Saturday, April 26, 2014

Final Individual Assignment - Collaborative Practices for organizations to address customer’s complaint

How Customer's Complaint Turns To Conflict Management




From past to now, organization addressing customer’s complaint is regarded as conflict management.  According to Thomas – Kilmann Conflict Mode Instrument by K.W. Thomas and Kilmann (1), there are five ways to manage conflict.
1) Avoiding
    The desire to withdraw from conflict. There is low cooperation and asseriveness.
2) Competing
    The desire to satisfy one's interest, regardless of the impact on the other party to the conflict.  
    There is low cooperation, but high assertiveness.
3) Accommodating
    The willingness of one party in a conflict to place the opponent's interest above his own. There is
    high cooperation, but low assertiveness.
4) Collaborating
    The Situation in which the parties to conflict each desire to satisfy fully the concern of all parties.
    There is both high cooperation and assertiveness.
5) Compromising
    The situation in which each party to a conflict is willing to give up own interest. There is medium
    cooperation and assertiveness.

In old days, organization tended to choose avoiding because they think the complaint is not very important. They didn’t see the complaint is an opportunity to turn the bad things to be good things. 
According to Managing conflict in today’s organization by Gordon L. Lippitt (2), the organization would regard the conflict is destructive thing. This only creates distrust between organization and customers. Also this decreases productivity internally because extra resources and time are needed to manage this conflict. Besides, they think conflict will destroy morale internally. Therefore, they tended to choose avoiding.

Why Change?


However, nowadays, many successful organizations will choose to manage the conflict by collaborating, accommodating or compromising because of below reasons
1)      Rapid communication by social media
2)      Transparent channel by social media
3)      Regard conflict as constructive thing
For first two points, they are more passive for organization to address complaint.
When we talk about social media, nowadays, customer can get the information from the internet rapidly. People can share news in facebook, forum, Youtube so that other people can access those information easily.  
Also social media would also bring a very transparent platform where people can share the news worldwide. We still have many different media to access different information in turn we can judge by ourselves. For instance, if we cannot some information in Yahoo, we can try to find it in Google.
The benefit of the social media is that they can target mass audience. Single voice could be amplified and spread worldwide. They can link up global into one point.
These two factors passively force organization to face the complaint/ conflict.

However, nowadays, many successful organizations will choose to manage the conflict by collaborating, accommodating or compromising because of below reasons
1)      Rapid communication by social media
2)      Transparent channel by social media
3)      Regard conflict as constructive thing
For first two points, they are more passive for organization to address complaint.
When we talk about social media, nowadays, customer can get the information from the internet rapidly. People can share news in facebook, forum, Youtube so that other people can access those information easily.  
Also social media would also bring a very transparent platform where people can share the news worldwide. We still have many different media to access different information in turn we can judge by ourselves. For instance, if we cannot some information in Yahoo, we can try to find it in Google.
The benefit of the social media is that they can target mass audience. Single voice could be amplified and spread worldwide. They can link up global into one point.
These two factors passively force organization to face the complaint/ conflict.

H&M garment factory’s fire accident in Bangladesh:
For instance, in 2010, there is a garment factory in Bangladesh was on fire accident. They supplied the garments for H&M.




Power of Social Media
At that period, many various social organizations and non government organizations claimed H&M had no code of conduct. They didn’t have social responsibility. The voices of those organizations were spread rapidly throughout the world by internet.  This message also brought to end consumers in different countries. They claimed that they would stop buying from H&M because H&M were unethical. Therefore, H&M were forced to face this complaint passively.
http://www.dailymail.co.uk/news/article-2332652/Beyonce-H-Ms-Bangladesh-sweatshop-scandal-employees-forced-work-days-end-face-sexual-abuse-child-labour-rife.html  


How H&M manages the conflict:
H&M chose to treat this conflict as constructive things. They turn it to an opportunity to rebuild trust with customers. According to Managing Conflict in Today’s Organizations by Gordon L. Lippitt (3), The goal of organizational leadership is not to eliminate conflict, but to use it to turn the released energy to good advantage.
Therefore, they set some new policies to commit to the Fire and Building Safety Agreement with their garment factories worldwide.


Moreover, they also choose to launch this policy/ agreement publicly. They have press conference and post this agreement in their website. This is a kind of promise management.

Promise Management
According to Promise Based Management by Donald N. Sull and Charles Spinosa, A promise is a pledge a provider makes to satisfy the concern of customers (4). Also, the article reflects that good promise is public(5) and explicit (6).
In the agreement, H&M clearly states that what they will do, what is the timeline and who is involved in order to make it explicit.
All these can help customers agree organization that they are willing to address the complaint and make improvement in turn build a long term relationship.


Reference:
1) Thomas – Kilmann Conflict Mode Instrument by K.W. Thomas and Kilmann
2) Managing Conflict in Today’s Organizations by Gordon L. Lippitt, Training and Development Journal, July 1982, P.69
3) Managing Conflict in Today’s Organizations by Gordon L. Lippitt, Training and Development Journal, July 1982, P.68
4) Promise Based Management by Donald N. Sull and Charles Spinosa, Harvard Business Review, April 2007, P.81
5) Promise Based Management by Donald N. Sull and Charles Spinosa, Harvard Business Review, April 2007, P.82
6) Promise Based Management by Donald N. Sull and Charles Spinosa, Harvard Business Review, April 2007, P.83