Name: Unsa Soomro

Roll num: 20S-MSHRM-BS-01

Subject: Conflict management
Assigned by: Respected Sir Dr. Shah Mohammad
Kamran
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Question: 1
Answer:
Causes of conflict with clients and vendors:
Conflict is found everywhere between employees and employer, teacher and
students, husband and wife, regulation and regulatory and many more. We
usually cannot avoid conflict. conflict with client and vendor occurs, when
agency and client have disagreement due to misunderstandings, communication
problem, rude behavior or any sort of changes that cause disturbance for
client/vendor.it is crucial to adopt best practices to manage client and vendor
conflict to reduce hurdles in projects and goals of your company. Some causes
of conflict with vendors and clients are,
1. Miscommunication:
Miscommunication is one of the major reasons of conflict that causes trouble
for vendors and clients. FOR EXAMPLE: Suhana wants to redesign her
clothing store website to make it more attractive. She starts working with
agency to work for her.it was misunderstood by Suhana that project fees
encompass sourcing of images also, but team of agency has counterpart
believe. Diana becomes so disappointed and frustrated that she decided to
give less payment as a result.
2.Discrimination: Discrimination might be a cause of conflict between
vendors and clients.
FOX EXAMPLE: At shopping store, vendor may give more time to female
client then male client despite of fact that the male was in urgent need of
supplies, it also resulted into a conflicting situation.
 3. Not deliver goods that were promised: it is a basic rule to deal with
clients that deliver what you promise, if this rule is broken it may put you in
a great trouble. Disgruntled clients may file suit against you if the products
are of high value.
4.Withouut taking consideration of religious aspects:
The supplier and client may be of different perspective regarding religion
and culture. It imposes a serious impact when vendor use the material in a
product that is against the religion of client
FOR EXAMPLE: McDonald is very famous all over the world for
delicious fast food, but they made a big religious mistake due to poor
marketing research. McDonald opens the store in India and started selling
burgers of beef, cow is a sacred animal for Hindus, which hurts them a lot
and they file suit against them, as a result it puts a heavy cost for McDonald
as it hurts the religious feelings of customers.
5. Motive of vendor: Client wants vendors to be committed to best
interest of them and to Provide them best services. Clients may believe that
vendors primary motive is to maximize their commissions and profits this
conception may lead to conflict:
6. Contract failure: contract is always abiding by law, if terms and
condition of contact are not fulfilled then it causes lawsuits.
7. Tolerance: sometimes vendors provide good services to the clients and
give quality product or service, but some clients tolerance level is so low that
with minor mistake of vendor they create a big issue and even try to destroy
the vendors’ image.
8. Ineffective Management of client’s expectations by vendors:
sometimes vendor fail to provide the services that client is expecting. Clients
expectations should be preferred at the first to minimize conflict and
disgruntled clients.

Conflict resolutions with clients and vendors:

Conflict resolution is art of managing and addressing the differences and
finding common grounds to work peacefully. Few tricks are given below:
A house divided will not stand:
It is a great saying that satisfied employees result into satisfied customers. We
must satisfy and put them both on one boat to prevent conflicts. If employees
are not satisfied, their performance level will be low so the result will be poor
customer services which in turn results into customer dissatisfaction.

Negotiation:
Mediation is one the great way to be adopted for conflict resolution with clients
and vendors, in addition the heavy costs on litigation.one mediator should be
appointed, who listens to the matters of both parties and assist them in reaching
a point, where conflict may be mitigated successfully. Mediation may solve
55% to 90% of conflicts. More suitable for b2b kind of business, where you
must maintain healthy relationships and must come up with some common
ground.
Example of American express, they made the mediators as attorneys to solve
the issues with clients and vendors.
Arbitration: if mediations fails to solve conflicts then organizations choose to
use arbitration, it a best choice when both parties are abided with the decisions.
It is a perfect option when any party made a breach of a contract, do not agree
with terms of agreement, or fails to do things that party were bound for. Rules
of arbitration of international chamber of commerce are foundation when issues
are to be resolved by arbitration.
Excessive technology should be avoided for getting feedback from clients
and vendors like robocalls through which appointments of patients are made or
surveys, social blogs as it may be costly. Its easy to use but unfortunately lack
emotions, empathy which can be done by listening to customers complaints face
to face. Active listening and soft tune solve 50% of the conflicts effectively.
Culture understanding: it is crucial to resolve disputes of any kind and for
its prevention. When you are working with vendors, they might have different
cultural values, try to understand them for smooth flow of operations/dealings
among parties. For instance, Canada and America both derive from western
Europe but have different culture, values, and traditions. Canada believes in
building strong bonding with customers and believe in fairness than US.in
culture, communication styles also matters fir example, japan prefer indirect
communication style to communicate any mishap or counteraction to client
through certain intermediaries.
Planning and monitoring customer feedback: when we talk about
conflict prevention and resolution with clients, vendors and customers effective
planning and proper monitoring of feedback is essential. Make sure to solve the
issues highlighted in feedback and try to avoid its recurrence.

