Organizational Conflict and Its Effects in Employees

A Seminar paper

Submitted By

Purnima Adhikari

Bachelor of Business administration

Third Semester

Leadership and Organization Behavior

Submitted to

Faculty of Management

Public Youth Campus

Tribhuvan University

November 2023
 RECOMMENDATION LETTER

The seminar paper entitled ORGANIZATION CONFLICT AND ITS EFFECT ON EMPLOYEES
submitted by Purnima Adhikari, Public Youth Campus, Dhobichaur Kathmandu, is prepared
under my supervision as per the procedure and format requirement laid by the Faculty of
Management Tribhuvan University, as partial fulfillment of the requirement for the degree
of Bachelor of Business Studies (BBA). I, therefore recommend the seminar paper for
evaluation.

Signature:

Rina Sangat Dangol

Date:
 iii

ACKNOWLEDGEMENT

I would like to express my deep gratitude to my supervisor, Rina Dangol for her valuable
guidance and suggestions which inspired me to complete this in time. I am thankful to her for
the frequent assistance throughout the whole research work.
Furthermore, I am also indebted to our teachers and my classmates for assisting me in the
various parts of the research work without their continuous encouragement, it would be
impossible for me to complete this study.
 iv

ABSTRACT

This report is about conflict and its impact on employees and workplace. In today’s business
environment conflict in the workplace is a significant issue and understanding the causes and
outcomes is crucial. Workplace conflict is worth studying to reduce costs in a personal and
professional way, so organizational leaders could harness the conflict situation and creativity.
The purpose of this report is to evaluate how conflicts in the workplace impact employee
performance with negative or positive outcomes.
KEYWORDS: Conflict, Conflict management, Performance management, Workplace
conflict, Employee performance,
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Table of content

Title page………………………………………………………………………………………i
RECOMMENDATION LETTER..................................................................................................................ii

ACKNOWLEDGEMENT...........................................................................................................................iii

ABSTRACT.............................................................................................................................................iv

Table of content.....................................................................................................................................v

CHAPTER I..............................................................................................................................................1

Introduction...........................................................................................................................................1

1.1 Background of the study........................................................................................................1

1.2 Statement of the problem...........................................................................................................2
1.3 Objectives of the study:...............................................................................................................2
1.4 Limitation of the study:................................................................................................................3
1.5 Methodology...............................................................................................................................3
CHAPTER II.............................................................................................................................................4

Description and analysis........................................................................................................................4

2.1 Conceptual/Theoretical foundation.............................................................................................4

2.2 Empirical Review:.........................................................................................................................7
2.3 Evidences...................................................................................................................................10
2.4 Analysis and discussion..............................................................................................................10
CHAPTER III..........................................................................................................................................14

Summary and conclusion.....................................................................................................................14

3.1 Summary....................................................................................................................................14
3.2 Conclusion.................................................................................................................................15
REFERENCES........................................................................................................................................17
 CHAPTER I

Introduction
1.1 Background of the study
In the dynamic 21st century organizational conflict is continually increasing and becoming a
very significant issue in the business environment. A survey by The Centre for Creative
Leadership and Eckerd College St. Peterburg, Florida found that managers spend twenty to
forty percent of their working time dealing with and responding to conflicts (McGuire, 2014).
Organization is a collection of people working together in a division of labor to achieve a
common purpose. People have to interact, communicate, coordinate and work with each
other. It is not always possible to work in peaceful and harmonious condition. There could
occur disagreement, opposing interests and decisions, different perception, opposition of
thoughts, clash of goals, statuses, values, personalities and incompatibility. Sometimes
conflict may occur due to it. Conflict is totally natural phenomenon when two or more people
work together in organization. It can be distinguished as behavioral outcome and an integral
part of life.
Conflict can be defined as a clash between individuals arising out of a difference in thought
process, attitudes, understanding, interests, requirements and even sometimes perceptions. So
similarly, organizational conflict workplace conflict, is described as the state of disagreement
or misunderstanding, resulting from the actual or perceived dissent of needs, beliefs,
resources and relationship between the members of the organization.
Organizational conflict occurs when there is incompatible goals, attitudes, emotions,
behaviors, different perception, blockage in one's goals achievement by others, poor
communication, information deficiency and organizational change. Other main reason for
conflict in organization is scarcity. Resources are scarce due to which individuals and groups
in organizations compete for budget, space, supplies, personnel, and support services.
Inequity and sexual harassment are also another reason for organizational conflict.
Levels of Conflicts in organizations
Conflicts can occur at the following levels at organizations:
 Intrapersonal Conflict: Conflict arise within the individual due to
incompatibility of an individual's expected roles with his or her own values and
 2

