Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 14-*Conflict and Negotiation

Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

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 aboutThat point in an ongoing activity when an interaction crosses over to become an interparty conflictEncompasses a wide range of conflicts that people experience in organizationsIncompatibility of goalsDifferences over interpretations of factsDisagreements based on behavioral expectations

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Conflict primarily deals with perception. If nobody thinks there is conflict, then no conflict exists. Conflict can be experienced in an organization through many different avenues. It can be that the goals of the individuals are incompatible or there is a difference in opinion over the interpretation of facts. Many conflicts also arise through disagreements about how people should behave.(c) 2008 Prentice-Hall, All rights reserved.*

Transitions in Conflict ThoughtTraditional View of ConflictThe belief that all conflict is harmful and must be avoidedPrevalent view in the 1930s-1940s

Conflict resulted from:Poor communicationLack of opennessFailure to respond to employee needs

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The traditional view of conflict believes that conflict is bad and it should be avoided as much as possible. This view was more prevalent in the 1930s and 40s than it is today. This view held that conflict was the result of poor communication, lack of openness, or failure to respond to employee needs. All these things are negative and can be fixed so management thought that conflict could be fixed and should be fixed.(c) 2008 Prentice-Hall, All rights reserved.*

Continued Transitions in Conflict ThoughtResolution Focused View of ConflictThe belief that conflict is a natural and inevitable outcome in any groupFocuses on productive conflict resolutionInteractionist View of ConflictThe belief that conflict is not only a positive force in a group but that it is absolutely necessary for a group to perform effectivelyCurrent view

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The views of conflict have shifted over the years and have developed into more acceptance of conflict as a natural and inevitable outcome of group dynamics. This idea focuses on productive conflict resolution and is called the resolution focused view of conflict.

The current view on conflict is that it is not only a positive force in a group but it is actually necessary for a group to perform effectively. This is called the interactionist view of conflict and is widely accepted today. (c) 2008 Prentice-Hall, All rights reserved.*

Forms of Interactionist Conflict14-*Task ConflictConflicts over content and goals of the workLow-to-moderate levels of this type are FUNCTIONAL

Relationship ConflictConflict based on interpersonal relationshipsAlmost always DYSFUNCTIONAL

Process ConflictConflict over how work gets doneLow levels of this type are FUNCTIONAL

The interactionist view of conflict does recognize that even though functional conflict can support the group goals and improve their performance there is also dysfunctional conflict that hinders group performance. This type of conflict should be avoided, controlled, or minimized as much as possible.(c) 2008 Prentice-Hall, All rights reserved.*

The Conflict Process

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The conflict process is outlined above. In the following slides we will look at each step individually.(c) 2008 Prentice-Hall, All rights reserved.*

Stage I: Potential Opposition or IncompatibilityCommunicationSemantic difficulties, misunderstandings, over communication and noiseStructureSize and specialization of jobsJurisdictional clarity/ambiguityMember/goal incompatibilityLeadership styles (close or participative)Reward systems (win-lose)Dependence/interdependence of groupsPersonal VariablesDiffering individual value systemsPersonality types

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Stage one of the conflict process is potential opposition or incompatibility. In this stage there are three main conditions that can cause conflict to arise. They are communication, structure, and personal variables.

Communication may cause conflict when words mean different things to different people and misunderstandings result. Communication can be functional to a point, but when too much communication is given, it can cause frustrations and sometimes there are barriers in place to effectively hear what is being communicated.

Structure can cause conflict when people are confused about their roles or the amount of authority they have. If goals are not well-defined or different for different group members, that can cause conflicts. Also leadership styles may cause conflict if it is not a style group members respond well to. Reward systems and dependency issues may also be sources of conflict.

Personal variables will cause conflicts when there are different value systems represented and personality types are at odds.

These factors can bring about conflict and set the stage for conflict to occur. Stage two then talks about what comes next.(c) 2008 Prentice-Hall, All rights reserved.*

Stage II: Cognition and PersonalizationImportant stage for two reasons:

Conflict is defined Perceived ConflictAwareness by one or more parties of the existence of conditions that create opportunities for conflict to arise

Emotions are expressed that have a strong impact on the eventual outcomeFelt ConflictEmotional involvement in a conflict creating anxiety, tension, frustration, or hostility

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Stage two looks at the recognition or cognition of the conflict and the personalization or the emotional part of the conflict. As stated earlier, in order for conflict to be present, there must be an awareness of its existence, defined as perceived conflict. Once people are aware of the conflict, emotions are expressed that can impact the outcome of the conflict this is defined as felt conflict. Emotions can include anxiety, tension, frustration, or hostility. (c) 2008 Prentice-Hall, All rights reserved.*

Stage III: IntentionsIntentionsDecisions to act in a given wayNote: behavior does not always accurately reflect intentDimensions of conflict-handling intentions:Cooperativeness

Attempting to satisfy the other partysconcernsAssertiveness

Attempting to satisfy ones own concerns14-*E X H I B I T 14-2Source: 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. Arrows added. Used with permission.

