Conflict Handling And Dispute Resolution Business Essay


Mintzberg has attempted to move away from this generalized approach towards a more detailed and behavior oriented analysis of what mangers actually do, Mintzberg highlights key roles that seem to appear regularly in a manager's job. He describes these roles as 'organized sets of behaviors in identified with a position' and gathers them into three main groupings:

Interpersonal (Figure Head, Leader and Laison)

Informational (monitor, Disseminator and Spokesman) and

Decisional(Entrepreneur, Disturbance Handler, Resource Allocator and Negotiator)

Management is primarily concerned with planning, organizing, motivating and controlling people to achieve targets.


Planning is an activity which involves decisions about ends (organizational aims/objectives), means (plans/strategies), conduct (policies) and results (outcomes). It is an activity which takes place against a background of:

The organization's external environment, and

The organization's internal strengths and weaknesses


Determining activities and allocating responsibilities for the achievement of plans; coordinating activities and responsibilities into appropriate structures. Plans have to be put into operation. This involves detailed organization and coordination of tasks and the human and material resources needed to carry them out. A key issue here is that of formal communication


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Meeting the social and psychological needs of employees in the fulfillment of organizational goals. The motivating activities of managers, however, are essentially practical in their intent for, in setting plans and executing them, managers have to gain the commitment of their employees.


Controlling activities are concerned essentially with measuring progress and corrective deviations. The basic functions of control are:

To establish standard of performance

To measure actual performance against standards

To take corrective measures where appropriate.

Control activities acts as the feedback mechanism for all managerial activities. Their use is, therefore, crucial to the success of management

On the other hand the crux of every management job lies in the job-holder's capacity to obtain the commitment of people to the objectives of the organization. Leadership is a concept which has fascinated humankind for centuries.

Leadership can be defined as dynamic process whereby one individual in a group is not only responsible for the group's results, but actively seeks collaboration and commitment of all the group members in achieving group goals in particular context and against the background of a particular national culture. (Cole, 2007)

It is something more than just an aspect of personality, tradition, opportunism or appointment but rather intimately connected with the actual behavior and attitudes toward oneself and others. Also the suggestion that leadership is a dynamic process implies there is no 'one best way' of leading but is primarily concerned with striking the right balance between the needs of people, task and goals in a given situation.

There are basically five important types of leaders namely;

The Charsimatic leader, who gains influence mainly from strength of personality.

The traditional leader whose position is assured by birth eg kings

The situational leader whose influence can only be effective by being in the right place at the right time.

The appointed leader, whose influence arises directly out of his position, eg managers.

The functional leader, who secures their leadership position by whay he or she does rather than by what they are.

Leadership and management are often considered practically overlapping concepts but the terms are often used interchangeably. But a number of efforts have been made to distinguish meaningfully between the two concepts.

Below are some Differences between management and leadership

Management is more usually viewed as getting things done through other people in order to achieve stated organizational objectives. The manager may react to specific situations and be more concerned with solving relatively short-term problems. Management is regarded as relating to people working within structured organizations and with prescribed roles. On the other hand, leadership's emphasis is on interpersonal behavior in a broader context. It is often associated with the willing and enthusiastic behavior of followers. Leadership does not necessarily take place within the hierarchy structure of the organization. Many people operate as leaders without their role ever being clearly established or defined. A leader often has sufficient influences to bring about long-term changes in people's attitudes and to make change more acceptable.

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Leaders take a personal and active interest in achieving goals whereas managers tend to play a relatively passive role in accomplishing the goals. Managers need power to be entrusted to them by the organization to deal with people.

Leaders have power within themselves and the required drive to lead people and motivate them to work enthusiastically towards achieving goals. Managers limit their interactions with people to the minimum extent required to carry out their managerial responsibilities. Leaders interact with people frequently and in a more natural way. In the process they inspire people, motivate them and lead them.

Management can be exercised over processes, projects, resources, time and so on. Leadership is about coping with change: creating a sense of direction, communicating a vision, energizing, inspiring and motivating. It can, essentially, only be exercised over people.

Undeniably, it is extraordinary to find one individual who ideally fits both leadership and managerial roles. There is a strong penchant for totally developing management skills over leadership skills.

Leaders and managers are the ones that provide motivation and vision to any organizational undertaking. The person should posses the capabilities, abilities, and skills of a leader in order to create a motivating, working environment (Gregersen et al. 1998). Only in having such effective and motivational leadership can the organization be assured of a healthy, sustainable, and committed workforce.


