The empirical study analyzes the nature, causes, dynamics, and resolution process of workplace conflict arising within the FMCG manufacturing industry located in Greater Noida, Uttar Pradesh, India. Quantitative data was collected through a sample size of 210 respondents. The respondents include shop floor employees (60%), shift managers (28%), and human resource managers (12%). These respondents were from six most prominent FMCG manufacturing companies. The data was collected through standardized questionnaires using 5-point Likert scale with constructs such as communication gap, target workload pressure, employment environment, effectiveness of the process of grievance redressal, and relation between supervisors and subordinates. High reliability of the measures was achieved through the use of Cronbach's Alpha (α = 0.84). The descriptive analysis shows that high production targets along with workload pressure (Mean = 4.22) and hierarchical barriers to communication (Mean = 4.05) are the main causative factors of operational friction. Inferential analysis through multiple linear regression analysis indicates that 58% (R2 = 0.58, Adjusted R2 = 0.57, F = 31.4, p < 0.001) of the total variation in operational performance and satisfaction of workers is dependent on the effectiveness of the process of conflict resolution. These include, for example, transparent communication avenues (β = 0.38, p < 0.001) and formalized grievances management procedures (β = 0.31, p < 0.001). The research emphasizes that there is a heavy dependency on informal and ad-hoc processes and procedures. This implies that there is an absolute need for training of managers on soft skills and implementation of grievance committees as well as shift handovers on a daily basis.