Managing Organizational Conflict

and
Creativity

By
Dela Cruz, Ricky F.
Pallado, Nikka Therese P.
BS Computer Science

Submitted to
Prof. Ruben Gamala

1. Introduction
The ability to manage a conflict is undoubtedly one of the most important skills a
manager needs to posses.
Average manager spends approximately 20% of his or her time dealing with conflict.
(a study by American management association)
The importance of conflict management can be assured by its rating as being more
important than decision making, leadership or communication skills.
Of all the skills required for an effective team management, none is more important
than handling conflicts that inevitably arises among the members.
2. What is Conflict?
Conflict refers to conceived incompatible differences that result in interference or
opposition.
If people perceives that differences exists then a conflict state exists.
Antagonist interaction in which one party attempts to block the intentions or goals of
another.
2.1 Organizational Conflict
Disagreement between two or more organization members.
2.2 Competition
Exists when the goals of the parties are incompatible but the parties cannot
interfere with each other.
2.3 Cooperation
Occurs when two or more parties work together to achieve mutual goals.
3. Three views of conflict
Attitudes toward conflict in organizations have changed/evolved through years.
3.1 The traditional view
Argues that the conflict must be avoided, that it indicates malfunctioning
within the organization.
Assumes that conflict is bad and would always have a negative impact on the
organization.
Synonymous with violence, destruction and irrationality.
Because it is harmful, it must be avoided.

Management is responsible to get rid of the conflict.

Late 19th century until mid 1940s
3.2 Human relations view
Argues that conflict is a natural and inevitable outcome in any organization
and it need not be evil but, rather, has the potential to be a positive force in
contributing to an organizations performance.
Because it is inevitable, the human relations approach advocated acceptance
of conflict.
Rationalized the existence of conflict.
Conflict cannot be eliminated.
It may even benefit the organization.
Late 1940s through the md-1970s.
3.3 Interactionist view
Argues that conflict does not only positive but is absolutely necessary for an
organization.
Encourages conflict.
Contribution of this approach is that it encourages managers to maintain an
ongoing minimum level of conflict enough to keep units viable, self-critical and
creative.
4. Functional and Dysfunctional Conflict
The interactionist view does not claim that all conflict are good, instead, some
conflicts support the goals of the organization, these are functional
conflicts(constructive form). Dysfunctional conflicts(destructive form) are those
that prevent the organization form achieving their goals.
Is inherently neither functional nor dysfunctional. It has the potential for improving
organizational performance depending on how it is managed.
Example Stoner, Wankel (p. 381)
Relationship between organizational conflict and performance illustration

There is an optimal, highly functional level of conflict at which performance is

at maximum.
When the level of conflict is too low, the organization changes too slow to
meet the new demands being made upon it, and its survival is threatened.
Contrary, when the level of conflict is too high, chaos and disruption
endangered the organizations chances of survival.
5. Types of Conflict
According to James Stoner, there are five types of conflict possible in organizational
life:
5.1 Conflict within the individual
This conflict occurs when an individual is uncertain about what work he or she
is expected to perform, when some demands of the work conflict with other
demands, or when the individual is expected to do more than he or she feels capable
of doing. This type of conflict often influences how an individual responds to other
types of organizational conflict.
5.2 Conflict between individuals in the same organization
This conflict is frequently seen as being caused by personality differences.
More often, such conflicts erupt from role-related pressures (as between managers
and subordinates) or from the manner in which people personalize conflict between
views.
5.3 Conflict between individuals and groups
This conflict is frequently related to the way individuals deal with the
pressures for conformity exposed to them by their work group. For example, an
individual maybe punished by his or her work group for exceeding or falling behind
the groups productivity norms.
5.4 Conflict between groups in the same organization
This is type has two common areas of intergroup conflict:
Line-staff conflicts
A common form of organizational conflict that occurs between

line and staff members. Line and staff members, like members of the
other differentiated units in the organization, have different time
horizons, goals, interpersonal orientations, and approaches to
problems. These differences enable line and staff members to
accomplish their respective tasks effectively, but the differences also
increase the potential for conflict between them.
Labor-management conflicts
A form of organizational conflict that occurs between
management and labor. The potential for conflict here always exists,
but escalates especially when a management-union contract is about
to expire, thus requiring renegotiation.

5.5 Conflict between organizations in the economic sphere

This conflict is considered as inherent and desirable form of conflict and is
often called competition. Such conflict has been recognized to lead to the
development of new products, technologies, and services, lower prices, and more
efficient utilization of resources. Government laws and regulatory agencies attempt
to promote functional conflict (through antitrust legislation, for example) and
manage the dysfunctional aspects of such conflicts (such as false advertising and
industrial espionage). One controversial trend of the 1980s has been to deregulate
heavily regulated industries (airlines, banks and railroads, for example0 to spur
economic competition in those industries.

