PRDV230: Create a Workplace Conflict Resolution Policy

Topic outline

• Course Introduction

  {GENERICO:type="QuickInfo-2",time="13"}In this course, we discuss the benefits of functional conflict in fostering creative thinking, problem-solving techniques, and innovation, and identify appropriate workplace strategies for discouraging dysfunctional conflict, which is often based on misunderstanding, clashing personalities, negative stereotypes, and bias. We explore different conflict resolution methods, including the formal methods of negotiation, mediation, arbitration, and litigation, as well as other informal remedies. Next, we examine organizational structure and employee interdependence and offer practical guidance on how leaders can leverage the attributes of different employees to work together toward a common goal.

  Finally, we present some best practice models for resolving conflict and the elements needed to create a thoughtful, inclusive conflict resolution policy. We aim to help leaders avoid negative ramifications that result from hostile work environments, discrimination, and harassment.

• Course Syllabus

  First, read the course syllabus. Then, enroll in the course by clicking "Enroll me". Click Unit 1 to read its introduction and learning outcomes. You will then see the learning materials and instructions on how to use them.
  

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• Unit 1: Functional versus Dysfunctional Conflict

  Think about the last time you argued with someone. Perhaps it was a personal, domestic, or work-related dispute. As we navigate each day responding to others' needs, conflict can occur as we negotiate and address our individual needs and concerns. Functional conflict can serve as a positive force for change in the workplace, by fostering new, innovative and more efficient ways to accomplish tasks or goals. However, misunderstandings and personal clashes can also create dysfunctional conflict and a caustic work environment.

  Completing this unit should take you approximately 6 hours.

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• 1.1: Functional Conflict and its Role in Innovation

  While we tend to try to eliminate conflict in the workplace, it is important to recognize that some level of disagreement can benefit an organization or company: conflicting ideas often prompt coworkers to generate new solutions and use their collective, creative problem-solving skills to create innovative solutions. For example, scientists did not invent the light bulb by making continuous improvements to the candle. Benjamin Franklin was the pioneer who developed electricity and a team of scientists and inventors, including Thomas Edison, built on his innovation to solve a problem.

  Promoting functional conflict in the workplace is not easy. It requires a delicate balance of encouraging people to challenge their ideas, choices, and preferences without negativity. Some best practices for fostering functional conflict include:

  • Encouraging interpersonal relationships that promote understanding, so employees respect one another and welcome their ideas.
  • Prompting employees to think critically about their jobs, what they could do better, and asking questions to find a better way to do X, Y or Z.
  • Creating an environment in which failure, and learning from mistakes, are embraced so employees can build new creative and workable solutions.

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• 1.2: Reasons for Dysfunctional Workplace Conflict

  Workplace conflict can come in many forms. It may be interpersonal or group conflict.
  

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• 1.3: Misunderstandings or Disagreements from Organizational Structure

  The structure a company uses to organize its leadership, areas of authority and responsibility, and decision-making processes can cause conflict and misunderstandings among employees within its organization.

  For example, a lack of transparency about the formal processes employees follow or the hierarchy among individuals and departments can cause employees to have conflicting expectations about their goals, standards, or decision-making authority. The misunderstandings that arise when leaders fail to communicate clearly and with transparency can cause internal confusion and turmoil.
  

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• 1.4: Resource Scarcity

  Resource scarcity is a concept we borrow from economics that explains how people compete for things they value and therefore come into conflict. In these cases, there are only so many resources to go around – whether we are talking about money, time, physical effort, or commitment.

  For example, three workplace resources that employees or organizational units tend to covet, but are usually in short supply, include:

  1. The level of commitment (in terms of money, time, or human resources) that leadership pays, or devotes, to certain work projects;
  2. The amount of money available to pay salaries, hire new employees, and give bonuses to high-performers; and
  3. The number of high-level, well-paid, management level positions within the organization.

