Leadership Conflict

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Survey report October 2008

Leadership and themanagement o confict

at work


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Contents

Summary o key indings 2

The impact o conlict at work 4

The causes o conlict at work 8

Managing and preventing conlict 10

The beneits o investing in managing conlict at work 16

Conclusions 18

Background to the survey 21

Leadership and the management o conlict at work 1


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Summary o key indings

This report sets out the findings of a survey by the CIPD, in association with business

psychology consultancy OPP, into leadership and conflict management in the workplace.

The analysis is based on replies from 660 HR practitioners in organisations employing nearly

2.3 million employees.

The impact of conflict at work

Almost hal (44%) o respondents report that theyhave to manage disputes at work requently or

continually.

The survey inds that on average HR proessionalsspend 3.4 hours every week managing conlict

at work. This rises to 3.8 hours or public sector

respondents.

Six in ten respondents say that they had to manageconlict at work in the previous seven days, with

more than hal o these saying that

the dispute in question remained ongoing.

Nearly two-thirds o respondents report that conlictat work that escalated has resulted in

the absence rom work o one or more o the

parties involved.

Hal o respondents say that conlict has resultedin people leaving the organisation and a similar

proportion report that disputes that escalated

resulted in bullying or harassment.

Nearly one in three (28%) respondents admit tohaving let a job as a result o conlict at work,

illustrating clearly one o the most negative aspectso conlict at work in terms o business impact.

The causes of conflict at work

The most commonly cited cause o conlict as aras HR practitioners are concerned is warring egos

and personality clashes, mentioned by 44% o

respondents as being the number one source o

interpersonal strain.

This is ollowed by poor leadership rom the top(30%), inadequate line management (21%) and

weak perormance management (17%).

Heavy workload and bullying and/or harassment arealso identiied as signiicant causes o disputes in

the workplace.

Managing and preventing conflict

More than eight in ten HR proessionals citeidentiying and addressing underlying tensions

more eectively beore things start going wrong as

key to helping managers become more eective in

managing conlict at work.

Two-thirds (66%) o respondents identiy the needor managers to have more interaction with their

reports, provide more clarity about whats expected

and model the right behaviours.

Improved consultation in day-to-day managementactivities is also regarded highly as a means o

helping line managers prevent and manage

disputes in the workplace.

More than 60% o HR practitioners report theyhave been trained in conlict management as part

o their proessional development, while 38% state

that they have received training in the context o

leadership development. When asked what training their organisations had

provided or line managers in conlict management,

40% o respondents say that it is oered as part

o leadership development.

Just under a third o HR practitioners report thattraining in conlict management skills or line

managers is provided through coaching rom

their manager.

More than a quarter (27%) say that line managersreceive no training o any description in conlict

management.

Leadership and the management o conlict at work2


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The benefits of investing in managing conflict

at work

Almost a third o respondents report that training inconlict management has led to a reduction in the

number o disciplinary and grievance cases, 28%think there has been an improvement in employee

morale and 25% believe there has been an increase

in team perormance and productivity.

In all, 13% o HR practitioners say conlictmanagement training has helped reduce employee

absence levels, 12% have seen a reduction in

employment tribunal claims and 10% report a

reduction in employee turnover.

One in three (34%) HR practitioners believe thatbetter teamwork would be the single biggest

potential gain in their organisation as a result o

more eective management o conlict, ollowed

by higher employee engagement at 30% and

improved productivity and greater internal eiciency

at 12%.



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The impact o conlict at work

Nearly half of HR practitioners say they have to manage conflict in the workplace

continually or frequently, with sickness absence, staff turnover and bullying being the most

likely result where disputes escalate.

In response to the signiicant and growing challenge

conlict at work creates or organisations, the CIPD

joined orces with international business psychology

consultancy OPP to conduct research into the role o

leadership in managing disputes in the workplace. This is

based on a survey o 660 HR practitioners exploring the

perceived causes and evident costs o conlict in the

workplace, along with the measures organisations are

currently implementing to prevent and manage

workplace tensions.

The survey inds that managing conlict is an integral

part o most HR practitioners jobs on a daily basis.

Almost hal (44%) o respondents report that they have

to manage disputes at work requently or continually.

This rises to 51% among public sector respondents.

As many as one in ive respondents claim to manage

conlict continually in organisations o between 5,000

and 10,000 employees. See Table 1.

Conlict at work is also extremely time-consuming. The

survey inds that on average HR proessionals spend

3.4 hours every week managing conlict at work. This

rises to 3.8 hours or public sector respondents.

Just under hal (48%) o respondents spend up to hal

a day a week and a urther 12% spend the equivalent

o an entire day a week handling conlict.

HR proessionals in mid-sized organisations (with

between 500 and 1,001 employees) appear to are the

worst, being more than twice as likely as smaller irms

Table 1: The extent to which HR practitioners have to deal with conlict in the workplace (% o respondents)

ManuacturingBy sector and Private Non-proit Public

Average production sector services organisations sector

Yes, continually 10 10 9 11 13Yes, requently 33 31 32 34 38

Yes, occasionally 55 58 56 53 48

No, never 2 2 2 2 2

By size oorganisation 250 1,001 5,001 10,001

or ewer 251500 5011,000 5,000 10,000 or more

Yes, continually 6 9 13 11 21 13

Yes, requently 30 38 38 37 30 31

Yes, occasionally 62 53 48 53 47 53

No, never 2 1 2 0 2 3



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to spend a day a week or more managing conlict at and interpersonal relationships or productivity had

work. See Table 2. suered. In all, 15% o respondents report that external

legal advice had been sought. See Table 3 on page 6.

