CHANGE AND CONFLICT CHANGE AND CONFLICT MANAGEMENTMANAGEMENT

HUMAN SIDE OF ITHUMAN SIDE OF IT

Change At the personal levelChange At the personal level

• Change is fundamentally about feelings. It Change is fundamentally about feelings. It needs people’s heads and hearts together.needs people’s heads and hearts together.

““Winning Attitudes” do make a differenceWinning Attitudes” do make a difference

Slide show from Pen DriveSlide show from Pen Drive

CHANGE MANAGEMENTCHANGE MANAGEMENT

Adoption of a new idea or behavior by an Adoption of a new idea or behavior by an organization.organization. Organizations need to continuously adapt to Organizations need to continuously adapt to

new situations if they are to survive and new situations if they are to survive and prosperprosper

Constant change keeps organizations agile Constant change keeps organizations agile (alert)(alert)

Indicative of “learning” organizationsIndicative of “learning” organizations

BUT when organization say BUT when organization say Change, Employees say:Change, Employees say:

““This is a waste of time.” This is a waste of time.”

““Why change if it was working just fine before?” Why change if it was working just fine before?”

““If it isn't broken, don't fix it.” If it isn't broken, don't fix it.”

““They never tell us what’s going on!” They never tell us what’s going on!”

““How soon will this happen?” How soon will this happen?”

““How will this impact me?” How will this impact me?”

““Will I receive new training?”Will I receive new training?”

““What’s in it for me.” What’s in it for me.”

““I doubt they are really serious about this.” I doubt they are really serious about this.”

Forces ForForces ForChangeChange

Shifting Shifting DemographicsDemographics

TechnologyTechnology

EconomicEconomicShocksShocks

CompetitionCompetition

GlobalizationGlobalization

WorldWorldPoliticsPolitics

CASE STUDY 1- CASE STUDY 1- ICICI BANKICICI BANK

The case examines the process of change The case examines the process of change management at the Industrial Credit and management at the Industrial Credit and Investment Corporation of India (ICICI), a Investment Corporation of India (ICICI), a leading development finance institution, after leading development finance institution, after K.V. Kamath took over as managing director and K.V. Kamath took over as managing director and chief executive officer in May 1996 and following chief executive officer in May 1996 and following the merger of its subsidiary, ICICI Bank and the merger of its subsidiary, ICICI Bank and Bank of Madura in December 2000. It reveals Bank of Madura in December 2000. It reveals the importance of change management for the the importance of change management for the former and how effective management of former and how effective management of change could bring out best results from the change could bring out best results from the employees in the case of latter.employees in the case of latter.

Background NoteBackground Note

ICICI was established by the Government of India in 1955 ICICI was established by the Government of India in 1955 as a public limited company to promote industrial as a public limited company to promote industrial development in India. The major institutional development in India. The major institutional shareholders were the Unit Trust of India (UTI), the Life shareholders were the Unit Trust of India (UTI), the Life Insurance Corporation of India (LIC) and the General Insurance Corporation of India (LIC) and the General Insurance Corporation of India (GIC) and its subsidiaries. Insurance Corporation of India (GIC) and its subsidiaries. The equity of the corporation was supplemented by The equity of the corporation was supplemented by borrowings from the Government of India, the World borrowings from the Government of India, the World Bank, the Development Loan Fund (now merged with Bank, the Development Loan Fund (now merged with the Agency for International Development), Kreditanstalt the Agency for International Development), Kreditanstalt fur Wiederaufbau (an agency of the Government of fur Wiederaufbau (an agency of the Government of Germany), the UK government and the Industrial Germany), the UK government and the Industrial Development Bank of India (IDBI).Development Bank of India (IDBI).

The basic objectives of the ICICI were to The basic objectives of the ICICI were to • assist in creation, expansion and • assist in creation, expansion and modernization of enterprisesmodernization of enterprises• encourage and promote the participation of • encourage and promote the participation of private capital, both internal and externalprivate capital, both internal and external• take up the ownership of industrial investment; • take up the ownership of industrial investment; andand• expand the investment markets.• expand the investment markets.

Since the mid 1980s, ICICI diversified rapidly into Since the mid 1980s, ICICI diversified rapidly into areas like merchant banking and retailing. In areas like merchant banking and retailing. In 1987, ICICI co-promoted India's first credit rating 1987, ICICI co-promoted India's first credit rating agency, Credit Rating and Information Services agency, Credit Rating and Information Services of India Limited (CRISIL), to rate debt obligations of India Limited (CRISIL), to rate debt obligations of Indian companies.of Indian companies. In 1988, ICICI promoted India's first In 1988, ICICI promoted India's first venture capital company – Technology venture capital company – Technology Development and Information Company of India Development and Information Company of India Limited (TDICI) – to provide venture capital for Limited (TDICI) – to provide venture capital for indigenous technology-oriented ventures. indigenous technology-oriented ventures.

In the 1990s, ICICI diversified into different forms In the 1990s, ICICI diversified into different forms of asset financing such as leasing, asset credit of asset financing such as leasing, asset credit and deferred credit, as well as financing for non-and deferred credit, as well as financing for non-project activities. In 1991, ICICI and the Unit project activities. In 1991, ICICI and the Unit Trust of India set up India's first screen-based Trust of India set up India's first screen-based securities market, the over-the-counter securities market, the over-the-counter Exchange of India (OCTEI).Exchange of India (OCTEI).

In 1992 ICICI tied up with J P Morgan of the US In 1992 ICICI tied up with J P Morgan of the US to form an investment banking company, ICICI Securities to form an investment banking company, ICICI Securities Limited. In line with its vision of becoming a universal Limited. In line with its vision of becoming a universal bank, ICICI restructured its business based on the bank, ICICI restructured its business based on the recommendations of consultants McKinsey & Co in recommendations of consultants McKinsey & Co in 1998. In the late 1990s, ICICI concentrated on building 1998. In the late 1990s, ICICI concentrated on building up its retail business through acquisitions and mergers. up its retail business through acquisitions and mergers.

It took over ITC Classic, Anagram Finance and It took over ITC Classic, Anagram Finance and merged the Shipping Credit Investment merged the Shipping Credit Investment Corporation of India (SCICI) with itself. ICICI Corporation of India (SCICI) with itself. ICICI also entered the insurance business with also entered the insurance business with Prudential plc of UK. ICICI was reported to be Prudential plc of UK. ICICI was reported to be one of the few Indian companies known for its one of the few Indian companies known for its quick responsiveness to the changing quick responsiveness to the changing circumstances. circumstances.

While its development bank counterpart IDBI was While its development bank counterpart IDBI was reportedly not doing very well in late 2001, ICICI reportedly not doing very well in late 2001, ICICI had major plans of expanding on the anvil. had major plans of expanding on the anvil.

This was expected to bring with it further challenges as well as This was expected to bring with it further challenges as well as potential change management issues. However, the organization potential change management issues. However, the organization did not seem to much perturbed by this, considering that it had did not seem to much perturbed by this, considering that it had successfully managed to handle the employee unrest following successfully managed to handle the employee unrest following Kamath's appointment.Kamath's appointment.

The Change LeaderThe Change LeaderIn May 1996, K.V. Kamath replaced Narayan Vaghul CEO In May 1996, K.V. Kamath replaced Narayan Vaghul CEO

of India's leading financial services company Industrial of India's leading financial services company Industrial Credit and Investment Corporation of India (ICICI). Credit and Investment Corporation of India (ICICI). Immediately after taking charge, Kamath introduced Immediately after taking charge, Kamath introduced massive changes in the organizational structure and the massive changes in the organizational structure and the emphasis of the organization changed - from a emphasis of the organization changed - from a development bank mode to that of a market-driven development bank mode to that of a market-driven financial conglomerate.financial conglomerate.

Kamath's moves were prompted by his decision to Kamath's moves were prompted by his decision to create new divisions to tap new markets and to create new divisions to tap new markets and to introduce flexibility in the organization to introduce flexibility in the organization to increase its ability to respond to market increase its ability to respond to market changes.changes.

