Showing posts with label Conflict Management. Show all posts
Showing posts with label Conflict Management. Show all posts

Channel Dynamics, Channel Role, Channel Power, Channel Conflict and Resolution of Channel Conflict

Meaning of Channel Dynamics


Products of any company should be sent to sale – centers for selling out. The way used to send goods / products of a company to consumers is called distribution channel. Distribution channels may not be same forever. Distribution channel should be changed according to environmental changes. Changing of channels according to time is called channel dynamics. As the marketing is dynamic, so the distribution channel is dynamic. It does not remain in traditional structure. It also remains changing and developing according to time and is applied accordingly.

New persons and new organizations enter in marketing channel system at different times. The functions and roles of such channel members become different according to the changes of time. So, distribution channel does not remain same for long, but remain changing.

The channels unsuitable to the new behavior disappear and new channels appear, develop and remain changing. So, it becomes clear that the channel of marketing becomes dynamic. They are directly related factors, market related factors, channel objective related factors, middlemen related factors, company related factors and environment related factors.

Channel Role


Each member involved in channel has his own roles. Such role may be leadership providing role and also may be subordinate or follower's role. If any change takes place in existing roles of the members, help may increase or conflicts appear. If any change does not come in the roles of channel members, only then marketing channel system can work well. So, roles of all channel members should be clear. Only then all the channel members can perform their responsibilities. As a result, all the activities of distribution channel become fruitful.

Channel Power


The capacity that can change channel members involved in distribution is called power. Channel leader persuades and controls the channel members. Mostly, channel power emerges from following five sources:

1. Reward power


The capacity to give financial or non-financial reward to the channel members involved in distribution is called reward power. Mostly, the producers use such type of reward power. Nowadays, this power has become very popular.

2. Coercion power


The power to punish, frighten, threaten etc. to all the channel members is called coercion power. Under this power, the channel members are forced to perform any work. Such power can be used by producers against wholesalers and retailers.

3. Referent power


Referent power comes out from intense desire of any channel member to be involved in channel system. Many middlemen desire to be involved for dealing with best brand of products. Due to such desire of middlemen, producers may use referent power.

4. Expert power


Expert power is acquired from long experience and special knowledge. Every channel member cannot use this power. Only those who have special knowledge and experience can use this power.

5. Legitimate power


The power which can influence / persuade and control channel members is called legitimate power. Ownership of reputed brand can provide this type of power. This types of powers makes every business just and regular.

Channel Conflict


Good relation and mutual coordination is needed among channel members in order to achieve the goal of distribution channel. As many members are involved in distribution channel, there appears conflicting environment. All the channel members may not have same wants, interest, beliefs, objectives and attitudes but may be different from person to person. As a result, conflict arises in distribution channel. Absence of harmony among channel members in their objective and functions causes conflict in distribution channel. Ideological difference, poor information, perceptual differences, unclear role, goal incompatibility etc. cause conflict.

Related Topic: Meaning and Concept of Conflicts


Channel conflict is related to human behavior. The humans have to perform their works remaining within a certain organizational environment. Misunderstanding may occur among them for several reasons. Such conflict may arise among individuals, groups, places, situations, organizations etc. In this way, conflict may arise between two sides or more in different situations. So, channel conflict can be resolved through talks, change in objective, improvement in communication and restructure of channel. So, conflict should be minimized as soon as possible not letting it spread from certain limit.

Resolution of Channel Conflict


The task of solving channel conflict is also called conflict management. Conflict surfaces for one or the other reason, but it should be not be let go beyond certain limit. If such conflict is not solved in time, it invites a great accident. So, conflict should be solved immediately by identifying its responsible causes. Generally, the following methods can be applied to solve conflict:

1. Problem solving


Various types of conflicts can emerge in distribution channel. They should be solved as soon as possible. Problem solving method is one of many methods. According to this method, all the channel members sit together, interact and find a common solution of the problem. Channel leader or any other members can also do such work.

2. Goal modification


Channel conflict can also be solved by modifying goal. Under this method, all the channel members sit together, scrutinize the causes of the conflict and new goal is formed. Such goal should be accepted by all channel members.

3. Persuasion


Channel conflict can be solved by clearly interpreting subject matter or persuading the channel members. Under this, channel leader persuades and calls all channel members to work for the interest of group members. In this method, the channel leader uses his power to persuade or convince the members and solve the conflict.

