A thesis submitted to mba program of azerbaijan state oil and industry university by adila bahmani

Graphics 2.1. The conflict in the company



Source: Routledge. Salamon, L. and Anheier, H. (1999) ‘The Third Sector in the Third World’ in D. Lewis (ed.) International Perspectives on Voluntary Action: Reshaping the Third Sector. London: Earthscan.
According to this graphics, managed conflicts can be resolved. But, unmanaged conflicts can not be solved.

Structural methods mainly affect the participants in organized conflicts that arise from the uneven division of functions, rights and responsibilities, poor organization of work, unjust system of employee motivation and motivation, and other reasons. Such methods include an explanation of labour requirements, the use of coordination mechanisms, the preparation or specification of general organizational goals, and the establishment of a justified reward system.

1. Employment requirements are one of the most effective ways to prevent and resolve conflicts. Each employee should clearly imagine what his duties, responsibilities, rights are. The method is implemented by preparing appropriate debt dues and documentation that regulates the responsibilities for sharing the functions, rights and governance levels.

2. The use of coordination mechanisms involves the use of structural subdivisions or officials of the organization that may intervene in the conflict and assist in solving issues controversial with the conflict parties. One of the most common mechanisms is the hierarchy that regulates the interaction of people, the decisions they make and the flow of information within the organization. If there is a disagreement on any matter, it is possible for the general manager to make the necessary decision and to avoid the conflict. The principle of a unified leadership facilitates the use of hierarchies to manage the conflict situation, as subordinates are obliged to fulfil their decision.

3. Preparation or clarification of general organizational goals enables the whole staff of the organization to unite forces and guide them to the goals they have.

4. Establishing a substantial remuneration system can also be used to manage the conflict situation, as fair compensation affects people's behaviour and helps to overcome destructive conflicts. It is also important that the rewarding system sends individuals or groups to a negative attitude.

The intrinsic methods suggest that the form of future behaviour should be chosen in order to create a conflict situation or minimize the damage to the interests of its participants in the conflict itself. In addition to the basic rules of conduct such as adaptation (compromise), abduction, conflict, co-operation and compromise, it is necessary to pay attention to the solution of the problem of coercion

It means trying to force you to accept your point of view regardless of the cost. The person who wants to do this is not interested in the opinion of others. A person using such an approach usually behaves aggressively and uses it to force others to influence. The incomplete aspect of this rule is that it hampers the enthusiasm of those who are subordinates, and increases the likelihood of ignoring any important factors because only one point is taken. The same behavioural pattern can cause enmity, especially in the younger and more educated staff.

The solution to the problem is to know the causes of the conflicts and to find a way to action that satisfies all sides.

Common algorithms of impact on conflict situations can be summarized as follows (Paton, R.; 1999):

1. Accept the existence of a conflict, i.e. the existence of opposite goals, the methods of the opponents and the identification of the conflict participants themselves. It's easy to deal with these issues in practice, and it's difficult to say whether you conflict with the co-worker in any way. Sometimes the conflict exists for a long time, people suffer, and there is no open acceptance; everyone chooses their own behaviour in relation to the other, but finding and discussing the way out of the resulting situation does not happen.

2. Determine the possibility of conversations. It is advisable to negotiate after acknowledging the existence of a conflict and its inability to resolve it in the shortest possible time, and it is expedient to specify what kind of negotiations will be held: mediator or mediator; Who can be the mediator who can convince the parties to the conflict the same?

3. Coordinate the negotiation method: determine where, when and how the negotiations will begin, i.e., the duration, location, method, and time for commencement of the joint debate.

4. Identify the scope of the questions that determine the subject of the conflict. The problem is to determine what is the subject of the conflict. At this stage, the common ways of solving the problem are being developed, the positions of the parties are specified, the more disputable questions and the possible approximation limits.

5. Preparation of Decision Making Options. The conflicting parties offer several solutions, calculating the cost of each, taking into account possible consequences.

6. Agree to make a coherent decision. As a result of the mutual discussion of the options of the decisions, the parties come to the general opinion, such as official information, resolution, cooperation agreement, etc. Sometimes it is possible to make and accept documents at the end of each stage of the negotiations, especially in complicated or responsible situations.

