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SEPTEMBER 2011

VOL 3, NO 5

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
Conflicts and strategies for their resolution: A case of organizations operating in Khyber Pakhtunkhwa, Pakistan.
Muhammad Nouman(Corresponding Author)
Lecturer, Institute of Business and Management Studies (IBMS), Khyber
Pakhtunkhwa Agriculture University Peshawar, Pakistan
Imran Khan
Lecturer, Qurtuba University of Science and Technology Peshawar, Pakistan
Faisal Khan
Lecturer, Quaid-e-Azam College of Commerce, University of Peshawar, Pakistan

Abstract
At every level of human interaction conflict arises. Conflicts may be of different natures. This research aims to analyze: the nature of conflicts faced by the employees working in the organizations that are operating in Khyber Pakhtunkhwa, reasons for such conflicts, and the strategies adopted by these organizations for resolving conflicts. Data has been collected from nine different organizations operating in Khyber Pakhtunkhwa including banks, Non-Governmental Organizations (NGOs), education institutions, and a non financial company using questionnaires. The collected data has been analyzed using descriptive statistics, and charts. Findings suggest that most of the times conflicts arise in these organizations between management and employees, and their nature is interpersonal and functional. The most common reasons of the conflicts within these organizations are lack of communication, misperception, difference in opinions, and discrimination. Management of these organizations tries to resolve these conflicts and the most commonly used strategies for this purpose are the collaborating, accommodating, and avoiding strategies.

Key words: Conflict, Nature, Reasons, Resolution, Strategies.

1.

Introduction

Conflict is the disagreement between at least two persons or groups on specific issues, or it is a process in which one party perceives that its interests are being opposed or negatively affected by another party. Conflict vastly carries different meaning depending on the situation, and circumstances. Conflict may be a war, an opportunity, or a journey (David Buchnan, 1997). Conflict is a process which begins when one party perceives that another party has frustrated, or is about to frustrate. (Thomas-1976)
An organization consists of different stakeholders, inside and outside stakeholders. Each stakeholder group has its own goals and interest, which sometime overlap with those of other groups. Stakeholders’ goals and interest are not identical and conflict arises when a group pursues its own interest on the
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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 5 expense of another. Organization conflict is the clash that occurs when the goal directed behavior of one group blocks or thwarts (frustrate) the goals of another (David Buchanan-1997).
Within an organization, conflicts may arise between
Management-Management
Management-Employees
Employees-Employees
To grow, change and survive, an organization must resolve conflicts among stakeholders. According to a recent survey conducted by American Management Association, Managers spend at least 24 percent of their time in a working day resolving conflict (Guttman, 2009).
Purpose of this study is to find out the nature of different conflicts that commonly arise within the organizations operating in Khyber Pakhtunkhwa, the factors that lead to such conflicts, and the strategies that are used to handle these conflicts.
2.

