The methods of an industry are the cause of conflict, according to the theory of cooperative industrial conflict. Workers and employers might argue about how to accomplish the goals of a factory or other place of employment as an example. This theory implies that workers and employers have the same goals and only differ in how to achieve those goals. Application of this theory suggests that differences can be resolved and the purposes of worker and employer can be aligned.
Competitive theory posits that workers and employers have distinct goals and are essentially opposed to one another. Each side does not trust the other and, consequently, may not communicate well as an example. This leads to inevitable conflict. This and associated theories, such as the Marxist theory of industrial conflict, suggest that class divisions are at the root of this type of conflict.
One theory states that there are three levels of industrial conflict: the distributive, the structural and the human-relations level. The distributive level of industrial conflict occurs because of concern about the rewards of work. Workers may not feel well-compensated or might be angry about management being overcompensated. This scenario often results in a strike and other mass expressions of dissatisfaction.
The structural level of industrial conflict involves organizations that are poorly designed or have not adapted to changing industry methods. Faulty or misleading communication often exacerbates the problem. Workers may challenge authority or question territorial responsibilities within the organization. The conflict may be expressed informally in these cases, and resentful employees may become distracted or neglect their work instead of abandoning it.
Conflict at the human relations level is attributed to social issues among workers and employers. These issues might include racial or religious identity, for example, and cross the divide between management and workers. The strain caused in the workplace may originate outside the employer's walls but affects the output of the organization anyway.