7. Implement the decision in practice. How the parties to conflict know how to make a decision, and make a decision in the agreed decision, each of the parties to the conflict should determine the outcome of the negotiations. The failure to understand the conflict situation and fail to understand misunderstandings and misunderstandings can be the cause of constant tension. The main reason for the conflict is that people are dependent on one another, and each one must deal with the problem and understand it, the other needs support and support, and someone should share his convictions. Conflict is a warning that communication is either unpleasant or of any significant divergence.

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The following are the main guidelines for dealing with behavioural situations in conflict situations:

• the ability to choose the most important second degree. It seems that it is very easy, but it shows that it is quite difficult to do so. If we regularly analyze the conflict situation, our own motives, and if we really want to understand what is really important and what is simply ambitions, then we can learn how to effectively eliminate what is unimportant;

• internal comfort. This principle does not exclude the possibility of being energetic and active. Instead, it allows you to be more active in the most critical situations, reacting to events and problems. Internal tranquility is a kind of protection from all kinds of unpleasant life experiences that allows a person to choose the appropriate behaviour;

• emotional maturity and stability: In fact, it means being able and worthy of decent actions in every life situation;

• knowing that the impact on the event is self-sustaining and non-aggression or vice versa, to "direct the situation" to expedite and respond to it;

• The ability to approach different from the different points of view by different estimation of the same event, depending on the position held. If you look at the conflict from your "I" position, the price will be the same, but if you are trying to look at the situation from your opponent's position, maybe everything else. It is important to evaluate, compare and combine different positions;

• Prepare for unexpected situations, such as lack of line of conduct (or self-preservation), to react more quickly, react timely and adequately to change the situation;

• Strive to move beyond the problem situation. As a rule, all "unresolved" situations are solved at the end, there is no desperate situation;

• The ability to observe, but not for evaluating those around them and their actions. If you cannot be honest with yourself, you will lose a lot of unnecessary entries, emotions and actions. It's easier to control the movement of people who are able to evaluate their desires, intentions and motives in an objective way, especially in critical situations;

• The ability to see the distance is not only a matter of understanding the inner logic of events, but also the prospect of their development. Knowing what to do can protect against errors and mistakes, preventing the formation of conflict situations;

• Strive to understand others, their thoughts and actions. In one case, reconciliation with them is another way to define their line of action. There are many misunderstandings in everyday life, but for that reason, not all people knowingly or unknowingly put themselves in the place of others. The ability to understand the opposing side's point of view (or even let alone) helps to advance people's actions in this or that situation.

The most important moment of studying the problem of conflict and its nature is the causes of conflicts. Sociological and socio-psychological researches allow to show the following main causes of the conflict:

- Social-economic conflicts arise from the objective socio-economic contradictions existing in our modern society.

Social psychiatric conflicts are based on the needs, motives, activities and behaviours of different people.

- Socio-demographic conflicts come from the motives of behaviour, the social structure, the goals they are exposed to, the different levels of education.

In general, 4 groups can be considered (Routledge. Salamon, L. and Anheier, H. 1999):

1. Individual differences in the education of people

2. Communicative Errors

3. Cultural contradictions

4. Organization (differences between general and individual goals of groups)

Conflict causes the entire process of the creation and development of the conflict. These are the changes that lead to the conflict:

 Objective

 Subjective

 Discovered

 Confidential

 Near

 Remote

 Home

 Secondary changes

There are many reasons to distinguish between 2 forms:

• Lack of objective - resources (material, reputation, lack of prestige, etc.)

• Subjective - psychological (education, psychic deficit, etc.)

Social conflicts are not just the result of objective reasons, but also the result of human psychology. The most common cause of conflict is social contradictions among people (interpersonal, intergroup). And because of the conflict, it is necessary to distinguish its excuse. That is, an excuse is a specific incitement to the conflict.

Thus, the main reasons for the conflict in the organization are the resources needed to divide resources, the mutual dependence of the tasks, the differences between the objectives, the differences in the values ​​presented, differences in behaviours, the level of education, bad communication, the lack of workplace balance, and the lack of motivation.

