CHAPTER FIVE- MANAGEMENT

OF ORGANIZATIONAL
CONFLICT

Admas University
MBA/MAPM
Outline

5.1. Definition of Conflict

5.2. Functional Vs dysfunctional conflict

5.3. Nature of conflict in an organization

5.4. Cause of conflict in organizations

5.5. Conflict management strategies

5.1. Definition of conflict

 It is the process in which,

• one party perceives that its interests are being opposed or

negatively affected by another party

 A process that begins when one party perceives that another

party has negatively affected, or is about to negatively affect,

 something that the first party cares about

5.2. Functional Vs dysfunctional conflict

 It is entirely appropriate to say there has been conflict over the role of
conflict in groups and organizations.
• Should conflict be managed or avoided?

 Traditional View of Conflict

• The belief that all conflict is harmful and must be avoided

 Interactionist View of Conflict

• The belief that conflict is not only a positive force in a group but that it
is absolutely necessary for a group to perform effectively
• This view does not propose that all conflicts are good.
• Conflict can be both functional and dysfunctional.
Functional Vs dysfunctional conflict

 Dysfunctional Conflict
• Conflict can be dysfunctional if it paralyzes an organization,
leads to less than optimal performance, or, in the worst case,
leads to workplace violence.
• Represents conflict that hinders group performance
 Functional Conflict
• Conflict can be functional if it leads to constructive
discussions and improved ways of doing things and thereby
optimal performance.
• Represents conflict that supports the goals of the group
and improves its performance
 Functional Vs dysfunctional conflict

 Hence, conflict can be either constructive or destructive to the functioning of

a group or unit.
 The relationship between conflict and unit performance can be shown in
exhibit 5.1 below

Exh.5.1
Conflict
and Unit
Performance
 Functional Vs dysfunctional conflict

 As shown in Exhibit 5-1 ,

 Level of conflict and performance has an inverted U shape relation.
 Levels of conflict can be either too high or too low to be constructive.
• Either extreme hinders performance.
• If conflict is too low(it is dysfunctional), then performance is low.
• If conflict is too high(it is dysfunctional), then performance also tends to
be low

• An optimal level is one that prevents stagnation, stimulates creativity,

allows tensions to be released, and initiates the seeds of change without
being disruptive or preventing coordination
• The goal is to hold conflict levels in the middle of this range.
• Moderate level of conflict is not only healthy but also important in any kind
of organization.
5.3 Nature(types) of conflict in an organization
 1) Inter organization conflict : conflict between or among organizations
• takes place between two or more dependent organizations.

 2) Intra Organizational conflict : conflict among members of the same

organization . It encompasses horizontal and vertical conflicts.

• Horizontal Conflict- relates to employees or group at the same level

• is caused due to incompatibility of goals, sharing limited resources etc

• Vertical conflict - refers to conflicts that might take place between different
levels of hierarchy
• Conflicts between subordinates and superior occur due to incompatibility of goals.
Nature(types) of conflict in an organization
 3) Inter group conflict : conflict between or among different groups
within organization
• Conflicts between different groups, sections and departments
• E,g conflict between production and sales departments
• Inter-group conflict causes due to factors inherent to the
organizational structure like
• Interdependence, inconsistency in various policy matter for different
sub-units and departments.
 4) Intra group conflict : conflict among members of the same group
within organization
• relates to values, status and roles played by an individual in the group
and the group norms.
• Eg, Individual may want to remain in the group but may disagree with the
methods and procedures followed by the group.
 Nature(types) of conflict in an organization
 5) Inter personal conflict : conflict between or among individuals
• relates to conflict between two or more individuals
• is probably the most common and recognized form of conflict.
• is caused due to disagreement over goals and objectives of the organization.
• These are heightened due to difference of opinion of individuals and when
issues are not based on facts.

 6) Intra personal conflict : conflict within a person

• Intra personal conflict can arise due to :-
• 1.Role conflict: conflict due to mutually exclusive or contradicting
roles
• 2. Role ambiguity: conflict due to vague of role
• 3.Person role conflict: conflict due to incompatibility of personal value
and role requirement.
Nature(types) of conflict....(Cont’d)

 Still there are a lot of other classifications. For instance:

• Task Conflict
• Conflict over content and goals of the work

• Relationship Conflict
• Conflict based on interpersonal relationships

• Process Conflict
• Conflict over how work gets done.
5.4. Cause of conflict in organizations
 The causes of conflict in organization may be related to:
• Structural factors
• Goal Incompatibility- it leads each group to emphasis its own goal
• Task interdependence : particularly sequential interdependency
• Reward systems- usually it creates conflict when one member’s gain
comes at another’s expense
• Inadequate resource

• Personal variables
• Personality difference: particularly for intra group conflict
• Perception difference; emotions and values

• Communication problem
• misunderstandings
5.5.Conflict Management Strategies
 Mostly, managers spent their time on managing conflict
 Conflict Management- primarily focus on:-
• The use of resolution and stimulation strategies/ techniques to
achieve the desired level of conflict
 All conflicts behavior exist somewhere along the continuum as depicted
below:
 Conflict management strategies/styles
 As in the diagram, conflict intensities escalate as they move upward
along the continuum until they become highly destructive

• Conflicts that reach the upper ranges of the continuum or too low are almost
always dysfunctional.

