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Course: HRM430
Sec: 01
Group: 07
Summer 2012

Submitted to:
Mr. Faisol Chowdhury

Submitted by:

Date of Submission:
August 5, 2012

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Organizational Conflict and Negotiation


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Letter of Transmittal
August 5, 2012
Mr. Faisol Chowdhury
Instructor, HRM 430
School of Business
North South University

Subject: Letter of Transmittal

Dear Sir,
It gives us immense pleasure to inform you that we, the members of Group 7 have successfully completed our
research study report on Organizational Conflict and Negotiation which you authorized us to undertake as
a part of our HRM 430 Course. We as individuals have put the maximum of our efforts on this study and the
outcome is due to a highly cooperative and hard working group effort. Therefore, we are confident of the
validity of this informative study.

Under this circumstance, we would be greatly helped if you kindly accept the result of our extreme hard work
and appreciate us for the future purposes.

If you have any enquires after reading the report you are welcome to contact us.

Thanking You,


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I. Declaration Statement
The entire report has been designed and conducted based exclusively on the notes and frameworks provided by Mr.
Faisol Chowdhury. Data with regards to the steps in analysis and interviews provided by Mrs. Farida Khatun, ex-
employer of Dragon Sweater and Spinning Ltd of Bangladesh. For some materials we search some website. We took
help from them. But we did not copy it from any other report or website and did not submit or did this report for
another course.
If you need any other information, feel free to contact with us-







From:
HRM430, Sec- 01, Group 7





















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II. Acknowledgement

This report is based on research study performed on the topic Organizational Conflict and Negotiation and it is
analyzed by researching an organization named Dragon Sweater and Spinning Ltd.
Without the help of an ex-employer of the organization this study may not have been completed within due time.
Therefore we would like to thank the following persons responsible for our success:

1. Mr. Faisol Chowdhury: without the help of our faculty, we would have never had the opportunity to perform a
detail study on this topic. Our faculty has very understood giving us ample amount of time to complete the study and
has guided us all the way from the beginning till the end. He gives efficient information on organizational conflicts
and negotiation. He has been very calm and assuring all this time. Therefore we acknowledge his support.

2. Mrs. Farida Khatun: an ex-employer of Dragon Sweater and Spinning Ltd and she has helped us a lot by
providing us the internal informations of that organization which could no be found from anybody who are existing
employers of the organization. As nobody prefers to deliver internal conflict related information where he/she
works. She is calm and cooperative enough and helped us in every way she could. We really felt comfortable talking
to her.






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III. Executive Summary
This report is on the topic Organizational Conflict and Negotiation, done as a requirement of our course study. For
this report we chose Dragon Sweater and Spinning Ltd of Bangladesh. In this report we have tried show our
finding from this organization by the help of an ex-employer.

We start our report first showing the objective of this project. To understand what are Organizational Conflict and
Negotiation, by this way we tried to point out how it is work within an organization. Then the complications of this
study that needed to be solved here. After that we show the importance of this study and why we need to do this for
our course requirement. Also we point out our limitation in this study that we tried to cope with. Later we
elaborately show which methods have been taken in order to collect, analyze and organize data.

Then we give you the company profile with brief history and companys mission, vision, services and how it is
doing business here in our country.

Now a days organizational conflict and negotiation has become a big issue. For Dragon Sweater and Spinning Ltd
of Bangladesh (DSSLB), organizational conflicts do not exist for too long as they implement their negotiational
steps as soon as possible.

We conclude this report by showing our analysis of the data founded from various theoretical sources and from our
interviewer who is an ex-employer of DSSLB. Finally we give the findings and solutions of the problems in data
analysis section. Elaborate analyses are shown in the following parts.

Conflict and Negotiations in RMG Sectors in Bangladesh
Abstract
The readymade garment RMG industry in Bangladesh has experienced an extraordinary progress over the last three
decades and become a firm increasing productiveness in Bangladesh. Playing a vital role in the economy in terms of
export earnings, employment generation, poverty alleviation and empowering the woman this industry has a major
impact on the nations economy. For further development, Bangladesh needs to stress on the social issues, labor
relations and compliances with codes of conduct. This paper is based on descriptive and inferential study. The paper
suggests ways an RMG industry can face conflict and deal with regarded negotiation effectively.
Keyword
RMG, conflict, negotiation, organization





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Table of Content:

TOPICS PAGE NUMBER
1.Introduction....................................................................................................... 8
-1.1.What does Organizational Conflict mean? 9
-1.2. What does Negotiation mean? 10
-1.3. Our Selected Organization 10
-1.4. DSSLBs owners and management 10
-1.5. History 11
-1.6. Organizations Vision and Mission 11
-1.7. Companys Capital and Target 11
2.Objective............................................................................................................ 12
3.Scope................................................................................................................... 12
4.Methodology....................................................................................................... 12
5.Limitations.......................................................................................................... 14
6.Literature Review............................................................................................... 14
7.Data Review and Analysis


- 7.1.What causes conflict in an organization? 16
- 7.2.Conflict Control & Organizational Strategy 17
- 7.3.Negotiation techniques used by the organizations 17
- 7.4.Quantum Skills 19
- 7.5.Conflict Management 20
- 7.6.Conflicts and their solution

20
- 7.7.The ways DSSLB negotiate with the conflicts 20
8.Data Findings Presentation and Analysis..........................................................

