Ch. 10 Conflict and Negotiation to Post

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    Day 1:Conflict LectureConflict Style ActivityBig Red Orange Activity

    Day 2:

    Negotiation LectureNegotiation Activity

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    What is conflict?Conflict occurs whenever:

    Parties disagree over substantive issuesEmotional antagonisms cause frictions between individualsor groups

    Types of conflict:Substantive conflict

    A fundamental disagreement over ends or goals to bepursued and the means for their accomplishment

    Emotional conflictInterpersonal difficulties that arise over feelings of anger,mistrust, dislike, fear, resentment, and the like

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    Figure 15.1: The Two Faces of Conflict

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    Functional conflict: results in positive benefits to the group

    Dysfunctional conflict: works to the groups or organizations disadvantage

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    ConflictPotential benefitsSurfaces important problemsso they can be addressed

    Causes careful considerationof decisionsCauses reconsideration ofdecisionsIncreases information

    available for decision makingProvides opportunities forcreativity

    Potential disadvantagesDiverts energiesHurts group cohesion

    Promotes interpersonalhostilitiesCreates overall negativeenvironmentCan decrease workproductivity and jobsatisfactionCan contribute toabsenteeism and jobturnover

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    Conflict Management IndirectManaged interdependence - Adjusting the level of interdependencyamong units or individuals when workflow conflicts exist

    Decoupling - taking action to eliminate or reduce the required contactbetween conflicting parties

    Appeal to common goals - Focusing the attention of potentiallyconflicting parties on one mutually desirable conclusionUpward referral - Problems are referred up the hierarchy for more seniormanagers to reconcile Altering scripts and myths - Superficial management of conflict by usingbehavioral routines that become part of the organizations culture

    We just play our roles and ignore the issues.

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    Conflict Management Direct (face to face)Lose-Lose conflict - nobody gets what he or she wants

    Avoidance - Everyone simply pretends that the conflict does not reallyexist and hopes that it will go away Accommodation (smoothing) - Involves playing down differences

    among the conflicting parties and highlighting similarities and areas ofagreement

    Compromise - Each party gives up something of value, but neither partysdesires are fully satisfied

    Win-Lose conflict - one party achieves its desires at the expense and to theexclusion of the other partys desires Competition - One party achieves a victory through the use of force,superior skills, or domination

    Authoritative command - Use of formal authority to dictate a solutionand specify who gains what and who loses what

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    Conflict Management Direct (face to face) Win-Win conflict - both high cooperativeness and high assertiveness Win-win solutions should:

    Achieve each others goals Be acceptable to both partiesEstablish a process whereby both parties see a responsibility to beopen and honest about facts and feelings

    Collaboration or problem solvingrecognition by all conflicting parties that something is wrong andneeds attention

    stresses gathering and evaluating information in solving disputes andmaking choicesPotential disadvantages of collaboration

    Collaboration requires time and energyBoth parties to the conflict need to be assertive and cooperative

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    Direct Approaches

    Copyright 2008 John Wiley & Sons, Inc. 15-9

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    Your Conflict Style

    Copyright 2008 John Wiley & Sons, Inc. 15-10

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    Avoidingdesire to withdraw from or suppress a conflict Appropriate Situations:

    When an issue is trivial or more important issues arepressing.

    When you perceive no chance of satisfying your concerns. When potential disruption outweighs the benefits ofresolution.To let people cool down and regain perspective.

    When gathering information supersedes an immediatedecision. When others can resolve the conflict more effectively. When issues seem tangential or symptomatic of other issues.

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    Competinga desire to satisfy ones interests regardless of the

    impact on the other party. Appropriate Situations:

    When quick, decisive action is vital, such as

    emergencies.On important issues on which unpopular actions needimplementation, such as cost cutting, discipline.On issues vital to organizational welfare when youknow you are right. Against people who take advantage of noncompetitivesituations.

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    Accommodatingplacing the opponents interests above self interests Appropriate Situations:

    When you find you are wrong to allow a better position tobe heard, to learn, and to show your reasonableness. When issues are more important to others than to yourself to satisfy others and maintain cooperation.To build social credits for later issues.To minimize a loss when you are outmatched and losing. When harmony and stability are especially important.To allow subordinates to develop by learning from mistakes .

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    Compromisingeach party is willing to give up something Appropriate Situations:

    When goals are important but not worth the effortor potential disruption of more assertive modes. When opponents with equal power are committedto mutually exclusive goals.To achieve temporary settlement of complex issues.

    To arrive at expedient solutions under timepressures. As a backup when collaboration or competition isunsuccessful.

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    Collaboratingeach party desires to satisfy fully the concerns of

    all parties. Appropriate Situations:

    To find an integrative solution when both sets ofconcerns are too important to compromise. When your objective is to learn.To manage insights from people with different

    perspectives.To gain commitment by incorporating concerns intoa consensus.To work through feelings that have interfered with a

    relationship.

