conflict in a workplace 1-6

conflict

"A process that begins when one party perceives that another has negatively affected or is about to negatively affect something that the first party cares about"

Typical sources of workplace conflict

- Scarce Resources - Personality Clashes - Poor Performance

•Mediation

-A third party assists parties in developing their own solution

•Arbitration

-A third party decides who is right/wrong; can be a non-binding decision (rare - often called advisory arbitration) or final and binding (much more common and virtually impossible to appeal or overturn)

Conflict Styles

-Avoiding -Accommodating -Compromising -Competing -Collaborating

Distributive Bargaining

-Claiming value: result of zero-sum or distributive situations where the object is to gain largest piece of resource

•Litigation

-Filing a lawsuit and proceeding to court where a judge or jury will make a ruling based on evidence and testimony

•Ombuds

-Person who conducts an investigation and attempts to assist the parties in settling the dispute

•Negotiation

-The parties work out a mutually agreeable solution

The interactionist perspective

1)Acceptable and to be encouraged to some extent 2)Positive 3)Essential for performance •Stagnant •Lethargic •Non-responsive to change

The traditional perspective

1)Harmful 2)Negative 3)Associated with violence and destruction 4)Sign of malfunctioning of the group • Conflict arises from 1)Poor communication 2)Lack of trust and openness 3)Failure of manager to fulfill needs of employees

The human relations perspective

1)Work place conflicts are not always productive 2)They cause emotional disruption 3)Task conflicts soon turn to relationship conflicts 4)Conflicts cause stress 5)Conflicts reduce trust and cooperation

Example: How Early Neutral Evaluation Works

1.First, an employee files a complaint or grievance 2.Supervisor provides written response 3.Employee asks Employee Relations representative to appoint a third party mediator to the case 4.Mediator conducts informal expedited hearing where parties present their abbreviated cases 5.Mediator provides an oral response regarding the likely outcome in arbitration or litigation 6.Mediator then attempts to get the parties to settle through mutual agreement 7.If no agreement, case proceeds to litigation or arbitration before a different third party

workplace conflict

1.Psychological effects 2.Physiological effects 3.Carry over beyond workplace 4.Costs a.Time b.Exposure to costly litigation and plaintiff awards c.Damage to Company/personal reputation d.Distraction from the business of the business Workplace violence

Charles J. Muhl - "The Employment at Will Doctrine: Three Major Exceptions"

1.The termination violated public policy 2.There was an express or implied guarantee of continued employment 3.The theory of implied covenant of good faith and fair dealing

Facilitation

A third party provides facilitation assistance and encourages the open sharing of data and information share information and data, (nonbinding) no decision is made

Conflict creates polarization within the organization.

Communities can become polarized over things like whether they need a new high school or whether the present school is adequate.

Conflict is avoidable

Conflict is not avoidable. Not everyone is going to like or agree with everyone else.

Integrative Bargaining

Creating and claiming value: result of non-zero-sum or integrative situation where the objective is to have both parties do well

Step 2: Conflict Indicators - determine the extent to which they are impacting the organization on a scale from "not a problem" to "a very serious problem."

Examples: •Recruiting new hires •Absenteeism •Tardiness •Turnover •Customer satisfaction •Grievances •EEO complaints •Theft •Employee satisfaction or engagement survey results

Competition

I gain, ignore relationship

Collaboration

I gain, you gain, enhance relationship

Conciliation

Involves elements of facilitation and mediation get parties together coordinate meeting opportunities facilitate initial information exchanges encourage parties to test perceptions & misperceptions conciliation is non-adjudicatory & non-binding two party's together works with both parties to share information and ask question if they should or shouldn't go to court

A student recently completed a labor relations class and worked very hard to excel in an effort to earn a grade of "A" in order to maintain a 4.0 GPA. When final grades were posted the student learned that the professor awarded them a grade of "B." When the student asked the professor why, he learned that the the professor based the decision to award a B rather than an A on her perception of the student's class participation. The student could not understand this as he felt that he was one of the more active participants in every class.

Is this primarily an interest, rights or power dispute? Are there traces of one or both of the other categories?