Six in ten respondents say that they had to manage

conlict at work in the previous seven days, with more Worryingly, as many as one in ten (10%) HRthan hal o these saying that the dispute in question practitioners who indicate that the recent conlict has

remained ongoing. now been resolved say that it took them more than a

Table 2: How much time per week HR practitioners spend managing conlict at work (% o respondents)

By sectorManuacturing

andPrivatesector Non-proit Public

Average production services organisations sector

None 2 2 3 2 3

Less than 1 hour a week 34 37 33 33 31

15 hours a week 48 46 50 55 45

610 hours a week 12 12 10 5 15

1115 hours a week 3 3 2 5 5

Over 15 hours a week 2 0 2 2 2

Mean score (hours) 3.4 3.1 3.4 3.3 3.8

By size o organisation 250 501 1,001 5,001 10,001or ewer 251500 1,000 5,000 10,000 or more

None 2 1

Less than 1 hour a week 40 2915 hours a week 50 58

610 hours a week 8 8

1115 hours a week 0 4

Over 15 hours a week 0 0

Mean score (hours) 2.5 3.2

Respondents in organisations employing between 251

and 500 people are most likely to report that they have

experienced conlict at work in the previous seven days(67%), while HR practitioners in businesses employing

between 501 and 1,000 employees are most likely to

say that such disputes are still ongoing.

Public sector HR proessionals are also more likely to

experience conlict that drags on (41% versus 31% in

the private services sector).

Just over 40% o HR practitioners that were involved in

trying to resolve an ongoing dispute say that the conlict

was still being dealt with on an inormal basis. Nearly

hal say the dispute had led to disruption in the team

4 1 4 4

29 31 21 3736 48 49 38

21 12 19 14

9 5 6 2

2 4 2 4

4.6 4.1 4.3 3.8

week; this doubles (to 19%) in the largest organisations

(those with more than 10,000 employees) and appears

to be more likely in the public sector, where one in six(15%) report this. O course, the cost implications o

this are not limited to HR time; the missed opportunity

or HR teams to be doing something more constructive

also has its price.

The impact o conlict on management time is also very

considerable. Nearly a ith o respondents estimate that

where recent conlict at work has been resolved it took

up to a day in management time, while 6% o

respondents report that the recently resolved conlict

took in total more than ten days o management time.



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Table 3: The impact o conlict at work where it has not been resolved (% o respondents)

Manuacturing PrivateBy sector and sector Non-proit Public


It is still being dealt with on an44

inormal basis.

There is disruption in the team andinterpersonal relationships/productivity 46are suering.

It has moved rom inormal grievance29

to a ormal grievance being lodged.

It has resulted in the use o the 15

disciplinary procedure.

It has resulted in an employee being5

suspended.

An employee has been dismissed. 3External legal advice has been sought. 15

Non-proit organisations and public sector employers

spend more in management time resolving conlict

at work than their private sector counterparts. See

Table 4.

In situations where conlict is not managed eectively

and escalates, the allout or the business can be

extremely damaging. Nearly two-thirds o respondents

report that conlict at work that escalated has resulted

in the absence rom work o one or more o the

parties involved. Hal o respondents say that conlict

has resulted in people leaving the organisation and a

similar proportion report that disputes that escalated

resulted in bullying or harassment. More than our in

ten respondents say that conlict has led to one or

more individuals involved leaving the organisation.

See Table 5.

31 43 50 51

46 46 46 43

27 21 32 36

16 16 14 13

4 6 9 5

4 4 0 216 16 9 18

Nearly one in ten respondents report that conlict at

work that escalated resulted in physical violence.

Public sector organisations are most likely to report

that disputes at work resulted in sickness absence and

bullying or harassment. Public sector employers are

also much less likely to dismiss people (29%) as a

result o conlict at work, compared with the survey

average (44%).

Where is conflict most prominent?

Conlict is not conined to one area o the business, nor

to one unctional team; this research shows conlict

occurring at all levels o the organisation and across all

departments. However, there are identiiable hot spots,

according to HR proessionals. They observe that conlict

suraces most requently between line managers and

their direct reports, with 47% o respondents identiying

Table 4: The amount o management time spent resolving conlict at work (% o respondents)

Manuacturing Private PublicAverage and production sector services Non-proit sector

Less than 1 hour 24 25 27 15 26

14 hours 46 40 46 45 39

Up to a day 17 20 16 10 20

25 days 5 8 5 15 0

510 days 3 0 1 10 4

More than 10 days 6 8 5 5 11



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Table 5: The result o conlict at work in circumstances where it has escalated (% o respondents)

Manuacturing Privateand sector Non-proit Public


Bullying/harassment 50

Personal insults/verbal attacks 42

An individual/people let theorganisation

53

An individual/peoplewere dismissed

44

Cross-departmental conlict 28

Employees being moved to dierentdepartments

38

Project ailure 7

Sickness/absence o one or more parties 63

Physical violence 8

I have never been involved in a conlictthat escalated

6

these relationships as most likely to lead to conlict within

organisations. The next most common areas o conlict

are between ront-line roles (14%), between dierent

levels o management (14%) and between members o

the senior executive team (13%).

