Case Study: Successful Conflict Management in Workplace Scenarios

Conflicts are an inevitable part of life, such as disagreements or issues in the workplace. It could be a difference in opinion about how to do the work, or a miscommunication with a manager or colleague, whatever the initial cause of the dispute, a minor issue can escalate into a significant problem if it is not addressed early on. 

Unresolved issues in the workplace can result in conflict, which in turn can result in negative feelings and behaviours that can significantly affect individuals, teams and organisations. Conflict in the workplace presents a number of risks to employers, including increased absenteeism, reduced productivity, costly legal claims, a high turnover of staff and poor staff morale, not to mention the reputational damage it can cause to an organisation which may impact future recruitment and/or business growth. 

So what is conflict? According to the Oxford Dictionary conflict is generally defined as a relational dispute between two or more parties, the clashing of opposed principles. A conflict is more than just a disagreement, it is a situation in which one or both parties perceive some form of threat whether or not the threat is real. 

Conflict is when there are differing opinions and actions that result in serious disagreement, argument or dispute. Conflict can arise from a clash of perceptions, goals, personalities or values that if unaddressed or unresolved, can cause an emotional build-up that triggers strong emotions and can lead to anger, hurt feelings, disappointment and discomfort.

Conflict typically extends over time; however, it can be sparked by a one-off event, such as an unexpected task or deadline. A framework was formulated by Louis Pondy to describe the phases of organisational conflict. He identified five basic stages of conflict development, and these stages are ways that can help to recognise that a problem may be building. These stages are:

• Latent – Conflict usually starts quietly. In the latent stage, those involved aren’t aware of it, but they may have hidden frustrations that could surface at any time. Sometimes, conflict may never pass beyond the latent stage, but other times people may be able to feel it coming.
• Perceived – At the perceived stage, the people involved in the conflict will be fully aware of it. This is when it may get reported to a manager, and if it does, this may be enough to stop the conflict from escalating further. If it doesn’t, this conflict may start to affect the people involved more seriously.
• Felt – The felt stage of conflict is when the conflict is not only perceived but actually felt and recognised by those involved. It may make them feel stressed or anxious, and people tend to harbour these emotions, which can perpetuate the conflict. In contrast to the perceived stage, people are starting to have reactions to the conflict in the felt stage, which can start to affect the organisation more widely. For example, if an employee is feeling stressed due to a conflict at work, they may deliver a project task late, affecting those who need to work on it next.
• Manifest – During the manifest stage of conflict escalation, people become more vocal about the conflict. They may start airing out grievances with the other people involved, and may start to become aggressive or noncompliant. It is rare that workplace conflict turns into violence, but it is important to recognise and de-escalate aggression when you notice it to prevent it from progressing any further. Other common practices during the manifest stage include emails, phone calls and face-to-face meetings where the conflict manifests itself to participants. In conflicts in the workplace with customers, for example in retail, a customer may demand to speak to someone more senior to report the conflict to.
• Aftermath – The aftermath stage is when there has been an outcome of the conflict, whether good or bad. The conflict may be resolved fully to the satisfaction of all participants, or it may be suppressed. If it is suppressed, the latent conditions of the conflict may arise again and explode in a more serious manner. De-escalation is essential and is typically easier earlier in the stages of conflict; the longer the situation drags on, the more heated and violent it might become.

Conflict also does not just happen between two individuals; for example, in the workplace conflicts can be:

• Intrapersonal conflict – conflict that someone has with themselves in their mind, which might involve conflicting thoughts, emotions and values
• Interpersonal conflict – conflict between two people
• Intragroup conflict – conflict between individuals within a team
• Intergroup conflict – conflict between different teams in an organisation

Often workplace conflict arises from differences both large and small in such things as opinions, values, motivations, perceptions, ideas or desires. The sources of workplace conflict are varied and sometimes complex, and may include but are not limited to:

