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ASIAN JOURNAL OF MANAGEMENT RESEARCH

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Review Article

ISSN 2229 3795

Types, Sources, Costs & Consequences of Workplace Conflict Muhammad K. Riaz1 , Fatima A. Junaid2
1

MS Scholar, Institute of Management Sciences (IMSciences), Peshawar, Khyber Pakhtunkhwa, Pakistan , Email: raqi148.imsc@yahoo.com 2 Assistant Professor, Institute of Management Sciences (IMSciences), Peshawar, Khyber Pakhtunkhwa, Pakistan

ABSTRACT Workplace conflict is an inevitable phenomenon of organizational life. This study critically analyzed the types and sources of conflict at four levels: intrapersonal, interpersonal, intragroup, and intergroup; with relation to different organizational phenomena. Costs of the conflict to all parties (employee, organization and customers) in qualitative and qualitative terms are analyzed. The consequences of conflict are also summarized. It was concluded that conflict should be studied using more content rich and diversified methods like in-depth interviews, case studies (phenomenological studies), and focused group discussions as well as through longitudinal studies. Because on survey based studies are not sufficient to get the holistic picture of workplace conflict. Future directions are also discussed. Keywords: Conflict, Interpersonal Conflict, Conflict Sources, Conflict Costs

1. Introduction Workplace conflict is an omnipresent organizational phenomenon. It is a major theme of occupational/ social psychology and organizational behavior (De Dreu, 2008). A group of organizational researchers (for example Watson & Haffman, 1996; Wall & Callister, 1995; Thomas & Schmidt, 1976; Rizzo, House & Lirtzman, 1970) opined that conflict is terrible, damaging and destructive to organization and to employees as well. It plunders the quality of group decision making; reduces creativity and innovation, mess up team success, reduces trust among employees (Jehn, 1994, 1995; & Amason, 1996). It was tagged as disturbing force (Waltson, 1969). Therefore, in their opinion, conflict should be eradicated. The other group of researchers (for review Tjosvold, 1998) argued that conflict may be constructive and beneficial. It can contribute significantly to organization efficiency (Tjosvold, 1986a, 1986b, 2003; & De Deru & Van de Veliert, 2001). Harmonious, peaceful, cooperative groups are prone to become static, indifferent and non-responsive to changes, creativity and innovation (De Deru & Van de Veliert, 2001). Riaz & Junaid (Forthcoming) concluded that workplace conflict is neither all together bad nor beneficial rather its nature, parties involved, circumstances, and other related variables decide that either it is productive or counterproductive. ASIAN JOURNAL OF MANAGEMENT RESEARCH

