Conflict That Arises Because Telkomsel Acquisition by Singapore Technologies Telemedia
...onflicts must be discussed so that solutions can be developed and implemented. It is through positive conflict that unity and true harmony can be reached. Conflict has traditionally been defined as opposing interest involving scarce resources, goal divergence and frustration. Conflict is often thought to occur in mixed-motive relationships where persons have both competitive and cooperative interest. The competitive elements create the incentives to bargain to reach an agreement. A great deal of conflict may occur even when people have highly compatible goals and an incompatible activities; conflict occurs when one¡¦s actions are interfering, frustrating, obstructing, or in some other way making another¡¦s action less effective. Conflict can occur in both cooperative and competitive settings. Conflict is not only too pervasive to be denied, it can, as recent research has demonstrated, help managers confront reality and crate new solutions to tough problems. Conflicts when well managed, breathe life and energy into our relationships, and make us much more innovative and productive. Conflict is necessary for true involvement, empowerment and democracy. Through debating their different perspectives, people voice their concern and create solutions responsive to several points of view. Then they can become united and committed. Well-managed conflicts also develop our individuality so that we feel more fulfilled and capable. Conflict is an opportunity to form and express our needs, opinions, and positions, it makes all the related parties try to understand the perspectives of others and became less egocentric. Resolving issues leaves people felling more integrated, adjusted, and competent. Through conflict, people feel unique and independent as well as connected to others. Positive conflict is an investment in the future. People trust each other more, feel more powerful and effective, and believe their joint effort will pay off. Feeling more able and united, people are more prepared to contribute to their groups and organizations. Success in turn further strengthens relationships and individuality. But the power of conflict can be destructive. Conflicts that are avoided or poorly managed can wreak havoc on the organizations. Problems fester and obsolete ideas are implemented. People remain aloof, skeptical and angry. They become rigid, fixated and ambivalent. Both individuals and their organizations lose. The potential value of conflict also point to the challenges to manage it well. The consequences of positive conflict, strong relationships, individuality, and productivity are also needed for it. The more open and united the relationship, the more self-aware and empathetic the individuals, and also the greater their ability to solve problems, the more successful the conflict management. The prevalence and potential value of conflict have led some people to adopt highly conflict oriented-oriented approaches. They believe that anger is the ¡§honest emotion¡¨ and that every conflict must be dealt with directly and openly. However, this positive conflict view must be tempered with the understanding that it is appropriate, skilled management of conflict, not conflict itself that contributes to organizational success. Well-managed conflict results in strong relationships, mature and competent individuals, and high performance, which in turn foster more effective conflict in a beneficial, reinforcing cycle. Learning to manage conflict is a wise investment for individuals and organizations preparing for the uncertain future. Learning to manage conflict involves life-long learning, not the mastery of a simple technique or two. Managing conflict requires a direct expression of feelings, an elaboration of ideas, emphatic understanding of the perspectives of protagonist, creation of alternative solutions, and acceptance of new resolutions. Competence at managing conflict therefore depends upon self-awareness, the skills of rational discourse, an ability to put oneself in another¡¦s shoes, creativity and lack of fixation on original positions, and a willingness to reach integrated solutions. Moreover, managing conflict requires a continued focus to seek mutually beneficial resolutions and avoid the temptation to try to win the conflict. Managing conflict requires both open-minded flexibility and discipline, by managing conflict productively; partners, managers, and employees have an opportunity to greatly strengthen their conflict competence. As they deal with many complex issues, they become more open minded and more disciplined in their conflict management. They strengthen their self-awareness and confidence, become more empathetic and creative, and feel more resolved and unambiguous. These central skills in turn foster individual¡¦s psychological competence and well-being and work effectiveness. Learning to manage conflict is an investment in individual development as well as organizational success. In sum, positive conflict is a foundation for the ongoing learning necessary for conducting all businesses. It helps partners keep in touch with changes in each other, customers, regulations, and technologies. Through open discussion, they forge new arrangement responsive to these changes. Conflicts help partners keep abreast of the rapid developments in the company and make change welcome and constructive. Productive conflict can be established and destructive conflict avoided if the protagonist are more informed of each other¡¦s preferences and styles. They do not assume that different approaches to conflict mean that they cannot find common ground and resolve their disputes. III. Case Analysis Telkomsel acquisition would mean a lot of changes would happen in the company, those changes would includes a lot of basic, structural, cultural changes. Changing process is not easy for all the parties involved. In this case there are three major parties that are involved in this case: 1). Telkomsel and Telkom employees through its labor union, Sekar Telkom They did not agree with the ownership changes that are happening and create a lot of resistance and conflict regarding the issue. 2). Telkom top management and executives They believes that SingTel would strengthen Telkom and Telkomsel company¡¦s position and condition, basically they think the acquisition is a good thing. 