A workforce with superior skills is a primary source for sustainable competitive advantage. Organizations use training and development to sustain competitive advantage through continuous learning. Organizations can buy skills through hiring, or they can develop skills through training and development (T&D) activities. T&D becomes the critical factors to create readiness and flexibility for change across all organizational levels, and there are strong linkages between all facets of the T&D system and the strategic leadership and planning processes of the business. Readiness and flexibility are achieved largely through supervisory, management, and executive training, as these individuals set the boundaries for modification and continuous improvement of existing organizational practices.
For some organization, investment in T&D is presumed low in market return, as it thought that after the training, employee will not stay long enough to generate the dividen. Anxiety of the long term engagement with employee will make a major set back in T&D program, however ensuring that knowledge transfer is done sufficiently will provide additional insurance to the investment.
As companies assess employees' developmental needs and begin making plans to deliver T&D, an important consideration is T&D transfer. Transfer refers to the degree of continuity between learning in the T&D context, and behaviors and results in the job environment. There are three basic approaches to maximizing transfer:
1) overlap between T&D and job contexts,
2) integration between T&D and other elements of the human resource management system,
3) integration of management into the T&D process.
1) Overlap between T&D and job contexts,
The first critical requirement for transfer is an overlap between learning in training, and requirements on the job. The overlap assures that the knowledge, abstract concepts, attitudes, or behaviors acquired through T&D match the strategic business needs. The relevance of T&D content is enhanced when there is an obvious connection between T&D objectives and the strategic mission and goals of the organization; such relevancy enhances transfer. However, linking the T&D programs with the business strategy is the most important strategy. Similarity of the training content with the job environment is also important. The simplest way to maximize overlap between the job and training environments is through on-the-job training. Even though most T&D occurs away from the job, there is a noticeable trend toward incorporating learning into the job itself. Taking people off the job to learn is simply becoming too costly. On-the-job T&D reduces downtime, eliminates travel costs, maximizes content relevance, and increases the likelihood that the learning will become embedded into routine processes and interactions among colleagues. Moreover, the learning process and is able to facilitate and reinforce the continuation of the desired behaviors. Most of the training comes from experiential learning.
2) Integration between T&D and other elements of the human resource management system,
A second transfer strategy is making T&D part of human resource framework that systematically hires, promotes, develops, and rewards people using a core set of competencies and behaviors. Such continuity across HR systems helps translate T&D learning into behaviors and results on the job.
Organization can uses a single integrated HR system in which critical competencies are derived from job analyses. These critical competencies drive all HR subsystems and serve as the common underlying competency framework for selection, promotion, and reward decisions, and for establishing T&D requirements for a given job.
Supervisory trainees are held accountable for improved performance following training, as part of their performance appraisals. Transfer is greatly encouraged when promotion decisions are predicated on evidence of T&D transfer, for example, that the trainee's performance appraisal documents that he or she is successfully applying newly acquired skills.
Pay-for-knowledge systems are also a way to translate T&D into results on the job.
Another strategy that integrates T&D with other HR functions is structured career path. Individuals receive T&D at critical junctures in their careers, and it is reinforced through their career progression.
3) Integration of management into the T&D process.
The third transfer mechanism recognizes that it is not enough that co-workers and supervisors are passive observers of the trainee's improvement following T&D. To ensure transfer, they must be involved in pro-actively supporting knowledge based and behavioral improvements from T&D. Involving management in all aspects of T&D is critical in obtaining this level of support.
As an example, organization can implements T&D sequentially across the organization, from the top down. Everyone receives the T&D twice, once as trainee and once as trainer to his/her direct reports or peers. This will result to that every manager knows how to support the new behaviors, and no manager is surprised by behavioral changes in the workplace that come as a result of training. In the other hand, organization can use line managers as the primary deliverers of T&D. Training sessions were conducted by line managers, many of whom is assigned as a trainers and training is not a dead-end career choice for these managers, they can become executives.
As an alternative organizations can provide managers with written or video reports summarizing the content of employees' T&D and suggesting strategies to reinforce learning. Managers also are held accountable for the returns on investment in T&D, around behaviors and results directly tied to T&D objectives. Finally, management is involved through the active planning of T&D with employees. Another suggestion is building a "partnership" between learners and their supervisors, who meet together before and after T&D to go over expectations and results. The process can be made explicit through pre-T&D "contracts" between employees and their managers. Expected T&D results are specified, including how they will be monitored and facilitated, and a trainee re-entry plan is designed to create continuity between learning in the T&D environment and behaviors and results on the job.
Saturday, October 18, 2008
Monday, September 22, 2008
Industrial Evolution
Industries evolve through a complex process of perpetual transformation. Industrial transformation has many of the defining characteristics of evolution. It is a dynamic process of development affected by both random and systematic forces. Innovation is at the core of transformation process, it is the way firms’ metamorphoses in order to compete with rivals, and is correlating with profitability. Firms which are not innovative will not sustain the competition and are more likely to die.
A dead company will exit the industry. There are types of two exits for a company:
The process of Industrial Evolution
The treat of competition induces firms to develop themselves and force them to decide in innovation, advertising, brands and skills development. The effectiveness of those investments affects productivity, growth rates and the size of firms. Thus firms which had bad hand by nature can increase the survival through prudent decisions with regards to their innovation strategies or marketing expenditures.
The process involves a complex set of mechanisms which are governed by both systematic and random forces. Firms with persistently bad performances in cash flow, will be unable to service their debt and more likely to die. There are exogenous events, which are random with respect to firm’s potential, macroeconomic event (recession or oil price hikes), scientific discoveries and changes in political or regulatory environment.
A Normative Typology of Firm Survival
This stylized conceptual framework of industrial evolution is positive in nature. Industries evolve efficiently if the deaths of the firms are economically desirable. A ‘good’ firm (Superstars) is one which is either currently a highly productive firm or will be highly productive in future due its capacity to learn, innovate and grow. A ‘bad’ (Deficient) firm is one which has low productivity currently and will continue to do so in the future because it is resistant to change and has low innovative capability. Government should be concerned only about the death of ‘good’ firms. Efficient industrial evolution requires the survival of both current high productivity firms and potential high productivity firms. While Complacent firms are one which high productivity but are resistant to change and no longer innovative. Potential stars firm is one which low productivity and are highly innovative to try to improve.
