SummaryAlthough still widely assumed to be disruptive, conflict, when managed appropriately, has been found to make teamwork within and between organizations effective. However, organizational members often have competitive relationships and orientations to dealing with conflict that lead to conflict avoidance and escalation, approaches that sabotage decision-making and relational bonds. Conflict researchers have contributed to the bad reputation of conflict by confounding conflict and competition and suggesting that the kind of conflict, rather than its management, determines its outcomes. Studies in the West and East indicate that by developing cooperative relationships and the skills to discuss diverse views open-mindedly, organizations can empower managers and employees to use conflict to probe problems, create innovative solutions, learn from their experience, and enliven their relationships.

The study empirically links conflict management literature with research on efficacy and organizational teams. Sixty-one self-managing teams with 489 employees were recruited from the production department of a leading electronic manufacturer. Structural equation analysis supports the model that a cooperative instead of competitive approach to conflict leads to conflict efficacy that in turn results in effective performance as measured by managers. Findings suggest how organizational teams can be prepared to make use of their autonomy to deal with problems and conflicts so that they are productive. The authors thank &off Maruyama, David W. Johnson, and other members of Steve Alper's dissertation committee for their support. They appreciate the financial support of the Research Grants Council of Hong Kong, RGC grant project No: U3890/96H to the second author, and thank Eleanor MacDonald and Michelle Berner for their valuable contributions. Correspondence and requests for reprints should be addressed to Dean Tjosvold, Department of Management, Lingnan University, Then Mun, Hong Kong; tjosvold@ln.edu.hk. COPYRIGHT 0 2000 PERSONNEL PSYCHOLOGY. INC. 625 626 PERSONNEL PSYCHOLOGYdevelop efficacy that they can deal with their conflicts; this efficacy in turn results in effective team performance. Conflict in Organizational TeamsAlthough organizational research on groups and conflict have proceeded somewhat independently (Hackman

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 Top management teams may be critical for developing organizations that can keep abreast of marketplace changes and innovate. Several streams of strategy research have argued that conflict and diversity promote top management team effectiveness. This study proposes that how top management teams manage conflict can greatly contribute to their effective leadership of organizational innovation. A total of 378 executives from 105 organizations in China completed measures of conflict management (cooperative, competitive, and avoiding) and productive conflict (an outcome of conflict). Separately, 105 CEOs from these firms indicated their team's effectiveness and their organization's innovativeness. Results support the theory that conflict management can contribute to making top management teams effective. Structural equation analysis suggests that cooperative conflict management promotes productive conflict and top management team effectiveness that in turn result in organizational innovation. These results, coupled with previous research, were interpreted as suggesting that cooperative conflict management is an important contributor to effective top management teams even in the collectivist culture of China.

Researchers have used various concepts to understand the conditions and dynamics by which conflict can be managed constructively. This review proposes that the variety of terms obscures consistent findings that open-minded discussions in which protagonists freely express their own views, listen and understand opposing ones, and then integrate them promote constructive conflict. Studies from several traditions also suggest that mutual benefit relationships are critical antecedents for open-minded discussion. This integration of research findings identifies the skills and relationships that can help managers and employees deal with their increasingly complex conflicts. Research is needed to deepen our understanding of the dynamics of open-minded discussion and the conditions that promote it as well as when open-mindedness is inappropriate. Training studies can test and show how the model of open-minded discussion supported by mutual benefit relationships can be applied in cross-cultural and other challenging settings.

Although mistakes may have considerable potential for learning, previous research has emphasized that organizational members are often defensive when their mistakes are pointed out and will even continue with their present course of action despite growing costs. Recent research has shown that team‐level variables, such as psychological safety and shared mental model, can help overcome barriers to learning from mistakes. Structural equation analyses on teams working in a sample of organizations in Shanghai, China, suggested that teams were able to learn from their mistakes to the extent that they took a problem solving orientation. This orientation in turn was based on developing cooperative but not competitive goals within the team. Although competitive and independent goals induce blaming, blaming itself was not significantly related to learning. Blaming, especially when conducted openly, may hold individual team members accountable as well as provoke defensiveness. Findings empirically link the theory of cooperation and competition with the organizational learning literature. Results suggest that cooperative goals and problem solving promote learning from mistakes.

Teamwork and coordination of expertise among team members with different backgrounds are increasingly recognized as important for team effectiveness. Recently, researchers have examined how team members rely on transactive memory system (TMS; D. M. Wegner, 1987) to share their distributed knowledge and expertise. To establish the ecological validity and generality of TMS research findings, this study sampled 104 work teams from a variety of organizational settings in China and examined the relationships between team characteristics, TMS, and team performance. The results suggest that task interdependence, cooperative goal interdependence, and support for innovation are positively related to work teams' TMS and that TMS is related to team performance; moreover, structural equation analysis indicates that TMS mediates the team characteristics-performance links. Findings have implications both for team leaders to manage their work teams effectively and for team members to improve their team performance.

Developing participative leadership may be particularly challenging when managers are working cross-culturally and in China. One hundred and sixty-three Chinese employees from various industries in mainland China were surveyed about their relationships and the effectiveness of their participation with American and Chinese managers. Results, including structural equation analyses, support the hypotheses that cooperative, but not competitive or independent, goals helped Chinese employees and their foreign and Chinese managers strengthen their quality relationships as measured by supervisor-subordinate guanxi and leader-membership exchange; quality relationships in turn enhanced effective participative leadership as measured by the opportunity for joint decision-making and the open-minded discussion of opposing views (constructive controversy). Results suggest that cooperative goals and the Chinese value of guanxi may be important for overcoming obstacles and developing participative leadership within and across cultural boundaries. Copyright Blackwell Publishing Ltd 2006.