A brief overview of the contextual factors

The economic crisis in Greece dramatically compounded the situation in the labor sector, as new measures were implemented mainly with Laws 3845/2010, 3871/2010, 4024/2011 and 4046/2012 in the field of the labor market and labor relations with the aim of reducing public deficits and expanding the support of the Greek economy by international organizations. The support measures included wage cuts and significant changes to collective bargaining agreements. In addition, reductions in severance pay were implemented and the limit on collective redundancies was increased with the aim of reducing the labor costs (Miliotis, 2013).

In these circumstances, Greece was called upon to manage the Covid-19 pandemic with new measures, which, like worldwide, had economic, health and social ramifications. The imposition of lockdown and business suspension measures resulted in a reduction in the economic activity, a further increase in unemployment and correspondingly in work insecurity and stress (Moisidis, 2022).

Analyzing the modern Greek working environment, it is important to mention the rapid technological, economic and social changes. With an unemployment rate of up to 48%, work is a necessity for survival even if a job does not match the employee’s capabilities or preferences. In addition, the rapid development of technology worldwide and the need for competitive advantage impose the necessity of training, development, innovation and know-how. In the companies’ effort to maximize their profit or minimize their costs, they do not pay overtime to the employees, who, in fear of being fired, are forced to compromise. This work environment is a stressful factor for the employees, reducing the quality and satisfaction not only of their work life but also of their personal life, a fact that affects the business goals and productivity in a negative way (Anagnostaki, Toraki, 2017).

Why is a conflict triggered?

It is a fact that an employee spends a large part of his time at his workplace. The work environment and the factors that shape it significantly influence not only the performance, but also the employee’s psychology. The facilities, equipment, wage and behavior of his superiors and colleagues are some examples of these factors (Pekri, 2015). Furthermore, the goals, role conflicts, poor communication, organizational structure change, bad management and bad interpersonal relationships are some of the conflict sources (Oreopoulou, 2019)

It is inevitable that in every organization, as a result of human relations, while employees interact with the organization, their superiors and colleagues, due to differences in their opinions, goals and values, tension appears which in many cases could turn into conflict. Conflicts may be caused not only through face to face interaction, but also internet conflicts are frequent as remote work is nowadays a usual practice in Greece, too (Huan, Yazdanifard, 2012). Conflicts are a common phenomenon in Greek businesses as employees feel very stressed and insecure due to the deep long-lasting economic crisis combined with the pandemic. These conflicts may produce negative but also positive effects, depending on the manner that managers cope with it (Sahoo R., Sahoo C. K., 2018).

Conflict Management vs Conflict Resolution

Whatever the source of conflict if it remains unresolved, it can lead to direct (communication barriers, cases of absenteeism, lower level of commitment) and indirect consequences (decreased morale, increased turnover, negative publicity, legal remedies). However, conflicts when appropriately addressed provide an opportunity for a change and a step forward for the people involved as they have the chance to know themselves better acknowledging their strong and weak features and ultimately grow. So it is important that not all conflicts are considered bad and should not be avoided at any cost, as they are not one dimensional and can as well be a motive for change (Viglakis, Fotopoulos, 2016).

McGregor in his X/Y theory concerning labor relations urges the management to provide such a working environment, where each employee has the chance to satisfy his needs through integration in a group, to mature as a separate individual, while at the same time working to achieve the organizational goals (Lawter, Kopelman, Prottas, 2015). Conflict management underlines organizational justice and climate of trust as significant factors in terms of resolving any conflict in the workplace. Another significant factor is the level of emotional intelligence that the employees and the managers possess, because the higher the level of emotional intelligence the better is the understanding of the emotions and the higher is the level of self-control during a conflict (Chatzipaschalis, 2010).

Research has proven that there is direct correlation between leadership and emotional intelligence, too. An effective leader focuses on the workforce and tries to resolve any conflicts that arise in a diplomatic manner towards the best interest of the business, while at the same time being responsible for maintaining a balance in the work environment taking into account the special characteristics of each employee. A leader should therefore have a high level of emotional intelligence to be able to perceive both his own emotions and the emotions and needs of the employees to be able to coordinate them (Soilemezidis, 2015).

Transformational leadership as an ally

According to research, transformational leadership is the model that is most suitable for companies that operate under a climate of uncertainty, such as Greek companies. Communication barriers, financial exhaustion and declining employee morale are the main reasons why transformational leadership is required. Transformational leaders communicate effectively and transparently with subordinates, support and guide them by alleviating insecurity and encouraging teamwork in order to maintain a form of discipline in the organizational environment (Stamoulis, 2021).

In addition, it is significant that every organization develops a conflict resolution strategy depending on the conflict’s intensity and the hierarchy of the people involved. For conflicts less important and in cases that there is lack of time for complete resolution, avoidance is preferred that leads to a lose/ lose situation. On the other hand, collaborating should be applied in conflicts of high importance and more complicated after carefully understanding the source. This leads to a win/win situation as the goal is the resolution of the issue and both parts through collaboration and honesty aim towards maximizing their benefits and fulfilling their needs, while a mediator could assist to resolve the conflict easier and faster (Kaltourimidou, 2018).

Recommendations

To sum up, the system of employee relations is a prerequisite for the effective operation of all organizations, as it affects and reflects the economic, political and social situation of the country in which it is developed (Soilemezidis, 2015). Thus, in Greece, the institutional framework that regulates employee relations should be modernized and adapted to both internal and global developments in order to harmonize with the needs of the contemporary employee. Finally, managers and employees should attend specialized seminars for the cultivation of their emotional intelligence in order to reinforce their self-esteem and communication skills, improve their interpersonal relationships and diversity tolerance.

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