17. Is conflict bad for profit? Level of Intergroup Conflict Probable Impact on Organization Organization Characterized By Level of Organizational Performance Low or none Slow adaptation to environment Few changes Little stimulation of ideas Apathy Stagnation Low Dysfunctional Situation I Situation II Optimal Functional Positive movement toward goals Innovation and change Search for problem solutions Creativity and quick adaptation to environmental changes High Disruption Interference with activities Coordination difficulties Chaos Low Dysfunctional High Situation III Mary-Jo Hatch (2000) Organization Theory (Interactionist Theory)