How to deal with conflict in a team: A complete resolution guide

By Dragana Bajić 8 min read
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Personality clashes, disengagement, and lost productivity are just a few of the consequences of unaddressed workplace conflicts.

The longer you avoid or mismanage unresolved conflict, the more it impacts team dynamics, preventing a productive work environment from thriving. All this can have a flow-on effect, causing serious downturns in overall business performance and profitability. And no business or team needs that.

Whether you're a founder or a team leader at an agency, a startup, or a consultancy business, handling workplace conflict should be second nature to you.

In this post, we give you a bulletproof strategy for minimizing the negative impact of workplace conflicts and a fast resolution blueprint. One that will balance and smooth out employee relationships and get your overall workplace culture into a safe and healthy mode!

Get the basics right: Environment & communication techniques

Before you jump into any type of workplace conflict resolution, you need to create the right setting and take the right approach. These are the environment you create and the communication techniques you apply.

If you don't get these foundations right, effective conflict resolution will be impossible.

Create the right environment for conflict resolution

Start by creating the right environment where workplace conflict can be addressed in a safe space. This involves minimizing any environmental and psychological factors that can negatively impact team members' ability to express and share concerns and issues openly and honestly.

Choose the right physical environment

Physical environment significantly impacts conflict resolution success. Choose neutral meeting rooms or settings rather than one person’s office.

Privacy considerations are also important when choosing the space where you'll handle sensitive workplace conflicts. Make sure conversations can’t be overheard by other team members who aren’t involved, and choose times when interruptions are unlikely.

If the team conflict is being addressed in a virtual meeting, establish clear protocols that support productive discussion. Require cameras to be on so team members can read facial expressions and body language.

Establish psychological safety

Psychological safety is all about making sure people know they won’t face negative consequences for participating honestly in workplace conflict resolution. When people fear consequences for speaking up, they’ll either avoid the process entirely or participate superficially.

Set the structure and ground rules

Create a structure that keeps discussions productive by setting clear agendas and time limits. Begin each session by reviewing the ground rules and the specific workplace conflict you’re addressing.

Your ground rules might include things like:

  • No interrupting, so everyone gets to finish their thoughts
  • Equal speaking time for all parties involved
  • Focus on specific behaviors rather than personality characteristics
  • Establishing a confidentiality agreement for the entire discussion
  • Agreeing to avoid retaliating for honest feedback
  • Committing to seeking solutions rather than assigning blame
  • Respecting different perspectives, even when disagreeing

End with concrete action items and follow-up dates so everyone knows what happens next and when they’ll reconvene to assess progress.

Use the right communication techniques for conflict resolution

When you've established the right environment, landed a structure, and chosen the ground rules, you can then move on to getting into the right mode of communication for managing team conflict.

There are three communication techniques you need to apply, no matter which strategy you end up using.

1. Active listening

Active listening forms the foundation of all successful conflict resolution efforts. This could include paraphrasing what you hear to confirm understanding, and asking clarifying questions that encourage deeper explanation rather than defensive responses.

2. Acknowledge emotions

Acknowledging emotions validates team members’ experiences without necessarily agreeing with their conclusions. Phrases like “I can see this situation is really frustrating for you” or “It sounds like you’re concerned about the impact on quality” create psychological safety for honest dialogue. This approach helps people feel heard, which often reduces the intensity of their positions and helps lighten the mood in workplace conflicts.

3. Avoid accusations

Avoid accusations that escalate workplace conflicts rather than resolve them. Never interrupt team members when they’re explaining their viewpoint, even if you disagree. Try not to make assumptions about their motivations or use absolute language like “always” or “never,” which typically trigger defensive responses and make people feel unfairly characterized.

5 Conflict Resolution Strategies

When you've got the basics sorted, it's time to turn to actual techniques you can use to resolve team conflict.

One of the most popular conflict resolution models, which is used by both individuals and organizations is the Thomas-Kilmann Conflict Mode Instrument.

What this model does is help people understand how they typically respond to conflict situations, so they can develop a the best approach depending on the context.