One in ive (19%) respondents report that their

organisations senior management team is in requent or

constant conlict, rising to almost one in our (24%) in

the voluntary sector. Six in ten HR practitioners say such

conlict is occasional, with just 10% reporting completely

harmonious relationships at the most senior level.

Almost one in six respondents (14%) report conlict

between entry-level/ront-line roles, and between

dierent levels o management.

In terms o its prevalence in unctional teams, HR

proessionals cite operations as generating most

conlict (48%), ollowed by disputes between teams

(38%). Tensions are also commonly observed in sales

and customer service, with 12% o HR respondents

citing each o these as conlict-rich departments.

The unctional teams in which HR practitioners note

the least conlict are perhaps unsurprisingly HR,

cited as most peaceul by more than hal (58%), with

inance (31%) and IT (25%) ollowing in second and

third places respectively.

48 45 41 58

39 41 45 45

49 52 62 47

51 46 45 29

25 28 50 22

39 27 31 50

7 7 14 6

51 54 67 70

10 11 5 4

10 11 5 4

When asked i they personally currently work with

someone with whom they have experienced conlict,

HR respondents replies were consistent. All have been

in conlict with someone in their organisation with

most occurrences being with a colleague, cited by

more than one in our (27%). Almost one in ive

(18%) say they have been in conlict with senior

management, suggesting that HR practitioners are not

shy o taking issue with their organisations leaders,

while 13% o respondents report conlict with their

own immediate manager. Just one in ten (11%) cite

conlict with direct reports.

Interestingly, HR proessionals in organisations o more

than 10,000 employees are twice as likely to have

experienced conlict with their managers, a direct

report or with customers than those in organisationso ewer than 250 people. Its clear that workplace

conlict is inescapable, and in HR teams particularly

in larger organisations there are some diicult

relationships to be negotiated.

Nearly one in three (28%) respondents admit to having

let a job as a result o conlict at work, illustrating

clearly one o the most negative aspects o conlict at

work in terms o business impact.



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The causes o conlict at work

The top three causes of conflict in the workplace are warring egos and personality clashes,

poor leadership from the top of the organisation and inadequate line management.

The most commonly cited cause o conlict as ar as

HR practitioners are concerned is warring egos and

personality clashes, mentioned by 44% o respondents

as being the number one source o interpersonal

strain. Poor leadership rom the top is not ar behind

at 30%, which is substantially more requently cited in

large organisations than small (32% versus 23%).

See Table 6.

Poor line management and weak perormance

management are next on the list o conlict drivers,

cited by 29% and 21% o respondents respectively.

Curiously, HR practitioners in mid-sized organisations

(that is, 5001,000 employees) are more than twice as

likely to cite this as a cause o conlict, with 40%

mentioning it versus 17% and 14% in smaller and

larger organisations respectively. A smaller percentage

(14%) blame heavy workloads and inadequate

resources as key reasons or the conlict they

encounter at work.

There are some urther interesting dierences between

the rank order reported by HR proessionals in dierent

industry sectors and in dierent sizes o organisation.A lack o openness and honesty, or example in

promotions and appointments, is ranked number one

by 23% o HR respondents in organisations with more

than 10,000 employees, as compared with 3% in

companies with between 250 and 500 people. A clash

o values is cited as a major cause by 26% o those

working in the voluntary sector, versus only 4% in the

private sector.

These dierences are particularly pronounced in HR

proessionals responses to the issue o bullying and

harassment. In companies o between 250 and 500

employees, almost one in our (23%) cite it as a major

cause o conlict, whereas it is raised by only 3% o

those in organisations o between 5,000 and 10,000

people. HR respondents in the voluntary sector are

more likely than those in the private sector to list it as

a major cause (16% versus 9%).

Likewise, those in the voluntary sector are much more

likely to report taboo topics that cant be brought to

the surace as a cause o conlict than any other type

o organisation. It seems that HR practitioners in the

voluntary sector have to be particularly adept at

managing underlying interpersonal tensions in the

workplace i they are to manage conlict eectively.

With workplace conlict evidently an unavoidable part

o working lie, HR proessionals clearly need to be

conident in their own conlict management skills,

but more importantly take action to ensure that

managers have the skills and awareness to step in and

intervene at an early stage as soon as the irst signs oconlict emerge.

The new regulatory ramework or dispute resolution

coming into orce in the UK in 2009 will provide

greater encouragement and opportunities or

managers to resolve disputes inormally beore the

ormal disciplinary or grievance procedures come into

play. The question is whether managers are willing to

and capable o taking this on eectively, and how HR

can best support them in doing so.



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Table 6: The main causes o conlict at work

