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I think, team leader should balance conflict and makes it healthy.It is so natural that conflict will be arise because of people's differences but conflict is not a bad thing.It brings success by a healthy competition.Team leader have to find out the source of conflict then discuss it with team members.Leader have to establish a strong goal in every member's mind that is "success of entire team" which helps to resolve conflict.
1. How serious is the conflict ? Does affect many people, projects etc ?
2. How functional / dysfunctional is the team or the individuals involved ?
3. As Farah has very excellently observed, how strongly are individuals motivated towards the team's success ?
4. How well respected is said leader ?
Farah Naz UIU totally right .......
