In our organizations too, although we sometimes disagree with our coworkers based on our different roles, perspectives, or styles, we generally reach mutually agreeable and often creative resolutions without coming to literal or figurative blows. We don’t always do so fully or based on a deep understanding of the complexities involved. Neither do we always arrive at agreements that are entirely satisfying to both parties. Nevertheless, daily life would be intolerable and our organizations would grind to a halt if we were unable to compromise well enough to coexist with each other in a state of relative tolerance and truce.

A World of Contradictions

It is usually a mark of social maturity (and not inconsiderable relief) when we can find ways to live and work with each other despite our differences. Sometimes, though, one of the parties may choose to steer clear of those they are in conflict with (avoid the person), circumvent the difficult circumstances (avoid the conflict), or just take themselves out of the situation by moving on (change their environment through flight). This can happen because of imbalances of power between the parties, insufficient communication or conflict-resolution skills, or a lack of incentive for or investment in continuing the relationship.

“Why can’t we all just get along?” asked Rodney King famously, echoing the sentiments of many of us who have at some point or another wondered about the seeming intractability of human conflict.

When employees find a work situation unbearable, they can almost always change their environment and leave for greener pastures. In the days when the economy was booming and opportunities seemed unlimited, unhappy employees merely called a headhunter, sent out a dozen resumes, and were soon swamped with job offers. Employers, on the other hand, found themselves in the position of needing to offer stock options, casual Fridays, flextime, daycare facilities, foosball, and other company perks to attract and retain the best-skilled workers in the market.

Today, while the economy is looking far better than it has in the past couple of years, the employment market is, particularly in some industries, still very tight. In an uncertain economy or an exceptionally tight job market, when good, well-paying jobs are at a premium, even if an individual wishes to flee a challenging work situation, he or she may find it difficult to do so. Beyond a weak economy there may be many other reasons why employees may be forced to stay in jobs that they are unhappy in. They may do so because of health issues, the diminishing market for their specific skills, or a desire not to disrupt their family stability. Disgruntled workers may also stay where they are to protect their pensions or simply because they are unmotivated or lack the confidence to start afresh in a new environment.

Whatever their particular circumstances, in my work as a conflict resolution professional, I sometimes come across individuals who are unhappy in their present jobs as well as people who see themselves as “a bad fit,” philosophically and operationally, with their organizations or their coworkers. As a result, they can’t maintain their customary level of performance and feel demoralized. Disaffected workers in this situation end up living in a world of contradictions, at once fearful of losing their jobs because of sub-par performance, yet dreading going into the office each day. Managers on the other hand, while sensing dissatisfaction and affected by a loss of morale in their teams, are not always able to fire employees who, while evidently unhappy, are still productive.

The costs involved in replacing employees, the possibility of wrongful termination and discrimination suits, and the fear of stoking further dissent in the teams discourages them from ending the relationship.

The impact of this dynamic on the organization is considerable. When disgruntled employees stay for want of other viable options, they are often unable or unwilling to pull their weight. This behavior in turn diminishes organizational morale, because others become resentful at having to pick up the slack. Communication is affected across the board as unhappy employees become sullen and uncooperative. Teamwork suffers because of the forming of cliques and the creating of “in” and “out” groups. If management doesn’t address the problem, dissatisfaction can spread to other employees, productivity and performance may soon be compromised, and, in extreme cases, the company’s survival could be at stake (see “Growing Worker Dissatisfaction”). Again, even as these employees hang in during the tough economic times, as soon as the economy and the job market improve, they are generally out the door like a shot.

From Collaborator to Contrarian

Take the case of Nancy Miller*. When she took the position of vice president of marketing at New England Computers Inc. (NECI) in March 2001, she was confident that her career was on the upswing. For the first year or so, the challenges of the new job and the prospects of making her mark in the company brought out the best in her. By the middle of 2002, however, things had changed. NECI merged with a larger company operating out of Texas, becoming Nexus Telecom Inc. A new president replaced the one who had hired her, bringing a completely different style to the organization. Then the economic downturn and the bankruptcies of two of the company’s best customers put immense pressure on the marketing team.

