The conflict in business situation is inevitabled. How does the conflict happen in Family Business? We take a look.
-Conflict:
Conflict is actual or perceived opposition of needs, values and interests. A conflict can be internal (within oneself) to individuals. Conflict as a concept can help explain many aspects of social life such as social disagreement, conflicts of interests, and fights between individuals, groups, or organizations. In political terms, “conflict” can refer to wars, revolutions or other struggles, which may involve the use of force as in the term armed conflict. Without proper social arrangement or resolution, conflicts in social settings can result in stress or tensions among stakeholders. When an interpersonal conflict does occur, its effect is often broader than two individuals involved, and can affect many associate individuals and relationships, in more or less adverse, and sometimes even way.
Conflict as taught for graduate and professional work in conflict resolution (which can be win-win, where both parties get what they want, win-lose where one party gets what they want, or lose-lose where both parties don’t get what they want) commonly has the definition: “when two or more parties, with perceived incompatible goals, seek to undermine each other’s goal-seeking capability”.
A clash of interests, values, actions or directions often sparks a conflict. Conflicts refer to the existence of that clash. Psychologically, a conflict exists when the reduction of one motivating stimulus involves an increase in another, so that a new adjustment is demanded. The word is applicable from the instant that the clash occurs. Even when we say that there is a potential conflict we are implying that there is already a conflict of direction even though a clash may not yet have occurred.
(Resource http://en.wikipedia.org/wiki/Conflict)
-Family Business: Conflict Resolution Strategies
With a family business, conflict resolution skills are key to maintaining relationships and a successful business. You cannot let personal relationships enter into the business operations. Family feuds often send customers packing and cause irreparable damage to both your business and family members. Common family business conflicts include:
- Money
- Management roles
- Ownership percentages
- Business goals
(Resource http://www.wahm.com/articles/family-business-conflict-resolution-strategies.html)
-Managing conflict in family bussiness
Managing conflict in family businesses
The potential for conflict in family businesses can be greater than for other businesses - typically due to a clash between commercial and emotional concerns.
However, such conflict can be seen as a challenge - or even as a positive driver for change. For example, a dispute between family members on the strategic direction of your business may result in a much-needed rethinking of your business plan and a new agreed vision for the business.
Such outcomes, though, are only possible if techniques for avoiding, managing and resolving disputes have already been instituted.
Ways to avoid conflict
Think about how people in your business communicate with each other. Are emotional issues kept separate from business discussions? Are mechanisms in place to allow all employees - not just family members - to contribute their views? Or does one person tend to dominate?
The best way of avoiding conflict is to prevent misunderstandings from happening in the first place. Drawing up a family constitution can help you achieve this.
Plan how you’ll deal with conflict and disagreements and set this out in the family-business constitution, see our guide on managing conflict.
Holding a meeting of the business’ management may be appropriate for relatively minor disputes, with decisions made by majority vote.
For more serious matters you may want to get an independent outside adviser - many family businesses benefit from having a non-executive director or business adviser - to act as a mediator.
(Resource http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073792653)