Conflict in Family Businesses

Conflict, Models, and Practices

Josiane Fahed-Sreih

• Publisher: Palgrave Macmillan
• Year: 2017
• Print ISBN: 9783319628516
• eBook ISBN: 9783319628523
• Topic: Business
• Subtopic: Small Business
• Index: Business

This book presents methods for dealing with conflict in family firms. The first part of the book defines conflict in general and then in the context of family businesses. It then identifies several approaches to dealing with conflict. As the author makes clear, conflict can negatively impact the performance of a family firm while unresolved conflict often results in unsuccessful transition to the next generation. Therefore, she presents a model that looks at the causes of conflict and ways of resolving it. The second part of the book presents case studies of conflicts in family business, examining such companies as Gucci and L'Oreal and applying the theory. This book will serves as a foundational text in managing disputes in family enterprises.

© The Author(s) 2018

Josiane Fahed-SreihConflict in Family Businesseshttps://doi.org/10.1007/978-3-319-62852-3_1

Begin Abstract

1. Conflict

Josiane Fahed-Sreih¹

(1)

Lebanese American University, Beirut, Lebanon

Josiane Fahed-Sreih

Email: [email protected]

Abstract

This chapter introduces conflict. It starts with the various definitions of conflict and the way it develops. Then the roles of conflict including both the positive and negative outcomes are discussed. Later, the causes of conflict in an organization are highlighted while discussing the different modules and types of conflict. Finally, the processes and stages through which conflict passes are further deliberated.

Keywords

ConflictRelationship conflictTask conflictProcess conflictIncompatibilityCognitionIntentionsBehaviorOutcomes

End Abstract

1.1 Conflict: Defined

Conflict is a culturally defined event; it is understood differently by different people. It is a kind of disagreement between two or more persons, parties or entities. It could also be among ideas, values, perspectives, thoughts, opinions, or attitudes. It is present at all levels of human social relationships. Conflict is normal. It is not a deviant or sick behavior. It is largely a perceived phenomenon. It is our perception of the situation that determines whether a conflict exists.

The term conflict refers to perceived incompatibilities resulting typically from some form of interference or resentment. It is the procedure that starts when one party perceives that another has frustrated, or is about to frustrate (Thomas 1992). This definition is broad enough to cover a wide variety of conflict phenomena; however, it identifies a starting point for the conflict procedure, the point when other social manners like decision-making and discussions “switch over” into conflict.

There is still no commonly accepted definition of “conflict ” in the literature. However, we will adopt Thomas’ (1992) definition “a process that begins when one party perceives that another party has negatively affected, or is about to negatively affect something that the first party cares about” (Robbins and Judge 2007: 504).

There seems to be two general approaches to the concept of “conflict .” According to Schmidt and Kochan (1972), the first approach has emphasized more closely upon phenomena linked to competitive intentions, such as deliberate interference with the other’s objectives. This definition tends to be closer to popular usage of the term “conflict” and is particularly popular in the industrial relations literature discussing strikes and job actions. The second approach, according to Pondy (1967), has been to adopt more general definitions which move “upstream” in the conflict procedure to involve events (usually a party’s perceptions) which occur before the choice of conflict-handling modes. These definitions incorporate a broader range of the phenomena by allowing the conflict procedure to contain “branches” which comprise conflict-handling modes other than competition.

As stated in Vokić and Sontor (2009: 4), conflict is an “unavoidable component of human activity (Brahnam et al. 2005: 204) that may be viewed as a situation in which the concerns of two or more individuals appear to be incompatible (Darling and Fogliasso 1999: 394), and which tends to occur when individuals or groups perceive that others are preventing them from attaining their goals (Antonioni 1998: 336).”

1.2 Development of Conflict

Since not all conflicts are the same, conflicts sometimes develop in a sequential manner. This sequence is known as the spiral or escalation ladder of conflict (Pruitt 2009). A spiral ladder taken from Eunson (2012) is shown in Fig. 1.1.

Fig. 1.1

The conflict spiral.

Source Eunson (2012: 451)

Each conflict develops in a different manner. There is no standard sequence of events that make conflict. This is why the proposed spiral is drawn in this form. In the conflict process, certain phases of the spiral are sometimes skipped. They may also occur in a different sequence or order (Glaser 2000; Kydd 1997).

The spiral is designed to be similar to a tornado. The more you go up, the stronger the effect, and the more difficult it is to get out of it. The spiral is divided into two main zones: the overt and the covert. In the covert zone, conflict is still not openly acknowledged, and it has not yet emerged into public view; while in the overt zone , conflict is done or shown openly; it becomes public and direct.

