Conflict resolution means taking actions to resolve workplace conflict and differences in opinions. It is necessary when employers and employees have conflicting interests causing difficult for both sides to reach a satisfactory settlement.
There are several ways to approach conflict resolution, including the following methods: consultations, negotiations, conciliation and arbitration.
Conflict resolution is considered to be successful, if each side’s interests are addressed to some extent. It results in an acceptable outcome for both sides: employee participation and industrial democracy, no-strike agreements or single-union agreements.
Methods of conflict resolution between employee and employer
Three main methods used in resolving conflict between employees and employers include:
1. Consultations. This is the process of discussing conflicting issues before official negotiation takes place. Management of the business will listen to the views expressed by workers and discuss matters of mutual concern with them. However, the final decision is made by the business organization. There is no requirement to come to any agreement and the firm may not take into account of the opinions of its employees whatsoever. Three main types of consultations include:
a. Pseudo consultations. Business managers make decisions by themselves and then inform workers what has been decided.
b. Classical consultations. Workers have a chance to influence decisions using their trade union representatives.
c. Integrative consultations. Workers will be directly involved in using problem-solving techniques.
Factors affecting consultation might include legislation, consultative bodies such as works councils, corporate culture, tradition, representation and power, Communication and Information Technology (IT), quality standards, etc. Consultations might be highly effective as employees are motivated by being a part of the decision-making process. This can help to avoid taking any further industrial actions that may be damaging to the entire firm. Sharing new ideas, developing more open corporate culture and encouraging trade unions to take a longer-term perspective will be motivating to the workers and beneficial for the business.
2. Negotiations. Negotiations refers to a bargaining process between two or more parties in attempts to achieve compromise leading to a mutually acceptable result. Each party has its own needs, viewpoints and aims to achieve. Therefore, it is important to find a common ground in matters of mutual concern, reach the final agreement in order to make a decision, come to an agreement, decide what should take place or resolve a conflict. The negotiations between employers and employees tend to focus on the terms and conditions of employment. Main stages in the negotiations process include preparation, proposal, debate, bargaining, closing and review. Different negotiations approaches might include:
a. Avoidance (lose-lose).
b. Level playing field.
c. Winner takes all.
d. Mutual victory (win-win).
Negotiations tend to be on things that are more local rather than national agreements. The ultimate goal of negotiation is a ‘win-win’ outcome for all parties concerned as both parties must agree on the final outcome in the end. The outcome of workplace negotiations should benefit both employees and the employer.
3. Conciliation and arbitration. This process often happens when consultations were not effective and negotiations have broken down. If employers and employees have failed to agree on the matters under discussion and cannot solve it alone anyhow, they may use the services of an independent mediator. Both parties agree to accept that a decision will be made by a neutral conciliator or arbitrator of whatever it may be. This process of conciliation and arbitration usually involves both parties introducing their case separately to the mediator who will also collect relevant evidence on the matter of concern. The advantages of this process include making negotiations less confrontational, improving communications between the parties, defusing disagreements as early as possible, accepting external assistance to solve the dispute, etc.
Difference between conciliation and arbitration
These two terms are slightly different from one another.
1. Conciliation. The conciliator does not have power to impose a final solution. But, aims to persuade both parties involved to meet and talk, and assist them in finding a resolution to settle their dispute. The two parties involved agree to use the services of an independent and impartial conciliator. This outsider meets separately with the employees and the employer to discuss issues in dispute attempting to resolve their differences. While the parties are unlikely to actually meet with each other at this stage, it is important for conciliators to be highly skilled negotiators and effective communicators to negotiate. And, compromise to reach a solution that both can parties can accept. Conciliators will get the parties to commit their compromise in writing making the resolution legally binding. The three-step conciliation process includes the following actions:
- Negotiation.
- Compromise.
- Win-Win Solution.
