Topic: Conflict and Negotiations

After this Presentation, you can able to answer:◦ Define conflict.◦ Differentiate between the traditional, resolution

focused, and interactionist views of conflict.◦ Outline the conflict process.◦ Define negotiation.◦ Contrast distributive and integrative bargaining.◦ Apply the five steps in the negotiation process.◦ Show how individual differences influence

negotiations.◦ Assess the roles and functions of third-party

negotiations.◦ Describe cultural differences in negotiations.

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A 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 about.

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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THE TRADITIONAL VIEW OF CONFLICT

THE INTERACTIONIST VIEW OF CONFLICT

MANAGED CONFLICT VIEW

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The belief that all conflict is harmful and must be avoided.

Conflict was bad and to be avoided it was viewed negatively and discussed with such terms as VIOLENCE,DESTRUCTION and IRRATIONALITY to reinforce its negative connotation.

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Poor communication Lack of openness Failure to respond to employee

needs

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The belief that conflict is not only a positive force in a group but also an absolute necessity for a group to perform effectively.

It encourages conflict on the grounds that a harmonious peaceful. The major contribution of the view is recognizing that a minimal level of conflict can help keep a group creative.

Functional conflict Dysfunctional conflict

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Surfaces important problems so they can be addressed.

Causes careful consideration of decisions.

Increases information available for decision making.

Provides opportunities for creativity.

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Harms group cohesion. Promotes interpersonal hostilities. Can decrease work productivity and job

satisfaction. Can contribute to absenteeism and job

turnover.

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Task Conflict Conflicts over content and goals of the

work Low-to-moderate levels of this type are

FUNCTIONAL Relationship Conflict

Conflict based on interpersonal relationships

Almost always DYSFUNCTIONAL Process Conflict

Conflict over how work gets done Low levels of this type are FUNCTIONAL

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Target corporation investor, WilliamAckman tried, unsuccessfully, formany years to convince the retailerto change its business strategy toimprove performance and boostshareholder returns. He asked shareholders to elect

candidates who would bring new ideas to Target’s board, which he claimed was slow in making critical decisions. After a long battle that cost Target millions of dollars in defending itself, the shareholders voted to keep the current board members.

Ackman is shown here meeting with the media after losing the battle.

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Argues that instead of encouraging ‘’Good’’ or discouraging ‘’Bad’’ conflict its more important to resolve naturally occurring conflicts productively.

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We will focus on each step in a moment…

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Communication Semantic difficulties, misunderstandings, over

communication 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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Important stage for two reasons:1. Conflict is defined

▪ Perceived Conflict▪ Awareness by one or more parties of the existence of

conditions that create opportunities for conflict to arise

2. Emotions are expressed that have a strong impact on the eventual outcome

▪ Felt Conflict▪ Emotional involvement in a conflict creating anxiety,

tenseness, frustration, or hostility

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Intentions Decisions to act in a given way Note: behavior does not always accurately

reflect intent Dimensions of conflict-handling

intentions: Cooperativeness

▪ Attempting to satisfy the other party’sconcerns

Assertiveness▪ Attempting to satisfy

one’s own concerns

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Competing

A desire to satisfy one’s interests, regardless of the impact on the other party to the conflict.Collaborating

A situation in which the parties to a conflict each desire to satisfy fully the concerns of all parties.Avoiding

The desire to withdraw from or suppress a conflict.

Accommodating

The willingness of one party in a conflict to place the opponent’s interests above his or her own.

Compromising

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

Conflict Management The use of resolution and stimulation

techniques to achieve the desired level of conflict

Conflict-Intensity Continuum

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Functional◦ 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 and change

Dysfunctional◦ Development of discontent◦ Reduced group

effectiveness◦ Retarded communication◦ Reduced group

cohesiveness◦ Infighting among group

members overcomes group goals

Managing Functional Conflict◦ Reward dissent and punish

conflict avoiders

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IBM benefits from the diversityof its employees who engage infunctional conflict that improvesthe company’s performance. For innovation to flourish, IBM

needs different employee experiences, perspectives, skills, ideas, interests, information, and thinking.

IBM employees shown herebroaden their diversity

experiencesand perspectives by participating

inoverseas assignments in

emergingmarkets.

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Conflict Resolution Techniques

◦ Problem solving◦ Super ordinate goals◦ Expansion of resources◦ Avoidance◦ Smoothing◦ Compromise◦ Authoritative

command◦ Altering the human

variable◦ Altering the structural

variables

Conflict Stimulation Techniques

◦ Bringing in outsiders◦ Communication◦ Restructuring the

organization◦ Appointing a devil’s

advocate

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Negotiation (Bargaining) A process in which two or more parties

exchange goods or services and attempt to agree on the exchange rate for them

Two General Approaches: Distributive Bargaining

▪ Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation

Integrative Bargaining▪ Negotiation that seeks one or more settlements

that can create a win-win solution

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United Auto Workers officials (left)and Ford Motor Company officialsshake hands during news

conferencefor the start of national negotiationsin July 2011. Both UAW andFord say that they are committedto integrative bargaining in findingmutually acceptable solutionsto create a win-win settlement thatwill help boost their

competitivenesswith other automakers in theUnited States and abroad.

