Presentation on Impact of Stress and Conflict on the behavior of Organization

1. ORGANIZATI
ONAL
BEHAVIOUR
GROUP MEMBERS:
RASHID MIR
SHAN GHANI
AMIR KHAN
DANISH IMRAN
HAMZA MUL AZIM

2. Impact of Conflicts and Stress on the
Organizational Behavior

3. Organizational Behavior in Habib Bank
Limited
• HBL’s values are the fundamental principles that define its
culture and are brought to life in its attitudes and behavior.
It is company’s values that make its unique and unmistakable.
Company values are defined below:
• Excellence
• Integrity
• Customer focus
• Meritocracy
• Progressiveness

4. History
Habib Bank Limited (HBL) was the first commercial bank to be
established in Pakistan in 1947. Over the years, it has expanded its
branch network and has become the largest private sector bank with
over 1,450 branches across the country with a market share of
approximately 20%. HBL is Pakistan's second largest commercial bank,
having countrywide and international branches.
HBL was nationalized in 1974 and it continued to dominate the
commercial banking sector with a major market share in inward foreign
remittances (55%) and loans to small industries, traders and farmers.
On June 13, 2002 Pakistan's Privatization Commission announced that
the Government of Pakistan had formally granted the Aga Khan Fund
for Economic Development (AKFED) rights to 51% of the shareholding
in HBL.

5. HBL is expanding its presence in principal international markets
including the UK, UAE, Southland Central Asia, Africa and the Far
East.
HBL is currently rated AA (Long Term) and A-1+ (Short term). HBL
is the first Pakistani bank to raise Tier II Capital from external
sources.

6. Conflict
• A process that begins when one party perceives that another
party has negatively affected, or is about to negatively affects
something that the first party care’s about.
There are three views about conflicts;
traditional view
human relations view
Interactions view

7. These are the following impacts of Conflicts which was faced by
the staff of HBL during different time.
• Decrease in Productivity
• Mental Health Concerns
• Employee Turnover
• Violence
Positive Impact of Conflict and stress
• Inspire Creativity
• Share and Respect Opinions
• Improve Future Communication
• Identify New Members

8. • DISPUTE RESOLUTION PROCESS
In HBL there is a whole process of conflicts resolution
• Negotiation
• Mediation
Stage 1: Introduction and establishment of credibility:
Stage 2: Steering the negotiation process:
Stage 3: Movement towards a final settlement:
• Arbitration
• Litigation

9. Common reasons for workplace conflicts and
stress
• Interpersonal Conflict
• Structural Conflict
• Differing Goals
• Mutual Dependence of Departments
• Role Dissatisfaction
• Dependence on Common Resources
• Communication Barriers

10. Stress
It’s a kind of uneasiness. In HBL it is defined in terms of
how it impacts physical and psychological health; it
includes mental, physical, and emotional strain.
Stress occurs when a demand exceeds an individual’s
coping ability and disrupts his or her psychological
equilibrium.
Stress occurs in the workplace when an employee
perceives a situation to be too strenuous to handle, and
therefore threatening to his or her well-being.

11. Types of stress
Distress :
Causes anxiety or concern.
Feels unpleasant.
Decreases performance.
Have a negative impact
For example:
Losing contact with loved ones.
Injury or illness.
Being abused or neglected.

12. Eustress
Motivates, focuses energy.
Feels exciting.
Improves performance.
For example:
Starting a new job.
Buying a home
Moving.

13. Work and Internal Sources of Distress
• Excessive job demands.
• Job insecurity.
• Conflicts with teammates and supervisors.
• Inadequate authority necessary to carry out tasks.
Therefore, Stressors are not always limited to situations
where some external situation is creating a problem.
Internal events such as feelings and thoughts and
habitual behaviors can also cause negative stress.

14. Case Study
Most of the major conflicts in HBL belong to the category of policy
driven conflicts. After privatization of HBL, it had a major
change in its structure and policies. This change was necessary to
overcome key problems associated with the structure of the public
owed company such as:
Over Staffing
Political Pressure
There are a variety of problems that were explored while analyzing
the dispute resolution process at HBL:
• Failing to minimize the overall level of conflict

15. • Lack of pre and post dispute analysis
• Resolution process caused even more conflicts
• Failed to foster long term relationship
• Difficulty in challenging management
• Lack of employee empowerment
• Lack of effective communication
• Inflexibility of application
• Poor application of resolution procedures
• Management of HBL did not make a disciplined, balanced
discharge decision.

16. Besides these conflicts HBL is ranked second in the Pakistan due
to its values which are the main principles that define its culture
and are brought to life in its attitudes and behavior. Its values
make it unique and unmistakable.
These are the values which make HBL a second top rated bank of
Pakistan:
• Progressiveness
• Customer Focus
• Excellence
• Integrity
• Meritocracy

17. Recommendations:
• A dispute resolution system should involve everyone
• A system that resolves all conflicts
• The identification of the natural emergence of a person who
handles all conflicts
• Eliminate the misconception that it takes large monetary
resources to implement a system
• An ongoing process-updating policy with changing trends
• Elimination of bureaucratic attitude and encouraging friendly
environment

18. • Satisfying both the parties in a conflict
• Effective pre and post dispute resolution process
• Surface and solve conflict as soon as possible
• Learning from conflicts
• Management should be flexible
• Use of collaborative power
• Accurate information without manipulation
• Allotment of empowerment to the employees
• Proper flexibility of application, allocating rewards and
encouraging employees

19. THANK YOU
Questions