582This article describes how observational methods were used to ascertain the effect of conflict on the performance of software engineering (SE) teams during the important feasibility, requirements analysis, and design phases of software projects, and the subsequent development of social and conflict interaction protocols to allow researchers to record conflict episodes when they occurred. Three teams consisting of master of science (MSc) students at the University of Sheffield were observed as they worked through the feasibility, analysis, and design phases of the SE life cycle. Each occurrence of conflict between team members was recorded, as well as the form and intensity of the conflict.There were several reasons for pursuing this line of research. The first is that commercial SE is a team-based activity, and, as in other related contexts, success is dependent to a large extent on whether or not team members have succeeded in establishing a cooperative environment (Cohen & Bailey, 1997). Additionally, several scholars have opined that the social factors of SE are potentially more important than the technical aspects (Curtis, 1991(Curtis, , 1998Curtis, Krasner, & Iscoe, 1988;Curtis, Walz, & Elam, 1993). This view is reinforced by other scholars who hold the belief that future SE research should focus more on human factors (Crowston & Kammerer, 1998a, 1998bPetre, Budgen, & Scholtz, 2004). The rationale behind this argument is that further exploration into these areas will play an important role in the maturation of SE as an academic discipline.The importance of teamwork in SE has long been recognized at a pedagogic level. It is now common for SE degree programs to include one or more team projects. These projects should enable team members to develop what has been termed positive interdependence (Johnson & Johnson, 1978), which theoretically should result in enhanced short-term memory, long-term retention, greater understanding of course material, and critical thinking and problem-solving skills.Although there are numerous advantages to working in teams, there are also several problems that one needs to be aware of (Harris & Looney, 1999). Harris and Looney stated that one of the main problems is that a team approach to a project usually generates a greater degree of conflict than many people are accustomed to. This conflict can be a serious impediment to performance.This situation raises the question of what the exact nature of conflict actually is. Some (Amason, 1996;Galinsky, 2002;Jehn, 1995) have argued that conflict is an inevitable and pervasive aspect of organizational life. People are said to be in conflict when the actions of one person are interfering, obstructing, or in some other way making another's behavior less effective (Tjosvold, 1997).Previous team-process research has distinguished three separate forms of conflict: task (or cognitive), relationship (or affective) (Amason, 1996;Amason & Schweiger, 1994;Pinkley, 1990), and process (Jehn, 1995). These forms of conflict have been found to have ...