As a manager, you should always see conflicts as an opportunity and make use of them by discussing the conflict in such a way that it produces a win-win situation for both you and the employee. Read about some techniques that will help you deal positively with conflict.

1. Listen actively during conflict resolution meetings
During a conflict resolution meeting listen attentively and regularly repeat in your own words what you think you have understood. Of course, the idea is not simply to repeat what the other person says, but rather that you should say what you have understood in your own words. That prevents both sides talking at cross purposes.
Useful are statements such as "So, you believe that ...." or "If I have understood you correctly, then you want ...".
 
2. Ask questions
If you are really interested in the other person's views, you want to understand what the person really means. This is the only way that you can discuss the conflict constructively. So, always ask if something is not clear to you. To get a better understanding, ask questions such as "What do you mean by ..." or "Could you explain that in more detail?"
 
3. Summarize what you employee has said
If what the other person has said is very long-winded or complicated, you can summarize it and get to the point: "May I summarize what you said …"
 
4. Compare the different interests
In conflict resolution meetings it is especially important to clearly identify the different interests of the conflicting parties. This is the only way to find a win-win solution.
Practical hint: In conflict resolution meetings work with a flip chart, pin board, or other visualization tools.

5. Visualize the situation using metaphors and examples
For many people it is helpful if statements or connections are explained with metaphors or examples. In the conflict resolution meeting try to explain a statement with the help of a specific example or tell a story that comes to mind.
 
6. Offer food for thought
During the discussion, ask questions that allow all those involved to think outside the current situation. Questions such as: "What has to happen so that we can resolve this conflict?", "What would happen if ...?" or "What would the ideal situation be?" Questions such as this often broaden the horizon of everyone concerned and the discussion can be continued on a different, more constructive level.

7. Clearly highlight unanswered questions in the conflict resolution meeting
Clearly highlight issues that cannot be clarified or for which no satisfactory answer can be found at that time. Write these down on a flip chart or on a sheet of paper so that everyone can see that they have not been forgotten during the meeting.
 
Source
Verlag für die Deutsche Wirtschaft AG
http://www.vorgesetzter.de