CONFLICT MANAGEMENT PRACTICES AT HONDA

PRESENTED BY:

HIMANSHU GUPTA

CONFLICT & CONFLICT MANAGEMENT

“Process in which one party perceives that its interests are being opposed or negatively affected by another party”

Conflict management is the process of limiting the negative aspects of conflict while increasing the positive aspects of conflict.

The aim of conflict management is to enhance learning and group outcomes, including effectiveness or performance in organizational setting.

Properly managed conflict can improve group outcomes.

TYPES OF CONFLICT

Substantive and affective conflict

Organizational and interpersonal conflict

Conflict resolution and conflict management

Honda Motorcycle & Scooter India Pvt. Ltd.

Honda is World’s largest manufacturer of Motorcycles. Headquartered in Minato, Tokyo, Japan. HMSI is established in 20th October 1999 in Manesar (Haryana). HMSI is a wholly owned subsidiary of HMCL Japan. Total 3000 employees : Out of that 2000 in worker category:

(1300 confirmed workers, 700 contract workers) Apart from this 700 were Trainees & 300 were apprentices.

Human Resource Policy at HMSI

Two fundamental beliefs: • Respect for individual differences- initiative, equality & trust • The Three joys – joy of buying, joy of selling , joy of manufacturing. Association promoted among all employees through similar uniforms and same canteen facilities for all. Mainly focused on developing individual’s capacity to think, to reason, and to dream. Joy of Creating was also an important value for the company. Providing work environment free from discrimination, indiscipline and violence.

Human Resource Policy at HMSI

Appraisal was performed by the section head and the shift in charge. Workers were divided into five categories with increments ranging

from 400 to 1400 per month. Opportunities for workers ranged from workers to sub-leaders to

assistant executives to executives. No one covered by Payment of Bonus Act, 1961 & most of

employees were not covered by Employees state insurance act because of high salaries.

• Company gave an ex gratia of one month’s gross pay as incentive around Diwali • No scope for workers’ expression through any letter to the editor.

Rise of issues at HMSI

The first labor unrest voiced in November 2004 regarding the Diwali gifts.

Movement Sheet for Washroom Breaks. Managers showed partiality in matters related to job posting. Strict attitude of the Japanese vice president. Too much of workload in the form of handling multiple machine at

the same time. Strict in granting leaves.

Reasons for unrest

The company failed to understand the needs and demands of the employees.

Workers viewed Management activity as coercive and repressive. HR policies adopted by the company was not in the context of

Indian work environment. Top management were inaccessible to workers. Hindrance by management towards formation of employee

union. Role of external parties in escalating the situation.

Consequences

Slowdown of work Output was affected Widespread discontent among the workers Workers demanded creation of union Employees encircled the management resulting in violence Shutting down of production The incident of 25th July 2005- workers got beaten up by the

police

After-Effects of conflict

Registration of employee union Change in management attitude felt by union leaders;

concessions allowed on various fronts A small room allotted to union leaders with a promise of a union

office in future Invitation to all 7 union office-bearers to discuss workers-related

problems or issues Overtime working issues: lure of extra money; medical problems,

workers not fresh Overtime working was scraped in most cases.

After-Effects of conflict

Diwali gift: Rs. 2000 & credit in bank account of Rs. 4000 as incentive bonus for all including managerial staff

Foundation day was again extended to family members On Sep 9th, 2005 'A shift' in assembly achieved its target of 1000

scooters for the first time after union formation. VP- Manufacturing, GM- Productions came to shop floor &

commended achievement of workers; sweet distributed to all workers next day.

Conclusion

Failure of mgt. to realize importance of Diwali in India Tokenism of conciliation in resolving collective issues Carelessness on the part of Indian mgrs. about labour power

After a problem is identified, the next step in conflict resolution is to gain a better understanding of the situation. If conflict isn’t handled effectively, results may cause further damage and lead your team or organization down a vicious path of negativity.

Recommendations..

Provide training for medium and senior management level on conflict management.

Make job postings more transparent and fair to all employees Make production process more flexible Improve communication within the hierarchy  Set up weekly/monthly meetings between the top management

and workers. Hire an external negotiator to when the problem occurs  Provide monthly survey to see how the employees are feeling

about their work and work environment

THANK YOU….