There is strong evidence that current productivity is an important selection filter; the literature consistently finds a positive relationship between survival and proxy variables for current productivity such as age and size at birth. Selection through firm death is not totally random with respect to underlying productivity, but positively reinforces improvements to overall industry performance. However, empirically there is no consensus that innovative activity is an important selection filter. If death depends on productivity, current low productivity (or poor cash flow) innovators will die before their efforts are recognized by the market. Strong positive correlation between innovation and productivity is common but not universal. The relationship between innovation and survival is complex. Some firms may successfully innovate and become superstars, while others will be less successful and perhaps move into the deficient quadrant (from where exit is most likely). The primary public policy concern should be with the premature death of ’potential stars’, but the whole process of innovation is uncertain. Death can be due to factors external to the firm and unrelated to the firm’s intrinsic capabilities.
The presence of superstar firms is unambiguously good, but these firms do not create public policy concern since they are likely to survive into the future. The deficient firms which have low levels of innovative capability are not likely to create any significant public policy concern if they exit.
Complacent firms are those firms that currently have high productivity levels (presumably due to previous innovative activity), but are now resistant to change, may be able to live off their previous successes for some time, however their performance will deteriorate as new rivals enter the industry and slowly but surely undermine their profitability.
The death of potential stars is macroeconomic conditions. Aggregate demand, interest rates, unemployment are factors which strongly affect survival, especially for new firms. It is estimated that industries such as mining, construction, wholesale trade, transport and storage, cultural and recreational services are more sensitive to high interest rates or low aggregate economic growth than other industries. This evidence reinforcing the need for governments to maintain stable macroeconomic policy settings. In theory, efficient industry evolution occurs when firms with both low productivity and low innovative capability are the only firms which exit. Available evidence suggests that the low productivity firms which have the most potential to improve (new and innovative) are also most susceptible to death during the period of adverse macroeconomic conditions, accordingly, the death of such firms in this circumstance is likely to hinder efficient industrial evolution.
A dead company will exit the industry. There are types of two exits for a company:
- Permanent exits (business cessations), business failure.
- Temporary exits (mergers and take overs), rebirth which may in fact is a cause of business success.
The process of Industrial Evolution
The treat of competition induces firms to develop themselves and force them to decide in innovation, advertising, brands and skills development. The effectiveness of those investments affects productivity, growth rates and the size of firms. Thus firms which had bad hand by nature can increase the survival through prudent decisions with regards to their innovation strategies or marketing expenditures.
The process involves a complex set of mechanisms which are governed by both systematic and random forces. Firms with persistently bad performances in cash flow, will be unable to service their debt and more likely to die. There are exogenous events, which are random with respect to firm’s potential, macroeconomic event (recession or oil price hikes), scientific discoveries and changes in political or regulatory environment.
A Normative Typology of Firm Survival
This stylized conceptual framework of industrial evolution is positive in nature. Industries evolve efficiently if the deaths of the firms are economically desirable. A ‘good’ firm (Superstars) is one which is either currently a highly productive firm or will be highly productive in future due its capacity to learn, innovate and grow. A ‘bad’ (Deficient) firm is one which has low productivity currently and will continue to do so in the future because it is resistant to change and has low innovative capability. Government should be concerned only about the death of ‘good’ firms. Efficient industrial evolution requires the survival of both current high productivity firms and potential high productivity firms. While Complacent firms are one which high productivity but are resistant to change and no longer innovative. Potential stars firm is one which low productivity and are highly innovative to try to improve.
There is strong evidence that current productivity is an important selection filter; the literature consistently finds a positive relationship between survival and proxy variables for current productivity such as age and size at birth. Selection through firm death is not totally random with respect to underlying productivity, but positively reinforces improvements to overall industry performance. However, empirically there is no consensus that innovative activity is an important selection filter. If death depends on productivity, current low productivity (or poor cash flow) innovators will die before their efforts are recognized by the market. Strong positive correlation between innovation and productivity is common but not universal. The relationship between innovation and survival is complex. Some firms may successfully innovate and become superstars, while others will be less successful and perhaps move into the deficient quadrant (from where exit is most likely). The primary public policy concern should be with the premature death of ’potential stars’, but the whole process of innovation is uncertain. Death can be due to factors external to the firm and unrelated to the firm’s intrinsic capabilities.
The presence of superstar firms is unambiguously good, but these firms do not create public policy concern since they are likely to survive into the future. The deficient firms which have low levels of innovative capability are not likely to create any significant public policy concern if they exit.
Complacent firms are those firms that currently have high productivity levels (presumably due to previous innovative activity), but are now resistant to change, may be able to live off their previous successes for some time, however their performance will deteriorate as new rivals enter the industry and slowly but surely undermine their profitability.
The death of potential stars is macroeconomic conditions. Aggregate demand, interest rates, unemployment are factors which strongly affect survival, especially for new firms. It is estimated that industries such as mining, construction, wholesale trade, transport and storage, cultural and recreational services are more sensitive to high interest rates or low aggregate economic growth than other industries. This evidence reinforcing the need for governments to maintain stable macroeconomic policy settings. In theory, efficient industry evolution occurs when firms with both low productivity and low innovative capability are the only firms which exit. Available evidence suggests that the low productivity firms which have the most potential to improve (new and innovative) are also most susceptible to death during the period of adverse macroeconomic conditions, accordingly, the death of such firms in this circumstance is likely to hinder efficient industrial evolution.
Total Productive Maintenance
Maintenance is critical to a firm's ability to successfully compete in the market not only on the basis of quality and delivery, but also on the basis of cost. Total Productive Maintenance (TPM) reduces total maintenance costs by involving the operators in routine maintenance. TPM increases equipment reliability without increasing costs by involving everyone in the maintenance process. The increased in equipment reliability helps create internal capabilities that provide the firm a competitive advantage. TPM fundamentally changes a firm's infrastructure to create the capabilities that lead to a competitive advantage. Top management and mid-level management support is essential to successfully implement TPM since the design of jobs, human resource practices and management techniques will need to change. TPM requires that the basic planning and control systems be adequate before it is implemented. Since each maintenance activity costs less, a firm can perform more maintenance activities cost effectively.
