Conflict Management in Organization

Submitted by

Sarun Rai

Roll No: 34087/22

Bachelor of Business Administration (BBA)

Third Semester

MGT233: Leadership and Organizational Behavior

Submitted to

Faculty of Management
Mahendra Multiple Campus, Dharan
Tribhuvan University

July 2024
 Acknowledgement

First of all, I would like to express my special thanks of gratitude to our teacher, Mr. Khagendra
Niroula who gave us this golden opportunity to do this term paper on the title “Conflict
management in organization”, which also helped me on doing a lot of research on the topic
fostering our practical knowledge. Their skills, knowledge and guidance has been very helpful in
handling the doubts during the project.

Secondly, I would like to express my deep gratefulness to the family members who have been
always motivating, inspiring and facilitating me to do well. Also I would like to express my thanks
to all those scholars who published the research papers, facts and data on the internet which made
much easier for me in research work.

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 Recommendation

This seminar paper has been submitted by Sarun Rai on the title "Conflict management in
organization”. As per the guidelines set by the Faculty of Management, Office of the Dean,
Tribhuvan University. I have supervised the preparation of this paper, ensuring that it follows the
required procedure and format. This paper is being submitted as a partial requirement for the
degree of BBA third semester, specifically for the course Leadership and organizational behavior.
I highly recommend this term paper for final evaluation.

Viva voice committee

…………………………….

External Examiner

…………………………………….

External Examiner

………………………………………
Lecturer

Khagendra Niroula

July, 2024

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 Table of Content

Acknowledgement………………………………………………………………………...II
Recommendation………………………………………………………………………….III
Abstract……………………………………………………………………………………V
Chapter I: Introduction
1.1 Background of the Study………………………………………………………....1
1.2 Statement of the Problem…………………………………………………………2
1.3 Objectives of the Study…………………………………………………………...3
1.4 Methodology……………………………………………………………………...3
1.4.1 Sources of Information……………………………………………………...3
1.5 Review of Literature……………………………………………………………...3
1.5.1 Conceptual Review……………………………………………………….....4
1.5.2 Emperical Review…………………………………………………………...4
1.6 Limitation of the study…………………………………………………………....5
Chapter II: Analysis and Discussion
2.1 Types of Conflict……………………………………………………………….6
2.2 Causes of Conflict………………………………………………………………8
2.3 Conflict Management Techniques……………………………………………...9
Chapter III: Summary and Conclusion
3.1 Summary……………………………………………………………………….11
3.2 Conclusion……………………………………………………………………...11
References……………………………………………………………………………….12
 Abstract

Conflict refers to the condition of misunderstanding or disagreement that is caused by the

perceived or actual opposition in the needs, interests, and values among people who work
together. The conflicts cannot be avoided, but it is possible to manage them in a way that we
recognize them on time. It is necessary to continuously track the organizational signals which
point to their existence. This paper explores the concept of conflict, the importance of addressing
causes of conflict, effective management, and the relevance of positive approaches to conflict
resolution. This study have collected data from secondary resources such as reports, academic
journals, government publication. The data sources are based on their relevance and credibility in
providing insights into conflict management in organizations. This study aims to provide
individuals and leaders with the knowledge and resources they need to view disputes as
opportunities for learning and development, transforming them into catalysts for organizational
growth and innovation.