Example of Elise main street bakery: A very good example to

effectively using feedback system is of Elise street. it a well-known bakery with
good organic food. Its head Elise wonder to increase customers while
maintaining the existing customers. After planning and brainstorming ideas,
marketing team with Elise decided to have focus discussion with clients and
non-customers. The clients and noncustomers must describe Elise bakery in
three words and why they do not prefer to shop on Elise bakery. Survey was
filled by customers and respondents in return for discount. After getting best
and least points they put hard efforts to fulfil those requirements and train
employees to give maximum outcome. As a result of these efforts, old clients
become satisfied and new customers also make their way to Elise street bakery.
Active listening: Active listening and soft tune solve 50% of the conflicts
effectively. Listening has power to know others point of views and come up
with best solutions.

Techniques for handling client conflict:

There are many effective ways to manage conflict with client. few of them I
will address here. First to be mindful about Language you use. words have
power to make conflict more aggressive or mitigated. focus on facts not on
personal views should be avoided as a result your conflict resolution will be
objective based on 5 W and 1 how. Try to approach the problem with empathy.
Try to understand why clients faced difficulty and what causes him to be so
frustrated. Provide some incentives to make your customer happy and satisfied.
If you have made any mistake, try to admit, and compensate that client.

Resolving conflict with vendor: vendor is person who is offering

products or services for sale. Conflict with client is unavoidable. You must
manage it to maintain relationship and avoid lawsuit. First example of resolving
conflict is with vendor is developing agreement on desired performance. Create
incentives plans or impose penalties to improve the performance of customers.
Understating the problem of vendor also results into problem solving.
Listen to issues and then try to paraphrase certain terms and conditions like
extending deadlines, give chance to vendors to provide quality products again.
Demand for low package due to defective items.
For example: if you hire a vendor for accounting, but HR complains that
there are many mistakes in accounts then best way is to first give vendor a
chance to speak to understand problem and then taking any action.
After understanding issues of vendor negotiation is a right choice. You may do
negotiations by refunding amount, cancelling project, continue project with few
amendments or imposing penalties.
Finally, you can adopt a conflicting style that best suites the situation. No matter
you have conflict with client or vendor, any of the conflicting style should be
adopted like avoiding, accommodating, compromising, competing, and
collaborating.
Question no: 2
Answer:
Before discussing conflict between regulator and regulated its is necessary to
understand concept of both terms to elaborate the conflicts which occur between
these parties.

Regulators:
A regulator is an organization or person appointment by
government/organizations to ensure that all financial activities and operations
are made in fair and transparent way to lessen corruptions and wrongs doings.
These are agencies of state and federal government to which various duties and
work is assignment. Person or organization act as regulator has power to work
independently but all this work to achieve common goals and objectives of
being fair and make society corruption free (who follow laws and regulations to
do any action). Furthermore, to look at the injustice or any dishonest behavior
with customers, clients and public.
For example: federal board of revenue is a regulatory body those purpose is
to collect the taxes on time with a purpose to generate revenue for the
development of countries a basic source of monetary policies.
Other examples of regulatory bodies/persons:
Election commission of Pakistan, NAB, PPRA, auditor general of Pakistan,
state bank of Pakistan, higher education commission, Pakistan standards and
quality control authority ETC.

Regulated:
Any corporation, individual, financial institutions, trusts who are subject to
regulatory authorities either work under regulatory bodies or is bound to those
rules made by regulator is called regulated. If the related person cannot, follow
the rules of relator then lawsuits may occur and restrict action may takes place
against that person.
Example of regulated: EEOC, Employees in regulatory organization, persons
found to regulatory rules and must give answers to regular for their doings.
Auditors in auditor general, lawyers etc.
Conflict between regulators and regulatory:
Conflict between regulator and regulatory is common. Regulated persons go
against the regulations set by regulatory bodies by cheating fraud,
embezzlement etc. Even regulators itself becomes so self-centered they even
sacrifice the countries interest over their own. This world is highly politicized
and dirty politics have destroyed the world economy. So, it is crucial to manage
the conflict effectively.

General example:
The conflict between Public procurement regulatory authority and the person
involve in procurement of goods for procuring agency. PPRA is a government
authority that makes sure that transparency is maintain while procuring goods
for any government organizations and procuring agency is any body who is
purchasing goods. Suppose civil hospital needs ventilators as the COVID
patient’s severity increasing day by day, but they do not follow the rules of
PPRA then it will result into highly conflicting situation. Such kind of conflicts
usually solve through court hearings and proves.

Conflict between HEC and universities: HEC members are

regulators while universities are regulated it is one of the best examples of
conflict between regulator and regulated. Due to COVID-19 spread it is notified
to universities to close university and only arrange physical classes. If still any
university do not follow the rules and open university it will again create a
conflict which may be solved by negotiations, litigation etc.
Thousand cases are running in court, environment sustainability is again a big
problem, organization whose products are not environment friendship are put in
courts by environmental enforcement authorities. Most companies are reasons
of pollution that causes damage to live of people. It is very common conflicting
matter.