beliefs is called intrapersonal conflict. It is of two types: Value conflict and

Decision making.
 Interpersonal Conflict: Conflict between two or more individuals in an
organization is known as interpersonal conflict which is most common and
recognized form of conflict. It arises due to disagreement and differences on
opinions of individuals.
 Intergroup Conflict: Conflict between different groups and sections and
departments of organization is known as intergroup conflict. Most probably
caused due to independence, scarce of resources, differences in group goals and
inequity and discrimination in departments on promotions and reward system.
 Inter Organizational Conflict: Inter organizational conflict takes place between
two dependent organization like government Uorganizations, unions and buying
and selling organizations of organizations.
Conflict doesn't always have to be negative and shouldn't be perceives as negative. Conflict
can be destructive as well as constructive. Conflicts are necessary in any organizations
because healthy debates and respectful disagreement can lead to growth of business and
organization and allow for more creativity, stronger ideas and more engaged employees. It
encourages a deeper investigation of the issues as it highlights areas for improvement,
enhance morale and cohesiveness also. Whereas as conflicts hinders individual and group
performance in an organization because it causes stress and anxiety and a type of pressure at
work which decreases satisfaction and attachment to work. A climate of mistrust arises due to
conflict which decreases teamwork and cooperation.
1.2 Statement of the problem
Conflict is inevitable. The problem of organization conflict is a significant issue that affect
the overall efficiency and effectiveness of the employee within the organization. When
conflicts arise within an organization, they can have profound negative impacts on
productivity, employee morale, and the overall well-being of the organization. Conflict
situation create high levels of stress, which can have detrimental effects on both physical and
mental health. Employees may experience increased absenteeism, burnout, and decreased job
motivation as a result of ongoing conflicts.
1.3 Objectives of the study:
The main research statement of this study examines workplace conflicts and their impact on
performance management. The major objectives of the study are:
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1. To explore and gain ideas about organizational conflict and find out reasons for
conflict in organization.
2. To find out impacts of conflict in organizational performance and employees working
in the organization.

1.4 Limitation of the study:

The limitation of the study are:
1) The data are secondary so I have no way to verify them.
2) The study is a bit more focused on big corporations.
3) Limited study due to limited time limit.

1.5 Methodology
Methodology of the study or research methodology is the specific process used to identify,
select, process, and analyze the information about the stated topic. The methodology may
differ according to the research topic and field of study. This is completely based on
qualitative study. All the background information about concept of conflict and
organizational conflict, nature and characteristics of conflict, types and levels of conflict,
reasons for conflict and its effect on organizational conflict and employees and moreover
conflict management approach are all quantitative information.
The information I have taken are from the secondary sources i.e books, articles and
documentaries related to organizational conflict and its effects on organization's performance
and employees.
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CHAPTER II

