Tag: Conflict & Negotiation BMS Notes

When individuals find it difficult to adjust with each other, the best way is to sit together and discuss among themselves and adopt the middle path. Instead of fighting with each other, it is better to discuss things and come to an alternative benefiting all. Negotiation takes into account the personal interests of all and helps individual to come to a common conclusion.

When the targets of a team are set, all the team members are invited to discuss with their superiors. If the boss assigns a target of 20 sales a month and the team members find it unachievable, they should negotiate with their boss to slightly lower their targets, rather than saying a yes to it.

When you want to go for a party, you probably negotiate with your parents that if they allow you to go for the same, you will study the whole weekend. The process of negotiation is designed to benefit all but sometimes it is little difficult to reach to a conclusion and satisfy all.

Blame Game: Playing the blame game makes the negotiation situation difficult. In any conflict or negotiation, each party contributes, for better or worse. If you blame the other person for the difficulty, it will result in defiance. If you take responsibility for the problem, you will create a spirit of cooperation.

Wrong focus: Negotiators have a tendency to focus on the individuals rather than the issues involved. This is particularly true with people we dislike. There is a tendency to get off track by focusing on how difficult the person is. Once this happens, effective negotiation is impossible. It is important to stick to the real issues and put aside our personal feelings about the individual.

Lack of empathy: Since we are trying to find a solution that is acceptable to both parties, we need to understand the other person’s needs, and wants with respect to the issue of negotiation. If we do not know what the person needs or wants, we will be unable to negotiate properly. Often, when we take the time to find out about the other person, we discover that there is no significant disagreement.

Over-exhibition of emotions: Strong emotions make us blind towards reason during negotiation. Though it is normal to become emotional during negotiation but as we get more emotional, we are less able to channel our negotiating behavior in constructive ways. Therefore, it is important to maintain control.

Negative outlook towards the negotiation process: Your attitude during the negotiation-hostile or cooperative-decides the tone for the negotiation. Negotiation need not be confrontational. In fact, effective negotiation is characterized by the parties working together to find a solution, rather than each party trying to defeat the other party.

There are few challenges to negotiation and one must try his level best to overcome them.

• The biggest challenge to negotiation is when individuals are not ready to understand the second party at all. There are individuals who only think about their interests and tend to ignore the interest and needs of the other.
• Try to find out the expectations of the other party as well. For business negotiation, you will definitely be appreciated if you save your organization’s money but remember the other party is also doing business. Quote something which will save your company’s money as well as earn some profits for the other party as well.
• Lack of time is also a major challenge to effective negotiation. One should never be in a hurry. You need time to convince others. Never be in a rush to purchase things or close a deal. Analyze things carefully and then only come to conclusions.
• Going unprepared for a negotiation is unacceptable. Don’t underestimate the second party. One should do his home work carefully. Check out even the smallest details before going for a negotiation. Don’t think that the other person is not as smart as you, he can ask you anything and remember even he will try his level best to convince you. You need to have valid answers for his questions.
• Lack of patience also leads to a bad negotiation. Every individual has the right to express his views and one should not interfere in his speech. You might not agree to him but at least listen to him first. Sit with the second party and make him realize how the deal would benefit you as well as him. If possible take a note pad and a pen with you to explain things in a better way. Carry all the necessary documents which you might require at the time of negotiation.
• Criticism, sarcasm, derogatory remarks are the biggest threats to an effective negotiation. Never ever say anything which might hurt others. Remember everyone is here to do business and make profits, so be logical and justified. Don’t get too involved and over emotional. One should be a little diplomatic and intelligent for an effective negotiation.
• Avoid last minute changes as it result in confusions and misunderstandings. The two parties must be very clear on what they expect from each other, and must stick to it. Don’t change statements every now and then. Once a conclusion is reached or a deal is cracked, it’s always better to sign an agreement in presence of both the parties.
• Being too rigid is one of the biggest challenges to an effective negotiation. Be a little flexible. Compromise to your best extent possible and don’t crib always. One should adopt a positive attitude and try his level best to adjust with each other and find out a solution which will satisfy all. Only price is not important, other factors like quality, brand name, durability must also be taken into consideration. One CD player might cost you $5 but another might cost you $4, a little cheaper than the first one, but it is quite possible that the first one is far superior in quality than the second one. Be a little sensible and understand things. If you have purchased something for $6, would you sell it to someone for $3. Obviously no, the same goes with others as well.
• Stay alert while you are negotiating. Don’t accept any terms and conditions without carefully studying them. You might create problems for yourself later. Keep your ears and eyes open while negotiating.
• Lack of confidence is again one of the major threats to negotiation. Don’t forget to make an eye contact with the person sitting on the other side of the table. It’s important to be serious but that does not mean you will not even greet the other person. Be straightforward and crisp in your communication. Take care of your dressing and appearance as well.

Communication

An effective communication is directly proportional to an effective negotiation. The better the communication is the better the negotiation would be. Discussion does not mean fighting and shouting, instead it is simply the exchange of one’s ideas, thoughts and opinions with each other. One needs to have excellent communication skills for a healthy and an effective discussion. Communication is an art and one should master it to excel in all kinds of negotiation. The other person will never come to know about your thoughts and ideas unless and until you share it with them. One can’t see your grey matter. Lot depends on how you speak.

One should very sensibly convert his thoughts into a speech by carefully selecting relevant words. Be careful about your words. One should never use derogatory sentences or fowl words in his speech. Understand the power of speech. The way you present your thought matters a lot. Don’t speak just for the sake of it. Haphazard thoughts and abstract ideas only lead to confusions. One must speak clearly what he expects from the other person. Don’t eat your words and try to confuse others. Your thoughts and ideas must be expressed clearly for others to understand well. Be crisp and precise in your speech.

Effective communication is important in salary negotiations as well. Express your salary expectations clearly in front of the recruiter. If you want your salary to be more than what he has quoted, mention it very clearly but politely. Try your level best to convince the recruiter why you need salary hike and probably how will you justify it once you join the organization. There is nothing to be afraid of; even the organization needs talented people like you. Learn to be a bit tactful. Your style, your accent, your pronunciations are also important. Do lay emphasis on words that you feel are important. If you are not satisfied with the offer, it’s better to decline it but in a very polite way. Remember we all belong to good families and must behave like educated and cultured people.