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• 1.5: Misunderstandings or Disagreement from Task Interdependence

  Because everyone has different areas of expertise, strengths, and abilities, we should differentiate our skills and collaborate with coworkers to accomplish complex work assignments to meet a project's goals. Economists describe this concept as task interdependence.

  When we rely on our coworkers to complete their part of the assignment, participants often have different ideas about their strengths, roles, responsibilities, and deadlines. Consequently, project managers should clearly define the roles and work assignments each employee will complete, and share this information with the group, so conflicts and misunderstandings do not arise.

  Throughout the project completion process, participants should communicate clearly to articulate challenges and frustrations. Team members can then revise their tasks and responsibilities accordingly, complete projects in a reasonable timeframe, and meet the client's expectations. An imbalance of expectations often leads to conflict.

  We say teams work well together when each member shares an understanding of their individual and collective role within the work process. Team members depend on each other to contribute to the process and collaborate well.
  

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• 1.6: Conflicting Personality Types

  Sociologists and employers have created descriptors to categorize and classify how people communicate, behave, and interact with each other. For example, we describe people who are gregarious and enjoy meeting others in a social atmosphere as extroverts. We classify those who are less social, more solitary, and prefer the company of those they already know, as introverts.

  Many employers use these categorizations of personality types during the hiring process. They assign individuals with certain strengths and abilities to work assignments and balance the personality types within their teams.

  For example, more extroverted individuals tend to excel in sales positions since they must interact regularly with new clients and discuss products or present ideas to small and large groups. Introverted individuals tend to prefer to work in the background in more structured work processes. They tend to enjoy using their problem-solving abilities and interacting with individuals to get the job done.

  Keep in mind that these personality tools are fraught with generalizations about how individuals respond to each situation. Everyone is different and has their own interests. Nevertheless, employers should be mindful of individuals' comfort level for working in certain environments, especially those who must respond to disagreement and conflict.

  For example, some people find a workplace that involves uncertainty, the need to make quick decisions, and the opportunity to exchange ideas with others (even if they disagree) exciting and challenging. Others are uncomfortable with disagreement and conflict. They are reluctant to share their ideas if they think others may disagree (even if they are amenable), and prefer to express their ideas in a less confrontational setting.

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• 1.7: Negative Stereotypes and Cultural Biases

  Most of us carry subtle, unconscious biases and prejudices that affect how we treat others. We come to situations using the framework of our past experiences – and those experiences may reflect an element of bias within each of us.

  A stereotype is the assumption that every member of a group shares characteristics which some members exhibit. We frequently rely on stereotypes to make judgments about others, both good and bad. Unfortunately, negative stereotypes about individuals or groups are often incorrect and damaging, and can lead to conflict in personal and workplace settings.

  Here's an example of a commonly-held stereotype: boys can throw better than girls. However, anyone who has young boys knows that most cannot throw a baseball either! But many boys get a lot of practice throwing, while girls often never receive this training. While an individual may be a lousy baseball thrower, it is wrong and foolish to assume they lack this skill due to their gender. We see evidence of these inaccurate averages with our own eyes as more girls get involved and excel in the sports men once dominated.

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• 1.8: Gender-Based Stereotypes

  Gender-based stereotypes exist when someone assumes another person has a set of values, abilities, or skills due to their gender. In this section, we discuss gender diversity in the workplace. There is a persistent wage gap between men and women, even though they share equal responsibilities and exhibit equal work performance levels.
  

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• 1.9: Age-Based Stereotypes

  Many of us believe stereotypes based on a person's age. For example, older employees are deemed less capable of learning new technologies. Meanwhile, younger employees are criticized for being entitled and less committed to completing workplace tasks.
  

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• 1.10: Culture-based Biases and Stereotypes

  We often base our decisions on preconceptions regarding ethnic, racial, cultural, or religious backgrounds. We can be quick to take offense when others cross our cultural norms – we paint the unwitting perpetrator as rude, disrespectful, or worse. For example, in some Asian cultures, it is considered disrespectful to look an elderly person "in the eye" when conversing with them. But many Americans feel that speakers who avert their eyes are hiding something or lack self-confidence.
  

