Title: CONFLICT MANAGEMENT SYSTEM DESIGN
1CONFLICT MANAGEMENT SYSTEM DESIGN
2A recent survey revealed that
- 62 of respondents indicated they would be more
willing to take legal action regarding employment
discrimination than they had been 5 years before. - 78 believed that some, most or all employers
engaged in some kind of discrimination in hiring
or promotion.
3 Between 1970
and 1989
- Federal Civil caseload increased by 125 BUT
- Employment Discrimination case filings increased
by 2,166 -
4 TIME SPENT
- It takes an average of 2 years for the EEOC to
investigate a claim. - The median time between the date a lawsuit is
filed and the commencement of a civil trial is
2.5 years. -
- Benefits from cases
- handled by the EEOC increased from 12.7 million
to 34.5 million. -
5A Survey of over 530 corporations in the Fortune
1000 category revealed
- 90 view ADR as a critical cost-control
technique. - 88 reported using mediation in the previous 3
years - 23 used grievance procedures for nonunion
employment dispute resolution.
6Among corporations that developed collaborative
conflict management systems
- Brown and Root reported an 80 reduction in
outside litigation costs. - NCR reported a 50 reduction in litigation costs
and - a drop of pending lawsuits from 263 in 1984 to
28 in 1993.
7WHY ADOPT A CONFLICT MANAGEMENT SYSTEM?
- Cost reduction
- Quicker resolution at an earlier stage
- Privacy
- An interest based solution
- Underlying issues can be addressed
8WHY ADOPT A CONFLICT MANAGEMENT SYSTEM?
- Increased communication and trust
- Fewer charges are filed with government agencies
- Diversity
- Cultural change is fostered.
9TYPES OF PROGRAMS
10EXAMPLES/COMPONENTS
- A conflict management person, committee or
department.
11EXAMPLES/COMPONENTS
12EXAMPLES/COMPONENTS
- Voluntary or mandatory policies on mediation or
arbitration.
13EXAMPLES/COMPONENTS
- Panels of external or internal third party
neutrals.
14EXAMPLES/COMPONENTS
15EXAMPLES/COMPONENTS
- Neutral fact-finding providing
- a nonbinding report.
16THE PLAN SHOULD ALSO INCLUDE
- Policies for cost sharing with employees.
- Conflict management training for all employees.
- A system for feedback.
17DESIGNING A PROGRAM
- The best programs probably include a
- combination of components.
18DESIGNING A PROGRAM
- BEFORE DESIGNING A PROGRAM
- Determine your needs.
19DETERMINE YOUR NEEDS
- Is your organization large enough to justify
creating a system? - Will this conflict management system fit with the
organizations culture? - Does the level of conflict justify a conflict
management system?
20DESIGNING A PROGRAM
- AFTER DESIGNING A PROGRAM AND AGAIN AFTER ITS
IMPLEMENTATION - Determine if the plan is cost effective.
- Consider the price for
- Developing
- Implementing
- Maintaining
21STEPS FOR DESIGNING A PROGRAM
- Form a committee that is representative of the
workforce. - Identify specific problems and needs.
- Design the program.
22STEPS FOR DESIGNING A PROGRAM
- Try a pilot program.
- Evaluate the results.
- Publicize the program and educate the workforce
about it.
23STEPS FOR DESIGNING A PROGRAM
- Implement the program.
- Collect feedback, evaluate the information, and
make necessary revisions to the program.
24 25LEGAL CONCERNS ASSOCIATED WITH MANDATORY
ARBITRATION
26Arbitration can save parties 70-80 of the cost
of litigating these cases. Ed Anderson,
National Arbitration ForumArbitration still
costs less than litigation. The Wall Street
Journal
27 A four-year survey of
litigation cost versus
arbitration/mediation
cost showed
- Arbitration cost was half the cost of traditional
litigation. - Mediation was one-third the cost of traditional
litigation
28 COST OF LITIGATION
- Court Filing Fees 100-250
- Cost of Judges Services 0
29 COST OF ARBITRATION
- AAA Fees
- Employer-promulgated plans 500
- Individually negotiated agreement
- 500 for claims up to 10,000
- Ranging to several thousand dollars for claims in
the millions - Cost of Arbitrators Services
- 150-300 per hour or
- 600-1000 per day
30LEGAL CONCERNS ASSOCIATED WITH MANDATORY
ARBITRATION
- Lack of participation in selecting the neutral.
- Confidentiality.
- Elimination of remedies.
31LEGAL CONCERNS ASSOCIATED WITH MANDATORY
ARBITRATION
- Adequate notice.
- Procedural limitations.
- Curbs on discovery
- Time limits for the hearing.
32CONSIDERATIONS
- Should agreement with the policy be a condition
of employment? - Should the decision to mediate/arbitrate be made
only after a dispute arises? - Should a new program apply only to new employees?
33CONSIDERATIONS
- What effect will the plan have on morale?
- If plan is perceived as being fair, will
complaints increase?
34 Keep in mind..
- If your plan is challenged in court, for whatever
reason, there may be no cost saving.
35 A California Court
recently observed
- We spend too much time trying to make sense
out of arbitration agreements
36 A California Court
recently observed
- Oftentimes the remedy is worse than the
disease.
37- Organizational Conflict Management Check Up,
www.mediate.com/pfriendly.cfm?id1417