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Bargaining Characteristic Distributive Bargaining Integrative Bargaining

Goal Get all the pie you can Expand the pie

Motivation Win-Lose Win-Win

Focus Positions Interests

Information Sharing Low High

Duration of Relationships Short-Term Long-Term

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Distributive

Integrative

Research shows that when you’re engaged in distributive bargaining, one of the best things you can do is make the first offer, and make it an aggressive one. Shows power. Establishes an anchoring bias.

Another distributive bargaining tactic is revealing a deadline.

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Why don’t we see more integrative bargaining in organizations? The answer lies in the conditions necessary

for this type of negotiation to succeed. ▪ Parties who are open with information and candid

about their concerns.▪ A sensitivity by both parties to the other’s needs.▪ The ability to trust one another.▪ A willingness by both parties to maintain

flexibility. These conditions seldom exist in

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Compromise might be your worst enemy in negotiating a win-win agreement. The reason is that compromising

reduces the pressure to bargain integratively.

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BATNA The Best Alternative To a Negotiated Agreement

The lowest acceptable value (outcome) to an individual for a negotiated agreement

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Before you start negotiating, you need to do your

homework.What’s the nature of the conflict?What do you want from the

negotiation?What are your goals?You also want to assess what you

think are the other party’s goals.14-31

Once you’ve done your planning and developed a strategy, you’re ready to begin defining with the other party the ground rules and procedures of the negotiation itself.

Who will do the negotiating?Where will it take place?

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When you have exchanged initial positions, both you and the other party will explain, amplify, clarify, bolster, and justify your original demands.

Provide the other party with any documentation that helps support your position.

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The essence of the negotiation process is the actual give-and-take in trying to hash out an agreement. This is where both parties will undoubtedly need to make concessions.

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The final step in the negotiation process is formalizing the agreement you have worked out and developing any procedures necessary for implementing and monitoring it.

For most cases, however, closure of the negotiation process is nothing more formal than a handshake.

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In May 2012, Apple CEO Tim Cook and Samsung CEO Gee-Sung Choi met with a judge in the U.S. District Court of Northern California in an attempt to reach a settlement in a high-profile U.S. patent case.

Back in April 2011, Apple had filed a lawsuit accusing Samsung of copying the “look and feel” of the iPhone when the Korean company created its Galaxy line of phones.

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The Role of Mood & Personality Traits in Negotiation Positive moods positively affect

negotiations Traits do not appear to have a

significantly direct effect on the outcomes of either bargaining or negotiating processes (except extraversion, which is bad for negotiation effectiveness)

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

Men and women with similar power bases use the same negotiating styles.

Women’s attitudes toward negotiation and their success as negotiators are less favorable than men’s.

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Cultural Differences in Negotiations Multiple cross-cultural studies on

negotiation styles, for instance:▪ American negotiators are more likely than

Japanese bargainers to make a first offer▪ North Americans use facts to persuade; Arabs

use emotion; and Russians use asserted ideals

▪ Brazilians say “no” more often than Americans or Japanese

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In this photo, Japanese labor unionleader Hidekazu Kitagawa (right)presents the group’s annual wageand benefits demands to Ikuo Mori,president of Fuji Heavy Industries,Ltd., the manufacturer of Subaruautomobiles. Studies on how

negotiatingstyles vary across nationalcultures reveal that the generallyconflict-avoidant Japanese

negotiatorstend to communicate indirectlyand use a more polite

conversationalstyle. Their style of interactionis less aggressive than otherCultures.

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Personality Traits Extroverts and agreeable people are weaker at

distributive negotiation; disagreeable introverts are best

Intelligence is a weak indicator of effectiveness Mood and Emotion

Ability to show anger helps in distributive bargaining

Positive moods and emotions help integrative bargaining

Gender Men and women negotiate the same way, but

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Four Basic Third-Party Roles Mediator

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

Arbitrator▪ 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 opponent

Consultant▪ An impartial third party, skilled in conflict management, who

attempts to facilitate creative problem solving through communication and analysis

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Choose an authoritarian management style

Be certain to communicate with logic Seek integrative solutions Avoid an issue when it is trivial Build trust by accommodating others Consider compromising when goals are

important Try to find creative ways to achieve the

objectives of both parties

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Conflict is a reality that crosses all organizational boundaries to affect individuals, groups and disciplines.

Administrators must recognize that conflict exists, and bring it out into the open so that the issue can be effectively dealt with.

Understanding conflict will enable administrators to deal more effectively.

Handled properly through an appropriate conflict management style.

"it is to be hoped that ... we shall always have conflict, the kind which leads to invention, to the emergence of new values“ (Marry Parker)

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