Communication is both the main cause of business conflict and the remedy for conflict at the same time.
Therefore, business communication and conflict resolution skills must be learned by business managers. Otherwise, poor business communication will drive conflict even further creating a negative spiral of misunderstandings and hostility.
Factors influencing conflict outcomes
It is important to note that the specific outcomes will depend on several factors:
- Nature of the conflict. Is it a minor disagreement over strategy or a major dispute over ethics?
- Communication style of the parties involved. Are they willing to listen to each other and work towards a solution?
- Presence of mediation or intervention. Can a neutral third party help facilitate a constructive resolution?
- Overall organizational culture. Does the company have a history of successful conflict resolution?
Possible outcomes of business conflict
Business conflict can have a wide range of outcomes for both parties involved, depending on the nature of the conflict, the way it’s handled, and the willingness of each side to find a solution.
In reality, the approach taken by employees and the employer to deal with workplace conflict largely depends on those concern for their own outcomes and that of others.
In general, there are five possible outcomes to be considered:
- AVOIDANCE. Low concern for the outcome for both parties party simply means that there will be avoidance of the issue.
- SURRENDER. High concern for the outcome for others and low concern for self means surrendering. This will lead to a win situation for the other party.
- COMPROMISE. Moderate concern for the outcome for both parties party simply means that there will be some sort of compromise.
- COMPETE. High concern for the outcome for self and low concern for other means competing. This will lead to fighting for a win-only outcome.
- COLLABORATION. High concern for the outcome for both parties simply means that there will be to collaboration (cooperation) to find a mutually beneficial solution.
Most business researchers believe that high concern for the outcome of both parties will lead to increased efforts to find a mutually beneficial resolution. Collaboration of both parties of the business conflict will lead to the most satisfactory result.
However, it is important to note that each strategy of conflict resolution will be appropriate in different circumstances, at different times.
Collaboration through collective agreements as a desirable outcome of conflict
Collective agreements, or partnerships, between a business and a trade union are increasingly common.
There are two types of collective agreements including:
- Substantive agreements. Concerned with terms and conditions of employment.
- Procedural Agreements. Covers procedures on how parties negotiate over redundancy, dismissal, retirement, promotion, etc.
For a success of collective agreements, the following factors should be met:
- Tradition of stable industrial relations.
- Campaigning and socially aware trade union.
- Well-trained and committed trade union representatives.
- People-friendly communications.
- Management and trade unions commit time.
- A desire on both sides to listen.
Positive and negative outcomes of business conflict
Here is a breakdown of potential outcomes, considering both positive and negative impacts:
A. POSITIVE OUTCOMES:
- Enhanced creativity and innovation. When diverse perspectives and ideas clash constructively, it can spark creative problem-solving and lead to breakthrough solutions neither party considered before.
- Improved communication and relationships. Conflict can force parties to openly communicate their needs and concerns, leading to better understanding and stronger relationships in the long run, especially if handled respectfully.
- Strengthened company culture. Addressing conflict head-on and finding amicable solutions can build trust and collaboration within a company, fostering a more resilient and supportive culture.
- Competitive advantage. If conflict leads to improved products, services, or processes, it can give a company a strategic edge over competitors.
- Compromise and mutual benefit. While not always possible, reaching a compromise can satisfy some of the needs of both parties and prevent further escalation.
B. NEGATIVE OUTCOMES:
- Decreased productivity and morale. Conflict can be draining and time-consuming, diverting attention from core tasks and impacting employee morale and productivity.
- Damaged reputation. Publicly visible conflict can damage the reputation of both parties, impacting customer trust and brand image.
- Financial losses. Depending on the severity of the conflict, it can lead to lost business opportunities, legal fees, and damage to property.
- Broken relationships and potential legal action. Unresolved conflict can lead to severed business relationships, lawsuits, and other legal disputes.
- Escalation and destructive behavior. In extreme cases, conflict can escalate into personal attacks, sabotage, or even violence.
In summary, any unresolved workplace conflict can have serious damaging consequences both for the business organization as well as the workers. It can result in dissatisfaction, unhappiness, physical or emotional withdrawal, resignation from the job, break-down of personal relations, aggression or even physical and mental violence.