Acme Hardware Company has been in contract negotiations with its Union, the Machinists Union Local 601, for nearly six months. For the past two months, the Union has been working without a contract as the previous contract expired and the Company refused to extend it during the ongoing negotiations. The main issue in dispute is over health care insurance. Acme now wants the Union employees to pay a portion of the monthly healthcare insurance premiums. Up until this point, the Company paid 100%. The recently expired collective bargaining agreement ("the contract") states, "The Company shall provide health care insurance and shall pay 100% of the premium costs."

Is this primarily an interest, rights or power dispute? Are there traces of one or both of the other categories?

Chris works for a medium sized employer in the mid-western United States and has an elderly parent (her mother) who is now suffering from dementia and cancer. Chris would like to take a day off once a month or so to spend in the nursing home with her ailing mother. She has exhausted all of her available vacation time for the year and would be willing to take the time off without pay. Chris approached her manager to discuss the matter. Her manager denied her request for additional time off, telling Chris that she is indispensable and her services cannot be spared, even for a single day in the foreseeable future. Chris can't afford to risk losing her job by taking the time off given her manager's position. Her employer is one of only a few in the area and her chances of being hired elsewhere at a decent wage are slim given her skill set.

Is this primarily an interest, rights or power dispute? Are there traces of one or both of the other categories?

Several years ago, a couple of Professors at Smith University were discussing their support for the Habitat for Humanity, a charitable organization that works with volunteers to build housing for those in need. The Professors engaged several students who also expressed an interest in their conversation and volunteer activities. Soon, interest spread across the campus and today there are over a thousand volunteers for Habitat from Smith College. The students and faculty want the University to include a reference to the Habitat for Humanity in its newsletter to enlist more volunteers. The University considered whether they wanted to grant the request but eventually denied it.

Is this primarily an interest, rights or power dispute? Are there traces of one or both of the other categories?

Distinguishing factors for consideration:

Preventative or reactive Applies before or after conflict occurs? Advisory or decisional Intended to advise/negotiate or to render a decision? Investigative or evaluative Intended to gather evidence and facts or to assess or determine what the outcome might/should be?

Conflict produces inappropriate reactions by the people involved.

Sometimes reactions are inappropriate. Sometimes they are very appropriate.

Compromise

Split the difference

What type of dispute? •You are the HR Director at a small NJ University •Last month you learned that Rutgers University was acquiring your school Today you learned that Rutgers will replace many of the Human Resources policies that you have worked so hard to create and implement and you aren't happy about that.You are most upset since the policies fit so well with your school's laid-back culture.

This is primarily a power dispute. The larger, more powerful acquiring employer is exercising that power

The Costs of Workplace Conflict

Today, the cost of losing and replacing an employee can be as high as 150% of the departing employee's annual salary.

ØWe should avoid conflict

Trying to stop all conflict is a waste of time and energy Conflict can have either constructive or destructive effects

The Seven Tests of Just Cause

Was the employee adequately warned of the consequences of their conduct? 2. Was the employer's rule or order reasonably related to efficient and safe operations? 3. Did management investigate before administering the discipline? 4. Was the investigation fair and objective? 5. Did the investigation produce substantial evidence or proof of guilt? 6. Were the rules, orders, and penalties applied evenhandedly and without discrimination? 7. Was the penalty reasonably related to the seriousness of the offense and the past record?

Goals

different visions for success, etc.

Personality Differences

extraverts/introverts, etc.

Values

honesty, fidelity, etc.

Disagreement

is a change to a relationship that disrupts the normal routine.

Conflict

is more serious, and is a consequence of the disagreement. - Threat to someone's needs, concerns, or interests - Conflict is normal - "Any situation where your concerns or desires differ from another person's." Kenneth W. Thomas

Psychological Needs

respect, power, belonging, etc.

Resources

time, staff, money, etc

Title VII of the Civil Rights Act of 1964

to fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual's race, color, religion, sex, or national origin; or (2) to limit, segregate, or classify his employees or applicants for employment in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee, because of such individual's race, color, religion, sex, or national origin.