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 Chapter I: Introduction

1.1 Background of the study

Conflict is the misunderstanding about the prevailing state of practice. It is a natural
phenomenon. Conflict is a state of opposition, disagreement. Conflict is a state of opposition
between persons or ideas or interests or hostile encounter between two or more people.
Conflict arises when a person thinks that the ongoing activities could take place in other ways. In
an organization, conflict can be experienced because of incompatibility of goals, differences in
interpretations, disagreements in decision or the expected behavior.
Conflict refers to some form of friction, disagreement, or discord arising between
individuals or within a group when the beliefs or actions of one or more members of the group
are either resisted by or unacceptable to one or more members of another group. Conflict pertains
to the opposing ideas and actions of different entities, thus resulting in an antagonistic state
(Tschannen-Moran,2001). Conflict is a process that begins when one party perceives that another
party has negatively affected, or is about to negatively affect, something that first party cares about
(R.S. Dwivedi, 2002).
Conflict is a core component of human contact, and its manifestation is more noticeable in
the complex environment of organizational dynamics (Jones, 2019). Conflicts are unavoidable
when organizations bring together people from different origins, interests, and perspectives
(Robbins et al., 2020). However, the key to a flourishing and wealthy organization is not to avoid
conflicts totally, but rather to manage and resolve them effectively (Thomas, 2018).
Effective conflict management is a strategic need for organizations seeking to nurture a
healthy work environment, boost productivity, and support long-term success (Blake & Mouton,
2019). This complex process needs a thorough understanding of the nature of disputes, the
identification of their core causes, and the adoption of constructive conflict resolution solutions
(Folger & Poole, 2021). Conflict management involves several aspects within an organization,
such as interpersonal dynamics, structural frameworks, and cultural concerns (Rahim, 2017).
In this exploration of conflict management in organizations, we will delve into the
importance of perceiving conflicts as opportunities for growth and innovation rather than as
disruptive forces. Organizations may transform conflicts into catalysts for good change by
understanding the various types of conflicts that might arise, recognizing the circumstances that
contribute to their emergence, and applying effective conflict resolution procedures.
As we navigate the complexities of conflict management in organizations, it becomes clear
that fostering a culture that values diversity of thought, encourages open dialogue, and provides
dispute resolution mechanisms not only reduces the negative effects of conflicts but also
encourages the organization towards greater resilience and success. This study intends to provide
individuals and leaders with the knowledge and resources they need to negotiate disputes in a
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proactive manner, converting them into opportunities for learning, creativity, and organizational
growth.

1.2 Statement of the Problem

Organizations, regardless of size or industry, are dynamic entities that bring together
varied individuals with diverse opinions, goals, and working styles. While diversity can be a
source of creativity and innovation, it also inevitably leads to conflict. Effective conflict resolution
is critical for establishing a healthy workplace culture and guaranteeing long-term productivity.
The problem at hand revolves around the increasing frequency and intensity of conflicts
within our organization, resulting in a negative impact on employee morale, team cohesion, and
overall performance. Despite the implementation of existing conflict resolution mechanisms, it is
evident that there are persistent barriers hindering the achievement of a harmonious work
environment.
One significant issue is the lack of a comprehensive understanding of the root causes of
conflicts. Many conflicts are merely addressed on a surface level without delving into the
underlying issues, leading to temporary resolutions that fail to prevent future disputes.
Additionally, the absence of a standardized conflict management framework has resulted in
inconsistent approaches, leaving room for miscommunication and escalating tensions.
Another challenge lies in the inadequate communication channels for employees to
express their concerns and grievances. The existing channels may not be perceived as transparent
or confidential, inhibiting individuals from voicing their issues openly. This lack of open
communication channels further causes conflicts as problems go unaddressed until they reach a
critical point.
Furthermore, the organizational culture may unintentionally promote unhealthy
competition or lack mechanisms to encourage collaboration. This can create an environment
where conflicts are seen as a natural consequence of individual ambitions rather than opportunities
for growth and learning.
By acknowledging and addressing these barriers, the organization can pave the way for a
more resilient, cooperative, and productive work environment where conflicts are not merely
resolved but are also transformed into opportunities for learning, growth, and innovation.
The present study tries to answer the following questions:
1. What are the primary factors contributing to conflicts within the organization?
2. What specific changes or improvements would you recommend enhancing the
organization's approach to conflict management?