• Poor working conditions such as the workplace being noisy or cramped, lack of equipment or resources etc.
• Cutbacks and downsizing that might increase workloads, increase competition between colleagues or cause stress through lack of job security
• Changes in organisational systems and processes
• Lack of autonomy and/or being micromanaged
• Bullying and harassment in the workplace
• Unrealistic expectations such as short deadlines that cannot be met
• Competition between team members and/or teams over limited resources such as budgets, equipment, staffing, etc.
• Power struggles or poor management, lack of direction or support
• Miscommunication or lack of communication
• Unclear job roles and/or inadequate training
• Differing personalities and/or divergent personal values or beliefs
• Different work styles and/or performance levels
• Real or perceived unfair treatment
• Personal stress at home or in the workplace
• Physical and/or mental health issues such as poor nutrition or lack of sleep causing mood swings and/or irritability

At any time, in almost all workplaces, employees may find themselves in challenging or uncomfortable situations where conflicts can arise and escalate during working life between individuals or teams. There are many potential signs to identify possible tension or conflict in the felt and manifest stages of conflict escalation, and recognising and addressing these can help to prevent, manage and de-escalate these situations before they manifest into something more. These signs include, but are not limited to:

Body language – This makes up some 70% of face-to-face communication, with tone and words encompassing the remaining 30%. Analysing body language is one of the most common and effective methods to tell if something isn’t right in the working environment. People typically don’t realise the body language that they subconsciously adapt. Focusing on these nuances can prove critical to recognise if workers are facing problems. Aggressive body language is easy to spot, as aggressors commonly show physical indicators like widened shoulders, frowns or crossed arms. Body language can also be passive-aggressive, people perhaps pouting, crossing arms, or rolling their eyes, instead of saying outright what is bothering them. 

Behavioural changes – Changes in normal behaviour can indicate that something may be wrong. When an individual becomes withdrawn, quiet, moody, or stops contributing to a conversation, this can indicate that they face an issue. Getting the silent treatment can show up as delayed emails or texts, or even ghosting behaviour. Being on the receiving end of these actions can trigger anxiety wondering about all the possible meanings behind the responses. 

Words or comments – The way that people express themselves verbally can provide a clear view of a potential conflict about to take place. When people become upset, they may make ‘cutting’ comments, use rude or vulgar language, or become more emotive overall, signalling emotions are running high. A curt, one-word answer such as “yes”, “fine” or “OK” to communications can also indicate that something is amiss; this level of brevity might be an indication of passive aggressiveness. Changes in tone from informal to formal out of nowhere in both verbal and written communications might mean that the person is trying to assert power. If the person is suddenly very cold or detached in their language this may mean that there is an unresolved issue.

There are many negative consequences of workplace conflict which can impact both employees and employers. If conflicts remain unresolved, then employees naturally feel stressed out and unable to focus on their job, affecting the morale and motivation of team members. When there is a conflict then employees can spend their time discussing, possibly taking sides and playing politics. This all consumes their positive energy and they can start losing their focus on tasks at hand which ultimately leads to reducing their productivity. 

When conflicts linger or are unmanaged they are more prone to produce further conflicts in the workplace. Employees who endure continuous conflicts in their workplace, often experience frustration and mental stress, which may lead to employees taking time off to deal with the stress. In some cases, employees may feel ‘burnt out’ due to continuous conflicts and feel helpless to resolve these conflicts that are causing an unpleasant and toxic workplace environment. This atmosphere can affect any employee, not only those directly involved in the conflict, but the fallout from conflict can radiate throughout a team and the wider workplace.

Workplace conflict also has vast financial costs to employers and to the economy. The largest proportion of the costs of conflict are connected to an ending of the employment relationship, either through resignation or dismissal. The Advisory, Conciliation and Arbitration Service (Acas) estimate that:

