Past research finds disagreements about a task are the most beneficial type of conflict (Amason, 1996; Jehn, 1995, 1997; Jehn & Mannix, in press). Task conflict often includes constructive debates that may lead to better decision-making. This can lead to a brainstorming or a groupthink session that can lead to interesting, creative and effective solutions to problems or certain tasks (K.A. Jehn and J.A. Chatman, 2000). With the advantages, we will always encounter disadvantages, but if we handle conflict effectively, our road to success will be much smoother.
With our minds programmed to believe conflicts are negative, our intuitions on conflict may be correct. I have given the advantages above to promote conflicts as an excellent way to solve or provide improvement on how we do things as a team, but there are some downfalls of conflict. Conflict can be very destructive during decision making, especially if you already have different unresolved personal issues. This can lead to chaos and divert energy away from more important activities or issues, Problems can still exist if decisions are not made. Sometimes, small issues can actually snowball into a larger problem. This can also lead to a lower morale to not only team members, but the entire group. Losing morale would be one of the most devastating results of conflict. This leads members into not caring about these issues at hand, they may even agree on anything just to end the group thinking that is most important to a team. While working as a group or team, there will always be some type of disagreement, but we need to avoid conflict that will permanently disable or divide a team of thinkers. I think if everyone can be educated on the cause and effect of conflict, approaching important issues or task would be handled carefully. With education, respect of team members should follow.
The Costs of Unmanaged Conflict
Unmanaged employee conflict is perhaps the largest reducible cost in organizations today and probably the least recognized. It is estimated that over 65% of performance problems result from strained relationships between employees not from deficits in individual employees' skill or motivation (Dana, 2001). Organizations experiencing unmanaged conflict are subject to such negative effects as less effective decision-making and leadership, poor morale, increased turnover, increased legal costs, insubordination and even violence. While some of these effects are clearly more tangible, the less direct, "off-balance-sheet" costs of unmanaged conflict can be huge and the most difficult to quantify. Unresolved or unmanaged conflict can quickly escalate and halt a team or organization's progress as people spend more time worrying about conflict than organizational goals.
Direct and measurable costs of unmanaged conflict include turnover of skilled employees, increased litigation and insurance costs, and increased labor costs. Consider the example of Halliburton/Kellogg, Brown & Root (KBR). KBR spent 5 years and paid $450,000 for the privilege of "winning" a highly publicized sexual harassment lawsuit that adversely affected the lives of many people (Settlement Solutions, Inc., 3.). Arguably, had the conflict been managed more effectively, the toll on that company could have been much less. In addition to legal costs, labor costs are significantly impacted by unmanaged conflict. According to a Raytheon report, the cost of replacing skilled employees can be as high as 150 percent of his or her compensation (Dana, 2001).
Not as easily measured are indirect costs caused by unmanaged conflict. These costs are typically rooted in morale and performance issues including but not limited to strained relationships, ineffective leadership, poor morale, tension and anxiety, diminished customer service, and general loss of productivity. Lack of focus due to the stress or anticipation of conflict robs an organization just the same as if the cash box were stolen. For instance, if conflict is present between people who share decision-making authority, as in the case of team-based decisions, the resulting decisions are likely to be contaminated by the power struggles between those people. A precise estimate of cost is probably impossible (Dana, 2001). The toll in wasted time, reduced decision quality, restructuring, and lowered job motivation can be devastating in the long run.
Unmanaged conflict can significantly affect the ability of a company to manage itself and be competitive. At York Computer, for instance, (a pseudonym) a high-technology company, the corporate culture stresses the appearance of harmony and the avoidance of confrontation and deference to authority. Conflicts between managers over budget and project authority are avoided until they reach major proportions, at which point the company president steps in and decides what should be done (Brett, Goldberg, Ury, 1990.). The results of this policy have been disastrous including a significant loss of market share due to the company's inability to make the transition to professional management and failure to keep pace with the changes in its market and technological environments. York's leadership failed to realize that their conflict reflected, among other things, differing views of their customer's changing needs and thus, they missed a critical and rapid shift in their core technology of word processing (Brett, Goldberg, Ury, 1990).
Conflict spiraling out of control can lead to reduced levels of teamwork and cooperation, diminishing employee commitment and can compromise quality and harm productivity. Unmanaged or improperly managed conflict drains staff time and attention and takes away from your bottom line just as profoundly as the aforementioned direct effects.
Managing conflict properly by building appropriate team structures
Building the appropriate team structure is a very important component of managing conflict within teams. There are several components of a team's structure that must be present to maintain a "conflict free" team environment. Perhaps, the most important parts of that structure are the team charter and process. Oftentimes, the root of conflict within a team is caused by a misunderstanding of the roles and corresponding responsibilities of all team members. According to "Creative Collaborative Teams" there are several steps to "ensuring the teams alignment of its members with the strategic direction of the company," thus ensuring conflict will be less likely to occur and allowing successful resolution of any conflict occurring (Marshall, 1995).
1. Clarify the team's task or function
2. Clarify team roles and responsibilities
3. Establish operating agreements
4. Create a team charter
5. Identify critical success factors
6. Develop an action plan
7. Beginning collaborative skills development
8. Establishing measures and measuring progress
If the mission and purpose of the team is understood by each individual and the roles and responsibilities of each member are understood the likelihood of conflict will be minimized greatly. The team will also have an understanding of the tasks at hand and team process.
Conclusion
Though we generally think of conflict as something to be avoided, in work teams some amount of conflict is necessary. Conflict forces work teams to think through the problem at hand. It also encourages work teams to become actively engaged in the problem solving process.
Even though conflict is necessary for teams to function effectively, unmanaged conflict can cause teams to make less than optimum decisions. The costs of unmanaged conflict include reduced employee commitment and productivity. The ultimate penalty of unmanaged conflict is poor team decisions.
The best way to manage conflict in work teams is to build a strong team charter and make sure that all team members agree to its terms. A good charter establishes clear objectives, schedules, and processes for resolving the conflict that is inherent in team efforts. This paves the way for conflict to play a positive role in team performance and reduces the negative impact that unmanaged conflict can have on teams in the workplace.
