Everything you need to know about organizational conflict.

Conflict can be defined as a

difference that exists between needs, values, and interests of individuals or groups in an
organization.

Conflict can be constructive, and it can be destructive. The distinction is based on how the
conflict is managed. Conflict cannot always be avoided. Many positive outcomes can result from
working through conflict. Properly managed conflict can help in bringing constructive change.

Conflict is any situation in which two or more parties feel themselves in opposition. It is an
interpersonal process that arises from disagreements over the goals or the methods to
accomplish those goals.

Therefore, conflict may be defined as an expressed struggle between at least two interdependent
parties who perceive incompatible goals, scarce resources, and interference from the other party
in achieving their goals.

According to S. R. Robbins defines conflict as “a process in which an effort is purposefully made

by a person or unit to block another that result in frustrating the attainment of others goals or
furthering of his or her interests.”

According to Morton Deutsch, conflict as a “situation whenever incompatible activities occur.”

James D. Thompson defines, conflict as organizational conflict is that behaviour by the
organizational members which is expanded in opposition to other members.

It is observed from the above definitions that if the individual employee, managers, department
heads, top managerial people, trade union leaders opposes certain issue the smooth running of
business organization gets obstructed and moreover it disturbs the routine work of the
organization.

It is called as a conflict situation. Strike, lockout, slow tactics, high rate of absenteeism, labour
turn over etc. are the example of conflicting situations in an organization. It is necessary to
handle these situations carefully and tactfully.

Conflict can be defined as a difference that exists between needs, values, and interests of
individuals or groups in an organization.
According to Chung and Meggison, “Conflict is the struggle between incompatible or opposing
needs, wishes, ideas, interests, or people. According to them conflict arises when individuals or
groups encounter goals that both parties cannot attain satisfactorily”.

According to Pondy, “Conflict has been defined as the condition of objective

incompatibility between values and goals; as the behavior of deliberately interfering with
another’s goal achievement; and as emotionally in terms of hostility. Descriptive theorists
have explained conflict behavior in terms of objective conflict of interest, personal styles,
reactions to threats, and cognitive distortions.”

People at work vary in their ideas, skills and thinking. These differences may lead to individual
and group differences. Such differences are the basis of organizational conflict. Conflict is
inevitable in an organisation. In any business or personal relationship of any depth, conflict will
occur at times. The seriousness of the conflict is dependent on the nature of conflict. Not all
workplace conflicts are bad.

Conflict has three elements. The first element of conflict is the existence of a struggle of
some type. Secondly, the involved parties must have, or think they have, incompatible
goals. Lastly, there must be some degree of interdependence between the people who are
involved.

Conflict can be constructive, and it can be destructive. The distinction is based on how the
conflict is managed. Conflict cannot always be avoided. Many positive outcomes can result from
working through conflict. Properly managed conflict can help in bringing constructive change.

Organizations have people with different interests, perceptions, personalities, attitudes, values
and views. This leads to difference of opinion in the organization. Disagreement is the basis of
conflicts in the organisation. This happens mainly because of the conflicting interests of the
individuals or groups.

Conflict is any situation in which two or more parties feel themselves in opposition. It is an
interpersonal process that arises from disagreements over the goals or the methods to accomplish
those goals. Therefore, conflict may be defined as an expressed struggle between at least two
interdependent parties who perceive incompatible goals, scarce resources, and interference from
the other party in achieving their goals.
Important features of conflicts

1. It Helps in Analytical Thinking:

Conflict may induce challenge to views, opinions, rules, policies, goals, plans etc., which would
require critical analysis in order to justify these as they are or make changes as required. As H.
M. Carlisle has put it – “No situation is more detrimental to an organisation than letting poor
decisions go unchallenged”.

2. It Helps in Increased Cohesion:

Conflict between different organisations develops loyalty and cohesion within an organisation
and a greater sense of group identify in order to compete with outsiders. It helps in dedication
and commitement to organizational goals.

3. Conflict Promotes Competition and Hence it Results in Increased Efforts:

It has been observed that some individuals are highly motivated by conflict and severe
competition. For instance, a professor who has been denied promotion due to conflict within the
department may work harder to prove that he is more capable and deserves a promotion. Thus, it
may lead to high level of effort and output.

