Companies can lose time over conflicts: an analysis of internal indirect conflict costs
Abstract
Consequences of conflict are widely researched qualitatively, but quantitative data on the costs of conflict are lacking. This study aims to explore conflict costs by categorizing and testing them and providing preliminary quantitative data. The focus lies on internal indirect conflict costs, which are measured in terms of lost time. This research is based on self-reports of 675 survey participants, who evaluated the amount of time they spent on internal indirect conflict costs of a personal conflict. The costs are analysed in form of their explanatory power, as well as the extent to which they are affected by conflict duration and strength. All identified internal indirect conflict costs were positively correlated. The duration and intensity of the conflict affect the amount of time wasted, meaning that groups with shorter duration or weaker intensity differ from higher groups. The results indicate that conflict costs lead to remarkable costs for organizations. To remain competitive, managers need to balance the opportunities and difficulties of conflicts and carefully manage their costs. This study contributes to the unexplored research area of conflict costs and is one of the first research findings to scientifically analyse the topic.
Keyword : conflict costs, conflict duration, conflict strength, conflict, internal indirect conflict costs, lost time
How to Cite
Dirrler, P., & Podruzsik, S. (2022). Companies can lose time over conflicts: an analysis of internal indirect conflict costs. Business: Theory and Practice, 23(2), 288–301. https://doi.org/10.3846/btp.2022.16449
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Canada Pension Plan. (2008). CPP global human capital report: Workplace conflict and how business can harness it thrive. https://img.en25.com/Web/CPP/Conflict_report.pdf
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Conbere, J. (2000). Designing conflict management systems to resolve workplace conflicts. Journal of Alternative Dispute Resolution in Employment, 2(3), 30–36.
Dana, D. (2001). Conflict resolution: Mediation tools for everyday worklife. McGraw-Hill.
De Dreu, C. K. W. (2008). The virtue and vice of workplace conflict: Food for (pessimistic) thought. Journal of Organizational Behavior, 29(1), 5–18. https://doi.org/10.1002/job.474
De Dreu, C. K. W., & Weingart, L. R. (2003). Task versus relationship conflict, team performance, and team member satisfaction: A meta-analysis. Journal of Applied Psychology, 88(4), 741–749. https://doi.org/10.1037/0021-9010.88.4.741
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Diederich, A. (2003). Decision making under conflict: Decision time as a measure of conflict strength. Psychonomic Bulletin & Review, 10(1), 167–176. https://doi.org/10.3758/BF03196481
Freres, M. (2013). Financial costs of workplace conflict. Journal of International Ombudsman Association, 6(2), 83–94.
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Jehn, K. (1997). A qualitative analysis of conflict types and dimensions in organizational groups. Administrative Science Quarterly, 42(3), 530–557. https://doi.org/10.2307/2393737
Jehn, K., & Bendersky, C. (2003). Intragroup conflict in organizations: A contingency perspective on the conflict-outcome relationship. Research in Organizational Behavior, 25, 187–242. https://doi.org/10.1016/S0191-3085(03)25005-X
Jehn, K. A. (1995). A multimethod examination of the benefits and detriments of intragroup conflict. Administrative Science Quarterly, 40(2), 256–282. https://doi.org/10.2307/2393638
Katz, N. H., & Flynn, L. T. (2013). Understanding conflict management systems and strategies in the workplace: A pilot study. Conflict Resolution Quarterly, 30(4), 393–410. https://doi.org/10.1002/crq.21070
Kreisman, B. (2002). Insights into employee motivation, commitment and retention. Business Training Experts. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.582.5654&rep=rep1&type=pdf
Kuriakose, V., Sreejesh, S., Heerah, J., Anusree, M. R., & Shelly, J. (2019). Process conflict and employee well-being. International Journal of Conflict Management, 30(4), 462–489. https://doi.org/10.1108/IJCMA-12-2018-0142
Lebrague, R. M., Benamar, S., & Rahmani, Y. Z. (2020). Organizational conflict and its management: A theoretical analysis. Social Sciences Journal, 14(2), 218–228.
Levine, S. (1998). The many costs of conflict. In S. Levine (Ed.), Getting to resolution. Barrett-Koehler.
Lipsky, D. B., & Avgar, A. C. (2008). Toward a strategic theory of workplace conflict management. Ohio State Journal on Dispute Resolution, 24(1), 143–190.
