PROFESSIONAL DEVELOPMENT

Im p ro v e y o u r c o n flic t
m a n a g e m e n t skills
Test yourself with real-life workplace scenarios and
learn best practices in this quiz.
By Sabine Vollmer

orkplace conflicts are rarely black and To explain how it works best, Pastor likes to use

W white, and managing them usually requires

more than filing a complaint or firing
somebody. To Joan Pastor, a licensed industrial-
organizational psychologist, author, and executive
coach who is a frequent speaker at AICPA confer
ences, conflict management is mostly a multistep
process that includes assessment, analysis, monitor
ing, and negotiation.
examples. The classic conflict scenarios in this quiz
are based on examples that CPAs experienced on
the job and agreed to share with the JofA.
Test your conflict management skills by selecting
all the steps you think should be taken to handle
each conflict. Then find out in the answer section
the process Pastor considers best practice.

42 I Journal of Accountancy April 2016

 1. Mary is a manager, and Joe is a staff member, a.
from different teams in the corporate finance
department. Joe works with Mary on a number b.
of projects but reports to Bill, another manager
and a peer of Marys. Mary, who has about five c.
years of experience in the industry, tends to be
curt and sometimes demeaning to Joe, who d.
has been with the company for nearly 20 years
and is very knowledgeable of the industry. To
m a n a g e t h e c o n flic t b e tw e e n h im a n d M a r y ,
J o e s h o u ld :
2 . As manager of the corporate accounting a.
department, Anne reports to Jim, who is the
CFO and part of the executive team. Anne is b.
concerned the executive team is adding, cutting,
and shifting staff in the accounting department
without strategic thinking and planning. c.
Executive management directed her to eliminate
a staff position and shuffle priorities after one d.
of three entry-level hires didnt work out. Then,
the executive team changed its mind, and,
without asking for her input, reinstated the third
entry-level position by shifting a position from
elsewhere in the company to the accounting
department. To m a n a g e t h e c o n flic t b e tw e e n
h e r a n d t h e e x e c u tiv e t e a m , A n n e s h o u ld :
3 . Somebody in internal audit tells Susan, chief a.
of the internal audit department, that Ray, one
of her most technically competent managers, is b.
displaying some very poor personal skills with
those who report to him. In the presence of c.
peers and superiors, Ray is very quiet and turns d.
down offers of help, but he tells his staff that his
superiors arent supportive enough. I ts them,
not me, Ray tells staff. I try.The tension Ray
creates in the department eventually leads staff
members to quit. To m a n a g e t h e c o n flic t w ith
R ay, S u s a n s h o u ld :
4 . Bob and Jerry are full-time, salaried accountants a.
who report to Harry. Bob shows up at 8 a.m. on
the dot and leaves right at 5 p.m. Jerry comes in
between 9 a.m. and 9:30 a.m. and leaves when
the work is done. Their different work styles are b.
creating a morale problem. Harry learns that
Bob feels hes doing all the work because Jerry c. Track the professional development of
is not working enough and that Jerry feels the
same way about Bob. To m a n a g e t h e c o n flic t
b e tw e e n B o b a n d J e rry , H a r r y s h o u ld : d.
journalofaccountancy.com
Shrug off Marys behavior and continue to
be a valuable member in the department.
Tell Bill whats going on and ask for
his advice.
Work out a strategy with Bill to handle
work assignments with Mary.
File a complaint against Mary with HR.
Say nothing and trust that the executive
team gets it right.
Talk to Jim to find out why the executive
team issued directives without consult
ing her.
Develop a staffing strategy for her team and
present it to Jim.
Look for a job at a company whose execu
tive management appreciates strategic ideas
from middle management.
Put Ray on a performance improvement
plan and monitor the results.
Schedule the whole department for
personal skills training.
Intervene and give Ray a warning.
Let Ray go.
Establish a company policy that sets tiered
work hours, so employees can work, for
example, from 8 a.m. to 5 p.m. or from 9:30
a.m. to 6:30 p.m.
Offer each the option to work remotely a
couple of days per week.
Jerry and Bob and assess their strengths
and weaknesses.
Ignore the squabbling as long as the work
gets done.
April 2016 i 43
PROFESSIONAL DEVELOPMENT
About the
author
S abine V o llm e r is a
JofA se n io r e d ito r.
To c o m m e n t on
th is a rtic le o r to
s u g g e s t an idea
fo r a n o th e r a rticle ,
c o n ta c t h e r at
svollm er@ aicpa.
o rg o r 919-402-
2304.
44 I Journal o f Accountancy
5. Sally, a manager in the finance department of
a not-for-profit with about 400 employees,
receives a complaint from Rick, a staff
accountant reporting to her, that he is being
sexually harassed by Rose, who works for a
team outside of finance. Sally gets H R involved,
but no emails, surveillance tape footage, or
other communication can be found on either
employees computer or company cellphone
to corroborate Ricks complaint. Rose denies
she harassed Rick. The organization closes its
investigation into the complaint without taking
action, but word gets out and employees across
the organization start to gossip and take sides.
To m a n a g e th e co nflict in v o lv in g o n e o f h er
te a m m e m b e rs, Sally should:
6 . John is not an accountant but has performed
several accounting duties in his 30 years in
the finance department. Samantha, a young
accountant who just joined the finance
department, is taking over Johns cost accounting
responsibilities. Samantha has some attendance
issues but is very good with technology. W hen
she tries to automate processes and proposes a
move to newer systems, John frequently stops
her in her tracks and tells her, Thats not the
way we do things. Both report to Amanda, the
