Conflict Management in Business: Causes, Models, and Strategies Report

This report examines conflict management within business organizations, highlighting its significance as a human resource function. It defines conflict, explores its positive and negative impacts, and identifies common causes such as organizational change, personality clashes, and lack of trust. The report details models used to manage conflicts, including the Kenneth Thomas model with its styles of avoiding, accommodating, competing, compromising, and collaborating. Additionally, it covers proactive approaches for conflict prevention, such as participative decision-making, collaboration, and team building. The report concludes that effective conflict management is crucial for organizational success and profitability, and highlights the importance of using various strategies to solve conflicts.

MANAGEMENT FOR
FINANCE
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Role of conflict within the organization......................................................................................3
Cause of conflicts........................................................................................................................3
Models use by business organization to managed conflicts........................................................3
CONCLUSION................................................................................................................................3
REFRENCES...................................................................................................................................3
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INTRODUCTION
Conflict management is a part of human resource functions in business organizations.
Conflict is arising due to changes of perception and presents of mind of personals. It can be
defined as a issue which may be arise at any stage of business hierarchy. Thus it is essential
for formulate policies regarding conflict management. This report contains the meaning, of
conflicts effect of conflict within h organization. Main causes of conflicts arise in entity and
strategies and models use by managers to remove the issue and manage the conflicts within
the organization.
TASK 1
Role of conflict within the organization
Conflict: It is a psychological state of mind peoples are in a state of dilemma whether to
don or not to do things is a stress conflict. Conflict may emerge between different
organizations or within the organization or between organizations. In organization conflicts
may imply differences of opinion with persons or grope of persons and sometimes they
manage to show down and slowdown other and plan strategies for that. In other words
conflict may be defined as an interpersonal process that occurs whenever the actions of one
person interfere with the actions of another. In organization conflicts may, manifest itself
in a number of different modes (Burke Hsiang and Miguel, 2015). Such conflicts may be
within the organization itself or between various organizations which is known as intra
organization conflicts. Mainly the issue of conflicts arise within the business organization.
The main reason of this is the conflicts are inherent in the concept of line and staff. It is not
an easy task to divide and distribute expertise authority and roles in equal quantities
between line generalist and staff specialist. The concept authorities the spilling of various
functions into two categories. Conflicts change the entire behaviour of organization and it
positively an negatively impact on the business organization It play essential role in
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business organization but it is the main causes of company’s unable to achieve their goals.
Following are the positive effect of conflict within the organization
Act as motivating factor: Motivates individuals to do better and hard work Personals
abilities come to the forefront in conflict situations.
Act as need satisfier: Satisfy certain psychological needs like dominance, aggression,
esteem and ego and their by provides an opportunity for constructive use.
Provide creative and innovative ideas: It provides creative and innovative ideas.
Introducing variety: Conflicts help in add variety to one’s organization life; otherwise
work life would be dull and boring (Karatepe and Karadas, 2014).
Create understanding: Facilitating an understanding of the problem, people, interrelation
between people better coordination among individuals and departments in addition to
strengthening intra group relation.
Conflicts affect in positive way when it encourage them new looks at old conditions the
clarification of points of view and the development of human capabilities to handle
interpersonal differences.
Negative impact on conflicts in organization:
Insubordination: An organization with weak management development problems with conflicts
that continue for the long term employees see that management is unable to resolve conflicts
within the company and respect for their authority of management can be eroded.
Drop in productivity: Allowing a conflict to continue means that employees attention becomes
more focused on the conflict and not on productively. As a problem is allowed to linger
employees will attach more importance to solving the issue in their favour rather than attending
to worker productivity.
Lack of direction: Conflicts can sometimes aeries when management department unable to
communicate the direction of the company to employees.
Fragmentation: Conflicts creates rival factions. Sometimes those factions are individuals,
sometimes they are groups. Unresolved conflicts can create tension between groups that may
normal need to work together,
Lack of new ideas: Groups in conflicts tend not to collaborate on new ideas. When conflicts go
unresolved it can be progress within the company difficult.
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Assets quality of work: If a conflicts is allowed to go on long enough the parties involved may
being to shoe more interest in the conflict than in doing their jobs properly. Product quality can
suffers and in some cases the safety of the employees can be in jeopardy as well.
Misunderstanding: Conflicts may causes of misunderstanding due to issue of conflicts
relationship between employers and managers may broke and it will directly affect on
organization work and ally performance.
Cause of conflicts
The main causes and source of conflicts are defined below:
Organizational change: People holds different views over the direction to go the route to take
and their likely success the resource to be used and the probable outcomes With their pack of
technology political and social change increasing and the market place hurting toward a global
economy organization changes will be present .
Personality clash: It is also one of the most important causes of areas of conflicts. Individuals
has differ perception, thoughts thus there may be chances that their point of view regarding
decision taken by management will not match and it will also areas conflict within the
organization(Madden and McQuinn, 2014.).
Threat to status: The status or the social rank of a person in a group is very important to many
individuals. When o no’s status as threatened face saving becomes a powerful deriving force as a
person struggle to maintain a desired image.
Contracting perception: People perceive things differently as a result of their proper experience
and expectations .Since their perception are very real to them , sometime they fail to realise
others that others may hold contrasting perception of the same object or event.
Lack of trust: It is also main issue that it take times to build trust but can take a minute destroy
trust, When someone gas a real or perceived reason not to trust another the potential for conflicts
rises.
Job related conflicts: This is largely relate din cases of experts and professional staff to
frustration in terms of the ability to use expertise to the full , the lack of scope for professional
development and advancement. Conflicts also aeries when employers not get prominent not
attain the job position they want for their organization.
