1. Chapter 12 conflict, negotiation, power, and politics Michael A. Hitt
C. Chet Miller
Adrienne Colella
See page

2. ?
Knowledge Objectives
Explain how conflict can be either functional or dysfunctional and distinguish among various types of conflict.
Discuss common causes of conflict.
Describe conflict escalation and the various outcomes of conflict.
Explain how people respond to conflict and under what circumstances each type of response is best.
Understand how organizations can manage conflict.
Describe the basic negotiation process as well as effective strategies and tactics for negotiating.
Explain why organizations must have power to function, and discuss how people gain power in organizations.
Define organizational politics and the tactics used to carry out political behavior.
See page 436.

3. Conflict
Process in which one party perceives that its interests are being opposed or negatively affected by another party.
See page 439.

4. Nature of Conflict Dysfunctional Functional See page 439.
Detrimental to organization’s goals
Interferes with performance
Functional
Beneficial to organization’s goals
Results benefit individuals
See page 439.

5. Effects of Conflict Adapted from Exhibit 12-1: Effects of Conflict
Individuals
Anger
Hostility
Frustration
Stress
Guilt
Low job satisfaction
Embarrassment
Behavior
Reduces motivation and productivity
Avoid people
Emotional venting
Threats
Aggression
Quitting
Absenteeism
Biases perceptions
Stereotype
Increases commitment to one’s position
Demonizing others
Interpersonal Relationships
Distrust
Misunderstandings
Inability to see other’s perspective
Questioning other’s intentions
Changes attitudes toward others
Changes in the amount of power
Changes in the quality and amount of communication
See page 439.
Adapted from Exhibit 12-1: Effects of Conflict

6. See pages 440-441. Types of Conflict Personal
Personal differences between people
Examples;
goals
values
personalities
Substantive
Involves work content and goals
Procedural
Over responsibilities and how work should be done
See pages

7. Effects of Types of Conflict on Task Performance
Degree of Conflict
Task Performance
High
Low
Substantive Conflict
Personal Conflict
Procedural Conflict
See page 440.
Adapted from Exhibit 12-2: The Effects of Different Types of Conflict on Task Performance

8. Causes of Conflict Structural
Increased Specialization
Interdependency
Physical Layout
Centralization versus Decentralization
See pages

9. Causes of Conflict Communication
Too Little…
Don’t understand other’s intentions
Coordination becomes difficult
Misunderstandings occur
See pages
Too Much…
Can create misunderstanding

10. Causes of Conflict Cognitive Factors
Differing Expectations
Perceptions of Others
Jobs
Careers
Managerial actions
Others?
Intentions are;
harmful
violate norms
dishonest
others?
See page 445.

11. Causes of Conflict Individual Characteristics History personality
value differences
goals
History
past performance
previous interactions
See pages

12. Conflict Escalation Cultural differences History of antagonism
Insecure self-image
Status differences
Informal workplace ties to each other
Do not identify with one another
Goal to escalate conflict to win
See page 448.

13. Workplace Aggression Adopt a zero-tolerance policy
Implement a formal workplace prevention program
Train managers and associates to address issues
Take every threat seriously
Immediately investigate all threats
Implement tighter security
Provide EAPs
See page 449.

14. Conflict Outcomes Degree of Satisfaction of Party A’s Concern
Win-Lose
Win-Win
High
Compromise
Degree of Satisfaction of Party A’s Concern
Lose-Lose
Lose-Win
See page 450.
Degree of Satisfaction of Party B’s Concern
Low
High
Adapted from Exhibit 12-3: Possible Conflict Outcomes

15. Responses to Conflict Competing Collaborating High Compromising
Assertiveness
See pages
Avoiding
Accommodating
Low
Cooperativeness
High

16. Negotiation
Process by which parties with different preferences and interests attempt to agree on a solution.
See page 451.

17. Negotiation Strategies
Distributive
Convince ending would be costly
Convince you’re committed to outcome
Prevent them from committing to their outcome
Allow them to give in without losing face or cost
Convince your outcome is fair and/or theirs is unfair
Convince them others favor you
Use nonhostile humor
Distract them from concentrating
Integrative
Show them they are important to you
Show them your outcome is too important to compromise
Show them a win-win is possible
Demonstrate flexibility
Insist on fair decision making criteria
Make collaborative norms salient
Minimize behavior or tactics that create negative emotions
Provide emotionally supportive climate
Shield them from emotional distractions
Attitudinal Structuring
Use similar language
Disassociate yourself from people they doesn’t like
Reward behavior
Express appreciation
Remind of role obligations
Assist in working through negative attitudes
Return favors
Fight antagonism
Associate with people they like
See page 453.
Adapted from Exhibit 12-4: Negotiation Tactics

18. Negotiation Process Prepare Determine the Negotiation Process
specific goal(s)
BATNA
self- and opponent analysis
Determine the Negotiation Process
timeline, place, and structure
Negotiate the Agreement
Close the Deal
See pages

19. Power
Ability to achieve desired outcomes.
See page 456.

20. Basis of Individual Power
Legitimate
Reward
Coercive
Expert
Referent
See page 456.

21. Strategic Contingencies Model of Power
People and organizational units gain power by being able to address major problems and issues faced by the organization.
Identify strategic contingencies faced by an organization and gain control over them
Anyone who can help reduce uncertainties faced by the organization will gain power
People who are irreplaceable have power
Control the decision process
set parameters on the types of solutions that are acceptable
control the range of alternatives to be considered
See pages

22. Organizational Politics
Coalition
Political Skill
Behavior directed toward furthering one’s own self-interests without concern for the interests or well-being of others.
Group whose members act together to actively pursue a common interest.
Ability to effectively understand others at work.
Use this knowledge to enhance one’s own objectives.
See pages

23. Political Tactics Consultation Rational Persuasion Personal Appeal
Ingratiation
Inspirational Appeal
See pages
Exchange
Coalition
Legitimizing
Pressure

24. Check out http://wileymanagementupdates.com/
Strategic lens
Can you describe a situation in which conflict was functional (i.e., it had positive outcomes)? If so, in what ways was the conflict functional?
A strategic leader must use power in many actions that she takes. In what ways can she exercise this power to achieve positive outcomes?
How can knowledge of conflict, negotiations, power, and politics in organizations help you be more successful in your career? Please be specific.
See page 463.
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