Electronic copy available at: http://ssrn.com/abstract=2004302

This study, tried to summarize and discuss the types, causes, costs and consequences of workplace conflict analytically. 2. Workplace Conflict There is no one agreed upon definition of workplace conflict as there are conflicts about the definition of conflict (Tjosvold, 2008). According to Pondy (1967) conflict emerges when one party perceives that its goals, values or views are being indulged by inter-reliant counterparts (Wall & Callister, 1995; Thomas, 1992). While others (De Deru & Gelfand, 2007; Deutch, 1973;& Kelley & Thibaut, 1969) opined that workplace conflict may arise because of scare resources (for example time, status, budgets), values (such as political preferences, beliefs, religion, moral, social values), personality differences, misinterpreted facts, perceptions, world views and may be due any combination of these. According to Rahim (2010), workplace conflict can be categorized on many bases; hence there are many types of it. 2.1 Affective Conflict When two entities - individual, groups, organization - while trying to solve a problem together, become aware that their feelings and emotions are incompatible (cf. Guetzkow & Gyr, 1954; & Amason, 1996). It was also named as relationship conflict (Jehn, 1997a), as emotional conflict (Pelled, Eisenhardt, & Xin, 1999; & Schermerhorn, Hung, & Obsborn, 2002). Pelled et al. (1999) defined this as a situation in which group members have interpersonal clashes characterized by anger, frustration and other negative feelings. While according to Schermerhorn et al (2002) it involves interpersonal difficulties that arises over feeling of anger, mistrust, dislike, fear, resentment and the like. This type of conflict is negatively associated with affective reactions, and has a positive relation with turn over intentions. It decreases employees satisfaction and psychological well -being (Medina, Munduate, Dorado, Martinez, & Guerra, 2005). 2.2 Substantive Conflict This type of conflict emerges when organizational members disagree on their tasks or job content issues (Guetzkow & Gyr, 1954). It was also called as task conflict (Jehn, 1997; Pelled et al., 1999) as cognitive conflict (Amason, 1996). Pelled et al. (1999) define is as a situation in which group members disagree about task issues; like goals, key decision areas, procedures and the appropriate choice for actions. According to Jehn (1997b) task conflict is a disagreement among group members ideas and opinions about the course of action to be chosen for the specific task. Affective conflict arises due to incongruence of feelings and/ or emotions while substantive conflict is connected with incompatibilities in job duties and responsibilities of the conflicting parties. Along with theses two main type of conflict there are many other types of workplace conflict. Like conflict of interest. It is a conflict in which each of the parties, sharing same understanding of the circumstances, prefers a different rather incompatible solution to a problem (Rahim, 2001). While according to Zechmeister and Druckman (1973), the conflict in which parties perceives themselves as representative of their groups (in-groups); fighting for group not for the self; are likely to be more harmful and pitiless than those who are fighting for personal gains. Another ASIAN JOURNAL OF MANAGEMENT RESEARCH
Electronic copy available at: http://ssrn.com/abstract=2004302

type is conflict of values - when two social entities differ in their values or ideologies on certain issues; it results in conflict of values (Druckman, Broome & Korper, 1998). While in role conflict, a role occupant is required to perform two or more roles that are in-congruent, opposing or even mutually exclusive activities (Rahim, 2010). According to Pandey & Kurmar (1997), it is a state of mind or experience or perception of the role incumbent arising out of the simultaneous occurrence of two or more role expectations such that compliance with one would make compliance with other(s) more difficult or even impossible. 3. Sources of Workplace Conflict As there are four level of analysis of conflict (Rahim, 2010): intrapersonal, interpersonal, intragroup and intergroup. So sources are of four types as well. 3.1 Sources of Intra-personal and Role Conflicts Sources of intra-personal conflicts are mainly hierarchical and structural (Rahim, 2010). Two main sources are mal-assignment and goal in-congruence; and inappropriate demand on capacity. Mal-assignment means when an employee is assigned a task for which he does not have the appropriate expertise, aptitude and commitment; the person may experience qualitative role overload which results to the role conflict (Argyris, 1973). While inappropriate demand on capacity means that an employee can not properly satisfy all the demands of his position even by working at the maximum capacity, this lead to quantitative role overload (Rahim, 2010; and Argyris, 1973) or his / her capacity (skills, aptitude, and commitment) exceeds position demands, he find the position non-challenging. Inadequate role demand and under load role is a common problem of young graduates. They often find their jobs not as challenging as they were told (Newton and Keenan, 1987). Personality is studied in relation to conflict in several ways. McAdams (1996) argues that individual differences in personality can be described at three levels: what a person has (traits of a person labeled as level I), what a person does (contextually influenced strategies, goals, and concerns level II), and how the person makes his or her experiences (life narratives level III). In these three levels of differences, certain traits (level I) are related to conflict specific motives while certain behaviors (level II) are related with conflict. Like agreeableness is associated with motives to maintain harmonious social relationship, which influence conflict related behaviors (Jansen-Campbell and Graziano, 2001). The structure of an organization has a major influence on role conflict (cf. Kahn, 1964). Organization generates a high degree of role conflict by creating conflicting goals, policies, and decisions (Rahim, 2010). Analysis of structural variables such as formalization, supervisory span, work group size, span of subordination, functional interdependence and participation represents significant basis of influence on the both, role conflict and role ambiguity (Morris, Streers and Koch, 1979; and Rizzo, House, and Lirtzman, 1970). Management style may also generate role conflict. According to Rizzo et al.(1970), role conflict and vagueness tend to be lower under conditions in which superiors are more frequently engaging in emphasizing production under conditions of uncertainty, providing structure and standards, facilitating teamwork, tolerating freedom, and exerting upward influence. Formalization, supervisory supportiveness, and team orientation are negatively related to role conflict (House & Rizzo, 1972).

