Conflict Resolution Processes (DP IB Business Management)

Revision Note

Flashcards
Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

Resolving Conflicts

  • Conflict resolution is the steps taken by leaders and employees (or their representatives) to solve disagreements in the workplace

    • Successful conflict resolution usually requires the needs of both the business and its employees to be met

    • There is a range of ways to resolve workplace conflict

      • Conciliation & arbitration

      • Employee participation

      • Industrial democracy

      • No-strike agreements

      • Single-union agreements

Approaches to Conflict Resolution

Approach

Explanation

Example

Conciliation & Arbitration

  • Conciliation involves an independent mediator supporting negotiation and compromise between conflicting groups

  • Arbitration involves an independent mediator making a decision to resolve a dispute on behalf of conflicting groups

    • Non-binding arbitration decisions can be accepted or ignored by conflicting parties

    • Binding arbitration decisions involve a compromise that must be accepted by both parties

    • Pendulum decisions are a binding decision that makes no compromise - they declare entirely for one party

  • In 2019 Prospect union and airports company Hial invited the Advisory, Conciliation and Arbitration Service (Acas) to conciliate in a pay dispute

  • Air traffic controllers increased pay demands were at odds with Hial's refusal to increase wage budgets

Employee Participation

  • Employee participation involves giving authority to workers to take on responsibilities and have some level of authority in the organisation

  • Examples include teamwork, suggestion schemes, quality circles and worker panels

  • Animation studio Pixar has a successful culture of collaboration, which enables teams to work together on complex creative projects

  • Employees are encouraged to share ideas, actively participate in the creative process and make decisions

Industrial Democracy

  • Industrial democracy involves workers having significant involvement in the decision-making process

  • Worker-owned businesses and worker co-operatives have strong commitments to industrial democracy

  • Workers at the UK's John Lewis Partnership influence how the business is run through their elected representatives in local forums

  • Staff, known as partners, also receive a generous share of business profits

No-strike Agreements

  • An agreement with trade union members not to take strike action when workplace conflict arises

  • These agreements can improve the reputation of a trade union

    • Builds trust and increases the likelihood of businesses being willing to negotiate

  • An "Olympic truce" was declared following meetings between unions including the National Syndicate of Air Traffic Controllers (SNCTA) and the French Directorate General of Civil Aviation

  • Despite ongoing conflict, French air traffic controllers' unions agreed that no strike action would take place until after the 2024 Olympics in Paris 

Single-union Agreements

  • A business agrees to negotiate with one, rather than multiple, trade union organisations to resolve conflict

  • After refusing for many years, Starbucks started, in 2023, to negotiate with the Starbucks Workers United union

  • Early agreements include a $20 per hour starting wage, a 32-hour minimum working week for full-time employees and credit card staff tipping at all stores

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Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

Steve Vorster

Author: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.