Organizational Conflict & Resolution Strategies
MA102
Module 6
Organizational Conflict
• A.k.a. workplace conflict
• described as the state of disagreement or misunderstanding by
individuals or groups within the organization resulting from opposing
needs, ideas, beliefs, values, or goals
• Whenever two or more persons interact, conflict occurs when opinions
with respect to any task or decision are in contradiction
• A common example of organizational conflict occurs when workers
advocate for higher pay and the business owner or management wants
pay levels to remain the same
Factors Influencing Organizational Conflict
• Unclear Responsibility: If there is lack of clarity, regarding who is responsible for which
section of a task or project, conflict takes place. And, to avoid this situation, the roles
and responsibility of the team members should be stated clearly and also agreed upon
by all.
• Interpersonal Relationship: Conflicts at the workplace are often caused by interpersonal
issues between the members of the organization. Every member of an organization
possesses different personality, which plays a crucial role in resolving conflict in an
organization.
• Scarcity of Resources: One of the main reasons for occurrence of conflict in an
organization is the inadequacy of resources like time, money, materials etc. due to
which members of the organization compete with each other, leading to conflict
between them.
• Conflict of Interest: When there is a disorientation between the personal goals of the
individual and the goals of the organization, conflict of interest arises, as the individual
may fight for his personal goals, which hinders the overall success of the project.
Types of Organizational Conflict
• Intra-individual/Intra-personal Conflict
▫ an individual’s objective and vision differs from his/her company’s overall vision
• Inter-personal Conflict
▫ conflict between two individuals of the organization
• Intra-group Conflict
▫ conflict occurs among individuals within a team
• Inter-group Conflict
▫ occurs when a misunderstanding arises among different teams within an
organization
• Inter-organizational Conflict
▫ conflict that arises across different organizations
Common Causes of Organizational Conflict
• Managerial Expectations
• Communication Disruption
• Misunderstanding
• Lack of accountability
Structural sources of conflict in organizations
• Task Interdependencies
• Status Inconsistencies
• Jurisdictional Ambiguities
• Communication Problems
• Dependence on Common Resource Pool
• Lack of Common Performance Standards
• Individual Differences
Task Interdependencies
• The first antecedent can be found in task interdependencies.
• In essence, the greater the extent of task interdependence among
individuals or groups, the greater the likelihood of conflict if different
expectations or goals exist among entities, in part because the
interdependence makes avoiding the conflict more difficult.
• This occurs in part because high task interdependency heightens the
intensity of relationships.
• Hence, a small disagreement can very quickly get blown up into a major
issue.
Status Inconsistencies
• A second factor is status inconsistencies among the parties involved.
• For example, managers in many organizations have the prerogative to
take personal time off during workdays to run errands, and so forth,
whereas nonmanagerial personnel do not.
• Consider the effects this can have on the nonmanagers’ view of
organizational policies and fairness.
Jurisdictional Ambiguities
• Conflict can also emerge from jurisdictional ambiguities—situations
where it is unclear exactly where responsibility for something lies.
• For example, many organizations use an employee selection procedure
in which applicants are evaluated both by the personnel department
and by the department in which the applicant would actually work.
• Because both departments are involved in the hiring process, what
happens when one department wants to hire an individual, but the
other department does not?
Communication Problems
• Suffice it to say that the various communication problems or
ambiguities in the communication process can facilitate conflict.
• When one person misunderstands a message or when information is
withheld, the person often responds with frustration and anger.
Dependence on Common Resource Pool
• Another previously discussed factor that contributes to conflict is
dependence on common resource pools.
• Whenever several departments must compete for scarce resources,
conflict is almost inevitable.
• When resources are limited, a zero-sum game exists in which someone
wins and, invariably, someone loses.
Lack of Common Performance Standards
• Differences in performance criteria and reward systems provide more
potential for organizational conflict.
• This often occurs because of a lack of common performance standards
among differing groups within the same organization.
• For example, production personnel are often rewarded for their
efficiency, and this efficiency is facilitated by the long-term production
of a few products. Sales departments, on the other hand, are rewarded
for their short-term response to market changes—often at the expense
of long-term production efficiency. In such situations, conflict arises as
each unit attempts to meet its own performance criteria.
Individual Differences
• Finally, a variety of individual differences, such as personal abilities,
traits, and skills, can influence in no small way the nature of
interpersonal relations.
• Individual dominance, aggressiveness, authoritarianism, and tolerance
for ambiguity all seem to influence how an individual deals with
potential conflict.
• Indeed, such characteristics may determine whether or not conflict is
created at all.
Stages of Conflict
• Latent Stage
▫ people may be in conflict without being aware that they are in conflict
• Perceived Stage
▫ when the people involved in a conflict become fully aware that there is a conflict
• Felt Stage
▫ stress and anxiety are felt by one or more of the participants due to the conflict
• Manifest
▫ conflict can be observed
• Aftermath
▫ takes place
▫ when there is some outcome of the conflict, such as a resolution to, or dissolution
of, the problem
Is conflict good or bad?