21
9.Recomendation...................................................................................................

23
10.Conclusion....................................................................................................... 23
11.Fiture Research Option..................................................................................... 24
v)Reference List...................................................................................................

25
vi)Appendix........................................................................................................ 26
vii)Contact Page.................................................................................................. 27









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1. Introduction
According to Lingo (2012), negotiations are often conceptualized as means of managing or resolving conflicts. Yet
just as the process of conflict can be a solution of conflict in some cases, it may be the source of conflict in others.
Like, in order to resolve a certain conflict, it might not be possible to satisfy all the parties involved, so decision has
to be made regarding which parties to give more preference to, so it discriminates the parties who are deprived from
solving their conflict and as a result those unfortunate parties problems increases and as a result the same
negotiation which was used to alleviate the conflict in some cases as in fact caused conflict in other cases. It happens
due to tough business decisions. This paper features how the contextual features in the organizations affect
negotiation process and outcomes, and how these processes in turn can become a source or solution of inter-
organizational conflict. It is important to understand the interactions between the unfolding interactions (the subject
of considerable negotiation process research) and the macro features of the organizations, such as formalization of
roles, culture or party representation. Key concepts include some aspects like relational aspects of negotiation
process and outcomes are very important.
Inter-organizational negotiations present choices regarding who will negotiate on behalf of the organization. Despite
the critical resources at stake, little is known about the relative pros and cons of negotiating alone for ones own
interests, sending an agent or relying on a team.
Constrains and opportunities centers on three domains: the knowledge and shills the parties bring to bear on the
negotiation; the potential development of cross-party identification, trust or relational conflict; and co-ordination and
communication.
To minimize costly forms of conflict (such as strikes) and seek win-win solutions to disagreements with labor force
Labor relations is the skills used by the managers and union leaders. In recent years, labor unrest in RMG sector of
Bangladesh has been a matter of serious concern.
The RMG industry of Bangladesh started its modest journey in late 1970s and within three decades, it has been a
flourishing sector. Contribution of the RMG sector in national economy is great. It is the highest foreign exchange
earning sector. The readymade garments (RMG) industry of Bangladesh has contributed extensively to the export
oriented growth of the country. Too much of the nations fortune is riding on this one sector. It would be interesting
to note in this connection that, from the very outset, most RMG factory owners tried their best to keep the factory
units as in-formalized as possible, because that would provide them with greater flexibility in terms of labor
management, unit production and working hours, without significant social obligations to their workforce. Four
areas regarding labor unrest in the RMG sector such as i) investigating the incidents of labor unrest, ii) maintaining
law and order situation, iii) bridging gap between owners and workers and iv) representation of the work-force in the
decision-making process are identified where public and private sector can work together to solve the problem.
Organizational Conflict and Negotiation is now a big issue in the present worlds job sector. It is vital that every
employer and employee follows the procedures that have been developed for diminishing organizational conflicts
and better negotiation. In addition, it is must be in the mind of employers and employees that people who are
coming for work may not understand the organizational situations where different types of conflicts easily can take
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place. It is essential for all employer and employees to maintain a friendly relationship with each other so that the
work place does not become a place of agony to the organizational people.
We are analyzing a sweater manufacturing company named Dragon Sweater & Spinning Limited of Bangladesh
for preparing our assigned report on Organizational Conflict and Negotiation. We have to find some
organizational conflicts and as well as implemented negotiations in the organization to come up with complete
theoretical and practical idea on the topic.
Organizational Conflict and Negotiation is now a big issue in the present worlds job sector. It is vital that every
employer and employee follows the procedures that have been developed for diminishing organizational conflicts
and better negotiation. In addition, it is must be in the mind of employers and employees that people who are
coming for work may not understand the organizational situations where different types of conflicts easily can take
place. It is essential for all employer and employees to maintain a friendly relationship with each other so that the
work place does not become a place of agony to the organizational people.
We are analyzing a sweater manufacturing company named Dragon Sweater & Spinning Limited of Bangladesh
for preparing our assigned report on Organizational Conflict and Negotiation. We have to find some
organizational conflicts and as well as implemented negotiations in the organization to come up with complete
theoretical and practical idea on the topic.

1.1.What does Organizational Conflict mean?
Organizational 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. Some are:
Dispites over how revenues should be divided,
How the work should be done,
How long and hard people should work.
Disagreements among:
Individuals,
Departments, and
Between unions and management.
There are subtler forms of conflict involving:
Rivals,
Jealousies,
Personality clashes,
Role definitions, and
Struggles for power and favor.


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1.2.What does Negotiation mean?
According to Lingo (2012), Negotiations are often conceptualized as a means of managing or resolving conflict. Yet
just as the process of negotiation may be a solution to conflict in some cases, it may be a source of conflict in others.
It is thus important to understand the link between unfolding interactions between organizational conflicts and
negotiation (the subject of considerable negotiation process research) and more internal situation of organizations,
such as formalization of roles, culture, or party representation, working environment, employer-employee
relationship and so on.

