Critical Review On Conflict Management In Construction: Recommendations For Caledonian LLC (Essay).

Caledonian LLC is a medium sized construction organisation. In recent projects, they have been adversely affected by conflict between themselves and the client & within the organisation itself. And have struggled with the management of these areas of conflict which, in certain situations have led to disputes, resulted in significant financial losses and degraded working relationships.

Based on the above information, critically review the literature on conflict management. Use the article by Loosemore. M et al (2000) as the starting point for a discussion relating to conflict within organisations. You should then go on to examine the typical causes of conflict within and between organisations and their impact / reactions (good and bad). You should provide recommendations to Caledonian LLC to improve their performance on managing conflict within their organisation and between it and their clients.

The report should be a maximum of 2,500 words (10% either way is allowable) and significant emphasis is placed on your ability to source and evaluate a wide range of sources covering the topic and in your ability to synthesis and draw your own conclusions. It is important that the report is well structured, easy to read, and demonstrates a good level of background research with emphasis placed on your own analysis. You do not need to include your references and tables in the word count, only the main body of the text and you must state the word count at the end of the report.

Critical Review on Conflict Management and Construction Business

The report is a critical review on the literature of conflict management within a construction company, Caledonian LLC, provided in the case study. The review done based on the article provided by Loosemore. The report begins with a critical review on conflict management and construction business. There is also discussion on the causes of conflict between and within organizations and their relevant impact and reactions.

The report also puts forward recommendations on the management of conflict within, between and the clients of Caledonian LLC. Through the report, one will be able to understand that conflict is a common phenomenon within a construction industry and understand how they resolved or completely avoided. Thus, disputes are a common thing in the construction industry and thus resolution needs to occur on an immediate basis.  

Critical Review on Conflict Management and Construction Business 

The issue related to conflict management considered as the most contemporary challenges faced by construction industry. However, the issue received considerable momentum by (Madter, Bowern and Aritua 2012) according whom conflict refers to an undesirable phenomenon that requires elimination and reduction from construction process. This resulted in the diversion of considerable energy and resources for reducing it primarily through understanding the causes (Li, Ng and Skitmore 2012).

There are many according to whom the consideration of the preventive approach of the conflict management have predominated the construction industry who oversee the problem as to how to manage rather than existence (Wolff 2013). There has been distinction between the dysfunctional and functional conflict where indiscriminate reduction leads to incurrence of an opportunity cost for the clients belonging to the construction industry. The managerial challenge however lies in harnessing potential good in conflict besides developing methods for its minimization. The radical view possessed by the construction managers should help in positively provoking conflict since it is entry point to organizational creativity and learning along with fulfillment of individual and organizational potential (Schlaerth,  Ensari and Christian 2013).

The calls for encouraging or tolerating conflict reflect the thought of conflict management. However, the inherent weakness shows the receptive approach of the organization. The validity of the assumption though not examined determines the claims whether to encourage or tolerate the speculative or potentially damaging nature of the conflict. The paper thus aims in investigating the receptive nature of the construction organization towards conflict management (Condliffe 2012).

According to Loosemore et al (2000), there have been considerable attempts in reducing conflicts in construction industry through an indiscriminate policy. However, the problem with construction conflict lies within its management and not in its incidence. Conflict reduction is the response to industry’s inability in effectively managing conflict. This is because the industry might be concentrating on more productive skill building for dealing with the conflict in a manner that in a way encouraged conflict. The paper however explores the merits of the idea. This is done by discussing the survey results of two psychometric test for investigating whether the industry has socio-structural and attitudinal base quite receptive to such efforts.

Typical Causes of Conflict Within and Between Organizations and Their Impact / Reactions

The claims of Loosemore et al (2000) focused on the fact that professionals of construction business should have the encouragement of engaging in the functional conflict and an indiscriminate attempt in reducing the conflict in construction results in opportunity cost for the professionals and clients. The research put forward by Loosemore et al (2000) primarily focused on the phase of construction, conflict between architect and contractor, contractor and subcontractor and found that the attitude of the contractors remained receptive towards the functional conflict that was not strong, as one might have thought.

