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Developing Conflict Resilient WorkplacesA report for Victorian public sector leaders

Developing Conflict Resilient Workplaces:ReportDeveloping Conflict Resilient Workplaces:Report

Developing Conflict Resilient Workplaces:Report

Published2010byTheStateServicesAuthority,3TreasuryPlace,Melbourne3002.

©CopyrightStateGovernmentofVictoriaStateServicesAuthority2010.

TheVictorianGovernmenthasvestedtheStateServicesAuthority

withfunctionsdesignedtofosterthedevelopmentofanefficient,

integratedandresponsivepublicsectorwhichishighlyethical,

accountableandprofessionalinthewaysitdeliversservicesto

theVictoriancommunity.

ThekeyfunctionsoftheAuthorityareto:

• identifyopportunitiestoimprovethedeliveryandintegrationof

governmentservicesandreportonservicedeliveryoutcomes

andstandards;

• promotehighstandardsofintegrityandconductinthe

publicsector;

• strengthentheprofessionalismandadaptabilityofthepublic

sector;and

• promotehighstandardsofgovernance,accountabilityand

performanceforpublicentities.

TheAuthorityseekstoachieveitscharterbyworkingcloselyand

collaborativelywithpublicsectordepartmentsandagencies.

Developing Conflict Resilient Workplaces:ReportDeveloping Conflict Resilient Workplaces:Report

Developing Conflict Resilient Workplaces:Report

Contents

1.Introduction.................................................................... 2

2.Thepotentialforchange................................................... 4

2.1 Thecostsofconflict................................................ 4

2.2 WhereistheVictorianpublicsector?.......................... 6

2.3 Theroadtochange.................................................. 7

3.Buildingconflictresilientworkplaces.................................. 10

3.1 Anintegratedconflictmanagementmodel................. 10

3.2 WhatVictorianpublicsectorleaderscando............... 15

3.3 Beyondintegratedsystems–conflictresilientorganisations.................................. 18

Appendix A:PeopleMatterSurvey(PMS)data...................... 20

Appendix B:CaseStudy–Buildingabusinesscaseforchange..................................... 22

Appendix C:Specificattributesofaconflictresilientworkplace.................................................. 26

Developing Conflict Resilient Workplaces:Report 22 Developing Conflict Resilient Workplaces:Report

Developing Conflict Resilient Workplaces:Report 3

1. Introduction

In2008theStateServicesAuthority(SSA)embarkedonaproject‘Taking the heat out of

workplace issues’.ThecatalystwasthedataongrievancesandcomplaintsfromVictorian

publicsectoremployeesmadetothePublicSectorStandardsCommissioner(PSSC).In

additiontoanecdotalevidencesupportingthefarrangingnatureandnumberofconflicts,

theresultsofrecentPeopleMatterSurveys1consistentlyshowlowlevelsofconfidencein

theabilityoforganisationstoresolvegrievanceissues.

Theaimsoftheprojectwereto:

• establishthevalueofearly,non-adversarialinterventioninhelpingtoresolvedisputes

andconflictsintheworkplace;

• encourageandsupporttheuseofnon-adversarialapproachesacrosstheVictorian

publicsector;and

• serveasameansofembeddingpublicsectorvaluesandemploymentprinciplesinto

conflictmanagementmodels(inparticulartheconceptof‘fairandreasonable’).

TheprojecthassuccessfullystimulateddiscussionsacrosstheVictorianpublicsectorabout

howbesttomanageworkplaceissues.Morepeoplearetalkingtoeachotheraboutwhat

needstobedone,andhowtodoitdifferently;ideasarebeingshared.

Usinganactionlearningmodel,theprojecthascreatedanetworkofmorethan100people

fromapproximately40organisations.Networkmembershavebeenenthusiasticandactivein

makingincrementalchangesintheirworkplaces.TheTaking the heat out of workplace issues

projecthasalsoresultedinanimplementationguide:Developing conflict resilient workplaces.

Inbridgingtheoryandaction,itisanimportantcompaniondocumenttothisreport

Thisreportarguesthatbuildingconflictresilientworkplacesisanimportantopportunityforthe

Victorianpublicsector(the sector).

1 PeopleMatterSurveyreports;StateServicesAuthority–www.ssa.vic.gov.au



Conflictresilientworkplacessharecorefeatures:

• Theyhaveintegrated modelsformanagingconflict.Thesemodelsuseatriageorintake

assessmentsystemtoidentifytherootcauseofaproblemandsupportstafftodecideon

thebestwayforward.Formalprocessesareanimportantsafetynetinthissystem,butnot

theentrypoint.

• Inresolvingdisputes,theyfocusonpeople’sinterestsandneeds,aswellasrights.

• Staffareskilled and confidentinbeingabletodealwiththeirownworkplaceissuesearly,

withouttheneedtoaccessformalgrievancesandthirdparties.

• Actionistakenatdifferent levels:topromotestrongcommunicationandrelationships;

topreventthingsfromgoingwrong;andtoreactappropriatelywhenthingsdogowrong.

