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548 Trakia Journal of Sciences, Vol. 17, Suppl. 1, 2019
Trakia Journal of Sciences, Vol. 17, Suppl. 1, pp 548-554, 2019
Copyright © 2019 Trakia University
Available online at:
http://www.uni-sz.bg
ISSN 1313-7069 (print)
ISSN 1313-3551 (online) doi:10.15547/tjs.2019.s.01.087
ADAPTED CONFLICT RESOLUTION MODEL IN BUSINESS
ORGANIZATIONS
Iv. Ivanov*
Industrial Business Department, Faculty of Business, University of National and World Economy -
Sofia, Bulgaria
ABSTRACT
The success of any modern business organization increasingly depends on its ability to manage and
resolve conflicts. The development and implementation of an adequate conflict management technology
in business becomes a priority task for Bulgarian business organizations. Conflict resolution, as part of
the overall process of Business organization management, is a key driver for efficiency gains. The present
paper provides an adapted model for conflict resolution in business organizations as a whole. The aim of
the paper is to provoke a scientific discussion of the problem presented here. Such kind of development
would provoke a scientific search for other, more efficient ways of putting existing conflict theory and
methodology into practice. The development of this specific management activity is on the agenda for
both scientists and practitioners. The cooperation between them is crucial for the development and
implementation of adequate best practices in this area of study.
Key words: Conflict forecasting, Conflict prevention, Conflict stimulation, Conflict regulation,
Management
INTRODUCTION
Conflicts, whether we like it or not, are an
integral part of the life cycle of people and
socio-economic systems, which they create to
achieve their goals. Throughout history,
conflict, as a universal human phenomenon has
constantly excited interest in scientists from all
fields of science. With the development of
management there is a growing practical
interest in conflict management in
organizations. The interest in that problematic
area, especially in business organizations, is
aroused by the need to look for solutions of a
number of questions related to increasing the
effectiveness of management and the overall
activity of the business. At present, modern
theory and practice of conflicts and their
management cannot and do not undoubtedly
claim to provide a heal-all to the array of
problems which modern environment and
internal conditions in organizations present to
business. It is the aim of the present paper to
_____________________________ Ivaylo Ivanov, 1700 Sofia, Bulgaria, Studentski
grad “Hristo Botev”, University of National and
World Economy, Office 4035, Tel.: (+359 2) 819-
52-67, E-mail: i.ivaylo@unwe.bg
provoke a scientific discussion on a number of
issues, which are of interest for the author in
his scientific research. One of them is related
to the development of an overall methodology
for evaluation, analysis and solution of
conflicts in Bulgarian business organizations.
It is not about a methodology claiming to be
universal, but rather one that to a great extent
will take into consideration the specificity of
the business environment in Bulgaria and offer
appropriate solutions. As a step in that
direction the immediate task the author has set
himself is to seek the opinion of the
representatives of science and of the
practitioners on an existing, present in theory
verbal model of conflict resolution in business
organizations. It is this adapted model that the
author intends to use to attain his final goal.
Bulgarian society is permeated by conflicts of
various nature. The prevailing feeling is that
most of them will further intensify. Only time
will tell whether the situation will go in that
direction. For us – that part of the scientific
community which studies the problems of
managing business, and the representatives of
business, there is the unsolved task to jointly
IVANOV IV.
Trakia Journal of Sciences, Vol. 17, Suppl. 1, 2019 549
develop, offer and apply adequate management
technologies and best practices in the field of
management and conflict resolution. There are
a number of problems Bulgarian business is
going to face. For the time being let us focus
on three of them – mass demotivation (1) and
demoralization in Bulgarian society, combined
with its demographic shrinkage. It is obvious
from their development that the creation and
implementation of working technologies in the
abovementioned field may turn out to be of top
priority. As a supporter of the strategy
“survival through development“ the author
believes that the success of a business
organizations in Bulgaria depends on their
ability to manage and resolve their conflicts. It
is our belief that it will happen but only after
we make the first step of tuning in our way of
thinking towards discovering opportunities in
the problems around us and swing into action.
