotiation, the groundwork must be laid. Thefollowing should occur prior to negotiation.

Initiation - One partner raises the possibility of negotiation and begins theprocess. If no one is willing to approach the others to encourage them to reach anagreement, a trusted outsider could be brought in as a facilitator.

Assessment - Conditions must be right for negotiation to be successful. Key

players must be identified and invited. Each side must be willing to collaboratewith the others. Reasonable deadlines and sufficient resources to support the effortmust exist. Spokespersons for each group must be identified and involved. Partiesneed to determine which issues are negotiable and which are not.

Ground rules and agenda- The groups must agree on ground rules forcommunication, negotiation and decision making. They should agree on the


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To set the stage for effective negotiation, the groundwork must be laid. Thefollowing should occur prior to negotiation.

Step 5: Post-negotiation.

Once negotiation is complete, the group will need to implement the decisionsmade. Some key steps include:

Ratification - The partners must get support for the agreement from

organizations that have a role to play in the agreement. These organizations shouldbe partners and should have been involved in the previous steps. Each organizationwill need to follow its own procedures to review and adopt the agreement.

Implementation - You and your partners' jobs are not done when you'vereached agreement. Communication and collaboration should continue as theagreement is carried out. The partnership will need to have a plan to monitor

progress, document success, resolve problems, renegotiate terms and celebratesuccess.

Negotiation skills.Negotiation is an important skill for coming to an agreement when

Evaluation - Only after the partners have finished listing options, should theoptions be discussed. Determine together which ideas are best for satisfyingvarious interests.

Written agreement - Document areas of agreement and disagreement to ensurecommon understanding. This helps ensure that agreements can be remembered and

communicated clearly.

Commitment - Every partner must be confident that the others will carry outtheir parts of the agreement. Discuss and agree upon methods to ensure partnersunderstand and honor their commitments.


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when conflict involves personal differences that are difficult to change when fostering intimate or supportive relationships is not critical when others are likely to take advantage of noncompetitive behaviour when conflict resolution is urgent; when decision is vital in crisis when unpopular decisions need to be implemented

The Avoiding Turtle

Turtles adopt an avoiding or withdrawing conflict management style Turtles would rather hide and ignore conflict than resolve it; this leads them

uncooperative and unassertive Turtles tend to give up personal goals and display passive behaviour creating

lose-lose situations

Advantage: may help to maintain relationships that would be hurt by conflictresolution

Disadvantage: Conflicts remain unresolved, overuse of the style leads to otherswalking over them.

Appropriate times to use a Turtle Style:

when the stakes are not high or issue is trivial when confrontation will hurt a working relationship when there is little chance of satisfying your wants when disruption outweighs benefit of conflict resolution when gathering information is more important than an immediate

decision when others can more effectively resolve the conflict when time constraints demand a delay

The Accommodating Teddy Bear

Organizations use a smoothing or accommodating conflict managementstyle with emphasis on human relationships

People ignore their own goals and resolve conflict by giving into others;unassertive and cooperative creating a win-lose (bear is loser) situation.


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Advantage: Accommodating maintains relationships

Appropriate times to use a Teddy Bear Style

when maintaining the relationship outweighs other considerations when suggestions/changes are not important to the accommodator when minimizing losses in situations where outmatched or losing when time is limited or when harmony and stability are valued

The Compromising Fox

it use a compromising conflict management style; concern is for goals andrelationships

they are willing to sacrifice some of their goals while persuading others togive up part of theirs

Compromise is assertive and cooperative-result is either win-lose or lose-lose

Advantage:relationships are maintained and conflicts are removed

Disadvantage:compromise may create less than ideal outcome and gameplaying can result

Appropriate times to use a Fox Style when important/complex issues leave no clear or simple solutions when all conflicting people are equal in power and have strong

interests in different solutions when there are no time restraints

The Collaborating Owl

Organizations use a collaborating or problem confronting conflictmanagement style valuing their goals and relationships

they view conflicts as problems to be solved finding solutions agreeable to allsides (win-win)


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Advantage: both sides get what they want and negative feelings eliminated

Disadvantage:

takes a great deal of time and effort

Appropriate times to use an Owl Style:

when maintaining relationships is important when time is not a concern when peer conflict is involved

when trying to gain commitment through consensus building when learning and trying to merge differing perspectives

What do organizations use conflict management for?

For any organization to be effective and efficient in achieving its goals, the peoplein the organization need to have a shared vision of what they are striving toachieve, as well as clear objectives for each team / department and individual. You

also need ways of recognizing and resolving conflict amongst people, so thatconflict does not become so serious that co-operation is impossible. All membersof any organization need to have ways of keeping conflict to a minimum - and ofsolving problems caused by conflict, before conflict becomes a major obstacle toyour work. This could happen to any organization, whether it is an NGO, a CBO, a

political party, a business or a government.

Conflict management is the process of planning to avoid conflict where possibleand organizing to resolve conflict where it does happen, as rapidly and smoothly as

possible.

