2. Managing Conflict and Negotiation
Learning Objectives
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.
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.
Chapter Eleven

3. Conflict
11-1
Conflict: one party perceives its interests are being opposed or set back by another party.
Functional conflict: serves organization’s interests.
Dysfunctional conflict: threatens organization’s interests.
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4. Antecedents of Conflict
11-2
Incompatible personalities or value systems.
Overlapping or unclear job boundaries.
Competition for limited resources.
Interdepartment/intergroup competition.
Inadequate communication.
Interdependent tasks.
Organizational complexity.
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5. Antecedents of Conflict (Cont.)
11-3
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.
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6. Desired Outcomes of Conflict
11-4
Agreement
Stronger relationships
Learning
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7. Personality Conflict
11-5
Personality conflict: interpersonal opposition driven by personal dislike or disagreement.
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8. Tips for Employees Having a Personality Conflict
Skills & Best Practices: How to Deal with
Personality Conflicts
11-6
Tips for Employees Having a Personality Conflict
All employees need to be familiar with and follow company policies for diversity, antidiscrimination, and sexual harassment
Communicate directly with the other person to resolve the perceived conflict
Avoid dragging coworkers into the conflict.
If dysfunctional conflict persists, seek help from direct supervisors or human resource specialists
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9. Tips for Third-Party Observers of a Personality Conflict
Skills & Best Practices: How to Deal with
Personality Conflicts (Cont.)
11-7
Tips for Third-Party Observers of a Personality Conflict
All employees need to be familiar with and follow company policies for diversity, antidiscrimination, and sexual harassment
Do not take sides in someone else’s personality conflict
Suggest the parties work things out themselves in a constructive and positive way
If dysfunctional conflict persists, refer problem to parties’ direct supervisors
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10. Tips for Managers Whose Employees are Having a Personality Conflict
Skills & Best Practices: How to Deal with
Personality Conflicts (Cont.)
11-8
Tips for Managers Whose Employees are Having a Personality Conflict
All employees need to be familiar with and follow company policies for diversity, antidiscrimination, and sexual harassment
Investigate and document conflict
If appropriate, take corrective action
If necessary, attempt informal dispute resolution
Refer difficult conflicts to human resource specialists or hired counselors for formal resolution attempts and other interventions
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11. In-Group Thinking: The Seeds Of Intergroup Conflict
11-9
Members of in-groups view themselves as a collection of unique individuals.
In-group members see themselves positively and as morally correct, while they view members of other groups negatively and as immoral.
In-groups view outsiders as a threat.
In-group members exaggerate the differences between their group and other groups. This typically involves a distorted sense of reality.
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12. Inter-group conflict tends to increase when:
Minimizing Intergroup Conflict: An
Updated Contact Model
11-10 Figure 11-1
Level of perceived
Inter-group conflict tends to increase when:
Recommended actions:
Work to eliminate specific negative interactions between groups (and members).
Conduct team building to reduce intragroup conflict and prepare employees for cross-functional teamwork.
Encourage personal friendships and good working relationships across groups and departments.
Foster positive attitudes toward members of other groups (empathy, compassion, sympathy).
Avoid or neutralize negative gossip across groups or departments.
Conflict within the group is high
There are negative interactions between groups (or between members of those groups)
Influential third-party gossip about other group is negative
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13. Skills & Best Practices: How to Build Cross-Cultural Relationships
11-11
Behavior Rank
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)
Tie
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14. Programming Functional Conflict
11-12
Programmed Conflict: encourages different opinions without protecting management’s personal feelings.
Devil’s advocacy: assigning someone the role of critic.
Dialectic method: fostering a debate of opposing viewpoints to better understand an issue.
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15. Techniques for Stimulating Functional Conflict: Devil’s Advocacy
11-13 Figure 11-2
A Devil’s Advocacy Decision Program
1. A Proposed Course of Action is generated
2. A devil’s advocate is assigned to criticize the proposal
3. The critique is presented to key decision makers
4. Any additional information relevant to the issues is gathered
5. The decision to adopt, modify, or discontinue the proposed
course of action is taken
6. The decision is monitored
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16. Techniques for Stimulating Functional Conflict: the Dialectic Method
11-14 Figure 11-2
The Dialectic Decision Method
1. A Proposed Course of Action is generated
2. Assumptions underlying the proposal are identified
3. A conflicting counterproposal is generated based on
different assumptions
4. Advocates of each position present and debate the merits of
their proposals before key decision makers
5. The decision to adopt either position or some other position
is taken
6. The decision is monitored
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17. Five Conflict Handling Styles
11-15 Figure 11-3
Integrating
Obliging
High
Compromising
Concern for Others
Dominating
Avoiding
Low
High
Low
Concern for Self
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18. Alternative Dispute Resolution (ADR)
Techniques
11-16
Alternative Dispute Resolution: avoiding costly lawsuits by resolving conflicts informally or through mediation or arbitration.
Techniques:
Facilitation
Conciliation
Peer review
Ombudsman
Mediation
Arbitration
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19. Negotiation
11-17
Negotiation: give-and-take process between conflicting independent parties.
Two types:
Distributive
Integrative
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20. Added-Value Negotiation
11-18
Added-Value Negotiation: cooperatively developing multiple-deal packages while building a long-term relationship
Five Steps:
Clarify interests
Identify options
Design alternative deal packages
Select a deal
Perfect the deal
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21. Skills & Best Practices: Seven Steps To Negotiating Your Salary
11-19
Know the going rate
Don’t fudge your past compensation
Present cold, hard proof of your value
Let the other party name a figure first
Don’t nickel-and-dime
Avoid extravagant extras
Seek incentives and practical perks
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