Effective leaders manage conflict constructively by encouraging open, respectful dialogue between employees. This allows issues to be addressed directly, builds trust, and strengthens team cohesion. Constructive conflict management focuses on resolution and collaboration rather than suppression or avoidance.

Option A: Incorrect—restricting conversations can allow conflicts to grow unresolved.

Option B: Incorrect—top-down control may suppress input and damage morale.

Option D: Incorrect—ignoring team dynamics undermines long-term effectiveness.

Thus, the best approach is fostering respectful dialogue between employees.