BUS403 Study Guide

Unit 3: Conflict in the Workplace

3a. List five benefits of functional disagreement and conflict in the workplace

  • What are functional and dysfunctional conflicts?
  • How does functional conflict benefit group decision-making?
  • What are conflict management and conflict resolution, and what is the difference between them?
  • Can you give an example of bullying in the workplace?
  • Why should managers utilize conflict management or conflict resolution to address bullying?
  • What approach should managers take to resolve interpersonal conflict?
  • What are intrapersonal, interpersonal, and intergroup conflicts?

Functional conflict can be a positive force for change in the workplace by fostering new, innovative, and more efficient ways of accomplishing tasks or goals. However, it requires a delicate balance of encouraging people to challenge one another about their ideas, decisions, and preferences without promoting negativity. Unfortunately, misunderstandings and personal clashes can foster dysfunctional conflict and create a caustic work environment.

Too much or too little conflict can disrupt performance. The goal is to find a balance where a healthy debate of ideas occurs, but dysfunctional conflict is kept at bay. Personal conflict increases anxiety and stress, creates a climate of mistrust, and causes individuals to feel demeaned and defeated. A negative work environment lowers morale, hinders teamwork and cooperation, and may increase employee turnover. It ultimately causes reduced productivity.

The worst cases of personal conflict lead to workplace bullying. New employees at Intel Corporation participate in a four-hour training module to learn constructive confrontation. The content includes positively dealing with others, using facts rather than opinions to persuade others, and focusing on solving the problem rather than the people involved. "We don't spend time being defensive or taking things personally. We cut through all of that and get to the issues," notes a trainer from Intel University. Dahle, C. (2001, June).

Workplace conflict ranges from minor disagreements to bullying to workplace violence. Conflict can occur within an individual (intrapersonal), between individuals (interpersonal), and among groups (intergroup). While dysfunctional conflict is unproductive and destructive, a moderate amount of conflict can be healthy and necessary when employee disagreement is channeled respectfully and used to gather new ideas and further the organization's goals.

Why should managers take time to address small conflicts among employees that seem to target one person, such as someone new to the team, community, or from a different culture? What type of conflict is this: intrapersonal, interpersonal, or intergroup?

To review, see Understanding Conflict and Five Good Things about Conflict.


3b. Explain how organizational structure impacts communication and transparency

  • What are the four types of organizational structure, and how does each structure affect communication and transparency within an organization?

Mechanistic structures are rigid, centralized bureaucracies designed to create organizational efficiencies. Organic structures are flexible and decentralized, with low levels of formalization. Communication lines are more fluid. Employees perform duties based on the current, specific needs of the organization. Job descriptions are more general. Organic structures tend to have higher levels of job satisfaction. Their structures promote entrepreneurial behavior and innovation.

Four elements of organizational structure include centralization, formalization, hierarchical levels, and departmentalization.

Centralization refers to whether decision-making authority is concentrated at higher levels of the company hierarchy. In decentralized companies, lower-level employees can make decisions and solve problems. Some employees prefer working at organizations where managers confidently give instructions and make decisions. Centralization may lead to more efficient operations, especially for companies that operate in stable environments.

Formalization refers to whether an organization's policies, procedures, job descriptions, and rules are written and explicitly articulated. Formalized structures have many written rules and regulations. These written rules control employee behavior, so workers have little autonomy to make decisions on a case-by-case basis. Employee behavior is more predictable. A formalized structure can reduce motivation and job satisfaction and invite a slower decision-making pace.

Hierarchy refers to the number of levels in the company's organization chart. Tall structures have several management layers between frontline employees and the top level. Since managers supervise fewer employees, they can monitor employee activities closely. Flat structures have fewer layers. Employees have greater freedom of action since managers must supervise more people. Research shows flat organizations provide greater employee satisfaction and greater levels of self-actualization.

However, there is greater role ambiguity among employees when managers supervise large numbers of workers in flat structures. Employees are unsure of what is expected on the job.[299] This disadvantages employees who need more managerial guidance. Advancement opportunities are limited in flat structures due to fewer management layers. Employees report that flat structures satisfy higher-order needs such as self-actualization, but tall structures satisfy their security needs.

Organizational structures have different departmentalization levels, categorized as functional or divisional.

Organizations with functional structures group jobs based on similar functions. They may have departments devoted to accounting, finance, human resources, information technology, manufacturing, or marketing. Each person performs a specialized role and handles large volumes of transactions. Functional structures are more effective for companies with fewer products and services that require special attention in a stable environment that is slow to change.

