Industrial conflict in the contemporary business world

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Industrial conflict has become a key issue of discussion in the contemporary business world. A brief read through the daily newspaper inevitably presents the reader with an abundance of articles relating conflict in workplaces, and its varied impacts on organisations. Conflict is an issue that affects all working Australians, so it is important to understand exactly why it occurs, and how it can be managed. An important question that arises is whether or not management can rid the workplace from conflict.

The ultimate goal of management is to coordinate productive resources with the aim of achieving its objectives. (Deery et al. 2001 p. 173) One of the resources that need to be coordinated is that of human labour. For the manager, this is the most difficult resource to manage because employees may have alternate interests that intersect with that of management. These opposing interests can lead to conflict.

So what then is conflict? Conflict can best be understood through examples. Generally a party in the employment relationship will take action to fulfil its interests, for example in the form of a demand. If the demand is denied, then a state of conflict exists (Hill & Lansbury 1988). Symptoms of workplace with a high degree of conflict could be: heightened interpersonal conflict, declining performance, absenteeism, turf wars, spurious grievances, and excessive turnover (Miller 2003).

Good management, in an industrial relations context, is that which best coordinates its resources to produce results. This involves the coordination of the labour resource. However, will good management lead to conflict? An important factor in determining whether conflict will arise from managing is the approach with which the function of management is viewed.

The first approach to management is the unitary approach. The idea behind this theory is that the workplace is an “integrated and harmonious entity that exists for a common purpose” (Bray et al. 2005). There are several assumptions upon which this model of the employment relationship rests. The organisation is firstly comprised of an integrated group of people. The organisation also has a simple authority and loyalty structure. Finally the managers and employees have a common set of values and objectives. This last assumption means that the managers manage to the interests of the organisation. It follows on from this idea that management’s prerogative is legitimate, rational and accepted (Rose 2004 p. 26).

Under the unitarist theory, conflict is seen as an expression of employee dissatisfaction. However because of the assumption of the common values and objectives between employees and management, such dissatisfaction is irrational. Conflict needs to be removed through better management practice or more concern for workers' individual needs (Hartley & Kelly 1986).

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Another important approach to management much more prevalent in today’s business environment is the pluralist approach. The major characteristic that differentiates this model from the unitary perspective is the acknowledgement that enterprises “contain people with a variety of different interests, aims and aspirations. Power is shared so there is no single dominant party” (Bray et al. 2005 p. 13). In addition to these assumptions, there is a distinct separation of ownership of resources and the management.

Pluralists consider conflict as both rational and an inevitable consequence of the different roles of managers and employees. Therefore it is ...

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