Marineau, J. E., Hood, A. C., & Labianca, G. (2018). Multiplex conflict: Examining the effects of overrlapping task and relationship conflict on advice seeking in organizations. Journal of Business and Psychology, 33, 595–610. https://doi.org/10.1007/s10869-017-9511-z
Meier, L. L., Gross, S., Spector, P. E., & Semmer, N. K. (2013). Relationship and task conflict at work: Interactive short-term effects on angry mood and somatic complaints. Journal of Occupational Health Psychology, 18(2), 144–156. https://doi.org/10.1037/a0032090
Murtha, R. (2005). Workplace conflicts challenge businesses. Fairfield County Business Journal, 44(20), 42.
O’Neill, T. A., Allen, N. J., & Hastings, S. E. (2013). Examining the “Pros” and “Cons” of team conflict: A team-level meta-analysis of task, relationship, and process conflict. Human Performance, 26(3), 236–260. https://doi.org/10.1080/08959285.2013.795573
OPP & Chartered Institute of Personnel and Development. (2008). Fight, fight or face it? Celebrating the effective management of conflict at work. https://eu.themyersbriggs.com/-/media/10e61ce66e29407080ef0caf9f3dc846.ashx
Pazos, P., & Canto, A. M. (2013). The role of team preparation processes and task conflict on virtual team performance. In Proceedings of the 2013 Industrial and Systems Engineering Research Conference (pp. 670–675). Springer.
Pelled, L. H., Eisenhardt, K. M., & Xin, K. R. (1999). Exploring the black box: An analysis of work group diversity, conflict and performance. Administrative Science Quarterly, 44(1), 1–28. https://doi.org/10.2307/2667029
Pondy, L. R. (1967). Organizational conflict: Concepts and models. Administrative Science Quarterly, 12(2), 296–320. https://doi.org/10.2307/2391553
Porath, C., & Pearson, C. (2009). How toxic colleagues corrode performance. Harvard Business Review, 87(4), 24.
Puck, J., & Pregernig, U. (2014). The effect of task conflict and cooperation on performance of teams: Are the results similar for different task types? European Management Journal, 32(6), 870–878. https://doi.org/10.1016/j.emj.2014.03.007
Riaz, M. K., & Junaid, F. A. (2011). Types, sources, costs and consequences of workplace conflict. Asian Journal of Management Research, 2(1), 600–611.
Shaukat, R., Yousaf, A., & Sanders, K. (2017). Examining the linkages between relationship conflict, performance and turnover intentions. International Journal of Conflict Management, 28(1), 4–23. https://doi.org/10.1108/IJCMA-08-2015-0051
Spaho, K. (2013). Organizational communication and conflict management. Management, 18(1), 103–118.
Statistisches Bundesamt. (2021). Gender pay gap: Durchschnittlicher Bruttoverdienst pro Stunde von Männern und Frauen in Deutschland im Jahr 2020. https://de.statista.com/statistik/daten/studie/1220521/umfrage/durchschnittlicher-bruttoverdienst-von-maennern-und-frauen/
Thomas, K. W., & Schmidt, W. H. (1976). A survey of managerial interests with respect to conflict. The Academy of Management Journal, 19(2), 315–318. https://doi.org/10.2307/255781
Toussaint, L., Luskin, F., Aberman, R., & DeLorenzo, A. (2019). Is forgiveness one of the secrets to success? Considering the costs of workplace disharmony and the benefits of teaching employees to forgive. American Journal of Health Promotion, 33(7), 1090–1093. https://doi.org/10.1177/0890117119866957e
Tuckman, B. (1965). Developmental sequence in small groups. Psychological Bulletin, 63(6), 384–399. https://doi.org/10.1037/h0022100
Turner, J. R., Baker, R., & Morris, M. (2017). Complex adaptive systems: Adapting and managing teams and team conflict. In A. A. V. Boas (Ed.), Organizational conflict. IntechOpen. https://doi.org/10.5772/intechopen.72344
Vodosek, M. (2007). Intragroup conflict as a mediator between cultural diversity and work group outcomes. International Journal of Conflict Management, 18(4), 345–375. https://doi.org/10.1108/10444060710833469
Vodosek, M. (2017). Cultural diversity, intragroup conflict, and group outcomes: Evidence for a mediated relationship. Academy of Management Proceedings, 2005(1). https://doi.org/10.5465/ambpp.2005.18778533
Wang, G., Jing, R., & Klossek, A. (2007). Antecedents and management of conflict. Resolution styles of Chinese top managers in multiple rounds of cognitive and affective conflict. International Journal of Conflict Management, 18(1), 74–97. https://doi.org/10.1108/10444060710759327
Wit, F. R. C. de, Greer, L. L., & Jehn, K. A. (2012). The paradox of intragroup conflict: A meta-analysis. Journal of Applied Psychology, 97(2), 360–390. https://doi.org/10.1037/a0024844
Woerkom, M. van, & Engen, M. L. van (2009). Learning from conflicts? The relations between task and relationship conflicts, team learning and team performance. European Journal of Work and Organizational Psychology, 18(4), 381–404. https://doi.org/10.1080/13594320802569514
Yousaf, A., Shaukat, R., & Umrani, W. A. (2021). Linkages between group level task conflict and individual level outcomes in non-routine technical jobs. International Journal of Conflict Management, 32(1), 158–176. https://doi.org/10.1108/IJCMA-08-2019-0128
Audi, M., Bauernfeind, B., Feichtner, E., Kerntke, W., Seidel, U. M., Renger, D., Wagner, G., & Wahler, M. (2009). Konfliktkostenstudie. Die Kosten von Reibungsverlusten in Industrieunternehmen. KPMG.
