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Chapter 9Chapter 9

Conflict and NegotiationConflict and Negotiation

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LearningLearning OutcomesOutcomes

After reading the material in this chapter, you should be able to:

1. Define the term conflict, distinguish between functional and dysfunctional conflict, and identify three desired outcomes of conflict.

2. Define personality conflicts, and explain how they should be managed.

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LearningLearning OutcomesOutcomes

3. Discuss the role of in-group thinking in intergroup conflict, and explain what can be done to avoid cross-culture conflict.

4. Identify the five conflict-handling styles.

5. Draw a distinction between distributive and integrative negotiation, and explain the concept of mutual gains (interest-based) bargaining.

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A MODERN VIEW OF CONFLICTA MODERN VIEW OF CONFLICT

What is Conflict?What is Conflict?

A process in which one party perceives A process in which one party perceives

that its interests are being opposed or that its interests are being opposed or

negatively affected by another party.negatively affected by another party.

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A MODERN VIEW OF CONFLICT A MODERN VIEW OF CONFLICT (cont’d)(cont’d)

Major trends that make organizational Major trends that make organizational conflict inevitable:conflict inevitable: Constant changeConstant change

Greater employee diversityGreater employee diversity

More teamsMore teams

Less face-to-face communicationLess face-to-face communication

A global economy with increased cross-A global economy with increased cross-cultural dealingscultural dealings

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Functional versus Dysfunctional Functional versus Dysfunctional ConflictConflict

Functional conflict Functional conflict ─ serves an organization’s interests serves an organization’s interests ─ supports the goals of the organizationsupports the goals of the organization─ improves performanceimproves performance

Dysfunctional conflict Dysfunctional conflict ─ threatens an organization’s interests threatens an organization’s interests

─ lowers productivitylowers productivity ─ can lead to violence & dissatisfaction that leads to can lead to violence & dissatisfaction that leads to

turnoverturnover

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Causes of ConflictCauses of Conflict

• Organizational Level– Competition for limited resources– Organizational complexity– Unreasonable or unclear policies, standards,

or rules– Unmet expectations

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Causes of Conflict Causes of Conflict (cont’d)(cont’d)

• Group Level– Overlapping or unclear job boundaries– Interdepartment/intergroup competition– Unreasonable deadlines or extreme time

pressure– Collective decision making– Decision making by consensus

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Causes of Conflict Causes of Conflict (cont’d)(cont’d)

• Interpersonal Level– Incompatible personalities or value systems– Inadequate communication– Unresolved or suppressed conflicts

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Agreement:Agreement: 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.

Desired Outcomes of ConflictDesired Outcomes of Conflict

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Personality ConflictsPersonality Conflicts – interpersonal opposition based on personal dislike and/or disagreement

Intergroup Conflict Intergroup Conflict – conflict among work groups, teams, & departments

Cross-Cultural Conflict Cross-Cultural Conflict – caused by differing assumptions in different cultures about how to think and act

MAJOR FORMS OF CONFLICTMAJOR FORMS OF CONFLICT

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Behaviours to Build Cross-Cultural Behaviours to Build Cross-Cultural RelationshipsRelationships

Be a good listener

Be sensitive to the needs of others

Be cooperative, rather than overly competitive

Advocate inclusive (participative) leadership

Compromise rather than dominate

Build rapport through conversations

Be compassionate and understanding

Avoid conflict by emphasizing harmony

Nurture others (develop and mentor)

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MANAGING CONFLICTMANAGING CONFLICT

Creating Functional Conflict Creating Functional Conflict – getting contributors to defend or criticize ideas on the basis of relevant facts rather than personal preference or political interests

Alternative Styles for Handling Dysfunctional Alternative Styles for Handling Dysfunctional Conflict:Conflict:

Collaborating

Accommodating

Competing

Avoiding

Compromising

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Practical Lessons from Conflict Practical Lessons from Conflict ResearchResearch

Personality traits affect how people handle conflict (e.g. , those with high need for affiliation choose an obliging style)

Disagreement expressed in an arrogant and demeaning manner produces more negative effects than disagreement expressed in a reasonable manner

Aggression breeds aggression

As conflict increases, group satisfaction decreases

Challenging and clear goals can diffuse conflict

Higher levels of conflict erode job satisfaction and internal work motivation

Men and women at the same managerial level handle conflict similarly

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NEGOTIATINGNEGOTIATING

NegotiationNegotiation – a give-and-take decision-making process involving interdependent parties with different preferences.

Two Types of Negotiation:Two Types of Negotiation:

Distributive negotiation: Single issue Mythical “fixed-pie” Traditional win-lose thinking

Integrative negotiation: More than one issue which the parties value differently Progressive win-win strategy

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Practical Lessons from Negotiation Practical Lessons from Negotiation ResearchResearch

Negotiators with fixed-pie expectations produced poor joint outcomes

Personality characteristics can affect negotiating success; negotiators with high extraversion and high agreeableness do poorly with win-lose negotiations

Good and bad moods can affect negotiating plans and outcomes (positively and negatively, respectively)

Less understanding of the other party makes cross-cultural negotiations more difficult than negotiations at home

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Alternative Dispute Resolution Alternative Dispute Resolution 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.

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

Mediation:Mediation: 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.