Literature Review

Rahim (2010) states that the interpersonal conflict can be classified as functional and dysfunctional.
Consequently, the strategies to solve them can also be classified as functional and dysfunctional.
According to the author there are many styles of handling interpersonal conflicts including avoiding, compromising, integration, dominating and obliging. Functional strategy is concerned with greater use of integrating and less use of avoiding style plus greater use of obliging and less use of dominating styles. On the other hand, the dysfunctional strategy is concerned with the greater use of avoiding style and less use of integrating style plus greater use of dominating style and lower use of obliging styles.
His findings suggest that the functional strategies results into better job satisfaction than the dysfunctional strategies.
Fouseki and Kallopi (2009) conducted a study which suggests a conflict negotiation model for settling dispute of archeologists also applicable to developers. The model highlighted two main notions (ideas) to resolve conflict and related emergence. These notions were classified as “notion of interdependence” and the “notion of the negative probability of performance”. The notion of interdependence referred to two or more elements of conflict where change in one element affects the other because they were strongly interrelated, on the other hand, notion of negative probability or performance refers to what the one party thinks about the negotiation to meet the party’s need. Based on these two notions the study concluded a negotiation model for heritage management to resolve the conflict situation.
Greer and Kleef (2008) conducted a study to examine the key elements of power, status, conflict, and teams. The relationship of Power levels and power distance in team was evaluated and its impact on the conflict resolution was presented. The study investigated the effect of team power structures including power distance in a team as well as actual power level on the team’s ability to resolve conflict. The paper proposed that if the team has low power level then the power distance has positive impact on conflict resolution. On the other hand, if team members have high level of power then the power distance has negative impact on team conflict resolution.
According to Finch (2005) conflict is inevitable in any business but the conflicts of family business are unique form other business. According to the author conflicts are both visible and invisible in the organization, visible are those which are defined and discussed by the participants of the conflict while
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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 5 unmanifest cover both disclosed and undisclosed conflicts (Which were known or unknown to both the participants). The paper concluded that the conflict must be resolved, if not, the organization would collapse and that without conflict organization may not change and develop.
Rahim and Psenicka (2004) conducted a study to examine the mediating and moderating effect of conflict handling style. Study examines difference groups and data were collected from 398 managers including 1116 subordinates. Study examined the effect of mediating and moderating conflict management on the relationship between conflict and job performance. Author suggested that management may encourage problem solving by subordinates. Also subordinates were encouraged to solve their intergroup conflict problem and increase job performance.
Kuhn and Poole (2000) studied the relationship between group conflict management style and effective group decision making. To analyze this relationship 11 different ongoing groups in two large organizations were observed in U.S. During the research different observational methods were used to determine group conflict management style towards effective decision making. It was seen that task those were difficult or complex arose conflict in members. Findings suggest that groups that develop a combine or whole conflict management style, make more effective decisions than groups that use confrontation and avoidance style.
Medina et al. (2002) conducted a study to evaluate the relationship between task and relationship conflict; its influence on various variables of organization and personal including wellbeing, tension, satisfaction and competency to leave a job at the end.

This study was conducted in tourism

organization. Positive relationship was found between task and relationship conflict.
Clark and Boardman (2003) made an attempt to examine the effect of conflict on the group decision making process and the individual commitment to decision implementation. Study developed a model of determinants of individual commitment and decision implementation. This model was tested by using the result from a sample of 84 MBA students who worked in groups of four in laboratory. The study suggests that both decision commitment and decision understanding have positive effect on decision making process.
Eizen and Desivilya (2005) examined the relationship between conflict management patterns within work teams and individuals group identification, social and global self-efficiency. The study suggests that individual conflict management patterns within a work team are affected by both dispositional variable—self efficacy, as well as situational variables.
Oluremi and Victor (2009) conducted a study to examine the impact of transformation and emotional leadership behavior on conflict and team outcome. The study focused on the employee’s reaction to conflict, they proposed that moderate leadership had link between team members, response to conflict, team performance and bullying. He concluded that, the leader with transformation style have a significant role in the management of emotions and emotional consequences for teams.
Guttman (2009) conducted a study to highlight the role of leader in conflict resolution within organization. The study concludes that along with all other essentials, one of the most important roles of leader is to manage conflict in the organization. Study assessed that if leader would not do so
(manage conflict) the organization may collapse.

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3.

SEPTEMBER 2011

VOL 3, NO 5

Methodology

Primary data has been used in this research study. Questionnaire has been used for data collection.
Questionnaire includes nine closed ended questions. The first three questions investigate the nature of conflicts that arises in an organization. The next three questions investigate the reasons for conflicts while, the last three questions investigate the strategies adopted by management for conflict resolution.
The questionnaire has been attached in the appendix 1.
Research has been conducted in three districts of Khyber Pakhtunkhwa namely Peshawar, Bunir and
Mardan. Data has been collected from nine different organization including five Banks, two NGOs, an education institute and a non financial company. Questionnaires were distributed among 181 employees, out of these 150 questionnaires were returned thus, response rate was 82.87%. A table has been included in appendix 2 which shows details regarding names of the organizations included in the sample, number of respondents selected from each organization, and their response rate.
The questionnaire includes three questions in which five point Likert scale has been used for acquiring responses where, 1 represents strong disagreement, 5 signifies the strong agreement by the respondents, and 3 stands for neither agree nor disagree. These three questions has been analyzed using descriptive statistics, while, the rest of the questions has been analyzed using tables and charts.
4.

