Conflict comes in two forms: functional and dysfunctional. Functional conflict results in positive change for an organization. Competition is an example of functional conflict. Healthy competition encourages both parties to do their best and often leads to exploring process improvement initiatives within your division. Improved processes contribute to greater productivity and cost savings, which is a positive change for the company. Dysfunctional conflict causes harm to an organization by tearing down the team and focusing on the individual. Workplace bullying is a great example of dysfunctional conflict (Baack, 2012). Bullies undermine individual and group success. The negative impact of bullying on individuals includes lack of motivation, stress and suffering work performance. Impacts on a company include decreased productivity, higher medical costs, an excessive turnover rate, and a hostile work environment (Leigh, Robyn, Madelyn & Jenni, 2014). Leaders must be proactive in combating dysfunctional conflicts by creating official workplace bullying policies, educating employees on how to identify and handle bullies, and taking quick action to remove or eliminate a bully. There are four steps in conflict resolution. They identify the parties involved, identify the issues, establish the position of both parties, find an area of intermediation and finally make a decision. The ideal solution is a win-win, but could involve win-lose or loss-lose options (Baack, 2012). Ultimately, open and honest communication through conflict resolution will build trust between a leader and a
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