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Stage three starts to look at the intentions of the individuals involved. These intentions include the determination to act in a certain way, but it is important to realize behavior does not always accurately reflect intention. Sometimes people act out of emotion and not rational thinking.

There are competing dimensions of conflict-handling intentions. One can be motivated by cooperativeness or attempting to satisfy the other partys concerns or assertiveness, attempting to satisfy ones own concerns. As the exhibit in this slide shows, there are also variations of those two competing claims.(c) 2008 Prentice-Hall, All rights reserved.*

Stage IV: BehaviorConflict ManagementThe use of resolution and stimulation techniques to achieve the desired level of conflictConflict-Intensity Continuum

14-*E X H I B I T 14-3Source: 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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Stage four moves us beyond intentions to the chosen behavior in the conflict. Conflict management is using behavior such as resolution and stimulation techniques to manage how much conflict is present. The conflict-intensity continuum in this slide shows the escalation of conflict from zero conflict to annihilatory conflict. (c) 2008 Prentice-Hall, All rights reserved.*

Conflict Management TechniquesConflict Resolution TechniquesProblem solvingSuperordinate goalsExpansion of resourcesAvoidanceSmoothingCompromiseAuthoritative commandAltering the human variableAltering the structural variables

Conflict Stimulation TechniquesBringing in outsidersCommunicationRestructuring the organizationAppointing a devils advocate

14-*SEE E X H I B I T 14-4Source: Based on S. P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp. 5989

There are a number of techniques available to help work through conflict. Some ideas include problem solving, creating a shared goal, and restructuring the organization. Each technique chosen needs to reflect the situation and the people involved in order to be an effective conflict resolution technique.(c) 2008 Prentice-Hall, All rights reserved.*

Stage V: OutcomesFunctionalIncreased group performanceImproved quality of decisionsStimulation of creativity and innovationEncouragement of interest and curiosityProvision of a medium for problem solvingCreation of an environment for self-evaluation and change

DysfunctionalDevelopment of discontentReduced group effectivenessRetarded communicationReduced group cohesivenessInfighting among group members overcomes group goalsManaging Functional ConflictReward dissent and punish conflict avoiders

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Stage five looks at the outcomes of conflict resolution. Functional outcomes include increasing group performance, encouraging interest and curiosity, and creating an environment for self-evaluation and change. Dysfunctional outcomes include discontent workers, reduced group cohesiveness, and infighting. In order to create functional conflict, it is important to reward dissent and punish conflict avoiders.(c) 2008 Prentice-Hall, All rights reserved.*

NegotiationNegotiation (Bargaining)A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for themTwo General Approaches:Distributive Bargaining

Negotiation that seeks to divide up a fixed amount of resources; a win-lose situationIntegrative Bargaining

Negotiation that seeks one or more settlements that can create a win-win solution

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Having a good understanding of conflict and conflict resolution, it is now important to look at negotiation. Negotiation or bargaining is the process where the people involved work on creating a deal that is mutually beneficial. There are two main approaches distributive and integrative. Distributive bargaining seeks to divide up a fixed amount of resources and often creates a win/lose situation. Integrative bargaining seeks one or more settlements that can create a win-win situation for all parties involved.(c) 2008 Prentice-Hall, All rights reserved.*

Distributive versus Integrative Bargaining14-*SEE E X H I B I T 14-5DistributiveIntegrativeSource: Based on R. J. Lewicki and J. A. Litterer, Negotiation (Homewood, IL: Irwin, 1985), p. 280.

Bargaining CharacteristicDistributive BargainingIntegrative BargainingGoalGet all the pie you canExpand the pieMotivationWin-LoseWin-WinFocusPositionsInterestsInformation SharingLowHighDuration of RelationshipsShort-TermLong-Term

The chart on this slide compares the two different bargaining approaches in regards to different criteria.(c) 2008 Prentice-Hall, All rights reserved.*

The Negotiation ProcessBATNAThe Best Alternative To a Negotiated AgreementThe lowest acceptable value (outcome) to an individual for a negotiated agreement