Analysis and Findings

4.1. Nature of conflicts:
The collected data indicates that conflict is inevitable in the said organizations. Mostly, the conflicts arise between management and employees in these organizations. 26 respondents replied that conflicts mostly arise between management and management, whereas, 45 respondents replied that most of the conflicts arise among management and employees. Tables and charts showing details of the responses of the respondents are attached in the appendix 3.
The conflicts that normally arise in these organizations have two aspects; personal, and interpersonal.
69 respondents agreed that they mostly face personal conflicts (16 for management and 53 employees), whereas, 81 respondents (27 for management, 54 employees) feel that the conflicts they mostly face are interpersonal. Mostly, the conflicts within an organization are functional or dysfunctional. 92 respondents (25 management and 67 employees) responded that they mostly face functional conflicts, while, 58 respondents replied that they confront with dysfunctional conflict in their organization.

4.2. Reasons of conflict:
There are many factors responsible for arising conflicts. Findings suggest that the most common reasons of conflicts are, personal beliefs, miscommunication, sudden change in a policy, difference of opinions and misunderstanding.
The results reveal that miscommunication or communication gap is one of the main reasons of conflict between employees and management. The survey conducted, shows that 91 respondents (35 management—56 employees) feel that conflict arise within their organization due to lack of communication between management and employees. While 34 respondents (4 management, 30
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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 5 employees) responded that the main reason of conflict is personal belief, 25 respondents (4 management, 21 employees) relate conflict situation to sudden change in policies.
The mean of the responses for the fifth and sixth questions is near to 4 with a very low coefficient of variation, which reveals that the respondents are agreeing that conflicts arise when their power or authority is challenged or snatched away from them and given to others, or when there is a difference of opinions between two persons or groups.
4.3. Strategy to resolve conflict situation:
The mean of the responses for seventh question is 3.84 and the coefficient of variation is approximately
25 percent, which means that respondents feel that whenever conflict arise, their management tries to resolve it. 58 respondents feel that their management wants to settle response, 54 respondents feel that their management most of the time take over the problem, while, the rest of the candidates responded that their management ignore the conflicts.
Findings suggest that collaborating strategies are mostly used for conflict resolution. The second most dominant strategy is the avoiding strategy, while, the least commonly used strategies are the compromising and the competing strategies.
5.

Conclusion and Recommendations

Strategy is a course of action followed by an organization for the accomplishment of a definite task.
Affectivity of a strategy largely depends upon the situation. The results indicate that conflicts arise in all levels of organization, but as compared to others, mostly conflicts arise between management and employees. Most of the respondents are of the views that the conflicts mostly faced by them are functional and interpersonal. The most noticed reasons of conflict within an organization are the dearth of communication, misperception, and difference in opinions or when the power/authority is given to someone on the basis of discrimination. The most dominant strategies are collaborating, avoiding and accommodating strategies.
But the fact is that to follow one strategy is not sufficient and workable for all kinds of conflicts. No organization can adopt one strategy under different situations. Strategy should be changed according to the demands of the situation and time.

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VOL 3, NO 5

Appendix 1
Questionnaire
This questionnaire is purely meant for research purpose. Please fill it by marking the most relevant option given against each question. Confidentiality of data obtained will be ensured at any cost.
(Personal/Organizational Information)
Gender:
Male

Female

Age (in years): __________

Qualification: __________

Organization: _____________

Your Designation: _________

Tenure in this Organization: ________ years ________ months
A) Nature of the conflicts:

1) Most of the conflicts arise in our organization between:
Management-Management
Management-Employees
Employee-Employee
Among All

2) The conflicts that mostly arise in our organization are:
Functional conflicts, which support and improve group performance
Dysfunctional conflicts, which damage group performance

3) Most of the conflicts that arise in our organization are:
Personal conflicts, which arise between two persons, most often as a result of mutual dislike or personality clash.
Interpersonal conflicts, which arise when individual or groups frustrate or try to frustrate the goals or efforts of other.
B) Reasons of the conflicts:
4) Most of the conflicts arise in the organization due to:

Personal belief
Miscommunication
Sudden change

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5) Conflicts arise when one believes that his/her authority is being challenged by another.

1.

Strongly Disagree

2.