4. It Serves as a Foundation for Organisational Development:

Conflict with the status quo is a pre-requisite to change. Creative and innovative people are
always looking for grounds to challenge the status quo. These challenges lead to search for
alternatives to existing patterns which leads to organizational change and development.

5. It Reduces Tensions:
Some disagreements if unexpressed can lead to imaginative distortions of truth, sense of
frustration and tension, high mental exaggerations and biased opinions resulting in fear and
distrust.

The types of organizational conflict are discussed as below:

Type # 1. Task Conflict:

Task conflict relates to the content and goal of the work. According to Graves, task conflict
arises among members of team and affects the goals and tasks they are striving to achieve. It can
be based on differences in vision, intention, and quality expectation. It is essential to focus and
channel any task conflict so that these differences become collaborative and lead to
improvements in the way and go about accomplishing current and future task. Converting
conflict to friendly competition might be one way of taking the best from both sides.

Type # 2. Role Conflict:

Conflict surrounding roles and responsibilities are especially common during or immediately
following organisational change, particularly restructurings. People may be unclear on who is
responsible for which decisions and outputs.

For example, after an international strategic business consulting firm restructured its managerial
staff, an individual who formerly managed two key customer segments was unwilling to
relinquish all the responsibility to the new manager. He continued to question staff and issue
orders while his replacement was trying to set a new direction. With two managers giving input,
employees were stuck in the middle, which created conflict among them as well as between the
managers.

To identify the root cause of a role conflict, each party needs to examine his or her
responsibilities as well as the other persons. One or both may need to change their perception,
and then they will need to collaborate to clarify who will handle what.

Type # 3. Process Conflict:

This is related to how the work gets done. This form of conflict centres around, the process,
procedures, steps or methods used to reach goal. One person might like to plan many steps ahead
while others might like to dive in headfirst. These differences in approaches or processes can
lead to communication break downs and ultimately conflict. Healthy differences in approaches to
process will often lead to improved way of doing job.
Process conflict commonly arises when two departments, teams, or groups interact on a process.
They may view the process differently and disagree on how it should be accomplished or point
fingers rather than communicating effectively when problems arise.
For example, at a global manufacturer of heavy lifting equipment, three shifts were involved in
the production of a machine, which often suffered from poor quality or low production rates. No
standard process existed to build the machine, and each shift believed its approach was best. If
one shift ended before the product was completed, the next group would either send the machine
through without completing it – which resulted in poor quality – or take it apart and rebuild it –
which slowed production.
To identify the root cause of process conflict, examine the process controls in place and how
employees interact with them. Get teams or individuals to collaborate to define the process more
effectively and establish communication channels to address problems.

Type # 4. Directional Conflict:

Directional conflict arises when organisations are forced to rethink their strategies and focus on
shorter-term activities, as many did during the economic downturn. Employees may not know
how to prioritise long-term versus short-term needs, or one department may work tactically while
another remains strategic.

For example, a regional insurance brokerage, representing several prominent insurance

providers, was developing a succession plan and selected several managers to be groomed as
next- generation leaders. This action resulted in directional conflict because the managers were
unclear whether to focus on meeting their short- term goals or on the longer-term succession
efforts.

To identify the root cause of directional conflict, individual employees should ask themselves-
What do I believe our direction is or should be? Is that aligned with what others are saying?
What are senior managers saying? Answering these questions will enable individuals to change
their own direction if necessary and help others change theirs.

Type # 5. External Conflict:

External conflict arises when pressures from customers or other stakeholders impact internal
decisions. Recent economic challenges compelled organisations to adjust and adapt, for example,
by lowering prices while providing enhanced customer service. Sales or customer service
personnel advocating for customers’ needs may have come into conflict with operations trying to
meet internal goals.
For example, a health care software company was pushing to bring a new product to market.
Sales and customer service employees continued to bring customer input to the programming
group, which did its best to incorporate the ideas into the product. As the requests continued to
come in, it extended the development process beyond the planned release date. When
management finally decided to release the product without further enhancements, additional
conflict arose because customers now complained that their inputs are not incorporated.
To identify the root cause of external conflict, ask if anyone internally has the control to resolve
the problem. It may be possible to create a can- do list, which may answer questions such as-
What can we do to address the external demand? The solution might involve collaboration
among several departments to adjust to the external pressures more effectively.