1.3.Our Selected Organization
Dragon Group has expanded and has grown over the time and in the last 30 years the group has invested heavily in
different sectors and also in the backward linkage sector of textile industry to reduce costs and delivery of
manufactured sweater products from Bangladesh. Today the group produces 40 % of its yarns produced from its
own spinning and sweater manufacturing division and has the capacity to export 10 million pieces of sweaters per
annum which earns more than $ 60 million US dollars from exports. Dragon Sweater and Spinning is a 100%
composite export oriented spinning and sweater manufacturing facility, having its own 20000 spindle Acrylic
Spinning plant and with its own sweater manufacturing project with annual capacity of approximately 4 million
pieces of sweater. The company is supplying sweaters to worlds biggest renowned buyers like Wal-Mart, C&A,
Zara and Primark. The company is situated in Comilla in its own industrial complex and employs huge number of
local people in its manufacturing facilities. Most of the machineries have been imported from world class suppliers
from Germany, Italy and other European countries. Due to rising demand of goods produced from its composite
project the company plans to expand the spinning and Sweater manufacturing power to meet the rising demand of
acrylic and other yarns from the group itself and also to meet the demand of rising sweater industry. The company
has a paid up capital base of 15 Crore taka and is in the process of raising Paid up Capital to 40 Crore Tk by issuing
shares in the Primary Market. The company is in the process of seeking permission to Raise Capital from the
Bangladesh Capital market. DSSLB will use the process for further expansion.

1.4.DSSLBs owners and management
The group is headed by Mr. Mostafa Golam Quddus who is considered as the Father of Bangladeshs Sweater
Industry for his pioneering role in developing the sweater industry of Bangladesh. His contribution has earned him
many export trophies and established himself as Commercially Important Person in Bangladesh. He was also elected
twice as the President of BGMEA. He is also the current Chairman of Rupali Insurance Company Ltd. Under his
guidance and able leadership Dragon Group continues to excel in its sectors and is contributing to the social and
economical development of the country. Mr. Mostafa Quamrus Sobhan a business graduate from Nottingham Trent
University U.K is working as the Managing Director of the Group. And Ms Fauzia Quamrus Tania also a Business
graduate from Glasgow University U.K. is working as the Director Operation.


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1.5.History
2011- Process begins of Initial public offering of Dragon Sweater and Spinning
2009- Completion of Dragon tower 2 A fifteen storied Commercial building with 200000 square feet area.
2004- Establishment of Imperial Sweater Bangladesh ltd A fine gauze sweater manufacturing facility in Dhaka.
1999- Establishment of Dragon Sweater and spinning Mills ltd. A composite Spinning and Sweater Industry in
Comilla was established with an area of 500000 square feet.
1994- Initial public offering and listing of Rupali Insurance company limited in both Dhaka and Chittagong stock
exchange.
1993- Completion of the companies own 18 Storied Production facilities with 300000 square feet area.
1991- Setting up of Dragon Sweater Bangladesh Limited the largest sweater manufacturing facility in Bangladesh.
1988- Dragon Groups Chairman sets up one of the first general Insurance Company in the country Rupali
Insurance Company limited with other stake holders.
1987- Setting up the first Socks manufacturing facility in Bangladesh. Perag Socks Industries ltd.
1985- Establishment of first sweater project in the country with technical collaboration from China, Cheung Hing
Sweater Industries.

1.6.Organizations Vision and Mission
Vision is to be a global leader in sweater production with a clean focus on expansion of our industries with most
modern and sophisticated machineries.
Mission is to deliver superior value to our final customers, our valued shareholders, our employees and our society
at large.

1.7.Companys Capital and Target
Today the group produces 40 % of its yarns produced from its own spinning and sweater manufacturing division and
has the capacity to export 10 million pieces of sweaters per annum which earns more than $ 60 million US dollars
from exports.
Due to rising demand of goods produced from its composite project the company plans to expand the spinning and
Sweater manufacturing power to meet the rising demand of acrylic and other yarns from the group itself and also to
meet the demand of rising sweater industry.
Vertical integration into backward linkage industries has been the Contribution factor in the development of Dragon
Groups success story. Establishing the first sweater project in the country in 1985 with technical collaboration and
manpower support from China established the seed of both Dragon Group and also the sweater industry of
Bangladesh.
Its successful implementation of spinning and sweater manufacturing project in the backward sector has helped it to
produce from raw fiber to complete sweater for international export markets. Thus helping it to cut costs and
produce efficiently.
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2. Objective

Primary Objective:
The primary objective of this report is to serve as a compilation of knowledge about organizational conflicts and
negotiations by researching a manufecturing organization named Dragon Sweater and Spinning Ltf of
Bangladesh.

Research Objective:
To understand what Organizational is Conflict and Negotiation and how it does is occuring and impacting in
organizations.
To learn about the theories regarding Organizational Conflict and Negotiation and how to implement the theories in
practical cases.
To know what kinds of problems are faced by the workers in the organization because of Conflicts and what
happens if organizational Negotiation is poor.
To understand what kind of situations arise because of organizational conflicts and the what role is played by the
negotiators in an organization.