CIPS: Level Six Study Guide: Leading and Influencing in Purchasing

Cole, G. A. (2004). Management Theory and Practice. 6th Edition. London: Thomson Learning

Gregersen, H. B., Morrison, A. J., & Black, J. S. (1998). Developing leaders for the global

frontier. Sloan Management Review, 40(1), 21-32.

Mullins, L.J. (1993) Management and Organizational Behavior (3ed), Pitman Publishing: London



It might be expected that a healthy organizational climate would be reflected by complete harmony in working relationships, and loyalty and common commitments to the goals and objectives of the organization. This view of work organizations as 'happy families' is perhaps a worthwhile and creditable ideal and as such appears to be implied by a number of management writers (Mullins, 1993). For example, according to Peter Drucker, cited in Mullins (1993), 'any business enterprise must build a true team and weld individual efforts into a common effort. Each member of the enterprise contributes something different, but they must all contribute towards a common goal. Their effort must al pull in the same direction, and their contributions must fit together to produce a whole - without gaps, without friction, without unnecessary duplication of effort …. The manager must know and understand what the business goals demand of him in terms of performance and his superior must know what contribution to demand and expect of him - and must judge him accordingly. If these requirements are not met, managers are misdirected. Their efforts are wasted. Instead of teamwork, there is friction, frustration and conflict'. From a pluralistic perspective to an organization, conflict among competing sub-groups is inevitable. Group members in an organization compete for scarce resources, rewards and status, union members asking for rise in pay and organizations unable to offer such pay rise, tension are bound to occur. Conflict must be seen as an inherent feature of an organization and induced, partly by the structure of the organization. The purpose of this answer is to critically evaluate conflict in an organization and discuss some of the major techniques that could be used in resolving them in an organization. The answer will also discuss the Thomas-Kilman instrument for conflict handling.

Conflicts have been defined in various ways. According to Mullins (1993), conflicts can be regarded as behaviour intended to obstruct the achievement of some other person's goals. Conflicts are regarded as a reality of management and organizational life. Conflict is based on incompatibility of goals and arises from opposing behaviours. For Martin (2005) conflict can be considered as something that disrupts the normal and desirable states of stability and harmony within an organization. Under this definition, conflict is something to be avoided and it possible eliminated from organizational life. However, it is must be noted that, conflict is an inevitable feature in human interaction and something if managed constructively could offer positive value that ensures effective performance in an organization. Conflicts arise due to competition, difference in values, attitudes, experiences, goals and perception of limited resources.

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Conflicts can be also be regarded as the process where one party perceives that another party has adversely affected or has tried to affect adversely something that the first party values.

According to Mullins (1993), common definitions of conflict tend to be associated with negative features and situations which give rise to inefficiency, ineffectiveness or dysfunctional consequences. Traditionally, conflict is seen as unhealthy between two or more parties. It is seen as dysfunctional in nature. It presumes that conflicts are inherently bad and invariably affect the organizational outcome negatively. It is seen to involve anger, frustration, hostility and antagonism among parties. On the contrary, conflicts can have potentially positive outcomes. It can be an energizing and vitalizing force in groups and in the organization. Mullins (1993) asserted that, conflict can be seen as a constructive force and in certain circumstances it can be welcomed or even encouraged. For example, in functional conflicts, people may differ on ideas or perceptions. This difference may create open mindedness which leads to joint exploration of ideas, new awareness, new insights which improves the relationship between parties to disagreement. Functional conflict leads to innovation and creativity, creating the possibility for high performance and organizational improvement.


Martin (2005) contends that, there are six major areas within an organization that can give rise to conflict. These are:

Intrapersonal - This is the kind of conflict that arises within the individual. Martin (2005) noted that, there are many forms in which this can arise, but essentially it stems from the choices or decisions that each individual must make.

Interpersonal - This kind of conflict arises between two or more individuals. Whetten and Cameron (1991) cited in Martin (2005) have identified four sources of interpersonal conflict namely personal differences, role incompatibility, information deficiency and environmental stress.

Intragroup - This is the kind of conflict that occurs in groups. Group activity inevitably brings the differing characteristics, attitudes and opinions of individual members into focus. The interaction of these variables on the group decision making process creates conflicts among the group.

