Managing Conflict in Organizations: Dealing with Workplace Conflict Between Employees and Managers

Have you ever found yourself in the middle of a workplace disagreement, wondering how something so small could escalate so quickly? You’re not alone. According to a report by the American Management Association, over 85% of employees experience conflict in the workplace. This staggering figure highlights the widespread nature of conflict in the workplace and underscores the critical need for effective conflict management strategies.

Conflict is a natural part of organizational life, driven by differing opinions, goals, and personalities. It can lead to innovative solutions and significant business improvements when managed well. However, it can deteriorate relationships and hinder organizational progress if left unchecked. To harness the positive aspects of conflict, it’s essential to practice constructive conflict management and set ground rules for interactions. Ensuring that all the conflicting parties are heard and understood can transform organizational conflict into opportunities for growth and collaboration.

In this blog, we will dig deeper into the underlying sources of workplace conflict and offer proven strategies for managing them effectively, transforming potential disruptions into opportunities for growth and understanding.

Understanding Organisational Conflict

Organisational conflict arises when there are disagreements or clashes between individuals or groups within a workplace. These conflicts can stem from a variety of sources, such as differing personal values, competition for resources, or conflicting goals. Understanding the dynamics of these conflicts is crucial to managing them effectively.


Albert Einstein


To manage conflict, it’s important to facilitate individual and confident conversation between both these parties. Applying conflict theory can help in understanding the underlying issues and strategies to resolve conflict. Effective management of employee conflict ensures a harmonious and productive work environment.

Albert Einstein once said, “In the middle of difficulty lies opportunity.” This perspective is particularly relevant to conflict in organisations. While conflict is often viewed negatively, it is also a potent source of potential growth and innovation. It forces individuals to confront different perspectives and can lead to creative solutions that might not have emerged otherwise.

However, for conflict to be constructive, it must be managed with skill and understanding. It begins with recognising that conflict is a normal aspect of organizational behavior. Instead of avoiding it, effective leaders and managers learn to navigate these waters carefully, ensuring that the energies of the conflict are channelled towards problem-solving and organisational enhancement rather than personal battles and divisiveness. This involves identifying the underlying conflict sources and following various conflict resolution steps. Leaders must listen actively and encourage employees to express their concerns openly, fostering an environment where conflicts lead to growth and improvement.

Furthermore, understanding the types of conflict—whether task-related, interpersonal, or procedural—helps in applying the appropriate resolution strategies. By embracing conflicts as opportunities for learning and innovation, organisations can resolve immediate disagreements and build a stronger, more cohesive work environment. 

Let’s explore some of the common causes that ignite these fires within organisations.

Causes Of Conflict In Organisations

Conflicts in organisations can originate from several sources, each intertwined with the complexities of human behaviour and organisational structures. Understanding these triggers is key to developing effective strategies to manage and solve conflicts.

Causes Of Conflict In Organizations

1. Resource Limitations

One of the most common sparks for conflict involves competition over limited resources. Whether it’s budget constraints, limited office space, or insufficient human resources, the pressure to secure necessary resources can lead to friction between departments or teams. For example, two project managers might clash over the allocation of a key staff member whose skills are critical to both of their projects. As Jeff Bezos once pointed out, “Resourcefulness is often born from scarcity,” suggesting that while resource scarcity can lead to conflict, it can also foster creative problem-solving.

2. Differing Values And Personalities

Everyone brings their own values, beliefs, and personalities to the workplace. When these differ significantly, it can lead to interpersonal conflicts. A classic example is the friction that might occur between employees from diverse cultural backgrounds, where communication styles vary widely, potentially leading to misunderstandings and disagreements.

3. Communication Breakdowns

A lack of clear communication is a fundamental cause of workplace conflicts. Misunderstandings occur when information is not shared effectively, leading to confusion and frustration. For instance, if a team leader does not clearly articulate project roles, team members may end up duplicating work or ping on each other’s toes. A study by CPP Inc. found that “miscommunication contributing to stress and inefficiency costs organisations $37 billion (or $26,041 per worker) in the U.S. and U.K. annually.”

4. Organisational Structure

Sometimes, the very structure of an organisation can create conflicts. Organisations introduce poorly designed structures, which often introduce ambiguities in job roles and reporting lines without considering cross-cultural studies or implementing practical examples of generation technology, can lead to conflicts when employees are uncertain about their responsibilities or authority and rational application of the structure. A situation where a team member receives conflicting directions from multiple supervisors is an apt illustration of this type of conflict.

5. Change Management

Change is a constant in many organisations, but not everyone adapts to change at the same rate or with the same comfort level. Disputes can arise during significant change periods, such as mergers, restructurings, or strategic pivots, particularly if the change is not managed with sensitivity to employee concerns.

By identifying and understanding these common causes of conflict, organisations can better prepare to address them proactively. Effective conflict management styles resolve disputes and turn these challenges into opportunities for growth and innovation. 