Description and analysis

2.1 Conceptual/Theoretical foundation
Conflict has been defined in a multitude of ways and researchers have not found a common
term, but there are different interpretations of it (Rahim, 2002;Thomas, 1992). Early
organizational conflict theorists like Max Weber and Henri Fayol described conflict as
unfriendly and unpleasant (Katz and Flynn, 2013). Conflicts have been confirmed as an
unavoidable part of the organizational life cycle, and all managers, employees, and
subordinate’s expectations within organization are incompatible (Jones et al, 2000) and it
arises from tension between people working in a team because of individuals real or
perceived differences (De Dreu, 1999; Thomas, 1992; Wall and Callister,1995).
Conflict occurs when the individuals need to do a task and social entities such as individuals,
groups, and/ or organization’s interests/ needs are incompatible; when a party is seeking a
goal and is not fully satisfied with the result; when the parties have different skills, attitudes
or values in the workplace and perceive the outcome differently; two parties have different
behavioral preferences when they are engaged in the same activity; any conflict has to be
recognized when it occurs so it does not escalate further. Simple and small conflicts can
escalate into bigger problems and lead to a major problem in an organization. Although all
researchers’ approaches are defined in their own way, they all have a common dimension that
is described as diverse in nature and has different perspectives.
When conflict has been analyzed, it has been described and defined in many ways. Potential
for conflict occurs with interactions in relation to two or more people in the workplace. No
matter what kind of disagreement happens: small or intense conflicts can escalate with
dysfunctional outcomes for professional and personal lives. Therefore, conflict is not easy to
manage or resolve and requires a great deal of effort. Most conflict theories and
psychological approaches are directed towards recognizing the conflict at the early stages and
managing the conflict between employees in a positive way. It may appear that causes of
conflict are myriad within any given organization. Disagreements arise between managers
and colleagues on a daily basis. Therefore, conflict could happen between individuals, as they
are themselves different with different opinions, values, understandings, and beliefs. It leads
to individual or group conflicts within the organization. In different situations of conflict, five
separate conflict-handling styles can be applied. These conflict strategies and styles are very
 5

important in the organization in order to create a pleasant environment and encourage the
setting up of creative thinking and a problem-solving attitude (Sanda, 2008).
Conflict consequences can be very functional and dysfunctional. Substantive conflict should
be encouraged given the positive outcomes and affective conflict minimizes between
individuals and groups within organizations (Rahim, 2002).
Conflict consequences can be very functional and dysfunctional. Substantive conflict should
be encouraged given the positive outcomes and affective conflict minimizes between
individuals and groups within organizations (Rahim, 2002).
Conflict cannot be resolved or reduced if leaders do not understand the cause of the conflict.
It is crucial to diagnose the conflict and manage it effectively, which can significantly impact
employee performance. The goal of conflict management (planning measures) is to avoid
conflicts when possible and when conflicts occur, manage them rapidly and effectively
(Madalina, 2016).
Impacts of conflict in organizational performance and employees
Conflict effects commitment and employee absenteeism. The most common effect of conflict
occurs when staff argue constantly and are not able to collaborate and/or communicate
properly. It results in misunderstanding, low morale employee engagement, distrust, missed
performance goals, and lost sales. Workplace conflicts have a direct influence on employee
performance such as employee morale, absenteeism and it is one of the cornerstones of
business (Greg, 2010).
Conflict Management Handling Styles
According to Robert Blake and Jane Mouton (1964) and their Managerial Grid model there
are two different approaches to conflict style in relation to people and task (Kew and
Stredwick, 2016). Subsequently, Thomas (1976) refined the Blake and Moutons model and
presented his own five styles of resolution model, which includes cooperative, competitive,
accommodating, avoiding, and compromising (Rahim and Magner, 1995). The model is
shown in figure 1 and explained in detail. It includes:
 Accommodating style: In the conflict process one person is right in a winner
position, another person is wrong in a losing position. One of the parties show high
cooperativeness.
 Collaborating style: That means that the dispute resolution has two dominant people
with two winners’ positions. Two individuals in the conflict situation are integrated
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into the winner stage where both parties show high level of cooperation and
assertiveness.
 Competitive style: It is like the competition between each other. In conflict
resolution one person becomes the dominant winner, the other loses where high
degree of assertiveness and a low degree of cooperativeness occurs.
 Avoiding style: The conflict process proceeds with the ignoring principle, where any
issues happen employees try not to pay attention and ignore it. Therefore, there is no
winner in this stage, both parties are losing because of low level of cooperation and
assertiveness.
 Compromising style: This style approach is to find the best solutions for each party,
to make a compromise to each other where conflicting parties are partially assertive
and cooperative.
Interpersonal Handling Conflict Styles
The five conflict management handling styles help to achieve better results within an
organization. The appropriate situations for using the five interpersonal conflict handling
styles are explained which are appropriate or inappropriate for a given situation.
 Interating; This conflict style is related to problem solving styles, defining the
problem and resolving it in the meantime. It involves communication, collaboration,
looking for alternatives and satisfaction for both parties. This style can be used for
complex issues, when one party does not have a solution, another party can propose
an alternative way, and this style is appropriate. It is useful in dealing with
organizational issues, objectives (Rahim, 2002) and is the best approach for social
conflicts (Pruit and Carnevale, 1993).
 Obliging; This style of handling is used for minor differences and is unaware of the
roots of the issue, and the issue is the most important element. It leads to the winning
and losing position, where one party will quit for some reason and another party will
benefit from it. This style is inappropriate when the party is unethical. Preserving
relationships is important when dealing from a position of weakness and this style is
appropriate in such a situation.
 Dominating; This style is defined as competitor style, no matter what is happening
one person has to become dominant in the position and forget all expectations and
objectives of the other party. This can be harmful for one party once a decision has
been made. In an appropriate situation this style will be used for technical and quick
 7

