LRM3702 - Labour Relations Management: Micro
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LRM3702 – LABOUR RELATIONS MANAGEMENT: MICRO
TOPIC 2: MANAGING THE MAINLY DIVERGENT INTERESTS AND THE
DYNAMICS OF CONFLICT
LEARNING UNIT 3
MANAGING CONFLICT, HANDLING GRIEVANCES AND NEGOTIATING
3.1 INTRODUCTION
We focus on conflict, but not purely as part of collective bargaining. We also look at it in relation to the individual
dimension of employment relations. Conflict and the processes and practices of negotiation are part and parcel of
collective bargaining. Conflict has to be handled in various ways and on a day-to-day basis. While union management
conflict (between representatives of these groups) is dealt with largely by way of collective bargaining, the optimal
management of conflict in any organisation that hopes to succeed in the modern business world entails a good deal
more.
A key process to deal with conflict is negotiation. We thus also expose you to the challenges relating to negotiation. As
we do that, keep in mind that negotiation is actually also the key process in collective bargaining. Negotiation skills are
relevant way beyond the field of labour relations. At times the conflict may just be too much, and if it causes too much
dissatisfaction among employees, they may want to lodge formal complaints – something we call grievances in labour
relations.
3.2 THE NATURE OF CONFLICT: A LABOUR RELATIONS PERSPECTIVE (Study)
3.2.1 General
The concept "conflict" has an extremely negative connotation, which explains why most people are opposed to it.
People would more often than not prefer to avoid it altogether rather than handle it. The probable reason for this is
that conflict is often associated with hostility, defensive behaviour and protracted trouble leading to loss, suffering,
damage and bad intentions. Conflict is commonly perceived as a negative element that should be avoided at all costs.
One should therefore accept that conflict is a fact of life and make an effort to understand it. It is, as we have
mentioned, an essential element in all social interaction. If one accepts that a measure of conflict is unavoidable, then
the task of conflict management should be to understand why and how various forms of conflict occur, and how they
can be identified and used to the advantage of all parties involved.
Conflict occurs when there is a gap between various parties’ points of view, or when they have contradictory
objectives, needs, interests and ideas. Conflict may occur even when there is only a perception that such a gap or
contradiction exists.
For example, conflict can
• be a source of energy, thus becoming a catalyst for change and adjustment
• be used to maintain internal group identity and solidarity when groups are in conflict with one another – thus it can
be instrumental in meeting the need to belong
• stimulate the structuring or regulation of situations so that rules, procedures and processes can be designed for the
management of conflict
• sensitise people to different needs, perceptions and ideas, which results in a better understanding of others
• motivate parties to assess the power balance between them (is one group too dominant?)
• be used as the catalyst for a new, cooperative type of relationship, especially if the parties, in handling the conflict,
can identify common ground
• make the parties involved more sensitive and objective when seeking solutions to problems
• help to define the limits of acceptable behaviour in the future
• help to defuse accumulated frustration and tension, thereby creating a more positive climate
Page 1 of 48
Summary by L Petzer
, LRM3702 – LABOUR RELATIONS MANAGEMENT: MICRO
Conflict can become dysfunctional (i.e., can damage relationships and organisations) when it is too intense (or even
not intense enough), but this type of conflict can also be put to good use. It can strengthen relationships and produce
negotiated results that are beneficial to everybody. If the potential advantages or benefits of conflict are to be
realised, the whole topic must be thoroughly understood and conflict must be managed professionally, not only during
collective bargaining, but on a day-today basis as an integral part of management.
*(PB 6.5 – 6.5.2)
Collective Bargaining and Conflict
It is generally accepted that conflict is generated by economic, ideological, social and political factors and even to
aspects that can be tracked back to personal differences between people. Collective bargaining is not meant to
eliminate conflict; it is meant to contain and regulate the intensity or degree thereof, and thereby to manage the
levels and forms of the conflict that naturally exists between the interacting parties.
If it is accepted that collective bargaining is an interactive process and that any human relationship has a certain
conflict potential, then it is easy to see that collective bargaining has an element of conflict.
