| Assignment | | MGT3ISC – Interpersonal Skills and Conflict Management |

Table of Contents

1. Table of Contents .................................................……………………..... 1 2. Introduction ............................................................…………………....... 2 3. Conflict identification .................................................……………..……. 2 4. Options for resolution .............................................…………………....... 2 5. Plan of Action ..........................................................…………….....……. 4 6. Future avoidance ....................................................…………………....... 4 7. Summary ............................................................……………….....…....... 5 8. References ............................................................…………………...........6

Introduction
Kenneth Thomas defined conflict as “the process which begins when one party perceives that another has frustrated, or is about to frustrate, some concern of his”. Conflict is disagreement between individuals who values, needs, wishes, interests, perceptions, incompatible goals leads to an opposition.

Conflict identification between customer and Home Improvement Store
In current situation conflict rose from different perception based on advertising of the product, which didn’t work as it was expected and unhappy customer wanted a full refund. However the time had passed and it’s been 5 month since the product was purchased and Company return policy is “within 90 days of purchase if the product is faulty”. It is clear that man had used the barbeque for some time as he didn’t return it for a while. Why did he waited for 5 month and used a barbecue and only after decided to return it? Did he enjoy the use of the barbecue in that time? What did he expected from barbecue to do that it didn’t? We don’t know if customer misunderstood the policy at the time of purchase or it was poorly communicated to him by stuff members or it just a misperception, luck of clarity due to cultural differences, language barrier, age, attitude.

Options for resolution
Communication is very important. We know that the customer is aggressive and angry and threatening. The customer behaviour cannot be taken personally, because customer is unsatisfied with a product and the situation he is in and not personally with a manager. It is important to pay attention and carefully listen to the customer as well as look at non-verbal messages he sends.
Deciding the strategy to use in resolving the issue we need to consider our goals personal and organizational, what we try to accomplish and the importance of the relationship. There are five possible strategies suggested by Kilmann and Thomas (1992):
Avoidance: People choose not to deal with an issue at all. This strategy is appropriate when controversy is trivial and you think that someone else in the position to deal with a problem more effectively. The needs will not be meet and goals not achieved. It is ineffective approach in many situations as it “leads to “lose-Lose” scenario.
Accommodating: People use strategy to accommodate the needs of others at detriment of their own. It is appropriate when problem is not significant to you and relationship is more valuable than winning. Some people have tendency not to return favours and by giving up your goals for the benefit of others in the long term could be harmful to unrealised needs and unsolved issues.
Compromise: This solution is a partial satisfaction for both parties. To reach the agreement each person will give up some of their goals, requirements and relationship. Compromise is useful when the cost of giving up is lower than the cost of conflict.
Compete: People sacrifice their relationship in order to achieve their objectives. They know what they want and trying to achieve it at all costs. Such strategy is practical in situations with a luck of time, in emergencies where decision is made fast “I win, you lose” scenario.
Collaborate: “an ultimate “win – win” strategy”. The best solution is found for all parties with excellent communication, negotiation and great problem solving where everyone involved objectives are acknowledged. Collaboration is high in assertiveness and high in cooperativeness and time consuming.

Plan of Action
Manager needs to decide which strategy is more appropriate in current situation to achieve the most positive outcome in resolving the issue. As a start “when faced with an angry customer, FIRST focus on acknowledging the feelings and upset of the customer. Once the customer starts to calm down as a result of having his or her feelings recognized, THEN move to solving the problem”. It is important to know the customer needs as well as address it and only than build the solution based on the need. Emphasise the common ground and make clear statements on options available. I wouldn’t use avoiding approach as this problem needs to be resolved. Accommodating is also not appropriate as it totally gives an advantage to the customer and is unfair and not suitable for the company. You can try to compete and follow the organisation rules on return policy, and live the customer unsatisfied as his needs of full refund are totally unrealistic, and it is just a waste of time to try to come up with some other resolution. But what if there is some fault with a barbecue or it doesn’t do a specific function that it should? You might be able to identify “win – win” solution that is acceptable by both parties, try to collaborate. We don’t know if the product is under warranty, if it is you can help to arrange the repair with a service department. Last option is to compromise, if the customer have unrealistic expectations and not negotiable than this strategy is inappropriate.
Finally, if the manager is unable to get resolution than a third party should be brought in to mediate. It can be another manager or co-worker with a better communication and problem solving skills.

Future avoidance
To avoid similar situation in the future you need to understanding the root of the problem and learn from your past experiences. Listen, acknowledge and appreciate what is important to the customer in needs, values and wants. Understand the cause and address it.

Summary
In today society conflict is a natural fact of life as people interact. To achieve positive outcome from conflict it needs to be resolved effectively. Consider why problem has occurred and try to not only fix the current situation but look deeper into the problem cause and eliminate future occurrence.
Conflict helps people to grow, be more productive, more knowledgeable in hard situations , more focused, and satisfied or on other hand when conflict has negative outcome it can make people to be unhappy and miserable and waste a lot of time. To successfully resolve the problem it is important to listen to the other party, understand the issue, identify the source of the conflict, understand the problem itself and apply the appropriate strategy to solve the problem.
As every day conflict situations are inevitable stuff needs to be educated and trained on regular basis on dealing with unhappy customers, about conflict management, company policies and guide lines. This also will improve customer service and customer satisfactions.

References
Bacal R.(1998). Conflict Prevention in the Workplace using cooperative communication (pp.8-12), 1st ed., Winnipeg, Canada; Bacal & Associates
Janasz, S.C., Dowd,K.O., & Schneider, B.Z. (2009). Interpersonal Skills in Organizations (pp. 224-237), 3rd ed., New York, USA: Paul Ducham
Mind Tools Ltd (n.d.) Conflict Resolution. Resolving conflict rationally and effectively. Retrieved January 20, 2011 from http://www.mindtools.com/pages/article/newLDR_81.htm
Robert Bacal, M.A. (n.d.) Customer Service File – The #Mistake Made Dealing With Angry Customers. Retrieved January 20, 2011 from http://performance-appraisals.org/Bacalsappraisalarticles/articles/custservice1.htm Thomas, K.W. (1992). Conflict and conflict management: Reflection and update Journal on Organizational Behavior, 13 (3), 265.

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[ 1 ]. Thomas, K.W. (1992). Conflict and conflict management: Reflection and update Journal on Organizational Behavior, 13 (3), 265.
[ 2 ]. Mind Tools Ltd (n.d.) Conflict Resolution. Resolving conflict rationally and effectively. Retrieved January 20, 2011 from http://www.mindtools.com/pages/article/newLDR_81.htm
[ 3 ]. Janasz, S.C., Dowd,K.O., & Schneider, B.Z. (2009). Interpersonal Skills in Organizations,(pp.230-232), 3rd ed., New York, USA: Paul Ducham
[ 4 ]. Robert Bacal, M.A. (n.d.) Customer Service File – The #Mistake Made Dealing With Angry Customers. Retrieved January 20, 2011 from
http://performance-appraisals.org/Bacalsappraisalarticles/articles/custservice1.htm