Organisational Conflicts: Consequences and Types

Conflict is a common occurrence in organisations and can take various forms, such as disagreements, hostility, contradictions, or incompatibilities among individuals or groups. It can arise due to differences in values, goals, policies, or the scarcity of resources. According to Robbins, conflict is a deliberate process where one person or unit purposely obstructs another, resulting in frustration and hindrance to the achievement of their goals or advancement of their interests.

Consequences of Organisational Conflicts

Conflicts can have both positive and negative consequences for an organisation:

Positive Consequences of Conflict:

1. Stimulating Change: Conflict acts as a catalyst for change in organisations. It brings attention to problems and highlights the need for change. Conflict forces individuals and groups to understand the issues better and find solutions.
2. Encouraging Creativity and Innovation: When faced with conflict, group members become creative in finding different ways to address the problem. Conflict stimulates their thinking process and can even lead to innovative ideas for improving policies and procedures.
3. Strengthening Group Cohesion: Inter-group conflict can bring groups closer together. When faced with internal conflicts, groups tend to unite and cooperate more. This solidarity helps them face the challenges posed by conflict.
4. Releasing Tension: Conflict provides a healthy outlet for releasing pent-up tensions and frustrations. It allows individuals to express their feelings and negotiate without harming the organisation’s functioning.
5. Testing Abilities: Conflict serves as a test of individuals’ learning and growth. Successfully managing conflict can boost satisfaction and motivation.

Negative Consequences of Conflict:

1. Upsetting Balance: Conflict disrupts the balance within an organisation. The energy spent on conflict can create imbalances between contributions and rewards. It can also create hostility between groups.
2. Increased Tension and Stress: Conflict generates tension and stress, affecting the well-being of individuals. It leads to feelings of anxiety, guilt, and frustration. Cooperation becomes difficult due to suspicion and lack of trust. Conflict can also leave the losing party dissatisfied.
3. Diversion of Energy: Conflict diverts attention away from organisational goals. Individuals may focus more on personal agendas and tactics to win the conflict rather than working towards common objectives. In extreme cases, conflict can lead to destructive actions.
4. Rigidity: Conflict can result in stricter authority and responsibility relationships, making the organisational structure more inflexible. Groups become more focused on tasks, and leadership becomes more directive.

Types of Organisational Conflicts

Conflict within an organisation can occur at the individual level or between multiple individuals. It can arise from divergent goals and the various roles individuals are expected to fulfil. Organisational conflicts can be broadly classified into the following categories:

• Intra-personal conflict
• Inter-personal conflict
• Inter-group conflict
• Inter-organisational conflict

Intra-personal Conflict

This conflict arises within an individual or between two or more individuals. It occurs when an individual faces difficulty in choosing between alternative courses of action. Intra-personal conflict can be caused by divergent goals and multiple roles expected from the individual.

1. Goal Conflict: This type of conflict occurs within an individual. It occurs when an individual faces difficulty in choosing between alternative courses of action. One common form of intra-personal conflict is goal conflict, where an individual must choose among competing goals. There are three subtypes of goal conflict:

• Approach-approach Conflict: This conflict arises when a person must choose between two or more equally appealing goals. Selecting one goal means giving up the others, leading to a challenging decision and for instance, deciding between two equally lucrative job offers.
• Approach-avoidance Conflict: In this conflict, an individual is presented with an alternative that has both positive and negative aspects. They are attracted to the positive aspects while being repelled by the negative aspects. For example, being offered a well-paid job in a location they dislike, creates a dilemma.
• Avoidance-avoidance Conflict: This conflict occurs when a person must choose between two undesirable goals, both of which have negative aspects. It’s a situation where neither option seems appealing. For instance, disliking a current job but finding the alternative of resigning and searching for a new job equally unattractive.

2. Role Conflict: Role conflict arises when there are conflicting expectations placed on an individual in a specific position. It occurs when the expectations of a role are materially different or contradictory, making it challenging to fulfil one expectation without neglecting others. Role ambiguity, which arises from unclear duties and responsibilities, can also contribute to role conflict. Here are the different forms of role conflict:

• Person-role Conflict: This conflict occurs when a person is asked to perform a job that goes against their values. For example, being asked to engage in unethical practices that contradict one’s values.
• Inter-role Conflict: Inter-role conflict arises when an individual is confronted with multiple and conflicting roles. For instance, having to make a decision that is unfavourable to workers while serving as a member of a works committee.
• Intra-sender Role Conflict: This conflict occurs when a person is assigned a job for which they lack the necessary capability or when there is insufficient time and resources to complete the task.
• Inter-sender Role Conflict: Inter-sender role conflict arises when different sources provide conflicting role expectations. For example, being asked to follow accounting practices that differ from the professional standards set by the relevant institute.

