Ministry of Education and Youth of Moldova

Academy of Economic Studies of Moldova

Department of International Economic Relations

Chair of International Economic Relations 
 
 
 
 
 
 

Project in IER

Theme: “Conflict and stress in the activity of enterprise. Methods of resolution.

Case study.” 
 
 
 

                                                                                                     Author: Țurcan (Varsan) Liudmila

                                                                               3^rd year student

                                                                               Group EMREI-287 
 

                                                                                Scientific advisor:

                                                                                Şişcan Zorina

                                                                                 Associated professor,  
 

                                    

                                              Chisinau 2010

Plan

Introduction……………………………………………………………...  3

Chapter 1. Theoretical aspects regarding conflict and stress

1. The essence and types of conflict…………………………………… 5
2. Basic styles of a manager behavior in conflict situation……………. 9
3. Stress: Concept and causes…………………………………………...12

1.4 Stress management. How to deal with pressure on the workplace…...14

Chapter 2. Analysis of conflict and stress on the basis of case study

(“ENTEH” JSC).

2.1 General characteristic of “ENTEH” JSC…………………………….16

2.2 Analysis of conflict and stressful situations in the “ENTEH” JSC ….18

Conclusion………………………………………………………………...22

Bibliography 
 
 
 
 
 
 
 
 
 
 
 
 
 

Introduction.

     The foundation of any organization is a labor collective. The labor collective – is a formal community of people united by a common activity for achieving certain goals. Environment, in which people find themselves in the process of joint activity, predetermines and limits the ways of their interaction. Numbers of needs that can be satisfied during the communication process also become limited by the actual circumstances. In such cases there often arise contradictions between people on a wide range of issues. By themselves, these differences and contradictions can act as a positive factor, movement of creative thought. However, becoming a sharp, they can impede successful collaboration and lead to conflicts.

     This work is relevant in our time because people working in the organization differ one from another, actually, they have a different perception of the situation in which they find themselves due to their individual characteristics. The difference in perception often leads to the fact that people do not agree with each other solving some problem. This disagreement arises when the situation really conflict by nature. The conflict is determined by the fact that conscious behavior of one of the parties enters in contradiction with the interests of the other party. Most conflicts arise in addition to the desire of the participants. This is due to the fact that most people do not have an elementary understanding of conflicts, or does not give them value.

Head of the organization, according to his role, is usually in the middle of the conflict and is intended to settle the matter by all available means. Conflict control is one of the most important functions of the manager.

In organizations conflicts can have constructive and destructive beginning. The destructive effects arise when the conflict is either very small or very strong. When the conflict is small, it often remains unnoticed and does not find the adequate solution. The conflict that has reached the maximum point leads to the growth of stress for the members of group. Decisions are taken in terms of concealing or distorting information and do not have sufficiently motivating force.

Constructive party appears when the conflict is enough to motivate people. The development of such conflict is accompanied by an active information exchange and the desire to understand each other. In this case in the discussion process produces the compromise solution based on creative and innovative approach to the problem. This decision leads to more effective work in the organization. Depending on how the conflict management is effective, its consequences will be constructive or destructive, affecting the ability of future conflicts, eliminate the causes of conflict, or create them. The aim of this work is to study conflict and stress in the activity of the enterprise. Proceeding from the purpose of the work we can set following objectives:

- Identify specific features and types of conflict situations in contemporary public organizations.

- Analyze causes of conflict situations.

- Consider basic styles manager behavior in conflict situations.

- Analyze the causes of stress.

- Analyze methods of dealing with pressure on the workplace.

For methodological and theoretical base of this project were chosen scientific works of such well-known authors as: K.W. Thomas, R.H. Kilmann, G.G. Scot, C. Bonciu, I.Moraru the main objective of their research was conflicts in activity of an enterprise. As concerning Hans Selye, A. Deaconu, S. Podgoreanu, L. Rasca were analyzing stress management.

  Structurally work consists from introduction, two chapter and conclusion.

• In first chapter “theoretical aspects regarding conflict and stress” are considered theoretical aspects regarding conflict and stress, specifically: the essence and types of conflicts, styles of managers’ behavior in conflict situation, the essence of stress and organizational programs to deal with stress. 
• In the second chapter “Analysis of conflict and stress on the basis of case study (“ENTEH” JSC).” are analyzed conflict and stressful situations in the “ENTEH” JSC. For determination of stressful and conflict situation in the analyzed company, was done interviewing on the question of satisfaction with their work and the types of conflict which appear more frequently in organization.

 
 
 
 
 
 
 
 
 
 

Chapter1

Theoretical aspects regarding conflict and stress

1. The essence and types of conflict.

When cooperation and collaboration are low, effects are seen in productivity, customer service, organizational and individual stress, unscheduled absences, sick leave use, medical claims, retention, and recruitment ability.  
Here are some statistics that reflect the cost of conflict in organizations: 30-42% of managers' time is spent reaching agreement with others when conflicts occur. It is estimated that more than 65% of performance problems result from strained relationships between employees -- not from deficits in individual employees' skill or motivation. It costs 1.5 times the position salary to replace the employee in it. Recent studies find that more than two-thirds of managers spend more than 10% of their time handling workplace conflict and 44% of managers spend more than 20% of their time in conflict-related issues. A number of surveys indicate that people in all occupations report the most uncomfortable, stress-producing parts of their jobs are the interpersonal conflicts that they experience on a daily basis between themselves and co-workers or supervisors.

