Sources of conflict in the workplace

• Change → Creates stress and discomfort (hate change bc it creates uncertainty)

• Different interests → Workers have a lesser stake and do not consider the goals of the business

• Different values → Cultural differences (value teamwork - collectivism or individualism)

• External factors → Economic environment (resources available), Migration (new workers unaccustomed to an organization’s culture/availability of the employees), and Political changes (new laws and regulations)

• Insufficient resources → Dissatisfaction of the employees when the employees need resources including co-workers (human resources) led to conflicts

• Poor communication → Misunderstanding

• Poor performance → The managers will not be satisfied

Approaches to conflict in the workplace by:

Employees—collective bargaining, work-to-rule and strike action

• Collective bargaining → When the representatives of the employers and employees are negotiating the employment contract.

• Work-to-rule → When the employees do the absolute minimum required according to the rules set by the employers (to delay production and to reduce productivity, but it’s difficult to discipline because it’s less disruptive and obeys rules).

• Strike action → Refers to the collective refusal of employees to work (massive; the trade union usually carries out a vote and then gives out notifications; illegal in some countries because it is very disruptive and directly affects business management and governments).

Employers—collective bargaining, threats of redundancies, changes of contract, closure and lockouts.

• Collective bargaining (win-win negotiations)

• Threats of redundancies → To pressure workers into complying with their demands (the workers are still protected by employment laws).

• Changes of contract → Legally change people’s (finite) contracts of employment, if administered fairly (gives the business a degree of flexibility in its pay structure, could be refused to accept the new terms and conditions).

• Closure → Permanent closure to not pay the workers (usually when other approaches have been exhausted and when unions reject the employers’ final offer).

• Lockouts → When the employer hires security guards or changes the locks of the premises to stop employees from working (they might desire to go back to work to get paid).

The following approaches to conflict resolution:

Conciliation and arbitration

• Conciliation is when the third party meets with the parties separately in an attempt to resolve their disputes and differences → To encourage the parties to negotiate and compromise to reach a mutual solution (conciliators have to be effective in communicating and the compromises are usually in writing to make the resolution legally binding).

• Negotiation → Compromise → Win-win solution

• Arbitration is similar but the arbitrator acts rather like a judge by listening to and examining the arguments put forward by both parties.

• Pendulum arbitration → When the arbitrator makes an offer and chooses the party closer to that approach.

Employee participation and industrial democracy

• An example of industrial democracy.

• The employees are given responsibilities and authority to complete tasks and decision making.

• Workers are more involved; benefit from higher levels of morale; an increase in job satisfaction → increase productivity; fall in absenteeism; fall in labour turnover rates.

No-strike agreement

• Occurs when a trade union has agreed not to undertake industrial action unless procedural steps have first been undertaken

• It helped the union to sustain its membership and reassured employers and other stakeholder groups would not strike

Single-union agreement

• Occurs when an organization agrees to participate in the negotiation process with a sole labour union that represents the workers → causes fewer disruptions; no need to spend much time