publications on conflict costs

Conflict cost study by KPMG sources

Among other findings this study states that “conflict costs provide large rationalizing potential”, amounting to at least 25% p.a. The following details were given:

• 10 to 15% of the working time in any company are used for the handling of conflicts;
• 30 to 50% of the weekly working time of executives are spent directly or indirectly with internal problems, conflicts or consequences of conflicts;
• approx. 25% of the revenues depend on the quality of communication.

Conflicts cost – but how much? sources

Key findings:

• Someone within a conflict has considerable problems to concentrate on his work;
• in a persisting conflict situation a dynamic downswing might develop that can hardly be stopped;
• executives who ignore or deny conflicts cause damage to their companies due to gross negligence.

New ways to improve results sources

Key findings of the authors are:

• Employees’ behavior in a conflict can be trained as an important precaution;
• changing processes within companies can be shortened and arranged in a constructive manner for involved employees by hiring accompanying support such as mediation or coaching;

Conflicts and conflict costs in Organizations sources

The author presents a systematic examination of conflicts in her diploma thesis. Stated sources of conflict are:

• role conflicts;
• competition conflicts;
• territorial conflicts;
• conflicts of system;
• conflicts of change.

Further key statements are:

• 'Employees and executives know about a large number of conflicts';
• inadequate handling of conflicts could 'cause high costs without even proximately being able to quantify these costs';
• 'especially employees in leading positions or with leading responsibility spend a considerable part of their working time handling conflicts.'

Conflict costs in organizations sources

Kernaussagen der Veröffentlichung lauten:

• The avoidance of juridical proceeding by involving mediation offers considerable saving potential;
• executives spent up to 42% of their working time handling conflicts.

The Cost of Conflict in the Workplace sources

Key statements of J.A. Cram and R.K. MacWilliams are:

• 'Addressing conflict should be viewed as an important element in achieving organizational effectiveness and enhancing productivity.'
• 'Many organizations, however, suffer chronic patterns of unresolved conflict that are costly and often symptomatic of serious organizational dysfunction.'
• 'In fact, some experts believe that unresolved conflict represents the largest reducible cost in many businesses, yet it remains largely unrecognized (Dana 1999, Slaikev and Hasson 1998).'
• 'Without a clear picture of the real costs associated with conflict, the priority for developing healthy resolution strategies is likely to remain low.'