| As a social phenomenon, conflict exists in enterprise generally. It is a kind of human interrelation. Human is the activest factor in enterprise and the result of conflict management can affect the initiative of the staff, then influence the benefit of project and the realization of organization`s aim. So the conflict management is a problem that must be discussed during business management.Scholars at all times and in all over the world have different understanding about the origin and function of conflict and defined it from diverse point of view. With the development of society, scholars` understanding about the function of conflict also go through a developed process.During the study on conflict management, acdemician made great efforts on　study the conflict mode, the conflict management mode and measures and have got great accomplishment, which are very important in recognizing and managing conflicts to enterprise. However, the formers` researching on conflict and conflict management only focus on determining the nature of them. Although they used the game method, the study is still limited to analysis the reaction mode and mechanism. Because of the limitation of the method and the point of view ,to nowadays, there are still some problem difficult to be resolved. They are, 1.how to choose the manners of conflict management in vary conditions? 2. how to define the moderate conflict level in orgnization? 3.how to blaze constructive conflict when its level is too low? These are all efficiency problem about conflict management mode or system.Conflict management is the issue come from the field of management, but its effect decides the benefit of the business. Moreover, in all aims enterprises persue, administrating by system is the highest bourn. After my practice in enterprise and investigation in other districtes, I confirmed my thought that managers should manage conflict by institution to improving the efficiency. But managing conflict by institution to improving the efficiency is the level that should obtain. But the efficiency of conflict management is seldom pay attention to, so it is still a blank in the field. the application of basic theory of new institutional economics in the law and economics offer a new thought to me, that is using a method similar to the economics one which was used to analysis the source collocation to research the conflict management.I believe that the system is not only the result of a game, but also the rule of the game, the rule prescribe the original source distribution. But the distribution isn`t necessery the most effective one, and when low efficiency appear, conflict appear. Conflict is a game that redistribut the source. when a new equilibrium come out ,the new source distributed pattern forms and the new system come into being.This article can be divided into three parts.1.Preface.This part mainly recapitulate the definition of conflict, the result and method of researching conflict management, which have been developed by predecessor. Moreover, it also points out the lack and regret about them and build up the thought and study way of this article on the basis.2.Institutional analysis of conflict management. It is the main part of this article. The article classify the institutions of conflict management into three sorts, individual-behavioural institutions, contract institutions and coordinate institutions. Moreover, it analyzes the three kind of institutions with new eyes and methods seldom be cared by formers. The most distinctive idea about analysis method is to introduce the methods of new institutional economics into the researching of conflict management. Firstly, I analyze these kinds of system`s efficiency by use the transaction cost theory and bring forward a new thought on the system efficiency analysis, which is a available attempt on how to select conflict management manners. Secondly, I analyze the moderate conflict level by using the cost-income method, bring forward the new thought that by applying the concept MR and MC...
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