The choice how to handle conflict in the workplace will depend on the culture and legal structure of the country in which the business operates, as well as the culture of the business itself.
In general, there are four approaches that may be adopted by management and workers to deal with conflict situations in a business organization. Let’s consider them in details.
Approaches to deal with conflict in a business organization
Three broad approaches to labor-management relations and dealing with conflict in a workplace are:
- Using ‘hard’ or autocratic leadership style. This approach to labor-management relations makes some business managers have a ‘take it or leave it’ attitude to their workers. It is quite commonly used in countries with poor or none labor-protection legislation, weak trade unions and high unemployment. While using the hard approach may allow lowering labor costs by sacking workers who object the unsatisfactory work conditions, it will lead to very low levels of motivation with no common objectives between labor and management. Nor there will be any job enrichment, staff involvement or participation, nor contribution from workers to important decisions.
- Adherence of industrial relations to labor legislation. Governments establish principles that underline labor laws and regulations that govern and the relationship between employer and employee. These laws aim to control working conditions, protect health and safety of employees, ensure employment rights, protection from discrimination, etc. Additionally, the government can intervene in industrial relations through agencies set up to improve industrial relations such as arbitration councils.
- Cooperation between workforce and management. It is certain that successful partnership between workers and managers will benefit all parties, and the business organization in the long-term. This approach is based on the recognition that less confrontation, fewer strikes and a great deal of harmony is necessary to work towards common business objectives. Management should not seek to oppose workers’ suggestions and those of their union leaders, but to actively involve them in important decision-making and daily operational issues.
- Collective bargaining between employees and employers. Collective bargaining is when trade unions which are representatives of employees negotiate with employers represented by associations. They will bargain about wage levels, working conditions, etc. These collective negotiations make trade union leaders very powerful as they can for strike action from all of their members bringing the entire company to a halt. This will cause disruption and lost output and sales.
Employer-employee relations should always be based on mutual respect, understanding and common aims. Only by mutual cooperation the business will be competitive leading to being able to survive the added strains of a globalized economy. In fact, participation of both the employer and employee involvement might become a significant factor determining the long-term success of business in rapidly changing market conditions.
