Introduction. In every organisation, people work together in groups, departments and hierarchies. They differ in needs, goals, values, perceptions and personalities. They also depend upon each other for information, resources and cooperation. These differences and interdependencies naturally create situations where the interests or views of one party come into clash with those of another. This clash is called conflict. Earlier, conflict was viewed as something purely negative to be eliminated at all costs. Modern organisational psychology, as discussed in Psychology for Managers (Kalyani Publications), takes a more balanced view – conflict is considered inevitable and, if properly managed, sometimes even useful. To manage it effectively, we must clearly understand the meaning of conflict and its various levels inside an organisation.
Meaning of Conflict
In simple words, conflict is a state of opposition or disagreement between two or more parties arising from incompatible goals, interests, values or perceptions.
Important points in this definition are:
- Conflict always involves two or more parties – they may be individuals, groups, departments or even organisations.
- There is a perception that the other party is blocking or may block one’s own goal achievement.
- The opposition may relate to goals, methods, resources, values, roles or expectations.
- Conflict may be expressed openly (arguing, complaining, strikes) or remain hidden and psychological (tension, silence, non-cooperation).
Thus, conflict is not merely difference of opinion; it is a situation of felt incompatibility and interference between parties.
Modern View: Conflict is Inevitable and Sometimes Useful
Modern writers do not say that all conflict is bad. They distinguish between:
- Functional (constructive) conflict – a moderate level of conflict that stimulates critical thinking, innovation and improvement without harming relationships.
- Dysfunctional (destructive) conflict – excessive conflict that leads to tension, hostility, communication breakdown and reduced performance.
The task of management is therefore not to remove all conflict but to control its level and direction.
Levels of Conflict in Organisations
Conflicts in organisations can occur at several distinct levels, depending on who is involved. For examination purposes, the main levels can be systematically explained as follows:
- Intra-personal (within the individual),
- Inter-personal (between individuals),
- Intra-group (within a group),
- Inter-group (between groups/departments),
- Inter-organisational (between organisations).
1. Intra-personal Conflict (Conflict within the Individual)
Meaning. Intra-personal conflict arises when an individual experiences internal clash within his own mind – between different needs, values, roles or goals.
It is an internal psychological conflict, not directly visible to others but very important because it affects behaviour, decision-making and mental health.
Types of intra-personal conflict
Psychologists commonly mention three patterns:
- (i) Approach–approach conflict
This occurs when a person has to choose between two equally attractive alternatives. Both options are positive, but he can choose only one.
Example: Choosing between two good job offers – one offers a higher salary, the other offers better growth opportunities. - (ii) Avoidance–avoidance conflict
This arises when a person has to choose between two unpleasant alternatives, both of which he would like to avoid.
Example: An employee must either accept a transfer to a remote area or resign from the job. - (iii) Approach–avoidance conflict
Here the same goal has both attractive and unattractive features. The person is drawn towards the goal but at the same time repelled by its negative aspects.
Example: A promotion gives more pay and status (positive) but also more workload and stress (negative).
Other forms of intra-personal conflict
- Value conflict: Clash between personal values and organisational demands (e.g., honesty vs. pressure to manipulate accounts).
- Role conflict within self: Conflict between the roles a person plays in work and family life – for example, as a manager and as a parent.
Effects
- If unresolved, intra-personal conflict may lead to anxiety, stress, indecision, guilt and reduced performance.
- In mild form, it can also stimulate self-analysis and better, more mature decisions.
2. Inter-personal Conflict (Between Individuals)
Meaning. Inter-personal conflict occurs between two or more individuals in the same organisation when their goals, values, roles or personalities clash.
Causes
- Differences in perceptions and attitudes – what one person considers fair, another may consider unfair.
- Competition for limited resources, promotions or recognition.
- Personality differences – one might be dominating and aggressive, another quiet and sensitive.
- Misunderstandings and communication gaps.
Examples
- Conflict between supervisor and subordinate about work assignment, performance appraisal or methods of doing the job.
- Conflict between two colleagues over sharing of responsibilities or credit for success.
- Clash between older employees who favour traditional methods and younger employees who favour new technology.
Effects
- Inter-personal conflicts, if unresolved, can damage relationships, reduce cooperation and create an unpleasant work environment.
