Good terms of trade are very essential in solving crises; it is much better to have good terms and avoid incentives as they can even cause more conflicts. Like in the case of the military, the use of incentives on one side can provoke the team to cause crises with other military teams. The main reason of using incentives in conflict management is because most manufacturers want to abuse their powers.
Most of the manufacturers also use incentives because they understand the risks involved in marketing their products and opt to offer pecks to the third parties that are involved in distributing their products. Better terms of trade to the manufacturer would mean that he carries the risks that are involved in the market. These risks are the ones that producers avoid most.
Due to the current environmental conditions, change of technology, and new ideologies, producers find it difficult to obtain better marketing and operating result than those that can be given by distributors that are accessible to the producer. This makes them to use incentives to attract the distributors. These third parties require driving incentives to do their tasks perfectly since they are autonomous corporations, which offer to take the risks in return for the prospect of rewards.
Both affirmative motivation (reward) and harmful motivation (fear of losing) trigger the distributor to perform. Furthermore, manufacturers opt to use incentives because they can always replace one distributor with another if the former is not performing. Due to this threat of replacement, this gives an incentive for the distributor to try and meet the demands of the producer or rather find an acceptable compromise.
Basically, conflict resolution involves taking actions to mitigate or eliminate incidences of conflicts, and in this case, there are various ways by which conflict resolution can be attained. Negotiation can be used to solve a conflict between two parties. Bargaining also is another method of resolving a conflict between a buyer and a seller. Other methods that are generally used are mediation and arbitration.
Conflict management is more preferable than conflict resolving as it comprises of deigning effective strategies of that minimize the dysfunctions of conflict as well as putting efforts on productive functions of conflict in order to bring about knowledge and efficiency of an association. There are two kinds of conflict and this determines the method or style to be used to resolve it.
Affective conflicts normally have a negative impact on individuals as well as group performance and needs to be reduced. They may result from negative reactions of association members such as racial disharmony. This reduces the overall performance of the organization. Substantive conflicts impede productive effects on the individuals as well as group performance, and they are always related to differences in tasks, policies in addition to others business issues; indeed, the best way of solving a conflict is by matching styles with situations.
Integrating style is helpful in dealing effectively with complex conflicts especially in situations where one party experiences some difficulties in solving the problem. In addition, its use fullness is realized when the parties involved intend to make use of the skills, information and other resources brought about by different parties in redefining the problem and in the process devise efficient alternative solutions.
It is also good when the parties are needed to show their commitment for the effectual realization of a resolution. Obliging style is very essential when the party does not know the issues that accompany a certain conflict, or the other party is correct and the issue is vital to the other party. This can be used as a strategy if one party is prepared to lose something hoping to get some profit from the other partner when required. It is also viable when one party is operating from a point of weakness or is inclined to the idea that preserving the relationship is more important.
Dominating style becomes useful when the matter concerned with the conflict is important to one party, or an adverse decision made by the other party will be hazardous to this party. This is also useful if the issues comprise of regular matters or if a quick decision is required. When implementing disliked courses of action, this method is used by the supervisors. It is not necessary to use this method if there is enough time for discussion and the conflict is complex.
It is very important to couple incentives with communication. Incentives usually improve communication in a crisis. Incentives without communication may be dangerous especially in places like military camps. They add value to communication and avoid miscalculation in a crisis. It is a basic way of managing conflict around the globe.