LO 2 Understand the nature of industrial conflict and its resolution

To - Mr.Jefferson (Chief Executive Officer of AIM Company)

From - Zwe Pyae Phyo Maung (Management Consultant of AIM Company)

Subject- This report is explained about the nature of industrial conflict and its resolution.

2.1 Explain the procedures an organization should follow when dealing with
different conflict situations.

The nature of conflict

In any organisation including many people, all with their own personalities, attitudes and values,
there is bound to be conflict. Conflict consists of an obvious clash of interests between people in
an organization. According to Cole, conflict is a condition that arises whenever the perceived
interests of an individual or a group clash with those of another individual or group in such a way
that strong emotions are aroused and compromise is not considered to be an option.

Some researchers believe that conflict is good because it challenges the status quo, encourages
individuals and groups to air their views, and if properly managed, aids the healing process.
Some studies argue that conflict is bad and dangerous, counterproductive and should not be
allowed to arise in the first place. Schmidt has proved that conflict has both positive and negative
outcomes. The positives and negatives outcomes of conflicts are shown in table.

Positive outcomes Negative outcomes

Better ideas are produced. Some people feel depressed and demoralised.
Individuals are forced to look for better The psychological distance between people can
approaches to their problems. increase.
Individual and management views become A climate of mistrust, resistance and suspicion
clarified. may result.
Interest and even creativity are stimulated. Time and effort are spent on defending narrow
interests.
People are able to test their mettle. Employee turnover may increase.

Types of conflicts
There are three main types of conflict. They are intergroup conflict, personality conflict and
cross cultural conflict.

Intergroup conflict

Intergroup conflict involves conflict between two or more groups and their respective members
are often necessary to complete the work required to operate a business. For example, the line
managers may resent their dependence on employees for information and recommendations. The
employees may resent their inability to implement directly their own decisions and
recommendations. This interdependence causes intergroup conflict.

Personality conflict

Personality conflict occurs when one person wants does not match what the other wants. In the
workplace, incompatible ideas may concern many issues, involving the allocation of resources
and the adoption of particular business strategies. People may deal with intense disagreements in
many ways involving verbal or physical fighting.

Cross cultural conflict

Cross cultural conflict can occurs when the conflict between different nationalities and religious
groups, cultural ignorance and insensitivity, lack of awareness of different societal lifestyle
practices, diversity in cultural practice, miscommunication and misinterpretation at workplace..

2.2 Explain the key features of employee relations in a selected conflict

situation
Dispute is any serious disagreement between two parties. As an example, there could be a
dispute over a problem of discipline in the workplace, over complaints which employees have, or
over dismissals. There can also be disputes over wages and other working conditions.

There are many kinds of disputes. Among them, disputes of interest and disputes of right are
main kinds of disputes.

Disputes of interest

A dispute of interest occurs from the different aspirations included in the terms and conditions of
employment contract. As an example, staff wanting to get higher wages or the employer bringing
in a new pension or provident fund scheme which staff must belong to. These disputes are
usually handled by Trade Union and are the subject of negotiation and possible strike action
where agreement cannot be reached.

Disputes of right

A dispute of right occurs from an alleged violation of rights that have been established by a
contract of employment. They often include an unfair dismissal, unfair discrimination and unfair
labour practice.

There are many factors which can cause conflict between two or more parties within
organization. The main causes of conflicts in AIM organizations are shown in below.

Competition
Communication failures
Inequity

Competition

Competition can take place a number of forms in organizations for rewards, promotion, scare
resources and so on and may involve both individuals and groups. Where the outcome of
competition is unfavourable to a particular party, the sense of over complaints may be such that
there will be conflict.

Communication failures
Poor communication can cause a number of problems in organizations. When team members do
not share relevant information with team mates, people may take decisions or take actions that
others consider unsuitable or even harmful. And this can cause conflict.

Inequity

If people consider their treatment to be unjust or unfair then conflict will cause and they will feel
motivated to restore the balance.

Dealing with conflict at an early stage will save time, money and stress later on, for both the
employer and staff and will stop the situation developing into a full-blown dispute. There are a
number of competitions are causing in AIM Company. Most of the employees are competing for
bonus, salary, and promotion. In my opinion, it is good for short term because employees will
work hard in order to get bonus, promotion and salary.
But every employee cant get the rewards. Only hard working and good employees can get the
rewards. The employees who dont get rewards will jealous to their partners or peers and this can
lead to disputes at the workplace. Thus, it is not good for long term. Communication failure is
another reason of conflict in AIM Company. For poor communication with employees, there can
have a gap of understanding between management and employees. And AIM Company should
treat the employees equally. When equitable treatment is disappeared, conflicts can inevitable in
the AIM organization. Thus, the company should avoid the unfair treatment at workplace.

For M2

The Welfare System of Myanmar Shining Stars Company

Myanmar Shining Star Company is one of the famous companies in Myanmar which provide
hotel service in Myanmar. In this case, we will discuss about the welfare system of Myanmar
Shining Stars Company. The first part of employee welfare is clean water. Myanmar Shining
Stars Company provides clean water in every workplace for the employees.