Organizations with divisional (or product-specific) structures may have departments with unique customers, geographic locations, products, or services. Since each product line has unique demands, a divisional structure makes it easier for employees to address customer demands promptly and anticipate market changes. These companies are more agile and perform well in turbulent environments. Certain employees prefer working in this environment with more diverse and complex activities.

To review, see Organizational Structure and Change.


3c. Describe how scarcity of resources impacts workplace disagreement and conflict

  • What is scarcity?

Scarcity refers to whether you have to choose between alternatives. When choosing a scarce good, you must give up an alternative. Every choice has an opportunity cost that affects the choices people make. The opportunity cost for any choice is the value of the best alternative you had to give up when you chose the first option.

Companies with inadequate resources often develop issues and conflicts. Employees may compete for limited or scarce funding, resources, or time required to complete tasks. Computer equipment, cutting-edge gadgets, and accessories may be allocated to higher-level employees while others go wanting. These technical devices may be critical for productivity and cause unhealthy competition, an unethical work environment, and lower morale. This type of conflict demotes teamwork and encourages individualism. (Katz & Flynn, 2013)

To review, see Defining Economics.


3d. Explain how leadership commitment affects conflict resolution in the workplace

  • Why do leaders need to be able to analyze the sources of conflict and have the skills to manage issues as they arise?
  • Why should leaders be aware of their conflict management style?

Effectively managed conflicts lead to resolutions with positive outcomes and enhanced productivity for the team and organization (Loehr, 2017b; Evans, 2013). Leaders must be able to manage conflict when it occurs. This ability is critical to the individuals' and teams' success (Guttman, 2004).

Peter Northouse states, "It is up to the leader to assess what action, if any, is needed and then intervene with the specific leadership function to meet the demand of the situation." Effective leaders must respond with an action the situation requires (Northouse, 2016). A leader's job is to analyze the conflict and facilitate a positive and productive resolution.

Transformational leaders gain the trust of their followers. They inspire them to change their expectations and motivations to work toward a common goal. In a study of the relationship between transformational leaders and conflict management (Zhang et al.), transformational leaders who used conflict management methods were able to influence their teams to establish stronger identities, discuss their disagreements and frustrations outwardly, and work out solutions that benefited the team (Zhang, Cao, Tjosvold, 2011).

The Thomas Killmann Conflict-Handling (TKI) Modes are below. Effective leaders will use some or all of these styles or modes at different times depending on the situation and their ultimate goal during the dispute or negotiation.

  1. Avoiding – withdrawing from a conflict or sidestepping issues, leaving issues unresolved, and having a sense of timing.
  2. Accommodating – setting your concerns aside, obeying orders, selflessness, and yielding to the greater good.
  3. Competing – standing your ground, debating, using influence, stating your position clearly, and stressing your feelings.
  4. Collaborating – using active listening, identifying concerns, and analyzing input and confrontation.
  5. Compromising – negotiating and finding the middle ground, making concessions, and assessing value.


To review, see Leadership Guide to Conflict and Conflict Management and Four Ways to Deal with Conflict at Work.


3e. Explain models of task interdependence

  • What is task interdependence?
  • How does task interdependence depend on trust and communication for its effectiveness?

Task interdependence refers to relying on others to fulfill certain tasks to accomplish one's goals. For instance, if your supervisor assigns you the task of creating an advertisement, you would need to collaborate with the creative team to design the words and layout, engage the services of a photographer or videographer for visual elements, and work with a media buyer to acquire the appropriate advertising space, among other necessary interactions.

A manufacturing process is another example of task interdependence. The production, processing, and shipping departments depend on the output from each department to complete the company's goals. Each team member, leader, and manager is accountable to themselves and each other. Effective interdependence relies on accountability and communication.

In Bruce Tuckman's model of the group development process (forming, storming, norming, performing, and adjourning), task interdependence occurs during the performing stage. Team members should focus on team goals and problem-solving. Team leaders should manage high-risk tasks and coach and develop members. Team members progress to a level of team cohesion and unity. A level of trust, communication, acceptance, and conflict resolution allows members to emphasize problem-solving and goal attainment.

To review, see:


3f. Explain the relationship between employee task interdependence, teamwork, and workplace conflict

  • How does communication affect the relationship between employees and their roles in a team?
  • How can a lack of mutual understanding of assigned tasks due to inadequate communication lead to workplace conflict?