Difference between conflict and competition

"Competition" usually brings out the best in people, as they strive to be top in theirfield, whether in sport, community affairs, politics or work. In fact, fair andfriendly competition often leads to new sporting achievements, scientificinventions or outstanding effort in solving a community problem. When


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competition becomes unfriendly or bitter, though, conflict can begin - and this canbring out the worst in people.

Common causes of conflict

Causes or sources of organizational conflict can be many and varied. The mostcommon causes are the following:

scarcity of resources (finance, equipment, facilities, etc) different attitudes, values or perceptions disagreements about needs, goals, priorities and interests poor communication poor or inadequate organizational structure lack of teamwork

lack of clarity in roles and responsibilities

Conflict between individual

People have differing styles of communication, ambitions, political or religiousviews and different cultural backgrounds. In our diverse society, the possibility ofthese differences leading to conflict between individuals is always there, and wemust be alert to preventing and resolving situations where conflict arises.

Conflict between groups of people

Whenever people form groups, they tend to emphasize the things that make theirgroup "better than" or "different from" other groups. This happens in the fields ofsport, culture, religion and the workplace and can sometimes change from healthycompetition to destructive conflict.

Conflict within a group of people

Even within one organization or team, conflict can arise from the individualdifferences or ambitions mentioned earlier; or from rivalry between sub-groups orfactions. All leaders and members of the organization need to be alert to groupdynamics that can spill over into conflict.

How to identify signs and stages of conflict?

"Disputes of right" and "disputes of interest"


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Especially in the workplace, two main types of disputes have been noted (althoughthese two types may also happen in other situations). These are:

"Disputes of right", where people or groups are entitled bylaw, by contract, by previous agreement or by established practice tocertain rights. Disputes of right will focus on conflict issues such asemployment contracts, legally enforceable matters or unilateralchanges in accepted or customary practices. A dispute of rights is,therefore, usually settled by legal decision or arbitration and not bynegotiation. "Disputes of interest", where the conflict may be a matter ofopinion, such as where a person or group is entitled to some resourcesor privileges (such as access to property, better working conditions,etc). Because there is no established law or right, a dispute of interest

will usually be solved through collective bargaining or negotiation.

Stages of conflict

The handling of conflict requires awareness of its various developmental stages. Ifleaders in the situation can identify the conflict issue and how far it has developed,they can sometimes solve it before it becomes much more serious. Typical stagesinclude:

Where potential for conflict exists - in other words where

people recognize that lack of resources, diversity of language orculture may possible result in conflict if people are not sensitive to thediversity. Latent conflict where a competitive situation could easily

spill over into conflict - e.g. at a political rally or in the workplacewhere there are obvious differences between groups of people. Open conflict The conflict which can be triggered by anincident and suddenly become real conflict? Aftermath conflict - The situation where a particular problem

may have been resolved but the potential for conflict still exists. Infact the potential may be even greater than before, if one person orgroup perceives itself as being involved in a win-lose situation.

Signs of conflict between individuals


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controversy as ideas and arguments are presented that are incongruent withone's original position.

3. Conflict of Interests: Interpersonal conflict occurs when the actions of oneperson attempting to maximize his or her goals prevent, block, or interferewith another person attempting to maximize personal goals. Commonexamples among students include control over resources ("I want to use thecomputer now!"), preferences over activities ("I want to eat outside on the

picnic bench, not in the cafeteria!"), and a range of relationships issues thatoften result in name calling, insults, threats, or physical aggression ("You area real jerk!").

4. Developmental Conflict : Developmental conflict exists when incompatibleactivities between adult and child based on the opposing forces of stabilityand change within the child cycles in and out of peak intensity as the childdevelops cognitively and socially.

A CASE REVIEW:

INTRODUCTION OF RELIANCE

The name Reliance is synonymous with success, a story as unique as its founder

Dhirubhai H. Ambani, who built the Reliance Empire from an initial capital of just

$300. It is a story of dreams becoming reality, of vision igniting passion, and an

Indian enterprise transforming itself into a global conglomerate.

Today, Reliance Industries Limited, led by its Chairman and Managing Director

Mukesh D. Ambani is India's largest private sector company in all major financial

parameters with revenues of $16.7 billion, cash profit of $2.8 billion, net profit of$1.7 billion, net worth of $9.2 billion and total assets of $18.4 billion. It covers the

entire energy value chain, starting with oil and gas and continuing on through

refining, petrochemicals, chemical intermediates and textiles.

Reliance is the first and only private sector company from India to feature in the


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2005 Fortune Global 500 list of the 'World's largest Corporations' for the second

consecutive year.


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The first major step towards a final resolution of the festering conflict between the

Ambani brothers Mukesh and Anil, who control the Rs 100,000 plus crore

Reliance Group, was taken on Saturday, with a Reliance Industries Ltd (RIL)

board panel being asked to work out the details of a reorganisation of

Reliances businesses.

This came after an RIL board meeting and a statement on Saturday morning by

Kokilaben D Ambani, the widow of Reliance Groups founder, late Dhirubhai

Ambani, which said the family had arrived at an amicable settlement of all the

issues.

