The conflict experienced by the owner and CEO of the small machine and tool company is called intergroup conflict.  As discussed in our reading this week, intergroup conflict occurs when there is conflict among work teams or departments (Kreitner & Kinicki, 2013, p. 374).  Past relations have been harmonious with labor relations however; the economic downturn and subsequent layoff discussions have now caused volatile relations.  The recommended action to take when intergroup conflict increases is to eliminate specific adverse interactions between groups (Kreitner & Kinicki, 2013, p. 376).  Secondly, team building must take place to reduce tensions.  Management must remember to foster positive relations during these discussions and display empathy and compassion as further suggested in our reading. Management and labor relations must find ways to work together.  Working together will reestablish trust and will set the stage for future negotiations.   In the scenario experienced by the small machine and tool company, it is imperative for management and labor relations to find ways to eliminate the barriers of effective communication.  Based on layoff discussions, there are strong personal barriers that both sides must overcome.  Semantic barriers are also plaguing communication efforts since arguing, name-calling and profanity have manifested as a result of layoff discussions. To mitigate these challenges, both sides must focus on interpersonal communication.  As discussed in our reading, ”researchers have found that good communication skills will lead to more innovative decisions.” (Kreitner & Kinicki, 2013, p. 403).  Lastly, the styles of communication must be monitored when both sides sit down to discuss future endeavors.  Both parties must stay away from communication deemed aggressive.  Aggressive communication is observable in both verbal and non-verbal communication.   Evidence-based decision making would help to resolve this case through transparency.  Evidence-based decision making reduces the ambiguity of an argument by conscientiously using the best data when making decisions (Kreitner & Kinicki, 2013, p. 360).  Notable principles used in evidence-based decision making include: sticking to the facts, viewing the organization from an outside perspective and getting everyone involved in the decision-making process; not just the senior executives.   References: Kreitner, R., & Kinicki, A. (Eds.). (2013). Intergroup conflict. (10 ed., pp. 374-376). Retrieved from GCU Library