Scribd
Upload
784 views28 pages

Unit - V: Conflict Management and Ethics in International Business Management

The document discusses conflict management and ethics in international business management. It covers the sources and types of conflicts that can arise in international business, as well as strategies for conflict resolution through negotiation and the role of international agencies. Additionally, the document addresses ethical issues that can occur in international business and frameworks for ethical decision making.

Uploaded by

Karthikeyan R
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
784 views28 pages

Unit - V: Conflict Management and Ethics in International Business Management

The document discusses conflict management and ethics in international business management. It covers the sources and types of conflicts that can arise in international business, as well as strategies for conflict resolution through negotiation and the role of international agencies. Additionally, the document addresses ethical issues that can occur in international business and frameworks for ethical decision making.

Uploaded by

Karthikeyan R
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 28

Unit - V

CONFLICT MANAGEMENT AND


ETHICS IN INTERNATIONAL
BUSINESS MANAGEMENT
• Disadvantages of international business -
Conflict in international business- Sources
and types of conflict - Conflict resolutions -
Negotiation - the role of international
agencies -Ethical issues in international
business - Ethical decision-making.
Disadvantages of International
Business
•  Adverse effects on economy
• Competition with developed countries
• Rivalry among nations
• Exploitation
• Legal problems Publicity of undesirable fashions
• Language problems
• Complicated technical procedure
• Shortage of goods in the exporting country
• Adverse effects on home industry
• Dumping policy
Conflicts in International
Business
•  Business and financial institutions have an
important role to play in avoiding or resolving
conflicts that are associated with economic
production.
• International conflict is the clash of interest
between the host country, home country and MNC
or the firm related to these two countries.
Nature of Conflict

• Functional versus Dysfunctional Conflicts


• Competition and Cooperation Conflicts
• Social, Ethnic, and Racial Differences Conflicts
Types of Conflict 
Individual Level Conflict

• Human behaviour is need motivated. A person joins


any organization to satisfy his needs.
• An employee faces a conflict within himself when
he perceives that organization is not satisfying his
needs in accordance with his perceived standards
Individual Level Conflict -
Types
• Intra Individual Conflict
Conflict due to frustration
Goal Conflicts
Role Conflicts
• Inter Individual Conflict
Personal differences
Information Deficiency
Role Incompatibility
Environmental Stress
Group Level Conflict

• Intra Group (Within the Group Itself)


Facing New Problem
New values imported from Society
People from different socio economic background
• Inter Group (Between Groups)
Competition from resources
Task interdependence
Jurisdictional Ambiguity
Status Struggles
Organizational Conflict

•  Intra Organizational Conflict


Horizontal Conflict
Vertical Conflict
Line & Staff Conflict
• Inter Organizational Conflict
Between Organizations pursuing similar objectives
Between Govt. Agency & Organizations
Between Head Office & a Mfg Unit
Sources of Conflict in
International Business
Host Country Factors 
Home Country Factors 
Combined Factors
 Conflict Prevention Strategies
Negotiation in International Business

• Negotiation is face to face decision making process between


parties concerning specific products.
– J.L. Graham
• Negotiation is any form of meeting or discussions in which you
and/or the persons you are in contact with use argument and
persuasion to achieve an agreed decision or action.
– Alan Fowler
• Negotiation can be between home and host Government, foreign
company and local company, foreign company and host country
Government and the company with its home Government
Role of Negotiations

• Persuade Opponents to revise their BATNAs (Best


Alternative To Negotiated Agreement)
• Determine the other Party’s Interests
• Re-Assessing one’s own BATNA
• Building Trust
Factors Affecting Negotiations

• Language Variation
• Trust
• Cultural differences
• Professional Conflict
• Negotiated Goal
• Protocol
• communications
• Risk taking propensity
• View of time
• Decision making system
• Form of agreement
• Power distance
• Personal style
Negotiation Process
Role of International Agencies in Negotiation
 Ethics in International Business

• It can be defined as a system of moral standards or


values. Cultural beliefs and programming influence
our values. A sense of ethics is determined by a
number of social, cultural, and religious factors
Need or Importance of Business Ethics
Ethical Values

• Utilization of Natural resources of the host country


• Utilization of Natural resources of the home country
• Enter the foreign country through joint venture
• Transfer of technologies to the developing country
• Develop the managers and human resources of host
country.
• Discharge the responsibilities to various social segments of
the host country.
Ethical Issues
• Sexual & Racial Discrimination
• Human Rights
• Price Discrimination
• Bribery
• Ethical dimensions of Labour conditions
• Harmful products
• Environmental Issues
• Telecommunications issues
• Intellectual Property Protection
Ethical Decision Making
Problems in Ethical Decision Making

You might also like