Conflict (Mis)Management and (Un)Settlement Through Negotiated Agreements: The Case of Mr. J and Company Z

ANTO COMETA

The Situation, Conflicts and Negotiated Agreements

Mr. J was a former employee of Company Z[1]. He worked as the Search Engine Marketing Manager for almost two years before he decided to leave the company. Aside from his regular work in the company he also had several consultancy work sidelines having the same line of business.

Mr. J could be somewhat tagged as an archetype of an employee who is difficult to handle. Aside from behavioral and attitude-related problems encountered by co-workers, he has constantly violated company procedures and policies such as habitual tardiness and frequent absenteeism. There has been an existence of a hostile working relationship both in the horizontal and vertical domains (relationship conflict) as well as conscious disregard of company rules and regulations which affected not only his own work function and performance but also to those people whose tasks are connected to his (interest conflict). Despite of the outlined predicaments, his expertise in the field of Search Engine Marketing was of considerable significance which made him fairly indispensable or to an extent an asset to the company. This particular situation presented conflicting interests on the company’s end. Initially, the company ignored the matter since it might cause an issue on Mr. J’s end which could lead to his resignation, consequently, have an effect on the operations of the business.

There were attempts of addressing the concerns associated with the employee. There had been discussions conducted in order to identify the factors and reasons of Mr. J’s actions. However, Mr. J’s motivation was plainly monetary in nature. This has presented an opportunity for the company to negotiate in order to finally resolve the problem. Mr. J asked for an increase of 10,000php. The company was willing to give in to the request provided that he would never be late nor be absent for one month. Both parties agreed to the deal since it was deemed as the best possible solution in resolving the matter.

After the period of agreement lapsed, Mr. J didn’t meet the provisions which both parties have agreed. The company decided to take the matter seriously. There has been another negotiation in which Mr. J proposed to change his type of employment from regular full time to regular part-time. The company agreed to the proposal presented by the employee but the job title was to be changed from Manager to Specialist in which Mr. J agreed. In addition, the work shift and schedule is no longer of utmost concern so long as he would inform his immediate superior regarding the days and time he would come to work.

The agreed settlement was neglected by the employee. This has dragged for almost two months. Finally, the company decided to end the employment of Mr. J due to the burden and problems encountered in the workplace and business operations. However, the intent of terminating the employment of Mr. J was not enacted promptly. Two weeks after, the People Services (Human Resource) unit received a resignation letter from Mr. J. Instead of revoking the resignation letter and serving a notice of termination, the company decided to accept the resignation of the employee

BATNA or WATNA?:
Assessment and Reinforcement to the Negotiated Agreements

There were a couple of flaws that were not at the outset foreseen when the negotiated agreements were made by the parties. The established settlements although viewed as effective ways to resolve the issues turned out to be ineffective. The alternatives offered could be seen as short-term in nature since there were no concomitant reinforcements provided in the implementation. Moreover, the measures that were taken have presented precedents wherein the probable outcome or consequences could be undesirable to the company.

The concerns and issues with Mr. J could have been dealt with accordingly if the company had administered counseling and applied progressive disciplinary actions since these are typical behavioral and attitude-related problems in any organization. These progressive disciplinary actions are quite fitting and helpful in doing mid-course corrections. Such corrective actions however, should be constructive in nature as well as reasonable in order for the employee to understand why such actions were carried out. Deliberate ignorance of Mr. J’s violations considering that he was employed as a manager and that there is a behavior expected in line with his position was wide off the mark since there were standards, rules and procedures set by the company to regulate appropriate conduct for all of its employees. Furthermore, it could be deemed as an illustration of workplace inequality as being partial in favor of Mr. J. The employee is a human resource just like the others and giving special considerations to select few puts across discrimination to the rest.

The first negotiated agreement could have been very substantive even successful if the company (or both parties) employed progress evaluation. The settlement could have been the best alternative to a negotiated agreement (BATNA) for both since the conditions laid out by the parties prior to coming to the said agreement were generally practical, advantageous and viable. On Mr. J’s end, it could be considered as an economically sound motivation – money as motivator [2] in order to execute the necessary (at the very least) work tasks both expected and needed since the reward is significantly attractive to accommodate his personal endeavors. As for the company, it could be seen as a responsive action to the needs of their workers. Moreover, on the business side, it could be the solution to the problem of performance and functional effectiveness of the operations since work attitude and behavior at some level could influence the outcome. Progress evaluation is the reinforcement to the agreement in view of the fact that work schedule and attendance is oftentimes challenging particularly in cases wherein it is habitually done. By monitoring and assessing the development of the agreement, concerns could be uncovered and raised in a timely manner rather than waiting for the situation to get worse. As appropriate or necessary, based on the evaluation conducted, renegotiate. The renegotiation should still be based on the provisions set forth in the agreement prior to implementation. This is deemed to be the most flexible and apt way of dealing with matters that are not moving in the right direction. This is to facilitate the realization and eventual maintenance of the employee’s work tardiness and absenteeism.

