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Education Resources

Conflict Management – MBA Book

Saturday, November 8, 2008

Best examples of conflict are conflict between management and employees. Conflict a serious problem in any organization if the problem not handle properly.

Conflict Management Objectives from the MBA Book

Definition of Conflict

Outcome of Conflict

Forms of Conflict

Conflict Management Strategies


Causes of Stress

Stress Management

Crisis of Management

About the conflict in an organization there are many definitions by some academician. At 1st we will give some light on Gray and Starke’s theory of conflict management, “Conflict is behaviour by a person or group that is purposely designed to inhibit the attainment of goals by another person or group. This ‘purposeful inhibition may be active or passive.”

According to K. W. Thomas conflict is, “processes that begins when one party perceives that another party has negatively affected or is about to negatively affect, something the first party cares about.”

At last I give one more definition about conflict by B. Kabanoff, “Conflict refers to a disagreement, opposition, or struggle between two or more individuals or groups. It results from incompatible influence attempts between and within individuals, groups or organizations.”

In the age of globalization company has conflicts in terms of people personality, values, attitudes, perceptions, languages, cultures and national backgrounds.

Now, we will discuss about outcomes of conflicts. Outcome of conflicts is the results of conflicts. Conflicts has two consequences – Positive and Negative.

Positive consequences of conflicts are:

Leads to new ideas

Stimulates Creativity

Motivates changes

Promotes Organizational vitality

Helps Individual and Groups

Indicate Problems

Negative consequences of conflicts are:

Diverts energy from work

Wastes of resources

Creates negative climate

Breaks down group cohesion

Increase hostility and aggressive behaviours

Conflicts are divided into two parts – Functional Conflict and Dysfunctional conflict.

Functional conflicts support the goals of the group and improve its performance while dysfunctional conflict hinders the group performance.

In this chapter now we have to discuss about sources of organizational conflict. These are:

Line and Staff Competition

Organization-Individual Disagreements

Overlapping Responsibilities

Functional Interdependence

Personality Clashes

Disagreement over Goals

Flow of Work

Conflict can be divide into two forms also – Intra-Individual or Interpersonal conflict. An Individual can get experience about cognitive conflict, affective conflict, inter-role conflict, intra-role conflict and personal-role conflict.

Strategies of Conflict Management

In the strategies of conflict management we can include – avoiding, accommodating, competing, compromising and collaborating which is style of management.


In this chapter we have to study about negotiation also. Negotiation is a process by which we can define conflict what they are willing to give and accept in return. Negotiation has been including in this chapter because it is a part of conflict management. Negotiation process solves management conflicts towards the employees.

There can be some negotiation steps:


Evaluation of Alternatives

Identifying Interests


In every country there are different cultural differences in negotiation. Like Japanese give the high importance of emotional sensitivity while for North American it has no high value.

In the negotiation there are two major approaches – Distributive Bargaining and Integrative Negotiation.

In today world there are more value of third-party negotiators who known as – mediator, arbitrator, consultant, inquisitor and delegator or avoider.


Stress is exceeding complex. Here I will give some definition which has been proposed by theoreticians. According to J. C quick and J. D Quick, “Stress, or the stress response, is the unconscious preparation to fight or flee a person experiences when faced with any demand.”

Another definition from Mikhail is also very important, “Stress refers to a psychological and physiological state that result when certain features of an individual’s environment challenge that person, creating an actual or perceived imbalance between demand and capability to adjust that results in a non-specific response.”

I think stress creates from our environmental situation. Stress affects normally our health.

The causes of stress

After having study the definition of stress we need to know about causes of stress. In the causes of stress we can introduce conflict.

There is some cause of stress:

Inner conflicts

Perceptual influences

Thresholds of stress

Motivational level

Stress value can be measured by a rating scale. These are:

If a person feels about the spouse death its mean value is 100. Like that when a person gets notice of divorce then stress value mean of 73 scales.

In this chapter we will study about two type of behaviour pattern – A and B.

In pattern of “A” behaviour we see these:





Devotion to work

Feeling of Intense time Pressure

Attempts to several things at once

In the type of “B” behaviour pattern we can summarize it as:

Never suffer from a sense of time urgency

Feel no need to display any achievement

Play for fun

To manage stress we can follow some level which can be:

Individual Level

Organisation Level

Crisis Management

It is the last chapter of conflict management. Crisis management is an issue in business world. It is a big issue for now. We can categories crisis management.

Types of Crisis

Natural Disaster

Environmental disaster

Industrial accident

Shortfall in demand

At last, we can say conflict can be a serious problem for a company or organisatioin.


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