Conflict and Negotiation Management
After this talk, we would be able to:

1. Define conflict.
2. Differentiate between the traditional, human
   relations, and interactionist views of conflict.
3. Contrast task, relationship, and process conflict.
4. Outline the conflict process.
5. Describe the five conflict-handling intentions.
6. Contrast distributive and integrative bargaining.



                                                        14–1
7. Identify the five steps in the negotiating
   process.
8. Describe cultural differences in
   negotiations.




                                                14–2
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


                                                                  14–3
Transitions in Conflict Thought
Traditional View of Conflict
The belief that all conflict is harmful and must be
avoided.



Causes:
• Poor communication
• Lack of openness
• Failure to respond to
  employee needs
Transitions in Conflict Thought (cont’d)
  Human Relations View of Conflict
  The belief that conflict is a natural and inevitable
  outcome in any group.

  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.



                                                         14–5
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.


                                                           14–6
Types of Conflict
Task Conflict
Conflicts over content and
goals of the work.

Relationship Conflict
Conflict based on
interpersonal relationships.

Process Conflict
Conflict over how work gets done.

                                    14–7
The Conflict Process




                       14–8
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


                                                             14–9
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


                                                               14–10
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.


                                               14–11
Dimensions of Conflict-Handling
         Intentions




                                                E X H I B I T 14–2
         © 2005 Prentice Hall Inc. All rights
                                                             14–12
                    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.

                                                         14–13
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.




                                                          14–14
Stage IV: Behavior
Conflict Management
The use of resolution and stimulation techniques to
achieve the desired level of conflict.




                                                      14–15
Conflict-Intensity Continuum




                               14–16
Conflict Management Techniques
Conflict Resolution Techniques
• Problem solving
• Superordinate goals
• Expansion of resources
• Avoidance
• Smoothing
• Compromise
• Authoritative command
• Altering the human variable
• Altering the structural variables
                                      14–17
Conflict Management Techniques


 Conflict Resolution Techniques
 • Communication
 • Bringing in outsiders
 • Restructuring the organization
 • Appointing a devil’s advocate



                                    14–18
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.

                                                           14–19
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

                                                     14–20
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.

                                                  14–21
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.




                                                      14–22
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




                                                                             14–23
Staking Out the Bargaining Zone




                              14–24
The
Negotiatio
n Process




             14–25
Issues in Negotiation
• The Role of Personality Traits in Negotiation
   – Traits do not appear to have a significantly direct
     effect on the outcomes of either bargaining or
     negotiating processes.
• Gender Differences in Negotiations
   – Women negotiate no differently from men, although
     men apparently negotiate slightly better outcomes.
   – Men and women with similar power bases use the
     same negotiating styles.
   – Women’s attitudes toward negotiation and their
     success as negotiators are less favorable than men’s.


                                                           14–26
Why American Managers Might Have Trouble in Cross-
                  Cultural Negotiations

   Italians, Germans, and French don’t soften up executives with praise
    before they criticize. Americans do, and to many Europeans this
    seems manipulative. Israelis, accustomed to fast-paced meetings,
    have no patience for American small talk.
   British executives often complain that their U.S. counterparts chatter
    too much. Indian and Pakistani executives are used to interrupting
    one another. When Americans listen without asking for clarification or
    posing questions, Indians can feel the Americans aren’t paying
    attention.
   Americans often mix their business and personal lives. They think
    nothing, for instance, about asking a colleague a question like, “How
    was your weekend?” In many cultures such a question is seen as
    intrusive because business and private lives are totally
    compartmentalized.

                                                                        14–27
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.



                                                     14–28
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.

                                                    14–29
Conflict
                                         and Unit
                                       Performance




                                            E X H I B I T 14–9
© 2005 Prentice Hall Inc. All rights
                                                         14–30
           reserved.
Conflict-Handling Intention:
               Competition
• When quick, decisive action is vital (in
  emergencies); on important issues.
• Where unpopular actions need implementing (in
  cost cutting, enforcing unpopular rules,
  discipline).
• On issues vital to the organization’s welfare.
• When you know you’re right.
• Against people who take advantage of
  noncompetitive behavior.

                                                   14–31
Conflict-Handling Intention:
              Collaboration
• To find an integrative solution when both sets of
  concerns are too important to be compromised.
• When your objective is to learn.
• To merge insights from people with different
  perspectives.
• To gain commitment by incorporating concerns
  into a consensus.
• To work through feelings that have interfered
  with a relationship.

                                                  14–32
Conflict-Handling Intention: Avoidance
• When an issue is trivial, or more important issues are
  pressing.
• When you perceive no chance of satisfying your concerns.
• When potential disruption outweighs the benefits of
  resolution.
• To let people cool down and regain perspective.
• When gathering information supersedes immediate
  decision.
• When others can resolve the conflict effectively
• When issues seem tangential or symptomatic of other
  issues.


                                                        14–33
Conflict-Handling Intention:
              Accommodation
• When you find you’re wrong and to allow a better
  position to be heard.
• To learn, and to show your reasonableness.
• When issues are more important to others than to
  yourself and to satisfy others and maintain
  cooperation.
• To build social credits for later issues.
• To minimize loss when outmatched and losing.
• When harmony and stability are especially important.
• To allow employees to develop by learning from
  mistakes.