Resource allocation. Resources in the organization are always limited. The organization's management should share material, information, human resources, financial resources, in the form of separate groups so that the organization can achieve its goal in the most effective way. As a rule, people take their problems more precisely and want to achieve a lot. Separating a large amount of resource into a head, subordinate or group means that the remaining sections or managers will be given a small portion of the total resource. The importance of resource allocation leads to different natural conflicts.

Diversity of goals. Specialized divisions of the organization and even their subgroups determine their goals, bear responsibility for their achievement and receive remunerations. Therefore, sections focus on achieving their goals, not just the goal of the entire organization. Differences in goals often manifest themselves as differences between personality and group.

Conflicts begin to rise as the organization moves towards specialization and divides into separate sections. This is because the specialized divisions identify their goals and seek to achieve them. For example, the sales office is more colourful and supports the production of various products, because such production increases their competitiveness and increases sales. At the same time, the production unit supports the same product nomenclature to achieve the most effective outcome and cost savings. The supply department, in its turn, intends to buy large quantities of raw materials and materials in order to reduce the value of the product unit. On the other hand, the financial department may want to use the funds intended for the goods to be used as investment capital.

The mutual dependence of tasks. If a person is dependent on another person or group to perform the task, then there is always a probability of conflict. The reason for the conflict here is the responsibility of both tools, resources, commitments, reputation, and divisions. For example, the head of the production unit justifies low-level production of its unit in the repair shop due to the lack of workers who can repair equipment in good time and quality. The head of the repair shop, in turn, accuses the personnel department of not being able to recruit new repair workers on time. Similarly, if one of the 6 engineers involved in the development of the new product fails to do the work properly, they will realize that the work is back then. This will create a conflict between the group and the engineer. Since all organizations have unity of elements that are mutually impacting, inadequate work of a unit or worker can be the cause of conflict.

Some organizational structure types and relationships create conflicts in the context of the interdependence of tasks. When discussing a group-wide conflict, we have come up with an example of the controversy between the workers and the management team. The staff is always dependent on the management staff because the specialist needs help. At the same time, the board of directors depends on the staff (staff) when performing deficiencies in the production process or as a consultant. In addition, the board of directors depends on the linear staff when implementing their advice.

Certain types of organizational structures also increase the likelihood of conflict. This gives rise to the matrix structure of the organization in which the principle of integrity is violated. The probability of conflict is also great in the functional structure because every major function is based on its speciality. If the organizational scheme is composed of branches, the heads of the departments are generally subject to a head, which reduces the likelihood of conflict that may occur only for structural reasons.

Differences between the presented values. The idea of ​​any situation comes from the intention of achieving the goal. Instead of objectively evaluating the situation, people focus on the alternatives and other aspects of the situation, thinking that people will have a positive impact on the group and personal needs. This trend occurred during an attempt to resolve a problem with the head of the sales department, HR department and customer service departments. They also think that only one of its functional units can cope with the problem.

The differences in values ​​are the most common cause of conflict. For example, an affiliate may think that whenever he asks for his opinion, he has the right to express his or her opinion and must fulfil the tasks assigned to him in strict compliance. The highly qualified staff of the Research & Design Department always appreciate the independence and freedom of thought. If their leaders demand a stronger control over the work of those who are subordinates, the differences between values ​​will likely lead to conflict.

Incomplete communication. Failure to transmit information is both a cause and a means of conflict. It can act as a catalyst for the understanding of the employees and the group by understanding each other's thoughts, and hindering the situation correctly. Expanding the problem of information transmission - poorly defined quality criteria, misunderstanding of duty obligations, misunderstanding of the functions of employees and departments, changing the demand for the worker's work, etc. which leads to the expansion of conflicts. These problems may also arise from the failure of the managers to correctly comply with job descriptions.

Who can be the cause of the conflict if the information is not transmitted correctly? Communication is low among its participants, people do not have the right idea of ​​one another, and there are conflicting relationships - all this leads to the strengthening and continuation of the conflict. If the leadership fails to explain how the payment of labour for the affiliated people is related to production and the company's income growth is far more resistant than its competitors, the subordinates will respond to this process by reducing productivity.

