Survey report October 2008

Leadership and the management of conflict at work

Contents

Summary of key findings The impact of conflict at work The causes of conflict at work Managing and preventing conflict The benefits of investing in managing conflict at work Conclusions Background to the survey

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Leadership and the management of conflict at work

Summary of key findings

This report sets out the findings of a survey by the CIPD, in association with business psychology consultancy OPP, into leadership and conflict management in the workplace. The analysis is based on replies from 660 HR practitioners in organisations employing nearly 2.3 million employees.

The impact of conflict at work

Almost half (44%) of respondents report that they

Heavy workload and bullying and/or harassment are

also identified as significant causes of disputes in the workplace. Managing and preventing conflict
More than eight in ten HR professionals cite

have to manage disputes at work frequently or continually.

The survey finds that on average HR professionals

spend 3.4 hours every week managing conflict at work. This rises to 3.8 hours for public sector respondents.
Six in ten respondents say that they had to manage

identifying and addressing underlying tensions more effectively before things start going wrong as key to helping managers become more effective in managing conflict at work.
Two-thirds (66%) of respondents identify the need

conflict at work in the previous seven days, with more than half of these saying that the dispute in question remained ongoing.
Nearly two-thirds of respondents report that conflict

for managers to have more interaction with their reports, provide more clarity about whats expected and model the right behaviours.
Improved consultation in day-to-day management

at work that escalated has resulted in the absence from work of one or more of the parties involved.
Half of respondents say that conflict has resulted

activities is also regarded highly as a means of helping line managers prevent and manage disputes in the workplace.
More than 60% of HR practitioners report they

in people leaving the organisation and a similar proportion report that disputes that escalated resulted in bullying or harassment.
Nearly one in three (28%) respondents admit to

have been trained in conflict management as part of their professional development, while 38% state that they have received training in the context of leadership development.
When asked what training their organisations had

having left a job as a result of conflict at work, illustrating clearly one of the most negative aspects of conflict at work in terms of business impact. The causes of conflict at work
The most commonly cited cause of conflict as far

provided for line managers in conflict management, 40% of respondents say that it is offered as part of leadership development.
Just under a third of HR practitioners report that

as HR practitioners are concerned is warring egos and personality clashes, mentioned by 44% of respondents as being the number one source of interpersonal strain.
This is followed by poor leadership from the top

training in conflict management skills for line managers is provided through coaching from their manager.
More than a quarter (27%) say that line managers

(30%), inadequate line management (21%) and weak performance management (17%).

receive no training of any description in conflict management.

Leadership and the management of conflict at work

The benefits of investing in managing conflict at work

Almost a third of respondents report that training in

conflict management has led to a reduction in the number of disciplinary and grievance cases, 28% think there has been an improvement in employee morale and 25% believe there has been an increase in team performance and productivity.
In all, 13% of HR practitioners say conflict

management training has helped reduce employee absence levels, 12% have seen a reduction in employment tribunal claims and 10% report a reduction in employee turnover.
One in three (34%) HR practitioners believe that

better teamwork would be the single biggest potential gain in their organisation as a result of more effective management of conflict, followed by higher employee engagement at 30% and improved productivity and greater internal efficiency at 12%.

Leadership and the management of conflict at work

The impact of conflict at work

Nearly half of HR practitioners say they have to manage conflict in the workplace continually or frequently, with sickness absence, staff turnover and bullying being the most likely result where disputes escalate.

In response to the significant and growing challenge conflict at work creates for organisations, the CIPD joined forces with international business psychology consultancy OPP to conduct research into the role of leadership in managing disputes in the workplace. This is based on a survey of 660 HR practitioners exploring the perceived causes and evident costs of conflict in the workplace, along with the measures organisations are currently implementing to prevent and manage workplace tensions. The survey finds that managing conflict is an integral part of most HR practitioners jobs on a daily basis. Almost half (44%) of respondents report that they have to manage disputes at work frequently or continually. This rises to 51% among public sector respondents.

As many as one in five respondents claim to manage conflict continually in organisations of between 5,000 and 10,000 employees. See Table 1. Conflict at work is also extremely time-consuming. The survey finds that on average HR professionals spend 3.4 hours every week managing conflict at work. This rises to 3.8 hours for public sector respondents. Just under half (48%) of respondents spend up to half a day a week and a further 12% spend the equivalent of an entire day a week handling conflict. HR professionals in mid-sized organisations (with between 500 and 1,001 employees) appear to fare the worst, being more than twice as likely as smaller firms

Table 1: The extent to which HR practitioners have to deal with conflict in the workplace (% of respondents)

By sector Yes, continually Yes, frequently Yes, occasionally No, never By size of organisation Yes, continually Yes, frequently Yes, occasionally No, never

Average 10 33 55 2

Manufacturing and production 10 31 58 2

Private sector services 9 32 56 2

Non-profit organisations 11 34 53 2

Public sector 13 38 48 2

250 or fewer 6 30 62 2

251500 9 38 53 1

5011,000 13 38 48 2

1,001 5,000 11 37 53 0

5,001 10,000 21 30 47 2

10,001 or more 13 31 53 3

Leadership and the management of conflict at work

to spend a day a week or more managing conflict at work. See Table 2. Six in ten respondents say that they had to manage conflict at work in the previous seven days, with more than half of these saying that the dispute in question remained ongoing.

