Essay About Conflict Management And Proposed Nine-Step Model

Conflict Management
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Conflict management
across cultural
boundaries: a case
analysis from a
multinational bank
John R. Darling and
Christine E. Fogliasso
Introduction
Business today is increasingly impacted by
international considerations. A common scenario
is for goods to be produced in one
country, assembled in another, and sold in a
third country. Managers and other employees
need to be cognizant of the laws and social
customs of the different countries involved.
Even if a business operates solely within a
single locale, chances are good that its
employees will come from a variety of backgrounds
± quite possibly from several different
countries. Again, an awareness of and sensitivity
to the differing modus operandi of
businesses and people around the world is
imperative.
Perhaps nowhere is this heightened awareness
more necessary than in the area of
conflict management. While some cultures
(and individuals) see conflict in a strictly
negative light, others see it as a necessary
growth procedure (for both individuals and
business alike). But whether conflict within an
organization is viewed as desirable or not, the
fact is such conflict will exist. As long as
organizations are composed of and operated
by human beings, there will be conflict. When
such conflict is recognized, acknowledged and
managed in a proper manner, organizational
benefits will accrue.
This paper presents a model which enables
leaders to manage conflict in a positive,
beneficial fashion. A case situation involving a
multinational bank with a diverse workforce is
presented. The nature of conflict is discussed,
and contributors to conflict explored. A
variety of conflict management techniques
will be reviewed and discussed. Finally, a
proposed nine-step model for managing conflict
is presented. The proposed model is then
applied to the case situation to illustrate its
practical applicability to business today.
The scenario
It was the beginning of his fifth year as
Managing Director of his multinational,
Swedish-owned bank. Olaf Lindholm (a
pseudonym) was upbeat about his banks
current status. Over the past four years, the
firm had grown and developed in an
impressive fashion ± new banking services had
been introduced, operations had been
streamlined, and a number of qualified
The authors
John R. Darling is President and Professor of International
Business, Pittsburg State University, Kansas, USA.
Christine E. Fogliasso is Associate Professor of
Management and Marketing, Pittsburg State University,
Kansas, USA.
Keywords
Cross-cultural management,
Conflict resolution, Model, Management techniques
Abstract
Business today is increasingly being impacted by
international considerations. This international impact is
felt in areas such as locating the various sources of raw
materials, coordinating production schedules with plants
around the globe, selecting marketing strategies to be
employed in various cultures, determining which financial
decisions need to be made in a world market, and also
how to best utilize a workforce rich in diversity of talents,
backgrounds, and communication styles. This paper
addresses the last of these considerations: namely, how
to effectively manage a diverse workforce. In particular,
this work is directed toward helping managers to deal
with conflict in the workplace, and to effectively manage
that conflict across cultural boundaries. A case situation
involving a multinational bank with a diverse workforce is
presented. The nature of conflict is discussed, and
contributors to conflict explored. A variety of conflict
management techniques is reviewed and discussed.
Finally, a proposed nine-step model for managing conflict
is presented. The proposed model is then applied