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Summary CONFLICT MANAGEMENT: IEB-Ready Business Studies Notes

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These PDF document contains all the necessary information needed to achieve a 95% PASS in the IEB FINALS, as I did with these very notes. Each page contains colour (not too much that it becomes distracting) and takes a very structured and consistent approach to summarising. The TEXTBOOK is often TOO WORDY and COMPLEX, where these notes extracts only the necessary information. Good luck for your exams! You will be guaranteed a distinction with these notes! Learn well!

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Chapter 3- Conflict Management
1. Functional and Dysfunctional Conflict

- Negative differences of opinion or the varied emotions people experience often due
to a dispute over a particular issue
- Conflict may lead to a positive outcome, if dealt with correctly

1.1 Functional Conflict
- Where different parties deal with conflict in a healthy and respectful manner
- Positive outcome and may lead to more innovation, creativity and higher productivity
- Respect should be shown by both parties
- Important to listen to others point of view and then acknowledge the opposing view
- Understand that a comprise may be used to resolve the issue and lead to a win-win
situation
- Manager may play "the devil's advocate" in order to cause conflict and allow for
better group bonding (functional conflict)
- Possible outcomes:
- Create awareness that there is a problem, that can then be solved
- Consider a wider variety of ideas which may result in increased participation
for all team members
- Creativity and higher productivity are stimulated
- Preconceptions that may not be accurate, can be discussed and
misconceptions cleared
- Clarification of and individual's views or beliefs ensure cooperation and better
cohesiveness

1.2 Dysfunctional Conflict
- When a conflict situation leads to a decline in productivity
- Often a result of people's misconceptions, their ambitions and egos or an
unwillingness to compromise
- Misunderstandings and lack of communication are a core to dysfunctional conflict
- Manager has to intervene if the situation has a negative effect on productivity
- Hinders group performance
- Wastes resources
- Counterproductive
- Undermines group cohesiveness
- If a compromise cannot be reached, between parties the manager may force the
employees to set their differences aside in order to reach the goals of the business
- Possible outcomes:
- Climate of mistrust (lack of cooperation and synergy)
- Blaming, back-stabbing and gossip
- High levels of stress and anxiety (low levels of job satisfaction)
- Low morale and increased staff turnover (high costs)

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