3. Scopes
As per our research, we were instructed to select any local manufacturing company and for that we have chosen
Dragon Sweater and Spinning Ltd of Bangladesh.While we went to the organizatins office in Malibagh, we did
not get any adequate information related to Organizational Conflicts and Negotiations. We got an ex-employer
named Mrs. Farida Khatun from personal communication and took her interview. We found that this organization
can use some scopes for developing its organizational conflicting situations which will bring wellbeing of their
workers and also for the company. DSSLB has the scope to use modern Organizational Negtiating system. In
DSSLB, employees dont know the labor laws and conflict rising situational facts as most of the worker is not
educated. So they have the scope to make out inform or train the employees by instructing the labor law and proper
instruction regarding conflict avoiding facts to the employees for ensuring better work environment. If DSSLB can
fulfill these scopes then it will be very easy for them to avoid organizational conflicts and implement better
negotiations in the organization.


4. Methodology

Data Collection
For the assessment, both primary and secondary data was collected. For this we interviewed one company through
using a structured questionnaire. Personal interview technique was applied while fill up the questionnaire on
respondents. The sample garments company which is interviewed is given in a chart-
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A brief Introduction of the sample company
Dragon Group (1985-2012 continued)
Dragon Sweater and Spinning Limited Bangladesh
The company is supplying sweaters to worlds biggest renowned buyers like Wal-Mart, C&A, Zara and
Primark.
22,Malibagh,Dhaka


Sampling plan
Dragon Sweater and Spinning Limited Bangladesh is constituted as the study area, because of convenience of the
field work and easy communication. A sample consisting 20 employees and employers was selected. Personal
interview and phone conversation was the techniques used while conducting the survey. For the crisis condition of
Bangladesh it was difficult to collect data form more samples. Any kind of personal biasness information was
avoided while taking true information.

Data analysis
The data was analyzed by averaging the response of the sample. Most of the analysis and discussions of this study
have been made on the basis of the information obtained from the interview with the questionnaires. Besides,
observation of the interviewers has also been an important component of analysis and discussion.

Analysis Technique & research
In preparing this report, the approach being used is as followed:













Select the sample
Conducting the survey
Sorting the information
Analysis and evaluation
Presenting in research
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5. Limitations

Every company has some limitations which bring some predicament for doing any kind of research on those
organizations to make educational reports on relatively internal parts of any organization. That is why we have faced
some limitations while we researched on Dragon Sweater and Spinning Ltd of Bangladesh. The limitations are:
Basically organizations do not want to expose their internal conflicts to people, so if we want to analyze their
conflicts and negotiations they do not let us to do any survey regarding this.
On the other hand, internal people willingly do not provide any kind of news about conflicts occurring among them
because of own companys reputation.
Lack of experience in this field.
Lack of proper authority to conduct the interview program.

6. Literature Review
In pre- modern societies more violence and open conflicts (murder, riot, local wars, and assault) were marked than
modern times but with the development of organization conflict transformed from one extent to another. An
organization is usually acknowledged as the site of a good deal of conflict and contestation. For the last hundred
years it was observed abundant evidence for conflict of various kinds from absenteeism to zoophobia. It was found
by research that there has been a wide variation in the kind as well as in the intensity of conflict in the organization.
Scalars frequently observed conflict in organizations as endemic, though they sometimes had a limited conception
regarding this. In OB as it is constituted today, conflicting behavior is perhaps most frequently labeled
organizational misbehavior (Vardi and Weiner, 1996; Ackroyd and Thompson, 1999). However, a variety of other
labels, such as workplace deviance (Robinson and Bennett, 1995; 1997),antisocial behavior (Giacone and
Greenburg, 1997) dysfunctional behavior (Griffin et al., 1998) are also used. Clearly, some of this writing implies
that employees recognize differences between their interests and those of their employers, but that they are mistaken
or their perspective on this is somehow wrong ie deviant, antisocial or dysfunctional. Some of this work
explicitly denies that conflict arises from differences of interests that are rationally pursued by groups of employees.
Recognition of conflicting interests between individuals and groups in organizations is difficult to avoid by anyone
familiar with them. Moreover Frederick Taylor (1911), noticed conflict over the intensity of work, and made it basic
to his policies. He noticed the tendency to economy the effort among workers. However, Taylor assumed that there
was an underlying correspondence of the interests between the ordinary employee and the managers. He thought that
if the productivity of labor could be increased by work study and kindred techniques, and some of this increase in
value shared with the worker, cooperative activity would proceed. Conflict arises in an organization for various
causes. In general it is the product of different personalities and individual incompatibility, bad management and so
on. Zald and Berger (1978) analyzed the appearance of such things as organizational insurgency movements. More
recent writers are also very well aware of the politics of the workplace taking particular forms in appropriate
circumstances (Buchanan and Badham, 1999). At the deepest analytical level, however, the root of conflict has been
seen as arising from capitalist economic organization. Another area of conflict and contestation in organizations that
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has been widely noted concerns the groups that control companies (Zald, 1969). Which groups are represented on
boards can be decisive in deciding not only the strategy that a company adopts, but the uses to which assets are put
and the distribution of rewards between groups. This makes much of what a board does inherently political and the
boardroom a likely site for conflict as different groups contest for ascendancy.
However organizations are not fixed entities and the relationships between the groups that comprise them are being
continuously negotiated, and that conflict (admittedly often on a modest scale) is the continuous accompaniment of
this.
Kotler [1999] defines the negotiation process as a process where two or more parties exchange goods or services and
attempt to arrive at mutually agreeable terms.
On the other hand, Tipler [2005] defines it as a journey where you need to know both your starting point and your
destination. Peters [1998] defines the process of negotiation as a process involving both concealing and revealing. In
other words, he refers to it as a process of gradual unfolding of the maximum and minimum expectations of the
parties concerned. The Oxford dictionary defines it as conferring with a view to compromise or agreement,
transferring to another for a consideration, converts into cash or notes get or give value for money. Interestingly, it
refers to the concept of value for money, not merely the exchange of goods and services. According to Lee and
Dobler[1992] marketers who find themselves in bargaining situations need certain traits and skills to be effective.
The most important are perception and planning skills, knowledge of subject matter being negotiated, ability to think
clearly and rapidly under pressure and uncertainty, ability to express thoughts verbally, listening skills, judgment
and general intelligence, integrity, ability to persuade others, and patience.

