L1 - Conflict & Negotiation

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    Conflict

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    Defining Conflict Sharp disagreement or opposition, as of interests, ideas, etc

    Perceived divergence of interest or a belief that the parties currentaspirations cannot be achieved simultaneously.

    The interaction of interdependent people who perceived incompatible

    goals and interference from each other in achieving those goals.

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    Levels of Conflict

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    Levels of Conflict

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    Conflict in Organizations

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    Conflict in Organizations

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    Negotiation

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    Characteristics of a Negotiation Situation There are two or more parties

    There is a conflict of need and desire between parties The parties negotiate by choice

    When negotiation occurs we expect a give and take process

    The parties prefer to negotiate than to fight

    Successful negotiation involves management of tangibles and the resolution of

    intangibles

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    Interdependence

    The types of interdependence and the structure of the situation affect the outcomes of a

    negotiation Zero sum or distributive situation: Individuals are so linked together that there is a negative

    correlation between their goal attainments.

    Mutual gain/non zero /integrative situation: There exists a positive correlation

    Value Creation & Claiming

    Value claiming occurs during competitive bargaining to attain the largest piece of the pie. Value creation occurs in integrative negotiation to find a way for all the parties to meet their

    objectives.

    Implications of Combining the Two

    Negotiators must be able to recognize situations that require more of one approach than other

    Negotiators must be versatile in their comfort and use of both major strategic approaches Negotiator perceptions of situations tend to be biased toward seeing problems a more distributive

    than they really are.

    Characteristics of a Negotiation Situation

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    Conflict Resolution - Negotiation Why Does Negotiation Occur

    To agree on how to use limited resources To create something new that neither party could do on his or her own

    To resolve a problem or dispute between parties

    Approaches to Negotiation

    Bargaining vs. negotiation: Bargaining is a win-lose competitive situation while

    negotiation is a win-win situation.

    Many of the important factors that shape a negotiation result occur before the

    parties negotiate.

    The insight in negotiation comes from experience, media and the socialscience research.

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    Dimension Difficult to resolve Easy to resolve

    Issue in question Matter of principle - values, ethics Divisible issue - issue can be easily

    divided into small parts

    Size of stakes Zero sum-what one wins, the other

    loses

    Positive sum-both believe that both

    can do better than simply distributing

    current outcomes

    Continuity of interaction Single transaction - no past or future Long-term relationship - expectedinteraction in future

    Structure of the parties Disorganized-uncohesive, weak

    leadership

    Organized-cohesive, strong leadership

    Involvement of third parties No neutral third party available Trusted, powerful, prestigious third

    party available

    Perceived progress of the

    conflict

    Unbalanced-one party feels more

    harm and will want revenge and

    retribution whereas stronger party

    wants to maintain control

    Balanced-both parties suffer equal

    harm and equal gain; both may be

    more willing to call it a draw

    Conflict Diagnostic Model

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    Conflict Diagnostic Model

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    Styles of Handling Conflict

    Conflict Style Situation where appropriate Situations where inappropriate

    Integrating 1-Issues are complex.

    2-Synthesis of ideas is needed to come up with

    better solutions.

    3-Commitment is needed from other parties forsuccessful implementation.

    4-Time is available for problem solving.

    5-One party alone cannot solve the problem.

    6-Resources possessed by different parties are

    needed to solve their common problems

    1-Task or problem is simple.

    2-Immediate decision is required.

    3-Other parties are unconcerned about

    outcome.

    4-Other parties do not have problem-

    solving skills.

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    Conflict Style Situation where appropriate Situations where inappropriate

    Obliging 1-You believe you may be wrong.

    2-Issue is more important to the other party.

    3-You are willing to give in exchange for

    something from the other party in future.

    4-You are dealing from a position of

    weaknesses.

    5-Preserving relationship is important.

    1-Issue is important to you.

    2- You believe you are right.

    3- The other party is wrong or

    unethical.

    Styles of Handling Conflict

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    Conflict Style Situation where appropriate Situations where inappropriate

    Dominating 1-Issue is trivial.

    2-Speedy decision is needed.

    3-Unpopular course of action is

    implemented.

    4-Necessary to overcome assertive

    subordinates.

    5-Unfavorable decision by the other party

    may be costly to you.

    6-Subordinates lack expertise to make

    technical decisions.

    7-Issue is important to you.

    1-Issue is complex.

    2-Issue is not important to you.

    3-Both parties are equally powerful.

    4-Decision does not have to be made

    quickly.

    5-Subordinates possess high degree of

    competence.

    Styles of Handling Conflict

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    Conflict Style Situation where appropriate Situations where inappropriate

    Avoiding 1-Issue is trivial.

    2-Potential dysfunctional effect of

    confronting the other party

    outweighs benefit of resolution.

    3-Cooling off period is needed.

    1-Issye is important to you.

    2-It is your responsibility to make

    decision.

    3-Parties are unwilling to defer;

    issue must be resolved.

    4-Prompt attention is needed.

    Styles of Handling Conflict

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    Conflict Style Situation where appropriate Situations where inappropriate

    Compromising 1-Goals of parties are mutually exclusive.

    2-Parties are equally powerful.

    3-Concensus cannot be reached.

    4-Integrating or dominating style is not

    successful.

    5-Temperory solution to a complex problem

    is needed.

    1-One party is more powerful.

    2-Problem is complex enough to need a

    problem-solving approach.

    Styles of Handling Conflict