Showing posts with label conflict. Show all posts
Showing posts with label conflict. Show all posts

Functional and Dysfunctional Conflicts | Assertive Behavior

Functional and Dysfunctional Conflicts

Functional conflicts and dysfunctional conflicts are the two dimensions or the outcomes of the conflicts. Functional conflict has positive effects on the conflicts whereas dysfunctional conflict has negative effects. Both can be discussed with the help of following points: 

1. Functional Conflict: Positive Effects 

Functional conflict is also known as constructive conflict. Such conflict will have positive effects on individuals, groups and organizations. Such conflict is useful in order to solve problems related to individuals and groups. Functional conflict is important for effective performance due to the following reasons: 
  • It ventilates tension from the organization.
  • It increases individual's efforts at work.
  • It helps thinking analytically.
  • It provides foundation for organizational change and development.
  • It provides an individual a chance to think again, undertake self introspection and have a second look at the existing things, like procedures, policies, equipment, behaviors etc.
  • It leads to innovation and at times to new direction. It is, therefore, even necessary for the survival and growth organizations. 
  • It helps to seek classification and generate search behavior.
  • When conflict is developed, attention is immediately drawn to the malfunctioning parts of a system. It is an indication that the situation calls for improvement. Conflict is, therefore, an essential portion of a cybernetic system.
  • At times, it is also used as a means to certain ends and to create confusion or set subordinates against each other in order to maintain the interested parties own position. It may not be a positive outcome in the strict sense of the term from the organizational point of view, but it is certainly a management strategy toward of problems temporarily. It may be viewed as an unavoidable cost of the pursuit of one's aspirations. 
  • Long standing problems, which continue to agitate people's mind in surface, they are able to release their tensions and unburden themselves. They display creativity in identifying solutions and dealing with problems. 
  • It serves as a cementing force in a group and incredible unity is witnessed even in a heterogeneous group at times of tension.
  • It energizes people, leads to mild stimulation and one is at one's best in times of crisis. It helps them test their capacities. 

2. Dysfunctional Conflict: Negative Effects 

Dysfunctional conflict is also known as destructive conflict. Many times conflict may be detrimental and disastrous. Such conflict has negative effect on individuals, groups and the organizational levels. The effects might be diverting energies, hurting group cohesion, promoting interpersonal hostilities and creating negative working environment. Due to the dysfunctional conflict and its negative effects, employees become dissatisfied with the working environment and as a result, absenteeism will increase and productivity will decline. A few dysfunctional effects of rising conflict include: 
  • Increasing conflict will result in delays in meeting schedules, decrease in the quality of goods and services and finally will increase customer complaints.
  • It is undesirable if it creates a climate of distrust and suspicion among people, if some people feel are defeated and demanded and it develops antagonism instead of spirit of cooperation. 
  • In the absence of smooth communication at the workplace, there will be problems in coordinating activities.
  • With the increasing conflict in the organization, people start to divert themselves from the real work schedule and keep less interest and show less energy, and this will ultimately affect the achievement of organizational goals.
  • The increasing negative emotions at the workplace can be quite stressful.
  • When conflict does not lead to solution of a problem, it is unproductive and investment of time and effort goes waste.
  • As a consequence of conflict, there may be intensification of internalization of sub-unit goals which may result in the neglect of overall organizational goals.
  • It is seriously harmful if it distracts attention from basic organizational objectives and makes people work for their defeat. 
  • When management loses objectivity and treats disagreement as equivalent to disloyalty and rebellion, an opportunity for creativity should be deemed to have been lost. It may even pour oil over troubled waters, exploit differences to strengthen itself and weakens others, and accept resolutions capable of different interpretation. 

Assertive Behavior 

Assertive behavior is the behavior which enables person to act in his own best interest, to stand up for himself without undue anxiety, to express his honest feeling comfortably, or to exercise his own rights without denying the rights of others. In other words assertiveness is the expression of one's feelings, beliefs, opinions and needs in a direst, honest and appropriate manner. Such assertive behavior will reflect a high regard for one's own personal rights as well as the rights of others. With a high level of assertive behavior, they will have the highest win-lose orientation. They believe in competition and authoritative command. 