4. Bargaining


In this bargaining method, all the channel members sit together, discuss the responsible causes for the conflict and agree on a new contract. Neutral member plays an important role in facilitating new agreement. Such agreement should be accepted by all the channel members, channel conflict is automatically solved. But, if the channel conflict is to be solved promptly, this method is not suitable.

5. Diplomacy


Conflict among channel members should be minimized at certain level or solved. Diplomatic behavior of management helps in solving conflict. When the conflict appears, the management should give notice or information to all the channel members that it will be properly solved finding out the responsible causes. Because of mannered conduct, equal behavior, evidential logics of the management, channel members feel satisfied by which the conflict can be slowly tapered down.

6. Improvement in communication


Distribution channel also needs different information and notices. So, information should be clear, meaningful, and simple. Due to weak information system, conflict arises in channel. Such conflict can be tapered down through improvement in information system. But improvement in communication should be on both sides. Otherwise information becomes meaningless.

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Suggestion for Effective Management of Conflict

From the previous technique, what picture can be drawn out is that conflicts are solved by the groups. Manager has to play key role on managing every conflict. It conflict goes out of his/her hand, it brings many negative consequences in the attainment of the goal. So the rational manager's duty is first identify the sources of conflict, diagnosis it and use different technique depending upon the nature and size of conflict to manage it.

Among different approaches of conflict management, I think avoiding approach is the most effective for managing conflict.

Avoiding: Avoiding is a style low on both assertiveness and cooperativeness. Avoiding is a deliberate decision to sidestep a conflict issue, postpone addressing it till later or withdraw from a conflicting situation. In certain situations, it may be appropriate to avoid a conflict. For example, when parties are much angry and need time to cool down, it may be best to use avoidance. Avoiding conflict can be very functional when the issue involved in the conflict is trivial. However, research shows that overuse of this style results in negative evaluations from others in the workplace. Here is an example of the avoiding style of conflict management in use.

The head of a large MNC stayed regularity in a posh five star hotel in Kathmandu. On one such trip, he forgot to remove the "Do Not Disturb" sign from his door when he left for work in the morning. He came back late at night to find his room as he had left it: the sheets unchanged, the breakfast tray still there, and the room unswept. The sign on the door was intact.

His reaction: He charged down to the reception, sign in hand, and proceeded to scream the hotel down. When the receptionist said that they were merely following his instructions, he got even more agitated, saying that he could have died in his room, and nobody would have disturbed him.

The situation was rapidly spiraling of control, when the hotel's General Manager stepped in. within minutes, he has pacified the charged executive apologizing profusely instead of arguing with him. He then put him in a better room till his room was made up, and sent him dinner. Suitably mollified, the guest was soon tucking into his food all anger forgotten, and the staff heaved a sigh of relief.

Conflict Management and Approaches to Conflict Management

Conflict has been defined from several stand points in literature. In one approach, it has been related with tension and defined as expression of hostility, negative attitude, antagonism, misunderstanding, aggression, rivalry, stereotypes, etc. In political science and economics, it has been associated with situations, bodying contradictory or irreconcilable interest between two opposing groups. Conflict is also considered a special kind of competition and as a break down, delay and difficulty in the decision making process. In general, conflict has been defined as a process in which an individual purposefully makes a concerted effort to offset the efforts of another individual by some form of blockage that causes frustration to the better in accomplishing his goals or furtherance of his interests.


Conflict is a normal part of daily life and of every organization. There is always the potential for conflict to occur at some level or another if more than one person participates in organizational activities. When conflict does occur, the result may be positive or negative, depending on how this result is involved to approach. Individuals have to deal with conflict within them; groups may be in conflict with other groups. Organizations have to survive despite the conflicts. Managers often have to assume the role of conflict manager, mediating between parties in conflict. They may also be involved on an almost daily basis. There are a number of techniques available for use in dealing with conflicts, which may vary in applicability according to the nature of the conflict. The different approaches discussed to manage conflict in the organization are:

Approaches to Conflict Management

Conflict arises from different sources. It is inevitable to avoid conflict in organizational setting. So with appropriate technique, conflict should be managed. There are different approaches to manage conflict. But in management literature, the highly adopted approaches are as follows:
approaches to conflict management

Interpersonal Conflict Management Approaches

1. Dominance / Forcing

This is the easiest technique to manage conflict. In this technique, manager will eliminate the conflicting parties. By dismissing the conflicting parties the conflict can be managed. But this is a short-term solution not a long term.

