Conflict Management (HRM624) Assignment 2

Mr. Ali has purchased a shop and rented it to Mr. Shakeel (his elder brother) with the
agreement to increase the rent @ 10% per annum. Mr. Ali found a job in a Multinational
Company and therefore left the country. Mr. Shakeel deposited the rent of the shop at a
uniform rate (without any increase in amount) in the bank account of Mr. Ali.
Mr. Ali came back to Pakistan after five years and demanded to have a 40% increase in rent
but Mr. Shakeel neither wanted to loose the shop nor wanted to have an increase of 40% in
rent. In that shop his business enjoys the advantage of good repute and favorable location.
Both parties have decided to arrange a meeting to resolve this issue through negotiation.
Question:
Now being the student of Conflict Management consider the types of power in relationship
domain, which type of power can play the most effective role in resolving the conflict if you
consider yourself in place of:
a) Mr. Ali
b) Mr. Shakeel
Give logical reasons to support your choice in both positions.

Solution:

Now being the student of Conflict Management consider the types of power in relationship domain, which type of power can play the most effective role in resolving the conflict if you consider yourself in place of:

a) Mr. Ali

b) Mr. Shakeel

Give logical reasons to support your choice in both positions.

a)      Mr. Ali will use the coercive power because he has the ability to withhold his shop from Mr. Shakeel, If Mr. Shakeel will not pay outstanding amount, Mr. Ali can threaten that he will withheld his shop. Mr Shakeel is not ready to loss reputation of shop and good location of the shop.

b)      Mr. Shakeel will use the referent power because he is elder to Mr. Ali