DPB5033
Chapter 6
Conflict and Negotiation
Prepared by:
Asmiza Bt. Osman
Commerce Department
1
AFTER STUDYING THIS CHAPTER AND
OBJECTIVES
LISTENING TO MY LECTUER,I HOPE THAT
YOU WILL BE ABLE TO:
1. Define conflict
2. Discuss transition in conflict thought
3. Explain conflict process
LEARNING
4. Define negotiation
5. Explain approach to negotiation (Bargaining
strategies)
a) Distributive bargaining
b) Integrative bargaining
6. Identify negotiation process
7. Argue issues in negotiation
Define
negotiation
Define Distributive
bargaining
Traditional conflict
view
Negotiation
Conflict Negotiation strategies
Transition Integrative
The Human in conflict bargaining
Relation View thought
Negotiation
The Inter-
Conflict process
actionist process
View
Conflict
Conflict Defined
– Is a process that begins when one party perceives that another party has
negatively affected, or is about to negatively affect, something that the first
party cares about.
• Is that point in an ongoing activity when an interaction “crosses over” to become
an interparty conflict.
– Encompasses a wide range of conflicts that people experience in
organizations
• Incompatibility of goals
• Differences over interpretations of facts
• Disagreements based on behavioral expectations
Functional versus Dysfunctional Conflict
Functional Conflict
Conflict that supports the goals
of the group and improves its
performance.
Dysfunctional Conflict
Conflict that hinders
group performance.
Stage I: Potential Opposition or Incompatibility
Communication
– Semantic difficulties, misunderstandings, and “noise”
Structure
– Size and specialization of jobs
– Jurisdictional clarity/ambiguity
– Member/goal incompatibility
– Leadership styles (close or participative)
– Reward systems (win-lose)
– Dependence/interdependence of groups
Personal Variables
– Differing individual value systems
– Personality types
Stage II: Cognition and Personalization
Perceived Conflict Felt Conflict
Awareness by one or more Emotional involvement in a
parties of the existence of conflict creating anxiety,
conditions that create tenseness, frustration, or
opportunities for conflict to hostility.
arise.
Conflict Definition
Negative Emotions Positive Feelings
Stage III: Intentions
Intentions
Decisions to act in a given way.
Cooperativeness:
• Attempting to satisfy the other party’s concerns.
Assertiveness:
• Attempting to satisfy one’s own concerns.
Dimensions of Conflict-Handling Intentions
Source: K. Thomas, “Conflict and Negotiation Processes in Organizations,” in M.D. Dunnette EXHIBIT
and L.M. Hough (eds.), Handbook of Industrial and Organizational Psychology, 2nd ed., vol. 3
(Palo Alto, CA: Consulting Psychologists Press, 1992), p. 668. With permission. 14–2
© 2005 Prentice Hall Inc. All rights reserved.
Stage III: Intentions (cont’d)
Competing
A desire to satisfy one’s interests, regardless of the
impact on the other party to the conflict.
Collaborating
A situation in which the parties to a conflict each
desire to satisfy fully the concerns of all parties.
Avoiding
The desire to withdraw from or suppress a conflict.
Stage III: Intentions (cont’d)
Accommodating
The willingness of one party in a conflict to place the
opponent’s interests above his or her own.
Compromising
A situation in which each party to a conflict is
willing to give up something.
Stage IV: Behavior
Conflict Management
The use of resolution and stimulation techniques to
achieve the desired level of conflict.
Conflict-Intensity Continuum
Source: Based on S.P. Robbins, Managing Organizational Conflict: A Nontraditional Approach
(Upper Saddle River, NJ: Prentice Hall, 1974), pp. 93–97; and F. Glasi, “The Process of Conflict EXHIBIT
Escalation and the Roles of Third Parties,” in G.B.J. Bomers and R. Peterson (eds.), Conflict
Management and Industrial Relations (Boston: Kluwer-Nijhoff, 1982), pp. 119–40. 14–3
© 2005 Prentice Hall Inc. All rights reserved.
Conflict Management Techniques
Conflict Resolution Techniques
• Problem solving
• Superordinate goals
• Expansion of resources
• Avoidance
• Smoothing
• Compromise
Source: Based on S. P. Robbins,
• Authoritative command Managing Organizational Conflict:
A Nontraditional Approach (Upper
Saddle River, NJ: Prentice Hall,
• Altering the human variable
1974), pp. 59–89
EXHIBIT
14–4
• Altering the structural variables © 2005 Prentice Hall Inc. All rights reserved.
Conflict Management Techniques
Conflict Resolution Techniques
• Communication
• Bringing in outsiders
• Restructuring the organization
• Appointing a devil’s advocate
EXHIBIT
Source: Based on S. P. Robbins, Managing Organizational Conflict: A Nontraditional
Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp. 59–89 14–4 (cont’d)
© 2005 Prentice Hall Inc. All rights reserved.
Stage V: Outcomes
Functional Outcomes from Conflict
– Increased group performance
– Improved quality of decisions
– Stimulation of creativity and innovation
– Encouragement of interest and curiosity
– Provision of a medium for problem-solving
– Creation of an environment for self-evaluation and change
Creating Functional Conflict
– Reward dissent and punish conflict avoiders.
Stage V: Outcomes
Dysfunctional Outcomes from Conflict
– Development of discontent
– Reduced group effectiveness
– Retarded communication
– Reduced group cohesiveness
– Infighting among group members overcomes group goals
Negotiation
Negotiation
A process in which two or more parties exchange
goods or services and attempt to agree on the
exchange rate for them.
BATNA
The Best Alternative To a
Negotiated Agreement; the
lowest acceptable value
(outcome) to an individual
for a negotiated agreement.
Bargaining Strategies
Distributive Bargaining
Negotiation that seeks to divide up a fixed amount
of resources; a win-lose situation.
Integrative Bargaining
Negotiation that seeks one or more settlements that
can create a win-win solution.
Distributive Versus Integrative Bargaining
Bargaining Distributive Integrative
Characteristic Characteristic Characteristic
Available resources Fixed amount of Variable amount of
resources to be divided resources to be divided
Primary motivations I win, you lose I win, you win
Primary interests Opposed to each other Convergent or congruent
with each other
Focus of relationships Short term Long term
Source: Based on R. J. Lewicki and J. A. Litterer, Negotiation (Homewood, IL: Irwin, 1985), p. 280.
© 2005 Prentice Hall Inc. All rights reserved.
The
Negotiation
Process
© 2005 Prentice Hall Inc. All rights reserved.
Third-Party Negotiations
Mediator
A neutral third party who facilitates a negotiated
solution by using reasoning, persuasion, and
suggestions for alternatives.
Arbitrator
A third party to a negotiation
who has the authority to
dictate an agreement.
Third-Party Negotiations (cont’d)
Conciliator
A trusted third party who provides an informal
communication link between the negotiator and the
opponent.
Consultant
An impartial third party, skilled
in conflict management, who
attempts to facilitate creative
problem solving through
communication and analysis.
