THE BUDGETING EXERCISE: A CASE IN CONFLICT MANAGEMENT

SITUATION ANALYSIS
Mr. Sudhir Paramanik has being transferred to head the Mumbai branch of Calcutta Bearings, a
couple of months back from Calcutta. He initiated the process of drawing up of the budget for
Mumbai branch in advance to avoid overestimation as well as underestimation of budget in the
last moment hassle. For the task he appointed two best fitted officer – Mr. Patwardhan, who has
25 years of work experience and Mr. Pandey who has being with Calcutta bearings for 3 years but
he is well known for his efficient responsibility handling and decision making. Mr. Pandey wants
to increase the expenditure on Maintenance and Development Wok by 50 % while Mr. Patwardhan
wants to increase it by just 15%. Their Indifference in Expenditure for Maintenance and
Development Work has resulted in delay for Budget Proposition.
It seems that both Mr. Patwardhan and Mr. Pandey has Task Conflict with one another as they
both are working for the same objective and yet they are not able to arrive to an agreeable Budget
Proposition. They also have Relationship Conflict as they don’t communicate with each other. It
appears that the friction and interpersonal hostilities inherent in relationship conflicts increase
the personality clashes and decreases mutual understanding.

PROBLEM STATEMENT
Mr. Patwardhan and Mr. Pandey has conflicts among themselves thus they are not able to agree
on a consensus Budget Proposition of Calcutta Bearings.

OBJECTIVE
1. To Resolve the conflict between Mr. Patwardhan And Mr. Pandey
2. To mutually agree on a Budget Proposition

ALTERNATIVE AND ACTION PLAN

Mr. Sudhir Should implement Conflict Managements Techniques -First Mr. Sudhir should call
for joint Face to Face meeting with both Mr. Patwardhan and with Mr. Pandey. He should address
it by creating a share goal that cannot be attained without the corporation of the other. He should
use behavioral change techniques to alter each other attitudes. Although a degree of Functional
Conflict is good as it will increase the problem-solving skills and will bring new solutions in the
table. He should try to intrigue them by giving a win-win situation for them. He should ask them
to find BATNA – Best alternatives to a negotiated agreement. Sometimes Moods and Emotions
also play a role in solving a conflict thus he should appraise them for their good work and he sees
that they can do much better if they work together.

Submitted By: Prashant kumar

(P40193)