Lesson 2-7. Conflict Management

In many organizations, conflicts within and between groups are common. A conflict is defined as a perceived difference between two or more parties that results in mutual opposition. Conflict is often considered as negative factors. However, it can have constructive, as well as destructive, consequences.

When tensions are so high that people do not cooperate and are not productive, conflict should be reduced so that they can work together to accomplish their objectives. Modern managers do no necessarily try to eliminate conflict, rather they manage it so that is contributes to the individual’s and organization’s productivity.

1. Causes of conflict

Conflict in organizations can exist between individuals, groups, units, departments or organizational levels. There are many reasons why we see conflict in organizations:

•Scarce Resources. Resources include money, information, supplies. In their desire to achieve goals, individuals may wish to increase their resources, which throws them into conflict.

•Unclear Resources. Conflicts emerge when job boundaries and responsibilities are not clearly defined. When duties are clearly specified, people know where they stand. When they are unclear, people may disagree about who has responsibility for specific tasks or who has a claim on resources.

•Communication Breakdown. Poor communication results in misperceptions and misinterpretation. In some cases, information may be intentionally withheld, which can jeopardize trust among employees and lead to lasting conflict.

•Personality clashes. This happens when people simply do not get along or don’t see eye to eye. Such differences could be due to differences in characteristics, values and beliefs.

•Status Differences. Power and status differences occur when one party has disputable influence over another. People may engage in conflict to increase their power and influence.

•Goal Differences. Conflict occurs because people are pursuing conflicting goals. Individual salespeople’s’ targets may put them in conflict with one another or with the sales manager. Moreover, the sales department may have goals that conflict with manufacturing or finance.

2. Managing Conflict

The challenge for managers is to manage conflict in such a way that it contributes to the organization.

a) Conflict between Individuals. Such conflict can be handled by using the following styles:

• Competing Style. This reflects a person’s assertiveness to get his/her own way and should be used when quick, decisive action is required. This may be the case when making important or unpopular decisions such as during emergencies.

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