Conflict and Negotiation  Chapter   FIFTEEN
Conflict Conflict Defined 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
Transitions in Conflict Thought Causes: Poor communication Lack of openness Failure to respond to employee needs Traditional View of Conflict The belief that all conflict is harmful and must be avoided.
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.
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. (Negative)  (Positive)
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.
The Conflict Process E X H I B I T  15 –1
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 Conflict Definition Perceived Conflict Awareness by one or more parties of the existence of conditions that create opportunities for conflict to arise. Felt Conflict Emotional involvement in a conflict creating anxiety, tenseness, frustration, or hostility. Positive Feelings Negative Emotions
Stage III: Intentions Cooperativeness: Attempting to satisfy the other party’s concerns. Assertiveness: Attempting to satisfy one’s own concerns. Intentions Decisions to act in a given way.
Dimensions of Conflict-Handling Intentions E X H I B I T  15-2 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.
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 E X H I B I T  15 –3 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.
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 E X H I B I T  15 –4 Source:  Based on S. P. Robbins,  Managing Organizational Conflict: A Nontraditional Approach  (Upper Saddle River, NJ: Prentice Hall, 1974), pp. 59–89
Conflict Management Techniques Conflict Resolution Techniques Communication Bringing in outsiders Restructuring the organization Appointing a devil’s advocate E X H I B I T  15 –4 (cont’d) Source:  Based on S. P. Robbins,  Managing Organizational Conflict: A Nontraditional Approach  (Upper Saddle River, NJ: Prentice Hall, 1974), pp. 59–89
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  B est  A lternative  T o a  N egotiated  A greement; the lowest acceptable value (outcome) to an individual for a negotiated agreement.
Bargaining Strategies Integrative Bargaining Negotiation that seeks one or more settlements that can create a win-win solution. Distributive Bargaining Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation.
Distributive Versus Integrative Bargaining E XHIBIT  15-5 Bargaining  Distributive  Integrative Characteristic  Bargaining  Bargaining   Goal  Get as much of pie  Expand the pie   as possible Motivation Win-Lose Win-Win Focus Positions Interests  Information Low High Sharing  Duration of  Short term  Long term relationships  Source:  Based on R. J. Lewicki and J. A. Litterer,  Negotiation  (Homewood, IL: Irwin, 1985), p. 280.
Staking Out the Bargaining Zone E X H I B I T  15 –6
The Negotiation Process E X H I B I T  15 –7 BATNA The  B est  A lternative  T o a  N egotiated  A greement; the lowest acceptable value (outcome) to an individual for a negotiated agreement.
Issues in Negotiation The Role of Mood & Personality Traits in Negotiation Positive moods positively affect negotiations Traits do not appear to have a significantly direct effect on the outcomes of either bargaining or negotiating processes (except extraversion, which is bad for negotiation effectiveness) 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.
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 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. E X H I B I T  15 –8 Source:  Adapted from L. Khosla, “You Say Tomato,”  Forbes , May 21, 2001, p. 36.
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) Consultant An impartial third party, skilled in conflict management, who attempts to facilitate creative problem solving through communication and analysis. Conciliator A trusted third party who provides an informal communication link between the negotiator and the opponent.
Conflict  and Unit Performance E X H I B I T  15 –9
USE….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.
USE …..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.
USE….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.
USE….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.
USE…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.
© 2007 Prentice Hall Inc. All rights reserved. By standing on the printer, what conflict resolution technique might this man (Tom Alexander) be employing?  Authoritative Command Superordinate goal Expansion of resources Compromise Chapter Check-Up:  Conflict By shifting the focus of the meeting to the overall organizational competitiveness being threatened because of the excess strength being built into the printers, he directed the attendees to a superordinate goal of the organization remaining competitive.
© 2007 Prentice Hall Inc. All rights reserved. Suppose you are a staunch Democrat and your uncle is a Republican.  Every time he sees you, he tries to pick a fight about politics and “those stupid liberals.”  According to this chapter, what conflict handling intention should you use in dealing with him?  Competing Collaborating Accommodating  Avoidance  Chapter Check-Up:  Conflict Discuss with your neighbor under what circumstances (if any) you should shift to an accommodating intention (when talking with your uncle).
Discuss the concepts of BATNA and resistance point with your neighbor. What similarities are there between the two?  Differences?  Chapter Check-Up:  Negotiation

Ob12 15st

  • 1.
    Conflict and Negotiation Chapter FIFTEEN
  • 2.
    Conflict Conflict DefinedA 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
  • 3.
    Transitions in ConflictThought Causes: Poor communication Lack of openness Failure to respond to employee needs Traditional View of Conflict The belief that all conflict is harmful and must be avoided.
  • 4.
    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.
  • 5.
    Functional versus DysfunctionalConflict Functional Conflict Conflict that supports the goals of the group and improves its performance. Dysfunctional Conflict Conflict that hinders group performance. (Negative) (Positive)
  • 6.
    Types of ConflictTask Conflict Conflicts over content and goals of the work. Relationship Conflict Conflict based on interpersonal relationships. Process Conflict Conflict over how work gets done.
