Organizational Behavior:

Conflict and Negotiation

ConflictConflict

Functional (Constructive) conflict serves the organization’s interests while

dysfunctional conflictdysfunctional conflict threatens the organization’s interests.

Conflict:Conflict: “The process in which one party perceives that its interests are being opposed or negatively affected by another

party.”

Positive

Outcomes

Low Moderate Highe

Brown’s Conflict Continuum

Too LittleConflict

Too MuchConflict

Neutral

Negative

Intensity

AppropriateConflict

TraditionalTraditionalTraditionalTraditional

Transitions Transitions in Conflictin ConflictThoughtThought

Transitions Transitions in Conflictin ConflictThoughtThought

HumanHumanRelationsRelationsHumanHuman

RelationsRelations

InteractionistInteractionistInteractionistInteractionist

The Conflict Process

Sources ofSources ofConflictConflict

ManifestManifestConflictConflict

ConflictConflictOutcomesOutcomes

Perceived Conflict

FeltConflict

Desired Outcomes of ConflictDesired Outcomes of Conflict

AgreementAgreement: Strive for equitable and fair agreements that last.

Stronger relationships:Stronger relationships: Build bridges of goodwill and trust for the future.

Learning:Learning: Greater self-awareness and creative problem solving.

Types of ConflictTypes of Conflict1.1. Line – Staff ConflictLine – Staff Conflict

2.2. Intrapersonal ConflictIntrapersonal Conflict

3.3. Interpersonal Conflict Interpersonal Conflict

4.4. Intergroup ConflictIntergroup Conflict

5.5. Cross – Cultural ConflictCross – Cultural Conflict

6.6. Task ConflictTask Conflict

Antecedents of ConflictAntecedents of Conflict1. Incompatible personalities or value systems.2. Overlapping or unclear job boundaries.3. Competition for limited resources.4. Interdepartment/intergroup competition.5. Inadequate communication.6. Interdependent tasks.7. Organizational complexity.8. Unreasonable or unclear policies, standards, or

rules.9. Unreasonable deadlines or extreme time pressure.10. Collective decision making.11. Decision making by consensus.12. Unmet expectations.13. Unresolved or suppressed conflict.

Sources of Conflict

GoalGoalIncompatibilityIncompatibility

Different ValuesDifferent Valuesand Beliefsand Beliefs

• Goals conflict with goals of others

• Different beliefs due to unique background, experience, training

• Caused by specialized tasks, careers

• Explains misunderstanding in cross-cultural and merger relations

Sources of Conflict

GoalGoalIncompatibilityIncompatibility

Different ValuesDifferent Valuesand Beliefsand Beliefs

TaskTaskInterdependenceInterdependence

Three levels of interdependence

ResourceResource

AA BB CC

Pooled

AA BB CC

Sequential

AA

BB CC

Reciprocal

Sources of Conflict

GoalGoalIncompatibilityIncompatibility

Different ValuesDifferent Valuesand Beliefsand Beliefs

TaskTaskInterdependenceInterdependence

ScarceScarceResourcesResources

AmbiguityAmbiguity

• Increases competition for resources to fulfill goals

• Lack of rules guiding relations• Encourages political tactics

Sources of Conflict

GoalGoalIncompatibilityIncompatibility

Different ValuesDifferent Valuesand Beliefsand Beliefs

TaskTaskInterdependenceInterdependence

ScarceScarceResourcesResources

AmbiguityAmbiguity

CommunicationCommunicationProblemsProblems

Lack of opportunity --reliance on stereotypes

Lack of ability-- arrogant communication

heightens conflict perception

Lack of motivation -- conflict causes lower motivation

to communicate, increases stereotyping

Conflict Management Styles: Orientations

• Win-win orientation– You believe parties will find a mutually beneficial

solution to their disagreement

• Win-lose orientation– You believe that the more one party receives, the

less the other receives– Tends to escalate conflict, use of power/politics

Tips for Managers Whose Employees Tips for Managers Whose Employees Are Having a Personality ConflictAre Having a Personality Conflict

1. Follow company policies for diversity, anti-discrimination, and sexual harassment.

2. Investigate and document conflict. 3. If appropriate, take corrective action (e.g.,

feedback or B Mod).4. If necessary, attempt informal dispute

resolution.5. Refer difficult conflicts to human resource

specialists or hired counselors for formal resolution attempts and other interventions.