CONFLICTS AND THE STATE OF
CONFLICT MANAGEMENT SCIENCE
IN BULGARIA After the radical change of 1989 Bulgarian
society has been afflicted by unfamiliar
conflicts, which have brought the science of
social conflicts and their management –
conflictology, to the forefront and it has
attracted considerable scientific and public
interest. The scientific community and public
practice have had and still have a burning need
for new, theoretical knowledge of conflicts,
which will enable us to solve topical issues and
practical tasks. Due to the efforts of a small
circle of Bulgarian scientists and researchers
we are witnessing the further development of a
new sphere of scientific knowledge for our
country– conflictology (2).
Conflicts, which resulted from the
transformation of Bulgarian society and
economics, had a direct impact on the
effectiveness and the quality of Bulgarian
business organizations. Modern studies and
research (3-7) report the wide awareness and
recognition of the growing significance of
conflicts in all spheres of life on a regional,
national and world scale.
The generic definition of conflict we have used
has been formulated by the founder of modern
science of social conflict in Bulgaria –
Prof.DSc. Dimitar Yordanov Dimitrov. It is
generally accepted that Conflict is a form of
manifestation of contradictions – a universal
and eternal human and public phenomenon,
based on the dynamic interaction between at
least two conflicting parties, caused by
different interests, needs, goals, values,
opinions and lack of resources where means of
various nature are used to achieve the goals
and satisfy the interests; it ends in victory,
defeat, compromise or a mutually acceptable
solution (8).
THE AIM AND THE FOCUS OF THE
PAPER
The focus of the present paper is on conflict as
a phenomenon related to individuals and
business organizations, which people establish
or participate in. Conflict is of interest in terms
of the objective laws for its occurrence
(prerequisites for its occurrence, development,
ending, effects and situations after its end) in
their entirety. Conflictological relations
between individuals and social groups -namely
business organizations and their activities, are
studied. The aim is to get to know various
means and ways of impacting (analysis,
forecasting, prevention, practice) conflicting
relations of the interacting parties. That
activity is not an end in itself. It is a step
forward in technologizing the acquired
knowledge in the field of conflict management.
In the end this is one of the ways for solving
practical problems related to conflicting
interaction in business organizations.
The development of such an understanding of
the nature of the processes under study is based
on the achievement of many researchers with
acknowledged contribution in the science and
practice of conflictology such as Boulding (9),
Burton (10, 14), Darendorf (11), Kriegsberg
(12), Boardman and Horowitz (13), Deutsch
(15) and many others.
As a result of their theoretical and practical
work the thesis was adopted that conflict
management is of heuristic importance for
creating a technology for taking complex
decisions about the management of a business.
The present work is the starting point for
proving it. There is the assertion that the
mechanisms of conflict resolution play a
significant role in the technology of conflict
management in a business organization.
However, there are the questions of what the
specificity of conflicts in a business
organization is, what the main directions of the
analysis of existing and potential conflicts are.
METHODOLOGICAL FRAMEWORK
The assertion that each organization is
characterized by its own internal and external
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550 Trakia Journal of Sciences, Vol. 17, Suppl. 1, 2019
environment has long been widely accepted.
The internal environment of an organization is
characterized by its functional structure, aims
and tasks, resources, technologies and
communications. The external environment of
an organization in turn is determined by
different in nature factors and social conditions
of the environment. It is their adequate
diagnostics that is at the base of the strategic
analysis and the successful implementation of
the views on the strategy of the business
organization. If we set the strategic aspect of
management aside then our attention turns to
the tactical and operational level of
management. And there are lurking conflicts in
the organization. That is a factor which in
Bulgarian research in the field of management
has received only cursory treatment and has
almost been ignored in public and business
practice.
To a great extent contradictions along the axes
of “Individual – Group“, Intragroup and
Intergroup conflicts are at the basis of
conflicts in the organization. These kinds of
conflicts play a prominent role in the process
of social interaction and realization of human
activities. And it is not only within the
framework of a particular organization but also
in the interaction between different
organizations. Inadequate interaction along
these axes, in their formal and informal
dimension, together with interpersonal
relations is often a major factor causing
conflicts in organizations.
Such a short overview of the types of conflicts
in an organization, based on the participants in
the conflict, is the minimal required, but
insufficient basis for dealing with conflicts.
