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2. 2 Chapter 9 Conflict and Negotiation

3.  2007 McGraw-Hill Ryerson Ltd.3 Learning Outcomes After reading the material in this chapter, you should be able to: 1.Define the term conflict, distinguish between functional and dysfunctional conflict, and identify three desired outcomes of conflict. 2.Define personality conflicts, and explain how they should be managed.

4.  2007 McGraw-Hill Ryerson Ltd.4 Learning Outcomes 3.Discuss the role of in-group thinking in intergroup conflict, and explain what can be done to avoid cross-culture conflict. 4.Identify the five conflict-handling styles. 5.Draw a distinction between distributive and integrative negotiation, and explain the concept of mutual gains (interest- based) bargaining.

5.  2007 McGraw-Hill Ryerson Ltd.5 A MODERN VIEW OF CONFLICT What is Conflict? A process in which one party perceives that its interests are being opposed or negatively affected by another party.

6.  2007 McGraw-Hill Ryerson Ltd.6 A MODERN VIEW OF CONFLICT (cont’d) Major trends that make organizational conflict inevitable:  Constant change  Greater employee diversity  More teams  Less face-to-face communication  A global economy with increased cross- cultural dealings

7.  2007 McGraw-Hill Ryerson Ltd.7 Functional versus Dysfunctional Conflict  Functional conflict ─serves an organization’s interests ─supports the goals of the organization ─improves performance  Dysfunctional conflict ─threatens an organization’s interests ─lowers productivity ─can lead to violence & dissatisfaction that leads to turnover

8.  2007 McGraw-Hill Ryerson Ltd.8 Causes of Conflict Organizational Level –Competition for limited resources –Organizational complexity –Unreasonable or unclear policies, standards, or rules –Unmet expectations

9.  2007 McGraw-Hill Ryerson Ltd.9 Causes of Conflict (cont’d) Group Level –Overlapping or unclear job boundaries –Interdepartment/intergroup competition –Unreasonable deadlines or extreme time pressure –Collective decision making –Decision making by consensus

10.  2007 McGraw-Hill Ryerson Ltd.10 Causes of Conflict (cont’d) Interpersonal Level –Incompatible personalities or value systems –Inadequate communication –Unresolved or suppressed conflicts

11.  2007 McGraw-Hill Ryerson Ltd.11  Agreement:  Agreement: Strive for equitable and fair agreements that last.  Stronger relationships:  Stronger relationships: Build bridges of goodwill and trust for the future.  Learning:  Learning: Greater self-awareness and creative problem solving. Desired Outcomes of Conflict

12.  2007 McGraw-Hill Ryerson Ltd.12  Personality Conflicts  Personality Conflicts – interpersonal opposition based on personal dislike and/or disagreement  Intergroup Conflict  Intergroup Conflict – conflict among work groups, teams, & departments  Cross-Cultural Conflict  Cross-Cultural Conflict – caused by differing assumptions in different cultures about how to think and act MAJOR FORMS OF CONFLICT

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15.  2007 McGraw-Hill Ryerson Ltd.15 Behaviours 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)

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17.  2007 McGraw-Hill Ryerson Ltd.17 MANAGING CONFLICT  Creating Functional Conflict  Creating Functional Conflict – getting contributors to defend or criticize ideas on the basis of relevant facts rather than personal preference or political interests  Alternative Styles for Handling Dysfunctional Conflict:  Collaborating  Accommodating  Competing  Avoiding  Compromising

18.  2007 McGraw-Hill Ryerson Ltd.18 Practical Lessons from Conflict Research  Personality traits affect how people handle conflict (e.g., those with high need for affiliation choose an obliging style)  Disagreement expressed in an arrogant and demeaning manner produces more negative effects than disagreement expressed in a reasonable manner  Aggression breeds aggression  As conflict increases, group satisfaction decreases  Challenging and clear goals can diffuse conflict  Higher levels of conflict erode job satisfaction and internal work motivation  Men and women at the same managerial level handle conflict similarly

19.  2007 McGraw-Hill Ryerson Ltd.19 NEGOTIATING Negotiation Negotiation – a give-and-take decision-making process involving interdependent parties with different preferences. Two Types of Negotiation:  Distributive negotiation:  Single issue  Mythical “fixed-pie”  Traditional win-lose thinking  Integrative negotiation:  More than one issue which the parties value differently  Progressive win-win strategy

20.  2007 McGraw-Hill Ryerson Ltd.20 Practical Lessons from Negotiation Research  Negotiators with fixed-pie expectations produced poor joint outcomes  Personality characteristics can affect negotiating success; negotiators with high extraversion and high agreeableness do poorly with win-lose negotiations  Good and bad moods can affect negotiating plans and outcomes (positively and negatively, respectively)  Less understanding of the other party makes cross- cultural negotiations more difficult than negotiations at home

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22.  2007 McGraw-Hill Ryerson Ltd.22 Alternative Dispute Resolution Techniques Facilitation: Facilitation: Third party gets disputants to deal directly and constructively with each other. Conciliation: Conciliation: Neutral third party acts as communication link between disputants. Peer review: Peer review: Impartial co-workers hear both sides and render decision that may or may not be binding. Ombudsman: Ombudsman: Respected and trusted member of the organization hears grievances confidentially. Mediation: Mediation: Trained third-party guides disputants toward their own solution. Arbitration: Arbitration: Neutral third-party hears both sides in a court-like setting and renders a binding decision.