CONFLICT MANAGEMENT AND NEGOTIATION

SKILLS
(GE 512)

INDIVIDUAL ASSIGNMNET 1

CONFLICT SITUATION IN ORGANIZATION

Submitted to – Prof. Neeta Sinha

Submitted on – 12th April, 2021

Abhinav Kedia
201401
MBA - FT: 2020-2022
Section - B
Situation of Conflict in an Organization

Name of Person – Prajesh Shah

Age – 53 years

Designation – Managing Director

Organisation – P D Shah and Co.

Reason of Conflict:

P D Shah and Co. is a Mumbai based stock-broking firm which is situated near Dalal Street in
South Bombay. The area forms the financial district of the city. Therefore, it is natural for
multiple such firms plus trade unions to exist. Approximately 12 years ago, a few people from
within the firm demanded an increase in pay and betterment of the working conditions by
shifting the office in the Stock Exchange building. While an increase in the pay was still a
reasonable demand, the shifting of the office was not. It was not feasible for the company to
shift to the stock exchange building since the office spaces prices were high and so was the
rent. Mr. Shah communicated the same but few of the employees were not ready to listen. Thus,
they went on a strike. In a wave of uprising, the trade unions shut down all the stock broking
firms in Mumbai for one day which became a huge issue and the investors as well as the stock
exchange faced losses.

Resolution of the Conflict:

Mr. Shah, after much deliberation, decided to revoke his membership of the Bombay Stock
Exchange. He shut down the firm and relieved all the staff, including the ones who did not
strike. Once things settled down, he restarted the stock broking business after three months and
reappointed the six people he trusted. He even restructured the organisation and was able to
afford higher salaries for the staff members.

1
5 Dimensions of Conflict‐Handling

• Competing (assertive and uncooperative) ‐ A desire to satisfy one’s interests, regardless of

the impact on the other party to the conflict.

• Collaborating (assertive and cooperative) ‐ A situation in which the parties to a conflict

each desire to satisfy fully the concerns of all parties.

• Avoiding (unassertive and uncooperative) ‐ The desire to withdraw from or suppress a

conflict.

• Accommodating (unassertive and cooperative) - The willingness of one party in a conflict

to place the opponent’s interests above his or her own.

• Compromising (moderate assertive and moderate cooperative) ‐ A situation in which each

party to a conflict is willing to give up something.

In reference to the above case the conflict handling method adopted by Mr. Shah was
Competing as he had decided to shut down his business and had laid off all the employee. He
also had adopted Collaborating method for the six employees whom he had reappointed when
he restarted the stock broking business.