companys vice president of finance. To m a n a g e
th e co n flic t b e tw e e n John an d S a m a n th a ,
A m a n d a should:
ANSW ERS
These answers are directional suggestions. To man
age conflict in your workplace, you need to consider
the situations unique circumstances as well as your
companys hierarchies, policies, and culture.
1. (b) and (c) The first step Joe should take is talk
to Bill, his manager, tell him as factually as possible
what is going on, and ask for his advice. Joes second
step should be to work out a strategy with Bill on
how to handle work assignments with Mary. As
part of the strategy, Bill may talk to Mary, he may
tell Joe to talk to Mary, or he may tell Joe to ignore
Marys behavior, Pastor said, but that is not for
Joe to decide. W hen the conflict is with somebody
outside the department or one or more rungs up in
the company hierarchy, a rule of thumb is to first go
to the person you report to, she said.
2. (b),(c), or (d) Anne may talk to a friend or keep
a. Do nothing and hope the gossip will die
down or the accused and the accuser will
leave the organization voluntarily.
b. Ask H R to come up with a training
program that addresses sexual harassment
and make it mandatory for each employee
to attend.
c. Tell Rick she is going to ask executive
management to not tolerate the gossip and
clamp down on it in the finance function
and elsewhere in the organization.
d. Suggest Rick and Rose receive counseling.
a. Tell Samantha to get control of her at
tendance issues, then thank John for doing
a great job and wait for him to retire.
b. Make it clear to John and Samantha that
processes must be automated and new
systems will be installed, and let them talk
to each other about what each needs from
the other to make the changes happen.
Deal with Samanthas attendance is
sues separately.
c. Suggest to her peers in executive manage
ment that the entire company undergo
training that addresses generational issues.
d. Partner Samantha with a mentor.
a journal about the conflict to prepare herself, but
sooner rather than later, she has to begin managing
the conflict by talking to Jim and asking him why
the executive team did not consult her in her teams
staffing decisions. There might be a good reason,
Pastor said. Maybe the executive team is working
on a project they are not telling anybody about yet.
Depending on the conversation with Jim, Annes
next step could be to develop a staffing strategy for
her team or to look for another job.
3. (a), (b), and (c) There are a lot of problems
here, Pastor said about the scenario. Susan may
have to consult with H R or the legal department
before she does anything. Provided Susan has done
so and is free to manage the conflict, Pastor recom
mended a three-step process.
First, Susan should call Ray into her office, listen
to his side of the story, tell him to stop his behavior,
April 2016
 and give him a warning. She may also want to
document the conflict and her actions, Pastor said.
If Ray doesnt change his behavior, Susan should
put him on a performance improvement plan and
monitor the results closely. If Ray improves, Susan
may want to assign him a mentor. If the conflict
persists, Susan should let Ray go based on poor
performance improvement plan results. In addition,
scheduling the whole department for personal skills
training as part of the conflict management process
is not a bad idea, Pastor said.
4 . (a) and (c) A policy on tiered working hours
should be implemented to clarify expectations and
prevent misunderstandings. Next, Harry should
track what Bob and Jerry are doing while they are
workinghow long it is taking them to complete
tasks and how well the tasks are doneto deter
mine whether Bob or Jerry needs skills develop
ment training. This training would be part of Bobs
or Jerrys professional development, Pastor said.
5 . (b) and (c) The size of an organization makes
a big difference in how this conflict is managed,
Pastor said. A t a large company with thousands of
employees, the CFO can tell attendees at the next
division or corporate finance department meeting
to just cut it out, she said, because the gossip
will eventually die out. But at a small company
or not-for-profit with a few hundred employees,
you want to nip this in the bud, Pastor said.
The CFO needs to kick it up to executive
management.
In a not-for-profit with 400 employees, Sally
should check with H R whether sexual harassment
training can be made mandatory and, if it can,
suggest this step to the CFO. Next, Sally should ask
the CFO to get the executive management team
involved in getting the word out to all parts of the
organization that the gossip must stop.
6 . (b) and (d) There are many employees out there
who have been 30 to 40 years with a company and
love when new technology comes on board or are
very open to learning more, Pastor said. This is
not a generational issue. This is a personality issue.
The employee who has been with the company for
30 years either has always been inflexible or has
become inflexible. Amanda should talk to John
and Samantha separately, confirm the changes in
the department are necessary, and ask each what
he or she needs to make them happen. Then, she
should bring John and Samantha together and have
them talk to each other. Waiting for John to retire
is not an option. That could be another 10 years,
Pastor said.
S C O R IN G
If you answered all six questions correctly, congratu
lations. You have excellent conflict management
skills.
If you answered three, four, or five questions
correctly, youre on the right track. Continue to
build your knowledge about managing conflicts.
If you answered fewer than three questions
correctly, consider working with a coach to brush
up on the processes with which to manage com
mon conflicts between peers or within reporting
hierarchies. Conflict management skills are a core
competency in auditing, risk management, and
compliance-type work.
-Joan Pastor Qoan@jpa-international.com) is CEO
andfounding partner at JPA International.