Intergroup - This is the kind of conflict that exists among different groups in an organization. Many different groups exist in an organization and inevitably they will experience differences and conflict at some point in time. For example, employees seek to earn as much money as possible, while employers want labour to be as cheap as possible. This will create an inherent basis for conflict to exist among the two groups.

Intra-organizational - Martin (2005) argue that, the physical realization of an organization in terms f structure, hierarchy, information flows, together with career development, reward and information flows are all ways of compartmentalizing activity. When this is linked with the inevitable limitation of resources availability, the basis for competition is created. When one party considers that it has been fairly treated in the competitive process or attempts to influence outcomes in its favour, conflict is likely to arise.

Inter-organizational - According to Martin (2005), markets provide a scenario in which organizations are inevitably in conflict with each other. All of the competitors in a particular industry attempt to meet the needs of the customer in such a way as to maximize profits and market share for them. This kind of competition creates conflict among organizations that operates in the same industry.


Conflict handling and dispute resolution techniques can be viewed as a continuum that range from the most informal negotiations between the parties themselves, through increasing formality and more direct intervention from external sources, to a full court hearing with strict rules of procedure.

There are many approaches to the management of conflicts and the suitability of any given approach must be judged according to a particular situation. In some situations, the best outcome may be achieve by compromise; in others imposition of a win-lose solution may be required; and yet in others, the process of seeking a win-win solution may be helpful.

Generally, a number of formal mechanisms have been used to manage and resolve conflict in contractual relationships, which depend on the nature of the relationship, as well as the nature and stage of the conflict. Prominent ways of managing and resolving conflicts include:

Consultation, which is in the form of issue management. In consultation, potential causes of conflicts are discussed creating the opportunity for parties to give their input, before the problems arises.

Negotiation, whether formal or informal, is a useful approach to conflict resolution at any level, in which parties to the conflict discuss their issues in a structured way, and seek to reach constructive suggestion compromise through bargaining or mutual concession.

Conciliation, is a process where conflict or grievances are aired in a discussion, facilitated by an impartial conciliator, whose role is tom manage the process and make constructive suggestions. There is negotiation towards a mutually acceptable position - and a win-win situation.

Mediation may follow conciliation, if a voluntary settlement has not been reached. It involves the appointment of an independent person (or panel) who will consider the case of both parties and make a formal proposal or recommendation as a basis for settlement of the dispute.

Arbitration is a process that involves the appointment of a mutually acceptable independent person (or panel) who will consider the arguments of both sides, in closed proceedings, and deliver a decision or judgement which is binding on both parties.

The Thomas-Kilman instrument is a popular tool in the assessment and handling of conflict in an organization. Thomas suggest that, conflict handling styles could be mapped out on two dimensions, according to the intentions of the parties involved; their assertiveness - which is the extent to which they try to satisfy their own concerns, and their cooperativeness - which is the extent to which they try to satisfy the other party's concerns. This model for conflict handling and management is indicated in the diagram below:

Forcing Collaborating


Assertiveness Compromising

Unassertiveness Avoiding Accommodating

Uncooperativeness Cooperativeness Cooperativeness Source: Thomas, K. (1976) Conflict Management. In Dunnette, MD (ed.) Handbook of Industrial and Organizational Psychology, Rand McNally: New York cited in Martin, J (2005) Organizational Behaviour and Management (3ed). South-Western Cengage Learning: United Kingdom.

The two dimensions of behaviour indicated above under the Thomas-Kilman model, can be used to define five methods of dealing with and resolving conflicts. The five methods are discussed below:

Competing is a process of conflict handling and resolution which is assertive and uncooperative, as well as power-oriented. In this process, an individual in conflict pursues his or her own concerns at the other party's expense, using whatever power that seem appropriate to win his or her position. Competing means of conflict management and resolution means standing up for a party to a conflict's rights, defending a position they believe is correct, or simply trying to win. This method can be used when quick, decisive action is vital for example in emergencies, in important issues where unpopular course of actions are needed to be implemented for example when cost cutting measures are needed in an organization, on issue that are vital to the organization's welfare when this is right as well as to protect certain people against people who take advantage of noncompetitive behaviours.

