2. CONFLICT & CONFLICT MANAGEMENT
“Process in which one party perceives that its interests are being opposed or
negatively affected by another party”
Conflict management is the process of limiting the negative aspects
of conflict while increasing the positive aspects of conflict.
The aim of conflict management is to enhance learning and group
outcomes, including effectiveness or performance in organizational
setting.
Properly managed conflict can improve group outcomes.
3. TYPES OF CONFLICT
Substantive and affective conflict
Organizational and interpersonal conflict
5. Honda Motorcycle & Scooter India Pvt.
Ltd.
Honda is World’s largest manufacturer of Motorcycles.
Headquartered in Minato, Tokyo, Japan.
HMSI is established in 20th October 1999 in Manesar (Haryana).
HMSI is a wholly owned subsidiary of HMCL Japan.
Total 3000 employees : Out of that 2000 in worker category: (1300
confirmed workers, 700 contract workers)
Apart from this 700 were Trainees & 300 were apprentices.
6. Human Resource Policy at HMSI
Two fundamental beliefs:
• Respect for individual differences- initiative, equality & trust
• The Three joys – joy of buying, joy of selling , joy of manufacturing.
Association promoted among all employees through similar uniforms and same canteen facilities
for all.
Mainly focused on developing individual’s capacity to think, to reason, and to dream. Joy of
Creating was also an important value for the company.
Providing work environment free from discrimination, indiscipline and violence.
7. Human Resource Policy at HMSI
Appraisal was performed by the section head and the shift in charge.
Workers were divided into five categories with increments ranging from
400 to 1400 per month.
Opportunities for workers ranged from workers to sub-leaders to assistant
executives to executives.
No one covered by Payment of Bonus Act, 1961 & most of employees
were not covered by Employees state insurance act because of high
salaries.
• Company gave an ex gratia of one month’s gross pay as incentive around
Diwali
• No scope for workers’ expression through any letter to the editor.
8. Rise of issues at HMSI
The first labor unrest voiced in November 2004 regarding the Diwali gifts.
Movement Sheet for Washroom Breaks.
Managers showed partiality in matters related to job posting.
Strict attitude of the Japanese vice president.
Too much of workload in the form of handling multiple machine at the
same time.
Strict in granting leaves.
9. Reasons for unrest
The company failed to understand the needs and demands of the
employees.
Workers viewed Management activity as coercive and repressive.
HR policies adopted by the company was not in the context of Indian work
environment.
Top management were inaccessible to workers.
Hindrance by management towards formation of employee union.
Role of external parties in escalating the situation.
10.
11. Consequences
Slowdown of work
Output was affected
Widespread discontent among the workers
Workers demanded creation of union
Employees encircled the management resulting in violence
Shutting down of production
The incident of 25th July 2005- workers got beaten up by the police
12. After-Effects of conflict
Registration of employee union
Change in management attitude felt by union leaders; concessions allowed
on various fronts
A small room allotted to union leaders with a promise of a union office in
future
Invitation to all 7 union office-bearers to discuss workers-related problems
or issues
Overtime working issues: lure of extra money; medical problems, workers
not fresh
Overtime working was scraped in most cases.
13. After-Effects of conflict
Diwali gift: Rs. 2000 & credit in bank account of Rs. 4000 as incentive
bonus for all including managerial staff
Foundation day was again extended to family members
On Sep 9th, 2005 'A shift' in assembly achieved its target of 1000 scooters
for the first time after union formation.
VP- Manufacturing, GM- Productions came to shop floor & commended
achievement of workers; sweet distributed to all workers next day.
14. Conclusion
Failure of mgt. to realize importance of Diwali in India
Tokenism of conciliation in resolving collective issues
Carelessness on the part of Indian mgrs. about labour power
After a problem is identified, the next step in conflict resolution is to gain a
better understanding of the situation. If conflict isn’t handled effectively,
results may cause further damage and lead your team or organization
down a vicious path of negativity.
15. Recommendations..
Provide training for medium and senior management level on conflict
management.
Make job postings more transparent and fair to all employees
Make production process more flexible
Improve communication within the hierarchy
Set up weekly/monthly meetings between the top management and
workers.
Hire an external negotiator to when the problem occurs
Provide monthly survey to see how the employees are feeling about their
work and work environment
