Conflict is a common phenomenon in organizations that increases differences and disagreement among people. But conflict is not always negative, it also has a positive side which helps the organization to move forward and contributes to innovation. In this content, we will try to understand conflict from both positive and negative aspects. How conflict generates new ideas, how to make better decisions, how to build a strong relationship in an organization. We will also try to see how conflict impacts the productivity of an organization, how it increases stress and how it harms the team dynamic.

Effects of Conflict in Organizational Behavior

Positive Effects

1. Encourages New Ideas:

Conflict boosts innovation. When people have different options or approaches, it forces them to think outside the box. Like when two employees solve any problem, there is always a disagreement between them, so they brainstorm together and come up with a new solution which probably no one would have thought of before, brainstorming means generating multiple ideas on any topic or problem. When individual comes up with multiple ideas, new creative solutions are obtained that are beneficial to the organization. It is a process in which people challenge each other’s views and lead to creative solutions that are beneficial to the organization.

For example, there is a team where a task is given of designing a new product. When two employees have different ideas about the features of the product, they initially argue, but eventually they combine their ideas to create a unique product that satisfies the visions of both of them. If there was no conflict, perhaps this new discovery would not have happened.

2. Make Better Decisions:

When people bring different perspectives to a decision, it enhance the decision process. When the discussion takes place in a group rather than by a single person, more options or even more outcomes emerge. Because the decision is taken with more thought and consideration, this collaborative approach is usually better as it considers everything from every angle, which a single person might miss.

For example, a marketing team is planning to launch a new campaign and a team member thinks that reaching the audience through social media would be a best approach while the other thinks that traditional advertising like TV or printing would be better. Both of them have a conflict over these options and the matter gets a little heated. But this conflict is not negative, rather it is forcing the team to explore both strategies in depth. They can reach a larger audience by combining both approaches.

3. Improves Relationships:

Conflict, which often occurs in the workplace, strengthens relationships. When people resolve their disagreements, they begin to understand each other better, and in this process, people learn how to communicate effectively and they start respecting each other’s point of view, even if their opinions differ.

For example, two coworkers often clash over how to complete a task. This creates a lot of tension between them and they start creating distance between each other. When they come together to discuss, they realize that both of them have different skills which can be beneficial for the team. During this discussion, they share their points of view and start understanding each other’s strengths. After understanding each other’s interests, they start working together effectively and develop a strong professional relationship.

4. Promotes Change:

In conflict, we also get to know where the organization needs improvement. If employees repeatedly clash on outdated process, then it gives a signal that the process is outdated and it is time to update it. When an organization understands the roots of conflict, it can implement changes that benefit the organization by improving efficiency, productivity, and overall job satisfaction.

For example, suppose employees in a group works on old software which they finds very frustrating and because of this software their work slows down due to which they frequently argue with the management. Then this conflict forces the management to re-evaluate the software and then the management decides to upgrade the system and then there is improvement in productivity and moral in the company.

5. Builds Team Strength:

When a team resolves conflict together, they come closer and the strength of their team builds even more. Conflict is not solved easily, but if there is communication and mutual respect, then the conflict is solved. When team members solve disagreements together, they start understanding each other even better.

For example, suppose a team is working on a challenging project which they have to meet a tight deadline and the team members are not able to figure out, how to achieve the deadline by giving their best. When they argue on this matter, during discussion and argument they share their points of view openly and they develop a better plan which divides the tasks effectively. And when the task is over, they feel united because they did that task together.

Negative Effects

1. Lowers Productivity:

Unresolved conflict creates a distraction in the organization which lowers productivity. When employees focus more on the disagreement instead of focusing on their actual work, their focus on work gets reduced and productivity gets affected and this in turn impacts the organization where their work gets distracted and overall output reduces.

For example, in an office, there are frequent arguments between two employees about who should handle which task and this conflict troubles them so much that instead of focusing on work, they get busy solving these conflicts, their work gets delayed and deadlines are missed. This decreases the overall productivity of their team.

2. Increases Stress:

When there is repeated conflict in the organization, it creates a stressful environment in the organization which becomes difficult for the employees to survive and when they get entangled in the conflict, their anxiety, frustration and anger increases. This stress affects not only the workplace but also their personal life. If the conflict is not resolved for a long time, it can lead to burnout and high level of stress also increases absenteeism in the organization.

For example, a manager and employee disagree on how to approach a project and this disagreement increases tension and stress between them and whenever the employer meets the manager, he feels anxious and whenever they interact, his stress increases and it becomes so much stressful that often the employee has to take leave.

3. Harms Relationships:

If the conflict is not managed properly, it can spoil the relationship of coworker. When employees are unable to resolve their differences, they start holding grudges against each other which makes their working relationship toxic and the result is that they start getting fed up with each other and avoid working together. This is a situation that creates a toxic atmosphere where communication becomes difficult and people start distancing themselves from each other because they are unable to speak openly. Over time, their relationships get damaged and the environment becomes negative.

For example, two team members have a conflict which gradually grows and instead of resolving the conflict, they distance themselves from each other and stop working together. Their efficiency is seriously affected and other team members also notice their tension which later becomes uncomfortable environment for all in the workplace.

4. Creates a Negative Work Environment:

Persistent conflict leads to a toxic work environment when conflict is not resolved effectively and timely it becomes an environment where employees feel uncomfortable and unvalued. Such unresolved conflict leads to the spread of negativity which negatively impacts the entire team. When employees feel that their concerns are not being addressed, they develop dissatisfaction and frustration, which affects all employees, whether they are directly involved in the conflict or not. A negative work environment affects the entire organization.

For example, when the struggle of an employee in a company is ignored, he feels that his words have no value and when his problem is not solved, he feels discouraged and depressed and this creates stress in him which becomes a toxic environment for him and he avoids working there, and the result is that a talented employee who is already stressed or unhappy starts thinking of leaving the organization. Such an environment is created in the company that it becomes difficult not only to attract new talent but also to retain the existing employees.

5. Causes People to Leave:

When conflict increases, turnover increases because employees prefer to quit rather than working in such an environment. When an employee’s feels that no one is valuing their words or no one is addressing their issues, it creates a negative impact on their mental health and they start thinking of working elsewhere. And if the turnover increases in the organization, then it proves to be costly for the organization because when an employee leaves the job then the organization has to bear the cost of hiring a new employee and also has to invest significant time and resources in training them which can disrupt the workflow of the organization and impact productivity.

For example, a person is facing a stress-related problem and he decides that he cannot handle all this stress anymore, so he decides to leave the job and prefers to find a job where his work is appreciated and the work environment is stress-free. This creates a situation where a company lose a valuable employee and they have to invest money to find a new employee and train that employee which significantly disrupt their workflow.

Conclusion of Effects of Conflict in Organizational Behavior

Conflict is a powerful force that significantly influences the way an organization operates. When conflict is managed effectively, new ideas are generated, better decisions are made, and stronger bonds are formed, all of which contribute to the overall success of the organization. However, when conflict is not resolved, it creates a negative impact on the organization that slows down productivity, relationships are damaged, and valuable employees leave the organization. To overcome these negative outcomes, a company needs to develop good conflict management skills that can manage and resolve conflicts timely and effectively. Only then a healthy workplace is created that fosters growth and stability of the organization.