Professional Documents
Culture Documents
ORGANIZATIONAL BEHAVIOR
HRES7002
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● Dr. Amita Joshi, CEO of Samuel Drugs Limited, seems to have a “felt1 conflict” with
Rajesh Mishra, CEO of Eastern Pharmaceuticals Limited. Soon after learning that
Samuel Drugs had lost the bid to EPL on a major tender of supplying drugs to Ministry of
Health of the Indian Government, her transition from a perceived conflict to felt conflict
happened swiftly as she was quick to realize that Rajesh Mishra, also the head of
marketing at Samuel Drugs, was at the epicenter of the issue.
● Although, the Houston Group, the parent company of both Samuel Drugs Ltd & EPL,
might do well overall in short run, the breach of trust displayed by Rajesh Mishra left Dr.
Joshi surprised, shell shocked, betrayed and disgusted as to how a person in whom she
had put a lot of trust and faith could turn into an opportunist and make unethical business
decisions; which, in the long run, might well create a void between anticipated & future
performance of her company.
● Dr. Joshi & Rajesh Mishra clearly seem to be at stage II of the conflict process2
(cognition & personalization) where Dr. Joshi appears to be emotionally involved in the
conflict having displayed signs of frustration and tenseness. The root causes of this
dyadic3 conflict between the two chief executing officers can be traced to the antecedent4
conditions categorized into factors of communication, structure and personal variables
which produced the openings for the conflict to arise in the first place.
● Lack of communication, conflict of interest for Rajesh Mishra due to the organizational
structure of the Houston Group, and the clear differences in personal characteristics &
personality traits of both CEOs have lead to the unfortunate situation of conflict, which
Dr. Joshi needs to negotiate by appropriately deciding on her intentions5 for a favorable
outcome6 with respect to the Houston Group, Samuel Drugs & EPL, in the long run.
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Structure
Both individuals have the desire to win the government tender for supplying drugs which could
boost the operational profits of their respective companies. Since Rajesh Mishra used his
marketing resources from Samuel Drugs for strengthening EPL’s chances of winning the bid
without informing Dr. Joshi, the conflict of interest can be said to have played a large role in the
conflict process as Rajesh Mishra was actively serving two positions in two companies.
Personal Variables
Amita Joshi
Attributes/Traits Context
Protester / Rebellious Non-Conformist : She habitually defied irrational social norms
Structured / Systematic She assessed shortcomings of culture in the organization and addressed them
constructively
Appreciative Upon reviving an old plant, she expressed gratitude and gave full credit to the
senior managers
Ambitious / Venturesome Passed challenging IAS examination, gave up security & power of a senior IAS
officer to accept the challenge of reviving Samuel Drugs
Intellectual / Intelligent Took little time to guage that immediate problems of the organization were huge
employee cost bill & poor marketing
Gullible Too much faith or belief in sub-ordinates & peers, gave full autonomy to Rajesh
Mishra
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Rajesh Mishra
Attributes/Traits Context
Protester / Rebellious At work, he was more of a maverick than a collaborator
Extrovert Charismatic, convinced everyone of his capability & passion for job
Rational / Logical Regarded as a highly rational person within organization
Opportunist Took advantage of being simultaneously heads of marketing at Samuel Drugs &
CEO at EPL to promote his own interests
After comparing the traits of both persons, it can be seen that some characteristics are common
(Protester / Rebellious, Intelligent) and some opposites (Unprejudiced - Prejudiced, Ethical -
Opportunist). Since both parties exhibit rebellious nature, they seem to demand a high degree of
control over others, which could be one of the explanations for appearance of conflict.
Amita Joshi was very ethical in nature. Considering that she found about Rajesh Mishra using
Samuel Drugs company specific contacts for his personal benefits in EPL, it was likely to cause
conflict between her and Rajesh Mishra as her values were being opposed.
Rajesh Mishra displays high personality traits of being disagreeable as a team player due to his
tendency to indulge in hyperbole, although he makes up for it by being an excellent performer in
negotiating marketing contracts through his charismatic nature.
Communication
There was practically no communication between various functional heads of Samuel Drugs
Limited. Dr. Joshi usually delegated responsibilities to various executives and managers &
sought feedbacks from everyone via emails. It appeared that there was a lack of formal
communication with Rajesh Mishra, the head of marketing at Samuel Drugs, which could partly
be attributed to his affiliative style of self management. Too little flow of information resulted in
a barrier to communication which gave way for the antecedent conditions for conflict.
