Conflict: Overview, definition, and example
What is conflict?
Conflict refers to a situation where two or more parties have opposing interests, goals, or views that lead to disagreement, dispute, or friction. In a business context, conflict can arise between different individuals, teams, departments, or organizations when their objectives, values, or actions are not aligned. Conflict can manifest in various ways, including disputes over contracts, performance expectations, resource allocation, or personal disagreements.
For example, a conflict may arise between a company and a supplier over the quality of delivered goods, or between employees over the distribution of tasks or responsibilities.
Why is conflict important?
Conflict is important because, when managed effectively, it can lead to better decision-making, improved communication, and more innovative solutions. However, unresolved conflict can damage relationships, disrupt business operations, and lead to legal issues. Identifying, addressing, and resolving conflict in a timely manner is crucial for maintaining a productive work environment and protecting the interests of all parties involved.
For businesses, managing conflict is key to ensuring smooth operations, maintaining positive relationships with partners and employees, and avoiding costly disputes or legal actions.
Understanding conflict through an example
Imagine a small business that faces a conflict between two departments: marketing and sales. The marketing team believes that a new advertising campaign will drive sales, while the sales team feels that the campaign does not target the right audience. This conflict affects both teams’ productivity, and if left unresolved, it could impact the company’s overall performance. To address the conflict, management might facilitate a meeting between both teams to discuss their perspectives and find a compromise.
In another example, a company may experience a conflict with a client over contract terms or performance expectations. If the dispute is not handled properly, it could lead to legal action. Resolving the conflict might involve renegotiating terms or seeking mediation.
An example of a conflict resolution clause
Here’s how a conflict resolution clause might look in a contract:
“In the event of any conflict or dispute arising between the Parties under this Agreement, the Parties agree to attempt to resolve the matter through informal negotiation. If the conflict cannot be resolved within [Insert Time Period], the Parties agree to submit the dispute to mediation or arbitration as provided in Section [Insert Section Number].”
Conclusion
Conflict is a natural part of business and can arise in many forms. While conflict itself is not inherently negative, managing it effectively is essential to maintaining positive relationships, ensuring productivity, and avoiding legal complications.
By including clear conflict resolution clauses in contracts and addressing issues as they arise, businesses can navigate disputes effectively and foster a collaborative, solution-focused environment.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.