Conflict and Negotiation

Khondoker Mokaddem Hossain

Ex-Pro Vice Chancellor, Bangladesh open university
Founder Director and Professor
Institute of Disaster Management and Vulnerability
Studies
University of Dhaka
Email: [email protected]

© 2009 Prentice-Hall Inc. All rights reserved. 15-1

 Conflict
 External and internal forces create conflict for
employees within the workplace.
 With a struggling economy and ever increasing prices
for gas, food, utilities, and other commodities, these
external stresses place conflict on employees' home
lives.
 Employees bring those external conflicts to work.
 These external stresses also place tough economic
conditions on employers.
 Employees feel employer workplace burdens too.

15-2
 Fear, gossip and rumors of reductions in the
workforce,
 downsizing due to changing technology and foreign
trade,
 closures, reductions in hours worked with the loss of
benefits, and loss of business creates unrest and
instability for both employers and employees.
 Even those employees who are lucky enough to keep
their jobs during an economic downturn are tasked
with heavy workloads to make up for the reductions in
the workforce and scarce resources.
 Companies are forced to do more with less.

© 2009 Prentice-Hall Inc. All rights reserved. 15-3

 Conflict and negotiation are aspects of running a
business.
 Business owners face conflict with partners, managers,
employees and the general public.
 Negotiation is often necessary to create an amicable
solution for all parties involved in the conflict.
 Many small or home-based businesses avoid internal
conflict and negotiation because owners are primarily
responsible for completing business functions.
 However, external conflict and negotiation occur for
most companies in the business environment

© 2009 Prentice-Hall Inc. All rights reserved. 15-4

 Facts related to Conflict
 Facts
 Conflict often occurs when individuals have different ideas, beliefs
or theories regarding business operations.
 Business owners may also find conflict when bargaining with
individuals or other businesses.
 Acquiring economic resources or other business assets often
involves bargaining.
 Negotiation is the process of discussing each individual’s
position about a topic and attempting to reach a solution that
benefits both parties.
 Conflict and negotiation are usually more prevalent in larger
business organizations since more individuals are involved in the
company’s operations
15-5
 Features of Conflict and Negotiation
 Conflict and negotiation may result in several options
being created to resolve difficult situations.
 Business owners might follow a few steps when
processing discussion options and solutions:
 identifying the problem, analyzing the issue, creating
different strategies or approaches, and acting on
outcomes or ideas.
 These steps provide a logical process to follow when
solving conflict and negotiation issues

© 15-6
 Function
 Business owners can use conflict negotiation to create a more
favorable outcome when dealing with a stronger party.
 Small businesses often have lower purchasing power or
negotiating positions than larger organizations.
 Lower purchasing power often drives business owners to create
the best situations for saving their company money while
improving product quality and production output.
 Business owners ought to use negotiation to create relationships
that provide their company with a competitive advantage over
other businesses in the economic marketplace.

© 15-7
 Considerations
 Business owners should develop their BATNA--"best
alternative to negotiated agreement."
 Many business owners realize they cannot obtain all
their requests during a conflict and negotiation process.
 Having a best alternative to negotiated agreement on
hand ensures business owners receive as many
concessions as possible during the negotiation process.
 However, these alternatives might create more conflict
if they continually require the other party to give up
more benefits

© 2009 Prentice-Hall Inc. All rights reserved. 15-8

 Warning
 The conflict and negotiation process can result in one
party engaging in unethical behavior.
 Small business owners may get caught up in this
situation if they have little experience in conflict and
negotiation.
 They must have the resolve to walk away from
conflicts or negotiations that will result in unfavorable
conditions for their company.
 Refusing to negotiate or reconcile conflicts can be
difficult for small businesses looking to improve or
advance business operations.