In other words a negotiator has more control over his working for the oppositors-
1. Negotiator works for the oppositors needs
2. Negotiator lets the oppositors work for his work
3. Negotiator works for the oppositors & his own needs
4. Negotiator works against his needs
5. Negotiator works against the oppositors needs
6. Negotiator works against the oppositors & his own needs

Mc Cormack [2000] speaks of the what, where, when, why and how of negotiations. When the time comes to
negotiate, certain principles do apply he says. Also according to him, all five of the question asked above should be
answered during the course of negotiation. Each can be expanded, limited or traded off as the negotiation dictates.
He further documents advice to potential negotiators. He further documents advice to potential negotiators. These
are given in the following table.




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Table 03: Advise to Potential Negotiators


7. Data Review and Analysis

7.1. What causes conflict in an organization?
The research has found out that conflict can be viewed from two broad perspectives in an organization. They are:
a) Employee point of view
b) Employer/labor point of view (in case of RMG sector)
Conflicts will occur in any organization. When management understands the reasons behind a conflict and how
serious the conflict is, a more positive outcome results. The two identified five levels or styles of dealing with
conflict and called these the Thomas-Kilmann Conflict Mode Instrument. In Garments X conflicts raised can be
integrated with this theory:
a) From Employee point of view
At this level, a labor takes a position and sticks to it. From a competitive level of conflict resolution company
proprietors and higher management often negotiate from a competitive level of conflict resolve. With the
competitive level, the leader states what he wants with the competitive level. The leader is persuasive and has the
knowledge to back up the request. This style is used for fast decisions or when there is a lot of resistance to change.
The union leader who uses this level of conflict resolution offends those in the management team.
When there is a history of extreme conflict in an organization high level management needs to deem all the wants
rose by the labors, and is persuaded to come to a solution where all the needs are so far fulfilled. It occurs when long
term conflicts go on.
Where a deadline is knocking at the door and the conflict prevents completing project really important employers
and employees are persuaded to come to a solution in a win-win situation. Here both of them are kept satisfied by
compromising some terms from both sides.
At this level management simply avoids the conflict when it is not constructive. The labors also do not raise their
expectations as the issues are associated with trivial aspects.



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b) From employer point of view:
It is the job of an employee to meet the expectations of his manager, but if those expectations are misunderstood,
conflict can arise. When a labor works 8 hours a day, but management urges him to work overtime for 2 more hours
conflicts may arise.
When departments are late in responding to information requests, or they are withholding information on purpose,
competition among sewing department and rechecking department can cause them to withhold any important
information like change in production style. It is best to address the situation immediately with a personal meeting
with both sides to resolve the situation. One person may misunderstand information, and that can trigger a series of
conflicts. For example, if the production manager misunderstands the product manufacturing goals, then the sales
manager may not have enough products to sell.Organizational conflict might arise from frustration. One source of
frustration is a lack of accountability. If something has gone wrong, and no one is willing to take responsibility for
the problem, this lack of accountability can start to permeate throughout the entire company until the issue is
resolved.

7.2. Conflict Control & Organizational Strategy
The research has found that when people disagree about the facts of the situation or how those facts should be
interpreted or applied Task conflicts occurs. Interpersonal conflict happens when people do not get along on a
personal level. Procedural conflict occurs when people segment the same goals but be injurious to how they
should be achieved. Conflict often occurs when people feel threatened somehow. The threat may be toward the
perceived territory, status, rights, property or value system of the person or group.
Managers continuously have the choice of simply imposing their authority or ignoring the employees' concerns
because they have more power than employees,. If this power used too often or in ways that seem random, it can
isolate the work force. Effective managers depend on authority only carefully and prefer to resolute conflict through
either concession or collaboration.
When compromised, both of you get part of what you want and give up part of what you want. Compromise can
resolve a conflict but can also leave parties unhappy with the results mutually. When managers collaborate with the
other side, they both tries to find a new and diverse solution that advantages them equally. Collaboration can result
in new and resourceful solutions that satisfy both sides and progress performance. Successful collaboration depends
on
The ability to listen and
Truly understand what the other side needs or wants

7.3. Negotiation techniques used by the organizations
The theories regarding negotiation techniques which are followed by Dragon Sweater and Spinning Ltd of
Bangladesh along with many other RMGs are the five As technique and the quantum skills.