The non-balance workplace is the most common source of conflict in the organization. Task functions occur when funds are not diminished and are not reinforced by rules and authority.

Incorrect control. Control over the management should not create suspicion. The illiterate power uses indefinite and total control: Everyone is always under suspicion, and that means that the employee is always guilty. In such a situation, human beings cannot control their nerves, lose control and begin to work badly.

Differences in Behaviour Style and Life Skills. People do not feel the same and do not try to understand other people. In the meantime, there is a barrier to communication. Of course, there are people who are aggressive in our lives and are inclined to conflict, so that every word can be exaggerated and infuriated. Also, such stubborn people create conflicts around the environment. Studies show that people who are authoritarian, who are firm in their thoughts, and who are indifferent to any idea, often come into conflict. Other studies show that differences in life experience, education, work experience, values, ages and social features reduce the level of mutual understanding and cooperation between departments.

Moreover, research shows that all workers can be divided into three groups in conflict (Zadek, S. and Raynard, P.; 1995):

• Those who continue to conflict (tolerate)

• Non-conflict ones

• Conflict creators

The last group represents only 6-7% of the whole team. According to British researcher Robert Bramson, it is necessary to pay more attention to the difficult subjects, which make up 1/10 of the members of the organization to create a pleasant psychological environment. The remaining 9/10 themselves will be inclined to discipline. Bramson has selected five types of the disorder among "Difficult Workers". Let's briefly describe them: Aggressive workers, complainers, hesitations, irresponsible, "all knowing".

Disrespect to management. If the majority of employees think that management style and methods do not meet practical needs then this conflict can lead to a situation. The lack of business or managerial skills in management is a great demotivation potential.

Motivation deficiency. If the requirements of the individual and the needs of the organization coincide, then the staff will be able to meet these needs, which cannot substitute for any coercion.

Although the leaders of large organizations are criticized for their conservative economic and social considerations, they realize that their ideas are based on their own, because the bureaucrats have failed to advance their ideas. At the moment, after 200 years, changes in many organizations are swiftly moving, and experienced executives felt it important to react quickly and effectively to changes.

Changes are a matter of all organizations. According to C. Kotler and L. Hezinder, firms and departments of large companies conclude that once a year, small reconstruction measures have to be undertaken by a broader organization for 4-5 years. Changes within the organization are, in general, a response to the changes that take place outside of it. Since the 1980s, effective management has been of great significance for American organizations. There is a need for reorganization of any department of the existing organization in order to increase product cost and increase productivity in the fight against foreign competitors. In response to an increase in fuel prices in 1974, the giant car maker, General Motors, modernized its plants and expanded the production of fuel-efficient vehicles. The initial capital investment here amounted to $ 16 billion. After 10 years, General Motors has begun to launch a large-scale joint venture with Ford and Chrysler.

Let's look at another example. McDonald's and Berger King, which boosts fast-serving cheap restaurants, have led to lower prices for many restaurants, change their menu, and prepare more affordable and technologically dishes.

After the abolition of compulsory military service in 1973, the US Armed Forces leadership began using television to change their image and achieve high goals and achievements. The management eliminated the requirement of special clothing during the absence of employees and was forced to change the terms of service to engage young people in the military. Organizations that are adapting to change and adapting to changing times tend to perceive change more quickly. Also, organizations that have a stable environment are not inclined to change. For example, the research and development department is more likely to work in a stable, unlike the production department.

Although all levels need to give the same reaction to the change, the effect of the change and reaction to it occurs at different levels. For example, the actual decision about modernization was given by the senior management of General Motors. Mid-level managers and technicians present significant changes to senior management, alternative options for costs, cost-effectiveness, and response to technical alternatives. The managers of the lower divisions provide guidance on the modernization of concrete tasks, the proper operation of new machines and equipment, the level of specific tasks. Employees, in their turn, are implementing new product quality requirements, using new technology.

Changes lead to radically changing organizational structure in the organization, creating new products and technologies. Successful implementation of such changes is evident. According to Paul Lorens, minor "minor" changes always occur - change of way of working, daily clerical procedures, changing the location of the equipment or the table, choosing the titles and positions as minor and simple changes. Maybe such minor changes do not mean for the organization in general, but minor changes are of great importance to people who have direct links to these things. And as personalities help the organization achieve its goals, management cannot remain indifferent to their potential response to change.