Inter-personal Conflict

Inter-personal conflict occurs between individuals or groups within an organisation. It arises when there are differences in opinions, values, or interests among individuals. This type of conflict can be between peers, supervisors and subordinates, or among team members.

1. Personality Differences: Some individuals may find it challenging to establish cooperative relations with others due to differences in their personalities.
2. Perceptions: Conflicts can arise when individuals from diverse socio-cultural backgrounds hold different perceptions, leading to disagreements, especially regarding task-related matters.
3. Clash of Values and Interests: Differences in personal values and interests can create misunderstandings and conflicts between individuals. Varied perspectives on ethical considerations or strategic decisions may contribute to such conflicts.
4. Power and Status Differences: When there is an unequal distribution of power and status within a group or organisation, conflicts may arise. Individuals with higher positions may exert control or give orders that conflict with the opinions or interests of those with lower positions.
5. Scarcity of Resources: Interpersonal conflicts can emerge when individuals compete for limited resources, such as budget allocations, promotion opportunities, or access to essential tools or equipment.

Inter-group Conflicts

Inter-group conflict refers to conflicts that arise between different groups within an organisation. It occurs when there are competing goals, limited resources, or differences in power and authority between groups. This type of conflict can be detrimental to collaboration and coordination within the organisation.

1. Divergent Goals and Interests: Conflict arises when the goals and interests of two or more groups are incompatible. For instance, conflicts often arise between labour and management when labour demands higher wages, potentially impacting the profitability desired by management. Additionally, unclear boundaries and reward systems based on group performance can further exacerbate goal incompatibility.
2. Task Interdependence: Conflict potential increases when groups rely on each other for resources or information. If one group’s work is dependent on another group’s completion, conflicts may emerge if the dependent group fails to meet expectations.
3. Limited Resources: When multiple groups compete for limited resources like funds, personnel, information, or power, conflicts arise as each group strives to secure a larger share of the available resources.
4. Collaborative Decision-making: Conflicts can arise during joint decision-making processes when groups have access to different information sources, communication channels suffer from leaks or blockages, or groups employ varying techniques for processing information.
5. Dealing with Uncertainty: Interactions between organisations and their environments often entail uncertainties. Conflicts may arise when one group establishes rules or guidelines that contradict the expectations or preferences of other groups, such as when the accounting department enforces travel expense rules that clash with the marketing department’s expectations.
6. Attitudinal Differences: Conflicts can stem from attitudes of distrust, secrecy, or closed communication held by members of different groups. These attitudinal disparities can give rise to aggressive behaviours or strained relationships.
7. Organisational Ambiguity: Conflict can result from competition between groups for new responsibilities or when there is a lack of clarity regarding job roles and communication issues like noise, distortion, omission, or overload.
8. Managing Change: Introducing organisational changes, such as mergers, can trigger inter-group conflicts due to power struggles and differences in organisational culture and practices.
9. Communication Challenges: Each group may develop its own specialized vocabulary or jargon, hindering effective communication and mutual understanding between groups.

Inter-organisational conflict

Inter-organisational conflict refers to conflicts that arise between different organisations or entities. These conflicts occur when there are disagreements, tensions, or competition between organisations that can impact their relationship and interactions. Inter-organisational conflicts can arise due to various reasons, including:

1. Competition for Resources: Organisations often find themselves in competition for limited resources such as funding, customers, market share, or skilled personnel. This competition can lead to conflicts as organisations strive to gain an edge over one another.
2. Conflicting Interests: When organisations have divergent goals, objectives, or interests, conflicts can emerge. For instance, two organisations operating in the same industry may have different strategies or business models, resulting in competition and conflicts.
3. Power Dynamics: Imbalances in power and influence among organisations can give rise to conflicts. Larger or more influential organisations may exert control or dominance over smaller counterparts, leading to tensions and disputes.
4. Contractual or Agreement Disputes: Organisations frequently enter into contracts or agreements with one another for various purposes, such as partnerships, joint ventures, or supply chain relationships. Conflicts may arise when there are disagreements or breaches of these contractual arrangements.
5. Differences in Organisational Culture: Each organisation possesses its own set of values, norms, and ways of operating. Conflicts can arise when organisations with contrasting cultures collaborate or interact, as differences in communication styles, decision-making processes, or work approaches come to the forefront.
6. Misaligned Interests or Strategies: Organisations may have differing priorities, strategies, or approaches to conducting business. When these differences are not effectively managed or aligned, conflicts can emerge, impeding cooperation and collaboration.
7. External Factors: Changes in the external environment, such as shifts in market conditions, regulatory requirements, or technological advancements, can create conflicts between organisations as they navigate new circumstances or vie for opportunities.