Maintenance is not an expense; it is an investment in improved manufacturing. Investment in maintenance, one of the basic functions of a firm, returns improved quality, safety, dependability, flexibility and lead times. Maintenance is a full partner striving together with the other functions to achieve the firm's strategic goals. The integration of maintenance with other functions is accomplished with Total Productive Maintenance (TPM), which was introduced in 1971 in Japan to provide a competitive advantage to those adopting it.
The classical view of maintenance is that all maintenance is performed by a set of specialists (i.e., maintenance engineers and technicians). In this view, the optimal level of maintenance occurs at the point of minimal total maintenance costs-the point where the sum of the cost of equipment losses and maintenance activity costs is minimized. The manager's role is to limit maintenance activities to those necessary to keep equipment losses at this minimum point. TPM aimed to reduce equipment breakdowns without increasing the total cost of maintenance.
TPM is a systematic approach to understand the equipment's function, the equipment's relationship to product quality and the likely cause and frequency of failure of the critical equipment components. TPM reduces equipment losses by investing in people who can then improve equipment availability, improve product quality and reduce labor costs. To maximize equipment effectiveness TPM establishes a thorough system of maintenance for the equipment's entire life span. This TPM system requires all employees working in autonomous small groups to work together to eliminate equipment breakdowns. Everyone is involved since every component of the manufacturing system-including operations, product design, and process design and management-impacts equipment maintenance. As suggested by researcher, there are six categories of equipment losses throughout production system:
1. Equipment failures.
2. Setup and adjustment.
3. Idling and minor stoppages.
4. Reduced speed.
5. Defects in the process
6. Reduced yield.
The competitive advantages of improved quality, improved delivery and increased flexibility would be nullified if they were obtained with excessive maintenance investments, which could make a firm's costs noncompetitive. TPM increases maintenance activities without increased costs. The high costs of maintenance activity often comes from inadequate planning of support requirements for machines, inadequate consideration of the machine's reliability, ignorance of the relationship of maintainability to machine design and poor design of logistic support capability. TPM directly addresses these issues by involving all of the functions in creating the solution.
The initial TPM steps may be done with a minimal amount of organizational change by implementing minor improvements such as identifying and tracking the causes of breakdowns. To fully implement, TPM requires that most companies undergo substantial change. The firm's ability to achieve its goal of increased equipment reliability is determined by its ability to coordinate its human resource practices, management policies and technology. For managers to quickly diagnose the TPM program's progress, researcher suggests that small groups categorize and record the time they spend on different activities (e.g., education, training and maintenance).
Management must determine:
Successful implementation of TPM may require a change in performance measures, such as:
Maintenance is not an expense; it is an investment in improved manufacturing. Investment in maintenance, one of the basic functions of a firm, returns improved quality, safety, dependability, flexibility and lead times. Maintenance is a full partner striving together with the other functions to achieve the firm's strategic goals. The integration of maintenance with other functions is accomplished with Total Productive Maintenance (TPM), which was introduced in 1971 in Japan to provide a competitive advantage to those adopting it.
The classical view of maintenance is that all maintenance is performed by a set of specialists (i.e., maintenance engineers and technicians). In this view, the optimal level of maintenance occurs at the point of minimal total maintenance costs-the point where the sum of the cost of equipment losses and maintenance activity costs is minimized. The manager's role is to limit maintenance activities to those necessary to keep equipment losses at this minimum point. TPM aimed to reduce equipment breakdowns without increasing the total cost of maintenance.
TPM is a systematic approach to understand the equipment's function, the equipment's relationship to product quality and the likely cause and frequency of failure of the critical equipment components. TPM reduces equipment losses by investing in people who can then improve equipment availability, improve product quality and reduce labor costs. To maximize equipment effectiveness TPM establishes a thorough system of maintenance for the equipment's entire life span. This TPM system requires all employees working in autonomous small groups to work together to eliminate equipment breakdowns. Everyone is involved since every component of the manufacturing system-including operations, product design, and process design and management-impacts equipment maintenance. As suggested by researcher, there are six categories of equipment losses throughout production system:
1. Equipment failures.
2. Setup and adjustment.
3. Idling and minor stoppages.
4. Reduced speed.
5. Defects in the process
6. Reduced yield.
The competitive advantages of improved quality, improved delivery and increased flexibility would be nullified if they were obtained with excessive maintenance investments, which could make a firm's costs noncompetitive. TPM increases maintenance activities without increased costs. The high costs of maintenance activity often comes from inadequate planning of support requirements for machines, inadequate consideration of the machine's reliability, ignorance of the relationship of maintainability to machine design and poor design of logistic support capability. TPM directly addresses these issues by involving all of the functions in creating the solution.
The initial TPM steps may be done with a minimal amount of organizational change by implementing minor improvements such as identifying and tracking the causes of breakdowns. To fully implement, TPM requires that most companies undergo substantial change. The firm's ability to achieve its goal of increased equipment reliability is determined by its ability to coordinate its human resource practices, management policies and technology. For managers to quickly diagnose the TPM program's progress, researcher suggests that small groups categorize and record the time they spend on different activities (e.g., education, training and maintenance).
Management must determine:
- Whether all the group members have mastered the techniques.
- Whether the group proposes and implements improvements.
- Whether the group solves problems.
- Whether the group works independently to achieve its goals.
- Whether the maintenance activities in the standardized maintenance program are completed.
Successful implementation of TPM may require a change in performance measures, such as:
- What types of performance measures are being used now?
- Is there an incentive for the maintenance worker to train the operator?
- Is there an incentive for the operator to notify and or help the maintenance worker?
Thursday, September 18, 2008
Employer Branding To Win The Best Candidates
Organization need to prioritize and need to build employer branding to win the best candidates and sustain their competitive advantages. By doing this the best candidates will come and apply to the company. Failing to build effective brand, the company should compromise their quality of workforce resulting to reduce of their competitive advantages. An organization which doesn't have an employer brand, will face big problem in the recruitment.
According to experts, employer branding focuses on communicating with employees, potential staff, the recruitment industry, business partners and communities. It informs people about the merits of working for the organization. The objective is to make staffs feel good about their work and their employer, getting better people, improve their motivation and to retain the best talent. The attractions of the sector; company reputation; quality of products and services; location; work environment; salary range; conditions; employee benefits; people and culture and a good work-life balance are the factors which need to be addressed to create an employer brand.