The subsequent negotiation was clearly the worst alternative to a negotiated agreement (WATNA). It was a drastic measure which put the company in a detrimental and unfavorable state. The company did not examine the full implications of the new agreement made which turned to the unsettlement of the main problem. Changing the employment from regular full-time to regular part-time could trim down the productivity and could hamper the operations of the business. Full attention to the operations is a minimum requirement in order to execute the work function properly. This could also affect the tasks and delivery of output of other workers whose responsibilities and accountabilities are connected to his. Furthermore, the modification of the job title to suit the status or type of employment does not add any value nor provide noteworthy additions in the resolution of the issue.

With reference to the employee’s competency and expertise in the abovementioned field that created an impression of having a considerable significance which made him an asset or fairly indispensable to the company could have been purged or remedied if the company at the inception of the situation provided training programs which could equip and increase the skills and aptitude of the other employees. In this particular case it could be applied as part of the contingent plan or succession strategy in the organization. This is to assist employees who are deserving - based on credentials, skills as well as behavior such as commitment to be eligible for planned changes in both function and role in the organization. Trainings are quite beneficial to the company and its workers. To reinforce the training programs, the company should employ (proper) Total Quality Management (TQM) which consists of continuous improvement activities involving everyone in the organization, managers and workers alike in a totally integrated effort toward improving performance at every level.[3] It could be integrated as part of the organizational and professional development program. In a quality organization everyone is constantly learning. Management encourages employees to constantly elevate their level of technical skills and professional expertise. People gain an even greater mastery of their jobs and learn to broaden their capability.[4]

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[1] Company Z is a European owned and managed Web Services Company that develops PHP-based commercial grade software and performance-based internet marketing services.

[2] A hypothesis (or theory itself) which states that workers are motivated by the need for money. There were a lot of theories which incorporated money as a driving force in the employees work performance such as Maslow’s Hierarchy of Needs among others.

[3] Goetsch, D. and Davis, S. 1997, Introduction to Total Quality – Quality Management for Production, Processing and Services, Second Edition, Prentice Hall, Columbus, Ohio

[4] Scholtes, P. as cited by Goetsch and Davis - Introduction to Total Quality – Quality Management for Production, Processing and Services, Second Edition, Prentice Hall, Columbus, Ohio

The Objectives and Dynamics of Pay: Rationalizing the Value of Performance-based Pay System

ANTO COMETA

There are a lot reasons why people work, but in the basic scheme of employment or labor the most evident reason is that people work to earn money to cover their expenses or personal needs. Money is a means to an end – various necessities ranging from the most basic which are essential for the subsistence of the individual such as food, shelter and clothing to the material wants and desires of the person. The relative access to these needs and facilities is a major determinant of how much pay the individual acquires or earns. This is fundamental to the individual since this directly relates to the person’s standard of living and is deemed as a determinant to the value of the performance or services provided or to be rendered.

The significance of pay not only relates to the individual who is working but also to other components that compromise the employment relationship. It is of equal importance and interest to the employer as well as to the government. Pay provides motivation or characterizes the quality of performance needed by the employer to cover the cost of the labor performed. As for the government, not only does it provide proceeds for national undertakings but it affects the stability of the both economic and societal facets of the country such as employment, inflation – purchasing power and other state developments in general.

The main component of employee compensation is the basic pay given to the worker. However, due to the demand and competitiveness characterized by both labor and product markets as well as other objectives and factors that directly affect the performance, productivity and profitability not only of the organization but also the worker new strategies are emerging toward increasing the pay levels given to the employee.

One of the usual and conventional ways of adjusting or modifying the base pay in order to reflect or make it appear higher than what is given is achieved by combining benefits and other incentives either monetary or non-monetary. The objectives of determining pay may have one or more that may be in discord with each other (De Siva, 1992). These objectives can be classified into four distinctive categories. First is equity which includes the narrowing of inequalities, wage increase of the lowest paid employees, the concept of equal pay for equal work value among others. The second is efficiency which is reflected in efforts to connect or associate part of the employee’s wage to the productivity or profit, performance whether group or individual as well as acquisition of both skills and knowledge related to the execution of job functions. The third perceived objective is related to the stability in the macro-economic aspect. This has something to do with the levels of employment as well as other related factors that of could either contribute or impede the balance and sustainability of development of the economy of a country. Last identified objective is the effective allocation of labor in the labor market. This particular objective relates to the mobility of workers whether geographical or industry related since the motive of doing such is to the idea of acquiring a net gain and not only to meet the individual’s basic requirements.

A lot of organizations are now in search of sustaining their competitiveness in the market by means of increasing the pay given to the employee. The type of pay is mostly related to performance measures, this is primarily done in order to sop up the costs of labor of the organization at the same time motivate and recompense the employee for the performance. The conventional way of companies in order to secure increased wages and reward their employees is through job appraisal and promotion. However, due to the limitations on resources as well as achieving higher positions in the organization not to mention that current developments in the organizational structure becoming less hierarchical due to market demands and types of flexibility employed in the company, incorporating pay increases based on performance is perceived to be more attractive and effective rather than rewarding the worker through promotions. One of the methods or strategies that is gaining acceptance throughout different industries particularly in the services sector in order to increase the productivity and profitability of the company at the same time rewarding the worker is through performance-based pay. Moreover, the trend in paying the employees is not for the output produced or even for the labor input rendered but simply for the time spent on the job (Blinder, 1990).

