Human Management in BG Group - Thesis Example

?Human Management Executive Summary This particular paper aims towards analysing the theoretical perspective of conflicts with reference to the Blakeand Mouton Model. In order to render a practical understanding of conflict management, the paper will also take reference from the case of BG Group which was identified to face noteworthy conflicts while operating its business functions, especially related to its Human Resources Practices. In this regard, a few key recommendations as well as an action plan has been portrayed for BG Group so that the organisation can manage different conflicts that it had to face in its current business affairs. Table of Contents Executive Summary 2 Introduction 4 Theoretical Perspective: Blake and Mouton Model of Conflict Management 5 Conflicts Faced by BG Group 7 Discussion 9 Conclusion 11 Recommendations 12 Action Plan 14 References 14 Bibliography 18 Introduction BG Group is recognised as a foremost player in the global business market of energy. It is a UK based organisation, but has focused on engaging a considerable proportion of its entire human resources from the international environment which has perpetually increased the diversity of the workforce engaged and thus increased the risk of conflicts owing to the varied range of individualities (BG Group Plc, 2012). With due consideration to this fact, BG Group can be identified to possess the ability towards implementing effective governance in order to operate its business functions successfully worldwide mitigating the consequences of conflicts (BG Group Plc, 2012). The concept of conflict management is often described as the process of dealing with conflict situations that may occur within the workplace with efficiency mitigating its negative consequences that may have a significant impact on the sustainability of an organisation. The role of conflict management, in this regards, considers the proper identification of the various causes giving rise to conflicts which include scarce resources, adversity as well as faulty communication among others delivering importance not only towards the organisational interests, but also towards the benefits of the employees (Eunson, 2012). It is in this context that various models had been developed in order to frame the notion of conflict management and thus suggest a comprehensive pattern to the organisations for resolving such issues. Blake and Mouton Model can be regarded as such a framework which renders an unambiguous understanding of the conflicts arising within the organisational sphere and also suggests the required measures to resolve the issues (Verma, 1998). The aim of the paper is to develop a comprehensive understanding of the theoretical perspective presented by Blake and Mouton Model of conflicts management. The understanding will further be related with the different conflicts that were faced by BG Group in its current operations. Moreover, the overall discussion will be based on the conflicts that were faced by the BG Group which will further be continued with effective recommendations and strategic action plan referring to the theoretical understanding of the concept. Theoretical Perspective: Blake and Mouton Model of Conflict Management The term ‘conflict’ is characteristically described as a strong competition or struggle between various people or individuals with differing values, objectives, ideas and beliefs. Conflict is often observed to result in terms of non-productive consequences which might have had a long-term impact or can last for only a short period of time. It can also be defined as a condition in which more than one party possesses mismatched objectives and also differs in terms of their behaviour as well as their perceptions. The various sources of conflict generally include structural, role and resources conflict. Structural conflict is observed to fundamentally arise from perplexities in managing the need of the diverse organisational sub-units. In the similar context, role conflict is generally caused by misinterpretation regarding the prescribed business responsibilities. Resources conflicts chiefly generate from the disagreements within the interest groups that compete towards the implementation of organisational resources. In this context, the aspect of conflict management plays an imperative role towards managing as well as resolving the conflicts within an organisation in order to diminish the odds of non-productive acceleration. The factor of conflict management fundamentally involves attaining proficiencies associated with conflict resolution, generating self-awareness regarding the modes of conflict and forming a dynamic management structure in order to resolve any such issues (Bercovitch, n.d.). In relation to the aspect of conflict along with its management, Blake and Mouton Model suggested certain important procedures in order to resolve any sort of such conducts that generally occurs in any particular business organisation. The Conflict Model of Blake and Mouton or the Managerial Grid is fundamentally based upon certain dimensions that are primarily concerned not only towards production but also towards the people (Blake & Mouton, 