Steps to build an employer brand:
Approaches to develop an employer brand:
An interview experience should leave a positive impression of the company. Candidates receive an inside view of the company, and they will share their interview experiences and their perceptions with others. This word will be more trusted than what are posted on the company's website. How a company is perceived as a good employer in the job market will be based on people's experiences with the organization. An employer branding strategy needs to deliver great, compelling experiences to employees and prospective employees alike to attract and retain the best talent. Hence, a company's candidate management process become important component of a broader employer branding strategy that creates lasting, positive impressions across the employment experience.
Product brands influence the employment brand. Everyone want to work in a company where the brand or product is well known and are having positive market growth. Explaining the company product to the prospective candidate will be a good help to increase the employment brand.
Treat a candidate as a customer. Some managers consider the task of rejecting a candidate to be unpleasant. But the following suggestions can help make it easier and can help ensure that the interviewee still looks upon the experience positively:
The perfect interview for a hiring manager might be one in which he or she concludes that the HR professionals delivered a great, pre-qualified candidate and in which he or she accurately assesses the candidate's capability to fill the open role without having to take too much time to do it. The perfect interview for an HR professional might include everyone-candidate and interviewers-showing up, a hiring manager pleased with the candidate.
From the point of view of a candidate, the perfect interview is where he/ she:
Initial touch points ensure that candidates receive consistent, positively branded messages about the organization. When extending an offer, put some corporate personality into it. Here are some suggestions:
Top candidates have many choices. "The company with the best talent wins". Savvy companies and hiring managers realize that to beat their talent competitors, they must change the traditional employers' market paradigm.
A clearly defined candidate management process strengthens the employer brand, builds customer loyalty for your products and services, and attracts and retains the best talent. Each facet must be part of a winning strategy in the war for talent.
According to experts, employer branding focuses on communicating with employees, potential staff, the recruitment industry, business partners and communities. It informs people about the merits of working for the organization. The objective is to make staffs feel good about their work and their employer, getting better people, improve their motivation and to retain the best talent. The attractions of the sector; company reputation; quality of products and services; location; work environment; salary range; conditions; employee benefits; people and culture and a good work-life balance are the factors which need to be addressed to create an employer brand.
Steps to build an employer brand:
- Define the target audience.
- Develop a set of reasons why the organization is more attractive to that audience than other organizations.
- Incorporate those reasons into all recruitment efforts and the organization's careers website.
Approaches to develop an employer brand:
- 'Outside-in' approach is spreading the message in the job market to increase the company visibility on the job markets through a multi-faceted approach including well-designed websites explaining the company culture, compensation package, career opportunities and why they are a great place to work.
- 'Inside-out' approach is creating powerful branding internally through employee experience and turn their employees into brand advocates. External branding can be effective if only it is legitimized by internal branding.
An interview experience should leave a positive impression of the company. Candidates receive an inside view of the company, and they will share their interview experiences and their perceptions with others. This word will be more trusted than what are posted on the company's website. How a company is perceived as a good employer in the job market will be based on people's experiences with the organization. An employer branding strategy needs to deliver great, compelling experiences to employees and prospective employees alike to attract and retain the best talent. Hence, a company's candidate management process become important component of a broader employer branding strategy that creates lasting, positive impressions across the employment experience.
Product brands influence the employment brand. Everyone want to work in a company where the brand or product is well known and are having positive market growth. Explaining the company product to the prospective candidate will be a good help to increase the employment brand.
Treat a candidate as a customer. Some managers consider the task of rejecting a candidate to be unpleasant. But the following suggestions can help make it easier and can help ensure that the interviewee still looks upon the experience positively:
- Be responsive and communicate results quickly to the candidate.
- Send a thank-you note to the candidate from the interview team.
- Provide relevant feedback that will help the candidate in future job searches. Keep the door open and ask to be able to contact the candidate in the future, and offer yourself as a resource.
The perfect interview for a hiring manager might be one in which he or she concludes that the HR professionals delivered a great, pre-qualified candidate and in which he or she accurately assesses the candidate's capability to fill the open role without having to take too much time to do it. The perfect interview for an HR professional might include everyone-candidate and interviewers-showing up, a hiring manager pleased with the candidate.
From the point of view of a candidate, the perfect interview is where he/ she:
- Feels valued and respected.
- Has the opportunity to truly assess the company's ability to meet individual and family needs.
- Understands what to expect at each step of the interview process.
Initial touch points ensure that candidates receive consistent, positively branded messages about the organization. When extending an offer, put some corporate personality into it. Here are some suggestions:
- Whenever possible, personally extend an offer- even if it means flying to meet the candidate.
- Make the offer memorable by including a gift of your products or services.
- Deliver an offer letter with the prestige it deserves by differentiating it from other correspondence.
- Follow up the offer extension with a call to the candidate from a senior leader.
Top candidates have many choices. "The company with the best talent wins". Savvy companies and hiring managers realize that to beat their talent competitors, they must change the traditional employers' market paradigm.
A clearly defined candidate management process strengthens the employer brand, builds customer loyalty for your products and services, and attracts and retains the best talent. Each facet must be part of a winning strategy in the war for talent.
Tuesday, September 16, 2008
Styles of Handling Interpersonal Conflict
Researchers differentiated the styles of handling interpersonal conflict on two basic dimensions, concern for self and for others. The first dimension explains the degree (high or low) to which a person attempts to satisfy his or her own concern. The second dimension explains the degree (high or low) to which a person attempts to satisfy the concern of others. Combining the two dimensions results in five specific styles of handling conflict. Descriptions of these styles are:
Integrative and Distributive Dimensions. It has been suggested by researchers that further insights into the five styles of handling interpersonal conflict may be obtained by organizing them according to the integrative and distributive dimensions of labor–management bargaining. The Dual-Concern Model shows the five styles of handling interpersonal conflict and their re-classifications into the problem solving and bargaining dimensions.
Source : The International Journal of Organizational Analysis, 2002, Vol. 10, No. 4, pp. 302–326
A MODEL OF EMOTIONAL INTELLIGENCE AND CONFLICT MANAGEMENT STRATEGIES: A STUDY IN SEVEN COUNTRIES, M. Afzalur Rahim, Center for Advanced Studies in Management, Clement Psenicka, Youngstown State University
The integrative dimension-Integrating style minus Avoiding style represents a party's concern (high–low) for self and others.
