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Subject

Paper No and Title Paper No 1: Management Concept and Organisational

Behavior
Module No and Title Module 30 : Organisational Conflict

Module Tag COM_P1_M30

COMMERCE PAPER No.1: MANAGEMENT CONCEPTS AND

ORGANISATIONAL BEHAVIOUR
MODULE No.30: ORGANISATIONAL CONFLICT
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TABLE OF CONTENTS

1. Learning Outcomes
2. Introduction
3. Positive Effects of Conflict
3.1Release of Tension
3.2 Creativity
3.3Stimulation of Change
3.4 Identification of Weaknesses
3.5 Group Cohesiveness
4. Dysfunctions of Conflict
4.1Resignation of Personnel
4.2 Tensions
4.3Discontentment
4.4 Creation of Distrust
4.5 Goal Displacement
4.6 Weakening of Organization
5. Types of Conflict
5.1 Intrapersonal Conflict
5.2 Interpersonal Conflict
5.3 Intragroup Conflict
5.4 Inter-group Conflict
6. Source of Conflict
6.1 Incompatible goals and time horizons
6.2 Overlapping Authority
6.3 Task Interdependencies
6.4 Incompatible evaluation or reward system
6.5 Scarce Resources
6.6 Status Inconsistencies
7. Levels/ Stages of Conflict
7.1 Latent Conflict
7.2 Perceived Conflict
7.3 Felt Conflict
7.4 Manifest Conflict
7.5 Conflict Aftermath
8. Approaches to Conflict
8.1 Traditional Approach to Conflict
8.2 Modern Approach to Conflict
9. Summary

COMMERCE PAPER No.1: MANAGEMENT CONCEPTS AND

ORGANISATIONAL BEHAVIOUR
MODULE No.30: ORGANISATIONAL CONFLICT
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1. Learning Outcomes
After studying this module, you shall be able to

 Know the meaning of organizational conflict.

 Identify the various types of organizational conflict.
 Learn what are the sources of organizational conflict.
 Evaluate the consequences of various types of organizational conflict.

COMMERCE PAPER No.1: MANAGEMENT CONCEPTS AND

ORGANISATIONAL BEHAVIOUR
MODULE No.30: ORGANISATIONAL CONFLICT
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2. Introduction
Organisation Conflict is “the result of incompatible potential relationships. The process begins
when one party perceives that another party has impeded, or will frustrate, one or more of its
concerns.” Gordon(1991)

Rahim (2000) defined conflict as a natural outcome of human interaction, which begins when one
individual perceives that his or her goals, attitudes, values, or beliefs are incongruent with those
of another individual. This incompatibility can arise within an individual, between two
individuals or between groups of individuals.

Organisational Conflict is the discord that arises when goals, interests or values of different
individuals or groups are incompatible and those people block or thwart each other’s efforts
to achieve their objectives.

Conflict is inevitable given the wide range of goals for the different stakeholder in the
organization.

3. Positive Effects of Organizational Conflict

Organization Conflict might be considered as a concept having only negative attached to it but
the truth is it has its positives too. The positive outcomes of Organizational Conflict are as
follows:

3.1 Release of Tension: Organizational Conflicts gives a chance to the members of a group to
release their tension which otherwise would have remained suppressed in the hearts of all and
lead to decrease in their efficiency.

3.2Creativity: In order to resolve the organizational conflict the members of the group display
innovation and creativity by thinking of new and alternative ideas, which otherwise would not
have come to the forefront.

3.3Stimulation of Change: Organizational Conflicts gives way to change

3.4 Identification of Weaknesses: An organizational conflict usually unveils the weaknesses in

the system,

3.5 Group Cohesiveness: Inter- group conflict promotes group cohesiveness as all members of
one group stand together against the other.

4. Dysfunctions of Organizational Conflict

The negative outcomes of Organizational conflict can paralyze the organization. Following are
the negative aspects of Organizational Conflict:

COMMERCE PAPER No.1: MANAGEMENT CONCEPTS AND

ORGANISATIONAL BEHAVIOUR
MODULE No.30: ORGANISATIONAL CONFLICT
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4.1Resignation of Personnel: Incase of inter- personal and

intra-personal conflict individuals resign from the organization
incase not a fruitful resolve is reached. This harms the organization.

4.2Tensions: Negative environment is created in the organization which leads to anxiety,

frustration among the members and that in turn lead to decrease in efficiency, productivity and
profitability. This also leads to increase in wastage, spoilage, absenteeism.

4.3 Discontentment: Individuals working in the organizations who loose in the organizational
conflict feel very discontent if the resolution is not in their favor and look for an opportunity to
settle scores with the wining party.

4.4 Creation of distrust: Once there is a conflict between two parties it becomes difficult to
create trust between the two parties. Distrust leads to negative feelings and lack of cooperation.

4.5 Goal Displacement: Employees lose sight of the organizational conflict and concentrate on
finding tactics to come out as winners in the conflict.

4.6 Weakening of Organization: If management is not able to handle the organizational conflict
it might take a disastrous shape and harm the organization. Management of organizational
conflict is important for the health of the organization. Organizational conflict leads to tension
and ultimately resignation of employees which weakens the organization.

COMMERCE PAPER No.1: MANAGEMENT CONCEPTS AND

ORGANISATIONAL BEHAVIOUR
MODULE No.30: ORGANISATIONAL CONFLICT
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5. Types of Conflict

Intergroup

Interpersonal Types of Intrapersonal

Organizational
Conflict

Intragroup

Fig 3 Types of Conflict

5.1 Intrapersonal Conflict

Conflict within an individual is thought to arise from the person’s goals or roles. This kind
of conflict arises when a person’s individual conflict does not match with the
COMMERCE PAPER No.1: MANAGEMENT CONCEPTS AND
ORGANISATIONAL BEHAVIOUR
MODULE No.30: ORGANISATIONAL CONFLICT
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organizational goals or the individual has more than one

goal and those goals do not synchronize with each other.