The modern approach is to see conflict as potentially healthy and even beneficial. The view is taken that conflict is a
prerequisite for growth and development. Conflict is therefore seen as the force underlying change. In recent years,
the focus appears to have shifted to intra-organisational conflict, as well as to strategies for interpersonal and inter-
organisational conflict resolution. Collective bargaining is not meant to eliminate conflict; it is meant to contain and
regulate the intensity or degree thereof, and thereby to manage the levels and forms of the conflict that naturally
exists between the interacting parties
Conflict may have the following beneficial effects. It may
❖ toughen the participants
❖ increase the identification of the participants with group values and objectives
❖ create, sustain or modify social industrial norms
❖ clarify or alter the boundaries of acceptable behaviour
❖ increase group cohesion and stability
❖ create, sustain and modify the systems that are required to deal with it
❖ help to release accumulated tensions and frustrations
❖ facilitate readjustments of relationships, thus acting as a balancing mechanism
❖ be instrumental in the achievement of other goals
❖ provide a reliable means of indicating the need for change, and of evaluating management performance.
The Meaning of Conflict
Conflict resolution processes are of two types, namely competitive and cooperative. Neither of these is found in its
pure form without some elements of the other, but one type will provide the dominant characteristics. Each type
tends to generate joint communicative behaviour which can be described and analysed. General principles and
strategies may be discovered to facilitate both conflict resolution processes. Conversely, it has been suggested that
conflict inevitably implies a break, or the threat of a break, in the cooperation between parties.
Spangler (2003): A cooperative approach to conflict resolution is aligned with integrative bargaining (win-win
outcome), while a competitive approach is aligned with distributive bargaining (which results in win-lose outcomes)
Characteristic Features of Conflict
There are various common factors that may be regarded as characteristic features of conflict:
Conflict is regarded as part of the interaction between two or more persons or groups.
The interaction is dynamic. In other words, it changes constantly to accommodate changed input and changes
in the environment.
Conflict has a negative element because of the typically competitive nature of interaction, and because of the
inability to divide the available means and resources equally.
Conflict can be a positive force in a group and is sometimes necessary for a group to function optimally.
Page 2 of 48
Summary by L Petzer
, LRM3702 – LABOUR RELATIONS MANAGEMENT: MICRO
Conflict reflects negative emotional qualities, and is associated, for example, with antagonism, aggression,
threats, hostility and lack of cooperation.
Interaction may be either verbal or non-verbal
3.2.2 Causes or sources of conflict
*(PB 6.5.3)
A very wide range of issues may cause or enhance conflict levels in employment relations. We merely introduce some
general theoretical perspectives here.
Lack of Common Objective
The existence of a common objective orientates the behaviour of the individuals or groups in question towards the
achievement of the objective. Conflict will likely result unless a group or groups in an organisation have a common
objective with regard to a certain matter.
Different Methods of Pursuing the Objective
People, either individually or in a group context, differ about the way in which they pursue a predetermined objective.
In the employment relations environment this can, for example, manifest on divergent opinions between members of
a workforce committee / forum on how to convey a complaint / problem / grievance to the management. In other
words, although there is a clear objective – such as improved working conditions – the members of the committee /
forum may not agree on which route to take to achieve it. i.e., should they confront management and make concrete
demands or should they negotiate and if not successful embark on strike action.
Difference in Perceptions, Values, Interests and Attitudes
• The parties all have their own ways of perceiving the situation.
• The values of the owners of business organisations will generally have to do with enhancing the wealth of the
owners, making profits and making sure there are good returns on the investments of the owners or
shareholders.
• Employees will want better pay – the trade unions will have an interest in bargaining with the employer parties
for higher pay for the workers.
These differences often lead to hardening attitudes and even negative attitudes and hostilities. Such negative
attitudes often lead to even more negative perceptions and attitudes. It can then become difficult to break such a
negative spiral in an attempt at conflict resolution, because certain attitudes may remain, sometimes even in the face
of evidence that the attitudes are based on false beliefs and values.
Conflict can therefore only be resolved by creating new, positive attitudes, and not by altering old, negative ones.
Theoretically, the dissonance between negative attitudes and new positive beliefs leads to the establishment of new
attitudes.
Information Difference
The storage, retrieval and interpretation of information may be a cause of conflict, mainly because of the vast volume
of information available to parties. At different levels, the nature and extent of information available to groups may
vary and this can cause conflict. It is not so much the variety in available information that causes conflict, but rather
the differences in interpretation. The deliberate withholding of information, as an offshoot of the availability of
information, is also a major source of conflict. Conflict increases not only when information is insufficient, but also
when there is too much. Over-communication can increase conflict.
Semantic Difference
Semantic difference leads to the negative force of misinterpretation or, more specifically, of variance in the
interpretation of information. These semantic differences do not only occur in translation, but also because of the
cultural differences underlying the semantics.
Page 3 of 48
Summary by L Petzer
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