CHAPTER 14

EMERGING MANAGEMENT CONCEPTS

Unit Objectives:

After completion, students are expected to know the following:

• Conflict Management

• Knowledge Management

• Participative Management

CONFLICT MANAGEMENT
Conflict is a disagreement between two or more individuals or groups. It is an opposition or dispute in ideas,
views, and approaches between persons, groups or organizations. In an organization, more than two persons
work together to achieve organizational goals. Those persons have to interact with each other. As a result of
interaction sometimes conflict may occur. Conflict is a part of human nature and it is natural. It is an
outcome of behavioral interactions. Conflict must be handled in time; otherwise it can result in complex
situations in an organization like strikes, violence, vandalism, etc.

According to Joe Kelly, “Conflict is opposition or dispute between persons, groups or ideas.”

According to Ricky W. Griffin, “Conflict is a disagreement among two or

more individuals, groups or organizations.”

CAUSES OF CONFLICT
The causes of conflict are as follows:

1. Limited Resources
If the members of an organization fight for limited resources of the organization, then it creates
conflict.

2. Goal Differences
When individuals of the same group work with different goals, then it gives birth to conflict among
them.

3. Unclear Communication
If different ideas, facts and opinions are not properly communicated, i.e. not shared with the relevant
persons, it creates disorders and hence results in conflicts.

4. Structural Changes
Organizational members might feel hard to adjust instantly with the changes made in the
organizational structure. This can result in conflict.

5. Weak Organizational Rules and Regulations

If an organization has unclear, weak and confusing rules, then it might create conflicts. If there are
unfair practices and prejudices among employees, then conflicts can arise.

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 6. Deprivation of Rights
If the facilities, authorities and rights, which the employees have been enjoying are suddenly
withdrawn by the management, then conflict may arise.

MANAGEMENT OF CONFLICT
Conflict is a natural quality of human beings and it cannot be completely avoided. However, it can be
handled. Conflicts are unavoidable in an organization. But they can be handled and they should be handled
on time to prevent unfavorable results. This technique of handling and managing conflict is called
management of conflict.

Following are some techniques of managing conflict in an organization:

1. Problem Solving
In this technique, attempts are made to solve conflicts through face to face interaction between the
parties of conflict their problems are identified through discussion and they are analyzed in order to
find out the cause of conflict. Their views are properly heard and possible solutions to the problem
are discussed. This technique creates a win-win situation.

2. Expansion of Resources
Conflicts might arise due to the scarcity of the organizational resources as well. In such cases, the
conflicts can be solved by expanding the resources. The organizational members can be provided
with additional resources if they demand for it in their work. This solves the conflict.

3. Change in Organizational Structure

Sometimes conflicts may arise due to the unclear organization structure. In such situation, the
existing organization structure should be modified in the way in which the organizational members
can be clear about their authorities and responsibilities. Modifications can be done in the authorities
and responsibilities of the employees so that they can be satisfied with it and work well in the days to
come.

4. Negotiation and Bargaining

In this technique, the negotiators and mediators can be appointed to solve the conflict through
negotiation. In this technique, the conflicting parties decrease their terms of conflicts or matters and
finally reach an agreement where the conflict is solved.

5. Compromise
In this technique negotiation are held to settle the issues and conflicts are solved through the
intervention of managers. Each party of the conflict loses or gives up something in this technique.
This uses a “lose-lose” strategy.

6. Avoidance
Conflicts which are not so serious in nature are just ignored and avoided by the management. They
believe that such conflicts get solved automatically with the passage of time and hence avoided.

KNOWLEDGE MANAGEMENT
Knowledge is something which can help us to achieve success if we use it in practice. Knowledge does not
come for free. It is acquired by human beings through various sources like experience education, training,
etc. Knowledge is a light which can enlighten any person, family, society or the world. Knowledge
management is concerned with acquisition; utilization and analysis of knowledge for the improvement of
organizational performance People acquire knowledge in an organization to effectively use the knowledge in
activities. Learning process increases knowledge whereas knowledge management assures the Success in
activities with the Use of knowledge. Knowledge management involves the generation, acquisition and the

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use of know1dge in proper situations. This increases the competitive strength of the organization and also
the organizational effectiveness.

