Conflict and Negotiation 15 Conflict and Negotiation © 2009 Prentice-Hall Inc. All rights reserved.

Chapter Learning Objectives After studying this chapter, you should be able to: Define conflict. Differentiate between the traditional, human relations, and interactionist views of conflict. Outline the conflict process. Define negotiation. Contrast distributive and integrative bargaining. Apply the five steps in the negotiation process. Show how individual differences influence negotiations. Assess the roles and functions of third-party negotiations. Describe cultural differences in negotiations. © 2009 Prentice-Hall Inc. All rights reserved.

Conflict Defined 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 That point in an ongoing activity when an interaction “crosses over” to become an interparty conflict Encompasses a wide range of conflicts that people experience in organizations Incompatibility of goals Differences over interpretations of facts Disagreements based on behavioral expectations © 2009 Prentice-Hall Inc. All rights reserved.

Transitions in Conflict Thought Traditional View of Conflict The belief that all conflict is harmful and must be avoided Prevalent view in the 1930s-1940s Conflict resulted from: Poor communication Lack of openness Failure to respond to employee needs © 2009 Prentice-Hall Inc. All rights reserved.

Continued Transitions in Conflict Thought Human Relations View of Conflict The belief that conflict is a natural and inevitable outcome in any group Prevalent from the late 1940s through mid-1970s 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 Current view © 2009 Prentice-Hall Inc. All rights reserved.

Forms of Interactionist Conflict Functional Conflict Conflict that supports the goals of the group and improves its performance Dysfunctional Conflict Conflict that hinders group performance © 2009 Prentice-Hall Inc. All rights reserved.

Types of Interactionist Conflict Task Conflict Conflicts over content and goals of the work Low-to-moderate levels of this type are FUNCTIONAL Relationship Conflict Conflict based on interpersonal relationships Almost always DYSFUNCTIONAL Process Conflict Conflict over how work gets done Low levels of this type are FUNCTIONAL © 2009 Prentice-Hall Inc. All rights reserved.

The Conflict Process We will focus on each step in a moment… E X H I B I T 15-1 © 2009 Prentice-Hall Inc. All rights reserved.

Stage I: Potential Opposition or Incompatibility Communication Semantic difficulties, misunderstandings, and “noise” Structure Size and specialization of jobs Jurisdictional clarity/ambiguity Member/goal incompatibility Leadership styles (close or participative) Reward systems (win-lose) Dependence/interdependence of groups Personal Variables Differing individual value systems Personality types © 2009 Prentice-Hall Inc. All rights reserved.

Stage II: Cognition and Personalization Important stage for two reasons: Conflict is defined Perceived Conflict Awareness by one or more parties of the existence of conditions that create opportunities for conflict to arise Emotions are expressed that have a strong impact on the eventual outcome Felt Conflict Emotional involvement in a conflict creating anxiety, tenseness, frustration, or hostility © 2009 Prentice-Hall Inc. All rights reserved.

Stage III: Intentions Intentions Decisions to act in a given way Note: behavior does not always accurate reflect intent Dimensions of conflict-handling intentions: Cooperativeness Attempting to satisfy the other party’s concerns Assertiveness one’s own concerns Source: K. Thomas, “Conflict and Negotiation Processes in Organizations,” in M.D. Dunnette and L.M. Hough (eds.), Handbook of Industrial and Organizational Psychology, 2nd ed., vol. 3 (Palo Alto, CA: Consulting Psychologists Press, 1992), p. 668. With permission. E X H I B I T 15-2 © 2009 Prentice-Hall Inc. All rights reserved.

Stage IV: Behavior Conflict Management Conflict-Intensity Continuum The use of resolution and stimulation techniques to achieve the desired level of conflict Conflict-Intensity Continuum Source: Based on S.P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp. 93–97; and F. Glasi, “The Process of Conflict Escalation and the Roles of Third Parties,” in G.B.J. Bomers and R. Peterson (eds.), Conflict Management and Industrial Relations (Boston: Kluwer-Nijhoff, 1982), pp. 119–40. E X H I B I T 15-3 © 2009 Prentice-Hall Inc. All rights reserved.