While Nancy and Billy Wayne, the new president, shared a common interest in the profitability and growth of the company, their approaches to marketing seemed remarkably different. Also, whereas Nancy once had the president’s ear, she now had to go through Wayne’s executive assistant, Sandra, a brilliant young Ivy-league MBA who was evidently being groomed for bigger things. In the beginning, Nancy had tried to be friendly and welcoming to Sandra, but over time it became clear that they didn’t have much in common. The loss of access to the president, the frustration at not being able to guide the marketing direction of the company, and the increasing sense that she was being marginalized contributed to Nancy’s assessment that perhaps the time had come for her to change jobs.

Nevertheless, after a couple of months of casual networking and many discreet inquiries, Nancy found that there were few jobs on the market. At networking events, she kept running into former colleagues, now unemployed, who had been unable to find comparable positions for more than six months. Nancy’s husband and friends advised her to wait until the economy improved before making a change. Unable to move to a job that would better suit her needs, skills, and style, she remained frustrated.

Thus Nancy, who prided herself on being collaborative and a “people” person and who prized a positive attitude above all else, found herself increasingly unhappy and dreading the thought of going into work each day. Being a consummate professional, she tried to hide her feelings and function in a reasonably civil manner with her colleagues. However, her heart was not in the job anymore, and her frustrations came out in small ways. Her relations with the president’s assistant became cold and veered toward hostility. With the president, whom she had difficulty trusting, she became even more detached.

Even with her own colleagues in marketing, Nancy was unable to summon the kind of passion and humor that she brought to all her previous positions. She became less forgiving of minor administrative infractions, easily upset when things didn’t go according to plan, nervous about closing deals, and paranoid about losing her remaining accounts. She took to speaking disparagingly to her friends outside the company about the “boys from Texas.” Soon her negativity and frustration found expression with some of her staff and especially her friends in human resources, some of whom, like her, were less than enamored about the changes that came with the merger.

GROWING WORKER DISSATISFACTION

When disgruntled employees stay for want of other viable options, they often set off a vicious cycle of growing discontent in the organization. If management doesn’t address the problem, dissatisfaction can spread to other employees, productivity and performance may soon be compromised, and, in extreme cases, the company’s survival could be at stake.

In a matter of a couple of short months, the atmosphere in the organization, especially on the fifth floor where the marketing department shared space with the president’s staff and human resources, had become unbearably toxic. Cliques formed where there once had been a general sense of camaraderie; morale plummeted in the face of gossip; and productivity slipped as working groups and individuals became less forthcoming with information and pursued different and often competing agendas.

What can the company do at this point? Firing Nancy would be difficult, because she continues to be productive and meet her targets. Also, this kind of staff change would likely increase workers’ feelings of insecurity and contribute to distrust of the new leadership. In any case, although Nancy is near the eye of the conflict, she probably is not the problem herself. The issue of employee dissatisfaction and breakdown of communication is widespread and systemic within the merged organization.

Creating Trust and Open Communication

To begin to address this kind of growing crisis, top managers must first try to understand where some of the conflicts are coming from and to reestablish healthy and useful communication horizontally and vertically within the organization. By doing so, the organization can work toward a common vision with a sense of purpose, building trust and team spirit between the staff and management and across divisions and departments.

This can seem like a chicken-and-egg situation, since honest and open communication requires an environment of trust, while some will have difficulty trusting until the other party has demonstrated their ability to communicate honestly and openly. The manager, under these circumstances, needs to put in place confidence-building measures to improve communication, review existing mechanisms for dealing with grievances, and make whatever changes are necessary to create a better climate within the organization.

Regardless of whether this process is done internally or through the services of an external consultant, the inquiry needs to focus on the reasons for the disaffection and the possible differences in goals that may have evolved between employer and employee. Once both parties recognize where the disagreements are, if any, they need to be able to navigate and negotiate through them, bearing in mind the larger goals and mission of the organization. During this process, the facilitator can help participants find ways to hear and meet the legitimate needs of the other party, while ensuring that their own needs and those of the organizations are honored.