decisions to be made but is inappropriate when issues are not important to any one
party.
 Avoiding; This style is associated with stepping back, where each party’s concerns
are not satisfied. It is used to deal with small issues and involves a cool down period
when dealing with a conflict process. Also, this style is used when one of the parties
experiences a negative outcome. An inappropriate situation is when the party has
decided and both parties are not willing to wait.
 Compromising; This style will be used in negotiations for solving complex problems
to find a compromise or mutually acceptable solution. Even if the parties do not find a
solution, a temporary solution can be used to get the issue solved temporarily. It is
complex and it is inappropriate to use this style when one party is more powerful than
another.
Some scientists agree that the most suitable style for managing conflict constructively
involves the integrating and compromising style as it solves strategic issues. Some styles are
appropriate to use for daily issues or problems (Blake and Mouton, 1964, Rahim and
Bonoma, 1979). Each handling style can be applied to a specific situation, some styles can be
more appropriate than others (Rahim, 2001). Women and men as the leader of a team use
different approaches when dealing with conflicts. Men in higher positions approaching
conflict will use it to satisfy their own concerns and prefer a competing position, whereas
women will differ and look to satisfy the other side’s concerns and choose a position of
compromise (Blackburn, 2020).

2.2 Empirical Review:

(Henry, 2008) The aim of this study was to find out the causes, types, effects and strategies on
how to manage conflicts in organizations effectively to enhance organizational performance.
Therefore, it is the prime responsibility of management to put in place appropriate strategies
on how to minimize conflicts. This research contributes to the body of the existing literature,
specifically it will inspire managers to develop appropriate strategies on how to manage
conflicts in their organizations effectively. The convenience sample of one hundred and thirty
managers was selected for the study from government departments, parastatals and private
companies. The tabular method was used to analyze the data. The finding indicate that the
major cause of organizational conflict is limited resources.

(Zewdie, 2018) It is apparent that employees are the major valuable assets of an organization in
which without them, hard to realize its basic objectives. To harvest more from employees it
requires creating conducive working environment which satisfies the needs of individual
employee as well as the manager of an organization. This conceptual paper tries to examine
the basic concepts employee relation and its effects on employee performance through
 8

investigating a number of employee relationship management components such as

communication, participative leadership, shared goals and value, mutual trust, motivation and
conflict management. Moreover, the relationship between employee relations and employee
performance is explored in-depth. The study also discusses on employee performance which
comprises of the basic concept and measurements of performance. From a comprehensive
review of literature on earlier studies, it was found that the preceding researches didn't make
thorough endeavor to address the effects employee relation on employee performance.
Finally, it was suggested that future researchers should investigate profoundly to come up
with notable empirical results.