Conflict Resolution Techniques Problem solving Superordinate goals Expansion of resources Avoidance Smoothing Compromise Authoritative command Altering the human variable Altering the structural variables Communication Bringing in outsiders Restructuring the organization Appointing a devil’s advocate Source: Based on S. P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp. 59–89 E X H I B I T 15-4 © 2009 Prentice-Hall Inc. All rights reserved.

Stage V: Outcomes Functional Dysfunctional Increased group performance Improved quality of decisions Stimulation of creativity and innovation Encouragement of interest and curiosity Provision of a medium for problem-solving Creation of an environment for self-evaluation and change Dysfunctional Development of discontent Reduced group effectiveness Retarded communication Reduced group cohesiveness Infighting among group members overcomes group goals Creating Functional Conflict Reward dissent and punish conflict avoiders © 2009 Prentice-Hall Inc. All rights reserved.

Negotiation Negotiation (Bargaining) Two General Approaches: A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them Two General Approaches: Distributive Bargaining Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation Integrative Bargaining Negotiation that seeks one or more settlements that can create a win-win solution © 2009 Prentice-Hall Inc. All rights reserved.

Distributive versus Integrative Bargaining Bargaining Characteristic Distributive Bargaining Integrative Bargaining Goal Get all the pie you can Expand the pie Motivation Win-Lose Win-Win Focus Positions Interests Information Sharing Low High Duration of Relationships Short-Term Long-Term Mine Yours Source: Based on R. J. Lewicki and J. A. Litterer, Negotiation (Homewood, IL: Irwin, 1985), p. 280. Mine Yours Integrative Distributive E X H I B I T 15-5 © 2009 Prentice-Hall Inc. All rights reserved.

Bargaining Tactics and the Bargaining Zone Distributive Tactics Make an aggressive first offer Reveal a deadline Integrative Tactics Bargain in teams Put more issues on the table Don’t compromise E X H I B I T 15-6 © 2009 Prentice-Hall Inc. All rights reserved.

The Negotiation Process BATNA The Best Alternative To a Negotiated Agreement The lowest acceptable value (outcome) to an individual for a negotiated agreement The “Bottom Line” for negotiations E X H I B I T 15-7 © 2009 Prentice-Hall Inc. All rights reserved.

Individual Differences in Negotiation Effectiveness Personality Traits Extroverts and agreeable people weaker at distributive negotiation – disagreeable introvert is best Intelligence is a weak indicator of effectiveness Mood and Emotion Ability to show anger helps in distributive bargaining Positive moods and emotions help integrative bargaining Gender Men and women negotiate the same way, but may experience different outcomes Women and men take on gender stereotypes in negotiations: tender and tough Women are less likely to negotiate © 2009 Prentice-Hall Inc. All rights reserved.

Third-Party Negotiations Four Basic Third-Party Roles 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. 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 © 2009 Prentice-Hall Inc. All rights reserved.

Global Implications Conflict and Culture Japanese and U.S. managers view conflict differently U.S. managers more likely to use competing tactics while Japanese managers are likely to use compromise and avoidance Cultural Differences in Negotiations Multiple cross-cultural studies on negotiation styles, for instance: American negotiators are more likely than Japanese bargainers to make a first offer North Americans use facts to persuade, Arabs use emotion, and Russians used asserted ideals Brazilians say “no” more often than Americans or Japanese © 2009 Prentice-Hall Inc. All rights reserved.

Summary and Managerial Implications Conflict can be constructive or destructive Reduce excessive conflict by using: Competition Collaboration Avoidance Accommodation Compromise Integrative negotiation is a better long-term method E X H I B I T 15-8 © 2009 Prentice-Hall Inc. All rights reserved.

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