Issues of Conflict and its Impact on Business in Construction Industry

IDENTIFY THE ISSUES OF CONFLICT AND ITS IMPACT ON THE BUSINESS IN
CONSTRUCTION INDUSTRY
Abstract
In this study it has been described about how entrepreneurs negotiate conflict and what is
the impact of conflict on business. Also, there are various strategies and methods of conflict
management has been discussed. In article it has been explained on causes of conflict in
business. Moreover, what is the impact of conflict on business performance and on interest of
stakeholders has bene discussed. It has also been discussed that negotiation benefit in resolving
conflict. In addition, it has been discussed that there is positive impact of negotiation on
business.
For research, focus groups have been taken as sample size. The results described that
entrepreneur use persuasion and integrative negotiation strategies for solving conflicts. In this,
the researcher has used the mixed methods that have included the aspects of both qualitative and
quantitative data. The data has been gathered through survey. It has been found that the main
root cause of conflict is misunderstanding. Also, the impact of conflict depend on what is the
reason behind it. Moreover, negotiation is suitable way of resolving conflict. The interest of
stakeholder impact on business in both positive or negative way. However, implication is that in
future research include how conflict impact on employee behavior and interrelationship between
productivity.
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Introduction
Background
Conflicts are common part of business. It occurs due to differences between employees and
management. Beside this, conflict can occur due to certain misunderstandings as well. There are
many issues due to conflict occur in organization (Cascio, 2018). It can be either personal or
professional. It is important for business to identify reason that why conflict has occurred.
Moreover, there is a great negative impact of conflict on business. Furthermore, the relation
between staff and management is affected. In addition, this leads to absenteeism and impact on
organizational culture. Absenteeism happens when conflicts are not resolved in time then it
becomes difficult for management to negotiate. Thus, manager resolve conflict as soon as
possible so that productivity is not hampered. In order to solve conflicts, relevant skills are
required to solve conflicts.
In this study it will be analyzed about issues of conflict and how it impacts on business. Also,
the reason behind why conflict occurs will be identified. The research focus on areas from where
business is affected (Kerzner, 2017)
Significance of study
This study will help in identifying issue due to which conflict occurs. Also, it will be
useful in finding out how conflict impact on construction business. the study will help in
identifying strategies that how conflict can be solved. They will develop and implement
strategies to resolve conflict.
Aim of the Study
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The aim is to identify the issues of conflict and its impact on business. A case study on
construction industry.
Objectives
 To investigate issues of conflict in construction business.
 To analyze the impact of conflict on business.
 To recommend strategies of negotiation that how conflicts are resolved
Research Questions
The research questions of the study have been mentioned below that are aimed to be answered in
the following study.
Q1. What are the major issues of conflicts in the industry?
Q2. What is the impact of conflict on business?
Q3. What strategies can be followed to resolve conflict?
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Literature review
Conflict Management
Conflicts occurs when there are differences between opinions of people. There are multiple
reasons of conflicts in a workplace which includes alterations of views, different beliefs,
communication gap, etc. (Caputo, Ayoko, & Amoo, 2018).
(Masuda & Kostopoulos, 2016) stated that conflict can be prevented by taking prompt actions
by addressing the issues. The negotiation that help for organization to improve conflict between
people because they are properly communicate with other to resolve the issues between them.
Conflicts can be managed and avoided by taking necessary steps. Such practice of
identifying and handling the issues fairly is called conflict management.
It is said that issues occurs if different minds are working together. People who know how to
resolve conflict are required in an organization. There are basically five styles presented by
(Caputo, Ayoko, & Amoo, 2018) to manage conflict that are: accommodating, avoiding,
collaborating, competing, and compromising.
In accommodating strategy, a manager needs to cooperate with team. In avoiding one must
simply avoid the main issue for the conflict. In this strategy manager or the employee who is
having a conflict just suppose that issues will resolve on their own. This strategy might be
effective if the employees want space, but it can also be defective as the issue can escalate if not
discussed (Maiti & Choi, 2018). Collaborative strategy refers to integrate ideas and use them
effectively to resolve an issue. The aim is to find an optimal solution for the issue. Competing
strategy is a win-lose situation in which one party loses and other wins. This can be effective in
emergency situations. In compromising either side have to let go of the issue and put aside their
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differences. This can be effective if both the sides have an equally important issue but
collaborating is still the efficient way.
Negotiation
Negotiation is a technique through which people solve conflict (Pauly, Scherer, & Palazzo,
2015). Negotiations are an essential part of the organization. In this process arguments and
disputes are avoided by compromising and mutual agreement. In any conflict or disagreement,
the entrepreneur wants the best possible outcome. Since the aim is to reach a constructive
outcome, entrepreneur must negotiate and reach a mutual agreement that is beneficial for the
company. It involves a sensible discussion on which both the parties accept the results (Zhu &
David, 2018). In this method both the parties try to persuade each other to accept their solutions
and come on the same page to find an optimal solution on which everyone agrees. The method of
negotiation involves various stages which include: preparations, clarification of goals,
discussion, negotiate to achieve a win-win result, agreement on a mutual decision and
implementation. It is the responsibility of the higher management to resolve issues of employees
working in the lower levels. (Lu, Kong, Ferrin, & Dirks, 2017) Resolving issues by negotiation
proves helpful as negotiation is a win-win proposal and employees often wants to put their
demands and claims forward.
Importance of Negotiation and Conflict Management for Business
Conflicts is a part of the working environment. Conflict arises when there are employees with
different state of minds are working together and this happens in every organization. The conflict
management is required in all organizations as conflicts can happen anywhere in any situation
even on small things like borrowing a pen and not returning it afterwards. Resolving issues is not
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an easy task, the person resolving the issue have an open mind and must not be biased.
Understanding the issue and communicating it effectively is the key to solve a conflict (Broome
B. J., 2017). Negotiations can be used to solve a conflict as negotiations include mutual
agreement on which both the parties will agree and proceeds towards a productive outcome.
Conflict management and negotiations go hand in hand as both the techniques try to solve an
issue among employees. Conflicts can arise at any level and it needs to be resolved as to avoid
any quarrel. Managers need to resolve issues by negotiation.
Impact of Negotiation and Conflict Management on the Business
Conflict can have a negative impact on the organization, especially on its productivity. Managers
need to be trained to resolve conflict as it is important for the productivity. Conflict management
have a positive impact on the organization as it increases the productivity by resolving issues of
the employees. When issues are resolved, it strengthens the relationship between the employees
and the organization (Wong, Wei, Wang, & Tjosvold, 2018) . Negotiation is also technique to
resolve issues. Negotiations are often made on a higher level and coming to a mutual decision to
have a win-win situation. Negotiation and conflict management are two important factors of the
organization which can satisfy the employees and management. Any organization which has
conflict issue needs to work on their management as those issues.
It has been stated that conflict is intra organization issue. This means it occurs between
management, employees, teams, etc. Generally, this type of conflict occurs due to mis
communication. Thus, in this managers and employees are highly involved.
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