The Impact of Conflict on Economic Security of the EnterPrise

Subject matter / theme. A research of the conflict impact on the economic security of the enterprise is presented. The conflict arisen in the enterprise can disengage the employees’ activities which results in hindering the successful work and is reflected in all areas of the enterprise operation. For this reason, a favorable social and psychological atmosphere is essential.Purposes / objectives. The purpose of this article is the research of the conflict impact on the economic security of the enterprise.To achieve the purpose, it is necessary to meet the objectives:1.             To define the classification of conflicts in the enterprise depending on the conflict subject or the scope of its occurrence. To clarify the notion of contradiction.2.             To identify the internal threats to the financial and economic security of the enterprise, the emergence of which can be provoked by an unfavorable socio-psychological situation in the team, the growth of moral tension and the unsettled in proper time conflict in the team of the enterprise.3.             To suggest a conceptual scheme of the stages for forming an effective system of employee motivation at the enterprise.Methodology. The research uses economic security analysis with the use of conflictology theory; the economic and statistical methods of analysis, institutional approach and dialectical method of scientific cognition were applied at studying the role and impact of the conflict on the economic security of an enterprise.Results. There is no society with no contradictions, no conflicts, and there is no society with no certain level of security. Economic security is determined by the potential for conflict. With a low conflict level in the society and a higher security level, the external threats can be adequately neutralized by the system at other conditions being equal.The socio-economic conflict is a confrontation between the subjects of economic activity, their values and socio-economic interests.The notion of contradiction is broader in its content than the notion of an economic conflict. The economic conflict arises when people (as members of various social groups) realize the existing contradictions in their economic interests. The contradictions are objective and general; and the conflict is objective-subjective and specific.Conclusions / significance. Conflict in an enterprise is a specific kind of social conflict expressed in a clash of two or more opposing positions that concern both personal and business interests. Any conflict can be both creative and useful for the enterprise activity, as well as destructive and undesirable. Which consequences exactly will arise as a result of the conflict for the enterprise, mostly depends on the behavior style of the enterprise management in relation to the arisen conflict. Since the conflict affects all areas of activity, and conductors between the socio-psychological situation and the enterprise performance are employees of the enterprise, the presence of social tension in the work collective directly affects the economic security of the enterprise. In order to successfully resolve the conflict, any clash of interests should be considered as an opportunity for the emergence of new alternatives.