Conflict at Work - The Hidden Costs of Poorly Managed Organizational Conflict
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Conflict in organizations is not a problem. Well managed conflict contributes to creativity, strategic initiative, more effective systems and communication, stronger workplace relationships and greater commitment to the organization. Organizations shouldn’t attempt to prevent conflict, but should instead focus energy on preventing unresolved or destructive conflict.
Left unresolved or escalating destructively, conflict is expensive, both in financial and human terms. Some conflict costs are easily measured, such as legal fees and losses associated with theft and sabotage. Conflict that escalates so far as to damage an organization’s reputation is measurable in terms of lower earnings or diminished market share.
The hidden costs of conflict can be more significant to the bottom line and the overall health of the organization. Here are a few of the most common conflict costs that are overlooked by managers:
Time and salary loss. Studies over the last decade suggest that between 30% and 40% of a manager’s time is spent dealing with employee conflict and helping employees reach agreement. In a study I conducted in 2000, managers’ time on conflict ranged more commonly from 40% to 50% of work hours. The total amount of time spent on a conflict and away from other work typically includes the time of the employees involved, the manager to whom those employees report, and in larger organizations, the human resources manager and legal counsel. It adds up quickly.
Attrition. Research reported in the late 1990s showed that workplace conflict left unresolved for too long leads to team members leaving the company or using valuable work time searching for alternative employment. Employee turnover due to conflict results in severance costs, recruitment costs, training and development costs, and loss of productivity during that period.
Absenteeism and health care expenditures. The Journal of Occupational and Environmental Medicine has reported that health care costs are nearly 50% greater for workers who report high levels of stress. Stress as a reason for absenteeism increased 316% between 1995 and 1999 and studies suggest that it is a common byproduct of unhealthy workplace conflict.
Grievances and related complaints. Between 1992 and 1998, annual monetary benefits for EEOC sexual harassment cases increased from $12.7 to $34.5 million. Annual monetary benefits for EEOC-handled ADA cases increased from $200,000 to $49.1 million during the same period. Neither of these figures includes monetary benefits obtained through litigation.
Copyright © by Tammy Lenski. All rights reserved.
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Get your complimentary copy of Talking It Out in Ten, a worksheet and guide to help you think and prepare for your difficult conversations at work and home. Dr. Tammy Lenski is a dialogue jump-starter, an expert at helping people talk out their differences and build stronger work and home relationships in the process. Tammy has helped individuals, work teams and entire organizations make their peace with conflict for almost two decades. Known for approaching sticky situations with an educator’s heart, professional mediator’s skill, and a creative’s instinct, she taps her background as an organizational leader, college professor, executive coach and mediator to serve clients who don’t just want to settle conflict but use it to transform their organization or themselves. Tammy writes extensively about workplace conflict, coaching, and resolution at Lenski.com, where you can find over 400 articles to jump-start your own dialogues. Article Source: http://EzineArticles.com/?expert=Tammy_Lenski,_Ed. |
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One Response to “Conflict at Work - The Hidden Costs of Poorly Managed Organizational Conflict”
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April 29th, 2008 at 9:05 am
I really enjoyed (and agree!) with this post. Embrace conflict as a healthy environment. Conflict shows a passion for the processes, systems, policies, workflow, and, ultimately, the bottom line. If you owned your own company, wouldn’t you want passionate people involved?
Conflict is at the heart of life. Pick up any fictional novel, and you’ll see that conflict is at the center of the plot. Conflict makes life rich. Never discourage conflict in an organization. What was the last movie you watched? Did it contain conflict? How would the movie have been if you removed the conflict from the script?
Conflict resolution is also important, albeit not as complicated as many think. Resolution is important only from the standpoint that if the conflict goes on too long, it begins to drain and will eventually result in long-term animosity. Most conflict resolves itself in time. However, there will be times when you’ll need to inject yourself. For me, the best method of resolution is also the oldest method. Put both parties in a room and let them work it out. You may want to hang around as moderator. If you have strong feeling in this matter, keep them to yourself. If you take sides, you’ll fail. If the parties were a distance apart, I would still manage to get them in a room together. We miss too many communication cues on the telephone. Michael L. Gooch, SPHR author of Wingtips with Spurs: Cowboy Wisdom for Today’s Business Leaders http://www.michaellgooch.com