  • 7.
    The Conflict ProcessE X H I B I T 15 –1
  • 8.
    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
  • 9.
    Stage II: Cognitionand Personalization Conflict Definition Perceived Conflict Awareness by one or more parties of the existence of conditions that create opportunities for conflict to arise. Felt Conflict Emotional involvement in a conflict creating anxiety, tenseness, frustration, or hostility. Positive Feelings Negative Emotions
  • 10.
    Stage III: IntentionsCooperativeness: Attempting to satisfy the other party’s concerns. Assertiveness: Attempting to satisfy one’s own concerns. Intentions Decisions to act in a given way.
  • 11.
    Dimensions of Conflict-HandlingIntentions E X H I B I T 15-2 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.
  • 12.
    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.
  • 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.
    Stage IV: BehaviorConflict Management The use of resolution and stimulation techniques to achieve the desired level of conflict.
  • 15.
    Conflict-Intensity Continuum EX H I B I T 15 –3 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.
  • 16.
    Conflict Management TechniquesConflict Resolution Techniques Problem solving Superordinate goals Expansion of resources Avoidance Smoothing Compromise Authoritative command Altering the human variable Altering the structural variables E X H I B I T 15 –4 Source: Based on S. P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp. 59–89
  • 17.
    Conflict Management TechniquesConflict Resolution Techniques Communication Bringing in outsiders Restructuring the organization Appointing a devil’s advocate E X H I B I T 15 –4 (cont’d) Source: Based on S. P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp. 59–89
  • 18.
    Stage V: OutcomesFunctional 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
  • 19.
    Stage V: OutcomesDysfunctional Outcomes from Conflict Development of discontent Reduced group effectiveness Retarded communication Reduced group cohesiveness Infighting among group members overcomes group goals
  • 20.
    Negotiation Negotiation Aprocess in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them. BATNA The B est A lternative T o a N egotiated A greement; the lowest acceptable value (outcome) to an individual for a negotiated agreement.
  • 21.
    Bargaining Strategies IntegrativeBargaining Negotiation that seeks one or more settlements that can create a win-win solution. Distributive Bargaining Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation.
  • 22.
    Distributive Versus IntegrativeBargaining E XHIBIT 15-5 Bargaining Distributive Integrative Characteristic Bargaining Bargaining Goal Get as much of pie Expand the pie as possible Motivation Win-Lose Win-Win Focus Positions Interests Information Low High Sharing Duration of Short term Long term relationships Source: Based on R. J. Lewicki and J. A. Litterer, Negotiation (Homewood, IL: Irwin, 1985), p. 280.
  • 23.
    Staking Out theBargaining Zone E X H I B I T 15 –6
  • 24.
    The Negotiation ProcessE X H I B I T 15 –7 BATNA The B est A lternative T o a N egotiated A greement; the lowest acceptable value (outcome) to an individual for a negotiated agreement.
  • 25.
    Issues in NegotiationThe Role of Mood & Personality Traits in Negotiation Positive moods positively affect negotiations Traits do not appear to have a significantly direct effect on the outcomes of either bargaining or negotiating processes (except extraversion, which is bad for negotiation effectiveness) 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.
  • 26.
    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 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. E X H I B I T 15 –8 Source: Adapted from L. Khosla, “You Say Tomato,” Forbes , May 21, 2001, p. 36.
  • 27.
    Third-Party Negotiations MediatorA 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.
  • 28.
    Third-Party Negotiations (cont’d)Consultant An impartial third party, skilled in conflict management, who attempts to facilitate creative problem solving through communication and analysis. Conciliator A trusted third party who provides an informal communication link between the negotiator and the opponent.
  • 29.
    Conflict andUnit Performance E X H I B I T 15 –9
  • 30.
    USE….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.
  • 31.
    USE …..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.
  • 32.
    USE….Avoidance Whenan 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.
  • 33.
    USE….Accommodation Whenyou 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.
  • 34.
    USE…Compromise Whengoals 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.
  • 35.
    © 2007 PrenticeHall Inc. All rights reserved. By standing on the printer, what conflict resolution technique might this man (Tom Alexander) be employing? Authoritative Command Superordinate goal Expansion of resources Compromise Chapter Check-Up: Conflict By shifting the focus of the meeting to the overall organizational competitiveness being threatened because of the excess strength being built into the printers, he directed the attendees to a superordinate goal of the organization remaining competitive.
  • 36.
    © 2007 PrenticeHall Inc. All rights reserved. Suppose you are a staunch Democrat and your uncle is a Republican. Every time he sees you, he tries to pick a fight about politics and “those stupid liberals.” According to this chapter, what conflict handling intention should you use in dealing with him? Competing Collaborating Accommodating Avoidance Chapter Check-Up: Conflict Discuss with your neighbor under what circumstances (if any) you should shift to an accommodating intention (when talking with your uncle).
  • 37.
    Discuss the conceptsof BATNA and resistance point with your neighbor. What similarities are there between the two? Differences? Chapter Check-Up: Negotiation