Somesectororganisationsaremakingashiftfromrefiningtheirformalgrievanceprocesses

(whichareaboutreactingtoconflictusingadversarialprocesses),topromotingstrong

relationshipsandcommunication.Theyareskillingtheirstafftopreventtheescalationof

conflict.Theyareusingadifferentlanguageandnewmethods–particularlyalternative

disputeresolutionprocessessuchascoachingandmediation.

Thisreportpresentstheevidenceaboutthecostsofconflictinorganisationsandthebusiness

casefortakinganewapproach.Itisaninvitationtotheleadersofthepublicserviceand

sectororganisationstodevelopstrategiesthatrecognisethelinksbetweenpromotingstrong

communicationthroughrelationshipbuildingandreducingtheriskofcostlyanddisruptive

workplaceconflict.Itdescribesanintegratedconflictmanagementmodelthatcanbeadapted

byallorganisationsacrossthe sector.Themodelrequiresstrongearlyintakeassessmentor

triagepractices,toidentifytherootcauseofadispute,andsupplementstraditionalgrievance

procedureswithappropriatealternativedisputeresolutionpractices.

Inparticular,thismeansorganisationsneedtoprovideresources–particularlyfortraining

anddevelopment.Employeesneedtobecomeskilledinusingarangeofalternativedispute

resolutionmodels(conflictcoaching,facilitation,mentoring,mediation)andinknowingwhich

approachisappropriatetowhichsituationandatwhattime.



2 Intheformofbullyingandharassment3 ComcareistheworkerscompensationinsurerfortheAustralianGovernment:www.comcare.gov.au4 AIM,ManagementToday,August2007

This section summarises current issues faced by Victorian public sector organisations in relation to workplace conflict. It assesses current approaches and apparent costs for dealing with employee grievances and conflict.

2.1 The costs of conflict

AnalysisofdataavailablefromPeopleMatterSurveysconsistentlyindicatesconcerninglevels

ofworkplaceconflict2,combinedwithlowlevelsofconfidenceintraditional,formalgrievance

resolutionprocesses.Thedataalsoshowsthatpeopleexperiencingworkplaceconflicthave

significantlylowerlevelsofjobsatisfactionandengagement.

Researchersandpractitionershavelongsuggestedthatunresolvedconflictisamongthe

largestreduciblecostinorganisations.EstimatessuggestthattheaverageVictorianpublic

sectorstressclaimis$110,000.Thisisconsistentwiththeaveragecostreportedbythe

AustralianGovernment’smedicalinsurer,Comcare3.TheAustralianInstituteofManagement

(AIM)hasreportedthatbetween30and50percentofamanager’stimeisspentmanaging

workplaceconflict4.

Thecostsofunresolvedconflictinclude:

Individual distress: Mentalandphysicalwellbeing,absenteeism,countercultureactivitiesand

ongoingdissatisfaction,irrespectiveofresult.

Broken relationships:Lostproductivity(‘presenteesim’),lostopportunities,decliningtrustand

moraleandincreaseddisputation.

Organisational resources: Casemanagement,recruitmentandretention.

Ascanbeseenfromtheabovethecostsofthisunresolvedconflictaremany,rangingfrom

individualdistress,tobrokenrelationshipsandstrainedorganisationalresources.


2. The potential for change



5 WorkSafeVictoria(2007)Stresswise – Preventing Work-related stress: A guide for employers in the public sector6 StateServicesAuthority(2008) Taking the Heat out of Workplace Issues Discussion Paper


Weknowthatagrowingproportionofworkerscompensationclaimsarebasedoninjuries

relatedtostress,andmuchofthatstressisassociatedwithunresolvedconflict5.(Figure1)

Whiletheresearchdoesnotspecificallyrefertothetermworkplaceconflict,itisreasonable

toassumethesefindingsarerelevanttotheissueofworkplaceconflict.Also,whiletheresearch

didnotdifferentiatebetweenconflict-relatedstressorsrelatingtocontactwithclientsand

co-workers,thereisclearevidencethatworkplaceconflictcanresultinsignificantcosts.

Figure 1: Workers compensation and stress

Research undertaken by WorkSafe Victoria has found that:

• Work-relatedstressisthesecondmostcommoncompensatedillness/injuryinAustralia.

• Since2001,stressrelatedinjurieshavecontinuedtomakeupagrowingproportion

ofworkerscompensationclaims(increasingyeartoyearfrom8%in2000-01to

10%in2004-05).

• InVictoria,work-relatedstress,particularlyinthepublicsector,hasinrecenttimes

presentedagrowingpercentageofworkerscompensationclaims.

• Publicsectorworkersaccountforadisproportionateshareofworkrelatedstress

(20%ofclaims,comparedto7%ofclaimsbyworkersinothersectors).

• Roughlydoubletheamountofcompensationispaidtoworkerssufferingfromstress,

comparedtootherinjuries.

• Of13identified‘keystressrisks’,2(‘bullying’and‘interpersonalrelationships’)were

inthetop5.

ManyoftheissuesresultingincomplaintsandgrievancestothePublicSectorStandards

Commissionerneednothaveescalatedintounresolvedconflict.Analysissuggeststhat

manyoftheunderlyingissuescouldhavebeenresolvedthroughearlyinterventionand

informalapproaches6.