and interpersonal relationships or productivity had suffered. In all, 15% of respondents report that external legal advice had been sought. See Table 3 on page 6. Worryingly, as many as one in ten (10%) HR practitioners who indicate that the recent conflict has now been resolved say that it took them more than a

Table 2: How much time per week HR practitioners spend managing conflict at work (% of respondents)

By sector None Less than 1 hour a week 15 hours a week 610 hours a week 1115 hours a week Over 15 hours a week Mean score (hours) By size of organisation None Less than 1 hour a week 15 hours a week 610 hours a week 1115 hours a week Over 15 hours a week Mean score (hours)

Average 2 34 48 12 3 2 3.4 250 or fewer 2 40 50 8 0 0 2.5

Manufacturing and production 2 37 46 12 3 0 3.1

Private sector services 3 33 50 10 2 2 3.4 501 1,000 4 29 36 21 9 2 4.6

Non-profit organisations 2 33 55 5 5 2 3.3

Public sector 3 31 45 15 5 2 3.8 10,001 or more 4 37 38 14 2 4 3.8

251500 1 29 58 8 4 0 3.2

1,001 5,000 1 31 48 12 5 4 4.1

5,001 10,000 4 21 49 19 6 2 4.3

Respondents in organisations employing between 251 and 500 people are most likely to report that they have experienced conflict at work in the previous seven days (67%), while HR practitioners in businesses employing between 501 and 1,000 employees are most likely to say that such disputes are still ongoing. Public sector HR professionals are also more likely to experience conflict that drags on (41% versus 31% in the private services sector). Just over 40% of HR practitioners that were involved in trying to resolve an ongoing dispute say that the conflict was still being dealt with on an informal basis. Nearly half say the dispute had led to disruption in the team

week; this doubles (to 19%) in the largest organisations (those with more than 10,000 employees) and appears to be more likely in the public sector, where one in six (15%) report this. Of course, the cost implications of this are not limited to HR time; the missed opportunity for HR teams to be doing something more constructive also has its price. The impact of conflict on management time is also very considerable. Nearly a fifth of respondents estimate that where recent conflict at work has been resolved it took up to a day in management time, while 6% of respondents report that the recently resolved conflict took in total more than ten days of management time.

Leadership and the management of conflict at work

Table 3: The impact of conflict at work where it has not been resolved (% of respondents)

By sector It is still being dealt with on an informal basis. There is disruption in the team and interpersonal relationships/productivity are suffering. It has moved from informal grievance to a formal grievance being lodged.
It has resulted in the use of the
disciplinary procedure.
It has resulted in an employee being
suspended. An employee has been dismissed. External legal advice has been sought.

Average 44 46 29 15 5 3 15

Manufacturing and production 31 46 27 16 4 4 16

Private sector services 43 46 21 16 6 4 16

Non-profit organisations 50 46 32 14 9 0 9

Public sector 51 43 36 13 5 2 18

Non-profit organisations and public sector employers spend more in management time resolving conflict at work than their private sector counterparts. See Table 4. In situations where conflict is not managed effectively and escalates, the fallout for the business can be extremely damaging. Nearly two-thirds of respondents report that conflict at work that escalated has resulted in the absence from work of one or more of the parties involved. Half of respondents say that conflict has resulted in people leaving the organisation and a similar proportion report that disputes that escalated resulted in bullying or harassment. More than four in ten respondents say that conflict has led to one or more individuals involved leaving the organisation. See Table 5.

Nearly one in ten respondents report that conflict at work that escalated resulted in physical violence. Public sector organisations are most likely to report that disputes at work resulted in sickness absence and bullying or harassment. Public sector employers are also much less likely to dismiss people (29%) as a result of conflict at work, compared with the survey average (44%). Where is conflict most prominent? Conflict is not confined to one area of the business, nor to one functional team; this research shows conflict occurring at all levels of the organisation and across all departments. However, there are identifiable hot spots, according to HR professionals. They observe that conflict surfaces most frequently between line managers and their direct reports, with 47% of respondents identifying

Table 4: The amount of management time spent resolving conflict at work (% of respondents)

Average Less than 1 hour 14 hours Up to a day 25 days 510 days More than 10 days 24 46 17 5 3 6

Manufacturing and production 25 40 20 8 0 8

Private sector services 27 46 16 5 1 5

Non-profit 15 45 10 15 10 5

Public sector 26 39 20 0 4 11

Leadership and the management of conflict at work

Table 5: The result of conflict at work in circumstances where it has escalated (% of respondents)

Average Bullying/harassment Personal insults/verbal attacks An individual/people left the organisation An individual/people were dismissed Cross-departmental conflict Employees being moved to different departments Project failure Sickness/absence of one or more parties Physical violence I have never been involved in a conflict that escalated 50 42 53 44 28 38 7 63 8 6

