Internal Conflict Vs. External Conflict

While ridding the workplace of conflict entirely is not a plausible goal, a small business manager should strive to minimize the amount of conflict present in the business. Attention paid to conflict pulls attention away from the necessary tasks in the business. This can result in lost time and productivity, which can ultimately lead to a loss in profitability if the problem is severe enough. Managers should attempt to remedy the conflict as soon as they are made aware of the situation. Ignoring it in hopes it will go away on its own can be detrimental to the business.

Internal Conflict

The two types of conflict are internal and external. With internal conflict, it is personal to the person involved. This type of conflict takes place within the person. It can surface when a person’s values or morals are tested or otherwise compromised. Internal conflict can cause a great deal of stress as the person has to be able to remedy the situation on his own in most situations. Internal conflict can greatly impact the person’s performance level. Many times, being able to talk about the situation and the source of the conflict can help tremendously.

External Conflict

External conflict is conflict that occurs outside of the person. This can be conflict that is observed in others or outside forces that are causing conflict for the person, such as an unhappy customer or an unruly supplier. External conflict can also be caused when the management style of the business owner does not set well with the employees of the organization. A common example of this is a boss who likes to micro-manage but has a staff of highly independent employees. This is bound to cause conflict and an unpleasant work situation.

Conflict in Workplace

Contrary to what most think, conflict in the workplace can be a positive. Not only can it identify issues that are points of weakness for the business, it can also improve the negotiation and mediation skills of those in the office. Although constant conflict or an overwhelming amount of conflict can cripple a staff, some conflict is necessary to keep employees on their toes. Without any conflict, the staff may become complacent as things always rock along perfectly in the business.


Whenever conflict arises, an effective business practice is to involve a mediator. The mediator is a person not personally involved in the conflict and can deliver an unbiased opinion. The mediator also ensures that discussions about the conflict follow certain discussion rules, such as not swearing, yelling or physically showing emotions to the other person. Many times, the mediator in the organization is the human resources manager. The human resources manager may also be a good sounding board for those dealing with internal conflict as well. If the conflict involves the entire organization, it may be necessary to bring in an outside mediator to help with the problem.


Developing a set of rules that guide communications during conflict resolution may be a great solution for the company. This includes not interrupting when the other is speaking, actively listening to the other person including paraphrasing back what has been said to ensure understanding and what should happen if emotions escalate. By having this written down and a part of the employee manual, employees at all levels know what to expect during a mediation and can act according to the rules that have been laid out ahead of time and agreed to by all employees of the business.


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