Conflict happens when there are dissimilarities in opinions, values or goals in deciding or resolving a matter where each party would want the best outcome. This situation is common when there are a group of people deciding on a matter or problem.
As each individual is unique, more people in a group will generally generate more ideas in resolving certain issues. In this case, Lofgren introduced the framework of six-person executive group into Schneider National that has a set of skills, perspectives and experience so that the top management of the company will be more effective in bringing the company towards success. As individuals in the executive team on Schneider National have their own specific scope of expertise, having more different opinions to resolve an issue can lead to more chances for conflict to happen as each member in the team will generally have their own indication and ideas of achieving certain goals. This situation will create cognitive conflicts.
This is where a leader should play its role in managing conflicts arising in the management team to make sure that teamwork remains healthy. Some of the conflict management techniques are as follows:
• Negotiation
It is the process of making joint decisions when the parties involved have different preferences.
• Alternative dispute resolution
A neutral third party works with people involved in a negotiation to help them resolve impasses and settle disagreements.
• Arbitration
A third party acts as a “judge” and has the power to issue a decision that is binding on all disagreeing parties.
• Mediation
A neutral third party tries to engage disputing parties in a negotiated solution through persuasion and rational argument.
In this case, Lofgren as the Chief Executive Officer of the company has remained fair and took initiatives in making sure that the executive group works together. At first, Lofgren uses negotiation to solve conflicts. He