Manufacturing and production 48 39 49 51 25 39 7 51 10 10

Private sector services 45 41 52 46 28 27 7 54 11 11

Non-profit organisations 41 45 62 45 50 31 14 67 5 5

Public sector 58 45 47 29 22 50 6 70 4 4

these relationships as most likely to lead to conflict within organisations. The next most common areas of conflict are between front-line roles (14%), between different levels of management (14%) and between members of the senior executive team (13%). One in five (19%) respondents report that their organisations senior management team is in frequent or constant conflict, rising to almost one in four (24%) in the voluntary sector. Six in ten HR practitioners say such conflict is occasional, with just 10% reporting completely harmonious relationships at the most senior level. Almost one in six respondents (14%) report conflict between entry-level/front-line roles, and between different levels of management. In terms of its prevalence in functional teams, HR professionals cite operations as generating most conflict (48%), followed by disputes between teams (38%). Tensions are also commonly observed in sales and customer service, with 12% of HR respondents citing each of these as conflict-rich departments. The functional teams in which HR practitioners note the least conflict are perhaps unsurprisingly HR, cited as most peaceful by more than half (58%), with finance (31%) and IT (25%) following in second and third places respectively.

When asked if they personally currently work with someone with whom they have experienced conflict, HR respondents replies were consistent. All have been in conflict with someone in their organisation with most occurrences being with a colleague, cited by more than one in four (27%). Almost one in five (18%) say they have been in conflict with senior management, suggesting that HR practitioners are not shy of taking issue with their organisations leaders, while 13% of respondents report conflict with their own immediate manager. Just one in ten (11%) cite conflict with direct reports. Interestingly, HR professionals in organisations of more than 10,000 employees are twice as likely to have experienced conflict with their managers, a direct report or with customers than those in organisations of fewer than 250 people. Its clear that workplace conflict is inescapable, and in HR teams particularly in larger organisations there are some difficult relationships to be negotiated. Nearly one in three (28%) respondents admit to having left a job as a result of conflict at work, illustrating clearly one of the most negative aspects of conflict at work in terms of business impact.

Leadership and the management of conflict at work

The causes of conflict at work

The top three causes of conflict in the workplace are warring egos and personality clashes, poor leadership from the top of the organisation and inadequate line management.

The most commonly cited cause of conflict as far as HR practitioners are concerned is warring egos and personality clashes, mentioned by 44% of respondents as being the number one source of interpersonal strain. Poor leadership from the top is not far behind at 30%, which is substantially more frequently cited in large organisations than small (32% versus 23%). See Table 6. Poor line management and weak performance management are next on the list of conflict drivers, cited by 29% and 21% of respondents respectively. Curiously, HR practitioners in mid-sized organisations (that is, 5001,000 employees) are more than twice as likely to cite this as a cause of conflict, with 40% mentioning it versus 17% and 14% in smaller and larger organisations respectively. A smaller percentage (14%) blame heavy workloads and inadequate resources as key reasons for the conflict they encounter at work. There are some further interesting differences between the rank order reported by HR professionals in different industry sectors and in different sizes of organisation. A lack of openness and honesty, for example in promotions and appointments, is ranked number one by 23% of HR respondents in organisations with more than 10,000 employees, as compared with 3% in companies with between 250 and 500 people. A clash of values is cited as a major cause by 26% of those working in the voluntary sector, versus only 4% in the private sector.

These differences are particularly pronounced in HR professionals responses to the issue of bullying and harassment. In companies of between 250 and 500 employees, almost one in four (23%) cite it as a major cause of conflict, whereas it is raised by only 3% of those in organisations of between 5,000 and 10,000 people. HR respondents in the voluntary sector are more likely than those in the private sector to list it as a major cause (16% versus 9%). Likewise, those in the voluntary sector are much more likely to report taboo topics that cant be brought to the surface as a cause of conflict than any other type of organisation. It seems that HR practitioners in the voluntary sector have to be particularly adept at managing underlying interpersonal tensions in the workplace if they are to manage conflict effectively. With workplace conflict evidently an unavoidable part of working life, HR professionals clearly need to be confident in their own conflict management skills, but more importantly take action to ensure that managers have the skills and awareness to step in and intervene at an early stage as soon as the first signs of conflict emerge. The new regulatory framework for dispute resolution coming into force in the UK in 2009 will provide greater encouragement and opportunities for managers to resolve disputes informally before the formal disciplinary or grievance procedures come into play. The question is whether managers are willing to and capable of taking this on effectively, and how HR can best support them in doing so.