Imagine this story: two team members do not get along. Their manager becomes more involved in conflict resolution by talking to each employee separately and then together. The three explore options for accomplishing their tasks and agree to communicate their needs to each other in the future. The manager believes she had failed to clearly assign their roles and tasks. She schedules a follow-up meeting to ensure the team progresses satisfactorily on the project with each other.

This story illustrates the need for employees to rely on themselves and each other to achieve a common goal. The team developmental and performing stages emphasize problem-solving and task interdependence.

To review, see:


3g. Discuss how active listening, clarity regarding roles, and resistance to change affect workplace conflict

  • How do active listening, role clarity, and resistance to change affect workplace conflict?

Imagine this story: two colleagues fail to listen to each other or understand their different perspectives. Their conversation devolves into a laundry list of accusations of unacceptable behaviors. Finally, the parties learn to listen to each other without accusations or adopting a defensive posture. The opportunity exists for clarification and explanation of attitudes and behavior. Has this ever happened to you?

To review, see Conflict Management: Identifying Active Listening and Conflict Management: Addressing Resistance to Change.


3h. Identify different personality types

  • What is the Myers-Briggs Type Indicator (MBTI) personality test?

The Myers-Briggs Type Indicator (MBTI) measures four pairs of preferences: extrovert vs. introvert, sensing vs. intuitive, thinking vs. feeling, and judging vs. perceiving. The model offers 16 personality types since there are two options for each of the four preferences.

Personality refers to how people act in situations according to their emotions, reactions, and motivations in different conditions. Personality type refers to how we categorize these characteristics. An example of personality type is when we describe someone as more extroverted or introverted. Extroverts tend to be more outgoing; they express their thoughts and actions freely. Introverts tend to keep their feelings to themselves.

According to the MBTI, extrovert or introvert measures how people get energized. Extroverts (E) get their energy from interacting with other people. They are outgoing and sociable, enjoy talking to others, and share their thoughts freely. Introverts (I) get their energy from their thoughts and ideas from within. They prefer to talk and interact with fewer people and process their ideas more thoroughly before sharing them (Kroeger 2002).

Sensing or intuition determines how people gather information about the world around them. Sensors (S) are practical and realistic and prefer to receive exact information and specific facts. Intuitives (N) think in terms of the big picture. They are theoretical and prefer big ideas and conceptual information rather than facts (Kroeger 2002). 

Thinking or feeling measures how people make decisions. Thinkers (T) are objective and base their decisions on facts. They are firm in their decisions and detached from emotion. Feelers (F) are subjective and base their decisions on emotion. They consider the circumstances and are emotionally invested in their choices (Kroeger 2002).

Judging or perceiving measures the kind of environment people create around them. Judgers (J) prefer structure and order. They like to have control over plans and a fixed itinerary. Perceivers (P) are tentative and spontaneous with their schedules. They go with the flow and like to be flexible (Kroeger 2002).

Imagine you take the Myers-Briggs Type Indicator personality test, which says you are an ISTJ. Does it suggest your career preference is in sales or accounting? Do you think people have different personalities in certain environments, such as their personal and work lives? Do you think individuals who take this test could try to fix the results to achieve the desired categorization? Do cultural differences play a role in the test results?

To review, see Personality Types.


3i. Discuss how conflicting personalities, stereotypes, and cultural biases cause dysfunctional workplace conflict

  • What are cultural knowledge, awareness, sensitivity, and competence?
  • What is the difference between each?
  • What are the benefits of working in a culturally competent organization that promotes inclusion and equality?

We naturally categorize people by age, language, occupation, ethnicity, income, and many other qualities. This can create mental traps that erect barriers to communication and understanding. Stereotyping is biased thoughts about an individual because you have assigned them to a certain category. For example, Kathleen is 75 and plans to run in the New York City Marathon next year. If you knew only her age, would you be surprised that she is an accomplished runner?

Categorization can give rise to prejudice. Just like stereotypes, prejudice involves having biased attitudes towards individuals based on their group membership. Where stereotypes are related to thinking, prejudices are more emotional. Prejudice is when someone has negative views of Kathleen because they have negative views about older adults. For example, Kathleen is an excellent driver, but some co-workers joke about her driving slowly with her turn signal on because that is how all older people drive.