The findings however suggested that most conflicts managed through exploring different perspective, alternative solutions and encouraging the participants to involve in cooperation and discussion. These behaviors however resulted in a win-win solution (Prenzel and Vanclay 2014). The conflict handling styles followed by the construction managers did not offer positive benefits. This is because greater emphasis laid on obliging and compromising by site manager that restricted the development of mutual beneficial solutions. The site manager considered uncooperative and lacked concern for the others. However, the style of conflict management used by the researcher was the dominating style that preferred the importance of self before others (Pour, Bakhshizadeh, and Barati 2012).

The conflict management behavior that Loosemore et al (2000) observed is quite common in work groups. Research by (Wolff and Yakinthou 2013) ensured the examination of work groups and students and discovered that the common conflict management strategy that persisted was collaboration, followed by accommodation, compromise, competition and avoidance. Though according to many reports construction industry considered adversarial many researchers suggest that the manner of conflict handling of such industry is typical (Crowfoot and Wondolleck 2012). Research also shows that there is further room for improvement of conflict management.  However, there exists a need for delving deeper into the occurrence of conflict and considering the different approaches that exists for managing it.

Typical Causes of conflict within and between Organizations and Their Impact / Reactions

Causes

Conflict mainly develops in multidisciplinary team building when group members get to know the objectives of the team and then try to enforce them on other members with the belief of changing the beliefs and actions of the other people (Powell and DiMaggio 2012). The reason for conflict may be also due to the failure of managing and developing expectations. Therefore, inexperienced client’s needs careful handling throughout the process of construction.  At the same time, it is also necessary that the clients must have balanced and unbiased information about their choices in situations when there is emergence of problems and a need for decision-making.

 However, unfortunate situations occurs when the information provided to the clients from the various professionals are not only confusing and inconsistent (Sherif 2015).  There are situations when professionals might offer similar service but they primarily concentrate on aspects that are either closely associated to experience, profession and training. Thus, there is anticipation in the level of conflict in construction business. However, according to various researchers conflict occurred in various stages of the construction process (Slaikeu and Hasson 2012).

Recommendations for Caledonian LLC

The reasons for emergence of conflict includes: poor coordination and briefing, lack of experience, difficulty in reaching a consensus, failing to follow board opinions, prevalence of errors in design, failing  to meet design specification, failing  to meet the construction requirements, facing difficulty in attaining formal approval, difficulty in interpretation of drawings provided to the clients  and  difference in work quality. , increase in project budget and duration and existence of functional problems, existence of internal politics, loyalty conflict and existence of change controls at different levels (Bolman and Deal 2017).

Conflict also exists while passage through single contact point, there lays different emphasis on the project, facing difficulty in the management of interfaces of the group and the misuse if shared contracts and documents. Thus, in construction business conflict management primarily focuses on the construction tasks that are undertaken and which affects multiple parties (Redpath et.al 2013).

In construction industry, conflict might also arise due to behavioral problems. These problems however refer to the difference of personality, cultures, human interaction and professional background among the team members (De Wit, Greer, and Jehn 2012).  Other behavioral issues are the reason for conflict in the construction business. These include difference in ambition of the individuals, frustration, desire for growth and dissatisfaction, level of power and communication, faith and fraud that might lead to disputes amongst the teams.

The contractual problems might also be the reason for conflict in the construction industry. Contract defines the exchange of construction materials and the services for money (Appleman, Appleman  and Holmes 2016). Contractual disputes occur due to lack of clarification and interpretation of the contract. They are the reasons for significant portions of disputes in various projects. Technical problems can also be the reason for conflict in the construction business. Technical disputes in project operations primarily occur due to uncertainty. Uncertainty might give rise to client expectations that are unrealistic. The unrealistic client expectation includes late instructions or information from engineer or architect, inadequate soil or site investigation report and incomplete technical information (Grant, Kline and Quiggin 2012).

Impacts/ Reactions

The general assumption of conflict is that it will have negative consequences for both the organization and the individual.  However, there also exist various positive impacts of conflict on the industry (Fisher 2016).