Assertive behavior includes: 
  • Being open in expressing wishes, thoughts and feelings and encouraging others to do likewise.
  • Listening to the views of other and responding appropriately, whether in agreement with those views or not.
  • Accepting responsibilities and being able to delegate to others.
  • Regularly expressing appreciation of others for what they have done or are doing.
  • Being able to admit to mistakes and apologize.
  • Maintaining self-control.
  • Behaving as an equal to others. 

There are both positive and negative aspect of assertive behavior. 

1. Positive Assertive Behavior 

Positive assertive behaviors lead to win-lose strategies in which conflict can be minimized. Positive assertive behavior of a person includes: 
  • Empathies with others.
  • Can request other people to change behavior without any fear.
  • Feels confident, gains self-respect and values other people.
  • Expresses himself or herself directly and honestly.
  • When the situation becomes intolerable, expresses emotional reactions and feelings.
  • Offers problem solving opportunities and indicates the consequences. 

2. Negative Assertive Behavior 

Negative assertive behaviors fail to address the root causes of the conflict and tend to suppress the desires of conflicting parties. Negative assertive behavior of a person includes:
  • Refuses requests of someone else without having uncomfortable feelings.
  • Fights to dominate in win-lose competition (may humiliate other people sometimes)
  • Works against the wishes of the other party. Forces things to a favorable conclusion through the exercise of authority.

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Roles of a Manager for Managing Conflict

Behavioral guidelines for effectively implementing the collaborative (problem-solving) approach to conflict management are organized according to three roles. Guidelines for the problem-identification and solution-generation phases of the problem-solving process are specified for each role. Guidelines for the action plan and follow-up phases are the same for all three roles which are summarized below: 

1. Role of Initiator 

Step 1: Problem Identification 

1:1 Maintain Personal Ownership of the Problem 
  • Succinctly describe your problem in terms of behaviors, consequence and feelings.
  • Stick to the facts (e.g. use a specific incident to illustrate the expectations or standards violated). 
  • Avoid drawing evaluative conclusions and attributing motives to the respondent. 

1:2 Persist until Understood: Encourage Two-way Discussion 
  • Restate your concerns or give additional examples.
  • Avoid introducing additional issues or letting frustration sour your emotional tone.
  • Invite the respondent to ask question and express another perspective. 

1:3 Manage the Agenda Carefully 
  • Approach multiple problems incrementally, proceeding from simple to complex, easy to difficult, concrete to abstract.
  • Don't become fixed on a single issue. If you reach an end, expand the discussion to increase the likelihood of an integrative outcome. 

Step 2: Solution Generation (Make a Request) 
  • Focus on those things you share in common (principles, goals and constraints) as the basis for recommending preferred alternatives. 

2. Role of Responder 

Step 1: Problem Identification 

1:1 Establish a Climate for Joint Problem Solving 
  • Show genuine concern and interest. Respond em-pathetically, even you disagree with the complaint.
  • Respond appropriately to the initiator's emotions. If necessary, let the person "blow off steam" before addressing the complaint. 

1:2 Seek Additional Information about the Problem 
  • Ask questions that channel the initiator's statements from general to specific and from evaluative to descriptive. 

1:3 Agree with some Aspect of the Complaint 
  • Signal your willingness to consider making changes by agreeing with facts, perceptions, feelings or principles. 

Step 2: Solution Generation 
  • Ask for suggestions and recommendations.
  • To avoid debating the merits of a single suggestion, brainstorm multiple alternatives. 

3. Role of Mediator 

Step 1: Problem Identification 

1:1 Acknowledge that a Conflict Exists 
  • Select the most appropriate setting (one-on-one conference versus group meeting) for coaching and fact-finding.
  • Propose a problem-solving approach for resolving the dispute. 

1:2 Maintain a Neutral Posture 
  • Assume the role of facilitator, not judge. Do not be little the problem or berate the disputants for their inability to resolve their differences.
  • Be impartial toward disputants and issues (provided policy has not been violated).
  • If correction is necessary, do it in private. 

1:3 Manage the Discussion to Ensure Fairness 
  • Focus discussion on the conflict's impact on performance and the detrimental effect of continue conflict.
  • Keep the discussion issue oriented, not personality oriented.
  • Do not allow one party to dominate the discussion. Ask directed questions to maintain balance. 

