MEDIATION OF ORGANISATIONAL CONFLICTS

Anca Monica ARDELEANU, LLD

Associate Professor University of Bucharest Faculty of Business and Administration

THE NATURE OF CONFLICT

Conflict is an inevitable part of life. Violence often erupts out of conflict, as can be seen from significant events in history. War has been around since the dawn of humanity, resulting from differences concerning ideals, land, or religion. Family life also presents its own unique conflicts, since you often have a houseful of people with different needs and agendas.

THEORIES ABOUT CONFLICT

Nicolo Machiavelli, Thomas Hobbes, Emile Durkheim, Karl Marx, Max Weber, Ralph Dahrendorf, David Lockwood, Lewis Coser, Talcott Parsons, Goldman Schlenker, Johnson Pruitt etc 60s controversy between the new theories (conflict is positive) and the old theories (conflict is negative)

BELIEFS ABOUT CONFLICT

Conflict is generally negative and destructive It is better to ignore small problems Recognizing conflict can make it increase Problems will work themselves out Conflict is the result of bad management There are usually single, simple causes of conflict

TYPES OF CONFLICT

Intrapersonal conflict

arises from within oneself. E.g. a dilemma, a conflict resulting from guilt, or a conflict between ones ''real'' self and the "ideal" picture of himself/herself. occurs between two or more people. it usually erupts over differing beliefs, psychological needs, and/or resources.

Interpersonal conflict

TYPES OF CONFLICT (2)

Intragroup conflict

arises within the context of a larger group but takes place between two or more people. E.g. people working together in support of a political candidate may differ about the ways they want to run the campaign. The conflict is interpersonal (in that it's between two or more people), but it's also a part of a single, larger group. Intragroup conflict is complex to solve because it's not merely a matter of satisfying the needs of the two participants; you additionally are affecting all the other members of this particular group

TYPES OF CONFLICT (3)

Intergroup conflict

arises out of conflict between two or more groups. Gang warfare is a good example of intergroup conflict. In this case, the participants of one group are unified in their opposition with another group.

ADVANTAGES OF CONFLICT

Diffuse more serious conflicts Stimulate search for new facts or solutions Enhance relationships Increase cohesiveness Conflict should be managed not eliminated !

DISAVANTAGES OF CONFLICT

Time consuming Disrupts progress/ problem solving Detracts from job at hand Keeps people apart; if unresolved Poor quality, lowers productivity Reduces team effectiveness

CAUSES OF CONFLICT (SOURCES)

a. b. c. d.

e.
f. g.

objectives necessities/needs Interests values communication power, status, role not following the rules

a. Conflicts caused by the goals

The

outcomes pursued by different persons are not compatible or are perceived as incompatible

b. Conflicts caused by the necessities / needs

MASLOWS HIERARCHY OF NEEDS

c. Conflicts caused by the interests

NEEDS INTERESTS

NEEDS

fundamental and permanent passing and superficial -------------------------------------

INTERESTS

NEED real cause of the conflict INTEREST expressed position over the conflict

d. Conflicts caused by the values

Every person has its own value system Different persons different values

The value is the main criteria to qualify a situation or a person Values govern all the activities

e. Controversies caused by communication

The absence of the communication

One of the parties does not tell to the other what he/she feels or thinks regarding the object of the dispute

The bad communication

The feelings or the thoughts are not expressed clearly, completely and this leads to misunderstandings and interpretations

f. Conflicts caused by power, status or role

self esteem is the affective component of self image - our opinion about ourselves The denial and minimization of ones accomplishments and the systematic critics of ones action can lead to conflict The reaction of the criticized person depends on the level of the self esteem

g. controversies caused by not following the rules

All kinds of human activities and behaviors are subject to rules Rules establish behavioral patterns in order to maintain social order Not following the rules leads to disrupting the social order and, as a consequence, to conflict

ORGANISATIONAL CONFLICT

HOW WE REACT TO CONFLICT

Avoidance Denial Accommodation Aggression Compromise Collaboration

a. Reaction to conflict - Avoidance

can be either positive or negative avoidance is a good tactic when the issue is not that significant to either of the parties. It's a bad choice when one party is avoiding simply because he/she is afraid of the consequences or others' reactions.

b. Reaction to conflict - Denial

is more intense than avoidance, since it means not even recognizing that a conflict exists.