The Five A's Technique
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Borisoff and Victor identify five steps in the conflict management process that they call the "five A's" of conflict
management: assessment, acknowledgement, attitude, action, and analysis. They assert that these five steps allow for
a sustained, ongoing process of problem-solving-oriented conflict management. The RMG companies follows the
five As model to overcome and solve the conflicts too since it is a systematic process on solving any kind of
conflict.
In the assessment step, the parties involved collect appropriate information regarding the problem. The parties
involved also choose which of the conflict-handling modes is most appropriate for the situation. The parties
collectively decide what is and what is not central to the problem. The parties involved also indicate areas in which
they may be willing to compromise, and what each party actually wants.
The acknowledgement step is one in which each party attempts to hear out the other. Acknowledgement allows both
parties to build the empathy needed for the motivation of a pragmatic solution to the problem. The
acknowledgement acts as feedback to the other party and it demonstrates that one understands (without necessarily
agreeing with) the other party's position. Acknowledgement goes beyond merely responding to what is said,
however; it involves actively encouraging the other party to openly communicate its concerns. This is aided by the
use of active listening techniques and overt, nonverbal encouragement.
The attitude step tries to remove the foundation for pseudo-conflict. Stereotypical assumptions about different,
culturally-based behaviors are uncovered. For example, a member of a high-context culture may misinterpret what a
member of a low-context culture says as being needlessly blunt or even rude. Conversely, a member of a low-
context culture may misinterpret what a person from a high-context culture says as being needlessly indirect or even
outright deceptive. Such communication variations (as the works of Edward Hall have explained) have little to do
with the actual intent or content of the messages, but represent instead culturally learned approaches to using
implicit versus explicit communication styles. Similarly, in the attitude step, one acknowledges differences in the
way that men and women are generally conditioned to communicate. Experts such as Borisoff and Merrill, for
example, have delineated clearly differentiated communication styles between men and women, which are
compounded by sex-trait stereotyping regarding issues of assertiveness, interruptive behavior, and perceptions of
politeness. Finally, in the attitude step, one analyzes potentially problematic variations in styles of writing, speaking,
and nonverbal mannerisms. Such differences may blur meanings. It is the role of the effective conflict participant to
maintain an open mind toward all parties involved.
The action step begins to actively implement the chosen conflict-handling mode. If the selected mode is the
problem-solving approach, the manager conveys the opportunity for a conflict resolution based on trust and ongoing
feedback on those points on which the parties have already agreed. Simultaneously, each individual evaluates the
behavior of the other parties (often, little more than subtle hints) to ascertain where potential trouble spots might
arise. Also, each individual must remain aware of his or her own communication style and general behavior. Finally,
all parties must stay alert to new issues that are raised and look for productive solutions.
In this last step participants decide on what they will do, and then summarize and review what they have agreed
upon. Part of the analysis step is to ascertain whether every participant's requirements have been addressed (and met,
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if possible). Finally, the analysis step initiates the impetus for approaching conflict management as an ongoing
process. Analysis enables participants to monitor both the short-term and long-term results of the conflict resolution.

7.4. Quantum Skills
Shelton and Darling suggest a new set of management skills, more appropriate for the ever-changing, conflict-ridden
contemporary organization specially the RMG in Bangladesh. They refer to these skills as the quantum skills. The
suggested managerial skills are derived from the field of quantum physics. These skills are a must when it comes to
resolving conflicts. The research has found out that these skills though not used formally as quantum skills are also
followed by the selected organization.
This skill is defined as the ability to see intentionally. When conflict occurs, managers must explore their own
assumptions about the parties and search for the underlying intentions that are creating the conflict. Each party must
then come to recognize the relationship between individual thought processes and perceptions, and set clear
intentions for positively resolving the situation.
This skill involves the ability to think paradoxically. Effective conflict resolution is a paradoxical process. "Win-win
solutions require paradoxical thinking. They require the ability to find a fully acceptable solution to divergent points
of view" (Shelton and Darling 2004, p. 30). In other words, collaborative solutions to conflicts that involve
diametrically-opposed positions are unlikely to be achieved through linear problem-solving processes and thus
require more unorthodox thinking.
This skill is defined as the ability to feel vitally alive. It is based on the premise that the level of organizational
conflict is influenced by the negative emotions pervasive throughout the business world. As schedules have become
more fast-paced and jobs have become more stressful, the level of organizational conflict has increased. Managers
committed to the quantum feeling technique of conflict management must train themselves to view even negative
events positively. They must challenge all parties in conflict to utilize creative, brain-storming techniques in an
effort to construct "impossible" win-win solutions.
This skill is the ability to know intuitively. Managers wishing to develop this skill must integrate times of relaxation
and reflection into their work routines. This skill focuses on staying mindful or aware of the organizational
environment. Managers involved in conflict situations must guide all parties towards a more centered response to the
negative emotions.
This skill is based on the ability to act responsibly. Quantum acting is predicated on the belief that everything in the
universe is a part of a complex whole in which each part is influenced by every other part. Therefore, a manager's
thoughts affect the entire organizational unit. Thus, if managers want to encourage more creative responses to
conflict, they must begin by modeling this behavior themselves.
This skill is the ability to trust life's process. This skill may be appealing to managers experiencing conflict. It
suggests that managers must simply "ride the rapids of conflict, fully participating in the dance without attempting to
actively manage the course of resolution" (Shelton and Darling 2004, p. 37). The organizational unit will eventually
self-organize.
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This skill is the ability to be in a relationship, specifically, "the ability to literally become so connected to another
that one can see the world through the other's eyes" (Shelton and Darling 2004, p.38). This skill provides the
foundation for all parties to learn from and understand each other. It is a relationship of continuous learning.