                                                    14–34
Conflict-Handling Intention:
               Compromise
• When goals are important but not worth the
  effort of potential disruption of more assertive
  approaches.
• When opponents with equal power are
  committed to mutually exclusive goals.
• To achieve temporary settlements to complex
  issues.
• To arrive at expedient solutions under time
  pressure.
• As a backup when collaboration or competition is
  unsuccessful.
                                               14–35

Conflict and Negotiation Presentation

  • 1.
  • 2.
    After this talk,we would be able to: 1. Define conflict. 2. Differentiate between the traditional, human relations, and interactionist views of conflict. 3. Contrast task, relationship, and process conflict. 4. Outline the conflict process. 5. Describe the five conflict-handling intentions. 6. Contrast distributive and integrative bargaining. 14–1
  • 3.
    7. Identify thefive steps in the negotiating process. 8. Describe cultural differences in negotiations. 14–2
  • 4.
    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 14–3
  • 5.
    Transitions in ConflictThought Traditional View of Conflict The belief that all conflict is harmful and must be avoided. Causes: • Poor communication • Lack of openness • Failure to respond to employee needs
  • 6.
    Transitions in ConflictThought (cont’d) Human Relations View of Conflict The belief that conflict is a natural and inevitable outcome in any group. 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. 14–5
  • 7.
    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. 14–6
  • 8.
    Types of Conflict TaskConflict Conflicts over content and goals of the work. Relationship Conflict Conflict based on interpersonal relationships. Process Conflict Conflict over how work gets done. 14–7
  • 9.
  • 10.
    Stage I: PotentialOpposition 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 14–9
  • 11.
    Stage II: Cognitionand 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 14–10
  • 12.
    Stage III: Intentions Intentions Decisionsto act in a given way. Cooperativeness: • Attempting to satisfy the other party’s concerns. Assertiveness: • Attempting to satisfy one’s own concerns. 14–11
  • 13.
    Dimensions of Conflict-Handling Intentions E X H I B I T 14–2 © 2005 Prentice Hall Inc. All rights 14–12 reserved.
  • 14.
    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. 14–13
  • 15.
    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. 14–14
  • 16.
    Stage IV: Behavior ConflictManagement The use of resolution and stimulation techniques to achieve the desired level of conflict. 14–15
  • 17.
  • 18.
    Conflict Management Techniques ConflictResolution Techniques • Problem solving • Superordinate goals • Expansion of resources • Avoidance • Smoothing • Compromise • Authoritative command • Altering the human variable • Altering the structural variables 14–17
  • 19.
    Conflict Management Techniques Conflict Resolution Techniques • Communication • Bringing in outsiders • Restructuring the organization • Appointing a devil’s advocate 14–18
  • 20.
    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. 14–19
  • 21.
    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 14–20
  • 22.
    Negotiation Negotiation A process inwhich 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. 14–21
  • 23.
    Bargaining Strategies Distributive Bargaining Negotiationthat 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. 14–22
  • 24.
    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 14–23
  • 25.
    Staking Out theBargaining Zone 14–24
  • 26.
  • 27.
    Issues in Negotiation •The Role of Personality Traits in Negotiation – Traits do not appear to have a significantly direct effect on the outcomes of either bargaining or negotiating processes. • Gender Differences in Negotiations – Women negotiate no differently from men, although men apparently negotiate slightly better outcomes. – Men and women with similar power bases use the same negotiating styles. – Women’s attitudes toward negotiation and their success as negotiators are less favorable than men’s. 14–26
  • 28.
    Why American ManagersMight Have Trouble in Cross- Cultural Negotiations  Italians, Germans, and French don’t soften up executives with praise before they criticize. Americans do, and to many Europeans this seems manipulative. Israelis, accustomed to fast-paced meetings, have no patience for American small talk.  British executives often complain that their U.S. counterparts chatter too much. Indian and Pakistani executives are used to interrupting one another. When Americans listen without asking for clarification or posing questions, Indians can feel the Americans aren’t paying attention.  Americans often mix their business and personal lives. They think nothing, for instance, about asking a colleague a question like, “How was your weekend?” In many cultures such a question is seen as intrusive because business and private lives are totally compartmentalized. 14–27
  • 29.
    Third-Party Negotiations Mediator A neutralthird 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. 14–28
  • 30.
    Third-Party Negotiations (cont’d) Conciliator Atrusted 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. 14–29
  • 31.
    Conflict and Unit Performance E X H I B I T 14–9 © 2005 Prentice Hall Inc. All rights 14–30 reserved.
  • 32.
    Conflict-Handling Intention: Competition • When quick, decisive action is vital (in emergencies); on important issues. • Where unpopular actions need implementing (in cost cutting, enforcing unpopular rules, discipline). • On issues vital to the organization’s welfare. • When you know you’re right. • Against people who take advantage of noncompetitive behavior. 14–31
  • 33.
    Conflict-Handling Intention: Collaboration • To find an integrative solution when both sets of concerns are too important to be compromised. • When your objective is to learn. • To merge insights from people with different perspectives. • To gain commitment by incorporating concerns into a consensus. • To work through feelings that have interfered with a relationship. 14–32
  • 34.
    Conflict-Handling Intention: Avoidance •When an issue is trivial, or more important issues are pressing. • When you perceive no chance of satisfying your concerns. • When potential disruption outweighs the benefits of resolution. • To let people cool down and regain perspective. • When gathering information supersedes immediate decision. • When others can resolve the conflict effectively • When issues seem tangential or symptomatic of other issues. 14–33
  • 35.
    Conflict-Handling Intention: Accommodation • When you find you’re wrong and to allow a better position to be heard. • To learn, and to show your reasonableness. • When issues are more important to others than to yourself and to satisfy others and maintain cooperation. • To build social credits for later issues. • To minimize loss when outmatched and losing. • When harmony and stability are especially important. • To allow employees to develop by learning from mistakes. 14–34
  • 36.
    Conflict-Handling Intention: Compromise • When goals are important but not worth the effort of potential disruption of more assertive approaches. • When opponents with equal power are committed to mutually exclusive goals. • To achieve temporary settlements to complex issues. • To arrive at expedient solutions under time pressure. • As a backup when collaboration or competition is unsuccessful. 14–35