Key words: Effects, Employee Relation, Improving, Employee Performance

(Nino Paresashvili)Conflict management is one of the major skill that has a significant
influence on the tasks employee have to perform daily bases. Conflict is unavoidable in daily
routine of the organizations. Its importance is increased in the developing countries like
Georgia as external factors make people to work in more unpredictable situations. This article
is based on the research conducted in Georgia, shows main challenges, trends and
understanding of conflict management, shows results and offers recommendations how to
make employees more productive by managing it effectively. Objectives: This study aimed to
evaluate main challenges of conflict management, its impact on employee and organization
productivity in Georgia, make conclusions and give recommendations to managers and
employees how to deal with the conflict situations and improve constructive outcomes. Other
factors influencing productivity connected to conflict management were also investigated.
Results: Results has shown that conflict management understanding is quite low in Georgian
organizations, as well as the constructive and destructive outcomes of it. Reasons of conflict
is mainly improper distribution of functions and duties. Employees prefer to use collaborating
style for conflict resolution.

(Siddiqui, 2013)This research determines the work life conflict and its effect on employee
performance. The technique used for data collection is structural interviews from the survey
respondents residing and employed in Jeddah. The response rate is optimum due to the
accessible participants. Jeddah is selected to have survey as its the prime location in KSA.
Methodology adopted to find the work life issues of the people of Jeddah and the effect on
the employees working in different organizations at Jeddah. Most important is that Jeddah is
a part of Muslim State and mostly people are believers of Islam and national language is
Arabic. Public awareness was created by the researchers regarding the problem prevailing in
the country on how some organizations are getting the benefits of social support work and
some don’t and found out that out of many reasons one of them is the lack of specificity and
adequateness of general-ability. In this research qualitative method is used which consists of
primary as well as secondary approach for gathering information and relevant data. Interview
questionnaires were used in order to gather the primary data. Moreover, critical evaluation
and analyzing of the data was done by finding the reliability of collected and used data which
were mainly gathered from the participants or the people of Jeddah who were employed in
different organizations and were facing such kind of problems relating to work life and
performance drawbacks. This research provides enough information about work life conflicts
 9

and its effects on the employee performance and contribution to alter attitudes of skills. One
of the illustrations of organizations in Jeddah is Arabian Gulf manufactures LTD. Co having
24 hours production who require to expand a high stage of flexibility and openness to all
humans including their leaders, workers or clients. Very few organizations have an affinity to
grip the ethnocentric means for company decisions to establish and for their development.
Research has originate that now organizations in Saudi Arabia give more concentration to
cultural know how in global business to improve more developments and betterments of their
employees.

Keywords: Work Life Issues, Job Performance, Work Life Conflicts.

(Gulua)There is no organization without conflict situations. It is known that 80% of conflict

situations occur independently of human will. Its causes are people’s individual
characteristics, as well as structure of the organization, conditioned by the culture established
in the organization. How correctly organizational management analyzes the causes of
conflicts, managing stress, diagnostic of the conflict and its management are reflected on the
psychological climate of the organization. The psychological climate is directly related to the
labor productivity of each member of the organization and the whole organization itself. On
the background of strenuous labor relations, the potential of the organization members is
spent on the settlement of the conflict environment and it takes a large part of their time
budget. Proper use of time resources affects labor productivity. The Human Resources
Management Laboratory which is functioning at Ivane Javakhishvili Tbilisi State University
has already conducted a research in this regard. Due to the actuality of the issue, the
laboratory aimed to conduct a further research about conflict situations in the organization.
The research was focused on the Faculty of Economics and Business of Ivane Javakhishvili
Tbilisi State University. 458 respondents were interviewed including Bachelor's and Master’s
Degree Students, Professors and Administration Representatives. The questionnaire included
36 questions and 133 options of response. As a result of the research, frequency of conflict
situations in the organization was established, the active link of conflict situations. The
reasons for the involvement of the collective team members into the conflict have been
identified. The attitude of respondents of different categories was interesting in terms of
resolving conflict situations. Conflict situations combined with the rest of the stages include
the analysis of the causes. Different categories of respondents differently understand the
importance of analyzing the causes of conflicts. The study finally made many interesting
problems clear. The results obtained were processed by the SPSS program. We have
formulated the hypothesis, studied the influence of the status and the gender of a respondent
(bachelor, master, professor, and representative of the administration) on up to 15 variables.
Trends were revealed through the tables developed on dispersion analysis. The conclusions
made on the basis of the analysis of the survey results gave us the opportunity to make
recommendations for the recovering and systemic improvement of the established values in
the organization. The planned events will help the collective to undergo 3 stages of self-
organization, meet the needs of the members, which will improve the psychological situation
in the collective. It will facilitate each member’s involvement in order to protect the
organization's prestige and traditions. It is interesting to note that the majority of respondents
 10

are loyal to the university, which confirms the true fact that Ivane Javakhishvili Tbilisi State
University is number one university in the country as well as in the region, is being
developed and is constantly maintaining the championship and is trying to improve the
conditions of the collective members.