1982). Concentrating on the dimension concerned towards people, the model states the degree to which a particular business leader of any organisation considers the requirements of the team or group members along with their interests in order to achieve the goal of the assigned tasks. In the similar context, in the dimension of concern towards production, the model signifies the extent to which a business leader focuses upon the objectives, efficiencies as well as the productivity of the organisation with the intention of attaining the desired overall organisational objectives. In this regard, according to Blake and Mouton Model, any type of conflicts that arises in a particular organisation can be resolved through smoothing, withdrawing, problem-solving, compromising and forcing (Blake & Mouton, 1982). In terms of smoothing, any conflict can be resolved by rendering a greater concern towards people and comparatively a lower productivity concern. Similarly, concentrating on the tactic of withdrawing, any conflict can be managed by emphasising upon the depiction of low concern for both productivity as well as people. In regard towards problem-solving tactic of conflict management, a particular conflict can be settled through possessing greater concern towards people, simultaneously along with productivity. However, through compromising any type of conflict can be resolved focussing upon moderate concern including both towards productivity along with people. Finally, in terms of forcing tactic, any sort of conflict can be mitigated or resolved through emphasising upon low concern towards people and greater concern towards productivity (Cai & Fink, 2002). However, the above discussed tactics of resolving conflicts essentially relies upon the intensity level of the disagreements that prevail in a particular business organisation. Hence, these are the certain noteworthy dimensions through which a definite business leader can manage, settle or resolve any sort of conflicts that prevails within the entire business organisation. Conflicts Faced by BG Group After acquiring a brief idea regarding the various policies that were established as well as executed by BG Group, it can be stated that the business organisation efficiently intends to settle, resolve or manage its conflicts while performing its business functions. In its recent operations, the company had to face a few conflicts which related to its human resource management strategies. The human resource conflict that was identified in the month of January of the latest fiscal, i.e. 2011-2012 in BG Group was centred to one of its executive level employees named John Flexman. It has been recognised that he was observed to be accused of improper execution of social media to promote his CV in other organisations for better job opportunities which was alleged to be a breach of the company’s ‘new company policy on conflicts of interest’. He was also allegedly performing unethical business practices taking personal benefits of his position within the company (Williams, 2012). Furthermore, he was also found guilty of including the confidential information in his CV which included the details regarding the decreased rate of staff attrition within BG Group. According to the management officials of the organisation, John Flexman performed unethical business practices by ticking a box particularly in a communal related networking website in order to register a curiosity in the field of “career opportunities”. This particular unethical behaviour of John Flexman was termed as not acceptable to the management officials of the organisation keeping in account the organisational interests and hence, he was compelled to immediately leave his job. However, in response, John Flexman argued that the information that he stated was accessible in the annual reports of the organisation and also declared that he was wrongfully accused of performing any sort of unethical business practices. BG Group stated that John Flexman violated the business policies of the organisation that were based upon the organisational conflicts of interest (Williams, 2012). In this regard, John Flexman was told to remove entire details regarding his experience as well as various relevant information that are associated with BG Group from his personal profile excluding job titles as well as dates. On the basis of the above mentioned grounds, the major dispute regarding the profile as well as the unethical business practice that was performed by John Flexman, ultimately resulted to his resignation from the organisation. This specific human resource related conflict associated with John Flexman raised a noteworthy issue towards the execution of communal websites by the working people or the employees (Williams, 2012). Along with the human resource related conflict, BG Group also had to face finance or investment related conflicts. The assertion of business principles of BG Group sets certain major ethical principles that attempt to focus upon the fundamental value within which the business organisation operates its functions. Additionally, BG Group intends to enter only in those nations where the organisation can perform its business operations according