Chapter Five - Management Of

Organizational Conflict
 Definition of conflict
• It is the “process that begins when one party perceives
that another party has negatively affected something.”
• “It is also a disagreement between two or more
individuals or groups.
• When most people hear the word conflict, they think of
the term in a negative manner.
• Surprisingly, conflict can actually be a positive within an
organization.
• Two types of conflict that can occur within a company
are functional and dysfunctional. 
 Cont…nd
• Functional conflict is healthy, constructive disagreement
between groups or individuals,
• While dysfunctional conflict is unhealthy disagreement
that occurs between groups or individuals.
 Cont…nd
• Conflict that supports the individual and group goals,
which leads to higher performance is called functional
conflict.
• While the conflicts that hinders individual or group
performance is called dysfunctional conflict.
• It is generally takes destructive form.
 Functional Conflict
• Conflict develops cohesiveness within the group
members.
• Conflict leads to innovation and creativity.
• Conflict provides challenging work environment and
• Enhances opportunities for self-development of group.
• Solving issues together to improve overall morale
 Dysfunctional Conflict
• When conflict does not lead to solution.
• When basic goals of the organization are neglected.
• Conflict may lead to absenteeism and
• Increase turn over if not controlled in time.
 Classification of conflict
• Conflict can be broadly classified in three types i.e.
• Task oriented conflict,
• Behavioural conflict and
• Structural conflict or process conflict.
• Task conflict relates to the group goals or objectives to
be achieved by the group.
 Cont…nd
• Behavioral conflict relates to individual’s value system,
approach, attitude, ego state, skill and norms being
followed by him.
• Studies reveal that most of the dysfunctional conflict fall under
this category.
• Process conflict is related to how a task is being
accomplished in the organization.
• It is related with various processes, procedures, drills/movements
and instructions that are being followed on a particular job.
Cause of conflict in organizations
 Conflict management strategies
• Collaborating − win/win
• Compromising − win some/lose some
• Accommodating − lose/win
• Competing − win/lose
• Avoiding − no winners/no losers
 Collaborating
This technique is used in situations where −
• There is a high level of trust
• We don't want to take complete responsibility
• We want others to also have "ownership" of solutions
• People involved are willing to change their thinking
 Compromising
This technique can be used in situations where −
• People of equal levels are equally committed to goals
• Time can be saved by reaching intermediate settlements
on individual parts of complex matters
• Goals are moderately important
 Accommodating
This technique can be used when −
• An issue is not that important to us as it is to the other
person
• We realize we are wrong
• We are willing to let others learn by mistake
• We know we cannot win
• It is not the right time and we would prefer to simply build
credit for the future
• Harmony is extremely important
 Competing
This technique can be used when −
• We know we are right.
• Time is short and a quick decision is to be made.
• We don't want to be taken advantage of.
• We need to stand up for our rights.
This technique can further escalate conflict or losers may
get revenge.
 Avoiding
This technique can be used when −
• The conflict is small
• More important issues are pressing/persistent and we feel
we don't have time to deal with this particular one
• We have no power and we see no chance of getting our
concerns met
• We are too emotionally involved and others around us can
solve the conflict more successfully
 Types of Conflict
Individual Conflict
 Intra-individual Conflict
 Inter-individual Conflict
Group Conflict
 Inter-group Conflict
Intra-organizational Conflict
 Horizontal Conflict
 Vertical hierarchical Conflict
 Line and staff Conflict
Inter-organizational Conflict
End