Conflict Management Dr. Monika Renard Associate Professor, Management College of Business

Conflict n “A perceived difference between two or more parties that results in opposition.”

Conflict

Causes of Conflict Scarce Resources Goal incompat-. ability Poorly designed reward system Task inter- dependence Communication failures Individual differences Lack of peacemaking skills Value differences

Understanding Conflict— Destructive Effects n What do you think of when you hear the term “conflict?” n How can conflict be destructive? –Competitive processesBlurred issues –Misperception and biasRigid commitments –Decreased communicationEmotionality –Magnified differences, minimized similarities

Benefits of Conflict n How can conflict be constructive? –Aware of problems--Personal development –Org’l change--Psychological development –Strengthens relationships--Stimulating and fun –Awareness of self and others n What can be learned from conflict handled constructively?

Conflict and Group Performance Performance Level of Conflict Effects of conflict on group performance Some conflict is beneficial

Conflict Handling Styles Compromising Concern for Other Concern for Self Hi Hi Low Avoiding Collaborating Accommodating Competing

Avoiding n Ignoring or suppressing conflict in the hope that it will go away or not become too disruptive n Trivial, no choice, too much disruption, cool down, gather information, others can resolve.

Accommodating n Focusing on allowing the desires of the other party to prevail n You are wrong, issues are important to others, social credits, minimize losses, harmony.

Competing n Attempting to win at the other party’s expense. Win-lose n Quick action vital, unpopular actions, vital to welfare, against those who take advantage of noncompetitive behavior.

Compromising n Having each party give up some desired outcomes to get other desired outcomes. Win some, lose some. n Not worth the extra effort, mutually exclusive goals, temporary settlements, expedient solutions under time pressure, backup to competing or collaborating.

Collaborating n Devising solutions that allow both parties to achieve their desired outcomes Both win at least their major issues. n Finding integrative solution, merge insights, gain commitment, work through feelings. Win-Win

Ugli Orange Case n I am Mr. Cardoza. I will auction off all my Ugli oranges (in one lot) to the highest bidder in this room. –I will NOT accept less than $250,000 for the oranges. n Meet with the other firm’s representative and decide on a course of action. Then pick a spokesperson who will tell me: –What do you plan to do? –If you want to buy the oranges, what price will you offer? –To whom (one person) and how shall I deliver the oranges?

Discussion and Conclusions n What conflict management style did you use? –Competitive, Compromising, Accommodating, Avoiding, Collaborating? n Was there full disclosure? How much info shared? n Did the parties trust one another? Why? –What is the relationship between trust and disclosure of info? n How creative and/or complex were the solutions? If very complex, why? –How does mistrust affect the creativity or complexity of bargaining agreements?

Ways to Manage Conflict nUnderstand Conflict –Positive and negative nUse Correct Conflict Management Styles –Avoid, Accommodate, Compete, Compromise, Collaborate nImprove Communication –Listen Well –Speak Clearly nUnderstand Individual Differences –Men and Women, Ethnicity –Personality nAvoid Biases –Cognitive biases, framing nUse Negotiation –Win-win (integrative) –Win-lose (distributive) nUse Mediation

Escalating Conflict n Other people become involved and take sides n One or both parties feel threatened n No interest in maintaining the relationship n A history of unproductive, negative conflict. n An increase in indirect expression of anger, fear, or frustration. n Important needs not acknowledged/met. n Lack of skills necessary for peacemaking.

De-Escalating Conflict n Parties focus on the problem, not each other. n Anger, fear, frustration expressed directly, rather than indirectly. n Threats are reduced or eliminated. n Parties have cooperated well prior to the dispute. n Needs are openly discussed. n Parties are able to use their peacemaking skills.

Reducing and Resolving Conflict n Improve communication n Understand individual differences n Use negotiation n Use mediation or arbitration

Change Situational Factors n Physical arrangement n Resources: more, reassigned n Task cooperation needed n Super-ordinate goals n Folly of rewarding A while hoping for B