Keywords: Conflict Management, University, Human Resources Management, Management

of Higher Education institution.

(Rizky Budi Kurniawan) Jatiroto Sugar Factory is the largest business unit owned by PTPN XI,
the performance of Jatiroto Sugar Factory is the foundation of the company's survival
because it has the largest sugar production capacity among other business units. This study
aims to analyze the effect of work conflicts, work stress, organizational commitment and
employee performance at Jatiroto Sugar Factory. This research is an explanatory research.
The population in this study are employees of permanent status and has worked at least 2
years as many as 150 people. The results showed that; 1) Work conflicts have significant
effect on organizational commitment of employees; 2) Work stress significantly influences
organizational commitment of employees; 3) Work conflicts significantly affect employee
performance; 4) Work stress had a direct but not significant effect on employee performance;
5) Organizational commitment has a significant effect on employee performance at Jatiroto
Sugar Factory.

Keywords: Employee Performance, Organizational Commitment, Work conflict and work

stress.

Three types of conflict among the subunits of formal organizations are identified: (1) bargaining
conflict among the parties to an interest-group relationship; (2) bureaucratic conflict between the
parties to a superior-subordinate relationship; and (3) systems conflict among parties to a lateral or
working relationship. In each of the three cases, conflict is treated as a series of episodes, each
episode including stages of latency, feeling, perception, manifestation, and aftermath. The
organization's reaction to conflict in each case is analyzed using the Barnard-Simon model of
inducements-contributions balance theory. Of particular interest is whether the organization
members resolve conflicts by withdrawing from the organization, by altering the existing set of
relationships, or by changing their values and behavior within the context of the existing
relationships.

2.3 Evidences
One implication for leadership from the study is that workplace conflicts within an
organization have a significant effect on employee absenteeism, turnover, and employee
wellbeing. Each employee faces different conflicts, and it has to be accepted and solved. As a
result, the managers or leaders have to be trained in conflict management techniques within
an organization and will then be more confident in dealing with employees in conflict.
Some crucial examples of evidence of organizational conflict and its effect on employees
include;
 11

i. Decreased job satisfaction

ii. Increased stress level
iii. Poor communication and collaboration
iv. Employee turnover
v. Negative impact on morale

2.4 Analysis and discussion

This chapter will provide detail description of the major issue. It determines the ability to
answer the main question: Why does conflict arises in workplace, How workplace conflicts
impact employee performance and follows up into three research objectives.
1. Definition of conflict and reasons for conflict according to the employees working in
the different form of organization
• “Conflict means that two or more people do not get along and have a problem working
together to get tasks done or two different parties have poor communication each other, or
one is unfair to another staff member. Conflicts happen quit frequently.” Participant One
• “Conflicts start with different opinions between each other, disagreements, or lack of
resources in the workplace. In big organizations like mine, conflicts happen every day, very
rarely we do not have conflicts daily.” Participant Two
• “Conflicts arise when people look at things in different ways, it can be negative and positive,
and it depends on the conflict situation. It cannot be tolerated in the business as it destroys the
whole system. We have lots and a mix of conflicts within the organization, some of them
happen day to day, for example employee and customer conflict happens regularly, but not
every day.” Participant Three
2.Why does conflict arise in the organization?
The following are some of the significant sources or causes individual conflict and group
conflict in an organization.
Communication Problem:
Communication refers to the means of exchanging information, guidelines, instructions and
suggestions between the members of the organization. One of the main causes of conflict is
poor communication, barriers and breakage in communication causes conflict between
individuals and also in group. Communication breakdown, misunderstanding, language
barriers, misinformation, information overload, and noises in challenges are inevitable here
many different peoples work together. Then they start blaming each others for the failure of
 12

