The Role of Managers in Conflict Resolution at BAE Systems - Case Study Example

Running Head: Line Managers Line Managers Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Name Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Course Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Lecture Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 12th January 2012 Company Profile BAE systems Plc is a defence contractor company headquartered in London, It has operations all over the world. The company supplies armaments, armoured vehicles, warships, aircrafts and electronic equipments. A BAE system markets its products in the United Kingdom, the United States, India, Australia and Saudi Arabia among a host of other countries. The company divides its business into five core units: Cyber& Intelligence, Platform& Services (UK), Electronic Systems, Cyber & Intelligence and Platform & Services (International) (Datamonitor Plc, 2012). According to Datamonitor (2012), BAE systems PLC came into being as a result of the merger of several British firms involved in the manufacture of defence hardware. Its heritage is therefore British and its organizational culture is founded on British values. However, BAE systems works in several countries worldwide and its organizational culture has to adapt to diverse cultures. The company employs 83,600 employees worldwide from different cultures (Kavitha et al, 2011). In Saudi Arabia, BAE systems employ over 5,800 employees who work in conjunction with the country’s defence forces. For employees of BAE Systems working in foreign Nations cultural diversity can be a huge challenge to their interaction with local people or business associates. Saudi Arabia is an example of a country where BAE systems operate, where the cultures is very different from the British culture. Line managers therefore have a challenging cultural gap to bridge between its Saudi Arabian employees and its British oriented organizational Culture. Line managers perform certain HR functions that enable an organization like BAE systems realize its organizational goals. Among this functions include Conflict resolution and Performance management. The Role of Managers in Conflict Resolution at BAE Systems According to Lipsky and Avgar (2004), conflict resolution in organization is a complex interface of organizational structures, power relations and the competing interest of workplace justice and organizational competitiveness. Yu-Ping et al (2011), argues that managers are faced by the challenge of being partners with the organization in achieving its strategic goals and championing the voices of their employees. Lipsky and Avgar (2004) note that the aim of solving conflicts in the organization is to bring closure to contentious issues and solve ethical problems while ensuring there is workplace justice. From the interview, it can be concluded line managers at BAE systems play an important role in conflict resolution. As a strategic partner of the organization, Line managers set up face to face meetings with organizational staff where a particular worker is not fulfilling his duty of ensuring the company remains effective. While working with RSAF employee’s workplace justice is ensured by including an RSAF representative in the conflict resolution process. CIPD (2007) sets out several principles of procedural justice in resolving organizational conflict. Some of these rules that are observed at BAE systems are; due notice and the right to be heard. According to Srimannarayana (2010) the observation of due process in the resolution of organizational conflict leads to a perception among employees that there rights are being respected. Anderson, Rayner and Schyns (2009), propose coaching and mentoring as activities that line managers in organization can use to manage conflicts within their organization. In BAE systems line managers are engaged in mentoring of employees for work related activities. The use of mentoring and coaching can help organizations like BAE systems identify grievances among employs and stave off conflict early enough. One advantage of engaging line managers in conflict resolution is that problems are addressed as close as possible to their source (CIPD, 2007). In the interview the manager shows a keen interest in solving problems within the organization. His approach of managing conflict may lead to higher morale among employees. Similarly, Kaminski (1999) shows that organizations that settle employee grievances fairly and efficiently benefit from higher morale among their workers. Lipsky and Avgar (2004) notes that the where organizations are able to solve conflicts fairly and efficiently they are able to avoid the destructive effects of labour unions. Involving line managers in conflict resolution is part of the strategy of ‘union substitution’. Failure to handle conflicts effectively may expose organizations to damaging legal processes due to an increase in employment legislation. Unlike most organizations where line managers have limited training and orientation, the manager interviewed feels his skills are not being utilized at BAE systems. According to Mills (2000) conflicts involving middle managers may arise due to ambiguity about the authoritative reach of a middle manager. In the interview the manager complains about the amount of autonomy he is given in his role. The manager shows awareness of the ideal ways to avoid conflicts at BAE systems by facilitating training in the organization. According to Srimannarayana (2010), line managers have the responsibility of identifying appropriate support and training programs that will enable the avoidance of future disputes. The manager identifies lack of support to put employees in programs if they require further training as an example of how the organization does not make full use of his abilities and skills. According to Mills (2000), it is important for middle managers to develop good relationships with other business units especially the HR department. The line manager interviewed show he has a good relationship with the HR department of BAE systems. Therefore, the manager is able to make conflict resolution decisions that are in line with the organizations policy. A good relationship with the HR department enables line managers resolve disputes before they become crisis situations. The line manager has also been able to establish a regular feedback loop with staff. Hutchinson and Purcell (2007) note that regular feedback from staff predicts higher employee satisfaction rates. The manager interviewed in this case shows an appreciation for the ideas of other people by widely applying brainstorming in resolution of various conflicts. According to Byron (2012), brainstorming in organizations helps develop a feeling of belonging to the organization to the employees who participate in brainstorming. Conflicts resolved through brainstorming are also likely to have a higher rate of success than arbitrary