Traditional view: The belief that all conflict is harmful and must be avoided.
Human Relation view: the belief that conflict is a natural and inevitable outcome
in any group.
Interactionist view: The belief that conflict is not only a positive force in a group
but that it is also an absolute necessity for a group to perform effectively.
Over-staffing:
HBL before privatization had more than 31000 employees, management and non-
management, they aimed to reduce this number to 27000 employees with the help of its
new policies.
Political Pressure:
Before privatization HBL was highly influenced by the governmental policies as it was
the largest financial institute under government control. The economic policies of the
country were also affecting the bank’s policies. The problem occurred mainly because of
the unstable political situation in Pakistan which was causing the huge fluctuations in
governmental policies resulting in the inconsistency of HBL’s policies which led to the
Mediation:
Despite trying hard, when the negotiation process fails HBL goes for the mediation
process, where the role of an effective, neutral mediator comes in who acts as a
communication bridge between the management and the employees. Usually the
mediator is in HBL is a trusted manager popular amongst both employees and
managers HBL’s mediation process can be broadly divided into the following three
stages:
Stage 1: Introduction and establishment of credibility
Stage 2: Steering the negotiation process