Duringthecourseoftheproject,itwasidentifiedthattheneedtomanageorganisational

risk,aswellasrisktoanindividual,isofhighimportance.Thisisillustratedinthecasestudy

‘Building a business case for change’atAppendixB.



2.2 Where is the Victorian public sector?

In2001,amajorreportonconflictmanagementsystemsarguedthatorganisationstypically

evolvethroughfourphasesintheirapproachtoworkplaceconflict 7asshownbelow.

1. Nodefinedinstitutionalprocessesfordisputeresolution.

2. Rights-basedgrievanceproceduresareintroduced.

3. ‘Interestbased’processes(usuallyinvolvingmediation)supplement

rights-basedprocesses.

4.Focusmovesbeyondrespondingwithgrievanceprocessesandmediationto:

• analysingandrespondingtorootcausesofconflict;and

• strengtheningrelationshipsthroughpositivecommunication.

The sectoriscurrentlyestimatedtobeatphase2.

Thegeneralconsensusofprojectparticipantswasthatthe sectorislargelydrivenbya

rights-basedframework.Participantspointedtotherelativelyheavyuseofthe‘reviewof

actions’provisionsinThe Public Administration Act 2004andvariousenterpriseagreements

asevidence.

Asaresult,organisationshavetendedtodeveloparelianceongrievanceproceduresand

arbitration,adjudicationandappellateprocessestodealwiththenumberandrangeofcases.

Theseapproachesallowforathirdpartytodeterminewhoisinthewrongandtoimposean

officialresolution.Itshouldbenotedhowever,thatsomeorganisationshavecommenced

usingmediationasameansoftryingtoresolveworkplaceconflicts.

7 Designing Integrated Conflict Management Systems: Guidelines for Practitioners and Decision Makers in Organizations(2001)CornellStudiesinConflictandDisputeResolution(No.4),MartinandLaurieScheinmanInstituteonConflictResolution,SchoolofIndustrialandLaborRelations&theFoundationforthePreventionandEarlyResolutionofConflict(PERC),CornellUniversity.



Thediagrambelowprovidesasnapshotofsomeoftheelementsofcurrentcomplaint

handlingsystems.

2.3 The road to change

TheTaking the heat out of workplace issuesprojectstartedfromthepremisethatmostconflict

casescouldbehandledwithfewerresourcesandwouldgeneratelessriskiforganisationshad

bettersystemsforhandlingdisputesandconflict.

Thereisastrongbusinesscasetosupportthisview–althoughquantifyingactualandpotential

costsisnotasimpletask.

Manylargerorganisationsrecordthenumberofformalgrievancesandthetimerequiredto

addressthem.However,othercostsarelesseasilymeasured:presenteeism,absenteeism,

resignation,propertytheftanddamage,illnessrelatedtochronicstress,andtheeffectsofpoor

decisionmaking.

Despitethesechallenges,feedbackfromthosewhoareusingnewmodelsformanaging

conflictlikethatonthefollowingpagesuggeststhereisconsiderablevalueinofearly,

non-adversarialmodelsofinterventionsuchasmediationandfacilitation.

Anecdotalevidenceofgrievances

cloggingsystems

Rightsbasedcultures

Plethoraoflegislation&regulations

Myriadofpoliciesandprocedures

Reviewandevaluationofsystems

ispiecemeal

Absenceofdatarecostofsystem

Current Situation

Figure 2: Current approaches to conflict management in the Victorian public sector



Money spent on coaching makes business sense

WhenImovedtoanewworkplacerecently,Ifoundaconflictcasethathadbeenfestering

forthreeyears.IimportedamethodologybasedonconflictcoachingthatI’dused

successfullyinmypreviousworkplace.

Iinitiallycostedtheresourcesthathadbeenconsumedonthiscaseduringthepreceding

threemonthsbeforeIusedthecoachingmethodandidentifiedthattwothirdsofthecost

ofthiscasehadbeentakenupwithinternalresourceconsumption(meetings,written

updates)whichconsumedtimebutachievednothing.

Incomparison,nowonethirdofthecostsarebeingspentonexternalconflictcoaching.

Thisappearstobeaddressingandrectifyingtheissueatafractionofthecostandrisk.

Usingnon-adversarialapproachescansubstantiallyreducetheriskofdamaging

relationships,thecostassociatedwithcasemanagementandtherippleeffectsofstaff

turnover,productivitylossandmoraleissues,bydealingwithissuesmuchearlierinthe

piece,ratherthanlettingthemfester.

Projectparticipantfeedback,2009.



Someorganisationshavefoundhardevidencetosupportthebenefitsofthisnewapproach.

Oneorganisationsaved$50,000 a monthbychangingitsconflictmanagementmodeltoone

thatfocusedonalternativedisputeresolutionprocesses.

Difficultcaseswereaddressedusingconflictcoachingandmediation–thisresultedincases

beingresolvedmorequickly,usedfewerresourcesandloweredtheriskofexpensivelitigation.

Theorganisationestimatedarelatedriskreductionof$150,000 a month.