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3.2 Sources of Interpersonal Conflict Conflict threatens ones self esteem and impacts negatively all physiological systems in ways like accelerated hear beat and increased muscle tensions (McEwen, 1998). According to De Deru, Dierendonck and Dijikstra (2004), stress at workplace is seen as an antecedent to interpersonal conflict, affecting well-being negatively and employees with low well-being may trigger conflict with colleagues who are more prone for such conflict due to poor performance. According to Khan and Haque (2009), interpersonal conflict with colleagues is significantly related to personal outcomes (self esteem, general well being, emotional exhaustion), while interpersonal conflicts with superiors is significantly related to organizational outcomes such as job satisfaction, organizational commitment, turnover intentions and real turnover. According to social cognitive theory (Bandura, 1986), self categorization theory (Tajfel, 1981), and similarity attractiveness prospective (Byrne, 1971) interpersonal conflicts arises from social identity issues like prejudice towards out group, feeling of superiority, hidden inclination of serving ingroup at the expense of out group(s) (De Dreu and Gelfand, 2008). According to Spector's (1998) emotion centered model of job stress, actual conflict which may be caused by many factors, may results in perceived interpersonal conflict or vise versa. Job stressors bring out emotional reactions and subsequent strains which lead to perceived interpersonal conflict or actual conflict. Actual Conflict Perceived Interpersonal Conflict Emotions Anger Anxiety Frustration Strains Behavioral Physical Psychologica l

Moderators Control Locus of Control Negative Affectivity Type A Personality Trait Anger

Figure 01: Emotion Centered Model of Job Stress (Adopted from Spector,1998)

3.3 Sources of Intragroup Conflict Different types of conflict emerge at different stages of group work (Jehn and Mannix, 2001). Leadership style can virtually influence all conflict generating variables in an group (Rahim, 2010). There are three situations regarding leaders and subordinates in a group/ organization. In first, leader treats group members differently. The aggrieved member may be in conflict with favored members. In second situation group members unit against its leader: May be because he changes jobs descriptions, schedules, rules and regulation; remove some incentives; and /or impose some sanctions. Members may perceive these actions unfair and/ or biased; and may resist to these changes which may generate conflicts. In the third situation, members form sub