The model maps five strategies along two dimensions of behavior:

  1. Assertiveness – Pursuing your own interests
  2. Cooperativeness – Considering others’ needs

Understanding these dimensions helps you select the right approach based on situation urgency and relationship importance.

Now, the strategy you choose to go with might depend on several factors:

  • The complexity of the issue
  • Time constraints
  • Ongoing value of the relationship
  • The potential consequences of different outcomes

By using this model regularly over a period, most teams develop the ability to assess these factors quickly and adjust their approach accordingly, rather than defaulting to a single conflict style regardless of circumstances.

The decision-making framework involves three key questions:

  1. How important is this issue to achieving our goals?
  2. How critical is maintaining this working relationship?
  3. How much time do we have to reach a resolution?

Your answers will guide you toward the most appropriate strategy from the five options below.

#1 Collaboration: Creating win-win solutions

Collaboration combines high assertiveness with high cooperativeness, making it ideal for complex problems where creative solutions benefit everyone involved. This approach requires the most time and effort but typically produces the most satisfying and sustainable outcomes for all parties.

The step-by-step collaborative process begins with joint problem identification.

  1. Bring all stakeholders together to clearly define the issue without assigning blame.
  2. Focus on specific behaviors and outcomes rather than personality characteristics.
  3. Conduct structured brainstorming sessions where every idea receives consideration before evaluation begins.

Let's take a marketing and sales team example to demonstrate what this collaboration approach would look like.

Initially, marketing complained that sales ignored their qualified leads, while sales argued that marketing’s leads rarely converted. Instead of defending their positions, both teams shared their metrics and discovered they were measuring success differently. Through collaborative problem-solving, they developed shared criteria for lead quality and implemented a feedback loop that improved conversion rates by 35%.

Scenarios where you would use the collaboration strategy for workplace conflict resolution include:

  • Complex problems requiring creative solutions
  • Long-term relationships that matter more than quick fixes
  • Multiple stakeholders need to buy into the solution
  • Where innovation and team learning are priorities
  • When time allows for thorough discussion and consensus-building

Collaboration is much easier to do in one-on-one siturations but you can also learn strategies to increase collaboration between teams.

#2 Compromise: Finding middle ground

Compromise involves moderate assertiveness and cooperativeness, with both parties making concessions to reach a mutually acceptable solution. While not everyone gets everything they want, this approach often provides workable solutions when time is limited or when parties have roughly equal power.

Effective negotiation techniques for compromise include:

  1. Identifying each party’s non-negotiables versus areas where flexibility exists
  2. Creating lists of priorities and exploring trade-offs that address the most critical needs for both sides.
  3. Setting fair timelines that allow implementation without rushing important details

Consider a scenario where project teams split budget allocation 60-40 instead of the original proposals of 80-20. The development team needed additional resources for security features, while the marketing team required funds for user acquisition campaigns. Rather than fighting over the entire budget, they compromised by reallocating funds based on project phase priorities, with development receiving more during the build phase and marketing getting additional resources during launch.

Compromise works best in situations where:

  • Time constraints prevent lengthy collaborative processes
  • Parties have relatively equal power and influence
  • A temporary solution will suffice until more resources become available
  • The stakes are moderate – important enough to address, but not critical to long-term success
  • Previous collaborative attempts have stalled

Remember that successful compromise requires both parties to feel they’re gaining something valuable, not just giving up important elements. Focus on creative trade-offs rather than simply splitting differences down the middle.

#3 Accommodation: Yielding for Relationship Preservation

Accommodation combines low assertiveness with high cooperativeness, prioritizing relationship harmony over personal goals. This strategy works well when the issue is relatively minor compared to the value of maintaining positive working relationships with team members.

Strategic accommodation occurs when:

  1. You recognize that the other person has greater expertise
  2. The issue provides a learning opportunity
  3. Building goodwill will benefit future collaboration

A scenario where an experienced developer accommodates a junior colleague’s preferred coding approach demonstrates this strategy effectively. The senior team member gains mentoring experience while the junior developer builds confidence and skills.

