Dr. Manju Antil | Counseling Psychologist | Psychotherapist | Educator| Founder- Wellnessnetic Care

Why Conflicts Happen in Organisations

Introduction

Conflict is an inherent and unavoidable feature of organisational life. Wherever individuals and groups interact within a structured system marked by hierarchy, authority, interdependence of roles, scarcity of resources, and diversity of values, the possibility of conflict arises. In organisational psychology, conflict is not viewed merely as a dysfunction but as a natural social and psychological process that can be either constructive or destructive depending on its sources, intensity, and management.

Understanding why conflicts happen in organisations requires an integrated analysis of psychological, interpersonal, group, structural, and socio-cultural factors. Such understanding is crucial not only for organisational effectiveness but also for leadership, governance, and institutional stability—core concerns of public administration and civil services.

Conceptual Understanding of Organisational Conflict

Organisational conflict may be defined as a situation in which one party perceives that another party has affected or is about to affect negatively something that it values. This definition highlights two crucial dimensions:

1. Perception (conflict may exist even without objective incompatibility)
2. Value-laden interests (power, status, resources, identity, self-esteem)

Conflict thus has a subjective psychological foundation, even when its triggers appear structural or procedural.

Psychological and Theoretical Foundations of Organisational Conflict

1. Psychoanalytic Perspective

From a psychoanalytic viewpoint, conflict in organisations often reflects unresolved intrapsychic tensions projected onto authority figures and colleagues. According to Sigmund Freud, individuals unconsciously transfer early authority-related anxieties onto organisational hierarchies.

Implication:
Resistance to supervision, hostility toward managers, or irrational opposition to rules may stem from unconscious conflicts, not rational disagreement.

2. Human Relations and Needs-Based Perspective

The Human Relations School, led by Elton Mayo, emphasized that organisations are social systems, not merely technical ones.

Conflicts arise when:

• Emotional needs for recognition and belonging are unmet
• Employees feel ignored, undervalued, or dehumanised

Psychological insight:
Even when tasks are clear, emotional deprivation can generate deep interpersonal conflict.

3. Social Identity Theory

According to Henri Tajfel, individuals derive self-esteem from group membership, leading to:

• In-group favoritism
• Out-group stereotyping
• Intergroup conflict

Organisational relevance:
Conflicts between departments (e.g., administration vs field staff, headquarters vs regional offices) often arise not from task incompatibility but from identity-based loyalties.

4. Cognitive and Attributional Perspective

Cognitive psychology explains conflict through perceptual distortions and attribution errors. Fritz Heider showed that individuals tend to attribute others’ behaviour to internal traits rather than situational constraints.

Example:
A delayed report is attributed to “laziness” rather than workload or systemic delay, leading to blame and resentment.

5. Frustration–Aggression Hypothesis

According to John Dollard, frustration caused by blocked goals often results in aggression, which may be displaced onto colleagues or subordinates.

Organisational triggers:

• Excessive workload
• Role ambiguity
• Lack of autonomy
• Bureaucratic rigidity

Major Causes of Conflict in Organisations

I. Individual-Level Causes

1. Personality Differences
   Differences in temperament, emotional regulation, and conflict styles often lead to clashes. Drawing from Carl Jung, introverts may perceive extroverts as dominating, while extroverts may view introverts as uncooperative.

2. Values and Attitudes
   Ethical rigidity vs pragmatism, risk-taking vs risk-aversion, and change-orientation vs status quo thinking often fuel conflict.

3. Stress and Emotional Exhaustion
   Chronic stress reduces tolerance and increases irritability, making minor issues escalate into major disputes.

II. Interpersonal Causes

1. Communication Breakdown
   Ambiguous instructions, poor listening, and lack of feedback are among the most common causes of conflict. Digital communication further amplifies misunderstanding due to absence of non-verbal cues.

2. Power and Ego Dynamics
   Conflicts often stem from struggles for control, dominance, and recognition, particularly in hierarchical systems.

III. Group-Level Causes

1. Role Ambiguity and Role Conflict
   When employees receive contradictory expectations from multiple authorities, psychological strain and conflict arise.

2. Task Interdependence
   In tightly coupled systems, the failure of one unit directly affects others, leading to blame and hostility.

IV. Structural and Organisational Causes

1. Scarcity of Resources
   Competition for promotions, budgets, recognition, and authority is a structural source of conflict.

2. Reward and Evaluation Systems
   Systems that reward individual performance while demanding teamwork generate inherent tension.

3. Organisational Culture
   Authoritarian cultures suppress open disagreement, leading to latent conflict, which later emerges in dysfunctional forms.

Indian organisational studies (Sinha, Pareek) show that relationship-oriented cultures experience conflict when bureaucratic controls override interpersonal sensitivity.

V. Cultural and Diversity-Related Causes

• Differences in communication styles (direct vs indirect)
• Variations in power distance
• Cultural meanings attached to silence, dissent, and authority

In multicultural organisations, cultural misinterpretation often masquerades as personal conflict.

Case Studies

1. Indian Public Sector Organisation

In many Indian government departments:

• Hierarchical communication discourages dissent
• Employees suppress disagreement due to fear of authority

Outcome:
Unexpressed conflict manifests as passive resistance, delays, and interpersonal hostility.

Lesson:
Participative leadership and psychological safety reduce destructive conflict.

2. Global Corporate Case

In multinational teams:

• Western managers favour direct feedback
• Asian and African employees value indirect, harmony-oriented communication

Outcome:
Feedback intended as constructive is perceived as humiliating, leading to relational conflict.

Lesson:
Conflict often arises from cultural incongruence, not incompetence.

Consequences of Organisational Conflict

Negative (if unmanaged):

• Reduced productivity
• Stress, burnout, and absenteeism
• Breakdown of trust
• Institutional inefficiency

Positive (if managed constructively):

• Innovation and creative problem-solving
• Clarification of roles and expectations
• Democratic participation
• Organisational learning

UPSC-relevant insight: Conflict is not antithetical to good governance; unmanaged conflict is.

Conclusion

Conflicts happen in organisations due to a complex interplay of psychological processes, interpersonal dynamics, group identities, structural constraints, and cultural contexts. They are rooted as much in perception and emotion as in objective incompatibility. From a UPSC perspective, understanding organisational conflict is vital for effective administration, ethical leadership, and institutional resilience. The challenge before leaders and civil servants is not to eliminate conflict but to diagnose its sources, manage it constructively, and convert it into a force for reform and improvement.

Selected References (Indicative)

• Freud, S. – Psychoanalytic theory
• Mayo, E. – Human Relations approach
• Tajfel, H. – Social Identity Theory
• Robbins, S. P. – Organizational Behavior
• Sinha, J. B. P. – Culture and Organizational Behaviour
• Pareek, U. – HRD and OD frameworks