The sequence of the phases of the spiral is as follows: Covert Zone includes the toleration, rumor-mongering, gossip, non-cooperation, theft, and sabotage. The overt zone includes the nagging and whining, complaining, anger, blaming, arguments, critical incident(s), selective perception , involvement of others, issue linkage , ritual/hot-button words, formal complaint, threats , formal action (mediation , negotiation , litigation , and arbitration ), provocation , retaliation —tit for tat , and finally violence (toward self or toward others).

Here some questions should be raised. Is it possible to get out of the spiral during the conflict process? Are there certain standard techniques to find positive resolutions of the conflict while in the spiral? Are there conditions where it is suggested to stay in the spiral rather than trying to get off of it? Here comes the role of the conflict management techniques offered in the conflict management chapter.

Conflict usually involves antagonistic behaviors and attitudes. These behaviors result in a change of vision of the antagonistic parties to each other. They may see each other as unreasonable, illogical, and working against the expected methods, thus leading to the development of negative thoughts of their opposites. Antagonistic behaviors are sometimes reflected by sabotage, name calling, and physical aggression. Organizations usually aim to minimize the antagonism and its consequences. Conflict presence is based on the perception of it. So, if none of the parties is aware of the presence of a conflict , then it does not exist (Robbins and Judge 2007).

There are many causes for organizational conflict . These can be scarce resources, jurisdictional ambiguities, personality clashes, differences in power, differences in status, difference in culture, interdependence , goal differences, group identification, group bias, and communication breakdown. Changes on the personal and social level are sometimes caused by conflict. Due to the constant changes in the environments of organizations, conflict would certainly appear. Conflict prevents stagnation and certain stability conditions that may not be in the advantage of the organization. It also stimulates curiosity and need for change. Parties in conflict have beliefs that they have to neutralize or destroy each other because they think that they certainly have incompatible goals and visions to the problem causing the conflict. Conflict is sometimes considered as a social interaction with struggles over resources, power and status, beliefs, and many other preferences and desires (Thakore 2013).

There are three discipline-based approaches to the study of conflict : the micro-level analysis of conflict, negotiation , and third-party dispute resolution. The micro-level (psychological) analysis of conflict concentrates on conflict within and among human being as individuals specifically on intrapersonal , interpersonal , and small group behavior variables that affect conflict causes, dynamics, and outcome. The macro-level (sociological) approach focuses on groups, departments, divisions, and even entire organizations, as units of analysis for understanding conflict dynamics. Researchers have discussed the functions and dysfunctions of social conflict, as well as the analysis of conflict at the social level. The third approach employs economic analysis using models of economic rationality to individual decision-making and even to complex social behavior.

In addition to the three conflict research approaches closely tied to disciplines, there are three more that owe their origin to the specific area of applications. The labor relations approach includes issues pertinent to the determination and administration of the employment relationship. Recent research has focused more heavily on the determinants and consequences of work place conflict resolution mechanisms and techniques. Another approach is bargaining and negotiation , in which researchers enumerate sets of principles for effective negotiation, while others borrowed from game theory to model the bargaining process. The last approach is the third party-dispute resolution which focuses on labor and international disputes, and emphasizes the actions taken by parties external to the conflict to resolve it or restore effective negotiation. Cross fertilization has taken place among the six approaches leading to a limitation to three approaches: the micro level, negotiation, and third-party dispute resolution.

Conflicts are a dynamic constitute of a complex interaction between attitudes and behaviors. Outsiders are prone to be involved as the conflict develops and may themselves in this manner become parties in a prolonged conflict. Conflict is everywhere. Every relationship has a potential for conflict. It exists inside and around people. It is natural and inevitable in human social relationships. It occurs with the different levels of a society: intrapsychic, interpersonal , intragroup , intergroup , and international (Burton and Dukes 1990). It should be expected and considered a normal experience in the work environment. Rather than avoided, it should be well channeled, handled, and resolved. Since the birth of organizations, managers had been used to view conflict as a negative force. Howev...

Table of contents

• Cover
• Frontmatter
• 1. Conflict
• 2. Conflict Management
• 3. Conflict in Family Businesses
• 4. Gucci Conflict
• 5. What’s the Most Important in Human’s Life? “Family OR Business”
• 6. Est. Sam Miorry & Sons
• 7. Malakieh Sweets
• 8. Dakroub Textiles3
• 9. Aleea Steel SAL4
• 10. Suleiman Corporation Family Business5
• Backmatter