Organisational Behaviour

Work conflict
Websters dictionary defines conflict as a sharp disagreement or
opposition of interests or ideas. Anytime people work together, conflict
is a part of doing business.
Conflict is a normal and natural part of any workplace. When it occurs,
there is a tendency for morale to be lowered, an increase in
absenteeism and decreased productivity.
It has been estimated that managers spend at least 25 percent of their
time resolving workplace conflicts causing lowered office
performance.
Workplace conflict is a specific type of conflict that occurs in
workplaces. The conflicts that arise in workplaces may be shaped by
the unique aspects of this environment, including the long hours many
people spend at their workplace, the hierarchical structure of the
organization, and the difficulties (e.g. financial consequences) that may
be involved in switching to a different workplace
Types:
Interpersonal conflict includes personality clashes and difficulty
working with others, both of which can lead to the employees showing
anger and exchanging negative comments.
Workplace complaints include disagreement with policies and
procedures, management decisions and individual entitlements, which
give rise to conflict between the employer or his representative and
the employee.
Causes:
1. Conflicting Resources-We all need access to certain resources
whether these are office supplies, help from colleagues, or even a
meeting room to do our jobs well. When more than one person or
group needs access to a particular resource, conflict can occur.
2. Conflicting Styles- Everyone works differently, according to his or her
individual needs and personality. For instance, some people love the
thrill of getting things done at the last minute, while others need the

structure of strict deadlines to perform. However, when working styles

clash, conflict can often occur.
3. Conflicting Perceptions- All of us see the world through our own lens,
and differences in perceptions of events can cause conflict,
particularly where one person knows something that the other person
doesn't know, but doesn't realize this. If your team members regularly
engage in "turf wars" or gossip, you might have a problem with
conflicting perceptions. Additionally, negative performance reviews or
customer complaints can also result from this type of conflict.
4. Conflicting Goals- Sometimes we have conflicting goals in our work.
For instance, one of our managers might tell us that speed is most
important goal with customers. Another manager might say that indepth, high-quality service is the top priority. It's sometimes quite
difficult to reconcile the two!
5. Conflicting Pressures- We often have to depend on our colleagues to
get our work done. However, what happens when you need a report
from your colleague by noon, and he's already preparing a different
report for someone else by that same deadline? Conflicting pressures
are similar to conflicting goals; the only difference is that conflicting
pressures usually involve urgent tasks, while conflicting goals
typically involve projects with longer timelines.
6. Conflicting Roles- Sometimes we have to perform a task that's
outside our normal role or responsibilities. If this causes us to step
into someone else's "territory," then conflict and power struggles can
occur. The same can happen in reverse - sometimes we may feel that
a particular task should be completed by someone else.
7. Different Personal Values- Imagine that your boss has just asked you
to perform a task that conflicts with your ethical standards. Do you do
as your boss asks, or do you refuse? If you refuse, will you lose your
boss's trust, or even your job? When our work conflicts with our
personal values like this, conflict can quickly arise.
8. Unpredictable Policies- When rules and policies change at work and
you don't communicate that change clearly to your team, confusion
and conflict can occur.
9. Interdependence Conflicts- A person relies on someone else's cooperation, output or input in order for them to get their job done. For
example, a sales-person is constantly late inputting the monthly sales
figures, which causes the accountant to be late with her reports.
10. Differences in Background/Gender- Conflicts can arise between
people because of differences in educational backgrounds, personal
experiences, ethnic heritage, gender and political preferences.

11. Differences in Leadership- Leaders have different ways of leading

their teams. Employees who have to deal with different leaders
throughout a day, can become confused and irritated by these
different ways of being led. For example, one leader may be more
open and inclusive, whilst another may be more directive.
12. Personality Clashes- all work environments are made up of
differing personalities. Unless colleagues understand and accept each
others approach to work and problem-solving, conflict will occur.
These types of conflict in the workplace are often fueled by emotion
and perceptions about somebody else's motives and character
13. Poor Communication- different communication styles can lead to
misunderstandings between employees or between employee and
manager. Lack of communication drives conflict underground.
14. Differing Interests- conflict occurs when individual workers fight
for their personal goals, ignoring organizational goals and
organizational well-being.

