Professional Documents
Culture Documents
Management of Conflict
Management of Conflict
COLLEGE OF BUSINESS
SCHOOL OF ACCOUNTANCY
BKAM 3033 ADVANCED MANAGEMENT ACCOUNTING
A142
SECOND SEMESTER 2014/2015
CHAPTER 6 MANAGEMENT OF CONFLICT
Group C
Lecturer Name: Mr Amin Bin Ali
GROUP C6
NAME
MATRIC NO
221342
221486
230257
Table of Contents
1.
Introduction.............................................................................................................2
2.
Objective of Study..................................................................................................3
3.
Methodology...........................................................................................................4
4.
Company Background............................................................................................6
5.
Literature review.....................................................................................................7
5.1.
5.2.
5.3.
5.4.
5.5.
6.
Finding..................................................................................................................17
7.
Limitation..............................................................................................................25
8.
Recommendation..................................................................................................26
9.
Conclusion............................................................................................................27
pg. 1
pg. 2
pg. 3
Data Collection
1
Primary data
Interview
The study will identify how management control user or implement at Chin Hin
(Jitra) Sdn. Bhd Sintok, Kedah. The manager of company will be contacted for
conducting an interview. A letter seeking for permission will be sent in the meantime.
Data will be obtained from structured interviews, posing open ended question from
us. Then, from the data will be made a qualitative and descriptive analysis to find the
most of organizations currently using management control system and the type of
management control of company used; the factors that can lead to conflict between
manager and employees related to the goals oriented and how the conflict will impact
the decision making of the firm; the approaches that suitable to resolve the conflict in
order to avoid decreasing in productivity and the performance of the firm.
This interview was carried out on 5 May 2015 in Chin Hin (Jitra) Sdn. Bhd
that located at G-6, Tingkat Bawah, No.1, Pekan Changloon, 06010 Changloon,
Kedah. We had the opportunities to conduct this interview with the manager of the
firm, Muhammad Zahiruddin bin Zahalan, Branch Manager, which is graduates of
UUM in course of Economy.
pg. 4
Secondary data
Internet surfing
We also referred the Chin Hin (Jitra) Sdn. Bhd website to know the location for
interview the company. The company website enables us to know the organization
history, vision and mission, company activities and company policy.
Journal and article
This source is used as guidelines to us in order to finish this project and also as
supportive documents to support our research. After we get an idea, we search the
related journal, articles related to the issue.
4. Company Background
Chin Hin Sdn. Bhd. was established on April 2005. Chin Hin Sdn. Bhd is the firm that
sold the a lot of type motorcycle. Chin Hin Sdn. Bhd was located at G-6, Tingkat
Bawah, No.1, Pekan Changloon, 06010 Changloon, Kedah.
pg. 5
Faculty of
pg. 6
2.
Company can more systematic and strategies because have management control.
Besides that, one of the most important issues in management is controlling. Control
is one of the tasks of managers (Fayol, 1949).Management control system (MCS) is
use as a tool for controlling in administration.
pg. 10
pg. 11
Compromising style
Intermediate in concern for self and others style involves give and take
whereby both parties give up something to make a mutually acceptable decision. It
may be appropriate when the goals of the conflicting parties are mutually exclusive or
when both parties who are equally powerful (e.g. labor and management). This style
may be of some use in dealing with strategic issues, but heavy reliance on this style
may be dysfunctional.
Organizational Contextual Variables
Span of control
Span of control is the number of subordinates reporting to a superior. Narrow
span will provide closer supervision and tighter "boss-oriented" controls and therefore
provide greater chances for building shared goals as well as coaching and feedback
(Likert & Likert, 1976; Tannenbaum, 1968; Porter & Lawler, 1964). On the contrary,
wide span of control provides managers with larger number of subordinates reporting
to them. Managers with larger spans were more likely to handle problems with
subordinates in a more formalized, impersonal manner, using warnings and
punishments instead of coaching and feedback (Kipnis & Cosentino, 1969; Kipnis &
Lane, 1962; Goodstadt & Kipnis, 1970; Ford 1981; Heller & Yukl, 1969).