7.5. Conflict management
This set of skills is grounded in a new science: worldview. These skills provide a whole-brained alternative for
managing people and conflict.
Conflict management is an ongoing procedure. It entails continual communication and supervision. "Conflict-
handling behavior is not a static procedure; rather it is a process that requires flexibility and constant evaluation to
truly be productive and effective" (Borisoff and Victor 1998). For the RMG sector in Bangladesh where conflicts are
part of everyday life, a smart blend of the Thomas-Kilmann conflict mode resolution, the five As and the Quantum
skills are necessary.

7.6. Conflicts and their solution
In case of inter-organizational conflict although they do not always properly follow these techniques, but if they
did, the problems would have been much less. Even though DSSLB do not face problems frequently as their
competitor firms like Hamim group, thanks to their effective HR policies, their main problem is the inter-
organizational conflict among the employees. Dispute among wages arise when they vary from one production
section to another (spinning, sewing, stitching, pressing, packaging etc.). Similar thing can be said for the
departments, when HR executives and the marketing executives salary do not match. Even though they follow
closed pay system, such information does reach peoples ears in no time. This creates dissatisfaction and de-
motivation among the employees and this causes DSSLB to lose their valuable talents to their competitors in many
cases where the pay is equal and fair.
The solution here is obviously is ensuring equal pay practice. Internal and external equity must be maintained in
order to maintain harmonious relationship among the employers and employees.

7.7. The ways DSSLB negotiate with the conflicts
Negotiation in DSSLB is done to reach an understanding, resolve point of difference or produce an agreement upon
courses of action. Negotiation is a process where both Labor and Administration party involved in negotiating tries
to gain a solution for themselves with compromise.
The executives of DSSLB believes that to resolve a certain conflict, it might not be possible to satisfy all the parties
involved, so decision has to be made regarding which parties to give more preference to, so it discriminates the
parties who are deprived from solving their conflict and as a result those unfortunate parties problems increases and
as a result the same negotiation which was used to alleviate the conflict in some cases as in fact caused conflict in
other cases. It happens due to tough business decisions.
In DSSLB the negotiation is done according to the modern management. The negotiation process varies time to
time. The negotiation for salary and that of the negotiation for Overtime or vacations are not the same. Sometimes as
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humanity the management sacrifices certain things whereas most of the times the management wins as they possess
more bargaining power. However management also tries to take a win-win situation where the employees and the
employer both enjoy the benefits of the decision and sacrifices some of their aspects for the betterment of the both
parties and satisfaction. The negotiation processes those are used in negotiation in DSSLB are as follows.
Distributive Negotiation is used by the RMGs .Soft distributive negotiation where parties are willing to make
concession for other party if required for the betterment of the company. On the other hand Hard distributive
negotiation implies where each party holds out to get its own way. Generally this is done within the Management
and workers.
Integrative Negotiation is less confrontational than distributive negotiation, and permits a broader range of
alternative solutions to be considered. And here both the parties go for win-win situation. This is done generally
with that of top management or executives. Sometimes if extreme necessary this is done for the workers also.
In arbitration third party acts as a judge and has the power to issue a decision that is binding on all disputing
parties. This might be implied when different internal dept. engage in conflict. As there is an involvement of the
third party, DSSLB do not wish to engage in this type of negotiation as there is a chance of leak of information in
this process. As to be competitive the confidential information must be within the company, most of the times the
company follow the above two process.

