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In most organizations, management generally tries to encourage their personnel to bring disputes to the notice of supervisory staff to mediate and resolve. Unfortunately, this usually doesn't happen until the conflict has reached a near critical stage.
The main reason is because most front line workers will not report interpersonal conflicts. They remain silent largely because they believe it would damage their reputations with their fellow co-workers and they would be labeled as squealers.
On the other hand, no one enjoys working in a workplace fraught with friction. The uninvolved personnel would like to see the issues resolved, but often remain silent. The reason is because they aren't trained on how to mediate disputes. If you were to take a poll of your workplace, it is likely you would learn that most employees prefer to resolve such disputes in-house, without management input.
The smartest way to deal with this problem is to be proactive. This means you should act before a problem arises, and not just react after the damage has left its impact. How could this be done?
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