How to Manage Conflict

Last November, Philippe, a 33-year-old French banker, left Paris for a new challenge in London. He thought that a new job in a fast-growing British investment bank would give him valuable international experience and develop some new skills. The bigger salary and bonus were also a draw.

One year on, Philippe has a different view of his move. When I met him last week, he explained that the year had been a disaster and his job was in danger as staff had made formal complaints about his management style. He had found it difficult to adjust to his new role, but he had not realised that his style had created such conflict within his team.

Philippe felt he had been acting appropriately, but his colleagues and team members felt he had been inconsistent, favouring some members of his team and undermining others. His line manager had recommended coaching to help him improve his communication skills, understand the culture and develop his people skills. Philippe had agreed to the coaching but felt aggrieved that the bank had not done more to prepare him for his role with training and a proper induction. The main problem, he said, was the bank’s matrix structure and its focus on profit-making, which encouraged managers to fight for territory and resources rather than building teams and developing people. In short, the bank deliberately created a culture of conflict rather than collaboration.

Of course, both sides have a point. Philippe needs to change, but so does the environment in which he is operating. I am often asked to work with individuals in a conflict situation, but rarely does the organisation ask for feedback on why the conflict occurred and what they might do to prevent it. In truth, little is done at the organisational level to mitigate conflict.

Organisational conflict is emerging as a key workplace issue among the people I coach. They tell me that there is a lack of will and/or skills to deal with conflict and have many theories as to why it occurs and what happens when it takes root. From being an unwelcome distraction, conflict in a team or department can quickly spread, to damage relationships, lower productivity and morale and in extreme cases lead absenteeism, sabotage, litigation and even strikes.

So why are so many people experiencing conflict at work? There are two key factors.

First, the matrix structure adopted by many organisations has resulted in unclear reporting lines, increased competition for resources and attention and general confusion as managers try to develop an appropriate management style.

Second, globalisation has caused change and restructuring so that businesses operate more flexibly. There has been a rapid growth in virtual teams, with people from different backgrounds and cultures working across vast regions and time zones. Email and electronic communication are the most practical ways to connect, but these can be anonymous and lead to misunderstanding.

In addition to matrix management styles and globalisation, there are a number of other sources of conflict, including:

• Different cultures and assumptions
• Differing values, opinions and beliefs
• Lack of sensitivity to race, gender, age, class, education and ability
• Poor people skills, especially communication
• Volatile, fast-changing workplaces
• Limits on resources, physical and psychological

So what are the ways to manage conflict? How can managers ensure that it does not escalate out of control? According to the Thomas-Kilmann Conflict Instrument, there are five key styles for managing conflict:

• Forcing — using your formal authority or power to satisfy your concerns without regard to the other party’s concerns
• Accommodating — allowing the other party to satisfy their concerns while neglecting your own
• Avoiding — not paying attention to the conflict and not taking any action to resolve it
• Compromising — attempting to resolve the conflict by identifying a solution that is partially satisfactory to both parties but completely satisfactory to neither
• Collaborating — co-operating with the other party to understand their concerns in an effort to find a mutually satisfying solution

Another way to look at conflict is to decide the relative importance of the issue and to consider the extent to which priorities, principles, relationships or values are at stake. Power is also an important issue – how much power do you have relative to the other person?

As a rule, I would suggest collaboration is the way to deal with important issues, although forcing can sometimes be appropriate if time is an issue. For moderately important issues, compromising can lead to quick solutions but it doesn’t satisfy either side, nor does it foster innovation, so collaboration is probably better. Accommodating is the best approach for unimportant issues as it leads to quick resolution without straining the relationship.

And lest we forget, conflict does have a positive side: it can promote collaboration, improve performance, foster creativity and innovation and build deeper relationships. As Jim Collins wrote in Good to Great, “all the good-to-great companies had a penchant for intense dialogue. Phrases like ‘loud debate’, ‘heated discussions’ and ‘healthy conflict’ peppered the articles and transcripts from all companies.” The more skilled managers become in handling differences and change without creating or getting involved in conflict, the more successful their teams and companies will become.

 

Article by, Gill Corkindale

As appeared on https://hbr.org/2007/11/how-to-manage-conflict