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Chapter Thirteen
Resolving Conflict
and Dealing with
Difficult People
Copyright © Houghton Mifflin
13 - 2
Chapter Preview: Resolving Conflict and
Dealing with Difficult People
• Major causes of conflict in the work
setting
• Assertiveness skills in conflict situations
• Strategies for handling difficult people
• Effective negotiation skills
• The conflict resolution process
• Contemporary challenges facing labor
unions
Copyright © Houghton Mifflin
13 - 3
Views of Conflict
• Traditional view
– A clash between incompatible people,
ideas, or interests
– A negative experience
Copyright © Houghton Mifflin
13 - 4
Views of Conflict
• New view: An opportunity
– Personal growth
– To use positive, constructive conflict
resolution skills
– Discover creative solutions
Copyright © Houghton Mifflin
13 - 5
A New View of Conflict
• Discovering creative resolutions to a
conflict may serve to
– Clarify a relationship
– Provide new ways of thinking about the
source of the conflict
– Open up possibilities for improving a
relationship
– Open people to new points of view
Copyright © Houghton Mifflin
13 - 6
Total Person Insight
Companies pay a high price for conflict.
Productivity drops, work relationships
suffer and energy is wasted, as workers
become increasingly angry, stressed
and defensive.
Cheryl Shavers
Senior Manager, Intel Corporation
Copyright © Houghton Mifflin
13 - 7
The Cost of Conflict
• A lot of time and money is invested in
conflict resolution
• About 20% of managerial time
• Cost of unresolved conflict can also be
high
Copyright © Houghton Mifflin
13 - 8
Finding the Root of Conflict
• Conflict is caused by a range of factors
• Some are major and may be addressed
through
– the legal system
– labor negotiations
• Others are minor, but may affect
productivity
Copyright © Houghton Mifflin
13 - 9
Finding the Root of Conflict
• It is necessary to find the root cause of
conflict in order to deal with it
• Unless the root cause is identified, it is
likely to recur
Copyright © Houghton Mifflin
13 - 10
Finding the Root of Conflict
If root cause…
• stimulates constructive conflict, it can
be allowed to continue
• stimulates destructive conflict, steps
need to be taken to correct the problem
Copyright © Houghton Mifflin
13 - 11
Common Roots of Conflict
• Ineffective
communication
• Values clashes
• Culture clashes
• Work policies and
practices
• Adversarial
management
• Noncompliance
• Competition for
scarce resources
• Personality clashes
Copyright © Houghton Mifflin
13 - 12
Ineffective Communication
• Ineffective communication is a major
source of personal conflict
• When different people work closely
together, communication breakdowns
are inevitable
• First determine if the conflict is a
misunderstanding or a true
disagreement
Copyright © Houghton Mifflin
13 - 13
Ineffective Communication
• For misunderstanding
– explain your position or provide more
details
• For true disagreements
– persuading one or both parties to change
positions may be necessary
– root problem will persist until someone
changes
Copyright © Houghton Mifflin
13 - 14
Value Clashes
• Conflict may be due to value differences
between
– generations
– women and men
– people with different value priorities
– “loyalist” versus “job-hoppers”
Copyright © Houghton Mifflin
13 - 15
Culture Clashes
• Occurs between people
– from other countries
– between people from different parts of the
U.S.