Accommodating, is the opposite of competing and this is unassertive and cooperative. When accommodating, an individual neglects his or her own concerns to satisfy the concerns of the other person; there is an element of self-sacrifice in this mode of conflict handling and resolution. Accommodation may take the form of selfless generosity or charity, obeying another person's order when under normal circumstances this may not be the case, or yielding to another's point of view. The use of accommodation is vital when the issue is much more important to the other party than to yourself - to satisfy the needs of others, and as goodwill gesture to help maintain a cooperative relationship, when continued competition would only damage the cause of the group, and to allow a better position to be heard, to learn from others and to show reasonableness in certain situations, when preserving harmony and avoiding disruption in a group as well as to aid in the managerial development of subordinates by allowing them to experiment and lean from their own mistakes.

Avoiding is another method under the Thomas-Kilman mode of conflict handling and resolution. Avoiding is unassertive and uncooperative, in which the individual does not immediately pursue their own concerns or those of the other person. He or her does not address the conflict. Avoiding might take the form of diplomatically sidestepping an issue, postponing an issue until a better time, or simply withdrawing from a threatening situation. This method is useful when an issue is trivial or when other important issues are pressing, when the potential damage of confronting a conflict outweighs the benefits of its resolution, to let people cool down to reduce tension to a productive level and to regain perspective and composure, when gathering more information outweighs the advantages of an immediate decision, when others can resolve the conflict more effectively and when the issue seem tangential or symptomatic of another more basic issue.

Further, collaborating as a method of conflict management and resolution is both assertive and cooperative, the opposite of avoiding. Collaborating involves an attempt to work with the other person to find some solution which fully satisfies the concerns of both parties to the conflict. This means digging into an issue to identify the underlying concerns of the two individuals and o find an alternative which meets both sets of concerns. Collaborating between two persons might take the form of exploring a disagreement to learn from each other's insights, concluding to resolve some condition which would otherwise have them competing for resources, or confronting and trying to find a creative solution to an interpersonal problem. This method is used to find an integrative solution when both sets of concerns are too important to be compromised, to merge insights from people with different perspectives on a problem, to gain commitment by incorporating other's concerns into a consensual decision and to work through hard feelings which have been interfering with an interpersonal relationship.

Furthermore, compromising, as a method of conflict management and resolution is intermediate in both assertiveness and cooperativeness. The objective of this method is to find some expedient, mutually acceptable solution which partially satisfies both parties. This method falls in a middle ground between competing and accommodating, giving up more than competing but less than accommodating. This method intends to address an issue more directly than avoiding, but does not explore it in as much depth as collaborating. Compromising might mean splitting the difference, exchanging concessions, or seeking a quick middle-ground position. This method is used when goals are moderately important, but not worth the effort of potential disruption of more assertive modes, when two opponents with equal power as strongly committed to mutually exclusive goals, to achieve temporary settlements to complex issue, to arrive at expedient solutions under time pressure and as a backup when collaboration or competing does not succeed.


In conclusion, it is important to note that conflict is a reality that crosses all organizational boundaries to affect individuals, groups and disciplines. It can initiate productive change and vitality or it can lead to the demise of an organization. The resultant consequence of conflict will inevitably be determined by how well it was managed and resolved to increase performance.

It is worth noting that conflict is inevitable within organizations. In order to manage and resolve it as a creative resource, organizations must recognize that conflict exists, and bring it out into the open so that the issue can be effectively dealt with. Understanding conflict will enable leaders and managers to deal more effectively with the problems of organizational efficiency, stability, governance, change and effectiveness. Not only should organizational leaders and managers endeavor to understand conflict, but also must be careful not to fall into the trap of viewing it from a dysfunctional perspective. When handled properly through an appropriate conflict management and resolution style, conflict can enhance an organizational leader or manager's efforts in reaching goals. For organizational leaders and managers who realistically confront it, conflict can represent a dynamic force which facilitates organizational growth, change, adaptation and survival.


Martin, J. (2005) Organizational Behavior and Management (3ed), South-Western Cengage Learning: United Kingdom

Mullins, L.J. (1993) Management and Organizational Behavior (3ed), Pitman Publishing: London

Thomas-Kilman Model of Conflict Management Styles [Online], available at accessed on 30/1/2013.



The CIPS defines e-procurement as "The combined use of electronic information and communications technology (ICT) in order to enhance the links between customer and supplier, and with other value chain partners, and thereby to improve external and internal purchasing and supply management processes" [1] . E-procurement is a key component of e-business and e-commerce. Completing business to business transactions over the internet is genuinely something very different, the unexpected emergence of the internet as a tool for business has meant that we have once again thrown out into the fray of major investment and change [2] (Dale Neef 2000).

