Managing Conflict and Negotiation Learning Objectives Define the term conflict, distinguish between functional and dysfunctional conflict, and identify three desired outcomes of conflict. Define personality conflicts, and explain how they should be managed. Discuss the role of in-group thinking in intergroup conflict, and explain what can be done to avoid cross-cultural conflict. Explain how managers can program functional conflict, and identify the five conflict handling styles. Identify and describe at least four alternative dispute resolution (ADR) techniques. Draw a distinction between distributive and integrative negotiation, and explain the concept of added-value negotiation. Chapter Eleven

Conflict 11-1 Conflict: one party perceives its interests are being opposed or set back by another party. Functional conflict: serves organization’s interests. Dysfunctional conflict: threatens organization’s interests. McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Antecedents of Conflict 11-2 Incompatible personalities or value systems. Overlapping or unclear job boundaries. Competition for limited resources. Interdepartment/intergroup competition. Inadequate communication. Interdependent tasks. Organizational complexity. McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Antecedents of Conflict (Cont.) 11-3 Unreasonable or unclear policies, standards, or rules. Unreasonable deadlines or extreme time pressure. Collective decision making Decision making by consensus. Unmet expectations. Unresolved or suppressed conflict. McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Desired Outcomes of Conflict 11-4 Agreement Stronger relationships Learning McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Personality Conflict 11-5 Personality conflict: interpersonal opposition driven by personal dislike or disagreement. McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Tips for Employees Having a Personality Conflict Skills & Best Practices: How to Deal with Personality Conflicts 11-6 Tips for Employees Having a Personality Conflict All employees need to be familiar with and follow company policies for diversity, antidiscrimination, and sexual harassment Communicate directly with the other person to resolve the perceived conflict Avoid dragging coworkers into the conflict. If dysfunctional conflict persists, seek help from direct supervisors or human resource specialists McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Tips for Third-Party Observers of a Personality Conflict Skills & Best Practices: How to Deal with Personality Conflicts (Cont.) 11-7 Tips for Third-Party Observers of a Personality Conflict All employees need to be familiar with and follow company policies for diversity, antidiscrimination, and sexual harassment Do not take sides in someone else’s personality conflict Suggest the parties work things out themselves in a constructive and positive way If dysfunctional conflict persists, refer problem to parties’ direct supervisors McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Tips for Managers Whose Employees are Having a Personality Conflict Skills & Best Practices: How to Deal with Personality Conflicts (Cont.) 11-8 Tips for Managers Whose Employees are Having a Personality Conflict All employees need to be familiar with and follow company policies for diversity, antidiscrimination, and sexual harassment Investigate and document conflict If appropriate, take corrective action If necessary, attempt informal dispute resolution Refer difficult conflicts to human resource specialists or hired counselors for formal resolution attempts and other interventions McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

In-Group Thinking: The Seeds Of Intergroup Conflict 11-9 Members of in-groups view themselves as a collection of unique individuals. In-group members see themselves positively and as morally correct, while they view members of other groups negatively and as immoral. In-groups view outsiders as a threat. In-group members exaggerate the differences between their group and other groups. This typically involves a distorted sense of reality. McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Inter-group conflict tends to increase when: Minimizing Intergroup Conflict: An Updated Contact Model 11-10 Figure 11-1 Level of perceived Inter-group conflict tends to increase when: Recommended actions: Work to eliminate specific negative interactions between groups (and members). Conduct team building to reduce intragroup conflict and prepare employees for cross-functional teamwork. Encourage personal friendships and good working relationships across groups and departments. Foster positive attitudes toward members of other groups (empathy, compassion, sympathy). Avoid or neutralize negative gossip across groups or departments. Conflict within the group is high There are negative interactions between groups (or between members of those groups) Influential third-party gossip about other group is negative McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: How to Build Cross-Cultural Relationships 11-11 Behavior Rank Be a good listener 1 Be sensitive to the needs of others 2 Be cooperative, rather than overly competitive 2 Advocate inclusive (participative) leadership 3 Compromise rather than dominate 4 Build rapport through conversations 5 Be compassionate and understanding 6 Avoid conflict by emphasizing harmony 7 Nurture others (develop and mentor) 8 Tie McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Programming Functional Conflict 11-12 Programmed Conflict: encourages different opinions without protecting management’s personal feelings. Devil’s advocacy: assigning someone the role of critic. Dialectic method: fostering a debate of opposing viewpoints to better understand an issue. McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Techniques for Stimulating Functional Conflict: Devil’s Advocacy 11-13 Figure 11-2 A Devil’s Advocacy Decision Program 1. A Proposed Course of Action is generated 2. A devil’s advocate is assigned to criticize the proposal 3. The critique is presented to key decision makers 4. Any additional information relevant to the issues is gathered 5. The decision to adopt, modify, or discontinue the proposed course of action is taken 6. The decision is monitored McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Techniques for Stimulating Functional Conflict: the Dialectic Method 11-14 Figure 11-2 The Dialectic Decision Method 1. A Proposed Course of Action is generated 2. Assumptions underlying the proposal are identified 3. A conflicting counterproposal is generated based on different assumptions 4. Advocates of each position present and debate the merits of their proposals before key decision makers 5. The decision to adopt either position or some other position is taken 6. The decision is monitored McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Five Conflict Handling Styles 11-15 Figure 11-3 Integrating Obliging High Compromising Concern for Others Dominating Avoiding Low High Low Concern for Self McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Alternative Dispute Resolution (ADR) Techniques 11-16 Alternative Dispute Resolution: avoiding costly lawsuits by resolving conflicts informally or through mediation or arbitration. Techniques: Facilitation Conciliation Peer review Ombudsman Mediation Arbitration McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Negotiation 11-17 Negotiation: give-and-take process between conflicting independent parties. Two types: Distributive Integrative McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Added-Value Negotiation 11-18 Added-Value Negotiation: cooperatively developing multiple-deal packages while building a long-term relationship Five Steps: Clarify interests Identify options Design alternative deal packages Select a deal Perfect the deal McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: Seven Steps To Negotiating Your Salary 11-19 Know the going rate Don’t fudge your past compensation Present cold, hard proof of your value Let the other party name a figure first Don’t nickel-and-dime Avoid extravagant extras Seek incentives and practical perks McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.