Employee's productivity is the most important and pressurising issue in the organization which is now a days a very normal and natural part in this global competition with the differences in culture, values and ethics. As the world trade is operating under one umbrella people comes from different backgrounds and work style are taken together for shared business purposes, so conflict may take place in any type of association. Organizations generally tries to make their employees to work together and conflicts start when people with variety of workstyle, goals, motivations and process work together with different priorities. There can be many repercussions of such conflicts such as insults, non-cooperation, bullying, aggression and many a times fighting and harming other physically due to ego classes. People with such surroundings may be affected with stress even if they are not a part of that conflict because such conflicts create unhealthy working environment. Majority of people come with the solution that not to put those people in the same team who are creating conflicts, but this is the biggest misstate generally an organization does, because such decision may result in communication gap, lack of understanding, wrong perception. Neither we can separate people involved in conflict and let them stop communicating with each other nor can we leave them on their own because unresolved conflicts may lead to feeling of insult, hopelessness, dissatisfaction, unhappiness and so on. The extreme outcome of unresolved conflicts is work disruption, decrease productivity, project failure, absenteeism, turnover and termination. However if resolved properly it may result in better understand, ideas, working conditions and relationship and finally increase in productivity and profitability. Thus, this paper attempts to find out the possible outcomes of conflicts on the productivity of an employee and what can be effective solution for such conflict for retention of employees and their productivity.
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