Organizational structure
The study of organizational structure is influenced by Weber's (1946) work on
bureaucracy, which depicted precise and impersonal structures of tasks, rules, and
authority relations as central to rationalizing the real world (Hall, 1969; Meyer, 1972;
Pugh, Hickson, Hinings, & Turner, 1968). In this study, structure is conceptualized on
pg. 12
mechanistic-organic
continuum.
In
mechanistic/bureaucratic
organizations,
employee alienation and strict adherence to roles often mean avoiding conflict by
resorting to intransigence. Burns and Stalker (1961) called the opposite type
"organic". This strategy tends to emphasize horizontal specialization and coordination
and there are comparatively few rules enforced in the organization. The benefit of the
organic structure is its flexibility, adaptability and early recognition of external change
(Burns & Stalker, 1961; Lawrence & Lorsch, 1967; Webb & Dawson, 1991).
Satisfaction with supervision
Numerous research findings suggest that conflict management style is related
to various aspects of employee satisfaction are of interest and represent an important
extension to the job satisfaction literature (Johnson, 1993; Locke, 1976). Smith,
Kendall, and Hulin (1969), in their Cornell Job Descriptive Index (Cornell JDI)
described five areas of satisfaction: the work itself, the supervision, the co-workers,
the pay and the opportunities for promotion on the job. Since the theme of the present
study is on the superior-subordinate relationships, the job-facet satisfaction is most
relevant to satisfaction with supervision.
The conflict handling styles which superior uses in supervising their subordinates can
have a broad impact on the subordinates' attitude towards work. Many studies
recorded that supervision to the extent that the superior exercises dominating and
avoiding is found to have a negative impact on the subordinates' satisfaction (Kahn,
Wolfe, Quinn, Snoeck, & Rosenthal, 1964; Likert, 1961).
Superior's Individual Characteristics: Hierarchy Level, Age, Length of Service,
Gender and Race
Hierarchy level
Hierarchy level indicates the ranking position of superior in terms of reporting
structure. Bellis-Junes and Hand's (1989) study suggest that execution of certain task
at the appropriate hierarchy level will increase motivation and boost the moral of the
employee. This implies that personnel at different hierarchy level would execute the
managerial style differently and possibly with different result. According to Aquino
(2000), superiors in higher hierarchy status usually interact with subordinates using
both integrating and obliging styles.
pg. 13
Race
In a multi-racial society like Malaysia, employees bring into the organization different
system of values. Differences in the perception of conflict handling style and
satisfaction with supervision along the racial line will be investigated in the present
study.
pg. 14
pg. 15
(2)
(3)
These three divisions coincide with strategic obligations, CSFs, and KPIs
found in the traditional control literature (Thomas 1988; Dearden 1988; Stonich 1988)
Added to the measurement and structure logic is a reflection of the most
effective forms of incentives. As noted by Stonich (1988, pp. 468-9):
pg. 18
The manager state that the most favorable approaches that should used to
resolve the conflict of management is by using collaborating or win win situation,
because this approach was provide equal and fair satisfaction for both parties that
involve in the conflict. But in reality, this approach was rarely happen because there is
no hundred percent satisfaction result that will achieve in any solution, if this
approaches was exist, it must be rarely happen. Compromising approach was been
suggested by the manager as the suitable approach to resolve the conflict of
management. This approach is similarity with collaborating approach, but this
approach did not fulfill hundred percent of satisfaction but the solution was fair for
both parties that involve in the conflict. In view of the manager, he said that majority
pg. 20
Next, use forcing approach to resolve the conflict of management, in the view
of manager is also favorable approach besides using compromising approach. But
there is a few of condition that must be fulfill before using this approach such as span
of control.
