Research Paper (undergraduate) from the year 2008 in the subject Business economics - Business Management Corporate Governance grade: 13 University of Applied Sciences Berlin course: Soft Skills & Leadership Qualities language: English abstract: The American William Ellery Channing once said that difficulties are meant to rouse not discourage. The human spirit is to grow strong by conflict.Life is full of conflicts. Wherever choices exist there is potential for disagreement. Such differences when handled properly can result in richer more effective creative solutions and interaction. But it is difficult to consistently turn differences into opportunities. Poorly managed disagreements could lead to a psychological distance between people based on negative feelings like competition and disregard.Conflict is inevitable in business relationships as it is in social relationships. Without conflict growth is limited. Unresolved conflict can be poisonous to the productivity of a company. Conflicts that are not handled or that are handledin an inappropriate way could become expensive for a company. Thus managers spend a lot of time dealing with conflicts or its aftermath. This indicates how much resources are wasted by wrong conflict management; a huge amount of a company's workforce is kept away from daily business and productive work. The challenge is to identify conflict situations in their beginning stage and to manage them constructively to discover new opportunities and to transform conflict into a productive learning experience.Whereas chapter 1.2 describes some important conflict types and the reasons for their arising chapter 2.1 describes the first signs of conflict arising to sensitise to the roots of conflicts. By focussing on the business environment chapter 2.2 and 2.3 show ways to minimise unnecessary conflicts and to manage unavoidable conflicts. Chapter 2.4 states important soft skills managers must develop to resolve conflicts