Necessitated because of the organization's new-Necessitated because of the organization's new-found aim of becoming a financial powerhouse, found aim of becoming a financial powerhouse, the large-scale changes caused enormous the large-scale changes caused enormous tension within the organization.tension within the organization.

The systems within the company soon were in a state of The systems within the company soon were in a state of stress.stress.

Employees were finding the changes unacceptable as Employees were finding the changes unacceptable as learning new skills and adapting to the process learning new skills and adapting to the process orientation was proving difficult.The changes also orientation was proving difficult.The changes also brought in a lot of confusion among the employees, with brought in a lot of confusion among the employees, with media reports frequently carrying quotes from media reports frequently carrying quotes from disgruntled ICICI employees. According to analysts, a disgruntled ICICI employees. According to analysts, a large section of employees began feeling alienated. The large section of employees began feeling alienated. The discontentment among employees further increased, discontentment among employees further increased, when Kamath formed specialist groups within ICICI like when Kamath formed specialist groups within ICICI like the 'structured projects' and 'infrastructure' group.the 'structured projects' and 'infrastructure' group.

Doubts were soon raised regarding whether Kamath had gone 'too fast Doubts were soon raised regarding whether Kamath had gone 'too fast too soon,' and more importantly, whether he would be able to steer too soon,' and more importantly, whether he would be able to steer the employees and the organization through the changes he had the employees and the organization through the changes he had initiated. initiated.

Change Challenges – Part IChange Challenges – Part IICICI was a part of the club of developmental finance ICICI was a part of the club of developmental finance

institutions (DFIs – ICICI, IDBI and IFCI) who were the institutions (DFIs – ICICI, IDBI and IFCI) who were the sole providers of long-term funds to the Indian industry. If sole providers of long-term funds to the Indian industry. If the requirement was large, all three pooled in the money. the requirement was large, all three pooled in the money. However, the deregulation beginning in the early 1990s, However, the deregulation beginning in the early 1990s, allowed Indian corporates' to raise long-term funds allowed Indian corporates' to raise long-term funds abroad, putting an end to the DFI monopoly. The abroad, putting an end to the DFI monopoly. The government also stopped giving DFIs subsidized funds. government also stopped giving DFIs subsidized funds.

Eventually in 1997, the practice of consortium Eventually in 1997, the practice of consortium lending by DFIs was phased out. It was amidst lending by DFIs was phased out. It was amidst this newfound independent status that Kamath, this newfound independent status that Kamath, who had been away from ICICI for eight years who had been away from ICICI for eight years working abroad, returned to the helm. At this working abroad, returned to the helm. At this point of time, ICICI had limited expertise, with its point of time, ICICI had limited expertise, with its key activity being the disbursement of eight-year key activity being the disbursement of eight-year loans to big clients like Reliance Industries and loans to big clients like Reliance Industries and Telco through its nine zonal offices.Telco through its nine zonal offices.

In effect, the company had one basic product, and In effect, the company had one basic product, and a customer orientation, which was largely a customer orientation, which was largely regional in nature. Kamath, having seen the regional in nature. Kamath, having seen the changes occurring in the financial sector abroad, changes occurring in the financial sector abroad, wanted ICICI to become a one-stop shop for wanted ICICI to become a one-stop shop for financial services. He realized that in the financial services. He realized that in the deregulated environment ICICI was neither a deregulated environment ICICI was neither a low-cost player nor was it a differentiator in low-cost player nor was it a differentiator in terms of customer service.terms of customer service.

The Indian commercial banks' cost of funds was The Indian commercial banks' cost of funds was much lower, and the foreign banks were much much lower, and the foreign banks were much more savvy when it came to understanding more savvy when it came to understanding customer needs and developing solutions. customer needs and developing solutions. Kamath identified the main problem as the Kamath identified the main problem as the company's ignorance regarding the nuances of company's ignorance regarding the nuances of lending practices in newly opened sectors like lending practices in newly opened sectors like infrastructure. infrastructure.

The change program was initiated within the The change program was initiated within the organization, the first move being the creation of organization, the first move being the creation of the 'infrastructure group (IIG),' 'oil & gas group the 'infrastructure group (IIG),' 'oil & gas group (O&G),' 'planning and treasury department (O&G),' 'planning and treasury department (PTD)' and the 'structured products group (PTD)' and the 'structured products group (SPG)', as the lending practices were quite (SPG)', as the lending practices were quite different for all of these. Kamath picked up different for all of these. Kamath picked up people from various departments, who he was people from various departments, who he was told were good, for these groups. The approach told were good, for these groups. The approach towards creating these new skill sets, however, towards creating these new skill sets, however, led to one unintended consequence.led to one unintended consequence.

Change Challenges – Part I Contd...Change Challenges – Part I Contd...

As these new groups took on the key tasks, a As these new groups took on the key tasks, a majority of the work, along with a lot of good majority of the work, along with a lot of good talent, shifted to the corporate center. While the talent, shifted to the corporate center. While the zonal offices continued to do the same work - zonal offices continued to do the same work - disbursing loans to corporates in the same disbursing loans to corporates in the same region - their importance within the organization region - their importance within the organization seemed to have diminished. An ex-employee seemed to have diminished. An ex-employee remarked, "The way to get noticed inside ICICI remarked, "The way to get noticed inside ICICI after 1996 has been to attach yourself to people after 1996 has been to attach yourself to people who were heading these (IIG, PTD, SPG, O&G) who were heading these (IIG, PTD, SPG, O&G) departments. These groups were seen as the departments. These groups were seen as the thrust areas and if you worked in the zones it thrust areas and if you worked in the zones it was difficult to be noticed."was difficult to be noticed."

Refuting this, Kamath remarked, "This may be said by Refuting this, Kamath remarked, "This may be said by people who did not make it. And there will always people who did not make it. And there will always be such people." Some of the people who did not fit be such people." Some of the people who did not fit in this set-up were quick to leave the organization. in this set-up were quick to leave the organization. However, this was just the beginning of change-However, this was just the beginning of change-resistance at ICICI.resistance at ICICI.

Another change management problem Another change management problem surfaced as a result of ICICI's decision to focus its surfaced as a result of ICICI's decision to focus its operations much more sharply around its operations much more sharply around its customers. In the system prevailing, if a client had customers. In the system prevailing, if a client had three different requirements from ICICI,three different requirements from ICICI,33 he had to he had to approach the relevant departments separately. approach the relevant departments separately.

The process was time consuming, and there was a The process was time consuming, and there was a danger that the client would take a portion of that danger that the client would take a portion of that business elsewhere. To tackle this problem, business elsewhere. To tackle this problem, ICICI set up three new departments: major client ICICI set up three new departments: major client group (MCG), growth client group (GCG) and group (MCG), growth client group (GCG) and personal finance group. Now, the customer personal finance group. Now, the customer talked only to his representative in MCG or talked only to his representative in MCG or GCG. And these representatives in turn found GCG. And these representatives in turn found out which ICICI department could do the job. out which ICICI department could do the job. Though the customers seemed to be happy Though the customers seemed to be happy about this new arrangement, people within the about this new arrangement, people within the organization found it unacceptable. organization found it unacceptable.

In the major client group, a staff of about 30-40 In the major client group, a staff of about 30-40 people handled the needs of the top 100 people handled the needs of the top 100 customers of ICICI. On the other hand, about 60 customers of ICICI. On the other hand, about 60 people manned the growth client group, which people manned the growth client group, which looked after the needs of mid-size companies. looked after the needs of mid-size companies. Obviously, the bigger clients required more Obviously, the bigger clients required more diverse kinds of services. So working in MCG diverse kinds of services. So working in MCG offered better exposure and bigger orders. The offered better exposure and bigger orders. The net effect was that the MCG executive ended up net effect was that the MCG executive ended up doing more business than the GCG executive. doing more business than the GCG executive.

