1. © 2003 McGraw-Hill Ryerson Ltd. Chapter Eight Conflict and Negotiation

2. © 2003 McGraw-Hill Ryerson Ltd. Chapter Eight Outline A Modern View of Conflict A Conflict Continuum Functional versus Dysfunctional Conflict Causes of Conflict Desired Outcomes of Conflict Major Sources of Conflict Personality Conflicts Intergroup Conflict Cross-Cultural Conflict

3. © 2003 McGraw-Hill Ryerson Ltd. Managing Conflict Creating Functional Conflict Alternative Styles for Handling Dysfunctional Conflict Practical Lessons from Conflict ResearchNegotiating Two Basic Types of Negotiation Added-Value Negotiation Ethical Pitfalls in Negotiation Practical Lessons from Negotiation Research Third-Party Interventions: Alternative Dispute Resolution Chapter Eight Outline (cont’d)

4. © 2003 McGraw-Hill Ryerson Ltd. Functional conflict Functional conflict serves the organization’s interests Dysfunctional conflict Dysfunctional conflict threatens the organization’s interests. Conflict Conflict is a process in which one party perceives that its interests are being opposed or negatively affected by another party. Conflict

5. © 2003 McGraw-Hill Ryerson Ltd. Incompatible personalities or value systems. Overlapping or unclear job boundaries. Competition for limited resources. Interdepartment/intergroup competition. Inadequate communication. Interdependent tasks. Organizational complexity. Causes of Conflict

6. © 2003 McGraw-Hill Ryerson Ltd. 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 conflicts. Causes of Conflict (cont’d)

7. © 2003 McGraw-Hill Ryerson Ltd. Agreement Agreement : Strive for equitable and fair agreements that last. Stronger relationships: Stronger relationships: Build bridges of goodwill and trust for the future. Learning: Learning: Greater self-awareness and creative problem solving. Desired Outcomes of Conflict

8. © 2003 McGraw-Hill Ryerson Ltd. 1. Follow company policies for diversity, anti- discrimination, and sexual harassment. 2. Investigate and document conflict. 3. If appropriate, take corrective action (e.g. feedback). 4. If necessary, attempt informal dispute resolution. 5. Refer difficult conflicts to human resource specialists or hired counselors for formal resolution attempts and other interventions. Tips for Managers Whose Employees Are Having a Personality Conflict

9. © 2003 McGraw-Hill Ryerson Ltd. 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 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. Recommended actions: Level of perceived Inter-group conflict tends to increase when: Minimizing Intergroup Conflict: An Updated Contact Model

10. © 2003 McGraw-Hill Ryerson Ltd. Behaviour Be a good listener Be sensitive to the needs of others Be cooperative, rather than overly competitive Advocate inclusive (participative) leadership Compromise rather than dominate Build rapport through conversations Be compassionate and understanding Avoid conflict by emphasizing harmony Nurture others (develop and mentor) How to Build Cross-Cultural Relationships

11. © 2003 McGraw-Hill Ryerson Ltd. CompetingCollaborating AvoidingAccommodating Compromising LowHigh Low Concern for Self Concern for Others Source: KW Thomas (1992) Conflict and negotiation processes in organizations. In MD Dunnette and LM Hough (eds), Handbook of Industrial and Organizational Psychology (Palo Alto CA: Consulting Psychologists’ Press). Five Conflict-Handling Styles

12. © 2003 McGraw-Hill Ryerson Ltd. Personality traits affect how people handle conflict eg. those with high need for affiliation choose an obliging style Disagreement expressed in an arrogant and demeaning manner produces more negative effects than disagreement in a reasonable manner Aggression breeds aggression As conflict increases, group satisfaction decreases Challenging and clear goals can diffuse conflict Higher levels of conflict erode job satisfaction and internal work motivation Men and women handle conflict similarly Practical Lessons From Conflict Research

13. © 2003 McGraw-Hill Ryerson Ltd. Distributive negotiation: Single issue; fixed-pie; win-lose. Integrative negotiation: More than one issue; win-win. Negotiation Negotiation is a give-and-take decision-making process involving interdependent parties with different preferences. Negotiating

14. © 2003 McGraw-Hill Ryerson Ltd. Negotiators with fixed-pie expectations produced poor joint outcomes Personality characteristics can affect negotiating success; negotiators with high extraversion and high agreeableness do poorly with win-lose negotiations Good and bad moods can affect negotiating plans and outcomes (positively and negatively, respectively) Less understanding of the other party makes cross- cultural negotiations more difficult than negotiations at home Practical Lessons from Negotiation Research

15. © 2003 McGraw-Hill Ryerson Ltd.  Clarify interests.  Identify options.  Design alternative deal packages.  Select a deal.  Perfect the deal. An Integrative Approach: Added-Value Negotiation

16. © 2003 McGraw-Hill Ryerson Ltd. Facilitation: Facilitation: Third party gets disputants to deal directly and constructively with each other. Conciliation: Conciliation: Neutral third party acts as communication link between disputants. Peer review: Peer review: Impartial co-workers hear both sides and render decision that may or may not be binding. Ombudsman: Ombudsman: Respected and trusted member of the organization hears grievances confidentially. Mediation: Mediation: Trained third-party guides disputants toward their own solution. Arbitration: Arbitration: Neutral third-party hears both sides in a court-like setting and renders a binding decision. Alternative Dispute Resolution (ADR) Techniques