The tendency to categorize is associated with discrimination. Discrimination is a behavior bias against a person (or group) based on stereotyped beliefs about that group. If members of Kathleen's hiking club do not invite her to an upcoming hike because they fear she will move too slowly because she is old, they are discriminating against her. They are not looking at her as an individual but as part of a group for which they have certain preconceptions.

Culture refers to a particular group's shared traditions, beliefs, customs, history, folklore, and institutions. It is a common bond between individuals who share similarities in ethnicity, language, nationality, or religion. Culture serves as a framework of rules that shape our identities and profoundly influences how we express ourselves as part of a collective and as unique individuals.

Organizations can have a culture – of policies, procedures, programs, and practices – since they incorporate certain values, beliefs, assumptions, and customs. This organizational culture, however, may not reflect knowledge about different groups of people. Culturally competent organizations incorporate this knowledge and transform it into standards, policies, and practices.

There are four levels to these concepts:

  1. Cultural knowledge means knowing about the cultural characteristics, history, values, beliefs, and behaviors of another ethnic or cultural group.
  2. Cultural awareness is being open to changing cultural attitudes.
  3. Cultural sensitivity is knowing that cultural differences exist but not assigning values to the differences, such as one culture being better, worse, right, or wrong. Internal conflict (intrapersonal, interpersonal, and organizational) can occur when a custom or belief goes against multiculturalism.
  4. Cultural competence is being able to effectively manage the previous three levels. A culturally competent organization can work effectively in cross-cultural settings with behaviors, attitudes, and policies to produce better outcomes.

To review, see:


3j. Identify strategies for eliminating dysfunctional conflict in the workplace caused by negative stereotypes and cultural biases

  • What is the definition of a negative stereotype?
  • What is the definition of cultural bias?
  • What are some strategies for resolving dysfunctional conflicts caused by negative stereotypes and cultural biases?
  • What are some strategies to achieve cultural competence?

Cultural bias stems from an assumption that everyone from a cultural group shares the same beliefs or practices. Ethnocentrism describes the imposition of your cultural values and beliefs onto another culture. This occurs when a different way of doing things, outside your worldview, is deemed invalid or inferior, while your culture is superior or the standard or norm.

Self-reflective practice avoids the common pitfalls of ascribing differences to someone from a different culture (the "other"). Self-awareness is essential to understanding the viewpoint and motive behind another person's actions to resolve conflict (Spaho, 2013). Understanding the other person and analyzing their strengths and weaknesses helps manage organizational conflicts.

An organization that strives to educate employees and managers regarding stereotyping and cultural biases and manage dysfunctional conflict in the workplace is culturally competent.

Achieving cultural competence is less likely to occur as a top-down organizational mandate, but support from the top should be part of it. A committee representing all organizational levels can help get everyone to "buy in" by creating and facilitating action steps. Employees from all organizational levels should be involved. Those who do not understand the importance of becoming more culturally sensitive can complicate the process.

The steps are:

  1. Develop support for change throughout the organization (who wants change and who does not)
  2. Identify cultural groups that should be involved (who should be involved in planning, implementing, and reinforcing the change)
  3. Identify barriers (what is not working, what will stop you or slow you down)
  4. Assess your current level of cultural competence to identify gaps (what knowledge, skills, and resources can you build on?)
  5. Identify the resources needed and where you can find them
  6. Develop goals, implementation steps, and deadlines (who, what, when, and how)
  7. Commit to ongoing progress evaluation to measure outcomes. Be willing to respond to change (What do progress and success look like? What signs indicate the organization is on track?)


Unit 3 Vocabulary

  • accommodating
  • agism
  • avoiding
  • centralization
  • collaborating
  • competing
  • compromising
  • cultural awareness
  • cultural bias
  • cultural competence
  • cultural knowledge
  • cultural sensitivity
  • discrimination
  • divisional structures
  • dysfunctional conflict
  • ethnocentrism
  • extrovert
  • feeling
  • formalization
  • functional conflict
  • functional structures
  • gender
  • hierarchy
  • intergroup conflict
  • interpersonal conflict
  • intrapersonal conflict
  • introvert
  • intuitive
  • judging
  • mechanistic structures
  • opportunity cost
  • organic structures
  • perceiving
  • personal conflict
  • personality
  • prejudice
  • scarcity
  • self-reflective practice
  • sensing
  • sexual harassment
  • stereotyping
  • task interdependence
  • thinking
  • Thomas Killmann Conflict-Handling (TKI) modes
  • transformational leaders
  • Tuckman's model