A middle-level manager at ICICI commented, "The bosses A middle-level manager at ICICI commented, "The bosses may call it handling growth clients but the GCG manager may call it handling growth clients but the GCG manager is actually chasing non-performing assets (NPA) and is actually chasing non-performing assets (NPA) and Board of Industrial and Financial Restructuring Board of Industrial and Financial Restructuring (BIFR)cases.“(BIFR)cases.“

Change Challenges – Part I Contd...Change Challenges – Part I Contd... Kamath was quick to deny this allegation as well, "Just Kamath was quick to deny this allegation as well, "Just

because somebody is within the MCG does not because somebody is within the MCG does not guarantee him success. And these assignments are not guarantee him success. And these assignments are not permanent. Today's MCG man could easily by permanent. Today's MCG man could easily by tomorrow's GCG person and vice-versa." Complaints tomorrow's GCG person and vice-versa." Complaints against these changes put in continued and ICICI was against these changes put in continued and ICICI was blamed for not putting in adequate systems in place to blamed for not putting in adequate systems in place to develop the right people.develop the right people.

The manner, which ICICI recognized an The manner, which ICICI recognized an individual's efforts - the feedback process - was individual's efforts - the feedback process - was also questioned. A manager remarked, "Last also questioned. A manager remarked, "Last year the bonuses varied from Rs 30,000 to Rs year the bonuses varied from Rs 30,000 to Rs 250,000 depending on the performance. In many 250,000 depending on the performance. In many cases the appraisal scores were same but the cases the appraisal scores were same but the bonus amount was not. And we were not told bonus amount was not. And we were not told why." why."

With Kamath's stated objective to make ICICI With Kamath's stated objective to make ICICI provide almost every financial service, provide almost every financial service, separating the customer service people from the separating the customer service people from the product development groups was another product development groups was another problem area. In the current scheme of things, problem area. In the current scheme of things, an MCG or GCG person acted as a clients' an MCG or GCG person acted as a clients' representative inside ICICI.representative inside ICICI.

The MCG or GCG person understood the client's The MCG or GCG person understood the client's need and got the relevant internal skill need and got the relevant internal skill department to develop a solution. Unlike foreign department to develop a solution. Unlike foreign banks, there were no demarcations between banks, there were no demarcations between these internal skill groups and client service these internal skill groups and client service person. (Demarcation helped in preventing an person. (Demarcation helped in preventing an internal skills person from cannibalizing business internal skills person from cannibalizing business being developed by the client service group.) being developed by the client service group.) With no such systems in place at ICICI, this With no such systems in place at ICICI, this distorted the compensation packages between distorted the compensation packages between the competing divisions. the competing divisions.

While Kamath's comments in the media seemed to While Kamath's comments in the media seemed to dismiss many of the employee complaints, ICICI was dismiss many of the employee complaints, ICICI was in fact, putting in place a host of measures to check in fact, putting in place a host of measures to check this unrest. One of the first initiatives was regarding this unrest. One of the first initiatives was regarding imparting new skills to existing employees. Training imparting new skills to existing employees. Training programmes and seminars were conducted for around programmes and seminars were conducted for around 257 officers by external agencies, covering different 257 officers by external agencies, covering different areas. In addition, in-house training programmes were areas. In addition, in-house training programmes were conducted in Pune and Mumbai. During 1995-96, conducted in Pune and Mumbai. During 1995-96, around 35 officers were nominated for overseas around 35 officers were nominated for overseas training programmes organized by universities in the training programmes organized by universities in the US and Europe. ICICI also introduced a two-year US and Europe. ICICI also introduced a two-year Graduates' Management Training Programme Graduates' Management Training Programme (GMTP) for officers in the Junior Management grades.(GMTP) for officers in the Junior Management grades.

Change Challenges – Part I Change Challenges – Part I Contd... Contd...

Along with the training to the employees, Along with the training to the employees, management also took steps to set right the management also took steps to set right the reward system. To avoid the negative impact of reward system. To avoid the negative impact of profit center approach, wherein pressure to profit center approach, wherein pressure to show profits might affect standards of integrity show profits might affect standards of integrity within an organization, management ensured within an organization, management ensured that rewards were related to group performance that rewards were related to group performance and not individual performances. To reward and not individual performances. To reward individual star performers, the method of individual star performers, the method of selecting a star performer was made selecting a star performer was made transparent. transparent.

This made it clear, that there would be closer relationship This made it clear, that there would be closer relationship between performance and reward. However, it was between performance and reward. However, it was reported that pressure on accountability triggered off reported that pressure on accountability triggered off some levels of anxiety within ICICI which resulted in a lot some levels of anxiety within ICICI which resulted in a lot of stress in human relationships.of stress in human relationships.

Dismissing reports of upsetting people, Dismissing reports of upsetting people, Kamath said, 'much of the restructuring plan has Kamath said, 'much of the restructuring plan has come from the bottom.' ICICI also reviewed the come from the bottom.' ICICI also reviewed the compensation structure in place.compensation structure in place.

Two types of remuneration were considered – a Two types of remuneration were considered – a contract basis which would attract risk-takers contract basis which would attract risk-takers and a tenure-based compensation which would and a tenure-based compensation which would be appealing to employees who wanted security. be appealing to employees who wanted security. Kamath accepted that ICICI had been a bit slow Kamath accepted that ICICI had been a bit slow on completing the employee feedback process.on completing the employee feedback process. Soon, a 360-degree appraisal system was put in Soon, a 360-degree appraisal system was put in place, whereby an individual was assessed by place, whereby an individual was assessed by his peers, seniors and subordinates. As a result his peers, seniors and subordinates. As a result of the above measures, the employee unrest of the above measures, the employee unrest gradually gave way to a much more relaxed gradually gave way to a much more relaxed atmosphere within the company. atmosphere within the company.

By 2000, ICICI had emerged as the second largest By 2000, ICICI had emerged as the second largest financial institution in India with assets worth Rs financial institution in India with assets worth Rs 582 billion. The company had eight subsidiaries 582 billion. The company had eight subsidiaries providing various financial services and was providing various financial services and was present in almost all the areas of financial present in almost all the areas of financial services: medium and long term lending, services: medium and long term lending, investment and commercial banking, venture investment and commercial banking, venture capital financing, consultancy and advisory capital financing, consultancy and advisory services, debenture trusteeship and custodial services, debenture trusteeship and custodial services.services.

Change Challenges – Part IIChange Challenges – Part II

ICICI had to face change resistance once again in ICICI had to face change resistance once again in December 2000, when ICICI Bank was merged December 2000, when ICICI Bank was merged with Bank of Madura (BoM). Though ICICI Bank with Bank of Madura (BoM). Though ICICI Bank was nearly three times the size of BoM, its staff was nearly three times the size of BoM, its staff strength was only 1,400 as against BoM's 2,500. strength was only 1,400 as against BoM's 2,500. Half of BoM's personnel were clerks and around Half of BoM's personnel were clerks and around 350 were subordinate staff. There were large 350 were subordinate staff. There were large differences in profiles, grades, designations and differences in profiles, grades, designations and salaries of personnel in the two entities.salaries of personnel in the two entities.

It was also reported that there was uneasiness It was also reported that there was uneasiness among the staff of BoM as they felt that ICICI among the staff of BoM as they felt that ICICI would push up the productivity per employee, to would push up the productivity per employee, to match the levels of ICICImatch the levels of ICICI77. BoM employees . BoM employees feared that their positions would come in for a feared that their positions would come in for a closer scrutiny. They were not sure whether the closer scrutiny. They were not sure whether the rural branches would continue or not as ICICI's rural branches would continue or not as ICICI's business was largely urban-oriented. The business was largely urban-oriented. The apprehensions of the BoM employees seemed apprehensions of the BoM employees seemed to be justified as the working culture at ICICI and to be justified as the working culture at ICICI and BoM were quite different and the emphasis of BoM were quite different and the emphasis of the respective management was also different.the respective management was also different.

