The paper discussed the functioning of the organization and the management of conflicts within it. Each organization chooses a particular structure depending on the activities it engages in. Those organizations that have a high degree of organization achieve better success compared to those less organized. The paper explains in detail the structures of organizations and their specifics. In order for an organization to be successful, each step needs to be carefully planned. In addition to planning, decision making plays a significant role in choosing the right solution for a particular problem. There is no organization in which there is no conflict. The only difference is the way conflicts are managed by different organizations. On the example of Atlantic Trade d.o.o. Zagreb presented the management of conflicts in the organization, emphasizing the importance of ethical codes in resolving conflicts, and the importance of managers who play a major role in balancing and objectively reviewing each item that led to the cause of conflict, as well as finding solutions that will be optimal for conflict sides.