Module 2

Strategies and Techniques of Organizational Behaviour

CONFLICT MANAGEMENT
 Meaning and Nature of Conflict

• Organizational conflict or otherwise known as workplace conflict, is described as the state of

disagreement or misunderstanding resulting from the actual or perceived dissent of needs,
beliefs, resources and relationships between the members of the organization.

NATURE OF CONFLICT:
• Conflict is a Process
• Conflict is Inevitable
• Perception
• Incompatibility
 Workplace Conflict and Conflict Management
• Organizational conflict or otherwise known as workplace conflict, is described as the state of disagreement or
misunderstanding resulting from the actual or perceived dissent of needs, beliefs, resources and relationships between
the members of the organization.

• Conflict management is the process by which disputes are resolved, where negative results are minimized, and positive
results are prioritized.

• This key management skill involves using different tactics depending on the situation, negotiation, and creative
thinking. With properly managed conflict, an organization is able to minimize interpersonal issues, enhance client
satisfaction, and produce better business outcomes.
 Conflict and Types of Conflicts
• Organizational Conflict or otherwise known as workplace conflict, is described as the state of disagreement or
misunderstanding resulting from the actual or perceived dissent of needs, beliefs, resources and relationships between
the members of the organization.
 Types
• Intrapersonal of Conflicts: On the Basis of Involvement
Conflicts
It refers to the conflict within an individual due to factors like frustration or role ambiguity.
For example, frustration and conflict due to an ethical dilemma.

• Interpersonal Conflicts
Interpersonal conflict is any conflict that arises between two or more people.
For example, the employee believes they deserve a raise, while the owner disagrees that their productivity warrants this pay
increase.

• Intragroup Conflicts
Intragroup conflict is conflict within a group or team, where members conflict over goals or procedures.

For instance, members of a marketing group debating about the best way to launch a new product.
• Intergroup Conflicts
Conflict can arise between two groups within the same enterprise which will be called an intergroup conflict.

For instance, the marketing team may want more funds for marketing initiatives, but the production department rather insists
on utilizing the funds to improve the quality of the product.
• Interorganizational Conflicts
Interorganizational conflict involves disputes between two or more organizations.
 Types of Conflicts
On The Basis of Scope
• Task Conflict
Conflicts due to disagreements in task objectives and outcomes.

• Process Conflict
Conflicts are due to disagreements related to the manner in which the task should be performed, who should perform
the task, roles and responsibilities, etc.

• Relationship Conflict
Conflicts due to personality and value clashes among individuals.

On The Basis of Results

• Constructive/Functional Conflict
Conflicts that lead to positive and constructive outcomes, such as improved creativity and performance.

• Destructive/Dysfunctional Conflict
Conflicts that lead to negative and dysfunctional outcomes such as increased absenteeism and turnover.
 Stages of Conflict:
Pondy’s Conflict Episode Process
 Stages of Conflict:
Pondy’s Conflict Episode Process
 CONFLICT RESOLUTION AND MANAGEMENT

• Conflict resolution means that a conflict is solved, settled, or finalized, whereas conflict management
means that the conflict is mediated, handled, and coped with.
• Conflict resolution is the process of resolving disagreements between two or more parties by
understanding the needs of each party and finding a solution that satisfies everyone.
• Conflict management is a process of recognizing and addressing disagreements between two or more
parties. Conflict management strategies can range from simple negotiation to more complex mediation
and arbitration.
Conflict Resolution Styles:
Thomas Kilmann Model
Conflict Resolution Styles:
Thomas Kilmann Model
 Application of the Different Conflict Resolution Styles

USE THE COMPETING STYLE FOR DO NOT USE THE COMPETING STYLE
COMMUNICATION: FOR COMMUNICATION:

• When quick, decisive action is needed • When it hurts others

• When it is an emergency • When it makes them really angry and resentful
• When an unpopular course of action is • When there is a sabotage or resistance
necessary
• When a win for you is vital
 Application of the Different Conflict Resolution Styles