An effective communication is of prime importance in business deals also. The terms and conditions must be mentioned clearly for better transparency and don’t try to hide anything from the second party. It’s always better to depend on written modes of communication like emails, letters, documents or agreements for better reliability. Use corporate terminologies, professional jargons and never use irrelevant statements in your speech. It is considered highly unprofessional.

One should also be very careful with his pitch and tone. Always remember battles can be won just by being decent and polite. Don’t be rude and harsh on others. Speak slowly and convincingly in a tone audible to one and all. Do not speak either too fast or too slow. The other person must understand your speech. Never be loud or shout on anyone. It’s unethical to speak ill or insult anyone just for a deal. Relationships are more important and must be valued.

Non verbal communication also plays an important role in an effective negotiation. Our facial expressions hand movements, posture matter a lot and must never be ignored.

Personality

Be Patient. It has been observed that impatient individuals are poor negotiators. Don’t think that if you want that the price of a particular item should be $4, the shopkeeper will agree to it immediately and gladly give it to you. You need to convince him and that requires patience. You can’t lose your temper and shout on him.

During negotiations an individual must try to be himself. One should not fake things or pretend to be good. If you are not satisfied with the deal, do not pretend that you are happy. It’s better to raise a concern then and there, rather than crib later. Be normal and relax, things will automatically fall into place.

It’s important to be sincere rather than just being serious. Sincerity is one of the most important personality traits required in negotiation. One has to be sincere for an effective negotiation. Don’t take things casually. Go well prepared for your negotiation. For a business deal, try to study everything related to the deal beforehand. The agenda of the negotiation must be very clear to you. Carry all the related documents which you might require at the time of negotiation. Don’t go just for the sake of it.

Be honest. Don’t fake things. During negotiations, honesty plays an important role. One should never manipulate his salary to get a hike in the next organization. Don’t speak unnecessary lies just for some money. The fear to get caught would always be there and somehow it would reflect on your face as well. Don’t worry; you will definitely get what you deserve.

If you know the laptop costs you xyz amount, don’t go and lie to the shopkeeper that it is much cheaper in the next shop. He is not a fool doing business. Remember even he keeps a check on the price what his fellow shopkeeper is offering. It’s better if you ask for some discounts or probably some additional accessories rather than reducing the price which you know is little difficult for the shopkeeper.

One should go smartly dressed for a negotiation. Our dressing plays an important role in enhancing our personality. A shabbily dressed person will find it very difficult to convince the other person.

Remember the first impression is the last impression and one has to be very careful about it.

Be flexible and learn to compromise. It’s okay to give priority to one’s personal interests but one should not be selfish. If you are the first one to accept something, you will not become unimportant or lose anything, instead the other person would look up to you and both of you will gain whatever you want.

One has to trust the second party for a better negotiation. Don’t always find faults in others. Not all people are bad; there are people who are really good and helpful. One should not always think that the other person would do harm to him. The second party is there just to do business; he is absolutely not your enemy. Don’t just come to the point, start the conversation with a warm smile. If he is wearing a nice shirt, do take the initiative to give him a compliment. Treat him as a friend. One should never be arrogant. He is also representing his company just like you. Order coffee and some snacks. It will help in breaking the ice and strengthening the bond between the two parties. Do remember that one should not be too casual and over friendly.

Be professional in your approach. Once your deal is closed, do sign a contract in presence of both the parties. The minutes of the meeting must be circulated among all the participants for better clarity. Don’t forget to collect your bills from the shopkeeper after you are done with your shopping. Don’t only rely on verbal communication.

Enhance your listening skills for a better negotiation. Listen to the other party as well. He might come up with something interesting and beneficial to you as well. Don’t think that the other person doesn’t know anything; even he has come well prepared. One should never underestimate the second party. If you go for a shopping, don’t ignore the shop keeper, listen to him and then only decide what to purchase and what not to.

Be a little tactful and diplomatic. Being diplomatic does not mean being clever. There is a difference between the two. One needs to be intelligent and should know what to speak and what not to speak. Analyze the situation and respond accordingly. Don’t speak something because your boss has asked you to do the same. Apply your brains and react in an appropriate manner. If you feel your statements would sound foolish in the particular situation, it is better not to speak.

Emotions

If one is in a happy mood, everything seems perfect and good to him. Individuals with a positive attitude tend to trust each other better. They take keen interest in the negotiation and actively participate in discussions. They try their level best to come up with a suggestion and contribute effectively in the discussion. They do not unnecessarily find faults in other people and always try to take things in a positive way. A happy and a positive person would always look forward towards a concrete solution which would benefit him as well as the other party involved. Try to be cheerful always. One looks his best when he smiles.

Anger is one of the most negative emotions acting as a hurdle to an effective negotiation. A person loses control on his mind and is not in a position to think constructively in a state of anger. One’s anger must be kept under control for an effective negotiation. Don’t overreact on petty issues. Anger only leads to conflicts and misunderstandings and does not solve any problem. An individual should learn to keep a control on his tongue. Don’t say anything which might hurt the other person. If you are getting angry on someone, it’s always better to think something pleasant; your anger would soon disappear. Take a pause and think will this anger benefit you?

One needs to be friendly with the second party. Learn to trust him but don’t get too involved in friendships. Everything has a limit and same goes with friendship as well. The other person might expect unnecessary favours from your side.

Friendship should be within a limit; otherwise unrealistic expectations arise which are a little difficult to fulfill.

Negotiations must be with a clear and a tension free mind. A mind clouded with tensions can’t concentrate on anything and eventually one loses focus. An individual’s mind is unable to take any decisions and he finds it difficult to develop an interest in the negotiation. We all know that tensions come uninvited, but it would be wise, if you keep the tensions on the back burner for some time when you are involved in negotiation.

One should be calm and composed. Never lose your cool and shout on the second party.Always ensure that you are comfortable with the second party. Don’t take rash decisions and one should not interfere while the other person is speaking. Always analyze the situation well and then only come to any conclusion. One should try and adopt a step by step approach. Don’t expect the result to come out within a second. Take your time to convince the other party but do not drag the conversation too long. It becomes monotonous and one tends to lose interest.

Don’t stress yourself at the time of negotiation. Relax. Whatever has to happen will definitely happen. Taking stress does not help. It’s better to relax and let things happen on their own. No one will kill you, if you are not able to close the deal, there is always another opportunity. Unnecessary stress makes you feel nervous and you tend to lose your confidence as well.