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• 1.11: Avoiding Biases and Stereotypes

  In our increasingly diverse global economy, creating a more inclusive workplace that welcomes employees who have different ideas and cultural traditions can generate an economic and competitive advantage. New and diverse perspectives, ideas, and strategies can foster creative decision-making and problem-solving. In this way, companies can understand their diverse clientele more readily, and employees feel more comfortable and welcome working in a friendlier, open environment.
  

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• 1.12: The Effects of Dysfunctional Conflict on Work Products

  Dysfunctional conflict takes a toll on employees, especially when it takes on a personal tone, making employees who are the object of personal bias, harassment, and abuse feel stressed, undervalued, and mistrustful of their coworkers. These conflict situations negatively affect productivity and morale.
  

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• Unit 2: Best Practices for Conflict Resolution

  Despite our best efforts, negative personal and dysfunctional conflict occurs in the workplace for all sorts of reasons, as we explored in Unit 1. Companies should swiftly respond to and resolve these conflicts to prevent them from damaging interpersonal relationships among their employees and clients. They should organize their procedures for resolving conflicts and responding to grievances into a protocol their employees can follow.

  Completing this unit should take you approximately 3 hours.

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• 2.1: Five Styles of Handling Conflict

  Let's begin by exploring a tool Kenneth Thomas and Ralph Kilmann created in 1974, which describes five styles for handling conflict: competing, collaborating, compromising, avoiding, and accommodating. They based each style on an individual's appetite for assertiveness and cooperation. Understanding what you hope to gain when you face a workplace conflict or disagreement and what those around you wish to achieve will help you negotiate a beneficial solution. Here are the five elements of the Thomas-Kilmann Conflict Mode Instrument.

  1. Competing: People with a competing style play to win. While other employees may perceive them to be aggressive, assertive, bossy, or inconsiderate, competing individuals often do well when a swift decision is in order. When you work with someone who has a competitive conflict style, remember they want to win, so position your ideas in a way that makes them think they are winning.
     
  2. Collaborating: Collaborators aim to create solutions where everyone wins. They take time to think through all options before deciding and are known for their strong relationships with others. However, they are criticized for taking too much time and effort to make a decision. When you work with someone of this style, give them time and space to think through different views and options before forcing them to make a decision.
     
  3. Compromising: In compromises, no one wins outright in a negotiation, but each side achieves something they can tolerate and loses something they would have preferred. Politicians typically compromise by taking the best ideas from as many parties as possible to create an alternate solution. Keep in mind that parties that compromise may later resent having given up something they value. When you work with someone using this style, decide what is important to you in the negotiation upfront.
     
  4. Avoiding: Conflict avoiders find any workaround to avoid conflict. Some may perceive conflict avoiders as uncaring, but they may just hope the conflict disappears. Conflict avoidance can hurt relationships and business decisions because the perpetrators often avoid confronting the issue beyond the decision deadline. When you work with someone who avoids conflict, you may have to bring up the issues and suggest solutions.
     
  5. Accommodating: Accommodation allows the other party to win. This can be a good strategy if you feel you are on the wrong track or want to preserve a relationship. When you work with someone who is accommodating, you may have to ask them a lot of questions to discern what their needs are so you can address them.

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• 2.2: Methods of Conflict Resolution

  Without appropriate intervention, dysfunctional conflict – caused by poor communication, biases, and personality disputes – can damage morale, workplace efficiencies, and general productivity. In this unit, we learn that it is rarely a good idea to rely on a court of law to resolve these issues. Litigation is time-consuming, costly, and takes a mental and emotional toll on everyone involved.

  Resolving conflicts benefit from three established alternative dispute resolution (ADR) methods. Each technique – negotiation, mediation, and arbitration – has advantages and disadvantages, but all are considered preferable to litigation. We learn about each type of ADR and when they are the preferred method individuals and organizations can use to resolve a dispute.
  

