Managing conflict is never easy, whether you're trying to resolve a conflict of your own or trying to help two people settle a dispute. The most important thing to know is that the longer you let the situation continue, the worse it'll be when it's time to resolve it. So take a deep breath, maintain your cool, and get ready to find a solution that can make everyone (reasonably) happy.
1. Make a plan for meeting. If two people are genuinely in conflict and you want to help them -- or they need your help -- then you should plan a time to meet that would make everybody happy. Of course, you may just walk into a conflict and have to solve it on the spur of the moment, but hopefully you have some time to plan in advance. If so, pick a time and place that works for both people, and make sure that they are both invested in solving the conflict. If there's real trouble, then the sooner you can get together, the better.
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Let each person state his or her side of the story. If you are in charge of managing a conflict, whether it's because you're a manager or because you're helping two people figure out their issues, you have to be an active listener. Let each person express his or her position and listen with compassion and care until each person has stated his or her feelings and desires. Don't let the people interrupt each other and make it clear that each person will take turns fully explaining him or her self.[1]
Make sure that both people are really listening to each other instead of just waiting until their turn to have their say. If necessary, have one person repeat some of the main points the other person made, so it's clear that they both have an understanding of how each person is feeling.
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Make it clear that you are there to help resolve, not solve. The people who are in conflict must figure out how to move past their problems on their own, not look to you for a magical solution that will make all of their problems go away.