**4. Conflicts and values in organisation**

a conflict can provide an opportunity to form and express people' needs, opinions and posi-

The conflict as a research tool allows us to see the status of organisations in general, as well as the problems, which occur as a result of rapid development and variance between the people. According to a widespread opinion, all conflicts are bad and people dislike them because of their negative consequences. But avoiding and suppressing conflict is sometimes a mistake

The main activity for each organization and governmental authority is conflict management [56], which enables to reach the acceptance of common values. Management is faced with an enormous responsibility of ensuring optimum levels of growth and productivity in an environment that is full of conflicting situations [62]. The conflict has always been widespread in society, but it is only recently that it has generated a lot of interest and has been a focus of

In order to change organizational culture and values, organizational learning involving conflict management and knowledge management can be used [36]. The analysis of conflict management reveals the real values in an organization. During a study, 2200 conflicts were researched (1997–2001) and the following questions were asked [1]: What are the reasons causing conflicts? How have conflicts been solved? How many conflicts are vertical? What are ethical principles violated most often? As a result of the research, it was found out that in all cases power was more important for managers than solving the conflict, and the win-win result was almost never achieved. No clear ethical principles seemed to exist. The analysis of all the conflict cases indicated that Estonian business leaders, as well as employees, lack emotional intelligence; especially, they seem to lack the competence to handle conflicts and empathy [1]. In order to be productive, conflict management should be constructive and lie in problem solving rather than contending. Conflict management is contingent upon the type of conflict issue. Cognitive conflict involving disputes over scarce resources, over procedures or policies or over opinions enhances problem solving and reduces contending behaviors, whereas affective conflict involving one's personal or group identity, norms and values does the reverse [67].

Previous research into conflicts in Estonia [58, 61] and abroad [35, 51, 68] has identified organizational issues (limited resources and their distribution, interdependence, differences in goals and in viewpoints, managerial mistakes, unclear status and communication problems) to be the most common causes of conflicts. While analyzing conflicts, it is important to determine whether the conflict is solved or unsolved and then we can discover which values were used during the conflict resolution and decision-making process. Additionally, organizational learning can also happen during conflict management when both parties' arguments are being heard. According to researchers [67, 69], a well-managed conflict provides a forum

Lumineau and Handley have demonstrated that essential distinctions exist between interorganizational conflicts and inter-personal conflict as well as many opportunities for crossfertilization between micro (individual level) and macro (organizational level) research on conflict management [70]. Rahim emphasized that designing effective macro-level strategies is

for integrating ideas that originally are thought incompatible [36].

and not always in the best interests of the individuals and groups concerned [36].

tions and expectation as well as to create trust between people [66].

research and studies.

24 Organizational Conflict

As the organization cannot exist without people and every person has individual values, it is easy to conclude that a basis of all the organizational values is a set of individual values of employees. Targeting, choice of alternatives and value of individual behavioral expressions are based on values, as they form the specific behavioral norms and direct employees for the general purposes [71, 72]. At the same time, the solving of the conflicts based also on individual beliefs, experiences and values. As the Mayer defines the conflict—it can be a feeling, a disagreement, a real or perceived incompatibility of interests, inconsistent worldviews or a set of behaviors [73]. Therefore, those two constructs, values and conflicts, are closely tied both to individual and organizational level. If we want to understand the ethology of conflict between organizational culture and strategies, it requires examination of the existing organizational values [74]. Conflict and ambiguity may arise from situations in which beliefs and values work at cross-purposes with one another in groups and organizations [75].

that arise in resolving conflicts. This approach is in line with the comprehension that values have an impact on conflict results through interaction [89]. Therefore, values influence success

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Another interesting construct, which definitely matches values and conflicts and helps us to show one more important aspect of this field, is management and teamwork. It is the proven correlation that managers who value both people and productivity are also supported by efficient teams. These leaders help team members achieve innovation-friendly goals through strategy development and coordination [90]. Productivity-oriented managers identify and find ways to work effectively. Team-oriented managers value their team members, value people and thereby improve coordination through well-developed procedures [91]. If the organizational (or unit) culture and leader behaviour are clearly dependent on each other, also leaders' conflict management behaviour is related to the culture of resolving the conflicts of the units. The conflict culture is a part of the organizational culture; therefore, conflict culture influence the results of the macro level, including the viability of the organization (i.e. cohesion, potential and burnout) and the performance of the organization (i.e. creativity and customer service). The perspective of conflict culture goes beyond the individual level and gives a new insight into the dynamics of conflict management in the context of an organization [92].