Benitez, M., Medina, F. J., & Munduate, L. (2018). Buffering relationship conflict consequences in teams working in real organizations. International Journal of Conflict Management, 29(2), 279–297. https://doi.org/10.1108/IJCMA-11-2017-0131
Bettenhausen, K., & Murnighan, K. J. (1985). The emergence of norms in competitive decision-making groups. Administrative Science Quarterly, 30(3), 350–372. https://doi.org/10.2307/2392667
Brockman, J. L. (2014). Interpersonal conflict in construction: Cost, cause and consequence. Journal of Construction Engineering and Management, 140(2). https://doi.org/10.1061/(ASCE)CO.1943-7862.0000805
Brosschot, J. F., Gerin, W., & Thayer, J. F. (2006). The perspective cognition hypothesis: A review of worry, prolonged stress-related physiological activation, and health. Journal of Psychosomatic Research, 60(2), 113–124. https://doi.org/10.1016/j.jpsychores.2005.06.074
Buss, H. (2011). Controlling conflict costs: The business case of conflict management. Journal of the International Ombudsman Association, 4(1), 54–62.
Canada Pension Plan. (2008). CPP global human capital report: Workplace conflict and how business can harness it thrive. https://img.en25.com/Web/CPP/Conflict_report.pdf
Canary, D. J., Cupach, W. R., & Serpe, R. T. (2001). A competence-based approach to examining interpersonal conflict: Test of a longitudinal model. Communication Research, 28(1), 79–104. https://doi.org/10.1177/009365001028001003
Chartered Institute of Personnel and Development. (2011). Conflict management. Survey report. CIPD. http://www.angelproductions.co.uk/pdfs/CIPD%20Conflict%20manage%20March11.pdf
Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Erlbaum.
Conbere, J. (2000). Designing conflict management systems to resolve workplace conflicts. Journal of Alternative Dispute Resolution in Employment, 2(3), 30–36.
Dana, D. (2001). Conflict resolution: Mediation tools for everyday worklife. McGraw-Hill.
De Dreu, C. K. W. (2008). The virtue and vice of workplace conflict: Food for (pessimistic) thought. Journal of Organizational Behavior, 29(1), 5–18. https://doi.org/10.1002/job.474
De Dreu, C. K. W., & Weingart, L. R. (2003). Task versus relationship conflict, team performance, and team member satisfaction: A meta-analysis. Journal of Applied Psychology, 88(4), 741–749. https://doi.org/10.1037/0021-9010.88.4.741
Deutsch, M. (1969). Conflicts: Productive and destructive. Journal of Social Issues, 25(1), 7–41. https://doi.org/10.1111/j.1540-4560.1969.tb02576.x
Diederich, A. (2003). Decision making under conflict: Decision time as a measure of conflict strength. Psychonomic Bulletin & Review, 10(1), 167–176. https://doi.org/10.3758/BF03196481
Freres, M. (2013). Financial costs of workplace conflict. Journal of International Ombudsman Association, 6(2), 83–94.