Role conflict arises when an individual has more than one roles and those roles are not
compatible with each other for example a mother working in an organization has an
important meeting lined up for a day and that very day her 1 year old daughter is very ill.

Now her role as an employee demands her to attend to her work and on the other hand
her role as a mother demands her to attend to her daughter.

5.2 Interpersonal Conflict

Conflict between individuals due to differences in their goals or values. Ex. Conflict between a
supervisor and a subordinate can be termed as interpersonal conflict. A supervisor wants to
increase the productivity and for that sets difficult targets for subordinates, while subordinate
does not know about the organizational targets hence feels the targets set for him are
unreasonable.

5.3 Intra-group Conflict

Conflict within a group or team. In a group when a conflict arises between the different members
of the group it can be termed as intra-group conflict.

5.4 Intergroup Conflict

Conflict between different groups in the organization are known as inter-group conflict. Ex.
Conflict between production team and marketing team.

COMMERCE PAPER No.1: MANAGEMENT CONCEPTS AND

ORGANISATIONAL BEHAVIOUR
MODULE No.30: ORGANISATIONAL CONFLICT
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6. Sources of Conflict

Fig 4 Sources of Conflict

6.1 Incompatible goals and time horizons

Different groups have differing goals and focus. An individual having two different goals which
might conflict with each other or goal of individual conflicting with organizational goal also leads
to conflict.

6.2 Overlapping Authority

Two or more managers claim authority for the same activities which leads to conflict between the
managers and workers.

6.3 Task Interdependencies

One member of a group or a group fails to finish a task that another member or group depends on,
causing the waiting worker or group to fall behind.

COMMERCE PAPER No.1: MANAGEMENT CONCEPTS AND

ORGANISATIONAL BEHAVIOUR
MODULE No.30: ORGANISATIONAL CONFLICT
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Ex. A car before finishing goes to many hands on a conveyor

belt. A performs a certain task the it comes to B, who in turn
performs other functions and so one so if A does not finish his task in time B will also not able to
finish his task in time, thus, this usually happens in case of sequential interdependencies.

6.4 Incompatible evaluation or reward system

A group is rewarded for achieving a goal, but another interdependent group is rewarded for
achieving a goal that conflicts with the first group.

6.5 Scarce Resources

Managers can come into conflict over the allocation of scare resources.

Ex. If one team is provided less resource in comparison to another team to perform the
same function it can lead to conflict.

6.6 Status Inconsistencies

Some individuals and groups have a higher organizational status than others, leading to conflict
with lower status groups.

Ex. A conflict between management and trade union member may only take place because of
difference in status.

7. Levels/ Stages of Conflict

Conflict has the following stages:

7.1 Latent Conflict: At this stage, conflict is not apparent. It occurs in the sub-conscious mind.

7.2 Perceived Conflict: At this stage, substantive or emotional differences are sensed.

7.3 Felt Conflict: At this stage conflict is felt in the form of tension .And at this stage this tension
creates motivation to act.

7.4 Manifest Conflict: Conflict can be seen in behaviors like pen aggression, apathy, sabotage,
withdrawal etc.

7.5 Conflict Aftermath: The conflict may have positive or negative aftermath. If the conflict is
resolved properly then the result will be cooperative relationships and creativity while if the
conflict is only suppressed then it can re emerge and lead to catastrophic repercussions.

COMMERCE PAPER No.1: MANAGEMENT CONCEPTS AND

ORGANISATIONAL BEHAVIOUR
MODULE No.30: ORGANISATIONAL CONFLICT
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8. Approaches to Conflict
8.1 Traditional Approach to Conflict

Classical writers view conflict as bad due to the very many adverse effects attached to it. They
believe that conflict leads to tension, negative environment and hence reduce the productivity of
the organizations. As individuals do not cooperate with each other the efficiency of the
organization reduces. Thus the traditional viewpoint of conflict considers conflict negatively.

8.2 Modern Approach to Conflict

This approach is also know an interactionist view of conflict. According to this viewpoint,
conflict in not only positive force in a group but is also necessary for a group to perform
effectively. This approach is based on the fact that peaceful group is prone to become static and
non responsive to the need of change. Conflict increases innovation and creativity. Thus, conflict
should not be totally avoided but should be kept under control.

9. Summary
 Organisational Conflict is the discord that arises when goals, interests or values of
different individuals or groups are incompatible and those people block or thwart each
other’s efforts to achieve their objectives.
 Organizational conflict has both positive and negative effects.
 Organizational Conflict can be of various types: Intrapersonal, Interpersonal, Intra-group
and Inter-group
 Organizational Conflict can be caused due to incompatible goals and time horizons,
overlapping authority, task interdependencies, incompatible evaluation or reward system,
scarce resources and status inconsistencies.
 Conflict has five stages namely, latent, perceived, felt, manifest and conflict aftermath.
 There are two approaches to conflict namely, traditional and modern.

COMMERCE PAPER No.1: MANAGEMENT CONCEPTS AND

ORGANISATIONAL BEHAVIOUR
MODULE No.30: ORGANISATIONAL CONFLICT
____________________________________________________________________________________________________

COMMERCE PAPER No.1: MANAGEMENT CONCEPTS AND

ORGANISATIONAL BEHAVIOUR
MODULE No.30: ORGANISATIONAL CONFLICT