McQuigan and McMehan believe that a quadrant approach offers a richer and deeper understanding of conflict in organizations, thus increasing the possibilities of a successful intervention [93]. Teamwork is based on the organization's formal rules and includes informal norms that affect relationships and behaviour within the group. Organizational norms and rules are usually described in policies and procedures. Formal rules describe explicitly the behavioral expectations concerning the various processes and activities, daily procedures and routines, explaining the behavioral principles within the organization. Organizational norms and rules are usually easy to detect because they are explicit. Besides the formal norms and rules, there are also informal or so-called unwritten norms and rules, which have an even bigger impact on work organization. These are silent, informal rules and agreements that govern the behaviour of the teams. These norms are not stored in a visible place, but they have a strong impact on the behaviour and communication of team members. Team members are usually aware of the implicit standards, they need to follow in their work and, if necessary, can describe the

Some studies empirically link conflict management and efficacy research with the literature on inter-organizational teams in general. Empowered organizational teams can be effective, but they have a great many issues and conflicts to manage [97, 98]. The team members' ability to manage their conflicts can affect overall team performance. A managing conflict for mutual benefit was found to predict how much the team members believed they could handle various

Relationships are proposed to mediate between positive conflict values and constructive outcomes [100, 101]. There is the impact of conflict values on relationships in terms of competitive interaction and resource interdependence [89]. As values express in behaviour and so do relations, those two constructs are strongly connected and both impact effectiveness of the activities—if the values are matching and relationships are positive, success can be expected. Whether the conflict is behavioral activity, therefore values and relationships reflect

conflicts and also their supervisor's conclusions about their team's effectiveness [99].

existing standards within an organization or team [94–96].

through relationships [89].

As the former researches show (e.g. [36]), the organizational conflicts often start from the mismatch of different and different levels of values. If the organization is filled with a multiplicity of views, then there might be no consensus on individual values and beliefs [76]. Individual values are already a part of every person and no one from outside can say that those are good or bad [36]. It is the organization's responsibility to set the standards of behaviour based on the organization's statement of values [77] to prevent possible conflicts. Behavioral norms are rooted in core values, and leaders and followers are able to reach agreement even with diverse points of view [78]. Values are often unreflected and unconscious until conflicts occur and the conflicting parties realize that their conflict derives from differences in patterns of thought and action [79]. Contradictory or competing values can cause intra- and interpersonal conflicts [46, 80] that are context and situation bound. To enhance that the tie between values and conflict may be really crucial, the research of Greenwood, Suddaby and Hinings, must be named [81]. They indicated that not only different values is an issue but also the level of values and conflicting values can cause organizational conflicts—in highly professionalized institutional fields, such as health and education, members of organizations may be influenced by conflicting institutional values [81].

However, social conflict is part of our everyday lives. It can be a major factor in human development, motivator of social change, innovation and cultural progress, but it can also lead to controversy, revenge and violent behaviour. Studies conducted over the decades have provided a significant overview of the essence of social conflicts and methods of conflict solution [41, 42, 46, 49]. Conflict analysis can also be considered as a new instrument for evaluating an organization's ethics level. Conflict as the research tool has been chosen because it is a very informative phenomenon for revealing an organization's general status. Researches show that in analyzing the management cases that power was more important for managers than solving the conflict and the win-win results were almost never achieved [1]. No clear ethical principles seemed to exist. Since the conflicts were approached driven by personal interest and power, the interests of companies were almost fully forgotten.

