BUSINESS STUDIES
CONFLICT MANAGEMENT
CONFLICT
Conflict = negative differences of opinion/varied emotions people experience often due to a
dispute over a particular issue
A clash of interest or potential disagreement that exists, either facts or assumptions, between
parties that can harm the business if not managed and resolved.
POSITIVE AND NEGATIVE ASPECTS OF CONFLICT
FUNCTIONAL VS DYSFUNCTIONAL CONFLICT
● Can spark creativity
○ Allows people to develop and grow
● Can lead to change/improve productivity
● Outcome is determined by how emotions surrounding conflict is handled
● If not managed considering everyone involved: may lead to poor quality decision making
Functional conflict
● Impossible without respect shown by both parties
● Important that both parties listen to the others point of view & then acknowledge that
there may be a positive outcome
● Compromise in resolving conflict = win-win situation
Dysfunctional conflict
● When conflict leads to a decline in productivity
● Often the result of peoples misperceptions, ambitions, egos, unwillingness to compromise
● Misunderstandings and a lack of communication are central
1
, ADVANTAGES OF FUNCTIONAL CONFLICT/ DISADVANTAGES OF CONFLICT/
POSSIBLE OUTCOMES OUTCOMES OF DYSFUNCTIONAL
CONFLICT
Create an awareness of a problem that can Unless conflict is managed - may hamper
then be addressed to the benefit of the productivity and lower morale
business
May stimulate creative thinking Inappropriate behaviour (violence due to
feelings of confusion/frustration, gossip,
blaming)
Can help people understand a problem High levels of stress and anxiety
better/learn from one another
Can lead to collaboration - focus shifts to Waste of time & business resources
teamwork by encouraging ownership &
commitment in a team
Motivate people to give input & be Climate of mistrust
involved/participate in a situation where they
previously felt apathy
REASONS FOR CONFLICT
1. Change
2. Differences in values, beliefs, and cultural diversity
3. Lack of/poor communication
4. Resource allocation
5. Personalities and emotions
6. Inner conflict
7. Unresolved issues
2
CONFLICT MANAGEMENT
CONFLICT
Conflict = negative differences of opinion/varied emotions people experience often due to a
dispute over a particular issue
A clash of interest or potential disagreement that exists, either facts or assumptions, between
parties that can harm the business if not managed and resolved.
POSITIVE AND NEGATIVE ASPECTS OF CONFLICT
FUNCTIONAL VS DYSFUNCTIONAL CONFLICT
● Can spark creativity
○ Allows people to develop and grow
● Can lead to change/improve productivity
● Outcome is determined by how emotions surrounding conflict is handled
● If not managed considering everyone involved: may lead to poor quality decision making
Functional conflict
● Impossible without respect shown by both parties
● Important that both parties listen to the others point of view & then acknowledge that
there may be a positive outcome
● Compromise in resolving conflict = win-win situation
Dysfunctional conflict
● When conflict leads to a decline in productivity
● Often the result of peoples misperceptions, ambitions, egos, unwillingness to compromise
● Misunderstandings and a lack of communication are central
1
, ADVANTAGES OF FUNCTIONAL CONFLICT/ DISADVANTAGES OF CONFLICT/
POSSIBLE OUTCOMES OUTCOMES OF DYSFUNCTIONAL
CONFLICT
Create an awareness of a problem that can Unless conflict is managed - may hamper
then be addressed to the benefit of the productivity and lower morale
business
May stimulate creative thinking Inappropriate behaviour (violence due to
feelings of confusion/frustration, gossip,
blaming)
Can help people understand a problem High levels of stress and anxiety
better/learn from one another
Can lead to collaboration - focus shifts to Waste of time & business resources
teamwork by encouraging ownership &
commitment in a team
Motivate people to give input & be Climate of mistrust
involved/participate in a situation where they
previously felt apathy
REASONS FOR CONFLICT
1. Change
2. Differences in values, beliefs, and cultural diversity
3. Lack of/poor communication
4. Resource allocation
5. Personalities and emotions
6. Inner conflict
7. Unresolved issues
2
