Introduction. Conflict is an unavoidable reality of organisational life. Whenever individuals and groups work together, they bring with them different needs, goals, perceptions, values and personalities. These differences, combined with limited resources and role interdependence, create situations in which the interests of one party appear to be opposed to the interests of another. This gives rise to conflict. If not handled properly, conflict can lead to tension, frustration, reduced efficiency and even breakdown of relationships. At the same time, modern organisational psychology, including the treatment in Psychology for Managers (Kalyani Publications), recognises that a certain level of conflict can be constructive, stimulating creativity, critical thinking and change. Therefore, a good manager must understand the types of conflict, the major causes that generate conflict, and the measures for effective resolution and control.
Meaning of Conflict
In simple terms, conflict may be defined as a state of disagreement or opposition between two or more parties (individuals or groups) arising from incompatible goals, scarce resources, different values or perceptions.
Important features of this meaning are:
- Conflict involves two or more parties – individuals, groups, departments or organisations.
- There is perceived incompatibility of goals or interests – each party believes that the other is blocking or may block its goal attainment.
- Conflict may be expressed openly (arguments, strikes) or remain hidden and psychological (cold behaviour, non-cooperation).
- Conflict can range from mild disagreement to intense hostility and aggression.
Types of Conflict in Organisations
Conflicts can be classified from different viewpoints. For B.Com (Psychology for Managers), the following classification is most relevant:
1. Intra-personal (Individual) Conflict
Intra-personal conflict occurs within the mind of an individual when he faces incompatible demands, goals or values.
- Example: A manager may feel torn between his desire to achieve promotion (requiring long working hours) and his desire to spend more time with family.
- Example: An employee may experience conflict between his value of honesty and pressure from superiors to adopt unethical practices.
Common forms include:
- Approach–approach conflict: Choice between two equally attractive options (e.g., two equally good job offers).
- Avoidance–avoidance conflict: Choice between two unpleasant alternatives (e.g., accepting a transfer to a remote area or resigning).
- Approach–avoidance conflict: Same goal has both positive and negative aspects (e.g., promotion brings more pay but also more stress).
Intra-personal conflict may lead to stress, anxiety, indecision and reduced performance if not resolved.
2. Inter-personal Conflict
Inter-personal conflict arises between two or more individuals in the same organisation.
- It may occur between:
- Supervisor and subordinate (e.g., over performance, authority, methods of work),
- Two colleagues competing for promotion or recognition,
- Members of a team with different working styles or personalities.
- It is often driven by ego clashes, communication gaps, value differences, competition and misunderstandings.
If unresolved, inter-personal conflict may spoil team spirit, cooperation and morale.
3. Intra-group Conflict
Intra-group conflict occurs within a work group or team among its members.
- It may arise due to:
- Differences in expectations regarding group goals and priorities,
- Unequal distribution of workload, rewards or recognition,
- Formation of cliques and sub-groups within the team,
- Ambiguity about roles and responsibilities.
A moderate level of task-related intra-group conflict can be functional as it encourages critical discussion and prevents groupthink. But high levels, especially of personal conflict, are dysfunctional and reduce group cohesion.
4. Inter-group Conflict
Inter-group conflict occurs between two or more groups or departments within the same organisation.
- Typical examples:
- Conflict between production and marketing (production emphasising cost and standardisation; marketing emphasising variety and quick delivery).
- Conflict between finance department and other departments over budget allocation.
- Conflict between workers’ union and management over wages and working conditions.
Inter-group conflict often leads to “we versus they” attitude, stereotyping of the other group, breakdown of communication and poor coordination.
5. Inter-organisational Conflict
Sometimes conflict may also arise between two or more organisations.
- Examples:
- Conflict between competing firms over market share, advertising claims or poaching of employees.
- Conflict between organisations in a supply chain over delivery schedules or prices.
Though this appears external, it may put pressure on managers and affect the internal climate.
6. Functional and Dysfunctional Conflict
- Functional (constructive) conflict: A moderate level of conflict that supports group goals, stimulates creativity, encourages search for better alternatives and improves decision-making.
