Managing conflicts in a company is crucial for its success. According to a study by the American Management Association (AMA), managers spend a significant portion of their workday dealing with employee disagreements. However, ignoring conflicts or prohibiting them is not a solution, as it can lead to latent confrontations that drain company resources.
Article structure:
Accept that conflicts exist and learn to manage and benefit from them
Conflict, if handled properly, can be a source of energy, new ideas, and a path to development. It is important to understand that conflict, dispute, and quarrel are not the same and require different approaches to resolve them.
A conflict is a clash of opposing goals and interests, while a dispute involves a discussion with no negative emotions, and a quarrel is characterized by negative emotions with no clear subject of conflict. As a manager, it is essential to distinguish between these types of interactions and use appropriate strategies to resolve them.
In a dispute, managing the content of the discussion is important, while in a quarrel, addressing the emotions of the participants is necessary. In a conflict, both the subject of the conflict and negative emotions must be addressed. By recognizing and effectively managing conflicts, a company can turn them into a tool for growth and development.
Different types of conflicts in a company
Conflicts that arise within a company can be classified into several categories:
- Intrapersonal – this type of conflict arises when an individual has to make a choice between two options, both of which have advantages and disadvantages. For instance, an employee who likes their current job but also wants to move up the career ladder is faced with a dilemma. They can either continue working in their current position or leave their job to pursue other opportunities. In this scenario, the individual experiences frustration due to their inability to achieve their desired outcome.
- Interpersonal – this type of conflict is a clash between two employees, which can be driven by healthy competition or a clash of personalities. Professional inequality or salary disparity can also cause this type of conflict. For example, two employees who perform the same job but receive different salaries may become resentful towards each other.
- Individual versus group – this conflict arises when a new employee joins a department and fails to conform to the established norms and values. Each department has its own corporate culture, and if a new employee does not fit into it, they may become ostracized. Additionally, if a new employee is a favorite of the manager, other team members may feel threatened and assume the new colleague will report back to the boss.
- Intergroup – this type of conflict occurs between formal groups, such as departments or divisions, or informal groups that form based on mutual interests or affinities. Informal groups tend to arise more frequently and can cause more conflict than formal groups.
Understanding the structure of a conflict is crucial for effective conflict management
The key components of a conflict include:
- The subject and object of the disagreement
- The participants involved in the confrontation
- The strategies employed by individuals in the conflict
- The macro- and micro-environment
The subject and object of a conflict
It is essential for leaders/managers to distinguish between the subject and object of a conflict, as the underlying cause of a disagreement may be concealed within the object. Failure to identify the root cause of the conflict may hinder the resolution process.
The subject of a conflict refers to the tangible issue causing the dispute, while the object of the conflict pertains to the intangible values, beliefs, and principles of the individuals involved. The subject is typically visible and straightforward to identify, whereas the object is abstract, deeply ingrained, and challenging to discern.
For example, a company facing financial difficulties has two departments vying for a limited budget. Each department argues that their project is more important than the other. The subject of the conflict is the budget, while the object of the conflict is the desire for power and prestige within the company hierarchy. Participants may not even be aware that their goal is not the budget, but rather their need for status and recognition.
When leaders understand the underlying motives of the conflict and communicate them to the team, it becomes easier to resolve the contradiction. Leaders can help individuals transform their hostile tactics into a willingness to compromise and work towards a common goal.
Participants in Conflict
Conflicts involve several groups of participants, including:
- The main conflict participants, who are the opinion leaders of the conflicting parties.
- Support groups, who actively support the opinion leaders.
- Incendiaries, who instigate and fuel the conflict.
- Organizers, who plan and strategize the conflict in advance.
Identifying and neutralizing the instigators of conflict is crucial in preventing further escalation.
Strategies of Behavior in a Conflict
Individuals involved in conflicts can adopt various strategies, including:
- Evasion, which involves avoiding the conflict entirely. This is often used in interpersonal conflicts by individuals who lack confidence and prefer to remain silent.
- Adaptation, which entails passively trying to resolve the conflict and make concessions to the other party. While this may resolve some conflicts, it can also lead to resentment and future attacks if concessions are not reciprocated.
- Confrontation, which involves openly opposing the other party and using aggressive tactics to achieve the desired outcome. This style of behavior requires a mediator to resolve the conflict effectively.
- Negotiation, which is the most effective strategy for resolving conflicts. Negotiation involves listening to the other party’s perspective, respecting their opinion, and finding a compromise that satisfies both parties.
The ability of employees to negotiate and find a compromise depends on the cohesion of the team, which is influenced by leadership, corporate culture, and shared goals within the company.
Micro and Macro environments in conflict
In order to fully understand a conflict, it’s important to consider the factors and circumstances that contribute to its development and progression. The micro-environment includes factors internal to the company, such as psychological tension, salary discrepancies, and professional inequality. On the other hand, the macro-environment refers to external circumstances outside of the company that may impact the conflict. For example, a nationwide economic crisis could lead to budget restrictions within the company, resulting in conflict between employees vying for limited resources.