Step 2: Solution Generation 
  • Explore options by focusing on the interest behind stated positions.
  • Explore the "whys" behind disputants' arguments or demands.
  • Help disputants see commonalities among their goals, values and principles.
  • Use commonalities to generate multiple alternatives.
  • Maintain a non-judgmental manner. 

Resolving Conflict through Negotiation 

1. Distributive Bargaining 

It is a negotiation that seeks to divide up a fixed amount of resources. Probably, the most widely cited example of distributive bargaining is labor management negotiations over wages. Typically, labor representatives come to the bargaining table determined to get as much money as possible out of management. Since every rupee more that labor negotiates increases management's cost, each party bargains aggressively and treats the other as an opponent who must be defeated. 

2. Integrative Bargaining 

In contrast to distributive bargaining, integrative problem solving operates under the assumption that there exist one or more settlements that can create a win-win solution between distributive integrative bargaining. 

Distributive versus Integrative Bargaining

Bargaining Characteristics

Distributive Bargaining

Integrative Bargaining

Available Resources

Fixed amount of resources to be divided

Variable amount of resources to be divided

Primary Motivations

I win, you lose

I win, you win

Primary interests

 Opposed to each other

Convergent or congruent with each other

Focus of relationships

Short-term

Long-term
It is a negotiation that seeks one or more settlements that can create a win-win situation. 

In terms of intra-organizational behavior, all things being equal, integrative bargaining is preferable to distributive bargaining because the integrative bargaining builds long term relationship and facilitates working together in the future. It binds negotiators and allows each to leave the bargaining, on the other hand, distributive bargaining leaves one party a loser. It tends to build animosities and deepen rifts and divisions when people have to work together on an ongoing basis.

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Level of Conflicts in an Organization

conflict is a disagreement about the allocation of scarce resources or clashes regarding goals, values and so on, can occur on the interpersonal and organizational level. In other words, conflict has been defined as a process in which an individual purposely makes an effort to offset the efforts of another individual by some form of blockage that causes frustration to the latter in accomplishing his goals or furthering of his interests. 

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Generally, there are three level of conflicts in an organization life which are as follows:

level of conflicts

1. Individual Level Conflict 

A person joins any organization basically to satisfy his varying needs. He faces a conflict within himself when he perceives that organization is not satisfying his needs in accordance with his perceived standards. The analysis of conflict may start at the individual level itself. Since an organization is composed of various individuals, many conflicts develop at individual level. The individual level conflicts may be analyzed in two ways: intra-individual and inter-individual or interpersonal. 

a) Intra-individual Conflicts 

Intra-individual conflicts arise within a person and are of psychological nature. Many times, the individual remain conflict-hidden, but he fails to perceive it. However, they may be latent or overt. Such conflicts are generally related to the goals a person wants to achieve or roles in the manner he wants to achieve. Hence, intra-individual conflicts are of two types: 

i) Goal Conflict 

Goal conflict occurs when two or more motives block each other. In other words, an individual in the organization faces a goal conflict when he discovers many alternatives of goals which he wants to achieve, being equally attractive, but actually exclusive. He is caught in his own web and faces a serious intra-personal conflict. 

ii) Role Conflict 

An individual performs a number of roles. Role conflict arises when a person has alternative ways of achieving organizational goals and he is asked a behavior which may ensure the achievement of goals. A superior is respected to get things done but he is internally in tension whether to apply autocratic, participative or free night technique of direction. 

b) Inter-individual Conflicts 

Inter-personal conflicts arise between two individual having competition for achieving scarce things, such as status, power, position, promotion or resources or they may pick up conflict due to their divergent opinions, attitudes or values. Disagreement among individuals in an organization may arise for variety of reasons such as: personal differences, value of interest differences, perceptual differences, power and position differences, resource constraints. 