We should not fail to mention the sources of
conflicts in organizations, which can be
summarized in four types – structural conflicts,
innovation conflicts, position conflicts and
resource conflicts. We could add yet another
characteristic for classifying conflicts in
organizations –the type of functional system of
the organization. It determines them as
organizational-technological conflicts,
conflicts in the socio-economic system of the
organization and conflicts in the
administrative-management system of the
organization. That typology comes to aid the
overall technologization of the management of
conflicts. Their effective solution, as the final
goal of the study, is only an element (and a
final one) of the whole process of managing
them.
THE LOGIC OF CONFLICT
MANAGEMENT AND THE ROLE OF
CONFLICT RESOLUTION
What is the logic that is applied. Managing
conflict is a purposeful management impact.
That impact is exerted on the behaviour and
the actions of individuals and groups in their
conflict and regarding their conflict interaction.
The final aim is solving the conflict as a whole
or at different stages of its dynamics of
unfolding.
The very process of managing the conflict is
quite complicated but for the purpose of the
goals set herein it can be brought down to three
main stages. They are: “Appeasing the
conflict“, “Resolving the conflict“ and
“Reaching a mutually beneficial
compromise solution among the parties“.
It is the area of Resolution of conflicts that is
the focus of our scientific and practical work.
At the risk of repeating myself – the main aim
is the following: – by means of the already
acquired conflictological knowledge to
technologize the process of resolving the
conflict, as the final stage in managing it. At
the same time opportunities will be sought to
mitigate the causes of conflicts and to
overcome or minimize the consequences of the
so called destructive and dysfunctional
conflicts.
Which are, however, the other steps that are
part of the process of managing conflicts and
precede its final resolution. All steps presented
below are taken by those making the
managerial decisions at different levels of the
organizations.
First comes forecasting of conflicts. That is
the activity of the one who makes managerial
decisions and it is directed at clarifying the
reasons for the potential development of a
certain conflict or conflicts. What comes next
is prevention of conflicts - an activity directly
targeted at averting a conflict or conflicts.
Sometimes there is the need for stimulating a
conflict - an activity targeted at provoking
(causing) a conflict. Quite often it is necessary
to regulate a conflict - an activity targeted at
abating and limiting conflicts. In the end
comes resolution of conflicts, which includes
all the activities of the manager related to
ending the conflict. The maximum to be
achieved is complete resolution of the conflict
through elimination of its causes and the
conflict situation. The result aimed at is
reaching mutually beneficial, lasting and final
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Trakia Journal of Sciences, Vol. 17, Suppl. 1, 2019 551
agreement regarding the real subject of the
disagreement between the parties in the
conflict. Quite often, however, its resolution is
incomplete – not all causes and accompanying
conflict situation are eliminated. However, that
is a matter for further consideration.
There must be a range of prerequisites for
resolving a particular conflict. The conflict
should be mature enough. There should be
the need in the parties in the conflict to have
it resolved. What should not be overlooked
also is the availability of the needed means
and resources for resolution of the conflict.
Before moving on to the essence of the
proposed adapted, staged model of resolution
of conflicts we need to say a few words about
the prerequisites and forms of conflict
resolution in business organizations. In
general, the forms of conflict resolution will
depend on the chosen strategies of behaviour
in these particular situations. According to
research carried out by Kilmann, R. H. and
Thomas (16), (17) the classical strategies for
settling the conflict are competition,
compromise, adaptation, avoidance and
cooperation. It is important to mention them
because often the adequate or inadequate
adoption of one of these determines the final
result of a conflict. A more detailed discussion
of them, however, is outside the scope of the
present study. As far as the ways of resolving
a conflict are concerned we would summarize
them, without going into details, into two main
ways – administrative and pedagogical.
THE DESCRIPTIVE MODEL OF
CONFLICT RESOLUTION IN BUSINESS
ORGANIZATIONS
The main understanding, the accepted logic of
the described processes as well as the proposed
adapted model are based mostly to the
philosophy of Prof. Dimitrov presented in the
abovementioned fundamental work
“Conflictology“of 2004. They are
complemented by the revised works of
Professor Luchian Milkov of 2014 (18) and
other Bulgarian authors such as Atanas
Gotchev (19) and Evgenia Vasileva (20). Full
credit should be given to the impact of world-
renowned or new sources in the field of
conflict resolution which have been cited in
this paper.