USE THE ACCOMODATING STYLE FOR DO NOT USE THE ACCOMODATING

COMMUNICATION: STYLE FOR COMMUNICATION:

• When you know that you are wrong • When you can’t please everyone
• When you know that the other party needs your • When you could be taken advantage of with
help respect to workloads and projects
• When the issue is more important for your • With potentially bad direction or ideas
opponent • When expectations or roles are misunderstood
• When there is a need to build relationships
• When there is a need to develop teams
 Application of the Different Conflict Resolution Styles

USE THE AVOIDING STYLE FOR DO NOT USE THE AVOIDING STYLE FOR
COMMUNICATION: COMMUNICATION:

• When the issue is trivial • When the message is not heard

• When you need to get more information • When the problem does not go away
• When there is no chance of you winning • When avoidance can cause stress and looks bad
• When the disruption can be costly
• When the time is not right
 Application of the Different Conflict Resolution Styles

USE THE COMPROMISING STYLE FOR DO NOT USE THE COMPROMISING STYLE
COMMUNICATION: FOR COMMUNICATION:

• When you need to find a quick solution • When a trade-off causes problems
• When both sides have equally strong arguments • When strategic decisions and goals are involved
• When goals are moderately important but not • With a breach of commitments previously agreed
worth the effort • When it violates company policies, norms and
• When there is a need to achieve a temporary goals
settlement to complex issues
 Application of the Different Conflict Resolution Styles

USE THE COLLABORATING STYLE FOR DO NOT USE THE COLLABORATING

COMMUNICATION: STYLE FOR COMMUNICATION:

• When your objective is to learn • When there is a lack of time

• When both parties are willing to work towards • When the problem is trivial
a result • When there is no interest in collaborating
• When both sides are committed to their cause
• When there is a need to build relationships
• When the goals of both sides are too important
to be compromised
 Pros and Cons of the Different Conflict Resolution Styles

ACCOMODATING STYLE:

AVOIDING STYLE:
 Pros and Cons of the Different Conflict Resolution Styles
COMPROMISING STYLE:

COMPETING STYLE:
 Pros and Cons of the Different Conflict Resolution Styles

COLLABORATING STYLE:
Case Study
 Case Study Discussion

1. John is adopting the Competing style with some degree of Avoidance as well.

2. Instead, John could choose to appreciate Eva’s skills and expertise and adopt a Collaborative

style instead of Competing.

“The quality of our lives depends not on
whether or not we have conflicts,
but on how we respond to them.”