The case study at Appendix B describes one organisation’s modelling and findings in more detail.

Anapproachbasedsolelyon‘rights’andformalgrievancessuchastheoneillustratedin

Figure2,cancreateparticularwaysofthinkingaboutconflictandpersonalresponsibility:

• The‘armslength’approachcaneasilyreinforcetheideathatsomeoneelseisresponsible

forthecauseoftheproblem,andsomeoneelseisresponsibleforfixingtheproblem.

• Often,affectedpartiesarenotdirectlyinvolvedinthe‘resolution’process.

• Becauseofthefocuson‘rights’,underlyingandsystemicissuesarenotalwaysaddressed.

Paradoxically,thismeansthatthecurrentsystemsusedinthe sectorarebothunderusedand

overused:underused,becausepeopleavoidwhattheyperceivetobeanunfair,cumbersome

systemthatmightbringnegativeconsequences;andoverused,becauseweknowthat

unresolvedconflictsarecloggingthesystem.



3. Building conflict resilient workplaces

A conflict resilient workplace does not rely solely on formal dispute processes, but emphasises positive relationships and strong communication so that conflict is managed early, at the lowest possible level by the people directly involved, and with the most appropriate response.

Itusesconflictmanagementsystemsthatintegratestrongdiagnosis(‘whatisthecauseofthe

problem?’)withappropriatedecisionmakingaboutthebestresponse(‘isthisbestmanaged

throughadjudicationbyathirdparty,orcanweresolvethisbetterthroughmediation,a

courageousconversationorfacilitation?’).

Apracticalandachievablefirststepforsectororganisationsistobuildanintegratedconflict

managementmodel.

3.1 An integrated conflict management model

Eachworkplacehasitsowncultures,processesandtraditions:thismeansconflictmanagement

systemswillinevitablylookdifferentineveryorganisation.However,asFigure3shows,an

integratedconflictmanagementmodelhastwokeyfeatures.

First,itisalwaysunderpinnedwithastrongintakeassessmentsystem(triage,seeFigure3)

whenissuesareraised.Second,itencouragesalternativedisputeresolution(withastrong

focusoninterestsandneedsofthepeopleinvolved)approaches.



Integrated conflict management model

Medical/LegalReferral

FormalComplaint

ADRApproaches:

Coaching,Mediation,Facilitation

TriageIdentifyIssues

Noselfresolution?

Supportedself-resolution

Figure 3:



Themodelretainsaplaceforformalgrievanceprocesses–buttheyareusedonlyforspecific

disputessuitedtoformalcomplaints,orasasafetynet.

An integrated conflict management model

• Providesearlyinterventionthroughatriageorcollaborative intake assessment

systemwithmultiple entry pointsforeaseofaccess.

• Identifiesroot causesofproblemsinadditiontosymptoms,andsharesthisinformation

tocreatechange.

• Usesalternative dispute resolution methods(feedback,conversation,mediation,

facilitation)thatpreserveworkplacerelationshipsby;

– addressingtheneeds and interestsofparties–notjusttheirrights;and

– encouragingselfresolution,ratherthanemphasisingaformalprocess.

• Incorporatespreventativeactionssuchas training and awareness raising.

Where does this leave formal grievance processes?

Puttingresourcesintoalternativedisputeresolutionmodelsdoesnotdoawaywiththeneedfor

grievancestructures.

Forexample,certainsituationsdemandformalprocessesbeused:allegationsofcriminalor

seriousmisbehavior;situationswherethereisalackofgoodfaithandpartieswon’tcooperate;

situationswherepublicpolicy,proceduralorlegalissuesarise,orwherethewelfareof

individualsisthreatened.

Thereiswidespreadacceptance,andalegalrequirement,thatorganisationsmusthavefairand

effectivesystemsforhandlinggrievances.Ifsomeoneclaimsthatalaw,standardorguideline

hasbeenbreached,theremustbeaneffectiveandfairsystemtotestthatclaim.Ifagrievance

handlingsystemisnotperceivedasprocedurallyfair,itwillitselfgenerategrievances,and

becomepartoftheproblem.

Aconflict-resilientworkplaceusesadjudicatedgrievanceprocesseswhentheyarenecessary;

butpreventsconflictescalatingintoformalgrievanceswhenearlyresolutionispossible.



Alternative dispute resolution

Alternativedisputeresolution(ADR)processesandtechniquesareusefulinmanagingarange

ofsituationsfromindividualperformancetotheintellectuallychallengingoremotionallycomplex

issuesthatcanariseinworkingrelationships.

Themethodsareinformal,voluntaryanddon’tincludelitigation.Whiletheyareusually

structured,theycanbenon-adjudicatory.

Importantly,theyarebasedonfourkeytenets,that:

• thebestdecisionmakersinadisputeareusuallythepeopledirectlyinvolved;

• toeffectivelyresolveadispute,peopleneedtohearandunderstandeachother;

• disputesarebestresolvedonthebasisofpeople’sinterests and needs;and

• disputesarebestresolvedattheearliestpossibletimeandatthelowestpossiblelevel.

