Executive Summary: Conflict Management

Executive Summary: Conflict Management Conflict Management: An Overview The CEO and Executive Teamwork Organisational Conflict Resolution Strategies Employees and Conflict Mediation of Conflict Conflict Management: An Overview Conflict is inevitable, say TEC conflict management experts Tom Harvey and Jerry Jellison, but that doesn't mean it's necessarily a bad thing. "Conflict should occur in organisations," Harvey says. "The presence of conflict is actually a sign of an effective business. Whenever there's a free flow of ideas, creativity and activity, people are going to butt heads. If no conflict exists, something is wrong." Some common myths about conflict: 1. Just ignore it, and it will go away. Not so, according to the TEC experts. Says Jellison: "Occasionally, minor issues dissipate of their own accord. But larger tensions demand attention and constructive action." 2. Winners and losers. Too often, people involved in conflict regard them as "battles" in which one side must win and one side must lose. Workplace conflict doesn't follow this axiom, Harvey says. "In most cases, organisational conflict can lead to a variety of outcomes, where each side takes something away. Compromise is essential. But it's only possible with a solid foundation of good will and mutual respect." 3. Every conflict is resolvable. Maybe in an ideal universe, people can find a happy solution to every problem. The hard truth is, there are times when individuals (or factions or departments) are simply unable to arrive at an agreement. The next step is determining a way to live with disagreement. According to the TEC experts, the costs of conflict can be measured in: Employee dissatisfaction -- Time wasted grumbling about problems and/or conspiring with others to enlist their support in a dispute. Diminished productivity -- See above. Poor customer service -- Disgruntled employees do not present a "happy face" when dealing with customers. Employee turnover -- Those individuals who can't or won't get their problems resolved leave. Increased absenteeism -- Some employees prefer skipping a few days of work rather than struggle with ongoing interpersonal conflicts. 1

A rise in stress-related health claims -- Unresolved conflict makes people sick. Worst of all, a lack of conflict management can lead to employee lawsuits. The company itself becomes a target for litigation based on employee claims of manager harassment, wrongful termination or simply being forced to work in a "hostile environment." Burdensome legal fees, as well as time lost by managers and supervisors forced to testify in court, are the kinds of costs business owners want to avoid if at all possible. Because the long-term effects of unresolved conflict are so great, says Harvey, it's vitally important to institute effective management techniques and guidelines -- to offset and minimise the damage that can occur. The CEO and Executive Teamwork Conflict among senior level executives may differ in substance from employees on the front line or elsewhere. This discord can be subtler, but just as devastating. "The CEO's role is to acknowledge that he or she is the one who sets the tone for cooperation, rather than conflict," Jellison says. "When the CEO sees conflict coming, especially at the executive level, it's time to clearly state that hostility and other negative manifestations of conflict aren't acceptable." Tell stories of positive teamwork, he advises business leaders. Describe situations where conflict has been addressed and neutralised or, better yet, where team members working together generated creative and cost-efficient solutions to company issues. What are your company's most pressing issues? Says Harvey: "That's where you want your executive team focused and working in a collaborative way. Make sure that team members genuinely understand and respond to your strategic vision -- positively or negatively, as long as they're focused where you want them to be." Both TEC experts suggest that, with poorly performing executive teams, it may sometimes be necessary to enlist outside consultants. "Experienced facilitation can be very useful," Jellison says. "The best approach is having a consultant or executive coach observe the team at work, but never direct the team's activities. They can help the team address conflict -- or, more specifically, how to manage conflict in a productive way -- then step out of the way and let them do the job the CEO expects of them." Organisational Conflict According to Harvey, a variety of factors breed organisational friction, including: Absence of compelling vision from the top Excessive importance placed on cost-cutting or maximising profits at the expense of staff Bad hiring decisions Lack of communication 2

Lack of accountability Left unchecked, interpersonal and/or interdepartmental disputes can last for months or years. Dispirited employees abandon ship. Those who stay concentrate on protecting themselves from the fallout of conflict; little time or energy is devoted to the company's mission or goals. Healthy organisations, on the other hand, pay attention to these factors and correct them as soon as possible, Jellison says. "The best strategy is to address conflict as soon as it appears," he says. "Pretending it will go away is not a viable solution." Other helpful conflict management tips: Keep it in the open. Don't resort to secrecy; it only breeds further discontent and alienation. Be flexible. "All organisations have rules and policies in place to govern employee behaviour," Harvey says. "But don't expect these rules to influence every situation that comes up. In a culture of cooperation and compromise, solutions will more likely present themselves." Encourage responsibility. At every level of the organisation, promote the importance of raising concerns and addressing them as early as possible. Otherwise, employees fearing corporate retaliation will only "go underground" with their issues, where they fester and grow out of all proportion. Communication is both the source and solution of many conflicts. When dialogue is subverted -- either by a lack of information from senior-level management or by distorted information which leaves many questions unanswered -- conflict breeds in an atmosphere of tension, misunderstanding and fear. The TEC experts offer these communication guidelines: Establish ground rules. "People need to be able to express themselves in an atmosphere of respect and consideration," Jellison says. Managers should promote "attack-free" zones for dialogue. Know yourself. As CEO, you must be conscious of how your own values and beliefs influence your approach to conflict management. The same goes for your executive and managerial teams. Fairness counts. Many disputes arise out of a sense that one party or the other has been wronged, or that the rules "don't apply equally," says Harvey. "Make sure that all employees are subject to the same guidelines. Encourage one-to-one discussions where people can pinpoint their own underlying emotions or interests." Focus on the issue. Depersonalise, the TEC experts say. Separate the person from the problem. This means no name-calling ("You're selfish," "You're controlling"), and no labelling ("That's what a typical salesperson would say," etc.). "You don't have to be disagreeable to disagree," Jellison says. 3