The Costs of Mismanaged Conflict

• 25% of employees view their jobs as the number one stressor in their lives. (Northwestern National Life) • Workplace stress causes approximately one million U.S. employees to miss work each day. (American Institute of Stress) • Workers who must take time off work because of stress, anxiety, or a work conflict will be off the job for an average of 21 days. (US Bureau of Labor Statistics)

Civil Litigation

•A dispute resolution process where the parties and their counsel argue their view of a civil (non-criminal) controversy in a court of law

Power Disputes

•Ability to overcome another's efforts through sheer power •Settlement is imposed by raising the cost of disagreement •Common in mergers and acquisitions and to some degree in labor/management relations -Large company acquires a small one and trashes their HR policies -Employer taking abusive advantage of low skilled workers in a tight labor market

•Conciliation

•Agreement desired & possible •Preserve parties control •Minimize 3rd party intrusion Finality is not required

The Rise of Alternative Dispute Resolution ("ADR")

•Alternative to litigation over workplace disputes •Emergence began in the late 1970's -Employers were greatly dissatisfied with litigation •Benefits of ADR: -Avoidance of excessive costs -Avoidance of delays -Avoidance of unexpected outcomes •Companies eventually turned to ADR to also resolve disputes with: -other businesses (suppliers, partnerships, competitors, etc.) -clients & customers -as well as their employees

Termination violated public policy

•An employee is wrongfully discharged when the termination is against an explicit, well established policy of the State -Example - in most States, it is illegal to fire an employee for the act of filing a worker compensation claim after legitimately being injured on the job or for refusing to violate the law at the request of the employer Recognized in 43 of the 50 States

Implied guarantee of continued employment

•Applied when an implied contract exists between employee and employer even though no express written instrument regarding the employment relationship exists •Employers sometimes make written or verbal representations to employees regarding job security or procedures that will be followed when adverse employment actions are taken Recognized in 38 of the 50 States

Produce-or-Perish Management - High Results/Low People

•Believe that their team members are simply a means to an end and team's needs are secondary to productivity •This type of manager is autocratic, has strict work rules, policies and procedures, and can view punishment as an effective way of motivating team members •May drive impressive production results at first, but low team morale and motivation will ultimately affect people's performance, and this type of leader will struggle to retain high performers

The Costs of Mismanaged Conflict

•Days required for a workplace conflict to be resolved through litigation: 685 days • •Average employer cost to resolve a workplace conflict through litigation: $96,000

Rights Based Dispute Resolution

•Determining who is right -Required reliance on an independent standard with perceived legitimacy/fairness -Rights may not be clear - sometimes different and contradictory standards apply -Almost always requires intervention of a third party to make final determination -Public adjudication through courts and administrative agencies -Private adjudication is provided by arbitrators

Interest Disputes

•Disagreements that affect what people want or need to receive relative to their employment -Work assignment -Performance evaluation -Scheduling -Promotion -Compensation

Avoidance

•Don't negotiate

Step 1: Conflict Stressors - Used to determine the causes driving conflict and the extent to which they are present in the organization using a scale ranging from "not present" to "high"

•Downsizing •Ongoing litigation •Profit Losses •Merger or acquisition •Expanding workload •New work technology being implemented •Change in key organizational policies affecting employees

Pierce v. Ortho Pharmaceutical Corp. PT2

•During the trial Ortho moved for summary judgement. Summary judgement is when there are not enough facts to make a decision and the case must go to trial.

ADR Use

•Findings based on survey of Fortune 1000 •Nearly all corporations have used ADR •Mediation and arbitration most prevalent •Those that tried mediation or arbitration most likely to use other forms of ADR •Average responding company used 4 of the 8 ADR processes •Most use ADR more on contingency basis rather than as a matter of policy

Seven basic tools of negotiations

•First, be dispassionate; emotion destroys negotiations. You must force yourself to be calm. •Second, prepare, even for five seconds. •Third, find the decision-maker. •Fourth, focus on your goals, not on who is right. •Fifth, make human contact. People are almost everything in a negotiation. •Sixth, acknowledge the other party's position and power, valuing them. If you do, they will often use their authority to help you achieve your goals. •Finally, be patient. Negotiations often take more time than expected.

Impoverished Management - Low Results/Low People

•Generally ineffective •Low regard for creating systems that get the job done •Little interest in creating a satisfying or motivating team environment •Typical results: -Disorganization -Dissatisfaction -Disharmony

Accommodation

•I let you win, enhance relationship •

Discriminatory Discharge

•Illegal if: -Employee is in a protected category -Can prove employer had a discriminatory motive •Protective legislation examples -Title VII, Civil Rights Act -Age Discrimination in Employment Act -Americans with Disabilities Act

Pierce v. Ortho Pharmaceutical Corp.

