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In my view when a conflict arise by a team member it is better to continue a discussion in private rather in front of a group. It is because it will give him a freedom to discuss his/her problem to Team Manager or other higher Authority very freely. Take him / her to a private or a conference room listen to the problem and then come to the final conclusion whether to continue him/her in the same team or to other team in which he is comfortable with. The other option is that he/she has to give time to adjust in the team rather than increasing the conflict.
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