The Role of Conflict Theory in Retail Business

According to Vassil, Eamets, and Motsmees (2014) model states that daily operations of an organization lead to differences in productivity, opportunities for promotion and payments. The model explains how labor markets work to disadvantaged people. In the internal labor markets, employers hire workers from outside or use internal workforces based on the progress of the worker. Large firms normally put workers in groups for purposes of having similarity within the group. Institutions may classify their opportunities into primary and secondary jobs. Primary jobs require specific skills, higher remuneration, opportunities for promotion and lasting attachments. However, secondary jobs demand lesser skills, have lower earnings, fewer opportunities for promotion and higher turnover.


2.5. Government’s Role to combat discrimination


Discrimination inhibits equity and fairness at work when equally qualified people receive different treatment based on gender or race (Okechukwu et al., 2014, p.577). Government and trade union intervention have the mandate to provide a level ground where every qualified person has an equal chance of getting an opportunity without discrimination. Fighting discriminations requires setting up standards for all individuals and collective behavior, training everybody about those standards and creating consequences for those who violate the set rules. Government plays a fundamental role in creating a platform for the creation of such standards and enforcement of the law (Ward 2017, p.129). The governments have passed anti-discrimination laws that give each an equal opportunity to get hired upon proofing competencies and required skills. Affirmative actions are executive orders that require employers to honor contractual agreements. Affirmative actions reduce the gap between advantaged groups and disadvantaged groups based on gender and race. Economists agree that government minimum wage can prevent discrimination and promote equity and fairness in the workplace. Minimum wage policy alters the labor market wages for women and disadvantaged groups and provides a mechanism for a regular increase in salaries and social securities. However, the government should be cautious not to transfer discrimination from the labor market to employment discrimination.


2.6. Realistic Group Conflict Theory and its Implications for Conflict at Workplace


Kervyn, Fiske, and Yzerbyt, (2015) maintains that Realistic Group Conflict Theory is a plausible theory that has strong support from both laboratory and field study researchers. The theory is applied in understanding local and intergroup conflicts that surround the business world. The theory explains how perceived competition for scarce resources can cause conflict between groups. Muzafer Sherif developed the theory in 1966 that states that when two or more elements seek a similar inadequate resource, conflict arises, destructive stereotypes and viewpoints build up, and finally discrimination manifest among the groups. The theory can be applied in the retail environment to enhance cooperation among the group members. To reduce discrimination and conflict at workplace managers must set superordinate goals. The goals help employees to cooperate at work instead of competing to achieve resources they need. Sherif’s “Robbers Cave” study showed that when a group of boys is put into a competition, conflict arises. Teamwork and work diversity makes people mingle and hence lose their stereotypes. Kokkonen, Esaiasson, and Gilljam, (2015) revealed that workforce diversity enables individuals to have interethnic friends relations across the labor market. The realistic conflict theory can be applied in a retail environment to advocate for diversity and integration. In the workplace, the concept reveals the potential consequences of community competition over the limited resources and increased racial diversity. The concept thus necessitates the establishment of successful organizational diversity that incorporated multicultural workforce. The RGCT assist business people to understand how to handle discrimination against diverse ethnic and racial groups. Groups with the notion that only scarce resources are made for a certain group, they attempt to remove the source of competition by increasing their group capabilities. However, decreasing completion from the out-group is done through the expression of negative attitudes or revengeful tactics leading to serious conflict at work.


2.7. Conclusion


The main contributing factors to conflict include conflicting needs, styles, perception, goals, pressures, roles, differences in personal values and unpredictable policies. Common methods of tackling dispute include Alternative Dispute Resolutions (ADR) such as arbitration, negotiations and mediation and Dispute System Design (DSD). Managers in retail business need to understand that they can only control responses to conflict but not the consequences. Successful conflict resolution depends on effective channels of communication and strategies. Conflict not only occur between people but also group. Innovative dispute systems, evidence-based ombudsdry and alternative dispute resolution system (ADR) assist managers to manage conflict in the workplace effectively. Understanding different models of discrimination also provide a clear understanding of the type of discrimination, how to handle dispute arising and more importantly how to create an organizational culture. Conflict management has recently attracted evidence-based strategies that integrate the conventional methods with research.


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