The negative impacts of conflict on the individuals include:

Changes in the physical responses

• Lack of interest for work
• Leads to job dissatisfaction
• Results in work anxiety
• Alienation or estrangement from others
• Resulting in frustration

Changes in Behavioral Responses

• Can result in excessive smoking
• Leads to under eating or over eating
• Increased aggression towards work
• Decrease in communication
• Resistance in influence attempts

Changes in Physiological Responses

• Increase in blood pressure due to the adrenalin rush
• Increase in heart beat
• Result in hypertension
• Result in headaches and coronary problems

The negative impacts of conflict on the organization include(Kerlinger et.al 2013):

• Conflict affects organizational performance as well as the performance of the individuals.  Resolving conflicts take a toll not only on the managerial energy but also time which could otherwise be spent more productively.
• In such situations people try to promote their personal gain or self interest not only at the cost of others but also the organization
• Intense conflict for a prolonged time period might impact individuals not only physically but also emotionally thereby giving rise to psychosomatic disorders
• The time spent by organizations on resolving conflicts could be used on things that are more productive
• The work sabotage resulting from conflict might lead to a decline in the market share of service and product and consequent loss in productivity.

The construction industry also faces some positive impacts due to conflict that are as follows (Fulford  and Standing 2014):

• Help in motivating individuals for working harder as well as better.  The presence of a conflict situation enables one’s talent and abilities to come to the forefront.
• The conflict situation helps in satisfying certain psychological needs that included aggression, dominance, ego and self-esteem thereby providing opportunities for constructive release and use of aggressive urges.
• Conflict helps in providing innovative and creative ideas. This can be explained by the fact that employee benefits in present times are a result of the conflict of union management over the past.
• Conflict helps in adding variety to one’s organizational life that would have been dull otherwise.
• Helps in resolving problems that people have with one other that helps in better coordination amongst individuals and departments
• Helps in inspiring creativity
• Conflict situations also lead to sharing and respecting opinions.
• Recommendations on Managing Conflict within Caledonian LLC, between it and their Clients

Conflict is an inevitable part of the construction business that might arise from various sources including supervisors, subordinates, co-workers, customers and the employees. However, organizations and managers either see conflict as intrinsically negative thereby acting to suppress at every opportunity or consider them positive thereby leveraging conflict for having positive changes. Thus, recommendations provided for managing conflict within Caledonian LLC, between it and their clients are as follows:

1. By Adopting a Positive Perspective:

In order to manage conflict, Caledonian LLC, must ensure that conflict is a growth process that is natural and influences the company culture in a positive manner. Conflict can prove to an asset for the organization, as it will enable some major alternations. Through conflict, organizations can learn from the mistake s and at the same time identify areas that need improvement. Innovation can be a result of providing creative solutions in solving external or internal conflicts that helps in the emergence of newer ways of thinking.

2. By Implementing a Grievance Procedure:

Conclusion

Caledonian LLC should implement a grievance procedure for all its employees. This will assure all levels of the employees that their voices heard and responded reasonably and promptly.  This will also prevent any bad feelings from further growing  into bitterness and resentment.  The best way to handle conflict is openly as well as quickly. Thus, if the company possesses a friendly culture then the employees will also see a way for letting their issues, ideas and complaints known.

3. By Getting to the Cause:

Proper management of conflict also leads to focuses on analyzing the causes that are deep rooted. Thus, Caledonian LLC must focus on deep-rooted causes rather than superficial impacts. Parties in conflict often complain that they have issues with the behavior of the co-workers or the outcome of the policies of the company and procedures of work whose causes remain deeply rooted.

The company should remember that attempts for resolving conflicts by addressing only the surface issues would rarely lead to the creation of meaningful change or lasting solutions. However, looking deeper will help in addressing the reasons for the occurrence of the incident. For instance, if the employee of the company has falling productive levels then it is natural for the supervisor to address the behavior of the employees directly. Instead, if a closer analysis done then the supervisor will be able to find out the increased dissatisfaction of the employees with the present job after the release of the performance review. Therefore, revisiting the review along with the employees would act more effective.

4. By Ensuring Equal Voices to All the Parties:

Caledonian LLC must ensure that all the parties involved in the conflict must have equal voice while conflict management despite their length of service or political influence as well as position. This is because the participants of conflict might tend to become defensive if they either marginalized or going through a process that has predetermined outcome. The company should also undertake necessary measures for tactfully managing and dealing with conflict situations. The company must therefore ensure that it provides everyone with an equal chance of speaking. The company must ensure equal weight age to all arguments whenever they are mediating conflict.  