Type # 6. Relationship Conflict:

It focuses on interpersonal relationship. They are directly between people and may be over roles
style, resources or even personalities. This conflict can penetrate and damage all aspect of an
organisation. Relationship conflict can quickly demand all the attention and energy.

Although poor chemistry between individuals can exist, most interpersonal conflict tends to
grow from the other five sources of conflict. For instance, when two managers attempt to direct
the same department or when employees see external circumstances differently, interpersonal
conflict builds.
However, at times, genuine interpersonal conflict may exist. For instance, a national business
services firm hired a new vice-president whom the divisional personnel disliked because they felt
he was not as open and direct as his predecessor. This created conflict between the leader and the
team, which affected performance.

To find the root cause of interpersonal conflict, look for a particular bias or prejudice. Can
negative emotions be overcome? An open, direct conversation is always the best way to bring
issues out in the open and begin working on a resolution.
Three main levels of conflict are discussed below:

1. Individual-Level Conflict:

Individual-level conflict indicates that human behavior is directed by needs, which guide the

activities of an individual. Before joining an organization, the individuals try to match their

needs with the organization’s offerings in terms of salary packages or other benefits. However, if

they observe any inequity with their colleagues in the organization, then it may result in a

conflict at the individual level. Such a conflict may lead to tension, frustration, and unpleasant

behavior in individuals.

The individual-level conflict can be bifurcated into two categories, which are as follows:

a. Intra-Individual Conflict:

Arises within the individual and is considered psychological in nature.

It can be of two types:

i. Goal Conflict – Refers to a conflict where an individual or a group has to compromise its goals

for the achievement of organizational goals. In goal conflict, the individual or group goals are

not aligned with the organizational goals.

ii. Role Conflict – Occurs when individuals realize that their expected roles are different from
actual roles.

b. Inter-Individual Conflict:

Refers to a type of conflict that occurs between two individuals. Generally, this conflict arises

due to availability of scarce resources or rewards. It can also occur because different people have

different opinions, attitude, value system, and style of working.

2. Group-Level Conflict:
Group-level conflict refers to the divergence, competition, or clash between two groups of the

organization, such as management and staff.

Group-level conflict can be categorized into intra-group conflict and inter-group conflict,

which are mentioned as follows:

i. Intra-Group Conflict – Refers to a conflict that occurs within a single group.

ii. Inter-Group Conflict – Refers to a conflict that occurs between two or more groups.

Intergroup conflicts are frequently seen within an organization when two departments are in

conflict with each other to get scarce resources.

3. Organizational-Level Conflict:

Organizational-level conflict refers to the conflict which occurs at the level of the entire

organization.

It is of two types, which are as follows:

i. Intra-Organizational Conflict:

Refers to the conflict occurring within an organization.

Intra-organizational level conflict can be of three types, which are as follows:

a. Horizontal Conflict:

Indicates that there can be conflict between two functional groups at the same hierarchical level.

It can happen because of various reasons, such as shared resources and interdependency, and

goal incompatibility. For example, at times, the resources, such as printers, may be used by

different departments at the same time, leading to a long queue of documents to be printed.

This may result in delay in operations. Similarly, any mismatch in data and figures of the reports

that are shared by two interdependent departments may also lead to conflict. Likewise, the goals

of one department may interfere with the goals of another department, leading to goal

incompatibility and conflict.

b. Vertical Conflict:
Refers to the conflict between different hierarchical levels, such as between a superior and

subordinates. Vertical conflict can occur because of inadequate or ineffective communication

and distorted perceptions. For example, if a superior delegates some responsibilities to the

subordinates but fails to give clear instructions then a conflict may arise between the

subordinates and the supervisor regarding the responsibilities.

ii. Inter-Organizational Conflict:

