In this 21st century, society has changed itself complete from its past perspectives due to diversity of human thoughts. This diversity often results in conflicts which require proper skills with a proper knowledge of procedure to solve these conflicts. Conflicts are the common part of our day to day activities and every sector of life is not escaped from it, conflicts are matter of daily routine both in public or private organizations even the hospitals and impacting the performance of individuals. The study was on conflict management styles and employee performance in public hospitals in Karachi because of the alarming rate of industrial actions taking place. The main objective of study is to determine the effect of conflict management on the performance of employees and also the impact of conflict management style on the output of employees. The study was guided by following theories; expectancy theory, human relations theory and the Thomas Kilmann conflict model instrument. The research design used in this study was qualitative research. The target population of 10 was from the two Public Hospitals in Karachi. The data collection instrument was an in dept. interviews based on the objectives of the study. The data collected was primary data. Data was analyzed using the qualitative research approach of Thematic Analysis. The findings of the study showed that the public hospitals mainly use compromising style and accommodating style because of their advantageous side. The findings revealed integrating style and dominating style as the styles hardly used among the respondents. The findings indicated that the compromising style and accommodating style have a significant relationship with employee performance in the work environment and employee performance is affected when conflicts are not managed. From the findings, research concluded that that hospital organizations in Karachi can use accommodating and compromising style of conflicts management. The research also highlight that there is a need of conflicts awareness in employees of hospitals because it is mandatory for them to have a proper knowledge regarding conflicts solution.