Definition Disagreement between individuals or groups within an organization, that may have an impact on the overall functioning of the organization. E.G. :- Workers advocate for higher pay and the business owner or management wants pay levels to remain the same. 2 Organizational Conflict Presentation 11/14/2013
Nature of Conflict Conflict arises out of mutually exclusive goals Conflict is different from Competition 3 Organizational Conflict Presentation 11/14/2013
Types of Conflict Organizational conflict can be classified into two distinct categories : - Internal External 4 Organizational Conflict Presentation 11/14/2013
Internal Conflict Internal conflict is personal to the person involved. This type of conflict takes place within the person. It can surface when a person’s values or morals are tested or otherwise compromised. Internal conflict can greatly impact the person’s performance level. 5 Organizational Conflict Presentation 11/14/2013
External Conflict External conflict is observed in outside forces that cause struggle for the person, such as an unhappy customer or an unruly supplier. External conflict can also be caused when the management style of the business owner does not set well with the employees of the organization. 6 Organizational Conflict Presentation 11/14/2013
Outcomes - Positive In a different view, organizational conflict represents an opportunity for productive change. The use of effective communication lies at the heart of this view. The simple act of acknowledging and seeking solutions to organizational conflicts can defuse them and draw employees into a stronger relationship with the business. It can also encourage an adaptable organization that copes efficiently with the rapid changes faced by modern businesses. 7 Organizational Conflict Presentation 11/14/2013
Outcomes - Negative Conflicts cause stress, which reduces worker satisfaction. This diminished satisfaction can lead to increases in absenteeism and turnover. Conflict can also diminish trust in supervisors and fellow employees, which can slow or stop progress on projects. 8 Organizational Conflict Presentation 11/14/2013
“Sometimes the need to focus on beating the Competition can get derailed by internal organizational conflict. In order to keep your employees focused on being productive and bettering the competition, it is necessary to understand the causes of organizational conflict.” - Ryan Bannerman Associates 9 Organizational Conflict Presentation 11/14/2013
Causes for Conflicts Managerial Expectations It is the job of an employee to meet the expectations of his manager, but if those expectations are misunderstood, conflict can arise. Managers need to spend time clearly communicating their goals to employees and then confirming those goals in writing. A manager should also encourage his/her employees to ask questions about their goals, and hold regular meetings to discuss the goals and how best to reach them. 10 Organizational Conflict Presentation 11/14/2013
Causes for Conflicts Breakdown in Communication If a department requires information from another department in order to do its job, and the second department does not respond to the request for information, a conflict can arise. Some interdepartmental disagreements might trigger a nonresponsive attitude that can quickly become an internal conflict. When people or departments are late in responding to information requests, or they are withholding information on purpose, it is best to address the situation immediately with a personal meeting with both sides to resolve the situation. 11 Organizational Conflict Presentation 11/14/2013
Causes for Conflicts Misunderstanding the Information One person may misunderstand information, and that can trigger a series of conflicts. In order to deal with this kind of situation, it is best to have the person admit her misunderstanding and work with the affected parties to remedy the situation. For example, if the production manager misunderstands the product manufacturing goals, then the sales manager may not have enough product to sell. Taking responsibility for a mistake can quickly defuse a potential organizational conflict. 12 Organizational Conflict Presentation 11/14/2013
Causes for Conflicts Lack of Accountability Organizational conflict might arise from frustration. One source of frustration is a lack of accountability. If something has gone wrong, and no one is willing to take responsibility for the problem, this lack of accountability can start to permeate throughout the entire company until the issue is resolved. One way to combat a lack of accountability is to have anyone who comes into contact with a document sign his name to it and include the date. The paper trail may sometimes find the source of the problem, which can then be addressed. 13 Organizational Conflict Presentation 11/14/2013
Ways to handle Conflicts Conflict is inevitable in small businesses. Conflict can arise from a variety of sources, and between supervisors and subordinates, between co-workers, and between employees and customers. Managers and organizations can choose to see conflict as inherently negative, acting to suppress it at every opportunity, or as inherently positive, leveraging conflict to affect positive change. 14 Organizational Conflict Presentation 11/14/2013