• Many people view conflict as bad, negative, and tend to avoid it.
• They believe that conflicts lead to “ugly” feelings, mistrust, damage to
relationships, etc., thus there are indeed many possible negative
consequences
• Given this, can conflict be good? As with almost anything, conflict has
advantages and disadvantages
• Conflict has the capacity not only to cause harm and pain, but also to
create a positive change for us.
• A possible reason for its bad reputation is that conflicts are often poorly
managed and handled in painful ways.
• Under appropriate conditions, conflict can provide important benefits. So,
the answer is yes – conflict can be good
Benefits of Conflict
• Conflicts focus attention on problems that need to be solved, but which have previously been
ignored or neglected.
• Creation of energy, focus, and the motivation needed for solving problems.
• Released negative emotions (anger, tension, anxiety, sadness…) and better control of
emotions.
• Conflicts may prevent disagreement from becoming more intense or damaging.
• Enhanced quality of many decisions– the critique of someone’s ideas by others encourages a
more thorough evaluation of them.
• Also, discussion of incompatible ideas may result in adoption of a more open-minded
approach to issues and problems.
• Facilitation of understanding of other people’s perspectives on the problems.
• Increased closeness with each other and relationships clear of irritations. If the conflict is
among groups, it leads to increased loyalty and cohesiveness. This further results in
enhanced performance and productivity.
• Stimulation of curiosity, interest, and information search. Conflicts also encourage the
consideration of new ideas and approaches and leads to facilitation of innovation and
change.
• Growth– conflicts may promote cognitive, social, and moral development.
Major Costs of Unresolved Conflict
• Work performance and quality
• Lower productivity
• Lost time
• Lost workdays
• Health care costs
• Sabotage or theft
• Higher attrition rate
• Inappropriate decision making
Conflict Resolution
• A way for two or more parties to find a peaceful solution to a
disagreement among them
• From a conflict resolution perspective, conflicts can and must be
resolved by considering the needs of the people affected by the conflict
• For a solution to be lasting, it must meet the needs of all those involved
in the conflict
• Resolving a conflict ends the dispute by satisfying the interests of both
parties
• Successful conflict resolution depends on the ability to regulate stress
and emotions
Conflict Resolution Process
• Step 1: Identify the source of the conflict
• Step 2: Look beyond the incident
• Step 3: Request solutions
• Step 4: Identify solutions both disputants can support
• Step 5: Agreement
Step 1: Identify the source of the conflict
• The more information we have about the cause of the conflict, the more
easily we can help to resolve it.
• To get the information we need, use a series of questions to identify the
cause, like, “How did this incident begin?”
• As a manager or supervisor, we need to give both parties the chance to
share their side of the story. It will give us a better understanding of the
situation.
Step 2: Look beyond the incident
• The source of the conflict might be a minor problem that occurred
months before, but the level of stress has grown to the point where the
two parties have begun attacking each other personally instead of
addressing the real problem.
• In the calm of our office, we can get them to look beyond the triggering
incident to see the real cause.
• Once again, probing questions will help.
Step 3: Request solutions
• After getting each party’s viewpoint on the conflict, the next step is to
get each to identify how the situation could be changed.
• Again, question the parties to solicit their ideas: “How can you make
things better between you?”
Step 4: Identify solutions both disputants can support
• We are listening for the most acceptable course of action.
• Point out the merits of various ideas, not only from each other’s
perspective, but in terms of the benefits to the organization.
• For instance, we might point to the need for greater cooperation and
collaboration to effectively address team issues and departmental
problems.
Step 5: Agreement
• The mediator needs to get the two parties to shake hands and agree to
one of the alternatives identified in Step 4.
• Some mediators go as far as to write up a contract in which actions and
time frames are specified.
Five types of conflict management styles
• Accommodating Style
▫ You put aside your own priorities and focus on others
• Avoiding Style
▫ Dodging the issue until it resolves itself, pushing the problem off into the
future or all-together ignoring the issue
• Collaboration Style
▫ You will work with others to find a solution that fully satisfies everyone and
minimize negative feelings
• Competing Style
▫ You take a firm stance with a mindset of negotiating what you want
Third-party Conflict Resolution
• Involves the use of a neutral third party to either help in the resolution
of a dispute or to resolve the dispute
• Types
▫ Mediation
The mediator helps both parties to understand the various positions of the all
persons involved, in the hope that a mutually acceptable agreement is possible
▫ Arbitration
Where each of the involved parties explains their case to the arbitrator, who
then presents a solution which is binding on all parties
The Mediation Process
• Opening begins the mediation
• Initial discovery phase
• Compromise
• Close
The Arbitration Process
• As arbitration is a contract-based dispute resolution mechanism, there
may be steps set out in the contract which have to be followed before
you can start arbitration.
• Conduct of the arbitration
▫ The arbitration hearing
▫ The award
▫ Challenging/appealing the award
▫ Enforcement
