Module 16 Conflict and Negotiation

Module 16 What should we know about dealing with conflict? How can we negotiate successfully?

16.1 Dealing With Conflict Conflicts can occur over substantive or emotional issues Conflicts can be both functional and dysfunctional Organizations have many sources of potential conflict People use different interpersonal conflict management styles Structural approaches can help deal with conflicts in organizations

DEALING WITH CONFLICT Substantive and Emotional Conflict Conflict –Disagreement among people Substantive conflict –Disagreement over goals, tasks, allocation of resources, policies, procedures Emotional Conflict –Disagreements involving distrust, anger, dislike, fear, resentment, relationships

DEALING WITH CONFLICT Functional and Dysfunctional Conflict Functional conflict –Constructive, creates greater effort and creative problem solving Dysfunctional conflict –Destructive, hurts task performance

DEALING WITH CONFLICT Functional and Dysfunctional Conflict

DEALING WITH CONFLICT Sources of Conflict caused by incompatible goals or expectations Intrapersonal occurs when a person selects between two positive and equally attractive alternatives Approach-approach caused by incompatible goals or expectations Avoidance-avoidance between individuals and may be over substantive or purely emotional Interpersonal occurs between representatives of different groups expectations Intergroup occurs between representatives of different organizations Interorganizational

DEALING WITH CONFLICT Conflict Management Styles

DEALING WITH CONFLICT Structural Approaches Management actions that can help bring a resolution to a conflict Make more resources availableAppealing to higher-level goalsChanging the peopleAltering the physical environmentIntegrating devicesChanging reward systemsChanging policies and proceduresTraining in interpersonal skills

16.2 Successful Negotiation Negotiation is a process of reaching agreement Negotiation can be approached in distributive or integrative ways Integrative agreements require commitment, trust and information

16.2 CONTINUED Successful Negotiation Successful negotiation should meet high ethical standards Negotiators should guard against common negotiation pitfalls Mediation and arbitration are forms of third-party negotiation

SUCCESSFUL NEGOTIATION Negotiation Negotiation –Process of making joint decisions when parties have alternative preferences Effective Negotiation –Resolves the issue and maintaining positive relations between the parties

SUCCESSFUL NEGOTIATION Negotiation focus on outcomes Substance goals focus on the people issues and procedures Relationship goals

SUCCESSFUL NEGOTIATION Negotiation Distributive negotiation –Hard Competitive, focus on self-interest, win at all costs –Soft Back off and accepts loss to “get it over with” Integrative negotiation –Interests of all parties are considered and valued

Integrative Agreements –Require commitment, trust and information –Fisher and Ury’s four rules: Separate the people from the problem.Focus on interests, not on positions.Generate many alternatives before deciding what to do.Insist that results be based on some objective standard. SUCCESSFUL NEGOTIATION Integrative Agreements

SUCCESSFUL NEGOTIATION Ethics Successful negotiations should meet high ethical standards

SUCCESSFUL NEGOTIATION Negotiation problems Common pitfalls in negotiations fails to realize that the pie can be expanded or better utilized for everyone’s benefit Myth of the “fixed pie” Becoming committed to previously stated demands and allowing ego to get in the way Non-rational escalation of conflict ignoring the other party’s needs Overconfidence and ignoring the other’s needs poor communication Too much telling and too little hearing Misunderstands culture of negotiator from another culture Premature cultural comfort

SUCCESSFUL NEGOTIATION Third Party Negotiations Mediation –Neutral third party (mediator) tries to improve communication and keep negotiations focused on relevant issues Arbitrator –Neutral third party (arbitrator) considers facts and acts as a judge to issue a final binding decision

SUCCESSFUL NEGOTIATION Module 16 Case AFL-CIO – Managing Dissent While Supporting Labor