Resolving Conflicts:
Addressing Conflict
There are a number of ways that can be utilized to address workplace
conflict:
Avoidance: hiding our head in the sand, hoping the conflict will go
away.
Collaboration: working together to find a mutually beneficial
solution.
Compromise: finding the middle ground whereby a little is given
and little is gotten.
Competing: may the best person win.
Accommodation: surrendering our own needs and wishes to please
the other person.
It is generally believed that either collaboration or compromise
are the most productive forms of addressing conflict because
there is not a winner or loser but rather a working together for the
best possible solution.
Tips for handling workplace conflict
Approach conflict with an open mind-Different people have
different perceptions, and solving workplace conflicts requires finding
a common ground, not waiting until one person caves to the other.
"Try to understand the other person's point of view and how he or she
arrived at it.

Consider what might have caused the conflict- Take an objective

look at yourself and determine what you did or said to contribute to
the situation. Try to place yourself in the other person's shoes and
consider how the situation could be handled differently in the future.
Be respectful of differences- Workplaces are diverse places, today
more than ever, and what is acceptable to one person may be
offensive to another. If your office has a diversity program, consider
attending it, and if it doesn't, be the catalyst who brings one to your
workplace
Try to cut the conflict off in its early stages- Ask your co-worker
if you did anything to upset him or her. Communicate your willingness
to talk about this and see if together you can solve the issue.
Listen carefully-Before jumping to conclusions, sit down with the
person with whom you're in conflict and try to understand the issue
fully. During the conversation, make sure you acknowledge his or her
feelings and paraphrase their opinion back to them to enhance your
comprehension.
Be mindful of your language- It is important to avoid assigning
blame to the person you're speaking with, and taking note of the
words you use will help you avoid falling into this trap.
Ask for help-If the conflict continues to build, recruit someone in the
workplace whom you respect to act as a mediator. This could be your
manager, a human resources professional, or a manager from a
different department.
Be sure the problem is resolved- The problem isn't properly
resolved until both parties in the argument feel better about the
situation. Set guidelines for how to handle a similar situation in the
future. "You might say something like, 'Let's commit that you will let
me know right away if I do something that upsets you, and when you
bring it to my attention, we will stop what we are doing to address it.

Customer Relationship Management

Customer Retention
(continuation from notes written in books)
Benefits of Customer Retention
Reduce cost of acquisition
Increase in client base

 Repurchasing
Increase in turnover
Profitable relation
Mouth Publicity
Levels of Retention Strategy
1) Financial Bonds
Adding Financial Benefits
Frequency programs, Club memberships
Increased customer loyalty to price, incentives
Frequent flyer/reader/buyer/visitors Rewards.
Discounts, product upgrades, awards, prizes
Related products or providers expand the net
2) Social Bonds
Adding Social Benefits
Personalize customer relationships
Refers to a friendly companionship, trust, and ties. Increased customer
loyalty to the organization
Connections
Personal insight, recognition, mutual affection
Interpersonal interactions expand the link
Adding Customized Services
3) Customisation Bonds
Mass customization- Use of flexible process and structures to provide
varied and individually customised product or service.
Customer intimacy- involves gathering each and every information about
customer to anticipate his needs and to supply them product accordingly.
4) Structural bonds

Adding Structural Ties

Create long-term contracts
Charge less for ongoing purchases
Link product to long-term service

Use system design to solve problems, reinforce purchases, and recognize the
importance of each customer.
1) Systemic mass personalization.
2) Management
3) Cultivation, simulation
4) Artificial intelligence continues the connections

Increased customer loyalty to the experience

20 80 30 Rule

20% of your customers

Implications of 80/20 rule
Increase share of customer rather than market share
Serve current customers rather than focus on acquiring new customers
Customer Retention Strategies
1) Welcome strategy- The organizations appreciation for the initiation
of a relationship.
Creating a delightful surprise, making a good first impression
First touch: additional customer information
Reassure the buyers that they have made the correct choices.
Treat like a first date. Dont overdo it!
2) Reliability- The organization can repeat the exchange time and time
again with the same satisfying results.
Keep promise

 Ensure consistent quality

Continuous promotion is still the key.
3) Responsiveness- The organization shows customers it really cares
about their needs and feelings.
Loyal employees create loyal customers. Internal marketing.
Customer-contacted employees should have the authority as well as the
responsibility for date to date operational activities and CRM decision.
4) Recognition- Special attention or appreciation that identifies someone
as having been known before.
People respond to recognition.
Recognition and appreciation help maintain and reinforce relationships.
This is a programmed sequence of letters, events, phone calls, thank yous,
special offers, follow-ups, magic moments, and cards or notes with a personal
touch etc. that occur constantly and automatically at defined points in the
pre-sales, sales and post-sales process.