Speaking about organizational changes, we talk about changes in management within the organization and decisions of the organization that aim to change goals, structure, tasks, technology, and the human factor. In making such decisions, the management itself must be programmed, programmed and entrepreneurial, in other words, either active or react to the situation's requirements. Modifications to correct mistakes made by the control system are typical reactive activity. Even when there is no actual problem, reacting to the existing environment is considered a proactive action.

When analyzing changes, guides should know that all changes are interconnected. The effect of a change lends itself to others. Harold Hebit commented on this: the introduction of new equipment, such as the introduction of computers, changes in the structure (in other words, communication and organization's competency structure), human resources (their qualification level, attitude and activity) leads to the change in the level of fulfilment of the tasks. Because some tasks are primitive, realistic, and require a quick solution. When we discuss each change in the future, we will show other interactions. Research shows that if the innovation program focuses on a single change, they are not effective. At the same time, programs aimed at several changes are more effective.

Goals. For the survival of the organization, they should re-evaluate their objectives as a management period and identify them in accordance with the organization's environment and the organization's internal environment. The goal change is also important for the most successful organizations because everyday goals have already been achieved. Usually, the need to change objectives is determined by the help of a control system that informs the effectiveness of the affiliate affiliates. The radical change of goals also gives rise to other changes. For example, when a popular ICM company wishes to reach a large portion of the PC market, the company provides training and staffing for the technical personnel who repair and maintain a large number of computers, as well as providing the staff with the new product development technology. who created departments?

Structure. Structural changes are part of the organizational process, including the distribution of responsibilities and responsibilities, coordination and integration mechanisms, division into departments, the hierarchy of management, centralization committees and stages change. Structural changes are one of the most widely spread and recognized forms of organizational changes. If goals and strategies change, they are a real challenge. If a large organization opens a new dimension of activity, it creates a major responsibility for this activity and ensures that the leadership of this direction is integrated with the rest of the organization. For example, Coca-Cola has created a special section to market its dietary drink. The addition of the new department to the existing departments required changes in the system of interaction between the functional departments at the corporate level. Structural changes have an impact on the human element, for example, new people come to the organization and changes in affiliation. Fear that structural changes can change social and behavioural relationships usually causes resistance to such a change. Changing technology is much more difficult because it is directly related to the new structure. For example, the information management system should be changed, the information must be communicated to new departments and the activities of the departments should also be monitored.

Technology and Tasks. Changes closely related to each other are technology and tasks. They relate to the process change and the way the new equipment or methods are applied to the schedules of the assignment, the change of the nature of the norms or work. As with structural changes, technological changes usually require the destruction of social stereotypes and the revision of the plans. Changing technology requires the structure's modification and workforce. For example, when the newspapers were transferred to the electronic data transfer form, they were dismissed. Almost all the newspapers have passed into the new form of the news broadcast, and they have faced strong resistance from the trade union.

The quality control method and the introduction of a new method of inventory require a large number of changes in the organization's tasks (Thomas, A.; 1999).

People. Changing people's capabilities changes the behaviour of the staff in the organization. This technical preparation can include improving interpersonal and team relationships, motivation, leadership, evaluating the quality of work performance, improving the competence of the management team, applying programs for team building, increased satisfaction and enthusiasm. Changes in human beings often make them inactive because they are not satisfied with the need to satisfy their needs. In accordance with the motivation laws, the management never refuses to make any objective or acceptable changes. In general, not everyone wants to take on more responsibility and learn more.

In order to successfully implement changes in humans, it is necessary to adapt it to other changes. For example, a workshop focused on the guidelines of the company's policymaking. Thus, the organization expects additional responsibilities. If this does not happen in practice, funds allocated for the preparation will be considered to be in vain and lead concerns. The most delicate point is the need to maintain sustainability when changing people. For example, studies conducted in one of the firms show that if low-level managers intend to make changes, and the top management does not have the proper training for this change, the changes will remain unaddressed.