While BoM management concentrated on the overall While BoM management concentrated on the overall profitability of the Bank, ICICI management turned all its profitability of the Bank, ICICI management turned all its departments into individual profit centers and bonus for departments into individual profit centers and bonus for employees was given on the performance of individual employees was given on the performance of individual profit center rather than profits of whole organization. profit center rather than profits of whole organization. ICICI not only put in place a host of measures to ICICI not only put in place a host of measures to technologically upgrade the BoM branches to ICICI's technologically upgrade the BoM branches to ICICI's standards, but also paid special attention to facilitate a standards, but also paid special attention to facilitate a smooth cultural integration. The company appointed smooth cultural integration. The company appointed consultants Hewitt Associatesconsultants Hewitt Associates88 to help in working out a to help in working out a uniform compensation and work culture and to take care uniform compensation and work culture and to take care of any change management problems. ICICI conducted of any change management problems. ICICI conducted an employee behavioral pattern study to assess the an employee behavioral pattern study to assess the various fears and apprehensions that employees various fears and apprehensions that employees typically went through during a merger. (Refer Table I).typically went through during a merger. (Refer Table I).

TABLE ITABLE I'POST-MERGER' EMPLOYEE BEHAVIORAL 'POST-MERGER' EMPLOYEE BEHAVIORAL PATTERNPATTERN

PERIOD EMPLOYEE BEHAVIORPERIOD EMPLOYEE BEHAVIOR Day 1 Denial, fear, no improvementDay 1 Denial, fear, no improvement After a month Sadness, slight improvementAfter a month Sadness, slight improvement After a Year Acceptance, significantAfter a Year Acceptance, significant improvementimprovement

After 2 Years Relief, liking, enjoyment, After 2 Years Relief, liking, enjoyment, development activitiesdevelopment activities

Based on the above findings, ICICI established Based on the above findings, ICICI established systems to take care of the employee resistance systems to take care of the employee resistance with action rather than words.with action rather than words.

The 'fear of the unknown' was tackled with adept The 'fear of the unknown' was tackled with adept communication and the 'fear of inability to communication and the 'fear of inability to function' was addressed by adequate training. function' was addressed by adequate training. The company also formulated a 'HR blue print' to The company also formulated a 'HR blue print' to ensure smooth integration of the human ensure smooth integration of the human resources. (Refer Table II).resources. (Refer Table II).

TABLE IITABLE IIMANAGING HR DURING THE ICICI-BoM MERGERMANAGING HR DURING THE ICICI-BoM MERGER

THE HR BLUEPRINT AREAS OF HR INTEGRATION THE HR BLUEPRINT AREAS OF HR INTEGRATION FOCUSSED ONFOCUSSED ON

A data base of the entire . Employee communicationA data base of the entire . Employee communication HR structure Cultural integration HR structure Cultural integration

Road map of caree Organization structuringRoad map of caree Organization structuring

Determining the blue Recruitment & Compensation Determining the blue Recruitment & Compensation print of HR movesprint of HR moves Communication Performance managementCommunication Performance management

of milestones Training of milestones Training IT Integration – People Integration IT Integration – People Integration Employee relations Employee relations ––Business IntegrationBusiness Integration• •

To ensure employee participation and to decrease the To ensure employee participation and to decrease the resistance to the change, management established clear resistance to the change, management established clear communication channels throughout to avoid any kind of communication channels throughout to avoid any kind of wrong messages being sent across.wrong messages being sent across.

Training programmes were conducted which Training programmes were conducted which emphasized on knowledge, skill, attitude and technology emphasized on knowledge, skill, attitude and technology to upgrade skills of the employees.to upgrade skills of the employees.

Management also worked on contingency plans and Management also worked on contingency plans and initiated direct dialogue with the employee unions of the initiated direct dialogue with the employee unions of the BoM to maintain good employee relations.BoM to maintain good employee relations.

By June 2001, the process of integration between ICICI By June 2001, the process of integration between ICICI and BoM was started.and BoM was started.

ICICI transferred around 450 BoM employees to ICICI transferred around 450 BoM employees to ICICI Bank, while 300 ICICI employees were ICICI Bank, while 300 ICICI employees were shifted to BoM branches. Promotion schemes for shifted to BoM branches. Promotion schemes for BoM employees were initiated and around 800 BoM employees were initiated and around 800 BoM officers were found to be eligible for the BoM officers were found to be eligible for the promotions. By the end of the year, ICICI promotions. By the end of the year, ICICI seemed to have successfully handled the HR seemed to have successfully handled the HR aspects of the BoM mergeraspects of the BoM merger..

According to a news report, "The win-win situation created According to a news report, "The win-win situation created by….HR initiatives have resulted in high level of morale by….HR initiatives have resulted in high level of morale among all sections of the employees from the erstwhile among all sections of the employees from the erstwhile BoM."BoM." Even as the changes following the ICICI-BoM Even as the changes following the ICICI-BoM merger were stabilizing, ICICI announced its merger with merger were stabilizing, ICICI announced its merger with ICICI Bank in October 2001.ICICI Bank in October 2001.

The merger, to be effective from March 2002, was The merger, to be effective from March 2002, was expected to unleash yet another series of changes at the expected to unleash yet another series of changes at the organization.organization.

With Kamath still heading ICICI, analysts were hopeful that With Kamath still heading ICICI, analysts were hopeful that the bank would come out successfully in the task of the bank would come out successfully in the task of integrating the operations of both the entities this time as integrating the operations of both the entities this time as well.well.

OrganizationalChange

Planned Changes• Changes in products and

services• Changes in administrative

systems• Changes in organizational

size or structure• Introduction of new

technologies• Advances in information

processing and communication

Planned Changes• Changes in products and

services• Changes in administrative

systems• Changes in organizational

size or structure• Introduction of new

technologies• Advances in information

processing and communication

Accidental Changes• Changing employee

demographics• Performance gaps• Governmental regulations• Economic competition in the

global arena

Accidental Changes• Changing employee

demographics• Performance gaps• Governmental regulations• Economic competition in the

global arena

Types of Changes:Types of Changes:1) Planned1) Planned2) Accidental2) Accidental

Types of Changes:Types of Changes:1) Planned1) Planned2) Accidental2) Accidental

Types of Planned ChangesTypes of Planned Changes

Two TypesTwo TypesOperational ChangeBased on efforts to improve basic work and

organizational processes

Transformational ChangeInvolves redesign and renewal of the total

organization

Purposeshared vision/values/goals

StrategyStructure

Workforce

Leadership

Culture

Organization

systems

Who is responsiblefor what

Ongoing processes

Doing the right things

How you achieveyour goals

Underlyingassumptions that drive behavior

Capacity and capabilities of the people who do the work

ORGANIZING FOR CHANGE…

The Process of Change The Process of Change ImplementationImplementation

Information GatheringInformation Gathering

Information AssessmentInformation Assessment

Information DisseminationInformation Dissemination

Information Monitoring, Stabilization and FeedbackInformation Monitoring, Stabilization and Feedback

CHANGE OBJECTIVES

CHANGE OVERVIEW

CHANGE BLUEPRINT = IMPLEMENTATION PLAN

CHANGE IMPLEMENTATION

A Model for ChangeA Model for Change -Lewin’s 3 -Lewin’s 3 step Change processstep Change process

Unfreezing Changing Refreezing

Unfreezing Old behavior creates motivation to learn.

The first step, “The first step, “unfreezeunfreeze” involves the ” involves the process of letting go of certain restricting process of letting go of certain restricting attitudes during the initial stages of an attitudes during the initial stages of an outdoor education experience.  outdoor education experience. 

The second step, "The second step, "changechange" involves " involves alteration of self-conceptions and ways of alteration of self-conceptions and ways of thinking during the experience. thinking during the experience.