1.3 Objectives of the study

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The purpose of this research content is to thoroughly investigate and enhance conflict
management in organizational contexts. It tries to uncover the underlying causes of conflicts,
assess the efficiency of existing conflict resolution procedures, and examine communication
routes for voicing concerns. Furthermore, the study intends to analyze the impact of corporate
culture and leadership on conflict dynamics, specifically their roles in increasing or reducing
conflicts. Based on the findings, the research will investigate the relationship between disputes and
employee satisfaction, investigate the need for training and awareness programs, and offer specific
improvements and best practices. Finally, the study hopes to make a difference both academically
and practically by providing insights that businesses can utilize to improve their conflict
management tactics, encouraging a more collaborative and productive work environment.
Here are the specific objectives of this study:
1. To identify the primary factors contributing to conflicts within the organization.
2. To examine the specific changes or improvements that helps to enhance the
organization's approach to conflict management.

1.4 Methodology
This research has been conducted over the period of four weeks. The first two weeks were dedicated
to collecting the relevant secondary data sources, and the remaining two weeks were used for data
analysis and report writing.

1.4.1 Sources of information

1. Secondary Data: This research has used a qualitative research approach, utilizing secondary
data sources such as reports, academic journals, and government publications. This approach has
allowed for in-depth exploration of conflict management in organizations.
Overall, this research methodology outlines a qualitative approach to exploring conflict
management strategies in organization, using secondary data sources.

1.5 Review of Literature

Organizational conflict, an intrinsic aspect of workplace dynamics, has received much
attention due to its pervasiveness and profound impact on organizational performance. Scholars
have extensively researched the causes, expressions, and repercussions of conflict, emphasizing
its dual character. This literature study seeks to provide a thorough knowledge, beginning with the
main root causes of organizational conflict and moving to emerging viewpoints on effective
conflict resolution.

1.5.1 Conceptual Review

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Conflict management in organizations is a critical aspect of maintaining a healthy work

environment and ensuring productivity, as extensively discussed by scholars. Conflicts arise from
various sources, such as differences in values, goals, needs, and expectations, and can be
categorized into interpersonal, intragroup, and intergroup conflicts (Robbins & Judge, 2019;
Thomas, 1992). Theories such as the Thomas-Kilmann Conflict Mode Instrument (TKI) and the
Interest-Based Relational (IBR) Approach offer frameworks for understanding and managing
conflicts. The TKI model identifies five conflict-handling styles—competing, collaborating,
compromising, avoiding, and accommodating—each with its strengths and weaknesses
depending on the situation (Thomas & Kilmann, 1974). The IBR approach emphasizes
maintaining positive relationships while addressing the underlying interests of conflicting parties
(Fisher & Ury, 1981). Effective conflict management strategies, such as open communication,
negotiation, mediation, collaborative problem-solving, and conflict management training, aim to
address the root causes of conflicts and find mutually acceptable solutions (Luthans, 2011).
Scholars emphasize that effective conflict management can lead to improved
relationships, enhanced productivity, innovation, and higher employee satisfaction (De Dreu &
Weingart, 2003; Jehn & Bendersky, 2003). However, managers face challenges such as resistance
to addressing conflicts, biases, cultural differences, and power dynamics (Morrill, 1995; Tjosvold,
2008). Resistance to conflict resolution often stems from fear of confrontation or lack of skills,
while biases and perceptions can hinder objective conflict resolution. Cultural differences bring
varied norms and communication styles, complicating conflict resolution, and power imbalances
can make fair resolutions difficult (Hofstede, 1984). Despite these challenges, adopting strategic
and thoughtful conflict management approaches, as suggested by scholars, can foster a positive
work environment. By understanding the nature of conflicts and applying appropriate theories and
strategies, managers can resolve disputes constructively, enhancing overall organizational
performance and employee well-being (Rahim, 2002; Pruitt & Rubin, 1986).