Take interest in the discussion. Don’t develop a laid back attitude. Be active and participate willingly in the discussion. Don’t sit in the negotiation just because your boss has asked you to do the same. It’s better to express your opinion at the time of negotiation rather than cribbing later. If you are not satisfied with anything, express your displeasure. If you feel you are not prepared for the negotiation; it’s better to postpone it, rather than attending it half-heartedly and messing up things.

Avoid being clever. Don’t try to fool the other person. One should not fake things or manipulate the truth. Tampering data would only add to confusions. Be honest in your dealings. Never underestimate anyone. The second party is also aware of what is happening around you and is well prepared just like you.

Learn to compromise sometimes. An individual must not be too rigid. At times it’s good to take the initiative and be the first one to accept things. One should avoid being adamant.

Being positive always helps. Negative emotions only lead to negativity around and trigger conflicts and misunderstandings among individuals. Fighting till date has never benefited anyone; it simply adds on to one’s tensions and nullifies the effect of negotiation.

The process of negotiation starts the moment an employee gets a selection call from an organization. It is essential that the individual responsible for hiring employees negotiates well with the candidate and offers him the best salary. Every organization runs for earning profits and thus the HR Professional must try to make the person join at the lowest possible salary but make sure you do not offer him anything less than his previous salary. He will never be interested to join. Even if he joins, he will not take his work seriously and the results would be zero. Discussions are important. Make him realize that money is not the only criteria for selecting a job. Other things like one’s job responsibilities, job security as well as the brand name should also be considered.

The negotiation style plays an important role in corporate. Do not offer anything exceptionally high as it would again create a problem among the existing employees. Ensure that you are little tactful and do flash your trillion dollar smile. It helps. No way can you annoy the individual.

Negotiation is also important when you are dealing with vendors. An organization needs money to survive and take care of the employees as well. It can’t afford to spend money as it is. A single penny saved will help you and the organization later. The person dealing with the external parties must be a good negotiator else he will end up paying more amount than required. Always sit with the vendor and quote a price little lower than you intend to pay. He will definitely ask you to increase it and probably then you will reach to a figure well within your organization’s budget. Don’t be rude with your vendor but be very confident and convincing. Remember you are not dealing with him just once; you need to maintain a healthy relationship with him for future business as well. Try to convince the vendor at such a rate which would benefit your organization and save money. Quote realistic figures and do take care of the vendor’s profits as well. Try your level best to close the deal.

One should never accept terms and conditions verbally, it’s always better to have something in black and white probably a contract as it is more reliable. The terms and conditions must be discussed on an open forum and should be signed in presence of both the parties so that no body backs out later.

One should also learn to negotiate with one’s superiors. Remember negotiation does not mean you have to shout on others, you need to be polite. Don’t accept responsibilities just because your boss wants it. If you are not comfortable with any role, its better to decline it, rather than accepting something you are not familiar with and losing interest later. After all there are other employees as well, they can accept the same and you can do something else which suits your profile. If you know you will not be able to submit the project within the stipulated time frame, tell your boss. Never hide things from him. Be straightforward. If you want to go for a leave, try to negotiate with him that probably you will attend office the coming weekend or sit for some more time in the coming days to compensate for the loss. Be a little patient.

Conflict must be avoided at the work place as it only leads to negativity all around. Negotiations help to reduce conflicts at the work place. Conflicts arise when individuals are too rigid and are just not willing to compromise with each other. Negotiations help in finding an alternative which benefits all.

Let us understand the importance of negotiation in corporates with the help of a simple example:

Ted was working with a leading organization. He was a smart negotiator. He always negotiated well with his superiors as well as his fellow workers and thus a enjoyed his work. He only accepted those responsibilities he knew he was capable of doing. No doubts his work was error free, and he was his boss’s favourite. He was always well informed before going for any negotiation with vendors, never lost his temper and always closed the deal in favour of the organization. Good negotiation skills helped Ted be the most appreciated employee among all.

Elements affecting Negotiation

The actual negotiation process depends on the following factors:

(i) The goals and interests of the parties

(ii) The extent to which the negotiating parties are interdependent

(iii) The past relations which exist between the two negotiating parties

(iv) The nature, temperament, and personalities of the parties

(v) The persuasive ability of each party

Factors

Subjective Factors

Often the outcome of the discussion does not depend wholly on the objective factors of logic and the facts of matter under consideration. The final outcome of the negotiation is also determined by the subjective factors of influence and persuasion.

Mutual Obligation: The memories of well done in the past by the other party also act as an influence on us.

Personal relationship: The conduct of negotiation is influenced not only by the real situation of the matter but also by the relationship between the two persons or parties involved in the process of discussion.

Future Considerations: When personal relationships are at stake we may not wish to win the argument, especially when good relations between the two parties are likely to be affected.

Practical Wisdom: Fear of losing good opportunities in the future is a strong factor in our bargaining and negotiation positions and power.

Fear: Often our bargaining power is conditioned by our fear of the other party’s authority, power, higher connections and the capacity to harm.

Time

• The choice of time for holding discussions should be fixed according to mutual convenience.
• The time should be adequate for the smooth exchange of ideas through different stages of negotiation
• Exchanging initial views
• Exploring possible compromise
• Searching for common ground
• Securing agreement
• The time to prepare for negotiation and the time for implementing the agreement should also be carefully fixed for action before and after the meeting.
• To be effective, negotiations should be timely. This means that the negotiation should be done before it is too late so as to secure an agreement.

Place

The place of meeting for negotiation influences one’s level of confidence. Choosing a place like your own office has many advantages:

• You are in your area of strength.
• You can extend social courtesies as a token of goodwill; this would move the negotiation towards an agreement.
• You can get whatever information or material that is needed during the course of the discussion.

Labour courts

Labour is a subject in the Concurrent Listunder the Constitution of India where both the Central and State Governments are competent to enact legislation subject, however, to reservation of certain matters for the Central Government.

The Ministry of Labour and Employment seeks to protect and safeguard the interests of workers in general and those who constitute the poor, deprived and disadvantaged sections of the society, in particular, with due regard to creating a healthy work environment for higher production and productivity, and developing and coordinating vocational skill training and employment services.

Government’s attention is also focused on promotion of welfare activities and providing social security to the labour force both in the organised and unorganised sectors, in tandem with the process of liberalisation. These objectives are sought to be achieved through enactment and implementation of various labour laws, which regulate the terms and conditions of service and employment of workers.

