Conflict, Decision Making, and Organizational Design Research Paper - 2

Conflict, Decision Making, and Organizational Design - Research Paper Example 432). The real problem was that GM had developed too many levels of management. The number of corporate stuff was huge. So the decision making was slow and cumbersome, and, therefore, change was difficult. So the major challenge the new management faced was to eliminate the hierarchical levels and reduce the total number of managers. The top management expected that such a move will reduce operating cost, improve communication, and encourage innovation. Some analysts estimated a termination of 20,000 managers. The task was enormous (Jones & Mathew, 2007, p. 432). The board was of the belief that the shareholders’ interest can be served only by taking tough organizational design decisions. In 1993, GM announced its intention to cut 50,000 hourly and 24,000 salaried jobs and to close or consolidate 21 parts and assembly plants by 1995 to save money. The revolt by the board was an important mile stone in GM’s history. From that point on, GM’s performance improved every year (Jones & Mathew, 2007, p. 432). Conflict is not all about war, violence, and loss of life. By definition, a conflict is simply a disagreement among people on an issue. Conflicts can be small, as among two persons, or they can be large and complex, as among two or more countries. Conflict is a natural and normal part of human life and interaction. When communication to settle a conflict is constructive, the conflict is beneficial. Constructive approach stimulates new understandings and more socially just solution with stronger relationship. In case of a communication breakdown, conflict can lead to separation and hostility (Sughru, 2009, pp.7-8). While analyzing conflicts, it is better to break down the issue into five variables (Sughru, 2009, p. 10). First and foremost we need a complete picture of the actors and understand their direct or indirect role. In other cases, an actor may not be