communication and misunderstanding which also develops the mistrust among the employees
and causes interpersonal and intergroup conflict.
Personal Differences: As people working in an organization belongs from different
backgrounds, culture, education, trainings and experiences and socialization process, due to
which they hold different beliefs and attitudes. Personality differences create conflict among
people. It affects on emotions of individuals. So, personal differences are the fundamental
causes of interpersonal conflict in the organization.
Competition for resources: The common reason for the conflict is scarce resources. When
organizational resources become limited it increases the wants of individuals in a group.
Limited resources generate conflict as scarcity motivates people to compete with others to
achieve objectives. The greater the limitation of the resources, then usually the greater the
potential for conflict.
Goal Differences: Different individuals may have different goals. The goal is the basis for
organizational performance. All activities of the individuals concentrate on achieving
predetermined goals. Therefore, if individuals in the same group initiate different goals, it
may cause conflict among group members. They cannot do work effectively.
Role incompatibility: A role is the expected pattern of behaviors associated with members
occupying a particular position within the structure of the organization. In practice, the
manner in which people actually behave may not be consistent with their expected pattern of
behavior. Problems of role incompatibility and role ambiguity arise from the inadequate or
inappropriate role definitions and can be a significant source of conflict.
Some other reasons for conflict are:
 Lack of role clarification
 Threat to status
 Lack of trust
 Organizational change
 Organizational stress
 Sexual harassment and inequality
3.How workplace conflicts impact organizational and employee performance?
Conflict among workers in an organization is inevitable. If it is managed and resolved
properly, it will bring catalyst for change and can have positive impact on employees
satisfaction and performance of the organization. Conversely, unmanaged conflict negatively
impacts both employee satisfaction and job performance which directly hampers the
performance and productivity of an organization.
 13

The negative effects of workplace conflict can includes;

Work disruptions: Frequent conflicts can cause frequent work disruptions.
Decreased productivity and performance: Conflict causes members to focus less on the
project at hand and more on gossiping about the conflict and venting about frustrations.
When an organization spends much of its time dealing with the conflict, it wastes time to
achieve the set core goals of an organization and when objectives are not fulfilled, it
decreases the productivity as well as the performance of an organization.
Employee Turnover Increases: When conflicts increases frequently in an organization, the
frustrations and stress increases in employees due to which increases employees turnover
rate. When employees mistrust management or perceive the organization as acting unfairly,
turnover may increase.
Absenteeism: Absenteeism increases in organization due to less employee satisfaction, more
frustration and stress due to conflict at workplace which hinders the employee performance.
4.Ways for conflict management and resolution strategies;
Conflict management is the process of limiting the negative aspects of conflict while
increasing the positive aspects of the conflict. After the approach of collaborating, avoiding,
competing, accommodating and compromising, some of the other ways are for conflict
management are:
Reducing differentiation on workplace; When diversity in organizations increases, it will
cause differences in the application of company policies and practices. In such case, when an
organization adopts a uniform policy of incentive, it can reduce differentiation and minimize
conflict.
Improving communication and mutual understanding; Increasing participation and
dialogue between conflicting parties help to manage and resolve conflict.
Reducing interdependence of workers
Conflict occurs when people are dependent on each other. Therefore minimizing the level of
interdependence among individuals and departments would naturally reduce conflict.
Increasing resources to avoid scarcity of resources; Many conflicts occur due to increasing
pressure in the division of scarce resources between people and departments in organizations.
When the amount of resources increases, it can minimize conflict.
Clarifying rules and procedures; Making employees clear about their roles and
responsibilities, chances of roles ambiguity and conflicts can be minimized because unclear
rules and procedures creates problems in effective communication and decision-making.
 14