Interdepartmental wrangles: When on groups feels that another is treading in an area that is
legimatiy theirs or when the group another one this going recognizant for efforts an success that
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are legatee theirs this is also the reason of conflicts arise between tsm menets and management
department for partially.
Models use by business organization to managed conflicts
There will be many tools and methods are developed an use foronflicts management within the
organization. Most of managers use Kenneth Thomas model to solve conflict issue in their
organization. According to the model there will be basis reactions that can thought of as styles,
strategies or intention for dealing with conflicts. In h diagram approaches to managing conflict
are a function of both how assertive one i in trying to satisfy one’s own or one ‘s gripou concern
and also how cooperative one is in trying to statisy those of the other party or group.
Avoiding: The avoiding style is characteristic by low assertiveness of one’s own interest and low
cooperation with the other party. Avoidance can provide some short term stress reduction from
the rifles of conflict(Li and et.al. 2016).
Accommodation: This style is low in assertiveness and high on cooperativeness. Parties are
accommodative cooperative and prepared to make reasonable sacrifices for resolving the
conflict. The emphasis is one the common interest of the conflicting group and the de emphasis
on their differences. It will help in maintain good relationship and recover personal acceptance.
Competing: A competing style tends to maximize assertiveness for one’s own position and
minimize cooperative response. In doing so one tends to frae the conflicts in strict win lose
terms. Full priority is given to one’s own goals, facts or procedures. The competing style holders
promise when someone has a lot of power and people don’t know how to interact with other pry
in future.
Compromising: It is a combine’s immediate level of assertiveness and cooperating. Thus it is
itself a compromise between pure competition and pure accommodation. Compromise is not so
useful for resolving conflicts that stem from power asymmetry. Because the weaker party may
have little t o offer the stronger party. It is useful as everybody is ready to solve the conflict issue
and laying the foundation of solving long term problems.
Collaborating: In the collaborating mode both assertive and cooperation are mixed in the hope
that an integrative agreement accurse that fully satisfy the interest of both parties. It probably
works best when the conflict is not intense and when each party has information tha is useful o
other . Effective collaboration can take time and practice to develop it frequently enhance
productivity and achievement . Collaboration also helps to manage conflicts within the
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organization. This sort of encounter is less stressful and both parties will probably feel they have
been fairly treated.
Besides the Kenneth Thomas approach, proactive approach s also useful for dealing the cases in
advance. Prevention means anticipating potential causes of conflict and taking quick action to
turn them into positive force for better understanding and cooperation. Following are the
strategies business organization uses as prevention of conflicts:
Participative decision making: Manager of business organization use this strategy whenever
problem areas they involve every team member in problem solving decision Such participating
and the resultant sense of shared responsibility for a solution help prevent conflicts. Respective
groups from various levels of an organization can be formed for dealing with grievances work
norms and deviations from them, procedure for employee’s assessment perform criteria. before
the issue arise in the guise of problems in order to prevent inhumanly conflict(Andersen, and
et.al. 2015).
Collaboration and team building: An emphasis o collaboration and team building also helps to
change the potential cause of conflicts into positive co operation factors. The main emphases of
collaboration are identifying common goals, recognizing each other strengths and panning
strategies for achieving these goals by working together. Theses strategies help business entity to
eliminate conflict at various level in the organization. These strategies help not only eliminating
the conflict but also boost relationship between the organizations members.
Business organization also use be positive policy in which manager motivate and provides
training to their employers to hot to stay positive in different situations and get motivate, be
patients and north arise conflicts within the workplace.
CONCLUSION
From the above analysis it has been concluded that conflict is a process which begins when
one party perceives that another has frustrated or is about to frustrated, it is the common
issue within the e workplace which may be the reason of heavy loss in the organization.
Conflict positively and negatively affect the organization it briefs ideas and enhance the
capably of personals in conflicts situation on the side it may be the reason of
misundertatindsmbig fights, detriment in quality and lack of trust among members. He main
causes of arise of conflicts is when organizations change their policy, personals perceptions
does not match and individual not got promoted at the piston they what. Manager use
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various policies to manage the conflicts as it is the serious issue and it directly effect
profitably level of organization, by using Kenneth Thomas model strategies and prevention
strategies manager’s unable to solve the issue aeries due to conflicts.
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REFRENCES
Books and journals
Burke, M., Hsiang, S. M. and Miguel, E., 2015. Climate and conflict. Annu. Rev. Econ., 7(1),
pp.577-617.
Karatepe, O. M. and Karadas, G., 2014. The effect of psychological capital on conflicts in the
work–family interface, turnover and absence intentions. International Journal of
Hospitality Management, 43, pp.132-143.
Madden, F. and McQuinn, B., 2014. Conservation’s blind spot: The case for conflict
transformation in wildlife conservation. Biological Conservation, 178, pp.97-106.
Li, Q., Lai, K. L., Chan, P.S., Leung, S.C., Li, H .Y., Fang, Y., To, K.K ., Choi, C .H. J., Gao, Q.
Y. and Lee, T.W., 2016. Micellar delivery of dasatinib for the inhibition of pathologic
cellular processes of the retinal pigment epithelium. Colloids and surfaces B:
biointerfaces, 140, pp.278-286.
Andersen, L. L., Poulsen, O. M., Sundstrup, E., Brandt, M., Jay, K., Clausen, T., Borg, V.,
Persson, R. and Jakobsen, M.D., 2015. Effect of physical exercise on workplace social
capital: cluster randomized controlled trial. Scandinavian journal of public health, 43(8),
pp.810-818.
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