• Work force reflects cultural diversity
• Different cultural traditions can easily
come into conflict in the workplace
• Issues range from simple to complex
Copyright © Houghton Mifflin
13 - 16
Work Policies and Practices
• Conflict may happen when
organizations maintain confusing or
arbitrary
– Rules
– Regulations
– Performance standards
• Often surface when managers don’t
understand that employees view
policies as unfair
Copyright © Houghton Mifflin
13 - 17
Adversarial Management
• Conflict can occur when managers view
employees and other managers with
distrust and suspicion
• View others as “the enemy”
• Leads to a lack of respect by
employees
• Makes teamwork and cooperation
difficult
Copyright © Houghton Mifflin
13 - 18
Noncompliance
• Workers refusing to comply with rules
• Or accept fair share of workload
• Makes other co-workers angry
Copyright © Houghton Mifflin
13 - 19
Competition for Scarce Resources
• Downsizing and cost cutting can lead to
destructive competition for scarce
resources
• When decisions are not clearly
explained, workers suspect coworkers
of devious tactics
Copyright © Houghton Mifflin
13 - 20
Personality Clashes
• People have differing
– Communication styles
– Temperaments
– Attitudes
• People may not be able to identify
cause of dislike
Copyright © Houghton Mifflin
13 - 21
Resolving Conflict Assertively
• Being assertive can be helpful in a
conflict
• Appropriate assertive behavior does not
violate the rights of others
• It is a matter of getting others to
understand your viewpoint
Copyright © Houghton Mifflin
13 - 22
Resolving Conflict Assertively
• People who exhibit assertive behavior
skills are able to
– handle conflicts with greater ease and
assurance
– maintain good interpersonal relations
Copyright © Houghton Mifflin
13 - 23
Aggressive or Assertive
• Distinction between being aggressive
and being assertive
• Aggressive behavior violates the rights
of others
• Aggressive people may interrupt, talk
fast, ignore others, and use other forms
of verbal abuse to maintain control
Copyright © Houghton Mifflin
13 - 24
Nonassertive Behavior
• People who avoid conflict by ignoring
things are exhibiting nonassertive
behavior
• Passive approach to conflict
• Less likely to make their needs known
Copyright © Houghton Mifflin
13 - 25
Nonassertive Behavior
• Nonassertive people are more likely to
be taken advantage of by colleagues
• Management may question their ability
to lead
Copyright © Houghton Mifflin
13 - 26
Copyright © Houghton Mifflin
13 - 27
How to Become More Assertive
You can learn to express wants, dislikes
and feelings
• in a clear and direct manner
• without threatening or attacking others
Copyright © Houghton Mifflin
13 - 28
Develop Assertiveness Skills
1. In the beginning, take small steps
2. Use communication skills that
enhance assertiveness
3. Be soft on people and hard on
problems
Copyright © Houghton Mifflin
13 - 29
Learn to Negotiate Effectively
• Think win/win
• Beware of defensive behaviors
• Know that negotiating styles vary
Copyright © Houghton Mifflin
13 - 30
Think Win/Win
• Three basic approaches to
negotiations:
– Win/Lose
– Lose/Lose
– Win/Win
Copyright © Houghton Mifflin
13 - 31
The Win/Lose Strategy
• Attempt to achieve your goals at the
expense of others
• Short-term solution only
• Doesn’t address the underlying problem
• Loser feels frustrated which seeds
another conflict
• Use when two factions simply cannot
agree or cannot talk to each other
Copyright © Houghton Mifflin
13 - 32
The Lose/Lose Strategy
• Both parties give up something and
may feel frustrated
• Can be applied when
– There is little time to find a solution
– Negotiations are at a standstill
– To remove a conflict completely
• Union-management disputes often fall
into this trap
Copyright © Houghton Mifflin
13 - 33
The Win/Win Strategy
• Fix the problem, not the blame
• Not a “we versus they” approach
• Work toward a mutually satisfying
solution
• Resolution will be based upon the
merits of the case and not through
political or personal influence
Copyright © Houghton Mifflin
13 - 34
The Win/Win Strategy
• Process should be
– Flexible
– Sensitive
– Patient
– Calm
• Most vital skill is listening
Copyright © Houghton Mifflin
13 - 35
Beware of Defensive Behaviors
• When one person becomes defensive,
others may mirror the behavior
• We often become defensive when we
feel our needs are being ignored
• Progress is stopped because people
stop
– Listening
– Thinking
Copyright © Houghton Mifflin
13 - 36
Beware of Defensive Behaviors
• Address needs of all parties involved
• Prevent defensive behavior by
consciously maintaining a positive
image of the other people involved
Copyright © Houghton Mifflin
13 - 37
Total Person Insight
Any method of negotiation may be fairly
judged by three criteria: It should
produce a wise agreement if agreement
is possible. It should be efficient. And it
should improve or at least not damage
the relationship between the parties.