Leadership and the management of conflict at work

Table 6: The main causes of conflict at work

Respondents (%) rating as a most important source of conflict at work By sector Personality clashes and warring egos Poor leadership from the top of the organisation Poor line management Poor performance management Heavy workload/ inadequate resources Bullying/harassment Lack of openness and honesty, for example in appointments and promotions Lack of clarity about accountability/ ownership Lack of role clarity Clash of values Stress Taboo topics that cant be brought to the surface Perceived discrimination Poor selection of/pairing of teams Average 44 30 29 21 14 13 12 12 11 10 10 9 7 7 Manufacturing and production 39 28 32 22 14 16 10 16 13 13 13 6 0 8 Private sector services 47 30 28 20 15 9 12 14 11 4 15 10 7 7 Non-profit organisations 47 31 19 20 17 16 14 9 10 26 15 11 8 7 Public sector 41 31 29 22 17 10 14 10 10 9 6 8 7 5

By size of organisation Personality clashes and warring egos Poor leadership from the top of the organisation Poor line management Poor performance management Heavy workload/ inadequate resources Bullying/harassment Lack of openness and honesty, for example in appointments and promotions Lack of clarity about accountability/ ownership Lack of role clarity Clash of values Stress Taboo topics that cant be brought to the surface Perceived discrimination Poor selection of/pairing of teams

250 or fewer 49 31 23 17 11 8 12 11 10 11 7 10 0 0

251500 43 23 23 23 10 23 3 9 2 10 7 8 5 19

501 1,000 32 30 31 40 18 16 9 9 17 5 17 13 0 10

1,001 5,000 43 33 44 21 17 16 11 15 21 15 13 10 10 13

5,001 10,000 43 29 29 23 21 3 18 17 10 8 19 0 8 11

10,001 or more 40 32 38 14 16 10 23 16 10 7 9 8 15 5

Leadership and the management of conflict at work

Managing and preventing conflict

Managers should spend more time addressing underlying tensions at work and having informal one-to-one conversations with the people they manage, as well as providing greater clarity over what is expected of employees, if they are to manage conflict more effectively.

Separate research conducted by OPP in association with the CIPD into employee attitudes to conflict at work finds that the vast majority of employees surveyed have to deal with conflict at work, and as many as three in ten do so constantly or frequently. Given that the negative consequences of workplace conflict reported by employees in the research report, Fight, Flight or Face It: Celebrating the effective management of conflict at work, range from bad feeling and avoiding contact with colleagues to sickness absence and reduced productivity, the argument for taking decisive action is strong. But where do we start? It will not be news to most HR practitioners that, for best results, organisations need to lead change from the top team. Its a familiar story, too, to hear that people will only behave differently if they are given the skills to do so and shown the possibility of different, more positive outcomes.

Prevention beats cure Respondents were asked what would help managers be more effective in dealing with conflict. More than eight in ten HR professionals cite identifying and addressing underlying tensions more effectively before things start going wrong. Two-thirds (66%) also mention the need for managers to have more interaction with their reports, provide more clarity about whats expected and model the right behaviours. Improved consultation in day-to-day management activities is also regarded highly as a means of preventing and managing disputes in the workplace. See Table 7.

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Leadership and the management of conflict at work

Table 7: What managers should do to improve how they manage conflict at work (% of respondents)

Average Identify and address underlying tensions more effectively More informal one-to ones with the people they manage Improved consultation in day-to-day management of activities Provide more clarity about what is expected Provide more clarity over areas of responsibility Be a model of the right behaviours Provide counselling for employees under stress Act as mediators when conflict develops Raise the subject of possible conflict as part of business (rather than shying away from it or punishing it) Not let their own egos get in the way of relationships with colleagues Manage toxic individuals who create conflict at work more directly and firmly Provide improved worklife balance Nothing, conflict is an inevitable part of working life 81

Manufacturing and production 76

Private sector services 80

Non-profit organisations 81

Public sector 85

67

69

67

60

63

46 67 51 66 23 43

39 72 54 63 24 39

43 67 50 66 20 41

62 64 62 52 33 48 65 49 71 28 46

37

35

34

49

42

48

47

48

49

49

64

60

60

80

68

23 1

19 1

22 1

24 0

26 1

The employee perspective on conflict at work

HR practitioners understand that nipping problems in the bud is crucial if conflict is to be managed properly because of the difficulties of dealing with disputes that escalate to the point where the formal disciplinary or grievance procedure has to be used. However, according to the joint OPP/CIPD research report into employee attitudes and conflict, Fight, Flight or Face It: Celebrating the effective management of conflict at work, one in six employees (16%) reports that a recent workplace conflict was not quickly resolved or became more intense, which suggests that many disputes are not being resolved at an early stage. In the new scheme of things, the balance between preventing escalation and genuinely resolving issues will need to be carefully managed.

Leadership and the management of conflict at work

11

Training the trainer? More than 60% of HR practitioners report they have been trained in conflict management as part of their professional development, while 38% state that they have received training in the context of leadership development. One in three respondents have received conflict resolution training through coaching from their line manager and 23% have been on a formal training course delivered by an external trainer. About a third of (31%) HR practitioners use the Internet for information on conflict management, and 15% take advice from family and friends on how to handle conflict situations. This suggests that many are being left to their own devices to develop important skills, and there is evidence that this is particularly the case in smaller organisations where formal training may be seen as discretionary.