The third step, "The third step, "refreezerefreeze" involves " involves solidifying or crystallizing the changes into solidifying or crystallizing the changes into a new, permanent form for the individuala new, permanent form for the individual

Lewin’s Three-Step Process

Unfreezing TechniquesUnfreezing Techniquespeople are taken from a state of being people are taken from a state of being unready to change to being ready and unready to change to being ready and

willing to make the first step.willing to make the first step.

Burning platform:Burning platform: Expose or create a Expose or create a crisis. crisis.

Burning PlatformBurning Platform

Show how staying where you are is not an Show how staying where you are is not an option, and that doing nothing will result in option, and that doing nothing will result in disaster.disaster.

Look for a crisis that you can highlight. Look for a crisis that you can highlight. They are often lurking nearby, forlorn and They are often lurking nearby, forlorn and unnoticed.unnoticed.

You can also engineer your own You can also engineer your own

crisis that forces change.crisis that forces change.

Challenge:Challenge: Inspire them to achieve Inspire them to achieve remarkable things. remarkable things.

ChallengeChallenge

Stimulate people into change by Stimulate people into change by challenging them to achieve something challenging them to achieve something remarkable. Show confidence in their remarkable. Show confidence in their ability to get out of their comfort zone and ability to get out of their comfort zone and do what has not been done before.do what has not been done before.

Once the group has bought the challenge, Once the group has bought the challenge, then they will bounce off each other to then they will bounce off each other to make it happen. make it happen.

Evidence:Evidence: Cold, hard data Cold, hard data is difficult to ignore. is difficult to ignore.

EvidenceEvidence

Find evidence that supports the need for Find evidence that supports the need for change.change.

Use data and statistics to create Use data and statistics to create impressive graphs and charts.impressive graphs and charts.

Cold, hard evidence is a good way of Cold, hard evidence is a good way of changing minds as counter-arguments changing minds as counter-arguments require better data.require better data.

Education:Education: Learn them to change. Learn them to change.

EducationEducation

Teach people about the need for change Teach people about the need for change and how embracing change is a far more and how embracing change is a far more effective life strategy than staying where effective life strategy than staying where they are or resisting.they are or resisting.

Teach people the methods of change, Teach people the methods of change, about how to be logical and creative in about how to be logical and creative in improving processes and organizations.improving processes and organizations.

Management by Objectives (MBO):Management by Objectives (MBO): Tell Tell people what to do, but not how. people what to do, but not how.

Set formal objectives for people that they Set formal objectives for people that they will have to achieve, but do not tell them will have to achieve, but do not tell them how they have to achieve this.how they have to achieve this.

Management by Objectives Management by Objectives (MBO)(MBO)

Give people objectives that they can Give people objectives that they can onlyonly achieve by working in the intended achieve by working in the intended change. change.

•Give them relatively free rein in how they go about achieving the objectives. Encourage them to 'look outside the box' for creative new ways of achieving the objective.

VisioningVisioning: Form Visions. Visions work to : Form Visions. Visions work to create change.create change.

VisionVision Create a motivating vision of theCreate a motivating vision of the

future.future. Share it with others.Share it with others. Live it until it comes trueLive it until it comes true.. Visions work only when they act to motivate and inspire Visions work only when they act to motivate and inspire

the large numbers of people that are needed to make the the large numbers of people that are needed to make the change happen. change happen.

For the vision to be motivating, then it must be For the vision to be motivating, then it must be memorable. memorable.

For it to be memorable, it must be exciting and short.For it to be memorable, it must be exciting and short. To be believed, it must be a regular part of the To be believed, it must be a regular part of the

conversation of senior people. conversation of senior people.

Changing TechniquesChanging TechniquesOnce you have unfrozen the people, the next question is how you keep Once you have unfrozen the people, the next question is how you keep

them going.them going.

Coaching:Coaching: Psychological support for Psychological support for executives. executives.

CoachingCoaching

When you have individual people who are When you have individual people who are having difficulty in managing to adapt to having difficulty in managing to adapt to change, be a Coach to them.change, be a Coach to them.

Coaching helps explore deeper Coaching helps explore deeper motivations and beliefs about other motivations and beliefs about other people, and find practical ways to change people, and find practical ways to change these. these.

FacilitationFacilitation: Use a facilitator to guide : Use a facilitator to guide team meetings.team meetings.

FacilitationFacilitation

Use skilled facilitators (HR) to support Use skilled facilitators (HR) to support change activities.change activities.

Facilitators can be used to guide various Facilitators can be used to guide various group events, from brainstorming and group events, from brainstorming and planning to improvement projects and planning to improvement projects and change activities.change activities.

Facilitators can also act as team coaches, Facilitators can also act as team coaches, helping people to improve within helping people to improve within themselves and work together in better themselves and work together in better ways.ways.

First steps:First steps: Make it easy to get going. Make it easy to get going.

First Steps.First Steps.

Actually starting something is often the Actually starting something is often the hardest thing. The Greek poet Horace hardest thing. The Greek poet Horace said, ‘He has half the deed done who has said, ‘He has half the deed done who has made a beginning.’made a beginning.’

Make the first steps of change particularly Make the first steps of change particularly easy. Make them the most obvious thing easy. Make them the most obvious thing to do. to do.

Then make the next steps easy that it Then make the next steps easy that it takes away all reasonable objections to takes away all reasonable objections to enacting it. enacting it.

InvolvementInvolvement: Give them an important : Give them an important role. role.

InvolvementInvolvement

Get them involved in the change.Get them involved in the change. Invite them to participate in discussions. Invite them to participate in discussions. Give them things to do.Give them things to do. When people are a part of something, they When people are a part of something, they

bond with it, making it a part of their bond with it, making it a part of their identity. identity.

Open Space:Open Space: People talk about what People talk about what concerns them. concerns them.

Open spaceOpen space 'Open Space' (or, more fully, Open Space Technology, or OST) is a 'Open Space' (or, more fully, Open Space Technology, or OST) is a

simple but very useful way of getting people to openly discuss simple but very useful way of getting people to openly discuss issues that are of concern to them.issues that are of concern to them.

The underlying philosophy is that trying to control a naturally chaotic The underlying philosophy is that trying to control a naturally chaotic universe just makes things worse. If you want people to collaborate, universe just makes things worse. If you want people to collaborate, the basic principle is to bring them together and then the basic principle is to bring them together and then get out of the get out of the wayway. For managers and facilitators this can be a very difficult part of . For managers and facilitators this can be a very difficult part of the Open Space process. Yet the most successful Open Spaces are the Open Space process. Yet the most successful Open Spaces are managed with but a very light touch.managed with but a very light touch.

In change, this is useful for getting people talking together. For In change, this is useful for getting people talking together. For example, you can use it to get people to talk about their fears and example, you can use it to get people to talk about their fears and concerns.concerns.

Step wise changeStep wise change: Break the work into : Break the work into packages.packages.

Stepwise ChangeStepwise Change

Have clear steps in the change. Break the Have clear steps in the change. Break the work into distinct packages and talk about work into distinct packages and talk about each separately. each separately.

Communicate about the change not as a Communicate about the change not as a single, but as a set of activities, each of single, but as a set of activities, each of which gains specific value. which gains specific value.

Celebrate the Milestones.Celebrate the Milestones.

Refreezing techniquesRefreezing techniques people are taken from a state of being in transition and moved to a people are taken from a state of being in transition and moved to a

stable and productive statestable and productive state Burning bridgesBurning bridges: Ensure there is no way : Ensure there is no way

back. back. Evidence streamEvidence stream: Show them time and : Show them time and

again that the change is real. again that the change is real. Institutionalization:Institutionalization: Building change into Building change into

the formal systems and structures. the formal systems and structures. Reward alignmentReward alignment: Align rewards with : Align rewards with

desired behaviors. desired behaviors. SocializingSocializing: Build it into the social fabric: Build it into the social fabric

Burning the bridgesBurning the bridges

When changes are instituted, it is not uncommon When changes are instituted, it is not uncommon for people to seek ways to go back the old way for people to seek ways to go back the old way of working, hence ensure that there is no way of working, hence ensure that there is no way back to previous ways of working. back to previous ways of working.

