Please write up 5pages about negotiation conflict. The case article is below, Ni
ID: 377027 • Letter: P
Question
Please write up 5pages about negotiation conflict.
The case article is below,
Nissan is suspending car production for the Japanese market after admitting unauthorised workers were certifying vehicles even after discovery of malpractice at the group in a deepening of the inspection scandal. The suspension comes a day after Mitsubishi, which is part of the Renault-Nissan Alliance, pledged to make regaining public trust its “highest priority” and follows admissions by Kobe Steel of data falsification that have cast a cloud over corporate Japan. About 34,000 Nissan vehicles, most of which are yet to be sold, are to be inspected again at a cost estimated to be less than ¥1bn. This month, the carmaker was forced to announce the start of a recall of nearly 1.2m vehicles produced for the domestic market in the past three years after it was revealed that uncertified technicians carried out final inspections. Nissan forecast that the recall could cost ¥25bn before Thursday’s announcement. The company said that even since then, and after introducing an initial set of corrective measures, unauthorised workers had still carried out these checks at some plants. Hiroto Saikawa, Nissan’s chief executive, said in Yokohama on Thursday: “We took countermeasures and we resumed production. People trusted these countermeasures we had taken and customers bought our cars and we betrayed their trust. This is a very significant problem.” Two former Nissan executives said the original issue may have gone unreported for so long because some Japanese workers feel it reflects badly on them to alert supervisors to problems. Mr Saikawa admitted there was a significant “communication gap between the shop floor and the management” that had allowed these questionable practices to become something of a norm, and pledged re-education of workers to eliminate bad habits. “If I see any weakness, I am ready to take drastic measures,” he said. “This is my job, which is imminent, and I am going to lead it.” The inspection scandal is the first big test for Mr Saikawa since he took over as chief executive in April. He said the company will suspend production of vehicles for the Japanese market while inspection lines are reconfigured and the number of final inspectors are increased. All six facilities operated by Nissan and its Nissan Shatai affiliate are expected to be back up and running within two weeks, although some factories may be upgraded faster than others. Japanese regulations require additional certification for the domestic market that is not needed for export models. Nissan has said the affected models have no safety issues. Asked what contact he had with Carlos Ghosn, his predecessor and chairman of Nissan and the Renault-Nissan Alliance, Mr Saikawa said he would not go into details but added: “As a CEO, the chairman trusted me to take care of this.” Scrutiny of Japan’s corporate governance practices has picked up since October 8 when Kobe Steel admitted falsifying inspection data on metals used by more than 500 customers in the manufacture of aircraft, rockets, cars, trains and nuclear plants. On Thursday, Toyota confirmed that aluminium used in some of its vehicles was safe, but it was still checking parts from suppliers that used material from Kobe. Mitsubishi’s chief executive made a similar statement a day earlier. Nissan’s own troubles come the year after Mitsubishi was found to have falsified fuel economy data in its vehicles.
Explanation / Answer
The conflict arises when there is the agreement which is not satisfactory to everyone. This is the part of the business process. The conflict arises when there is difference in the attitudes, needs, wants, values and interest. In order to have good business making process, the conflicts should arise. They are always for good cause.
The conflict which arose should have the impact on the business process. As in the business decision making process, conflicts change the decision by its impact.
For example- Let us suppose you have a financial services advisory business. Your business was going well till last year but due to change in the market trend it takes the downwards direction. Due to this, most of the employees of the company resigns the job as they didn’t get the fair pay what they were getting before. You are the Manager of HR department of the company and you have to decide a strategy to retain the employee. You have called a meeting of all the executives. Some Executive says that if they get the fair pay they would retain in the company, some says that they other department employees are not coordinating with them but other department says that they have the lots of work load so they work according to their schedule breakdown structure. So, there is a conflict among all the executives. Some of the executives have common concerns but some of the executive have concerns other than this common concern. So, the conflict arises here by their individual or small groups concerns.
This is actually the conflict which is good for the development of the company business. As the Manager herd all the issues he need to create a strategy to retain the employees by resolving the conflicts. If the conflicts have been resolved on time then it would be done by the process of negotiation. If not then it would be remained as Conflict. It can be avoided by the various methods such as counselling, negotiation, etc.
Now, the negotiation concept came into existence. The negotiation is the agreement between parties reaching on the win to win situation for both the parties. Every business process works on the negotiation concept and there may be the conflict before the negotiation and also after the negotiation.
The negotiation is done in order to do the business in the market. Poor negotiations cripple a company and just quickly reduce in the customers. There are various types of the negotiation done such as cooperation, compromising, Avoiding, competing etc.
In the case of Nissan, they have suspended their business in Japanese market as after admitting that the unauthorised persons are certifying the vehicles and the discovery of malpractices in the business. This suspension comes a day after Mitsubishi, which is part of the Renault-Nissan Alliance, pledged to make regaining public trust its “highest priority” and follows admissions by Kobe Steel of data falsification that have cast a cloud over corporate Japan. As there was the conflict between both of them as they are alliance. Mitsubishi don’t want to lose the customer base and trust. So, they said to admit the fault although they cost more for them. It was the compulsion from the other alliance that they have to recall the cars as soon as possible.
Nissan forecast that the recall could cost ¥25bn. The company said that even since then, and after introducing an initial set of corrective measures, unauthorised workers had still carried out these checks at some plants. As the cost of recall is more so company trying to escape from it.
The chief executive trying to resolve the conflict that they are trying to resolve the problems by taking countermeasures and resumed production. They also said that People trusted these countermeasures we had taken and customers bought our cars and we betrayed their trust. This is a very significant problem.
Two former Nissan executives said the original issue may have gone unreported for so long because some Japanese workers feel it reflects badly on them to alert supervisors to problems.
There is the conflict between them So, they are trying to escape from the situation by giving above statements.
But later they have negotiated with the Japanese alliance and accepted the issue created by them. It is a kind of negotiation done by them. They have said that there is a communication gap between management and shop floor. But CEO of the company has admitted that he will lead the business by the help of negotiation (indirectly said).
As the Japanese regulations require additional certification for the domestic market that is not needed for export models then company have the statement that the affected models have no safety issues. Scrutiny of Japan’s corporate governance practices has picked up so, the Toyota confirmed that aluminium used in some of its vehicles was safe, but it was still checking parts from suppliers that used material from Kobe.