2. Group Level Conflicts 

A group constitutes two or more persons who interact in such a way that each person influences and is influenced by others. Group level conflicts refer to the disagreement, competition or clash between two groups of the organization, say between supervisory staff and the workers or between management and trade unions. Group level conflicts further can be classified as inter-group conflicts and intra-group conflicts. 

a) Inter-group Conflicts 

Inter-group conflict arises out of the interaction of various groups. There are many factors in the organization which determine the inter-group relationship. Inter-group conflicts over authority, jurisdiction and resources are exceedingly common. Every group is in at least partial conflict with every other group it interacts with. Most of the departments in the organization compete for the allocation of scarce resources and power. They differ in goals, act, work activities, power and prestige. The seeds of inter-group conflict are shown in these differences. Research findings generally confirm the following sources of inter-group conflicts: 
  • Incompatible goals
  • Task interdependence 
  • Resource allocation
  • Competitive incentive and reward system 
  • Line and staff conflicts 
  • Differences in value and perception 
  • Heterogeneity of members 
  • Communication distortion 
  • Participative decision making 
  • Low formalization 

b) Intra-group Conflict 

Intra-group is the group consisting of a number of persons whose interactions at a given time generate a system of values, norms and sanctions appropriate to the nature of the task on which they are working, which has created a set of well defined role and status relations which are interdependent. Intra-group conflict may arise in three situations: 
  • When group faces a novel problem of task. 
  • Where new values are imported from the social environment into the group.
  • Where a person's extra-group role comes into conflict with his intra-group role. 

3. Organizations Level Conflict 

Conflict at individual level and at group level takes place within the organizational setting. Conflict at organization level may be intra-organizational and inter-organizational. Individuals in the organizations have many conflicting organizational cross pressures operating on them. The following examples indicate the source of potential conflict: 

The boss wants more production; subordinates want more considerations. Customers want faster deliveries; peers request schedule delay. Consultants suggest change; subordinates resist change. The rule book provides a formula; the staffs say it will not work.

Types of organization level conflicts are as follows: 

a) Intra-organizations Conflict 

The reasons of conflicts in an organization are many but mainly three kinds of internal strains can be identified: 
i. The Horizontal Strain: The competition between different functional sub-systems. 

ii. Vertical Strain: The competition between various level in three hierarchy for power, privilege or reward and 

iii. Line and Staff Conflict: Line and staff conflict further can be classified as horizontal conflict and vertical conflict. 

b) Inter-organizations Conflict 

The basis of inter-organizations conflicts are essentially the same as three basis of inter-group conflict. Most commonly cited reasons for inter-organizations conflicts like incompatible objectives, over status, prestige and money are present in inter-organizations conflicts also. In other words, inter-organizations conflict is more extensive, more diffusing than the conflicts amongst persons or groups.
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Sources of Conflict and Stages of Conflict

Sources of Conflict

There are several sources of conflict. However, these sources depend on the mode (mindset) of the parties involved in a situation. Their mutual understanding, trust and openness determine the mode. The mode influences their perception which may cause conflict. For example, a difference in the goals of two individuals in a group of a potential source of conflict. One member's goal may be to turn out the maximum number of product; the goal of other member may be to ensure quality of the product. Different researches have shown or identified different sources of conflicts. Poor communication, incompatible goals, value and culture clashes, task inter-dependencies, incentive and reward system and resource allocation and scarce are the basic sources of having conflict in an organization.
sources of conflict
1. Poor Communication 

The greatest source of organizational conflict is poor communication. Communication breakdown may happen where many different people work together, each focusing on work problems in their own way without consulting each other. In other words, the communication source relates to three contradictory forces which steam from semantic problems, insufficient exchange of information, misunderstandings and noise. Although all conflicts are not the outcome of poor communication, there exists evidence to support the assumption that communication gaps hamper collaboration and foster misunderstanding. Semantic problems are caused on account of divergent training, selective perception and insufficient information about others. The potential for conflict intensifies in the face of either has little or too much communication. 

2. Incompatible Goals 

Differences in group goals can easily lead to group conflict. Goal compatibility implies goals attainment by one or more other groups. The achievement of one department's goal often interferes with another department's goal. Quite often this is due to high horizontal differentiation and task specialization. For example, the production department might perceive its goals as being potentially incompatible with those of marketing. Production department may pose such questions: 
  • Why do not we have accurate sales forecasts?
  • Is it possible to keep everything in inventory?
  • Why don't we have enough capacity?
  • Why don't we ever have the right merchandise in inventory?

