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Conflict occurs in many ways and is caused by any number of situations. There is no right way of dealing with conflict as a whole. Each occurrence has to be dealt with on its merits, hopefully enough time being given to you to find out what and why the conflict occurred. Speaking from experience you have to deal with conflict on a regular basis to become fully adept at discerning the best way for you to resolve issue at hand, taking one event at a time and dealing with it on its merits, not using some steadfast set of rules. I suggest that you listen attentively to all parties involved and let them feel that you are listening to them, making a person feel that you care is a big thing for them and goes a long way to building and gaining their trust. It is this trust that you will eventually rely on when giving the advice or making a decision they may not like, if they trust you they are more likely to accept what you say. Above all be fair and when giving advice or making a decision, do so with all the fact that are at hand.
Taking conflicts for learning purpose and thinking positively