1. Managing Conflict and Negotiation
Chapter 14
Managing Conflict and Negotiation
Conflict: A Modern
Perspective
Types of Conflict
Managing Conflict
Negotiation
Conflict Management and
Negotiation: A
Contingency Approach

2. 14-2
Conflict
Conflict One party perceives its interests are being opposed or set back by another party
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

3. Functional vs. Dysfunctional Conflict
14-4
Functional vs. Dysfunctional Conflict
Functional Conflict serves organization’s interests
Dysfunctional Conflict threatens organization’s interests
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

4. Minimizing Intergroup Conflict
14-11
Figure 14-2
Minimizing Intergroup Conflict
Level of perceived
intergroup conflict tends to increase when:
Recommended actions:
Work to eliminate specific negative interactions between groups
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
Avoid or neutralize negative gossip across groups or departments
Conflict within the group is high
There are negative interactions between groups
Influential third-party gossip about other group is negative
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

5. Ways to Build Cross-Cultural Relationships
14-12
Table 14-2
Ways to Build Cross-Cultural Relationships
Rank
Behavior 1
Be a good listener 2
Be sensitive to the needs of others
Tie 2
Be cooperative rather than overly competitive 3
Advocate inclusive (participative) leadership 4
Compromise rather than dominate 5
Build rapport through conversations 6
Be compassionate and understanding 7
Avoid conflict by emphasizing harmony 8
Nurture others (develop and mentor)
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

6. Stimulating Functional Conflict: Devil’s Advocacy Decision Program
14-13
Figure 14-3
Stimulating Functional Conflict: Devil’s Advocacy Decision Program
A proposed course of action is generated
A devil’s advocate is assigned to critique the proposal
The critique is presented to key decision makers
Any additional information relevant to the issues is gathered
The decision to adopt, modify, or discontinue the proposed course of action is taken
The decision is monitored
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

7. Stimulating Functional Conflict: The Dialectic Decision Method
14-14
Figure 14-3 cont.
Stimulating Functional Conflict: The Dialectic Decision Method
A proposed course of action is generated
Assumptions underlying the proposal are identified
A conflicting counterproposal is generated based on different assumptions
Advocates of each position present and debate merits of their proposals before key decision makers
The decision to adopt, either position or some other position is taken
The decision is monitored
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

8. Five Conflict-Handling Styles
14-15
Figure 14-4
Five Conflict-Handling Styles
Integrating
Obliging
High
Compromising
Concern for Others
Dominating
Avoiding
Low
High
Low
Concern for Self
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

9. Alternative Dispute Resolution (ADR)Techniques
14-17
Alternative Dispute Resolution (ADR)Techniques
Alternative Dispute Resolution (ADR) avoiding costly lawsuits by resolving conflicts informally or through mediation or arbitration
Facilitation
Conciliation
Peer review
Ombudsman
Mediation
Arbitration
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

10. 14-18
Negotiation
Negotiation give-and-take process between conflicting interdependent parties
Distributive negotiation: Single issue; fixed-pie; win-lose.
Integrative negotiation: More than one issue; win-win.
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

11. Alternative Dispute Resolution (ADR)Techniques
14-19
Figure 14-6
Separately
identify tangible and intangible needs
Step 1: Clarify interests
Identify elements of value
Step 2: Identify options
Mix and match elements of value in various
workable combinations
Think in terms of multiple deals
Step 3: Design alternative deal packages
Analyze deal packages proposed by other
party
Step 4: Select a deal
Step 5: Perfect the deal
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

12. Alternative Dispute Resolution (ADR)Techniques
14-20
Figure 14-6 cont.
Jointly
Discuss respective needs
Find common ground for negotiation
Step 1: Clarify interests
Create a marketplace of value by discussing
respective elements of value
Step 2: Identify options
Step 3: Design alternative deal packages
Discuss and select from feasible deal packages
Think in terms of creative agreement
Step 4: Select a deal
Step 5: Perfect the deal
Discuss unresolved issues
Develop written agreement
Build relationships for future negotiations
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.