5) Personalization- Use CRM system to tailor promotions and products

to the specific customers.
Offer engine: take customer data after it is analyzed and applies it to create
the offer or message that is appropriate to the individual customer. Ex., My
site, Click stream analysis, free ride, etc.
dedication to customer satisfaction by every employee;
providing immediate response;
no buck passing;
going above and beyond the call of duty;
consistent on-time delivery;
delivering what you promise before and after the sale;
a zero-defects and error-free-delivery process and
recruiting outstanding people to deliver your customer service.

6) Access strategy- Identify how customers will be able to interact with

the organization.
General contact, product return, technical report, service representative,
change a mailing address
Is the access quick and easy?
In organization-initiated communication, organizations must consider the
intended message, channel (medium), and receiver characteristics.
In customer-initiated communication, consider the establishment of toll
free calls, web sites, priority access for providing services and collecting
customer data.
7) Reward Strategies- Frequent, best customers
Partnership Management Program
Switching costs: financial penalty, time loss, psychological barrier
Termination Penalty

Customer Complaint Management Strategy

Problem Identification and Management Rather tell the company than switch
to a competitor or tell someone else. Acting rather than reacting.

Build numerous mechanisms for identifying customer problems.

1) Customer satisfaction survey
2) Mysterious shoppers
3) Websites, other contacts points

Conflicts and Customer Complaints

Level of dissatisfaction
Attrition of blame
Cost/benefits of actions

Personal characteristics:

1) highly educated,
2) self-confident,
3) aggressive,
4) Older women.

Dealing with complaints

Having the skill to interact with different types of people. Trained in methods of
interaction and in different style of communication.
Be customer-centric. Let the customers know that they have been
understood.
Express regret
Resolve conflict
Accommodation, Compromise, Termination
Follow-up and prevent recurrence
Keep in touch and listen to customer
Resolve conflict
A disagreement in which the views of the customer and the organization appear to
be incompatible.
Accommodation: a settlement that emphasizes cooperative behavior.
Compromise: mutually acceptable middle ground that is somewhat
satisfactory to both parties.
Termination

RECALL MANAGEMENT:
(continuation from notes written in the book)
1) Differentiation strategies:
Channel Differentiation
Different channels of distribution can be used to serve the customers.

Due to usage of technology, internet is becoming one of the important

channel of distribution.
The internet:

Is a location-free, time-free distribution and communication channel.

Functions as a communication channel for companies that provide

product or service information online.

Serves as a transaction and distribution channel for companies that

conduct online commercial transactions.

Becomes the entire distribution channel for digital products.

Image Differentiation
A company can differentiate itself by creating a unique experience online,
called experience branding.
Through experience branding firms can better retain customers, target key
segments, and enhance profitability.
Some Web sites invite users to upload content and comments, which
gives them a competitive edge.
Differentiation Strategies
Trout and Rivkin proposed specific differentiation strategies common to offline
and online businesses:

Being the first to enter the market.

Owning a product attribute in the mind of the consumer.

Demonstrating product leadership.

Utilizing an impressive company history or heritage.

Supporting and demonstrating the differentiating idea.

Communicating the difference.

2) Personalisation Strategies
Personalization ..
Personalization relies upon the tacit and implicit knowledge of individuals
and is more focused on the sharing of knowledge mainly through direct

person-to-person interactions. Personalization could perhaps be simply

described as a people-to-people approach.
Personalization places emphasis on informal-knowledge sharing (such as
channeling individual expertise through creative, analytically
rigorous advice) where the focus is on connecting knowledge workers.
In personalization usage of IT tends to be in support of connecting workers,
for communicating or to facilitate transfer of knowledge, rather than to store
it.
This approach is more appropriate in organizations facing unique
problems or a high level of creativity is needed to meet specific needs or
when similar problems require customized solutions because of the influence
of a highly adaptive environment
It is quite understandable that what may be most appropriate in one part of
the organization might not be most effective everywhere -- so implementing
these strategies requires an inherent amount of flexibility and
extensibility to address both current and future requirements, with an
eye toward the balance of prioritization and meeting localized needs.
In marketing, personalization refers to using specific information about a
customer to tailor the marketing message uniquely to that
individual.
Personalization is also a key tactic for implementing one-to-one
marketing strategies that strengthen customer loyalty and often provide a
high return on your marketing investment.
Personalization is marketer-driven, in other words a marketer can
personalize the message it sends to each customer (i.e. send a reminder of
an upcoming birthday
Dear Julie,
Congratulations on your wise purchase of our superior product
Customization is user-driven, which allows users to specify the nature of
what is offered to them.
Product differentiation tries to differentiate a product from competing
ones, personalization tries to make a unique product offering for each
customer.
Personalized marketing (One to One Marketing) had been most
practical in interactive media such as the internet. A web site can track a
customer's interests and make suggestions for the future