denial is rarely a useful tactic one party often ends up deceiving herself/himself as well as others

c. Reaction to conflict - Accommodation

Accommodating is giving in, going along with the wishes of the other party even when one doesn't want to. Like other ways of dealing with conflict, it can be either positive or negative. It is wise not to accommodate on issues that are significant to you. Giving in is only a useful tactic when you're not going to suffer serious physical or emotional consequences as a result.

d. Reaction to conflict - Aggression

Launching an attack usually is not productive, it does little to preserve a relationship "winning the battle, and losing the war People who resort to aggression do not have a positive view of conflict

they think of conflict as a contest where there can be only one winner they think of conflict as a struggle between two sides, and only their side is the right one.

An aggressive person is most likely afraid to listen to the other side because he might not be able to control the outcome, and attempts to take control of the situation by forcing his will onto others. He may also be afraid of someone thinking he is wrong.

e. Reaction to conflict - Compromise

Compromise is an effective way to resolve a conflict, but only if you are prepared to have some, not all, of your needs met. communicating the real needs is essential (e.g. the mother-son conflict over the last orange)

f. Reaction to conflict - Collaboration

Collaboration is the best way to solve a conflict and preserve a relationship When parties collaborate on a solution, they sit down and treat each other as partners in the problem They listen to each other in order to define the problem and clarify what each party's interests are

BASIC SKILLS FOR CONFLICT RESOLUTION

1. 2. 3. 4. 5. 6.

Manage anger Listen actively Avoid assumptions Find something on which to agree Be cautious with criticism Negotiate (more later!)

7.

Get help

CONFLICT PARTIES

it is important to identify all of the people involved in the conflict, and their degree of involvement frequently the relatives of the parties involved are part of the situation sometimes people can be completely mistaken about the source of the problems they have attributed to some other individuals.

a. Primary parties

are those who are in direct confrontation over incompatible goals, and are in structural positions such that they come into conflict with each other Husband/wife ; two neighbours ; employer / employee etc.

b. Secondary parties

Secondary parties are those who have an indirect stake in the outcome of the dispute, but do not feel directly involved. Extended families are often secondary parties, because they have an emotional investment in the conflict, and are frequently involved in supporting their relations who are the primary parties.

ISSUES

it is crucial for the parties to be clear on what the issues are When the parties realize that they are in a conflict, issues have usually proliferated from the original cause of the dispute. This means that the presenting problems may actually be symptoms rather than causes.

ISSUES

Facts-based Values-based

Interests-based
Relationship-based

THE DYNAMICS OF CONFLICT (STAGES)

0. No conflict 1. Latent conflict 2. Emergence 3. Escalation 4. Hurting (Stalemate) 5. De escalation 6. Settlement / Resolution 7. Post conflict Peacebuilding and Reconciliation

Stage 1 LATENT CONFLICT

It exists whenever individuals, groups, organizations, or nations have differences that bother one or the other, but those differences are not great enough to cause one side to act to alter the situation. the seeds of conflict may exist for long periods of time without actors being aware of them. Sometimes, however, the conflict never emerges. If destructive conflict has not yet emerged, steps can be taken to minimize its potential - "conflict prevention"

Stage 2 EMERGENCE

After a conflict has remained latent for some time, if the underlying grievances or frustrations are strong enough, a "triggering event" marks the emergence or the "eruption" phase of the conflict.

Stage 3 ESCALATION

an increase in the intensity of a conflict and in the severity of tactics used in pursuing it changes within each of the parties, new patterns of interaction between them, and the involvement of new parties in the struggle more people tend to become involved parties begin to make bigger and stronger threats and impose harsher negative sanctions Violence may start, or if violence has already occurred it may become more severe and/or widespread as the number of participants involved in the conflict increases, and a greater proportion of persons engage in fighting

Stage 4 HURTING (STALEMATE)

Once conflicts escalate for awhile, they often reach a stalemate: a situation in which neither side can win, but neither side wants to back down or accept loss either. Despite realizing that the conflict is going nowhere, it is often difficult for parties to tranform the nature of the conflict and consider a settlement. Eventually, conflicts reach a point at which a sort of equilibrium sets in, in which neither side is getting any closer to achieving its goals and which no one is happy with the situation.

