Role of Human Resource Management in Resolving Conflicts

Research Plan: The Role of Human Resource Management in Changing Conflicts into Learning Outcomes

Regular Compliance
Student Name:
Coursework:
University:

Q1.
Memorandum
To: Mr. Financial Advisor
From: Mr. Smith
Date: 8 Oct’ 2016
Subject: Common regulatory violations
Regulatory Compliance
It is defined as the adherence to laws, guidelines, regulations and specifications which are
relevant to an organization. The violation of regulations leads to the legal punishment which
includes federal fines. The rules and regulations are rapidly increases which makes the
compliance most prominent in the various organizations. The ethical issues in the financial
services affect an organization. The financial service sector is more ethical than other sector
which becomes the image in the eyes of the public. The financial sector comprises of banks,
insurance companies, investment banks, mortgage lenders and the financial industry garners
many headings due to which ethics lapses.
The three violations are explained below:
Selling away
The selling away is defined as the incorrect practice of investment professionals in the securities
brokerage industry of Unites States in which the securities are sold by the brokerage firm. The

list of a product is approved by the company which means the sales are not approved by the
company. It is done by the investment professionals which includes financial advisor,
stockbroker, representatives who are registered and others. The lists of products which are
approved by the company for selling by the brokers are subjected to the process of due diligence
of the company (Gentzoglanis et al., 2014). The process of due diligence includes receiving the
approvals and reviews from the risk and compliance department of the company. For example,
the investment is sold by the broker who is away from the company. The broker marketing
securities must get the license for different types of securities. The license is issued by the
financial industry regulatory authority to the brokerage firm in the U.S. It is basically a selling of
transaction which is not approved by the firm. The securities are involved in the private
placement. The transaction can be deliberated or intentional. The selling away can be avoided
through avoiding the various mistakes such as changing in last minutes, completes understanding
of the working of deals, a disclosure of important details and avoid bad habits at the table of
negotiation.
Churning
It is defined as the practice in which trade are executed for investment account which is done by
the broker for generating the commission from the particular account. It is the breach of
securities law and the actions taken by the holder of account regarding the returning of
commission paid by the account holder for any losses due to the choice of stock made by a
broker. In this case, court firstly look at the balance in the investment account and then the
number of times churning has been done. The critics of giving money to the brokers for
encouraging the behavior of brokers indirectly. The investments which are providing stable
returns with less fluctuation's in the price leads to generate zero commission for brokers due to

which brokers avoid to recommend such investments. There is no commission on the accounts
which are free based (Shapiro et al., 2012). The running churning is stated as the amount which
is provided by the infrequent client on the trading of free based accounts. For example, in the
case of mutual fund account, the transaction takes place at one's yearly or semiyearly. In the case
of churning, the transactions are processed ones or more than one in a month for the whole
assets. The commission which is paid to the broker can substantially reduce the investment
account value within a short period. The churning can be avoided by the financial adviser by
giving priority to the financial interest of account holder and prepare a financial planning in from
of account holder according to their requirements. Avoid the omission of facts, taking unsuitable
investment and over concentration.
Suitability
It is defined as the recommendations given by the financial advisor which are unsuitable for the
account holder and further leads to the financial loss. It is considered as an unethical business
practice which is subjected to criminal and civil penalty for intention to defray. According to the
investment advisors act, 1940 if the broker is failed to meet the suitability of the client then it is
considered as the unethical practice. For example, the recommendation is given to the customer
without asking about the requirements of a client. There are various examples of suitability
violations such as same security recommendations given by the broker to all the clients, doing
the transaction on the account of client which is of heavy amount, churning in the account of
client, giving services to the client who is not suitable for them and others (Kozora et al., 2016).
The suitability violation can be avoided by the financial advisor through providing
recommendations on the basis of reasonable by asking the requirements of the client.
Regards,

