Research shows that two-thirds of all problems related to work performance arise from conflicts in the workplace, rather than from insufficient skills or lack of motivation.
Written by: Tomislav Bekec
What is the cost of conflict situations that occur daily within companies? Conflicts with clients, suppliers, government institutions, among departments within the company, among employees… In most companies, this tally can reach millions, but besides financial costs, conflict has numerous negative consequences for the organization in which it arises. From decreased employee motivation, dissatisfaction among employees, the formation of ‘cliques’ and divisions within the organization, poor communication, loss of working time, increased sick leave and absences from work, unmet goals, reduced efficiency in performing tasks, to fights among members that become more important than successfully completed work. Research shows that two-thirds of all problems related to work performance arise from conflicts in the workplace, and are not a result of insufficient skills or motivation as is often assumed.
However, the cost caused by conflict can be reduced. Learning and applying conflict management skills, resolving and preventing conflict in the organization can be one of the best investments for the organization. The key role in managing conflicts in the organization should belong to the immediate manager. Their competence and involvement in resolving conflicts among their employees can help find lasting solutions and create a supportive work environment. In Croatian companies, a reactive position of managers prevails. They are often not even aware of the simmering conflicts in their team, and when they erupt in full force, the most common managerial reactions are cover-ups, leaving the conflict to employees, or orders to cease the conflict, which only pushes the conflict under the rug. Such conflicts are never resolved constructively and are a constant threat to interpersonal relationships and the efficiency of the team itself. The inability of managers to manage conflicts harms the organization more than potentially poor business decisions.