Individual workmen raise Industrial dispute Under Section7 of Industria Dispute Act 1947. Which says:

The appropriate government is empowered to establish one or more Labor Courts. Its function is to settle industrial disputes concerning any matter specified in the second schedule.

Qualification for the appointment of a Presiding Officer of the Court

(i) He is or has been a judge of high court

(ii) He has for a period of not less than 3 years, been a district judge or an additional judge

(iii) He has held any judicial office in India for not less than 7 years

(iv) He has been the presiding officer of labor Court constituted under any Provision Act for not less than 5 years

Disqualifications:

Section 7-C of the Industrial Dispute Act,1947 prescribes Disqualifications for the presiding officer to be appointed to the Labor Court. It provides that no person shall be appointed to or continue in office if:

(a) He is not an independent person; or

(b) he has attained the age of 65 years

Matters within The Jurisdiction of Labour court

Second Schedule

1. The propriety or legality of an order passed by an employer under the standing orders;
2. The application and interpretation of standing orders;
3. Discharge or dismissal of workmen including reinstatement of, or grant of relief to, workmen wrongfully dismissed;
4. Withdrawal of any customary concession or privilege;
5. illegality or otherwise of a strike or lock-out; and

According to [Sec 10 (1) (c)] matters specified in THIRD SCHEDULE, dispute not effecting more than 100 workers can be referred to labour court.

According to [Sec 10 (2)] when parties in the industrial dispute apply to the government to refer dispute to the labour court and if government satisfies it shall make the reference to the labour courts.

According to [Sec 10 (6)] no Labour Court or Tribunal shall have jurisdiction to adjudicate upon any matter which is under adjudication before the National Tribunal.

Power and status of the labour court in trying offences:

Section 215 and 216 of the code provides the procedure and powers of labour court which is may be of two types;

(1) Power and status in trying offences

(2) Power and status in civil maters

(a) The labour court shall follow as nearly as possible summary procedure as prescribed under the code of criminal procedure 1898 (Act V of 1898)

(b) A labour court shall for the purpose of trying an offence under the code have the same powers as are vested in the court of a magistrate of the first class under the code of criminal procedure.

(c) The labour court shall for the purpose of inflicting punishment have the same powers as are vested in Court of Session under that code.

(d) A labour court shall while trying an offence hear the case without the members.

Industrial Tribunals

Industrial Tribunal [Sec. 7A]: The appropriate Government may, by notification in the Official Gazette, constitute one or more Industrial Tribunals for the adjudication of industrial disputes relating to any matter, whether specified in the Second Schedule or the Third Schedule and for performing such other functions as may be assigned to them under this Act.

Second Schedule

1. The propriety or legality of an order passed by an employer under the standing orders;
2. The application and interpretation of standing orders;
3. Discharge or dismissal of workmen including reinstatement of, or grant of relief to, workmen wrongfully dismissed;
4. Withdrawal of any customary concession or privilege;
5. Illegality or otherwise of a strike or lock-out; and

Third Schedule

1. Wages, including the period and mode of payment;
2. Compensatory and other allowances;
3. Hours of work and rest intervals;
4. Leave with wages and holidays;
5. Bonus, profit sharing, provident fund and gratuity;
6. Shift working otherwise than in accordance with standing orders;
7. Classification by grades;
8. Rules of discipline;
9. Rationalisation;
10. Retrenchment of workmen and closure of establishment; and
11. Any other matter that may be prescribed.

According to [Sec 10 (2)] when parties in the industrial dispute apply to the government to refer dispute to the industrial tribunal and if government satisfies it shall make the reference to the industrial tribunal.

According to [Sec 10 (6)] no Labour Court or Tribunal shall have jurisdiction to adjudicate upon any matter which is under adjudication before the National Tribunal.

A Tribunal consists of one person only.

For appointment as the presiding officer of a Tribunal

• He is, or has been, a Judge of a High Court; or
• He has, for a period of not less than 3 years, been a District Judge or an Additional District Judge;
• He is or has been a Deputy Chief Labour Commissioner (Central) or Joint Commissioner of the State Labour Department, having a degree in law and at 7 seven years’ experience in the labour department after having acquired degree in law including three years of experience as Conciliation Officer:

Provided that no such Deputy Chief Labour Commissioner or Joint Labour Commissioner shall be appointed unless he resigns from the service of the Central Government or State Government, as the case may he, before being appointed as the presiding officer; or he is an officer of Indian Legal Service in Grade III with three years’ experience in the grade.

Role of Industrial Tribunal

The Industrial Tribunal is a juridical Tribunal made up of a Chairman and two members (one representing Workers interests and the other Employers interests) drawn up from separate panels in the case of an Industrial Dispute whilst of a chairman alone in the case of alleged unfair dismissal. It is regulated by the Employment and Industrial Relations Act 2002.

The tribunal hears disputes in the public but it may hold private sittings. Statements of Cases are asked of the parties who are then given an opportunity to support their cases by oral pleading.

Subject to the rules laid down under the Act, the Tribunal is free to regulate its own procedures but it is expected to observe the rules of natural justice and to decide on the substantive merits of the case in front of it.

Awards or decisions are binding on both parties. The parties are not free unilaterally to seek a revision within a year. They may however ask for an interpretation if the need arises.

Enforcement of the Tribunalas decisions vests in the Tribunal itself. The minister is empowered to ask the tribunal for advice in regard to matters relating to Trade Disputes.

In cases of unfair dismissal, the Tribunal may order re-instatement of the employee or award compensation.

In its awards the Tribunal is expected to refrain from any decision or consistent with any law or regulation regarding Conditions of Employment. The Tribunal is forbidden from encroaching upon the Public Service Commission.

No application fee or court fees are payable. The only real expenses are the transcripts which are obtained at a reasonable fee from the Law Courts transcribes, and the fee due to the person assisting the applicant. These fees are stipulated by L.N. 48 of 1986 – Representation Fees Regulations.

The Tribunal Office is housed at the Department of Industrial and Employment Relations and sittings are held at the Superior Courts.

Presenting a case to the Industrial Tribunal

A case before the Tribunal must be presented by means of a referral in writing consisting of a declaration stating the facts of the case. The referral must be presented in the Registry of the Tribunal at the Maltese Law Courts within four months from the effective date of the alleged breach.