The forcing response (assertive uncooperative) is an attempt to satisfy one's own needs at the expenses of the needs of the other individual. This can be done by using formal authority, physical threats, manipulation plays, or by ignoring the claims of the other party. The open use of the authority of one's office or a related form of intimidation is generally evidence of a lack of tolerance or self-confidence. The use of manipulation or feigned ignorance is a much more subtle reflection of an egoistic leadership style. Manipulative leaders often appear to be democratic by proposing that conflicting proposals be referred to a committee for further investigation. However, they ensure that the composition of the committee reflects their interests and preferences so that what appears to be selection based on merit is actually an authoritarian act. A related play (accounting plan on action for own advantage) some managers use is to ignore a proposal that threatens their personal interests. If the originator inquires about the disposition of his or her memo, the manager will plead ignorance, will blame the mail clerk or new secretary and then will suggest that the proposal be redrafted. After several of these encounters, subordinates generally get the message that the boss isn't interested in their ideas.

The problem with the repeated use of this conflict management approach is that it breeds hostility and resentment. While observers may intellectually admire authoritarian or manipulative leaders because they appear to accomplish a great deal, their management styles generally produce a backlash in the long run as people become increasingly unwilling to absorb the emotional costs and work to undermine the power base of the authoritarian leader.

2. Avoidance

Conflict can be managed by avoiding it. In this technique one party avoids the conflict and let the conflicting parties to win. Moreover, redefining the goals and not making over-lapping of goals can also manage conflict.

The avoiding response (uncooperative, unassertive) neglects the interests of both parties by sidestepping the conflict or postponing a solution. This is often the response of managers who are emotionally ill-prepared to cope with the stress associated with confrontations, or it might reflect recognition that a relationship is not strong enough to absorb the fallout of an intense conflict. The repeated use of this approach causes considerable frustration for others because issues never seem to get resolved. Really tough problems are avoided because of their high potential for conflict and subordinates engaging in conflict are reprimanded for undermining the harmony of the work group. Sensing a leadership vacuum, people from all directions rush to fill it, creating considerable confusion and aversion in the process.

3. Smoothing

In this technique, the differences between two parties are disguised while similarities are highlighted. This make the other party feel that they are not much a part from each other. This shared viewpoint enhances the possibility of working together for common goals. However smoothing, it is a temporary solution only.


4. Compromise

In this technique, the conflicting parties' compromise with each other on certain points and conflict is resolved. The party provides something else to other parties in exchange for the desired outcomes. But this is also a temporary solution. If the desired outcome is not achieved, conflict again arises.

The compromising response is intermediate between assertiveness and cooperativeness. A compromise is an attempt to obtain partial satisfaction for both parties, in the sense that both receive the proverbial "half loaf." To accommodate this, both parties are asked to make sacrifices to obtain a common gain. While this approach has considerable practical appear to managers, its indiscriminate use is counterproductive. If subordinates are continuously told to "split the differences", they may conclude that their managers are more interested in resolving disputes than solving problems. This creates a climate of expediency that encourages game playing, such as asking for twice as much as you need.

A common mistake made in mergers is placing undue emphasis on "being fair to both sides" by compromising on competing corporate policies and practices as well as on which redundant staff members get laid off. When decisions are made on the basis of "spreading the pain evenly" or "using half of your procedures and half of ours", rather than on the basis of merit, then harmony takes priority over value. Ironically, actions taken in the name of "keeping peace in the merged families" often end up being so illogical and practical that the emerging union is doomed to operate under a pall of constant internal turmoil and conflict.


5. Hierarchical Decision Making

In this technique, a common superior can be requested to use his authority to resolve conflict through a proper decision. However, it is very widely accepted technique but it loses its goodness when the authority figure fails to understand the issue properly and the subordinates do not respect them.

6. System restructuring

Sometime, by restructuring system, conflict can be managed in the organization, system restructuring technique involves the clarifying demands and segregating roles in different position, and people can resolve role conflict.

7. Problem solving

In this technique, problem is solved through face-to-face confrontation and tries to accomplish the common interest of the parties in conflict. In this technique, area of common interest is identified and information's views are shared and effort is made to achieve mutual common interest. However this technique is effective to remove misunderstanding among the parties but it is time consuming technique.