Disagree

3.

Neither Agree Nor Disagree

4.

Agree

5.

Strongly Agree

6) Conflicts mostly arise due to misunderstanding.

1.

Strongly Disagree

2.

Disagree

3.

Neither Agree Nor Disagree

4.

Agree

5.

Strongly Agree

C) Strategies for conflict resolution:
7) When conflict arises, the management tries to resolve the situation.
1.

Strongly Disagree

2.

Disagree

3.

Neither Agree Nor Disagree

4.

Agree

5.

Strongly Agree

8) Whenever there is conflict our management adopts the following strategy:
Avoiding: Hide and ignore conflicts.
Compromising: Sacrifice personal interests for others.
Accommodating: Ignore own goals and resolve conflict by giving into others.
Collaborating: conflict is seen as a problem to be solved, finding solution agreeable to all sides. Competing: Satisfy own interests at the expense of others’ interests.

9) Our management response to personal conflict:

Settle dispute
Take over the problem
Ignore

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Appendix 2
Organizations included in the sample, number of employees selected from each organization, and their response rate. No. of Questionnaires Sent

No. of Returned

Organizations

Management

Employees

Management

Employees

Management

Employees

NGOs
World Vision
NRC

5
7

25
23

5
7

15
13

100
100

60
56.52

6
3
3

14
7
20

6
3
3

14
7
20

100
100
100

100
100
100

2

4

2

4

100

100

Colleges
Khyber College

9

31

9

25

100

80.65

Industry
Stanley Co. ltd

8

14

8

9

100

64.29

Total

43

138

43

107

100

77.54

Banks
Allied Bank ltd.
Bank Alfalah ltd.
NIB Bank ltd.
Albaraka Islamic
Bank Ltd

Questionnaires

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Response rate in %

625

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VOL 3, NO 5

Appendix 3
Tables and charts showing descriptive statistics (for question five, six, and seven), and the details of the responses for each question through tables and charts.
Q.1

Most of conflicts arise in organization between:
Table 1
Management

Employee 's

Total

Management-Management

5

21

26

Employee-Employee

4

10

14

Management-Employees

11

34

45

Among all

23

42

65

43

107

150

Total

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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
Q.2

VOL 3, NO 5

The conflicts that mostly arise in our organization are:
Table 2
Management

Employee

Total

Functional

25

67

92

Dys Functional

18

40

58

43

107

150

Total

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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
Q.3

Most of the conflicts that arise in our organization are:
Table 3
Management

Employee

Personal Conflict

16

53

69

Interpersonal conflict

27

54

81

43

107

150

Total

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Q.4

VOL 3, NO 5

Most of the conflicts arise in the organization due to:
Table 4
Management

Employee

Total

Personal Belief

4

30

34

Miscommunication

35

56

91

Sudden Change

4

21

25

43

107

150

Total

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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

Q.5

Conflicts arise when one believes that his/her authority is being challenged by others.
1.
2.
3.
4.
5.

Strongly disagree
Disagree
Neither Agree nor Disagree
Agree
Strongly Agree

Descriptive Statistics
Coefficient
Mean

Std. Deviation

Variance

variation (%)

3.57

1.08

1.16

of

30.25

Authority challenged by others Q.6

Conflicts mostly arise due to misunderstanding.
1.
2.
3.
4.
5.

Strongly disagree
Disagree
Neither Agree nor Disagree
Agree
Strongly Agree

Descriptive Statistics
Coefficient
Mean
Misperception
Q.7

Std. Deviation Variance

variation (%)

3.85

0.91

of

23.64

0.83

When conflict arises, the management tries to resolve the situation.
1.
2.
3.
4.
5.