Roger Fisher and William Ury
Authors, Getting to Yes
Copyright © Houghton Mifflin
13 - 38
Know that Negotiating Styles Vary
• Style develops based on
– Personality
– Assertiveness skills
– Past experiences dealing with conflict
Copyright © Houghton Mifflin
13 - 39
Know that Negotiating Styles Vary
• Five different behavioral styles
• Based on two factors
– Assertiveness
– Cooperation
• Different styles are appropriate in
different situations
Copyright © Houghton Mifflin
13 - 40
Negotiating Styles Vary
• Avoidance style
– Uncooperative/Nonassertive
• Accommodating style
– Cooperative/Nonassertive
• Win/lose style
– Uncooperative/Assertive
Copyright © Houghton Mifflin
13 - 41
Negotiating Styles Vary
• Compromising style
– Moderately assertive/Moderately
cooperative
• Problem-solving style
– Assertive/Cooperative
Copyright © Houghton Mifflin
13 - 42
Figure 13.2
Behavioral Styles
For Conflict Situations
Source: Adapted from Robert B. Maddux, Team Building: An Exercise in Leadership, Crisp
Publications Inc. Menlo, CA, 1986, p. 53. Reprinted by permission of the publisher.
Copyright © Houghton Mifflin
13 - 43
Conflict Resolution Process
• Progressive organizations want
employees to resolve conflicts
whenever possible
• Every employee needs to possess
conflict resolution skills
• The conflict resolution process consists
of five steps
Copyright © Houghton Mifflin
13 - 44
Follow These Steps
Step 1: Decide whether you have a
misunderstanding or a true
disagreement
• A misunderstanding is the failure to
accurately understand another’s point
• A disagreement is a failure to agree in
spite of accurate understanding
Copyright © Houghton Mifflin
13 - 45
Follow These Steps
Step 2: Define the problem and collect
facts
• Everyone needs to focus on the
problem, not what happened as a result
• Establishing the problem can expose
real cause of conflict
• Separate facts from opinions or
perceptions
Copyright © Houghton Mifflin
13 - 46
Follow These Steps
Step 3: Clarify perceptions
• Interpretation of the facts about a
situation
• Attempt to see the problem as others
see it
Copyright © Houghton Mifflin
13 - 47
Follow These Steps
Step 4: Generate options for mutual gain
• Generate options that will fix the
problem
• People often want to negotiate for a
single solution
• Use brainstorming
– Process that encourages generation of a
wide variety of ideas and possibilities
Copyright © Houghton Mifflin
13 - 48
Follow These Steps
Step 5: Implement options with integrity
• Finalize a solution or agreement that
offers a win/win strategy
• Establish timetables for implementation
Copyright © Houghton Mifflin
13 - 49
Alternative Dispute Resolution
• Some conflicts between workers and
employers cannot be resolved
• Many companies are creating
alternative dispute resolution programs,
or ADRs
Copyright © Houghton Mifflin
13 - 50
Alternative Dispute Resolution
• Can involve
– An open door policy
– Toll-free hot line
– A peer panel review
– A third-party mediator
– An arbitrator
Copyright © Houghton Mifflin
13 - 51
The Role of Labor Unions
• Labor unions were given the right to
organize and represent workers in the
1930s
• Union membership has declined over
the past half century
– International competition
– Deregulation
– Mergers
– Automation
Copyright © Houghton Mifflin
13 - 52
Labor’s Role in the New Economy
• Only 13.5 percent of today’s workers
belonging to labor unions
• Less incentive to form unions due to
– Dual-income families
– Growing use of temporary and contract
workers
– Telecommuters
– Erosion of traditional employment bonds
Copyright © Houghton Mifflin
13 - 53
Labor’s Role in the New Economy
• Unionization of nontraditional workers
– Graduate students
– Physicians
• Unions working closer with
management
– More cooperative relationships
Copyright © Houghton Mifflin
13 - 54
Collective Bargaining
• Disputes escalate when employment
contracts expire and need to be
negotiated
• Procedure that defines the rights and
privileges of both sides involved and
establishes the terms of employment
and length of contract
Copyright © Houghton Mifflin
13 - 55
Collective Bargaining
• If labor and management cannot come
to an agreement, they may submit their
disputes to:
– Mediation
– Voluntary arbitration
– Compulsory arbitration
Copyright © Houghton Mifflin
13 - 56
Collective Bargaining
Mediation: A neutral third party listens to
both sides and suggests solutions.
