330 F 12 Conflict & Negotiation HO

7/27/2019 330 F 12 Conflict & Negotiation HO

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Organizational Conflict

and Negotiation


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Conflict Defined

A process that begins when one party perceives thatanother party has negatively affected, or is about tonegatively affect, something that the first partycares about.

That point in an ongoing activity when aninteraction crosses over to become an interpartyconflict.

Encompasses a wide range of conflicts that people

experience in organizations Incompatibility of goals

Differences over interpretations of facts

Disagreements based on behavioral expectations


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Transitions in Conflict Thought

Causes:

Poor communication

Lack of openness

Failure to respond toemployee needs

Traditional View of Conflict

The belief that all conflict is harmful and must beavoided.


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Transitions in Conflict Thought (contd)

Human Relations View of Conflict

The belief that conflict is a natural and inevitableoutcome in any group.

Interactionist View of Conflict

The belief that conflict is not only

a positive force in a group but thatit is absolutely necessary for agroup to perform effectively.


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Functional versus Dysfunctional

Conflict

Functional Conflict

Conflict that supports the goalsof the group and improves its

performance.

Dysfunctional Conflict

Conflict that hindersgroup performance.(Negative)

(Positive)


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Conflict

and UnitPerformance


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Types of Conflict

Task Conflict

Conflicts over content and goals of the work.

Low to moderate levels are FUNCTIONAL

Relationship Conflict

Conflict based on interpersonal relationships.

Almost alwaysDYSFUNCTIONAL

Process Conflict

Conflict over how work gets done.

Low levels are FUNCTIONAL


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The Conflict Process


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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 FeelingsNegative Emotions

Conflict Definition

Perceived ConflictAwareness by one or moreparties of the existence ofconditions that create

opportunities for conflict toarise.

Felt ConflictEmotional involvement in aconflict creating anxiety,tenseness, frustration, or

hostility.


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CompromisingAssertiveness

High

Low

CooperativenessLow High

Competing Collaborating

Avoiding Accommodating

Stage III: IntentionsDecisions to resolve conflict in a given way


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Stage III: Intentions/Conflict Resolution

Cooperativeness:

Attempting to satisfy the other partysconcerns.

Assertiveness:

Attempting to satisfy ones own concerns.


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Competing

A desire to satisfy ones interests, regardless of theimpact on the other party to the conflict.

Collaborating

A situation in which the parties to a conflict eachdesire to satisfy fully the concerns of all parties.

Avoiding

The desire to withdraw from or suppress a conflict.


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Accommodating

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

Compromising

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


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Overt efforts to destroy the

other party

Aggressive physical attacks Threats and ultimatums

Assertive verbal attacks

Overt questioning or

challenging Minor disagreements or

misunderstandings

Annihilatory

conflict

No conflict

Stage IV: Behavior


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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 andchange

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 cohesivenessInfighting among group members overcomes

group goals


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Cooling Things Down

Conflict-Resolution Techniques Problem solving

Superordinate goals

Expansion of resources

Avoidance

Smoothing

Compromising

Authoritative command

Altering human behavior

Altering structurevariables


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Not enough conflict? Warm things up.

Conflict management includes

increasing conflict

Increase diversity

Bring in outsiders from different backgrounds,etc.

Recruit a devils advocate

Restructure the organization

Realign work groups, increaseinterdependence, disrupt the status quo

Change the culture to openness to debateand opinions


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Negotiation

NegotiationA process in which two or more parties exchangegoods or services and attempt to agree on theexchange rate for them.

BATNA

The BestAlternative To aNegotiatedAgreement; thelowest acceptable value(outcome) to an individualfor a negotiated agreement.


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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 amountof resources; a win-lose situation.


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Distributive vs. Integrative Bargaining

Bargaining Distributive Integrative

Characteristic Characteristic CharacteristicAvailable resources Fixed amount of Variable amount of

resources to be resources to be divided

divided

Primary motivations I win, you lose I win, you win

Primary interests Opposed to each Convergent or congruent

other with each other

Focus of Short term Long term

Relationships

Information sharing Low High


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Bargaining Zone Model

Opponents

resistance

point

Opponents

target

point

Opponents

initial

point

Your

Resistance

point

Your

Target

point

Your

Initial

point

Area ofpotential

agreement


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Bargaining Tactics and the Bargaining

Zone DistributiveTactics

Make an aggressive

first offer

Reveal a deadline

IntegrativeTactics

Bargain in teams

Put more issues onthe table

Dont compromise


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The

NegotiationProcess

BATNA

The BestAlternative To aNegotiatedAgreement

the lowest acceptablevalue (outcome) to anindividual for anegotiated agreement.


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Negotiationstrategies

Importance

ofrelationship

outcome

Importanceof substantive outcome

Trustingly collaborate Openly subordinate

Firmly compete Actively avoid

negotiating

High

Low

High Low


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Are some people better negotiators

than others?

Do personality traits and moods make a

difference?

Does gender make a difference?

Do cultural differences change things?


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Individual Differences in Negotiation

Personality Traits

Extroverts and agreeable people weaker at distributive bargaining -- disagreeable introvert is best

Intelligence is a weak indicator of effectiveness

Moods

Ability to show anger helps in distributive bargaining Positive moods and emotions help integrative bargaining

Gender

Women negotiate no differently from men, although menapparently negotiate slightly better outcomes.

Women and men take on gender stereotypes in negotiations:tender and tough

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


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Difficulties in Cross-Cultural Negotiations

Italians, Germans, and French dont soften upexecutives with praise before they criticize.Americans do, and to many Europeans this seemsmanipulative.

Indian executives are used to interrupting oneanother. When Americans listen without asking forclarification or posing questions, Indians can feel theAmericans arent paying attention.

The Chinese believe negotiations never end.

The Chinese and the Japanese negotiate to develop arelationship and commitment to to work togetherrather than to settle every detail.


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Difficulties in Cross-Cultural Negotiations

Americans are known for their impatience anddesire to be liked.

The French like conflict and gain status by

thinking and acting against others. Americans often mix their business and

personal lives. They think nothing, for instance,about asking a question like, How was your

weekend? In many cultures such a question isseen as intrusive because business and privatelives are totally compartmentalized.


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Objectives

Efficiency

Effectiveness Outcome fairness

Procedural fairness

Third-Party Negotiations


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Types of Third Party Roles in Negotiation

Level of

Processcontrol

Level of decision control

High

Low

Low High

Mediator

ConciliatorInquisition

ArbitratorConsultant


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Third-Party Negotiations

MediatorA neutral third party who facilitates a negotiatedsolution by using reasoning, persuasion, andsuggestions for alternatives.

Arbitrator

A third party to a negotiationwho has the authority todictate an agreement.


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Third-Party Negotiations (contd)

Consultant

An impartial third party, skilled inconflict management, who attempts

to facilitate creative problemsolving through communication andanalysis.

Conciliator

A trusted third party who provides aninformal communication link betweenthe negotiator and the opponent.


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Summary and Managerial Implications Conflict can beconstructive ordestructive

Reduce excessiveconflict by using:

Competition

Collaboration

Avoidance

Accommodation

Compromise

Integrative negotiation

is a better long-term

th d

330 F 12 Conflict & Negotiation HO

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