The distributive dimension-Dominating style minus Obliging style represents a party's concern (high–low) for self or others.
These two dimensions represent the problem solving and bargaining strategies for handling conflict, respectively. A problem solving strategy represents a party's pursuit of own and others' concerns, whereas the bargaining strategy represents a party's pursuit of own or others' concerns.
A High–High use of the problem solving strategy indicates attempts to increase the satisfaction of concerns of both parties by finding unique solutions to the problems acceptable to them.
A Low–Low use of this strategy indicates reduction of satisfaction of the concerns of both parties as a result of their failure to confront and solve their problems.
A High–Low use of the bargaining strategy indicates attempts to obtain high satisfaction of concerns of self and providing low satisfaction of concerns to others.
The integrative dimension—Integrating style minus Avoiding style represents a party's concern (high–low) for self and others.
The distributive dimension Dominating style minus Obliging style represents a party's concern (high–low) for self or others. These two dimensions represent the problem solving and bargaining strategies for handling conflict, respectively.
A problem solving strategy represents a party's pursuit of own and others' concerns, whereas the bargaining strategy represents a party's pursuit of own or others' concerns.
A High–High use of the problem solving strategy indicates attempts to increase the satisfaction of concerns of both parties by finding unique solutions to the problems acceptable to them. A Low–Low use of this strategy indicates reduction of satisfaction of the concerns of both parties as a result of their failure to confront and solve their problems. A High–Low use of the bargaining strategy indicates attempts to obtain high satisfaction of concerns of self and providing low satisfaction of concerns to others. A Low–High use of this strategy indicates attempts to obtain the opposite. A positive score in the problem solving scale indicates joint gains, but negative scores indicate losses for both parties. A positive score in the bargaining scale indicates one's gain, but loss to the other party. A negative score indicates one's loss, but gain to the other party. Compromising is the point of intersection of the two dimensions, that is, a middle ground position where a party has an intermediate level of concerns for own and others.
Literature on organizational conflict shows that integrating style is positively associated with individual and organizational outcomes.
In general, a confrontation (integrating) style was related to the effective management of conflict, while forcing (dominating) and withdrawing (avoiding) were related to the ineffective management of conflict. A confrontation style dealing with intergroup conflict was used to a significantly greater degree in higher than lower performing organizations. Emotionally intelligent employees are better able to negotiate and effectively handle their conflicts with organizational members. A recent study shows that a supervisor's referent power base was positively associated with subordinates' problem solving strategy, which in turn, was positively associated with their job performance. Referent power base was negatively associated with bargaining strategy, which in turn, was negatively but non significantly associated with job performance. It is suggested that a supervisor's motivation to enhance performance and goal attainment will encourage subordinates to use more problem solving strategy and less bargaining strategy in managing conflict.
By using their own emotional competencies managers can encourage subordinates to enhance their problem solving strategy. The perception of subordinates of their supervisors' use of these skills may have compound positive impact on the subordinates' problem solving strategy of managing conflict and job performance. Therefore, the challenge for a contemporary organization is to enhance the emotional intelligence of their managers. Managers may be trained to enhance their EQ so that their subordinates are encouraged to use more problem solving and less bargaining strategies of handling conflict. This will help the supervisors and subordinates to work together to attain goals. Improving managers' EQ would involve education and specific job-related training. Managers should also be encouraged to enhance their skills through continuous self-learning. Managers need emotional competence training which should "focus on the competencies needed most for excellence in a given job or role". Organizations should provide appropriate reinforcements for learning and improving employees' essential emotional competencies needed for specific jobs. Recent literature shows that learning organizations are providing ample opportunities to managers for continuous learning that should help to improve their EQ. Supervisors and employees should also be trained to use problem solving and generally not to engage in win−lose or bargaining strategy of handling conflict. To attain this goal, training in conflict management of employees and supervisors and appropriate changes in organization design and culture would be needed .
Education and training may be of limited value when it comes to improving supervisors' EQ. Organizations may have to adapt the policy of recruiting managers with vision and charisma who are likely to be high on EQ. There should also be appropriate changes in the organization design which would require creating flatter, decentralized, and less complex structures. Also there should be appropriate changes in organizational culture that provides rewards for learning new behaviors, ethics and morality, and continuous questioning and inquiry. These changes in the organization design and culture will encourage managers and employees to acquire competencies needed for improving their job performance and effectiveness.
- Integrating – Win-Win Solution (high concern for self and others) style involves openness, exchange of information, and examination of differences to reach an effective solution acceptable to both parties. It is associated with problem solving, which may lead to creative solutions.
- Obliging – Lose-Win (low concern for self and high concern for others) style is associated with attempting to play down the differences and emphasizing commonalities to satisfy the concern of the other party.
- Dominating – Win-Lose (high concern for self and low concern for others) style with forcing behavior to win one's position.
- Avoiding - Lose-Lose (low concern for self and others) style has been associated with withdrawal, buck-passing, or sidestepping situations.
- Compromising (intermediate in concern for self and others) style involves give-and-take whereby both parties give up something to make a mutually acceptable decision.
Integrative and Distributive Dimensions. It has been suggested by researchers that further insights into the five styles of handling interpersonal conflict may be obtained by organizing them according to the integrative and distributive dimensions of labor–management bargaining. The Dual-Concern Model shows the five styles of handling interpersonal conflict and their re-classifications into the problem solving and bargaining dimensions.
Source : The International Journal of Organizational Analysis, 2002, Vol. 10, No. 4, pp. 302–326
A MODEL OF EMOTIONAL INTELLIGENCE AND CONFLICT MANAGEMENT STRATEGIES: A STUDY IN SEVEN COUNTRIES, M. Afzalur Rahim, Center for Advanced Studies in Management, Clement Psenicka, Youngstown State University
The integrative dimension-Integrating style minus Avoiding style represents a party's concern (high–low) for self and others.
The distributive dimension-Dominating style minus Obliging style represents a party's concern (high–low) for self or others.
These two dimensions represent the problem solving and bargaining strategies for handling conflict, respectively. A problem solving strategy represents a party's pursuit of own and others' concerns, whereas the bargaining strategy represents a party's pursuit of own or others' concerns.