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groups. Difference on postings, in group out group bias, differences in opinions of the sub groups may lead to intra group conflicts (Maier and Verser, 1982). Task structure represents the extent to which the task is simple/ routine or complex/ non routine (Jehn et al., 1999). According to Jehn et al (1999) and Pelled et al (1999), task structure leads to task conflict which is positively related to performance. If groups are performing routine task then performance may be affected negatively and in case of non routine and complex task the performance will be improved. When group are composed of individuals with diverse interpersonal communication styles, attitudes, values, and interests; then there are greater possibilities that its members will have opposing perspective toward group and organizational goals (Rahim, 2010). According to an empirical study of Rahim (1979), intragroup conflict is significantly less in homogenous groups than heterogeneous groups. The increasing trend of having female; followers of different religions; people of different ethnic background, different educational background, age groups (generations); and the move from formal hierarchal organization to self managing team based organizations, prompt the researchers and management to consider diversity of the workforce because it may results in generation of conflict (Mohammad and Angell, 2004; Heneman, Judge and Heneman, 1999; Lawler, Mohrman and Ledford, 1995). A classical, functional organization cannot cope with changing corporate world complex problems; which lead organizations towards project teams, matrix structure and cross functional teams and these ways of organizing involved hiring of people with different ethnic, social and information backgrounds (Janssens and Steyaert, 2003; Jehn, Northcraft, and Neale, 1999). However, these teams have their own internal problems (Jehn, 1995). Because of theses problems, there are chances of intragroup conflicts. 3.4 Sources of Intergroup Conflict The sources of intergroup conflicts are structural in nature mostly, such as organizational hierarchy, span of control, and centralization of power (Bornstein, 2003). Complex organization used to develop differentiated systems to accomplish overall organizational objectives. Differentiated sub systems develop distinct functions, objectives, and norms. These sub systems compete with one another for resources, power, and status (Bornstein, 2003; and Lawerance and Lorsch, 1967a). According to Lawerance and Lorsch (1967b) that subsystems develop different types of internal structures (the formality of structures and time, goal, and interpersonal orientation) to respond their relevant sub environment. This heterogeneity leads to inter departmental conflict (Lawerance and Lorsch, 1967a). According to Spender and Kessler (1995), there are three categories of interdependences namely: (1) pooled interdependence - where groups are relatively independent of each other, but continue to work for the attainment of organizations goal, (2) sequential interdependence where the output of one unit becomes the input of another unit in line, and (3) reciprocal interdependence where the outputs of one group become the input of other groups, in any direction. Sequential and reciprocal interdependences are the major sources of inter group conflict. Potentials for intergroup conflict exist when two units (groups or departments) depend upon a common pool of scare organizational resources such as physical space, equipment, manpower, operating funds, capital funds, central staff resources, and centralized services (Walton and Dutton, 1969).

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Figure 02: Intergroup Conflict Model (Adopted from Walton and Dutton, 1969)

From the discussion it could be inferred that conflict typology is a multivariate, having different bases like personality and the roles of conflicting parties; job duties, responsibilities, communication and reporting lines; real or perceived disagreements, discomforts; interests and many other variables. But irrespective of its source and type, organization has to make use of conflict. 4. Costs of Conflict at Workplace Unresolved conflict generates many serious consequences involving high financial and human costs. Conflict may lead to frustration, tension, low morale, missing meeting deadlines, lack of self confidence, low trust level, communication problems, absenteeism, and legal proceedings (Buss, 2009). According to Levine (1998), costs of conflict comprises of: Direct cost fees of layers and other professionals; productivity cost value of lost time / opportunity cost; continuity cost loss of ongoing relationship; and emotional cost the pain of being held by emotions. Dana (2001) identified eight hidden costs of conflict: wastage of time, bad quality of decisions made, loss of skilled employees, restructuring inefficiencies, lowered job motivation, disruption, absenteeism, and health costs (Riaz, 2010). Buss (2009:21) divided cost of conflict at workplace in three categories: cost to organization, cost to employees, and cost to clients. 4.1 Cost of Conflict to the Organization Mismanaged conflict affects productivity (Cram and MacWilliams, 2009). Different studies mentioned different proportion of time wasted in managing conflicts e.g. up to 20 percent (Thomas and Scmidt, 1976); 42 percent (Watson and Hoffman, 1996). While according to a large study of 5000 employees in European and North American countries, carried out by OPP ASIAN JOURNAL OF MANAGEMENT RESEARCH