There are many other constructs, which seem to base on organizational values and in turn impact the occurrence of organizational conflicts. Organizational conflict often takes place between different divisions and departments in multi-divisional organizations. It has been argued, "power is, first of all, a structural phenomenon, created by the division of labour and departmentation that characterizes the specific organization … being investigated" [82]. Similarly, Scharfstein and Stein argue that divisionalisation causes organizational conflict [83]. Power and conflict are ubiquitous in organizational life [84].

Over the past few decades, conflict researchers have distinguished three types of conflicts: task, relationship [65] and process conflict [85]. Additional literature suggests that relationship conflict pertains to disagreements or frictions over personal values and mannerisms between individuals [86] and is negatively associated with performance and decision-making [87, 88].

There is a reciprocal interdependence between conflicts and relationships—relations have an impact on the results of the conflicts and that, in turn, manifest themselves in the values that arise in resolving conflicts. This approach is in line with the comprehension that values have an impact on conflict results through interaction [89]. Therefore, values influence success through relationships [89].

between organizational culture and strategies, it requires examination of the existing organizational values [74]. Conflict and ambiguity may arise from situations in which beliefs and

As the former researches show (e.g. [36]), the organizational conflicts often start from the mismatch of different and different levels of values. If the organization is filled with a multiplicity of views, then there might be no consensus on individual values and beliefs [76]. Individual values are already a part of every person and no one from outside can say that those are good or bad [36]. It is the organization's responsibility to set the standards of behaviour based on the organization's statement of values [77] to prevent possible conflicts. Behavioral norms are rooted in core values, and leaders and followers are able to reach agreement even with diverse points of view [78]. Values are often unreflected and unconscious until conflicts occur and the conflicting parties realize that their conflict derives from differences in patterns of thought and action [79]. Contradictory or competing values can cause intra- and interpersonal conflicts [46, 80] that are context and situation bound. To enhance that the tie between values and conflict may be really crucial, the research of Greenwood, Suddaby and Hinings, must be named [81]. They indicated that not only different values is an issue but also the level of values and conflicting values can cause organizational conflicts—in highly professionalized institutional fields, such as health and education, members of organizations may be influ-

However, social conflict is part of our everyday lives. It can be a major factor in human development, motivator of social change, innovation and cultural progress, but it can also lead to controversy, revenge and violent behaviour. Studies conducted over the decades have provided a significant overview of the essence of social conflicts and methods of conflict solution [41, 42, 46, 49]. Conflict analysis can also be considered as a new instrument for evaluating an organization's ethics level. Conflict as the research tool has been chosen because it is a very informative phenomenon for revealing an organization's general status. Researches show that in analyzing the management cases that power was more important for managers than solving the conflict and the win-win results were almost never achieved [1]. No clear ethical principles seemed to exist. Since the conflicts were approached driven by personal interest

There are many other constructs, which seem to base on organizational values and in turn impact the occurrence of organizational conflicts. Organizational conflict often takes place between different divisions and departments in multi-divisional organizations. It has been argued, "power is, first of all, a structural phenomenon, created by the division of labour and departmentation that characterizes the specific organization … being investigated" [82]. Similarly, Scharfstein and Stein argue that divisionalisation causes organizational conflict

Over the past few decades, conflict researchers have distinguished three types of conflicts: task, relationship [65] and process conflict [85]. Additional literature suggests that relationship conflict pertains to disagreements or frictions over personal values and mannerisms between individuals [86] and is negatively associated with performance and decision-making [87, 88]. There is a reciprocal interdependence between conflicts and relationships—relations have an impact on the results of the conflicts and that, in turn, manifest themselves in the values

values work at cross-purposes with one another in groups and organizations [75].

enced by conflicting institutional values [81].

26 Organizational Conflict

and power, the interests of companies were almost fully forgotten.

[83]. Power and conflict are ubiquitous in organizational life [84].