Respondents (%) rating as a most important source o conlict at work

By sector Average

Manuacturing

andproduction

Private

sectorservices Non-proitorganisations Publicsector

Personality clashes and warring egos 44 39 47 47 41

Poor leadership rom the top o theorganisation

30 28 30 31 31

Poor line management 29 32 28 19 29

Poor perormance management 21 22 20 20 22

Heavy workload/ inadequateresources

14 14 15 17 17

Bullying/harassment 13 16 9 16 10

Lack o openness and honesty,or example in appointments andpromotions

12 10 12 14 14

Lack o clarity about accountability/ownership

12 16 14 9 10

Lack o role clarity 11 13 11 10 10

Clash o values 10 13 4 26 9

Stress 10 13 15 15 6

Taboo topics that cant be brought tothe surace

9 6 10 11 8

Perceived discrimination 7 0 7 8 7

Poor selection o/pairing o teams 7 8 7 7 5

By size o organisation 250or ewer 251500

5011,000

1,0015,000

5,00110,000

10,001or more

Personality clashes and warring egos 49 43 32 43 43 40

Poor leadership rom the top o theorganisation

31 23 30 33 29 32

Poor line management 23 23 31 44 29 38

Poor perormance management 17 23 40 21 23 14

Heavy workload/ inadequateresources

11 10 18 17 21 16

Bullying/harassment 8 23 16 16 3 10

Lack o openness and honesty,or example in appointments andpromotions

12 3 9 11 18 23

Lack o clarity about accountability/ownership

11 9 9 15 17 16

Lack o role clarity 10 2 17 21 10 10

Clash o values 11 10 5 15 8 7

Stress 7 7 17 13 19 9

Taboo topics that cant be brought tothe surace

10 8 13 10 0 8

Perceived discrimination 0 5 0 10 8 15

Poor selection o/pairing o teams 0 19 10 13 11 5



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Managing and preventing conlict

Managers should spend more time addressing underlying tensions at work and having

informal one-to-one conversations with the people they manage, as well as providing

greater clarity over what is expected of employees, if they are to manage conflict

more effectively.

Separate research conducted by OPP in association with

the CIPD into employee attitudes to conlict at work

inds that the vast majority o employees surveyed have

to deal with conlict at work, and as many as three in

ten do so constantly or requently. Given that the

negative consequences o workplace conlict reported

by employees in the research report, Fight, Flight or

Face It: Celebrating the effective management of

conflict at work, range rom bad eeling and avoiding

contact with colleagues to sickness absence and

reduced productivity, the argument or taking decisive

action is strong.

But where do we start? It will not be news to most HR

practitioners that, or best results, organisations need

to lead change rom the top team. Its a amiliar story,

too, to hear that people will only behave dierently i

they are given the skills to do so and shown the

possibility o dierent, more positive outcomes.

Prevention beats cure

Respondents were asked what would help managers

be more eective in dealing with conlict. More than

eight in ten HR proessionals cite identiying and

addressing underlying tensions more eectively beore

things start going wrong. Two-thirds (66%) also

mention the need or managers to have more

interaction with their reports, provide more clarity

about whats expected and model the right behaviours.

Improved consultation in day-to-day management

activities is also regarded highly as a means o

preventing and managing disputes in the workplace.

See Table 7.



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Table 7: What managers should do to improve how they manage conlict at work (% o respondents)

Average

Manuacturingand

production

Privatesector

servicesNon-proit

organisationsPublicsector

Identiy and addressunderlying tensionsmore eectively

81 76 80 81 85

More inormal one-toones with the peoplethey manage

67 69 67 60 63

Improved consultation inday-to-day managemento activities

46 39 43 62

Provide more clarityabout what is expected 67 72 67 64 65

Provide more clarity overareas o responsibility 51 54 50 62 49

Be a model o theright behaviours 66 63 66 52 71

Provide counselling oremployees under stress 23 24 20 33 28

Act as mediators whenconlict develops 43 39 41 48 46

Raise the subject opossible conlict as parto business (rather thanshying away rom it orpunishing it)

37 35 34 49 42

Not let their own

egos get in the wayo relationships withcolleagues

48 47 48 49 49

Manage toxicindividuals who createconlict at work moredirectly and irmly

64 60 60 80 68

Provide improvedworklie balance 23 19 22 24 26

Nothing, conlict isan inevitable part oworking lie

1 1 1 0 1

HR practitioners understand that nipping problems in the bud is crucial i conlict is to be managed properly

because o the diiculties o dealing with disputes that escalate to the point where the ormal disciplinary or

grievance procedure has to be used.

However, according to the joint OPP/CIPD research report into employee attitudes and conlict, Fight, Flight

or Face It: Celebrating the effective management of conflict at work, one in six employees (16%) reports that

a recent workplace conlict was not quickly resolved or became more intense, which suggests that many

disputes are not being resolved at an early stage. In the new scheme o things, the balance between

preventing escalation and genuinely resolving issues will need to be careully managed.

The employee perspective on conflict at work



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Training the trainer?

More than 60% o HR practitioners report they have

been trained in conlict management as part o their

proessional development, while 38% state that they

have received training in the context o leadershipdevelopment.

One in three respondents have received conlict

resolution training through coaching rom their line

manager and 23% have been on a ormal training

course delivered by an external trainer.

About a third o (31%) HR practitioners use the

Internet or inormation on conlict management, and

15% take advice rom amily and riends on how to

handle conlict situations. This suggests that many are

being let to their own devices to develop important

skills, and there is evidence that this is particularly the

case in smaller organisations where ormal training

may be seen as discretionary.

Just 8% have received no training o any description

in managing disputes in the workplace.

Organisations with 250 employees or ewer are least

likely to have received any ormal external training in

conlict management or mediation, and most likely to

seek advice outside work or rom the Internet,

compared with larger organisations. Perhaps less

predictably, only 53% o HR proessionals in

organisations with more than 5,000 employees claim

to have been trained as part o their proessional

development, as against 63% overall.

According to the OPP/CIPD research report into

employee attitudes and conlict, Fight, Flight orFace It: Celebrating the effective management of

conflict at work, training helps employees

manage conlict more eectively by breeding

conidence and comort in handling conlict

proessionally, but under hal (44%) have actually

received any.