National Tribunals

National Tribunal [Sec. 7 (B)]: The Central Government may, by notification in the Official Gazette, constitute one or more National Industrial Tribunals. Its main function is the adjudication of industrial disputes which involve questions of national importance or affecting the interest of two or more States.

According to [Sec 10 (1-A)] dispute involves any question of national importance or is of such a nature that industrial establishments situated in more than one State, whether it relates to any matter specified in the Second Schedule or the Third Schedule, the government will order in writing refer to National Tribunal for adjudication.

According to [Sec 10 (2)] when parties in the industrial dispute apply to the government to refer dispute to the National Tribunal and if government satisfies it shall make the reference to the National Tribunal.

The Central Government shall appoint a National Tribunal consisting of one person only.

• A person to be appointed a presiding officer of a National Tribunal must be, or
• Must have been, a judge of a High Court or
• Must have held the office of the chairman or
• Any other member of the Labour Appellate Tribunal for a period of not less than two years.

The Central Government may appoint two persons as assessors to advise the National Tribunal.

Role of National Tribunal

Central government may, by notification in the official Gazette, constitute one or more National Tribunals for the adjudication of Industrial Disputes in:

• National matters.
• Matters in which industries are more than one state, or are affected by the outcome of the dispute.
• The duty of the National Tribunal to hold its proceedings fast and submit its report to the central government within the specified time given

Tripartite bodies involve employee, employer and Government. Bipartite committee comprises of employer and employee. Tripartite committee includes committees on Conventions, steering committee on wages, central implementation and evaluation machinery, Central Board of Worker’s Education and National Productivity Council.

Workers committee is an example for Bipartite committee. This committee is represented by employer and employees. It is established through legislation. Method of constitution of this committee is specified in the enactment.

Functions of Workers Committee:

1. Promoting industrial goodwill.
2. Securing cooperation from the employer and the employees.
3. Removing causes of friction between parties to dispute.
4. Creating an atmosphere for voluntary settlement of issues like wage benefits, bonus, terms of employment, workload, welfare, training, promotion, transfer, etc. Inter-union-rivalry, union’s opposition, employee’s reluctance to use workers committee for setting dispute hinder its effective functioning.

Standing Orders

The concept of ‘Standing Orders’ is one of the recent growths in relation to Indian labour- management. Prior to 1946, there existed chaotic conditions of employment, wherein the workmen were engaged on an individual basis with uncertain and vague terms of employment. The Act was enacted as a simple measure to remedy this situation by bringing about uniformity in the terms of employment in industrial establishments so as to minimize industrial conflicts.

1. Establishment employing 20 or more should put in place standing orders or regulations.
2. Standing orders can be prepared by employer and employees/ recognized unions/federations.
3. In case of disagreement between the employer and the employee, matter would be determined by the certifying authority i.e., Labour Commissioner having jurisdiction. Once the standing order is passed, it is binding on the parties to dispute.

Section 2(g) of the Act states that “standing orders” are the rules relating to matters set out in the Schedule, i.e. with reference to:

• The classification of workmen;
• Manner of intimation to workers about work and wage-related details;
• Attendance, and conditions of granting leaves, etc.;
• Rights & liabilities of the employer/ workmen in certain circumstances;
• Conditions of ‘termination of’/‘suspension from’ employment; and
• Means of redressal for workmen, or any other matter.

Reasonableness of Standing Order

The proviso to Section 4 of the Act, as amended by Act 56 of 1956, necessitates the Certifying Officer or appellate authority to adjudicate upon the fairness or reasonableness of the contents of such Draft Standing Order in order to proceed with its certification.

Certification Process: Section 5

The procedure for certification of Standing Order, as prescribed under Section 5 of the Act, is threefold:

• The Certifying Officer to send a copy of the Draft Standing Order to the workmen or trade union, along with a notice calling for objections, that shall be submitted to him within 15 days of receiving such notice.
• Upon receipt of such objections, the employer and workmen to be given an opportunity of being heard, after which the Certifying Officer shall decide and pass an order for modification of the Standing Order.
• Finally, the Certifying Officer shall certify such Standing Order, and thereby, within seven days, send a copy of it annexed with his order for modification passed under Section 5(2).

Appeals: Section 6

Any related party aggrieved by the order of the Certifying Officer may appeal to the ‘appellate authority’ within 30 days, provided that its decision, of confirming such Standing Order or amending it, shall be final. The appellate authority shall thereafter send copies of the Standing Order, if amended, to the related parties within seven days.

Organizational conflict, or workplace conflict, is a state of discord caused by the actual or perceived opposition of needs, values and interests between people working together. Conflict takes many forms in organizations. There is the inevitable clash between formal authority and power and those individuals and groups affected. There are disputes over how revenues should be divided, how the work should be done, and how long and hard people should work. There are jurisdictional disagreements among individuals, departments, and between unions and management. There are subtler forms of conflict involving rivalries, jealousies, personality clashes, role definitions, and struggles for power and favor. There is also conflict within individuals between competing needs and demands to which individuals respond in different ways.

Roy and Judy Eidelson (2003) investigated some of the important roles that beliefs may play in triggering or constraining conflict between groups. On the basis of a review of relevant literature, five belief domains stand out as especially noteworthy: Superiority, injustice, vulnerability, distrust and helplessness.

Superiority

Individual-level core belief: This is a belief that an individual is better than anyone else and therefore many of the social constructs because the individual sees their own thoughts as “privileged” and therefore do not get along well with others. People with this belief often have attitudes of “specialness, deservingness, and entitlement.”

Group-level worldview: When moving from the individual-level core belief to the Group-level worldview most of the concepts stay the same. The major difference is that these attitudes apply to large groups instead of individuals. One example of this is “ethnocentric monoculturalism,” a term meaning that one sees their own cultural heritage as better than another’s.

Injustice

Individual-level core belief: This belief is that an individual has been mistreated in a way that affects them in a major way. This mistreatment is most often an interpretation of “disappointment and betrayal”.

Group-level worldview: This is the receiving end of the superiority group-level. This group takes grievance at another group for the same reasons an individual takes grievance at another. For perceived injustices from disappointment, betrayal, and mistreatment.

Vulnerability

Individual-level core belief: This is a constant anxiety. It is when a person feels that he/she is not in control and feel as though they are living “perpetually in harm’s way”.

