Joe and Kim Khan have worked out their differences-sort of . While Kim no longer takes pot shots at Joe for his lack of experience, Kim and Joe have clearly different perspectives on how to perform their jobs, serve customers, and treat employees. Jim Talent continues to encourage Joe to work with Kim to address their relationship issues. This will be particularly important because Joe and Kim will need to present a united front in an upcoming negotiation they'll be having with representatives from Do or Dye Tools Among the recent issues that have created concerns are the following: 1. Store policy regarding returns. The standard store policy is a 30-day "no questions asked" policy. After 30 days, store policy is generally to give store credit. Kim routinely promises customers who purchase tools full money-back guarantees, regardless of how much time has passed. Customers then refer to Kim's representations when they come to the customer service desk that Joe manages, making claims for money back for tools returned beyond 30 days. Kim thinks that Joe and his team do not understand the need to work around company policy at times in the interest of "putting the customer first." Joe and Kim must come to agreement on what "putting the customer first" and honoring store policy mean, and whether these two concepts are compatible or mutually exclusive. 2. Philosophical disagreement over "handshake" deals. Kim tends to make informal handshake deals with vendors. Kim did this with Do or Dye Tool's former representative, Axel Rod, regarding the sale of its Super-Deluxe 15-90 Power-Matic Reversible Drill/Screwdriver set and accompanying package sets of drill bits and screwdriver heads. This deal has angered Vic Vendor, Do or Dye's current representative, and could result in Do or Dye severing its business relationship with More Power. Although Kim may have rational reasons for doing this, Joe believes that such actions reflect poor business practice. Before meeting with Do or Dye, Joe and Kim must agree on how they will represent More Power and the level of formality or informality that is appropriate when negotiating. 3. Treatment of employees. Kim's actions create a "spillover" effect on Joe's customer service desk team because they must manage the customer service issues that Kim's actions generate. When Kim's actions appear to run contrary to store service policy, some of Joe's employees have attempted to address any misunderstandings with Kim directly. Kim's response has been gruff, dismissive, and defensive. Kim makes clear that these actions will continue in the interest of serving customers without apology for the impacts on Joe's team. Kim clearly has little tolerance for what appear to be arbitrary procedures that interfere with good customer service. Joe's employees complain about Kim's gruff manner and express concerns about being caught between a rock and a hard place: They will either get in trouble for running afoul of store policy by honoring Kim's representations to customers or incur the wrath of Khan and customers by holding customers to store policy despite Kim's representations to the contrary. Joe and Kim must come to agreement about how to work with Joe's employees, how to avoid situations that put employees in this bind, and how to serve customers in a consistent manner.
Question:
1. Define the major conflict issue.
2. Identify the conflict resolution components.
3. Remember: Often, the issues, emotions, and relationships are directly described in the case, whereas the source of the conflict is not.
4. If necessary, indicate how organizational factors affect the conflict resolution process.