Types of Organizational Conflicts of Interest

Conflicts of interest exist exactly as long as a person exists since they arise only in the process of communication between people. A person spends most of the time at work, interacting with superiors and subordinates, communicating with colleagues, building joint activities with company partners.

What Are the Main Types of the Organizational Conflicts of Interest?

Domestic sociology of organizations considers organizational relations as a manifestation of broader social relations, directly linking the construction and functioning of organizations with the specifics of the social system, specific problems, and tasks of social development. Domestic sociologists have been developing the problems of the sociology of organizations since the mid-1960s. Their focus is on optimizing the ratio of formal and informal structures, improving the leadership style, increasing the manageability of organizations, etc.

A conflict of interest is a situation in which a personal interest of a person can influence the decision-making process and, thus, harm the interests of society or the company that is the employee’s employer. The problem of conflict of interest is relevant for both private businesses and government officials. National laws and corporate regulations require the resolution of conflicts of interest.

There are many definitions and interpretations of conflicts of interest. The classics of theoretical conflictology did not give a clear definition of the concept of conflict. Only by their general statements can one imagine some approaches to what conflict is, as it has such a significant impact on the economy and development of the country that the state has to take an active part in this process.

Among the main types of conflicts of interest:

  • Organizational.
  • Personal.
  • preventive method.
  • Information disclosure.
  • Voluntary opt-out.
  • Monitoring by anti-corruption organizations and collegial bodies.

An organizational conflict of interest arises when an organization provides services to the Customer and, due to other activities or relationships, this organization is not able to provide services impartially, its objectivity in the performance of its functions is violated or may be violated, or this organization has too large competitive Benefits. Interpersonal conflict in organizations is the most common. It manifests itself in different ways, for example, as the struggle of the heads of various departments for limited resources, labor, capital investments, etc. Intrapersonal conflict may be a response to work overload or underload. Research shows that this conflict is associated with low job satisfaction, low self-confidence and value to the organization, and stress.

Everything We Know About Conflicts of Interest

From the point of view of management, the grouping of conflicts, their classification focuses mainly on the economy and the social sphere, i.e. on the economic management of an organization operating in a market environment, the problems of formation, development, and behavior of personnel under the influence of market relations. Consequently, in terms of personnel management, the priority is the subject study of conflicts of a socio-economic type, which are mainly related to business practices, people’s relations in the field of work and entrepreneurial activity, the satisfaction of the material and spiritual needs of workers, their social protection, arrangement of life, recreation and leisure.

The main tasks in the study of conflict of interest issues and their management:

  • consideration of the phenomenon of organizational conflict, its types, and types, structure and preconditions;
  • study of the main features of conflict interaction in an organization: strategies, contradictions that affect the course of conflict situations;
  • a detailed consideration of the methods, rules, principles, and recommendations used in the management of organizational conflicts.