Page 14 - DMGT519_Conflict Management and Negotiation Skills

Conflict Management and Negotiation Skills

Notes chance for workers to expand their capabilities, and the introduction of creativity into thoughts
about organizational problems. Thus, following are the different steps of managing a conflict:
1. Understanding and Appreciating Conflict

2. Eliminating and Avoiding Conflict
3. Reducing Negative Effects of Conflict
4. Managing Conflicts for positive results - for Individual, Team and Organization.

1.3.1 Functional (Positive) Conflict

It supports the goals of group and improves its performance whereas dysfunctional conflict
hinders group performance.
Positive conflict serves the following functions:
1. Analytical thinking,
2. Group cohesiveness,

3. Competition,
4. New ideas
5. Challenge,

6. Creativity
7. Stimulation for change,
8. Identification of weakness,
9. Awareness,
10. Quality decisions,

11. Release of tension etc.

1.3.2 Dysfunctional (Negative) Conflict

It hinders group performance, High employee turnover, tensions, Dissatisfaction, climate of
distress and confrontation. According to one research, the hidden financial cost of an organization
afflicted by conflict – “ it is estimated that over 65 per cent of performance problems result from
strained relationships between employees and not from defects in individual employees’ skill
or motivation”. The cost of this conflict is borne directly by the people within the organization,
in the stress of strained working relationships and any ensuing complaints and grievances. Let
a situation go unchecked and you can add the cost of compensation and terminations.
Positive Consequence
1. Lead to new ideas

2. Stimulates creativity
3. Motivates change
4. Promotes organisational vitality

5. Helps individuals and groups establish identities
6. Serves as a safety valve to indicate problems.

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