Organizations are composed of people who come from diverse geographic and demographic origins. The diversity in orientation contributes to disparities in beliefs, values, and perspectives. As such, it is common for conflicts to occur and exist in the work setting. It is the responsibility of management to address factors that are deemed contributory to conflicts. Martires and Fule (2004) contended that “the seeds of conflict are sown when an organization differentiates into groups and departments in order to interact more effectively with its environment… Conflicts occur over the disagreement as to what the goals should be and how these goals should be achieved” (pp. 277 & 278). The environment of the organization and the technology shape the nature of relationships among groups, as well as the extent of interdependence that is necessary. Environment and technology together primarily define the dimensions of intergroup relationships that could propagate tendencies for conflicts to occur. As emphasized, “the dimensions of intergroup relationships determine the frequency, intensity, and scope of conflict. where the dimensions include: (1) differences in goals. (2) task interdependence. (3) resource interdependence. (4) incentive and reward system. (5) task ambiguity. (6) differences in personal background and traits. and (7) differences in power and status” (Martires & Fule, 2004, pp. 284-289). As such, managers have the responsibility to evaluate the root causes of conflicts in the work setting. and be equipped with the knowledge to address and resolve these.
If conflicts remain unresolved, chaos would naturally exist. Conflicts within members of a group or among departments would affect the performance and productivity of members. which in turn, would be detrimental in the achievement of organizational goals. Conflicts could cause a decline in productivity, absenteeism, miscommunication, low morale, and an inability to achieve goals effectively. As such, conflicts are costly and could impair the generation of profits.