A stakeholder is anyone with an interest in a business, for example the owner, employees, suppliers and customers. As different stakeholders have different interests and requirements it is highly possible there could be conflict. Investors will be concerned with making sure their money is being put to good use and also that they are making a profit. Employees will want to ensure they are meeting any targets set and customers will be concerned with receiving the best possible service. Two of the potential causes of conflict are shown below.
- Expansion – Although an organisation expanding usually means there will be more jobs and revenue it can often be associated with increased costs at first. This initial extra out lay may not be well received with certain stakeholders at first, even if it will lead to extra profit in the future.
- Job Losses – Some organisations may find that they need to reduce costs, one big way to do this is to reduce staffing levels and also maybe to reduce the working hours of some staff. This will more than likely cause conflict between stakeholders such as employees and the local community.
It is important to try and limit the damage stakeholder conflict can cause by dealing with it as soon as possible. This can be done by analysing all your stakeholders, so you are aware of the changing attitudes of your stakeholders.
At some point a team or individuals will come across some sort of conflict, it is inevitable in an organisation that is full of different personalities and ways of doing things. If left un-dealt with conflict can cause a team to lose its focus and move away from its objectives. Conflict could also get worse and develop into something more serious if it is not dealt with there and then. It is therefore important that conflicts are resolved as and when they arise, this will help to limit the damage they cause to the team.
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There are many different approaches that can be taken when dealing with conflict, some of which are shown below. Look for the root cause – Instead of focusing on the person or persons where conflict has taken place you could focus on why it happened. For example, was it due to poor communication or a lack of information? Focusing on the process that caused the conflict instead of the people involved will help you to resolve the issue and learn from it so it does not happen again.
- Face to face – This method may be unpopular with some people who would rather not face the conflict head on. However, it is a quicker and more efficient way of dealing with an issue rather than other communication methods such as emails which offer the time for conflict to grow and be worse. Having a discussion in person with someone can help both parties to get their points of view across and for a solution to be reached. However, it may not happen instantly and may require more than one meeting.
- Embrace the conflict – Ignoring conflict will only make it worse, dealing with conflict as and when it occurs will benefit everyone. If conflict has occurred then encourage people to work it out or if it is between teams then maybe communication and sharing needs to be improved.
- Accommodating - This approach basically means you give the other side what they want. This approach is used when one side would like to keep the peace.
- Avoiding – This method is essentially just ignoring the problem and hoping it will resolve itself.
- Collaborating – This method works by combining the ideas of many different people, this enables a team or organisation to find a solution that meets everyone’s requirements. This method can be quite time consuming.
- Compromising – This approach requires the people engaged in conflict to work together to agree a solution, this will usually involve them both compromising on certain aspects. This method will be most productive in situations where the people engaged in the conflict hold equal amounts of power.
- Competing – In this approach only one side will win, this may be used in situations where decisions need to be made quickly.
There are many problem-solving and interpersonal skills that are needed to manage people; I have discussed some of them below.
- Communication - To be able to manage people effectively you must be able to be concise and professional when communicating with employees. For employees to be able to meet the requirements you set them they must be able to understand what you require. Technical jargon should only be used if you are sure everyone will understand it.
- Non-verbal communication also needs to be taken into consideration, things such as facial expressions and hand gestures can be just as important than the words coming out of your mouth. If as a manager, you do not maintain eye contact or have your arms crossed when speaking with employees you may appear uninterested and stand offish.
- Listening skills - It is important to show that you can actively listen to your employees as this is the only way to make sure you are aware of any concerns amongst employees and also offers the chance for you to ask or answer any questions. Good listening skills will have a big impact on communication within the organisation.
- Negotiation skills - It is important for someone in a management position to have good negotiation skills as they will often need to negotiate with employees regarding things such as deadlines and they may also need to negotiate with customers.
- Creativity - Creativity is an important skill to possess when trying to manage people and also to help solve problems. Being creative usually means you are motivated and ambitious which is beneficial for an organisation. It also can mean you are able to think outside of the box when trying to solve a problem and may be willing to try different things.
- Collaboration - The ability to collaborate is necessary when trying to effectively manage people, most of the time you will not be able to do everything alone so to be able to work well with others will be beneficial to all involved.
It will be easier to solve problems if you work well with others in an organisation as there will be more openness and sharing of ideas.
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Problem Solving and Conflict Resolution when Managing People.
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