Personalization and customization can help build customer loyalty and

make it less likely for customers to switch to other suppliers.
Personalisation will help to ensure that services are more person-centred;
community based and gives people more choice in how they receive their
own services. It is about making services fit around the individual, enabling
people to make decisions, maximising their life chances and giving them
choice and control in the way care and support is delivered
Three Levels of Personalization

The first level identifies the customer by name and address

(snail or e-mail).
The name draws attention better than Dear Customer and
communicates a sense of order and accuracy on the part of the
company, as well as suggesting a desire to do further business
with the individual.
The second level adds other information (data fields) about the
customer to increase the personal value of the message. The
focus is on content that is uniquely relevant to the individual
customer.
Transaction histories enable us to communicate specifically about
past purchases. If we solicit information on recreational or reading
preferences, for instance, we can provide additional content of special
interest to the customer, either as added value or as a platform to
promote other products and services.
The third level focuses on interaction. At this level, we are using the
data we have about each customer to directly encourage a
responsewe make special offers; deliver premiums; or invite
the customer to an event, such as a new product launch or
owner club.

The marketing thrust at this level is action.

We aim to bring the customer back to the retailer to buy or experience a new
product, generate a new order or build brand enthusiasm through
participation in events.
Example
Dell Computers, one of the most successful online computer retailers on
the Internet, has designed its personalization tools to make it easier for
shoppers to customize their own product specifications. The system guides
customers through a range of choices in RAM, hard drives and
peripherals, helping them avoid compatibility conflicts along the
way. This is a case of not overdoing it with personalization and increasing

serendipity. Dell doesn't waste users' time with needless features; instead, it
personalizes only what the user needs to get a good computer. At the same
time, the same referencing tool that steers the customers to compatible
products also steers them to products they might not know about, such as
different manufacturers' equipment, etc.
Techniques for gathering information for personalization strategies
include:

Written mail surveys and questionnaires

Written in-store surveys and questionnaires
In-store kiosks
Informal discussions
Formal discussions/focus groups
Anonymous suggestion/feedback boxes
Online questionnaires
Email

Personalization Tactics

Send email messages from a human, not a company

Use recipients' real names in email messages.
Segment your email database and personalize messaging
Target content to speak to the specific needs of various marketing
personas
Create targeted landing pages geared toward different marketing
personas
Going One-to-One With Products
Use marketing automation tools to trigger lead nurturing campaigns
based on content interest.
Create targeted LinkedIn Company Product Page variations
Experiment with Google+ topic Circles to target content
Respond to prospects and customers in social media
Use lead intelligence to personalize sales follow up.

Unit 3
CRM Cost Benefit Analysis

Any managerial initiative, before implementation, needs to be appraised from

the perspective of cost and benefit, and recommendation for application is
made only when the benefits exceed the costs.
This cost and benefit analysis has to be done from the perspective of both the
stakeholder who makes the business run ie the customer and the company.

CRM COST:
Hard cost :

Software licensing

Hardware fulfilment

Implementation cost

Consulting fees

IT labour
Soft Cost:
Employee downtime
Integration
Training
Implementation cost:-

IT Cost- hardware and software, implementation, labour, ongoing

administration and support

Business Cost- planning, training, process change management.

Software Licensing:

Cost of software, incremental per user fee, recurring annual maintenance fee

Procuring Hardware:

Upgrades or replacements, installation, testing.

Maintenance and support

Vendor Consulting Fees
Training

 CRM Benefit
1) To the Organisation Increased revenue through acquisition of new customers, retaining existing
customers, and increased wallet share through up-selling, cross-selling, etc
Reduced costs through automation of many services, providing self
services, differentiation, etc.
Identification of potential customers
Increased customer loyalty
Improved customer satisfaction
Customer database
Aiding client acquisition
Benefits of E-CRM to organisation

Service level improvements

Revenue growth
Productivity
Customer satisfaction
Automation

Benefits of implementing CRM system as per functional areas:

Marketing
Customer Support
Sales
2) To the customers Benefit of better service
Improved relationship
Social relationship
Involvement in process
Feeling of safety and comfort
Communication through contact points

 Increased satisfaction and feeling of being special.

