CONFLICT MANAGEMENT

KOHINOOR TEXTILE MILLS

PROJECT: What are different Conflict Resolution Techniques used at Kohinoor mills? SUMITTED TO: Mr. Mussarrat Khan

GROUP NO:

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DATE: December 19TH, 2012 CLASS: MBA-5 (A)

Contents
Brief History .................................................................................................................................... 4 Business Activities ........................................................................................................................... 5 Mission / Vision Statement ............................................................................................................. 5 How is conflict perceived at Kohinoor? .......................................................................................... 6 Strategic lens ................................................................................................................................... 7 Kohinoors Strategic Design: ....................................................................................................... 8 Linking and alignment: ................................................................................................................ 8 Conflict resolution: ...................................................................................................................... 8 Political lens .................................................................................................................................... 9 Formal power .............................................................................................................................. 9 Informal power............................................................................................................................ 9 Power, Influence and Interest handling measures at Kohinoor ................................................. 9 Cultural lens .................................................................................................................................. 10 Analyzing through the cultural lens .......................................................................................... 10 Culture a tool to unite or alienate............................................................................................. 10 Conclusion ..................................................................................................................................... 11 Recommendations ........................................................................................................................ 12 Appendix ....................................................................................................................................... 13 Interview ................................................................................................................................... 13

Brief History
Kohinoor Textile Mills was established in 1953, initially with 25,000 spindles and 600 looms with further expansion in 1954. The company embarked upon a program of modernization and in the last decade, replacement and refurbishment has seen the installation of high technology processing, printing and finishing facilities. Commercial processing for customers, which was not originally envisioned, has also begun. Presently the unit comprises Appx.150,000 spindles along with complete processing capabilities for scouring and bleaching, mercerizing, dying printing and stitching. Weaving no longer exists at the plant which has since been relocated to Kohinoor Raiwand Mills (A Division of Kohinoor Textile Mills Limited). Plant is located at Peshawar Road Rawalpindi. The Spinning plant has equipment from Crosrol U.K. and Toyota Japan. The company's products are sold in both local and export markets. Regular exports sales to South East Asia UK / Europe U.S.A, Hong Kong, Japan and Australia is a testimony to an ever growing list of satisfied customers who perceive KTML as a manufacturer of quality textile. In 1992 the Company participated in the acquisition of Maple Leaf Cement Factory Limited from Privatization Commission, Government of Pakistan. Kohinoor Textile Mills Limited was initially certified to ISO 9001 by Lloyds Register Quality Assurance, UK on December 16, 1998. Now Kohinoor Textile Mills Limited is certified under the revised ISO standards ISO 2000 from June 2003. Kohinoor Textile Mills is the largest unit in the district Rawalpindi. It is located near NaseerAbad and is equipped with 50,000 spindles and 1,021 power looms.
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Business Activities

The Company is principally engaged in the business of textile manufacturing covering weaving, bleaching, dyeing, buying and selling and otherwise dealing in yarn, cloth and other goods and fabrics made from raw cotton and synthetic fiber and to generate, distribute, supply and sell electricity.

Mission / Vision Statement

The Kohinoor Mills Limiteds stated mission is to become and then remain as the most progressive and profitable company in Pakistan in terms of industry standards and stakeholders interest. The Company shall achieve its mission through a continuous process of having sourced, developed, implemented and managed the best leading edge technology, industry best practices, human resource and innovative products and services and sold these to its customers, suppliers and stakeholders.

How is conflict perceived at Kohinoor?

