Managers used to believe that conflict in the workplace would help employees make better decisions. It was thought that moderate conflict would help employees discuss options and not make decisions too quickly. Today’s best managers know that conflict is only helpful under a very narrow set of conditions. More specifically, the conflict is work-related, does not involve personal or political matters, should be moderate, and the team members feel safe and trust each other. In other types of situations, the benefits of conflict may not outweigh the negatives, so managers should lessen the level of conflict among employees.
Source: De Drue, C. K. W. 2008. The virtue and vice of workplace conflict: Food for (pessimistic) thought. Journal of Organizational Behavior, 29, 5-18.