This conflict resolution approach leads to the most favorable outcomes in the long term, but is often the most challenging and takes the most time to implement. Both parties’ needs and desires are taken into account and a mutually beneficial solution is reached, where everyone is satisfied. This often requires everyone to sit down and communicate, negotiating a solution together. This style is used in cases where preserving relationships between all parties is crucial or when the solution itself will have a significant impact.

Pros: Both parties are happy with the outcome. A solution that effectively addresses the conflict is reached, and the manager who uses this method is seen as skilled.

Cons: This conflict management style is time-consuming. Meeting deadlines or production may need to be postponed while finding a solution, which can take a lot of time, depending on the parties involved, and result in losses.

Example: Terry and Janet are leading the design of a new prototype and are facing difficulties as Terry wants to include certain features, while Janet wants to include different ones. To reach a resolution, they sit down and discuss each feature, and the reasons behind its importance (or not), and eventually reach a solution that incorporates a combination of their features and some new ones they discovered during negotiations. In each of these conflict resolution scenarios, a solution is found, but the impact on employee morale, productivity, and happiness will vary based on how that solution was reached. Skilled conflict management minimizes these impacts by choosing the right approach at the right time.