CONFLICT MANAGEMENT AND NEGOTIATION SKILLS
CASE I: MARUTI UDYOG
LIMITED
PART A: Conflict
Case of Labour Unrest
at Maruti Udyog Limited.
Introduction of the
company
Maruti Udyog Limited, a subsidiary of Suzuki Motor
Corporation (SMC) of Japan, manufactures cars in the 800cc range. The
commercial production started in December, 83. The installed capacity has been
gradually increased to 350000 units per annum. During the fiscal year 2007-08,
the production was 680,000 units. Maruti has become the largest Asian car
company (Outside Japan and Korea). In the first half of 2007-08, Maruti sold
more cars in the Indian market than sold by Suzuki in the Japanese market.
Even though there was no real competition and Maruti was the
dominant player, it has been regularly introducing new models to meet rapidly
changing customer needs. Till now 9 major models, namely Maruti -800, Omni,
Gypsy, Alto, Esteem, Swift, Zen, Estilo, SX-4, and Wagon R have been
introduced.
Maruti’s contribution
as the engine of the growth of the auto industry indeed has its impact on the
lifestyle and psyche of an entire generation of Indian middle class. Maruti has
been instrumental in laying the foundation for strong vendor base in India. In
2000-01, J D Power, the reputed name in car market surveys, has rated Maruti as
the number one car company in customer service. It has noted that this is the
first instance anywhere in the world of a market leader topping in customer
satisfaction as well. Shortly after that, J D Power’s Quality Survey rated
Maruti has maintained the position since then.
Maruti has identified Pre-owned car business, leasing and
fleet management, Car insurance and Auto finance as strategic areas of growth.
Source of Conflict
To motivate the workmen for higher productivity, in 1989,
management introduced an incentive scheme valid for 4 years and this was
modified form time to time in consultation with union. After expiry of the
scheme on 31.03.1995, as no common understanding could be reached with union,
management introduced a revised scheme through notification on 01.01.1996,
effective from 01.04.1995 for 4 years, and was implemented and accepted by the
workmen without any dispute.
As the scheme has lapsed on 31.3.1999, management has given
a proposal of the revised incentive scheme to be effective from 1.4.1999. When
the initial incentive schemes were formulated, the need of the day at that time
was higher production. Accordingly, the focus in the earlier schemes was
achieving higher productivity. However, in the current
Questions:
1.
Do you think that the conflict was resolved in
proper manner? Give reasons?
2.
If you were the union leader how would you have
solved this dispute?
3.
Amongst all the incentives schemes from the
negotiated settlement which 3 skills are more effective? And why?
CASE STUDY 2: PHARMACEUTICAL INDUSTRY
The
pharmaceutical industry has been growing at fast pace with the introduction of
new molecule and newer brands of the existing molecule in market. The sale of a
company is totally dependant on the prescription of a doctor. To promote their
brand every company recruits their representatives, who are required to visit
the doctor on a regular basis. A representative has to either take appointment
with the doctor for visit or meet him on their convenient timings; this could
be in morning, afternoon or evening.
Conflict between the sales representative
and his manager on sales territory:
As per the
norm of the company, every representative has to meet a specific number of
doctors and chemist in a day. This case is of a newly recruited representative
Sachin, who Sachin was new to industry Sachin, was recruited due to his good
communication skills and his great interest to work for the organization.
Questions:
1.
Does role of power play a vital impact in
negotiation? Take the base of case and explain?
2.
Explain the behavior during negotiation in this
case (that is the opening move, negotiation dance & influence mechanism)?
3.
What was the main reason for the communication
gap in this case? And also explain the classification of conflict?
CASE STUDY 3: RESENTMENT
OF LOCAL VILLAGERS TO PRESERVE THEIR INTEREST AND GOVERNMENT’S DRIVE TOWARDS
DEVELOPMENT OF THAT AREA BY OPENING AN ENGINEERING COLLEGE
Conflict
It is
common to hear of conflicts arising out of rural population getting displaced
for development projects. They often charge government of taking over their
lands at prices considerably lower then the market price. Though sometimes it
is also true that for any future projects Government acquires land and the
project may take years to take off. Meanwhile landowners, in most cases the
poor farmers, continue to use their sold land as before and being unable to
utilize money properly end up in this intervening period getting dependent on
the produce from this land which was sold to Government. When the project does
start these poor villagers find it as a direct attack on their livelihood. This
results into a conflict of interest and for survival as far as villagers are
concerned.
Questions:
1.
Who was the main reason for this conflict?
Government or the rural population? Explain in detail?
2.
Was it possible to avoid this conflict? Give
reasons to your answers?
3.
In this case, explain the different levels of
conflict (That is low level, optimum level, high level)?
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