A High–High use of the problem solving strategy indicates attempts to increase the satisfaction of concerns of both parties by finding unique solutions to the problems acceptable to them.
A Low–Low use of this strategy indicates reduction of satisfaction of the concerns of both parties as a result of their failure to confront and solve their problems.
A High–Low use of the bargaining strategy indicates attempts to obtain high satisfaction of concerns of self and providing low satisfaction of concerns to others.
The integrative dimension—Integrating style minus Avoiding style represents a party's concern (high–low) for self and others.
The distributive dimension Dominating style minus Obliging style represents a party's concern (high–low) for self or others. These two dimensions represent the problem solving and bargaining strategies for handling conflict, respectively.
A problem solving strategy represents a party's pursuit of own and others' concerns, whereas the bargaining strategy represents a party's pursuit of own or others' concerns.
A High–High use of the problem solving strategy indicates attempts to increase the satisfaction of concerns of both parties by finding unique solutions to the problems acceptable to them. A Low–Low use of this strategy indicates reduction of satisfaction of the concerns of both parties as a result of their failure to confront and solve their problems. A High–Low use of the bargaining strategy indicates attempts to obtain high satisfaction of concerns of self and providing low satisfaction of concerns to others. A Low–High use of this strategy indicates attempts to obtain the opposite. A positive score in the problem solving scale indicates joint gains, but negative scores indicate losses for both parties. A positive score in the bargaining scale indicates one's gain, but loss to the other party. A negative score indicates one's loss, but gain to the other party. Compromising is the point of intersection of the two dimensions, that is, a middle ground position where a party has an intermediate level of concerns for own and others.
Literature on organizational conflict shows that integrating style is positively associated with individual and organizational outcomes.
In general, a confrontation (integrating) style was related to the effective management of conflict, while forcing (dominating) and withdrawing (avoiding) were related to the ineffective management of conflict. A confrontation style dealing with intergroup conflict was used to a significantly greater degree in higher than lower performing organizations. Emotionally intelligent employees are better able to negotiate and effectively handle their conflicts with organizational members. A recent study shows that a supervisor's referent power base was positively associated with subordinates' problem solving strategy, which in turn, was positively associated with their job performance. Referent power base was negatively associated with bargaining strategy, which in turn, was negatively but non significantly associated with job performance. It is suggested that a supervisor's motivation to enhance performance and goal attainment will encourage subordinates to use more problem solving strategy and less bargaining strategy in managing conflict.
By using their own emotional competencies managers can encourage subordinates to enhance their problem solving strategy. The perception of subordinates of their supervisors' use of these skills may have compound positive impact on the subordinates' problem solving strategy of managing conflict and job performance. Therefore, the challenge for a contemporary organization is to enhance the emotional intelligence of their managers. Managers may be trained to enhance their EQ so that their subordinates are encouraged to use more problem solving and less bargaining strategies of handling conflict. This will help the supervisors and subordinates to work together to attain goals. Improving managers' EQ would involve education and specific job-related training. Managers should also be encouraged to enhance their skills through continuous self-learning. Managers need emotional competence training which should "focus on the competencies needed most for excellence in a given job or role". Organizations should provide appropriate reinforcements for learning and improving employees' essential emotional competencies needed for specific jobs. Recent literature shows that learning organizations are providing ample opportunities to managers for continuous learning that should help to improve their EQ. Supervisors and employees should also be trained to use problem solving and generally not to engage in win−lose or bargaining strategy of handling conflict. To attain this goal, training in conflict management of employees and supervisors and appropriate changes in organization design and culture would be needed .
Education and training may be of limited value when it comes to improving supervisors' EQ. Organizations may have to adapt the policy of recruiting managers with vision and charisma who are likely to be high on EQ. There should also be appropriate changes in the organization design which would require creating flatter, decentralized, and less complex structures. Also there should be appropriate changes in organizational culture that provides rewards for learning new behaviors, ethics and morality, and continuous questioning and inquiry. These changes in the organization design and culture will encourage managers and employees to acquire competencies needed for improving their job performance and effectiveness.
Five Dimensions of Emotional Intelligence
Modern view for Intelligence is not only limited on cognitive ability, but also on social intelligence, emotional intelligence, or practical intelligence or what scholars refer to as "street smarts" which indicates that an individual is not limited simply because he or she has a below average academic intelligence or IQ.
Researchers define the Emotional Intelligence as intrapersonal and interpersonal intelligences for the basis to make a conceptualization of EQ. Whereas intrapersonal intelligence is the ability to understand one's own emotions, interpersonal intelligence is one's ability to understand the emotions of others.
Goleman (1998) in his book Working with emotional intelligence. (New York: Bantum Books), found that EQ is twice as important than technical skills and IQ for jobs at all levels. He also reported that emotional intelligence plays an increasingly important role at the highest levels of a company. When he compared "Star performers with average ones in senior leadership positions, nearly 90% of the difference in their profiles was attributable to emotional intelligence factors rather than cognitive abilities".
Emotional intelligence refers to one's ability to be aware of one's own feelings, be aware of others' feelings, to differentiate among them, and to use the information to guide one's thinking and behavior. This definition consists of three categories of abilities: evaluation and expression of emotion, regulation of emotion, and using emotions in decision making. Other definition of EQ is "the capacity for organizing our own feelings and those of others, for motivating ourselves, and for managing emotions well in ourselves and in our relationships".
It appears that EQ relates to a number of non-cognitive skills, abilities, or competencies that influence an individual's capacity to deal with environmental demands and pressures.
EQ at work is a multidimensional construct consisting of five components, such as self-awareness, self-regulation, motivation, empathy, and social skills.
There are significant inter-correlations among the dimensions of EQ. These interrelationships should be explained so that leaders and managers can improve and use appropriate dimensions of EQ to increase their subordinates’ conflict management strategies and performance. It is possible that a change in one of the dimensions of EQ may affect other dimensions of EQ. Knowing how the various dimensions of EQ influence each other is important as each dimension may influence outcomes, not only directly but also through the mediation of its effects on other dimensions of EQ.