to the business principles that are set by the organisation. As the businesses of BG Group are related with natural gas, there lies every probable chance for the release of various greenhouse gases that poses harmful effects towards the environment and thus is subject to prime ethical concerns in order to mitigate the resources conflict (The Times, 2012). Discussion It has been observed that one of the significant conflicts faced by BG Group is regarding the styles deciphered by its organisational leaders that raised conflicts of interests related to the organisational benefits. In this context, BG Group had to face the conflict in relation to human resource management issues regarding the removal of one of its employees from job due to the misconduct of the organisational policies. Furthermore, BG Group also had to face conflicts regarding the investment or finance related decisions that led towards various risks for the organisation (The Times, 2012). It is worth mentioning in this context that in its conflict management approach, BG Group intends to maintain superior benchmarks of ethical conduct implementing strict policies that does not entertain any sort of bribery or corruption practices on behalf of employees irrespective of their hierarchical level. The organisation principally believes that by performing such act, it can preserve its probable interest related conflicts at a minimum level and thus reducing its negative influences over the organisation. In order to maintain superior as well as enhanced ethical standards, BG Group performs certain effective business principles with the intention to cope up with various conflicts that include complying with regulatory requirements, not entertaining any sort of corruption related practices and performing business functions with fairness, transparency and integrity. In addition, for the purpose of minimising as well as avoiding the conflicts relating with the aspect of human resource and finance related issues, BG Group competently implements its policies of maintaining ethical conduct within the entire business organisation. The organisation executes the guiding principles based upon ethical conduct through communicating as well as delivering adequate information regarding the policies to the working teams or the employees and preserving a sound system with the intention of recognising, mitigating, settling or managing different types of conflicts that were faced by BG Group (BG Group, 2011). The other initiative that was considered by BG Group in order to avoid as well as to resolve various types of conflicts faced by the organisation is regarding the implementation of the policy in relation to specific field of study that include human resources, social performance and ethical conduct. In this context, BG Group can be identified to make certain deliberate efforts in order to resolve the conflicts arising. For the purpose of complying with the various requirements of the policy in relation to human resources and social performance, BG Group laid major focus upon the ethical conduct, working guidelines and human resource related issues by large extent. Furthermore, BG Group periodically assessed different risks or problems that generated from various conflicts and also been conducting its business operations with respect towards the aspect of human rights. Thus, from a generalised point of view it can be stated that BG Group basically faced such conflicts that include human resource related issue associated with one of its employees along with investment related decisions that ultimately generated conflicts within the organisational hierarchies and also amid its stakeholders (BG Group, 2011). Conclusion Conflicts can take place within a particular business organisation due to a continuously increasing gap between the organisational interests and the individual interests among the employees. The adequate execution of the idea of conflict management is therefore quite necessary in order to diminish, settle or resolve any sort of business related disagreements in terms of conflicts with adequate significance. In this context, there lies the presence of several significant models such as Blake & Mouton Model in which certain vital tactics or procedures have been propounded with the intention of resolving various conflicts. BG Group, which is one of the foremost business organisations dealing with the supply of natural gas, also recognised to face certain conflicts or disagreements while performing its business operations in various countries. BG Group was recognised to face the conflicts that were related to human resources as well as finance or investment related aspects. The business organisation generally introduced as well as implemented various policies in relation to definite area of study that included ethical conduct concerning its Human Resource Practices and social performance among others. BG Group believes that the establishment as well as the utilisation of the above discussed policies might lead towards minimising any sort of conflicts in future by a large extent. Recommendations In order to resolve any sort of conflicts that fundamentally generates within the business organisation which