Practising what you preach

When asked how the training in conlict management

helped their own eectiveness, 65% state that they

achieve more positive outcomes or both parties as a

result, and 56% say that it helps them understand theother persons (or persons) perspective in a dispute.

Slightly under hal (46%) o HR practitioners surveyed

say that it helps them support higher perormance in

their role. This raises the question o whether the

training provided is suiciently ocused on the business

impact o managing conlict eectively, rather than

simply on improving interpersonal skills.

Almost 85% o respondents rate themselves as

managing conlict adequately or better. Private sector

HR proessionals are twice as likely to rate themselves

as handling conlict very well compared with those in

the public sector, although both numbers are low

(10% versus 4%).

Eight in ten respondents believe that conlict-handling

is either very or critically important as a management

skill. Those working in organisations with more than

5,000 employees are substantially more likely to see it

as critically important than those with ewer than 500

(49% versus 21%).

When asked what training their organisations had

provided or line managers in conlict management,

40% o respondents say that it is oered as part o

leadership development. Just under a third o HR

practitioners report that training in conlict

management skills or line managers is provided

through coaching rom their manager. In all, 16% o

respondents say training or line managers is provided

by a ormal course delivered by someone within the

organisation and a similar proportion say that trainingis provided through a ormal course delivered by an

external trainer.

More than a quarter (27%) say that none is given,

rising to 39% in smaller companies. See Table 8.



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Table 8: Training provided to line managers in managing conlict (% o respondents)

Manuacturing Privateand sector Non-proit Public


Formal course inconlict management,provided by a member 16 8 15 19 25

o your organisation

Formal course in conlictmanagement rom an 16 11 15 24 21external trainer

Coaching rom theirline manager 31 36 33 24 26

Inormal peer-to-peercoaching 22 23 25 19 20

As part o leadershipdevelopment training 40 38 37 24 51

Sponsoring relevanttraining outside work 4 4 3 5 6

Mediation skills training 8 2 3 8 23

Relationshipmanagement training 9 10 11 3 9

Advice rom Interneton managing conlict 7 4 5 13 9at work

None 27 31 30 30 19

Managers in the public sector are most likely to have

experienced training as part o leadership

development, according to HR proessionals (51%

versus 37% in the private services sector) and

substantially more likely than others to have beneited

rom a ormal course run internally (25% versus 15%

in the private services sector) or mediation skills

training (23% versus just 3% respectively). This

indicates that HR in the public sector takes conlict

management very seriously as a competence.

However the survey shows that public sector

organisations are most likely to deal with conlict

continually or requently and spend more

management time on managing conlict. This raises

the question o whether public sector managers ocus

too much attention on managing the eects o

conlict rather than preventing conlict through

eective people management and early intervention

or positive outcomes.

The survey inds that senior leaders are less likely than

line managers to be trained in eective dispute

resolution, with a third (33%) o respondents

admitting that none is provided.

Just 38% o HR practitioners say senior leaders

receive training in conlict management as part o

leadership development programmes. About a ith o

respondents report that leaders receive conlict

management training through coaching rom an

external proessional coach and a similar proportion

say their senior leaders receive such training byinormal peer-to-peer coaching. In about one in six

organisations training or senior managers in this area

is provided through a ormal course delivered by an

external trainer.

Public sector organisations are most likely to provide

conlict management training or senior managers as

part o leadership development programmes (46%)

compared with the other main sectors. Larger

organisations those employing 5,000 people or

more are twice as likely to provide conlict

management training in this way (52% versus 26%

in smaller companies).



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The CIPD has produced a competency ramework that sets out the positive behaviours managers need to

exhibit to prevent and manage conlict in the workplace (see page 22). The ramework is set out in the CIPD

publication Managing Conflict at Work: A guide for line managers (2008).

The ramework is based on joint research conducted by the CIPD and the Health and Saety Executive

exploring the links between line management behaviour and stress at work. The research involved interviews

with nearly 400 line managers and employees, as well as ocus group discussions with more than 60 HR

practitioners. As part o this work the speciic management competencies required to manage conlict at

work were identiied.

These include dealing with conlict issues as they arise, having a participative management approach,

monitoring team relationships, acting as a role model and with integrity, as well as using the oicial

disciplinary process appropriately.

Line management competence and effective conflict management

How managers are rated on managing conflict

at work

When asked whether they are satisied with managers

eectiveness in managing workplace conlict, however,

three-quarters (75%) o HR practitioners report that

they are not.

More than hal (59%) rate managers as being below

adequate in handling conlict generally. This

dissatisaction is most pronounced in the public sector,

with 64% rating their line managers as less than

adequate in this critical area. Those working in HR in

companies o more than 10,000 employees are

signiicantly more likely than others to rate their

managers more highly, with 19% stating that they are

better than average or very eective (versus just 11% in

companies with 250 people or ewer).

HR practitioners are clear about what their organisations

need to be doing dierently to manage conlict more

eectively. Hal o all HR respondents state thatmanagers must develop the right skills. A urther 12%

state the importance o conlict management training

across the workorce and 10% cite the value o

providing training across the organisation in the

appropriate values, including dignity at work.

It should be encouraging or HR proessionals to learn

that 62% o employees believe that it is everyones

responsibility to ensure that workplace conlict is

managed eectively, and only 15% suggest that this sits

with HR. Only 9% o HR respondents believe this to be

true, but a larger number lay the responsibility at the

door o managers and senior leaders.

More than 80% o respondents regard conlict

management as either very important or critically

important as a management and leadership skill.

