Sources of Conflict in Personal Investments Limited - Case Study Example

Human Resource Competences Students’ name: Professor’s name: Institution’s name: Course code: Date: Table of Contents Table of Contents 1 Bibliography………………………………………………………………………………………9 Executive Summary Personal Investment Company is encountering several impediments in terms of management. The senior company partners advocates for the conservative approach while Tabitha thinks the other way around. As a result, there exist various types of conflict ranging from relationships, contradictory interest, resources disagreement as well as poor communication. As a human resource manager, I have helped in offering some strategies that can be applied to the organization in order to come up with resolutions. Introduction Personal Investments Company is situated in Sydney. Its main objective is to invest funds for various institutions. Approximately seventy five individuals were hired by the company in 1994. Among the seventy five people employed, twenty five of them were tasked with the real investment activities of the company. As a result, the company was able to manage perhaps 1.2 billion dollars in terms of assets. Consequently, 2.5 million dollars was able to be derived as company income. In 1960, the company became incorporated. In its four decades in business process, it has diminished in terms of financial volatility, technical and social change. Furthermore, it has resisted business openings presented to them hence less profits. In spite of this, its ventures are greatly protected. The company Chief Executive Officer, Dan Richardson uses the transformational leadership approach to direct the company’s workforce. As a result, the employees are able to participate while decisions are made then sustaining a lasting association from the top level down to subordinate staff. His leadership style is based on the loyalty concept, “Loyalty to the organization, loyalty to its members and loyalty to friends” (Carlopio et al. 2008, p369.). Through this technique, he has been able to carry out safe and steady investing; this has made it possible to retain investment portfolios at a little risk with moderate revenue. Besides, the enlargement of the company is slow in comparison to other investment opportunities. This has triggered the thinking of Dan from taking a conventional scheme to an aggressive scheme of investment. This was also influenced by the resigning of younger analysts from the business in chase of positions in firms that are more aggressive (Carlopio et al. 2008). As a consequence, Tabitha is employed to spearhead the operations in the company. Her managing style is dissimilar from the organizational targets and objectives. She invests more in technology and her aim is to capitalize on earnings. Her aggressive style of leadership has caused disagreements among members of the organization even Susan the Cofounder. Susan thinks that Tabitha’s management approach will result to loss of the company’s old customers who are used to the conservative approach. Moreover, the young analysts are extremely pleased with Tabitha’s management style leading to some conflict in the organization; Dan decides to invite Tabitha for a dialogue regarding the situation in the company. Thus, the paper will seek to analyze the conflict in the personal investments Pty Ltd and present a solution to it. Sources of Conflict in Personal Investments Limited When persons work jointly, conflict is likely to crop up. It is an incidence that is normal to any business surroundings. In personal company limited, there exist various causes of conflict. These are such as follows: Differing values: Personal Investment Company encompasses of people who have their own view about business administration. Some employees exhibit strong beliefs about the firm’s performance and are not willing to cooperate with those values. For instance, Suzan the organization co-founder and the senior staffs of the organization wants Tabitha to conform to the organization management and practices of the organization or resign. On the other hand, Tabitha’s new management approach is enjoyed by junior analysts but disregarded by some company partners. They claim that most of the company investors give greater emphasis to security and nothing more (Carlopio et al. 2008). Opposing interests: Tabitha and the senior partners of the organization have contrasting interests. The interest of the other organization members is to maintain and investment portfolio distinguished with reasonable and little risk. However, Tabitha promotes for elevated investments portfolio characterized with high risk but with high profits. Personality conflict: There is variance involving the senior partners and Tabitha regarding the management approach. Tabitha is frustrated as she is not provided with support from the company partners who are senior. This challenges her usual procedures in the company. Together with her junior employees they begin to criticize their detractors in a staff gathering resulting to more divergences. Scarce resources: Allocation of resources in the company is another cause of clash. Tabitha channels a lot of revenues to firm’s research and improvement. As a result, there is interruption of other managers operation escalating conflict further. Poor communication: Tabitha carries operation without consulting other members of the organization. If she had explained the senior partners about her approach may be these problems could not have emerged. Communication is important; people confer their views upon which an agreement is reached before execution is done. Classification and Types of Conflict in Personal investments The conflicts resulting from the organization falls under the following categories: relationship, interest, value and structural conflicts. Conflict among workers is evident. For instance, the employees in the organization hold unlike concerns and values. Tabitha wants to tap the accessible market openings and exploit on the company’s profits. In addition, the senior employees want to uphold a conventional approach type of supervision. As a result, there are disputes every time meetings are held. The company cofounder Suzan approaches Tabitha regarding the management structure of the organization. However, Tabitha does not agree with her structure of management. In that case, she is to decide between two options” either to match to the administration practice and philosophy of the business or resign.” Approaches to