Refers to the conflict occurring between two or more organizations. Organizations belonging to

same industry may indulge in unethical practices and unhealthy competition because of inter-

organizational conflict.
Louis R. Pondy in his book Conflict, “Organisational Concepts and Models” has written

that there are five stages of a conflict and they may be mentioned as follows:

1. Latent conflict;

2. Perceived conflict;

3. Felt conflict;

4. Manifest conflict; and

5. Conflict Aftermath.
1. Latent Conflict:

In this kind of conflict, competition forms the basis, when the aggregate demands of participants

for resources exceed the resources available to the organisation. There are four basic types of

latent conflicts and they are – (a) competition for scarce resources, (b) drive for autonomy, (c)

divergence of sub-unit goals, and, (d) role conflict.

Autonomy needs form the basis of conflict when one party either seeks to exercise control over

some activity that another party regards as its own province or seeks to insulate itself from such

control. Goal-divergence is the source of conflict when two parties which must co-operate on

some joint activity are unable to reach a consensus on the concerted action. Two or more types of

latent conflicts may also be present at the same time.

2. Perceived Conflict:

Another are of his view that perceived conflict occurs due to the parties misunderstanding of

each other’s true position. Conflict may sometimes be perceived when no conditions of latent

conflict exists and latent conditions may be present in a relationship without any of the

participants perceiving the conflict. Such a conflict can be resolved by improving

communication between the parties.

3. Felt Conflict:

The important distinction between perceiving conflict and feeling conflict is that x may be aware

that he is in serious disagreement with y over some policy. But this may not make x tense or

anxious and it may have no effect whatsoever in x’s affection toward y’. The personalisation of
conflict is the mechanism which causes many people to be concerned with dysfunctions of

conflict. In other words, it makes them feel the conflict.

There are two explanations for the personalisation of conflict – (i) The inconsistent demands of

efficient organisation and individual growth create anxieties within the individual. Anxieties may

also result from identity crisis or from extra-organisation pressures. Individuals need to vent

these anxieties in order to maintain internal equilibrium, (ii) Conflict becomes personalised when

the whole personality of the individual is involved in the relationship.

4. Manifest Conflict:

By manifest conflict we mean any of several varieties of conflictful behaviour such as open

aggression, apathy, sabotage, withdrawal and perfect obedience to rules except for prison riots,

political revolutions and extreme labour unrest, violence as a form of manifest conflict is rare.

The motives towards violence may remain, but they tend to be expressed in less violent forms.
5. Conflict Aftermath:

The aftermath of a conflict may have either positive or negative repercussions for the

organisation depending on how the conflict is resolved. If the conflict is genuinely resolved to

the satisfaction of all participants, the basis for a more co-operative relationship may be laid; or

the participants in their drive for a more ordered relationship may focus on latent conflicts not

previously perceived and dealt with.

On the other hand, if the conflict is merely suppressed but not resolved, the latent conditions of

conflict may be aggravated and explode in a more serious form until they are rectified. This

conflict is called “Conflict aftermath”.

The following six factors help in surfacing conflict in an organisation:

1. Heterogeneity amongst members

2. Incongruence in status hierarchy

3. Role dissatisfaction

4. Defective formalisation

5. System of decision making, and

6. Merging conflicting units.

Factor # 1. Heterogeneity amongst Members:

In large organisations heterogeneity amongst members is distinctly seen due to cultural and

religious background, values and beliefs, educational level, age factor etc. In due course of time,

heterogeneity is likely to be replaced by homogeneity.

Factor # 2. Incongruence in Status Hierarchy:

Conflict also occurs due to work place or ignored feelings of different departments and units and

not being given the requisite status in the organisational structure. Thus, it becomes a status and

ego problem of the personnel.

Factor # 3. Role Dissatisfaction:

This does occur to individuals and departments due to not allotting them the desired roles they

would like to perform. At the same time, these roles have been allotted to some other individuals

and departments by the organisation as per their decision. This role conflict normally occurs

when the formal authority in the organisation ceases to function or becomes ineffective.

Resolution of conflict in such a condition is only possible when a proper formal activity is

allotted.