Another interesting construct, which definitely matches values and conflicts and helps us to show one more important aspect of this field, is management and teamwork. It is the proven correlation that managers who value both people and productivity are also supported by efficient teams. These leaders help team members achieve innovation-friendly goals through strategy development and coordination [90]. Productivity-oriented managers identify and find ways to work effectively. Team-oriented managers value their team members, value people and thereby improve coordination through well-developed procedures [91]. If the organizational (or unit) culture and leader behaviour are clearly dependent on each other, also leaders' conflict management behaviour is related to the culture of resolving the conflicts of the units. The conflict culture is a part of the organizational culture; therefore, conflict culture influence the results of the macro level, including the viability of the organization (i.e. cohesion, potential and burnout) and the performance of the organization (i.e. creativity and customer service). The perspective of conflict culture goes beyond the individual level and gives a new insight into the dynamics of conflict management in the context of an organization [92].

McQuigan and McMehan believe that a quadrant approach offers a richer and deeper understanding of conflict in organizations, thus increasing the possibilities of a successful intervention [93]. Teamwork is based on the organization's formal rules and includes informal norms that affect relationships and behaviour within the group. Organizational norms and rules are usually described in policies and procedures. Formal rules describe explicitly the behavioral expectations concerning the various processes and activities, daily procedures and routines, explaining the behavioral principles within the organization. Organizational norms and rules are usually easy to detect because they are explicit. Besides the formal norms and rules, there are also informal or so-called unwritten norms and rules, which have an even bigger impact on work organization. These are silent, informal rules and agreements that govern the behaviour of the teams. These norms are not stored in a visible place, but they have a strong impact on the behaviour and communication of team members. Team members are usually aware of the implicit standards, they need to follow in their work and, if necessary, can describe the existing standards within an organization or team [94–96].

Some studies empirically link conflict management and efficacy research with the literature on inter-organizational teams in general. Empowered organizational teams can be effective, but they have a great many issues and conflicts to manage [97, 98]. The team members' ability to manage their conflicts can affect overall team performance. A managing conflict for mutual benefit was found to predict how much the team members believed they could handle various conflicts and also their supervisor's conclusions about their team's effectiveness [99].

Relationships are proposed to mediate between positive conflict values and constructive outcomes [100, 101]. There is the impact of conflict values on relationships in terms of competitive interaction and resource interdependence [89]. As values express in behaviour and so do relations, those two constructs are strongly connected and both impact effectiveness of the activities—if the values are matching and relationships are positive, success can be expected. Whether the conflict is behavioral activity, therefore values and relationships reflect on conflict behaviour. So, if the conflict is effectively solved, positive results are more likely. However, the relationships have an impact on the outcomes affecting the values of the conflicts. The approach used here is in line with the notion that values have an effect through interaction [102]. Hewlin explained conflicts that arise due to differences in personal and organizational values may cause organizational members to suppress their own values and pretend to embrace organizational values [103].

Although values and conflicts are quite popular research topics, there is still plenty of work to do for linking those two phenomena. We do not have now enough evidence to confirm how exactly the different forms and levels of organizational values are connected or how they impact different forms and levels of organizational conflicts and oppositely. According to trends in economy and workplaces, a one more important phenomenon needs to be researched from the view of organizational conflicts and values—it is organizational diversity. Workplace diversity is increasing trend and it includes value diversity [117], which can be distinguished into different kinds of values, such as business, individual, corporate or

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In the case of constructive conflicts, it can be seen that while solving the conflict all parties' interests, needs and values have been taken into consideration. Conflicts are an important source for a new solution and they should not be suppressed, even though they are emotionally difficult. Bringing conflicts upfront assumes trust, and trust is also at the core of employee participation [114]. According to Schein, a "set of values that become embodied in an organizational philosophy can serve as a guiding principle toward managing conflicts or difficult events" [119]. It has been established that parties are generally more willing to move further from their initial position and become more cooperative when they have talked about value

organizational values [118].

**Author details**

**References**

2007-01-02]

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Eneken Titov\*, Anu Virovere and Karin Kuimet \*Address all correspondence to: eneken@eek.ee

Estonian Entrepreneurship University of Applied Sciences, Tallinn, Estonia

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