The collaborating approach (cooperative, assertive) is an attempt to address fully the concern of both parties. It is often referred to as the "problem-solving" mode. In this mode, the intention is to find solutions to the cause of the conflict that is satisfactory to both parties rather than to find fault or assign blame. In this way, both parties can feel that they have "won". This is the only win-win strategy among the five. The avoiding mode results in a lose-lose outcome and the compromising, accommodating and forcing modes all represent win-lose outcomes. Although the collaborative approach is not appropriate for all situations, when used appropriately, it has the most beneficial effect on the involved parties. It encourages norms of collaboration and rust while acknowledging the value of assertiveness. It encourages individuals to focus their disputes on problems and issues rather than on personalities. Finally, it cultivates the skills necessary for self-governance, so that effective problem solvers feel empowered. The collaborative approach to problem solving and conflict resolution works best in an environment supporting openness, directness and equality.

8. Bargaining

In this technique, parties in conflict bargain each other to solve the conflict. Here, the use of bargaining power is highly used.

9. Accommodating

The accommodating approach (cooperative, unassertive) satisfies the other party's concerns while neglecting one's own. Unfortunately, as in the case of boards of directors of failing firms who neglect their interest and responsibilities in favor of accommodating the wishes of management, this strategy generally results in both parties "losing". The difficulty with the habitual use of the accommodating approach is that it emphasizes preserving a friendly relationship at the expense of critically appraising issues and protecting personal rights.

The table shows a comparison of conflict management approaches. In this table, the fundamentals of each approach are laid out including its objective, how that objective is reflected in terms of an expressed point of view, and a supporting rationale. In addition, the likely outcomes of each approach are summarized. 

Approach

Objective

Point of View

Supporting Rationale

Likely Outcome

Forcing

Get your way

"I know what's right. Don't question my judgment or authority."

It I better to risk causing a few hard feelings than to abandon an issue you are committed to.

You feel vindicated but other party feels defeated and possibly humiliated.

Avoiding

Avoid having to deal with conflict

"I'm neutral on that issue." "Let me think about it." "That's someone else's problem."

Disagreements are inherently bad because they create tension.

Interpersonal problems don't get resolved, causing long-term frustration manifested in a variety of ways.

Compromising

Reach an agreement quickly

"Let's search for a situation we can both live with so we can get on with our work."

Prolonged conflicts distract people from their work and engender bitter feelings.

Participants become conditioned to seek expedient, rather than effective solutions.

Accommodating

Don't upset the other person

"How can I help you feel good about this encounter?" "My position isn't so important that it is worth risking bad feelings between us."

Maintaining harmonious relationships should be our top priority.

The other person is likely to take advantage of you.

Collaborating

Solve the problem together

"This is my position. What is yours?" "I'm committed to finding the best possible solution." "What do the facts suggests?"

The positions of both parties are equally important (though not necessarily equally valid). Equal emphasis should be placed on the quality of the outcome and the fairness of the decision making process.

The problem is most likely to be resolved. Also, both parties are committed to the solution and satisfied that they have been treated fairly.

(Source: Whetten, D.A., & Cameron, K. S. (2011), Developing Management Skills)


The following identifies four important incident-specific circumstances that can be used to select the appropriate conflict management approach. These can be stated in the form of diagnostic questions with accompanying examples of high and low responses. 

Situational Considerations

Conflict Management Approach

Forcing

Accommodating

Compromising

Collaborating

Avoiding

Issue Importance

High

Low

Med.

High

Low

Relationship Importance

Low

High

Med.

High

Low

Relative Power

High

Low

Equal

Low-High

Equal

Time Constraints

Med.-High

Med.-High

Low

Low

Med.-light

(Source: Whetten, D.A., & Cameron, K. S. (2011), Developing Management Skills)


The advantage of this table is that it allows you to quickly assess a situation and decide if a particular conflict management approach is suitable. As noted in the following descriptions, it is important to keep in mind all of the situational considerations that are not equally important for selecting a particular approach. 

The forcing approach is the most appropriate when a conflict involves values or policies and one feels compelled to defend the "correct" position; when a superior-subordinate relationship is involved; when maintaining a close, supportive relationship is not critical; and when there is a sense of urgency. An example of such a situation might be a manager insisting that a summer intern follow important company safety regulations. 

The accommodating approach is most appropriate when the importance of maintaining a good working relationship outweighs all other considerations. While this could be the case regardless of your formal relationship with the other party, it is often perceived as being the only option for subordinates of powerful bosses. The nature of the issues and the amount of time available play a secondary role in determining the choice of this strategy. Accommodation becomes especially appropriate when the issues are not vital to you and when interest and the problem must be resolved quickly. 

Trying to reach a compromise is the most appropriate when the issues are complex and moderately important, there are no simple solution and both parties have a strong interest in different facts of the problem. The other essential situational requirement is adequate time for negotiation. The classic case is a bargaining session between representative of management and labor to advert scheduled strike. While the characteristics of the relationship between the parties are not essential factors, experience has shown that negotiations work best between parties with equal power who are committed to maintaining a good long-term relationship. 