Ways to handle Conflicts Positive Perspective Accept conflict as a natural growth process and influence your company culture to view constructive conflict positively. Conflict can be an asset to your small business if it is handled properly. It can help your organization to learn from its mistakes and identify areas of needed improvement. Innovation can be inspired from creative solutions to internal or external conflicts, and new ways of thinking can emerge. 15 Organizational Conflict Presentation 11/14/2013
Ways to handle Conflicts Grievance Procedure Create a formal grievance procedure for all employees. Let employees at all levels of your organization know that their voices will always be heard, and respond promptly and reasonably to employees issues. This can prevent bad feelings from festering and growing into resentment and bitterness. Conflict is best handled quickly and openly. If your company culture is sufficiently friendly toward constructive conflict, your staff should see the value of letting their complaints, ideas and issues be heard. 16 Organizational Conflict Presentation 11/14/2013
Ways to handle Conflicts Get to the Cause Focus on deep-rooted causes rather than superficial effects when assessing conflicts. Parties to a conflict often claim to have issues with the behavior of co-workers or the outcome of company policies and work procedures, but these issues are likely being caused by something deeper. Attempting to resolve the conflict by addressing surface issues will rarely create meaningful change or lasting solutions. Look deeper to address the reasons that incidents occur. 17 Organizational Conflict Presentation 11/14/2013
Ways to handle Conflicts As an example, if a supervisor finds himself constantly in conflict with a loyal employee due to falling productivity levels, the supervisor may naturally want to address the employees’ behavior head-on. Upon closer analysis, however, the supervisor may realize that the employee has been increasingly dissatisfied with his job ever since last year’s disappointing performance review. Revisiting the review with the employee may be much more effective than creating incremental performance goals for him. 18 Organizational Conflict Presentation 11/14/2013
Ways to handle Conflicts Equal Voices Give all parties of a conflict an equal voice, regardless of their position, length of service or political influence. Conflict participants can become defensive if they feel they are being marginalized or are going through a process leading to a predetermined outcome. It can be tempting to take the word of managers over front-line employees, or to take the word of a loyal employee over a new employee, but remember that your most trusted associates are not necessarily infallible. 19 Organizational Conflict Presentation 11/14/2013
Ways to handle Conflicts Resolution Participation Involve all parties, if possible, when drafting conflict resolutions. The theory of Management By Objectives (MBO) states that employees are generally more committed to goals that they have helped to create. The same holds true for conflict resolutions. There is more than one side to every conflict, and all sides should benefit from conflict resolution. Seek resolutions that will prevent the conflict from occurring again, rather than simply delaying a repeat occurrence. 20 Organizational Conflict Presentation 11/14/2013
Conflict Resolution The ideal method for resolving problems and making difficult decisions involves two steps, a magic formula that is guaranteed to work. In fact, it’s never failed when applied correctly. Here it is: Define the problem Decide how to solve it 21 Organizational Conflict Presentation 11/14/2013
Conflict Resolution Step 1: Defining the problem: Exchange “I” messages” Verbalize other person’s position if he cannot do so himself Actively listen as feelings come Take time It may be necessary to send more accurate “I messages” if motivation lags. Be sure the other person understands your commitment to finding a solution acceptable to both. 22 Organizational Conflict Presentation 11/14/2013
Conflict Resolution Step 2: Generating possible solutions (brainstorming) Think divergently Ask the other person to suggest solutions first Avoid all evaluation for now 23 Organizational Conflict Presentation 11/14/2013
Conflict Resolution Step 3: Evaluating the various solutions Honestly and reality are now important Actively listen and genuinely consider the other person’s preferences One solution to make sure you both understand 24 Organizational Conflict Presentation 11/14/2013
Conflict Resolution Step 4: Deciding on a mutually acceptable solution Be careful not to push your solution When close to agreement, state the tentative Solution to make sure you both understands 25 Organizational Conflict Presentation 11/14/2013
Conflict Resolution Step 5: Implementing the solution Decide who will do what and when Trust the other person to do his part rather than talk about failure contingencies 26 Organizational Conflict Presentation 11/14/2013
Conflict Resolution Step 6: Evaluating the solution All decisions are open to modification or repeal, but not unilaterally 27 Organizational Conflict Presentation 11/14/2013