•In the Pierce v Ortho Pharmaceutical Corp. court case, the fundamental question that is raised is whether an employee at will (Dr. Pierce) has a cause of action against her employer to recover damages for being terminated for refusing to work in a building that she determined was unsafe and could cause serious injury or death.•In the Pierce v Ortho Pharmaceutical Corp. court case, Dr. Pierce lost because she resigned from the position and was not fired.

Litigation

•In the US, litigation is still the dominant method in which disputes are resolved when negotiations fail •In virtually all other developed countries mediation and/or arbitration are primary methods •Litigation is the most adversarial means to resolve a dispute •There can only be one winner and there is always at least one loser •Often damages or destroys relationships •Frequently even the "winner" suffers through the process •From 1980 to 2005 the numbers of civil cases filed in federal courts more than doubled • •New Jersey, California and New York lead the nation in the highest number of lawsuits proportionate to population

Interest Based Dispute Resolution

•Interests: things that one cares about or wants •Needs, desires, concerns, fears, etc. •Underlie people's positions (the tangible items they say they want) •Reconciling usually requires negotiation -Probing for deep seated concerns -Devising creative solutions -Making trade offs or concessions where interests are opposed •Mediation is another interest-based procedure

Rights Disputes

•Legally protected •Unwritten common laws •Employers' practices, policies, contractual agreements -Discrimination claims -Whistleblower (retaliation) claims -Alleged wage and hour violations -Alleged OSHA violations

Employment at Will

•Means that an employer can terminate an employee for a good reason, a bad reason or no reason at all •A uniquely American concept •No predetermined time or duration of employment •Relationship is terminable "at will" •Either party can walk away with, or without, cause •Applies to about 90% of American workers •Does not apply to -employees who are members of a labor union or -Non-union employees who have an employment contract requiring cause for dismissal (usually professionals, entertainers or executives)

ADR

•Mediation is used most when -Circumstance leads to ad hoc, voluntary decision -Mediation is court ordered •Arbitration is used by far most when -The parties agree and their contract provides for it

The high cost of avoiding negotiation

•More than 50% of people (women AND men) will accept their next job offer without the benefit of negotiation. •They will receive lower salaries and fewer benefits than the employer was willing to pay. •Many people (especially women) think they need to choose between a good offer and a good relationship. -In fact, you can negotiate and maintain or even improve a relationship with effective negotiation. •One study of MBA graduates (Gerhart and Rynes, 1991) found that on average, when people negotiate: -Women receive 2.7% higher salaries -Men receive 4.3% higher salaries •What does this mean over the course of 50 years? (yes, you're going to be working for a long time!)

Common Forms of Alternative Dispute Resolution ("ADR")

•Negotiation -The parties seek to work out a mutually agreeable solution on their own •Arbitration -Binding Arbitration •A third party decides who is right/wrong and issues a binding decision •Little chance that the arbitrator's decision can be overturned -Advisory Arbitration •A third party decides who is right/wrong and issues a non-binding decision •Far less common than binding arbitration •Mediation -A third party assists parties in developing solution •Facilitation -A third party assistance, sharing of information •Ombuds -Person who conducts an investigation and attempts settlement -

Informal Aspects of Employment Arbitration

•Parties can design the process ØMay be expedited hearings ØMay not require pre- or post-hearing briefs ØMay give some weight to hearsay evidence ØMay allow advocates to lead their witnesses ØFormalities (Interrogatories, Discovery, Depositions) are generally waived ØArbitrator is jointly selected •More control in the hands of the disputants •Higher likelihood of compliance

Country Club Management - High People/Low Results

•Primarily concerned about team members' needs and feelings •Assumes that as long as they are happy and secure they will work hard •Result: a work environment that is very relaxed and fun but where productivity suffers because there is a lack of direction and control

The Costs of Mismanaged Conflict

•Research shows that 60-80% of all difficulties in organizations come from strained relationships between employees, not from deficits in individual employee's skill or motivation. The average wrongful termination award in California state courts: $640,000. The typical manager spends 25-40% of his or her time dealing with workplace conflicts. That's one to two days of every work week.