Strongly disagree
Disagree
Neither Agree nor Disagree
Agree
Strongly Agree

Descriptive Statistics
Coefficient
Mean
Management tries to resolve conflicts Std. Deviation

Variance

variation (%)

3.84

0.95

0.90

of

24.73

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Q. 8

VOL 3, NO 5

Whenever there is conflict, management adopts the following strategy:
Table 8
Respondents
Avoiding

39

Compromising

18

Accommodating

31

Collaborating

51

Competing

11

Total

150

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Q.9

VOL 3, NO 5

Our management response to personal conflict:
Table 9
Respondents
Settle Dispute

58

Ignore

38

Take over the problem

54

Total

150

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References
Buchnan, D., & Huczynski, A. (1997). Organization Behavior, 3rd edition. New York: Prentice Hall Inc.
Clark, M., & Boardman, A. E. (2003). Group Decision making effectives: The effects of conflict. In: Sauder
School of Business, 16th Annual IACM Conference. Melbourne, Australia, April 2003.
Eizen, D., & Desivilya, H. S. (2005). Conflict management in work teams: The role of social self-efficacy and group identification. International Journal of Conflict Management, 16(2), 183-208.
Finch, N. (2005). Identifying and addressing the causes of conflict in family business. Retrieved from: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=717262. Fouseki, & Kalliopi (2009). Conflict resolution in the management of In-situ museums. In: 22nd Annual
International Association of Conflict Management Conference. Kyoto, Japan, 15-18 June 2009.
Greer, L. L., & Kleef, G. A. (2008). Power Distance, Conflict Resolution and Status Conflicts in Teams: How
Do

Team Power Dynamics Impact Conflict Resolution?. In: School of Organisation and Management, The
University of New South Wales, IACM 21st Annual Conference Paper. Sydney, Australia, 9

November

2008.

Guttman, H. M. (2004). The role of leaders in conflict management. Leader to Leader Journal, 31, 48-53.
Kuhn, T., & Poole, M. S. (2000). Do conflict management styles affect group decision making?. Human research communication, 26(4), 558-590.

Medina, F. J., Dorado, M. A., Munduate, L., Martínez, I., & Cisneros, I. F. J. (2002). Types of conflict and personal and organizational consequences. In: 15th Annual Conference of the International Association

for Conflict

Management. Utah, January 2002.

Oluremi, A., & Victor, C. (2009). The role of transformational and emotional leadership in the relationship between conflict and team outcomes. In: 22nd Annual International Association of Conflict Management
Conference. Kyoto, Japan, 15-18 June 2009.
Rahim, A. (2010). Functional and dysfunctional strategies for managing conflict. In: Massachusetts, 23rd Annual
International association of conflict management conference. Boston, USA, 24-27 June 2010.
Rahim, A., & Psenicka, C. (2004). Conflict management strategies as Moderators or Mediators of the relationship between Intra-Group Conflict and job performance. In: Annual conference of the International
Association for Conflict Management. Pittsburgh, PA, USA, 15-18 June 2004.

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References: Buchnan, D., & Huczynski, A. (1997). Organization Behavior, 3rd edition. New York: Prentice Hall Inc. Clark, M., & Boardman, A. E. (2003). Group Decision making effectives: The effects of conflict. In: Sauder School of Business, 16th Annual IACM Conference Eizen, D., & Desivilya, H. S. (2005). Conflict management in work teams: The role of social self-efficacy and group identification Finch, N. (2005). Identifying and addressing the causes of conflict in family business. Retrieved from: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=717262. Fouseki, & Kalliopi (2009). Conflict resolution in the management of In-situ museums. In: 22nd Annual International Association of Conflict Management Conference Greer, L. L., & Kleef, G. A. (2008). Power Distance, Conflict Resolution and Status Conflicts in Teams: How Do Guttman, H. M. (2004). The role of leaders in conflict management. Leader to Leader Journal, 31, 48-53. Kuhn, T., & Poole, M. S. (2000). Do conflict management styles affect group decision making?. Human research Medina, F. J., Dorado, M. A., Munduate, L., Martínez, I., & Cisneros, I. F. J. (2002). Types of conflict and personal Oluremi, A., & Victor, C. (2009). The role of transformational and emotional leadership in the relationship between conflict and team outcomes Rahim, A. (2010). Functional and dysfunctional strategies for managing conflict. In: Massachusetts, 23rd Annual International association of conflict management conference Rahim, A., & Psenicka, C. (2004). Conflict management strategies as Moderators or Mediators of the relationship between Intra-Group Conflict and job performance

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    This research also takes into consideration the methods adopted by the organization for handling and resolving the conflict. The main focus of this study revolves around the lower level management of the organization.…

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