This new phenomena has brought about some accelerated pace of change in the way businesses are conducted and has become essential factor for survival in this new economy.

The real value of internet to business as the organization may see it is the active integration of internet in the business to business, buyer to vendor transactions that includes procurement and the full integration of the electronic supply chain from customer to supplier.

It is true that electronic procurement may seem less glamorous and in many ways more difficult to initiate than online retailing, however, e-procurement has a far greater potential for cost savings and business improvement than retailing online or enterprise resource planning (ERP) systems and this electronic approach has the potential to fundamentally reform the way we do business in the future.

There is a strong case for e-procurement. The proponents profess that it significantly reduces the day to day cost of purchasing. Electronic purchasing is not far less expensive but rather far more efficient than the current manual labor intensive, phone, fax based purchasing processes.

The e-market also serves as an electronic forum in which a large number of buyers and sellers can meet and exchange information and bids online, thereby expanding sales opportunities for sellers and often greatly reducing the purchasing price for buyers.

However, in taking these decisions the procurement manager has to take several factors into considerations. The first and foremost factor to consider is timing of the introduction of the e-procurement system. From the case sturdy, Organization must properly assess the timing of this new system to see whether the period to deploy such a system would not adversely interfere in their operations and have a negative impact on the image of the organization and eventually affecting its turnover and profit. Therefore the procurement Manager in consultation with management should select the appropriate timing to introduce this system in order not to affect the operations of Organization.

Another important factor that needs to be considered is the formation of a team to execute this system as a project to be under taken by Organization. Before embarking on e-procurement or any aspect of e-business it is essential that Organization project team undertake the following steps in this sequence:

Agree clear objectives with senior management

Define the value chain and then the key business and procurement processes, including those which will benefit from e-purchasing

Agree clear objectives and processes with customers and suppliers

Define the messages and data to be used

Define the computer systems, applications and data bases involved

Define the computer networks, computers and software to support the above - this infrastructure will be internal and external and will include intranets/extranets

Where a company or its trading partners includes an ERP system (Enterprise Resource Planning and Management) such as SAP or Oracle it will be essential to be aware of the particular structures and facilities (including strengths and weaknesses)

Examine carefully issues of security e.g. potential data corruption, hacking, cyber-security, etc.

Examine carefully issues relating to inter-operability especially where legacy databases are involved [3] .

In addition to the above aspects such as the cost implications to the organization with regards to how much the organization would have to spend to execute this project, scheduling and the sequential order in which this project would have to be executed taking into consideration what would be needed first before the introduction to the final execution of the project. Again the project team would consider the risk implications and the measures that would be put in place to mitigate the risk or eliminate if possible. Again the team will be responsible for controlling and monitoring the project of the e-procurement to its successful execution. The team would gain be responsible for ensuring that the system put in place meet all quality standards that they set to achieve. The project team will also be responsible for the communication on all aspect of the project concerning the people that would be involved and their inputs and finally the human resource management issues surrounding the execution of the project.

Once this has been done the project team would then prepare a project proposal plan detailing how this e-procurement would be executed in organization for consideration by management.

However, before organization considers implementing this e-procurement, it must first of all consider the financial implications to ascertain whether organization has the needed funds to support such a project. It must be mentioned that resources are limited in every organizations are other functions might also be competing for capital injection so it must be assessed carefully if the organization is prepared to take that decision .

After the financial consideration has been settled by Organization to implement e-procurement, the next important thing to consider is the staff competence. The staff of Organization should be assessed to see whether their competences are enough to handle these new initiatives. When it is identified that the staff competencies are not up to the task then they would have to embark on a training program to take up this new initiative of implementing he e-procurement. It must be said that in all new initiatives in an organization certain staff members would want to resist the change.

However it must be noted that the some of the employees would resist the change if they do not comprehend the reasoning behind the change. This normally happens because some of the employees would want the status quo to remain and therefore perceive the change not to be necessary. Others may also feel that they may be losing out with regards to the fact that their systems may undermine their role thereby removing the power they once held and therefore would make them rebel against whatever management would want to impose upon them.

The project team members would therefore have to assure all the staff of their job security by having an effective communication strategy in place. This communication will address the impact of the stakeholders that the new changes will affect and also select the best way of communicating that information to the stakeholders.