'Burning bridges' is a deliberate way of 'Burning bridges' is a deliberate way of preventing any backsliding by removing any preventing any backsliding by removing any method by which people can go back. method by which people can go back.

Managers who may be not fully committed to the Managers who may be not fully committed to the change are now strongly motivated to continue.change are now strongly motivated to continue.

Evidence StreamEvidence Stream Get people to accept that a change is real by Get people to accept that a change is real by

providing a steady stream of evidence to demonstrate providing a steady stream of evidence to demonstrate that the change has happened and is successful.that the change has happened and is successful.

Communicate through a range of media. Get people Communicate through a range of media. Get people who have been involved to stand up and tell their who have been involved to stand up and tell their stories of challenge and overcoming adversity. stories of challenge and overcoming adversity.

Evidence is a powerful tool for persuasion, particularly Evidence is a powerful tool for persuasion, particularly when people are doubtful whether something is real. when people are doubtful whether something is real. This is particularly powerful when presented by people This is particularly powerful when presented by people who are trusted by the audience for the information.who are trusted by the audience for the information.

A steady stream of evidence is needed because A steady stream of evidence is needed because people are not always convinced by a few pieces of people are not always convinced by a few pieces of early evidence. early evidence.

InstitutionalizationInstitutionalization Make changes stick by building them into the formal Make changes stick by building them into the formal

fabric of the organization. fabric of the organization. Make them an organizational standard, building them Make them an organizational standard, building them

into the systems of standards. into the systems of standards. Put them or aspects of them into the primary strategic Put them or aspects of them into the primary strategic

plan. plan. Build them into people personal objectives. Build them into people personal objectives. Ensure people are assessed against them in personal Ensure people are assessed against them in personal

reviews.reviews. The formal systems and structures within the The formal systems and structures within the

organization are those which are not optional. People do organization are those which are not optional. People do them because they are 'business as usual‘. them because they are 'business as usual‘.

Reward Alignment.Reward Alignment.

When you make a change, ensure that When you make a change, ensure that you align the reward system with the you align the reward system with the changes that you want to happen. changes that you want to happen.

The saying 'Show me how I'm paid and I'll The saying 'Show me how I'm paid and I'll show you how I behave' is surprisingly show you how I behave' is surprisingly common. common.

SocializeSocialize

Seal changes by building them into the Seal changes by building them into the social structures. social structures.

Give social leaders prominent positions in Give social leaders prominent positions in the change. When they feel ownership for the change. When they feel ownership for it, they will talk about it and sell it to others.it, they will talk about it and sell it to others.

Overcoming Resistance to ChangeOvercoming Resistance to Change

No matter how well designed and planned your change No matter how well designed and planned your change program is, not everyone will be singing its praises.program is, not everyone will be singing its praises.

Employees resist change for a wide variety of reasons, Employees resist change for a wide variety of reasons, ranging from a straightforward intellectual disagreement ranging from a straightforward intellectual disagreement over facts to deep-seated psychological prejudices.over facts to deep-seated psychological prejudices.

Some of these reasons for employee resistance may Some of these reasons for employee resistance may include:include:

belief that the change initiative is a temporary fad belief that the change initiative is a temporary fad belief that fellow employees or managers are belief that fellow employees or managers are

incompetent incompetent loss of authority or control loss of authority or control

loss of status or social standing loss of status or social standing lack of faith in their ability to learn new skills lack of faith in their ability to learn new skills

feeling of change overload (too much too soon) feeling of change overload (too much too soon) lack of trust in or dislike of managers lack of trust in or dislike of managers loss of job security loss of job security loss of family or personal time loss of family or personal time feeling that the organization is not entitled to the feeling that the organization is not entitled to the

extra effort extra effort

Think of how you could apply the drivers for change Think of how you could apply the drivers for change you identified in your analysis to either weakening or you identified in your analysis to either weakening or eliminating an opposing force.eliminating an opposing force.

Show the fiercest resisters what’s in it for them. Show the fiercest resisters what’s in it for them. Appeal to them either in terms of personal gain (such Appeal to them either in terms of personal gain (such as status, salary bonus, recognition, and so on) or loss as status, salary bonus, recognition, and so on) or loss avoided (such as financial loss or job outplacement avoided (such as financial loss or job outplacement prevented).prevented).

Get customers or suppliers to explain to change Get customers or suppliers to explain to change resisters face to face how the current situation resisters face to face how the current situation disadvantages them in concrete terms.disadvantages them in concrete terms.

Put resisters on teams that allow them to play some Put resisters on teams that allow them to play some decision-making part in the change process, however decision-making part in the change process, however small.small.

Defuse political power plays amongst managers and Defuse political power plays amongst managers and other employees by conducting broad-based meetings other employees by conducting broad-based meetings where goals and tactics are openly discussed and where goals and tactics are openly discussed and introduce processes that leave little room for individual introduce processes that leave little room for individual discretion.discretion.

Endeavor to look at the world through the eyes of the Endeavor to look at the world through the eyes of the change resister. Listen openly and honestly to what they change resister. Listen openly and honestly to what they are trying to say. Examine your own basic beliefs and are trying to say. Examine your own basic beliefs and assumptions. Through engaging resisters, be prepared assumptions. Through engaging resisters, be prepared to change yourself.to change yourself.

The Supervisor as Change AgentThe Supervisor as Change Agent

In most of the situations supervisors usually In most of the situations supervisors usually have 3 options for communicating a have 3 options for communicating a change:change:

1-Tell the work group as a whole1-Tell the work group as a whole

2-Meet with each employee individually2-Meet with each employee individually

3-Meet with informal leaders first3-Meet with informal leaders first

Basic steps in communicating change to Basic steps in communicating change to employees:employees:

-Explain the details-Explain the details-Ask for opinions/Listen for feelings-Ask for opinions/Listen for feelings-Solicit ideas-Solicit ideas-Ask for commitment and Support-Ask for commitment and Support-Follow up-Follow upEvaluating ChangeEvaluating Change

CONFLICT MANAGEMENT

Life is Difficult – That’s the Norm!

      a.     We are responsible for our own life situation and the choices we make about responding to it.

b. We must manage our expectations of other people, situations, and ourselves.

c. There is no way to work with people on conflict free basis.

  d. Good criticism (descriptive) provides information that can be put to good use to solve a problem and not attack a person directly. If you know the difference between descriptive and judgmental criticism, you can reduce conflict by 60%-80%.

   e. Anger is the first emotion to be experienced and the last to be controlled.

f.   It takes the average person 18 months to two years to feel comfortable dealing with a new self-imposed behavior pattern. Copious amounts of discipline are required to make the change a permanent part of your behavior pattern.

Meaning of Conflict ManagementMeaning of Conflict Management

ConflictConflict is “an is “an --expressed struggle --expressed struggle --between at least two interdependent parties--between at least two interdependent parties--who perceive incompatible goals, scare --who perceive incompatible goals, scare

resources, and resources, and --interference from others in achieving their --interference from others in achieving their

goals” (Wilmot and Hocker, 1998)goals” (Wilmot and Hocker, 1998) Conflicts exist whenever incompatible Conflicts exist whenever incompatible

activities occur.activities occur.

Benefits of ConflictBenefits of Conflict

Conflict can be desirable.Conflict can be desirable. Conflict helps eliminate or reduce the Conflict helps eliminate or reduce the

likelihood of groupthink.likelihood of groupthink. A moderate level of conflict across tasks A moderate level of conflict across tasks

within a group resulted in within a group resulted in increased group increased group performanceperformance while conflict while conflict among among personalitiespersonalities resulted in resulted in lower group lower group performanceperformance . .