Based on literature review, before the organization decide the type of approach
that they are going to used in the organization, there have factors that they need to
take into consideration in aspect of organization contextual variables which is span of
control, organizational structure and satisfaction with supervision, and aspect of
superiors individual characteristics which is hierarchy level, age and length of
service, and gender, and race.
Based on manager, company has narrow span of control because the company
was not in branch only that not need a lot of staff to handling the company, using
bureaucratic organization as their organization structure, and employees was satisfied
with supervision of the company by looking at their low rate of employee turnover.
Chin Hin Sdn Bhd take seriously about their staff welfare. They will be given the
promotion, bonus, and commission to their staff, this is make the staff feel a sense of
belonging toward the company. Based on above, we can conclude that Chin Hin Sdn
Bhd was using compromising approaches, dominating approach and collaborating
approaches to resolve the conflict.
Then, based on manager, the company has execution of certain task at the
appropriate hierarchy level for example like procedure to approved discounted sales
more than the standard for customer that buy motorcycle in large quantity. For age
and length, the company was establish in 2005, and the manager already has
experience in their field, same goes to their staff, this is because they have low rate of
employee turnover. For gender and race, this company did not take into the
consideration, because they more focus on skills, attitude and ability of an individual
pg. 21
7. Limitation
Our group has faced some limitations in preparing and carrying out this
assignment. Because of the interview session is carried out in Malay language, it
difficult for us to match the term that used by the manager with our study. The
problems is when we want to related our finding with our literature in journal.
Next, the company that we interview is the branch company. So the finding
that we get may not represent other company in Malaysia. In addition, we only
interview one company, so we cannot say that our finding sample was representative
pg. 22
8. Recommendation
From our research and observation, management control system in Chin Hin
Sdn Bhd was unique and flexible. This is because their used both type management
control system which is bottom-up and top-down in their organization. But there has
disadvantage if the company using both of the because there may arise new issue in
future and may increase the confusing for decision making process.
Next, our recommendation for the next researcher, we suggested to pick more
sample of company which is better more than one company. This might can help the
researchers to analysis the management applied by the companies. If they lack of
time, we are suggested to interview the company that have high reputation in
Malaysia.
Furthermore, to gain more information about the management of conflict of
the company, we suggested the next researcher to interview the staff or employee of
the company. By doing this, the researcher can know the opinion them about of
effectiveness and efficiency of management control system and approaches that used
by company in order to resolve the conflict in order to avoid decreasing in
productivity and the performance of the firm.
Researcher also can increase their study about the previous papers to gain the
knowledge in research and prevent conducts the similar research which will consumes
the time. Suggestion by previous study also can help the next researchers to gain new
idea in research. Relevance of previous papers picked is also helps the accuracy of a
study.
pg. 23
pg. 24
9. Conclusion
MERL
IBRAHIM
AIN
Human resources or human capital plans and planning are crucial and have
positive impact on organization success. They can therefore be used effectively to
achieve organization goals.
We conduct this research to investigate approach, procedure, performance
measurement system, companies planning for employee recruitment and lay off. We
gather much information from many sources to ensure our reserve conduct
successfully. We found that UPSB is using several theories in motivate employee such
as Maslow hierarchy of needs and Herzberg two-factor theories.
From the company that we interview, we found that UPSBprovide reward and
training to employee as motivation. Motivation is an important element in improving
work productivity, every industry needs to have a firm understanding of how it relates
to job satisfaction and reward systems. Understanding job satisfaction and employee
motivation can be key elements to improving productivity and efficiency.
A performance measurement system is constituted by the individual
measures.Fitzgerald et al. suggest that there are two basic types of performance
measure in any organization, those that relate to results of competitiveness and
financial performance and those that focus on the determinants of the results that
consists of quality, flexibility, resource utilization and innovation. UPSB measure
performance of employee based on 4 principles, which are efficient, commitment,
knowledge, and skill. UPSB lay off employee based on result evaluation. Employee
being lay off will be given 1 month to find a new job.
pg. 25
pg. 26
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pg. 27