Myanmar Shining Stars Company provides canteen facilities for employees. So, every employee
can eat delicious and nutrition food in canteen with reasonable price. Therefore, they dont need
to go and buy food from outside. So, this can save time and energy of employees.

Myanmar Shining Stars Company provides first aid appliances and readily assessable so that in
case of any minor accident initial medication can be provided to the needed employees. And the
company provide medical check-up for the employees every six months. Thats show the
Myanmar Shining Stars Company is caring their employees.

Training and Development is an importance part of welfare program because it can achieve
individual to increase skills and expertise to enable increase productivity and performance. The
Myanmar Shining Stars Company is provided cleaning and safety workplace, adequate lighting
and air system for the employees. So, the employees can work comfortably.

Myanmar Shining Stars Company is extremely restricted discrimination in workplace because

the company is assigned many ethics such as Kachin, Karin, Chin people as well as religion in
Christian, Buddhism, Islam and Hindu. If the employee is discriminate each other in workplace,
Myanmar Shining Stars Company will take actions for those employee and not considering their
positions in company.

Myanmar Shining Star Company is also providing flexitime to give opportunity to employees to
work with flexible working schedules. Flexible work schedules are initiated by employees and
approved by management to meet business commitments while supporting employee personal
life needs. These are the employee welfare program of the Myanmar Shining Stars Company.

2.3 Evaluate the effectiveness of procedures used in a selected conflict

situation
The meaning of conflict is disagreement between individuals or groups. Conflict management
reduces the harmful effects of conflict and promotes the positive outcomes of conflict with the
goal of improving learning in company or organization.

Conflict draws attention to things going wrong, and indicates that there are different views within
the organization, enabling it to change direction to cope with changing conditions. Thus,
managers of AIM organization need to control the conflicts and understand its basis in order that
a proper balance may be maintained and the negative outcomes minimised.

Managing Conflict-Strategies

There are a number of strategies for conflict resolution where it arises. Two main ways are to
change the solution from which the conflict occurs, or to deflect the conflict by re-orientating the
goals of the parties.

Conflict management techniques

Conflict situations are significant aspects of every organization. Managers must understand the
conflict management techniques in order to reduce or resolve the conflicts between subordinates
and themselves, and between individuals or groups within their purview. According to Thomas,
there are five conflict management techniques used by managers. They are

Accommodating
Avoiding
Compromising
Collaborating
Competing

Accommodating

This strategy allows other party to win and gives what they want. The use of accommodation
usually arises when one of the parties wishes to keep the peace or perceives the issue as minor.

Avoiding

This strategy is retreating from an actual or potential conflict situation. This strategy is very
useful in the short term but it is not suitable for long run.
Compromising

Comprising is seeking for an expedient and mutually acceptable solution that partially satisfies
both parties.

Collaborating

Collaborating is also known as problem solving technique. This strategy includes an attempt to
work with the other person to seek a win-win solution to the problem in hand- the one that most
satisfies the concerns of both parties.

Competing

Competing is also known as forcing. This technique is an individual firmly pursues his or her
own concerns despites the resistance of the other person. This strategy includes being assertive,
uncooperative and using power to win.

Managers must understand the conflict management techniques in order to reduce or resolve the
conflicts between subordinates and themselves, and between individuals or groups within their
purview. I explained five common methods of handling conflicts on above. Avoiding strategy is
very useful in short term. AIM Company should use this technique if the problem is not very big.
AIM Company should use collaborating strategy in order to solve the long term problems in
work place because it is win- win situation. So, it is good for both parties. AIM Company will
use competing technique if the situation is very urgent and decision need to be made very
quickly.

For D1

In April, there are 1000 workers at E- Land Myanmar garment factory in Shwe Pyi Thar, went on
strike. Demanding a pay raise, workers also claimed to have lost several of their rights when the
factory was privatized and production changed from paper and household goods to clothing.

Organizers from Industrial Global Union affiliate Industrial Workers Federation of Myanmar
supported the striking workers. They were told of conditions in the factory, with 1 toilet for 1000
workers, how they lack access to pure drinking water, and that workers dont enjoy the benefits
that they are entitled by law.
The striking workers made a lot of demands involving not to forced overtime, double overtime
rate on National holidays and Sundays, increased break time to 20 minutes, working hours for 8
hours a day, as well as a salary increase from 30000 kyats per month to 60000 kyats.

After negotiations all demands apart from the pay raise were met. After first only agreeing to an
increase 20000 kyats per month, the employer and the workers settled on a new monthly salary
of 50000 kyats.

As Myanmar is moving on from a dictatorship where trade unions were illegal, there is a huge
need for capacity building and training. Representatives from Industrial Workers Federation of
Myanmar explained about privatization, the process of collective bargaining, and how to build
strong unions. Workers at the factory have agreed to form and register a union, and membership
is expected to 500.