There are several theories in human motivation which incorporates pay or pay system as a driving force in motivating their workers to achieve, increase levels or maintain satisfactory performance. The systems of pay given to the workers are now being integrated as part of the human resource management of organizations. This is primarily done in order to achieve the business strategies and objectives whether financial or employee-related since both directly affect the operations of the business. Pay is viewed as a matching element or a dependent variable to the employee’s performance and productivity, by increasing or providing additional pay based on increased productivity and performance is an indication that the company could its financial profitability and could achieve its business objectives.

Its is noteworthy to take into consideration that in designing or structuring a performance pay system, the type of system should highly promote the kind of performance that the organization requires and not just to increase its revenue. Fundamental principles should be laid out and that the objectives and targets should be quite measurable or realizable. Furthermore, the achievement of the performance pay system should be supported by operative approaches and strategies so not to establish that the targets and objectives are impossible to attain. As necessary, employ consultation or increase the involvement in the decision making process or designing of the system. By employing such actions, it could generate efficient or effective ideas, approaches and strategies that could contribute or lead to the achievement of the goals. The organization should also have a feedback mechanism to review the processes, procedures, outcome among others of both pay system and the targets and objectives. It is a excellent avenue in determining and assessing the key factors of either success or failure. Lastly, organizations should also provide trainings since these are quite beneficial to the company and its workers in achieving their goals both monetary and non-monetary. To reinforce the training programs, the company should employ Total Quality Management which consists of continuous improvement activities involving everyone in the organization, managers and workers alike in a totally integrated effort toward improving performance at every level (Goetsch and Davis, 1997). It could be integrated as part of the organizational and professional development program. In a quality organization everyone is constantly learning. Management encourages employees to constantly elevate their level of technical skills and professional expertise. People gain an even greater mastery of their jobs and learn to broaden their capability (Scholtes as cited by Goetsch and Davis, 1997).

References:

Blinder, A. 1990, Paying for Productivity, The Brookings Institution, Washington

Goetsch, D. and Davis, S. 1997, Introduction to Total Quality – Quality Management for Production, Processing and Services, Second Edition, Prentice Hall, Ohio

De Silva, S. 1998, An Introduction to Performance and Skill-based Pay Systems, International Labor Office, Geneva

TINDIG SOLAIR – Maraming Salamat!

ANTO COMETA

I would like to thank all those who supported TINDIG SOLAIR, the slate won all the council seats in the first UP SOLAIR Graduate Student Council Elections. In behalf of the UP SOLAIR Graduate Student Council for 2008 - 2009, maraming maraming salamat!

UP SOLAIR Graduate Student Council 2008 -2009

Chairperson - McRhon Banderlipe I, Vice-Chairperson - Jef Baraquio (Students' Rights and Welfare), Councilors - Jab Bandayrel (Extension Program), Anto Cometa (Education, Research and Popular Struggle), Anne Milla (Publicity), Mischa Millar (Finance) and Bammer Pilar (Secretariat and Logistics).

“Isang konsehong naglilingkod, nagbubuo, nakikilahok at tumutugon sa ika-100 taon”

Sustainable Progress in the Organization through Shared Responsibility and Social Partnership

ANTO COMETA

It has been a major dilemma in all organizations on how to deal with internal issues and conflicts arising from different values, views and interests of individuals. These disagreements more often than not become impediments or deterrents in achieving organizational objectives both internal and external. The challenge for parties concerned as well as for the organization is how to resolve internal discord in order to address the needs and interests not only of the individual(s) but also of the organization. Effective management and leadership often depend on the capacity to envision, bring about, sustain and modify valuable agreements among parties (Sebenius 1995). If we were to achieve efficiency and the sustainability of the business, we should highly take into account shared responsibility and social partnership within the organization.

Most people look for solutions by simply analyzing the matter based on what they deem is feasible, usually in the confines of their ivory towers. This may hold true to a lot of circumstances particularly those strategies that need to be imposed in order to get things done the way they wanted it to be without resistance and opposition. However, if we really wanted to recognize and address the matter effectively, we should put into operation proper consultation and negotiation between parties since these issues are of significance whether of common interests or not since it relates to organizational efficiency. Consultation is an avenue whereby parties could discuss and understand matters concerning disputes, positions and interests. Integrating consultation with negotiation puts these matters into concrete plans of action(s) in order to arrive at an agreement or partnership that would settle dissension between parties as well as possible risks for the organization. Negotiation is best understood as the process of potentially opportunistic dealings intended to move ahead the full set of individual interests by jointly decided action (Sebenius, 1995).

Responsibility entails accountability of all those involved throughout a certain process or course of action. It requires parties to be liable in all the phases of the process since these individuals comprise part of the assembly or constituent that collectively concerns the organization and that its impact affects individual interests and welfare. In order to create a just and unfeigned organization-focused undertaking, proper representation and consultation which should eventually lead to negotiation should be taken into account.