CONFLICT IN THE CO-OPERATIVE RETAIL SOCIETY by T.E, STEPHENSON, Department of Management Studies, University of Leeds SUMMARY ‘This paper considers the nature of organizational conflict in general au conflict in the co-operative society in particular. It examines the unitary and pluralistic views of organizations and considers ‘the suggestions that conflict is necessary for the independence of the individual, ‘constructive for the organization and is inevitable in any form of society. It investigates the proposed mechanisms for restraining conflict so that it is constructive It is then argued that the co-operative retail society is a pluralistic organiza- tion comprising a number of different interest groups with their ovn sets of values, These groups tend to be engaged in an evaluation of the other groups ‘and this evaluation carries with it the framework for competition rather than co-operation. It is contended that when economic conditions are favourable and there is 42 substantial surplus in the society the different groups can be satisfied and ‘the inherent conflict remains submerged. The evaluation process is, in these conditions, latent, and internal competition is likely to be minimal. When economic conditions are unfavourable it is suggested that the divergent interests come to the surface. There is less dividend available for the members, te demands of managers and staff for higher wages and salaries may be difficult to meet, the members may’ be concerned about their capital and wish to draw it at a time when management want to retain it in the society. Within manage- ‘ment the competition for scarce resources becomes sharper, and between manage ment and staff there is increased tension as the former increase the pressure for greater efficiency. Economic values predominate and the holders 0! social values fee! their position within the society to be threatened, To reassert them- selves, they may stress the need for more effective democratic control, This emphasis on democratic control is a part of a wider fecling of anti-profession- alism. This may take a number of forms, all of which are aimed to redress the balance between maniagers and laymen. The attempt to establish firmer demo- cratic control and the broader issue of anti-professionalism are both likely {to intensify the conflict situation in a retail society at a time of economic stress.206 .E. STEPHENSON In a co-operative retail society with its social and economic objec- fives. the possibility of fension between those whose primary concern is with social ends and those whose main concem is with economic ends is always present. This paper is concerned with, first, the general nature of organizational conflict and, second, with ‘the conditions in which conflict in co-operative societies develops. On the general problem of organizational conflict there are those who regard organizations in unitary terms, ie. they believe in a natural harmony of interests, and’ there are those who consider organizations in pluralist terms, i.e. they see them as a series of divergent interests. The particular position adopted is crucial in that it helps to determine, (a) how people are expected to behave and how they ought to behave, (6) the reaction to people's actual behaviour, and (¢) the methods chosen when changes in behaviour are sought. ‘The characteristics of the unitary view include the following beliefs: () There is a single focus of loyalty in the organization, In the case of @ co-operative society this could be co-operative beliefs em- bodied in the actual society, (i) There isa. team striving jointly toward the achievement of 2 common objective, each member of the organization pulling is weight to the best of his ability. For the co-operative society this would mean the Board, members, managers ard employees acting jointly with no divergence of interests. (il) There are no opposition groups, no rival leaders in or outside the organization, In co-operative ‘societies this would require the acceptance of a commitment to the society which transcends com- mitment to any other organization which has dealings with it, for example, the commitment of employees would be to the society rather than to any trade union, (jv) It is the duty of all concerned and especially those in authority, the board and management, to act in such ways as to inspire loyalty to the organization and the objectives and values it embodies. Arising out of these views the validity of conflict is denied. Where conflict does occur, it is claimed to be due to, (@) the existence within the organization of incompatible personalities, (©) faulty communications among the members of the organization ‘There is misunderstanding about the aims and methods of the orga- nization, but once these haye been adequately communicated then the misunderstanding will be removed. Communication is largely thought TA, Fox “Industrial Sociology and Industisl Relations", Research Paper 3, Roval cuttin en Trade’ Unions and Bmgloyer's Acsciatons, Landon, HAMS. 6, "THs Sper provides an extended dicusson othe unitary aad phil views of oremizationsCONFLICT IN THE CO-OPERATIVE RETAIL SOCIETY of in terms of appropriate formal systems of communication and of content expressed clearly. However, the establishment of a formal communication system does not ensure that it will be effective ; this depends on the people who operate the system. If there are different values in the organization, if ‘there are different perceptions and expectations, people will give and receive information according to their own view of the situation. People may receive different messages though the formal communication may be ‘the same for all, ic, the same set of words may have different meanings tor different people and groups. Words are not neutral; they carry emotional overtones. A statement by a group of co-operative societies to the effect that they intend to amalgamate may be regarded by some employees as offering greater opportunity for development and promo- tion, for others the same statement may be regarded as threatening in that it seems to bring into question their future roles in the new society. The establishment of a formal communication system does not tell us how it will be used; in other words there remains the content of the system to consider and here there may be distortion, delay and uncer tainty because in the last resort the system is worked by people who use it to ensure that its content does not reflect badly upon them. This behaviour is linked with the rewards/punishment system of the organi- zation, if people are rewarded or punished for different types of be- haviour then they are going to attempt to ensure that their performance appears to be worthy of reward and this will be reflected in the way in which they present information about thelr performance. Communi- cations depend not only upon the establishment of effective systems, but upon the human beings and their relationships which underly the stem. (C) the result of failure to grasp the communality of interest of all the members of the organization; the failure to see that the development and maintenance of sectional interest is detrimental to the interests of the total organization, ‘The second view of organizational conflict is subsumed under the notion of pluralism. The characteristics of this view are () The organization is seen as a plural society containing many but separate interests and objectives, Gi) These different interests must be maintained in some kind of equi- librium achieved through some form of organizational machinery. Arising out of this view are a number of points, First, there Is seen to be the need for reconciling individual and group objectives as closely as possible to those of the organization's objectives, It is recognized that there cannot be an identity of interests and in conse- quence modification and adaptation will be necessary and that to achieve these results ‘political’ skills will be required, Out of this there