Organizational conflict is a state of discord caused by an actual or perceived opposition of needs, values and interests between people working together. Conflict takes many forms in organizations. There is the inevitable clash between formal authority and power and those individuals and groups affected. There are disputes over how revenues should be divided, how the work should be done and how long and hard people should work (team and relationship conflict). There are jurisdictional disagreements among individuals, executives, managers, teams, departments, and between unions and management. There are subtler forms of conflict involving rivalries, jealousies, personality clashes, role definitions, and struggles for power and favor. There is also conflict within individuals — between competing needs and demands — to which individuals respond in different ways. A process that begins when an individual or group perceives differences and opposition between itself and another individual or group about interest and resources, beliefs, values or practices that matter to them. It occurs or arises due to difference in expectation and knowledge, poor communication, fear, attachment, incompatible values, harassments, stress, scarce resources, past trauma, misunderstandings and perceived oppression. It also arises usually during mergers and acquisitions, union negotiations, performance appraisals, interpersonal issues, changing job functions, downsizing and reorganizations.
Conflict has negative effects on organizations such as, increase in turnovers, absenteeism, health issues, wasted resources, increase in production cost and decrease in job satisfaction and performance. Its positive effects include, increases effort of workers, diagnostic information, creativity, learning of new skills and forming of deep bonds. Conflicts can be handled through integrating, forcing, competition, sharing, smoothing,