Respondents were asked what would make the most

impact on creating environments where all employees

are treated with dignity and respect in the workplace.

Nearly hal o HR practitioners cite the establishment o

clear organisational values based on dignity and respect

at work as being the most critical intervention. This was

ollowed by the example set by the board (17%),

training or line managers in people management skills(15%) and training or all employees in dignity and

respect at work. Just 7% o respondents identiy the

attitude and personality o the chie executive as being

o central importance to creating positive work cultures

that promote and support dignity and respect at work.



16/23

There is no doubt that conlict at work is an increasing challenge or employers. In 200607 the number o

individual employment disputes that resulted in employment tribunal cases increased to 132,577, compared

with 115,039 or the previous year.

The increasing number o claims can be partly explained by the publics increased awareness o employment

rights and easier access to litigation. No win, no ee lawyers provide an avenue or disgruntled employees to

lodge claims against their employer at no cost or risk to themselves.

In addition, the introduction o new employment legislation in the last ew years has added to the challenges

aced by employers. Since 2003 new regulation has come into orce that prohibits discrimination on the basis

o age, sexual orientation and religion and belie, adding to existing laws outlawing discrimination against

people or reason o their race, sex or disability.

The CIPD has welcomed the evolving legal ramework as a means o promoting air treatment and equality

o opportunity at work. Organisations that embrace this agenda gain evident business beneit in terms o

their employer brand and ability to attract and retain talent. However, changing engrained prejudices and

behaviours is not easy and increases the likelihood o disputes as employees gradually adapt and develop a

better understanding o their new rights and responsibilities in the workplace.

The challenges associated with managing conlict at work were urther exacerbated by the introduction in

October 2004 o the Statutory Dispute Resolution Regulations, which introduced minimum standard three-

step disciplinary and grievance procedures. The principle behind their introduction was sound: to ensure that

employers and employees make every eort to resolve disputes in the workplace. In practice, however, the

statutory procedures have led to undue ormalisation o how conlict at work is managed.

In the CIPD 2007 survey report Managing Conflict at Work, employers said that the regulations have

generated more ormal disciplinary and grievance cases without reducing the number o employment tribunal

applications made by discontented employees. Employers also said they were more likely to rely on external

legal advice to resolve disputes since the introduction o the Regulations.

In 2006 Michael Gibbons led a government-sponsored review o the Regulations and dispute resolution in

the UK more broadly. He recommended that the statutory procedures be repealed and a new dispute

resolution ramework be set up with greater emphasis on inormal, early dispute resolution and greater use

o alternative dispute resolution approaches such as mediation.

The new Employment Bill will scrap the statutory dispute resolution procedures, paving the way or measures

designed to encourage earlier and less ormal resolution o conlict at work. The Department or Business,

Enterprise and Regulatory Reorm is still inalising the replacement package o measures, which are likely to

be introduced in April 2009.

The new regulatory ramework will include a revised Acas code o practice on discipline and grievance, and a

revamped Acas helpline, which will oer prospective claimants clear, up-ront advice on what bringing a

claim involves and what their options are.

The revised ramework will oer greater lexibility in workplace dispute resolution and provide greater

encouragement and opportunity or managers to resolve disputes inormally beore any ormal disciplinary or

grievance procedures come into play.

However i this is to happen, organisations must develop their leaders across the business to ensure they are

exhibiting the right behaviours to manage and prevent conlict. Organisations must also put in place clear

policies and procedures underpinned by appropriate training or managers and employees, outlining

organisational values and the rights and responsibilities o individuals.

Conflict management and the changing regulatory framework



17/23

The beneits o investing in managing conlict at work

Improved team morale and productivity, as well as improved working relationships,

are identified by respondents as the key benefits from effective conflict management.

Respondents cite a range o beneits that training in perormance and productivity. In all, 13% o

conlict management has delivered or the business. respondents say conlict management training has

Almost a third report a reduction in the number o helped reduce employee absence levels, 12% have

disciplinary and grievance cases, 28% think there has seen a reduction in employment tribunal claims and

been an improvement in employee morale and 25% 10% report a reduction in employee turnover. See

believe there has been an increase in team Table 9.

Table 9: Beneits reported as a result o training or coaching in conlict management skills (% o respondents)

Average

Manuacturingand

production

Privatesector

servicesNon-proit


Helped improveteam perormance/productivity

25 27 28 28 21

Helped improveteam morale 28 25 31 29 24

Helped reduceabsence levels 13 16 14 12 11

Helped reduceemployee turnover 10 11 12 16 9

Reduced the number oormal disciplinary andgrievance cases

31 33 33 28 31

Reduced the numbero employment tribunalclaims received

12 9 14 7 12

No impact 7 6 6 3 9

Dont know 23 27 25 29 14



18/23

HR practitioners also report signiicant beneits or

individuals as a result o the delivery o conlict

management training. Nearly hal o respondents

believe individuals are more comortable and conidentin handling conlict issues as they arise. More than a

third o respondents say that training helped individuals

achieve more positive outcomes or both parties when

conlict occurs, while almost one in our report that

conlict management skills training helped people

perorm better and avoid conlict in the irst place.

The survey ound that i conlict is properly managed it

can have positive eects in the workplace. When asked

what good they personally have seen come o conlict,

HR respondents point to a better understanding o

others, improved working relationships and better

solutions to problems. Almost a third o respondents

say they have seen the creation o more productive

work environments as a result o eectively managedconlict. See Table 10.