- Thomas Crum
Time Management Strategies
 Time Management Techniques
1. Pomodoro Technique: This technique involves working in focused 25-minute intervals, followed by short 5-minute
breaks. After four consecutive work sessions, you take a longer break of 15-30 minutes. The idea is to maintain a
high level of productivity during the work periods, while also allowing for brief periods of rest and rejuvenation.
2. Eisenhower Matrix: This technique involves categorizing tasks based on their urgency and importance. The matrix
has four quadrants: urgent and important, important but not urgent, urgent but not important, and neither urgent nor
important. This helps prioritize tasks and focus on the ones that are most important and urgent.
3. Getting Things Done (GTD): This technique involves capturing all your tasks, ideas, and to-dos in a system, and
then breaking them down into actionable steps. The idea is to free up mental space by getting everything out of your
head and into a trusted system, so you can focus on actually doing the work.
4. Eat That Frog: This technique involves tackling your most difficult or unpleasant task first thing in the morning, so
you can get it out of the way and start the day with a sense of accomplishment. The idea is to avoid procrastination
and build momentum for the rest of the day.
5. Time Blocking: This technique involves dividing your day into blocks of time for specific tasks, such as answering
emails, working on a project, or taking a break. The idea is to be intentional with your time and avoid multitasking,
which can be a drain on productivity.
6. The 80/20 Rule: This technique, also known as the Pareto Principle, suggests that 80% of your results come from
20% of your efforts. The idea is to focus on the tasks that have the biggest impact and let go of tasks that are less
important.
 Time Management Strategies
1. Set SMART goals: Setting specific, measurable, achievable, relevant, and time-bound (SMART) goals can
help you stay focused and motivated. Break down larger goals into smaller, actionable steps to make them
more manageable.
2. Prioritize tasks: Identify the tasks that are most important and urgent, and focus on completing those first.
Use techniques like the Eisenhower Matrix or Time Blocking to prioritize tasks and make sure you're
spending your time on the most important things.
3. Use a task management system: Use a system, whether it's a to-do list, a planner, or a digital tool, to keep
track of your tasks and deadlines. Make sure to update it regularly and review it at the beginning and end of
each day to stay on track.
4. Minimize distractions: Identify the things that distract you the most, such as social media or email
notifications, and try to minimize them. Use tools like website blockers or turn off notifications during
focused work periods.
5. Take breaks: Taking regular breaks can actually improve your productivity by giving your brain a chance
to rest and recharge. Use techniques like the Pomodoro Technique to work in focused intervals and take
short breaks in between.
6. Delegate tasks: If possible, delegate tasks to others who are better suited to do them or who have more time
available. This can help free up your time to focus on tasks that are more important or require your specific
expertise.
7. Learn to say "no": It's important to prioritize your time and sometimes that means saying "no" to requests
or invitations that don't align with your goals or values. Practice setting boundaries and saying "no" in a
respectful and assertive way.
Learning Organization and
Organization Design
 Learning Organization
• A learning organization is an organization that values and
promotes continuous learning and development at all levels.
• It is one that assumes learning is an ongoing and creative
process for its members and therefore, develops, adapts, and
transforms itself in response to the needs and aspirations of
people, both inside and outside itself.
• Learning organizations foster an environment wherein people
can "create the results they truly desire," and where they can
learn to learn together for the betterment of the whole.
• Garvin defines learning organizations as skilled at five main
activities: systematic problem solving, experimentation with
new approaches, learning from past experiences, learning
from the best practices of others, and trans£erring knowledge
quickly and efficiently throughout the organization.
 Advantages of Learning Organization
• Improved Adaptability: Learning organizations are able to adapt to change quickly and efficiently. They are
always looking for new ways to improve their processes and strategies, which allows them to respond to
new challenges and opportunities. Example: A software company that continuously invests in its employees'
learning and development can quickly adopt new technologies and market trends, stay ahead of the
competition, and develop innovative products.

• Increased Employee Engagement: A learning organization promotes a culture of learning, growth, and
development, which increases employee engagement and job satisfaction. Employees feel valued and
invested in their personal and professional development, which leads to improved productivity and retention.
Example: An education institution that provides opportunities for its employees to attend professional
development workshops, seminars, and conferences can create a highly engaged and motivated workforce
that is committed to providing high-quality education.

• Better Decision-Making: A learning organization is able to make informed decisions based on data and
feedback. Employees are encouraged to share their insights and ideas, and leaders are open to feedback
and suggestions, which leads to better decision-making and improved outcomes. Example: A healthcare
organization that regularly collects and analyzes patient data can identify areas for improvement and make
 Advantages of Learning Organization
• Enhanced Innovation: Learning organizations encourage creativity, innovation, and
experimentation, which leads to the development of new ideas, products, and services. They
create an environment that fosters innovation and supports risk-taking. Example: A technology
company that allocates resources for innovation and encourages its employees to come up with
new ideas can create innovative products and services that meet the needs of its customers.

• Improved Performance: A learning organization is able to improve its performance through

continuous learning and development. Employees are equipped with the knowledge, skills, and
tools they need to perform their jobs effectively, which leads to improved productivity and
performance. Example: A manufacturing company that invests in its employees' training and
development can improve its production processes, reduce waste, and increase efficiency,
leading to improved performance and profitability.
 Organization Design
• Organization design refers to the deliberate alignment of organizational structures, processes,

roles, and responsibilities to achieve specific goals and objectives.

