A STUDY

OF
CONFLICT MANAGEMENT
IN
HEG Ltd

Content
1. Introduction
2. Company profile
3. Literature review
4. Rationale of Study
5. Objective of study
6. Research methodology
7. Data analysis and interpretation
8. Finding
9. Conclusion
10.

Limitation

11.

Suggestions

12.

Reference

13.

Appendix
Questionnaire

INTRODUCTION

INTRODUCTION
Conflicts occur when people perceive that, as a consequence of a disagreement, there is a
threat to their needs, interests or concerns. Although conflict is a normal part of organization
life, providing numerous opportunities for growth through improved understanding and
insight, there is a tendency to view conflict as a negative experience caused by abnormally
difficult circumstances. Disputants tend to perceive limited options and finite resources
available in seeking solutions, rather than multiple possibilities that may exist 'outside the
box' in which they are problem-solving.

A conflict is more than a mere disagreement - it is a situation in which people

perceive a threat to their well-being.

Participants in conflicts tend to respond on the basis of their perceptions of the

situation, rather than an objective review of it. People filter their perceptions through
their values, culture, beliefs, information, experience, gender, and other variables.
Conflict responses are both filled with ideas and feelings that can be very strong and
powerful guides to our sense of possible solutions.

As in any problem, conflicts contain substantive, procedural, and psychological

dimensions to be negotiated. In order to best understand the threat perceived by those
engaged in a conflict, they need to consider all of these dimensions.

Conflicts are normal experiences within the work environment. They are also, to a
large degree, predictable and expectable situations that naturally arise as they go about
managing complex and stressful projects in which they are significantly invested.
Develop procedures for identifying conflicts likely to arise, as well as systems
through which they can constructively manage conflicts, they may be able to discover
new opportunities to transform conflict into a productive learning experience.

Creative problem-solving strategies are essential to conflict management. To transform the

situation from one in which it is 'my way or the highway' into one in which they entertain
new possibilities that have been otherwise elusive.

1.1 MEANING AND DEFINITION

Conflict may be defined as a struggle or contest between people with opposing needs, ideas,
beliefs, values, or goals. Teams conflict is inevitable; the results of conflict are not
predetermined. Conflict might escalate and lead to non-productive results, or conflict can be
beneficially resolved and lead to quality final products. Therefore, learning to manage
conflict is integral to a high-performance team. Although very few people go looking for
conflict, more often than not, conflict results because of miscommunication between people
with regard to their needs, ideas, beliefs, goals, or values.

FEATURES
Conflict may be understood as collision or disagreement. The conflict may be within an
individual when there is incompatibility between his or her own goals or events, may be
between two individuals, when one does not see eye to with another, and in the process tries
to block or frustrate the attempts of another or between two groups in an organization.
Conflict is defined as the struggle between incompatible or opposing needs, wishes, ideas,
interests, or people. Conflict arises when individuals or groups encounter goals that both
parties cannot obtain satisfactorily. Though intra-personal conflict is not made explicate in
the definition, the first sentence implies intra-individuals conflict as well.
Conflict may be cognitive or affective. Cognitive conflict refers to differences in perspectives
or judgments about issues. Affective conflict is emotional and directed at other people.
Affective conflict is likely to be destructive because it can lead to anger, bitterness, goal
displacement and poor decisions. Cognitive conflict, on the other hand, can air legitimate
differences of opinion and develop better ideas and solutions to problems. Conflict needs to
be cognitive and affective.

1.2 TYPES OF CONFLICT

(FUNCTIONAL AND DYSFUNCTIONAL)

FUNCTIONAL CONFLICT:

It refers to confrontation between two ideas, goals and parties that improve employees and
the organizations performance. Well-managed conflict helps workers anticipate and solve
problems, feel confident, strengthen their relationships, and be committed to the organization.
Constructive conflict is crucial for effective functioning of organizations. Specifically,
potential benefits of conflict are the following:

Conflict increases awareness of what problems exist, who is involved, and how to
solve the problem.

Conflict motivates organizational members to consider problems.

Conflict promotes change. Persons are more aware of injustices, inefficiencies, and
frustrations, and see the need to correct them.

Conflict enhances morale and cohesion.

High quality decision result when persons express their opposing views and
perspectives. They share their information and check each others reasoning to
develop new decisions.

Conflict stimulates interest and creativity. Being in conflict often sparks curiosity and
stimulates viewing problem from several perspectives and combining the best of these
positions to form a creative solution. Conflict exists as peoples to learn about what
makes them and others angry, frustrated and willing to fight.

Conflict provides a forum for all members of the organization to be self-critical, and
to be critical of the organization as a whole.

