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MANAGEMENT OF WORKPLACE CONFLICTS IN BUSINESS ENVIRONMENT
USING ALTERNATIVE DISPUTE RESOLUTION
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF
THE STUDY
Nowadays workplace conflict does not receive much attention
in the people management literature but, to the extent that it does, a strong
consensus exists that organizations are likely to pay a high price if workplace
problems are not solved effectively (Ury et al. 1988). At the extreme, days can
be lost due to some form of industrial action but, more plausibly, sickness and
absenteeism rates may increase, and management-employee relations may become
strained if not embittered. Disharmony at the workplace may even impede
organizations from creating adaptable structures to succeed in today’s
challenging business environment. While there is wide agreement on the
potentially damaging effects of conflict, there is no one view on what
constitutes an effective conflict management system (Bingham & Chachere
1999).
Conflict is associated to the central processes of people and
their association with the surroundings and is, therefore, an unavoidable part
of organizational life (Jones & George, 2003). Conflicts in organization
have been attributed to several factors. Dealing with conflicts in
organizations has over the years been seen as the sole responsibility of the
managers who often times took a rigid stand how to deal with it; organizations
that address conflicts in this manner failed to recognize that conflict is
natural in organizational life and has its own both benefits and costs.
Conflicts have been said to occur in organizations, when normal activities are
disrupted to the extent that it becomes difficult to achieve the organizational
goals and objectives (More & Wegener, 1992).
More precisely, organizations are confronted with many forms
of interpersonal conflicts which can be disrupting to achieving organizational
goals. Additionally as a result of diversity in the workplace, conflict is on the
increase. Dumaine (1991) and Nohria (1991) posit that as companies’ try out
with flatter - more decentralized organizational structures, their workers
become more and more interdependent and responsible for more decision making.
These changes mean new types of conflicts will arise among different groups of
workers relative to those experienced in bureaucratically structured
organizations (Morrill, 1995). As more minorities, women, foreign nationals,
and employees with different experience and educational backgrounds are
entering the workforce. This diversity unescapably leads to conflicts different
from those experienced by a more standardized workforce (Fiol, 1994; Williams
& O’Riley, 1998).
If not properly managed, conflict in the workplace can become
a complex matter having damaging effects on the organization’s employees’
physical, emotional, and mental wellbeing escalating into unmanageable heights,
thus harming the mission and goals of an organization (Caudron, 1998). However,
conflict does not have to be a destructive element; when handled properly,
conflict can be of immense benefit to both the employees and the organization
as well. In an attempt to explain the nature of conflict, many scholars have
postulated theories to guide in the understanding of conflict. Among the
theories postulated is the traditional theory which sees conflict as bad - not
good for the organization and as such should be avoided.
Contemporary theory; however, recognizes that conflicts
between human beings are inevitable and if well managed can bring positive
results to the organization. Tillett and French (2006) believe that conflict
encourages communication dialogue and help with individual and organizational
growth as it provide opportunities for problems to be solved and help the
organization to advance; while Eunson (2007) opines that conflict can help
change complacency through productive means.
Unresolved workplace conflicts can sometimes led to
litigation with its attendant problems and the willingness of employees to sue
their employer have exposed almost all employers to an increasing volume of
litigation related to work-place conduct or the human resource decisions made on
daily basis. Understanding conflict and how to manage or resolve it should be
an integral part of what and how managers should learn; such understanding is
essential for the personal well-being and success of individuals as well as the
long-term success of organizations (Singleton, Toombs, Taneja, Larkin, &
Pryor, 2011). Over the years, there have been significant changes in the ways
organizations manage conflict which have led to efforts developed strategies
aimed at more efficient, less costly, and more satisfying resolution of
conflict; thus this paper examined the use of these less expensive and
appropriate methods such as alternative dispute resolution (ADR) approaches in
managing workplace conflicts.
There is a growing awareness among the industry players that
this process is time consuming, costly and could lead to irreparable damage to
the employer-employees’ relationships. In other words, it is in the best
overall interests of the disputants to resolve the conflicts as soon as
possible before they escalate to formal litigation, as this can lead to
unfavorable financial and non-financial repercussion such as stoppage of work,
increased operational cost, negative image, loss of goodwill and negative
employee-employer relationship (Gibbons, 2007). Alternative Dispute Resolution
(ADR) is a way to avoid this by resolving disputes in a non-adversarial way,
without recourse to courts, and its adoption has been on the increase,
especially in non-union workplaces (Colvin, Klaas & Mahony, 2006). Nations have
shown that ADR have been a successful as a first step to resolve disputes (Van
Gramberg, 2006). Bearing this in mind, the techniques of Alternative Dispute
Resolution (ADR) have become increasingly popular as an alternative to
litigation (Eden, 2011). According to Mackie, et.al (1995) ADR is a dispute
resolution involving a structured process with third party intervention that
does not lead to a legally binding outcome imposed on the parties.
1.2 STATEMENT OF
THE PROBLEM
Workplace conflict (organizational) can trigger negative
consequences affecting relationships (individual and group). It can lead to a
serious loss of time and energy when there is a failure to address it
competently. However, it can sometimes open up new opportunities for
relationship-building if it is handled honestly, impartially, and smoothly.
Moreover, conflict management strengthens relationships among groups and
individuals in their workplaces and indeed, other arenas of life (Eunson,
2007).
Conflicts in workplace may lead to organizational and
institutional failure. It can have long term consequences that are dangerous
for maintaining a productive work environment. This research attempts to
explain causes of organizational, institutional, and workplace conflicts. It
also tries to focus on conflict management strategies (Colvin, Klaas &
Mahony, 2006).
Alternative Dispute Resolution (ADR) is a mechanism designed
to resolve disputes in a non-adversarial manner. In a typical workplace,
disagreements are inevitable due to the diversity of the workforce, not just
demographically, but also in terms of their work behavior, career goals, etc.
Nonetheless, as long as disagreements are kept subtle and do not jeopardize
working relationship, they are manageable. The key is to understand the cause
of disputes and find ways for quick resolution in a peaceful and win-win
manner. When disputes are left unresolved, they tend to escalate, leading to a
hostile working environment and ultimately affecting performance.
1.3 OBJECTIVES OF
THE STUDY
The general objective of this study is to examine the
management of workplace conflicts in business environment using alternative
dispute resolution. The specific objectives of the study include the following:
1. To ascertain the
prevalence of workplace conflict among staffs in Delins insurance company
Ikeja.
2. To find out the
causes of workplace conflict in Delins insurance company Ikeja.
3. To determine the
consequences of workplace conflict in Delins insurance company Ikeja.
4. To investigate
the impact of workplace conflict on job satisfaction.
5. To examine the
approaches of using alternative dispute resolution in the management of
workplace conflicts.
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