This essay delves into the critical field of conflict management within organizations, examining two prominent theories: the system approach and contingency theory. The essay begins by defining conflict management and highlighting its importance in mitigating negative impacts and fostering positive outcomes. It then introduces the system approach theory, illustrating how it is applied by the Coca-Cola Company to manage conflicts through stakeholder involvement and collaborative problem-solving, emphasizing the significance of understanding employee behavior. The essay then explores the contingency theory, focusing on how Walmart utilizes advocacy and accommodation methods to address conflicts arising from competition and employee needs. The analysis compares and contrasts these two theories, ultimately suggesting the system approach theory's greater effectiveness in handling diverse organizational challenges, particularly in multinational corporations like Nestle. The essay concludes by reiterating the importance of effective conflict management for organizational success, highlighting the adverse consequences of unresolved conflicts, and underscoring the value of the system approach and contingency theory as valuable tools for achieving organizational harmony and productivity.
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