Here follows a description of the proposed
model. In essence it is a staged, descriptive
model of conflict resolution in general. The use
of the word adapted in its description is due to
the fact that it, when applied, takes into
consideration the specificity of the business
organization, for example, in organizing and
conducting business negotiations, the specific
actions for resolving the conflict, cultural
characteristics, the limitations of the industry
characteristics, the sphere of activity, the
application of the situational approach and
many other.
In essence the model for conflict resolution of
the business organization is based on the
execution of the following five stages with
their particular aims:
Stage one - Prevention of conflict. That stage
as a whole pursues the following two
objectives. The first of them is the earliest
possible diagnostics of a prospective conflict
interaction. The second one is related to
performing the needed actions in order to
prevent a destructive conflict.
Stage two. It is related to the Analysis of the
conflict situation. In the second stage we need
to take the following actions. First to forecast
the conflict in its general lines of development,
the way it goes and ends and its social
background. The subject and the object of the
conflict need to be distinguished. We cannot
do without an analysis of the parties
participating in the conflict. What is needed
also is an analysis of the managerial position of
the individual entrusted with the task of
organizing the process of resolution of the
conflict.
Stage three. It is related to the Preparation
of a strategy for resolution of the conflict.
That third stage includes several objectives.
Choosing particular strategies for conflict
resolution is the first of them. Next follows the
preparation of a particular programme (action
plan) for following the strategy for conflict
resolution. The preparation of criteria which
will be used to evaluate the effective resolution
of the conflict is the last objective at this stage.
Stage four – Implementation of the strategy
for conflict resolution.
At that stage the precise and consistent
implementation of the strategy for conflict
resolution is monitored, and when necessary,
the needed measures and actions are taken to
control and correct the strategy, on the basis of
the information (feedback) about the object
(objects) of managerial impact. The respective
ending of the conflict happens at that stage.
IVANOV IV.
552 Trakia Journal of Sciences, Vol. 17, Suppl. 1, 2019
Stage five. Analysis of post-conflict
situation. In that final fifth stage the most
important thing to do is to perform three main
actions. The first is the evaluation of the
effectiveness of the actions taken for conflict
resolution. The next step involves an overview
of the experience acquired, with its positive
and negative sides. Finally, action should be
taken regarding the prevention of other
conflicts and most of all destructive ones.
In general, this is what the model for conflict
resolution in business organization, proposed
here for discussion, is about. Looking back at
the correlation “conflict management–
conflict resolution“ another applied tool can
be added to the here presented model. It
enriches the possibilities of analyzing and
managing conflicts in a business organization.
That is the algorithm of managing conflict
by leaders developed by Prof. Dimitrov. It is
based on a strict sequence of steps, whose
execution leads to a potentially successful
management of the conflict. Its logic does not
contradict but rather complements the
available practical tools for handling conflicts.
ALGORITHM FOR MANAGING
CONFLICTS BY LEADERS.
The first step is the study of the causes of
the conflict. The causes of a conflict in general
are:
1) Objective (do not depend on the cognizance
of those participating in the conflict);
2) Subjective (subjectively true reflect the
objective reality by the participants in the
conflict);
3) Subjectivist (are the fruit of the active
imagination of the participants in the conflict).
Techniques (methods) of execution:
а) Observation (of the conflict and of the
participants in the conflict). In this case the
manager is in a passive position;
b) Analysis of the results from the activity (of
the participants in the conflict);
c) Talk (with the participants in the conflict).
Here the manager is in an active position and
has a purposeful conversation with the
participants in the conflict interaction;
d) Study (analysis) of documents (directly or
indirectly related to conflict and the
participants in the conflict);
e) Biographical method (of the conflict and the
participants in the conflict).
Step two – limiting the number of
participants.
Limiting the number of the participants in the
conflict is a very important moment in
managing it. What is more, we should not
allow the subject of conflict interaction to
expand.