Resolution Strategies Aside from avoidance (the most common approach to dealing with conflict), more effective resolution strategies include: Accommodation. This approach values giving in as a way of preserving office harmony. For minor issues or conflicts where one of the people involved knows they are clearly in the wrong, this might work. In general, however, accommodation equals appeasement - surrendering values and principles for the dubious goal of temporary harmony. Compromise. For this strategy to work, disputing parties must be willing to cooperate and trade concessions. The use of mediation often complements this approach. Competition. With this strategy, one side must win and the other side must lose. For obvious reasons, it has limited effectiveness, since it always leaves one person (the "loser") with pentup anger that will likely lead to further conflict. Collaboration. Each side makes a commitment to finding a mutually acceptable resolution. Understanding that conflict is a natural part of life, this approach recognises that new opportunities arise when disputing parties work together towards a common goal. Both TEC experts emphasise one point: Separate the person from the problem. "When conflict arises, we automatically tend to see ourselves in adversarial roles," Jellison says. "Resolution occurs when we cast ourselves instead as joint problem-solvers. Depersonalise the issue. Sit on the same side of the table -- rather than on symbolically opposing sides -- and write the problem down on a board opposite you. This helps to focus on the problem, not on each other." Other consensus-building tips: Get to specifics. There's little or no value in saying, "This proposal stinks!" Instead, ask: What is wrong with it, specifically? "We tend to argue about things at the 30,000-foot level," Jellison contends. "To be truly effective, we have to identify specific actions we want to take. When we get to specifics, solutions often become more visible." Pick the best place. Sometimes conflicts occur during a department staff meeting. The manager's first temptation may be to squelch it immediately; but this can be both embarrassing and an implicit condemnation of the people involved. "Offer to discuss the problem privately," Jellison advises. "To arrive at a solution, we have to look at the problem rationally and come up with alternatives. That's not usually possible in the heat of the moment. People need to calm down and regroup in a safe setting. Defuse the conflict, but never berate individuals in public." 4

Employees and Conflict The TEC experts separate conflict into two primary areas: 1. Substantive. These disputes revolve around ideas, decisions and actions. In best-case scenarios, the manager guides the participants toward a self-generated resolution -- one that may actually be an improvement on either party's original stance. 2. Personal. The factors that drive this type of conflict -- emotions and perceptions -- make resolution especially difficult. The perceptions of an angry, frustrated individual are coloured by suspicion of their opposite number's character or motives. Unfortunately, some organisations approach disagreements among staff by discouraging open expression of differences. Both TEC experts say this tactic rarely works in the short-run, and never as a long-term strategy. Some tips toward converting negative conflict to positive outcomes: Guide the discussion. Sometimes it's a matter of "spin." The manager can bring conflicting parties together in an atmosphere that focuses on possible solutions to the existing problem (rather than the negative conditions leading to the dispute) and ideas about how to put these solutions to work. Don't take sides. When entering the arena of conflict, the manager must be seen to trying to understand both positions. "Listen to each side and respect the validity of the opinions stated," Jellison says. "Withhold judgement until all the available information has been given." A good manager does more than help to resolve conflicts. By listening carefully, taking the time to understand each perspective and focusing on specific, practical solutions (leaving emotions out), the manager sets an example for how to handle future conflicts. "Employees learn from good managers that there is a way to convert conflict into creative answers to difficult problems," Harvey says. Mediation of Conflicts In cases of workplace conflict that defy easy solution, the process of mediation offers a viable alternative to messy legal disputes. According to the TEC conflict management experts, mediation can help avoid costs both in money and time, and should be actively considered in some situations. Of course, success in mediation depends on each party's willingness to deal directly with each other. Among the circumstances where it may prove most helpful are: Employee disputes. Mediation provides a controlled setting where quarrelling employees can air their differences and, with the mediator's help, communicate more effectively with each other. Declining performance. If a problem arises between a manager and an employee, mediation offers a "safe space" where the employee feels comfortable expressing his or her concerns, as well as what's needed to improve the situation from their perspective. The same goes for the manager who can use the setting to clarify circumstances the individual may be unaware 5

of. Whatever the situation, when manager and employee craft a solution together, they're more likely to adhere to it in the future. Sexual harassment complaints. This is an area where mediation can offset costly and unpleasant litigation. Sometimes sexual harassment occurs as a result of differing perceptions about humorous anecdotes and/or one person's inability to respect another. If the people involved are willing to talk things over, the complaint can be mediated in a way that ends the problem and leaves everyone satisfied. "The mediator's job is to guide people toward a productive exchange of ideas, experiences and information, helping them reach an understanding that satisfies everyone's interests," Harvey says. "He or she enforces agreed-upon ground rules and makes sure each side's case is clearly articulated and understood." The mediator, however, does not have authority to render a decision alone. "Some pro-active businesses establish official workplace mediation programs," Jellison observes. "They select one or more employees and train them to serve as in-house mediators. These individuals have a reputation in the company for being fair, discreet and open-minded. It also helps if they come equipped with good communication skills." "Educate employees about the benefits of mediation," Harvey advises. "Bring in professional mediators who can demonstrate the value of this approach through hypothetical disputes, roleplaying and other exercises. Show employees -- who may be struggling with ongoing disputes they feel hopeless about -- that the organisation cares about them and is determined to improve their quality of life in the workplace." 6