8. Data Findings Presentation and Analysis

According to our survey in DSSLB Company we found some problem raising conflict which are given in a chart
with their percentage-

Primary Problems
Problems high medium low total
01. Raw-materials 3 2 0 5
60% 40% - 100%
02. Marketing problems 1 3 1 5
20% 60% 20% 100%
03. Machinery problem 5 0 0 5
100% - - 100%
04. Inefficient workforce 3 2 0 5
60% 40% - 100%
05. Licensing problem 1 1 3 5
20% 20% 60% 100%
06. Quota problem 4 1 0 5
80% 20% - 100%
07. Poor government policy 3 2 0 5
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60% 40% - 100%
08. Labor unrest/strike 5 0 0 5
100% - - -

Chart: Primary problems raising conflict in Garments Industries


Secondary problems

Problems high medium low total
01. Middle man affect 1 3 1 5
20% 60% 20% 100%
02. Sluggish business linkage 0 2 3 5
- 40% 60% 100%
03. Unloading (RM) takes time 2 2 1 5
40% 40% 20% 100%
04. Time consuming schedule 2 3 0 5
40% 60% - 100%
05. Communication gap 1 2 2 5
20% 40% 40% 100%
06. Dependency on foreign market 5 0 0 5
100% - - 100%
07. Trade block 0 2 3 5
- 40% 60% 100%
08. Credit problem 2 3 0 5
40% 60% - 100%

Chart: Secondary problems raising conflict in Garments Industries

Most of the employees agree that the company policies which are contradictory to them cause the conflict. The
strictness of the company towards its policies makes the company Bureaucratic. Most of the times, the leaders of
employee are called to participate in the company meeting or give opinion about that of the formation of policies.
Very few times the opinion of the leaders is taken. Around 85% of the employees believe that the one sided decision
by the company is the reason of conflict.
The communication gap between the two facilities which are the head office and that of the main production facility
is a big problem. Around 60% of the employees think that the communication gap between two places create
problem. Though the problem is not that much severe but still small problem rises as there is a level of hierarchy and
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the managers has to maintain it. Besides the communication from that of the factory side is not that much easy with
that of the main office.

Many a times the dependency and indulgence mentality towards the foreign company creates pressure on the
workers as well as the managers. But the top management do not compromise the hard work of the employees rather
push to go for the extreme level. Around 70% employees believe that the non-compromising attitude of the
managers is the reason of dissatisfaction and conflict with the management.

However, workers also accepted the points of internal conflict among them. The non cooperation of the fellow
employees also creates a mentality of not helping the others among the workers. This also includes the quota
problem and the governance problem. Around 80% of the employees agreed that the poor governance, non-
efficiency and non-cooperation among the employees are the reasons of conflict.

Besides of these the employees think the machinery related problem, the strike of the workers, the timings and
required cooperation from the authority also creates problem for the employees. Though they try to avoid the
conflict but sometimes it becomes the main tool for them. Especially the labor strike is the way of snatching the
justice from the authority.

9. Recommendations
DSSLB should make a fast communication system with the factory which is out of city.
It should ensure that the managers who are posted in the factory, they are doing their responsibilities or not assigned
by the top level managers in Dhaka branch office.
The workers frequently get involved in quarrelling; managers need to be trained to handle such situations.
Though DSSLB negotiates organization and does not let any kind of conflict occurring for a long time (very fast it
resolves), but it should be more sincere to reduce worker-to-worker conflicts as it is the only one big conflict in the
organization.

10. Conclusion
Now-a-days, organizational conflicts are occurring in most of the organizations. Sometimes it is visible or
sometimes it is not visible enough. Conflict is inevitable within an organization. It can be positive or negative.
According to worlds condition, with the assistance of the different structural models it is possible to approach
conflict with some applicable negotiations (Hudson, 2005). The need for a PM (Project Management) to be able to
communicate well and negotiate, both within the confines of conflict, and outside these confines highlights that
these competencies are important for project managers. The NCSPM (National Competency Standard for Project
Management) though one of the major competency based standards in the world for PM does not focus on any of
these areas of competency with any depth (Hudson, 2005). The usefulness and need for such competencies have
been established worldwide. Negotiation can include negotiating: agreements; designs or construction; coordination
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across boundaries within the organization; and, collaborating with clients (Kellogg et al. 2002). So, all types of
organizations need to follow the world standards to diminish their organizational conflicts and promote negotiations
properly.

11. Future Research Option
There may have more scope created in future to analyze the organizational conflict and negotiational sectors. The
world is becoming more competitive so everyone is chasing for determining ang pointing out the upcoming
organizational conflicts as well as different types of negotiations. So if anybody wants to do further research on
organizational conflict and negotiation, he/she will get much broad space and opportunities regarding this.




























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IV. Reference List


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V. Appendix
QUESTIONNAIRE:
1. Have you ever faced Organizational Conflict in your work life?
Yes
No

2. Do you believe gap of communication is a reason of conflict?
Yes
No

3. To what extend the one sided managerial decisions may lead to Conflict?
Can cause severe misunderstanding
May lead to riot
Harm moderately
No impact

4. Is non-cooperation lead to misunderstanding and conflict among the workers?
Most of the times
Sometimes
Very few times

5. What is the impact of poor governance by management?
More empowerment to workers
Less control on workers
Frequent Conflict among employer and employee
All of the above

6. Does the dependency on the foreign buyers has any impact on labor unrest / conflict?
Yes
No

7. Do operational activities like loading, unloading, machineries, inefficient workforce has any
relation with conflict?
Yes, they lead to organizational conflict
No, they do not cause any disturbance

8. Any other factors causing Conflict:



9. How negotiation is done in the organization? Please specify the process (distributive,
integrative, arbitration etc.)





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VI. Contact Page