CONFLICT OF INTEREST

Conflict of Interest

Conflict of Interest

Overview

Conflicts are a natural part of human life, though hard to accept this as natural or normal. As human beings we are beings of relationships where there are differences because we are people different that we live in society on the basis of certain minimum consensus or agreements. Organizational conflict is a clash of opposing actions or ideas and notions among team members and colleagues who work together in an organization. This is caused by the divergence of interests, ethics and value orientations. Conflict arises due to mismatch of formal organizational principles and the actual behaviour of team members (Schulz 2001, 17). In very filed of the business there exist the issue of conflict of interest. In the industry where people perform the function of management of tenders and subsequently awarding the existence of the conflict of interest is very high. The aim and objective of this report is to undertake the discussion about conflict of interest in the industry of tender management and subsequent awarding.

Implication

The area of tendering and its subsequent awarding is considered as the most vulnerable area for raising the issues of conflict of interest. Promoting compliance with applicable laws designed to fight against bid-rigging is the most important step that the management in this industry can take. For a public official to solicit, accept or receive tenders without receiving offers, promises or grants is difficult. These offers often become the basis for conflict of interest in the management of tender. A conflict of interests is not always easy to describe, let alone to judge, however, experience shows that the only appearance of a conflict of interest can be very harmful. But now the main question in the management of tenders and its awarding is that from where does the conflict of interest arise? To avoid a conflict of interest is it necessary to set aside the personal interests. One possible definition would be: a conflict of interest is a situation where a person puts his personal interest (or that of relatives or others) before the interests of the employing organization. This definition of the conflict of interest shows the ways in which conflict of interest can occur in the field of tender management. The manager who manages contracts and take the decisions about the tender acceptance may indulge in the activities in which he or she accepts the tender of his relatives, friends or anyone who has promised an advantage. For example, it can be said that there would be conflict of interest if the company leader's son would be preferred to other for the acceptance of the tender. It would also be a conflict of interest if it would not go in the direction of the interest of company. Managers in the tender and contract management discipline practice conflict of interest when they prefer to accept the tender of their relatives, friend or someone who provides them with any sort of advantages at the cost of ignoring those who ...