McGraw-Hill/Irwin© 2008 The McGraw-Hill Companies, Inc. All rights reserved. 13 Conflict and Negotiation in the Workplace

McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 13-2 Conflict at Microsoft Various sources conclude that Microsoft is riddled with dysfunctional conflict that could soon hamper its ability to remain competitive. “Pretty much across the board people are saying that Microsoft is dysfunctional,” concludes one industry analyst. “They are not cooperating across business groups.”

McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 13-3 Conflict Defined The process in which one party perceives that its interests are being opposed or negatively affected by another party.

McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 13-4 The Conflict Process Sources of Conflict ManifestConflict ConflictOutcomes Conflict Perceptions Conflict Emotions Conflict Escalation Cycle

McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 13-5 Organizational Conflict Outcomes Potential benefits –Improves decision making –Strengthens team dynamics Dysfunctional outcomes –Diverts energy and resources –Weakens knowledge management –Increases frustration, job dissatisfaction, stress, turnover and absenteeism

McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 13-6 Task vs. Socioemotional Conflict Constructive (task-related) conflict –Conflict is aimed at issue, not parties –Helps recognize problems, identify solutions, and understand the issues better –Potentially healthy and valuable Socioemotional (relationship) conflict –Conflict viewed as a personal attack –Introduces perceptual biases –Distorts information processing

McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 13-7 Minimizing Socioemotional Conflict 1.Emotional intelligence –Better able to regulate emotions –View others’ emotions as information 2.Cohesive team –More trust and latitude –Understand other team members better –Motivated to minimize escalating conflict 3.Supportive team norms –Appreciate honest dialogue without personal affront –Some norms might discourage displaying negative emotions

McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 13-8 Differentiation Task Interdependence Different values/beliefs Explains cross-cultural and generational conflict Conflict increases with interdependence Higher risk that parties interfere with each other IncompatibleGoals One party’s goals perceived to interfere with other’s goals more Sources of Conflict

McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 13-9 Ambiguous Rules Communication Problems Creates uncertainty, threatens goals Without rules, people rely on politics Increases stereotyping Reduces motivation to communicate Escalates conflict when arrogant Scarce Resources Motivates competition for the resource Sources of Conflict (con’t)

McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide NHLPA Changes Conflict Styles Outgoing National Hockey League Players’ Association (NHLPA) boss Bob Goodenow (left) was called the Darth Vader of hockey, because of his forcing style of conflict management with NHL owners. Taking his place is Ted Saskin (right), whose diplomatic problem- solving conflict resolution style couldn’t be more different from Goodenow’s.

McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide Assertiveness Cooperativeness ForcingProblem-Solving Compromising AvoidingYielding High Low High Conflict Management Styles

McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide Choosing the Best Conflict Style Problem solving –Often best because only style that seeks an optimal outcome –Doesn’t work when interests perfectly opposing –Difficult when parties lack trust/openness Avoiding –Best when socioemotional conflict is high –Problem: doesn’t resolve conflict source, so may produce long- term frustration Yielding –May be necessary when: 1.the other party has substantially more power 2.the issue is less important to you as to the other party –Problem: Other party develops higher future expectations

McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide Choosing the Best Conflict Style (con’t) Forcing –May be necessary when: 1.you know you are correct & dispute requires quick solution 2.the other party would take advantage of more cooperative strategies –Problem: Fuels socioemotional conflict Compromising –Best when 1.little hope for mutual gain 2.both parties have equal power 3.both parties need to settle differences quickly –Problem: “Good enough” solution that overlooks better solutions

McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide Emphasizing Superordinate Goals Emphasizing common objectives rather than conflicting sub-goals Reduces goal incompatibility and differentiation

McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide Toyota Drums Out Differences Employees at Toyota Motor Sales U.S.A. are drumming out their differences in the car company’s drum room. Typically in groups of 15 to 50 from one department, employees bang on various percussion instruments. Most groups soon find a common beat without any guidance or conductor. Edward Carreon/Newhouse News Service

McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide Reducing Differentiation Remove sources of different values and beliefs Move employees around to different jobs, departments, and regions Other ways to reduce differentiation: –Common dress code/status –Common work experiences Edward Carreon/Newhouse News Service

McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide Better Communication/Understanding Employees understand and appreciate each other’s views through communication –Relates to contact hypothesis Two warnings: 1.Apply communication/understanding after reducing differentiation 2.A Western strategy that may conflict with values/traditions in other cultures

McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide Other Ways to Manage Conflict Reduce Task Interdependence –Dividing shared resources –Combine tasks –Use buffers Increase Resources –Duplicate resources Clarify Rules and Procedures –Clarify resource distribution –Change interdependence

McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide Your Positions InitialTarget InitialTarget Opponent’s Positions Area of Potential Agreement Bargaining Zone Model Resistance

McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide Situational Influences on Negotiation Location Physical setting Time passage and deadlines Audience © Corel Corp. With permission.

McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide Effective Negotiation Behavior Preparation and goal setting Gathering information Communicating effectively Making concessions © Corel Corp. With permission.

McShane/Von Glinow OB4e© 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide Types of Third Party Intervention Mediation Arbitration Inquisition Level of Process Control Level of Outcome Control High Low

McGraw-Hill/Irwin© 2008 The McGraw-Hill Companies, Inc. All rights reserved. 13 Conflict and Negotiation in the Workplace