Conflict Management

Conflict management

across cultural

boundaries: a case

analysis from a

multinational bank

John R. Darling and

Christine E. Fogliasso

Introduction

Business today is increasingly impacted by

international considerations. A common scenario

is for goods to be produced in one

country, assembled in another, and sold in a

third country. Managers and other employees

need to be cognizant of the laws and social

customs of the different countries involved.

Even if a business operates solely within a

single locale, chances are good that its

employees will come from a variety of backgrounds

± quite possibly from several different

countries. Again, an awareness of and sensitivity

to the differing modus operandi of

businesses and people around the world is

imperative.

Perhaps nowhere is this heightened awareness

more necessary than in the area of

conflict management. While some cultures

(and individuals) see conflict in a strictly

negative light, others see it as a necessary

growth procedure (for both individuals and

business alike). But whether conflict within an

organization is viewed as desirable or not, the

fact is such conflict will exist. As long as

organizations are composed of and operated

by human beings, there will be conflict. When

such conflict is recognized, acknowledged and

managed in a proper manner, organizational

benefits will accrue.

This paper presents a model which enables

leaders to manage conflict in a positive,

beneficial fashion. A case situation involving a

multinational bank with a diverse workforce is

presented. The nature of conflict is discussed,

and contributors to conflict explored. A

variety of conflict management techniques

will be reviewed and discussed. Finally, a

proposed nine-step model for managing conflict

is presented. The proposed model is then

applied to the case situation to illustrate its

practical applicability to business today.

The scenario

It was the beginning of his fifth year as

Managing Director of his multinational,

Swedish-owned bank. Olaf Lindholm (a

pseudonym) was upbeat about his bank's

current status. Over the past four years, the

firm had grown and developed in an

impressive fashion ± new banking services had

been introduced, operations had been

streamlined, and a number of qualified

The authors

John R. Darling is President and Professor of International

Business, Pittsburg State University, Kansas, USA.

Christine E. Fogliasso is Associate Professor of

Management and Marketing, Pittsburg State University,

Kansas, USA.

Keywords

Cross-cultural management,

Conflict resolution, Model, Management techniques

Abstract

Business today is increasingly being impacted by

international considerations. This international impact is

felt in areas such as locating the various sources of raw

materials, coordinating production schedules with plants

around the globe, selecting marketing strategies to be

employed in various cultures, determining which financial

decisions need to be made in a world market, and also

how to best utilize a workforce rich in diversity of talents,

backgrounds, and communication styles. This paper

addresses the last of these considerations: namely, how

to effectively manage a diverse workforce. In particular,

this work is directed toward helping managers to deal

with conflict in the workplace, and to effectively manage

that conflict across cultural boundaries. A case situation

involving a multinational bank with a diverse workforce is

presented. The nature of conflict is discussed, and

contributors to conflict explored. A variety of conflict

management techniques is reviewed and discussed.

Finally, a proposed nine-step model for managing conflict

is presented. The proposed model is then applied