• It involves designing and arranging the different components of an organization in such a way

that they work together efficiently and effectively towards achieving the desired outcomes.

• Organizational design is about creating the best fit between the strategic choices of the

organization and the organizational setting.

• Organization design is a strategic process that requires careful consideration and planning to

ensure that the organization is structured in a way that supports its mission, vision, and values.
 Elements of Organization Design
• Work specialization: This refers to the degree to which tasks are divided and broken down into

specialized roles and responsibilities. Work specialization can increase efficiency and productivity, but it
can also lead to boredom and monotony.

• Departmentalization: This refers to how different functions or activities are grouped together into
departments or units. The most common forms of departmentalization are functional, product,
customer, and geographic.

• Chain of command: This refers to the formal authority relationships within an organization, and the lines
of communication and reporting that flow from top to bottom. A clear chain of command helps to
establish accountability and avoid confusion.

• Span of control: This refers to the number of employees that a manager or supervisor is responsible for
overseeing. A narrow span of control means that managers have fewer employees to manage, while a
 Elements of Organization Design
• Centralization and decentralization: This refers to the degree to which decision-making authority is
concentrated at the top of an organization, or distributed throughout different levels. Centralization can
provide greater control and consistency, while decentralization can promote innovation and flexibility.

• Formalization: This refers to the degree to which rules, procedures, and policies are established and
enforced within an organization. High formalization can provide greater consistency and standardization,
but it can also limit creativity and flexibility.

• Culture: This refers to the shared values, beliefs, and assumptions that guide behavior within an

organization. Culture can have a significant impact on organizational performance and employee
satisfaction.

These elements are interdependent and should be carefully considered when designing an organization's
 Rewards and Punishments:

Termination,Layoff,Attrition,Retrenchment,Separations and
Downsizing
 Separation

Attrition Termination
(Normal ((Abnormal
circumstances) circumstances)

Retirement Death Resignation Layoff Retrenchment Dismissal

 Employee Separation

• Definition: Employee Separation is the discontinuation of his employment contract

with the company. The termination of employees services can be either Voluntary or
Involuntary. This can take the form of Retirement, Resignation, Discharge, Layoff, etc.
• The companies and employees must specify valid reasons behind their
separation. The process may be upsetting for both, company and its employees.
• Hence, the employee separations should be well planned and reasonable.
 Retirement
• Retirement: Retirement is the major cause of separation of employees from the organisation. It can be defined as the
termination of service of an employee on reaching the age of superannuation. For example, at present the superannuation age
for the teachers working in the Central Universities is 62 years and in case of some state government employees, it is 58 years.

• Retirement may be of two types:

(i) Compulsory Retirement: This is the retirement when employees retire compulsorily from service on attaining the age of
superannuation. Some organisations like Universities may have a policy to reappoint professionals and others who possess rare
skills and expertise for a limited time even after attaining superannuation.

(ii) Voluntary Retirement: When organisations give option to its employees to retire even before superannuation, it is called
‘voluntary retirement’. This scheme is termed as, ‘voluntary retirement scheme (VRS)’. Of late, in their efforts to downsize the
employees, organisations by providing certain incentives, are trying to encourage their employees to opt for voluntary retirement.
Employees in return of voluntary retirement are given lumpsum payment. This type of retirement is also called ‘Golden Hand
Shake’.
 Resignation
• Resignation is termination of service by an employee by serving a notice, called ‘resignation’ on the employer.

Resignation may be voluntary or involuntary. A voluntary resignation is when an employee himself/herself decides to
resign on the grounds of ill health, marriage, better job prospects in other organisations, etc.

