Summary Business Studies Chapter 3 (Conflict Management)

CHAPTER 3
CONFLICT MANAGEMENT
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FUNCTIONAL VS. DYSFUNCTIONAL CONFLICT
Conflict can be defined as negative differences of opinion or the varied emotions
people experience often due to dispute over a particular issue

Functional Conflict
Different parties deal with conflict in a manner that is healthy and where they respect
each other’s opinions. The outcome is positive and may lead to innovation , creativity
and higher productivity.
Possible outcomes of functional conflict:
➢ Create awareness that there is a problem
➢ Consider a wider range of ideas
➢ Creativity and higher productivity may be stimulated
➢ Perceptions are discussed and misconceptions are cleared
➢ Clarification of individuals views

Dysfunctional Conflict
Conflict leads to decline in productivity. Misunderstandings and lack of
communication are central to dysfunctional conflict.
Possible outcomes of dysfunctional conflict:
➢ Climate of mistrust
➢ Blaming each other, backstabbing and gossip
➢ Higher levels of stress
➢ Lower moral and increased staff turnover
➢ Waste of time and other resources
➢ Violence


REASONS FOR CONFLICT
• In the workplace people with different personalities and egos often get in the
way.
• Differences in backgrounds, cultures and values. It’s important to address these
types of issues before they become a problem.
• Poor communication leads to misunderstanding, because facts are interpreted
in different ways. May lead to role overload, role conflict or role ambiguity.
• Change brings uncertainty as there is often resistance to change. A two way
communication strategy makes employees feel valued
• Limited resources and competition between team members for these resources
may lead to conflict.
• Previously unresolved issues may “erupt” in conflict in the future.