• The overall total annual cost of conflict to employers (including management and resolution) is £28.5 billion. This represents an average of just over £1,000 for every employee in the UK each year, and just under £3,000 annually for each individual involved in conflict.
• An average of 485,800 employees resign each year as a result of conflict.
• The cost of recruiting replacement employees amounts to £2.6 billion each year whilst the cost to employers of lost output as new employees get up to speed amounts to £12.2 billion, an overall estimate of £14.9 billion each year.
• 874,000 employees are estimated to take sickness absence each year as a result of conflict, at an estimated cost to their organisations of £2.2 billion.
• The vast majority of those who suffer from stress, anxiety and/or depression due to conflict continue to work. This ‘presenteeism’ has a negative impact on productivity with an annual cost estimated between £590 million and £2.3 billion.
• 1 in 5 employees take no action in response to the conflict in which they are involved, while around one-quarter discuss the issue with the other person involved in the conflict. Just over half of all employees discuss the matter with their manager, HR or union representative. In total informal discussions cost UK organisations an estimated £231 million each year.
• There is an average of 374,760 formal grievances each year. The average cost in management time of a formal grievance is estimated at £951, giving a total cost across the economy of £356 million.
• There are an estimated 1.7 million formal disciplinary cases in UK organisations each year. The estimated average cost of each disciplinary case is approximately £1,141, resulting in an economy-wide total cost of £2 billion.
• An average of 428,000 employees are dismissed each year and replacing them costs UK organisations an estimated £13.1 billion.
• 136,249 early conciliation (EC) notices were submitted across the UK, including 132,711 submitted to Acas in 2018 to 2019, indicating an intention to pursue an employment tribunal claim. The total cost of management time spent dealing with potential and actual litigation is estimated at £282 million each year with a further £264 million spent on legal fees, with £225 million in compensation awarded against employers per year.

An estimated eight million people, that is a quarter (25%) of UK employees, have encountered workplace conflict in the last year, a 2024 CIPD report has revealed. The survey of more than 5,000 UK workers discovered that the most prevalent types of conflict were:

• Being humiliated or undermined at work (48%)
• Being shouted at or having a heated argument (35%)
• Verbal abuse or insult (34%)
• Discriminatory behaviour (20%)

The study also found women were more likely than men to report at least one form of conflict (28% vs 22% for men), as were ethnic minorities compared to white people (29% vs 24%), and those with some form of disability compared to those without (35% vs 23%). 

The report also noted that people who experience conflict in the workplace have lower job satisfaction and are more likely to experience ill mental and physical health:

• Just over half (54%) of those who reported conflict said they were satisfied with their jobs, compared to 77% of those who did not experience conflict.
• Less than a third (28%) of those who experienced workplace conflict in the past 12 months reported that their work had a good impact on their mental health, compared to 43% of those who did not experience conflict.
• A quarter (25%) of those who reported experiencing conflict said work had a positive impact on their physical health, compared to 32% of those who did not face conflict.
• Two-fifths (42%) of those who experienced workplace conflict in the previous 12 months said they always or frequently felt exhausted, and 37% said they always or often felt under pressure.

Small-level disagreements frequently happen in the workplace. The vast array of people working for an organisation bring unique thoughts, backgrounds, communication styles and personal perspectives into the workplace and some of these elements will be in opposition, making occasional disagreements inevitable. There are times when disagreements in the workplace are actually quite healthy and advantageous, fostering creativity, looking at issues from different viewpoints, and recognising and understanding others’ perspectives to agree on and achieve the best solution. However, not all conflict is going to be good, particularly if it gets too heated. Conflict generally escalates when emotions run high, and even a minor disagreement between people can fester and escalate if it is not addressed and resolved at the earliest opportunity.

Let’s look at some real-life workplace scenarios that depict the development and escalation of conflict, and approaches taken to manage and de-escalate tensions.

Case Study 1: Resolving Interpersonal Conflicts

X organisation is a small charity employing around 120 people. When the marketing manager tasked their team with organising the charity’s annual conference, the assistant marketing manager assumed the role of project manager and allocated roles to the rest of the team of five. Two team members had differing opinions on which task should be given higher priority. One team member vehemently believed that task A should take precedence, whilst another team member argued that task B was more critical because it directly impacted the costs of the conference. Both team members were passionate about their perspectives and both had valid points to support their arguments. Unfortunately, this disagreement led to delays in the project and increased tension between the two individuals to the point where they were hardly on speaking terms. The atmosphere was also impacting cohesion in the rest of the team and impacting day-to-day activities too as many of the marketing tasks required high levels of team collaboration.

