What should be a team leader's degree of involvement in settling conflicts within the team?

I think, team leader should balance conflict and makes it healthy.It is so natural that conflict will be arise because of people's differences but conflict is not a bad thing.It brings success by a healthy competition.Team leader have to find out the source of conflict then discuss it with team members.Leader have to establish a strong goal in every member's mind that is "success of entire team" which helps to resolve conflict.

1. How serious is the conflict ? Does affect many people, projects etc ?

2. How functional / dysfunctional is the team or the individuals involved ?

3. As Farah has very excellently observed, how strongly are individuals motivated towards the team's success ?

4. How well respected is said leader ?

Farah Naz UIU   totally right .......