1979). Media and Petrick (No Date) mentioned in their article, organizational management, and employee unions work better together if both acknowledge the other as a legitimate and valuable purpose. Management controls the resources and works environment of an organization while unions represent employees in getting the best terms and conditions of employment. Since the organization needs a happy, healthy, and productive workforce to meet its business goals, while employees need a place to work, it is obvious employers and employee unions are interdependent. Organizational conflict is competition for scarce resources, status incongruence, win-lose situations, the need for change, ambiguous rules, and communication problems among others (Abolade & Dupe, 2008). Conflict could arise because of employer’s quest to maximize …show more content…
Employees’ morale can also impact if they since the company doesn’t offer them the opportunities for a career path with advancement or recognition in the form of some reward for loyalty and dedication.
What Are the Consequences of This Problem?
Many consequences due to conflict directly affect an organization’s performance. Consequences due to conflict can be in the form of loss of productivity due to poor morale, absenteeism, violence, or theft. Organization might deal with lawsuits such as discrimination, illegal hiring practices, or sexual harassment. Lastly, the organization losing the public’s trust or confidence due to some of the reason listed above.
Consequences can be very costly for an organization, according to Thomas (2002) $700,000: is the average jury award in wrongful termination. Furthermore, $38,000: average claim paid in a sexual harassment case. Lastly, $6.4: the average amount, in millions, of punitive damages awarded in racial discrimination cases. Statistics data provided by the Rand Corporation relating to workplace litigations (Brim,