Review: Key Concepts, Part 4

Distributive versus Integrative Bargaining Bargaining Distributive Integrative Characteristic Bargaining Bargaining Goal Get as much of pie Expand the pie as possible Motivation Win-Lose Win-Win Focus Positions Interests Information Low High Sharing Duration of Short term Long term relationships

The Negotiation Process BATNA The Best Alternative To a Negotiated Agreement; the lowest acceptable value (outcome) to an individual for a negotiated agreement

Third-Party Negotiations 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.

Third-Party Negotiations (cont’d) 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

Transitions in Conflict Thought Traditional View of Conflict The belief that all conflict is harmful and must be avoided Causes Poor communication Lack of openness Failure to respond to employee needs

Transitions in Conflict Thought (cont’d) Human Relations View of Conflict The belief that conflict is a natural and inevitable outcome in any group Interactionist View of Conflict The belief that conflict is not only a positive force in a group but that it is absolutely necessary for a group to perform effectively

The Conflict Process

Dimensions of Conflict-Handling Intentions

Use Competition When quick, decisive action is vital (in emergencies); on important issues Where unpopular actions need implementing (in cost cutting, enforcing unpopular rules, discipline) On issues vital to the organization’s welfare When you know you’re right Against people who take advantage of noncompetitive behavior

Use Collaboration To find an integrative solution when both sets of concerns are too important to be compromised When your objective is to learn To merge insights from people with different perspectives To gain commitment by incorporating concerns into a consensus To work through feelings that have interfered with a relationship

Use Avoidance When an issue is trivial, or more important issues are pressing When you perceive no chance of satisfying your concerns When potential disruption outweighs the benefits of resolution To let people cool down and regain perspective When gathering information supersedes immediate decision When others can resolve the conflict effectively When issues seem tangential or symptomatic of other issues

Use Accommodation When you find you’re wrong and to allow a better position to be heard To learn, and to show your reasonableness When issues are more important to others than to yourself and to satisfy others and maintain cooperation To build social credits for later issues To minimize loss when outmatched and losing When harmony and stability are especially important To allow employees to develop by learning from mistakes

Use Compromise When goals are important but not worth the effort of potential disruption of more assertive approaches When opponents with equal power are committed to mutually exclusive goals To achieve temporary settlements to complex issues To arrive at expedient solutions under time pressure As a backup when collaboration or competition is unsuccessful

Bases of Power: Formal Power Is established by an individual’s position in an organization; conveys the ability to coerce or reward, from formal authority, or from control of information Coercive Power A power base dependent on fear Reward Power Compliance achieved based on the ability to distribute rewards that others view as valuable

Bases of Power: Formal Power (cont’d) Legitimate Power The power a person receives as a result of his or her position in the formal hierarchy of an organization

Bases of Power: Personal Power Expert Power Influence based on special skills or knowledge Referent Power Influence based on possession by an individual of desirable resources or personal traits

Dependency: The Key To Power The General Dependency Postulate The greater Bs dependency on A, the greater the power A has over B Possession/control of scarce organizational resources that others need makes a manager powerful Access to optional resources (e.g., multiple suppliers) reduces the resource holder’s power What Creates Dependency Importance of the resource to the organization Scarcity of the resource Nonsubstitutability of the resource

Preferred Power Tactics by Influence Direction Upward Influence Downward Influence Lateral Influence Rational persuasion Rational persuasion Rational persuasion Inspirational appeals Consultation Pressure Ingratiation Consultation Exchange Ingratiation Legitimacy Exchange Personal appeals Legitimacy Coalitions

Politics Is in the Eye of the Beholder “Political” Label “Effective Management” Label 1. Blaming others vs. Fixing responsibility 2. “Kissing up” vs. Developing working relationships 3. Apple polishing vs. Demonstrating loyalty 4. Passing the buck vs. Delegating authority 5. Covering your rear vs. Documenting decisions 6. Creating conflict vs. Encouraging change and innovation 7. Forming coalitions vs. Facilitating teamwork 8. Whistle blowing vs. Improving efficiency 9. Scheming vs. Planning ahead 10. Overachieving vs. Competent and capable 11. Ambitious vs. Career-minded 12. Opportunistic vs. Astute 13. Cunning vs. Practical-minded 14. Arrogant vs. Confident 15. Perfectionist vs. Attentive to detail

Is a Political Action Ethical? What is the utility of engaging in the behavior? Does the utility balance out any harm done by the action? Does the action conform to standards of equity and justice?