lec 24 - conflict management & negotiation

Organizational Behavior,

8e Schermerhorn, Hunt, and Osborn

John Wiley & Sons, Inc.

Conflict and

Negotiation

Prof. Sunil Misra 2

Conflict and Negotiation

Study questions.

What is conflict?

How can conflict be managed successfully?

What is negotiation?

What are the different strategies involved in

negotiation?

Prof. Sunil Misra 3

Conflict Defined

Conflict exists whenever incompatible activities occur. An action which is incompatible with another action

prevents, obstructs, interferes with, or

injures, or in some way makes it less

likely or less effective. Deutsch (1971)

Prof. Sunil Misra 4

Conflict often results when two or more people, departments or organizations disagree.

It should be viewed as neither positive nor negative.

Instead, conflict is an opportunity to help meet organizational goals and often leads to healthy competition.

Lucas (1994)

Prof. Sunil Misra 5

Conflict is an expressed struggle between at least two interdependent parties who perceive incompatible goals, scarce reward, and interference from the other party in achieving their goals.

Hocker and Wilmot (1985)

Prof. Sunil Misra 6

Conflict

The wide range of conflicts that people experience in organizations

Incompatibility of goals

Differences over interpretations of facts

Disagreements based on behavioral expectations

Prof. Sunil Misra 7

Conflict

In simple sense Conflict is a tension or collision or disagreement.

Difference between Conflict and Competition

Seems to be same, but differ by the degree of Self-interest displayed.

Example

Track Events

Football and Hockey

Price wars

Prof. Sunil Misra 8

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.

Prof. Sunil Misra 9

Transitions in Conflict Thought (contd)

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.

Prof. Sunil Misra 10

Types of conflict.

Substantive conflict.

A fundamental disagreement over

ends or goals to be pursued and the

means for their accomplishment.

Emotional conflict.

Interpersonal difficulties that arise

over feelings of anger, mistrust,

dislike, fear, resentment, etc.

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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.


Types of conflict.

Intrapersonal Conflict

Interpersonal Conflict

Intragroup Conflict

Intergroup Conflict

Interorganizational Conflict


Levels of conflict.

Intrapersonal conflicts.

Actual or perceived pressures from

incompatible goals or expectations.

Approach-approach conflict.

Avoidance-avoidance conflict.

Approach-avoidance conflict.


Levels of conflict cont.

Interpersonal conflict.

Occurs between two or more

individuals who are in opposition to

one another.

Intergroup conflict.

Occurs among members of different

teams or groups.


Levels of conflict cont. Interorganizational conflict.

Occurs in the competition and rivalry that characterize firms operating in the same markets.

Occurs between unions and organizations employing their members.

Occurs between government regulatory agencies and organizations subject to their surveillance.

Occurs between organizations and suppliers of raw materials.

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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)


Functional (or constructive) conflict. Results in positive benefits to

individuals, the group, or the organization.

Likely effects. Surfaces important problems so they can

be addressed.

Causes careful consideration of decisions.

Causes reconsideration of decisions.

Increases information available for decision making.

Provides opportunities for creativity.


Dysfunctional (or destructive) conflict.

Works to the disadvantage of individuals,

the group, or the organization.

Likely effects:

Diverts energies.

Harms group cohesion.

Promotes interpersonal hostilities.

Creates overall negative environment for

workers.


Sources of Conflict

Differences in Culture

Differences in Ideology and Values

Educational Differences

Differences in Experiences

Competitions

Varying Perceptions

Inadequate or Poor Communication

Misuse of Power


Sources of Conflict

Structural Factors : stem from the nature of the organization and the way

in which work is organized

Specification

Interdependence

Goal differences

Authority relationships

Status inconsistencies

Jurisdictional ambiguities (unclear lines of responsibilities within an organization)


Sources of Conflict

Personal Factors : arises from differences among individuals

Skills and abilities

Personalities

Perceptions

Values and ethics

Emotions

Communication barrier

Cultural differences


Culture and conflict.