• It carries no binding authority
• Both parties are free to reject or accept
the mediator’s decision
Copyright © Houghton Mifflin
13 - 57
Collective Bargaining
Voluntary arbitration: Both sides willingly
submit their disagreements to a neutral
party
• The arbitrator's decision must be
accepted by both sides
Copyright © Houghton Mifflin
13 - 58
Collective Bargaining
Compulsory arbitration: An arbitrator who
dictates a solution that is binding on
both sides and can be enforced in a
court of law
• The government appoints when the
labor-management dispute threatens
national health and safety or will
damage an entire industry
Copyright © Houghton Mifflin
13 - 59
Collective Bargaining
• When collective bargaining, mediation,
and arbitration are not enough to settle,
unions may recommend that their
members vote to strike
• Generally lose/lose situation
Copyright © Houghton Mifflin
13 - 60
Contemporary Issues
Facing Labor Unions
• As labor unions strive for survival, they
must address the needs of the current
and future work force
– Women
– Inequities between executives and
employees
– Health care
– Living wage
– Stable employment
Copyright © Houghton Mifflin
13 - 61
Summary
• Conflicts happen every day
• They can arise from
– Poor communication
– Values and culture clashes
– Confusing work policies
– Competition for scarce resources
– Adversarial management
Copyright © Houghton Mifflin
13 - 62
Summary
• Conflict can also come from employees
who
– refuse to carry their share of work
– have difficult personalities
• Conflicts can have negative or positive
effects on an organization
Copyright © Houghton Mifflin
13 - 63
Summary
• Positive effect sometimes forces
creative and innovative solutions
• Assertiveness skills are necessary in
conflicts
Copyright © Houghton Mifflin
13 - 64
Summary
• There are several approaches for
dealing with conflict:
– win/lose
– lose/lose
– win/win
• Listening is important in a win/win
strategy
Copyright © Houghton Mifflin
13 - 65
Summary
• Organizations often use a five-step
process
• Alternative Dispute Resolution (ADR)
can be used to resolve conflicts and
avoid legal action
Copyright © Houghton Mifflin
13 - 66
Summary
• Labor unions were established to help
balance the power between labor and
management
• Today, labor leaders and business
owners are finding new ways to
cooperate with each other
Copyright © Houghton Mifflin
13 - 67
Summary
• Flexibility and innovation are far more
productive than old adversarial styles
• Labor unions today face a number of
contemporary issues, including the
changing needs of employees

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Resolving Conflict by HMC

  • 1. Chapter Thirteen Resolving Conflict and Dealing with Difficult People
  • 2. Copyright © Houghton Mifflin 13 - 2 Chapter Preview: Resolving Conflict and Dealing with Difficult People • Major causes of conflict in the work setting • Assertiveness skills in conflict situations • Strategies for handling difficult people • Effective negotiation skills • The conflict resolution process • Contemporary challenges facing labor unions
  • 3. Copyright © Houghton Mifflin 13 - 3 Views of Conflict • Traditional view – A clash between incompatible people, ideas, or interests – A negative experience
  • 4. Copyright © Houghton Mifflin 13 - 4 Views of Conflict • New view: An opportunity – Personal growth – To use positive, constructive conflict resolution skills – Discover creative solutions
  • 5. Copyright © Houghton Mifflin 13 - 5 A New View of Conflict • Discovering creative resolutions to a conflict may serve to – Clarify a relationship – Provide new ways of thinking about the source of the conflict – Open up possibilities for improving a relationship – Open people to new points of view
  • 6. Copyright © Houghton Mifflin 13 - 6 Total Person Insight Companies pay a high price for conflict. Productivity drops, work relationships suffer and energy is wasted, as workers become increasingly angry, stressed and defensive. Cheryl Shavers Senior Manager, Intel Corporation
  • 7. Copyright © Houghton Mifflin 13 - 7 The Cost of Conflict • A lot of time and money is invested in conflict resolution • About 20% of managerial time • Cost of unresolved conflict can also be high
  • 8. Copyright © Houghton Mifflin 13 - 8 Finding the Root of Conflict • Conflict is caused by a range of factors • Some are major and may be addressed through – the legal system – labor negotiations • Others are minor, but may affect productivity
  • 9. Copyright © Houghton Mifflin 13 - 9 Finding the Root of Conflict • It is necessary to find the root cause of conflict in order to deal with it • Unless the root cause is identified, it is likely to recur