Source : The International Journal of Organizational Analysis, 2002, Vol. 10, No. 4, pp. 302–326
A MODEL OF EMOTIONAL INTELLIGENCE AND CONFLICT MANAGEMENT STRATEGIES: A STUDY IN SEVEN COUNTRIES, M. Afzalur Rahim, Center for Advanced Studies in Management, Clement Psenicka, Youngstown State University
In order to understand the emotional processes and deal with them effectively, we can review the model of emotional intelligence and conflict management strategies. From the model, one needs to have self-awareness and self-regulation. Empathy and social skills involve one's ability to perceive others' emotions, feelings, and needs and help others to regulate their emotions to achieve desirable goals. Motivation is needed to help an individual to remain focused for attaining goals. Several studies reported that self-awareness is an essential ability for enhancing managerial effectiveness.
Self-awareness is also a prerequisite for self-regulation, empathy, and social skills.
In workplace self-awareness positively influences self-regulation, empathy, and social skills; and self-regulation, in turn, influences empathy and social skills. Motivation is necessary for attaining goals so that social competence, such as empathy and social skills, help an individual to remain focused and attain goals.
But in some cases, negative relations among these dimensions are possible. For example, self-awareness may decrease motivation in situations where one realizes that goal attainment is difficult or impossible.
Researchers define the Emotional Intelligence as intrapersonal and interpersonal intelligences for the basis to make a conceptualization of EQ. Whereas intrapersonal intelligence is the ability to understand one's own emotions, interpersonal intelligence is one's ability to understand the emotions of others.
Goleman (1998) in his book Working with emotional intelligence. (New York: Bantum Books), found that EQ is twice as important than technical skills and IQ for jobs at all levels. He also reported that emotional intelligence plays an increasingly important role at the highest levels of a company. When he compared "Star performers with average ones in senior leadership positions, nearly 90% of the difference in their profiles was attributable to emotional intelligence factors rather than cognitive abilities".
Emotional intelligence refers to one's ability to be aware of one's own feelings, be aware of others' feelings, to differentiate among them, and to use the information to guide one's thinking and behavior. This definition consists of three categories of abilities: evaluation and expression of emotion, regulation of emotion, and using emotions in decision making. Other definition of EQ is "the capacity for organizing our own feelings and those of others, for motivating ourselves, and for managing emotions well in ourselves and in our relationships".
It appears that EQ relates to a number of non-cognitive skills, abilities, or competencies that influence an individual's capacity to deal with environmental demands and pressures.
EQ at work is a multidimensional construct consisting of five components, such as self-awareness, self-regulation, motivation, empathy, and social skills.
- Self-Awareness is associated with the ability to be aware of which emotions, moods, and impulses one is experiencing and why. This also includes one's awareness of the effects of his or her feelings on others.
- Self-Regulation refers to the ability to keep one's own emotions and impulses in check, to remain calm in potentially volatile situations, and to maintain composure irrespective of one's emotions.
- Motivation represents the ability to remain focused on goals despite setbacks, to operate from hope of success rather than fear of failure, delaying gratification, and to accept change to attain goals.
- Empathy refers to one's ability to understand the feelings transmitted through verbal and nonverbal messages, to provide emotional support to people when needed, and to understand the links between others' emotions and behavior.
- Social Skills is associated with one's ability to deal with problems without demeaning those who work with him or her, to not allow own or others' negative feelings to inhibit collaboration, and to handle affective conflict with tact and diplomacy.
There are significant inter-correlations among the dimensions of EQ. These interrelationships should be explained so that leaders and managers can improve and use appropriate dimensions of EQ to increase their subordinates’ conflict management strategies and performance. It is possible that a change in one of the dimensions of EQ may affect other dimensions of EQ. Knowing how the various dimensions of EQ influence each other is important as each dimension may influence outcomes, not only directly but also through the mediation of its effects on other dimensions of EQ.
Source : The International Journal of Organizational Analysis, 2002, Vol. 10, No. 4, pp. 302–326
A MODEL OF EMOTIONAL INTELLIGENCE AND CONFLICT MANAGEMENT STRATEGIES: A STUDY IN SEVEN COUNTRIES, M. Afzalur Rahim, Center for Advanced Studies in Management, Clement Psenicka, Youngstown State University
In order to understand the emotional processes and deal with them effectively, we can review the model of emotional intelligence and conflict management strategies. From the model, one needs to have self-awareness and self-regulation. Empathy and social skills involve one's ability to perceive others' emotions, feelings, and needs and help others to regulate their emotions to achieve desirable goals. Motivation is needed to help an individual to remain focused for attaining goals. Several studies reported that self-awareness is an essential ability for enhancing managerial effectiveness.
Self-awareness is also a prerequisite for self-regulation, empathy, and social skills.
In workplace self-awareness positively influences self-regulation, empathy, and social skills; and self-regulation, in turn, influences empathy and social skills. Motivation is necessary for attaining goals so that social competence, such as empathy and social skills, help an individual to remain focused and attain goals.
But in some cases, negative relations among these dimensions are possible. For example, self-awareness may decrease motivation in situations where one realizes that goal attainment is difficult or impossible.
Supervisory Power
It is often that employee leave the job not because they do not like the job, but merely because they do not like the boss/ supervisor. Their intention to leave the job is increasing as they have unavoidable conflict with the supervisor, or maybe because the managers act bossy and forgetting to strike a balance between reward and punishment. This article discuss on the supervisory power, conflict/ problem solving and intention to leave the job.
Power is defined as the ability of a party to modify or control the behavior, attitudes, opinions, objectives, needs, preferences, and values of another party. Several classifications of leader or supervisory power have been set forth, but the bases of power taxonomy suggested by French and Raven (1959) in their writing on The bases of social power. In D. Cartwright (Ed.), Studies in social power (pp. 150–167. Ann Arbor, MI: Institute for Social Research).
The French–Raven power bases can be classified as Position and Personal Power Bases.
Position Power Bases:
Position Power. Managers may be encouraged to provide various kinds of performance contingent rewards to their subordinates. This can be done by granting managers for the power they need to reward subordinates for their contributions to the organization. In order to use this power effectively, the supervisors will require appropriate training. Supervisors can increase their legitimate power if they follow policies and procedures consistently and provide instructions, guidance, and advice unambiguously.
