This is an increasingly common scenario in Hong Kong, where local and international companies are acquiring or merging with mainland companies. As a result, divergent cultures and business methods are being brought together under one roof and conflict in the workplace is becoming more common.

Some facets of modern business practice are adding to the problem. Interdepartmental disagreements are part of office life, but employers are now asking staff to be increasingly cross-functional.

Departments are seen less as separate units, and teamwork is emphasised. Individuals, who are encouraged to be adaptable and open to change, are moved around more. Sometimes it works, but often they feel under threat and conflicts arise.

Sidney Yuen, chairman and chief executive of Hong Kong Benchmarking Clearinghouse (HKBC), said the good news was that most workplace conflicts could be resolved if they were addressed rather than ignored.

'They are going to happen, you can't avoid that. It's how you manage them that is more important. Therefore, I believe every manager should have some kind of training in negotiation or mediation,' he said.

A recent US survey found that 88 per cent of Fortune 1000 companies had used mediation in the past few years and an increasing number provided related training. Mr Yuen said Hong Kong companies should follow suit.

'It is absolutely critical for human resources departments to arm their staff with these skills. HR managers should shift from being administrators to facilitators by learning to mediate and transfer this knowledge to employees.'

In failing to do this, they risk their companies becoming more politicised, and may allow a culture of mistrust to develop. If that happens, staff can waste countless hours sending self-serving e-mails, just to cover their backs.

In practical terms, mediation means getting the parties in dispute into one room and giving them the chance to articulate their problems. Anyone can play the role of mediator, provided they are impartial, set clear ground rules, control the process, encourage active listening and do not make judgments. The position entails asking questions to establish what each side wants to achieve and helping the parties towards a common objective. The mediator should never suggest what to do or ask either side to compromise. Whatever the outcome, the aim should be to achieve a complete sense of resolution for both parties.

Companies should also consider putting in place pre-emptive measures, Mr Yuen said. 'I would rather focus on prevention. Once you have a major conflict, people become inflexible and you may have to go to negotiation or arbitration, which is the last resort.'

Research carried out by HKBC, which provides the latest business thinking and benchmarking tools for local companies, showed that communication was key to reducing incidences of conflict. Based on this, Mr Yuen suggested that employers build an 'enterprise wide communications programme' similar to that used by the British Royal Air Force during the second world war.

This is a precise method of briefing a team. It starts with the board, which decides on a list of bullet points under four headings - policy changes, progress, people movement and points of action - and passes these to department heads. The points are then 'cascaded' through all levels of the company in a series of five-minute briefings, so that within 48 hours everyone has the same, consistent message.

Companies involved in a merger or acquisition also have to focus on training, particularly for staff taking on expanded roles. 'You have to provide training so employees have the willingness and ability to face a new job,' Mr Yuen explained.

It is important for employers not to restrict the flow of information. Projects should be defined by time limits, milestones and deliverables, which are known to everyone taking part.

Internal measures of performance should look beyond financial results and view the whole picture of what the company does. Labour issues should be out in the open and senior executives should communicate with team members.

Resolving differences

Choose an impartial mediator to bring parties in conflict together.

Set clear ground rules for discussion, such as no interrupting.

The mediator should prompt both parties to spell out their problems.

The process involves asking questions but not making judgments.

The aim is to create a win-win situation, not a forced compromise.