14-*E X H I B I T 14-7

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The grid in this slide outlines the steps of the negotiation process: Preparation and planning, definition of ground rules, clarification and justification, bargaining and problem solving, and closure and implementation. You should determine your and the other partys BATNA before proceeding with negotiations. BATNA represents the Best Alternative To a Negotiated Agreement or the lowest acceptable value you will take for a negotiated agreement. Then anything above your BATNA is a good negotiated outcome.(c) 2008 Prentice-Hall, All rights reserved.*

Individual Differences in Negotiation EffectivenessPersonality TraitsExtroverts and agreeable people are weaker at distributive negotiation; disagreeable introverts are bestIntelligence is a weak indicator of effectivenessMood and EmotionAbility to show anger helps in distributive bargainingPositive moods and emotions help in integrative bargainingGenderMen and women negotiate the same way, but may experience different outcomes

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Many individual differences are interwoven in the negotiation process and impact the effectiveness of the outcomes. Personality traits will impact outcomes as extroverts tend to be weaker at negotiation because they will want people to like them. Intelligence is not an indicator of effective negotiation skills.

Mood and emotion can impact negotiations as anger is often an effective tool in distributive bargaining, whereas positive moods are helpful in integrative bargaining situations.

Gender can also impact negotiation effectiveness. Men and women tend to approach negotiations in the same way but may view the outcomes differently. (c) 2008 Prentice-Hall, All rights reserved.*

Third-Party NegotiationsFour Basic Third-Party RolesMediator

A neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternativesArbitrator

A third party to a negotiation who has the authority to dictate an agreement.Conciliator

A trusted third party who provides an informal communication link between the negotiator and the opponentConsultant

An impartial third party, skilled in conflict management, who attempts to facilitate creative problem solving through communication and analysis14-*

Organizations today are often utilizing third party negotiators to work through conflicts. They may use a mediator who is a neutral third party helping to facilitate a negotiated solution by using reason, persuasion, and suggestions for alternatives. They may use an arbitrator who helps to negotiate solutions but has the authority to dictate an agreement. A conciliator may also be brought in who is a trusted third party who provides informal communication between the parties. Or a consultant may be utilized as a skilled conflict manager who will attempt to facilitate creative problem solving through communication and analysis.(c) 2008 Prentice-Hall, All rights reserved.*

Conflict primarily deals with perception. If nobody thinks there is conflict, then no conflict exists. Conflict can be experienced in an organization through many different avenues. It can be that the goals of the individuals are incompatible or there is a difference in opinion over the interpretation of facts. Many conflicts also arise through disagreements about how people should behave.(c) 2008 Prentice-Hall, All rights reserved.*(c) 2008 Prentice-Hall, All rights reserved.The traditional view of conflict believes that conflict is bad and it should be avoided as much as possible. This view was more prevalent in the 1930s and 40s than it is today. This view held that conflict was the result of poor communication, lack of openness, or failure to respond to employee needs. All these things are negative and can be fixed so management thought that conflict could be fixed and should be fixed.(c) 2008 Prentice-Hall, All rights reserved.*(c) 2008 Prentice-Hall, All rights reserved.The views of conflict have shifted over the years and have developed into more acceptance of conflict as a natural and inevitable outcome of group dynamics. This idea focuses on productive conflict resolution and is called the resolution focused view of conflict.

The current view on conflict is that it is not only a positive force in a group but it is actually necessary for a group to perform effectively. This is called the interactionist view of conflict and is widely accepted today. (c) 2008 Prentice-Hall, All rights reserved.*(c) 2008 Prentice-Hall, All rights reserved.The interactionist view of conflict does recognize that even though functional conflict can support the group goals and improve their performance there is also dysfunctional conflict that hinders group performance. This type of conflict should be avoided, controlled, or minimized as much as possible.(c) 2008 Prentice-Hall, All rights reserved.*(c) 2008 Prentice-Hall, All rights reserved.The conflict process is outlined above. In the following slides we will look at each step individually.(c) 2008 Prentice-Hall, All rights reserved.*(c) 2008 Prentice-Hall, All rights reserved.Stage one of the conflict process is potential opposition or incompatibility. In this stage there are three main conditions that can cause conflict to arise. They are communication, structure, and personal variables.

Communication may cause conflict when words mean different things to different people and misunderstandings result. Communication can be functional to a point, but when too much communication is given, it can cause frustrations and sometimes there are barriers in place to effectively hear what is being communicated.

Structure can cause conflict when people are confused about their roles or the amount of authority they have. If goals are not well-defined or different for different group members, that can cause conflicts. Also leadership styles may cause conflict if it is not a style group members respond well to. Reward systems and dependency issues may also be sources of conflict.

Personal variables will cause conflicts when there are different value systems represented and personality types are at odds.

