CONFLICT MANAGEMENT IN INTERNATIONAL COMPANIES

Abstract

The article is dedicated to exploring the causes of conflicts in international companies and identifying effective ways to manage them. It emphasizes that in today's business environment, effective conflict management is a key factor in ensuring organizational stability and success. An analysis of the main causes that can provoke conflicts in international companies has been conducted. Specifically, the paper points out that conflicts in international companies may arise due to language barriers, cultural differences, unsatisfactory communications, uneven resource distribution, distinct management styles, varying conditions for career growth, social and labor injustices, as well as discrepancies in priorities and goals. The study highlights that constructive conflicts can stimulate innovative solutions and enhance work efficiency. However, destructive conflicts, on the other hand, harm productivity and relationships within the team. The article underscores the importance of skilled conflict management as one of the key competencies of modern management. Additionally, it emphasizes that the lack of personal contact in remote work complicates the resolution of conflict situations. The challenges faced by international companies in the context of globalization—cultural differences, legal and ethical standards, as well as integration after mergers—are discussed separately. The article presents practical recommendations for managers on how to avoid and effectively resolve conflicts in international companies, taking into account cultural and organizational specifics. Negotiation, as one of the most effective methods, allows parties to discuss issues and find mutually beneficial solutions while considering cultural nuances. Mediation, involving a neutral third party, helps to avoid emotional outbursts and focuses on rational solutions, whereas arbitration offers binding decisions when other methods have failed. Compromise allows for a quick reduction of tension, though it may not always satisfy all demands, while consensus provides stability when all parties are satisfied with the outcome. Adaptation, where one party consciously concedes, can be effective for maintaining long-term relationships. Ignoring conflict may be justified in some cases; however, this approach should not be used too frequently, as the conflict may escalate. Implementing cultural integration programs and coaching is crucial for developing intercultural competence and conflict management skills.