PRINCIPLES OF

BUSINESS
Internal Organisational Environment:
Conflict
SPECIFIC OBJECTIVES
⦿ Identify potential sources of conflict within
an organisation
⦿ Outline strategies used by employers and
employees to gain an upper hand during
periods of conflict
⦿ Describe strategies for the resolution of
conflict within an organisation
⦿ Outline guidelines for the conduct of good
management and staff relations in a
workplace
CONFLICT
Conflict can be
defined as
disagreement
between two or
more organisational
members or teams.
WHAT MAY BE THE CAUSE OF
CONFLICT WITHIN AN
ORGANIZATION?
INTERNAL SOURCES OF CONFLICT
⦿ Competition between
employees regarding
performance or promotion.
⦿ Competition between
employees or departments
regarding allocation of
resources.
⦿ Different groups of workers
may share different interests
and needs.
⦿ Breakdown in communication
leading to mis-understandings
and false information being
passed on.
INTERNAL SOURCES OF CONFLICT
⦿ Management or leadership style not suitable
for the employees and the tasks.
⦿ Industrial relations disputes: This is an issue
of conflict between workers along with there
trade unions and management which may
arise from:
1. Any threats to the health and safety of
employees.
2. Unfair dismissal
INTERNAL SOURCES OF CONFLICT
4. Unfair
management
practises.
5. Unfair treatment
of an employee.
6. Poor working
conditions
HOW TO DEAL WITH DISPUTES
When workers and management find it difficult
to bring an end to their dispute, then trade
unions which represent the workers provide
mediatory services.
Trade unions A collection of workers who
agree to negotiate with employers as a group
of employees rather than doing so individually.

Collective bargaining – is when workers and

their trade union negotiate with management
on a dispute as a group and not on individual
basis.
 PURPOSE OF A TRADE UNION
⦿ Negotiate on behalf of workers for better
wages and salaries, fringe benefits and
improved working conditions.
⦿ Help to settle dispute between management
and workers.
⦿ Make new demands on management on behalf
of workers.
⦿ Educate its members about their rights and
responsibilities.
HOW DO YOU BECOME A PART OF
A TRADE UNION?
⦿ Pay a membership fee
⦿ Management should not prevent workers
from joining a union and being unionized
⦿ Workers are free to join the union of there
choice
INDUSTRIAL ACTIONS TAKEN BY
EMPLOYER AND EMPLOYEE
STRATEGIES TO GET SOLUTION TO
A CONFLICT (INDUSTRIAL ACTIONS)
Employers
⦿ Negotiation – the organization and the union
enter into discussions with the hope of
arriving at an amicable agreement.
⦿ Using scab labour
⦿ Firing all the workers who are taking
industrial action
⦿ They may lock out the members
⦿ They may prevent employees from joining or
forming a train union.
STRATEGIES TO GET SOLUTION TO
A CONFLICT (INDUSTRIAL ACTIONS)
STRATEGIES TO GET SOLUTION TO
A CONFLICT (INDUSTRIAL ACTIONS)
Employees
⦿ Organising a Go slow- work at a slow pace
without breaching companies regulations
⦿ Sit-in – here the workers are at work and at their
station but they do not perform any of their
normal duties.
⦿ Using a Sick out
⦿ Work-to-rule
⦿ Refuse to work overtime
⦿ Strike action – union may permit the employees
who are union members to stop working
⦿ Picketing – employees gathering at the entrance
of the business and trying to influence other
employees to stay home.
STRATEGIES TO GET SOLUTION TO
A CONFLICT (INDUSTRIAL ACTIONS)
⦿ Work-to-rule
⦿ Refuse to work overtime
⦿ Strike action – union may permit the
employees who are union members to stop
working
⦿ Picketing – employees gathering at the
entrance of the business and trying to
influence other employees to stay home.
SOLVING CONFLICT INTERNALLY
STRATEGIES THAT COULD BE USED
TO RESOLVE CONFLICT BETWEEN
MANAGERS AND EMPLOYEES
Grievance – a grievance at the workplace
exists only when a labour law or work code has
been violated, or a worker is treated unfairly
or his health or safety is threatened.
A grievance procedure is a means of resolving
internal disputes without necessarily using any
of the actions discussed before.
 GRIEVANCE PROCEDURE
The conflict may be resolved at any of the
stages listed below:
⦿ the union delegate seeks to solve the conflict
by holding discussions with the
supervisor/manager involve.
⦿ if there is no agreement, he speaks to the
Human Resources Manager or Industrial
Relations Manager
⦿If there is still no agreement, he reports to the
union officials (at the trade union) who will
discuss the matter with Top-level
management.
 HOW A GRIEVANCE IS SETTLED
⦿ if there is still no agreement, the union
officials will then try each of the following
stages. If the first one does not work then
they will try the next and so on.
(a) Conciliation
(b) Mediation
(c) Arbitration
HOW A GRIEVANCE IS SETTLED
⦿ Conciliation – a third party such as a
representative from the Ministry of Labour
will be present during discussions to ensure
that communication takes place and
encourage the two groups to reach an
agreement. No suggestions will be given.
⦿ Mediation – this involves the third party
proposing solutions to problems, which are
then considered. This is merely a suggestion.
⦿ Arbitration – the two groups agree to ask
the third party to give the solution, which
they will both accept. This is legally binding.
STRATEGIES FOR RESOLVING
CONFLICTS (THAT IS, APART FROM
THE IINDUSTRIAL RELATIONS ISSUES)
⦿ They may avoid the conflict if it is too trivial
(avoidance).
⦿ They may seek a compromise (give and
take).
⦿ They may ask the two parties to find a
mutually satisfying solution (collaboration).
⦿ Or they can insist that the two parties accept
the manager’s solution (confrontation).
⦿ They may also improve communication and
other management practices.
GUIDELINES FOR ESTABLISHING
GOOD EMPLOYER/EMPLOYEE
RELATIONS (WORKER RELATIONS)
⦿ Practise good
leadership.
⦿ Improve working
conditions
⦿ Motivating
workers/positive
encouragement
⦿ Good
communication
with workers
HOMEWORK (GRADED)
⦿ Identify 4 ways of motivating employees both
financial and non-financial
⦿ Define the term teamwork
⦿ Outline 4 advantages and 4 disadvantages of
teamwork.