Greer, L., Jehn, K. A., Thatcher, S. M. B., & Mannix, E. A. (2007). The effect of trust on conflict and performance in groups split by demographic faultlines. In IACM 2007 Meeting Paper. Amsterdam, The Netherlands. https://doi.org/10.2139/ssrn.1100580
Greer, L. L., Caruso, H. M., & Jehn, K. A. (2011). The bigger they are, the harder they fall: Linking team power, team conflict, and performance. Organizational Behavior and Human Decision Processes, 116(1), 116–128. https://doi.org/10.1016/j.obhdp.2011.03.005
Harris, G. (2008). 'If your only tool is a hammer, any issue will look like a nail’: Building conflict resolution and mediation capacity in South African universities. Higher Education, 55, 93–101. https://doi.org/10.1007/s10734-007-9075-3
Illies, R., Johnson, M. D., Judge, T. A., & Keeney, J. (2011). A within-individual study of interpersonal conflict as a work stressor: Dispositional and situational moderators. Journal of Organizational Behavior, 32(2), 44–64. https://doi.org/10.1002/job.677
Insam, A., & Reimann, A. (2009). Konfliktkostenstudie: Die Kosten von Reibungsverlusten in Industrieunternehmen. KPMG, 4–70. https://kpmg-law.de/content/uploads/2018/07/2009_Konfliktkosten_Reibungsverluste_in_Unternehmen.pdf
Ismail, K. M., Richard, O. C., & Taylor, E. C. (2012). Relationship conflict in supervisor-subordinate dyads: A subordinate perspective. International Journal of Conflict Management, 23(2), 192–218. https://doi.org/10.1108/10444061211218302
Jehn, K. (1997). A qualitative analysis of conflict types and dimensions in organizational groups. Administrative Science Quarterly, 42(3), 530–557. https://doi.org/10.2307/2393737
Jehn, K., & Bendersky, C. (2003). Intragroup conflict in organizations: A contingency perspective on the conflict-outcome relationship. Research in Organizational Behavior, 25, 187–242. https://doi.org/10.1016/S0191-3085(03)25005-X
Jehn, K. A. (1995). A multimethod examination of the benefits and detriments of intragroup conflict. Administrative Science Quarterly, 40(2), 256–282. https://doi.org/10.2307/2393638
Katz, N. H., & Flynn, L. T. (2013). Understanding conflict management systems and strategies in the workplace: A pilot study. Conflict Resolution Quarterly, 30(4), 393–410. https://doi.org/10.1002/crq.21070
Kreisman, B. (2002). Insights into employee motivation, commitment and retention. Business Training Experts. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.582.5654&rep=rep1&type=pdf
Kuriakose, V., Sreejesh, S., Heerah, J., Anusree, M. R., & Shelly, J. (2019). Process conflict and employee well-being. International Journal of Conflict Management, 30(4), 462–489. https://doi.org/10.1108/IJCMA-12-2018-0142
Lebrague, R. M., Benamar, S., & Rahmani, Y. Z. (2020). Organizational conflict and its management: A theoretical analysis. Social Sciences Journal, 14(2), 218–228.
Levine, S. (1998). The many costs of conflict. In S. Levine (Ed.), Getting to resolution. Barrett-Koehler.
Lipsky, D. B., & Avgar, A. C. (2008). Toward a strategic theory of workplace conflict management. Ohio State Journal on Dispute Resolution, 24(1), 143–190.
Marineau, J. E., Hood, A. C., & Labianca, G. (2018). Multiplex conflict: Examining the effects of overrlapping task and relationship conflict on advice seeking in organizations. Journal of Business and Psychology, 33, 595–610. https://doi.org/10.1007/s10869-017-9511-z
Meier, L. L., Gross, S., Spector, P. E., & Semmer, N. K. (2013). Relationship and task conflict at work: Interactive short-term effects on angry mood and somatic complaints. Journal of Occupational Health Psychology, 18(2), 144–156. https://doi.org/10.1037/a0032090
Murtha, R. (2005). Workplace conflicts challenge businesses. Fairfield County Business Journal, 44(20), 42.