The project manager needed to address and resolve this conflict as a matter of some urgency to ensure that the project could be completed on time and on budget, to safeguard the day-to-day activities and productivity of the team, and to maintain the harmony and motivation of the team. 

To address the conflict between the two team members, the project manager called a resolution meeting with the entire project team, providing a safe and open space for both team members to voice their viewpoints, perspectives and concerns. The project manager acted as mediator to actively listen to both sides of the argument, and to identify the areas of conflict by asking open questions which helped to clarify the situation and to assess the conflict. 

Once the issues were out in the open and clarified, the project manager led the entire team in suggesting possible solutions to consider in order to resolve the situation. Once appropriate solutions had been identified, the project manager gained approval from both parties on the best course of action. The solution did require some compromise on both sides, but by the project team openly discussing all perspectives, both parties were able to see the bigger picture and the impact that their entrenched positions were having on the success of the project, enabling them to find the middle ground. 

Following the resolution meeting, the project manager continued to monitor the situation and the levels of cooperation between all team members without micromanaging the situation. The project manager also scheduled a follow-up with both of the team members on an individual basis to get an accurate assessment of how the resolution was working. During these meetings the project manager continued active listening which enabled them to make adjustments to the resolution when and if required.

The resolution meeting format provided an open dialogue platform which enhanced communication between all team members. This type of open and respectful communication continued in the team long after the project was completed as the team had learned to constructively voice their opinions and to listen to others’ perspectives.

Case Study 2: Addressing Manager-Employee Conflict

An employee had worked for their employer for over 2 years when a new line manager was appointed. At first the manager appeared to be taking an interest in the employee’s work; however, as time progressed this interest seemed to turn into micromanaging all their activities. The employee had always been competent at their job and had attained a certain level of autonomy for some activities, so having their work undermined was becoming stressful and distressing. 

Being consistently undermined and having to constantly seek approval for routine actions began to affect the employee’s morale. They became less motivated to take on any tasks outside their job description, leading to conflict between the employee and their manager. This undermining behaviour was starting to make the employee feel less competent and was affecting how they were actually viewed by others at work. It was also beginning to impact on their health and wellbeing as they felt stressed and started to have difficulties sleeping. The working relationship between the two parties was beginning to break down, and was starting to create a toxic atmosphere in the department too.

The situation had reached the point where the employee considered raising a grievance against the manager; however, in the first instance, they approached HR for advice. When conflict breaks out between an employee and their line manager, interventions often need to come from an outside party such as HR. 

To address the situation and to find a resolution to the conflict, HR took the time to find out exactly what was going on by investigating the situation. Once they had gathered information, HR arranged an informal meeting between the employee and their manager, explaining the objective of the meeting to both of them and giving both the opportunity to prepare. HR mediated the meeting and advised the employee that the purpose of the meeting was to support them in addressing their concerns. 

This meeting allowed both parties to talk through their issues in a safe environment, and help them to find healthy solutions to the issues. Both parties spoke candidly about how they were feeling about the situation, and the HR mediator used open questioning to help to draw out concerns. The meeting enabled both parties to view the situation from the other’s perspective and to identify areas of compromise in order to be able to move forward. In compromising, each party was able to feel that they had made a concession, which should lead to a more peaceful and cooperative relationship in the long run.

As HR drew the meeting to a close, they agreed follow-up actions with both parties which would be reflected in the individuals’ objectives. Although this was deemed an informal resolution meeting, HR documented the meeting and agreed outcomes, as the information needs to be kept on record and made available should a formal grievance or disciplinary procedure need to be conducted at a future date. HR monitored and reviewed the situation to be able to address any new issues or concerns promptly. 

It was identified during the resolution meeting that the line manager’s management style may have impacted the issue, so in a follow-up one-to-one meeting, the manager’s line manager discussed and agreed training options including developing management styles and performance management programmes to help the manager develop their skills and arranged a follow-up meeting to review progress.