Another important resource that must be considered is notifying existing suppliers of the new changes so that the suppliers would not encounter difficulties. This would also necessitate that the suppliers are informed and possible trained to interface with the new system. This means that the buying company should also see how they can interface their system with that of the supplier.

Again Organization must do a cost benefits analysis to see how beneficial the introduction of this e-procurement can significantly assist organization. This is in line with the fact that the total cost benefit of this project should far outweigh the actual cost so that the benefits so achieved would be far beneficial to the money invested.

E-procurement has changed the dynamics of the purchasing profession by, for example, placing a greater emphasis on knowledge management. It is suggested that e-procurement will change the culture of procurement and supply chain management in an organization and may lead to a greater emphasis on cost and prices.

E-procurement can release time to be spent on more value-adding aspects of purchasing, such as the development of end users' purchasing competencies and the development of suppliers. CIPS believes it is an opportunity to deploy competencies to the greatest effect.

CIPS also advises procurement professionals to consider how e-procurement can enhance their transactional purchasing by providing end users with quick and easy to use electronic systems, such as electronic catalogues for selecting and purchasing their requirement from preferred suppliers. This should reduce transactional costs by improving speed and efficiency and provide greater commitment to contracts by the reduction of 'maverick purchasing', i.e. purchases made outside of an organization's contractual arrangements.

CIPS believes that e-procurement has the potential to facilitate communication between purchasers, their customers, suppliers and employees. It can particularly be used as a communication tool to encourage suppliers to become more efficient and more focused on meeting the organization's needs.

In conclusion, Organization must fully understand how e-procurement can be of benefit to their business and suggests would therefore that the procurement manager should ensure that their organizations have a comprehensive e-procurement strategy within their e-business plans.

Organization must also evaluate e-procurement options in order to ascertain the most appropriate solutions for their own organization.

However it must be noted that resources are limited and that for any procurement manager to persuade management to implement e-procurement but have given it a serious thought and consider the full benefits.


CIPS: E-procurement. Available at

Neef, Dale: E-procurement: from strategy to implementation, Financial Times Prentice Hall, Upper Saddle River, 2001

Raj Sharman, H. Raghav Rao, T. S. Raghu : Exploring the Grand Challenges for Next Generation E-Business: 8th Workshop ...




In order to comply with equal employment opportunity (EEO) requirements, you must treat all people fairly regardless of national origin, race, religion, colour, sex (including pregnancy and sexual orientation), disability or genetic information. You must also extend fair treatment to employees who marry someone of a different national origin, race, religion or colour. EEO compliance includes not using any of these above mentioned factors when you are hiring, promoting, disciplining and laying off workers.

Comply with EEO requirements by having a zero-tolerance policy for harassment. An employee harassing another employee because of national origin, race, religion, colour, age, sex, disability or genetic information creates a hostile work environment. If you discipline employees who don't abide by your zero-tolerance policy, you can prevent violations. It is always preferable to avert discrimination before it becomes an issue for your business.


Rights of employer

8. Subject to this Act and any other enactment, the rights of an employer

include the right to

(a) employ a worker, discipline, transfer, promote and terminate the employment of the worker;

(b) formulate policies, execute plans and programmes to set targets;

(c) modify, extend or cease operations; and

(d) determine the type of products to make or sell and the prices of its goods and services.

Duties of employers

9. Without prejudice to the provisions of this Act and any other enactment for the time being in force, in any contract of employment or collective agreement, the duties of an employer include the duty to

(a) provide work and appropriate raw materials, machinery, equipment and tools;

(b) pay the agreed remuneration at the time and place agreed on in the contact of employment or collective bargaining agreement or by law or agreed between the employer and the worker;

(c) take all practicable steps to ensure that the worker is free from risk of personal injury or damage to his or her health during and in the course of the worker's employment or while lawfully on the employer's premises;

(d) develop the human resources by way of training and retaining of the workers;

(e) provide and ensure the operation of an adequate procedure for discipline of the workers;

(f) furnish the worker with a copy of the worker's contract of employment;

(g) keep open the channels of communication with the workers; and

(h) protect the interests of the workers.

Rights of a worker

10. The rights of a worker include the right to

(a) work under satisfactory, safe and healthy conditions;

(b) receive equal pay for equal work without distinction of any kind;

(c) have rest, leisure and reasonable limitation of working hours and period of holidays with pay as well as remuneration for public holidays;

(d) form or join a trade union;

(e) be trained and retained for the development of his or her skills; and

(f) receive information relevant to his or her work.