Opens communication between peopleOpens communication between people Replacement of old goals with more Replacement of old goals with more

relevant onesrelevant ones Increase innovation through a greater Increase innovation through a greater

diversity in view pointsdiversity in view points Groups and individuals achieve greater Groups and individuals achieve greater

awareness of their own identitiesawareness of their own identities Leads to innovative solutionsLeads to innovative solutions Strengthens relationshipsStrengthens relationships Improves problem solving skillsImproves problem solving skills

Sources of ConflictSources of Conflict

Conflicts may originate from a number of Conflicts may originate from a number of different sources, including:different sources, including:

• Differences in information, beliefs, values, Differences in information, beliefs, values, interests, or desires.interests, or desires.

• A scarcity of some resource.A scarcity of some resource.• Rivalries in which one person or group Rivalries in which one person or group

competes with another.competes with another.• Role ambiguityRole ambiguity• Communication problemsCommunication problems

Types of ConflictTypes of Conflict

1-Interdependence Conflicts1-Interdependence Conflicts.. A person's A person's job depends on someone else's co-job depends on someone else's co-operation, output or input. For example a operation, output or input. For example a sales-person is constantly late in putting sales-person is constantly late in putting the monthly sales figures which causes the monthly sales figures which causes the accountant to be late with her reports. the accountant to be late with her reports.

2-Differences in Style. 2-Differences in Style. People's style for completing a job can People's style for completing a job can differ.differ. For example, one person may just want to For example, one person may just want to get the work done quickly (task oriented), get the work done quickly (task oriented), while another is more concerned about while another is more concerned about having it done a particular way e.g. artistic having it done a particular way e.g. artistic or by including other people in the project.or by including other people in the project.

3-Differences in Background/Gender3-Differences in Background/Gender.. Conflicts can arise between people Conflicts can arise between people because of differences in because of differences in educational backgrounds, personal experieducational backgrounds, personal experiences, ethnic heritage, gender and politicaences, ethnic heritage, gender and political preferencesl preferences..

4-Differences in Leadership4-Differences in Leadership. . Leaders have different styles.Leaders have different styles. Employees Employees who change from one supervisor to who change from one supervisor to another can become confused, for another can become confused, for example one leader may be more open example one leader may be more open and inclusive whilst another may be more and inclusive whilst another may be more directive.directive.

5-Differences in Personality5-Differences in Personality.. This type of This type of conflict is often fueled by emotion and conflict is often fueled by emotion and perceptions about somebody else's perceptions about somebody else's motives and character. For example a motives and character. For example a team leader jumps on someone for being team leader jumps on someone for being late because she perceives the team late because she perceives the team member as being lazy and inconsiderate. member as being lazy and inconsiderate. The team member sees the team leader The team member sees the team leader as out to get him. as out to get him.

Outcomes of ConflictOutcomes of Conflict

There are two types of stories you can tell There are two types of stories you can tell yourself.yourself.

One story puts a halo over your head and One story puts a halo over your head and enables you to justify to yourself why you have enables you to justify to yourself why you have behaved poorly.behaved poorly.

The second type of story is the one you tell The second type of story is the one you tell yourself about others. This story causes you to yourself about others. This story causes you to see devil horns on the heads of others and has see devil horns on the heads of others and has you labeling them in a negative fashion, placing you labeling them in a negative fashion, placing you in a downward spiral of animosity toward you in a downward spiral of animosity toward them. A couple of examples:them. A couple of examples:

Situation/Scenario Story You Tell ----Situation/Scenario Story You Tell ---- Someone lets you down and it's not the first Someone lets you down and it's not the first

time. They are irresponsible and unreliabletime. They are irresponsible and unreliable You let someone down and it's not the first time. You let someone down and it's not the first time.

It's because you've been overworked recently.It's because you've been overworked recently. Someone cuts you off while driving They are Someone cuts you off while driving They are

rude, aggressive and inconsiderate.rude, aggressive and inconsiderate. You cut someone off while you are driving, It's You cut someone off while you are driving, It's

because you are in a hurry and if you don't catch because you are in a hurry and if you don't catch these lights you'll miss your doctor's these lights you'll miss your doctor's appointment appointment

One of your peers buys the boss a birthday card One of your peers buys the boss a birthday card It's because they are soft-soaping the boss and It's because they are soft-soaping the boss and trying to weasel their way in for a promotion. You trying to weasel their way in for a promotion. You buy your boss a birthday card ,It's because you buy your boss a birthday card ,It's because you are warm and caring.are warm and caring.

Someone flies into a rage at the post office clerk Someone flies into a rage at the post office clerk They are bad-tempered You fly into a rage at the They are bad-tempered You fly into a rage at the post office clerk It's because you're tired and this post office clerk It's because you're tired and this is the 3rd time you've been here trying to resolve is the 3rd time you've been here trying to resolve the problem and the post office keeps making the problem and the post office keeps making the same mistake which is costing you moneythe same mistake which is costing you money

Sometimes your stories are completely Sometimes your stories are completely accurate, but more often than not they are accurate, but more often than not they are either inaccurate or completely wrong.either inaccurate or completely wrong.

The truth is often somewhere in between the The truth is often somewhere in between the story you've told yourself about why the person story you've told yourself about why the person has acted the way they have and the actual has acted the way they have and the actual facts.facts.

Checking your story is important for three Checking your story is important for three reasonsreasons::

It ensures you don't over-react to a situation It ensures you don't over-react to a situation You open you up to the possibility of a healthy You open you up to the possibility of a healthy

discussion ... rather than ambushing the other discussion ... rather than ambushing the other person with your emotions person with your emotions

You begin to sift fact from story. You begin to sift fact from story.

Use this Exercise to Sift Story from FactUse this Exercise to Sift Story from Fact Think of a conflict you have with someone at the Think of a conflict you have with someone at the

moment. On a piece of paper in the left hand moment. On a piece of paper in the left hand column write down all the stories you are telling column write down all the stories you are telling yourself about the person. All the feelings, yourself about the person. All the feelings, thoughts, judgments, labels, conclusions that are thoughts, judgments, labels, conclusions that are running through your head.running through your head.

On the right hand column write down all the On the right hand column write down all the Facts. These are observable, objective, specific Facts. These are observable, objective, specific actions and information.actions and information.

As you look at your list you may find that the story you As you look at your list you may find that the story you have been telling yourself is not fully supported by all the have been telling yourself is not fully supported by all the facts. That you have made many assumptions and facts. That you have made many assumptions and interpretations about what the other person's behavior interpretations about what the other person's behavior MIGHT mean! Have you ever heard the saying "We MIGHT mean! Have you ever heard the saying "We judge others by their actions, but ourselves by our judge others by their actions, but ourselves by our intentions"? You don't truly know what the other person's intentions"? You don't truly know what the other person's intentions are without asking.intentions are without asking.

This exercise is not designed to cause you to not This exercise is not designed to cause you to not address your concern with the other person. It's purpose address your concern with the other person. It's purpose is to help you wash down any over-heated emotions you is to help you wash down any over-heated emotions you may have coursing through your body. Now, you will be may have coursing through your body. Now, you will be more likely to hold the conversation with less accusation more likely to hold the conversation with less accusation and more curiosity.and more curiosity.

Conflict Management StylesConflict Management Styles

In every situation we are responsible for our In every situation we are responsible for our actions. Conflict situations offer each of us actions. Conflict situations offer each of us an opportunity to choose a style for an opportunity to choose a style for responding to the conflict. The key to responding to the conflict. The key to effective conflict prevention and effective conflict prevention and management is to choose the conflict management is to choose the conflict management style appropriate for the management style appropriate for the conflict conflict

Five main types of conflict management Five main types of conflict management styles are :styles are :

1-1-Cooperative Problem SolvingCooperative Problem Solving

Choosing a cooperative problem-solving Choosing a cooperative problem-solving style enables people to work together so style enables people to work together so everyone can win. everyone can win.

Using this style, people try to find a solution Using this style, people try to find a solution that will help everyone meet their interests that will help everyone meet their interests and help everyone maintain a good and help everyone maintain a good relationship. relationship.

