There are no simple answers to the tricky business of managing conflict within organizations. Almost every conflict is a unique case with its own issues, participants, dynamics, and consequences. Still, it appears possible to differentiate between organizations that handle conflict productively and those that do not. Successful organizations view conflict in neutral terms, use conflict to energize leadership, leave conflict as stronger organizations, and develop systems for handling rather than ignoring conflict. Conflict can lead to several outcomes: deadlock, the victory of one side and defeat of the other, compromise, the integration of both points of view in a new solution, or a purposeful decision to sidestep the conflict altogether. Each of these outcomes is suitable to particular situations; none is appropriate to all; and some are more difficult to achieve than others. The characteristics that seem most positively related to an organization's ability to resolve conflict productively include having an open organizational climate; maintaining clear, accepted organizational goals and roles; establishing effective problem-solving mechanisms; keeping communication and feedback systems operating; equalizing power among internal groups; encouraging innovation; and developing cohesiveness and mutual trust among organization members. (PGD)