5. Involving all the Parties While Drafting Conflict Resolutions:

Caledonian LLC must involve all the parties while drafting conflict resolutions. According to the theory of management, the employees remain committed to the goals that they have helped to create. The company must remember that there should be more than one side to every conflict and all the sides must benefit from conflict resolution. The company should also seek resolutions that prevent reoccurrence of conflict.

Conclusion:  

The report ends in the light by providing recommendations on the management of conflict within Caledonian LLC. In the report, there is also discussion how conflict caused within organizations and their impact or reactions. Through the report, one can find an elaborate analysis on the factors that are responsible for occurrence of conflict situations. The report also helps one to understand that similar techniques do not work for dealing with all conflict situations. There is also a critical review about conflict management addressed in the report. Thus, report will enable people to effectively deal with conflict situations for construction project of the future.

References:

Appleman, J.A., Appleman, J. and Holmes, E.M., 2016. Contract Concerns: Reinsurance Contract Formation, Validity, And Judicial Construction (Vol. 14). Appleman on Insurance Law and Practice.

Bolman, L.G. and Deal, T.E., 2017. Reframing organizations: Artistry, choice, and leadership. John Wiley & Sons.

Condliffe, P., 2012. Conflict management: a practical guide. LexisNexis Butterworths.

Crowfoot, J. and Wondolleck, J.M., 2012. Environmental disputes: Community involvement in conflict resolution. Island Press

De Wit, F.R., Greer, L.L. and Jehn, K.A., 2012. The paradox of intragroup conflict: a meta-analysis.

Fisher, R.J., 2016. Third party consultation: A method for the study and resolution of conflict. In Ronald J. Fisher: A North American Pioneer in Interactive Conflict Resolution (pp. 37-71). Springer International Publishing.

Fulford, R. and Standing, C., 2014. Construction industry productivity and the potential for collaborative practice. International Journal of Project Management, 32(2), pp.315-326.

Grant, S., Kline, J.J. and Quiggin, J., 2012. Differential awareness, ambiguity, and incomplete contracts: A model of contractual disputes. Journal of Economic Behavior & Organization, 82(2), pp.494-504.

Kerlinger, P., Burger, J., Cordell, H.K., Decker, D.J., Cole, D.N., Landres, P., Smith, E.N., Brett, J., Larson, R., O'Shea, T. and Temple, S., 2013. Wildlife and recreationists: coexistence through management and research. Island Press.

Li, T.H., Ng, S.T. and Skitmore, M., 2012. Conflict or consensus: An investigation of stakeholder concerns during the participation process of major infrastructure and construction projects in Hong Kong. Habitat international, 36(2), pp.333-342.

Madter, N., Bower, D.A. and Aritua, B., 2012. Projects and personalities: A framework for individualising project management career development in the construction industry. International Journal of Project Management, 30(3), pp.273-281.

Pour, S., Bakhshizadeh, A. and Barati, E., 2012. An empirical study to measure the relationship between management style and conflict management. Management Science Letters, 2(6), pp.2249-2254.

Powell, W.W. and DiMaggio, P.J. eds., 2012. The new institutionalism in organizational analysis. University of Chicago Press.

Prenzel, P.V. and Vanclay, F., 2014. How social impact assessment can contribute to conflict management. Environmental Impact Assessment Review, 45, pp.30-37.

Redpath, S.M., Young, J., Evely, A., Adams, W.M., Sutherland, W.J., Whitehouse, A., Amar, A., Lambert, R.A., Linnell, J.D., Watt, A. and Gutierrez, R.J., 2013. Understanding and managing conservation conflicts. Trends in ecology & evolution, 28(2), pp.100-109.

Schlaerth, A., Ensari, N. and Christian, J., 2013. A meta-analytical review of the relationship between emotional intelligence and leaders’ constructive conflict management. Group Processes & Intergroup Relations, 16(1), pp.126-136.

Sherif, M., 2015. Group conflict and co-operation: Their social psychology (Vol. 29). Psychology Press.

Slaikeu, K.A. and Hasson, R.H., 2012. Controlling the costs of conflict: How to design a system for your organization. John Wiley & Sons.

Wolff, S. and Yakinthou, C. eds., 2013. Conflict management in divided societies: theories and practice. Routledge.

Wolff, S., 2013. Conflict management in divided societies: The many uses of territorial self-governance. International Journal on Minority and Group Rights, 20(1), pp.27-50.