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    NegotiationNegotiation definedDistributive negotiation

    Integrative negotiationNegotiation processLevels of negotiation3rd party negotiationNegotiation pitfallsNegotiation tips

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    NegotiationNegotiation is the process of making joint decisions when the partiesinvolved have different preferences

    Substance goals - Outcomes that relate to content issues

    Relationship goals - Outcomes that relate to how well people involved inthe negotiations (and any constituencies they represent) are able to work with one another once the process is concluded

    Criteria of an effective negotiation:Quality - The negotiation results offer a quality agreement that is wiseand satisfactory to all sides.Harmony - The negotiation is harmonious and fosters rather than inhibitsgood interpersonal relations.Efficiency - The negotiation is efficient and no more time consuming orcostly than absolutely necessary.

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    Negotiation Strategies

    Distributive negotiationFocuses on positions staked out or declared by theconflicting parties, each of whom is trying to claimcertain portions of the available pie.

    Integrative negotiationSometimes called principled negotiation

    Focuses on the merits of the issues and the partiesinvolved try to enlarge the available pie rather than stakeclaims to certain portions of it.

    Looks at deeper interests vs. positions

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    Distributive negotiation

    Participants ask: Who is going to get thisresource?

    Hard distributive negotiation - Each party holds out to

    get its own waySoft distributive negotiation - One party is willing tomake concessions to the other party to get things over

    Bargaining zone - range between one partysminimum reservation point and the other partysmaximum reservation point

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    Integrative Negotiation

    The key question is: How can the resource bestbe utilized? Is less confrontational than distributive negotiation, and permits abroader range of alternative solutions to be consideredOpportunity for a true win-win solution

    Attitudinal foundations of integrative agreements Willingness to trust the other party Willingness to share information with the other party

    Willingness to ask concrete questions of the other party 15-21

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    Integrative Negotiation

    Behavioral foundations of integrative agreements Ability to separate the people from the problem Ability to focus on interests rather than positions Ability to avoid making premature judgments

    Ability to keep alternative creation separate from evaluation Ability to judge possible agreements on an objective set ofcriteria or standards

    Information foundations of integrative agreements

    Each party must know what he or she will do if anagreement cant be reached (BATNAs best alternative to anegotiated agreement) Each party must determine what is personally important in

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    Summary of

    Distributive vs. Integrative BargainingBargainingCharacteristics

    DistributiveBargaining

    IntegrativeBargaining

    Available Resources Fixed Amount Variable Amount

    PrimaryMotivations

    I win, you lose I win, you win

    Primary Interests Opposed Congruent

    Focus ofRelationships

    Short-Term Long-Term

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    Negotiation ProcessPreparation and planning.

    What are your goals? What are the other partys goals?

    Determine your & others BATNA Definition of Ground Rules

    Who, What, Where, When, How Long, InitialProposals

    Clarification and JustificationBargaining and Problem-Solving give & takeClosure & Implementation formal agreement

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    Confetti Negotiation Instructions You will have 10 minutes to prepare. What should youconsider in your individual preparation? You will have 15 minutes to negotiate

    You must complete the contract on the back of yournegotiation sheet or write no deal

    After you negotiate we will have a class discussion

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    Common negotiation pitfalls

    Myth of the fixed piePossibility of escalating commitmentNegotiators often develop overconfidence in theirpositionsCommunication problems can cause difficultiesduring a negotiation (telling too much or too little)

    Framing negotiations Availability of informationThe winners curse

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    Negotiating TipsResearch Your OpponentSeparate the People from the ProblemFocus on Interests, not PositionsBegin with a Positive OverturePay Little Attention to Initial OffersDont Haggle; Invent Options for Mutual Gain

    Insist on Using Objective CriteriaDevelop your BATNA

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    3 rd Party Roles

    Alternative dispute resolution A neutral third party works with persons involved in anegotiation to help them resolve impasses and settle

    disputes Arbitration A third party acts as a judge and has the power to issue adecision that is binding on all disputing parties

    Mediation

    A neutral third party tries to engage disputing parties in anegotiated solution through persuasion and rational argument

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    Further ReadingGetting to Yes: Negotiating Agreementwithout Giving In by Roger Fisher & William UryBargaining for Advantage: NegotiationStrategies for Reasonable People by G.Richard ShellSix Habits of Merely Effective Negotiatorsby James K. Sebenius. Harvard BusinessReview, April 2001, p. 87-95

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    Six Habits of Merely Effective Negotiators

    1) Neglecting the Other Sides Problem 2) Letting Price Bulldoze Other Interests

    The RelationshipThe Social Contract

    The ProcessThe Interests of the Full Set of Players

    3) Letting Positions Drive Out Interests4) Searching Too Hard for Common Ground

    5) Neglecting BATNAs6) Failing to Correct for Skewed Vision

    Self-Serving BiasPartisan Perceptions