- Dysfunctional (destructive) conflict: Excessive conflict that hinders performance, creates tension and hostility, disrupts communication and leads to disintegration of the group.
Modern view of conflict is not “conflict is always bad” but “too little conflict can be as harmful as too much”; the objective is to manage conflict, not eliminate it completely.
Causes of Conflict in Organisations
Conflicts have identifiable roots. Understanding these causes helps managers to prevent and resolve them more effectively.
1. Scarcity of Resources
- Organisational resources such as budget, manpower, equipment, space and time are limited.
- Different departments and individuals compete for a larger share of these resources.
- Example: Production, marketing and R&D may all demand higher budgets; finance may be unable to satisfy everyone, leading to conflict.
2. Goal Incompatibility and Different Priorities
- Each department has its own sub-goals which may conflict with overall goals or with each other.
- Examples:
- Production aims at long production runs for efficiency; marketing wants frequent changes for customer satisfaction.
- Finance stresses cost control; HR wants more spending on training and welfare.
- When these goals are not harmonised, conflict arises about what should be given priority.
3. Role Ambiguity and Role Conflict
- Role ambiguity occurs when job responsibilities, authority and expectations are not clearly defined.
- Role conflict occurs when an individual receives conflicting demands from different superiors or different parts of his role.
- Example: A sales manager may be told by one superior to maximise sales volume and by another to reduce expenditure, leading to confusion and conflict.
4. Communication Barriers and Misunderstandings
- Incomplete, inaccurate or delayed communication leads to wrong assumptions and mistrust.
- Use of ambiguous language, failure to listen, reliance on rumours and grapevine further aggravate conflict.
- Sometimes the tone of a message (harsh, sarcastic) creates emotional reaction even when the content is acceptable.
5. Differences in Perception, Values and Attitudes
- People differ in how they see and interpret the same reality.
- For example:
- A supervisor may perceive his behaviour as fair and firm; subordinates may see it as harsh and biased.
- One manager may value risk-taking and innovation, another may value security and stability.
- Such differences in perception and value orientation become a major source of conflict regarding policies, methods and priorities.
6. Personality Clashes and Ego Problems
- Variation in personality traits (dominance, rigidity, sensitivity, aggression) can easily lead to conflict.
- Individuals may feel threatened by others’ success, leading to jealousy and rivalry.
- Desire for power, status and recognition may result in ego clashes between managers or between older and younger employees.
7. Unfair or Rigid Policies and Practices
- If employees feel that policies regarding:
- Pay and allowances,
- Promotion and transfers,
- Performance appraisal,
- Discipline and grievance handling
- Perceptions of inequality in treatment create strong resentment and may lead to disputes, protests and industrial unrest.
8. Structural Factors and Dependency
- Complex organisational structures create multiple layers and patterns of dependence.
- When the performance of one unit depends on the output of another, any failure or delay in one unit can trigger conflict.
- Example: Assembly department blaming machine shop for delays; sales department blaming production for poor quality.
9. Industrial Relations Factors (Union–Management Conflicts)
- In unionised organisations, conflict often arises over:
- Wage demands and bonus,
- Working hours and conditions,
- Job security and retrenchment,
- Implementation of settlements and agreements.
- Such conflicts may take the form of strikes, lockouts, go-slow, work-to-rule, etc.
10. Organisational Change and Uncertainty
- Introduction of new technology, restructuring, mergers, automation or new performance standards can disturb the existing balance.
- Employees may fear loss of job, status, authority or comfort, and therefore resist change.
- This resistance can lead to conflicts between those who favour change (usually top management) and those who are affected by it.
Measures to Resolve and Manage Conflict
As conflict cannot be completely eliminated, the aim should be effective conflict resolution and management. Important measures are discussed below.
1. Open and Effective Communication
- Provide clear, accurate and timely information about goals, policies and decisions.
- Encourage two-way communication so that subordinates can express their views and grievances.
- Clarify misunderstandings promptly; discourage rumours and gossip by giving official information regularly.
2. Clarifying Roles, Responsibilities and Goals
- Prepare specific job descriptions and define authority and responsibility clearly.
- Minimise overlapping and duplication of roles which often cause confusion and conflict.