1.5.2 Emperical Review

Empirical research on conflict management in organizations provides valuable insights
into the origins, management strategies, and outcomes of workplace conflicts. Studies have
identified that conflicts often arise from differences in goals, values, and interests among
employees. Jehn (1995) categorizes these conflicts into task conflict (related to work content and
goals), relationship conflict (personal incompatibilities), and process conflict (disagreements on
task processes). Empirical findings indicate that while task conflict can sometimes enhance team
performance by fostering critical thinking, relationship conflict generally negatively impacts team
dynamics and performance (De Dreu & Weingart, 2003). Furthermore, the effectiveness of
various conflict management styles has been examined, with collaborative and compromising
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styles generally associated with positive outcomes such as higher job satisfaction and improved
team performance (Rahim, 2002).
Mediation and third-party interventions have also been empirically supported as effective
conflict resolution methods. Wall and Dunne (2012) found that mediation helps conflicting parties
reach satisfactory agreements and improve their relationships, contributing to a more
collaborative organizational culture. Cultural differences play a significant role in conflict
management practices, with studies indicating that cultural dimensions like individualism versus
collectivism and power distance influence conflict resolution approaches (Hofstede, 1984).
Additionally, the rise of remote work has introduced unique conflicts, necessitating clear
communication protocols and collaboration tools to manage conflicts effectively in virtual teams
(Gilson et al., 2015). Training and development programs in conflict management have been
shown to enhance employees' and managers' skills, leading to more constructive conflict
resolution and a better organizational climate (Ting-Toomey & Oetzel, 2001). These empirical
insights highlight the importance of adopting evidence-based strategies to manage conflicts and
improve organizational performance and employee satisfaction.

1.5 Limitations of the Study

The present study has following limitations:

1. Time Constraints: The study is conducted within a specific timeframe, and organizational
dynamics and conflict management practices may evolve over time. The study's ability to capture
long-term trends and changes in conflict dynamics may be limited by its temporal limits.

2. Limited Sample Size: The research may be constrained by the size of the sample population,
potentially limiting the representation of diverse perspectives within the organization. A broader
and more diversified sample might provide a more complete picture of conflict dynamics.

3 .Dynamic Organizational Environment: Organizational environments are inherently dynamic,

and external factors such as economic conditions or industry trends may impact conflict
management. The study may not account for all external influences, potentially affecting the
comprehensiveness of the findings.
 Chapter II: Analysis and Discussion

2.1 Types of Conflict

1. Interpersonal Conflict: Interpersonal conflicts occur between individuals due to differing
opinions, values, perceptions, or personal goals. These conflicts can arise in various settings,
including families, workplaces, friendships, or social groups. They might stem from
misunderstandings, communication breakdowns, personality clashes, or competition for resources
or attention.
2. Intrapersonal Conflict: Intrapersonal conflicts are internal struggles within an individual. These
conflicts often involve decision-making dilemmas, moral or ethical quandaries, or conflicting
emotions or desires. For example, someone might face a conflict between their personal values
and societal expectations.
3. Intergroup Conflict: Intergroup conflicts emerge between different groups, such as ethnicities,
religions, nations, or social classes. These conflicts are often rooted in historical, cultural, or
ideological differences, leading to tension, competition, or hostility between groups. Issues related
to power, resources, territory, or identity can fuel intergroup conflicts.
4. Intragroup Conflict: Intragroup conflicts occur within a group or team. They might arise due to
disagreements about goals, roles, resources, leadership styles, or individual personalities within
the group. These conflicts can impact the group's cohesion, productivity, and overall effectiveness.
5. Inter-organizational Conflict: Inter-organizational conflicts arise between different
organizations, such as businesses, governments, or non-profit entities. These conflicts might
involve disputes over market share, resources, contractual agreements, differing goals, or
conflicting strategies. Competition and incompatible interests often fuel inter-organizational
conflicts.
6. Intra-organizational Conflict: Intra-organizational conflicts occur within an organization. They
might result from power struggles, clashes between departments, disagreements over policies or
procedures, conflicting priorities, or issues related to organizational change. Intra-organizational
conflicts can impact productivity, employee morale, and overall organizational effectiveness.
7. Structural Conflict: Structural conflicts are rooted in systemic inequalities, social injustices, or
institutionalized biases within societies, institutions, or systems. These conflicts might arise due
to disparities in wealth, access to resources, discrimination, or power imbalances. Resolving
structural conflicts often involves addressing deep-rooted societal or systemic issues.