Duties of workers

11. Without prejudice to the provisions of this Act, the duties of a worker in any contract of employment or collective agreement, include the duty to

(a) work conscientiously in the lawfully chosen occupation;

(b) report for work regularly and punctually;

(c) enhance productivity;

(d) exercise due care in the execution of assigned work;

(e) obey lawful instructions regarding the organisation and execution of his or her work;

(f) take all reasonable care for the safety and health of fellow workers;

(g) protect the interests of the employer; and

(h) take proper care of the property of the employer entrusted to the worker or under the immediate control of the worker.

Contract of employment

12. (1) The employment of a worker by an employer for a period of six months or more or for a number of working days equivalent to six months or more within a year shall be secured by a written contract of employment.

(2) A contract of employment shall express in clear terms the rights and obligations of the parties.

Written statement of particulars of contract of employment

13. Subject to the terms and conditions of a contract of employment between an employer and a worker, the employer shall within two months after the commencement of the employment furnish the worker with written statement of the particulars of the main terms of the contract of employment in the form set out in Schedule 1 to this Act signed by the employer and the worker.

Reasons will include

A contented workforce,

The relationship that exists between employers and employees at work is often described as a give and take relationship. Their means that employees offer their labor in return for wage and salaries from their employers. A satisfied workforce is the secret behind the success of most organizations. The document that regulates this relationship is called an employment contract. This contract does not exist in isolation but rather falls within a framework of laws and regulations that exists within the jurisdiction within which the organization is found. These laws exist to protect both parties to the employment contract. Even though it is a contract between two parties, the ability of the employer to comply with this laws and regulations to a very high extent determines how workers perform their assigned tasks and duties. An organization that complies with regulations and equal employment regulation will have staff that are not only happy but also content with the work they do.

Fairness at work,

Organizations employ different people with different skills set and abilities. This employees however expert the organization to treat the fairly as well as equally. Treating different groups of workers equally is however a very difficult task. To ensure fairness at work, the organization has no option but to operate within the laws and other regulations set out to regulate employment relationships between employers and their employees. It is said that applying a wrong law consistently is fair.

Reduction in number of fines.

Even though complying with laws and equal employment regulation is beneficial to organizations, complying with these regulations is not optional. Not complying with these regulations will result in the company paying fines and other compensation to employees whose contracts might have been violated.

Cost savings

Corporate citizens who comply laws and equal employment opportunity regulations are able to reduce the number of court fines and compensation payments that come with not complying with equal employment opportunity regulation. The company would not also have to spend huge sums of money on advertisements and other promotional activities that are geared towards creating a good image for the organisation. This enable the company save costs and thereby being able to offer its products at cheaper prices compared to their competitors.

Maintaining a good company reputation.

Companies also need to comply with laws and equal employment regulations because it helps them maintain their reputation as a law abiding corporate citizen. Corporate reputation is a 'soft' concept. It is the overall estimation in which an organization is held by its internal and external stakeholders based on its past actions and probability of its future behaviour. The organization may have a slightly different reputation with each stakeholder according to their experiences in dealing with the organization or in what they have heard about it from others.

Many organizations put the importance of a good reputation to the back of their minds while they attend to more hard-edged, day-to-day urgencies.

On the other hand, many organizations consider their greatest asset to be their good name or reputation. This is especially true in knowledge-based organizations such as professional services firms in the consulting, legal, medical, and financial sectors and in universities. They work actively to build their good reputation, to build the 'bank of goodwill' towards them.

The main benefits of a good corporate reputation can be found in:

Customer preference in doing business with you when other companies' products and services are available at a similar cost and quality;

Your ability to charge a premium for products and services;

Stakeholder support for your organization in times of controversy;

Your organization's value in the financial marketplace.

Although reputation is an intangible concept, research universally shows that a good reputation demonstrably increases corporate worth and provides sustained competitive advantage. A business can achieve its objectives more easily if it has a good reputation among its stakeholders, especially key stakeholders such as its largest customers, opinion leaders in the business community, suppliers and current and potential employees.

Attracting organizations to work with

Organizations that comply with law and equal employment legislation are the organizations that attract other organizations. Every organization wants to work with parties and partners who will respect any agreement they reach in their business dealings.