A dolphin usually chooses a cooperative problem-solving A dolphin usually chooses a cooperative problem-solving style. Dolphins use whistles and clicks to communicate style. Dolphins use whistles and clicks to communicate with each other to catch food cooperatively and to with each other to catch food cooperatively and to summons help. For example, when a dolphin is sick or summons help. For example, when a dolphin is sick or injured, other dolphins will help it to the surface so it can injured, other dolphins will help it to the surface so it can breathe. breathe.

Although the dolphin usually chooses to be a cooperative Although the dolphin usually chooses to be a cooperative problem solver, it can also choose other styles problem solver, it can also choose other styles depending on the situation. For example, if a dolphin has depending on the situation. For example, if a dolphin has a baby and a shark is in the area, the dolphin will choose a baby and a shark is in the area, the dolphin will choose to use a competitive style to deal with the shark. to use a competitive style to deal with the shark. Continuing to use its favorite style of cooperation would Continuing to use its favorite style of cooperation would greatly endanger the life of the baby dolphin.greatly endanger the life of the baby dolphin.

2-2-CompetingCompeting

Choosing a competitive style means that a Choosing a competitive style means that a person is putting his/her interest before person is putting his/her interest before anyone else's interests. In fact, sometimes anyone else's interests. In fact, sometimes people who use the competitive style try people who use the competitive style try so hard to get what they want that they so hard to get what they want that they ruin friendships ruin friendships

A lion can be a symbol of a competitive style. A lion can be a symbol of a competitive style. The lion's roar helps the lion to satisfy its The lion's roar helps the lion to satisfy its interests. For example, if the lion's family is interests. For example, if the lion's family is hungry and needs food, the lion may use its hungry and needs food, the lion may use its strength and loud roar to get the food because it strength and loud roar to get the food because it is important for the family. is important for the family.

However, the lion can also choose to use a However, the lion can also choose to use a compromising or accommodating style when compromising or accommodating style when playing or resting with a lion cub. playing or resting with a lion cub.

3-3-CompromisingCompromising

People choose a compromising style when it is important for them to satisfy some of their interests, but not all of them. People who compromise are likely to say "let's split the difference" or "something is better than nothing."

A zebra can be a symbol for the A zebra can be a symbol for the compromising style. A zebra's unique look compromising style. A zebra's unique look seems to indicate that it didn't care if it seems to indicate that it didn't care if it was a black horse or a white horse, so it was a black horse or a white horse, so it "split the difference" and chose black and "split the difference" and chose black and white stripes. white stripes.

4-Avoiding4-Avoiding

People who chose the avoiding style do People who chose the avoiding style do not get involved in a conflict. A person not get involved in a conflict. A person choosing the avoiding style might say "you choosing the avoiding style might say "you decide and leave me out of it." decide and leave me out of it."

A turtle is a symbol for the avoiding style A turtle is a symbol for the avoiding style because it can avoid everything by pulling because it can avoid everything by pulling its head and legs into its shell to get away its head and legs into its shell to get away from everyone. from everyone.

A turtle also chooses other styles at times. A turtle also chooses other styles at times. It does not always choose to stay in its It does not always choose to stay in its shell, because it would miss out on shell, because it would miss out on everything from eating to swimming.everything from eating to swimming.

5-5-AccommodatingAccommodating

People who choose an accommodating style put their interests last and let others have what they want. Many times these people believe that keeping a good friendship is more important than anything else.                               

A chameleon is a symbol of the accommodating A chameleon is a symbol of the accommodating style because it changes its color to match the style because it changes its color to match the color of its environment. By changing its color to color of its environment. By changing its color to accommodate its surroundings, the chameleon accommodate its surroundings, the chameleon fits quietly into its environment. fits quietly into its environment.

Although the chameleon may always change its Although the chameleon may always change its color to accommodate its surroundings, it may color to accommodate its surroundings, it may choose other styles when it is hunting for food, choose other styles when it is hunting for food, taking care of its young, or hiding from enemies. taking care of its young, or hiding from enemies.

Turning Styles into StrategiesTurning Styles into Strategies

To most effectively resolve a conflict, we should To most effectively resolve a conflict, we should use the strategy that is most appropriate for that use the strategy that is most appropriate for that particular conflict situation.  particular conflict situation. 

There are a few key variables that define conflict There are a few key variables that define conflict management situations and determine which management situations and determine which conflict management strategies are likely to be conflict management strategies are likely to be effective.  effective.  Time pressureTime pressure is an important is an important variable--if there were never any time pressures, variable--if there were never any time pressures, collaboration might always be the best approach collaboration might always be the best approach to use. to use. 

In addition to time pressures, some of the most In addition to time pressures, some of the most important factors to consider are issue important factors to consider are issue importance, relationship importance, and relative importance, relationship importance, and relative power: power:

Issue importanceIssue importance - the extent to which - the extent to which important priorities, principles or values are important priorities, principles or values are involved in the conflict. involved in the conflict.

Relationship importanceRelationship importance - how important it is - how important it is that you maintain a close, mutually supportive that you maintain a close, mutually supportive relationship with the other party. relationship with the other party.

Relative powerRelative power - how much power you have - how much power you have compared to how much power other party has. compared to how much power other party has.

When you find yourself in conflict over very When you find yourself in conflict over very important issues, you should normally try to important issues, you should normally try to collaborate with the other party.  But, if time is collaborate with the other party.  But, if time is precious and if you have enough power to impose precious and if you have enough power to impose your will, forcing is more appropriate.  Realize that your will, forcing is more appropriate.  Realize that you might need to repair the relationship after you might need to repair the relationship after using a forcing strategy if the other party feels that using a forcing strategy if the other party feels that you did not show adequate consideration for their you did not show adequate consideration for their concerns.  Again, collaborating is normally the concerns.  Again, collaborating is normally the best strategy for handling conflicts over important best strategy for handling conflicts over important issues. issues.

When dealing with moderately important When dealing with moderately important issues, compromising can often lead to issues, compromising can often lead to quick solutions.  However, compromise quick solutions.  However, compromise does not completely satisfy either party, does not completely satisfy either party, and compromise does not foster and compromise does not foster innovation the way that taking the time to innovation the way that taking the time to collaborate can.  So, collaborating is a collaborate can.  So, collaborating is a better approach to dealing with very better approach to dealing with very important issues. important issues.

When you find yourself in conflict over a When you find yourself in conflict over a fairly unimportant issue, using an fairly unimportant issue, using an accommodating strategy is a quick way to accommodating strategy is a quick way to resolve the conflict without straining your resolve the conflict without straining your relationship with the other party.  relationship with the other party.  Collaborating is also an option, but it might Collaborating is also an option, but it might not be worth the time. not be worth the time.

Avoiding should normally be reserved for Avoiding should normally be reserved for situations where there is a clear advantage to situations where there is a clear advantage to waiting to resolve the conflict. waiting to resolve the conflict. 

Avoiding is appropriate if you are too busy with Avoiding is appropriate if you are too busy with more important concerns and if your relationship more important concerns and if your relationship with the other party is unimportant.  However, if with the other party is unimportant.  However, if either the issue or the relationship between the either the issue or the relationship between the parties is important, then avoidance is a poor parties is important, then avoidance is a poor strategy. strategy.

TIPS FOR NEGOTIATING TIPS FOR NEGOTIATING CONFLICTCONFLICT

Mediating Conflict between EmployeesMediating Conflict between Employees

--Set the ToneSet the Tone

-Get the Feelings-Get the Feelings

-Get the Facts-Get the Facts

-Ask for Help-Ask for Help

-Get a Commitment-Get a Commitment

-Follow Up-Follow Up

Resolving Supervisor/Employee ConflictResolving Supervisor/Employee Conflict-Before the Meeting-Before the Meeting-During the Meeting-During the Meeting-After the Meeting-After the MeetingAccepting Criticism from Your BossAccepting Criticism from Your Boss- Before the MeetingBefore the Meeting- During the MeetingDuring the Meeting- After the MeetingAfter the Meeting