decisions by managers. Brainstorming also encourage higher participation rates of employees in conflict management as all the ideas they put forward can neither be rejected or ridiculed. The Role of Managers in performance management at BAE Systems According to Goodhew, Cammock and Hamilton (2008), line managers are very reluctant when dealing with poor performance in the organization. Furthermore, even in situations where line managers tackle problems of performance they are ineffective and consistent. Dany, Guedri and Hatt (2008) assert that if an organization is able to make sure its line management fully practices it people management policy then it is ensured of high performance. One of the most important roles of Line managers is the management of the performance of Employees. Line managers take the ultimate responsibility for the performance of employees as they are the ones who are closest to them. In the interview the manager seems to have little control over incentives that have been shown to encourage workers to perform better. In situations like this the manager may be tempted to use unofficial incentives to motivate workers (Hutchinson and Purcell, 2003). The manager rewards the employees under his supervision through support. However, the manager still has access to official incentives for motivating employees where he gives the example of purchases vouchers as example of the financial reward system managers use at BAE systems. According to Goodhew, Cammock and Hamilton (2008), poor performance management by line managers should take four steps. Step one involves identifying an area of poor performance. Secondly, the manager is supposed to dialogue with the individual who is performing poorly. Thirdly, the manager is supposed to address the problem. Finally, the manager is supposed to let the affected worker perform. It is unclear from the interview how the manager initiates the management of performance by identifying the employee problem. According to Hutchinson and Purcell (2003), poor performance comes about in a situation where a worker persistently underperforms. In some instance performance may be equal to getting along with other employees or treating customers in a professional way. The manager in the interview uses customer feedback to identify poor performance issues among the employees he supervises. Dialogue with employees should be the second step in managing poor performance. Although, BAE systems operate in the defence industry where dialogue in solving employee problems is rare, the line manager in the interview seems to favour dialogue in managing poor performance. The manager responds that he solves performance problems by calling employees who are underperforming to face to face meeting. Even where the employee is from the RSAF the manger encourages dialogue by including a Saudi Arabian intermediary in the face to face meeting. According to Hales (2005) dialogue with employees is preferable in managing performance issues as it is assumed all staff is supposed to perform satisfactorily unless there are reasons for poor performance. It is also easier for Organization like BAE systems to develop it existing workforce rather than hire new ones to overcome performance problems. Thirdly, Middle managers are supposed to address employee problem by providing a viable solution. Goodhew, Cammock and Hamilton (2008) propose three core ways of dealing with employee performance problems. These ways are: removal of performance obstacles, providing and motivating the staff member to perform better. In the interview, the manager shows an enthusiasm for removing obstacles to employee performance by saying he likes “seeing people overcome problems”. He also shows a great appreciation for further training as a solution to performance problems encountered in his management work at BAE Systems. He also confesses that if he was given a chance to make full use of his management skills he would put employees through required training courses. The managers also show a willingness to encourage better performance by the employees he manages. The manager practices mentoring and is ready to put employees who have performance problems on mentoring problems. Barriers to effective performance management by Line Managers According to Goodhew, Cammock and Hamilton (2008) management of performance is among the most unpopular task for middle managers. Cranston et al (2006) cites the following reasons why managers may avoid dealing with poor performance. First, managing poor performance involves communicating bad news to employees about their performance. Secondly, the managers may risk legal action where performance issues touch on employment law. Thirdly, poor performance issues involve ethical decisions that could see the termination of employment for the individual involved. In contrast, the respondent in the interview shows a willing attitude to solve performance issues. This may be owed to the fact that the manager is well trained and perceives the organization does not make full use of his management skills. The biggest barriers to the effective management of performance by the manager discussed in the cases study is lack of authority and autonomy to deal with performance issues. According to (Yu-Ping et al, 2011), inadequate authority is one of the reasons why line managers are unable to effectively carry out some HR functions. The managers also cite lack of upward communication as another barrier in motivating employees. According to the interview respondent, the senior management of BAE systems does not value feedback from employee while it wants to constantly pass policy communication to them. Conclusion Line managers play important people management functions in organization. Conflict resolution by line manager’s enables organization solves conflicts ideally; as near the source of the conflict as possible. With a good relationship to HR, managers can be strategic partners to HR as well as representatives of workers in conflict resolution. Secondly, Line managers as the closest presence of organizational authority play an important role in performance management. Line managers are supposed to identify and solve performance problems among employees. However, managers are wary of involving themselves in the daunting task of dealing with employee’s poor performance. In Conflict management and Performance management the themes of authority, training and mentoring are common. Inadequate authority is barrier to both effective dispute resolution and performance management by line managers. While the provision of training and mentoring programs are cited as appropriate solution in dispute and performance management. 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Friends or rivals: comparative perceptions of human resource and line managers on perceived future firm performance. International Journal of Human Resource Management, 22(8), 1703-1722. Read More