Chapter 1
Studying Business Grade 10
PTY LTD
3. Conflict Management Where there is diversity, there will be conflict. But conflict is not necessarily a bad thing, as can be seen from the following classification: ○ Functional Conflict – this is non-aggressive conflict which stimulates creativity and allows ideas to flow, for example people disagreeing but being prepared to look at different ideas about the way to compromise. As in brainstorming, even bad ideas may be the spark for good ideas which will ultimately work.
Types of Conflict
○ Dysfunctional Conflict – this is an aggressive type of disagreement where parties refuse to compromise and it hampers the work on the task, as well as their relationships. Both types of conflict must be resolved. Functional conflict is resolved by picking up the creative ideas and compromising on the plan to go forward. Dysfunctional conflict needs to be addressed in the following way: The process has FOUR steps, whereby each step requires more intervention than the previous one. If, however, the conflict is resolved at any one given step, then it is not necessary to proceed to the others.
Conflict Resolution Steps: Negotiation
Conciliation
Mediation
Arbitration
NEGOTIATION
CONCILIATION
MEDIATION
ARBITRATION
Disputants
Disputants
Disputants
Disputants
The two parties sit down and try to come to a compromise by themselves.
If negotiation is unsuccessful, a third person gets involved, but only to facilitate the discussion i.e. make sure both parties get a chance to speak.
If conciliation does not work, the third person gets more involved and will give advice, but the ultimate decision is still up to the original parties involved.
If mediation has not solved the problem, the decision is taken out of the hands of the original parties, and the third person has to make a judgement call.
E.g. Father and son disagree on a curfew time, but sit down and discuss it together.
E.g. Two friends have been fighting due to a misunderstanding, and a third friend joins the discussion to make sure both have all the information and the misunderstanding is cleared up.
E.g. Two business partners are fighting about whether or not to sign a new contract. A friend who is a lawyer gives them some more insight, and they are then able to agree.
E.g. Two floor managers in a factory cannot agree on the placement of a large new piece of equipment and the Production Manager steps in to make the decision which is then binding on both departments.
6
Conciliator
Mediator
Arbitrator
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