1 Conflict and Negotiation OS 386 Nov 7, 2002 Fisher

2 Agenda Discuss conflict and conflict resolution Review some negotiation examples

3 Outcomes of Conflict Not always negative Functional vs. dysfunctional What are some positive outcomes of conflict? Negative outcomes include Stress Process loss Turnover (team or organization)

4 Stimulating Functional Conflict Communication Ambiguous or threatening messages Bringing in outsiders Executives, CEOs Consultants Restructuring the organization Appointing a “ devil ’ s advocate ” Source: Robbins, S.P. (2003). Organizational Behavior. Prentice Hall: Upper Saddle River, NJ.

5 Sources of Conflict Task-based Interdependence Incompatible goals Interpersonal Values and beliefs Personality Source of conflict can drive resolution strategy

6 Resolving Conflict Emphasize superordinate goals Reduce differentiation Improve communication and understanding Reduce task interdependence Increase resources Clarify rules and procedures

7 Conflict Example Charlotte is a salesperson at a furniture store. Her job is to maximize sales. Teri is the credit manager at the store. Her job is to minimize credit losses. What is one potential source of conflict? How could this conflict be resolved?

8 Not just between people Roles can be incompatible Work-family conflict Creates stress, reduces career satisfaction How is the resolution process different?

9 Approaches to resolving conflict Win-win Win-lose Relationship between conflict and communication styles What are long term outcomes of using the win-lose approach?

10 Organizational Justice Fairness in organizational decision making Distributive Procedural Interactional Perceived fairness is related to acceptance of outcomes, withdrawal

11 Negotiation One way of resolving conflict Ideally minimizing losses and maximizing gains for both parties Establish trust Cautiously collaborative Individual differences affect negotiation Negotiation skill Cultural differences can lead to problematic behavioral patterns

12 Third-Party Intervention Mom!!!!!!!!!!!!!! Mediation Arbitration Baseball salaries Process typically starts with mediation, moving to arbitration

13 Arbitration first? Conlon, Moon, & Ng (2002) studied impact of conducting arbitration before mediation Arbitrator made decision, but did not implement Parties then had opportunity to produce a voluntary agreement In lab study, found this model increased number of voluntary agreements However, the process took longer, and people were more competitive Source: Conlon, D.E., Moon, H., & Ng, K.Y. (2002). Journal of Applied Psychology, 87(5),

14 High Profile Dispute Resolution Union negotiations Many product lawsuits Agent Orange Asbestos Sept. 11 Victim Compensation Fund Compensation determined by algorithm created by government, “ Special Master ” Can appeal decisions Is there a neutral third party for ADR?

15 NYPD Hostage Negotiation Series of small agreements Can still get a win-win Active listening is key Use of negotiation teams Team members include Lead Negotiator, Commander, Scribe, and Gopher Roles are clearly specified Face-to-face communication unnecessary Source: Coutu, D.L. (October, 2002). Negotiating without a net: a conversation with the NYPD’s Dominick J. Misino. Harvard Business Review,

16 Key learning points Conflict is not always negative Procedural justice is important in how people react to conflict resolution Communication skills are a key part of negotiation Third-party involvement may be necessary, but voluntary agreement is best

17 For next class Topic: Leadership Read Chapter 14 Who is responsible for providing leadership in organizations? What is the difference between management and leadership? Keep in mind – next exam is Tuesday, Nov. 19 Same format