Stage 5 DE-ESCALATION (NEGOCIATION)

Conflict de-escalation and transformation are often also associated with reduced grievances, at least for members of one side. This change occurs as relations between the adversaries change, in the course of the struggle. Thus, some rights that one party sought may be at least partially won, and that party's goals are then accordingly softened. Goals may then be recast so that they may be achieved with reasonable means. They may even be recast so as to provide mutual benefits for the opposing sides

Stage 6 SETTLEMENT

After de-escalation, neither side's new goals include the destruction of its adversary.

If most or all of the underlying causes of the conflict are finally remedied, the conflict may be resolved permanently or at least for a long time.

Stage 7 POST CONFLICT PEACEBUILDING AND RECONCILIATION

even after a settlement is reached and a peace agreement is signed, this is by no means the end of the conflict. at the peacebuilding stage, outside actors can play an important role in monitoring the agreement and demobilization efforts. there are four aspects of reconciliation:

truth (coming to acknowledge there is some merit to the other side's interpretation of events), justice (gaining redress as a means of putting the past to rest), regard (forgiveness on the part of victims), and security (expectations of peaceful coexistence)

THE EFFECT OF CONFLICT ON ORGANIZATION PERFORMANCE

Pray one hour before going to war, Two hours before going to sea, Three hours before getting married, And four hours before going to court.

Indian Proverb

PHASES OF MEDIATION

Basic stages or phases that most mediations go through

Phases are guideposts about progress, but do not have to occur in a specific order or at a specific time

PHASE 1: ORIENTATION TO MEDIATION AND INITIAL IDENTIFICATION OF ISSUES

help the parties understand what mediation is and to provide them an opportunity to ask questions about the process identify the basic issues in the conflict so the initial agenda can be set and the mediator can determine whether mediation is appropriate in this case

OPENING COMMENTS

To accomplish the first purpose the mediator makes an opening statement that explains mediation and the mediators role in the mediation

THE OPENING STATEMENT

Introductions of the mediator and parties Mediation is a voluntary process Parties retain all decision-making control in the conflict The mediator does not act as judge or fact-finder. The goal in mediation is to help the parties constructively manage the conflict Mediation is a confidential process (and what the limits of confidentiality are, if any) A general overview of the mediation process (in terms of general agenda) Questions to see whether the parties understand the process In addition, some mediators like to include a discussion of guidelines for behavior (e.g., no name calling, no interrupting, etc.).

INITIAL IDENTIFICATION OF ISSUES

The mediator asks each party to briefly explain his or her understanding of the conflict and what needs to be addressed.

From this introduction, the mediator can identify the basic issues, see where the parties differ in their understanding of the conflict, and consider an agenda for this conflict.

COMMON PROBLEMS WITH PHASE 1

Parties express discomfort with the nature of mediation. Parties argue for positions or what has to be done before issues are defined. The parties identify separate or mutually exclusive agendas and there is no agreement on how to proceed. Parties are unable to discuss the conflict at all because of strong emotions.

PHASE 2: UNDERSTANDING THE PARTIES INTERESTS AND EMOTIONS

the discussion needs to move to understanding the ways that parties see the conflict. There are two strongly interrelated aspects of this their interests, or underlying concerns, and their emotions, or how they feel about the conflict and what it will take to make it better for them.

EXPLORING INTERESTS

An interest is an underlying concern that someone has, usually a concern that motivates them to argue for a particular action, outcome or position.

COMMON PROBLEMS WITH PHASE 2

Parties are not ready to deal with the conflict Parties are so distrustful they will not share anything other than facts Parties want to focus only on the solutions without discussing their view of the conflict Parties insist the other see it their way

PHASE 3: GENERATING OPTIONS

In many cases the parties want to move beyond understanding the conflict and work toward agreeing on some action or orientation to the relationship. Some people think of this as problem-solving, but we adopt a broader perspective. We think of it in terms of options for making the situation better.

BRAINSTORMING

Brainstorming (putting forth ideas without criticizing them). The parties then create a pool of possible options. The parties clarify options if there is some confusion.

COMMON PROBLEMS IN PHASE 3

The party needs professional therapeutic help Parties are psychologically unable to disconnect from their positions Offers are antagonistically rejected by the other. Options are extreme and unworkable. Parties are unwilling to propose any options. Parties are pessimistic about all options.

