Conflict Resolution Processes (DP IB Business Management): Revision Note

Resolving conflicts

• Conflict resolution is the steps taken by leaders and employees (or their representatives) to solve disagreements in the workplace

  • Successful conflict resolution usually requires the needs of both the business and its employees to be met

  • There is a range of ways to resolve workplace conflict

    • Conciliation & arbitration

    • Employee participation

    • Industrial democracy

    • No-strike agreements

    • Single-union agreements

Conciliation and arbitration

• Conciliation involves an independent mediator helping two conflicting parties reach a compromise

• Arbitration is when an independent third party makes a decision to resolve the dispute

• In non-binding arbitration, the decision can be accepted or ignored

• In binding arbitration, the decision must be accepted by both parties

• Pendulum arbitration is binding and makes a decision in favour of one party without compromise

  • E.g. In 2019, Prospect union and Hial (Highlands and Islands Airports Limited) asked Acas to help with a pay dispute. Air traffic controllers had increased their pay demands, but Hial refused to increase wage budgets

Employee participation

• Involves giving employees some control or responsibility within the organisation

• Methods include teamwork, suggestion schemes, quality circles, and worker panels

  • E.g. At Pixar animation studios, employees are encouraged to collaborate and share ideas. Teams work together on creative projects and take part in decision-making processes

Industrial democracy

• Workers are given significant input into business decision-making

• Common in worker-owned businesses and co-operatives

  • E.g. At the John Lewis Partnership, employees (called partners) help shape how the business is run. They elect representatives to local forums and share in the company’s profits

No-strike agreements

• An agreement between a business and union members to avoid strike action during conflicts

• These deals can build trust and improve the reputation of trade unions

• Businesses may be more open to negotiation as a result

  • E.g. Ahead of the 2024 Paris Olympics, French air traffic controller unions, including SNCTA, agreed to a no-strike period following talks with the French Directorate General of Civil Aviation

Single-union agreements

• The business agrees to negotiate with just one trade union rather than several

• This can make resolving workplace issues simpler and more efficient

  • E.g. In 2023, Starbucks began negotiating with the Starbucks Workers United union. Early agreements included a $20 starting hourly wage, a 32-hour minimum week for full-time staff, and card tipping in all stores