Group-level worldview: A group that feels vulnerability due to an imagined threat in the future. This strengthens the group’s ties and allows them to “focus group behavior in specific directions that include hostility.”

Distrust

Individual-level core belief: This is based on a “presumed hostility and malignant intent seen in others”. It drives one to act in hostile ways and prevents the creation of healthy relationships.

Group-level worldview: This separates the in-group from the out-group in a way that is not easily rectified, as the in-group forms a lasting stereotype that is applied to the out-group and must be disproven by the out-group.

Helplessness

Individual-level core belief: A deep set belief that no matter what an individual does the outcome will be unfavourable. As though the individual is “lacking the necessary ability” or a belief the individual did not have sufficient help or the environment is against them.

Group-level worldview: When a group has those same beliefs of dependency and powerlessness. This also reflects how much growth the environment has to offer.

Functional Conflicts:

Positive Effects

Functional conflict is also known as constructive conflict. Such conflict will have positive effects on individuals, groups and organizations. Such conflict is useful in order to solve problems related to individuals and groups. Functional conflict is important for effective performance due to the following reasons:

• It ventilates tension from the organization.
• It increases individual’s efforts at work.
• It helps thinking analytically.
• It provides foundation for organizational change and development.
• It provides an individual a chance to think again, undertake self introspection and have a second look at the existing things, like procedures, policies, equipment, behaviors etc.
• It leads to innovation and at times to new direction. It is, therefore, even necessary for the survival and growth organizations.
• It helps to seek classification and generate search behavior.
• When conflict is developed, attention is immediately drawn to the malfunctioning parts of a system. It is an indication that the situation calls for improvement. Conflict is, therefore, an essential portion of a cybernetic system.
• At times, it is also used as a means to certain ends and to create confusion or set subordinates against each other in order to maintain the interested parties own position. It may not be a positive outcome in the strict sense of the term from the organizational point of view, but it is certainly a management strategy toward of problems temporarily. It may be viewed as an unavoidable cost of the pursuit of one’s aspirations.
• Long standing problems, which continue to agitate people’s mind in surface, they are able to release their tensions and unburden themselves. They display creativity in identifying solutions and dealing with problems.
• It serves as a cementing force in a group and incredible unity is witnessed even in a heterogeneous group at times of tension.
• It energizes people, leads to mild stimulation and one is at one’s best in times of crisis. It helps them test their capacities.

1. Release of Tension:

Conflict when expressed can clear the air and reduce the tension which might otherwise remain suppressed. Suppression of tension can lead to imaginative distortion of truth, sense of frustration and tension, high mental exaggerations and biased opinions resulting in fear and distrust. When members express themselves, they get some psychological satisfaction. This also leads to reduction of stress among the involved members.

2. Analytical Thinking:

When a group is faced with a conflict, the members display analytical thinking in identifying various alternatives. In absence of conflict, they might not have been creative or even might have been lethargic. The conflicts may induce challenge to such views, opinions, rules, policies, goals and plans which would require a critical analysis in order to justify these as they are or make such changes that may be required.

3. Group Cohesiveness:

Inter group conflict brings about closeness and solidarity among the group members. It develops group loyalty and greater sense of group identity in order to compete with the outsiders. This increases the degree of group cohesiveness which can be utilized by the management for the attainment of organisational goals in an effective manner. As cohesiveness increases, differences are forgotten.

4. Competition:

Conflicts promote competition and hence it results in increased efforts. Some persons are highly motivated by conflict and severe competition. Such conflict and competition, thus, lead to high level of effort and output.

5. Challenge:

Conflicts test the abilities and capacities of the individuals and groups. It creates challenges for them for which they have to be dynamic and creative. If they are able to overcome the challenge, it will lead to search for alternatives to existing patterns which leads to organisational change and development.

6. Stimulation for Change:

Sometimes, conflict stimulates change among the people. When they are faced with a conflict, they might change their attitudes and be ready to change themselves to meet the requirements of the situation.

7. Identification of Weaknesses:

When a conflict arises, it may help in identifying the weaknesses in the system. Once the management comes to know about the weaknesses, if can always take the steps to remove them.

8. Awareness:

Conflict creates awareness of what problems exist, who is involved and how to solve the problem. Taking cue from this, management can take the necessary action.

9. High Quality Decisions:

When conflicting, persons express their opposing views and perspectives, high quality decisions result. The people share their information and check each other reasoning to develop new decisions.

10. Enjoyment:

Conflict adds to the fun of working with others when not taken seriously. Many people find conflict enjoyable to competitive sports, games, movies, plays and books.

Dysfunctional Conflicts:

Negative Effects

Dysfunctional conflict is also known as destructive conflict. Many times conflict may be detrimental and disastrous. Such conflict has negative effect on individuals, groups and the organizational levels. The effects might be diverting energies, hurting group cohesion, promoting interpersonal hostilities and creating negative working environment. Due to the dysfunctional conflict and its negative effects, employees become dissatisfied with the working environment and as a result, absenteeism will increase and productivity will decline. A few dysfunctional effects of rising conflict include:

• Increasing conflict will result in delays in meeting schedules, decrease in the quality of goods and services and finally will increase customer complaints.
• It is undesirable if it creates a climate of distrust and suspicion among people, if some people feel are defeated and demanded and it develops antagonism instead of spirit of cooperation.
• In the absence of smooth communication at the workplace, there will be problems in coordinating activities.
• With the increasing conflict in the organization, people start to divert themselves from the real work schedule and keep less interest and show less energy, and this will ultimately affect the achievement of organizational goals.
• The increasing negative emotions at the workplace can be quite stressful.
• When conflict does not lead to solution of a problem, it is unproductive and investment of time and effort goes waste.
• As a consequence of conflict, there may be intensification of internalization of sub-unit goals which may result in the neglect of overall organizational goals.
• It is seriously harmful if it distracts attention from basic organizational objectives and makes people work for their defeat.
• When management loses objectivity and treats disagreement as equivalent to disloyalty and rebellion, an opportunity for creativity should be deemed to have been lost. It may even pour oil over troubled waters, exploit differences to strengthen itself and weakens others, and accept resolutions capable of different interpretation.

1. High Employee Turnover:

In case of intra-individual and inter-individual conflicts particularly, some dynamic personnel may leave the organisation, if they fail to resolve the conflict in their favour. In this case, organisation will be the sufferer in the long run due to the loss of key people.

