HR Strategies for managing conflict in international organizations. There are different views on the nature and impact of conflict. Some see conflict as inherently harmful while others see it as natural and even necessary for growth. Culture also influences how conflict is viewed and handled, with more individualistic cultures tolerating open conflict better than collectivist cultures. Effective conflict resolution requires understanding these cultural differences and using appropriate strategies like cooperation, compromise, and mediation tailored to the specific situation. International organizations face additional complexities in managing conflict due to factors like cultural differences, geographically dispersed operations, and varied laws and practices across countries.

1. HR Strategies for the Int Manag
CONFLICT

2. Definition
 K.W.Thomas: “ A process that begins when one
party perceives that another party has negatively
affected or is about to negatively affect something
that the first party cares about”
 FUNCTIONAL CONFLICT - supports the goals of
the groups and improves its performance
 DYSFUNCTIONAL CONFLICT - hinders group
performance

3. THEORIES OF CONFLICT
 TRADITIONAL VIEW - conflict as harmful and to
be avoided
 Solution is therefore to look at causes of conflict and
correct these.
 HUMAN RELATIONS VIEW - conflict as natural
and inevitable
 Conflict must therefore be accepted
 INTERACTIONIST APPROACH - some conflict as
absolutely necessary for a group to perform
effectively

4. Unitary & Pluralist Frames of
Reference: Alan Fox
 Unitary view: Firm as a family, team;
Management expects undivided loyalty; assumes
shared goals & anything different is blamed on
the workers
 Management view their actions as legitimate
which can lead to problems with unions,
assertions of authority
 Management relies mainly on control & authority

5. Pluralist View
 A coalition of interests. Some sections of the firm
only partially loyal to the firm; conflict is inevitable
and resistance to change is normal
 Management can accept unions & conflict more
easily
 There is a plurality of power in organisations;
power will be used to resolve conflict

6. Reasons for Dispute
 Disputes are internal, can be with outside
agencies and can be handled in very
different ways
 Where there is competition for resources,
responsibilities, status, promotions, power
 Strategies will differ depending on interest
levels, changes in external environment eg
competition, leadership, shareholders etc

7. Reasons continued
 The environment eg trust? Politics?
 Most stem from communication problems and
other interpersonal issues, for instance someone
being left out of the communication loop, a
misunderstanding, a personality clash.
 Disputes are inevitable and in international
organisations cultural and language differences
will exacerbate the problems

8. Culture & Conflict
 Anglo cultures believe some level is necessary to
stimulate creativity and initiative (fits in with the
philosophy of ‘doing’ and not just being’ - ‘self-
development through doing’ cultures)
 Tension when well-handled brings new
energy/added value
 Conflict beyond acceptable limits will be dealt with
eg discipline, dismissal
 Persons may be in conflict in one area and friendly
in another; one needs to compartmentalise

9. Dispute in Collectivist Culture
 ‘Being’ cultures’ – see it as threatening harmony of
group; disagreements not seen positively
 Disputes in one area have repercussions in others
 Dispute is feared as it may destabilise status quo
 Hostile takeovers accepted in US but the systems
in Japan eg financial institutions are not in accord
 Eastern – e.g. Japan greater co-operation to reach
agreement
 Thai philosophy feels co-operation should be
encouraged much more

10. Disputes continued
 Disputes in collectivist countries exist but
are dealt with differently
 They develop strategies to minimise
threatening aspects of dispute. Mead says
open dispute often dealt with by
acceptance of latent dispute rather than
‘head on’

11. Studies & Theories
 Laurent’s work (’86) showed that 41% Italian
managers felt conflict should be eliminated,
27% French, 4% Swedish. Managers who
wanted it eliminated felt threatened by
perceived loss of authority eg bypassing line
manager
 Hofstede (2001 and earlier) – in collectivist
societies harmony should be maintained

12. Hofstede
 Collectivist cultures – maintain
harmony/avoid direct confrontations
 Individualistic cultures – speaking one’s
mind= honest person
 Collectivist – OPEN dispute discouraged
– LATENT dispute tolerated
 appearance of harmony maintained
 Confrontation occurs if few risks

