Conflict Management & Ethics in IBM

INTERNATIONAL BUSINESS
MANAGEMENT

UNIT V
ANNA UNIVERSITY SYLLABUS
 Disadvantages of international
business

Adverse effects on economy

Competition with developed countries
Rivalry among nations
Exploitation
Legal problems
Publicity of undesirable fashions
Language problems
Dumping policy
Complicated technical procedure
Shortage of goods in the exporting country
Adverse effects on home industry
Conflicts in International Business

Business and financial institutions have

an important role to play in avoiding or
resolving conflicts that are associated
with economic production.
International conflict is the clash of
interest between the host country, home
country and MNC or the firm related to
these two countries.
Nature of Conflict
Functional versus Dysfunctional Conflicts
Competition and Cooperation Conflicts
Social, Ethnic, and Racial Differences
Conflicts
Types of Conflict
Individual
Organizational
Intra Individual
Inter Levellevel
Individual Level Conflict
Human behaviour is need motivated. A
person joins any organization to satisfy
his needs.
An employee faces a conflict within
himself when he perceives that
organization is not satisfying his needs in
accordance with his perceived
standards.
Individual Level Conflict - Types

Intra Individual Conflict

Conflict due to frustration
Goal Conflicts
Role Conflicts
Inter Individual Conflict
Personal differences
Information Deficiency
Role Incompatibility
Environmental Stress
Group Level Conflict
Intra Group (Within the Group Itself)
Facing New Problem
New values imported from Society
People from different socio economic background

Inter Group (Between Groups)

Competition from resources
Task interdependence
Jurisdictional Ambiguity
Status Struggles
Organizational Conflict
Intra Organizational Conflict
Horizontal Conflict
Vertical Conflict
Line & Staff Conflict
Inter Organizational Conflict
Between Organizations pursuing similar
objectives
Between Govt. Agency & Organizations
Between Head Office & a Mfg Unit
 Sources of Conflict in International
Business

Host Country Factors

 Host country factors
Size & Equity
Home Country Factors
 Combined Factors
Nationality
 Conflict Prevention
Strategies
Participative Decision Making
Conflict Resolution Actions
in IB
 Negotiation in International Business

Negotiation is face to face decision making

process between parties concerning specific
products. J.L. Graham
Negotiation is any form of meeting or discussions
in which you and/or the persons you are in contact
with use argument and persuasion to achieve an
agreed decision or action. Alan Fowler
Negotiation can be between home and host
Government, foreign company and local company,
foreign company and host country Government
and the company with its home Government
Role of Negotiations
Persuade Opponents to revise their
BATNAs
(Best Alternative To Negotiated Agreement)
Determine the other Partys Interests
Re-Assessing ones own BATNA
Building Trust
Factors Affecting
Negotiations
Language Variation
Trust
Cultural differences
Professional Conflict
Negotiated Goal
Protocol
communications
Risk taking propensity
View of time
Decision making system
Form of agreement
Power distance
Personal style
Negotiation Process
Planning
 Role of International Agencies in
Negotiation

Role of International Finance Corporation in conflict resolution (IFC)

Ethics in International
Business
Ethics is a set of standards, or code, or value system, worked out fr
Importance
Ethics corresponds to basic human needs
Ethical Values
Utilization of Natural resources of the host country
Ethical Issues
Sexual & Racial Discrimination
Ethical Decision Making
Recognizing an issues as an ethical one
Problems in Ethical Decision Making

Rigid Rules and Regulations