Managing Conflict And Its Effects On The Performance And Financial Stability Of The Firm

Managing Conflict And Its Effects On The Performance And Financial Stability Of The Firm

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Managing conflict is an important issue facing businesses of all sizes. The decision making process can be interrupted and made inefficient by conflict. In addition, after any type of change has been implemented, there is the possibility for conflict with employees and management. Conflict can arise from personal issues, difficulties at work, and other events with great impact. The results of conflict can range from harming the health of the individual to affecting the performance and financial stability of the firm. The points highlighted in managing conflict that will be covered in this paper are psychological, constructive and destructive, affective, accommodation, and compromise.
Psychological conflict is internal to a person. It can stem from a person having no options when it comes to making a decision or from actually having too many opinions with no way to choose between them (Bateman & Snell 96). Indeed, the fear of change can be dealt with psychologically in ways that are not necessary. In certain cases it showed that conflict resulted from the fear of change on the part of employees. People act in ways to protect themselves and friends and also to benefit themselves. In a corporate environment this can quickly lead to conflict. At the extreme workplace violence is an example of the result of conflict coming from psychological issues.
Conflict can also be considered constructive or destructive. Conflict can be considered constructive when it arises from differences in perspectives or judgements between people (Bateman & Snell 97). Different perspectives can come from differences in backgrounds, heritage and other ethnic and racial considerations. Differences in judgements can arise from the same factors a...

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...owever is easy to explain. The best outcome is not necessarily a result that benefits both parties at the expense then of both parties. Do not compromise if it is not in your best interest.
Whether conflict arises from psychological considerations or from an event like a merger or acquisition, conflict can arise that could be considered constructive or destructive. If the conflict is anticipated, then management can organize a process to make sure that the conflict is not affective in nature that would ensure no solution would be found. An attempt should be made to focus on any differences in judgements and perspectives about issues and turn the process into a cognitive process where a rational approach is used to reach an agreement. Participants must realize that too much compromise or accommodation will not truly help everyone arrive at the best solution.

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