BUSINESS NOTES
GRADE 12
CHAPTER 3: CONFLICT MANAGEMENT
1. Functional vs. Dysfunctional Conflict
• Conflict refers to negative differences of opinion or emotions due
to disputes over particular issues.
• Conflict often evokes undesirable emotions but may lead to
positive outcomes if handled well.
• Example: A Jewish colleague may refuse a ham sandwich due to
religious reasons, potentially leading to conflict but also fostering
understanding and respect.
1.1 Functional Conflict
• Functional conflict occurs when parties handle conflict
respectfully, leading to positive outcomes.
• Outcomes may include innovation, creativity, and productivity.
• Respect and compromise are essential to achieving functional
conflict and a win-win solution.
• Managers may create intentional conflict (e.g. playing devil’s
advocate) to encourage team bonding.
• Outcomes of functional conflict:
• Awareness of problems, leading to solutions.
1
, • Consideration of diverse ideas, stimulating creativity and
participation.
• Clearing misconceptions and improving cooperation.
• Clarification of views, enhancing teamwork.
1.2 Dysfunctional Conflict
• Dysfunctional conflict leads to decreased productivity.
• Causes include misperceptions, egos, lack of compromise,
misunderstandings, and poor communication.
• Dysfunctional conflict impacts:
• Hinders group performance.
• Wastes resources and decreases group cohesion.
• Managers must address dysfunctional conflict to prevent
(possible outcomes):
• Mistrust and lack of teamwork.
• Blaming, gossip, and backstabbing.
• Stress, lower morale, job dissatisfaction, and high staff
turnover.
• Resource wastage and, in extreme cases, violence.
2. Reasons for Conflict
• Diverse personalities and egos: Differences can hinder
collaboration.
2
GRADE 12
CHAPTER 3: CONFLICT MANAGEMENT
1. Functional vs. Dysfunctional Conflict
• Conflict refers to negative differences of opinion or emotions due
to disputes over particular issues.
• Conflict often evokes undesirable emotions but may lead to
positive outcomes if handled well.
• Example: A Jewish colleague may refuse a ham sandwich due to
religious reasons, potentially leading to conflict but also fostering
understanding and respect.
1.1 Functional Conflict
• Functional conflict occurs when parties handle conflict
respectfully, leading to positive outcomes.
• Outcomes may include innovation, creativity, and productivity.
• Respect and compromise are essential to achieving functional
conflict and a win-win solution.
• Managers may create intentional conflict (e.g. playing devil’s
advocate) to encourage team bonding.
• Outcomes of functional conflict:
• Awareness of problems, leading to solutions.
1
, • Consideration of diverse ideas, stimulating creativity and
participation.
• Clearing misconceptions and improving cooperation.
• Clarification of views, enhancing teamwork.
1.2 Dysfunctional Conflict
• Dysfunctional conflict leads to decreased productivity.
• Causes include misperceptions, egos, lack of compromise,
misunderstandings, and poor communication.
• Dysfunctional conflict impacts:
• Hinders group performance.
• Wastes resources and decreases group cohesion.
• Managers must address dysfunctional conflict to prevent
(possible outcomes):
• Mistrust and lack of teamwork.
• Blaming, gossip, and backstabbing.
• Stress, lower morale, job dissatisfaction, and high staff
turnover.
• Resource wastage and, in extreme cases, violence.
2. Reasons for Conflict
• Diverse personalities and egos: Differences can hinder
collaboration.
2
