THE IMPACT OF CONFLICT

Conflict is inherently neither good nor bad but simply has the potential to improve or impair an organization’s performance through its consequences. Conflicts result in increased organization performance and help an organization to attain its goals may be termed as Functional. On the other hand, conflict that hinders an organization’s growth and prevents it from achieving its goals can be termed as Dysfunctional. Conflict in certain forms can be functional or dysfunctional depending upon its nature, intensity, duration and the manner in which it is handled.

The figure shows that:
  1. There is an optimal, highly functional level of conflict at which the unit's performance is at the maximum. This can happen because at that level of conflict the group or the unit's internal environment is characterized by self-criticism and innovativeness.
  2. When the conflict level is too low, it is dysfunctional as the unit's performance is low due to apathy (lethargy), stagnation, lack of new ideas and non-responsiveness of the unit-members to the demands of change. In such a situation, a manager may have to resort to stimulating conflicts to make the unit more viable.
  3. On the other hand, when the conflict level is too high, it is again dysfunctional, as the survival of the group or the unit is threatened owing to diversion of energies away from performance and goal attainment activities of the members. Chaos and disruption prevails. 
Naturally, the most important managerial task becomes how to resolve the conflict.

Research Findings:
Edgar Schein (1980) has unfolded below research findings. When conflict occurs, you can observe below outcomes:
  1. Group cohesiveness increases. The group becomes more closely knit; its members show greater loyalty.
  2. The group becomes task-oriented. Group climate changes from informal to task-oriented in order to deal with the external threat.
  3. Leadership becomes more directive. As the group becomes more task-oriented, the leader becomes more authoritarian.
  4. Organizational structure becomes more rigid. Authority and responsibility relationships among and between members become more clearly defined.
  5. Group unity is stressed. The group demands increasing loyalty and conformity from its members
Negative Effects: Prolonged group conflicts cause the following changes in relationship between groups:
  1. Groups become antagonistic/hostile toward each other. Each group sees the other as an enemy who interferes with its goal-oriented behavior.
  2. Perceptions are distorted. Each group develops positive perceptions about its own group and negative perceptions toward the other.
  3. Communication ceases to exist. When in conflict members of one group avoid interaction with members of the other. If they are forced to interact, they tend to show hostility and aggression towards each other.
  4. Groups apply a double standard. Each group clearly sees all the vicious acts of the other party while remaining blind to the same acts performed by their own group.
Potential Benefits of Intergroup Conflicts: To Sum up, we can observe below positive benefits
  1. Conflict clarifies the real issue. When people of groups express their concerns and differences, it helps sharpen the real issue involved in a problem. Without conflict, many organizational problems go unnoticed and remain unresolved.
  2. Conflict increases innovation. Conflict generates a greater diversity of ideas and viewpoints. Such a diversity can stimulate innovation in organizational practices.
  3. Intergroup conflict solidifies the group. When members of a group are faced with an external enemy, they tend to work together more closely to deal with it. A manager may use this new cohesion to reduce internal conflicts.
  4. Conflict serves as a cleansing agent. Conflict can provide an outlet through which organizational members can ventilate their feelings without damaging organizational functioning.
  5. Conflict resolution solidifies intergroup relationships. Once group conflict is successfully resolved, it can solidify the relationships between groups and it may even make the groups feel closer to each other.