( an international psychology consultants in collaboration with UK based The Charter Institute of Personnel & Development (CPID), work time wasted in dealing poorly managed conflicts ranges from 0.9 hours to 3.3 hours per week (CIPD, 2008 as cited in Riaz, 2010). Mishandled conflict affects employees health and wellbeing, which in turn results in absenteeism. It is a habitual pattern of absence from duty or obligation (Johns, 2007). A high correlation exists among absenteeism, job stress and needing a break from fighting with colleagues (CFLSRI, 1998). Workplace conflict may also create a tendency of presenteeism. It means showing up at work while ill or otherwise not completely fit for work. Due to presenteeism productivity declines (Dana, 2001). Cost of absenteeism to organization is well researched, occupational medicine begun to suggest that work lost due to presenteeism is only the visible tip of an iceberg and that the hidden cost of presenteeism may be much greater (Buss, 2009). Researchers, who studied exit interview data on voluntary turn over, reported that unresolved conflict is a influential factor in at least 50 percent of all such departures and that, it costs about 150 percent of one trained employees salary to replace him or her (Duxbury and Higgins, 2003). While according to Dana (2001), conflict is the cause of 90 percent voluntary departures. The amount of theft by employees and damage in a company has a positive correlation with level of conflict in a company (Buss, 2009). Theft and damages costs 2 percent to a company of the staff total cost (Dana, 2001). 4.2 Cost of Conflict to the Employee Mismanaged and unresolved conflict causes stress, reduces confidence levels, makes employees anxious, and frustrated. All these lead to lesser job satisfaction, humiliation, embarrassment, and stressed; these induce psychological and physical diseases. The consequences of such happenings disturbed employees family and friend as well (cf. McClure, 2000). The consequences of such happenings disturb employees family and friend as well (Buss, 2009). Employees involved in conflict, experience a break in their relations, and often feel alienated from each other, become self centered. They adopt avoiding behaviors, and may harm each other in many ways. Escalated conflict leads parties to shun contact, end communication, withheld information or provide wrong information (Cram and McWilliams, 2009; Buss, 2009; Hart, McDonald, and Rock, 2004 and CFLSRI, 1998). Presenteeism is also affecting employee negatively as this may harm employees health, damage the quality of working life, and give impression of uselessness at work (Buss, 2009). 4.3 Cost of Conflict to the Customers

Cost due to mishandled conflict to customer is not researched in depth. One among few studies is of Buss (2009) which discussed it. According to him, workplace conflict affects the quality of product or service. In hyper competitive industries, negative consequences of conflict is considerable and it may tarnish the organization brand image and value positioning in the mind of customers. Most of these costs are hidden and are very difficult to quantify. However, there may be observable consequences like reduced motivation of staff leading to lower quality

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products or service, or mistakes that can even threaten customers health and hence results in legal suits and compensatory claims from customer (Buss, 2009; Riaz, 2010).

5. Consequences of Conflict at Workplace A number of studies have attempted to relate conflicts to personal and organizational outcomes (Dana, 2001). Consequences of role conflict are low job satisfaction, low confidence, low organizational commitment, lack of job involvement, tension and anxiety plans to leave the job, and inability to influence decisions (Rizzo, House and Lirtzman, 1970; Rahim, 2001; and Jackson and Schuler, 1985).

According to Jehn (1995), a moderate level of substantive conflict is functional, as it encourages discussion and debate, which help groups to attain a higher level of performance. According to Jehn et al. (1999) and Bourgeois (1985), this type of conflict may approve group performance through better understanding of different point of views and alternative solutions.

SOURCES Mis-assignment & Goal Incongruence In-appropriate Demand on Capacity Personality Traits Organizational Structure Supervisory Style Induced Stress Emotional Exhaustion Lower Job Satisfaction Forced Turnover Leadership Style Task Structure Group Composition Group Size System Differentiation Task Interdependence Dependence on Scare Resources

CONSEQUENCES Low Morale Reduced Productivity Excessive Employee Turnover Quality Problems Inability to meet deadlines Increased Supervision Cost Employee Theft and Damage Increasing Psychological Problems Decreasing Collaboration Un-desired Behaviors Group Think Trust Deficit Fractioned Activities Damaged Management Credibility Dissatisfied Customer Diminishing Profits

Conflict

Figure 03: Summary of Sources and Consequences of Workplace Conflict

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6. Conclusion and Future Research Directions From the discussion it can be concluded that conflict is an inevitable organizational phenomenon. Its types, sources, costs and consequences are multi-dimensional. Therefore it is suggested that conflict should be studied using more content rich and mixed methods (refer to critical realistic approaches) like in-depth interviews, case studies (phenomenological studies), and focused group discussions as well as through longitudinal studies. Because on survey based studies are not sufficient to get the holistic picture of workplace conflict. Future directions are also discussed.

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