2. Managing Conflict and Negotiating
Chapter Eleven
Managing Conflict and Negotiating
McGraw-Hill/Irwin
Organizational Behavior: Key Concepts, Skills & Best Practices, 3/e
Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.

3. After reading the material in this chapter, you should be able to:
Define the term conflict, distinguish between functional and dysfunctional conflict, and identify three desired outcomes of conflict.
Define personality conflicts, and explain how they should be managed.
Discuss the role of in-group thinking in intergroup conflict, and explain what can be done to avoid cross-cultural conflict.

4. After reading the material in this chapter, you should be able to:
Explain how managers can program functional conflict, and identify the five conflict handling styles.
Identify and describe at least four alternative dispute resolution (ADR) techniques.
Draw a distinction between distributive and integrative negotiation, and explain the concept of added-value negotiation.

5. Major Trends that Make Conflict Inevitable
Constant change
Greater employee diversity
More teams (virtual and self-managed)
Less face-to-face communication
Global economy with increased cross-cultural dealings

6. A Modern View of Conflict
Conflict - one party perceives its interests are being opposed or set back by another party

7. Functional versus Dysfunctional Conflict
Functional conflict - serves organization’s interests.
Dysfunctional conflict - threatens organization’s interests.

8. Antecedents of Conflict
Incompatible personalities or value systems.
Overlapping or unclear job boundaries.
Competition for limited resources.
Interdepartment/intergroup competition.
Inadequate communication.
Interdependent tasks.
Organizational complexity

9. Antecedents of Conflict
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 conflict.

10. Why People Avoid Conflict
Harm
Rejection
Loss of relationship
Anger
Being seen as selfish
Saying the wrong thing
Intimacy

11. Desired Outcomes of Conflict
Agreement
Stronger relationships
Learning

12. Major Forms of Conflict
Personality conflict - interpersonal opposition driven by personal dislike or disagreement.

13. How to Deal With Personality Conflicts

14. Intergroup Conflict
Intergroup conflict – conflict among work groups, teams, and departments
Too much cohesiveness can breed groupthink because a desire to get along pushes aside critical thinking

15. Handling Intergroup Conflict
Contact hypothesis – the more the members of different groups interact, the less intergroup conflict they will experience
Managers should identify and root out specific negative linkages between groups

16. Managing Intergroup Conflict
Figure 11-1

17. How to Build Cross-Cultural Relationships
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)

18. Programming Functional Conflict
Programmed Conflict - encourages different opinions without protecting management’s personal feelings.

19. Programming Functional Conflict
Devil’s advocacy - assigning someone the role of critic.
Dialectic method - fostering a debate of opposing viewpoints to better understand an issue.

20. Techniques for Stimulating Functional Conflict: Devil’s Advocacy
Figure 11-2

21. Five Conflict Handling Styles
Figure 11-3

22. Question?
Which style for handling conflict relies on formal authority to force compliance?
Integrating
Obliging
Dominating
Avoiding
The correct answer is “C” – dominating. See slide 11-25

23. Alternative Styles for Handling Dysfunctional Conflict
Integrating – interested parties confront the issue and cooperatively identify the problem, generate and weigh alternative solutions, and select a solution
Appropriate for complex issues plagued by misunderstanding

24. Alternative Styles for Handling Dysfunctional Conflict
Obliging (Smoothing) – involves playing down differences while emphasizing commonalities
Appropriate when it is possible to get something in return

25. Alternative Styles for Handling Dysfunctional Conflict
Dominating (Forcing) – relies on formal authority to force compliance
Appropriate when an unpopular solution must be implemented

26. Alternative Styles for Handling Dysfunctional Conflict
Avoiding – involves either passive withdrawal from the problem or active suppression of the issue
Appropriate for trivial issues

27. Conflict Monitoring
Read an article on Conflict monitoring

28. Alternative Styles for Handling Dysfunctional Conflict
Compromising – give-and-take approach involves moderate concern for both self and others
Appropriate when parties have opposite goals

29. Question?
What is the process of avoiding costly lawsuits by resolving conflicts informally or through arbitration?
Distributive negotiation
Integrative negotiation
Alternative Dispute Resolution
Added-Value Negotiation
The correct answer is “C” – alternative dispute resolution. See next slide.

30. Third Party Interventions: Alternative Dispute Resolution
Alternative Dispute Resolution - avoiding costly lawsuits by resolving conflicts informally or through mediation or arbitration

31. Alternative Dispute Resolution
Facilitation
Conciliation
Peer review
Ombudsman
Mediation
Arbitration

32. Negotiation
Negotiation: give-and-take process between conflicting independent parties.
Two types:
Distributive
Integrative

33. Added-Value Negotiation
Added-Value Negotiation - cooperatively developing multiple-deal packages while building a long-term relationship

34. Added-Value Negotiation
Steps
Clarify interests
Identify options
Design alternative deal packages
Select a deal
Perfect the deal

35. Seven Steps To Negotiating Your Salary
Know the going rate
Don’t fudge your past compensation
Present cold, hard proof of your value
Let the other party name a figure first
Don’t nickel-and-dime
Avoid extravagant extras
Seek incentives and practical perks

36. Video: Toxic Coworkers
Katherine Crowley and Kathi Elster discuss their book, “Working with You is Killing Me” and ways to get along with fellow employees. (4:45)