13. Theories continued
 In cultures where high UA is the norm, disputes are
seen as destabilising.
 High UA cultures – conflict highly undesirable, emotionally
disapproved of; low readiness to compromise with
opponents
 Low UA – conflict is natural, competition can be fair
and right; greater readiness to compromise with
opponents
 In low UA cultures, competition may be fierce but
reconciliation is usually achieved

14. Theories continued
 In masculine cultures, disputes are often
more overt; compromise and negotiation are
valued in more feminine cultures
 Masculine cultures – conflicts resolved by
fighting them out
 Feminine – resolved by compromise/
negotiation

15. Theories continued
 High PD – latent conflict between ranks
normal
 peers reluctant to trust each other
 Low PD – harmony between powerful/
less valued
 peers willing to co-operate

16. Tolerance
 Varies across cultures eg Mead’s example of Thai
office of an American manufacturing company.
Competition amongst supervisors for manager’s
position caused 3 supervisors to leave because of
loss of face
 Competition encourages new ideas but can be
damaging to relationships

17. Conflict
 Argument can be constructive when info used to
resolve the situation, personal attacks are
avoided; communication is full and accurate;
differences are resolved
 Conflict occurs when parties are unwilling to
accept closure to the competition and argument
 Reasons include no perception of common
interest; arbitration is unsuccessful; the cost of
losing is too high; personality clashes cannot be
resolved

18. Resolving Conflicts
 Clarifying strategic priorities
 Flexible structures eg cross discipline teams
 Good communication systems; avoidance of
ambiguity
 Discourage personal attacks; concentrate on
the issues
 Appropriate procedures for dispute resolution
eg in accordance with the culture

19. Tactics for Dealing with Conflict
 Co-operation – Work together to achieve
common goals (not necessarily equal)
 Collaboration – Parties to a conflict each try
to satisfy the concerns of all parties
 Avoidance – Ignore the conflict or the
people with whom you disagree
 Accommodation – One party self sacrifices
 Compromise – No clear winners or losers

20. Culture & Resolution
 In Anglo cultures, managers must be willing
to confront problems; avoidance &
appeasement may work but are normally
seen as weakness
 Japanese & Chinese more likely to try to
resolve through compromise;
interpersonal relationships much more
important and help to resolve differences

21. Mediation
 A superior and an outsider may be asked to
mediate; both sides must accept the decision in
advance
 Usually try to negotiate so neither party wins
everything or loses everything
 Popular in collectivist countries eg Indonesia,
Singapore
 Exists in West but hasn’t been used extensively

22. Negotiation
 Every negotiation involves possible conflict and
co-operation eg mergers
 Negotiator needs to identify those points
 Sides need to decide what they are willing to give
on and what is their fall back line
 Is it a short term issue eg a sale or a long term
position eg a partnership?

23. Negotiation Tactics
 Where? Alternating? Neutral?
 When? Timing is critical and needs to consider
other business needs eg business peaks and
deadlines; religious holiday? Is data available?
 Who? Where trust high more info will be shared; if
not, more proof needed
 Ethical behaviour, trust, authority, respect,
persuasion are important

24. Tactics continued
 How big a team? What disciplines needed? US
relies heavily on legal advice
 Asian countries may have more respect for older
negotiators
 In international deals, agents who are more
familiar with the culture may help in a good deal
of the preparation and in briefing the team
 Is someone with final authority to make a
decision part of the team?

25. Outcome – S. Robbins
 Functional – Improves the quality of decisions;
stimulates creativity and innovations; environment
of change; opposes the complacency of group
think
 Dysfunctional – Reduction in group cohesiveness;
subordination of group goals to politicking;
increased workload eg additional paperwork to
cover themselves; stress, turnover of staff, job
losses; failure of firm

26. Complexities in an International
Firm
 1. Strategic needs structure, goals, change
 2. Complexity – structure, IT, H.O. versus local;
interdepartmental rivalry
 3. H.O need for control over subsidiary
 4. Size – Need for formality, lack of face to face
contact; time differences
 5. Decision making; priorities; resources
H.O. or local?

27. Complexities continued
 6. Different laws, norms, practices, ethical issues
 7. Cultural Issues – eg Hofstede’s PD, UA
 8. Staffing – Ex-pat vs local; skills; training
 9. Salary Differentials – H.O. vs Ex-pat; ex-pat vs
local; loss of work
 10. Isolation – Them & us