There are several inexpensive suggestions that Mrs. Phat-Hon can utilize to decrease her workplace conflict. First, Pet Ensure Inc. needs to establish a better system of communication. It was because of one initial misunderstanding from a single employee that began this whole affair. Mrs. Phat-Ho should mandate that employees form 'quality circles' where they can meet regularly to discuss their problems, investigate causes, recommend solutions, and then take corrective actions (Robbins 195). 'Quality circles' could have prevented the evolution of these rumors that produced a negative domino effect. This corrective action will promote effective communication that should decrease the evolution of future rumors.
The issue of unequal pay between managers cannot be resolved just through communication alone. This conflict is largely attributed to mismanagement. For example, the CEO's recent behavior revealed that her actions were based on emotions rather than on logic. This behavior created unnecessary conflicts between managers who thought this course of action was unfair. The 'Equity' theory is based on people's desire to see themselves in comparison with others as individuals and within the company. In essence, a person will respond to variables and determinants as he or she understands them and will strive to create an equilibrium or 'equity' through his or her actions (Robbins 168). Mrs. Phat-Ho needs to reestablish equilibrium between the managers to resolve a majority of the disputes. It is better to equalize wages by increasing the veteran managers' wages rather than the other way around and to reward veteran employees for their long services if they are performing well. Perhaps a specified percentage of increase should be given to veteran employees who have worked for a certain amount of time.
Some of the managers who enjoy their jobs have problems with Mrs. Phat-Ho's dictatorial management style and both managers and employees find her very intimidating. To deal with this conflict, managers should consider a face to face meeting with Mrs. Phat-Ho to confront her regarding her management skills and resolve it through open discussion. They should utilize the 'smooth' technique, which emphasizes the common interests and plays down the differences (392). In this situation, the best method is to negotiate behavioral strategies with her. Managers would assert more control, spread positive morale, motivate their subordinates to ensure better productivity levels and in exchange, Mrs. Phat-Ho would relinquish some of her control, and establish a better system that deals with conflict.