Conflict is likely to be high when:

Persons from short-term cultures work

with persons from long-term cultures.

Persons from individualistic cultures work

with persons from collectivistic cultures.

Persons from high power distance

cultures work with persons from low

power distance cultures.


Positive aspects of conflict.

Opens communication channel between people

Replacement of old goals with more relevant

ones

Increase innovation through a greater diversity in

view points

Groups and individuals achieve greater

awareness of their own identities

Leads to innovative solutions

Strengthens relationships

Improve problem solving skills


Negative aspects of conflict.

Barriers to communication

Misallocation of resources

Lower productivity

Stressful

Produce irresponsible behaviour

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The Conflict Process

E X H I B I T 151

26

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

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Stage II: Cognition and Personalization

Positive Feelings Negative Emotions

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.

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Stage III: Intentions

Cooperativeness:

Attempting to satisfy the other partys concerns.

Assertiveness:

Attempting to satisfy ones own concerns.

Intentions

Decisions to act in a given way.

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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.

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Stage III: Intentions (contd)

Competing

A desire to satisfy ones 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.

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Stage III: Intentions (contd)

Accommodating

The willingness of one party in a conflict to place the opponents interests above his or her own.

Compromising

A situation in which each party to a conflict is willing to give up something.

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Stage IV: Behavior

Conflict Management

The use of resolution and stimulation techniques to achieve the desired level of conflict.

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Conflict-Intensity Continuum

E X H I B I T 153 Source: Based on S.P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ:

Prentice Hall, 1974), pp. 9397; 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. 11940.

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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 154

Source: Based on S. P.

Robbins, Managing

Organizational Conflict: A

Nontraditional Approach (Upper

Saddle River, NJ: Prentice Hall,

1974), pp. 5989

35

Conflict Management Techniques

Conflict Resolution Techniques

Communication

Bringing in outsiders

Restructuring the organization

Appointing a devils advocate

E X H I B I T 154 (contd)

Source: Based on S. P. Robbins, Managing Organizational Conflict: A Nontraditional

Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp. 5989

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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

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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

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Conflict

and Unit

Performance

E X H I B I T 159

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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 organizations welfare.

When you know youre right.

Against people who take advantage of noncompetitive behavior.

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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.

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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.

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USE.Accommodation

When you find youre 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.

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USECompromise

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.


How can conflict be

managed successfully?

INDIRECT conflict management approaches.

Reduced interdependence.

Appeals to common goals.

Hierarchical referral.

Alterations in the use of mythology and

scripts.


How can conflict be


Reduced interdependence.

Used for adjusting level of interdependency

when work-flow conflicts exists.

Options.

Decoupling.

Buffering.

Linking pins.


How can conflict be


Appeals to common goals.

Focusing the attention of potentially conflicting parties on one mutually desirable goal.

Helping parties to recognize their mutual interdependence.

Can be difficult to achieve if: Prior performance is poor.

Parties disagree over how to improve performance.


How can conflict be


Hierarchical referral.

Makes use of the chain of command for

conflict resolution.

Problems with hierarchical referral.

May not result in true conflict resolution.

Possibility of inaccurate diagnosis of causes of

conflict, resulting in only superficial resolution.

Superiors may attribute conflict to poor

interpersonal relationships.


How can conflict be


Alterations in the use of mythology and

scripts.

Scripts are behavioral routines that become

part of the organizations culture.

Scripts prescribe ways of dealing with conflict.


How can conflict be


DIRECT conflict management approaches are

based on the relative emphasis that a person

places on assertiveness and cooperativeness.

Assertiveness.

Attempting to satisfy ones own concerns.

Unassertive versus assertive.

Cooperativeness.

Attempting to satisfy the other partys concern.

Uncooperative versus cooperative.


How can conflict be


Avoidance.

Unassertive and uncooperative.

Downplaying disagreement.

Failing to participate in the situation and/or

staying neutral at all costs.


How can conflict be


Accommodation or smoothing.

Unassertive and cooperative.

Letting the others wishes rule.

Smoothing over differences to maintain

superficial harmony.


