Chapter 14: Conflict & Negotiation Question: What is conflict? Answer: 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.

Transitions in Conflict Thought The traditional view All conflict is harmful and must be avoided The human relations view Conflict is natural and inevitable in any group so accept it The interactionist view It is a positive force and absolutely necessary for a group to perform effectively

Functional vs. Dysfunctional Conflict Functional = supports the goals of the group and improves its performance Dysfunctional = hinders group performance Task conflict = occur over content and goals of the group Relationship conflict = interpersonal relationships Process conflict = how work gets done

The Conflict Process

Dimensions of Conflict-Handling Intentions

Negotiation Negotiation is a process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for them. Bargaining strategies Distributive bargaining (resources are FIXED – a “win – lose” situation) Integrative bargaining (one or more settlements that can create a “win-win situation)

Distributive versus Integrative Bargaining

The Negotiation Process Preparation and planning BATNA = Best Alternatives To a Negotiated Agreement Definition of ground rules Clarification and justification Bargaining and problem solving Closure and implementation

Issues in Negotiation Personality Traits Gender Differences Cultural Differences Third-Party Negotiations Mediators Arbitrators Conciliators Consultants

Summary and Implications for Managers Conflict can be either constructive or destructive to the functioning of a group. An optimal level of conflict: prevents stagnation, stimulates creativity, releases tension and initiates the seeds for change Inadequate or excessive levels of conflict can hinder group effectiveness. Don’t assume there's one conflict-handling intention that is always best. Use competition when quick, decisive action is vital Use collaboration to find an integrative solution Use avoidance when an issue is trivial Use accommodation when you find you’re wrong Use compromise when goals are important

Conflict and Unit Performance