In Los Angeles, just outside of the city and near the beach, is the Cool Brands Shoppe that has some of the latest fashions for men and women. Targeting the 18 to 29 crowd, owner Maddie Gilmore makes sure the store is stocked with the absolute latest fashions. According to Gilmore, “We’re more than a boutique. We’re where you go when you want to have what no one else has. A place where you can show everyone how fashionable you are.” So far, in the six years she’s been in business, the store has been extremely successful, with each year’s revenue being greater than the last. In fact, this past year, sales topped \($2\) million.

Employees of the store enjoy working for Gilmore because she’s smart and has a strong sense of style. Each employee is encouraged to wear the clothes stocked in the store as Gilmore gives them a 50% employee discount. They are also paid very well. “She starts you at \($20\) an hour here,” said Gracie, one of Cool Brands’ employees for the last four years. “But with commission, many of us are making close to \($40\) an hour.”

Because of the success of the store and the high volume of traffic, especially on weekends, Gilmore added a commission to employees’ pay last year. It has worked. Consequently, there is very little turnover. Employees simply don’t leave.

However, some associates started to feel that some of their coworkers were making more money because of their schedule. Gracie, for example, works the Thursday-through-

Sunday shift. This shift is the prime shopping time, and Gracie is frequently the store’s top seller. Danica, on the other hand, works Monday through Thursday, often a much slower time frame. She’s been with the store for one year. According to Danica, “Sure, with commission, I’m still making about

\($28\) per hour, but nowhere near what Gracie makes because she gets the weekends.”

Scheduling has been based on seniority. Gilmore feels that employees who have been with her the longest should get the best shifts. “I started out in retail,” Gilmore said. “I know it can be very competitive. I took that competitiveness out of the equation by basing everyone’s shift on how long they’ve been with me. If you’ve been here the longest, you’re going to get the best hours. Those that are newer get different hours. We’re all making money, so it really shouldn’t matter too much.”

Gilmore said it also made the process of scheduling that much easier. Because of her years of experience in retail, she knows when the store is likely to have the highest sales. Giving those days to associates who have been with her the longest means they won’t leave her and go to the competition, and it’s a great reward for the loyalty they have shown her.....

Questions 1. What is the source of Danica’s conflict? Why is she experiencing conflict?
2. Would you characterize Danica’s conflict as functional or dysfunctional? Explain.
3. Which conflict management style is Gilmore exhibiting?
Explain.
4. Using the conflict resolution model, how should Danica approach Gilmore and Gracie about her issue?
5. What did Gilmore do wrong in this situation?
6. What solutions do you think would accommodate Danica’s conflict? How would you have handled this matter?