Importance of Conflict Management Skills “As managers we spend about 21% of our time dealing with conflict.” Conflict management skills predict managerial success High Emotional Intelligence (EI) needed to manage conflict

Perspective of Conflict Interactionist view Conflict is valuable to organizations “When two people in business always agree, one of them is unnecessary” “You put a lot of smart people in a room and listen to them duke it out, and the best idea will pop out” View of Michael Eisner, CEO of Disney Minimization view Conflict reduces harmony and should be avoided Norm of agreement

Functional Outcomes Improve quality of decisions Boost innovation and creativity Vent problems and tensions Promote self-evaluation Prentice Hall, 2001 Chapter 13

Dysfunctional Outcomes Impede communication Reduce cohesiveness Replace goals with infighting Prentice Hall, 2001 Chapter 13

Causes of Conflict Perceived fairness of resource allocation decisions Budgets, raises, promotions Structural variables Goal incompatibility Sales department versus credit department Dependence issues One group (accounting) dependent upon another (MIS)

Causes of Conflict Communication problems Personal factors Ambiguity Mixed messages Verbalize one thing, yet your body language says another Jargon (finance, accounting, info systems terminology) Personal factors Personality clashes Type A versus Type B Value systems National culture dimensions Different emphasis on quality or quantity

Types of Conflict Task conflict - conflicts over content and goals of work - low-to-moderate levels usually lead to functional conflicts (i.e., those that support goals of the group and improve performance) ~ stimulation of discussion of ideas Process conflict - conflicts over how work gets done - low levels lead to functional conflicts but intense levels creates task role uncertainty, longer time to complete tasks

Relationship conflict - conflicts resulting from interpersonal relationships - dysfunctional conflict (i.e., hinders group performance) ~ personality clashes, decrease mutual understanding and hinders organizational tasks

Emotions and Conflict Negative emotions (Tension, frustration, hostility) Limits ability to generate solutions Oversimplification of issues Distrust Positive emotions Generate more solutions More creative solutions See the bigger picture

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Stage III: Dimensions of Conflict-handling Styles High Competition Collaboration Compromising Interest in achieving OWN goals Avoidance Accommodation Low Low High Interest in helping the other party to achieve its goals

Conflict-Handling Styles Competing (assertive & uncooperative) “I am right, you are wrong” approach Use in emergency situations The plane is leaving in 5 minutes Short-term relationships, one-time interaction Avoidance (unassertive & uncooperative) Suppress conflict by avoiding it or the other party Use when the matter is trivial Allow other party or yourself time to cool down

Conflict-Handling Styles Accommodating (Unassertive & cooperative) Put the interests of the other party above your own Use when the issues are more important to others than to you Cautions: You may eventually “blow-up” by continuing to put others interests above your own

Conflict-Handling Styles Compromising (the middle ground) Each party intends to or is asked to “give-up” something: “Let’s split the difference” Middle ground results in incomplete satisfaction of both parties concerns Collaborating (assertive & cooperative) “Win-win” strategy Each party seeks to fully satisfy their concerns and the concerns of the other party Searching for a mutually beneficial outcome Commitment to long-term relationships

Ineffective Techniques for Dealing with Conflict Nonaction Character Assassination Secrecy Conflict Due Process Nonaction 20

Organizational Conflict Resolution Techniques Superordinate goals Overarching, shared goal that cannot be attained without cooperation of each of the conflicting parties Altering structural variables Changing the organizational chart Reporting relationships Create joint-task forces Gain appreciation of each others (groups) constraints and needs Altering individuals Human relations training Transfers

Minimizing perceived conflict through fairness Procedural Interactional