1. Chapter Seven: 7.1 DISPUTE RESOLUTION AND NEGOTIATION
INTRODUCTION
REASONS FOR DISPUTE
CULTURE AND DISPUTE
RESOLVING CONFLICTS
NEGOTIATION
IMPLICATIONS FOR THE MANAGER
SUMMARY
EXERCISE.

2. Chapter Seven: 7.2 FACTORS INFLUENCING INTEREST IN A DISPUTE include
PERSONALITY FACTORS
STAKE. How badly do you want to win, and how serious would be the cost of losing?
EMOTIONAL INVOLVEMENT. The more involved I am in defending my interests or achieving my goals, the more I commit myself to the dispute

3. (7.2)
URGENCY. If I want a problem resolved quickly, I may force a solution, or at the opposite extreme, by quickly withdrawing
PRECEDENT. How does the individual or organization usually behave in these circumstances?
CULTURE.

4. Chapter Seven: 7.3 TOLERANCES OF DISPUTE VARY ACROSS CULTURES
Hofstede’s (2001) model explains different tolerances.
in COLLECTIVIST cultures, harmony should always be maintained, and direct confrontations avoided
in INDIVIDUALIST cultures speaking one’s mind is a characteristic of an honest person
in large POWER DISTANCE cultures, latent conflict between ranks is considered normal and is feared.

5. (7.3)
in high UNCERTAINTY AVOIDANCE cultures, disputes within the organization are considered threatening and undesirable
in low UNCERTAINTY AVOIDANCE cultures, conflict in organizations is considered natural and often healthy
in MASCULINE cultures, disputes are resolved by fighting them out
in FEMININE cultures, conflicts are resolved by compromise and negotiation.

6. Chapter Seven: 7.4 ARGUMENT, COMPETITION and CONFLICT
ARGUMENTS and COMPETITION are often
constructive. But they degenerate into CONFLICT when
there is no perception of common interest
one or both of the two sides refuses to accept arbitration
the responsible superior fails to arbitrate
the procedures for deciding a “winner” and closure are not agreed

7. (7.4)
the cost of losing is greater than the cost of continuing the conflict
personality clashes cannot be overcome
information is inadequate; communication breaks down.

8. Chapter Seven: 7.5 PREPARING for a NEGOTIATION
Answer these questions for your side:
WHERE would you prefer to negotiate?
WHEN would you prefer to negotiate?
WHO should negotiate?
WHO has authority to decide?
WHY should you negotiate?
HOW would you prefer to negotiate?
Try to answer the same questions for the other side.