Cost benefit analysis of CRM Implementation:
In order to establish CRM system within an organisation, one must assess
1) Implementation Costs
Cost of software licensing
Maintenance of support contracts
Database
Operating system
Hardware purchases
Maintenance of servers
Storage and network upgrades
Software integration and customisation
Designing
Development
Test and ongoing maintenance
Implementation labour
Ongoing administration and support labour
Planning and requirements meetings
User training and learning time
Process change management.
2) Tangible and Intangible benefits
Typically includes increase in staff productivity, cost avoidance, increased
revenue and margin and reduced inventory through the elimination of
errors.
Benefits could be divided into:

Tangible net benefits: tallies all of the planned project costs quantifies
each of the tangible benefits and calculates key financial performance
metrics such as ROI, NPV, and payback period.

Intangible benefits: key performance indicators(KPI) used to measure

success or shortfalls of CRM projects.
3) Risk Assessment
Evaluating the risks of people, process, and technology can proactively
mitigate their probability and manage their impact on project success.

Building customer loyalty in b2b commerce

PricewaterhouseCoopers (PWC) came out with a concept of market
intelligent enterprise which anticipates future needs of key customers
and fulfilling them before they move to the competitor.
PWC defines MIE (Market Intelligence enterprise) as An enterprise that
institutionalises the capacity to acquire and apply market
information quickly across and effectively manages customer
relationships with best customers and best prospects.
Process of developing MIE

Customer-centric organisational structure

A customer centric business focuses on obtaining a competitive edge
over similar businesses by creating a unique customer experience.
The customer centric attitude should flow downwards from
management.
The two most important elements in establishing a customer centric
organisation are an enterprise database and a workforce that can
both willingly share information and make a willing commitment to
customers, rather than to products or organisation.
It is a long, hard slog to become and maintain a customer centric
organisation, but the result is a much more profitable brand.
Customer centric organisation requires that :

A customer strategy is well articulated both internally and externally

and is championed by senior management.
There is alignment of resources to effectively deliver the customer
promise
Employees buy into the customer strategy and are themselves fully
engaged.

Egs: Aviva (press release)- Aviva scoops award for putting customers at
the heart.
Standard life reports- putting customer first.

Three components:

Customer Experience

Customer value

Customer lifecycle

Turning an organisation into customer centric:

Evaluate

Design

Activate

Measure

Product centric v/s customer centric organisation

Product
centric

Customer centric

Goal

Provide best
product

Provide best service to customer

Customer

Most advanced
customer

Most profitable and loyal customer

Priority

Portfolio of
products

Portfolio of customer

Process

New product
development

Customer relationship management

Focus

Seller side

Buyer side

Mental
process

Divergent
thinking

Convergent thinking

Culture

New product
culture

CRM culture

Organizati
onal
concept

Product profit
centers,
product teams

Customer segments and customer teams

Four essential steps of customer centric organisational structure

1) Communal coordinationa central, enterprise wide database is the key. This is a two part process.
The first involves standardizing and second part involves retrieving the
information from all customer touch points.
2) Serial coordinationcreating business analytical capabilities that leverages the customer
information repository.
Under this stage, various functional units mine and analyse the data
related to customers and then refined data is been passed on to
concerned business unit.
The main aim is to use this information for best marketing efforts. This
activity helps out in bringing innovations.
It sounds on easy on paper, but it is not spontaneous and is
fraught with obstacles. Traditional roles and structures create natural
barriers to spreading information and lessons learnt. Some changes to
companys social and organisational structure will be required to
overcome them.
3) Symbiotic CoordinationDeveloping an understanding of likely future purchasing and
consumer behaviour by implementing relevant information throughout
the organisation.

The task grows even harder-from analyzing past customer data to

predicting future customer behaviour.
This requires a two way flow of information among the analysts and
multiple business units.
They collaboratively participate in four activities:

Creating models to predict customer behaviour.

Experimenting with various interventions designed to alter customer

behaviour

Measuring the results of these interventions and

Using feedback from the front line to improve the models and
subsequent campaigns.
4) Integral CoordinationThis revolves around enabling real time responses to customer
needs that are made possible by coordinating all information among
employees and the entire organisation at corporate level.
In this stage, the organisation can use customer information in daily
interactions with customers, aided by employees who do more than pay
lip service to customer service.