  • 10. Copyright © Houghton Mifflin 13 - 10 Finding the Root of Conflict If root cause… • stimulates constructive conflict, it can be allowed to continue • stimulates destructive conflict, steps need to be taken to correct the problem
  • 11. Copyright © Houghton Mifflin 13 - 11 Common Roots of Conflict • Ineffective communication • Values clashes • Culture clashes • Work policies and practices • Adversarial management • Noncompliance • Competition for scarce resources • Personality clashes
  • 12. Copyright © Houghton Mifflin 13 - 12 Ineffective Communication • Ineffective communication is a major source of personal conflict • When different people work closely together, communication breakdowns are inevitable • First determine if the conflict is a misunderstanding or a true disagreement
  • 13. Copyright © Houghton Mifflin 13 - 13 Ineffective Communication • For misunderstanding – explain your position or provide more details • For true disagreements – persuading one or both parties to change positions may be necessary – root problem will persist until someone changes
  • 14. Copyright © Houghton Mifflin 13 - 14 Value Clashes • Conflict may be due to value differences between – generations – women and men – people with different value priorities – “loyalist” versus “job-hoppers”
  • 15. Copyright © Houghton Mifflin 13 - 15 Culture Clashes • Occurs between people – from other countries – between people from different parts of the U.S. • Work force reflects cultural diversity • Different cultural traditions can easily come into conflict in the workplace • Issues range from simple to complex
  • 16. Copyright © Houghton Mifflin 13 - 16 Work Policies and Practices • Conflict may happen when organizations maintain confusing or arbitrary – Rules – Regulations – Performance standards • Often surface when managers don’t understand that employees view policies as unfair
  • 17. Copyright © Houghton Mifflin 13 - 17 Adversarial Management • Conflict can occur when managers view employees and other managers with distrust and suspicion • View others as “the enemy” • Leads to a lack of respect by employees • Makes teamwork and cooperation difficult
  • 18. Copyright © Houghton Mifflin 13 - 18 Noncompliance • Workers refusing to comply with rules • Or accept fair share of workload • Makes other co-workers angry
  • 19. Copyright © Houghton Mifflin 13 - 19 Competition for Scarce Resources • Downsizing and cost cutting can lead to destructive competition for scarce resources • When decisions are not clearly explained, workers suspect coworkers of devious tactics
  • 20. Copyright © Houghton Mifflin 13 - 20 Personality Clashes • People have differing – Communication styles – Temperaments – Attitudes • People may not be able to identify cause of dislike
  • 21. Copyright © Houghton Mifflin 13 - 21 Resolving Conflict Assertively • Being assertive can be helpful in a conflict • Appropriate assertive behavior does not violate the rights of others • It is a matter of getting others to understand your viewpoint
  • 22. Copyright © Houghton Mifflin 13 - 22 Resolving Conflict Assertively • People who exhibit assertive behavior skills are able to – handle conflicts with greater ease and assurance – maintain good interpersonal relations
  • 23. Copyright © Houghton Mifflin 13 - 23 Aggressive or Assertive • Distinction between being aggressive and being assertive • Aggressive behavior violates the rights of others • Aggressive people may interrupt, talk fast, ignore others, and use other forms of verbal abuse to maintain control
  • 24. Copyright © Houghton Mifflin 13 - 24 Nonassertive Behavior • People who avoid conflict by ignoring things are exhibiting nonassertive behavior • Passive approach to conflict • Less likely to make their needs known
  • 25. Copyright © Houghton Mifflin 13 - 25 Nonassertive Behavior • Nonassertive people are more likely to be taken advantage of by colleagues • Management may question their ability to lead
  • 26. Copyright © Houghton Mifflin 13 - 26
  • 27. Copyright © Houghton Mifflin 13 - 27 How to Become More Assertive You can learn to express wants, dislikes and feelings • in a clear and direct manner • without threatening or attacking others
  • 28. Copyright © Houghton Mifflin 13 - 28 Develop Assertiveness Skills 1. In the beginning, take small steps 2. Use communication skills that enhance assertiveness 3. Be soft on people and hard on problems
  • 29. Copyright © Houghton Mifflin 13 - 29 Learn to Negotiate Effectively • Think win/win • Beware of defensive behaviors • Know that negotiating styles vary