Mediation is an effective way to mend relationships when there is a disagreement at work. The mediator, in this case HR, is impartial. This means they do not take sides. They are there to help everyone involved find a solution they can all agree to. Mediation can be used at any stage in a disagreement, but it is best to start it as soon as possible. The earlier the disagreement is dealt with, the less chance there is of things getting worse. Mediation can provide a swifter response to conflict and can nip potentially damaging disputes in the bud. It has been shown to reduce levels of grievances and is helpful in rebuilding trust and morale.

Case Study 3: Managing Cross-Functional Conflicts

Collaboration is essential in managing conflicts within professional projects. In a cross-functional project, team members from different departments can have conflicting ideas about the project’s direction. For example, in a relocation project, conflicts arose between the project team and the facilities management team over delays in premises alterations. 

The delays were causing blockages to the project plan and impacting on the installation of other resources such as IT equipment. This unaddressed conflict was causing delays in project timelines as team members were getting caught up in interpersonal issues rather than focusing on the project deliverables.

The facilities team’s priority was to ensure that the building work was completed to agreed standards, which was causing an overrun on the timeline. The project team’s priorities focused on completing the project on time and on budget. They were set on prioritising project creep over quality, whereas the facilities team focused on getting it right first time irrespective of budget or time constraints. Both sides were becoming personally entrenched with the opinion that their perspective was the correct one and that the other party was just being obstructive. Communication between the parties had all but broken down. 

In any project, part of the project manager’s role is to act as a dispute resolution specialist or mediator. In this case the project manager stepped in as a mediator, arranging meetings to understand each party’s concerns and needs. 

The project manager actively listened to the concerns and emotions of each team, demonstrating empathy to help build trust and rapport with the individuals, with a view to making them more receptive to resolution efforts. They used open questioning techniques to identify the underlying issues causing the disagreements to uncover the root cause and to address it directly.

The project manager encouraged all parties to express their perspectives without fear of judgement and guided the discussion towards finding common ground. They acknowledged the importance of both aspects and highlighted the potential risks of rushing development without adequate quality checks. Through open communication and collaborative problem-solving, they helped the parties to arrive at a compromise. The project timeline was adjusted to allow a balanced allocation of time for development and quality checks, ensuring satisfactory completion of the premises before the installation of equipment.

This open and honest communication is vital in conflict resolution and helps to get to the fundamentals of the issues. The project manager facilitated collaborative problem-solving sessions where all parties collectively worked towards finding solutions that would benefit everyone involved. This resolution not only resolved the conflict but also improved collaboration among the teams.

Conclusion 

As we have said earlier, conflict is a feature of every workplace at some point, as workplaces comprise different personalities, with differing motivations, values and priorities. This is why effective and timely conflict resolution is an important part of maintaining a healthy, harmonious and productive workplace. 

In this article we have highlighted three scenarios of workplace conflict that could occur in any workplace and have outlined the conflict resolution strategies implemented to help resolve the issues. In all cases:

• The early intervention to resolve issues prevented the conflicts from festering and entrenching, causing a toxic work environment not only for those personally involved but also for others in the team(s).
• Employing an empathetic approach enabled those involved to step into another’s shoes and to understand their feelings and perspectives.
• Active listening techniques such as asking open-ended questions encouraged all parties to express their feelings and concerns fully.
• Open and honest communication encouraged all parties to share their viewpoints in a safe environment without fear of judgement or reprisal, helping to foster collaboration.
• Using problem-solving techniques helped to generate possible solutions and thoroughly evaluating each proposed solution by discussing the pros and cons helped the parties involved to reach a consensus and mutual agreement for a way forward.
• Taking time to monitor and review the resolution helps to keep the new working relationships on track and helps to prevent further issues from developing.

Conflict, when managed appropriately, can become an opportunity for growth, strengthening team dynamics and fostering collaboration between individuals and teams. By employing resolution strategies such as empathising with different perspectives, active listening, identifying root causes, encouraging constructive communication, finding compromises and encouraging collaboration, individuals and teams can be facilitated to resolve conflicts to regain harmony, and promote teamwork and organisational success.