Conflict between individuals or groups is natural in industrial society. Need and urge to resolve conflict is equally natural. In industrial management managers have always been trying to resolve conflict among the disputants in various ways in order to provide a stable and peaceful industrial life. In the knowledge-driven economy, conflicts have been considered as a strategy to increase organizational performance. Recently it has become a buring issue of management literature. Conflict is an unavoidable component of human activity (Brahnam, Margavio, Hignite, Barrier, & Chin, 2005; Gerami, 2009; Meassman & Mikesell, 2000) that may be viewed as a situation in which the concerns of two or more individuals appear to be incompatible (Darling & Fogliasso, 1999; Pruitt & Dan Rubia, 1986; Putman & Dan Poole, 1987; Rhoades, 1999; Thomas, 1976). It tends to occur when the behavior of one person is interfering or obstructing the actions of another (Deutsch, 1973; Henry, 2009; Rahim, 2002: Sander, 2009). More broadly, conflict is an interactive process manifested in incompatibility, disagreement, or dissonance within or between social entities i.e. individuals, groups, organizations etc. (Rahim, 2002, Sander, 2009; Thomas, 1992). Within organizations, conflicts are inevitable, and arise in case of disagreements between