O’Neill, T. A., Allen, N. J., & Hastings, S. E. (2013). Examining the “Pros” and “Cons” of team conflict: A team-level meta-analysis of task, relationship, and process conflict. Human Performance, 26(3), 236–260. https://doi.org/10.1080/08959285.2013.795573
OPP & Chartered Institute of Personnel and Development. (2008). Fight, fight or face it? Celebrating the effective management of conflict at work. https://eu.themyersbriggs.com/-/media/10e61ce66e29407080ef0caf9f3dc846.ashx
Pazos, P., & Canto, A. M. (2013). The role of team preparation processes and task conflict on virtual team performance. In Proceedings of the 2013 Industrial and Systems Engineering Research Conference (pp. 670–675). Springer.
Pelled, L. H., Eisenhardt, K. M., & Xin, K. R. (1999). Exploring the black box: An analysis of work group diversity, conflict and performance. Administrative Science Quarterly, 44(1), 1–28. https://doi.org/10.2307/2667029
Pondy, L. R. (1967). Organizational conflict: Concepts and models. Administrative Science Quarterly, 12(2), 296–320. https://doi.org/10.2307/2391553
Porath, C., & Pearson, C. (2009). How toxic colleagues corrode performance. Harvard Business Review, 87(4), 24.
Puck, J., & Pregernig, U. (2014). The effect of task conflict and cooperation on performance of teams: Are the results similar for different task types? European Management Journal, 32(6), 870–878. https://doi.org/10.1016/j.emj.2014.03.007
Riaz, M. K., & Junaid, F. A. (2011). Types, sources, costs and consequences of workplace conflict. Asian Journal of Management Research, 2(1), 600–611.
Shaukat, R., Yousaf, A., & Sanders, K. (2017). Examining the linkages between relationship conflict, performance and turnover intentions. International Journal of Conflict Management, 28(1), 4–23. https://doi.org/10.1108/IJCMA-08-2015-0051
Spaho, K. (2013). Organizational communication and conflict management. Management, 18(1), 103–118.
Statistisches Bundesamt. (2021). Gender pay gap: Durchschnittlicher Bruttoverdienst pro Stunde von Männern und Frauen in Deutschland im Jahr 2020. https://de.statista.com/statistik/daten/studie/1220521/umfrage/durchschnittlicher-bruttoverdienst-von-maennern-und-frauen/
Thomas, K. W., & Schmidt, W. H. (1976). A survey of managerial interests with respect to conflict. The Academy of Management Journal, 19(2), 315–318. https://doi.org/10.2307/255781
Toussaint, L., Luskin, F., Aberman, R., & DeLorenzo, A. (2019). Is forgiveness one of the secrets to success? Considering the costs of workplace disharmony and the benefits of teaching employees to forgive. American Journal of Health Promotion, 33(7), 1090–1093. https://doi.org/10.1177/0890117119866957e
Tuckman, B. (1965). Developmental sequence in small groups. Psychological Bulletin, 63(6), 384–399. https://doi.org/10.1037/h0022100
Turner, J. R., Baker, R., & Morris, M. (2017). Complex adaptive systems: Adapting and managing teams and team conflict. In A. A. V. Boas (Ed.), Organizational conflict. IntechOpen. https://doi.org/10.5772/intechopen.72344
Vodosek, M. (2007). Intragroup conflict as a mediator between cultural diversity and work group outcomes. International Journal of Conflict Management, 18(4), 345–375. https://doi.org/10.1108/10444060710833469
Vodosek, M. (2017). Cultural diversity, intragroup conflict, and group outcomes: Evidence for a mediated relationship. Academy of Management Proceedings, 2005(1). https://doi.org/10.5465/ambpp.2005.18778533
Wang, G., Jing, R., & Klossek, A. (2007). Antecedents and management of conflict. Resolution styles of Chinese top managers in multiple rounds of cognitive and affective conflict. International Journal of Conflict Management, 18(1), 74–97. https://doi.org/10.1108/10444060710759327
Wit, F. R. C. de, Greer, L. L., & Jehn, K. A. (2012). The paradox of intragroup conflict: A meta-analysis. Journal of Applied Psychology, 97(2), 360–390. https://doi.org/10.1037/a0024844
Woerkom, M. van, & Engen, M. L. van (2009). Learning from conflicts? The relations between task and relationship conflicts, team learning and team performance. European Journal of Work and Organizational Psychology, 18(4), 381–404. https://doi.org/10.1080/13594320802569514
Yousaf, A., Shaukat, R., & Umrani, W. A. (2021). Linkages between group level task conflict and individual level outcomes in non-routine technical jobs. International Journal of Conflict Management, 32(1), 158–176. https://doi.org/10.1108/IJCMA-08-2019-0128