Minimizing Inter-group Conflict: Minimizing Inter-group Conflict: An Updated Contact ModelAn Updated Contact Model

• Conflict within the group is high• There are negative interactions between groups (or between members of those groups)• Influential third-party gossip about other group is negative

• Work to eliminate specific negative interactions between groups (and members).• Conduct team building to reduce intragroup conflict and prepare employees for cross-functional teamwork.• Encourage personal friendships and good working relationships across groups and departments.• Foster positive attitudes toward members of other groups (empathy, compassion, sympathy).• Avoid or neutralize negative gossip across groups or departments.

Recommended actions:Recommended actions:Level of perceivedLevel of perceived

Inter-group conflict tendsInter-group conflict tendsto increase when:to increase when:

Skills and Best Practices: How to Build Skills and Best Practices: How to Build Cross-Cultural RelationshipsCross-Cultural Relationships

BehaviorBehavior RankRankBe a good listener 1Be sensitive to the needs of others 2Be cooperative, rather than overly competitive 2Advocate inclusive (participative) leadership 3Compromise rather than dominate 4Build rapport through conversations 5Be compassionate and understanding 6Avoid conflict by emphasizing harmony 7Nurture others (develop and mentor) 8

TieTie

Stimulating Functional ConflictStimulating Functional Conflict

Dialectic MethodDialectic Method

Devil,s AdvocacyDevil,s Advocacy

Conflict Management Styles

Integrating Obliging

Dominating Avoiding

Compromising

High Low

High

Low

Con

cern

for

Oth

ers

Concern for Self

View of Ethics in Conflict View of Ethics in Conflict ManagementManagement

UtilitarianUtilitarian

Golden RuleGolden Rule

Kantian/ RightsKantian/ Rights

Enlightened Self InterestEnlightened Self Interest

Justice ApproachJustice Approach

NegotiatingNegotiating

Distributive negotiation:Distributive negotiation: Single issue; fixed-pie; win-lose.

Integrative negotiation:Integrative negotiation: More than one issue; win-win.

Negotiation:Negotiation: “A give-and-take decision-making process involving interdependent parties with different

preferences.”

• Available Resources

• Primary Motivations

• Primary Interests

• Focus of Relationships

• Fixed Amount

• I Win, You Lose

• Opposed

• Short-Term

• Variable Amount

• I Win, You Win

• Congruent

• Long-Term

IntegrativeBargaining

DistributiveBargaining

BargainingCharacteristics

The Two Types ofBargaining Strategies

The Two Types ofBargaining Strategies

An Integrative Approach: An Integrative Approach: Added-Value NegotiationAdded-Value Negotiation

Clarify interests. Identify options. Design alternative deal packages. Select a deal. Perfect the deal.

Situational Influences on Negotiation

• Location

• Physical Setting

• Time Investment and Deadlines

• Audience.

Your PositionsYour Positions

InitialInitial TargetTarget

InitialInitialTargetTarget

Opponent’s PositionsOpponent’s Positions

Area ofPotential

Agreement

Bargaining Zone Model

ResistanceResistance

ResistanceResistance

Decision-Making Biases That Impede Negotiations

• Escalation of commitment

• The mythical fixed pie

• Anchoring and adjustments

• Framing negotiations

• Availability of information

• The winner’s curse

• Overconfidence

Effective Negotiator Behaviours

• Plan and Set Goals

• Gather Information

• Communicate Effectively

• Make Appropriate Concessions

..

Improving Negotiation Skills

• Research your opponent

• Begin with a positive overture

• Address problems, not personalities

• Pay little attention to initial offers

• Emphasize win-win solutions

• Create an open, trusting climate

Third – Party NegotiationsThird – Party Negotiations

MediatorArbitratorConciliatorConsultant

Alternative Dispute Resolution (ADR) Alternative Dispute Resolution (ADR) TechniquesTechniques

Facilitation:Facilitation: Third party gets disputants to deal directly and constructively with each other.

Conciliation:Conciliation: Neutral third party acts as communication link between disputants.

Peer review:Peer review: Impartial co-workers hear both sides and render decision that may or may not be binding.

OmbudsmanOmbudsman:: Respected and trusted member of the organization hears grievances confidentially.

MediationMediation:: Trained third-party guides disputants toward their own solution.

Arbitration:Arbitration: Neutral third-party hears both sides in a court-like setting and renders a binding decision.

Unethical Negotiating TacticsUnethical Negotiating Tactics1.1. LiesLies

2.2. PufferyPuffery

3.3. Deception Deception

4.4. Weakening The OpponentWeakening The Opponent

5.5. Strengthening One’s Own PositionStrengthening One’s Own Position

6.6. Information ExploitationInformation Exploitation

7.7. NondisclosureNondisclosure8.8. Change of Mind Change of Mind 9.9. DistractionDistraction10.10.MaximizationMaximization