Figure 4: Examples of ADR approaches

Commonly Used Processes To Promote Constructive Relationships

Feedback Offeringobservationsorhelpingsomeonetoreflect.

Conversation Peopletalkingtoreachsharedunderstandingand(possibly)commit

toaction.

Mediation Athirdpartyhelpingtofindmutualunderstandingandoptimalaction.

Facilitation Athirdpartyhelpingagrouptoachieveacollectivegoal.Thiscould

involveworkplaceconferencingorwhatisknownasappreciativeinquiry.

Coaching Athirdpartyworkswithanindividualtohelpdevelopinsightsand

clarityaroundresolvingdisputesandconflict.



Using the best process for the situation

Thefollowingtabledistinguishesarangeofdifferentsituations,andpresentscorresponding

structuredprocessesforrespondingconstructively8:

Figure 5: Choosing the best process option

Situation Appropriate processes

Disputed accusation Investigation+adjudication

Managers needing to respond

appropriately to disputes and conflicts

Conflictcoachingandother

managerialskills

Dispute between two parties Mediation(assistednegotiation)

Dispute or potential dispute

between several parties

Facilitation(problem-solving,strategic

planning,appreciativeinquiry)

Specific conflict with no dispute

or many disputes

Groupconferencing,

transformativemediation

General conflict across

an organisation

Managedchange

Training,coaching,mediation,facilitation

8 AdaptedfromD.B.Moore(2003)David Williamson’s Jack Manning Trilogy: A Study Guide, Sydney:CurrencyPress.



3.2 What Victorian public sector leaders can do

Victorianpublicsectorleaderscanencouragemanagersandteamstousethecompanion

guidetothisreport:Developing Conflict Resilient Workplace – a guide for managers and

teams.Thisisareviewtooltohelpmanagersandteamsmovetowardanintegratedconflict

managementmodel.

Aswell,theycansupporttheuseofalternativedisputeresolution(ideally,aspartofan

integratedmodel),coordinateeffortstoimproveconflictmanagement,andmeasuretheactual

andpotentialsavingsproduced.

Support the use of alternative dispute resolution

Staffmustbeskilled,orexpertsbroughtin,ifalternativedisputeresolutionistobemore

widelyused.

Todothis,organisationscan:

• promoteskillsdevelopmentaspartofaleadershipcapabilityframework(specifically,skills

infeedback,conversation,mediationandfacilitation);

• developprotocolsforeffectivecoaching;communicatethebenefitsofadoptingacoaching

approach;trainstaffinrelevantmethods;buildcoachingintomanualsandproceduresto

embedaspartofanorganisation’sresponsestohandlingcomplaintsandotherissues;and

• createlistsofinternalandexternalconsultantswhocanworkascoaches,mediators

andfacilitators.



Coordinate efforts

Often,differentorganisationaldivisionsareresponsiblefordifferentpolicies,andareseento

‘own’thosepolicies.Forexample,OccupationalHealthandSafetymaybeseento‘own’

policiesconcerningworkplacediscriminationandharassment.Thisisacommonstructural

impedimenttodevelopinganeffectiveconflicthandlingsystem.

‘Grievances’and‘disputes’mightbemanagedbydifferentdivisions,encouragingthequestion:

‘inwhosein-traydoesthisbelong(whoownsthiscase)?’ratherthan‘what’sthenatureofthe

dispute’and‘whoisinvolved?’.

Coordinationwillbeneededtofoster common principles and practicesamongdivisions

suchasHumanResources,OccupationalHealthandSafety,IndustrialRelations,Employee

Relations,andOrganisationalDevelopment.

Coordinationisalsorequiredtoproduceacommon system of case management,andto

monitorcasesacrosstheorganisation.

Organisationalleadersneedtocoordinateanefforttoarticulateclear,concise organisational

aspirations,todefinetheroleofdesignatedcasemanagers,andtoidentifytherequisite

trainingforteamsandmanagers.

Movingtowardsafullyintegratedconflictmanagementmodelwithafocusonstrong

communicationsandrelationshipswillneedlonger-termresourceplanning:therightpeople,

therightprograms,therightmessagesandtherightbudget.



ThetablebelowisbasedonideasinDesigningIntegratedConflictManagementSystems(2001).

The right people

• Acommonvisionfrommanagers

• Arepresentativebodyoverseeingthesystem

• Independentthirdpartyadvisorsandfacilitatorswithintheorganisation

• Acoordinatingofficeormechanism

The right programs and processes

• Mechanismsformonitoringandevaluatingthesystem

• Appropriateprogramsoflearninganddevelopment

• Policiesandpracticesthatareconsistentwithaphilosophyofconflictresilience

• Incentivesembeddedinorganisationalsystems:performanceappraisal

andmanagement

The right messages

• Communicationstrategy

The right budget

• Costallocationthatencouragesearlyandeffectiveconflictresolution

• Resourcestoimplementandcoordinateaneffectivesystem



Monitor success

Thebusinesscaseforeffectiveconflictmanagementandpreventionneedstobebetterdeveloped

andarticulatedacrossthesector.