Furthermore, on the basis of outcomes, conflict can be of:

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Functional conflict:
Functional conflict refers to disagreements or clashes of ideas that contribute positively to
the overall goals and objectives of a group or organization. It can lead to improved decision-
making, creativity, innovation, and better problem-solving. When handled constructively,
functional conflict can foster growth and development within a team or organization. It is
essentially a positive conflict.
Dysfunctional conflict:
Conflict that hinders an organization growth and prevents the organization form achieving
its goal is called dysfunctional conflict. It is more concentrated on personal issues and concern of
the group member. People are more concerned with protecting themselves rather improving
functional performance. Because of antagonistic feeling between the members, it impairs the
performance of the organization. It is a destructive conflict or bad conflict.
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2.2 Causes of Conflict

i) Incompatible goals
In an organization there are different groups and each group has different goals. When
each group tries to impose own goals neglecting other’s goal, conflict will occur.
ii) Different values and beliefs
Individual's values and beliefs are largely affected by their educational background, work
experiences and training. For example, research and development department tries to develop
sophisticated product with comparatively high cost, but marketing department prefer simple and
cheap design. Such difference in belief stimulate conflict in the organization.
iii) Limited resources
Resources can be man money material and information which are always important for
the organization and there is scarcity of resources. When individuals and groups in an organization
compete to get adequate resources, but either department gets more resource than others that will
create conflict between groups.
iv) Task interdependence
Most of the tasks in an organization are dependent between each other. Therefore, inability
of one department to accomplishment assigned task affects the ability of another department. For
example, if the production department does not produce product in right time that will hamper the
ability of selling department and if the selling department can't sell products in time that will
hamper finance department thus conflict arias between departments.
v) Communication
It is another vital cause of conflict. Communication must be free, fair and up-to date. The
words used in the communication process should be clear to maintain harmony between
individuals, groups and organizations. The distorted communication using jargons may create
misunderstanding and eventually lead to conflict.
vi) Ambiguous rules (unclear rules).
Organization is guided by different rules, policies and procedures. Rules clarify the role
and responsibility of individuals in the organization that must be clear and easy to understand. If
the rules are unclear that will create confusion and misunderstanding between members of
organization.
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2.3 Conflict Management Techniques.

As conflict ascends from varied sources and it is inevitable in organizational setting, it is
equally important to manage the conflict in time. This necessitates application of appropriate
technique to manage it effectively. According to R.S. Dwivedi, "The conflict management
techniques are as follows.

i) Avoidance,
Conflict can be reduced by avoiding all together where conflict is suppressed from coming
to open. Because of the suppression either one party withdraws/disguises the inconsistency that
other party wins or both the parties are agreed to withdraw their inconsistencies.
ii) Smoothing.
In this technique, differences between parties are disguised and similarities are highlighted
due to which conflicting parties may realize that they are not very much apart from each other. It
promotes unity between conflicting parties and likely to work towards a commonly held goals.
However, it provides only temporary solution.
iii) Compromise.
It is an old and commonly used technique that benefits to all parties. It is based on give
and take principle where both competing parties are ready to give up something to the other in
exchange for the desired outcome. It is suitable only when conflicting parties are nearly of equal
strength.
iv) Authoritative command.
It consists of forcing the conflicting parties to accept a solution devised by a higher-level
manager. In this method, using positional power and authority a senior manager makes decision
and communicates to all members of the concerned parties and impose the decision. Once the
decision is made, all conflicting parties withdraw their disagreements and follow the decision.
v) Problem solving.
Problem solving is an attempt to find a solution that reconciles or integrates the needs of
both parties who work together to define the problem and identify mutually satisfactory solution.
Conflicting parties are brought together and have face to face confrontation, express their feelings,
differences and concerns freely and identify their common interests Both parties adequately
analyze the problem and conflict is solved.
vi) Super-ordinate goal.
A goal which is common and acceptable to all is called super ordinate goal. It binds all
conflicting group together and non-conforming minority can be ignored, or remains quiet and
withdraws on its own thus conflict is resolved.
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vii) Reducing differentiation.

