Effects of Unmanaged Conflict in the Workplace

Comments

Increases risk of expensive and destructive litigation

Even winning a lawsuit can mean losing more than you gain

Interferes with teamwork

It's been estimated that over 60% of performance deficiencies result from employee relationship problems

Ruins relationships

Mediation is an ideal process for restoring damaged relationships, which is vital for employees whose job functions are interdependent

Lowers productivity, job satisfaction, and job commitment

Conflict often entails perceptions of unfair treatment - psychology research has shown that employee's fairness perceptions are related these factors

Increases costly turnover

Continual unresolved conflict is a decisive factor in at least 50% of all voluntary terminations; and accounts for up to 90% of the cause of involuntary terminations

Interferes with attracting high-quality employees

Employees are interested in more than salary; they want positive work environments

Contributes to poor decision-making

Disputants may withhold important information from one another making informed decisions impossible

Excessive imposition on management's time

Affects people's health - increasing absenteeism

People's immune systems are weakened with prolonged exposure to stress, making them more susceptible to illness

Unnecessary restructuring of jobs

It is expensive and inconvenient to structure jobs around employees while trying to prevent them from interacting

Contributes to violence in the workplace

Contributes to employee retaliatory behavior (e.g., vandalism, theft)

Psychology research has shown that people are more likely to react negatively when they perceive that they have been treated unfairly in the workplace (Note: conflict often involves fairness perceptions)