Effectivemonitoringandmeasuringwilltellusifanewapproachtomanagingconflictrepresents

abetterreturnoninvestmentthanafocusongrievanceprocesses.

Howtopresentabusinesscase(projectedsavings)andhowtomeasuresuccessfollowing

interventions,alsoremaintwoofthebiggestchallengesforindividualorganisations.

ThecasestudyatAppendixBofthisreportdescribesonemodelthathasbeenusedtoquantify

andmeasuresuccessattheorganisationallevel.TheSSAresourcesonpeoplemetrics9are

alsorelevant.

3.3 Beyond integrated systems – conflict resilient organisations

Sectororganisationswithastrongintegratedconflictmanagementsystemwillrespondwell

toconflictbytakingtheheatoutofworkplaceissuesearly.

Onceanorganisationbeginstoidentifyrootcausesofconflictinindividualcases,managers

canalsolookforpatternsacrossmultiplecases.Theyask:

• Whatsortofearlyinterventionscouldresolvethegreatestnumberofproblems?

• Whatcouldhavepreventedasituationfrombecomingproblematicinthefirstplace?

• Whatwouldittakeforpeopleinthisorganisationtohavemoreconstructiveinteractions,

workingrelationships,andgroupdynamics?

• Whatwouldittaketoshiftorganisationalculturebeyondrespondingto,andpreventing,

disputesandconflict?

• Whatinitiativeswouldpromoteanorganisationalculturecharacterisedbypositive

communicationandworkingrelations?

Whenconflictmanagementistrulyintegratedinorganisations,theresultcanbedescribedless

asanintegrated conflict management systemandmoreasasystem to improve communication

and workplace relations.Thissystemwillincludedisputeandconflicthandlingcomponents,but

themainfocuswillbeonbuildingandstrengtheningrelationships.Theresultwillbeaconflict

resilientorganisation.

9 Aguidetopeoplemetrics;Adictionaryofpeoplemetrics



Figure6depictsaconflictresilientworkplace.AppendixCdescribestheattributesofa

workplacewithreferencetothethreelayersofthe‘conflictresilientworkplacepyramid’.

Figure 6: The conflict resilient workplace pyramid

Building & strenthening workplace relationships

Collaborative problem-solving

Grievance procedures

Thisdiagramreflectsan

environmentthatisnolonger

dominatedbyaheavyreliance

ongrievanceprocedures.

Atthetopofthepyramid

(grievanceprocedures)formal

processesareemployedonly

inrespectofallegationsof

criminalorseriousmisbehavior;

wherethereisalackofgood

faith;situationswherepublic

policy,proceduralorlegal

issuesarise,orwherethe

welfareofindividuals

isthreatened.

Thenextstagedenotesactivityinanintegratedmodel(offormalandalternativedispute

resolutionpractices),characterisedbyintakeassessmentpracticesandanacknowledgment

thatresponsibilityforsolvingconflictisonesharedbetweenpeopleinvolved(collaborative

problem solving).Methodsusedforresolvinginterpersonalconflictsareusuallythose

mentionedinFigure4:feedback,conversation,mediationandfacilitation.Typicallythefocus

inthisareaisfocusedonpreventingthingsfromgoingwrong.

Thepyramid’sfoundationlevelsignifiesthattheshiftincultureischaracterisedbyone

wherethedominantfocusisonconstructivecommunication(building and strengthening

relationships)tohelpthingsgoright.

Thereareaconsiderableopportunitiesforthe sectortotaketheheatoutofworkplace

issuesashighlightedthroughoutthisreport.Mostarerelativelysimpleprocessesto

implement.Toachievesignificantimprovements,reducecostsandprovideearlyresolution,

awhole-of-organisationchangeprogramisstronglyrecommended.Thecompaniondocument

tothisreport,‘An implementation guide to developing conflict resilient workplaces’provides

astep-by-stepmethodology.Wewelcomeyourfeedbackonthisreportandarehappyto

providefurtherinformationandassistance.



Appendix A: People Matter Survey (PMS) data

FouroftheelevenPMSstatementswiththelowestpercentageagreementrelatedtothe

‘reasonableavenueofredress’employmentprinciple.Thesestatementswere:

• “Mymanagerissufficientlyskilledtoresolvegrievances.”

• “Inmyorganisationthereisconfidenceintheproceduresandprocessesfor

resolvinggrievances.”

• “Theproceduresandprocessesforresolvinggrievancesarewellunderstoodin

myorganisation.”

• “IamconfidentthatifIlodgeagrievanceIwouldnotsufferanynegativeconsequences.”

Figure 7: What our employees say

Analysisofemployeesurveyresultstellusthat:

• Individualswhoexperience,orsimplywitnessworkplacebullyingwillbe

significantly less likelytoexperiencejobsatisfaction,orasenseofprideinworking

fortheirorganisation.

• Thesameindividualsaresignificantly more likelytothinkaboutleavingtheircurrent

organisationandtheVictorianpublicsector.

• Fellowworkerswere significantly more likelytobeidentifiedasengaginginbullying

behavioursthanimmediateormoreseniormanagers,orclients/membersofthepublic.

