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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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