2. Tensions:

Sometimes, conflict can cause high level of tensions among the individuals and groups and a stage may come when it becomes difficult for the management to resolve the conflicts. This will result in anxiety, frustration, uncertainty and hostility among the members.

3. Dissatisfaction:

Conflict will result in discontentment to the losing party, who will wait for an opportunity to settle the score with the winning party. All this tussle will result in less concentration on the job and as a result, the productivity will suffer.

4. Climate of Distrust:

Conflict often creates a climate of distrust and suspicion among the members of the group as well the organisation. The degree of cohesiveness will be less as the discords will be more. The concerned people will have negative feelings towards each other and try to avoid interaction with each other.

5. Personal Vs. Organisational Goals:

Conflicts may distract the attention of the members of the organisation from organisational goals. They may waste their time and energy in finding ways and tactics to come out as winners in the conflict. Personal victory becomes more important than the organisational goals.

6. Conflict as a Cost:

Conflict is not necessarily a cost for the individuals. But the conflicts may weaken the organisation as a whole, if the management is not able to handle them properly. If the management tries to suppress conflicts, they may acquire gigantic proportions in the later stages. And if the management does not interfere in the earlier stages, unnecessary troubles may be invited at the later stages. It is a cost to the organisation, because resignations of personnel weaken the organisation, feeling of distrust among members have negative impact on productivity and so on.

1. Intrapersonal

This level refers to an internal dispute and involves only one individual. This conflict arises out of your own thoughts, emotions, ideas, values and predispositions. It can occur when you are struggling between what you “want to do” and what you “should do.”

Factors of Conflict in Individuals:

• Unacceptability:

Every individual has a known acceptable alternative in terms of his own goals and perceptions. Since the alternative preferred by the organisation is not satisfactory to him, he is unable to accept it. Unacceptability is subjective because the alternative unacceptable to one may be acceptable to another individual. When the alternative is unacceptable to an individual, he will search for new alternatives. His search for acceptable alternative continues. But sometimes, repeated failure to discover acceptable alternatives leads to a redefinition of acceptable.

• Incomparability:

The individual knows the probability distribution of the alternatives but he is not able to take decision because the outcomes are incomparable. When the results are not comparable, no decision could be taken. Similarly, an individual is also unable to make proper comparison of alternatives. Comparison requires clarity, technique of comparison including assigning weights to different components, rationality in attitude and behaviour and the competence to perform the task.

The procedure of comparison depends also on the clarity and decisiveness of the individual regarding the minimum standard of achievement. If the individual does not have much clarity as to the expectancy, he will not be able to make comparison. The state of incomparability causes lot of tension and conflict to the individual.

• Uncertainty:

Individuals are uncertain about the environments within and outside the organisations. If the environment could be properly depicted, the behaviour of the people regarding acceptability of the alternative and efficacy of the alternative could be ascertained with certainty. In a state of uncertainty, the individual feels frustrated which is ultimately reflected in conflict. Within an individual there are usually a number of competing goals and roles.

2. Interpersonal

This conflict occurs between two or more people in a larger organization. It can result from different personalities or differing perspectives on how to accomplish goals. Interpersonal conflict may even occur without one party realizing there was ever conflict.

Interpersonal conflict involves conflict between two or more individuals I and is probably the most common and most recognized conflict. All conflicts are basically interpersonal conflicts because most of the conflicts involve conflict between a person in one organisation or a group and another person in other organisation or a group.

Every individual has a separate acceptable alternative course of action and different individuals prefer different alternatives. The organisation itself creates situations in which two individuals are placed in conflict situations. This may involve conflict, for example, between two managers who are competing for limited capital and manpower resources.

Another type of interpersonal conflict can relate to disagreement over goals and objectives of the organisation. These conflicts are highlighted when they are based upon opinions rather than facts. Opinions are highly personal and subjective and may lead to criticism and disagreements. These conflicts are often the result of personality clashes.

According to Whetten and Cameron there are four sources of interpersonal conflict.

(1) Personal Differences:

Personal differences can be a major source of conflict between individuals. Individual differ because of one’s upbringing, cultural and family traditions, family background, education experience and values.

(2) Information Deficiency:

Lack of information can be another source of interpersonal conflict. This type of conflict often results from communication breakdown in the organisation.

(3) Role Incompatibility:

Another source of interpersonal conflict can be role in compatibility. In today’s inter functional organisations, many managers have functions and tasks that are interdependent and the individual roles of these managers may be incompatible.

(4) Environment Stress:

The interpersonal conflict can also be due to environmental stress. Stress from environment arises because of scarce or shrinking resources, downsizing, competitive pressures and high degree of uncertainty. Interpersonal conflicts have a tendency to resolve themselves because the conflicting parties are not in a position to remain tense for a very long time. Time is the healing factor for these conflicts. In case the inter-personal conflicts are of persisting nature it can be resolved through counselling, effective communication, win negotiation and transactional analysis. Management must analyze the reasons for conflict and resolve to create an atmosphere of openness and mutual trust in the organisation.

3. Intragroup

This level of conflict occurs between members of a single group when there are multiple people with varying opinions, backgrounds and experiences working toward a common goal. Even though they may all want to achieve the same goal, they may disagree about how to reach it. Intragroup conflict can also occur when team members have differences in communication styles and personalities.

Intra group conflict arises when differences crop up between the members of the group. The individual may want to remain in the group for social needs but may disagree with the group methods. Intra-group conflict may arise in three ways.

(i) When the group faces a new problem

(ii) When new values are imported from the social environment into the group and

(iii) When a person’s extra group role comes into conflict with his intra group role.

Intra group conflict is like the interpersonal conflict with the difference that the persons involved in the conflict episode belong to a common group. The causes are similar to those of interpersonal conflicts.

4. Intergroup

This level of conflict occurs between different groups within a larger organization or those who do not have the same overarching goals.

Conflicts between different groups in the organisation are known as intergroup conflicts. Inter-group conflict may also be stated in terms of organisational conflict.

Causes of intergroup conflict may be summarized under four heads:

(i) Absence of joint decision making

(ii) Difference in goals

(iii) Difference in perception and

(iv) Difference in goals as well as perception.

(i) Absence of joint decision making:

Organisation is comprising of different groups. Each group puts its urgency for having maximum share in the limited resources and press for the acceptance of its own time schedule for the performance of a task. If the wishes of a group in respect of resources and time schedule are accepted, justice cannot be done to other groups, which will ultimately lead to organisational ineffectiveness. Joint decision making is the only solution to resolve the conflict. The conflicting parties may sit together and discuss their own needs in the overall organisational perspective.