Appropriate times for using the accommodation strategy in workplace conflict resolution include:

  • Minor issues that don’t affect core project outcomes
  • Situations where others have significantly more expertise
  • Relationship building with new employees or team members
  • Learning opportunities where experience matters more than being right
  • Temporary situations where maintaining harmony prevents larger conflicts

The key to healthy accommodation lies in clear communication about your reasoning. Explain that you’re choosing to defer because you value the relationship or recognize the other person’s expertise, not because you lack confidence in your own ideas.

#4 Competition: Asserting Position Firmly

Competition involves high assertiveness with low cooperativeness, making it appropriate for urgent decisions, safety concerns, or situations requiring immediate action. While this approach can damage relationships if overused, it becomes essential when compliance isn’t optional or when delay creates greater risks.

An example of a scenario where the competition approach is ideal is when a team leader overrides objections to implement mandatory cybersecurity protocols. When the company faces security threats, the urgency outweighs the need for consensus. Similarly, safety violations require immediate intervention regardless of team member preferences or comfort levels.

Use the competitive strategy approach for resolving workplace conflicts in scenarios involving:

  • Emergencies requiring immediate action
  • Legal compliance issues where alternatives don’t exist
  • Safety concerns that put people or assets at risk
  • Ethical situations where compromise isn’t acceptable
  • Decisions where you have clear authority and accountability

The risks of competition include reduced trust, decreased future collaboration, and team members feeling their input isn’t valued. To minimize these negative impacts, explain your reasoning clearly and acknowledge that you understand others may disagree with your decision.

Follow up competitive decisions with opportunities for team members to provide feedback and suggest improvements for future similar situations. This demonstrates that while you’re willing to make tough calls when necessary, you still value their perspectives and expertise.

#5 Avoidance: Strategic Withdrawal

Avoidance combines low assertiveness with low cooperativeness, which sounds negative but serves important strategic purposes when used appropriately. Sometimes the best action is no action – particularly when emotions run too high for productive discussion or when gathering additional information will lead to better solutions.

Strategic avoidance might involve:

  1. Postponing design discussions until a key stakeholder returns from vacation
  2. Allowing heated tempers to cool before addressing interpersonal conflicts
  3. Waiting for budget clarity before making resource allocation decisions

The goal isn’t to ignore problems permanently but to create better conditions for resolution.

Consider using the avoidance strategy for workplace conflict resolution when:

  • Emotions are too intense for rational discussion
  • Key information or stakeholders are missing
  • The issue may resolve naturally without intervention
  • Timing isn’t right for a productive conversation
  • Other priorities require immediate attention

However, avoid using this strategy for serious conflicts that require resolution or when a delay will make problems worse. Avoidance becomes problematic when it’s used to escape difficult conversations that team members need to have for the working relationship to improve.

When you choose avoidance, communicate your intentions clearly. Let team members know you’re postponing the discussion temporarily and specify when you’ll revisit the issue. This prevents people from feeling ignored while giving everyone time to prepare for more productive dialogue.

Workplace conflict: You can't avoid it, but you can grow from it

Conflict is an unavoidable part of teamwork, but it doesn't have to derail progress or damage relationships. In fact, when handled properly, conflict can spark innovation, strengthen relationships, and create a more productive work environment.

When leaders and teams create the right kind of environment – both physical and psychological – for conflict resolution, even the most heated disputes can become turning points for growth.

Hear out both sides. Analyze and understand their perspectives. Set clear ground rules. Use thoughtful communication techniques. By doing so, you can manage conflict and lift team morale without leaving long-lasting damage to the business or its people.

Remember, successful conflict resolution isn't about avoiding disagreements – it's about managing them in a way that strengthens trust, supports long-term collaboration, and keeps the team focused on shared goals.

By treating workplace conflict as an opportunity rather than a threat, teams and organizations can unlock creativity, prevent recurring issues, and build a genuinely productive work environment.

Need a tool that will let you collaborate and communicate more effectivley with your team and help minimize conflict?

ActiveCollab is a productivity and collaboration workspace for growing service businesses.

Book a demo or sign up for our 14-day trial to test drive the platform made for smooth team work! 

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