At an organisational level, one in three (34%) HR

practitioners say that better teamwork is the single

biggest potential gain as a result o the eective

management o conlict, ollowed by higher employee

engagement at 30% and improved productivity and

greater internal eiciency at 12%. Respondents were

asked to identiy what they regard as the most

signiicant potential beneit or their organisations rom

managing conlict eectively. See Table 11.

Table 10: Positive outcomes personally experienced by respondents as a result o eectively managed conlict at work(% o respondents)

Average

Manuacturingand

production

Privatesector

servicesNon-proit


Better understanding o others 63 67 61 57 67

Increased motivation 14 16 15 14 12

Better solution to a problem/challenge 43 44 44 54 39

A major innovation/idea was generated 5 2 6 11 4Improved working relationships 59 66 60 59 53

A more productive environment 31 29 30 32 33

No positive beneits experienced 12 11 12 6 13

Table 11: The biggest potential beneits or organisations that manage disputes in the workplace eectively.

Respondents (%) identiying the ollowing as the single most important potential gain or their organisation as a

result o eective conlict management.

Manuacturing Private

and sector Non-proit PublicAverage production services organisations sector

Higher engagement people wouldbe more consistently committed to 30 30 28 16 34their work

Improved productivity people wouldbe more ocused and results-oriented

12 11 11 7 13

Better teamwork 34 37 37 37 28

Enhanced retention

Better customer service 4 1 3 8 5

Greater internal eiciency 12 13 9 20 13

Improved worklie balance 3 2 4 7 4



19/23

Conclusions

Conlict between individuals is an unavoidable part o

working lie. However how disputes are managed will

determine whether there is positive resolution or

damaging allout or both employees and the

organisation. Nearly hal o HR practitioners

responding to the survey report they manage conlict

continually or requently, spending an average o

nearly 160 hours per year each, dealing with individual

employment disputes.

To a signiicant degree this conlict is caused by ailure

to manage interpersonal relationships eectively, poor

leadership rom the top o the organisation and

inadequate line management. In addition three-

quarters o HR practitioners surveyed are not satisied

with managers eectiveness in handling workplace

conlict.

A problem identiied by the CIPD 2007 Managing

Conflict at Worksurvey report is that organisations are

increasingly relying on their HR departments to

manage conlict as managers shy away rom tackling

disputes in case they do or say something that might

be held against them during any ormal proceedings.

This approach is counterproductive; by the time adispute has escalated to the point where the

disciplinary procedure has been triggered or a ormal

grievance lodged, opinions are oten hardened. Worse,

conrontational stances on both sides have developed

that are very hard to change. To prevent this it is

essential that HR practitioners ensure that managers at

all levels have the skills, knowledge and conidence to

identiy and manage workplace disagreements at an

early stage.

Poorly managed conlict is a major cost to the

business, with hal or more o respondents citing

sickness absence, sta turnover and bullying and/or

harassment as the consequences o dispute escalation

in the workplace. Where training in conlict

management has been delivered, HR practitioners

identiy a range o beneits or the business including

improvements in team morale and productivity and a

reduction in the number o ormal disciplinary and

grievance cases.

Managing conlict at work or line managers is an

integral part o good people management. Managers

must be sensitive to how their employees are

interacting, as well as how they are handling any

increase in their workloads or organisational change.

Managers need also to be conident in intervening at

an early stage i there are signs that employees are in

dispute, or there is any hint o bullying behaviour

emerging, or o indications that anyone is suering

rom stress. Managers are best placed to establish the

cause o any problem as soon as it emerges and ind a

resolution beore attitudes have hardened and

conrontational stances have had time to develop.

The CIPD has produced a managing conlict at work

competency ramework ollowing research jointly

sponsored by the CIPD and the Health and Saety

Executive involving interviews with nearly 400

managers and employees, which identiied the most

important management behaviours or helping

managers prevent and manage conlict in the

workplace. See Table 12 on page 22.



20/23

Management competencies for managing

conflict at work

Monitoring team relationships and managing

the individualIn any team there will be tensions or disagreements

that arise rom time to time, but managers should be

aware o signs that serious disputes are developing

and whether any individuals behaviour or perormance

is creating disharmony. Managers must also be aware

that dierent personality types will deal with conlict in

dierent ways. Some people will show their

annoyance very quickly and openly by conronting

someone as soon as their behaviour bothers them, or

making their displeasure over work issues very clearly

known. Other people may on the surace appear more

laidback and tolerant but will be gradually getting

increasingly unhappy with a colleague, their manager

or a work problem until they lose their temper

spectacularly, oten over something quite minor that

has proved to be the last straw. Some individuals will

sulk and become withdrawn when they have a

grievance or cannot cope at work. This is why

managers should try and get to know the employees

in their team or department as people and ind ways

to have regular inormal conversations to help pick up

on the irst signs o uture conlict.

Dealing with issues

Managers must have the conidence to deal with

issues as soon as they arise. Managers must be

sensitive to when banter becomes bickering or when

teasing starts to have a hurtul edge. Managers should

not ignore underlying tensions that are developing in

their teams. It is vital that managers have regular,

inormal one-to-one conversations with the people

they manage so that these kinds o issues can be airednaturally where possible. However managers must also

be prepared to be proactive and initiate inormal

discussions i they think a problem is brewing.