2. Arbitration. The arbitrator has power to impose a final solution which becomes legally binding, and both parties accept that the arbitrator’s decision will be final by signing a contract to that effect. The two parties involved agree to use the services of an independent external entity as part of conflict resolution. The arbitrator will act like a court judge by listening to the arguments put forward by both parties, examining evidence, accepting written and oral testimony, etc. before making a final decision or recommendation. Different types of arbitration include:
- Binding Arbitration. This may be part of a dispute procedure, where the parties have stated that in the event of a failure to agree, they will appoint an arbitrator as a means of settling the dispute.
- Compulsory Arbitration. This is generally associated with state involvement in dispute settlement. The government may provide that in the case of disputes in certain essential industries, the parties may not take any form of industrial action, but must accept arbitration.
- Pendulum Arbitration. Here, the arbitrator is restricted to decide completely in favor of one party or the other, i.e. there is no compromise made.
An essential hypothesis underpinning this form of arbitration is that, being an ‘all or nothing’ situation, the parties will adopt more realistic positions, rather than setting out a more extreme position. Since the parties should be brought close by this process that they may prefer to settle rather than be seen to lose at arbitration. The idea behind this approach is that both parties in the dispute are forced to make more realistic and/or conservative demands.
Results of conflict resolution
There are three main outcomes of resolving workplace conflict. Let’s take a look at them in details.
1. Employee participation and industrial democracy. This is when employees are involved in decision-making within a business organization. They are no only given responsibilities and authority to complete tasks, but they are also encouraged to take responsibility for quality in terms of carrying out activities, which meet the requirements of their customers. Employee participation can take many forms including:
- Teamworking. Project teams such as quality circles are established, so employees can work on projects or tasks with considerable responsibility being delegated to the team.
- Suggestion schemes. Employees are given the opportunity to suggest new ideas and improvements to managers, e.g. through suggestion boxes.
- Meetings. Meetings and consultation sessions are held where employees are encouraged to share their ideas.
- Delegating. More opportunities for delegation of responsibility are created within the business organization.
- Multi-channel decision making processes. Now, the decisions are not only made in a downward direction, but communication also happens upwards, sideways and in many other directions within the firm.
- Kaizen. Continuous improvement programmes are established to help the employees make products, processes and solutions better.
Workers are trusted to make decisions for themselves and the entire organization which is a key motivational tool. It helps to increase productivity because workers are more involved, hence satisfied.
Happier, more engaged workers translate into higher productivity.
Employers benefit from a more cooperative workforce that is less likely to engage in industrial actions, lower absenteeism rates and lower labor turnover rates. This is a ‘win-win situation’ for both the employer and employees.
2. No-strike agreements. This is when a trade union agrees to sign a no-strike agreement with employers so employees agree not to take strike action as a form of industrial action in exchange for greater involvement in business decisions that affect the workforce as well as representing employees in important negotiations. These union-employer agreements to help with changing working methods and increasing labor flexibility that leads to higher pay, higher productivity, higher profits and worker participation. With many trade unions can be very disruptive to the business community, giving up strike actions improves the image of the union as being a responsible representative body.
3. Single-union agreements. This is when an employer recognizes just one trade union for the purpose of collective bargaining. The business management will then negotiate only with a sole labor union that represents all the workers. This causes way fewer disruptions to the employer as there is no need to spend resources on dealing with several different unions. Therefore, single-union deals reduce conflict at work while making collective bargaining much less difficult and time-consuming. However, they also reduce the flexibility of a workforce, if members of one union are prevented from joining another union as different trade unions compete with one another for total membership. Additionally, the newly united workforce and its union representatives may be able to put greater influence during collective bargaining when there is only one union.
In summary, employee participation and industrial democracy, no-strike agreements and single-union agreements are the results of conflict resolution. Additionally, jingle job status for all workers that removes differentials in salaries and working conditions as well as trade union acceptance of training and retraining might be used in order to enhance methods of conflict resolution.