• Then, If a conflict is dysfunctional, what can the parties do to de-

escalate it? Or, conversely, what options exist if conflict is too low and
needs to be increased?

 This brings us the need for strategies/ techniques of conflict

management ( What are the major conflict resolution and stimulation
techniques?)
 Conflict management strategies/styles
 Despite the differences in terminologies used by different scholars
(Follet,1940; Black&Mouton,1964,Thomas,1976; Rahim &
Bonoma,1979), using two dimensions —cooperativeness(concern for
others) and assertiveness (concern for self), they suggest five styles
conflict management

• Cooperativeness
• Attempting to satisfy the other party’s concerns
• Assertiveness
• Attempting to satisfy one’s own concerns
 These basic five conflict management strategies/ styles are as depicted
in diagram below
 Conflict management strategies
 Dimensions of Conflict management styles

 Source: (Thomas,1976 as in cited by Robbins& Judge,2013)

Conflict management strategies/styles
 I) Collaboration(Integrating)
 A situation in which the parties to a conflict each desire to satisfy
fully the concerns of all parties
• handling conflict through mutual cooperation and discussion.
• It involves highest level of cooperation between conflicting parties
 Use collaboration
• To find an integrative solution when both sets of concerns are too
important to be compromised
• One party alone cannot solve the problem.
• To merge insights from people with different perspectives
• Resources possessed by different parties are needed to solve their
common problems
Conflict management strategies/styles
 II) Accommodation(Obliging)
 The willingness of one party in a conflict to place the opponent’s interests
above his or her own
• One party scarify all its interest to the gain of other.
• Individual who apply this strategy is usually has a high afflation need.
 Use accommodation
• When you find you’re wrong and to allow a better position to be heard

• When issues are more important to others than to yourself and to satisfy
others and maintain cooperation

• To build social credits for later issues

• When harmony and stability are especially important
 Conflict management strategies/styles
 III) Competition(Dominating)
 A desire to satisfy one’s interests, regardless of the impact on the
other party to the conflict
• here you strive for your interest even at the expense of other.
• It involves less cooperation and high assertiveness .
 Use competition
• When quick, decisive action is vital (in emergencies); on important issues
• Where unpopular actions need implementing (in cost cutting, enforcing
unpopular rules, discipline)
• On issues vital to the organization’s welfare
• When you know you’re right
• Against people who take advantage of noncompetitive behavior
 Conflict management strategies/styles
 IV)Avoidance
 The desire to withdraw from or suppress a conflict
• Take conflict as if it is a minor problem or not a problem at all.
• This strategy is uncooperative and non assertive
 Use avoidance
• When an issue is trivial, or more other important issues are pressing

• When you perceive no chance of satisfying your concerns

• When potential disruption outweighs the benefits of resolution

• To let people cool down and regain perspective

• When issues seem tangential or symptomatic of other issues
 Conflict management strategies/styles
 V) Compromise
 A situation in which each party to a conflict is willing to give up
something
• It is a kind of give and take strategy.
• Here you strive for your interest but still respect other.

 Use compromise
• When goals are important but not worth the effort of potential disruption of
more assertive approaches
• When opponents with equal power are committed to mutually exclusive goals
• To achieve temporary settlements to complex issues
• To arrive at expedient solutions under time pressure
• As a backup when collaboration or competition is unsuccessful
Conflict management strategies
 Other Conflict Management(Resolution techniques)
 Recall, the conflict resolution techniques may be cause driven:-

• Altering structural variable- Changing the formal organization structure and the
interaction patterns of conflicting parties through job redesign, transfers, creation of
coordinating positions, and the like.

• Superordinate goals- Creating a shared goal that cannot be attained without the
cooperation of each of the conflicting parties.

• Expansion of resources- When a conflict is caused by the scarcity of a resource,

expansion of the resource can create a win-win solution.

• Altering the human variable- Using behavioral change techniques such as human
relations training to alter attitudes and behaviors that cause conflict.
Conflict management strategies
 Conflict-Stimulation techniques

 Communication- Using ambiguous or threatening messages to increase

conflict levels.

 Bringing in Outsiders- Adding employees to a group whose backgrounds,

values, attitudes, or managerial styles differ from those of present members.

 Restructuring the organization- Realigning work groups, altering rules and

regulations, increasing interdependence, and making similar structural
changes to disrupt the status quo.