After the initial anxieties that are brought to the fore by the shock of honest expression are resolved, this process can create a powerful and open climate where people are listened to and feel understood, and can strive to achieve common goals. Another important benefit of this approach is the creation of a more relaxed and trusting work atmosphere and the building of stronger organizational loyalties. In some situations in which the divide between individual and organizational goals proves insurmountable, management will have to move that person to a more appropriate job within the organization or assist him or her in transitioning out.

When an organization invests in this process, it demonstrates its responsible, caring, and humane side. Employees reciprocate by feeling happier, more secure, and more cooperative than before.

It is useful to think of conflict as an early warning sign that tells of an impending disconnect between the systems that we have in place and the changing circumstances.

Listed below are some specific steps that managers can take to address the issue either through marshaling its own internal resources or by calling in an outside consultant. These can be divided into “Problem Specific” actions, which address immediate needs and concerns, and “Systemic” actions, which focus on developing long-term solutions.

Problem-Specific Approaches

1. Communicating: The first thing a manager can do is to initiate a private conversation with the employee with a view to listening carefully, without judgment, to his or her complaints.

2. Understanding the Other’s Interests: The manager needs to understand the employee’s basic interests (needs, desires, and concerns), differentiating these from positions he or she may be taking from a place of fear or frustration.

3. Articulating One’s Own Interests: After having clearly understood where the employee is coming from, the manager can try to make clear his or her own basic interests and those of the organization.

4. Appreciating Similarities and Differences: Once both parties understand each other’s interests, they have a better handle on where the differences exist and on the true nature of the conflict.

5. Negotiating: The manager can now try to meet some of the employee’s genuine needs. This might require some creative problem solving (increasing the size of the pie!) as well as negotiation.

6. Agreeing: This conversation might result in agreements that include accommodations and compromises that both parties can live with.

7. Maintaining the Relationship: Once the negotiation is complete and agreements have been made, periodic check-ins are necessary to ensure that the agreements are working and the lines of communication remain open.

Systemic Approaches

1. Assessing the Conflict: Management (either internally or by bringing in a consultant) needs to assess the organizational climate and study the nature and source of the conflicts within the organization.

2. Designing an Intervention: Based on the findings in the assessment phase, a team makes recommendations for strategies or interventions to be implemented.

3. Training and Education: It is possible that the first intervention may be to offer a communication and conflict-resolution training program for all employees to help develop some organization-wide capacity in this arena.

4. Mediating: Managers who have significant interpersonal issues to deal with could be offered an opportunity to meet with a mediator.

5. Revisiting the Mission and Vision: In some cases, it might be necessary to reexamine the corporate vision and mission in light of the changed internal and external circumstances, the needs and goals of the larger organization, and those of the individual employees.

6. Designing Procedures and Protocols: Organizations need to design and put in place a conflict-response and management system, such as sophisticated grievance procedures and reporting protocols, that gives the organization the tools and mechanisms to deal with disputes and conflicts when they arise.

7. Institutionalizing an Ombudsman: The organization may find it useful to appoint from within or hire an ombudsman who can objectively weigh in on contentious issues.

8. Coaching: The organization can also ensure that all senior managers, especially those in leadership positions, have access to individualized executive coaching services to enable them to function at optimum levels.

Organizations may, depending on the context and their specific needs, build into their system some or all of these mechanisms and procedures. Beyond the challenges of dealing with unhappy employees who won’t leave and whom you cannot or choose not to terminate, this approach also has broad applicability in most any interpersonal conflict that occurs in the workplace.

Creative Opportunities in Limited Choice

Immigrants whose right to live in this country is tied to their job have long experienced the challenges of not being able to leave a difficult work situation. Because of the many restrictions inherent in the employment visa, newcomers who come to the United States on an employer-sponsored work permit (such as the H1B visa) often have less flexibility than their colleagues who are citizens or permanent residents. Changing jobs for them entails not just getting a job offer, but the legal hassles and the expense of switching sponsorship from one employee to another.