Personal Power. The challenge of the contemporary organizations is to enhance managers'
personal power base. Unfortunately, there is no easy way of achieving good results in this
respect. In order to obtain desired results, there have to be changes at the individual and
organizational levels. Improving managers' expert power would involve basic education and
specific job-related training. Managers should also be encouraged to enhance their skills through continuous self-learning. They may also need appropriate job experience to build on this power base. Supervisors who are deficient on referent power base may be provided human relations training so that they learn to be empathetic to the subordinates' needs and feelings, treat them fairly and ethically, and present their interests to higher level managers when there is a need to do so. Organizations should provide appropriate reinforcements for learning and improving their referent and expert power bases. Education and training may be of limited value when it comes to improving referent power base. Organizations may have to adapt the policy of recruiting managers with vision and charisma who are likely to bring an adequate referent power base. The challenge of the contemporary organization is also to encourage the use of the problem solving strategy of handling conflict with supervisors. Employees should also be trained not to engage in win−lose or bargaining strategy of managing conflict. This can be done by strengthening the integrating conflict-management style and discouraging the use of an avoiding style. To attain this goal, training in conflict management of employees and supervisors and
appropriate changes in organization design and culture would be needed.
Researchers suggested ways of using power bases in combination because it is believed that one power source may evolve into another. A change in the perception of one power base may affect the perceptions of other power bases. Knowing how power bases influence each other is important as each power base may influence outcomes, not only directly but also through the mediation of its effects on other power bases. The position power base influences the personal power base, which in turn, influences criterion variables. Supervisors who use a performance-contingent reward power base as well as the legitimate power base may be perceived by their subordinates as competent as well as friendly, considerate, and fair.
Managers with referent power make meaning for others and give them a sense of purpose. They are able to generate trust, openness and respect by using these same qualities in their interactions with others. Without these, leadership qualities associated with referent
power, other power bases may not be very effective in changing the behaviors of subordinates. In general, managers should be discouraged from using coercive power except under special circumstances. Guidelines for the use of performance-contingent coercive power by supervisors should be clearly spelled out by an organization. Failed in implementing this coercive power properly may increase the intention of the employees to leave the organization. The perception of subordinates of their supervisors' use of reward, legitimate, expert, and referent power bases may have a positive impact on the subordinates' problem solving conflict-management strategy and may reduce the intention of the employees to leave a job.
Therefore, the challenge of a contemporary organization is to enhance these power bases of their managers. Managers may be trained to use their position and personal power bases effectively so that their subordinates are encouraged to use more integrating and less avoiding styles (i.e., problem solving strategy) of handling conflict with supervisors and to reduce the intention to leave a job.
Power is defined as the ability of a party to modify or control the behavior, attitudes, opinions, objectives, needs, preferences, and values of another party. Several classifications of leader or supervisory power have been set forth, but the bases of power taxonomy suggested by French and Raven (1959) in their writing on The bases of social power. In D. Cartwright (Ed.), Studies in social power (pp. 150–167. Ann Arbor, MI: Institute for Social Research).
The French–Raven power bases can be classified as Position and Personal Power Bases.
Position Power Bases:
- Coercive power is based on subordinates' perception that a superior has the ability to punish them if they fail to conform to his or her influence attempt.
- Reward power is based on the perception of subordinates that a superior can reward them for desired behavior.
- Legitimate power is based on the belief of the subordinates that a superior has the right to prescribe and control their behavior.
- Expert power is based on subordinates' belief that a superior has job experience and special knowledge or expertise in a given area.
- Referent power is based on subordinates' interpersonal attraction to and identification with a superior because of their admiration or personal liking of the superior.
Position Power. Managers may be encouraged to provide various kinds of performance contingent rewards to their subordinates. This can be done by granting managers for the power they need to reward subordinates for their contributions to the organization. In order to use this power effectively, the supervisors will require appropriate training. Supervisors can increase their legitimate power if they follow policies and procedures consistently and provide instructions, guidance, and advice unambiguously.
Personal Power. The challenge of the contemporary organizations is to enhance managers'
personal power base. Unfortunately, there is no easy way of achieving good results in this
respect. In order to obtain desired results, there have to be changes at the individual and
organizational levels. Improving managers' expert power would involve basic education and
specific job-related training. Managers should also be encouraged to enhance their skills through continuous self-learning. They may also need appropriate job experience to build on this power base. Supervisors who are deficient on referent power base may be provided human relations training so that they learn to be empathetic to the subordinates' needs and feelings, treat them fairly and ethically, and present their interests to higher level managers when there is a need to do so. Organizations should provide appropriate reinforcements for learning and improving their referent and expert power bases. Education and training may be of limited value when it comes to improving referent power base. Organizations may have to adapt the policy of recruiting managers with vision and charisma who are likely to bring an adequate referent power base. The challenge of the contemporary organization is also to encourage the use of the problem solving strategy of handling conflict with supervisors. Employees should also be trained not to engage in win−lose or bargaining strategy of managing conflict. This can be done by strengthening the integrating conflict-management style and discouraging the use of an avoiding style. To attain this goal, training in conflict management of employees and supervisors and
appropriate changes in organization design and culture would be needed.
Researchers suggested ways of using power bases in combination because it is believed that one power source may evolve into another. A change in the perception of one power base may affect the perceptions of other power bases. Knowing how power bases influence each other is important as each power base may influence outcomes, not only directly but also through the mediation of its effects on other power bases. The position power base influences the personal power base, which in turn, influences criterion variables. Supervisors who use a performance-contingent reward power base as well as the legitimate power base may be perceived by their subordinates as competent as well as friendly, considerate, and fair.
Managers with referent power make meaning for others and give them a sense of purpose. They are able to generate trust, openness and respect by using these same qualities in their interactions with others. Without these, leadership qualities associated with referent
power, other power bases may not be very effective in changing the behaviors of subordinates. In general, managers should be discouraged from using coercive power except under special circumstances. Guidelines for the use of performance-contingent coercive power by supervisors should be clearly spelled out by an organization. Failed in implementing this coercive power properly may increase the intention of the employees to leave the organization. The perception of subordinates of their supervisors' use of reward, legitimate, expert, and referent power bases may have a positive impact on the subordinates' problem solving conflict-management strategy and may reduce the intention of the employees to leave a job.
Therefore, the challenge of a contemporary organization is to enhance these power bases of their managers. Managers may be trained to use their position and personal power bases effectively so that their subordinates are encouraged to use more integrating and less avoiding styles (i.e., problem solving strategy) of handling conflict with supervisors and to reduce the intention to leave a job.
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