Which of the following is a negative consequence of conflict in an organization?

The Greek philosopher Heraclitus was onto something when he professed, "The only thing constant is change." Resistance to change can bring about conflict, but conflict also is inevitable when an organization includes diverse people with individual work habits, styles and personalities. Unresolved conflict often produces negative results, regardless of whether the conflict is between two individuals, between staff and leadership or among workplace teams.

Tip

Conflict at work makes employees feel insecure and this can negatively affect their productivity and the way they deal with customers.

Employees Stop Working or Stay Home

Unresolved conflict threatens the psychological safety of employees, management and the organization. Paul Santagata, Head of Industry at Google, spearheaded the industry leader's research on high-performing teams, and discovered that psychological safety is a trait that individuals in these teams share. Psychological safety in the workplace means that you feel comfortable taking risks for your team's success, and that you don't feel that you will be disciplined or berated for taking those risks.

Where workplace conflict exists, people are typically in a defensive mode and feel the need to protect themselves for fear that they will be disciplined or punished for their actions. On an individual level, workplace conflict can result in the absence of psychological safety. The absence of psychological safety then can result in poor performance and job dissatisfaction. For the organization, the effects may be absenteeism, diminished productivity and lack of employee engagement.

Customers Receive a Poor Service and May Look Elsewhere

Workplace conflict can ultimately cause the organization's customer base to crumble. Employees who are at odds with each other may spend more time creating ways to fight back or argue their point instead of focusing on the quality of their work. Poor quality – whether it's a service or product – is guaranteed to send customers to a competitor. In addition, customers who sense conflict may leave with the impression that the company isn't a good place to work. That kind of impression might call into question the organization's principles. Is the organization not a good place to work because the managers are ineffective or because they engage in shady business practices?

Conflict Destroys the Company Reputation

Questions about management and their business practices may be warranted if word on the street is that an organization and its employees are continually engaged in conflict. Companies that are unsuccessful at resolving workplace conflict or that turn a blind eye when conflict exists are putting the organization's reputation at risk. An organization with a poor reputation is unable to recruit talented and motivated job candidates, and current employees likely won't dispel industry gossip by showing how proud they are to be a part of the organization.

Disputes Eat Into the Bottom Line

Workplace conflict can be expensive to resolve and costlier to ignore. When conflict rises to the point that employees or groups of employees are seeking legal remedies, hiring lawyers to represent the company's interests and practices can be an unanticipated expense that has a serious effect on the organization's financial standing. And it's not just lawyers' fees that add up. Settling claims to avoid costly litigation can take a significant portion of the organization's profits. The distraction and loss of productivity on the part of employees who do the legwork to support the legal case (for example, researchers, administrative staff and executives) result in expenses that are difficult to quantify, but definitely impact the company's bottom line. If the company is already losing business, productivity and talent, the effects can be devastating. For publicly held companies, these costs and damage to the company's reputation can cause stock prices to plummet.

Learning Objectives

  1. Understand different causes of conflict.
  2. Understand jobs at risk for conflict.
  3. Learn the outcomes of conflict.

There are many potential root causes of conflict at work. We’ll go over six of them here. Remember, anything that leads to a disagreement can be a cause of conflict. Although conflict is common to organizations, some organizations have more than others.

Figure 10.5 Potential Causes of Conflict

Which of the following is a negative consequence of conflict in an organization?

Causes of Conflict

Organizational Structure

Conflict tends to take different forms, depending upon the organizational structure (Jaffe, 2000). For example, if a company uses a matrix
structure as its organizational form, it will have decisional conflict built in, because the structure specifies that each manager report to two bosses. For example, global company ABB Inc. is organized around a matrix structure based on the dimensions of country and industry. This structure can lead to confusion as the company is divided geographically into 1,200 different units and by industry into 50 different units (Taylor, 1991).

