1. Conflict and Negotiation
Week 9
2005EHR

2. Lecture objectives Define conflict
Describe the two forms and three types of conflict
Outline the conflict process
Define negotiation and contrast distributive and integrative bargaining
Discuss five steps in negotiation process

3. What is conflict?
Process that begins when one party perceives another party has negatively affected, or is about to negatively affect, something that the first party cares about
Requires: perception of conflict, interaction, and opposition/incompatibility
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4. What is conflict (continued)?
Encompasses wide range of conflicts that people experience in organisations
Incompatibility of goals
Differences over interpretations of facts
Disagreements based on behavioural expectations
Full range of conflict levels – from overt and violent acts to subtle disagreements
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5. What is conflict? (cont’d)
Traditional View (1930s -1940s)
All conflict is harmful and must be avoided
Dysfunctional, resulting from: poor communication, lack of openness, failure to respond to employee needs
Interactionist/Contemporary View
Conflict may be necessary for groups to perform effectively; lack of conflict can result in apathy and stifle innovation
Conflict probably inevitable in most organisations and minimal level can help keep group viable
Acknowledges not all conflict is good: functional versus dysfunctional conflict
Managed conflict focus on productive conflict resolution
Encouraging limited levels of “work-focused” conflict
Finding constructive methods for resolving conflict productively
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Forms of conflict
Functional conflict
Conflict that supports group goals and improves performance
Dysfunctional conflict
Conflict that hinders group performance
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7. Forms of conflict (cont’d)
Encourages managers to attain an optimal level of functional conflict

8. Types of interactionist conflict
Task Conflict
Conflict over work content and goals of work
Low-to-moderate levels are FUNCTIONAL
Process Conflict
Conflict over how work gets done
Low levels are FUNCTIONAL
Relationship Conflict
Conflict based on interpersonal relationships
Almost always DYSFUNCTIONAL
Only in specific circumstances!
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9. Conflict process
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10. Stage I: Opposition/Incompatibility
Communication
Semantic difficulties
Misunderstandings
Noise in the communication channel
Individual variables
Personality
Emotions
Values
Structure
Size
Specialisation of jobs
Jurisdictional clarity
Member–goal compatibility
Leadership styles
Reward systems (win–lose)
Degree of dependence between groups
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11. Stage II: Cognition & personalisation
Important stage for two reasons:
Conflict is defined
Perceived Conflict – awareness by one or more parties of conditions that create opportunities for conflict to arise
Emotions are expressed that impact strongly on eventual outcome
Felt Conflict – emotional involvement in conflict creating anxiety, tenseness, frustration, or hostility
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12. Stage III: Intentions Intentions
Decisions to act in given way
A distinct stage because a person has to infer the other’s intent to know how to respond to his or her behavior. Conflicts often escalate because one party attributes the wrong intentions to the other.
Note: behaviour does not always accurately reflect intent
Dimensions of conflict-handling intentions
Cooperativeness
Attempting to satisfy the other party’s concerns
Assertiveness
Attempting to satisfy one’s own concerns
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13. Dimensions of conflict-handling intentions

14. Stage IV: Behaviour
Includes the statements, actions and reactions made by the conflicting parties, usually as overt attempts to implement their own intentions.
Stage IV is a dynamic process of interaction
Conflict-intensity continuum:
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15. Conflict management techniques
Conflict Resolution
Conflict Stimulation
Problem solving
Superordinate goals
Expansion of resources
Avoidance
Smoothing
Compromise
Authoritative command
Altering human variables
Altering structural variables
Communication
Bringing in outsiders
Restructuring organization
Appointing devil’s advocate
Resolution and stimulation techniques to achieve desired level of conflict
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16. Stage V: Outcomes
Functional outcomes: outcomes of conflict that supports group goals and improves performance:
Increased group performance
Improved quality of decisions
Stimulation of creativity and innovation
Encouragement of interest and curiosity
Provision of medium for problem solving
Creation of environment for self-evaluation and change
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17. Stage V: Outcomes
Dysfunctional outcomes: outcomes of conflict that hinder group performance:
Development of discontent
Reduced group effectiveness
Diminished communication
Reduced group cohesiveness
Infighting among group members overcomes group goals
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18. Negotiation
Negotiation (Bargaining) is a process in which two or more parties exchange goods or services and attempt to agree on an exchange rate
Also, when two or more conflicting parties attempt to resolve their divergent goals by redefining the terms of their interdependence
Two general approaches
Distributive bargaining – negotiation that seeks to divide up a fixed amount of resources; a win-lose situation
Integrative bargaining – negotiation that seeks one or more settlements that can create win-win solutions
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19. Distributive versus Integrative
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20. The negotiation process
A model of the negotiation process views negotiation as comprising five steps:
Preparation and planning: Assess your goals and the other party’s goals.
Definition of ground rules: deciding where, when, how and then exchanging initial proposals and demands.
Clarification and justification: a process of clarifying and justifying your original demands.
Bargaining and problem solving: the give-and-take to work out an agreement
Closure and implementation: formalising the agreement.
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21. Negotiation process model
BATNA
Best Alternative To a Negotiated Agreement
Lowest acceptable value (outcome) to an individual for a negotiated agreement
‘Bottom line’ for negotiations
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22. Individual differences and negotiation effectiveness
Personality traits
Extroverts and agreeable people weaker at distributive negotiation; disagreeable introvert is best
Intelligence is a weak indicator of effectiveness
Mood and emotion
Ability to show anger helps in distributive bargaining – for people with greater power
Anxiety is related to poorer outcomes
Positive moods and emotions help integrative bargaining
Gender
Men and women negotiate same way but may experience different outcomes
Women and men take on gender stereotypes in negotiations:: women tender / men tough
Women less likely to negotiate
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23. Situational considerations
The location
There is a home ground advantage
The physical setting
Sitting face to face is more likely to result in a distributive (win-lose) situation
Sitting around the table may support an integrative approach
Time passage and deadlines
The more time people invest, the stronger their commitment to reaching an agreement will be (escalation of commitment)
Audience characteristics
Spectators increase the use of distributive bargaining tactics

24. Summary
Low to Moderate levels of task and process conflict may help improve performance
Conflict is represented in a five stage model: . Stage 1 - Potential opposition, Stage 2 - Cognition and personalisation; Stage 3 - Intentions; Stage 4 - Behaviour and stage 5 - outcomes.
Negotiation (or bargaining) the process through which two or more parties seek agreement on the rate of exchange between goods and services.
Five steps in negotiating include: 1. Preparing and planning, 2. Definition of ground rules, 3. Clarification and justification, 4. Bargaining and problem solving, 5. Closure and implementation

25. Next week Week 10 Lecture Organisational Culture
Week 10 Workshop Conflict