Grade 12 IEB Business Studies- Conflict Management summary
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Business Studies IEB
Instelling
12th Grade
An in-depth summary of the Conflict Management chapter; summary made using the Consumo Business Studies Grade 12 Learner Book. These notes got me a distinction in business studies with an average of 87%!
Introduction:
Definition: a state of tension and friction over actual/perceived differences.
-concept of conflict has usually negative connotations for most people--> we associate conflict with hostility, offensive and defensive behaviour
Functional vs. Dysfunctional conflict:
• Conflict can be defined as the negative differences of opinion or the varied emotions people experience often due to a dispute over a
particular issue.
• Although people view conflict as negative, it may lead to positive outcomes
1.1. Functional conflict:
• Refers to aa situation where the different parties deal with the conflict in a manner that is healthy and where they respect each other's
opinions
• Confrontation between groups/individuals that enhances and benefits personal or business performance and can contribute to creativity,
innovation, problem solving and decision making (outcome is positive)
• Respect needs to be shown by both parties to ensure a positive outcome- listening to other points of view and acknowledging that there
may be merit in opposing point of view, and that a compromise in resolving the conflict will probably lead to a win-win-situation.
• Stimulating functional conflict: "Devil's advocate":
► Manager may deliberately play the devil's advocate to create conflict, as it may lead to the group "bonding:.
► Conflict can stimulate creativity and prevent "group think"- team members do not want to criticise one another because of desire to get
along---> hampers critical thinking
► Person assumes role of devil's advocate and criticises proposed plan of action to encourage analytical thinking and test proposed plan of
action
► Deliberate intro of criticism known as programmed conflict and used to elicit debate and different opinions
Possible outcomes:
○ Can create awareness of problem that can be addressed/solved to benefit the business
○ Team members start to consider wider range of ideas, may result in increased participation (no more group think), creativity and even higher
productivity may be stimulated
○ Perceptions that may not be accurate are discussed and misconceptions cleared
○ Clarification of individuals views occurs and cooperation ensues
○ May motivate people to give input and get involved/ participate in situation where prev. they felt apathy.
1.2. Dysfunctional conflict:
• A form of conflict that harms the business or hinders the achievement of business or personal goals. Limits productivity (negative outcome)
• When conflict leads to a decline in productivity
• Often the result of people's misperceptions, ambitions, ego, lack of communication, misunderstanding (central to dysfunctional conflict)
and/or unwillingness to compromise
• Manager must step in when the conflict has a negative impact on productivity to ensure the conflict is resolved; dysfunctional conflict may
continue to hinder group performance, waste resources, being counterproductive, and undermining group cohesiveness
• If compromise cannot be reached- manager may have to force employees to put differences aside and cooperate to achieve the goals of the
business
Possible outcomes: negative
○ Climate of mistrust that has a negative impact on teamwork and cooperation
○ Blaming, back stabbing and gossip
○ Higher levels of stress and anxiety- results in lower levels of job satisfaction
○ Lower morale and increased staff turnover (result in higher costs)
○ Waste of time and resources
○ May lead to violence
2.Reasons for conflict:
1. Personalities and emotions
2. Cultural differences
3. Poor communication
4. Change (resistance to change)
5. Limited resources and the competition over them
6. Personality traits or leaders
7. Different goals and needs
8. Difference in power relationships between different groups
9. Previously unresolved conflict may erupt
10. Avoidance
3.Management of conflict:
The requirements of the specific situation and the skill of the manager, will determine which conflict handling approach will work best.
Strategies:
Conflict management Page 1
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