AICPA RESOURCES
JofA a rtic le s
" H o w t o S ta r t a n d R u n a
M e n t o r in g P ro g ra m ," M a rc h 2 0 14,
page 34
" E ig h t H a b its o f H ig h ly E ffe c tiv e
A u d it C o m m itte e s ," S e p t. 2 0 07,
page 46
G o t o jo u r n a lo f a c c o u n t a n c y .c o m
t o fin d p a s t a rtic le s .
CGMA Magazine a rtic le
"Still L e a rn in g : C E O s W a n t
C o a c h in g o n L e a d e rs h ip ," A u g . 7,
2 0 1 3 , tin y u r l.c o m /q d 7 y o c m
G o to c g m a m a g a z in e .o r g to fin d
p a s t artic le s .
N e w s le tte r a rtic le
" M a n a g e r S u rv iv a l Series: T h e
C h r o n ic a lly L a te o r A b s e n t
E m p lo y e e ," CPA Insider, D e c . 7,
2 0 1 5 , t in y u r l.c o m /jf 5 g w m 8
G o to jo u r n a lo fa c c o u n ta n c y .
c o m /n e w s le t t e r s t o fin d p a s t
a rtic le s .
P u b lic a tio n
Communications: Methods
and Applications for Financial
Managers (#PCG 1301P, p a p e r b a c k ;
#P C G 13 0 1 E, e b o o k )
CPE s e lf-s tu d y
T r a n s fo rm in g Y o u r R o le as
C o n tr o lle r t o B usiness P a r tn e r
(# 1 6 4 2 0 0 , o n e - y e a r o n lin e access)
F o r m o r e in fo r m a tio n o r t o m a k e
a p u rc h a s e , g o to c p a 2 b iz .c o m o r
call t h e In s titu te a t 8 8 8 -7 7 7 -7 0 7 7 .

jo urnalo fac co u n ta n cy .co m

April 2 0 1 6 I 45
Copyright of Journal of Accountancy is the property of American Institute of Ceritified Public
Accountants and its content may not be copied or emailed to multiple sites or posted to a
listserv without the copyright holder's express written permission. However, users may print,
download, or email articles for individual use.