Conflict is a state of unresolved differences among individuals or groups or between the two: and may be categorized as intrapersonal, interpersonal and intergroup. Generally the following reasons give rise to conflicts within an organization; Competition for scarce resources Difference in goals and values Organizational ambiguities

Conflicts within an organization serve a few functions and reveal much that may be useful in managing for the future, a few of these are: Conflicts establish identity Conflicts increase group cohesion Test the strength of groups and individuals Cause competition to improve performance

Strategic lens
Looking at the Kohinoor through the strategic lens:

CEO MR AAMIR FAYYAZ

CFO MR KAMRAN SHAHID

GM (WEAVING) MR ADNAN SHAHID

GM (DYING) MR MUHAMMAD AMIR

GM (POWER) MR SHEHARYAR BOKHARI

Kohinoors Strategic Design:

The division based strategic design of the company suggests a vigilant system to meet the diverse needs of the organization. The complicated manufacturing process of the company along with the need to meet the needs of different customer worldwide the management had to design a structure that would not let any loop-holes to disrupt the operation of the organization.

Linking and alignment:

To keep the employees their due a reward system has to be in place. Any shortcomings in this matter may give rise to conflicts. In an organization people try to take credit for something that they have not done, this causes the deserving employees to think unfavorably of the management.

Conflict resolution:
Roles of leadership are generally the key in resolution of a conflict in the organization. Kohinoor mills allow their employees to take the role of the leader, especially in training any new entrants in the organization. On the other hand employees who specialize in a particular field are allowed to take key decisions with the consent of the high-ups in the organization.

Political lens
Formal power
The strategic design of the company also suggests the formal power structure of the company. For any organization the concepts of power, networks, influence and interests play an important part. Similarly, for Kohinoor mills these concepts are major determinant of organizational synergy. To keep the organization out of any kind of conflicts every employee of the organization has a part to play within his authority. Peoples of different backgrounds, interests and biases flock together at Kohinoor. This makes it all the more difficult to avoid conflicts and channel the goals of the organization and individual members.

Informal power
Generally speaking employees who have stayed with organization sometimes cross their boundaries describing their roles. They influence decisions which may lead to the consternation of the rest of the employees. The high-ups of the organization have to favor these employees for the reason that they are an asset to the organization and are well versed with the ways of the organization. These situations have to handle with much care since conflicts may deteriorate smooth running of the organization.

Power, Influence and Interest handling measures at Kohinoor

The top management is vested with the power of firing and to reward. In a worst case scenario the option of firing may be used as a deterrent and to keep the trouble makes at bay.

Cultural lens
Analyzing through the cultural lens

Kohinoor has a very strong organizational culture. Workers as well as higher officials are brought to believe in the Kohinoor family. The cultural variables are designed to promote the organizational culture. This is not enough the management asks for input from employees to actively participate in building the culture.

Culture a tool to unite or alienate

Since employees belong to different cultural background. They have their biases, but to keep the individual beliefs from giving rise to any conflicts promotion of strong organizational culture very much keeps conflicts within employees from arising. Kohinoor strongly believes in a strong organizational culture.

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Conclusion

Conflicts are viewed positively at Kohinoor mills .The management efforts to dug maximum out of a conflict. The positivity shown by the management towards handling conflict is a new development for companies in Pakistan which mostly have traditional ways of firing or pay-cuts. Such a strategy would require much vigilance and iron-clad relationship with the organizational employees at all level of the organization. Especially top managers of the company will have to keep an account of almost all of the company employees, give them an outlet for their views and share with them the views of the organizational leaders.

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Recommendations

A strict disciplinary guideline would be lot helpful in order to avoid non-constructive conflicts.

A strong association with the organizational culture would aid in development of the company employees and direct their attention towards building for the organization.

Cultural fairs should be conducted to make employees feel a part of the organization. Occasional incentives for best behavior should be presented to employees to promote a peaceful culture.

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Appendix
Interview
What are your views of intra-organizational conflicts? How often do conflicts arise? What things general give rise to conflicts in your organization? What measures do you adopt to appease those in conflict? Conflicts are thought to be useful for organization. How these conflicts help you to bring improvement in your organization? What political factors lead to conflicts in organization? Diverse culture leads to certain conflicts. Do you agree to the statement?

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