© 2009 Prentice-Hall Inc. All rights reserved. 15-9

 Concept of Conflict
 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
– 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

© 2009 Prentice-Hall Inc. All rights reserved. 15-10

 Goal conflict
 Goal conflict is an important part of classic and contemporary
theories of motivation (Michael J. Boudreaux, Daniel J. Ozer
2012). 
 Goals drive our behavior. One thing that makes it difficult to
achieve our goals is that sometimes theyconflict.
 Although goal conflict is an important part of classic and
contemporary theories of motivation, the correlates of goal conflict
are not well understood.
 We identify and distinguish conflicting and facilitating goals, and
assess relations with goal attainment and psychological well-being
in a short-term,
 prospective study design. Results from multi-level models
demonstrated that individuals with greater conflict were less
successful in attaining their goals, but the goals they failed attain
were not necessarily the ones in conflict
© 2009 Prentice-Hall Inc. All rights reserved. 15-11
  People who experienced goal conflict tended to be ruminative and
hesitant, and reported greater levels of negative affect and
increases in depression, anxiety, and psychosomatization.
 People who experienced goal facilitation reported greater levels
of positive affect, life satisfaction, and successful goal attainment.
 This study identifies several implications of holding conflicting
and facilitating goals, but also points to a theoretical inconsistency
pertaining to goal conflict.
 Namely, conflicting goals may not be inherently less attainable
than nonconflicting goals.
 We argue that distinguishing between goal- and person-level
factors is essential for understanding goal striving.

© 2009 Prentice-Hall Inc. All rights reserved. 15-12

 Role Conflict
 A situation in which a person is expected to play two
incompatible roles. For example, a boss will suffer role
conflict if forced to fire an employee who is also a close
friend.
 Role conflict can be something that can be for either a
short period of time, or a long period of time, and it can
also be connected to situational experiences.
 Intra-role conflict occurs when the demands are within
a single domain of life, such as on the job.

© 2009 Prentice-Hall Inc. All rights reserved. 15-13

 A role conflict is when a person is expected to fulfill the
duties of two contradictory positions.
 In Karim's case, for example, he is both a dad and a
coach.
 As a father, he wants to see his son participate in the
football game no matter how good or bad his skills are.
 As a coach, he has to do what's best for the team.
 This means he must put in players that are talented
and will help the team win the game.

© 2009 Prentice-Hall Inc. All rights reserved. 15-14

  Types of Role Conflicts
 There are two types of role conflicts.
 The first is known as intra-role conflict, which is when
there are incompatible components within the same
role.
 Let's use Mrs. X, as an example. Mrs. X is a school
teacher who wants to be liked by her students.
 She's noticed that when she has a good rapport with
her students they participate more in class and trust
her.
 This makes teaching much more fun and interesting for
her.

© 2009 Prentice-Hall Inc. All rights reserved. 15-15

Unfortunately, since she is the teacher she also has to incorporate
discipline and rules into her classroom.
Without them, the students would never take her seriously or hand
in any of their work. In hisr role as a teacher, Mrs. X always has to
walk the line between being friendly and open as well as
authoritative.
The second type is known as inter-role conflict, which is when
the expectations from two separate roles clash. Let's use Mrs. X
as an example again. We already know that Mrs. X works full time
as a teacher, but she also is a mother to four children

© 2009 Prentice-Hall Inc. All rights reserved. 15-16

 Transitions in Conflict Thought
 Traditional View of Conflict
– The belief that all conflict is harmful and must be avoided
– Prevalent view in the 1930s-1940s
 Conflict resulted from:
– Poor communication
– Lack of openness
– Failure to respond to employee needs

© 2009 Prentice-Hall Inc. All rights reserved. 15-17

 Continued Transitions in Conflict Thought
 Human Relations View of Conflict
– The belief that conflict is a natural and inevitable outcome in
any group
– Prevalent from the late 1940s through mid-1970s
 Interactionist View of Conflict
– The belief that conflict is not only a positive force in a group
but that it is absolutely necessary for a group to perform
effectively
– Current view

© 2009 Prentice-Hall Inc. All rights reserved. 15-18

 Forms of Interactionist Conflict

© 2009 Prentice-Hall Inc. All rights reserved. 15-19

 Types of Interactionist Conflict
 Task Conflict
– Conflicts over content and goals of the work
– Low-to-moderate levels of this type are FUNCTIONAL
 Relationship Conflict
– Conflict based on interpersonal relationships
– Almost always DYSFUNCTIONAL
 Process Conflict
– Conflict over how work gets done
– Low levels of this type are FUNCTIONAL