Participative approach

All managers should have inormal mediation skills to

allow them to step in and resolve disputes beore they

escalate. Managers can help individuals in dispute

identiy what is at the root o their disagreement,

what they need to happen to resolve matters or move

orward and any changes or compromises theyre

prepared to make in their behaviour or attitudes.

Use of official processes

O course, although all eorts should be made to

resolve workplace conlict inormally at an early stage,

there will be many instances where ormal disciplinary

action should be taken. Managers must not shy awayrom using the disciplinary process where an

individuals misconduct or perormance demands it.

Managers should ensure that all employees

understand the ormal disciplinary and grievance

procedures that are in place, while emphasising that

eorts will be made to resolve matters inormally

wherever possible when disagreements arise.

Acting as a role model

Managers must be seen to set an example by

ollowing the organisations policies and procedures,

being consistent in how they deal with the team and

not showing avouritism. As well as spelling out what

behaviour is not tolerated managers should also

demonstrate what positive behaviours employees

should aspire to, both in terms o how they interact

with each other and other people in the organisation,

as well as customers, clients and the public.

Integrity

I managers are to create working relationships with

the individuals that they manage which are based on

mutual trust and respect, then they have to make sure

they protect peoples privacy and respect conidential

inormation. People who trust their line manager are

more likely to talk to them openly i they are having

diiculties, whether in the workplace or at home, that

might lead to or contribute to conlict at work.

Managers who are not even-handed in how they

manage people will create resentment and disharmony

in the workplace and undermine employeeengagement. Managers that ail to treat all employees

with the same importance are also more vulnerable to

being accused o discrimination regardless o the

motivation behind the behaviour.



21/23

Table 12: Managing conlict at work: a competency ramework or line managers

Examples o manager behaviour

Competency Positive Negative

Actionorientation

Dealing with issues

interveningquicklyincasesofconlict

dealingwithconflictheadonprotectingemployeesby

removing them rom conlictsituations

removingadisruptiveteammember when necessary

followinguponconflictsafterresolution

avoidingconfrontationleavingconflictsbetweenteam

members to sort themselves outnotaddressingbullyingallowingasituationtodevelop

beore interveningsteppingintointervenein

conlicts without understandingthe issues

allowingadisruptiveteammember to return to the team

Use o oicialprocesses

communicatingproceduresand policies available to eachemployee

useallavailableprocedurestoinvestigate incidents o abuseusingofficialprocedurestosetan example o how seriouslycomplaints are taken

escalatingissuestoseniormanagement where appropriate

makingacomplaintofficialbeore seeking to resolve locally

makingacomplaintofficialagainst the complainants wishes

notfollowingcorrectprocedurein dealing with a conlictusingredtapeassociated

with procedure to discourageemployees rom making oicialcomplaints

Te

amf

ocus

Participativeapproach

actingasamediatorinconflictsituations

speakingtoeachpartyindividually

bringingbothsidestogethertocommunicate

supportingbothsidesinacomplaints procedure

gatherideasofhowtoaddressthe issue with the team

takingsidesnotgivingequaltimetoeachside

o the conlictspeakingtoemployeesina

parent/child mannernotlisteningtoemployee

complaints

Monitoring teamrelationships

beingawareoftensionandkeeping it at a low level

pickinguponsquabblesbeforethey lead to conlict

acknowledgingwhenateammember is causing stress toothers

n/a

Personalstyle

Acting as arole model

maintainingprofessionalismbeingclearaboutexpectationsof

team conductnottoleratingbackbitinginthe

teamshowingnointerestinoffice

politics or gossip

losingtemperwithindiscussionsdeliberatelycreatingconflictin

the teamengaginginconflictwithother

managersengaginginconflictwith

employees

Integrity

keepingemployeeissuesprivate

and conidential

treatingallemployeeswiththesame importance

makingpublicwherecomplaints

have come rom

bullyingemployeesthreateningemployeesunfairly

with disciplinary action



22/23

Background to the survey

In May 2008, a total o 8,278 HR practitioners were

invited to take part in an online survey into leadership

and how conlict at work is managed. The online

questionnaire included 35 questions on the impact and

causes o conlict in the workplace, as well as on how

conlict is managed and the potential beneits o doing

so eectively.

A total o 660 useable replies were received, creating a

response rate o 8%. In all, 27.2% o responses were

rom manuacturing and production organisations,

39.7% o responses were rom private services

employers, 8.8% o responses were rom the non-proit

sector and public sector responses accounted or 28.2%.



23/23

OPP is one o Europes leading business psychology irms. We work with multinational

organisations, including more than hal o FTSE 100 companies, in some 25 countries. Our

products power the oerings o business schools and consultancies that use our tools with

industry-leading companies, globally. OPPs world-class products and training, and our ocus on

quality and integrity, are the oundation or OPPs strong reputation. Our portolio o brands

include MBTI Step I, MBTI Step II, 16PF, FIRO-B, and TKI in which we provide qualiication

programmes and a range o continuing proessional development oerings.

We explore leading-edge people management and development issues through our research.

Our aim is to share knowledge, increase learning and understanding, and help our members

make inormed decisions about improving practice in their organisations.

We produce many resources on managing conlict including guides, books, practical tools,

surveys and research reports. We also organise a number o conerences, events and training

courses. Please visit www.cipd.co.uk to ind out more.

Chartered Institute o Personnel and Development

151 The Broadway London SW19 1JQ

Tel: 020 8612 6200 Fax: 020 8612 6201 ber2008

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Leadership Conflict