Management: Project Recommendations – Coca Cola Company

Running head: CONFLICT

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CONFLICT

Coca Cola Company: Conflict

John A. Gnanaranjan

Davenport University

February 2, 2014

Abstract

This paper evaluates relationship conflict as part of organizational conflict in the Coca Cola Company. The CEO of this company has specific interests towards production department at the expense of marketing department. Employees in the marketing department are counterproductive because they are worried about their future jobs and the general conflict is affecting the department’s performance. This is a case of positive organizational conflict, but the CEO handles the conflict in a personal and negative way. The demands of the CEO are the main stressors that result in relationship conflict in an organization.

Coca Cola Company: Conflict

Organizational conflict can take many forms. It includes personal interests and perceptions or group interests with the upward authority or downward employee (Afzal et al., 2009). In the case of the Coca Cola Company, the best revealing issue is relationship conflict between the top seniors and the lower management levels. The CEO is known to favor production than marketing. He argues that the company cannot allocate the marketing department’s huge funds while Coca Cola is already dominating the world of soft drinks. The domination or monopoly is enough to sell the company’s products and use the money directed towards marketing to increase production of new products. While the CEO might be rational in his thinking, marketing is a vital department in any company regardless of its domination in the industry. While the CEO might be having a strong argument, he might be having personal or other interests towards the marketing people.

According to Dreu et al. (2001), relationship conflict does not always take a bad direction or result into destructive consequences. There is good or bad relationship conflict in any organization. What differentiates the two is how those involved in the conflict handle it. For example, bad organizational conflict, sometimes referred as immoral conflict is destructive. It reduces workers performance and lowers the general productivity of an organization. When trying to demonstrate bad organizational conflict in the Coca Cola Company, the claims of the CEO make the marketing department counter-productive. First, those employees working in this department are worried about their future positions. They cannot work hard or work to the benefit of the company because of the underlying threats. Good relationship conflict on the other hand would work in favor of the company’s production. Workers will give their utmost effort to ensure that the interests of the conflict are achieved. The techniques for handling this conflict often determine whether it will be beneficial or destructive to the company.

Stressors that cause relationship conflict in an organization are classified as demand roles that require a person to meet demands of one interest at the expense of another interest (Fox et al., 2001). For example, in the Coca Cola Company, the marketing personnel are spending much of their time to respond to the CEO’s demands rather than completing the tasks they have at hand. The reality remains that the marketing department will not be reduced or removed from the company. Strategies or guidelines that provide for elimination of this department do not exist. However, since the conflict is live and does exist, employees have a rough time responding to the same.

The best way to reduce work or conflict related stress is through conflict resolution. This approach employs counseling or a trained conflict solver (Greenhaus & Beutell, 1985). There is always a resolution for any conflict. The organization can reach an equilibrium that benefits all parties while using personal counseling to bring back lost confidence. This way, the glory and general performance of an organization will improve. No one likes conflict and no one is harmed if he or she is listened to. Therefore, counseling can be the best remedy for organizational conflict as opposed to avoidance, dominance, compromise or confrontation.

References

Afzal, H., Khan, A. M., and Ali, I. (2009). Linkage between Employee's Perfomance and Relatioship Conflict in Banking Scenario. International Journal of Business and Management. 4 (7) (2009).

Dreu, C.K.W., and Van, A., E.M. (2001). Managing relationship conflict and the effectiveness of organization teams. Journal of Organizational Behavior. 22 (3): 309-328.

Fox, S., Spector, P.E. and Miles, D. (2001). Counterproductive Work Behavior (CWB) in Response to Job Stressors and Organizationa Justice: Some Mediator and Moderator Tests for Autonomy and Emotions. Journal of Vocational Behavior. 59 (3): 291-309.

Greenhaus, H.J. and Beutell, N. (1985). Sources of Conflict Between Work and Family Roles. Academy of Management. 10 (1): 76-88.