Practising what you preach When asked how the training in conflict management helped their own effectiveness, 65% state that they achieve more positive outcomes for both parties as a result, and 56% say that it helps them understand the other persons (or persons) perspective in a dispute. Slightly under half (46%) of HR practitioners surveyed say that it helps them support higher performance in their role. This raises the question of whether the training provided is sufficiently focused on the business impact of managing conflict effectively, rather than simply on improving interpersonal skills. Almost 85% of respondents rate themselves as managing conflict adequately or better. Private sector HR professionals are twice as likely to rate themselves as handling conflict very well compared with those in the public sector, although both numbers are low (10% versus 4%). Eight in ten respondents believe that conflict-handling

Just 8% have received no training of any description in managing disputes in the workplace. Organisations with 250 employees or fewer are least likely to have received any formal external training in conflict management or mediation, and most likely to seek advice outside work or from the Internet, compared with larger organisations. Perhaps less predictably, only 53% of HR professionals in organisations with more than 5,000 employees claim to have been trained as part of their professional development, as against 63% overall.

is either very or critically important as a management skill. Those working in organisations with more than 5,000 employees are substantially more likely to see it as critically important than those with fewer than 500 (49% versus 21%). When asked what training their organisations had provided for line managers in conflict management, 40% of respondents say that it is offered as part of leadership development. Just under a third of HR practitioners report that training in conflict management skills for line managers is provided through coaching from their manager. In all, 16% of respondents say training for line managers is provided

According to the OPP/CIPD research report into employee attitudes and conflict, Fight, Flight or Face It: Celebrating the effective management of conflict at work, training helps employees manage conflict more effectively by breeding confidence and comfort in handling conflict professionally, but under half (44%) have actually received any.

by a formal course delivered by someone within the organisation and a similar proportion say that training is provided through a formal course delivered by an external trainer. More than a quarter (27%) say that none is given, rising to 39% in smaller companies. See Table 8.

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Leadership and the management of conflict at work

Table 8: Training provided to line managers in managing conflict (% of respondents)

Average Formal course in conflict management, provided by a member of your organisation Formal course in conflict management from an external trainer Coaching from their line manager Informal peer-to-peer coaching As part of leadership development training Sponsoring relevant training outside work Mediation skills training Relationship management training Advice from Internet on managing conflict at work None 16

Manufacturing and production 8

Private sector services 15

Non-profit organisations 19

Public sector 25

16 31 22 40 4 8 9 7 27

11 36 23 38 4 2 10 4 31

15 33 25 37 3 3 11 5 30

24 24 19 24 5 8 3 13 30

21 26 20 51 6 23 9 9 19

Managers in the public sector are most likely to have experienced training as part of leadership development, according to HR professionals (51% versus 37% in the private services sector) and substantially more likely than others to have benefited from a formal course run internally (25% versus 15% in the private services sector) or mediation skills training (23% versus just 3% respectively). This indicates that HR in the public sector takes conflict management very seriously as a competence. However the survey shows that public sector organisations are most likely to deal with conflict continually or frequently and spend more management time on managing conflict. This raises the question of whether public sector managers focus too much attention on managing the effects of conflict rather than preventing conflict through effective people management and early intervention for positive outcomes. The survey finds that senior leaders are less likely than line managers to be trained in effective dispute

resolution, with a third (33%) of respondents admitting that none is provided. Just 38% of HR practitioners say senior leaders receive training in conflict management as part of leadership development programmes. About a fifth of respondents report that leaders receive conflict management training through coaching from an external professional coach and a similar proportion say their senior leaders receive such training by informal peer-to-peer coaching. In about one in six organisations training for senior managers in this area is provided through a formal course delivered by an external trainer. Public sector organisations are most likely to provide conflict management training for senior managers as part of leadership development programmes (46%) compared with the other main sectors. Larger organisations those employing 5,000 people or more are twice as likely to provide conflict management training in this way (52% versus 26% in smaller companies).

Leadership and the management of conflict at work

13

Line management competence and effective conflict management

The CIPD has produced a competency framework that sets out the positive behaviours managers need to exhibit to prevent and manage conflict in the workplace (see page 22). The framework is set out in the CIPD publication Managing Conflict at Work: A guide for line managers (2008). The framework is based on joint research conducted by the CIPD and the Health and Safety Executive exploring the links between line management behaviour and stress at work. The research involved interviews with nearly 400 line managers and employees, as well as focus group discussions with more than 60 HR practitioners. As part of this work the specific management competencies required to manage conflict at work were identified. These include dealing with conflict issues as they arise, having a participative management approach, monitoring team relationships, acting as a role model and with integrity, as well as using the official disciplinary process appropriately.

How managers are rated on managing conflict at work When asked whether they are satisfied with managers effectiveness in managing workplace conflict, however, three-quarters (75%) of HR practitioners report that they are not. More than half (59%) rate managers as being below adequate in handling conflict generally. This dissatisfaction is most pronounced in the public sector, with 64% rating their line managers as less than adequate in this critical area. Those working in HR in companies of more than 10,000 employees are significantly more likely than others to rate their managers more highly, with 19% stating that they are better than average or very effective (versus just 11% in companies with 250 people or fewer). HR practitioners are clear about what their organisations need to be doing differently to manage conflict more effectively. Half of all HR respondents state that managers must develop the right skills. A further 12% state the importance of conflict management training across the workforce and 10% cite the value of providing training across the organisation in the appropriate values, including dignity at work.