3. Values and Culture Clashes 

Differences in values can cause conflicts between generations, between men and women and between people with different value priorities. Consider the conflicts that might arise between workers, who realize the value of money in place of unused holiday, and executives, who never take time off, but scowl on those who do not take holidays and prefer to do extra work for extra pay. In other words, the differences in goals among members at the various departments in the organization are frequently accompanied by difference in attitudes, value and perceptions that can also lead to conflict. 

Similarly, culture clashes can occur between workers, not only from different countries but also from different parts of the same country. Today's diverse work force is a kaleidoscope of cultures, each with its own unique qualities. The individual bearers of different cultural traditions could easily come into conflict with one another. The issues may be as simple as one person's desire to dress in ethnic fashion and a supervisor's insistence on strict adherence to the company dress code to as complex as work ethics. 

4. Task Interdependence 

Task interdependence refers to the dependence of one unit on another for resources of information. In other words, task interdependence relations exist when two groups coordinate or collaborate with one another. Coordination and collaboration exist when the sub-tasks allocated to different groups need to be sequenced and agreed upon by the two groups. Collaboration occurs when the two groups share joint responsibility for certain tasks. A dependent task relationship exists between two groups of one group is dependent upon the former for resources. The relationship between mutual task dependence and conflict is not direct. But, in general, it can be said that as interdependence increases, the potential for conflict increases.

5. Incentive and Reward System 

When tasks are independent, competition can hurt cooperation among members and performance may actually decline. For example, when all students in a group received the same grade regardless of individual contribution, coordination, communication and quality seem better. But when students are graded according to their personal contributions to the group, they try to succeed at the expense of others and seem more frequently in conflict. Similarly, inter-group conflict is more likely to occur when the reward plan is tied to individual group performance rather than to overall organizational performance. If departments are regarded only for departmental performance, managers are motivated to excel at the expense of others. 

6. Resource Allocation and Scarce 

Resources symbolize power and influence and are means of accomplishing goals. Resources are always scarce. In our organization, conflict arises at the time of allocating the resources like money, material, manpower, furniture, space etc. Conflict may be minimized if the organization is prospering and new resources are growing by allowing a greater share to each and every department. 

According to some other researches completed by experts, source of conflict arise due to the following four sources. 

  • Personal differences (Perceptions and expectations) 
  • Informational deficiencies (Misinformation and misrepresentation)
  • Role incompatibility (Goals and responsibilities)
  • Environmental stress (Resource scarcity and uncertainty)

Stages / Processes of Conflict

The conflict process generally consists of five stages.
stages of conflict
1. Potential Opposition 

The first step in the conflict process is the appearance of conditions that create opportunities for conflict to arise. They need not lead directly to conflict, but one of these condition is necessary to bring conflict to the surface. Antecedent conditions for conflict exist at the interpersonal level. One party plans to block the attempts of another party from achieving a goal. In organizations, some potential danger and harm threaten the harmonious functioning and perhaps their very existence. It can be categorized as communication, structure and personal variables.

2. Cognition and Personalization 

Cognition and personalization is the second step of the conflict process. Under this step, the person, whose attempts are sought to be thwarted, perceives the harm that might be done to him and feels or realizes the potential damage. Realization makes him emotionally involve himself. Emotional involvement makes him feel frustrated, anxious and tense, all of which are symptoms of conflict. The same pattern prevails between two groups or departments in the organizations. 

3. Intentions 

In this step, there are five conflict handling intentions. These are competing, collaborating, avoiding, accommodating and compromising. The first term competing means individual desires of others to satisfy his/her desire or wishes without caring others desires. Another term collaborating is the intention to fulfill desires jointly by conflicting with other parties. The third avoiding is the intention to suppress conflict. Similarly, next accommodating is the intention of conflicting party to see the problem in favor of other party. Finally, compromising is the situation in which different conflicting parties are ready to scarify something. 

4. Behavior 

In the fourth stage of conflict, a party engages in action that was planned in stage I. In other words, he blocks the other party's attempts in attainment of goals. The conflict is out in the open. Overt conflict covers a full range of behaviors from the subtle indirect and highly controlled forms of interference to direct, aggressive, violent and uncontrolled struggle. At the organizational level, strikes or lock-outs are the result. 

5. Outcome 

The conflict finally results in an outcome which may be functional or dysfunctional. If conflict is handles well, the result is functional conflict. If it is mismanaged, the result is dysfunctional conflict.