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• 2.3 Negotiation

  We often describe the discussions we enter to resolve a conflict or disagreement as a negotiation. The goal of negotiation is to establish an agreement among the two parties that have a stake in the outcome. The resolution should offer stakeholders common or agreed-upon terms and understandings. Negotiations do not need to be contentious or disagreeable.

  For example, we participate in a subtle form of negotiation when we ask a coworker to turn down the volume on their computer, wear less perfume, or consider another perspective when making a decision. We succeed in negotiation when we express our views and the coworker agrees to change their behavior or make an accommodation. Often, the other person was unaware they were causing any discomfort. They agree to change because they value working in a comfortable, inclusive work environment.
  

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• 2.4: Mediation

  Mediation is an alternative dispute resolution process that involves co-opting or hiring a neutral, third-party mediator who is amenable to both parties involved in the dispute. The mediator should help the parties understand each other's perspectives, work toward commonality, create an action plan to resolve the issue, and follow up with the parties to ensure peace is maintained.

  Mediators should remain impartial during the discussions, which means they should allow each party to present their case and arguments fairly and accurately without appearing to favor one side over the other. For example, the mediator should not receive payment or services from one of the parties. They should not have or appear to have a conflict of interest or any connection that may lead one party to believe they are acting unfairly, such as a personal relationship, conviction, religious belief, or a future business opportunity. This makes sense; you would not want to hire someone to mediate a dispute if you believe they are friends with the other party or if you think they will gain financially if the dispute is resolved in a certain way.

  In many disputes, such as legal disagreements, divorces, and other types of negotiated settlements, stakeholders hire an outside professional mediator to resolve their differences amicably. In the workplace, a professional from the human resources department often serves as the third-party mediator for disputes. However, since they are a company employee charged with resolving conflicts in the company's interests, many would argue they are not impartial.

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• 2.5: Arbitration

  Arbitration is a more formal method of alternative dispute resolution. Parties that disagree select a professional arbiter or panel of arbitrators, usually attorneys who specialize in arbitration, to resolve disputes outside the courtroom.

  The arbitration process involves many of the same methods as a courtroom trial, including the presentation of evidence, statements from witnesses, a discussion of any relevant local laws or ordinances, and an examination of any signed legal documents, such as contracts, receipts for damages, and other evidence. The parties usually meet to discuss and present their arguments and evidence before the arbiter. The arbiter will then deliver their judgment, damages due, and a specific course of action within a specified time.

  State law can dictate whether the settlement is binding (compared to non-binding), which means the parties have a legal obligation to follow through on the arbiter's decision or ruling. Companies interested in keeping disputes private typically prefer to undergo arbitration rather than a courtroom trial since the proceedings and settlement results do not become part of the public record, which anyone, including journalists, potential clients, and other interested parties, can access. The arbitration process tends to be less time-consuming and less expensive than a courtroom trial, although it can still be quite expensive for many participants.
  

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• 2.6: Litigation

  Bringing a matter of dispute before a court of law in the form of litigation is a last resort for most organizations and companies. The process is usually expensive and time-consuming for everyone involved. The injured party can receive significant compensation for damages that another party caused them, but jury trials can be unpredictable. Putting potentially unethical or unlawful behavior in the public spotlight can also cause irreparable damage to an organization or the company's public reputation and future business.

  It is generally wise for each party to hire an attorney who is well-versed in the law to represent their interests, whether they are individuals, organizations, or corporate entities. While expensive, attorneys are usually experts at presenting evidence clearly and convincingly to elicit a favorable and legally-binding verdict (decision) from the jury.
  

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• 2.7: Understanding Each Party

  Now that we have discussed some different ways individuals, organizations, and companies resolve conflicts or disagreement, let's explore some things to consider when arriving at a meaningful and lasting agreement or settlement. These apply no matter what method (negotiation, mediation, arbitration, or litigation) is used.