It should be encouraging for HR professionals to learn that 62% of employees believe that it is everyones responsibility to ensure that workplace conflict is managed effectively, and only 15% suggest that this sits with HR. Only 9% of HR respondents believe this to be true, but a larger number lay the responsibility at the door of managers and senior leaders. More than 80% of respondents regard conflict management as either very important or critically important as a management and leadership skill. Respondents were asked what would make the most impact on creating environments where all employees are treated with dignity and respect in the workplace. Nearly half of HR practitioners cite the establishment of clear organisational values based on dignity and respect at work as being the most critical intervention. This was followed by the example set by the board (17%), training for line managers in people management skills (15%) and training for all employees in dignity and respect at work. Just 7% of respondents identify the attitude and personality of the chief executive as being of central importance to creating positive work cultures that promote and support dignity and respect at work.

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Leadership and the management of conflict at work

Conflict management and the changing regulatory framework

There is no doubt that conflict at work is an increasing challenge for employers. In 200607 the number of individual employment disputes that resulted in employment tribunal cases increased to 132,577, compared with 115,039 for the previous year. The increasing number of claims can be partly explained by the publics increased awareness of employment rights and easier access to litigation. No win, no fee lawyers provide an avenue for disgruntled employees to lodge claims against their employer at no cost or risk to themselves. In addition, the introduction of new employment legislation in the last few years has added to the challenges faced by employers. Since 2003 new regulation has come into force that prohibits discrimination on the basis of age, sexual orientation and religion and belief, adding to existing laws outlawing discrimination against people for reason of their race, sex or disability. The CIPD has welcomed the evolving legal framework as a means of promoting fair treatment and equality of opportunity at work. Organisations that embrace this agenda gain evident business benefit in terms of their employer brand and ability to attract and retain talent. However, changing engrained prejudices and behaviours is not easy and increases the likelihood of disputes as employees gradually adapt and develop a better understanding of their new rights and responsibilities in the workplace. The challenges associated with managing conflict at work were further exacerbated by the introduction in October 2004 of the Statutory Dispute Resolution Regulations, which introduced minimum standard threestep disciplinary and grievance procedures. The principle behind their introduction was sound: to ensure that employers and employees make every effort to resolve disputes in the workplace. In practice, however, the statutory procedures have led to undue formalisation of how conflict at work is managed. In the CIPD 2007 survey report Managing Conflict at Work, employers said that the regulations have generated more formal disciplinary and grievance cases without reducing the number of employment tribunal applications made by discontented employees. Employers also said they were more likely to rely on external legal advice to resolve disputes since the introduction of the Regulations. In 2006 Michael Gibbons led a government-sponsored review of the Regulations and dispute resolution in the UK more broadly. He recommended that the statutory procedures be repealed and a new dispute resolution framework be set up with greater emphasis on informal, early dispute resolution and greater use of alternative dispute resolution approaches such as mediation. The new Employment Bill will scrap the statutory dispute resolution procedures, paving the way for measures designed to encourage earlier and less formal resolution of conflict at work. The Department for Business, Enterprise and Regulatory Reform is still finalising the replacement package of measures, which are likely to be introduced in April 2009. The new regulatory framework will include a revised Acas code of practice on discipline and grievance, and a revamped Acas helpline, which will offer prospective claimants clear, up-front advice on what bringing a claim involves and what their options are. The revised framework will offer greater flexibility in workplace dispute resolution and provide greater encouragement and opportunity for managers to resolve disputes informally before any formal disciplinary or grievance procedures come into play. However if this is to happen, organisations must develop their leaders across the business to ensure they are exhibiting the right behaviours to manage and prevent conflict. Organisations must also put in place clear policies and procedures underpinned by appropriate training for managers and employees, outlining organisational values and the rights and responsibilities of individuals.
Leadership and the management of conflict at work 15

The benefits of investing in

managing conflict at work

Improved team morale and productivity, as well as improved working relationships, are identified by respondents as the key benefits from effective conflict management.

Respondents cite a range of benefits that training in conflict management has delivered for the business. Almost a third report a reduction in the number of disciplinary and grievance cases, 28% think there has been an improvement in employee morale and 25% believe there has been an increase in team

performance and productivity. In all, 13% of respondents say conflict management training has helped reduce employee absence levels, 12% have seen a reduction in employment tribunal claims and 10% report a reduction in employee turnover. See Table 9.

