Conflict and Negotiation Chapter 13 Organizational Behavior: Foundations, Realities, & Challenges Nelson & Quick, 5th edition Conflict and Negotiation

Nature of Organizational Conflict Conflict – any situation in which incompatible goals, attitudes, emotions, or behaviors lead to disagreement or opposition between two or more parties Functional Conflict – a healthy, constructive disagreement between two or more people Dysfunctional Conflict – an unhealthy, destructive disagreement between two or more people 2

Emotional Intelligence (EI) the power to control one’s emotions perceive emotions in others adapt to change manage adversity

Importance of Conflict Management Skills “As managers we spend about 21% of our time dealing with conflict.” Conflict management skills predict managerial success High Emotional Intelligence (EI) needed to manage conflict EI is valid across cultures

Consequences of Conflict Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 4

Diagnosing Conflict Examine the issue Analyze the context Know the parties involved

Questions to Use When Diagnosing Conflict Yes No Are the parties approaching the conflict from a hostile standpoint? Is the outcome likely to be a negative one for the organization? Do the potential losses of the parties exceed any potential gains? Is energy being diverted from goal accomplishment? YES = dysfunctional

Causes of Conflict in Organizations Structural Factors Specialization Interdependence Common resources Goal differences Authority relationships Status inconsistencies Jurisdictional ambiguities Personal Factors Skills and abilities Personalities Perceptions Values and ethics Emotions Communication barriers Cultural differences Conflict Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 5

Globalization and Conflict Cultural differences and individual differences increase the potential for conflict Individualism/ Collectivism Masculinity/ Femininity Uncertainty/ Avoidance Time Orientation of values Power/ Distance 6

Forms of Conflict in Organizations Interorganizational Conflict – conflict that occurs between two or more organizations Intergroup Conflict – conflict that occurs between groups or teams in an organization Intragroup Conflict – conflict that occurs within groups or teams 8

Forms of Conflict in Organizations Interpersonal Conflict – conflict that occurs between two or more individuals Intrapersonal Conflict – conflict that occurs within an individual 8

Managing Interpersonal Conflict Understand power networks Recognize defense mechanisms Develop strategies to deal with difficult people

Forms of Intrapersonal Conflict Interrole Conflict – a person’s experience of conflict among the multiple roles in his/her life Intrarole Conflict – conflict that occurs within a single role, such as when a person receives conflicting messages from role senders about how to perform a certain role Person–role Conflict – conflict that occurs when an individual is expected to perform behaviors in a certain role that conflict with his/her personal values 8

Resolving Intrapersonal Conflict Use self-analysis Diagnose the situation; ask Does the organization values match my own? Ask role senders what is expected Use political skills to buffer negative effects of role conflict stress

Ineffective Techniques for Dealing with Conflict Nonaction Character Assassination Secrecy Conflict Due Process Nonaction Administrative Orbiting 20

Effective Techniques for Dealing with Conflict Superordinate Goals Confronting and Negotiating Expanding Resources Conflict Changing Structure Changing Personnel 20

Negotiation Negotiation – a joint process of finding a mutually acceptable solution to a complex conflict Two or more people involved Conflict of interest exists Willing to negotiate for a better outcome Parties prefer to work together

Approaches to Negotiation Distributive Bargaining – the goals of the parties are in conflict, and each party seeks to maximize its resources

Approaches to Negotiation Integrative Negotiation – focuses on the merits of the issues and seeks a win–win solution

Conflict Management Styles Avoiding – deliberate decision to take no action on a conflict or to stay out of a conflict Accommodating – concern that the other party’s goals be met but relatively unconcerned with getting own way Competing – satisfying own interests; willing to do so at other party’s expense 21

Conflict Management Styles Compromising – each party gives up something to reach a solution Collaborating – arriving at a solution agreeable to all through open and thorough discussion 21

Creating a Conflict-Positive Organization Value diversity and confront differences Seek mutual benefits, and unite behind cooperative goals Conflict Positive Take stock to reward success and learn from mistakes Empower employees to feel confident and skillful

Conflict Management Tools Ability to reduce organizational toxins High emotional intelligence Negotiation skills