Limited Resources

Resources such as money, time, and equipment are often scarce. Competition among people or departments for limited resources is a frequent cause for conflict. For example, cutting-edge laptops and gadgets such as a BlackBerry or iPhone are expensive resources that may be allocated to employees on a need-to-have basis in some companies. When a group of employees have access to such resources while others do not, conflict may arise among employees or between employees and management. While technical employees may feel that these devices are crucial to their productivity, employees with customer contact such as sales representatives may make the point that these devices are important for them to make a good impression to clients. Because important resources are often limited, this is one source of conflict many companies have to live with.

Task Interdependence

Another cause of conflict is task interdependence; that is, when accomplishment of your goal requires reliance on others to perform their tasks. For example, if you’re tasked with creating advertising for your product, you’re dependent on the creative team to design the words and layout, the photographer or videographer to create the visuals, the media buyer to purchase the advertising space, and so on. The completion of your goal (airing or publishing your ad) is dependent on others.

Incompatible Goals

Sometimes conflict arises when two parties think that their goals are mutually exclusive. Within an organization, incompatible goals often arise because of the different ways department managers are compensated. For example, a sales manager’s bonus may be tied to how many sales are made for the company. As a result, the individual might be tempted to offer customers “freebies” such as expedited delivery in order to make the sale. In contrast, a transportation manager’s compensation may be based on how much money the company saves on transit. In this case, the goal might be to eliminate expedited delivery because it adds expense. The two will butt heads until the company resolves the conflict by changing the compensation scheme. For example, if the company assigns the bonus based on profitability of a sale, not just the dollar amount, the cost of the expediting would be subtracted from the value of the sale. It might still make sense to expedite the order if the sale is large enough, in which case both parties would support it. On the other hand, if the expediting negates the value of the sale, neither party would be in favor of the added expense.

Personality Differences

Personality differences among coworkers are common. By understanding some fundamental differences among the way people think and act, we can better understand how others see the world. Knowing that these differences are natural and normal lets us anticipate and mitigate interpersonal conflict—it’s often not about “you” but simply a different way of seeing and behaving. For example, Type A individuals have been found to have more conflicts with their coworkers than Type B individuals (Baron, 1989).

Communication Problems

Sometimes conflict arises simply out of a small, unintentional communication problem, such as lost e-mails or dealing with people who don’t return phone calls. Giving feedback is also a case in which the best intentions can quickly escalate into a conflict situation. When communicating, be sure to focus on behavior and its effects, not on the person. For example, say that Jeff always arrives late to all your meetings. You think he has a bad attitude, but you don’t really know what Jeff’s attitude is. You do know, however, the effect that Jeff’s behavior has on you. You could say, “Jeff, when you come late to the meeting, I feel like my time is wasted.” Jeff can’t argue with that statement, because it is a fact of the impact of his behavior on you. It’s indisputable, because it is your reality. What Jeff can say is that he did not intend such an effect, and then you can have a discussion regarding the behavior.

In another example, the Hershey Company was engaged in talks behind closed doors with Cadbury Schweppes about a possible merger. No information about this deal was shared with Hershey’s major stakeholder, the Hershey Trust. When Robert Vowler, CEO of the Hershey Trust, discovered that talks were underway without anyone consulting the Trust, tensions between the major stakeholders began to rise. As Hershey’s continued to underperform, steps were taken in what is now called the “Sunday night massacre,” in which several board members were forced to resign and Richard Lenny, Hershey’s then current CEO, retired (Jargon, Karnitschnig, & Lublin, 2008). This example shows how a lack of communication can lead to an escalation of conflict. Time will tell what the lasting effects of this conflict will be, but in the short term, effective communication will be the key. Now, let’s turn our attention to the outcomes of conflict.

Outcomes of Conflict

One of the most common outcomes of conflict is that it upsets parties in the short run (Bergman & Volkema, 1989). However, conflict can have both positive and negative outcomes. On the positive side, conflict can result in greater creativity or better decisions. For example, as a result of a disagreement over a policy, a manager may learn from an employee that newer technologies help solve problems in an unanticipated new way.

Positive outcomes include the following:

  • Consideration of a broader range of ideas, resulting in a better, stronger idea
  • Surfacing of assumptions that may be inaccurate
  • Increased participation and creativity
  • Clarification of individual views that build learning

On the other hand, conflict can be dysfunctional if it is excessive or involves personal attacks or underhanded tactics.

