The Cost of Conflict

Conflicts inevitably arise in the workplace between individuals in an organization, between organizational units, and between institutions. It is a part of our everyday life. Alarmingly, there are a number of studies that estimate that 30 to 40 percent of a manager’s daily activity is devoted to dealing with some form of conflict resolution. Employees’ inability to effectively deal with anger and conflict in the workplace can result in a tremendous loss of productivity, not to mention the emotional impact to all the participants.

How to Address Conflict in the Workplace: The Conflict Management System

The premise of Conflict Management Systems is the following: the cost of resolving conflict is negligible relative to the cost of leaving conflicts unresolved. A Conflict Management System is strategically tailored and customized to support the needs of an organization based on this operational premise. Still, a well-designed Conflict Management System consists of three interrelated components that are essential to its success.

• Training: raising employee conflict awareness, which reduces the negative impact of conflict in the workplace
  
• Neutral Third-Party Intervention: provides professional resources early in the conflict cycle to help constructively resolve the dispute before it cycles out of control.
  
• Supportive Infrastructure: Internal procedures and processes developed to support an organization’s ability to constructively manage and minimize the harmful effects of conflict in the workplace.
  

We believe that conflict management represents your organization’s greatest opportunity for cost control in the twenty-first century. By developing a Conflict Management System, you support employees and managers in the early resolution of problems with customers, partners, and with each other, thereby preventing predictable conflicts from escalating into expensive disputes.

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