Table 9: Benefits reported as a result of training or coaching in conflict management skills (% of respondents)

Average Helped improve team performance/ productivity Helped improve team morale Helped reduce absence levels Helped reduce employee turnover Reduced the number of formal disciplinary and grievance cases Reduced the number of employment tribunal claims received No impact Dont know 25 28 13 10 31

Manufacturing and production 27 25 16 11 33

Private sector services 28 31 14 12 33

Non-profit organisations 28 29 12 16 28

Public sector 21 24 11 9 31

12 7 23

9 6 27

14 6 25

7 3 29

12 9 14

16

Leadership and the management of conflict at work

HR practitioners also report significant benefits for individuals as a result of the delivery of conflict management training. Nearly half of respondents believe individuals are more comfortable and confident in handling conflict issues as they arise. More than a third of respondents say that training helped individuals achieve more positive outcomes for both parties when conflict occurs, while almost one in four report that conflict management skills training helped people perform better and avoid conflict in the first place. The survey found that if conflict is properly managed it can have positive effects in the workplace. When asked what good they personally have seen come of conflict, HR respondents point to a better understanding of

others, improved working relationships and better solutions to problems. Almost a third of respondents say they have seen the creation of more productive work environments as a result of effectively managed conflict. See Table 10. At an organisational level, one in three (34%) HR practitioners say that better teamwork is the single biggest potential gain as a result of the effective management of conflict, followed by higher employee engagement at 30% and improved productivity and greater internal efficiency at 12%. Respondents were asked to identify what they regard as the most significant potential benefit for their organisations from managing conflict effectively. See Table 11.

Table 10: Positive outcomes personally experienced by respondents as a result of effectively managed conflict at work (% of respondents)

Average Better understanding of others Increased motivation Better solution to a problem/challenge A major innovation/idea was generated Improved working relationships A more productive environment No positive benefits experienced 63 14 43 5 59 31 12

Manufacturing and production 67 16 44 2 66 29 11

Private sector services 61 15 44 6 60 30 12

Non-profit organisations 57 14 54 11 59 32 6

Public sector 67 12 39 4 53 33 13

Table 11: The biggest potential benefits for organisations that manage disputes in the workplace effectively. Respondents (%) identifying the following as the single most important potential gain for their organisation as a result of effective conflict management.

Average Higher engagement people would be more consistently committed to their work Improved productivity people would be more focused and results-oriented Better teamwork Enhanced retention Better customer service Greater internal efficiency Improved worklife balance 4 12 3 30 12 34

Manufacturing and production 30 11 37 1 13 2

Private sector services 28 11 37 3 9 4

Non-profit organisations 16 7 37 8 20 7

Public sector 34 13 28 5 13 4

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Conclusions

Conflict between individuals is an unavoidable part of working life. However how disputes are managed will determine whether there is positive resolution or damaging fallout for both employees and the organisation. Nearly half of HR practitioners responding to the survey report they manage conflict continually or frequently, spending an average of nearly 160 hours per year each, dealing with individual employment disputes. To a significant degree this conflict is caused by failure to manage interpersonal relationships effectively, poor leadership from the top of the organisation and inadequate line management. In addition threequarters of HR practitioners surveyed are not satisfied with managers effectiveness in handling workplace conflict. A problem identified by the CIPD 2007 Managing Conflict at Work survey report is that organisations are increasingly relying on their HR departments to manage conflict as managers shy away from tackling disputes in case they do or say something that might be held against them during any formal proceedings. This approach is counterproductive; by the time a dispute has escalated to the point where the disciplinary procedure has been triggered or a formal grievance lodged, opinions are often hardened. Worse, confrontational stances on both sides have developed that are very hard to change. To prevent this it is essential that HR practitioners ensure that managers at all levels have the skills, knowledge and confidence to identify and manage workplace disagreements at an early stage.

Poorly managed conflict is a major cost to the business, with half or more of respondents citing sickness absence, staff turnover and bullying and/or harassment as the consequences of dispute escalation in the workplace. Where training in conflict management has been delivered, HR practitioners identify a range of benefits for the business including improvements in team morale and productivity and a reduction in the number of formal disciplinary and grievance cases. Managing conflict at work for line managers is an integral part of good people management. Managers must be sensitive to how their employees are interacting, as well as how they are handling any increase in their workloads or organisational change. Managers need also to be confident in intervening at an early stage if there are signs that employees are in dispute, or there is any hint of bullying behaviour emerging, or of indications that anyone is suffering from stress. Managers are best placed to establish the cause of any problem as soon as it emerges and find a resolution before attitudes have hardened and confrontational stances have had time to develop. The CIPD has produced a managing conflict at work competency framework following research jointly sponsored by the CIPD and the Health and Safety Executive involving interviews with nearly 400 managers and employees, which identified the most important management behaviours for helping managers prevent and manage conflict in the workplace. See Table 12 on page 22.

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Leadership and the management of conflict at work

Management competencies for managing conflict at work Monitoring team relationships and managing the individual In any team there will be tensions or disagreements that arise from time to time, but managers should be aware of signs that serious disputes are developing and whether any individuals behaviour or performance is creating disharmony. Managers must also be aware that different personality types will deal with conflict in different ways. Some people will show their annoyance very quickly and openly by confronting someone as soon as their behaviour bothers them, or making their displeasure over work issues very clearly known. Other people may on the surface appear more laidback and tolerant but will be gradually getting increasingly unhappy with a colleague, their manager or a work problem until they lose their temper spectacularly, often over something quite minor that has proved to be the last straw. Some individuals will sulk and become withdrawn when they have a grievance or cannot cope at work. This is why managers should try and get to know the employees in their team or department as people and find ways to have regular informal conversations to help pick up on the first signs of future conflict. Dealing with issues Managers must have the confidence to deal with issues as soon as they arise. Managers must be sensitive to when banter becomes bickering or when teasing starts to have a hurtful edge. Managers should not ignore underlying tensions that are developing in their teams. It is vital that managers have regular, informal one-to-one conversations with the people they manage so that these kinds of issues can be aired naturally where possible. However managers must also be prepared to be proactive and initiate informal discussions if they think a problem is brewing. Participative approach All managers should have informal mediation skills to allow them to step in and resolve disputes before they escalate. Managers can help individuals in dispute identify what is at the root of their disagreement, what they need to happen to resolve matters or move forward and any changes or compromises theyre prepared to make in their behaviour or attitudes.

