Conflict is often seen by participants as destructive, but this is a limited view. In fact, if all conflict with coworkers is avoided, each party is likely deprived of useful information about the other's preferences and view. Conflict is not all bed, but rather may result In either productive or nonproductive outcomes.
Positive effects of conflicts
i. It provides an individual a chance to think again, undertake self introspection and have a second look at the existing things, be they procedures, policies, equipments, behaviors etc.
ii. It leads to innovation and at times to new direction. It is , therefore , even necessary for organization's survival and growth.
iii. It helps to seek classification and generate search behavior.
iv. It energizes people, leads to mild stimulation and one is at one's best in times of crisis. It helps them test their capacities.
v. Long standing problems, which continue to agitate people's minds, surface. They are able to release their tensions and unburden themselves. They display creativity in identifying solutions and problems are dealt with.
vi. It serves as a cementing force in a group and incredible unity is witnessed even in a heterogeneous group at times of tension.
Negative effects of conflicts
i. When conflict does not lead to solution of a problem, it is unproductive and investment of time and effort goes waste.
ii. It is undesirable if it creates a climate of distrust and suspicion among people, if some people feel defeated and demanded and if it develops antagonism instead of spirit of co-operation.
iii. It is seriously harmful if it detracts attention from basic organizational objectives and makes people work for their defeat.
iv. As a consequence of conflict, there may be fight of personnel from the organization.
v. In an attempt to find a solution, management may gloss over serious differences and suppress certain feelings which may erupt at inappropriate moments and hit 'safe' targets.
vi. In the event of a conflict, there may be intensification of internalization of sub-unit goals which may result in the neglect of overall organizational goals.