Question

Case 3 – The Approach of Negotiation

Background:

American Dream Holdings, Ltd. (ADHL), is the 100 percent owner of eighty-eight subsidiary corporations, some of which operate in virtually every state of the United States and many of which operate in a limited number of states. One of the subsidiary corporations, EFC Corp., is the general partner of two thousand limited partnerships with operations scattered around the world. EFC Corp. is the flagship and largest of ADHL’s subsidiary companies.

ADHL also has 20 to 50 percent ownership interests in other business operations. ADHL is owned by two individuals: one, Mr. Major, with 80 percent, and the other, Mr. Minor, with 20 percent. The individual owners operate additional businesses not under the ADHL umbrella. Such additional businesses are considered affiliates. ADHL provides legal, financial, and administrative services including payroll and human resource management to all of its subsidiaries as well as to many affiliates. ADHL collects a

monthly fee for such services. The fee is based on estimated needs for the services and is due regardless of the number of hours actually spent on a particular company’s matters. ADHL does not assess or collect supplemental fees for work done in excess of the estimate.

The group of eighty-eight subsidiaries and ADHL employ two thousand individual employees. All employees participate in the year-end bonus plan that is based upon group net profit attainment. The organizational structure including departmental organization is dictated by ADHL executives. The chief operating officer of ADHL, Ms. Iwon, was initially selected and hired by the 80 percent owner to be EFC Corp.’s senior vice president. EFC Corp.’s chief operating officer, Mr. Toolate, was selected and hired by the 20 percent owner approximately two months after Ms. Iwon was hired.

Approximately one year after Mr. Toolate was hired, Ms. Iwon orchestrated a reorganization that included her being promoted to the parent holding company position. EFC Corp. is perpetually three months behind in paying fees to ADHL. EFC Corp. is recalcitrant in distributing financial reports to ADHL.

Case Questions:

Question 1: Using a systems approach, identify the system or systems and their subsystems as well as the various relationships and interdependencies you see. You may utilize a drawing such as a sociogram if you like.

Question 2: Using a systems approach, identify the various conflicts in the case including describing how each is a conflict. Be sure to note how each conflict you identify meets the definition of a conflict.

Question 3: Continue your diagnosis and assessment by analyzing the function served by or the effect of each conflict in the case; assessing whether the system structure is competitive, avoidant, or collaborative; and determining your strategy and/or strategies.

Answer 1

Answer:-

ans (1):- The systems approach is utilized to show between connections and relationship of the different systems and sub-systems in an authoritative structure (Jackson, 2012).

Here ADHC is the system and it has three sub systems to be specific, its 80% holder called Mr. Major and the staying 20% holder called Mr. Minor. It has numerous subsidiaries where it has 100% percent proprietorship. The biggest subsidiary of ADHL is EFC Corporation which has its activities all through the world.

The sub systems of Mr. Major are two officials working under him to be specific the Chief working official Ms. Iwon and Mr. Toolate.

ans (2):- Conflict is the difference among the gatherings in question. At the point when at least two individuals have distinctive arrangement of objectives and figuring which don't coordinate with one another then it prompts conflict.

It emerges in the middle of gatherings who are bury related or associated on one another because of unparalleled reasoning, thoughts, recognitions, objectives, shortage of assets, or intercession from one another blocking the development procedure of each (Batcheldor, 2000). The significant conflict is in the middle of the relationship of ADHL and EFC. EFC isn't prepared at this point to disseminate the budget reports to the holding organization, ADHL.

This is a significant conflict as the parent organization has full option to check the financials of its subsidiaries. The other conflict is in the middle of the officials of the organization. Ms. Iwon elevated herself to a situation in parent organization by rebuilding the association. This is a conflict as the choice has been taken without the meeting of different directors and officials of the organization.

ans (3):- A community working condition is one where all the individuals in the organization work mutually and advance the prosperity of one another. It is a sort of workplace where conflicts are thought as the venturing stones to assemble agreement by supporting individuals in the organization.

Conflict is thought as a chance to frame orchestra, collaboration and to improve the choices. The organizational structure of the organization isn't community oriented as none of the individuals in the organization are attempting to help one another. EFC isn't supporting ADHL and the officials Iwon and Toolate are not in agreement (lang, 2009).

The system is said to be serious where the individuals and the elements of the organization don't concur with one another by any means. Here the conflict is settled by appropriate yes or no and there is no mid way.

There are differences that enthusiastic and the way toward settling may include standing up to openly. The earth is likewise not serious as the organizational structure isn't impacted by any dynamic contradiction. Individuals are quiet and there are no showdowns yet.

The system is avoidant. Avoidant organizational structure is one where the conflicts are intentionally maintained a strategic distance from in order to keep harmony and accord in the organization.

EFC is abstaining from dealing with the financials to ADHL as it wouldn't like to upset the agreement. Iwon redesigned the organizational structure and drove herself to a decent situation in parent organization without anyone else.

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