may involve human resources, social performance and investment or finance linked aspects, BG Group might execute the various procedures that are included in the Blake and Mouton Model. In this similar context, BG Group might allocate greater concentration towards the interests of people or group members considering their various requirements in order to monitor their performance and attain the determined objective. In other words, BG Group might follow the tactic of forcing, as mentioned in the Blake and Mouton Model in order to resolve its various conflicts that it had to face while operating its business functions (Blake & Mouton, 1982). Moreover, BG Group might also follow certain key factors in order to manage or to resolve various sorts of conflicts that it had to face while performing its business operations. The vital factors include establishing different effective procedures with the intention of managing the conflicts and demonstrating competent leadership commitment. In addition, the other aspects include generating a broad as well as fruitful partnership with the working people or the employees, initiating new business partnerships with different business organisations and enforcing the successful policy with the sole intention of managing conflicts effectively (OECD, 2005). Along with the above discussed significant factors, BG Group can also focus upon the performance of the employees along with their private interests which might come into conflict with the organisational interests. The organisation, thereby, should be aware of the facts that if there is any sort of conflicts, the personnel should instantly report to their superior level of officials in order to manage the conflicts by adopting certain vital steps. Action Plan Action How Sensible Measurable Achievable Realistic Timed 1) Utilising Blake and Mouton Model By rendering greater concern towards the interests of working people It would help the organisation to resolve conflicts It could be measured with regard to profitability It could be attained with the aid of knowledge management No requirement of additional investment Full economic or financial year 2) Demonstrating competent leadership commitment By execution of strategic leadership tactics It would help the organisation to resolve conflicts It could be measured in respect to profitability It could be attained with the aid of management Incurring extra cost is not required Full economic or financial year 3) Generating partnerships with the employees By preserving smooth relation It would help the organisation to resolve conflicts It could be measured taking into account the productivity of the individuals and the entire group It could be attained with the aid of management No investment required Full economic or financial year References BG Group, 2011. Human Rights Policy. Governance. [Online] Available at: http://www.bg-group.com/AboutBG/Governance/Documents/BG_Policy-HumanRights.pdf [Accessed May 25, 2012]. BG Group, 2011. Ethical Conduct Policy. Governance. [Online] Available at: http://www.bg-group.com/AboutBG/Governance/Documents/BG_Policy-EthicalConduct.pdf [Accessed May 25, 2012]. BG Group Plc, 2012. Company Profile. About BG Group. [Online] Available at: http://www.bg-group.com/AboutBG/Profile/Pages/BGProfile.aspx [Accessed May 25, 2012]. BG Group Plc, 2012. Our Business. Home. [Online] Available at: http://www.bg-group.com/OurBusiness/OurBusiness/Pages/OurBusiness.aspx [Accessed May 25, 2012]. BG Group Plc, 2012. Our Strategy. Our Business. [Online] Available at: http://www.bg-group.com/OurBusiness/Strategy/Pages/OurStrategy.aspx [Accessed May 25, 2012]. Bercovitch, J., No Date. Introduction. Conflict and Conflict Management in Organizations: A Framework for Analysis. [Online] Available at: http://aspheramedia.com/v2/wp-content/uploads/2011/02/5000214.pdf [Accessed May 25, 2012]. Blake, R. R. & Mouton, J. S., 1982. A Comparative Analysis of Situationalism and 9,9 Management by Principle. AMACOM Periodical Division, pp. 20-43. Cai, D. A. & Fink, E. L., 2002. Conflict Style Differences between Individualists and Collectivists. Communication Monographs, Vol. 69, No. 1, pp.67-87. Eunson, B., 2012. Conflict Management. John Wiley & Sons. OECD, 2005. OECD Guidelines for Managing Conflict of Interest in the Public Service. Policy Brief. [Online] Available at: http://www.oecd.org/dataoecd/51/44/35365195.pdf [Accessed May 25, 2012]. The Times, 2012. Investing In Natural Gas: Drilling Down Into The Risks. Case Studies. [Online] Available at: http://businesscasestudies.co.uk/bg-group/investing-in-natural-gas-drilling-down-into-the-risks/more-than-just-finance.html [Accessed May 25, 2012]. Williams, C., 2012. Executive 'Forced Out Of Job' Over LinkedIn CV. Social Media. [Online] Available at: http://www.telegraph.co.uk/technology/social-media/8992541/Executive-forced-out-of-job-over-LinkedIn-CV.html [Accessed May 25, 2012]. Bibliography Gill, R., 2006. Theory and Practice of Leadership. SAGE Publications. Huczynski, A. & Buchanan, D., 2007. Organizational Behaviour Sixth Edition 2007. FT/Prentice Hall. Kellerman, B., 2004. Bad Leadership: What It Is, How It Happens, Why It Matters. Harvard Business School Press. Read More