The Dana Measure of Financial Cost of Organizational Conflict
A tool for demonstrating the bottom-line impact of HRD and OD interventions
The following analysis was generously provided by a nurse in New England who must remain anonymous in order to preserve the anonymity of the parties involved. The conflict occurred between a doctor and two nurses in a patient care facility.
| FACTOR/DESCRIPTION |
loss |
loss units |
Stella |
loss |
loss units |
Bertha |
loss |
loss units |
Doc |
| |
|
|
|
|
|
|
|
|
|
| Salary |
|
|
$22,000.00 |
|
|
$33,500 |
|
|
$100,000 |
| Salary + benefits |
|
|
$33,000.00 |
|
|
$50,250 |
|
|
$150,000 |
| Workweek hours |
|
|
37.5 |
|
|
28.0 |
|
|
37.5 |
| Length of unresolved conflict |
|
|
52.0 |
|
|
12.0 |
|
|
52.0 |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| 1) Wasted time/energy |
3.0 |
hrs/wk |
$609.23 |
5.0 |
hrs/wk |
$2,070.74 |
2 |
hrs/wk |
$1,846.15 |
| total $ wasted time |
|
|
$4,526.13 |
|
|
|
|
|
|
| 2) Reduced Decision Quality |
|
|
$1,500.00 |
|
|
|
|
|
|
| 3) Loss of Skilled Employees |
4.0 |
empl |
$42,000.00 |
|
|
|
|
|
|
| employee #1 |
salary |
$22,000 |
dec. factor |
1.0 |
|
$33,000 |
|
|
|
| employee #2 |
salary |
$20,000 |
dec. factor |
0.3 |
|
$9,000 |
|
|
|
| employee #3 |
salary |
$20,000 |
dec. factor |
1.0 |
|
|
|
|
|
| employee #4 |
salary |
$20,000 |
dec. factor |
0.3 |
|
|
|
|
|
| 4) Restructuring |
2.0 |
empl |
$1,858.33 |
|
|
|
|
|
|
| employee #1 |
salary |
$33,750 |
|
|
|
|
|
|
|
| employee #2 |
salary |
$22,000 |
|
|
|
|
|
|
|
| 5) Sabotage/Theft/Damage |
|
|
|
|
|
|
|
|
|
| 6) Lowered Job Motivation |
|
|
$2,938 |
|
|
|
|
|
|
| employee #1 |
salary |
$33,500 |
prod loss(wks) |
8.0 |
%decl |
40% |
|
|
|
| employee #2 |
salary |
$22,000 |
prod loss(wks) |
52.0 |
%decl |
20% |
|
|
|
| employee #3 |
salary |
$20,000 |
prod loss(wks) |
1.0 |
%decl |
20% |
|
|
|
| employee #4 |
salary |
$20,000 |
prod loss(wks) |
20.0 |
%decl |
20% |
|
|
|
| 7) Lost Work Time |
|
|
$9,300.00 |
|
|
|
|
|
|
| employee #1 |
salary |
$37,500 |
$3,750.00 |
|
|
|
|
|
|
| employee #2 |
salary |
$22,000 |
$2,200.00 |
|
|
|
|
|
|
| employee #3 |
salary |
$33,500 |
$3,350.00 |
|
|
|
|
|
|
| 8) Health Costs |
|
|
$293.85 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| TOTAL COST OF CONFLICT |
|
|
$60,916.77 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
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|
Thanks to Catherine Herrick, Business Direction, LLC, P.O. Box 1016, South Windsor, CT 06074 for her assistance in developing this research.
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