  • 30. Copyright © Houghton Mifflin 13 - 30 Think Win/Win • Three basic approaches to negotiations: – Win/Lose – Lose/Lose – Win/Win
  • 31. Copyright © Houghton Mifflin 13 - 31 The Win/Lose Strategy • Attempt to achieve your goals at the expense of others • Short-term solution only • Doesn’t address the underlying problem • Loser feels frustrated which seeds another conflict • Use when two factions simply cannot agree or cannot talk to each other
  • 32. Copyright © Houghton Mifflin 13 - 32 The Lose/Lose Strategy • Both parties give up something and may feel frustrated • Can be applied when – There is little time to find a solution – Negotiations are at a standstill – To remove a conflict completely • Union-management disputes often fall into this trap
  • 33. Copyright © Houghton Mifflin 13 - 33 The Win/Win Strategy • Fix the problem, not the blame • Not a “we versus they” approach • Work toward a mutually satisfying solution • Resolution will be based upon the merits of the case and not through political or personal influence
  • 34. Copyright © Houghton Mifflin 13 - 34 The Win/Win Strategy • Process should be – Flexible – Sensitive – Patient – Calm • Most vital skill is listening
  • 35. Copyright © Houghton Mifflin 13 - 35 Beware of Defensive Behaviors • When one person becomes defensive, others may mirror the behavior • We often become defensive when we feel our needs are being ignored • Progress is stopped because people stop – Listening – Thinking
  • 36. Copyright © Houghton Mifflin 13 - 36 Beware of Defensive Behaviors • Address needs of all parties involved • Prevent defensive behavior by consciously maintaining a positive image of the other people involved
  • 37. Copyright © Houghton Mifflin 13 - 37 Total Person Insight Any method of negotiation may be fairly judged by three criteria: It should produce a wise agreement if agreement is possible. It should be efficient. And it should improve or at least not damage the relationship between the parties. Roger Fisher and William Ury Authors, Getting to Yes
  • 38. Copyright © Houghton Mifflin 13 - 38 Know that Negotiating Styles Vary • Style develops based on – Personality – Assertiveness skills – Past experiences dealing with conflict
  • 39. Copyright © Houghton Mifflin 13 - 39 Know that Negotiating Styles Vary • Five different behavioral styles • Based on two factors – Assertiveness – Cooperation • Different styles are appropriate in different situations
  • 40. Copyright © Houghton Mifflin 13 - 40 Negotiating Styles Vary • Avoidance style – Uncooperative/Nonassertive • Accommodating style – Cooperative/Nonassertive • Win/lose style – Uncooperative/Assertive
  • 41. Copyright © Houghton Mifflin 13 - 41 Negotiating Styles Vary • Compromising style – Moderately assertive/Moderately cooperative • Problem-solving style – Assertive/Cooperative
  • 42. Copyright © Houghton Mifflin 13 - 42 Figure 13.2 Behavioral Styles For Conflict Situations Source: Adapted from Robert B. Maddux, Team Building: An Exercise in Leadership, Crisp Publications Inc. Menlo, CA, 1986, p. 53. Reprinted by permission of the publisher.
  • 43. Copyright © Houghton Mifflin 13 - 43 Conflict Resolution Process • Progressive organizations want employees to resolve conflicts whenever possible • Every employee needs to possess conflict resolution skills • The conflict resolution process consists of five steps
  • 44. Copyright © Houghton Mifflin 13 - 44 Follow These Steps Step 1: Decide whether you have a misunderstanding or a true disagreement • A misunderstanding is the failure to accurately understand another’s point • A disagreement is a failure to agree in spite of accurate understanding
  • 45. Copyright © Houghton Mifflin 13 - 45 Follow These Steps Step 2: Define the problem and collect facts • Everyone needs to focus on the problem, not what happened as a result • Establishing the problem can expose real cause of conflict • Separate facts from opinions or perceptions
  • 46. Copyright © Houghton Mifflin 13 - 46 Follow These Steps Step 3: Clarify perceptions • Interpretation of the facts about a situation • Attempt to see the problem as others see it
  • 47. Copyright © Houghton Mifflin 13 - 47 Follow These Steps Step 4: Generate options for mutual gain • Generate options that will fix the problem • People often want to negotiate for a single solution • Use brainstorming – Process that encourages generation of a wide variety of ideas and possibilities
  • 48. Copyright © Houghton Mifflin 13 - 48 Follow These Steps Step 5: Implement options with integrity • Finalize a solution or agreement that offers a win/win strategy • Establish timetables for implementation