3). Singapore Technologies Telemedia (SingTel) SingTel (Singapore) is ready to increase its share in Telkomsel because it is coherent with its strategies to reach its goal in becoming a pan-Asian telecoms company. It is not easy for Telkom management to convince its employee¡¦s to move from its ¡§comfort zone¡¨ to ¡§discomfort zone¡¨. Especially since all of its employees perceive that the company is in good conditions, and there is no need to change anything. Telkom management have to convince them that, through past experiences and research, the right time to make some changes is not when the company suffer from a crisis, it is good to change when the company is in a good condition. Because at that time, the company, in this case Telkom and Telkomsel, have enough human resources, confidence, financial funds, structural factors to support the changes. Unfortunately, usually at this condition, a lot of the workforce in the company is blinded by the company good conditions or successes; it is the condition where the employee did not want to change, like what is happening in Telkomsel. At the time of the changes, Telkomsel is receiving a lot of good media attention/publications; it receives a lot of praises, awards, recognition from the society. Telkomsel¡¦s employee would ask, ¡§If the company is in a good conditions, why should we change?¡¨ in this case, Telkom and Telkomsel management failed to communicate the reasons of the acquisition process to their employees, this arises conflict in the company. Telkom and Telkomsel top management should have explain that, precisely at the company present conditions, should the changes be made, where SingTel would buy a portion of the Telkomsel shares and became Telkom strategic alliances that could strengthen the company competitive force in the Telecommunication industry. Changes are important for every organization in order to continue its life-cycle. It is better for a company to change because of its decisions rather if the conditions make the company have to change, as the saying goes,¡¨ change or be change!¡¨ Telkomsel and Telkom decision to sell its shares to SingTel is based on their strategies to maintain its positions as a market leader in the Telecommunication business. It is important for their employees to see and support that, if the changes are not made Telkom and Telkomsel conditions will decline. Telkom and Telkomsel employees should not use ¡§Tunnel Visions¡¨ to judge their company¡¦s present and future conditions. Someone inside the tunnel could not see what is outside the tunnel circle. It is a very dangerous trait, because by doing that, they limit themselves into only seeing the existing competitors, without thinking about the possibility of new threats from new competitors. They did not believe that the company¡¦s present condition, which is very good, will last forever. People with tunnel vision, usually view things like using myopic glasses, they only see in small range and scope, they put themselves in the center of the action surrounded by their existing competitors, they believes that ¡§What they know right now is everything and what they do not know is nothing¡¨. In this case, Telkom and Telkomsel employees believes that the company¡¦s present conditions is everything and will last forever, and no other type of conditions will happen to the company. Telkom and Telkomsel management also SingTel, are also to blame because they did not gave proper acknowledgement or understanding about the strategic steps they are about to do to their employees, because of their miscommunication and lack of information, a big conflict and problem arises from the employees, that could be prevented, if they only took the time to explain and inform their plan and objectives in doing the acquisition. After they got the employees understanding, than the next step is to stimulate them to except and start the changing process. Making the Telkom and Telkomsel employees to start the changing process will be more difficult than getting their understanding, because: „f First; the employees will be afraid of all the risks that the changes will caused, the employees will be very resistance to accept the changes if they think the risks are bigger than the benefits they will get in return. Table II. 1. Types of Risks Financial Risk Risk in the form of benefits, material losses, monetarily losses Psychological Risk Risk in the form of psychological things such as stresses, pressures, the feeling of secure-ness , pride, nationalism, etc. Social Risk Risk that are connected with values, social norms, ethical issues; and acceptance by the society, family, and friends. Physical Risk Risk in the form of physical disturbances, such as mistreatment, torture, disturbance of self security. Performance Risk Risk in the form of physical appearances, like looking uncoordinated, or undignified. Time Risk Risk in the form of time losses, how much time is it going to take or need to support or do the issues. In the term of financial risk, Telkom and Telkomsel employees are afraid that the company is going to do some changes in company¡¦s human resource and organization structure; by doing downsizing, hierarchal skimming, tight budgeting, etc. In psychological risk, the employees are afraid that the acquisition process would mean a new management and type of control that might mean heavier stress and pressure in doing their job. In social risk, they are afraid that the society will not perceive them as a nationally own company anymore, because some of its shares are owned by foreign investor.In physical risk, its very hard for the employees to move from its ¡§comfort zone¡¨ to an uncertain ¡§discomfort zone¡¨. In performance risk, they are afraid that the changes will affect the overall performance of the company that at the end would hinder their chance/ability to grow or enhance their career. In time risk, the employees are afraid that it would take a long time for them to adapt with the company¡¦s changes, and it will take a longer time to make the changes successful or have a good effect to their company. The company should convince them that they are not endangered by these risks in order to get them to start the changing processes. It is the management job to reduce the negative perception of its employees about the negative risks that the changes would bring and show them all the positive things that the acquisition will bring. „f Second, no clarity and certainty. Something became unclear when it is not focus, the information is not complete, and the process stages are not done in the proper manner. It should be remember by the Telkom and Telkomsel management that