OB

1. Organization
Conflict
AP P I L I VAM S I K R I S H N A
D P / 2 3 / F E / 0 1
O R G AN I S AT I O N A L B E H AV I O R

2. Conflit
• Conflict refers to a
disagreement or clash
between individuals or
groups arising from
differences in
opinions, goals,
values, or interests.

3. Importance of
Managing Conflict in
Organizations
• For maintaining a healthy work
environment, fostering
collaboration, and achieving
organizational goals.

4. Inter-organizational
Conflict
• Occurs between different organizations
or entities, such as competitors,
suppliers, or partners.
• Disputes over market share, contract
negotiations, or conflicting business
interests.

5. Root Cause
Inter-Organizational
Conflict
• Competition: Competing for
market share, resources, or
customers
• Resource Scarcity: Limited
resources, such as raw
materials or funding
• Differences in Values:
Misalignment in strategic
objectives or divergent values

6. Managing Inter-
Organizational
Conflict
• Collaboration
Strategies: Encouraging
cooperation, partnerships,
or alliances to address
common challenges and
find mutually beneficial
solutions.
• Negotiation Techniques:
Engaging in dialogue and
bargaining to reach
agreements on
contentious issues, such
as pricing or distribution.
• Mediation and
Arbitration: Utilizing
neutral third parties to
facilitate negotiations or
resolve disputes outside
of formal legal
proceedings.

7. Intra-organizational
Conflict
• Occurs within the
same organization,
involving individuals or
groups with differing
objectives, priorities, or
perspectives.
• Departmental rivalries,
disagreements
between managers
and employees, or
conflicts arising from
organizational change.

8. Root Cause
Intra-Organizational
Conflict
• Power Struggles: Conflicts may arise
from competition for authority, influence,
or control within the organization.
• Differences in Work Styles: Varied
approaches to tasks, communication, or
decision-making can lead to tensions
among team members.
• Miscommunication: Poor
communication or misunderstandings
can escalate into conflicts due to unclear
expectations or messages.

9. Managing Intra-
Organizational
Conflict
• Open Communication:
Encouraging transparent
dialogue and active
listening to address
concerns and find common
ground.
• Conflict Resolution
Training: Providing
employees with skills and
tools to manage conflicts
constructively and
respectfully.
• Leadership Role:
Empowering leaders to
facilitate discussions,
mediate conflicts, and
promote a culture of
collaboration.

10. Consequences of
Unresolved Conflict
• Decreased Productivity:
Persistent conflicts can disrupt
workflow, demotivate employees,
and hinder organizational
performance.
• Negative Impact on Employee
Morale: Unresolved conflicts
contribute to stress, frustration, and
dissatisfaction among staff
members.
• Increased Turnover Rates:
Prolonged conflicts may lead to
employee disengagement or
turnover, resulting in talent loss and
recruitment costs.

11. SAFE Security
• Interdependence Conflict
• Leadership Conflict
• Performance Review Conflict
• Communication
• Discrimination
• Unrealistic expectations

12. Conflict Between
Uber & Lyft
• Uber (2009) and Lyft (2012) are
prominent ride-hailing companies from
USA engaged in fierce competition for
market share, driver recruitment, and
pricing strategies in the transportation
industry.

13. Key Issues
Market Share: Uber and Lyft compete vigorously to capture a larger share of the ride-
hailing market through price wars and promotional offers.
Driver Recruitment: Both companies actively recruit drivers with incentives and support
programs to attract and retain them on their platforms.
Regulatory Challenges: Uber and Lyft face legal disputes and regulatory challenges in
various cities and jurisdictions regarding licensing and employment status of drivers.

14. Resolution and Outcome
Continued Competition: Uber and Lyft continue to compete vigorously, introducing new
services and expanding into new markets to outperform each other.
Partnerships and Collaborations: Both companies explore partnerships and collaborations
to enhance their services and address regulatory challenges.
Outcome: The ongoing conflict highlights the dynamic nature of the transportation industry
and benefits consumers through increased choice, improved service quality, and competitive
pricing.

15. Boeing vs. Airbus
WTO Trade
Dispute
• Boeing and Airbus, the two
largest manufacturers of
commercial aircraft, engaged
in a significant trade dispute
regarding government
subsidies and alleged unfair
competition practices.
• Started in 2004, Resolved in
2021
17 year-long conflict

16. Key Issue - WTO Trade Dispute
WTO Complaints: Boeing and Airbus filed multiple complaints with the World Trade Organization (WTO) against
each other, alleging unfair government subsidies and violations of international trade agreements.
Subsidies Allegations: Boeing accused Airbus of receiving illegal subsidies from European governments,
providing the company with an unfair advantage in the aerospace market. Conversely, Airbus accused Boeing of
benefiting from similar subsidies and tax breaks from the U.S. government.
WTO Rulings: The WTO conducted investigations and issued rulings on various aspects of the dispute, finding
both Boeing and Airbus guilty of receiving illegal subsidies at different times. The rulings led to retaliatory
measures and ongoing legal battles between the two companies and their respective governments.

17. Resolution and Outcome
Dispute Resolution: Boeing had received illegal US government and state subsidies, and
should return 9 billion dollars back to the USA which is under prohibited-subsidy
Impact on Industry: The trade dispute between Boeing and Airbus has broader implications for
the aerospace industry, affecting competition, market dynamics, and trade relations between
the United States and the European Union.
Call for Fair Competition: The conflict underscores the importance of fair competition practices,
transparency in government subsidies, and adherence to international trade regulations in the
global aerospace market.

18. Thank You