Some of the frustrations that these workers experience are similar to Nancy’s; however, they are exacerbated by the additional insecurity of being at risk of having to leave the country should they lose their job. Sometimes, though, such situations can present creative opportunities that, strangely enough, come from having limited choice.

In one case, a new immigrant, Rathin, had major conflicts with his supervisor, John. He was so miserable that he considered quitting his job. However he knew that were he to leave the job, he would most likely have to leave the country too, having been sponsored for employment by his company. Not willing to completely disrupt his life, Rathin was forced to adopt innovative ways in which to rebuild his relationship with John, something he might not have tried were he able to easily move on to another job. He decided to ask for an opportunity to go in for mediation with John.

The company agreed to the expense, and both John and Rathin met with a mediator for a couple of sessions. As a result, both employee and manager gained a better understanding of where each of them was coming from, each other’s needs, and the possible causes for frustration.

They were able to communicate better with each other, and they became more sophisticated in dealing with difficult and potentially contentious matters. They were also able to resolve many of the tensions that had prevented them from working well together. Rathin and John now have worked their way to a good professional relationship, and Rathin enjoys his job tremendously.

In this context, conflict is not something to be avoided; it is simply a sign of problems within the organization. In our increasingly complex and ever-shifting world, it is useful to think of conflict as an early warning sign that tells of an impending disconnect between the systems that we have in place and the changing circumstances. It can also tell us of the possible need to reexamine our own philosophies, assumptions, and biases, however well they may have served us in the past.

While conflicts often cause discomfort, are unpleasant, and illuminate the cracks in the system, they also present opportunities for deeper learning, growth, and meaningful change, if we address them creatively and with skill. Today these skills are available to organizations in the shape of a wealth of research, knowledge, and literature on the subject and through access to professionals who have been trained to help individuals and organizations deal with conflict.

Ashok Panikkar (apanikkar@vantagepartners.com) is a communication and conflict-resolution professional. He is presently employed at Vantage Partners, a management consulting firm specializing in building both organizational and individual expertise in negotiations and managing critical relationships.

The post Working in an Unhappy Place: Reengaging Disaffected Employees Through Conflict Resolution appeared first on The Systems Thinker.

Southwest Airlines—which has practiced servant-leadership for 33 years — is one company that has managed to thrive in the face of adversity. In 2001, the company was the only major airline to make a profit. It regularly ranks in the top 10 of the “100 Best Companies to Work for in America.” In a company that is 85 percent unionized, Southwest has been able to develop high loyalty among its people because it instilled the “soft stuff into its organizational processes from its inception.

Preparing for Bad Times

Chairman Herb Kelleher’s motto for both Southwest employees and the airline as a whole is “Manage in good times to prepare for bad times.” To succeed in today’s marketplace, the company cross-trains employees and increases their skill base so that individuals at all levels can take personal responsibility for keeping the company marketable, maintaining high-trust relationships, and identifying effective options for dealing with transitions. In addition, Kelleher and other leaders inspire loyalty by communicating openly and truthfully with their staff, respecting the lifework balance, and fostering continuous learning. Southwest employees know that their voices matter and that they can implement new programs, make decisions, and help customers in times of need. A guiding principle is: If you use your best judgment to do what is right, your leaders will stand behind you.

Southwest Airlines — which has practiced servant-leadership for 33 years — is one company that has managed to thrive in the face of adversity.

Over the years, Southwest management has gone to extreme lengths to avoid layoffs. During the Gulf War, when fuel prices rose so much that the company lost money every time an airplane took off, Kelleher promised to do everything in his power not to address the challenge by laying people off. He, top leaders, and many employees took voluntary pay cuts to keep the company profitable. More recently, following September 11, Southwest was the only airline that did not lay off any workers or reduce its flight schedule.

