0. Conflict and Negotiation15
Conflict and Negotiation
© 2009 Prentice-Hall Inc. All rights reserved.

1. Chapter Learning Objectives
After studying this chapter, you should be able to:
Define conflict.
Differentiate between the traditional, human relations, and interactionist views of conflict.
Outline the conflict process.
Define negotiation.
Contrast distributive and integrative bargaining.
Apply the five steps in the negotiation process.
Show how individual differences influence negotiations.
Assess the roles and functions of third-party negotiations.
Describe cultural differences in negotiations.
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2. Conflict Defined
A process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about
That point in an ongoing activity when an interaction “crosses over” to become an interparty conflict
Encompasses a wide range of conflicts that people experience in organizations
Incompatibility of goals
Differences over interpretations of facts
Disagreements based on behavioral expectations
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3. Transitions in Conflict Thought
Traditional View of Conflict
The belief that all conflict is harmful and must be avoided
Prevalent view in the 1930s-1940s
Conflict resulted from:
Poor communication
Lack of openness
Failure to respond to employee needs
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4. Continued Transitions in Conflict Thought
Human Relations View of Conflict
The belief that conflict is a natural and inevitable outcome in any group
Prevalent from the late 1940s through mid-1970s
Interactionist View of Conflict
The belief that conflict is not only a positive force in a group but that it is absolutely necessary for a group to perform effectively
Current view
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5. Forms of Interactionist Conflict
Functional Conflict
Conflict that supports the goals of the group and improves its performance
Dysfunctional Conflict
Conflict that hinders group performance
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6. Types of Interactionist Conflict
Task Conflict
Conflicts over content and goals of the work
Low-to-moderate levels of this type are FUNCTIONAL
Relationship Conflict
Conflict based on interpersonal relationships
Almost always DYSFUNCTIONAL
Process Conflict
Conflict over how work gets done
Low levels of this type are FUNCTIONAL
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7. The Conflict Process We will focus on each step in a moment…
E X H I B I T 15-1
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8. Stage I: Potential Opposition or Incompatibility
Communication
Semantic difficulties, misunderstandings, and “noise”
Structure
Size and specialization of jobs
Jurisdictional clarity/ambiguity
Member/goal incompatibility
Leadership styles (close or participative)
Reward systems (win-lose)
Dependence/interdependence of groups
Personal Variables
Differing individual value systems
Personality types
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9. Stage II: Cognition and Personalization
Important stage for two reasons:
Conflict is defined
Perceived Conflict
Awareness by one or more parties of the existence of conditions that create opportunities for conflict to arise
Emotions are expressed that have a strong impact on the eventual outcome
Felt Conflict
Emotional involvement in a conflict creating anxiety, tenseness, frustration, or hostility
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10. Stage III: Intentions Intentions
Decisions to act in a given way
Note: behavior does not always accurate reflect intent
Dimensions of conflict-handling intentions:
Cooperativeness
Attempting to satisfy
the other party’s
concerns
Assertiveness
one’s own concerns
Source: K. Thomas, “Conflict and Negotiation Processes in Organizations,” in M.D. Dunnette and L.M. Hough (eds.), Handbook of Industrial and Organizational Psychology, 2nd ed., vol. 3 (Palo Alto, CA: Consulting Psychologists Press, 1992), p With permission.
E X H I B I T 15-2
© 2009 Prentice-Hall Inc. All rights reserved.

11. Stage IV: Behavior Conflict Management Conflict-Intensity Continuum
The use of resolution and stimulation techniques to achieve the desired level of conflict
Conflict-Intensity Continuum
Source: Based on S.P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp. 93–97; and F. Glasi, “The Process of Conflict Escalation and the Roles of Third Parties,” in G.B.J. Bomers and R. Peterson (eds.), Conflict Management and Industrial Relations (Boston: Kluwer-Nijhoff, 1982), pp. 119–40.
E X H I B I T 15-3
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12. Conflict Resolution Techniques
Problem solving
Superordinate goals
Expansion of resources
Avoidance
Smoothing
Compromise
Authoritative command
Altering the human variable
Altering the structural variables
Communication
Bringing in outsiders
Restructuring the organization
Appointing a devil’s advocate
Source: Based on S. P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp. 59–89
E X H I B I T 15-4
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13. Stage V: Outcomes Functional Dysfunctional
Increased group performance
Improved quality of decisions
Stimulation of creativity and innovation
Encouragement of interest and curiosity
Provision of a medium for problem-solving
Creation of an environment for self-evaluation and change
Dysfunctional
Development of discontent
Reduced group effectiveness
Retarded communication
Reduced group cohesiveness
Infighting among group members overcomes group goals
Creating Functional Conflict
Reward dissent and punish conflict avoiders
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14. Negotiation Negotiation (Bargaining) Two General Approaches:
A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them
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 a win-win solution
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15. Distributive versus Integrative Bargaining
Bargaining Characteristic
Distributive Bargaining
Integrative Bargaining
Goal
Get all the pie you can
Expand the pie
Motivation
Win-Lose
Win-Win
Focus
Positions
Interests
Information Sharing
Low
High
Duration of Relationships
Short-Term
Long-Term
Mine
Yours
Source: Based on R. J. Lewicki and J. A. Litterer, Negotiation (Homewood, IL: Irwin, 1985), p. 280.
Mine
Yours
Integrative
Distributive
E X H I B I T 15-5
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16. Bargaining Tactics and the Bargaining Zone
Distributive Tactics
Make an aggressive first offer
Reveal a deadline
Integrative Tactics
Bargain in teams
Put more issues on the table
Don’t compromise
E X H I B I T 15-6
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17. The Negotiation Process
BATNA
The Best Alternative To a Negotiated Agreement
The lowest acceptable value (outcome) to an individual for a negotiated agreement
The “Bottom Line” for negotiations
E X H I B I T 15-7
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18. Individual Differences in 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
Positive moods and emotions help integrative bargaining
Gender
Men and women negotiate the same way, but may experience different outcomes
Women and men take on gender stereotypes in negotiations: tender and tough
Women are less likely to negotiate
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19. Third-Party Negotiations
Four Basic Third-Party Roles
Mediator
A neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives
Arbitrator
A third party to a negotiation who has the authority to dictate an agreement.
Conciliator
A trusted third party who provides an informal communication link between the negotiator and the opponent
Consultant
An impartial third party, skilled in conflict management, who attempts to facilitate creative problem solving through communication and analysis
© 2009 Prentice-Hall Inc. All rights reserved.

20. Global Implications Conflict and Culture
Japanese and U.S. managers view conflict differently
U.S. managers more likely to use competing tactics while Japanese managers are likely to use compromise and avoidance
Cultural Differences in Negotiations
Multiple cross-cultural studies on negotiation styles, for instance:
American negotiators are more likely than Japanese bargainers to make a first offer
North Americans use facts to persuade, Arabs use emotion, and Russians used asserted ideals
Brazilians say “no” more often than Americans or Japanese
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21. Summary and Managerial Implications
Conflict can be constructive or destructive
Reduce excessive conflict by using:
Competition
Collaboration
Avoidance
Accommodation
Compromise
Integrative negotiation is a better long-term method
E X H I B I T 15-8
© 2009 Prentice-Hall Inc. All rights reserved.

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