The statement added that Mukesh Ambani, the current chairman and managing

director of RIL would have responsibility for RIL and Indian Petrochemicals

Corporation Ltd (IPCL), while Anil Ambani would have responsibility for

Reliance Infocomm, Reliance Energy and Reliance Capital.

Much of the settlement is widely believed to be the work of K Vaman Kamath,

managing director and CEO of ICICI Bank, who has known the Ambani

family for decades. The announcement sets at rest seven months of intense, and

public, wrangling between the Ambani brothers that had taken a toll on the

groups stock market performance and had investors, lenders and the corporate

world on tenterhooks.

There are many reasons behind the conflicts between two brothers or reliance. one

of the main reason is to divide the whole empire between two brothers , both of

them wants to earn more profits individually thats why they wants to divide

their business.

.


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There was no ambiguity in the agreed price, tenure and quantity of natural gas to

be supplied by Reliance Industries Ltd (RIL) from the Krishna-Godavari fields,

counsel for Reliance Natural Resources Ltd (RNRL) told the Supreme Court

on Tuesday.

"The only issue in the case was the absence of a bankable agreement," RNRL

counsel Ram Jethmalani said, continuing with his arguments before the three-

judge bench of the Apex court on the high-profile gas dispute case Effects of

conflicts between reliance:

IMPACT ON INDIAN ECONOMY

Indian economy will certainly have a negative impact on the global investment

inflow in Indias oil and gas sector. It took years to create India as a good

brand for investments in its oil and gas sector. The Reliance Anil Dhirubhai

Ambani Group has asked the oil ministry to appoint an expert panel to

revaluate the high capital expenses claimed by Mukesh Ambani-led Reliance

Industries for the Krishna-Godavari gas basin. Prime Minister Manmohan

Singh suggested the warring brothers that they should make serious effort to

reach a "middle ground" over the KG gas dispute. So this brand has now beenhit by the ongoing controversy between the two Ambani brothers.

EFFECTS OF CONFLICTS:

Conflict situations result in negative and positive effects. They may help diffuse

more serious conflicts, stimulate a search for new facts or resolution, increase

group cohesion and performance, and demonstrate the power or ability of theconflicting parties. Conflicts could hinder smooth working or the decision

making process, or create competing coalitions or reduce productivity.


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Effect of conflict management in an organization

High

B

Optimum level of conflicts leads to effective

decision making

Level of Organizational and high performance.

Performance

A C

Low level of conflict high

Too little conflict causes performance to too much conflict

suffer causes performance to suffer


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Positive effects:

Diffuses more serious conflicts

Stimulates a search for new facts or resolutions

Increases group cohesion and performance

Demonstrates measure of power or ability

Negative effects:

hinders smooth working

hampers the decision making process

causes the formation of competing

SOLUTION TO SOLVE THE CONFLICTS:

Conflict in the workplace just seems to be a fact of life. We've all seen situations

where different people with different goals and needs have come into conflict.

And we've all seen the often-intense personal animosity that can result.

The fact that conflict exists, however, is not necessarily a bad thing: As long as it is

resolved effectively, it can lead to personal and professional growth.

In many cases, effective conflict resolution skills can make the difference between

positive and negative outcomes.

The good news is that by resolving conflict successfully, you can solve many of

the problems that it has brought to the surface, as well as getting benefits thatyou might not at first expect:

Increased understanding: The discussion needed to resolve conflict expands

people's awareness of the situation, giving them an insight into how they can

achieve their own goals without undermining those of other people;


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Increased group cohesion: When conflict is resolved effectively, team

members can develop stronger mutual respect, and a renewed faith in their

ability to work together; and

Improved self-knowledge: Conflict pushes individuals to examine their goals in

close detail, helping them understand the things that are most important to

them, sharpening their focus, and enhancing their effectiveness.

However, if conflict is not handled effectively, the results can be damaging.

Conflicting goals can quickly turn into personal dislike. Teamwork breaks

down. Talent is wasted as people disengage from their work. And it's easy to

end up in a vicious downward spiral of negativity and recrimination. If you'reto keep your team or organization working effectively, you need to stop this

downward spiral as soon as you can.


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Conclusion

FROM THE ABOVE DATA WE CONCLUDE THAT

CONFLICT MANAGEMENT IS A RESPONSIBILITY OF ALL

EMPLOYEES.

ALL STYLES HAVE THEIR PLACE, BUT COLLABORATION IS

BEST FOR MOST WORK SITUATIONS.

Hence to achieve success, it is very important for each and every

member of an organization to be emotionally stable i.e to have

strong control over their emotions because it is the employees who

are the most important part of any organization and form the

organization.

Therefore they should behave in such a manner so that there occurs

no conflict amongst them and if any such conflict takes place then

the organization should be capable enough to solve these issues

becoming hindrance for achieving the goals.


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BIBLIOGRAPHY:

Robbins. Stephen (2009), Organizational Behavior,12th

Http/www.financial express.com

Http/www.advanced search.com

Http/www.wikepedia .com

http://www.authorstream.com/Presentation/ruchira.ku

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