Conflicts in business can stem from a trivial offence that often starts in a small way. Corporations tend to maintain conflicts in a workgroup. The management has to educate the employees on the associated risks of harassment and subtle attacks in conflicts. Employees need to consider on the expensive nature of resolving conflicts by defending a lawsuit and adopt quick resolution to address the conflict.
In the article “Family Business Identity Conflict “Shepherd & Haynie (2009), state that a family business operates with the intention to shape the vision of the business as held by the dominant members of the family. A family business revolves across generations in the family who own and run the venture. Differences in opinion between family members can lead to strife and conflicts.
Shepherd & Haynie (2009) note that conflicts within a family can occur due to disagreements over growth targets, the issue of succession, product offerings, and mundane issues such as the hours of operation. Conflicts within a family business can occur due to time spent overseas, marital issues, and varied opinion of family events. A family business attracts conflict due close interaction of family members. A family business has ill-defined boundaries from each member of the family. Shepherd & Haynie (2009) observes that the family conflict occurs due to inconsistencies in the family and business identities.
Buss (2011) believes that it is impossible to calculate the exact cost of conflict. One can rely on cost measures so as to estimate the cost of conflicts. The exercise of calculating the cost of a conflict can enable one put up with a badly managed conflict. According to Buss (2011), unresolved conflict involves varied high financial and humanity costs. In the face of conflict in the family business scenario, production cost suffers due to the time spent by the managers who attempt to broker peace in the conflict. Production is likely to suffer when a company changes the workflow. It affects people’s social interaction since they need flexible and efficient procedures.
Buss (2011) says that family business has the cost of absenteeism due to the days taken off in the face of impending conflict. Buss (2011) assert of a high correlation between absenteeism and breaking a fight among the family members. A family strife has the cost of turnover in the face of downsizing and restructuring. Conflicts in the family business can tarnish the image of the organization to the clients. The organization can lose top talent and stakeholder support. Theft and damage in a firm correlates with the level of employee conflict.
Research by Shepherd & Haynie (2009) informs that a family conflict can rely on speedy strategic decisions so as to build a competitive advantage for the business. Speed ensures the business pursues opportunities in a stable environment. The context of the family business can rely on a mechanism that can facilitate expeditious decision-making process. Speed enhances a comprehensive action since it provides information to enable successful adaptation. A family business has to pursue opportunities by applying an identity conflict model to resolve the situation. A family business that quickly resolves identity conflict can lead to a good allocation of resources in pursuit of potential opportunities available.
BUSS, H. (2011). Controlling Conflict Costs: The Business Case of Conflict Management. Journal Of The International Ombudsman Association, 4(1), 54-62.
Shepherd, D., & Haynie, J. (2009). Family Business, Identity Conflict, and an Expedited Entrepreneurial Process: A Process of Resolving Identity Conflict. Entrepreneurship: Theory & Practice, 33(6), 1245-1264. doi:10.1111/j.1540-6520.2009.00344.x