- Set clear organisational and departmental goals so that everybody knows the direction in which they are expected to move.
3. Fair and Consistent Policies
- Adopt transparent and just policies relating to wages, promotion, transfer, performance appraisal and discipline.
- Apply these policies consistently to avoid perceptions of favouritism or discrimination.
- Give employees opportunities to appeal or review decisions which they consider unfair.
4. Participative Management and Joint Decision-Making
- Involve employees and their representatives in decisions which affect their work and future.
- Use committees, quality circles, suggestion schemes and workers’ participation in management.
- Participation increases acceptance of decisions, reduces feelings of imposition and thereby lowers the intensity of conflict.
5. Developing a Climate of Trust and Cooperation
- Leaders should display honesty, fairness and respect in dealing with subordinates.
- Encourage team spirit through joint projects, group incentives and recognition of collective achievements.
- When there is trust, even difficult issues can be discussed openly and conflicts can be resolved amicably.
6. Negotiation and Problem-Solving Approach
- When conflict arises, parties should adopt a problem-solving attitude rather than a hostile, competitive stance.
- Through negotiation, each side listens to the other, identifies underlying interests and tries to reach a mutually acceptable solution.
- Instead of “win–lose”, the effort should be to find “win–win” outcomes where both parties gain something.
7. Third-Party Intervention: Mediation, Conciliation and Arbitration
- When parties cannot resolve conflicts by themselves, a neutral third party may be invited.
- Mediation / Conciliation: The third party helps the disputants to communicate, understand each other’s position and reach an agreement; his suggestions are not binding.
- Arbitration: The third party listens to both sides and gives a decision which may be binding according to prior agreement (common in industrial disputes through labour courts and tribunals).
8. Grievance Handling and Counselling
- Establish a formal grievance redressal mechanism so that employees can present their complaints and get them settled at the earliest.
- Train supervisors in counselling skills to help employees who are facing intra-personal or inter-personal conflicts.
- Timely handling of grievances prevents small issues from growing into major conflicts.
9. Structural Changes and Redesign
- Where conflicts arise due to structural reasons (e.g., overlapping authority, unclear responsibilities, excessive interdependence), modify the structure.
- Measures may include:
- Redesigning jobs and workflows,
- Creating liaison roles or coordinating committees between conflicting departments,
- Adjusting spans of control and reporting lines.
10. Training in Inter-personal and Conflict-Handling Skills
- Provide training programmes in:
- Effective communication and listening,
- Emotional control and empathy,
- Negotiation and bargaining techniques,
- Team-building and leadership.
- Such training equips managers and employees to handle disagreements constructively rather than avoid or escalate them.
11. Conflict-Handling Styles (Brief Concept Link)
Managers can adopt different styles for handling conflicts:
- Competing/Forcing: Emphasis on one’s own goals at the expense of others – useful in emergencies but may create resentment.
- Accommodating: Giving up own interests to maintain harmony – useful when the issue is minor but not for major matters.
- Avoiding: Withdrawing from conflict – may be temporarily useful but usually leaves the problem unresolved.
- Compromising: Each party gives up something – moderate solution when time is limited.
- Collaborating: Working together to find a solution that fully satisfies both parties – most constructive but requires time, trust and open communication.
Effective conflict resolution generally aims at collaboration and problem-solving rather than domination or avoidance.
Conclusion. In conclusion, conflict in organisations is neither totally avoidable nor always harmful. It arises because individuals and groups differ in needs, goals, perceptions, values and positions, and because organisational resources and opportunities are limited. Conflicts may occur at various levels – intra-personal, inter-personal, intra-group, inter-group and inter-organisational – and may be functional or dysfunctional. Major causes include scarcity of resources, incompatible goals, role ambiguity, communication breakdown, personality clashes, unfair policies, structural features, industrial relations issues and organisational change. To prevent conflict from becoming destructive, managers must adopt a comprehensive strategy including clear communication, role and goal clarity, fair policies, participative management, development of trust, negotiation, third-party intervention, grievance handling, structural adjustments and training in interpersonal skills. The aim is not to suppress all conflict, but to manage it intelligently so that it becomes a source of creativity and improvement rather than tension and breakdown.