Overview of Conflict

A basic definition of organizational conflict is disagreement by individuals or groups within the organization, which can centre on factors ranging from resource allocation and divisions of responsibility to the overall direction of the organization. A simple example of organizational conflict happens when workers demand higher pay and the business owner or management wants pay levels to remain status quo.

In one approach, organizational conflict produces negative outcomes. Conflicts cause stress, which decreases worker satisfaction. The reduced satisfaction level can lead to increases in absenteeism and turnover. Conflict can also lower trust in supervisors and fellow employees, which can slow or stop progress on projects. The pileup of internal negative consequences, such as lost trust and slowed progress, can cause a negative impact on customer satisfaction due to missed deadlines and reduced work quality.

In a different approach, organizational conflict symbolizes an opportunity for productive change. The use of effective communication is central to this view. Organizational conflicts develop for a reason. By recognizing the existence of the conflict and divining the source of it, the business leadership pave way for creative solutions. The simple act of acknowledging and seeking solutions to organizational conflicts can defuse them and draw employees into a stronger relationship with the business. It can also support a flexible organization that copes efficiently with the rapid changes faced by modern businesses.

In some cases, no agreeable resolution for all parties involved in a workplace conflict is present. If, for example, business co-owners see the business developing in two completely different directions, no solution will satisfy both parties. Solving organizational conflicts that engage different visions for the business usually requires one of parties to leave. Every business is faced with limited resources and demands that exceed them. At a certain point, business owners must simply refute requests for more money. An explanation can soften the blow and provide acknowledgement, but the conflict may linger in spite of any attempt to resolve it.