How can conflict be


Compromise.

Moderate assertiveness and moderate

cooperativeness.

Working toward partial satisfaction of

everyones concerns.

Seeking acceptable rather than optimal

solutions so that no one totally wins or loses.


How can conflict be


Competition and authoritative command.

Assertive and uncooperative.

Working against the wishes of the other party.

Fighting to dominate in win/lose competition.

Forcing things to a favorable conclusion

through the exercise of authority.


How can conflict be


Collaboration and problem solving.

Assertive and cooperative.

Seeking the satisfaction of everyones

concerns by working through differences.

Finding and solving problems so everyone

gains as a result.


How can conflict be


The issue of who wins? Lose-lose conflict.

Occurs when nobody gets what he or she wants.

Avoidance, accommodation or smoothing, and compromise are forms of lose-lose conflict.

Win-lose conflict. One part achieves its desires at the expense and

to the exclusion of the other partys desires.

Competition and authoritative command are forms of win-lose conflict.


How can conflict be


The issue of who wins? cont.

Win-win conflict.

Both parties achieve their desires.

Collaboration or problem solving are forms of win-

win conflict.

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Negotiation

A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them.

The process of making joint decisions when the parties involved have different preferences.

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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.

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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.

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The

Negotiation

Process

E X H I B I T 157

BATNA

The Best Alternative To a Negotiated Agreement; the lowest acceptable value (outcome) to an individual for a negotiated agreement.

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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

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Issues in Negotiation

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.

Womens attitudes toward negotiation and their success as negotiators are less favorable than mens.

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Third-Party Role in 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.

A third party acts as a judge and has the power to issue a decision that is

binding on all disputing parties.

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Third-Party Negotiations (contd)

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.


Effective Negotiation

Occurs when substance issues are

resolved and working relationships

are maintained or improved.

Criteria for an effective negotiation.

Quality.

Harmony.

Efficiency.


Ethical Aspects of Negotiation

To maintain good working relationships,

negotiating parties should strive for high

ethical standards.

The negotiating parties should avoid

being side tracked by self-interests,

thereby being tempted to pursue

unethical actions.


Organizational settings for

negotiation

Two-party negotiation.

Group negotiation.

Intergroup negotiation.

Constituency negotiation.


What are the different strategies

involved in negotiation?

Distributive negotiation.

The key questions is: Who is going to get this resource?

Hard distributive negotiation.

Each party holds out to get its own way.

Soft distributive negotiation.

One party is willing to make concessions to

the other party to get things over.




Distributive negotiation cont.

Bargaining zone.

The range between one partys minimum resistance point and the other partys maximum resistance point.

A positive bargaining zone exists when the

two parties points overlap.

A positive bargaining zone provides room

for negotiation.

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Staking Out the Bargaining Zone

E X H I B I T 156




Integrative negotiation.

The key questions is: How can the resource best be utilized?

Is less confrontational than distributive

negotiation, and permits a broader

range of alternative solutions to be

considered.

Opportunity for a true win-win solution.




Integrative negotiation cont.

Range of feasible negotiation tactics.

Selective avoidance.

Compromise.

True collaboration.




Gaining truly integrative agreements rests on:

Supportive attitudes.

Constructive behaviors.

Good information.





Integrative agreements require that each

party must:

Approach the negotiation with a willingness to

trust the other party.

Convey a willingness to share information with

the other party.

Show a willingness to ask concrete questions of

the other party.







Good information.





Reaching integrative agreements

depends on the negotiators ability to:

Separate the people from the problem.

Focus on interests rather than positions.

Avoid making premature judgments.

Judge possible agreements on an

objective set of criteria or standards.







Good information.




Good information.

Each negotiation party must know what he/she will do if an agreement cant be reached.

Each party must understand the relative importance of the other partys interests.

lec 24 - conflict management & negotiation

Documents

relationship conflict

process conflict conflict

levels of conflict

substantive conflict

emotional conflict

approachapproach conflict

avoidanceavoidance conflict

approachavoidance conflict