Negative:
Decrease in Productivity(Main effect)
When an organization spends much of its time dealing with conflict, members take time away from focusing on the core goals they are tasked with achieving. Conflict causes members to focus less on the project at hand and more on gossiping about conflict or venting about frustrations. As a result, organizations can lose money, donors and access to essential resources.
Wasted Resources
Workplace conflict also has a draining effect on other resources besides the productivity of the workers. First of all, many employees, especially managers, may have to attend to conflict resolution rather than their jobs. This means that people who were not even party to the conflict will get less work done, and will be scrambling to catch up. Rules and policies may have to be either developed or enforced, which also takes time and effort. In serious cases, time and money might even need to be spent hiring new workers, moving workers to other departments or editing schedules. In the most severe cases, lawsuits can result from workplace conflict.
Public Perception
Workplace conflict can also cause harm by taking a negative toll on the public image of a company. Conflict can turn off otherwise devoted customers or contradict the marketing of the company, making it unappealing to potential clients. In certain industries, conflicts and tension might be evident to customers, directly influencing their perception of the company. In other cases, conflicting personalities might give misleading or contradictory information to potential clients. In the worst cases, major scandals can result from conflicts. Some might even be severe enough to destroy the company image completely.
Lack of Communication
Communication is essential to a healthy and productive business. Employees need to collaborate and work together to get the job done in the most efficient manner. Conflict can take a big bite out of