Factor # 4. Defective Formalisation:

Formalisation means the form of rules and regulations, standardising the behavioural pattern of

individuals in an organisation. If the roles of individuals and the units are well-defined in a

manner reducing the chance of conflict. In any case, if formalisation is defective, the chances of

conflict over roles, function and jurisdiction are likely to increase.

Factor # 5. System of Decision Making:

In an organisation, decision making is an important aspect of management. This system needs to

be streamlined in a department. Those who are authorised to take important decisions on

administrative, financial and discipline matters, etc., be specified and let known to the

departments, sub-sections and units.

At the same time, authority for routine decisions for smooth functioning has to be delegated to

all in charge of departments and units as per the administrative requirements. This will avoid

confusion and conflicts.

Factor # 6. Merging Conflicting Units:

In an organisation, where one or more units are in the habit of conflicting on various issues and

which they care not to resolve, is not a healthy situation. In such cases, role conflicts, ego

problems, inadequate performance data, etc., ought be evaluated by the management and if

necessary, merger of such units be recommended in the appropriate manner keeping in view the

best interests of the organisation to avoid conflict.

The causes of conflict within an organisation may be divided under the following heads:
Cause # 1. Interdependence among Departments and Groups:

Whereas interdependent is the genesis of the modern systems approach, it causes more often,

among departments and groups. Mutual interdependence causes conflict when resources are

limited within the organisation. With limited resources every department or group tries to project

its need as indispensable.

The department or the group which manages greater share by manipulation causes dissatisfaction

in the department, which may have been deprived of even its legitimate needs. It is not possible

to evolve a foolproof method of distributing equally or even equitably the limited resources of

the organisation in the form of money, personnel and equipment among different departments of

organisations. Hence, conflict will automatically arise till the resource position improves. As the

dependence on the resources increases, the incidence of conflict is ought to increase unchecked.

The other source of conflict is the interdependence in timing of the activities. Sometimes the

performance of one department / group depends on the completion of the task by another

department / group within the schedule. If one fails to complete the task in time, the other

department cannot start and complete its activities. Time is also limited at the hands of

individuals. Within the limited time factor, different activities are expected to be performed

within the time constraint. The root cause of conflict is interdependence, which occurs due to

specialization.

Greater specialization, greater the interdependence and greater causes of conflict internally

within the organisation.

The conflict arising out of specialization becomes all the more acute if the external environments

are not properly predicted.

Cause # 2. Difference in Goals:

Difference in goals among different subunits or departments may cause conflict.

This difference among subunit goals is related to four characteristics of the organisations:

a. Mutual dependence on limited resources.

b. Competitive reward systems.

c. Differences in individual goals.

d. Differences in organisational operating goals.

When resources are limited and the operating level workers demand high wages, a conflict may

arise between the operating force and the management. The management considers the demand

as illegitimate and untimely in the context of the resource constraint. Competitive reward system

also generates conflict among different units and groups. Any group, which presses hard,

rewards more and succeeds in getting. It will cause conflict among other members of the group.

Difference in individual goals also brings in conflict in the organisation. Persons having

heterogeneous individuals depending on their different life styles, socio political background and

attitudinal developments are ought to have differing individual goals. This difference is

manifested even in the departmental or group goals. No uniformity could be arrived at on

account of latent heterogeneity.

Inter group conflict also arises when operational goals of the organisation are not objectively and

clearly laid down. The conflicting groups justify their differences on the alibi of subjectivity in

operational goals. It enjoys on the planners to lay down even the operation goals specifically and

objectively.
Cause # 3. Differences in Perceptions:

Perceptions may be stated as the process of receiving information though different senses which

is interpreted and put in an organised pattern on the basis of past experience. Perception is a

psychological element of human personality, which depends on the information and

communication system on one hand and the personality development of the people on the other.

Personality, having psycho – physical elements, is cast in the world of the environments in which

the person has been brought up. Hence, different people and groups have different perceptions

about certain events and activities in the organisation. People having perception of callous

attitude towards work, are apt to conflict with people having perception of work as worship.
Perception also depends on the source of flow of information. Time horizon also contributes to

difference in perceptions. Difference in the time horizon is also related to position occupied by

the person in the organisation and the tasks performed by people in different units, sections and

departments.