1. Managing Conflict and Negotiation Week 9 1

2. Overview  Distinguish task-related from socioemotional conflict.  Discuss the advantages and disadvantages of conflict in organisations.  Identify six sources of organisational conflict.  Outline the five interpersonal styles of conflict management.  Summarise six structural approaches to managing conflict.  Different negotiation approaches  Implications for Managers 2

3. What is Conflict? “ A process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about.” © AFP Photo/HO 3

4. The conflict process Sources of conflict Manifestconflict Conflictoutcomes Conflict perceptions Conflict emotions 4

5. Task-related vs socioemotional conflict Task-related conflict conflict is aimed at issue, not parties basis of constructive controversy helps recognise problems, identify solutions and understand the issues Socioemotional conflict conflict viewed as a personal attack foundation of conflict escalation leads to dissatisfaction, stress and turnover 5

6. Organisational conflict outcomes Dysfunctional outcomes diverts energy and resources encourages organisational politics encourages stereotyping weakens knowledge management Potential benefits improves decision making strengthens team dynamics 6

7. Sources of conflict Goalincompatibility Different values and beliefs Goals conflict with goals of others  Different beliefs due to unique background, experience, training  Caused by specialised tasks, careers  Explains misunderstanding in cross-cultural and merger relations 7

8. Sources of conflict Goalincompatibility Different values and beliefs Taskinterdependence Three levels of interdependence Resource ABC Pooled ABC Sequential A BC Reciprocal 8

9. Sources of conflict GoalIncompatibility Different Values and Beliefs TaskInterdependence ScarceResources Ambiguity Increases competition for resources to fulfil goals  Lack of rules guiding relations  Encourages political tactics 9

10. Sources of conflict GoalIncompatibility Different Values and Beliefs TaskInterdependence ScarceResources Ambiguity CommunicationProblems  Lack of opportunity  reliance on stereotypes  Lack of ability  arrogant communication heightens conflict perception  Lack of motivation  conflict causes lower motivation to communicate, increases stereotyping 10

11. Interpersonal Conflict Management Styles Win-win orientation you believe parties will find a mutually beneficial solution to their disagreement Win-lose orientation you believe that the more one party receives, the less the other receives tends to escalate conflict, use of power/politics 11

12. Assertiveness Cooperativeness ForcingCollaborating Compromising AvoidingAccommodating High Low High Conflict Response Alternatives 12

13. Conflict Response Alternatives The forcing response An attempt to satisfy our own needs at the expense of the needs of the other individual Outcome: you feel vindicated, but the other party feels defeated and possible humiliated The accommodating approach Satisfies the other party’s concerns while neglecting our own Outcome: other person is likely to take advantage of you 13

14. Conflict Response Alternatives cont’d… The avoiding response Neglects the interests of both parties by sidestepping the conflict or postponing a solution. Outcome: interpersonal problems don’t get resolved, causing long-term frustration manifested in a variety of ways The compromising response An attempt to obtain partial satisfaction for both parties Outcome: participants become conditioned to seek expedient, rather than effective solutions 14

15. Conflict Response Alternatives cont’d… The collaborating approach Is an attempt to address fully the concerns of both parties. Often referred to as the ‘problem- solving’ mode Outcome: the problem is most likely to be resolved and both parties feel satisfied that they have been treated fairly 15

16. Structural Approaches to Conflict Management Emphasising superordinate goals Common objectives held by conflicting parties that is more important than their conflicting departmental or individual goals Eg: customer needs, organisation’s overarching values Reducing differentiation Reduce the differences that cause the conflict Eg: encourage generalist careers; common dress code and status; common work experiences © Ed Lallo 16

17. Structural Approaches to Conflict Management cont’d… Improving communication and understanding Employees understand and appreciate each other’s views through communication Eg: informal gatherings; formal dialogue sessions; teambuilding activities Reduce task interdependence Interdependent jobs might be combined so that they form a pooled interdependence Eg: divide shared resources, use buffers 17

18. Structural Approaches to Conflict Management cont’d… Increase resources Need to compare costs of increasing resources with the costs of dysfunctional conflict arising from resource scarcity Clarify rules and procedures Rules establish changes to the terms of interdependence Eg: clarify resource distribution; hours of work 18

19. Negotiation “… the process of making joint decisions when the parties involved have different preferences.” Organisational settings for negotiation Two-party negotiation Group negotiation Intergroup negotiation Constituency negotiation 19

20. Negotiation (cont’d..) 20

21. Negotiation (cont’d..) Negotiation goals and outcomes What are substance goals? What are relationship goals? Effective negotiation occurs when issues of substance are resolved without any harm to the working relationships among the parties involved.” 21

22. Negotiation (cont’d…) Criterion 1.Quality. The negotiation results offer a ‘quality’ agreement that is wise and truly satisfactory to all sides. Criterion 2.Efficiency. The negotiation is ‘efficient’ and no more time consuming or costly than absolutely necessary. Criterion 3.Harmony. The negotiation is ‘harmonious’ and fosters rather than inhibits good interpersonal relations. Three Criteria of An Effective Negotiation 22

23. Negotiation (cont’d..) Ethical aspects of negotiation Motivation behind unethical negotiation Profit motive (the desire of each party to ‘get more’ than the other from the negotiation) Sense of competition (the belief that there are insufficient resources to satisfy everyone’s needs). Concerns for justice (the search by each party for outcomes defined as ‘fair’ only from the narrow perspective of one’s self-interests) 23

24. Different Approaches Distributive negotiation “… is negotiation in which the focus is on ‘positions’ staked out or declared by the parties involved who are each trying to claim certain portions of the available ‘pie’.” Integrative negotiation “… is negotiation in which the focus is on the merits of the issues and the parties involved try to enlarge the available ‘pie’ rather than stake claims to certain portions of it.” 24

25. Managerial Issues Gaining integrative agreements “BATNA = ‘best alternative to a negotiated agreement’, or each party’s position on what they must do if an agreement cannot be reached.” Classic two-party negotiation “The bargaining zone is the zone between one party’s minimum reservation point and the other party’s maximum reservation point in a negotiating situation.” 25

26. Managerial Issues (cont’d…) 26

27. Managerial Issues (cont’d…) Common pitfalls in negotiation “Arbitration is where a neutral third party acts as judge and issues a binding decision affecting parties at the negotiation impasse.” Culture and negotiation additional models relevant to conflict management and negotiation styles of non- Western cultures need to be developed 27

28. Managerial Issues (cont’d..)  Agree on the appropriate process – the process is always negotiable.  Discuss and share the different perspectives – separate the relational issues from the substantive ones, but make sure both are discussed.  Identify common ground – look for points of interdependence, common interests and initial points of agreement. Steps in Facilitating Conflict Resolution and Negotiation 28

29. Managerial Issues (cont’d..)  Identify desired information and documentation – ensure all pertinent information and documentation is available.  Identify desired outcomes – make sure there is opportunity to voice and clarify the desired outcomes and interests.  Develop options – ensure the options are based on the desired outcomes and interests. Steps in Facilitating Conflict Resolution and Negotiation (cont’d..) 29

30. Managerial Issues (cont’d..)  Select from the options – evaluate a final outcome based on the desires, criteria and standards of the participants.  Integrate and finalise – check again to see if the final option chosen could be improved, redrafted or revised for implementation. Steps in Facilitating Conflict Resolution and Negotiation (cont’d..) 30