Internal conflict in organization and the cost to organization and the solutions with human resource management. Several outstanding management theories stress each certain main point, such as scientific management or bureaucracy. For a long time those theories had been existed in most of organizations as one-best way of managing a company before addressing the importance of human capital, which is treated as asset not as a resources by Mayo in 20th, and human relationships in workplace as well. In further, the magnitude of Human Resources management becomes a large part in management area. The purpose of this paper is to argue how much the mismanagement related to human relationships in a company cost to them and offer how to face the problem and react to the situation as a manager.
Conflict will be thought as one of the recognitions about expressions of disagreement and dissatisfaction, involving differing expectations, competing goals, conflicting interests, confusing communications, or unsatisfactory interpersonal relations including an employee’s disagreement with their performance appraisal. Saulwick (2011) introduced the disagreement between RailCorp transit officers and Security division of RailCorp management about the identification of security guards, which the officers consider their task as law enforcement, compared to ticket inspectors by the RailCorp management, and also about the motivation that the majority in transit officers working for the money. Those conflicts will be managed and solved by authorised managers with how resources are accurately distributed, but the process is complex and complicate. Because of that careful and appropriate approach to the problem is required (Costantino & Merchant 1996, pp. 4-5). According to Clegg, Kornberger & Pitsis (2011, p.174) the strategy in Human resources management has 4 stages, including Recruitment, Selection, Retention and Development with the certain business strategy. If the RailCorp apply the strategy of HRM to their industry, the conflicts that is currently facing would be diminished. This is because in selection process the company should research about the information of the recruits by using the tools or other methods, post them in specific departments, and ensures for new staffs to know the company’s objectives and goals with their performances, which means the RailCorp security guards did not need to confuse about their role in workplace with the strategy. Without the adjustment with HRM, the problem about the conflict in a firm finally brings about pressure to employees, as called Stress. Donaldson-Feilder, Yarker & Lewis (2011); Dijkstra, Beersma & Evers (2011) suggest that there are costs to organization by troubling in workplace in the forms of stress, depression and anxiety. It is reported that one-third of new absence are related to stress and also approximately 33% of employees are suffering from stress. United Kingdom lost 13.5 million working days by stress per year, referred as 9.6 billion Euros and $150billion in the United States. The costs are specifically divided by Absence, Presentieeism, Turnover, Accidents and Injury, and Hidden costs. Absence will be including Sickness Absence in the terms of psychological sickness such as stress, anxiety or depression and physical sickness by stress such as asthma, allergies, diabetes etc, and also Absence as Work Avoidance from stress. Absence is the most clearness to measure and the most significant costs, on the other hand, Presentieeism is less clear, but many employees are facing the ill-health, which is not just stress, but many other illnesses, and bring it in workplace. This means they are not ready for working as much as one hundred percent, which can cause lower concentration for work, accidents, and the influence on colleagues or clients. Turnover refers the costs of temporary replacement cover and of recruiting new staffs on behalf of retired workers by stress. Lastly, Hidden costs,...
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