Conflict exists whenever two or more people come together with divergent views or needs. Conflict is rooted in disagreement over issues or needs, the way to address issues or achieve needs, and the reconciliation of differences in personal aspirations behind the issues of needs. People experience internal tension when they perceive their personal values and goals being compromised, or when they are asked to behave contradiction to their own betterment. Conflict causes stress, anxiety, and anger.

Conflict can destroy interpersonal communication, inhibit group cohesion, and rupture interpersonal relations. The positive effects of conflict are opportunities for problem solving, innovation, change, and organizational cohesion. The manner in which conflicts are resolved is the key to promoting the positive effects that can result from conflict situations. Conflict can be resolved in many ways, ranging from formal written contracts to tacit agreements. Causes of conflict include misunderstandings over roles, responsibilities, policy, values, goals, resources, and authority.

Conflict may be visible or hidden, but the successful resolution of conflict is attributed to the knowledge, skills, and management style used by the leader. Conflict is a valuable source of organizational renewal. When legitimate conflict is encouraged by leaders, it provides a healthy environment for constructive development.