a company significant changes that would affect all the vital elements of the company¡¦s will need all the support it could get by its employees, it is needed as a pushing energy for the changes momentum that would increase its probability to be successful. When Telkom management induce their employee¡¦s to move from their comfort zone to their discomfort zone, all the employees are scared about the uncertainty of their future, especially about the future risks and benefits that the can get from the changes. Because there will always be a pessimism from the employees about the changes, the management jobs are to reduce or even minimized the employee¡¦s negative perceptions and increase their optimism. „f Third; No support. The management of Telkomsel should have shown the employees that they are an important factor in the changing process, the employees acts as a ¡§change agents¡¨ that is needed for the success of the acquisitions process with SingTel. The management and employees have to act as one solid team to face the acquisition process and the challenges it will bring. Telkomsel management have to keep trying to resolve the conflict and problems, because they need the support from their employees as the basic structural foundation of the company, the support from them will make the positive energy for the changing process became greater. „f Fourth; the Clarity of the Acquisition Blue Print. Regarding the acquisition process, the management has to have a clear perception about it, especially: (1). A clear objectives, goals, and direction. (2). the availability of all the supporting resources (example: Financial, Support, materials) (3). A suitable rewards and benefits. The blue print of the Telkomsel acquisition process has to be very clear and can be understood perfectly by their employees. „f Fifth; the Changes did not Came from the Employees. The employees of Telkomsel and Telkom will feel reluctant to follow the changes, because they feel that they played no part on those changes/acquisition processes. The management should have involved them in the decision making process and the implementation process to make the employees feel that their involvement is needed. „f Six; Disturbance to Routine. The employees are afraid that the changes will disturb their usual way of life or comfort zone, it also would cause new burdens, fears, commitment, and threats regarding their career developments where their sacrifices are bigger than the rewards they could get. They are also afraid that the changes will not work and they have to suffer the consequences. „f Seventh; The Employees are Already Satisfied with the Present Condition. The employees are reluctant to change because they see no need to do it. They feel very satisfied with the company present condition and they have a negative perception about the implementation of the changes/acquisition process (pessimism). IV. Recommendations To resolve the conflict that is happening inside Telkom, specifically Telkomsel. The management could applied one or more conflict management method mention bellow. I only mention five of the method from an array of choices, because I think, these five are the most suitable in resolving the conflict and getting the optimum results. The method is not listed according to priority level. a). The Musyawarah and Mufakat Method Musyawarah is a decision making process through consultation. It is a procedure in which, ideally, all opinions and voices are heard. Everything that is put forward considered equally correct, and is used in solving the problem faced. After listening to all parties involved using a non-confrontational form of dialogue, musyawarah tried to reach unanimity of desires which guarantees that the final decisions, that is called mufakat, will be accepted as appropriate by all parties. In broad terms, conflict resolution practices in Indonesia can be classified as: (a) administrative or judicial procedures in which a respected or officially appointed third party makes a decision and (b) consensually validated processes in which, parties work together to produce mutually acceptable solutions, which is commonly, called musyawarah. The objective of the consensually validated approach is to achieve mufakat (concensus) by using a collectively endorsed procedure known as musyawarah (collective deliberation). There are four steps in this method : Picture IV. 1. Steps In the Musyawarah-Mufakat Method i. Framing the Problem It involves identifying all the parties that are connected by meeting them and listening to their point of view. At this stage, points of clarification are raised only to make sure that all issues are being brought forward. At no time would the information collected be used to confront parties in order to clarify a matter of fact or principle. The information is gathered by open receptivity and serves the dual function. The full background to the issue is established; where the boundaries are and what the focus is. In the Telkom-Telkomse-SingTel management vs Sekar Telkom case, the government or the mediator (that are agreed by both parties) should have initiated a meeting between both parties to start the negotiation process, in order to reach a peace agreement. ii. Preparation for Dialogue In this stage, parties are again receiving the same degree of opportunity and support. It will communicate to the disputants that normal social protocol is working and that any elevation of situation-specific anxiety can be relieved. It will describe why they are meeting; outlining what will happen and what issues will be discussed. This helps to devolve participative responsibility back to the group while committing to reach its objectives which is mufakat as the main goal. The first meeting between Telkom-Telkomsel management, SingTel, Sekar Telkom that are take to complied with the first step, should be followed by other meetings/discussions to elaborate further programs/policy in reaching the agreement (mufakat) that benefit all parties. iii. Features of Dialogue In this stage, disputants are then invited to outline the problem. The dialogue environment is low on structural requirements and high on receptivity. All present may contribute to the discussion of points and opinions. The benefit of this approach is that participants are able to elaborate ideas and to elaborate ideas and to explore different points of reference. This is the key stage of musyawarah process, where the meeting enables individuals to explore options and experiment with reasoning under condition...