Kow1edge management has emerged as a popular subject nowadays. That is why it has not only been used
in organization but also in other fields like information technology, public health, science, computer science,
etc.

OBJECTIVES OF KNOWLEDGE MANAGEMENT

The main objective of knowledge management is to improve the work efficiency through the proper
utilization of knowledge. Some of the objectives of knowledge management are as follows:

• To create an environment where knowledge can be made easily accessible and visible.
• To develop knowledge focused culture.
• To build knowledge infrastructure,
• To encourage knowledge sharing and transfer.
• To minimize the cost of training and development.

ELEMENTS OF KNOWLEDGE MANAGEMENT

The elements of knowledge management are as follows:

1. Creation of Knowledge
It is the process of collecting the views and facts about the organization. We cane create knowledge
through creative thinking, experience, studies, research, feedback, etc. The process of creating
knowledge is a continuous one.

2. Sharing of Knowledge
The acquired knowledge is stored in database and is communicated within the entire organization.
This process is called knowledge sharing. This process is carried out through the technological
communication, and organizational efficiency. This process makes the acquired knowledge ready for
useful purpose.

3. Utilization of Knowledge
Utilization of knowledge is the use of acquired knowledge in solving organizational problems.
Knowledge is such a thing which increases when we share and decreases when we don’t share and
just keep it idle.
ELEMENTS OF KNOWLEDGE
MANAGEMENT

Creation of Knowledge Sharing of Knowledge Utilization of Knowledge

Figure 14.1: Elements of Knowledge Management

PARTICIPATIVE MANAGEMENT
Participative management is a new concept in the history of management. It means the direct and indirect
involvement or participation of the workers in the decision making process of the organization. It is the
result of industrial democracy. This concept views the employees and workers in a human approach. It says
that the views of the employees should also be considered as they also have their own ideas, creativity,
experiences and views. In fact, the meaning of participative is to work in co-partnership with the workers.

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In participative management, the employees and workers from all levels of management are involved. This
encourages the employees to work more efficiently for the organization. It gives a feeling to the employees
that they belong to the organization. Considering their views can prove to be beneficial in many cases.
According to Ricky W. Griffin, “Participation is the process of giving employees a voice in making
decisions about their own works.”

OBJECTIVES OF PARTICIPATIVE MANAGEMENT

The objectives of participative management are as follows:

1. To maintain good labor relationship by involving the workers in decision making process.
2. To give a chance to the workers for self expression.
3. To increase productivity.
4. To develop human personality.
5. To develop a sense of equality between the employees and the employers.
6. To fulfill the individual, group and corporate goal.

METHODS/TECHNIQUES OF PARTICIPATIVE MANAGEMENT

The methods of participative management are given below:

i. Joint Management Committee

A joint management committee of employers and employees can be set up to get the latter involved
in decision making procedure. This is a suitable way of involving the employees’ in. the decision
making procedure.

ii. Work Committee

This committee involves equal number of representatives of both employers and employees.
Different kinds of discussions, issues and suggestions are shared in this committee; Decisions are
jointly taken by both the parties.

iii. Quality Control Circle

In this technique, a committee is formed by involving the eligible and experienced employees. This
committee is concerned with maintaining and developing the quality of the goods and services. This
mainly involves the employees with technical and specialized knowledge for maintaining and
developing the quality.

iv. Making Shareholders

The employees can be made shareholders of the organization in order to involve them in decision
making. As we know that shareholders are involved in the decision making of the organization, this
is a way which involves the employees in decision making by providing them shareholder
certificates.

v. Suggestion Scheme
In this technique, employees are encouraged to give their suggestions regarding various
administrative matters and if their suggestions are found suitable, then they are taken up
consideration. That is why, suggestion boxes are kept in all departments where this technique is
applied.