Conflict Costs
(Source: American Management Association Study)
Conflict
DEFINITION:
An antagonistic state or action involving divergent ideas, interests, or persons; a mental struggle resulting from incompatible or opposing needs, drives, wishes, or external or internal demands.
The American Management Association s identifies the following as the principal causes of conflict within organizations.
Principal Causes of Conflict in Organizations:
• Misunderstandings
• Personality clashes
• Lack of cooperation
• Frustration and irritability
• Substandard performance
• Differences over work method
• Responsibility issues
• Authority issues
• Value and goal differences
• Non-compliance with rules and policies
• Competition for limited resources
No matter what your job may be, you face conflict on a regular basis. And con flicts not only waste your time — they are also expensive to your organization.
Costs of Conflict to the Organization in Dollars:
Let’s estimate the costs of conflict for a medium-sized company with 00 managers:
• 100 managers x $40,000 average annual salary = $4,000,000
• 25% of the managers’ time spent on conflict = $1,000,000
And this only accounts for management time. In order to come up with a truly accurate conflict cost, you’d have to factor in the other costs:
• Wasted employee time
• Increased turnover rates
• Mistakes, poor decisions
• Missed business opportunities
• Adversely affected profits, service
• High stress, illness
Reduced employee stress Reduced labor turnover
• Individual peak performance Increased productivity and efficiency
• Increased morale and cooperation
• Maximized profit and service potential
Mastering conflict resolution techniques offers important personal benefits:
• You’ll gain cooperation from all types of people at work
• You’ll influence others for win-win outcomes.
• You’ll be better able to set your own priorities and say no when necessary.
• You’ll find yourself getting more respect and acknowledgment for what you do.
• You’ll improve your performance and productivity.
• All this will increase your promotability and allow you to operate with greater integrity and ethics.
Conflict
DEFINITION:
An antagonistic state or action involving divergent ideas, interests, or persons; a mental struggle resulting from incompatible or opposing needs, drives, wishes, or external or internal demands.
The American Management Association s identifies the following as the principal causes of conflict within organizations.
Principal Causes of Conflict in Organizations:
• Misunderstandings
• Personality clashes
• Lack of cooperation
• Frustration and irritability
• Substandard performance
• Differences over work method
• Responsibility issues
• Authority issues
• Value and goal differences
• Non-compliance with rules and policies
• Competition for limited resources
No matter what your job may be, you face conflict on a regular basis. And con flicts not only waste your time — they are also expensive to your organization.
Costs of Conflict to the Organization in Dollars:
Let’s estimate the costs of conflict for a medium-sized company with 00 managers:
• 100 managers x $40,000 average annual salary = $4,000,000
• 25% of the managers’ time spent on conflict = $1,000,000
And this only accounts for management time. In order to come up with a truly accurate conflict cost, you’d have to factor in the other costs:
• Wasted employee time
• Increased turnover rates
• Mistakes, poor decisions
• Missed business opportunities
• Adversely affected profits, service
• High stress, illness
Reduced employee stress Reduced labor turnover
• Individual peak performance Increased productivity and efficiency
• Increased morale and cooperation
• Maximized profit and service potential
Mastering conflict resolution techniques offers important personal benefits:
• You’ll gain cooperation from all types of people at work
• You’ll influence others for win-win outcomes.
• You’ll be better able to set your own priorities and say no when necessary.
• You’ll find yourself getting more respect and acknowledgment for what you do.
• You’ll improve your performance and productivity.
• All this will increase your promotability and allow you to operate with greater integrity and ethics.
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