Business and Technology · Sources of conflict and techniques for conflict resolution

Nature and Causes of Conflict in Organisations

Updated 11 October 2026 · Fact-checked

Conflict is a disagreement or clash between people or groups whose goals, interests, values or views seem incompatible. It can be individual, group or intergroup. Common causes are scarce resources, clashing goals, poor communication, role confusion and differing values. In the exam, identify the level of conflict, then match the cause to the scenario.

Understand Nature and Causes of Conflict in Organisations

Conflict is a situation where one party sees its goals, interests or values as being blocked by another party. The key word is perceived. Conflict can exist even when the parties could in fact both get what they want, because what matters is how they see it.

You can classify conflict by who is involved:

Individual (interpersonal) conflict: between two people, such as a manager and a team member who disagree on how a task should be done. It also includes role conflict inside one person, where they face competing demands.
Group conflict: between members within one team or group, for example over leadership, workload or how to approach a project.
Intergroup conflict: between separate groups or departments, such as sales versus production or finance versus marketing.

There are many causes, and the exam usually tests whether you can spot them in a short scenario. The main ones are:

Scarce resources: budgets, staff, equipment or space are limited, so departments compete for them.
Clashing goals: each department has its own targets. Sales wants wide product choice and fast delivery. Production wants long runs and low cost.
Poor communication: missing, late or unclear information leads to misunderstanding and mistrust.
Interdependence: when one group's work depends on another's output, delays and errors cause blame.
Role ambiguity: unclear responsibilities or overlapping authority.
Differences in values, personality or culture: people see the same facts differently.
Change: new structures, systems or leaders threaten status or job security.
Unfair treatment: pay, rewards or workload seen as unequal.

Conflict is not always bad. Whether it helps or harms depends on how it is handled, and that is covered in the topic on functional and dysfunctional effects. Here you only need to recognise what conflict is, its levels and why it arises.

Key formulas to remember

Levels of conflict: Individual | Group (within a team) | Intergroup (between teams or departments); First decide who is in conflict. Then name the type.
Main causes checklist: Scarce resources | Clashing goals | Poor communication | Interdependence | Role ambiguity | Differing values | Change | Perceived unfairness; Use as a prompt list. Pick the cause that the scenario facts point to, not all of them.

How to solve Nature and Causes of Conflict in Organisations questions

Use this method for any question on the nature, types or causes of conflict.

1Read the scenario and underline who is involved: two individuals, members of one team, or separate departments.
2Name the level of conflict: individual, group or intergroup.
3Find the trigger in the facts: shortage of something, different targets, missed information, unclear duties, change or unfairness.
4Match the trigger to the cause term from the checklist, using the exact label.
5For multiple response questions, select only options that the facts support, up to the number asked.
6For written-style or multi-task items, give the label, then a one-line link to the scenario.
7Check that your answer describes the cause of conflict, not a way to resolve it.

Quickest way: Who, then why

When to use it: For one or two mark objective test questions where you have about a minute or less.

Ask who: one person, one team or two departments. That gives the type.
Ask why: look for words such as limited, targets, not told, unclear, new system or unfair.
Choose the option that names that cause. Ignore options about solutions or effects.
If two options look right, pick the one that matches the exact facts given.

Common mistakes in Nature and Causes of Conflict in Organisations

Treating conflict as always harmful.
Everyday use of the word suggests fighting or damage.
Fix: Define conflict neutrally as perceived incompatibility. Effects are judged separately.
Calling a clash between two departments group conflict.
Both words sound similar.
Fix: Use group conflict for members within one group. Use intergroup for separate groups or departments.
Naming a resolution technique when asked for a cause.
Students rush to recall models such as Thomas-Kilmann.
Fix: Read the verb in the question. Causes explain why conflict arises. Techniques explain how to handle it.
Confusing clashing goals with scarce resources.
Both often appear together in department disputes.
Fix: If the dispute is about sharing a limited budget or staff, it is resources. If it is about different targets or priorities, it is goals.
Ignoring poor communication when facts show late or missing information.
Students look for dramatic causes such as personality clashes.
Fix: Scan for information not passed on or misunderstood. It is a very common cause.
Listing every cause from memory.
Students want to show knowledge.
Fix: In objective tests, only the cause supported by the scenario scores. Match, do not list.

Worked examples

Example 1

The sales department promises customers fast delivery of a wide range of products. The production department wants long production runs of few products to keep unit costs low. They argue constantly. Which type of conflict is this and what is the main cause? A) Individual conflict caused by personality B) Group conflict caused by role ambiguity C) Intergroup conflict caused by clashing goals D) Intergroup conflict caused by poor communication

Show the solution

Who is involved: two separate departments, sales and production.
So the level is intergroup, which removes A and B.
Why: sales wants variety and speed, production wants low cost and long runs. These are different targets.
No facts mention missing or late information, so D is not supported.
The cause is clashing goals.

Answer: C) Intergroup conflict caused by clashing goals.

Example 2

A company has a fixed training budget. The finance, marketing and operations managers each ask for most of it and accuse each other of being selfish. Identify the type of conflict and explain its main cause in two or three sentences.

Show the solution

Who: three managers representing separate departments, so the conflict is intergroup.
Trigger: one fixed budget that all want to use. There is not enough for everyone's requests.
Cause term: scarce resources.
Link to the facts in the answer.

Answer: This is intergroup conflict. The main cause is scarce resources: the training budget is fixed, so each department competes for a larger share, which leads to blame and mistrust between them.

Exam tips

Always decide the level first: individual, group or intergroup. Many options differ only on this.
Match the cause to a scenario keyword such as limited, targets, not informed, unclear role or unfair.
Check the question verb. If it asks for causes or sources, do not choose resolution techniques or effects.
In multiple response questions, select exactly the number asked and avoid options that go beyond the facts.
Revise this topic together with effects of conflict and resolution techniques, as the same scenario can be used for all three.

Practice questions from Sources of conflict and techniques for conflict resolution

Nature and Causes of Conflict in Organisations: frequently asked questions

What are the main types of conflict in organisations?

The three usual levels are individual, group and intergroup. Individual is between people, group is within one team, and intergroup is between teams or departments. Name the level from who is involved.

What causes conflict between departments?

Typical causes are clashing goals, scarce resources, poor communication and interdependence. Each department has its own targets and relies on others for inputs, so disagreements and blame arise. Use the facts in the scenario to pick the cause.

Is conflict always bad in an organisation?

No. Conflict is a perceived incompatibility, and its effects can be helpful or harmful depending on how it is managed. The effects are treated as a separate topic, so keep them apart from causes.

How do I tell role ambiguity from poor communication?

Role ambiguity is about unclear duties or overlapping authority. Poor communication is about information not being passed on or being misunderstood. Look for which of these the scenario describes.