The first step this company must take on a descending scale of preference and importance is deal with the current issues that jeopardize the foundation of Pet Ensure Inc. and then utilize preventative measures to avoid conflict in the future. Therefore, the most important thing Pet Ensure Inc. needs to do is to rebalance the pay between the managers and reward veterans. Mrs. Phat-Ho cannot afford the multiple loss of excellent employees, as it would severely affect the productivity level the company. Once that conflict is resolved through the application of the equity theory, the next step is to establish effective communication. Therefore, Pet Ensure needs to form mandatory 'quality circles' to talk and resolve issues. Failure to do so will result in conflict that will fester into an unmanageable boil. The last thing the company must do is address the owner's style of management. Since her management style has negatively affected the productivity of her managers, the department heads should confront her in a manner that will produce positive results. They should mandate that all upper management and the owner attend classes that teach them how to become effective managers. When these conflict resolutions are utilized in this order, then Pet Ensure Inc. will increase productivity levels. Although most conflicts are considered dysfunctional, one must remember that positive conflict can benefit the company as well. Of course, one must remember that it is impossible to eradicate all conflicts within a business.
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