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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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Meaning of The Game Theory and Importance of Game Theory

The term ‘game’ represents a conflict between two or more parties. A game is a decision situation with multiple decision makers where each person’s welfare depends on his/her own as well as other individuals’ actions. That is, a game is a decision situation with strategic interactions among all decision makers.

Game theory is a theory of individual rational decisions taken under conditions of less than full information concerning the outcomes of those decisions. This theory examines the interaction of individual decisions given certain assumptions concerning decisions made under risk, the general environment, and the cooperative or non-cooperative behavior of other individuals.

In the words of Richard G. Lipsey and K. Alec Chrystal, “Game theory is an approach to analyzing, rational decision-making behavior in interactive or conflict situation.”

According to N. Gregory Mankiw, “Game theory is the study of how people behave in strategic situations." By ‘strategic’, we mean a situation in which each person, when deciding what actions to take, must consider how others might respond to that action. Game theory is a mathematical technique used to show for example, how oligopoly firms play their game of business.

Importance of Game Theory


Game theory is an analysis that illustrates how choices between two plays affect the outcome of a “game”. Game theory which sounds playful/laughing in its terminology is filled with significance. It has been used by economists to study the interaction of oligopolistic markets, union-management bargaining disputes, countries’ trade policies, international environmental agreements, reputations, conflicts such as games and war and a large number of other situations. Game theory offers insights for politics, warfare, and everyday life as well.
  1. Game theory is commonly used in economics to illustrate interdependent decision-making among oligopoly firms. It illustrates that one firm makes a decision based on the decision expected from the other firm. One key conclusion from the game theory analysis is that firms often make decisions that are “second best” or the “lesser of two evils”. The classic example of such a decision is the prisoners’ dilemma, in which two prisoners both confess to a crime to avoid harsher punishment when not confessing would avoid any punishments.
  2. Thus, game theory has proved to be useful in analyzing suspects of economic behavior such as natural resource depletion and public goods. The theory of cooperative games which allows collaboration between individuals has been used to analyze cartel formation and industrial and labor market collusion.
  3. Game theory is a body of knowledge which is concerned with the study of decision-making in situations where two or more rational opponents are involved under conditions of competition and conflicting interests. It deals with human processes in which an individual decision making unit who can be an individual, a group, a formal or informal organization, or a society, is not in complete control of the other decision making units, the opponents, and is addressed to problems involving conflict, co-operation or both at various levels.
  4. The main objective in the theory of games is to determine the rules of rational behavior in the game situations, in which the outcomes are dependent on the actions of the interdependent players. A game refers to a situation in which two or more players are competing it.
  5. Game theory is quite useful for understanding the behavior of oligopolies. When game theory is applied to oligopoly, the players are firms. Their game is played in the markets, their strategies are their price/output decisions, and the payoffs are their profits. Because the number of firms in an oligopolistic market is small, each firm must act strategically. Each firm knows that its profit depends not only on how much it produces but also on how much the other firms produce. In making its production decision, each firm in an oligopoly should consider how its decision might affect the production decisions of all the other firms.
In summary, a game theory framework can often help us understand the strategic choices available but it does not always help to predict which of many possible outcomes may occur.

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Conflict: Meaning and Concept of Conflict

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 difficult and controversial topic. Conflict has been defined from several stand points in literature. Conflicts are experienced every day by both individual and groups. Conflict is the perception and feelings by one party, individual, or group that the 'other' party is hindering the first party from achieving a goal. Conflict can be between two or more individuals (interpersonal), between teams or groups (inter-groups), or between organizations (inter-organizational). In all these conflicts the some process is involved: one party wants to achieve a goal and other party is seen as hindering the first from achieving that goal. Stress has also been laid on conflicts between the leaders and the led, and between formal and informal leaders involving situations in which formal leadership is not accepted and tension and aggression are generated. 

In most cultures, it has negative connotations because it runs counter to the notion that we should get along with people by being kind and friendly. Although many people intellectually understand the value of conflict, they feel uncomfortable when confronted by it. Their discomfort may result from a lack of understanding of the conflict process as well as form a lack of training on how to handle interpersonal confrontations effectively (Whetten & Cameron: 2011). A conflict over issues is not likely within top-management teams but also valuable. Such conflict provides executives with a more inclusive range of information, a deeper understanding of the issues and a richer set of possible solutions. 