Techniques (methods) of execution:
а) Work with the leaders in the microgroups.
Identification of the leaders in the microgroups
and influencing them with the aim to limit the
number of the participants in the conflict
interaction;
b) Redistribution of functional responsibilities.
In some cases there may be the need to move
the conflict participants in the organization and
change the nature of the activity they are
involved in;
c) Awards and sanctions, etc. The whole range
of techniques for stimulation (external
influence on the participants in the conflict)
and motivation (internally recognized needs
combined with external influence on the
participants in the conflict).
Step three – additional analysis of the
conflict by experts.
That step is highly needed in a continuous
conflict or in a conflict involving a great
number of participants.
Techniques (methods) of execution:
а) Survey of experts. In this case it is best that
they are experts in the field of the conflict
which has occurred (economic experts in an
economic conflict, experts in the field of
management in managerial conflicts, etc.);
b) Attracting a conflictоlogist, a mediator, a
psychologist. Each of the three types of experts
has its specific role and place in managing the
conflict. The conflictologist is most
appropriate as expert in organizational
conflicts, the psychologist is best used as
expert in intrapersonal or interpersonal
conflicts, the greatest strength of the mediator
(intermediary) is demonstrated in
conflictological mediation and negotiations;
c) Negotiating process (mediation), etc. By and
large the negotiating process and its specific
conflictological variation - mediation are only
a tool for managing conflict. The decisions and
activities about its real management are made
and carried out by the manager and the
participants in the conflict, with the mediator
just providing assistance in the process.
Step four – decision making.
In the end, it all comes down to making
decisions about managing the conflict.
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Trakia Journal of Sciences, Vol. 17, Suppl. 1, 2019 553
Techniques (methods) of execution:
а) Administrative methods. They are used if
the leader has administrative power (regulated)
– stimulation and sanctions;
b) Pedagogical methods. These include a rich
array of psychological, socio-psychological
and social methods of influence. For example,
persuasion, request, clarification, pressure,
advice, etc.
As a whole that is the theoretical statement of
the model, which has been tested in a real
business environment. There is a lot of work to
be done on improving it and testing it on a
statistically relevant scale. Ways are sought to
integrate into the herein described model other
appropriate instruments for managing and
resolving conflicts in business organizations.
In today’s highly dynamic environment this is
not a hindrance. It is even obligatory, as a
supplement to the model here proposed and the
accompanying algorithm, to employ what other
models can offer. A good example in this
respect is the “CHANGES: A Conflict
Management Model for Organizational
Redesign Efforts “model (21).
The beginning of the road has been marked
and as Laozi says 'A journey of a thousand
Chinese miles (li) starts beneath one's feet'.
CONCLUSION
As the attentive reader has already noted there
is a difference between the definitions and the
essence of the concepts of conflict
management and conflict resolution, although
they are of similar nature. Generally, it is much
easier to manage a certain conflict than to
resolve it. There are even authors who claim
that a conflict can be managed only but not
solved because the resolution of the conflict
interaction is related to phenomena which
cannot be influenced: the needs, motives and
interests of the individual, value orientation
and social attitudes, etc. The author of this
paper does not agree with such an extreme
view. Public and business practices provide
many examples which prove the theoretical
possibility of conflict resolution. That
possibility, of course, can be realized under
certain subjective and objective prerequisites
and conditions (8).
The adapted model for conflict resolution
proposed here is at present being tested in
Bulgarian business organizations from various
sectors. The plan is, over a period of two years,
to achieve results which will empirically prove
the degree of its effectiveness. The answer to
the question whether this choice of a
theoretical structure of the here proposed
descriptive model of conflict resolution was
reasonable can and will be obtained only
through public practice. At the moment all
advice about its optimization, all
ascertainments, conclusions and
recommendations about its adequacy are
welcome. The author relies on the scientific
community and experts from practice to get
involved in the discussion he has initiated. A
well-meant and open discussion is the way to
find simple solutions to the complex problems
that we create ourselves or the environment, in
which we pursue our activities and goals,
presents us with. It is the aim of the author to
make a contribution in the field of conflict
resolution in business organizations. It is his
belief that collaborative work can make this
aim attainable.
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