I have studied contemporary conflicts in contemporary Azerbaijani organizations and analyzed the causes of the conflict, its causes, the model of the conflict process, the results of the conflict and the function of the Azercell Company. The company has been operating in the Azerbaijani communications market for more than 15 years, and has a strong experience and competence in this area and has an organizational culture. By taking over the bulk of the communications market, the organization overwhelms its close competitors by many factors (market share is 55%). At the same time, as in any organization, there are conflicts between internally, inter-group, inter-group, inter-departmental (sub-divisions) within the company. These conflicts arise from internal and external causes. The investigation of conflicts in the organization is being investigated by the Department of Human Resources Management of the Human Resources Department. Generally, research has shown that rewarding systems, career advancement, are the main causes of conflict between individuals in the organization. Especially young, educated, but insufficient workforce does not agree with career promotion conditions, which often leads to interpersonal conflicts among divisions, consultants and young workers.

The organization relies mainly on compromise, cooperation and solution to the problem of interpersonal conflicts. Leaders communicate with those who are in contact, deal with problems in their private lives. If such problems arise, it links the work conflicts to the existence of these problems and, first of all, try to achieve the solution of the employee's personal prob- lems (e.g. paid leave, advance, moral support, workload relief). A person's conflict situation is monitored, where the problem-solving method is used to resolve the conflict. If a person creates a conflict situation several times in the collective, such types of penalties as a warning, reprimand, and finally dismissal is applied.

The investigation revealed that there are conflicts between departments in Azercell. There are mostly conflicts between marketing and sales department, accounting and finance department, finance department and information technology department. The main reasons for the conflict are the fact that the information is not properly handled, the information is not properly developed, market research, external audits, resource allocation and so on. can be.

Take a realistic example of all those mentioned. The advertising campaign of 3G-MAX modems, the new product of the company, has led to a wide range of conflicts between marketing and sales. Even though the marketing campaign developed and run by the marketing department aims to stimulate sales and increase sales, the sales department, directly linked to consumers, concluded that the campaign was a hasty decision and that sale would not occur in such a short time but would have a negative impact on sales volume (product market it may be prematurely included and consumers cannot comprehend it, but may also have a negative impact on the company's new product development process). The conflict has not been settled in time and has soon spread to other parts of the organization. As the conflict grew, the finance department and the production department were also involved in the conflict. Thus, the financial department directly monitors advertising costs and ensures the allocation of funds, and the failure of the campaign will lead to ineffective use of the company's funds. Regarding the production department, they carry out the development of the new product in accordance with a certain plan and the premature wearing of the product negatively affects their project.

The existing conflict resolution was at the management level (management board). Here are the structural methods of organizational conflicts resolution. As the main method, the overall goals of the organization are to be implemented. This method will provide the goal of setting up shared goals or updating goals in front of all managers. The joint activities of the structural subdivisions' leaders and the creation of inter-organizational interdisciplinary groups have led to the solution of the existing problem. In addition, the resolution of conflicts in the organization has been solved through the restructuring of its organizational structure. Thus, the organization has a great impact on the structural organization conflicts, therefore, structural changes have been made to Azercell. For example, the Finance Department has been divided into several departments, and the Accounting Department has been assigned to the Department of Accountability, so each headquarters has been designated responsible for the responsibility, and intermediate groups are established to facilitate the sales department and marketing department, and common goals have been set.

The formula for the above conflict can be illustrated by this formula:

Conflict Situation + incident = Conflict

Conflict Situation - There is always a conflict between the marketing and sales department, as the sales department is dissatisfied with their business, even though it has to act in accordance with the marketing plan presented by the marketing department.

The incident is a pretext for the emergence of conflict. Here, the role of conflict in conflict is the advertising campaign of 3G-MAX modems.

Conflict is the onset of an open struggle and mutual accusations by the department heads.

At a later stage, the conflict is rising and includes finance, production departments, whose formulas are in line with the following general formula.

Conflict Situation + Conflict Situation + .... + = Conflict

The example of Azercell has been constructive and destructive of the conflict. Its constructivism has led to a renewal of the organization, further increase of employee responsibilities, remaining more qualified managers in the branch management, removal of incompetents, and increasing employees' initiative.