International example: ILO v/s China

ILO is an international organization who talks about rights of labor. It has 187
members. It is regulator of general rules and principles ensuring rights of labor.
China is regulatory in this case as it is member of ILO. China is imposing
forced labor in Uyghurs (a Muslim state in china), china believe that these are
terrorists and tortured very badly. Now it is a conflict with ILO heads as one of
the founding principles of ILO is abolition of forced labor. This conflict may
result into punishment or expelled china from membership or any other
interventions.
Such kinds of conflict are more complicated than general one. Dispute system
design is a best way to prevent and address conflicts that occur internally as
well as externally. Regulated and regulators both must take action to minimize
conflict or resolve it effectively to run whole mechanism of country, city, area,
or organization smoothly

Question no: 3
Answer:
Employee turnover refers to rate at which employees leave the organization and
will need to be replaced to run any organization smoothly. Turnover can be
voluntarily or involuntarily. If employees leave voluntarily and persistently then
it may be a huge strain for organization and resulted into heavy cost for
organization. If company’s turnover intensifies day by day, its major reason is
that employees are not happy with a job and cannot stay on any designation for
a longer tenure.
Causes of turnover:
These are many reasons due to which turnover increases unresolved conflict is
one of the basic reasons. Organizations may uses avoiding style of conflict and
instead of understanding root cause of problem, they prefer to ignore it or solve
it on temporary basis. This is a big problem for organization as unsatisfied
employee may become frustrated, absent, take low interest in work, become
insincere with organization, with all these factors an alarming situation of
turnover will be High turnover resulted into low productivity of an organization.
Stress due to poor management practices, lack of control and sense of
belonginess that most of the employee felt is one of the parameters of turnover.
Bad boss is also a big issue, if boss is rude and always do insult of employees a
bad image will be created, whose outcome will be bad working environment.
Good employees never leave organizations they leave their rude managers!
Communication gap also create rigid environment where employees cannot
speak for their rights and when voices are not heard, employees start finding
alternatives to work with comfortable environment to speak for their rights.
Lack of trust, incentives, attention, and purpose need to be addressed to mitigate
turnover. furthermore, employees want their work to be challenging and
exciting. Dull and boring work results into lack of interest, which causes
conflict creating situations and turnover. In fact, many organizations do not
provide opportunities to employees to grow their career. Lack of advancement
is also a big reason.in today’s modern scenario organization
When targets are illogical and its almost impossible to do that task within that
deadline. In thus situation employee feel like they are mere machines. This
impression and excessive load cannot make employees happy, instead they
become so angry.

High turnover results into low performance of an

Organization Due to unresolved conflict: When conflicts are
unresolved and issues are not addressed, it gives an outcome of absenteeism,
low morale, and turnover. When turnover rate is high obviously the overall
productivity and performance of employees will be affected and as performance
is affected the customers will not get that desire features in your products and
services. Customer dissatisfaction is a sign of low profits for an organization. It
is a whole chain which indicates that when turnover rate goes up, internal
employees are not satisfied, and their conflicts are not resolved timely it would
ultimately cause loss of customers and poor sales.
Organization must act when turnover rate raises because it affects the financial
stability of organization. Proper planning and steps should be taken to mitigate
turnover for this purpose identification of causes of turnover is necessary. when
employees leave, the workload is increase due to which productivity is
decreased. Temporary other employees must do work of former employee due
to which the quality may be sacrificed.
Due to regular turnover, organization must pay for higher expenses like
litigations, overtime to workers, high training cost and many more. With huge
amount of budget invested on these taxes, organizations fail to improve product
and services. This causes disgruntled customers as customers wants the
products to be costly, reliable, with high quality and innovative features. When
you lack these things, slowly and gradually old customers will be lost and even
you cannot be able to make new customers for enhancing your approach.
Preventing high turnover to maintain good
performance of an organization:
Organizations should adopt some preventive measures to avoid turnover so that
performance should not be affected. Conflict management plays a major role in
it. Try to understand what employees wants like if they want incentives and
recognition for their good performance then try to come up with monthly bonus
for employees. If the advance opportunities to employees. Don’t try to ignore
such issues that may become huge like a mountain if not solved properly.
Provide job security to employees, so that they become more sincere with
organization and work hard for achieving organization goals. Good working
conditions should also be provided to them these things will mitigate turnover
and overall sales and performance of organization will be maintained. Motorola
found 75% of reduction in their turnover by effectively managing the conflict
Below is the example of successfully dealing with turnover:

Example of Ryanair airlines:

It is a famous European airline, which uses the strategy of low-cost airlines to
attract customers but by 2010 Ryanair faces high turnover rate and poor
customer service. Its head observe this thing and call a meeting to plan a survey
to identify the major reasons of turnover pf employees as it was slowly and
gradually declining the profit rates of an organization. After planning and doing
survey they identified that stress, autocratic control approach, week culture and
lack of motivational factors results into turnover.
They tried every action to prevent these problems by getting ideas from
employees and customers. And finally, with successful strategies their
performance level increases and now the organization is achieving stable profit
by good quality employees.
Elise at main street bakery:
Another example is of main street bakery, there turnover rate was very high,
and the reason was rigid structure, workload and employees were not allowed to
have emergency leaves. All these issues were solving successfully by making
system flexible and bridging communication
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