  An essential first step to resolving a dispute or conflict is for each side to understand the other person's perspective and feelings about the situation. They should recognize the other party's needs and interests going forward. People generally want to know that the other person has heard and understood their thoughts and ideas despite their disagreement. This step may seem trivial, but it can be a critical component for generating a level of understanding and respect for each side and discovering an agreeable common goal.

  Review the theories we discussed in Unit 1 about the underlying causes of conflict and the motivations and interests of the individuals involved. Understanding the other party's perspective – to know "where they are coming from" – can establish a sense of trust and convince each side that their differences may not be as significant or relevant as they first thought. By identifying the cause, they can create a clear path forward to benefit each side. The stakeholders may resolve their differences for the good of the organization or company without further action.

  For example, the individuals may realize their disagreement stemmed from a lack of clear organizational structure, different understandings of task interdependence, confusion regarding staff hierarchy, or a lack of clarity regarding their roles and responsibilities may have caused the conflict. Divergent personality types may have caused them to approach the situation differently. Erroneous stereotypes, biases, or cultural misunderstandings may have caused them to act in an insensitive or boorish way. Different approaches to conflict – competitive, collaborative, compromising, avoiding, or accommodating – may have led them to react in ways that seemed objectionable.

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• 2.8: Working toward a Common Goal

  During the conflict resolution process, mediators should grasp each party's needs so they can find areas where the stakeholders share the same goals. Individuals who disagree can compromise by letting less important areas go and favoring items of greater priority. Each side also needs to trust the other party to have a frank discussion, keep sensitive information private, and keep their promises.
  

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• 2.9: Planning to Reach a Common Goal

  Once you have articulated and considered areas of agreement, common goals, and potential barriers, you should create a remediation work plan. As with any good plan, you should document your actions using tools like a project completion template. This allows stakeholders to disagree, find common ground, and determine a timeframe for completing tasks and responsibilities. The mediator should check in at various intervals to ensure everything is on track and make appropriate adjustments as needed.
  

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• 2.10: Grievance Procedures

  Responding to grievances and conflict are often stressful, for managers and employees alike. While most do not like to discuss conflict, think about this process as an opportunity to resolve misunderstandings and differences before they become contentious.
  

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• Unit 3: Legal Issues

  Unfortunately, dysfunctional conflict can create adverse work environments for anyone who meets with the disagreeing parties, including customers, clients, employees, managers, and company leadership. Remember the four ways employees, managers, and organizations resolve conflict: negotiation, mediation, arbitration, and litigation. For the reasons we discussed in Unit 2, going to court to resolve your disagreements should be the last resort.

  Completing this unit should take you approximately 2 hours.

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• 3.1: Laws to Protect Workers

  Employees, managers, organizational leaders, and human resource departments should be well-versed in local, state, and national laws that protect employees' rights. Most governments have enacted laws to help their constituents avoid working in a hostile environment by dealing with sexual harassment, negative stereotypes, personal and cultural bias, and other forms of discrimination. Dysfunctional workplace situations are not only hurtful and damaging, but they can also be physically dangerous for the victims or others who try to respond to ineffective and disgruntled employees responsibly.
  

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• 3.2: Hostile Work Environments

  A hostile work environment is one where employees feel uncomfortable and unable to perform their job. There is no single standard for a hostile work environment. The burden of proof is on the employee to show that their claims are fair and their employer discriminated against them due to a protected class such as gender, age, race, national origin, disability status, sexual orientation, or similar protected traits.

  As part of their collective bargaining agreements, most union representatives insist that employers create clear and formal grievance procedures so that union members can register complaints or violations of the employee contract. Most of these policies dictate that employers must respond appropriately to their employees within a specific timeframe with an amenable resolution and appropriate procedures for going forward.

  Aggrieved employees usually send a grievance letter to their direct supervisor or the company's human resource department. Employee grievance letters should detail the event that led to their grievance, concern, problem, or complaint, with details, such as the date, background, actions taken, and recommendation for remediation. For example, complaints may include sexual harassment, discrimination, health or safety concerns, inappropriate supervisor behavior, adverse working conditions, or inappropriate work assignments.

