The newly hired CEO of an advertising agency noticed that employees were constantly arguing and debating with each other over design and ad copy.This cantankerous behavior was quite different from the more reserved and polite interactions that occurred in the CEO's previous organization in the consumer products industry.To correct this problem, the CEO established a new motto of 'Serving Clients in Harmony' and actively discouraged employees from the spirited debates that occurred in the past.Some key staff members left the company over the next few months saying that the company was losing its creative edge.However, the CEO was able to bring in new employees who were more discreet and subtle in their discussions with colleagues.Discuss the merits of the CEO's actions.

The first issue that students should consider is whether the previous conflicts were constructive or relationship based.Some key staff members left the company soon after, saying that the company was losing its creative edge.This suggests that the conflict was constructive and not relationship based.In other words, the design employees were engaging more in constructive conflict than in destructive conflict.
When answering this question, students should also explain that conflict management does not always involve reducing conflict, as was done by this CEO.The answer should explain that constructive conflict is beneficial.It helps people to recognize problems, to identify a variety of solutions and to better understand the issues involved.It enables people to offer new perspectives of reality.