There are following definitions given by various experts: 
"Conflict is a process in which an effort is purposefully made by one person or unit to block another that results in frustrating the attainment of the other's goals or the furthering of his interests." – Stephen P. Robbins 

"Conflict is any situation in which two or more parties feel themselves in opposition. It is an interpersonal process that arises from disagreements over the goals or the methods to accomplish those goals." – John W. Newstorm and Keith Davis 

"Conflict has been defined as the condition of objective incompatibility between values and goals: as the behavior of deliberately interfering with another's goal achievement; and as emotionally in terms of hostility. Descriptive theorists have explained conflict behavior in terms of objective conflict of interest, personal style reactions to threats and cognitive distortions." – Ralph H. Kilman and Kenneth W. Thomas 

From the above definitions, conflict is a disagreement about the allocation of scarce resources or clashes regarding goals, values and so on, can occur on the interpersonal and organizational level. In other words, conflict has been defined as a process in which an individual purposely makes an effort to offset the efforts of another individual by some form of blockage that causes frustration to the latter in accomplishing his goals or furthering of his interests. Similarly, following points can be taken to understand the concept of conflict: 

  • Conflict is a dynamic process as it indicates a series of events: each conflict is made up of series of interlocking conflict episode.
  • Conflict arises because of incompatibility of two or more aspects of an element; it may be goals, interests, methods of working, or any other feature.
  • Conflict must be perceive and expressed by the parties to it if no one is aware of a conflict. It is generally agreed that conflict does not exist in events though there may be incompatibility in some respect.
  • Conflict occurs when an individual is not able to choose among the available course of action.

Positive Outcomes of Conflict 

More often conflict leads to certain positive outcomes. A few of them are: 
  • It provides an individual a chance to think again, undertake self introspection and have a second look at the existing things, by the procedures, policies, equipment, behaviors etc. 
  • It leads to innovation and at times, to new direction. It is therefore, even necessary for organization survival and growth. 
  • It helps to seek classification and generate search behavior. 
  • At times, it is also used as a means to certain ends and to create confusion or set subordinates against each other in order to maintain the interested party's own position. It may not be a positive outcome in the strict sense of the term from the organizational point of view, but it is certainly a management strategy toward the problems temporarily. It may be viewed as an unavoidable cost of the pursuit of one's aspirations. 
  • When conflict is developed, attention is immediately drawn to the malfunctioning parts of a system. It is an indication that the situation calls for improvement. Conflict is, therefore, an essential portion of a cyber-native system. 
  • Long standing problems which continue to agitate people's minds surface. They are able to release their tensions and unburden themselves. They display creativity in identifying solutions and problems are dealt with. 
  • It energies people, leads to mild stimulation and one is at one's best in times of crisis. It helps them test their capacities. 
  • It serves as a cementing force in a group and incredible unity is witnessed even in a heterogeneous group in times of tension. 
  • For some, it is exhilarating, provides endless challenge and meaning to their lines. 

Negative Side of Conflict 

Many times conflicts may be detrimental and disastrous. A few of such circumstances in which it can be termed as harmful and undesirable are as discussed below: 
  • When conflict does not lead to solution of a problem, it is unproductive and investment of time and effort goes waste. 
  • It is undesirable if it creates a climate of distrust and suspicious among people, if some people feel defeated and if it develops antagonism instead of a spirit of cooperation. 
  • It is seriously harmful if it distracts attention from basic organizational objectives and makes people work for their defeat. 
  • As a consequence of conflict, there may be fight of personnel from the organization. 
  • When management loses objectivity and treats disagreement as equivalent to disloyalty and rebellion, an opportunity for creativity should be deemed to have been lost. It may even pour oil over troubled water, exploit difference to strengthen itself and weaken other, and accept resolution capable of different interpretations. 
  • In an attempt to find a solution, management may gloss over serious differences and suppress certain feelings which may accept at inappropriate moments and hit safe targets. 
  • In the event of a conflict, there may be intensification of internalization of sub unit goals which may result in the neglects of overall organizational goals.
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