A conflict exists whenever people are in disagreement and opposition. You are in conflict when you get aggravated at someone or when someone does something that bothers you, and conflict is part of every relationship and every social system. All human relations rely on the psychological contract because people want to have their expectations met. The psychological contract is composed of the implicit expectations of each party.

Conflict arises when the psychological contract is broken, which happens for two primary reasons: We fail to make explicit our own expectations and fail to inquire into the expectations of others. We assume that others have the same expectations that we hold. People often think of conflict as “fighting” and view it negatively, which it can be. However, conflict can be positive or negative. Conflict of ideas generally leads to changes that improve performance—functional conflict.

Functional conflict exists when disagreement and opposition support the achievement of organizational objectives Functional conflict can decrease complacency and reveal inefficiencies. Dysfunctional conflict is often personal and can bring about many negative outcomes within an organization, including damaged relationships, decreased productivity, revenge, avoidance, and aggression. The longer you wait to deal with conflict, the harder it is to keep it from being dysfunctional.