Good ti know: Why do employees resist change, and what are some ways to introduce innovation in a more subtle approach?
8 Tips for effective conflict management strategies
Embrace conflict in a positive manner. Most people grow up thinking that conflicts are bad, and as a result, many managers view conflicts as a hindrance to productivity and problem-solving. However, conflicts are inevitable and necessary for organizational growth and overcoming challenges. Conflicts arise because each person has their own opinions and views, and expressing them is crucial to reaching agreements, finding common ground, and compromising. In companies where there are no conflicts, people may not work as a team or come together effectively. As a manager, it’s important to view conflicts as an opportunity to learn from different team members, improve communication, identify “bottlenecks” in the company’s work, and find new solutions to problems. A skilled conflict manager should not be afraid of conflicts, but rather welcome them and extract valuable information from disagreements.
Establish a clear conflict management system
A company should have a well-defined system for working with conflicts. For instance, Coca-Cola uses a system called COBRA, which regulates all important processes, including conflict management. A designated manager is responsible for managing conflicts, and every two months, each department is asked to fill out a table rating other departments on a 10-point scale. The manager then analyzes the responses and identifies conflicts between departments. The manager arranges a meeting between the opposing parties to resolve the conflict. If the conflict is not resolved, a second meeting is scheduled with the manager’s involvement. If the conflict persists, a third meeting is held.
Recognize the different stages of conflict
All conflicts go through four stages:
- Pre-conflict situation where tension between employees is noticeable but emotions are not expressed.
- Incident where employees divide into idea groups and begin negative communication.
- Peak conflict where the parties engage in open confrontation.
- Fading where the conflict is either resolved or gradually dies out on its own. However, unresolved conflicts lead to disastrous results such as employee demotivation and high turnover. The likelihood of conflict resolution is highest during the initial stage (92%) and lowest during the peak stage (almost impossible to manage).
Identify the source of the problem
When dealing with conflicts, it’s important to identify the source of the problem rather than just focusing on the subject or object of the conflict. The problem’s source could be organizational, such as unclear goals, lack of responsibility norms, or an unfair incentive system. Continuously questioning departments or negotiating with employees will not solve the problem if the underlying issues are not addressed. For example, rewarding only occupational safety engineers for the number of violations they discover may lead to dissatisfaction among production and maintenance services, causing intergroup conflict. Implementing the same reward system for all employees can eliminate the prerequisites for conflict.
Prevent escalation of conflicts
Conflicts should be resolved promptly and at the level at which they arise. For instance, interpersonal conflicts should not be allowed to escalate into intergroup conflicts. Prolonged conflicts between individuals will eventually lead to conflicts between formal or informal groups. Therefore, it’s crucial to address conflicts early before they escalate.
Learn to work with difficult people
Some people may be difficult to work with, and it may be challenging to find common ground with them. However, as a manager, it’s essential to have the skills to work through these difficult relationships. Avoiding such individuals may seem like a viable solution, but it’s not the best approach. Instead, managers should view difficult individuals as opportunities to improve communication and leadership skills. The mindset should be to see these individuals as teachers who can help us grow.
Mastering the waiter technique for conflict resolution
The Waiter Technique is an effective way to resolve conflicts between subordinates or disagreements among employees in a company. Here are the three steps to take when using this technique:
Step 1: Accept the Order As a manager, when you have a conflict with a subordinate, start by accepting their order. Ask them how they want the situation to develop and have them explain it point by point. Write down the details of their order and return it to them for approval. Ask, “I’m returning the order. Look, I heard you like this: one, two, three… Is this correct?” If there are any discrepancies, make additions to the order. This technique helps the other person feel heard and valued, reducing their desire to conflict and increasing their desire to cooperate.
Step 2: Propose Becoming a Waiter When you sense that the other person is in a mood for productive interaction, suggest that they become a waiter for you. Say something like, “Listen, I also have my own vision of the problem. Can you be a waiter for me?” If the other person feels heard, they are usually open to becoming a waiter.
Step 3: Create Two Lists At the end of the process, two lists should emerge. These lists should not contradict each other, but there may be disagreements on certain items. For those items, run the Waiter Technique process again.
If there is a conflict between employees, the manager should take the order from each of them and record the orders in writing to avoid any ambiguous interpretations.
Developing emotional intelligence as a mediator
Not every manager can mediate conflicts effectively. To reach a compromise between opponents, a mediator must have certain skills, such as negotiation and active listening. The mediator must remain neutral, even if their personal beliefs conflict with those of one or both parties. The mediator is not an arbitrator and does not make final decisions but rather helps facilitate negotiations.
Mediators should avoid using conflict-inducing words, direct expressions of mistrust, accusation, condescension, or criticism, which can cause negative emotions and worsen the situation.
Developing emotional intelligence (EI) is essential for effective mediation. Emotional intelligence is the ability to recognize and understand one’s own and others’ emotions and to control them. Developing EI increases a manager’s stress tolerance and helps them direct the actions of employees in the right direction.
Those interested in developing their EI can find valuable information in the book “Emotional Intelligence” by American psychologist Daniel Goleman.
