Conflict Management
Functional conflict
▪ Refers to a situation where parties differ, but they respect each other’s opinions.
▪ The outcome of the conflict is positive and may lead to innovation.
▪ It enhances creativity within the business to solve differences.
▪ It leads to higher productivity when conflicting parties can resolve issues.
▪ Possible outcomes:
o Creates an awareness that a problem exists, which can then be solved.
o It allows for a wider range of ideas and increased participation.
o Misconceptions can be cleared.
o Improves co-operation between people.
Dysfunctional conflict
▪ Refers to a situation where parties differ and people cannot resolve the issue.
▪ Leads to decline in productivity.
▪ Parties are unwilling to compromise and hinder group performance.
▪ A lack of communication persists and undermine group cohesiveness.
▪ Possible outcomes:
o Negative impact on teamwork and co-operation.
o Lower morale and job satisfactions.
o Waste of time and other resources due to a lack of focus.
o May lead to violence in the workplace.
Reasons for conflict
▪ Different personalities. People focus on personal goals instead of the business’ goal.
▪ Differences in background, cultures and values. May lead to irritations and a decline in
productivity. People may feel excluded.
▪ Inner conflict. Perceptions become important and jealousy, a feeling of inferiority, a low self-
esteem and a need to control or impress may lead to conflict.
▪ Lack of communication. Lead to misunderstandings, role overload or role ambiguity.
▪ Change. It creates an uncertainty.
▪ Limited resources or poor distribution. People feel neglect, which influence performance.
This includes a distribution of skills and abilities.
▪ Previously unresolved issues.
Management skills
▪ Ability to deal with change
▪ Tolerate cultural diversity
▪ Improve communication
▪ Think and act strategically.
▪ Emotional intelligence.
Business Studies Conflict Management | 1
Functional conflict
▪ Refers to a situation where parties differ, but they respect each other’s opinions.
▪ The outcome of the conflict is positive and may lead to innovation.
▪ It enhances creativity within the business to solve differences.
▪ It leads to higher productivity when conflicting parties can resolve issues.
▪ Possible outcomes:
o Creates an awareness that a problem exists, which can then be solved.
o It allows for a wider range of ideas and increased participation.
o Misconceptions can be cleared.
o Improves co-operation between people.
Dysfunctional conflict
▪ Refers to a situation where parties differ and people cannot resolve the issue.
▪ Leads to decline in productivity.
▪ Parties are unwilling to compromise and hinder group performance.
▪ A lack of communication persists and undermine group cohesiveness.
▪ Possible outcomes:
o Negative impact on teamwork and co-operation.
o Lower morale and job satisfactions.
o Waste of time and other resources due to a lack of focus.
o May lead to violence in the workplace.
Reasons for conflict
▪ Different personalities. People focus on personal goals instead of the business’ goal.
▪ Differences in background, cultures and values. May lead to irritations and a decline in
productivity. People may feel excluded.
▪ Inner conflict. Perceptions become important and jealousy, a feeling of inferiority, a low self-
esteem and a need to control or impress may lead to conflict.
▪ Lack of communication. Lead to misunderstandings, role overload or role ambiguity.
▪ Change. It creates an uncertainty.
▪ Limited resources or poor distribution. People feel neglect, which influence performance.
This includes a distribution of skills and abilities.
▪ Previously unresolved issues.
Management skills
▪ Ability to deal with change
▪ Tolerate cultural diversity
▪ Improve communication
▪ Think and act strategically.
▪ Emotional intelligence.
Business Studies Conflict Management | 1