One reason why the airline doesn’t lay people off has to do with its hiring practice: It looks for attitude before experience, technical expertise, talent, or intelligence. “We can train people to load a plane, take reservations, or serve passengers,” says Kelli Miller, Southwest Airlines marketing manager for Utah. “What we can’t train is good attitude or ‘heart-based’ decision-making.” The company also consistently provides coaching and growth opportunities for people and weeds out non-performers within the first six-month probationary period.

Company managers profoundly understand the negative impact that layoffs can have on employee morale, trust, productivity, corporate memory, and, eventually, bottom-line results. Because they understand that long-term profitability comes from capitalizing on employees’ wisdom and capability, Southwest sees massive layoffs as merely “quick fixes” that often fail in the long run (see “Layoffs That Fail”).

The “Warrior Spirit”

Because of the company’s commitment to its workforce, Southwest employees perform at heroic levels on a daily basis and volunteer to make huge personal sacrifices on behalf of the company in hard times. Says Miller, “This last year has been Southwest’s biggest trial. But preparation for 9-11 didn’t start the day the terrorists struck. It began 30 years ago when the Southwest ‘Warrior Spirit’ was born — the will among leaders and employees alike to fight, to do whatever it takes to make the airline successful.”

Examples of heroic service abound. For instance, in the airline’s early days, when Southwest’s bank repossessed one of its four planes, forcing it to cancel a fourth of its flights, employees got creative. “We figured that if we could turn our planes in 10 to 15 minutes rather than 45, we could still keep the same number of flights even with one less plane,” explains Miller. “This significantly more efficient turn-time set a record in the airline industry. Since then, employees acting as partners to solve difficult business challenges and achieve unheard of levels of productivity has become our tradition and trademark.”

Following September 11, the company’s top three leaders volunteered to work without pay through the end of the year. Immediately, employees sought to help Southwest recoup lost revenue and pledged $1.3 million in payroll deductions. As an article in The Wall Street Journal describes, “Southwest has managed to remain profitable while all others have suffered huge losses. Why? Because of low cost and a productive work force. At no time have those advantages been more striking than right now. And the really interesting thing is that Southwest employees appear to have understood that.”

Donna Conover, executive vice president of customer service, points out that the company has high expectations for each employee. “Just doing your job well does not make you a good employee. The attitude and spirit toward others complete the needs the company has of that employee. As leaders, if we allow lack of teamwork or low productivity, we are being unfair to the rest of the team.” Time and again, Southwest employees have more than held up their end of this new employee-employer contract.

A Shining Example

Through the deep mutual trust and sense of ownership that characterize their cultures, Southwest and other companies that embrace servant-leadership have achieved remarkable results that put them at the head of their industries. These achievements don’t happen by accident or through guesswork — they are the result of leaders who commit to serving their employees and, in turn, providing their customers with the best products and service in the marketplace. This is a formula for success in even the most challenging economic climate.

To return to our opening question, “Does the soft stuff really work when challenges are tough and complex and the future of a company is on the line?” What we have repeatedly learned from clients who have practiced servant-leadership over several decades is that the strength of organizations comes from their people. You can’t micromanage people one day and expect them to think and act like owners the next. It takes a long time to grow business savvy at every level of a company. If you don’t begin early to invest in developing people, building mutual trust and respect, and engaging meaningful collaboration at all levels, you will not be able to leverage your employees’ potential when a major crisis hits. Servant-leadership offers a way for leaders to bring out the best in others by offering the best of themselves.

Ann McGee-Cooper, Ed. D., is coauthor of The Essentials of Servant-Leadership: Principles in Practice (Pegasus Communications, 2001) and founder of a team of futurists focusing on servant-leadership, creative solutions, and the politics of change. She has served on the Culture Committee of Southwest Airlines for the past dozen years.

Gary Looper is a Partner at Ann McGee-Cooper & Associates; Team Leader of the 10-organization Servant-Leadership Learning Community; and coauthor of The Essentials of Servant-Leadership.

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