© 2009 Prentice-Hall Inc. All rights reserved. 15-20

 The Conflict Process
 We will focus on each step in a moment…

E X H I B I T 15-1

© 2009 Prentice-Hall Inc. All rights reserved. 15-21

 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
© 2009 Prentice-Hall Inc. All rights reserved. 15-22
 Stage II: Cognition and Personalization
 Important stage for two reasons:
1. Conflict is defined
• Perceived Conflict
– Awareness by one or more parties of the existence of
conditions that create opportunities for conflict to arise

2. Emotions are expressed that have a strong impact on the

eventual outcome
• Felt Conflict
– Emotional involvement in a conflict creating anxiety,
tenseness, frustration, or hostility

© 2009 Prentice-Hall Inc. All rights reserved. 15-23

 Stage III: Intentions
 Intentions
– Decisions to act in a given way
– Note: behavior does not always accurate reflect intent
 Dimensions of conflict-handling intentions:
– Cooperativeness
• Attempting to satisfy
the other party’s
concerns
– Assertiveness
• Attempting to satisfy
one’s own concerns

Source: K. Thomas, “Conflict and Negotiation Processes in Organizations,” in M.D. Dunnette 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.

E X H I B I T 15-2

© 2009 Prentice-Hall Inc. All rights reserved. 15-24

 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 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.

E X H I B I T 15-3

© 2009 Prentice-Hall Inc. All rights reserved. 15-25

 Conflict Resolution Techniques
– Problem solving – Bringing in outsiders
– Superordinate goals – Restructuring the
– Expansion of resources organization
– Avoidance – Appointing a devil’s
– advocate
Smoothing
– Compromise
– Authoritative command
– Altering the human
variable
– Altering the structural
variables
– Communication
Source: Based on S. P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp.
59–89

E X H I B I T 15-4

© 2009 Prentice-Hall Inc. All rights reserved. 15-26

 Stage V: Outcomes
 Functional  Dysfunctional
– Increased group – Development of discontent
performance
– Reduced group
– Improved quality of effectiveness
decisions
– Retarded communication
– Stimulation of creativity
and innovation – Reduced group
cohesiveness
– Encouragement of interest
and curiosity – Infighting among group
members overcomes group
– Provision of a medium for goals
problem-solving
 Creating Functional
– Creation of an environment
for self-evaluation and Conflict
change – Reward dissent and punish
conflict avoiders

© 2009 Prentice-Hall Inc. All rights reserved. 15-27

 Negotiation
 Negotiation (Bargaining)
– A process in which two or more parties exchange goods or
services and attempt to agree on the exchange rate for them
 Two General Approaches:
– 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

© 2009 Prentice-Hall Inc. All rights reserved. 15-28

 Distributive versus Integrative Bargaining
Bargaining Characteristic Distributive
Integrative Bargaining
Bargaining
Goal Get all the pie you can Expand the pie
Motivation Win-Lose Win-Win
Focus Positions Interests
Information Sharing Low High
Duration of Relationships Short-Term Long-Term
Source: Based on R. J. Lewicki and J. A.
Litterer, Negotiation (Homewood, IL: Irwin,
1985), p. 280.
Integrative

Distributive

E X H I B I T 15-5

© 2009 Prentice-Hall Inc. All rights reserved. 15-29

 Third-Party Negotiations
 Four Basic Third-Party Roles
– 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.
– 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

© 2009 Prentice-Hall Inc. All rights reserved. 15-30

 Performance & Conflict Relationship
 Conflict can be
constructive or
destructive
 Reduce excessive conflict
by using:
– Competition
– Collaboration
– Avoidance
– Accommodation
– Compromise
 Integrative negotiation is
a better long-term
method
E X H I B I T 15-8

© 2009 Prentice-Hall Inc. All rights reserved. 15-31