conflict management The method used to solve the dispute in the organization is the forcing and problem solving approach. In the case study, Dan the company C.E.O confronts Tabitha in order to discuss about what is going on in the company. They debate on whether to take the conservative approach or the modern one. Dan is in support of Tabitha’s style but unable to make decision because of what other partners think about Tabitha’s management approach. Therefore, Dan is using the problem solving approach in order to come up with the best option that will impress company stakeholders. The next approach being used is the forcing approach. In this approach, Susan the co-founder of the company wants Tabitha to conform to her point of view. It is also referred as the win-lose approach which is noteworthy especially in rising conflict. Through the power and influence that Susan has in the company, he declares that Tabitha should conform to the company practices of management and philosophy or else resign. This created a bone of argument between Dan and Susan. On one side, Susan wants Tabitha to resign if she does not conform to the organization management strategy and Dan wants to help Tabitha succeed. Strategies to manage the company’s conflict Building up of strategies is mandatory in Personal Investments limited in order to reduce or prevent conflicts at their early stage. The strategies are vital in finding solutions to the disagreements experienced by Tabitha and others (Knippen and Green, 1999). The company should veer towards an action that is productive. Consequently, the initial approach is to illustrate the state of the disagreement to the other party. In this case, Tabitha ought to be asked how she perceives the conflict situation. The next step in managing the company divergences is deciding jointly on how to resolve the conflict. Thirdly, Tabitha and the senior partners should make a commitment to make certain conflict resolution where each action of the party involved in the conflict are summarized. Finally, each party should promise in future to be committed to resolving differences at any time they arise. Given the varied interests and values held by the Personal Investment company partners, communication policy is the finest option to resolve the presented conflict. This strategy will help in clearing the workers confrontation consequently boosting their trust with regards to changes taking place in the organization (Graham & Lebron, 1994). Communication is vital as it aids in solving both outer and internal difficulties when a group is trying to attain a precise company goal. According to conflict administration theory, a disagreement managing system that is healthy should be put in place in every firm. These schemes need to be incorporated within the arrangement of the company. The amalgamation should be at the organization hierarchy at the superior level. The process of managing a company’s differences is a human-subsystem. In that case, it’s only accomplished through a typical process of expansion. This progression starts with inquisition plus evaluation, looking at the design and execution (Ford 2007). This is an apparent sign that personal investment company is supposed to create a system that will guide in finding long term solutions. Strategy Implementation in Personal Investment Limited Communicating internally is very significant as it links the management, business philosophy and policies to the workers. Therefore, Dan being the Chief Executive Officer of the company should put into action inner communication plans that are effectual. He can do this by: Coming up with a system where employees can give their ideas, making internal communication friendlier for all employees, use of virtual conferences and so on. Internal communication will guarantee that the company’s human resources are capable of raising their complaints regarding the management. Conclusion In all organizations including government entities, religious institutions, families, political organizations and work place conflict do exist. Acknowledgement on how to deal with conflict, how to resolve or manage it should be recognized as a central part of what people should learn and how they should learn it. This is important as it ensures long lasting triumph of individuals for the benefit of the whole organization. Conflict potential takes place whenever there is a contact involving two or more individuals. The extent of the conflict largely depends on various factors, they include: the actors’ distinguished targets and intentions in the conflict state; whether the involved parties in a conflict are knowledgeable and able to make use of disagreement resolution tools and theories, finally, the culture and organization’s leaders conflict support as part and parcel of innovation and creativity. Conflict appear from views that are different making it awfully difficult for leaders to disperse, direct and unravel conflict as in the case of personal investment Limited. It is only through the understanding of resolving differences and managing strategies that organizations can efficiently succeed. Recommendations Each member of staff in the organization should be aware of the presented kinds of conflict. They should gain skills in managing and resolving disputes which may occur. Conflicts are critical for the creativity of individuals and organization; leaders should build up a culture that is proper to make easy the continuation of functional conflicts. Although conflict is viewed pessimistically, there is need for change in training programs that deals with organizational management. It should also be incorporated in college courses in order to equip future leaders with facts regarding management of differences plus necessary strategies to find solutions. Studies need to be performed to determine the effects imposed by leaders’ conflict management styles on the learning opportunities in terms of conflict types in their organization. Bibliography Carlopio, J, Andrewartha, G, Whetten, DA, & Cameron, K 2008, Developing Management Skills: A comprehensive guide for leaders (4th Ed). Pearson/Prentice Hall: Frenchs Forest,NSW, Australia. Ford, J 2007. “Organisational conflict management,” Team Performance Management, Vol. 3, pp. 89-96. Graham, M.A., & LeBron, MJ 1994, The Horizontal Revolution: Reengineering Your Organization Through Teams, Jossey-Bass, San Francisco, CA. Knippen, JT., & Green, TB 1999,” Handling conflicts”, Workplace Learning, Vol. 11, PP.27-32. Read More