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CONFLICT MANAGEMENT SYSTEM DESIGN

CONFLICT MANAGEMENT SYSTEM DESIGN. A 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.

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CONFLICT MANAGEMENT SYSTEM DESIGN

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  1. CONFLICT MANAGEMENT SYSTEM DESIGN

  2. A 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.

  5. A 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.

  6. Among 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.

  7. WHY ADOPT A CONFLICT MANAGEMENT SYSTEM? • Cost reduction • Quicker resolution at an earlier stage • Privacy • An interest based solution • Underlying issues can be addressed

  8. WHY ADOPT A CONFLICT MANAGEMENT SYSTEM? • Increased communication and trust • Fewer charges are filed with government agencies • Diversity • Cultural change is fostered.

  9. TYPES OF PROGRAMS • Ad hoc • Formal policy

  10. EXAMPLES/COMPONENTS • A conflict management person, committee or department.

  11. EXAMPLES/COMPONENTS • Ombudsperson.

  12. EXAMPLES/COMPONENTS • Voluntary or mandatory policies on mediation or arbitration.

  13. EXAMPLES/COMPONENTS • Panels of external or internal third party neutrals.

  14. EXAMPLES/COMPONENTS • Peer review panel.

  15. EXAMPLES/COMPONENTS • Neutral fact-finding providing a nonbinding report.

  16. THE PLAN SHOULD ALSO INCLUDE: • Policies for cost sharing with employees. • Conflict management training for all employees. • A system for feedback.

  17. DESIGNING A PROGRAM The best programs probably include a combination of components.

  18. DESIGNING A PROGRAM • BEFORE DESIGNING A PROGRAM: Determine your needs.

  19. DETERMINE YOUR NEEDS Is your organization large enough to justify creating a system? Will this conflict management system fit with the organization’s culture? Does the level of conflict justify a conflict management system?

  20. DESIGNING 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

  21. STEPS FOR DESIGNING A PROGRAM • Form a committee that is representative of the workforce. • Identify specific problems and needs. • Design the program.

  22. STEPS FOR DESIGNING A PROGRAM • Try a pilot program. • Evaluate the results. • Publicize the program and educate the workforce about it.

  23. STEPS FOR DESIGNING A PROGRAM • Implement the program. • Collect feedback, evaluate the information, and make necessary revisions to the program.

  24. IS YOUR PROGRAM FAIR?

  25. LEGAL CONCERNS ASSOCIATED WITH MANDATORY ARBITRATION • Avoidance of high costs

  26. “Arbitration can save parties 70-80% of the cost of litigating these cases.” Ed Anderson, National Arbitration Forum“Arbitration 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 Judge’s 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 Arbitrator’s Services: • $150-$300 per hour or • $600-$1000 per day

  30. LEGAL CONCERNS ASSOCIATED WITH MANDATORY ARBITRATION • Lack of participation in selecting the neutral. • Confidentiality. • Elimination of remedies.

  31. LEGAL CONCERNS ASSOCIATED WITH MANDATORY ARBITRATION • Adequate notice. • Procedural limitations. • Curbs on discovery • Time limits for the hearing.

  32. CONSIDERATIONS • 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?

  33. CONSIDERATIONS • 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: “[W]e 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?id=1417

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