Managing conflict in the workplace

The way your business handles conflict can have a big impact on your profits, as well as staff productivity and morale. Good management practices can help you avoid unnecessary conflict and deal with inevitable conflict in an effective and professional manner.

Workplace conflict is not uncommon, and it's not always a bad thing. Handled in the right way, it can even:

• identify problems you weren't aware of
• improve relationships, morale and productivity
• lead to employee growth and insight.

However, if you don't address conflict, it can become more serious, take longer to solve, and need more effort from everyone involved.

Common causes of workplace conflict

Knowing the most common causes of workplace conflict can help you plan ahead to prevent it and handle it if it does happen. The following are examples of factors that might lead to conflict. Consider which of these could become a problem in your workplace:

• broken agreements, or expectations that are not met
• a lack of necessary skills
• a lack of information or misunderstandings
• conflicting interests, values or ideas
• discrimination or harassment
• mental illness
• challenging personality types
• clashing work styles
• leadership issues
• not enough resources
• bad (corrupt or fraudulent) intentions.

The cost of conflict in your workplace

Most managers spend a significant part of their time dealing with grievances, and many employee performance problems are the result of strained relationships, rather than a lack of skill or motivation.

Unresolved workplace grievances will cost you and your business money through, for example:

• decreased productivity and work quality
• higher employee turnover and absenteeism
• lower workplace morale
• increased stress and health risks
• damaged business reputation
• potential legal expenses.

Develop a grievance-resolution process

Effective grievance (or dispute) resolution is an important part of good business management. Having a clear grievance-resolution process will:

• help your business avoid conflict and prevent unavoidable conflict from escalating
• help to save time and money
• show you're committed to promoting a healthy work environment
• ensure employees and managers know what to do when they have to deal with a grievance.

A grievance-resolution process can only be implemented successfully if it's supported by the business owners, management and employees. When you develop your grievance-resolution process, make sure:

• your employees and managers are aware of the process and are confident to use it
• it suits your business
• it works for all parties.

Steps to consider for your grievance-resolution process

Consider the following steps for your grievance-resolution process:

1. If possible and appropriate, the employee should try to resolve the matter directly with the people involved.
2. If it can't be resolved in this way, the employee should refer their grievance to their manager. The employee should inform the manager about the:
   • nature and details of the grievance
   • outcome the employee would like to see.
3. If it's not appropriate for the employee to try and resolve the grievance with their manager, or if it can't be resolved this way, the employee should refer the grievance higher up the management chain. To do this, the employee must inform the next level of management in writing about the:
   • nature and details of the grievance
   • outcome the employee would like to see.
4. The higher management level decides what action (if any) is appropriate and if the complaint needs to be investigated further. It then notifies the employee of the decision in writing.

It's important to set reasonable timeframes for each stage. Keep in mind, however, that the stages will depend on the type of grievance and the people involved.

Improve conflict resolution skills

People are better able to deal with conflicts in a professional, productive and positive manner if they:

• are trained in dispute resolution techniques
• possess good communication skills.

Arrange training

Help your employees and managers resolve problems early and avoid major disruptions to your business by developing their conflict resolution skills. You can:

• arrange for managers and employees to attend dispute resolution workshops and training
• learn more about training and developing your employees.

Find help and information

As an employer, you need to know your rights and responsibilities. Having the right information will give you confidence when settling workplace grievances and ensure you are meeting your obligations as an employer.

If you're not able to resolve a workplace conflict, seek professional advice and assistance.

Also consider...

• Learn more about HR policies and code of conduct.
• Find out more about employee performance reviews.
• Read more about the Queensland Law Society's mediation and alternative dispute resolution services.
• Find out about resolving disputes with other businesses.
• Read about how to communicate effectively for business.