Organizational Conflicts
© Ivana Načinović Braje & Sanda Rašić Jelavić
Context for conflicts
Organizations are complex mix of individuals and groups
pursuing various goals and interests
Conflict is a natural and inevitable outcome of the close
interaction of people or parties who may have diverse
opinions, values, objectives etc.
Individuals and groups will use power and political activity to
handle differences and manage conflict
Organization theory and conflicts
Classic organization
theory
Neoclassic organization
theory (human relations
school)
Modern organization
theory
Conflicts are a
negative force and
need to be avoided
Conflict is a normal and
unavoidable
phenomenon among
individuals, groups and
organizations
Conflict is a normal,
unavoidable and even
desirable
phenomenon
In case they occur
need to be resolved
immediately
In case they occur they
should be acknowledged
and resolved
In case they occur they
can be useful and
improve performance
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Possibilities for conflict....
• Organizational subcultures
• Different departments pursue different goals
• Collaboration among functional departments
• Teams within organization
• Headquarters and subsidiary
• Unions vs management
• ...
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Definition of a conflict
• Conflict is defined as involving a perceived or real
incompatibility of goals, values, expectations, process, or
outcomes between two or more interdependent individuals or
groups
• Conflict occurs when participants perceive that others may
block their goal achievement or expectations
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Organizational characteristics as sources of
conflict

Goal Incompatibility – In case achievement of one department’s
goals interferes with another’s (e.g. Marketing and Manufacturing
dept)

Differentiation – Functional specialization requires people with
specific education, skills, attitudes and time horizons thus
departments might differ in terms of values, attitudes and
standards of behavior

Task Interdependence – Dependence of one unit on another for
materials, resources or information; the interdependence increases
the potential for conflicts (e.g. Sequential or reciprocal task
interpependence due to technology)

Limited Resources – Competititon among groups for limited
resources (financial, physical facilities, staff etc.) causes conflicts
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 Poor and insufficient communication
 Change of roles (of authority and status) - individuals
and groups lose their power and authority in favor of some
other individuals
 Organizational overlapping - if a specific job is done by
two people or two organizational units and the tasks are
not precisely assigned
 Different organizational cultures
 Inadequate reward system - employees are being
inadequately rewarded in relation to their performance or
in relation to others
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Individual characteristics as sources of
conflict
 The differences in perceptions, paradigms and
values
 Personal style and education
 Personal intolerance and former personal private
affairs (should be avoided)
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Areas of potential goal conflict
Goal conflict
MARKETING
Operative goal is
customer satisfaction
MANUFACTURING
Operative goal is
production efficiency
Conflict area
Typical Comment
Typical Comment
1. Breadth of product line
„Our customers demand
variety”
„The product line is too broad
– all we get are short,
uneconomical runs.”
2. New product introduction
„New products are lifeblood”
„Unnecessary design changes
are prohibitively expensive.”
3. Product scheduling
„We need faster response.
Our lead times are too long.”
„We need realistic customer
commitments that don’t
change like wind direction”
4. Physical distribution
„Why don’t we ever have the
right merchandise in
inventory”
„We can’t afford to keep huge
inventories”
5. Quality
„Why can’t we have
reasonable quality at lower
cost?”
„Why must we always offer
options that are too expensive
and offer little customer utility”
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Types of conflicts
• Conflicts differ in terms of:
1. Consequences they cause (positive-constructive or
negative-destructive)
2. Causes of conflict or the subject of conflict (cognitive
and affective)
3. Entities involved in conflict
4. Costs (conflicts that generate considerable high costs should be avoided or conflicts that don’t generate high
costs)
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Types of conflict (1, 2)
Causes of conflicts:
• Cognitive conflicts – thoughts, ideas or objectives
between parties are incompatible
– Issue focused, not personal
– Characteristic of high performing groups
• Affective conflicts – incompatible feelings or emotions
among parties or within individuals
– Personal antagonism
– Destructive to group performance and cohesion
Types of conflict (3)
Conflicts can occur horizontally across
depts or vertically between different levels
of organization.
According to entities involved conflict can be
seen as:
Interorganizational
Intraorganizational
Intergroup
Intragroup
Interpersonal
Intrapersonal
• Intrapersonal (within an individual) – it may occur in
matrix structure due to dual responsibility or in inadequate
organization (a person cannot make a decision, cannot
do what is required, cannot do two things at the same
time)
• Interpersonal – among individuals; can be simulative in
case it is not a large conflict
• Intergroup – among organizational groups due to
organizational characteristics; can be caused by failures
in the organization, by the inability to satisfy the needs
of groups, by the lack of resources, by the lack of rules
and procedures, by an informal organization
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• Intragroup – among members of the same group: (a) a conflict
of roles - a person does a work which should be performed by
another person in the group; an individual receives orders to do
two jobs at the same time; (b) a conflict of results - the
members of the group have different views on decision to make
or how to solve the problems and achieve results; (c) a conflict
of interactions - arising from interactions, e.g. members of the
group blame others for the failure and take the credit for success
etc.
• Interorganizational conflict (among companies)
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Sources of conflict and use of rational versus
political model of behaviour
Rational
Political
The influence of conflict on
performance
• The small and large conflicts have relatively negative influence on
performance;
• Small conflict - individuals may be unmotivated and uncooperative
(conflicts should be encouraged).
• Large conflict - usually generated by uncooperative, exhausted and
hostile individuals (the effects are: deterioration of human
relationships, cost growth, productivity drop)
• Optimal conflict situation - individuals are productive and
cooperative. The positive effects are: atmosphere and dynamism
which boost ideas, creativity in solution makings, a possibility of
different insights into solving a problem, release of creative energy,
improvement of relationships after the conflict, a constructive
competition to earn most valuable investment of limited resources.
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Factors that determine a conflict
outcome
- a process (a tactic that is used)
- former relationships between the parties in a conflict (often
determine the outcome of a conflict)
- the nature of the conflict (small or heavy conflict)
- characteristics of the parties in a conflict (affecting the way of
resolving a conflict)
- consequence estimation (indicating whether to be involved into a
conflict or not)
- the involvement of a third party (if the conflict cannot be resolved
other way)
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A conflict can be solved by:
- Adjusting one side to another
- Withdrawing one party from a conflict
- Avoiding relationship with the conflicting party
- Mutual persuasion between the parties in the conflict
- Forcing a conflict solution
- Negotiation between the parties
- Competition between the parties
- Compromise between the parties
- Cooperation between the parties
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Negotiating Strategies
Managing conflicts
• Depends on the source of the problem
• Organizationaly based conflicts – changing the organizational
structure
• Individualy based conflicts – changing attitudes, values or
changing employees
Different tactics: forum, third party negotiator, procedural
system, job-rotation, power system
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