PHASE 4: ASSESSING OPTIONS AND DECIDING ON ACTIONS

In this phase, the parties talk about the worth and feasibility of the options that have been generated and discussed. Then, they decide on actions.

SELECTION PROCESS

The selection process involves discussing the criteria for acceptable options (these come from explored interests and facilitated reappraisals). Then options are selected based in how well they meet those criteria.

FLEXIBILITY

There can be several options that are selected There can be options that are joint and individual. There can be options that are immediate or future. There can be options that are incrementally enacted. There can be options that are piloted pending final agreement.

COMMON PROBLEMS WITH PHASE 4

The most common problem is that parties are unwilling to make decisions, either individually or jointly. Parties want to force the other to see the relationship a certain way. Parties are unwilling to commit to specifics in terms of joint action and decision.

THE COST OF CONFLICT

- Over 65% of performance problems result from strained relationships rather than skill or motivation problems - The amount of managerial time spent dealing with conflict was 30% in 1976 and 42% in 1996 AND 54% in 2006 - Amount of time wasted during conflict can be as high as 50% of gross salary, defending, avoiding & venting - Chronic unresolved conflict is a decisive factor in 50% of people leaving, and 90% of involuntary terminations - Projected costs should include estimates of wasted time, reduced decision quality, loss of skilled employees, restructuring, sabotage, lowered motivation, lost work time, and health costs, loss of innovation & initiative.

THE ADVANTAGES OF ALTERNATIVE DISPUTE RESOLUTION

The most telling obstacle to pursuing alternative dispute resolution may simply be inexperiencethe fear of any process with which one is unfamiliar. Therefore the first step in selling alternative dispute resolution to the other side is education: reviewing the primary advantages of alternative dispute resolution over litigation and examining how they apply to the case at hand.

a. PROMPTNESS OF RESOLUTION

the congestion and inefficiency of many court systems instead of dealing with judges with little knowledge of, or interest in cases, parties in an mediation proceeding are assured of the undivided attention of a neutral who is focused on having a continuous process and a prompt disposition years-long litigation vs. days/weeks long mediation

b. CERTAINTY OF RESOLUTION

A judicial decision on the merits is frequently an all-or-nothing resolution and is always the proverbial roll of the dice, even if a party feels it has the best facts, law and counsel. Early and prompt dispute resolution can eliminate this risk the parties know what the result of their compromise will be

c. CREATIVE BUSINESS-DRIVEN SOLUTIONS TO LEGAL PROBLEMS

the parties have the ability to fashion win-win resolutions reflecting business objectives and priorities rather than relying on a court which may decide based upon more technical or narrow issues. parties can and often do go beyond the particular dispute at issue to resolve broader concerns.

d. SUBSTANTIAL COSTS SAVINGS

Early settlement can reduce litigation expense most significantly Also there are other kinds of costs relationship, productivity etc

e. ACCESS TO A NEUTRAL EXPERT

judges rarely have experience in some specific, practical matters this makes it much easier and quicker to choose a neutral expert it enables counsel and the parties to be able to save valuable time

e. FLEXIBILITY AND CONTROL BY THE PARTIES

The parties and their counsel are free to choose an alternative dispute resolution procedure which they agree is most suitable to their situation, time frame and more intangible factors such as their corporate or individual personalities The parties and their counsel then have the ability to tailor and refine the particular procedure chosen so that it fits their needs and preferences.

f. IMPACT ON MANAGEMENT OF THE BUSINESS

While mediation requires some concentrated time and attention from management, the amount expended will pale in comparison to the intrusion of full-blown litigation into the real business activities of the parties Litigation is draining not only to management and inhouse counsel, who surely have better things to do, but its potential adverse consequences may be reportable to shareholders, potential acquirers of a company, or financing institutions, etc

g. PRIVACY AND CONFIDENTIALITY

Mediation can allow for privacy in resolving a dispute, thus avoiding a public record and judgment and thereby minimizing the potential impact on other or future disputes. Quite importantly, the appropriate mediation agreement can minimize disclosure of embarrassing or sensitive confidential business information.

h. PRESERVATION OF BUSINESS RELATIONSHIPS

This is clearly relevant in those situations where mediation arises from an outstanding contractual relationship.

QUESTIONS..

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