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Better Conflict Solutions
The cost of conflict may sometimes be hidden and difficult to put a dollar amount on, nonetheless it is serious and far-reaching.
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. Research has shown that employee’s fairness perceptions are related to 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 environment.
Contributes to poor decision-making --- Disputants may withhold important information from one another, making informed decisions impossible.
Excessive imposition on management’s time --- Studies show that a significant amount of a manager’s time is spent handling conflict related issues.
Affects people’s health - increasing absenteeism and health care costs --- 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 --- Chronic interpersonal conflict and the absence of a conflict.
resolution system are contributing factors to workplace violence.
Contributes to employee retaliatory behavior (e.g., vandalism, theft, sabotage).
Psychology research has shown that people are more likely to react negatively when they perceive that they have been treated unfairly in the workplace (conflict often involves fairness perceptions)
Effects of Unmanaged Conflict in the Workplace