Examples of negative outcomes include the following:

  • Increased stress and anxiety among individuals, which decreases productivity and satisfaction
  • Feelings of being defeated and demeaned, which lowers individuals’ morale and may increase turnover
  • A climate of mistrust, which hinders the teamwork and cooperation necessary to get work done

Is Your Job at Risk for Workplace Violence?

You may be at increased risk for workplace violence if your job involves the following:

  • Dealing With People

    • Caring for others either emotionally or physically, such as at a nursing home.
    • Interacting with frustrated customers, such as with retail sales.
    • Supervising others, such as being a manager.
    • Denying requests others make of you, such as with customer service.
  • Being in High-Risk Situations

    • Dealing with valuables or exchanging money, such as in banking.
    • Handling weapons, such as in law enforcement.
    • Working with drugs, alcohol, or those under the influence of them, such as bartending.
    • Working nights or weekends, such as gas station attendants.

Sources: Adapted from information in LeBlanc, M. M., & Kelloway, E. K. (2002). Predictors and outcomes of workplace violence and aggression. Journal of Applied Psychology, 87, 444–453; National Institute for Occupational Safety and Health. (1997). Violence in the workplace. Retrieved November 12, 2008, from http://www.cdc.gov/niosh/violfs.html; National Institute for Occupational Safety and Health. (2006). Workplace prevention strategies and research needs. Retrieved November 12, 2008, from http://www.cdc.gov/niosh/docs/2006-144/.

Given these negative outcomes, how can conflict be managed so that it does not become dysfunctional or even dangerous? We’ll explore this in the next section.

Key Takeaway

Conflict has many causes, including organizational structures, limitations on resources, task interdependence, goal incompatibility, personality differences, and communication challenges. Outcomes of well-managed conflict include increased participation and creativity, while negatives of poorly managed conflict include increased stress and anxiety. Jobs that deal with people are at higher risk for conflict.

Exercises

  1. What are some primary causes of conflict at work?
  2. What are the outcomes of workplace conflict? Which types of job are the most at risk for workplace violence? Why do you think that is?
  3. What outcomes have you observed from conflict?

References

Baron, R. A. (1989). Personality and organizational conflict: Type A behavior pattern and self-monitoring. Organizational Behavior and Human Decision Processes, 44, 281–297.

Bergman, T. J., & Volkema, R. J. (1989). Understanding and managing interpersonal conflict at work: Its issues, interactive processes and consequences. In D. M. Kolb & J. M. Kolb (Eds.), Hidden conflict in organizations (pp. 7–19). Newbury Park, CA: Sage.

Jaffe, D. (2000). Organizational theory: Tension and change. New York: McGraw Hill.

Jargon, J., Karnitschnig, M., & Lublin, J. S. (2008, February 23). How Hershey went sour. Wall Street Journal, pp. B1, B5.

Taylor, W. (1991, March–April). The logic of global business: An interview with ABB’s Percy Barnevik. Harvard Business Review, 69, 90–105.

What are the negative effects of conflict in an organization?

The negative effects of workplace conflict can include work disruptions, decreased productivity, project failure, absenteeism, turnover and termination. Emotional stress can be both a cause and an effect of workplace conflict.

Which of the following are negative consequences of conflict?

Increased stress and anxiety among individuals, which decreases productivity and satisfaction. Feelings of being defeated and demeaned, which lowers individuals' morale and may increase turnover. A climate of mistrust, which hinders the teamwork and cooperation necessary to get work done.

Which of the following are negative consequences of conflict quizlet?

Negative outcomes: Wastes time and resources, more job turnover and stress, and weaken team cohesion (when conflict is within team). You just studied 5 terms!

What are the consequences of conflicts?

The immediate effects of conflict are starkly clear. They include deaths and injuries, population displacement, the destruction of assets, and the disruption of social and economic systems. But one day the fighting stops, and life in conflict-affected areas gradually returns to normal.