Moving forward, we will explore various strategies to manage conflicts effectively within the workplace.

Managing Conflict In Organisations

Effective conflict management within organisations is crucial to maintaining a healthy workplace environment and ensuring productivity. It requires a nuanced understanding of human behaviour and a robust toolkit of strategies. Here are several advanced methods for managing conflicts, supported by research and data, to ensure that they lead to positive outcomes rather than disruptions.

Managing Conflict In Organizations

1. Establishing A Conflict Resolution Protocol

Creating a positive and assertive approach to handling conflicts is essential. A study from the University of California found that companies with a formalised conflict resolution process experience fewer escalations of disputes. This protocol should include clear steps for conflict identification, a process for addressing the conflict, and if necessary, methods for escalation to higher authorities. 

Establishing a robust conflict resolution protocol involves outlining clear conflict resolution steps, providing employees with a practical handbook as a valuable resource which covers emergent topics to ensure mutual understanding at hand. For instance, implementing a mediation stage before any formal disciplinary actions can help resolve conflicts more amicably.

2. Training In Conflict Resolution Skills

Investing in training programs that enhance employees’ conflict resolution skills is proven to reduce conflict occurrences. According to a survey by the American Management Association, organisations that provide communication and conflict management training see a 50% reduction in litigation risks associated with workplace disputes. 

These programs should focus on improving negotiation skills, listening actively, and showing empathy—a trio of skills essential for de-escalating conflicts before they become severe. Encouraging employees to engage in constructive dialogue and communicate in an open and honest manner fosters mutual understanding and resolves conflicts. This approach ensures that all involved parties have equal time to voice their concerns and contribute to addressing issues. 

3. Promoting Psychological Safety

Google’s Project Aristotle, a multi-year study released in 2016, showed that psychological safety, where team members feel safe to take risks and be vulnerable in front of each other, is the most critical factor in creating effective teams. Organisations can prevent many conflicts by fostering an environment where employees can express their thoughts and concerns without fear of reprisal. Regular team-building activities and open feedback channels enhance this sense of safety. In addressing organisational behaviour and managing conflicts effectively, it’s crucial to recognise how conflict style changes can impact outcomes.

4. Encouraging A Culture Of Inclusion

A culture that values diversity and inclusion is inherently less prone to conflicts. Research by Deloitte indicates that inclusive teams make better business decisions up to 87% of the time. In effective human resource management, practising constructive conflict management strategies, including setting ground rules, is essential to ensure little or no conflict. 

By fostering open communication and listening carefully, all conflicting parties can identify solutions and achieve productive outcomes. Encourage practices that celebrate diverse viewpoints and ensure that all team members are respected regardless of their background or opinions. This might include diversity training and regular reviews of company policies to ensure they support inclusiveness.

5. Implementing Feedback Mechanisms

Routine check-ins not only help track the progress of projects but also serve as a preventive measure against conflicts. These sessions allow managers and team members to address potential issues early on. Incorporating a robust feedback mechanism in organisational processes ensures resolving conflict by addressing the root cause and brainstorming solutions through individual and confident conversations in a secure and private place, thereby handling conflict effectively in day-to-day organisational operations. 

This approach mitigates poor decisions and expands the range of possible solutions available, ensuring a harmonious and productive work environment. In addressing organisational behaviour and managing conflicts effectively, it’s crucial to recognise how conflict style changes can impact outcomes. Implementing 360-degree feedback systems where employees receive constructive feedback from peers, subordinates, and supervisors can also promote a more harmonious workplace.

6. Mediation And Neutral Facilitation

In cases where conflicts become complex, bringing in a neutral third party to mediate can be highly effective. Mediators specialise in finding common ground and can often see solutions that those involved in the conflict cannot. According to the American Arbitration Association, mediation results in settlements in more than 85% of cases.

In managing conflict, the organisational goal is not just to resolve the issue but to do so in a way that all conflicting parties understand, feel heard and satisfied with the outcome, ultimately strengthening the organisation. 


Effective conflict management is pivotal for fostering a thriving organisational culture and sustaining productivity. By understanding the sources of conflict and implementing strategic approaches to manage them, organisations can transform potentially disruptive disagreements into opportunities for growth and innovation. 

Embracing conflict as a catalyst for effective communication and development ensures that all team members can collaborate more effectively. As leaders and managers refine their approaches to conflict resolution, they not only enhance their teams’ dynamics but also contribute significantly to their organisation’s overall success. Remember, the goal is to move forward together, stronger and more unified.

Rishabh Bhandari

Rishabh Bhandari is the Content Strategist at Kapable. Rishabh likes to transform complex ideas into captivating narratives relatable to the target audience. He loves telling stories through his content. He believes that stories have the power to shift mindsets and move mountains. He has 3 years of experience in educational blog writing and copywriting.

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