   The possibility of conflict inherent in human life itself. The causes of conflict are rooted in the anomalies of the social life and imperfections of man himself. Among the causes of conflicts, we should mention, above all, socio-economic, political and moral.

   A man who never thought about the nature and essence of the conflict seems that conflicts spoil relations between people, make harm for business, health, cause stress, tension. That is why most of  people do not like conflict, and partly afraid of them. So it is at the level of perception of conflict in a person's identity. However, this statement indicates, about complexity of the conflict relations and their diversity. Conflict is a kind of tool for managing social medium, defining the quality and levels of the organization.

Can you live without conflict? You may not use the word conflict, but can not live without conflict. Conflicts occur wherever there are people. Conflicts occur under certain conditions. Conflict is norm for the existence of society.

  What is conflict? How does it affect management? There are several definitions of conflict; they proceed from the common traditions and existing doctrines in the society. Generalizing approaches to understanding the conflict can be said that the conflicts are explained as:

• Contradictions and collisions of positions in society.
• Differences in the interests of members of society.
• Absence agreed positions in the society.

A fundamental for understanding a conflict is the selection of key concepts - contradiction and interest. But not every contradiction leads to conflict, but only those which make a person (or group) to realize the antagonism of interests that cause the discrepancy.

It should be noted an important term in any conflict, which represents a significant share- the presence of the irrational component which greatly enhances the action of the components of conflict. Let’s formulate a generalized definition of the conflict. So: Conflict is actual or perceived opposition of needs, values and interests. Conflict as a concept can help explain many aspects of social life such as social disagreement, conflicts of interests, and fights between individuals, groups, or organizations. Without proper social arrangement or resolution, conflicts in social settings can result in stress or tensions among shareholders. When an interpersonal conflict does occur, its effect is often broader than two individuals involved, and can affect many associate individuals and relationships, in more or less adverse and sometimes even way.

  Every person especially a manager should know:

- What is a conflict?

- Why does it appear and how it develops?

- Who is involved in a conflict?

- What are the results and the aims of a conflict?

In addition, a specialist should orient in a conflict situation and take an effective decision. Conflict should not have a negative role in a society; it should be a tool for managing, optimization and mobilization of real production, social, creative and other relations between people. That is why the real specialist should be able to:

- To prevent a conflict correctly

- Have an adequate behavior in a conflict situation, to reduce the destructive effect and intense harmonizing effect of a conflict.

- Terminate a conflict with minimal loses for both parts and have a benefit from its rational solution.

It’s obvious that a conflict can only destroy, disturb and disorganize but also help, create and organize. The specialist in management should not only study conflicts but also the ways of settlement.

What are the negative functions of the conflict?

We can mention several of them:

1. Reduced productivity of workers, dismissal of employees for the conflict resolution.
2. Reduction of cooperation between people who are in conflict.
3. Are created imaginary problems in the relations between people (group) at the expense of solving the real problem.
4. Increase material, emotional and system costs for achieving the goal of the enterprise.

As positive functions of conflict we can mention:

1. Has a diagnostic function, it shows the real relations between people in a group.
2. Reduction of stress, which becomes a stimulus for the production.
3. Makes a group more unite and organized.
4. Has an informational and communicational function, because in conflict situation people try to learn more about each other.

Table 1: The functions of conflicts 

 

Source: elaborated by author on base of sources (Willem F. G. Mastenbroek Conflict Management and Organization Development) 

There are several types of conflicts in the organization.

1. Interpersonal conflict. This type of conflict is perhaps the most vide spread.  Most often this is a manager struggle for limited resources, manpower, finance, etc. Everyone feels that if resources are limited, he must convince their superiors to allocate resources to his department. Interpersonal conflict can also occur as a clash of personalities, people with different characters, different temperaments are simply unable to work with each other.
2. The conflict between the individual and the group. Due to the fact that the group set standards of behavior, it happens that the expectations of the group are at variance with expectations of individual. In this case a conflict arises. In other words, between the individual and the group appears a conflict if this person takes a position different from the position of the group.
3. Intergroup conflict. As it known every organization consist from many groups both formal and informal. Even in the best organization among this groups can raise a conflict.

 

 
 

Figure 1: Causes of intergroup conflict

Source: elaborated by author on base of sources (Bazarov T.Y, Eremin B.L,  Aksenova E.A, Malinovskaya P.V. Human resources management.)

           Also conflicts are classified at the degree of manifestation: they can be hidden and open. Hidden conflicts usually involve two people who try not to show anybody that there is a conflict between that as long as it possible. But as soon as one of them gives up the conflict become opened.

1.2 Basic styles of behavior of manager in a conflict situation.

There are a lot of recommendations developed by expert concerning different aspects of people behavior in conflict situations, choosing the convenient strategy of behavior and resources of resolving the conflict.

    For a manager is very helpful to know, what character features and particularity of people behavior are typical for the conflict personality. Summarizing the research of psychologists we can mention several features of character:

• Inappropriate assessment of his capabilities which can be as overvalued and undervalued.
• Desire to dominate, where it is possible and impossible.
• Conservative thinking, attitudes, beliefs, unwillingness to overcome old traditions.
• Excessive adherence to principle and linearity in the statements and opinions, commitment by all means tell the truth straight line.
• A certain set of emotional qualities of the person: anxiety, aggressive, stubbornness, irritability.

By K.W. Thomas and R.H. Kilmann where developed the basic styles of behavior in conflict situation. They show that there are five basic types on behavior in conflict situations: accommodation, compromise, collaboration, avoiding and competition.