Source: People Matter Survey, State Services Authority, 2008



Whereemployeesprovidedtheirownadditionalcommentsinsubmittingsurveyresponses,

oneofthemainsubjectsofnegativecommentswastheavenuesofredressprinciple.Although

formalpoliciesandprocessesareinplaceinmostcases,theissuesseemtobemorerelatedto

howtheyactuallyoperateandtheoutcomesofsubmittingcomplaints.

PMSresultsalsoincludeevidencetosupportthegoalofmovingbeyondafocusongrievance

andmediationprocesses,toafocusonpositivecommunication:

Employeeswhounderstoodorganisationalproceduresandprocessesforresolvinggrievances

weresignificantlymoreconfidentinthoseprocesses.Theywerealsolessconcernedaboutany

negativeconsequencesassociatedwithlodgingagrievance.Thereportrecommendedstaff

trainingorbriefingstoraiseawarenessandunderstandingofgrievanceprocessesasameans

ofimprovingemployeeconfidenceintheapplicationoftheavenuesofredressprinciple.

Thereportalsonotedthatthetypeofperformancefeedbackreceivedalsohasapositive

impactonemployees’perceptionsoftheapplicationoftheemploymentprinciples,particularly

inrelationtotheavenuesofredress,andthefairandreasonabletreatmentprinciples.Analysis

showedthatrespondentswhoreceivedinformalfeedbackonperformanceexpressedmore

positiveopinionsontheapplicationoftheseemploymentprinciplesthanthosewhoreceived

onlyformalfeedback.



Appendix B: Case Study – Building a business case for changeHow can staff in an organisation make a persuasive business case for change? How can they show that the organisation will actually save money by spending appropriately on dispute handling processes and conflict management systems?

The following methodology was used by a public education organisation in Victoria as part of the business case for change.

The problems identified

• Employeeswere‘forumshopping’acrossmultipleareassuchasOH&S,StaffEquity,and

EmployeeRelationswhentheyhadaconcern:thiswasblurringtheissuesandprocesses.

• Chargesof‘bullying’werearisingfrommanagers’attemptstodiscussroleresponsibility

andaccountability.

• Managersfeltunder-skilledandinexperiencedtoaddressconcernsaboutindividual

performance,andtomanagedifficultiesinworkingrelations.

• Significantnumbersintheworkforcewereestimatedtosufferalevelofpsychologicaldistress.

• Staffpreventingconflictwereunder-resourcedcomparedtothosereactingtomore

developedproblems.

• Thepotentialrisktotheorganisationandtheindividualwasneverquantifiedorfactored

intoanyremedialstrategies–exceptbychance.Thetruecostofcasemanagement

(directandindirect)washidden.



A model for estimating risk and cost

Inanefforttoquantifythefinancialcostandriskassociatedwithexistingconflicthandling

systems,theorganisationusedasimplequadrantanalyticaltool.

Figure A: Analytical tool

lowcomplexity

highrisk

lowcomplexity

lowrisk

highcomplexity

highrisk

highcomplexity

lowrisk

Thequadrantsdistinguishcasesthatpresenta

lowrisktotheorganisation,fromthosethat

presentahighrisk(verticaldimension).Theyalso

distinguishcasesthatarerelativelysimple(and

thereforerelativelylowrisk)fromthosethatinvolve

agreaterrangeofissuesandaremorecomplex

(horizontaldimension).

The result: an estimated cost exposure (risk) of close to five million dollars

Theorganisationreviewed90casesandestimatedaveragecostexposurebasedoncase

complexityandtheriskofadditionalpotentialcosts.Theelementsusedtocalculatefixedand

potentialcostsaresummarisedinFigureB.

Figure B: Elements used to calculate fixed and potential administrative costs

Fixed Internalstafftime

(Budgeted)costofexternalserviceproviders

Potential Litigation

Fines

WorkCoverpremiums

Restorativeconsultingservices

It is important to note that the analysis did not take into account ‘hidden’ costs such

as reduced productivity, time lost or staff turnover.



Figure C: Results of analysis (average per case)

low complexity/high risk

fixedcosts: $28,000

potentialcost: $40,000

totalexposure: $68,000

31%ofcases(n=28)

38.4%oftotalexposure(allcases)

high complexity/high risk

fixedcosts: $55,000



24.5%ofcases(n=22)


low complexity/low risk

fixedcosts: $800



30%ofcases(n=27)


high complexity/low risk

fixedcosts: $2,000



14.5%ofcases(n=28)




Key changes following analysis

Theorganisationmadekeychangestoaddresstheidentifiedproblemsasdescribedon

page10suchas‘forumshopping’,lackofroleclarity,inadequatestaffnumberstodealwith

conflictpreventionandthelike.Itwasrecognisedthattheseissueswerenotonlyhindering

effectiveconflictresolution,theyweredrivingassociatedcostsandrisks.Thefollowing

changeswereconsequentlyputintoplace:

• HRadvisersincreasingthenumberofearlierinterventions;

• HRadvisersdevelopingtheirskillsinconflictresolutionmethods;

• HRadviserscoachingandmentoringdisputingparties;

• encouragingselfresolution(withsupportasneeded);

• moreinteractionandcommunicationbetweenHR‘areas’;

• extendingthepoolofexternalresourcesforhelp;

• planningashifttooneconsolidatedHRunit;and

• traininganddevelopmentformanagersinconstructivecommunicationmethods.