The collaborating approach is the most appropriate when the issues are critical, maintain an ongoing supportive relationship between peers is important, and time constraints are not pressing. Although collaboration can also be an effective approach for resolving conflicts between a superior and subordinate, it is important to pint out when a conflict involves in peers, the collaborative mode is more appropriate than either forcing or accommodating approach. 

The avoidance approach is the most appropriate when one's stake in an issue is not high and there is not a strong interpersonal reason for getting involved, regardless of whether the conflict involves superior, subordinate or peer. A server time constraint becomes a contributing factor because it increases the likelihood of sign avoidance, by default. While one might prefer other strategies that have a good chance of resolving problems without damaging relationships, such as compromise and collaboration, these are ruled out because of time pressure. 


Structural Conflict Management Approach 

The change in organization structure or some part of it can reduce dysfunctional conflicts. It is observed that conflicts can be reduced by decentralization, restricting to remove obvious differentials in status symbols between hierarchical interest groups, development of cycles of work, with opportunity to employees to complete tasks and sharing in organizational rewards. Such structural variables, more specifically, can be used in the following ways: 

a) Reduction in Interdependence 

The reason of having inter-group conflict is interdependence among them. Whenever there is less interdependence, the various divisions of the organization are relatively self-contained and independent. In sequential interdependence, there is high degree of interdependence between two or more departments which might be using the product of others in a particular sequence. The units are more interdependent when the interdependence is reciprocal, that is, the outcome of various units becomes input to others. According to conflict model, the degree of conflict is high in the case of latter two relationships, that is, more the interdependence, more the chances for conflict. In organizations, such interdependence cannot altogether be avoided, however, instead of separating units organizationally, they can be separated physically. Physically separating the conflicting groups has the distinct advantage of preventing more damage from being done and of preventing the creation of further rationale for fighting. 

b) Reduction in Shared Resources 

The potential for conflict increase whenever two or more than two units are required to share resources, particularly scarce ones. The management of conflict suggests reducing such sharing. One technique for reducing such sharing is the increase in such resources so that each unit is independent in using them. However, since resources are scarce, it is not always possible to do so. As such, measures may be adopted for their optimum allocation. 

c) Exchange of Personnel 

In a research study, it was found that the exchange of people program was effective at reducing conflict and speeding agreement. Personnel of the conflicting groups may be exchanged for a specified period as a way to reducing and managing conflict. An exchange of people is very similar to role reversal, which is aimed at greater understanding between people by forcing each to present and defend the others position. 

d) Certain of Special Integrators 

Lawrence and Lorsch have found that in certain situations, particularly when there are much differentiation between departments in terms of time span, goals and values, the use of special integrator departments or individuals facilitate the management and resolution of interdepartmental conflicts. For example, they found that integrators were more effective when they were viewed as about intermediate in position between the conflicting departments, where they were viewed as high in influence, and where they perceived that their rewards were tied to the total performance of the two groups they were integrating. 

To resolve conflict, organization may create provisions for the appointment of special integrators who may manage the interdependence of various groups so that unresolved matters can be solved through them. 

e) Reference to Superior's Authority 

If resolution cannot be attained by two organizational members, they may take the issue to a common superior who resolves the conflict by making a decision; such a decision is usually accepted by organizational members because of the recognized superior authority of high-ranking individual. Such a decision may not necessarily bring agreement but it will usually be accepted. 


Project Progress Control, Financial Management, Change and Conflict Management, Output Delivery

Project Progress Control

Control is monitoring and correction of performance to achieve project objectives. It consists of :
  • Tracking actual progress of the project.
  • Comparing actual progress with the targets.
  • Analyzing deviations between actual and targeted progress.
  • Corrective actions to address deviations. Problems are dealt with.
  • Informing stakeholders about the project progress.

Financial Management


The project manager is responsible for efficient and effective use of financial resources. Budgetary control and cost control techniques are used for making effective use of resources. Waste is eliminated.

Change and Conflict Management


Project implies change. The project manager is responsible for managing change. He should also identify and manage risks in the project. Conflict is inevitable in project. The project manager should communicate and negotiate with all the parties involved  in the conflicts. He should avoid management by crisis.

Project Output Delivery

The project manager is responsible to deliver the project deliverable to the customer.

Project Termination Management

The project manager is also responsible for handover of the project after its termination.

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