6. Dynamics and Consequences of Organizational Conflict

Muzafer and Carolyn Sherif together with their colleagues, divided the boys camp
into two groups, stimulated intense conflict between the two and observed the changes of
behaviors that occurred. Findings were:
6.1 Increased Cohesion
The rise in cohesion stimulates greater efforts, but the pressures towards
conformity that develop may discourage creativity.
6.2. Rise of Leaders
When conflict becomes intense, those individuals who can most contribute to
victory become more important.
6.3. Distorted Perceptions
Group members perceptions of their own and the opposing groups become
distorted.
Emphasizes those of competitors.
6.4.

Increase in Negative Stereotypes

The differences between the groups are seen as greater than they actually
are.
The differences within each group are seen less than they actually are.
6.5. Selection of Strong Representatives
Each group selects representatives which they think will not cave into
pressure with the other group.
6.6. Development of Blind Spots
Competitve struggle adversely affects the rivals ability to grasp and think
accurately about their respective positions.
The Conflict Dynamic
Different perspective: view of the battle itself.
If the conflict is badly managed, the specific issue will give way to
more general issues.
Functional and Dysfunctional Consequences
There are different consequences for winners and losers.
Leaders of the winning group normally strengthen their hold.
Winners may rest on their laurels.
Loser groups tend to split into factions. They are also amenable to new ways
of behaving and operating.
Old leaders are challenged by new aspirants to leadership.
Less intense conflict can have a more constructive impact. New leaders may
emerge.
Factors to determine if a given dispute is a functional or dysfunctional
conflict

Level of Conflict

Moderate levels have greater potential for desirable outcomes than

high levels.
Such high levels of conflict are almost always destructive to the
organization.

Organizational Structure and Culture

Conflict can call attention to the problem areas of an organization and

can lead to more effective achievement of their goals.
Resisting change can result in unrelieved conflict.
The more rigid is the structure and culture of an organization, the less
beneficial conflict will be.
How conflict is managed

7. Approaches in Managing or Resolving of Conflict

There are three forms of conflict management according to James Stoner:
7.1 Conflict Stimulation Methods
The attitude of top managers is of critical importance in encouraging and
controlling conflicts. Conflict stimulation methods include:
Bringing in outsiders
A frequently used method of shaking up a stagnant unit or organization
is to bring in managers whose backgrounds, values, and styles vary
significantly from the norms.
Going against the book
Excluding individuals or groups from communications that they normally
receive, or adding new groups to the information network, may
redistribute power and thus, stimulate conflict.
Restructuring the organization
Reorganizing work teams and departments so that they will have new
members or new responsibilities and even though this may create a period
of uncertainty and readjustment, conflicts that arises during the period
may lead to improved methods of operations as members adjust to new
circumstances.
Encouraging competition
Fostering a competition that will be maintained at a high level may lead to
a productive conflict as groups struggle to outdo each other.
Selecting appropriate managers
Authoritarian managers who do not allow opposing viewpoints to be raised
often make their work groups passive. Other groups may need an active
manager to shake them out of their lethargy.
7.2 Conflict Reduction Methods

The first effective approach

Researchers substituted superordinate (superior) goals that both groups
accepted for the competitive goals that kept them apart.
The second effective approach
Unite the group to meet a common threat or enemy.

7.3 Conflict Resolution Methods

Dominance and Suppression

Dominance and suppression methods usually have two things in common:

1. They repress conflict, rather than settle it, by forcing underground

2. They create a win-lose situation in which the loser, forced to give way
to higher authority or greater power, usually winds up disappointed
and hostile.
Suppression and dominance can occur in the following ways:

Forcing
Smoothing
Avoidance
Majority Rule

Integrative Problem Solving

Intergroup conflict is converted into a joint problem-solving situation that
can be dealt with through problem-solving techniques. There are three
types of integrative conflict resolution methods:
1. Consensus
The conflicting parties meet together to find the best solution to their
problem, rather than trying to achieve a victory for either side.
2. Confrontation
The opposing parties state their respective views directly to each other.
The reasons for the conflict are examined and methods of resolving it
are sought.
3. Use of superordinate goals
If the higher-level goal that is mutually agreed upon incorporates the
conflicting parties lower-level goals, then the establishment of
superordinate goals can be a conflict resolution method.
Striving for a superordinate goal not only resolved the major conflict
between two departments but also fostered intergroup cohesiveness.

References
Daft, Richard L. 2003. Management, 6th Edition
Robbins, S.P. 1991. Management. 3rd Edition. Prentice-Hal Inc., New Jersey
Stoner, J., & Wankel, C. 1987. Managing Organizational Conflict and Creativity. In
Management, 3rd Edition, (pp. 378-404). Prentice-Hall International.