Use of official processes Of course, although all efforts should be made to resolve workplace conflict informally at an early stage, there will be many instances where formal disciplinary action should be taken. Managers must not shy away from using the disciplinary process where an individuals misconduct or performance demands it. Managers should ensure that all employees understand the formal disciplinary and grievance procedures that are in place, while emphasising that efforts will be made to resolve matters informally wherever possible when disagreements arise. Acting as a role model Managers must be seen to set an example by following the organisations policies and procedures, being consistent in how they deal with the team and not showing favouritism. As well as spelling out what behaviour is not tolerated managers should also demonstrate what positive behaviours employees should aspire to, both in terms of how they interact with each other and other people in the organisation, as well as customers, clients and the public. Integrity If managers are to create working relationships with the individuals that they manage which are based on mutual trust and respect, then they have to make sure they protect peoples privacy and respect confidential information. People who trust their line manager are more likely to talk to them openly if they are having difficulties, whether in the workplace or at home, that might lead to or contribute to conflict at work. Managers who are not even-handed in how they manage people will create resentment and disharmony in the workplace and undermine employee engagement. Managers that fail to treat all employees with the same importance are also more vulnerable to being accused of discrimination regardless of the motivation behind the behaviour.

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Table 12: Managing conflict at work: a competency framework for line managers

Examples of manager behaviour Competency Positive intervening quickly in cases of conflict dealing with conflict head on protecting employees by removing them from conflict situations removing a disruptive team member when necessary following up on conflicts after resolution communicating procedures and policies available to each employee use all available procedures to investigate incidents of abuse using official procedures to set an example of how seriously complaints are taken escalating issues to senior management where appropriate acting as a mediator in conflict situations speaking to each party individually bringing both sides together to communicate supporting both sides in a complaints procedure gather ideas of how to address the issue with the team being aware of tension and keeping it at a low level picking up on squabbles before they lead to conflict acknowledging when a team member is causing stress to others maintaining professionalism being clear about expectations of team conduct not tolerating backbiting in the team showing no interest in office politics or gossip keeping employee issues private and confidential treating all employees with the same importance Negative avoiding confrontation leaving conflicts between team members to sort themselves out not addressing bullying allowing a situation to develop before intervening stepping in to intervene in conflicts without understanding the issues allowing a disruptive team member to return to the team making a complaint official before seeking to resolve locally making a complaint official against the complainants wishes not following correct procedure in dealing with a conflict using red tape associated with procedure to discourage employees from making official complaints taking sides not giving equal time to each side of the conflict speaking to employees in a parent/child manner not listening to employee complaints

Dealing with issues Action orientation

Use of official processes

Participative approach Team focus Monitoring team relationships

n/a

Personal style

Acting as a role model

losing temper within discussions deliberately creating conflict in the team engaging in conflict with other managers engaging in conflict with employees making public where complaints have come from bullying employees threatening employees unfairly with disciplinary action

Integrity

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Leadership and the management of conflict at work

Background to the survey

In May 2008, a total of 8,278 HR practitioners were invited to take part in an online survey into leadership and how conflict at work is managed. The online questionnaire included 35 questions on the impact and causes of conflict in the workplace, as well as on how conflict is managed and the potential benefits of doing so effectively.

A total of 660 useable replies were received, creating a response rate of 8%. In all, 27.2% of responses were from manufacturing and production organisations, 39.7% of responses were from private services employers, 8.8% of responses were from the non-profit sector and public sector responses accounted for 28.2%.

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OPP is one of Europes leading business psychology firms. We work with multinational organisations, including more than half of FTSE 100 companies, in some 25 countries. Our products power the offerings of business schools and consultancies that use our tools with industry-leading companies, globally. OPPs world-class products and training, and our focus on quality and integrity, are the foundation for OPPs strong reputation. Our portfolio of brands include MBTI Step I, MBTI Step II, 16PF, FIRO-B, and TKI in which we provide qualification programmes and a range of continuing professional development offerings.

We explore leading-edge people management and development issues through our research. Our aim is to share knowledge, increase learning and understanding, and help our members make informed decisions about improving practice in their organisations.
Issued: October 2008 Reference: 4545 Chartered Institute of Personnel and Development 2008

We produce many resources on managing conflict including guides, books, practical tools, surveys and research reports. We also organise a number of conferences, events and training courses. Please visit www.cipd.co.uk to find out more.

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