Maximum organizational performance occurs some where between these two extremes,
where there is an optimal level of conflict. There is sufficient conflict to stimulate new ideas
and a creative search for solutions to problems.
Conflict inevitable in organizations and also desirable. But without and effective
means for handing it, conflict can tear relationships apart and interfere with the exchange of
ideas, information and resources in groups and between departments. Dysfunctional conflict
hinders and prevents organizational goals from being achieved.

1.3 THE PROCESS OF CONFLICT

Stage 1 - Latent Conflict

When two or more parties need each other to achieve desired objectives, there is

potential for conflict. Other antecedents of conflict are interdependence, different goals, and
ambiguity of responsibility. They do no automatically create conflict, when they exist-they
make it possible. Latent conflict often arises when a change occurs. Conflict is likely to be
caused by a budget cutback, a change in organizational directions, a change in personal goals
or the assignment of a new project to an already overloaded team.

Stage 2 - Perceived Conflict

This is the stage at which members become aware of a problem. Incompatibility of

needs is perceived and tension begins as the parties begin to worry about what will happen.
But no party feels that it is being overtly threatened.

Stage 3 Felt Conflict

At this stage parties become emotionally involved and begin to focus on differences

of opinion and opposing interests-sharpening perceived conflict. Internal tension and

frustrations begin to crystallize around specific, defined issues, and people begin to build an
emotional commitment to their position.

Stage 4 - Manifest Conflict

At this stage parties engage in actions that help achieve own objectives and thwart

those of others. Conflict behaviors vary from the subtle, indirect and highly controlled forms
of interference to direct, aggressive, violent and uncontrolled struggle. At the organizational
level, strikes or lock-outs are the result.

Stage 5 - Conflict Outcome

The conflict finally results in an outcome, which may be functional or dysfunctional.
If handled well, the result is functional conflict. If mishandled, the consequence is
dysfunctional conflict. As conflict proceeds through the stages, resolution becomes more
difficult. The parties become more locked into their positions and more convinced that
conflict is win-lose situation. It is usually easier to achieve win-win outcomes when the
conflict is recognized early before frustration and negative feelings set in.

1.4 LEVELS OF CONFLICT

There are four levels of conflict in the organization life:

1. Intra-Individual conflict
2. Inter-Individual conflict
3. Intra-Group conflict
4. Inter-Group conflict

INTRA INDIVIDUAL CONFLICT

Intra individual conflict with in an individual. Infra-individual conflict arises from

frustration, numerous roles which demand equal attention but is not always possible to
devote, goals having both negative an positive aspects, cognitive dissonances, and neurotic
tendencies.

INTER PERSONAL CONFLICT

Inter-individual conflict occurs between two individuals in an organization. It arises mainly

because of differences in perception, temperaments, personalities, values systems, sociocultural factors, and role ambiguities. Transactional Analysis (TA), Johari Window, Stroking,
and Life Positions.

INTRA-GROUP CONFLICT
Intra-group conflict refers to disputes among some or all of a groups members, which often
affect the groups performance as happened in the opening case. Family run business can be
especially prone to severe intra-group and other types of conflicts. These conflicts typically
become more intense when an owner-founder approaches retirement, actually retires or dies.

INTER- GROUP CONFLICT

Inter-group conflict also called organizational conflict, refers to the conflict between groups,
departments, or sections in an organization. Conflict between groups is frequent and highly
visible. The reasons for inter-group conflict are many. The most important of them are
explained below.

Task Inter-dependence

Task Ambiguity

Goal Incompatibility

Competitive for Limited Resources:

Competitive Reward Systems

Line and Staff

Intra-personal and Inter-personal Conflict

INTER-PERSONAL CONFLICT

Inter-individual conflict occurs between two individuals in an organization. It arises mainly

because of differences in perception, temperaments, personalities, values systems, sociocultural factors, and role ambiguities. Transactional Analysis (TA), Johari Window, Stroking,
and Life Positions.

Transactional Analysis:
When two people interact with each other there results a social transaction Analysis of
the social transactions is called Transactional Analysis (TA). The study of moves people
make in their dealings with each other and is based on the idea that peoples interactions
resemble moves in games. TA has found its acceptance everywhere because of several
advantages associated with it. The advantages are:

The bases of TA are simple to learn.

The validity of TA is demonstrable.

It provides a means for reducing the amount of bad feelings experienced by an

individual.

It increases efficient use of time.

Helps promote effective communication.

It is applicable at home as it is at work.

It reinforces and implements other management development activities, including

communication, leadership, brainstorming, and management by objective, job
enrichment, conflict resolution, and the like.

TA has certain limitations which are not to be ignored they are:

Few scientific studies of its outcome are available.

Ego states, basic to understand and utilize Ta, are difficult to define

(Although easy to teach and demonstrate operationally).

If inappropriately applied, Ta tends to encourage amateur psychologising.

TA jargon may lead to more cuteness than insight into human encounter.

It can be used as a put down, or a discount, in inter-personal relations.