• Resignation is considered involuntary or compulsory when the employer directs the employee to resign on grounds of

duty and indiscipline or face the disciplinary action. However, in case of involuntary resignation, a domestic enquiry
should be conducted before asking the employee to resign. This is because otherwise the affected employee can go to the
union or court of law and complain that he was asked to resign under duress.

• While some resignations may be advisable and beneficial for the organisation to rectify the mistakes committed in hiring

the employees, excessive turnover may be alarming as well. In such case, it is appropriate for the organisation to trace
out the reasons behind resignations by conducting ‘exit interviews’ with the employees who are leaving the organisation.
 Separation due to Death
• Death comes without call. Some employees may die in service before attaining the
age of superannuation. When death occurs due to occupational hazards, the
employee gets compensation as per the provisions of Workmen’s Compensation Act,
1923.
• Some organisations have provisions to give employment to the spouse/child or
dependent of an employee who dies in service. The normal separation of employees
from an organisation owing to resignation, retirement and death is known as
‘attrition’.
 Layoff
• Layoff implies denial of employment to the employees for reasons beyond the
control of employer. Breakdown of machinery, seasonal fluctuations in demand,
shortage of power, raw materials, etc. are the examples of reasons leading to layoff.
• According to Section 2 (KKK) of the Industrial Disputes Act, 1947, lay off is defined
as “the failure, refusal or inability of an employer, on account of shortage of coal,
power or raw materials or accumulation of stocks or breakdown of machinery or by
any other reason, to give employment to a workman whose name appears on the
muster rolls of his industrial establishment and who has not been retrenched”.
• It is important to note that the employee-employer relationship does not come to an
end but is suspended for some time Layoff may be temporary. In seasonal Industries
like mines, sugar, etc., lay off occurs routinely. Layoff also may occur for an
indefinite time. When layoff becomes a permanent one, it is called ‘retrenchment’.
 Retrenchment
• Retrenchment means permanent termination of an employee’s services for economic reasons. Retrenchment occurs
on account of surplus staff, poor demand for products, general economic slowdown, etc. It’s worth noticing that
termination of services on account of retirement, winding up of a business, illness or on disciplinary grounds does
not constitute retrenchment.

• Retrenchment is mainly seen in plantations, agricultural services, forestry and logging, food products, manufacture
of machinery and cotton textile. The reasons pointed out behind retrenchment were mainly financial stringency
and lack of demand for their products.

• The Industrial Disputes Act, 1947 makes it obligatory for organisations employing 100 or more employees to give
three months’ notice to the employee to be retrenched and also seek prior approval of the Government.

• In other organisations, employee must be served one month’s prior notice in writing indicating the reasons for
retrenchment. He/she should be paid compensation equal to 15 days’ wages for every completed year of service. As
and when there is need for employing people in future, the retrenched employee must be given preference.
 Dismissal
• Dismissal is termination of service of an employee as a punitive measure. This may occur either on
account of unsatisfactory performance or misconduct. Persistent failure on the part of employee to
perform up to the expectations or specified standard is considered as unsatisfactory performance.
Wilful violation of rules and regulation by the employee is treated as misconduct. Dismissal is a
drastic step seriously impairing the earnings and image of the employee.

• Therefore, dismissal as a measure should be resorted to with great care and caution. It must be
justified and duly supported by the just and sufficient cause. Before an employee is dismissed, he
must be served advance notice to explain his position. The reasons for dismissal must be clearly
made known to the employee.
 Downsizing
• Downsizing literally means reducing the size of the organisation in order to cut costs, hive off unprofitable operations
and improve operational efficiency.

• In fact, it is a restructuring process to meet the challenges of the environment. In the context of human resource
management, downsizing involves elimination of certain jobs with a view to cut pay bill and improves work efficiency.

• Downsizing is also given such names as restructuring and rightsizing. Irrespective of the name used, it almost always
means reducing the size of the organizations permanent full-time staff.

• Organizations resort to downsizing to solve the problem of surplus staff and thereby improve their financial position,
work efficiency, and competitiveness.