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Superordinate9 goals would be such that both Samuel Drugs & EPL would be to use each other's
strengths for negating own weaknesses. Samuel Drugs is production centric whereas EPL is
distribution centric. Dr. Joshi could avoid a face to face confrontation with Rajesh Mishra while
requesting him to use Samuel Drugs high quantity producing plants to supply for EPL’s large
order in the tender which could easily be distributed via its established channels in remote areas.
Overall, it would be good for the Samuel Drugs brand and also for the EPL.
Pros Cons
Avoidance of direct confrontation with Mishra, who is Dr. Joshi’s control & power would take a hit and it
now highly respected within organization would place a poor precedent in the company
Samuel Drugs could still use Mishra as it's Head of Mishra could repeat his actions in future unless Dr.
Marketing and avail his competence Joshi amends his contract
Alternative 2 : Competing10 - Authoritative Command11, Altering the Structural Variable12(Job Redesign)
Dr. Joshi could have a face to face meeting with Mishra for the purpose of clarifying the present
problem and resolving it through proposing certain changes in organizational structure and his
contract. Mishra’s contract could be amended such that he quits as EPL’s CEO and Samuel
Drugs retains him as Head of Marketing by offering him a significantly higher salary than
competitors in the market. Currently, he draws a very less salary from Samuel Drugs.
Pros Cons
Dr. Joshi’s authority would be fortified and a good Might dent parent company's image in the public as
precedent would be set in the company Mishra’s actions would get disclosed
Samuel Drugs retains Mishra’s competence Parent Company would quickly need to find a suitable
replacement for EPL’s CEO
Similar situation in future would be avoided Samuel Drugs would not be able to match anticipated
and real expectations in future
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Alternative 3 : Compromise13 - Altering Human14 & Structural Variables (Communication), Shared Aims
Dr. Joshi could try to place aside her emotions and rather concentrate on the importance of
having Mishra’s services in both the companies. She could establish new communication norms
between various functional heads within Samuel Drugs such that nothing is left unnoticed. Upon
using this new practice, Mishra’s behavior could have a change and he might not repeat his
actions in future. Samuel Drugs could still use Mishra as it's Head of Marketing while he serves
as CEO of EPL. Samuel Drugs could reduce its void between future anticipated & real
performance by complementing EPL’s distribution channels with its better production capacity.
Pros Cons
Samuel Drugs could retain Mishra as head of Mishra could demand a higher salary
Marketing
Chances of Mishra using Samuel Drugs contacts for Mishra could leave Samuel Drugs in future, although
EPL in future shrink Samuel Drugs would have time to find a suitable
replacement
Samuel Drugs would gain from margins it would get It would still set a bad precedent for the company as
from supplying drugs to EPL & hence reduce its Mishra would escape his unethical actions
anticipated and real expectations
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References
● Organizational Behavior - 16ed : Robbins, Judge, Vohra
1. Felt Conflict : Emotional involvement in a conflict that creates anxiety, tenseness,
frustration or hostility
2. Conflict Process : A process that has five stages : potential opposition or incompatibility,
cognition and personalization, intentions, behavior and outcomes
3. Dyadic Conflict : Conflict that happens between two people
4. Antecedent Conditions :Causes or Sources that create opportunities for the conflict to
arise, categorized into factors of communication, structure and personal variables
5. Intentions : Decisions to act in a given way
6. Outcome : Functional or Dysfunctional consequences of the action-reaction interplay
between the conflicting parties
7. Collaborating : A situation in which the parties to a conflict each desire to satisfy fully
the concerns of all parties
8. Smoothing : Playing down differences while emphasizing common interests between the
conflicting parties
9. Superordinate Goals : Creating a shared goal that cannot be attained without the
cooperation of each of the conflicting parties
10. Competing : A desire to satisfy one's interests regardless of the impact on the other party
to the conflict
11. Authoritative Command : Management uses its formal authority to resolve the conflict
and then communicates its desires to the parties involved
12. Altering the structural variable : Changing the formal organization structure and the
interaction patterns of conflicting parties through job redesign, transfers, creation of
coordinating positions, and the like
13. Compromise : A situation in which each party to a conflict is willing to give up
something
14. Altering human variable : Using behavioral change techniques such as human relations
training to alter attitudes and behaviors that cause conflict
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