(ii) Difference in goals:

Difference in goals arises due to the following reasons:

(a) Factors which affect the commonality within the organisation such as heterogeneity in groups

(b) Factors that affect the clarity and consistency of reward structure and

(c) Factors which affect comparability of reward structure

(iii) Difference in Perception:

Differences in perception causing intergroup conflict arise due to:

(a) Members having different sources of information

(b) Different techniques of processing the information

(c) Different time horizons and

(d) Difference in goals.

5. Organizational conflict

All the conflicts discussed in the preceding discussion relate to conflicts within the organisational settings. Inter organisational level conflict occur between organisations which are in some way or the other dependent upon each other. Conflicts at individual level, group level or inter group level are all inherent in the organisation level conflict. The organisation level conflict can be between the buyer and seller organisation, between union and organisations employing the members, between government agencies that regulate certain organisations and the organisations that are affected by them.

Managers must try to live with this type of conflict. If the conflict is properly handled it can be constructive in achieving the results. It can act as a stimulus it may be a challenge and motivational force to keep the organisation moving.

The traditional view of conflicts has been around since late nineteenth century. According to this view, the conflicts are always bad for an organization. It always leads to failure and always has a negative impact on the performance of an organization. According to this view, a conflict is synonymous to violence, destruction and irrationality.

It was first developed in the late 1930s and early 1940s, with the most linear and simple approach towards conflict. According to the traditional view, any conflict in an organization is Outright bad, negative and harmful.

Traditional View

According to the traditional view, a conflict must always be avoided at all costs. The manager should try to reduce, suppress or eliminate it. The manager is allowed to take authoritative approach to rid the organization of conflicts. The problem with this view is that the root cause of the conflict is left undetermined.

Moreover, the traditional view on organizational conflict identifies poor communication, disagreement, lack of openness and trust among individuals and the failure of managers to be responsive to their employees’ needs as the main causes and reasons of organizational conflict

The traditional view is the early approach to conflict which assumed that all conflict was bad and to be avoided. The conflict was treated negatively and discussed with such terms as violence, destruction, and irrationality to reinforce its negative implication.

The conflict was a dysfunctional outcome; resulting from poor communication, lack of transparency and trust between people, and the failure of managers to be responsive to the necessities and aspirations of their employees.

The view that all conflict is negative certainly offers a simple approach to looking at the behavior of people who create conflict.

We simply need to direct our attention to the causes of conflict, analyzing them and take measures to correct those malfunctions for the benefit of the group and organizational performance.

Conflict was seen as a dysfunctional outcome resulting from poor communication, a lack of openness and trust between people and the failures of the managers to be responsive to the needs and aspirations of the employee. Conflict could cause losses in productivity because groups would not cooperate in getting jobs finished and would not share important information. Too much conflict could also distract managers from their work and reduce their concentration on the job.

Thus, traditional writers had a very conservative view about conflict as they considered it totally bad and advocated that conflicts must be avoided, with the result that sometimes; there is a tendency to suppress conflict and push it under the rug. By ignoring the presence of conflict, we somehow try to wish it away.

Both the scientific management approach and the administrative school of management relied heavily on developing such organisational structures that would specify task, rules, regulations procedures and authority relationships so that if a conflict develops, then these inbuilt rules will identify and correct problems of such conflict. Thus, through proper management techniques and attention to the causes of conflict, it could be eliminated and organisational performance improved.

Human Relations View

The human relations view dominated the conflict theory from the late 1940s through the mid 1970s. The human relations view argued that conflict was a natural occurrence in all groups and organisations. Since conflict was inevitable, management should accept the conflict. This theory says that conflict is avoidable by creating an environment of goodwill and trust.

Human Relations view is also referred to as managed view. While the traditional view relates the conflicts with destruction and a negative impact and tries to ensure the removal of conflict, the human relations view acknowledges the existence of conflict in an organization. According to this view, in an organization, conflict is inevitable and natural. A conflict has the potential to have a positive impact on the performance of an organization. A conflict cannot be totally eradicated and there are times when this conflict may even benefit an organization.

The managers should accept the conflict and should try to manage it effectively instead of suppressing or totally eliminating it. They should not allow the conflict to increase more than a certain level and they should also not leave the conflict unresolved. This may lead toward the decrease in performance.

But still conflicts are bound to happen due to differences in opinions, faulty policies and procedures, lack of cooperation, allocation of resources which will lead to distortion and blockage in communication. Accordingly, management should always be concerned with avoiding conflict if possible and resolving it soon if possible, in the interests of the organisation and the individuals.

Interactionist View

The third view which is also the latest view on conflict is called the interactionist view. According to this view, a conflict is mandatory for an organization’s better performance. A conflict helps an organization to cope with changes in a better way. This view encourages the conflicts based on the rationale that if there is no conflict in an organization, it may become stagnant, lethargic and non-responsive to needs for change and improvement.

Modern View Point, while the human relations view accepted conflict, the inter-actionist approach encourages conflict. This view is based on the belief that conflict is not only a positive force in a group but is also necessary for a group to perform effectively. This approach encourages conflict. According to it if the group is harmonious, peaceful and cooperative, it is prone to become static and non-responsive to the needs for change and innovation. Therefore, the group leader must allow some conflicts to happen in the group, so that the group may remain viable, self-critical and creative.

However, conflicts must be kept under control to avoid their dysfunctional consequences. The major contribution of the inter-actionist approach is encouraging group leaders to maintain an ongoing minimum level of conflict, enough to keep the group viable, self-critical and creative.

Thus, it becomes evident that to say conflict is all good or bad is in appropriate and naive. Whether a conflict is good or bad depends on the type of conflict. Specifically, it is necessary to differentiate between functional and dysfunctional aspects of conflict.

The interactionist view indicates that conflict is not only an encouraging force in a group but also an absolute necessity for a group to perform effectively.

While the human relations view accepted conflict, the interactionist view encourages conflicts because a harmonious, peaceful, tranquil, and cooperative group is prone to becoming static apathetic and non-responsive to needs for change in innovation.

So the major contribution of the interactionist view is encouraging group leaders to sustain an ongoing minimum level of conflict enough to keep the group viable, self-critical and inspired.