Mr. Smith

Q2. Research plan
Introduction
In this paper, we will prepare the research plan on the topic role of human resource management
in changing the conflicts into learning outcome. The research plan discusses the role of human
resource management, literature review, research methodology and the conclusion.
The human resource management is present in every company which enables to generate profits
through capital introduced by the shareholders. The human resource management role is
changing with the span of time due to which they are more focused on the needs of employees.
The role of human resource management includes retaining the employees and motivating them
which helps in managing the relationships, and it enhances the revenue of the company.
Literature review
According to the Guest (2011), the conflicts are common in every organization, and it is
important to maintain a healthy and interactive environment through cognitive skills in which the
ideas and strategies are the exchange. The conflicts are arises due to the diversification of social,
culture, religious and political perspective with the stratification of status. Goetsch and Davis
(2014) argued that the counterproductive conflicts can lead to the negative effect on the
satisfaction of employees. The dissatisfaction of employees affects the productivity of the
company.
According to the Purce (2014), the conflicts transformation theory helps to human resource
management in resolving the conflicts of the company which leads to the learning experience.
The Mckenzie (2012) argues that the transformation of conflicts focuses on the fundamental

sources of conflicts. The theory of diversity needs to be understood by the employees who help
to ignore the negative consequences of conflicts.
According to Jose (2011), the performance of employees mainly depends on the procedures and
plans of an organization. The Lengnick hall (2011) he argues that the correct channel is used by
the human resource management and the process of conflicts can lead to a positive outcome
which can be improved by the employee's understandings.
Variables
There are two variables which are taken in the research, namely, dependent and independent
variables. The independent variable is the role of human resource management, and the
dependent variable is changing organizational conflicts into learning outcomes.
Hypothesis
H1: the role of human resource management is significant in changing organizational conflict
into learning outcome
H2: the role of human resource management is not significant in changing organizational
conflict into learning outcome
Research questions
1. What is the role of human resource management?
2. What are the factors which impact on the role of human resource management?
3. How organizational conflicts can be impacted by human resource management?
4. Explain the recommended strategy adopted by the human resource management for
changing the organizational conflicts into learning outcomes?

Research methodology
The data is collected through questionnaire survey, and the convenient sampling is chosen. The
explanatory research is conducted. The questions are closed ended. The respondents have
experienced the change in the organizational conflicts into learning outcomes. Then the
hypothesis is conducted on the collected data. The analysis tool uses in the research is SPSS and
correlation is done to accept or reject the hypothesis. The sampling has sixty employees who all
are experienced the same situation.
Conclusion
The function of human resource management is to manage the conflicts which are the solution of
converting organizational conflicts into learning outcome. The role of human resource
management is confronted by the conflicts of interest which help to solve the conflicts in an
organization. The strategic planning helps to solve the organizational conflicts which lead to the
benefit of the company. The neutral instance helps to solve the organizational conflicts in a most
efficient and effective manner. The human resource management supports in resolving the
conflicts which lead to the learning outcome. The neutrality is embedded by the ethical codes
and the principles of the workplace which helps to settle the conflict of interest among the
employer and employees.

References
Guest, D.E., (2011). Human resource management and performance: still searching for some
answers. Human Resource Management Journal, 21(1), pp.3-13.
Lengnick-Hall, C.A., Beck, T.E. and Lengnick-Hall, M.L., (2011). Developing a capacity for
organizational resilience through strategic human resource management. Human
Resource Management Review, 21(3), pp.243-255.
Goetsch, D.L. and Davis, S.B., (2014). Quality management for organizational excellence.
pearson.
Purce, J., (2014). The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals), 67.
McKenzie, J. and Aitken, P., (2012). Learning to lead the knowledgeable organization:
Developing leadership agility. Strategic HR Review, 11(6), pp.329-334.
Jose Chiappetta Jabbour, C., (2011). How green are HRM practices, organizational culture,
learning and teamwork? A Brazilian study. Industrial and Commercial Training, 43(2),
pp.98-105
Kozora, M. (2016). Security Recommendations and the Liabilities of Broker-Dealers. Available
at SSRN.

Shapiro, S., Kinkela, K., & Harris, P. (2012). Churning and Suitability of Investments: A
Financial Industry Regulatory Authority Arbitration Case Study. Review of Business & Finance
Case Studies, 3(1), 61-67.
Gentzoglanis, A., & Levin, A. (2014). Fraud and Privacy Violation Risks in the Financial
Aggregation Industry.