It is normal to encounter conflicts among stakeholders of a profit-making institution. Business entities provide a social platform where individuals interact professionally. Both senior and junior employees frequently disagree on the best decisions entailing production processes (King et al., 2016). However, this analysis involves conflict and negotiation management between Nick Cunningham and executive directors of a merging firm. Managing conflicts between top administrative officers alter efficient operations of organizations (Bauer & Erdogan, 2011). The case study notes that constant disagreements attract long-term decisions affecting both personal and professional lifestyles. Most importantly, conflict and negotiation management is critical for improving stakeholder relationships required to optimize profitability and enhance employee cohesion and collaboration.
Dysfunctional Conflict
Nick Cunningham is facing a dysfunctional conflict with Julian Mansfield, an executive officer at Beauchamp. This organization is part of merging firms with Synergon aimed at profit maximization. The conflict is dysfunctional as the managing director wants to retire early, following strict guidelines issued for the process (Bauer & Erdogan, 2011). The case study highlights that the managing director opposes the transactional approach, entailing merging companies’ management transformation (Overman, 2011). Cunningham faces an administrative challenge as the absence of Julian would negatively affect normal operations at Synergon. The dysfunctional conflict implies a vacancy which requires experienced personnel for an accurate transition to a merger firm. Recruiting a new professional to take over the process would be both expensive and time-consuming for actualizing the merger (King et al., 2016). Conflict management would be useful for enhancing stakeholder relationships between Synergon and the executive director of Beauchamp.
Conflict Sources
The source of conflict in the case study is attributed to administrative differences between Cunningham and Julian. It is highlighted that senior executives at Synergon ensure competent management of mergers using strict policies. Disagreements entailing policy formulation is critical in determining an organizational culture and profitability (Overman, 2011). On the one hand, the leadership approach adopted by Julian could have been transformational. It implies an open working environment that implements progressive policies aimed at professional development among employees (Bauer & Erdogan, 2011). On the other hand, Cunningham integrates a transactional framework of employee management, facilitating accurate implementation of strict policies at Synergon. Merging companies with different administrative framework requires active stakeholder collaboration and cooperation for successful unions.
Organizational conflicts at the top levels of a company can result in adverse impacts on business profitability. Executive and managing directors are responsible for enacting operational policies which determine a firm’s culture. Managers at middle and junior levels of administration ensure accurate interpretation of issued regulations to be relayed to junior staff members (Bauer & Erdogan, 2011). Employees working in operational levels practically implement the strategies for the ultimate goal of profitability. In essence, conflicts at high management levels affect the process of policy implementation within an organization. Cunningham is facing a dysfunctional conflict that could attract substantial financial losses between Synergon’s mergers with Beauchamp. The former’s management legacy of strict policies can also cause organizational conflicts with other coalitions. Senior managers below the executive management level can question the relevance and reliability of transactional practices in policy formulation (King et al., 2016). Nevertheless, the source of discrimination in the case study could be mitigated using a strategic conflict management style.
Appropriate Style of Conflict Management
Fundamentally, Cunningham should develop a mitigation tactic for resolving the dysfunctional conflict at hand. He should ensure that all mergers operate efficiently despite a change in ownership. Synergon is likely to experience significant operational issues entailing a successful transmission (King et al., 2016). A successful merger in modern times requires contemporary managerial skills regarding conflict resolution. It is normal to find senior officials disagreeing with specific policies for varying reasons (Bauer & Erdogan, 2011). For instance, Cunningham’s approach of instituting strict operational policies can influence an organizational culture of employee management at Beauchamp. Protecting a firm’s professional values is critical in enhancing profitability depending on customer relationship (Overman, 2011). The manager should consider the collaborative approach of conflict management with Beauchamp’s executive director. Both senior officials involved in a significant merger should consider cooperating for a peaceful administrative transition required for enhanced profitability.
The collaborating style of conflict management is suitable for Synergon’s case for diverse reasons. For instance, mergers entail a transition of ownership as different investors are involved in the buying new equity shares. Capital resources are critical for ensuring smooth operational procedures by facilitating short-term and long-term investment (Bauer & Erdogan, 2011). Most importantly, the collaborating style would lead to mutual financial benefits between conflicting parties. Cunningham should integrate Julian’s perspectives regarding strict policy formulation and implementation. Similarly, the latter should cooperate with Synergon’s manager to prompt administrative roles. Enhancing cooperation and willingness to compromise makes the collaborative style more effective in mergers (King et al., 2016). The transformation process of organizations coming together requires full coordination as stipulated by commercial regulations. It is intended to avoid organizational conflicts that would attract significant financial losses, with business termination as an extreme eventuality.
Alternative Approach for Conflict Resolution
Alternatively, Cunningham should consider the compromising approach of resolving the administrative disagreements. This dysfunctional conflict requires either party to forego some managerial interests in strict policy formulation (King et al., 2016). The case study notes that Julian aims at retiring early from his professional capacity as the executive director of Beauchamp. From a critical perspective, the retirement plan is a tactic of avoiding managerial roles in the new merger (Overman, 2011). I would advise Cunningham to consider foregoing some terms of strict policy formulation to be applied across merging organization. It would entail a management strategy aimed at protecting organizational values of individual firms under Synergon. As a result, the organizations top management could compromise strict policies for progressive administrative practices (Bauer & Erdogan, 2011). Ensuring advanced stakeholder interaction in an organization requires involved individuals to depict willingness to consider opinions and suggestions.
Conclusion
In conclusion, conflict and negotiation are useful administrative tools of ensuring success among profit-making institutions. Cunningham is facing a dysfunctional conflict with Julian regarding administrative practices of policy enactment and implementation (Bauer & Erdogan, 2011). The former might perceive strict management regulations as regressive and obsolete in contemporary organizations. Mergers between firms which previously operated independently could result in significant financial losses. As a result, Synergon’s manager should consider collaborating style of conflict resolution for ensuring a smooth administrative transition of ownership. In ordinary business circumstances, mergers require active cooperation and coordination among relevant stakeholders for success. Instead, Cunningham could consider the accommodating managerial perspectives and interests of Beauchamp’s executive official. The former would protect the interests of Synergon depending on preferred organizational values. Similarly, Julian should be willing to preserve administrative practices that have been successful before the merger.
References
Bauer, T. N., & Erdogan, B. (2011). Organizational socialization: The effective onboarding of new employees. In S. Zedeck (Ed.), APA handbooks in psychology®. APA handbook of industrial and organizational psychology. Maintaining, expanding, and contracting the organization (pp. 51–64). American Psychological Association.
King, D. D., Newman, A., & Luthans, F. (2016). Not if, but when we need resilience in the workplace. Journal of Organizational Behavior, 37(5), 782-786.
Overman, S. (2011). Conflict 101: A manager’s guide to resolving problems so everyone can get back to work. Aorn Journal, 94(4), 425-426.