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Eskom Case Study

Essay by   •  January 17, 2012  •  Case Study  •  457 Words (2 Pages)  •  1,167 Views

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There were several conflicts encounter in South African state owned enterprise "Eskom" in 2008, which was the economical crisis begin everywhere. Obviously, the financial tornado was not outfoot "Eskom". On Thursday 29 October, in 2008, a fateful Eskom board meeting heralded an unprecedented management crisis within this key South African state-owned enterprise. The company was reeling from a generation capacity crisis, the power black-outs of 2008, a serious skills shortage, a funding crisis for its new-build program, and applications to the Regulator that would increase the price of electricity five-fold over the five-year period from 2008 to 2012.

Eskom chairperson resigned on Monday after he said the government failed to support the board's bid to oust the company's CEO, after the two clashed over issues of how to run Eskom, the state-owned firm that is struggling to keep South Africa's lights on.

And after that, also CEO resumed his concern and responsibility. Because of the organization conflict between the chairperson and himself.

This is a quite difficult problem that we solve, however here is some solution.

In this situation, government should reduce their concern and board should increase their involvement. However, the government make an opinion they could not influence board's decision. Why? This conflicted situation began the South African government interfered the board's decision that resume the CEO. Then the two side problem was getting strained and Eskom's accomplishment was going down. It means the whole South African electric system is acting up and entire country is blackout. There are five different levels of conflict to recognise: Avoiding (low concern for both self and others),

Obliging (low concern for self and high concern for others),

Dominating (high concern for self and low concern for others),

Compromising (moderate concern for both self and others),

Integrating (high concerb fot self and others). The solution of this conflict is "obliging".

Obliging: Obliging, also called placating, is another style of conflict management. Obliging places a high value on others but a low value on self, perhaps reflecting an individual's low self esteem. It's also a strategy that can be used to deliberately elevate another person, making them feel better about an issue. Use of obliging by raising another's status is useful, especially if your position within the company is not a politically precarious one.

This style is useful if a manager is unsure of a position or fears a mistake has been made. By using the obliging style, the manager passively accepts the power of others, buying time to assess situations



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