Giant - a Retailer Chain in Malaysia

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Interpersonal conflict will arise in the workplace due to two or more individuals may disagree to share limited capital and manpower resources or the problem-solving may not reach a consensus (Kenny, 2012). When the conflicts continuously exist in the workplace may wastes the amount of time and energy in their respective task and the productivity become low. Sales commission is important to every sales person and especially often occurs in the retail organization, where two of sales person compete in the resources and customer with minor disagreement can be heated to arguments and physical violence (Jaramillo, Mulki, & Boles, 2011). “The quality of interpersonal relationships at work is treating as interpersonal conflict” (Jaramillo, Mulki, & Boles, 2011). Interpersonal conflicts are often the result of characteristics of other individuals rather than on the issues. For example, the person has negative thinking about other individual characteristics that would affect their viewpoint on the issues.

Intergroup conflict also called as organizational conflict. Intergroup relations refer to the relation between two or more groups, sections and departments in an organization and are often required to complete the task allocated. Conflict can occur within an organization when groups inter-relate to accomplish the organization’s goals and objectives (Belak, 1998). The reason of conflict occurs may be different in perception and goals. However, if the intergroup conflict cannot be solved it have the potential harmful to the productivity in an organization.

Supplier add direct consumer channels, as result in lower mutual trust, reduced cooperation, lack of information sharing, and higher conflict may influence supplier and retailer relationship (Ganesan, George, Jap, Palmatier, & Weitz, 2009). Conflict arises between supplier and retailer where their goals, interests and outcomes are incompatible in some way. Two parties between supplier and retailer have involved in conflict when retailer expect to receive a small quantity inventory as possible because it can help retailer to save the space and would not affect their daily occupation, but suppliers think if productions in huge amount or arrive a certain amount for distribution can help them to reduce cost (Jun, Lei, & Mengya, 2010). Some of the suppliers are prefer to deliver huge inventory for retailer or customer that can help them to reduce the cost of transportation and they can avoid the concern about cannot deliver the items of the last minute order from retailer.

For the purpose to resolve the conflict, every industry include retail industry may attempt to use conflict resolution methodologies to solve the issues such as avoid the conflict occur in the company, directly to third-party intervention, decree, litigation and negotiation. (MASTERS & ALBRIGHT, 2001). The common methodology used to resolve conflict is negotiation. Negotiation is an essential solution and way to solve and control over the situation of conflict occurs within an organization. Negotiation gives opportunity to those involved in the circumstance of conflict a voice to present their opinion to influence those matters and reach an agreement on issues. The three important reasons of negotiation are (1) negotiate to resolve a disagreement to avoid the job performance, (2) negotiate to reach an agreement to prevent conflict occur in company again and again, and (3) negotiate to give parties a voice to present their perception and avoid the serious conflict around the company (MASTERS & ALBRIGHT, 2001).

On the other hand, five styles of negotiation can be used to solve the conflict which is problem-solving, aggressive, avoiding, yielding and compromising. From the research of buyer and seller relationship, there have stated 97% of the buyers surveyed choose to use the merely three styles to deal with salesperson which are problem-solving, compromising and aggressive. But the both of the passive aggressive and problem-solving strategies are preferred used to resolve the major conflict by the retailers (Shankar, 1993). Problem-solving strategy is a solution that is beneficial for both parties and this is known as the win-win orientation. Both of the parties can attempts to pay respect on each other party’s situation, needs and wants, after that the both of them can reach an agreement and get what they need. Furthermore, the aggressive approach is using the force, threat, and punishment try to win the conflict at the other’s expense. From the two negotiation strategies, the problem-solving strategy is offer more positively result and fit for the retailer’s satisfaction than passive aggressive strategy.

Chapter 2: Conflict and Negotiation in the Workplace

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Employee Conflict

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Conflict between employee and employee

Conflict often happen between the moment because of the employee’s attitude, ways of communication or environment of the workplace. Here, we are talking about Giant Hypermarket employee conflict. As we know that Giant not use the traditional sticker type of price tag and choose to use the shelf type of price tag and sometime the shelf type of price tag would missing from the storage rack and that is make trouble for the customer and cashier. As research we know, Giant did not update their price list of the product frequently and often placing the product in the wrong place (Anton, 2011). Although Giant use shelf type of price tag instead to the sticker type of price tag can help them to reduce the cost but that is important for the Giant to keep updated their price of products in the storage rack. Giant had mount price checker barcode scanner in some area for customer to scan the price but the scanner does not working in sometimes. There were happened a few times in Giant. A customer placed the product to cashier counter and scanned there was show out the difference price on the system and it is different from the customer saw at the storage rack displayed. As the thing happened, the customer would be required to pay the price that was higher than he/she saw at the shelf. This condition let the customer dissatisfaction because feel like defrauded by the Giant and argued with the cashier want them to sell the product in the price as he/she had seen at the shelf. When this kind of incident happened, the cashier was felt unhappy directly to blow steam off and scolded at the person who in charge the price tag task and asked the reason of why did not update the price and the machine did not working. Therefore, the person in charge felt unhappy because cashier scold toward at him/she toward