Functional and Dysfunctional Conflicts in Business

Reasons for Conflict Within an Institution or Organization

As objective factors of conflicts, it is customary to single out specific situations that arise in the process of social communication of people, which become the causes of a clash of their interests, attitudes, and opinions. Currently, there are many objective factors of conflict, the most common of which are:

  • The natural clash of interests of different individuals in the process of their life.
  • Weak elaboration of legal and other mechanisms for regulating emerging social contradictions that arise in the process of interpersonal communication.
  • Features of a lifestyle associated with financial difficulties and large-scale, radical, and rapid changes.

In its formation, perception passes through a set of “filters,” which is performed by values, motives, goals, a person’s worldview, education, professional qualities, social status, culture, and life experience. In addition, perception is influenced by psychological effects that significantly transform the information and impressions of interacting subjects (Ceasar, 2020). Conflicts further complicate this process and distort perception, which, in turn, is a significant obstacle in resolving a problematic situation.

The Role of Functional Conflict

Functional conflict leads to optimistic consequences for individuals, groups, or organizations. On the positive side, the conflict is able to reveal the existence of a problem, and this makes it possible to solve it. Due to the conflict, all possible solutions to the problem can be subjected to careful consideration and repeated revision, which guarantees the accuracy of the implementation of the designed plan (Ceasar, 2020). A conflict can increase the amount of information used to make a decision. Moreover, it offers new opportunities for creative work performance by an individual, a group of people, or the entire organization. An effective manager is able to contribute to the emergence of constructive conflict in situations where a sense of satisfaction with the existing state of affairs hinders the necessary changes and evolution. Functional conflict is a necessary stage in the evolution of an integral structure during the transition to a new level of development. Therefore, the subject of contradiction in a functional conflict is functional interrelationships and problems in the development of an integral organization.

The Role of Dysfunctional Conflict

Dysfunctional conflict, or destructive conflict, leads to losses at the level of an individual, group, or organization. It disrupts the group’s cohesion, generates hostility between people, and creates a general negative environment at work. This happens, for example, when two employees are unable to work side by side due to interpersonal differences or when they are unable to act because they cannot agree on the goals of their group. Destructive conflicts of this type can reduce work productivity and a sense of satisfaction from doing work and contribute to an increase in absenteeism and staff turnover (Fattah, 2019). Managers should be very wary of dysfunctional conflicts and quickly take measures aimed at preventing, eliminating, or at least minimizing their negative consequences. In addition, destructive conflict is not able to solve the most important issues. Considering destructive behavior in the context of work activities, employees face a significant decrease in motivation and discipline, as well as a deterioration in the emotional and social climate within a social group.

Functional Conflict Resolution Strategy

At the stage of a conflict situation, the most effective strategy of the council is when the leader first assesses the position of each employee concerning the problem and then organizes a meeting at which they provide an opportunity for all members of the team to express their opinion in a favorable atmosphere. In the conduct of such a meeting, specific rules should be followed. It is worth highlighting a detailed explanation and description of the work requirements, while the head should clearly explain what results in the firm expects from a particular employee (Oreg & Berson, 2019). Functional conflict contributes to favorable changes in the organization. Therefore, the primary strategy for the leader is to adhere to the creation of clear rules and instructions that reflect the fundamentals and principles of the company’s activities. Thus, the manager will be able to give employees a clear understanding of which way the organization is moving (Oreg & Berson, 2019). In addition, awareness of their capabilities will allow employees not to go to the stage of destructive conflict.

Dysfunctional Conflict Resolution Strategy

At the stage of the conflict, that is, in a situation of active confrontation between the parties, the leader needs to maintain a neutral position and not get involved in the conflict. Frequently, the leader, hoping for authority, objectivity, and power, intervenes in the conflict, thereby strengthening the position of one of the parties (Oreg & Berson, 2019). The aggrieved party in such a situation begins to seek support from other team members, which can lead to the escalation of the conflict and its transition into an expanded conflict. In order to prevent this from happening, the manager should show consistency: prepare the team itself or its representatives to develop a particular opinion and identify positions (Oreg & Berson, 2019). If the manager knows the specifics of conflict management and is able to translate destructive confrontations into constructive ones, this gives positive results for the team. Consequently, the primary strategy is an open discussion of issues, allowing the organization to make optimal decisions and maintaining a fruitful atmosphere in the team.

References

Ceasar, J. (2020). Conflict management: A Win-Win strategy for organisational effectiveness in the changing global business environment. International Journal of Scientific Research and Engineering Development, 3(4), 136–146.

Fattah, A. (2019). Conflicts: Their types, and their negative and positive effects on organizations. International Journal of Scientific & Technology, 8(8), 10–13.

Oreg, S., & Berson, Y. (2019). Leaders’ impact on organizational change: Bridging theoretical and methodological chasms. Academy of Management Annals, 13(1), 272–307.

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