Cost savings

Followingtheintroductionofthesechanges,theorganisationsawatrendawayfrom

complexcases.Withmoreeffectivecasemanagement,theorganisationestimateda direct

(fixed cost) saving of $50,000 per monthandanestimatedreductioninpotentialriskof

threetimesthatamount.



Appendix C: Specific attributes of a conflict resilient workplace

The foundation level – promoting a culture of communication to help things go right

Attribute Demonstrated By

Collaborative problem

solving is integrated

into corporate culture

Decisionsaremadebythepeopledirectlyinvolved

Managementdoesnotmandateanswersorsolutionswithoutconsultation

Peopleareactivelyencouragedandsupportedtoresolvetheirownissues

Constructive

communications are

promoted

Peoplelistenandseektounderstandbeforetheyseektobeunderstood

Constructivecriticismiswelcomed

Staffaretrainedincommunicationsandconflictresolution

Organisationseekstolearnfromitsmistakes

Interest-based(notrights-based)languageandbehaviourisevery

daypractice

Different styles are

accepted and tolerated

Relationshipsbetweenareasaresupportiveandcooperative

Leaders ‘walk the talk’ Theypracticeopenandhonestcommunication

Theyseparatetheproblemfromtheperson

Theyseekearlyresolutionofconflict

Theychampioneffectiveconflictmanagement(andaresincere)

Corporate mission,

vision and values

are consistent with a

conflict management

philosophy

Organisationhastakenstepstoensureitssystemsandstructures

willminimiseconflict

The following three tables, draw out specific attributes of the levels in the conflict resilient workplace pyramid.



The middle level – preventing things from going wrong


We do things to address

conflict before it escalates

Trainstaffandmanagersonhowtorespondappropriately

atfirstinstancetocomplaintsandissues

Collectfeedbackaboutissues

Expectinteractionbetweenmanagersandstaff(not

waitinguntilperformancereviewtimebeforegivingor

gettingfeedback)

An intake assessment (triage)

process helps determine the

best way to resolve disputes:

conflict coaching, mediation,

investigation, adjudication or

some other approach

Thereisagoodunderstandingofwhichalternativedispute

resolutionapproachessuitparticularissues

Casesarereferredtoadisputeresolutionprocessonlyonce

theintakeassessmentinformationisanalysedandthebest

processagreed

Organisational culture supports

the airing of grievances

Conflictcanbesafelyraised;privacyisrespected

Staffareencouragedtovoiceconcernsandconstructive

dissentearly

Peoplefeelconfidentthattheywillbeheard,respectedand

theirconcernsactedupon

Staffareencouragedtoresolvetheirownissuesand

aretalkedthroughvariousoptions

Staffaregivenreasonsfordecisionsaboutdisputes

Conflictmanagementisnotedasaseparatecorecompetency

Naturaljusticeandproceduralfairnessareapplied

The right data is collected,

analysed and used

Acrossdisciplinaryteamconductsrootcauseanalysisand

makesrecommendationstostopissuesfromrecurring

Thisinformationissharedbroadlyandusedtomakedecisions

–forexample,abouttrainingneeds

Executive management takes

an interest in grievances

Theyreadreportsonconflict,bullying,stress,grievances

Theydiscussgrievancesatmeetings,preferablyasstanding

agendaitems

28 Developing Conflict Resilient Workplaces:Report

The top level – reacting well when things do go wrong


There is a defined

and documented

process for

responding

to workplace

grievances

Thereareinformalprocessoptionstoresolveconflictatalocallevel

(theseemphasiselisteningandunderstanding)

Thereareformalprocessoptionsforresolvingdisputes

Formalprocessesaregenerallynotaccesseduntilinformalprocesses

havebeenused

Thereisamultipleentryandcoordinatedintakeassessmentsystem

Thedisputeresolutionproceduresareorganisedinalowtohighcost

sequenceandbasedonariskassessmentprocess

Employees know

how to use the

process

Employeesknowhowandwheretocommunicatetheirgrievance

Optionsforascertaininglegalrightsandaddressingunderlyinginterests

areavailable

Appealrightstootherorganisationsaremadeclear

Theoutcomesofdecisionsaremadecleartoemployees,particularly

includingreasonsforthedecision

Clear roles and

responsibilities

are allocated and

communicated

Acentralcoordinatorexistsforconflictmanagementandreportsto

seniormanagement

Inlargerorganisations,thisisadedicatedpersonoroffice

Aseniorpersonintheorganisationhasoverarchingresponsibilityfor

conflictmanagement(andhasdirectaccesstoexecutivemanagement)

Conflict

management

systems, policies

and procedures

are consistent with

wider organisational

practice

Theyareconsistentwith:

• eachother

• policyandlegislation

• industrialprovisionsandagreements

• keytermsareusedconsistently

Keytermsareusedconsistently

28 Developing Conflict Resilient Workplaces:Report

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