CASE 2: THE KING GROUP OF COMPANIES

I. SUMMARY
The King Group of Companies was one of the largest conglomerates in the
Philippines. Its business ranged from food manufacturing to detergents to chemicals
to hotel services. The King Group had three flagship corporations; Alpha-King
Corporation, Kings Commercial Corporation, and Republic Kingdom Corporation.
Each flagship corporation had its companies and divisions, each involved in its own
line of business. The King Group had humble beginnings in 1951. It gradually grew
to what it is now largely due to the hard work of John King. By 1961, Alpha Foods
Company was established to manufacture and sell chocolate candies and coffee.
Eventually, biscuit products were included in the companys product line. Through
the years, Kings businesses experienced rapid expansion. Alpha Foods eventually
became just a division of Alpha-King Corporation. Kings Commercial Corporation
was into a five-star hotel, a shopping complex, a chain of theaters, a department
store, and a supermarket. Republic Kingdom Corporation was into poultry and hog
raising, vegetable farming, fertilizers, chemicals, flour milling, textiles, garments,
and snack foods, among others. It was only by the mid-seventies when he realized
that he could not handle the whole conglomerate by himself, that he started
pirating so called profession managers to run certain aspects of his businesses. But
despite this move towards professionalizing management, King saw to it that
managers to whom he would turn over operations were trustworthy. This is why key
operating managers in his businesses are usually veterans in that they had been
with the company for quite some time. This was so because before King gave full
authority to a manager, the manager had to prove that he could be trusted. Larry
Dy was one of the trusted men of King. And because of his educational background
as well as his fathers recommendation, King hired him as special assistant. He was
supposed to assist the President in almost anything as he usually describes his job.

II. ISSUES
The problem that mentioned seeming lack of coordination between the two
departments. They see both of them think that they are important. Without sales,
how can brand survive? But brand thinks that they are the ones calling the shots for
these brands so they are important.

III. GUIDE QUESTIONS

1. One of the sources of conflict between Sales and Brand department is they
think one of them is important and the other is not. Little did they know they are
both important because without sales how can brand survive. Poor communication
is one of the main causes of conflict between the employees of sales, brand, and
production departments. This can result in a difference in communication styles or a
failure to communicate. Failing to communicate in the workplace may cause
employees to make incorrect assumptions and believe workplace gossip. Poor
communication in the workplace not only causes conflict but decreases productivity
and employee morale. In addition, unhealthy workplace competition is a cause of
employee conflict. Some industries foster competitive environments more than
others. When salary is linked to employee production, a workplace may experience
strong competition between employees. Competition that is not properly managed
can result in employees sabotaging or insulting one another, which creates a hostile
work environment. Unhealthy workplace competition discourages teamwork and
promotes individualism.
 2. When conflicts go unaddressed, they can have a negative impact on
productivity and teamwork. Using conflict resolution strategies in the workplace will
help maintain a healthy work environment. Conflict resolution requires specific
leadership skills, problem solving abilities and decision making skills. Therefore,
Larry should suggest to strengthened the teamwork and communication between
the departments because companies often rely on teams to complete special
projects or even to carry out the routine functions of a department. If members of
the team do not communicate well with each other, it may not be clear what roles
and responsibilities each member must assume. Some tasks might overlap while
others might be overlooked completely, leading to confusion and conflict between
team members and the ultimate failure to achieve objectives.
IV. INSIGHTS
Employee conflict in the workplace is a common occurrence, resulting from the
differences in employees' personalities and values. Dealing with employee conflict
in a timely manner is important to maintaining a healthy work environment.
Believing that a conflict will simply disappear is an inaccurate assumption to make
because simple conflicts can grow into major problems if not dealt with
appropriately. Managers should understand the common causes of employee
conflicts, so that a solution is found before the issues become unmanageable. Lack
of communication in the workplace can occur on a large scale, such as between
management and employees, as well as on a smaller scale between individual
employees. Failure to communicate effectively often leads to conflict, which can
harm an organization. Poor communication can create conflict in a number of ways.