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Case: Work, Work, Work 

Hallbauer Insurance is a large dental insurer. Over the last five years dental insurance has become very 
popular, and Hallbauer is regarded as one of the leading firms in this field. The company insures 23 of 
the nation's largest 100 industrials and has been expanding at the rate of 21 percent a year for each of the 
last six years. 

Three months ago Hallbauer landed a series of new contracts with four major conglomerates. The 
amount of work needed to get these contracts processed and on-line is very great. The company has 
announced that effective immediately everyone will be required to work two hours overtime every day 
plus all day Saturday. Those wishing to work on Sunday will be paid double time or in the case of 
managers, be given equivalent cash bonuses. This arrangement will stay in effect for two months, after 
which the new contracts should be on-line. 

This news was not well received by the personnel. Most of them feel they are already being 
overworked, and they are now being pressured into working both longer hours and a longer work week. 
As a result, the error rate in claims processing has doubled and both tardiness and absenteeism are now 
at record levels throughout the firm. 

In dealing with the problem, the company has brought in a group of consultants. After two days, they 
concluded that there were serious morale and other human relations problems and suggested that the 
company agree to letting them collect and analyze information related to the problem. The consultants 
would like to distribute a questionnaire to everyone in the firm to get feedback on those problems that 
are having the biggest negative impact. "We can then develop a plan of action for dealing with the 
situation," the head of the consulting team told Hallbauer's president. The president thinks that this 
might be a good idea, but he first wants to talk to some of the members of the board of directors as well 
as senior-level executives. He has promised to get back to the consultants with an answer by the end of 
next week. 


1. What conflict response was made by the personnel to the announcement of the new work 
schedules? (7 marks) 

2. Which technique for resolving conflict is being used by the organization? Discuss. (8 

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