  Employees typically send a grievance letter to the human resources department when they are unsatisfied with the response they receive from their immediate supervisor or manager. Employers follow different policies and procedures to respond to or address the complaints they receive, such as formal investigations, communicating with other relevant employees, having open discussions with supervisors, or offering the aid of a mediator. Many human resource departments offer procedures to appeal decisions, such as written complaint processes and involvement from additional parties or supervisors.
  

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• 3.3: Fear of Retaliation

  Employees need to know they will not jeopardize their career or suffer negative consequences if they express disagreement, or report a grievance or workplace wrongdoing. Examples of retribution from coworkers or managers include demotion, reassignment to undesirable work assignments, and wrongful termination.

  Fear of retaliation discourages good employees from reporting infractions and abuses such as sexual harassment and discrimination. This can lead victims to shoulder years of hurt, anger, frustration, distrust, and resentment. Organizations that fail to investigate infractions will miss opportunities to rectify practices that can damage all employees' morale and destroy unit cohesion and teamwork.

  The report could describe an isolated incident or reveal a common practice perpetrated by an individual or group of employees that should be disciplined. Employee retaliation can lead to serious instances of workplace bullying and cause an organization to ruin its reputation for fairness, lose credibility among its customers, and damage its public image for integrity. They also risk losing their committed and valuable employees who leave the organization to search for better opportunities.
  

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• 3.4: Not Meeting Expectations

  During the annual performance review process, managers have an opportunity to have frank and open discussions with employees about job performance, to clear up any misunderstandings regarding expectations, and create solutions for problems, disputes, and points of conflict. Managers can use these meetings to direct employees who are struggling or unhappy onto a more productive path. You can think about this process as another method of conflict resolution.

  Take a moment to review the discussions in Unit 1 about the benefits of functional conflict in the workplace, reasons for dysfunctional conflict, and some different ways individuals approach conflict and disagreement. An open discussion that details the interests and concerns managers and employees have and finds common ground can help both parties arrive at a solution and chart a new path in the future.
  

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• 3.5: The Equal Employment Opportunity Commission (EEOC)

  The U.S. Equal Employment Opportunity Commission, or EEOC, is a federal agency Congress created in 1965 whose actions are mandated as part of the Civil Rights Act of 1964, the Age Discrimination Act of 1967, the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, and the ADA Amendments Act of 2008.

  The EEOC is charged with investigating claims of employment discrimination and enforcing federal laws prohibiting these practices. For example, if the EEOC has reason to suspect an employer is responsible for discriminating against its job applicants or employees based on their race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), national origin, age (40 or older), disability or genetic information, it will collect evidence to support its case and can legally punish or sue the employer.
  

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• Unit 4: Conflict Resolution Procedures

  In the previous units, we examined conflict resolution from the perspective of employers, employees, and third parties. In this unit, we will look at how to implement effective processes and policies to ensure awareness and fairness for everyone in an organization. This unit will help you understand the factors you should consider when developing a conflict resolution policy and the process for creating one.

  Completing this unit should take you approximately 2 hours.

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• 4.1: Managing Conflict Resolution

  Resolving workplace conflict incorporates all of the elements we have discussed in this course and keeps the process agreeable. To resolve conflicts, you should create an effective atmosphere, clarify perceptions, focus on individual and shared needs, take a positive approach, generate options, develop a list of stepping stones to action, make mutually beneficial agreements, and part on good terms.
  

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• 4.2: Example Policies and Procedures

  In this section we look at some sample policies and procedures.
  

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• Certificate Final Exam

  Take this exam if you want to earn a free Course Completion Certificate.

  To receive a free Course Completion Certificate, you will need to earn a grade of 70% or higher on this final exam. Your grade for the exam will be calculated as soon as you complete it. If you do not pass the exam on your first try, you can take it again as many times as you want, with a 7-day waiting period between each attempt.

  Once you pass this final exam, you will be awarded a free Course Completion Certificate.

  Quiz: 1