CHAPTER III

Summary and conclusion

3.1 Summary
Conflict is defined as clash between individuals arising out of a difference in thoughts
process, attitudes, understanding, interests, requirement and even sometimes perceptions.
Simply, it means that two or more people do not get along and have a problem working
together to get tasks done or two different parties have poor communication each other, or
one is unfair to another staff member. Thus, Organizational conflict occurs when there is
incompatible goals, needs, behavior, blockage in one’s goals achievement by others, poor
communication and even organizational change. The main reason of conflict in organization
is scarcity. Resources are scarce due to which individuals groups in organizations complete
for budget, space, supplies, personnel, and support services. Sexual harassment and inequity
are also another reason for organizational conflict. There are various level of conflicts in
organizations such as intrapersonal conflict, interpersonal conflict, intergroup conflict and
inter organizational conflict.
Organizational conflict is disagreements and tension that arise within a workplace setting. It
can have various effect on employees. Conflict can lead to increased stress levels which can
negatively impact employees’ mental and physical well-being. It can also lower morale and
job satisfaction, making it harder for employees to remain motivated and engaged in their
work. Conflict can disrupt teamwork and collaboration, hindering productivity and
innovation. Additionally, unresolved conflict can create toxic work environment, leading to
high turnover rates and difficulty in attracting and retaining talented employees. It’s crucial
for leaders to address and manage conflict effectively to create a positive and harmonious
work environment for their employees.
The main objective of organizational conflict is not to create conflicts intentionally, but rather
to understand and address them effectively. Conflict arise due to difference in opinions,
goals, or resources, and it can have both positive as well as negative effects on employees.
Positive effects of conflict include;
 Increased creativity and innovation; Conflict can spark different
perspectives and ideas, leading to innovation solutions and approaches.
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When people with diverse viewpoint collaborate and engage in healthy

debates, it can result in creative problem-solving and fresh insights.
 Improved Decision-making; Conflict can challenge assumptions and
encourage critical thinking. By examining different viewpoints and
considering various options, organizations can make more informed and
well-rounded decisions.
 Enhanced Team Dynamics; When conflict is managed effectively, it can
strengthen relationships and foster trust among team members. Open and
constructive discussions can promote better understanding, empathy, and
collaboration, leading to stronger teamwork.
 Personal and Professional Growth; Conflict can provide opportunities
for individuals to develop their communication, negotiation, and conflict
resolution skills. It can also encourage self-reflection and growth, helping
employees become more adaptable and resilient.
 Organizational learning; Through conflict, organizations can identify
weaknesses, gaps and areas for improvement. It can prompt organizations
to reevaluate processes, policies, and strategies, leading to continuous
learning and growth.
Beside of positive effects, there are also negative effect of organizational conflicts on
employee. It can increase stress levels, lower morale and decrease job satisfaction.
Unresolved conflicts can create a toxic working environment, increased turnover rates, and
difficulties in attracting and retaining talented employees.
To minimize the negative effects of conflict, organizations need to focus on effective conflict
resolution strategies. This include promoting communication, active listening and fostering a
culture of respect and collaboration. By addressing conflicts in a timely and constructive
manner, organization can create a positive work environment that encourage employees
engagement, productivity and overall well-being.

3.2 Conclusion
Conflict is common occurrence in organizations as it is a outcome of behavioral interaction
from people and groups working together under the same frame of organizations. Conflict is
an integral part of work life. The levels of conflicts can be classified as Intrapersonal conflict,
Interpersonal conflict, Intergroup and inter organizational conflict. Incompatibility, different
perception, blockage, scarcity etc are the major characteristics of conflict while the sources of
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conflicts are personal differences, communication problem, role incompatibility, inequity etc.
Conflict can have both constructive as well as destructive consequences. Healthy debates and
respectful disagreement can lead to growth of business and organization while negative
conflicts leads to backward performance of the organization. Similarly, It is necessary to
know about the conflict management and resolution strategies.
As conflict is natural phenomenon when two or more people work together, it is necessary to
know about conflict management issues to stop it from turning into bigger form. Workplace
conflicts can cause stress, anxiety and frustrations to the working employees there. It causes
unpleasant and unharmonious working environment. As it disturbs the employee's
performance, it significantly disturbs the productivity and performance of the organization.
So, it is better to take precautions to avoid conflict in an organizations and learn about
conflict management strategies before conflict harms both organization and employees.
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