These factors can bring about conflict and set the stage for conflict to occur. Stage two then talks about what comes next.(c) 2008 Prentice-Hall, All rights reserved.*(c) 2008 Prentice-Hall, All rights reserved.Stage two looks at the recognition or cognition of the conflict and the personalization or the emotional part of the conflict. As stated earlier, in order for conflict to be present, there must be an awareness of its existence, defined as perceived conflict. Once people are aware of the conflict, emotions are expressed that can impact the outcome of the conflict this is defined as felt conflict. Emotions can include anxiety, tension, frustration, or hostility. (c) 2008 Prentice-Hall, All rights reserved.*(c) 2008 Prentice-Hall, All rights reserved.Stage three starts to look at the intentions of the individuals involved. These intentions include the determination to act in a certain way, but it is important to realize behavior does not always accurately reflect intention. Sometimes people act out of emotion and not rational thinking.

There are competing dimensions of conflict-handling intentions. One can be motivated by cooperativeness or attempting to satisfy the other partys concerns or assertiveness, attempting to satisfy ones own concerns. As the exhibit in this slide shows, there are also variations of those two competing claims.(c) 2008 Prentice-Hall, All rights reserved.*(c) 2008 Prentice-Hall, All rights reserved.Stage four moves us beyond intentions to the chosen behavior in the conflict. Conflict management is using behavior such as resolution and stimulation techniques to manage how much conflict is present. The conflict-intensity continuum in this slide shows the escalation of conflict from zero conflict to annihilatory conflict. (c) 2008 Prentice-Hall, All rights reserved.*(c) 2008 Prentice-Hall, All rights reserved.There are a number of techniques available to help work through conflict. Some ideas include problem solving, creating a shared goal, and restructuring the organization. Each technique chosen needs to reflect the situation and the people involved in order to be an effective conflict resolution technique.(c) 2008 Prentice-Hall, All rights reserved.*(c) 2008 Prentice-Hall, All rights reserved.Stage five looks at the outcomes of conflict resolution. Functional outcomes include increasing group performance, encouraging interest and curiosity, and creating an environment for self-evaluation and change. Dysfunctional outcomes include discontent workers, reduced group cohesiveness, and infighting. In order to create functional conflict, it is important to reward dissent and punish conflict avoiders.(c) 2008 Prentice-Hall, All rights reserved.*(c) 2008 Prentice-Hall, All rights reserved.Having a good understanding of conflict and conflict resolution, it is now important to look at negotiation. Negotiation or bargaining is the process where the people involved work on creating a deal that is mutually beneficial. There are two main approaches distributive and integrative. Distributive bargaining seeks to divide up a fixed amount of resources and often creates a win/lose situation. Integrative bargaining seeks one or more settlements that can create a win-win situation for all parties involved.(c) 2008 Prentice-Hall, All rights reserved.*(c) 2008 Prentice-Hall, All rights reserved.The chart on this slide compares the two different bargaining approaches in regards to different criteria.(c) 2008 Prentice-Hall, All rights reserved.*(c) 2008 Prentice-Hall, All rights reserved.The grid in this slide outlines the steps of the negotiation process: Preparation and planning, definition of ground rules, clarification and justification, bargaining and problem solving, and closure and implementation. You should determine your and the other partys BATNA before proceeding with negotiations. BATNA represents the Best Alternative To a Negotiated Agreement or the lowest acceptable value you will take for a negotiated agreement. Then anything above your BATNA is a good negotiated outcome.(c) 2008 Prentice-Hall, All rights reserved.*(c) 2008 Prentice-Hall, All rights reserved.Many individual differences are interwoven in the negotiation process and impact the effectiveness of the outcomes. Personality traits will impact outcomes as extroverts tend to be weaker at negotiation because they will want people to like them. Intelligence is not an indicator of effective negotiation skills.

Mood and emotion can impact negotiations as anger is often an effective tool in distributive bargaining, whereas positive moods are helpful in integrative bargaining situations.

Gender can also impact negotiation effectiveness. Men and women tend to approach negotiations in the same way but may view the outcomes differently. (c) 2008 Prentice-Hall, All rights reserved.*(c) 2008 Prentice-Hall, All rights reserved.Organizations today are often utilizing third party negotiators to work through conflicts. They may use a mediator who is a neutral third party helping to facilitate a negotiated solution by using reason, persuasion, and suggestions for alternatives. They may use an arbitrator who helps to negotiate solutions but has the authority to dictate an agreement. A conciliator may also be brought in who is a trusted third party who provides informal communication between the parties. Or a consultant may be utilized as a skilled conflict manager who will attempt to facilitate creative problem solving through communication and analysis.(c) 2008 Prentice-Hall, All rights reserved.*(c) 2008 Prentice-Hall, All rights reserved.