• Downsizing means reducing the strength of employees through planned elimination of positions and jobs. Because of
global competition most of the companies want to reduce costs and be competitive. The first causality is the number of
workers employed, and since 1992 many Indian companies have resorted to downsizing by introducing VRS. It is
spreading fast, and has affected many enterprises in different sectors.
 Reasons for Downsizing
1. To Solve the Problem of Initial Over-Staffing:
Due to faulty HR planning or to fulfil social commitment, some organizations may employ more employees as against their actual
requirement. Most government departments and public sector enterprises of Government of India face the problem of over-staffing.
This is because the government has the social responsibility to reduce unemployment in the country.
2. To Deal with the Adverse Consequences of Economic Recession:
Recently, many organizations, under the pressure of the global economic recession, downsized their organizations by laying off or
retrenching employees. For example, Tata Motors laid off 6,000 temporary workers to tide over economic recession. Citigroup, an
American financial company, axed 52,000 jobs globally, and its Indian arm, Citi India, laid off 37 employees, including senior
executives.
3. To Take Advantage of Technological Advancements:
In the present times, rapid developments are taking place on the technology front. Automation, computers, and the internet have
changed the way business operations are carried out. Due to this, the man-machine ratio has undergone a drastic change. Today, an
organization requires less manpower to perform the same amount of work, if not more. Thus, technological developments made
downsizing of organizations somewhat inevitable.
4. To Concentrate on Core Activities and to Outsource Non-Core Activities:
To be successful in today’s competitive environment, most organizations prefer to concentrate on activities in which they have core
competence and outsource non-core activities. As a result, people employed in non-core activities become surplus, thereby
necessitating the need to downsize the organization.
 Techniques of Downsizing
• Layoff: the most obvious downsizing strategy is to fire employees. The company might
offer a buy-out package for people who leave the company voluntarily.
• Early retirement(VRS): in some cases, companies can encourage people to retire earlier. To
motivate their employees, they might offer early retirement packages and incentives.
• Transfer : when a company changes location, instead of laying off an employee, they might
offer to relocate them to another branch.
• Sabbatical: company can propose for their employee to leave for a specific period and agree
to rehire them after a while.
• Hiring freeze/Attrition: a longer-term strategy is not to replace retired and temporary
workers who have left the organization so that the number automatically comes down.
 Implications of Downsizing(pros)
(1) Downsizing ensures a proper balance between the staffing requirement of an organization and the availability
of its workforce.

(2) Downsizing cuts labour costs which the organization was so far incurring in maintaining its surplus staff.

(3) Downsizing improves the profitability (bottom line) of an organization which is a direct result of reduction in
labour costs.

(4) Downsizing improves the competitive ability of an organization. This becomes possible by restructuring the
organization by abolishing multiple levels of management and making it ‘flatter’, which is quick to respond to the
needs of the customers.
 Implications of Downsizing(cons)
1. Affects Morale of Employees: Downsizing hurts morale and productivity by leaving ‘surviving’
employees over-burdened and demoralized.

2. Losing credibility: Downsizing damages the reputation of the organization. For those who intend to
join the organization, an act of downsizing can destroy the image of the organization as a ‘lifetime’
employer.Creditors would also be even thinking twice whether to proceed. Though the company may
not actually be downsizing due to financials, the overall picture on that credibility takes a hit.
3. Affects the bottom line:As downsizing is mainly reducing the overall burden on financial, it
indirectly affects the bottom line.Like let's take for instance, if there is a reduction of manpower, then it
would also directly hit the production or services as it would also be reduced when compared to the
previous one.Though it may seem that it will efficiently increase, but it may not be so.
4. Negative public perception: Most of time, business who don’t declare their downsizing reasons
create a negative impact on their image in the eyes of the public. They seem to others as unprofitable or
failing business thereby decreasing clients due to some misconceptions & misconceptions can be
avoided by being vocal of the reasons for downsizing.
Thank you