CIMA E2 Syllabus B. Managing people performance - Vertical Conflict & Industrial Relations and Conflict - Notes ^{3 / 6}

The most visible form of vertical conflict occurs between management and workers and is often formalized by union-management relations.

An example of this can be the trade union representing the workers threatening to take industrial action as a result of the decision made by the senior management to make changes to working practices without consultation.

A vertical conflict can be caused by:

1. Psychological distance - Workers identify with the union and not the organisation. This creates the distance and puts the management and the union into a win-lose conflict.

2. Power and status - Workers feel that they have more power as a union.

3. Ideology - The differences in the ideology of workers and the management can give rise to a conflict.

4. Scarce resources - Financial resources are scarce and can lead to a conflict.

A diagonal conflict is a combination of vertical conflict and horizontal conflict.