Fear of asking

•Researchers have consistently shown that women have more anxiety around negotiation than men. -Words and expressions women use to describe negotiation: •Scary •Going to the dentist -Words and expressions men use to describe negotiation: •Exciting, fun •Winning a ballgame, a wrestling match

ADR Criticisms

•Shifts adjudication from public to private forums •Binding arbitration ae final and decisions cannot be easily appealed •Disadvantage to non-union employees forced to arbitrate employment claims

Reasons Why Employers Don't Use ADR

•Tend to be the smaller within the Fortune 1000 •Tend to be very profitable; do not face same cost pressures •Some deal with unions in a militant fashion •May be perceived as sign of weakness •Lack of rules and procedural safeguards -Especially in cases involving important legal principles

ZOPA

•The ZOPA, or zone of possible agreement, is the area or range in which a deal that satisfies both parties can take place. Put another way, it is the set of agreements that potentially satisfy both parties. •Each party's reservation price determines one end of the ZOPA. The ZOPA itself exists (if at all) in the overlap between these high and low limits, that is, between the two.

Wooley v. Hoffmann-LaRoche, Inc. pt 2

•The court ruled in favor of Hoffman La Roche, Inc. The employee manual did not constitute an employee contract and the company had the right to terminate Woolley.

Gender differences in negotiations

•The first study found that the starting salaries of male MBAs who had recently graduated from Carnegie Mellon were 7.6%, or almost $4,000, higher on average than those of female MBAs from the same program. •That's because most of the women had simply accepted the employer's initial salary offer; in fact, only 7% had attempted to negotiate. •But 57% of their male counterparts—or eight times as many men as women—had asked for more. •

Wooley v. Hoffmann-LaRoche, Inc.

•The issue before the court in the Woolley v. Hoffman La Roche court case is whether or not the terms in the employee manual contractually bind the company.The following information describes the background that led to the conflict in the Woolley v. Hoffman La Roche court case: The employee, Woolley, was assigned to write a report. His superiors were not satisfied with it and requested that he resign. Woolley refused to resign and was subsequently fired. Woolley claims that his firing was a breach of the contract and that the employee manual implies that he could only be fired for cause and that the company was bound to follow a certain procedure outlined in the manual before terminating him.

Team Management - High Production/High People

•The most effective leadership style •Reflects a leader who is passionate about their work and who does the best they can for the people they works with •Inspiring figures who commit to their organization's goals and mission, motivate the people who report to them, and work hard to get people to stretch themselves to deliver great results. •Those led by a Team manager feel respected and empowered and are committed to achieving goals

Reservation Point

•The reservation point (also referred to as the walk-away) is the least favorable point at which one will accept a deal •Your reservation point should be derived from your BATNA

Theory of implied covenant of good faith and fair dealing

•This exception essentially requires that the employer deal with termination decisions in good faith and fairness •Judgements have been haphazard ranging from requiring just cause to prohibiting acts of malice in termination decisions •Only recognized in 11 States

What type of dispute? •As the Senior Vice President of Human Resources for Apple, you are served a letter from an attorney explaining that a class-action suit has been filed on behalf of a group of your workers claiming age discrimination. •You are convinced that this is a frivolous suit based on your initial investigation.

•This is primarily a rights dispute. Age discrimination is prohibited under the law.

What type of dispute? •You are the HR Manager for a hospital •A supervisor calls you and explains that she is angry because her manager has moved her from the day shift to the night shift She wants to challenge the decision. •Is this primarily an interest, rights or power based dispute?

•This is primarily an interest dispute - the supervisor wants to be on the day shift and is not necessarily entitled to it

Middle-of-the-Road Management - Medium Results/Medium People

•This manager tries to balance results and people but this strategy is not as effective as it may sound •Through continual compromise, fails to inspire high performance and also fails to fully meet people's needs •Result: team will likely deliver only mediocre performance.

BATNA: Best Alternative To a Negotiated Agreement

•What is the best alternative available to you if the negotiation you are about to enter into fails? •It is your "fallback" position or "plan B"

Diagnosing Conflict

•sheer scope •where your organization stands •compared with competitors whether and how much to invest in conflict resolution program development and skills based training