HRM624 Conflict Management Assignment No.1 Solution Fall Semester 2012

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HRM624 Conflict Management Assignment No.1 Solution Fall Semester 2012


ASSIGNMENT: Bestlink is a freight-forwarding established as a partnership venture by two friends Mr. Sajid and Mr. Amir about three years ago. But against the important rule of partnership business, they did not sign a formal written partnership agreement. At the start of the business, it was an unwritten mutual understanding between both the partners that they will share the equal amount of profit and loss in this business based on their equal initial investment. It was also agreed by both the partners that Mr. Sajid will be the sleeping partner of this business upon his own will because he did not have the time to manage the business and Mr. Amir will be the active partner.
All the business activity and profit sharing was fine in the first year. But after the second year, Mr. Sajid started complaining that he was not getting the due share of his profit and was also not satisfied with the excessive expenditures of the business. Mr. Amir’s point of view was that the extra expenditure due to his own personal salary was his right as he had been running the business. After a prolonged dispute, they agreed to windup the partnership.
As they did not have a partnership deed at the start of their business, it created a conflict between both business partners regarding division of the company assets. Now, because of this conflict, both the business partners are thinking for the litigation and are consulting with their lawyers.
Considering the above scenario, carefully answer the following questions on the basis of course knowledge that you have acquired.
1. Does this conflict present a Mixed Motive Situation or not? Justify your answer with appropriate reasons.
(7.5 marks)
Mixed-Motive Situations
A conflict situation characterized by a combination of contrient and promotive interdependence is called
mixed-motive situation. In mixed-motive situations some goals are incompatible, others are complementary.
Virtually all conflicts are mixed-motive situations.
Dispute
Definition
a. A disagreement or argument about something important
b. When an employer and a trade union representing the employees cannot agree upon the terms
and conditions of a collective agreement
c.
The Act defines a dispute as including ’any difference’. Whether there is a dispute capable of
being referred to adjudication will depend on the circumstances of each case. A dispute might
be said to exist where a claim has been made by one organization against another and there has
been sufficient time to consider, admit, modify or reject that claim on the basis of reasoned
argument.
d. Where a customer, having received an explanation, still does not agree with the decision
e.
A conflict being expressed outwardly and in which the incompatibility of goals is the main
focus
f.
A quarrel over a divisive issue such as territory, borders, resources, ideology, etc. with no
military aspect. The sides are in disagreement but force is not being considered.
The term dispute implies that the incompatibilities are conscious on the part of at least one of the parties to
the conflict and that the incompatibilities- rather than the complementary goals, interests or needs- are
uppermost in the minds of those involved in the conflict. Disputes often relate to grievances arising from
behavior or events that occurred in the past.
Legal Dispute
A dispute in which some of the contentions can be expressed as a cause of action, or as a defense to a cause
of action


2. What are your recommendations for enhancing Promotive Interdependence in this scenario?
(7.5 marks)