- However, if directly and constructively discussed, they can lead to better mutual understanding and improved working arrangements.
3. Intra-group Conflict (Within a Group or Team)
Meaning. Intra-group conflict is conflict that takes place among members of the same group or department. The group may be a formal team (e.g., marketing team) or an informal group of workers.
Causes
- Differences in opinions on group goals, strategies or priorities.
- Unequal distribution of workload, rewards or recognition among group members.
- Formation of sub-groups or cliques within the team.
- Role ambiguity – members not clear about who is responsible for what.
Examples
- Members of a project team disagreeing about how to approach a problem or how to divide tasks.
- Some workers feeling that others are not doing their share of work, leading to complaints and quarrels.
Effects
- A moderate level of task-related intra-group conflict can be functional: it encourages detailed discussion, critical evaluation and better decisions.
- However, high levels of personal or emotional conflict can destroy group unity, trust and effectiveness.
4. Inter-group Conflict (Between Groups or Departments)
Meaning. Inter-group conflict arises between two or more groups, departments or sections of the same organisation.
Causes
- Goal incompatibility between departments.
- Competition for budget, manpower, equipment and other resources.
- Differences in values and orientations – for example, production vs. sales, line vs. staff.
- “In-group” and “out-group” feelings leading to stereotyping and prejudice.
Examples
- Production vs. Marketing: Production department may want long production runs to minimise cost; marketing department may demand frequent changes and urgent deliveries for customer satisfaction.
- Line vs. Staff: Line managers may feel that staff experts interfere without understanding practical problems; staff may feel that line managers ignore their technical advice.
- Union vs. Management: Workers’ union and management may come into conflict over wages, bonus, working conditions and disciplinary issues.
Effects
- Inter-group conflict often leads to “we–they” mentality, where each group sees itself as right and the other as wrong.
- Communication between groups becomes poor; cooperation and coordination suffer, harming overall organisational performance.
- However, properly managed, inter-group conflict can highlight weaknesses in policies and lead to necessary reforms.
5. Inter-organisational Conflict
Meaning. Inter-organisational conflict occurs between two or more different organisations that interact with each other or operate in the same environment.
Examples
- Conflict between rival firms in the same industry over market share, pricing, advertising claims or patents.
- Conflict between a company and its supplier over quality standards, delivery schedules or payment terms.
- Conflict between organisation and regulatory bodies or government agencies over compliance with rules and regulations.
Relevance
- Though inter-organisational conflict appears “external”, it has deep impact on strategy, policies and internal climate of the company.
- Managers must develop skills of negotiation, alliance building and competitive strategy to handle such conflict.
Additional Way of Looking at Levels: Individual, Group and Organisational
For conceptual clarity, the various levels discussed above may also be summarised under three broad headings:
- Individual level: Intra-personal and inter-personal conflicts.
- Group level: Intra-group and inter-group conflicts.
- Organisational/external level: Conflict between organisation and its environment, including inter-organisational conflict.
At each level, nature, causes and resolution methods may differ, but all levels are interconnected. For example, unresolved intra-personal conflict may grow into inter-personal conflict, which may spread to group and inter-group levels.
Managerial Implications of Levels of Conflict
Understanding levels of conflict is not just theoretical; it has practical value:
- At the intra-personal level, managers may use counselling, role clarification and realistic goal-setting to help individuals resolve internal conflicts.
- At the inter-personal level, emphasis is on improving communication, empathy, feedback and joint problem-solving.
- At the group and inter-group levels, techniques like team-building, negotiation, coordination mechanisms and participative decision-making are helpful.
- At the inter-organisational level, managers often rely on formal contracts, strategic alliances, mediation, arbitration and competitive strategies.
Conclusion. To conclude, conflict is a situation of opposition or disagreement arising from incompatible goals, interests, values or perceptions between two or more parties. In organisations, conflict appears at distinct levels – within the individual (intra-personal), between individuals (inter-personal), within groups (intra-group), between groups or departments (inter-group) and between organisations (inter-organisational). Each level has its own typical causes, examples and consequences. A clear understanding of these levels enables managers to diagnose the real source of conflict and to apply appropriate techniques for its control and resolution. The aim is not to suppress all conflict but to keep it within constructive limits, so that it becomes a source of energy, creativity and improvement rather than tension, hostility and breakdown in organisational functioning.