Conflict and Negotiation Management

Conflict and negotiation are important aspects that leaders may face in an organizational setup.

  • Overview of Conflict

A basic definition of organizational conflict is disagreement by individuals or groups within the organization, which can centre on factors ranging from resource allocation and divisions of responsibility to the overall direction of the organization. A simple example of organizational conflict happens when workers demand higher pay and the business owner or management wants pay levels to remain status quo.

In one approach, organizational conflict produces negative outcomes. Conflicts cause stress, which decreases worker satisfaction. The reduced satisfaction level can lead to increases in absenteeism and turnover. Conflict can also lower trust in supervisors and fellow employees, which can slow or stop progress on projects. The pileup of internal negative consequences, such as lost trust and slowed progress, can cause a negative impact on customer satisfaction due to missed deadlines and reduced work quality.

In some cases, no agreeable resolution for all parties involved in a workplace conflict is present. If, for example, business co-owners see the business developing in two completely different directions, no solution will satisfy both parties. Solving organizational conflicts that engage different visions for the business usually requires one of parties to leave. Every business is faced with limited resources and demands that exceed them. At a certain point, business owners must simply refute requests for more money. An explanation can soften the blow and provide acknowledgement, but the conflict may linger in spite of any attempt to resolve it.

By managing conflicts skillfully, you can-

  • Gain cooperation from team members
  • Improve performance and productivity
  • Reduce stress and preserve integrity
  • Solve problems as quickly as possible
  • Improve relationships and teamwork
  • Enhance creativity
  • Increase staff morale

 

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