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CONFLICT MANAGEMENT The Psychology of conflict and conflict ...

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11. ORGANIZATIONAL DISPUTE RESOLUTION SYSTEMS 323<br />

<strong>The</strong> ubiquity <strong>of</strong> formal ODR systems in the union setting is credited for<br />

the growth <strong>of</strong> ODR systems in nonunion settings as well. Following World<br />

War II, there was very little implementation, let alone use, <strong>of</strong> formal ODR<br />

in nonunion organizations (Slichter, Healy, & Livernash, 1960). In the 1960s<br />

<strong>and</strong> 1970s, we started to see more substantial ODR procedures adopted<br />

within firms. For example, General Electric introduced its multistep appeal<br />

system in the 1970s in response to the threat <strong>of</strong> unionization (see Ewing,<br />

1989). It was the late 1970s <strong>and</strong> early 1980s, however, that witnessed the<br />

largest rise <strong>of</strong> nonunion ODR procedures. In 1980, Berenbeim’s (1980)<br />

survey indicated that approximately two thirds <strong>of</strong> its sample <strong>of</strong> 96 nonunion<br />

firms had a formal multistep appeal system in place. Ichniowski<br />

<strong>and</strong> Lewin’s (1987) survey <strong>of</strong> a larger number <strong>of</strong> both union <strong>and</strong> nonunion<br />

firms suggests approximately 50% <strong>of</strong> nonunionized employees had access<br />

to a formal ODR system by the early 1980s.<br />

Although the early research primarily focused on grievance procedures<br />

as ODR, certainly other types <strong>of</strong> ODR systems were being introduced <strong>and</strong><br />

used in organizational settings. For example, IBM’s open-door policy, in<br />

which disputants can approach any level <strong>of</strong> management with a dispute,<br />

emerged in the 1960s. Cherrington (1982) identified open-door policies as<br />

the “the most popular procedure for responding to employee complaints”<br />

(p. 596) in nonunion organizations. Similarly, Thomson (1974) identified<br />

open-door policies as the default for organizations without a formal multistep<br />

appeal system in place. However, several researchers called into question<br />

whether typical open-door policies were truly operating as effective<br />

ODR systems in organizations (e.g., Cherrington, 1982; McCabe, 1988). <strong>The</strong><br />

use <strong>of</strong> ombudsperson (explained more in the following section) was also<br />

being discussed in the literature (e.g., Balfour, 1984; McCabe, 1988), but it<br />

was not clear how prevalent its use was in organizations.<br />

Current Practice <strong>of</strong> ODR systems<br />

ODR systems in organizations have grown considerably in use <strong>and</strong><br />

variability since the 1980s. <strong>The</strong> U.S. General Accounting Office’s (1995)<br />

study <strong>of</strong> a sample <strong>of</strong> federal contractors found “almost all employers <strong>of</strong> 100<br />

or more employees use one or more ADR approaches” (p. 3). This study<br />

found that nearly 10% in the sample had adopted nonunion multistep<br />

appeal systems (with arbitration as the final step) in particular. Similarly,<br />

approximately 16% <strong>of</strong> the nonunion firms in Colvin’s (2003b) study <strong>of</strong> the<br />

telecommunications industry had multistep appeal systems with arbitration<br />

<strong>and</strong>/or peer review as the final step. Among workplaces that do adopt<br />

ODR systems, these procedures vary in basic features, such as the extent to<br />

which there is a formal, set procedure to follow, who is the final decision<br />

maker, whether employees are permitted representation, what complaints

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