1. Managing Conflict and Negotiating
Chapter Eleven
Managing Conflict and Negotiating
McGraw-Hill/Irwin
Copyright © 2010 The McGraw-Hill Companies, Inc. All rights reserved.

2. 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.

3. 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.

4. 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

5. A Modern View of Conflict
process in which one party perceives its interests are being opposed or set back by another party

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

7. 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

8. 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.

9. Question?
As a manager of a forty-five person department, Connie has always heard that there are certain situations that produce more conflict than others. She is interested in learning about these situations so she can carefully read early warnings and take appropriate actions. Which of the following is not an antecedent of conflict?
Inadequate communication
Organizational simplicity
Decision making by consensus
Unmet expectations
The correct answer is “B”
AACSB:  Group-individual dynamics Bloom's Taxonomy:  Application
Difficulty:  Hard Page:  277

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. Question?
Having taken this OB class and learned about how they deal with personality conflict, what tip(s) would you offer to employees having a personality conflict?
In resolving conflict, focus on personalities.
Bring co-workers into the conflict so you have witnesses.
Communicate directly with the other person to resolve the perceived conflict.
Keep the direct supervisor out of the conflict loop, especially if the dysfunctional conflict persists.
The correct answer is “C”
AACSB:  Group-individual dynamics Bloom's Taxonomy:  Application
Difficulty:  Hard Page:  281

15. 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

16. 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

17. Question?
Don is an Executive VP of a regional health-insurance company. He has noticed that the different departments do not work well together and seem more concerned with “protecting their turf” than in working to reach organizational goals. Don thinks that if he can create some group activities, the departments will have less conflict. This is called _________.
Convex theory
Concave hypothesis
Contact hypothesis
Intergroup theory
The correct answer is “C” – contact hypothesis. See previous slide

18. Managing Intergroup Conflict: An Updated Contact Model
Figure 11-1

19. 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)

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

21. 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.

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

23. Five Conflict Handling Styles
Figure 11-3

24. 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

25. Question?
In handling conflict, Jorge believes that interested parties must confront the issue and cooperatively identify the problem, generate and weigh alternative solutions, and select a solution. Jorge can be described as advocating which conflict handling style?
Obliging
Integrating
Dominating
Avoiding
The correct answer is “B”
AACSB:  Group-individual dynamics Bloom's Taxonomy:  Application
Difficulty:  Medium Page:  286

26. 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

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

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

29. 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

30. Third Party Interventions: 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. Question?
Fredhandbag Photography has created a panel of trustworthy employees to decide on disputes at the company. This is called _________.
Mediation
Facilitation
Conciliation
Peer review
The correct answer is “D” – peer review. See previous slide and p.289

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

34. Question?
The local one-hour-photo workers union was unhappy with the present contract. The process to work out a new contract is called ___________.
Facilitation
Negotiation
Concession
Arbitration
The correct answer is “B” – negotiation. See previous slide.

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

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

37. Seven Steps To Negotiating Your Salary
Know the market rate
Consider the economy
Know your own value
Be honest
Don’t go first
Consider benefits, too
Look at the long term

38. Supplemental Slides
Slides contain extra non-text examples to integrate and enhance instructor lectures
Slide 39: Conflict Monitoring
Slide 40: Costs of Dysfunctional Conflict
Slide 41: Why Conflict Matters
Slide 42: Management in the Movies Jaws – “The Town Meeting”
Slide 43: Video discussion slide

39. Conflict Monitoring
Read an article on Conflict monitoring

40. Costs of Dysfunctional Conflict
Fortune 500 senior executives spend 20 percent of their time in litigation activities.
Typical managers spend up to 30 percent of their time dealing with conflict.
The turnover costs for an employee are anywhere from between 75 percent and 150 percent of their annual salary.
16 percent of employees report conflict with a supervisor as the main reason for leaving their last job.

41. Why Conflict Matters
“The best insurance against crossing the ethical divide is a roomful of skeptics.”
“CEOs must actively encourage dissent among senior managers by creating decision-making processes, reporting relationships, and incentives that encourage opposing viewpoints…”
“By advocating dissent, top executives can create a climate where wrongdoing will not go unchallenged.”
Business Week, Special Report – The Crisis in Corporate Governance, May 6, 2002
Here are some quotes from an article in Business Week called the Crisis in Corporate Governance. It described issues where the facilitation of functional conflict can have an impact on several important factors.
Ethics: “The best insurance against crossing the ethical divide is a roomful of skeptics.” When Sherron Watkins, the Enron whistleblower spoke at Mason (March 2007) she mentioned how the Board of Directors capitulated to requests to waive the corporate code of ethics.
CEOs must actively encourage dissent among senior managers by creating decision-making processes, reporting relationships, and incentives that encourage opposing viewpoints… This is the idea that you don’t want to insulate yourself from alternative perspectives because you could be wrong or not make the best long-term decision
“By advocating dissent, top executives can create a climate where wrongdoing will not go unchallenged.” This is a similar sentiment as the above two
Now let’s look at an example of how not promoting dissent and functional conflict can have dire consequences… go to slide on Columbia Disaster
Source: The crisis in corporate governance, 5/6/2002, BusinessWeek Special Report)

42. Management in the Movies Jaws – “The Town Meeting”
In this scene, the Mayor is leading a town meeting with Chief Brody and the merchants.
Questions
How is the conflict of closing the beach handled?
Which conflict management strategy does Chief Brody use?
Which strategy does the mayor use?
Relevant concepts
Organizational conflict
Interpersonal conflict
Overlapping authority
Negotiation
Overview
This clip is a good example of conflict that arises because of different agendas or beliefs. In the resort community of Amity a swimmer is found dead on the beach, allegedly killed by a shark. The police chief, Brody (Roy Scheider) wants to close the beaches, but the merchants are afraid that their businesses will suffer if the beaches are closed. They are reluctant to believe that another attack could occur. The mayor (Murray Hamilton) settles the conflict by compromising without discussing his solution with the chief. This is a good discussion point for conflict management strategies and their long term effectiveness.
Discussion Questions
How is the conflict of closing the beach handled?
The mayor asks the merchants and the town council to meet together to discuss options to deal with the possibility of a killer shark.
Which conflict management strategy does Chief Brody use?
Chief Brody wants to use the competition strategy. He wants to keep the beach as safe as possible and thinks that closing them until the shark is found is the best way. He is not as concerned with the money tourists might spend as much as wanting to keep them safe.
Which strategy does the mayor use?
The mayor uses a compromise strategy by offering to close the beaches for only 24 hours. He seems to make this decision without good information or regard to swimmer’s safety. He allows the merchants’ cries for relief to affect his judgment.

43. Video: Toxic Coworkers
Annoying coworkers can be found in every organization. How can you turn these situations around to have good outcomes result?
Is the conflict being described here functional or dysfunctional? Why?
Do you think there are there more annoying people today than in the past, or are we just more sensitive to our working environment?
What different types of conflict did you pick up on being described in the video?
Effectively dealing with the behaviors being described can help the “offender” recognize what they are doing and perhaps rectify their behavior. Strategies for dealing with the different types will vary as was described in the video.
The conflict being described here is primarily dysfunctional in nature. Allowing the situation to continue and become more bothersome makes the conflict more and more dysfunctional.
There probably aren’t any more annoying people today than any other time, but workers today are more willing to speak up if their working conditions are less than good. This would include annoying coworkers.
The video primarily included descriptions of personality conflicts. However, they did mention the coworker who speaks a different language and then speaks loudly on the phone - this would be a form of cultural conflict.