  • 49. Copyright © Houghton Mifflin 13 - 49 Alternative Dispute Resolution • Some conflicts between workers and employers cannot be resolved • Many companies are creating alternative dispute resolution programs, or ADRs
  • 50. Copyright © Houghton Mifflin 13 - 50 Alternative Dispute Resolution • Can involve – An open door policy – Toll-free hot line – A peer panel review – A third-party mediator – An arbitrator
  • 51. Copyright © Houghton Mifflin 13 - 51 The Role of Labor Unions • Labor unions were given the right to organize and represent workers in the 1930s • Union membership has declined over the past half century – International competition – Deregulation – Mergers – Automation
  • 52. Copyright © Houghton Mifflin 13 - 52 Labor’s Role in the New Economy • Only 13.5 percent of today’s workers belonging to labor unions • Less incentive to form unions due to – Dual-income families – Growing use of temporary and contract workers – Telecommuters – Erosion of traditional employment bonds
  • 53. Copyright © Houghton Mifflin 13 - 53 Labor’s Role in the New Economy • Unionization of nontraditional workers – Graduate students – Physicians • Unions working closer with management – More cooperative relationships
  • 54. Copyright © Houghton Mifflin 13 - 54 Collective Bargaining • Disputes escalate when employment contracts expire and need to be negotiated • Procedure that defines the rights and privileges of both sides involved and establishes the terms of employment and length of contract
  • 55. Copyright © Houghton Mifflin 13 - 55 Collective Bargaining • If labor and management cannot come to an agreement, they may submit their disputes to: – Mediation – Voluntary arbitration – Compulsory arbitration
  • 56. Copyright © Houghton Mifflin 13 - 56 Collective Bargaining Mediation: A neutral third party listens to both sides and suggests solutions. • It carries no binding authority • Both parties are free to reject or accept the mediator’s decision
  • 57. Copyright © Houghton Mifflin 13 - 57 Collective Bargaining Voluntary arbitration: Both sides willingly submit their disagreements to a neutral party • The arbitrator's decision must be accepted by both sides
  • 58. Copyright © Houghton Mifflin 13 - 58 Collective Bargaining Compulsory arbitration: An arbitrator who dictates a solution that is binding on both sides and can be enforced in a court of law • The government appoints when the labor-management dispute threatens national health and safety or will damage an entire industry
  • 59. Copyright © Houghton Mifflin 13 - 59 Collective Bargaining • When collective bargaining, mediation, and arbitration are not enough to settle, unions may recommend that their members vote to strike • Generally lose/lose situation
  • 60. Copyright © Houghton Mifflin 13 - 60 Contemporary Issues Facing Labor Unions • As labor unions strive for survival, they must address the needs of the current and future work force – Women – Inequities between executives and employees – Health care – Living wage – Stable employment
  • 61. Copyright © Houghton Mifflin 13 - 61 Summary • Conflicts happen every day • They can arise from – Poor communication – Values and culture clashes – Confusing work policies – Competition for scarce resources – Adversarial management
  • 62. Copyright © Houghton Mifflin 13 - 62 Summary • Conflict can also come from employees who – refuse to carry their share of work – have difficult personalities • Conflicts can have negative or positive effects on an organization
  • 63. Copyright © Houghton Mifflin 13 - 63 Summary • Positive effect sometimes forces creative and innovative solutions • Assertiveness skills are necessary in conflicts
  • 64. Copyright © Houghton Mifflin 13 - 64 Summary • There are several approaches for dealing with conflict: – win/lose – lose/lose – win/win • Listening is important in a win/win strategy
  • 65. Copyright © Houghton Mifflin 13 - 65 Summary • Organizations often use a five-step process • Alternative Dispute Resolution (ADR) can be used to resolve conflicts and avoid legal action
  • 66. Copyright © Houghton Mifflin 13 - 66 Summary • Labor unions were established to help balance the power between labor and management • Today, labor leaders and business owners are finding new ways to cooperate with each other
  • 67. Copyright © Houghton Mifflin 13 - 67 Summary • Flexibility and innovation are far more productive than old adversarial styles • Labor unions today face a number of contemporary issues, including the changing needs of employees