Organization may have different policies and practices regarding the salary incentives,
facilities and other polices for permanent and non-permanent workers male and female worker,
etc. this will also cause conflict in organization. In such case. When a company adopts uniform
policies and practices that finally manage the conflict.
viii) Improving communication and understanding.
Faulty and distorted communication is also main root of conflict. When quality of
communication is improved by which everyone can understand the problem of other persons or
work department, which will lead mutual understanding and conflict can be minimized to some
extent.
ix) Reducing task interdependences.
When people departments are interdependent between each other, inability of one
department affects the performance of other also creates conflict. In such situation if the degree
of interdependency between departments is reduced, that helps to manage the conflict.
x) Increased resources.
As resources are scarce or limited and competition between and among the people and
department increases emerge the conflict. When the sources of resources are increased or
resources are adequately managed, each department and person gets required resources. It can
minimize the conflict.
xi) Clarifying rules and procedures
Conflicts are also caused by unclear rules, procedures and manuals, etc. When rules and
procedures are made clear that eliminate organizational ambiguities, reduces, the chance of
encroachment and minimizes the conflict.
 Chapter III: Summary and Conclusion

3.1 Summary
The research begins by establishing conflict as a natural phenomenon that is unavoidable
in human relationships, especially in the complex environment of organizations. It distinguishes
between several forms of conflicts, ranging from interpersonal to inter-organizational, and
highlights the factors and processes at work in each. Conflicts are thoroughly examined, including
disagreements in goals, resource allocation, communication failures, leadership styles, and other
factors.
Moving on to conflict resolution, the study elaborates on a wide range of options.
Communication strategies, negotiation techniques, collaborative problem-solving, conflict
resolution training, structural modifications, leadership positions, technological interventions,
time management, legal procedures, and cultural sensitivity and diversity considerations are all
included.
Furthermore, the study draws on scholarly ideas and studies, emphasizing the importance
of handling conflicts successfully inside organizations. It emphasizes the dual nature of conflict,
demonstrating both its potential for constructive change when properly managed and the negative
effects of unresolved conflicts on organizational culture, productivity, and overall success.

3.2 Conclusion
In conclusion, the study highlights the inevitability of conflict in organizational contexts
while emphasizing the crucial need of resolving conflicts proactively and constructively. It
emphasizes conflict not only as a source of disruption, but also as a source of growth, innovation,
and good transformation inside an organization. Effective conflict resolution is portrayed as a
strategic essential for creating a positive work atmosphere, increasing productivity, and assuring
long-term success.
The study underlines the multiple nature of conflicts and the need for a comprehensive
approach to conflict resolution that includes a variety of tactics, while understanding the
complexity and diversity of disputes that may develop. It emphasizes the critical role of
leadership, communication, training, structural changes, and diversity in resolving conflicts and
leading organizations towards higher resilience and success.
Finally, this study aims to provide individuals and leaders with the knowledge and
resources they need to view disputes as opportunities for learning and development, transforming
them into catalysts for organizational growth and innovation.
 References

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Production Through People. Gulf Publishing Company.

Folger, J. P., & Poole, M. S. (2021). Working Through Conflict: Strategies for Relationships,
Groups, and Organizations. Routledge.

Hotepo M., et al(2013). "Workplace Conflict: Causes, Typologies, and Management Strategies."

Jones, G. R. (2019). Organizational Theory, Design, and Change. Pearson.

Robbins, S. P., Coulter, M., & DeCenzo, D. A. (2020). Fundamentals of Management. Pearson.

R.S. Dwivedi (2002).

Thomas, K. W. (2018). Intra-Organizational Conflict. The Journal of Abnormal and Social

Psychology, 48(3), 466-474.

Tschannen-Moran, M. (2001). "Conflict Management in Organizational Settings: Understanding

Complexity and Dynamic.