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Conflict Management Business Studies Grade 12 Notes and Summary
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Notes and Summary on Conflict Management for Business Studies Grade 12 IEB.
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CONFLICT MANAGEMENT1. Functional vs. Dysfunctional conflict
Conflict is the negative differences of opinion.
1.1 Functional conflict
When the parties deal with the conflict in such a way where they respect each other’s opinions. It is important
that both parties listen and acknowledge each other’s point of view. This creates a positive outcome which can
lead to more innovation, creativity, and higher productivity.
The manager may deliberately play devil’s advocate to create conflict. This will lead to the group bonding as
they work together to defend their common interest.
Possible outcomes of functional conflict:
• Conflict may create awareness of problems, which can then be solved.
• Team members consider a range of ideas which leads to more participation, creativity, and productivity.
• Perceptions that are not accurate are discussed and misconceptions are cleared.
• People’s views are clarified, and cooperation takes place.
1.2 Dysfunctional conflict
This is when conflict leads to a decline in productivity. It often occurs because of people’s misperceptions, their
ambitions, egos and/or unwillingness to compromise. The manager must step in to ensure that conflict is
solved to minimize the negative impact.
Possible outcomes of dysfunctional conflict:
• Creating mistrust that has a negative impact on teamwork and cooperation.
• Blaming each other, backstabbing, and gossip.
• High levels of stress and anxiety which contribute to low levels of job satisfaction.
• Low morale and increased staff turnover (which results in higher costs).
• Waste of time and resources.
• Violence.
2. Reasons for conflict
• Personalities – Egos often get in the way when people don’t want compromise and insist on their way
of doing things. The manager must intervene, if necessary, to try get people to focus on the business
first, before trying to promote their own agendas.
• Differences in backgrounds, cultures, and values – Employees should be reminded of sensitivity
when dealing with these differences. Sensitivity training and developing skills such as time keeping,
respecting interpersonal space and emotional intelligence will help manage this type of conflict.
• Poor communication – leads to misunderstanding which can lead to role overload (where one person
does more than what they can cope with), role conflict (everybody wants to perform a certain task), or
role ambiguity (team members aren’t sure of the role they play). All communication barriers must be
removed. This may include issues like poorly phrased messages, poor use of language, etc.
• Change – brings uncertainty which can lead to conflict as often there is a resistance to change. Change
management is important. Employees must understand what the changes are and why. Two-way
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