1. BUS7000 Organizational Behavior &Theory
Week 3
Dr Jenne Meyer

2. Article Analysis

3. Communicating in Teams and Organizations
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

4. Communication Defined
Zappos CEO Tony Hsieh values open communication with staff, such as sending Twitter tweets, writing blogs, and having an office with no door
The process by which information is transmitted and understood between two or more people
Effective communication
Transmitting intended meaning (not just symbols)
The process by which information is transmitted and understood
between two or more people
Effective communication – transmitting the sender’s intended
meaning

5. Videos
No cell communication:

6. Importance of Communication
Coordinating work activities
Vehicle for organizational learning
Critical ingredient for decision making
Influencing others – changing their behavior
Employee well-being
1. Coordinating work activities
• Frequent, timely, and accurate communication is the primary means
through which employees and work units synchronize their work
2. Vehicle for organizational learning
• Means for knowledge to enter the organization and be distributed to
employees
3. Decision making
• Critical ingredient for decision making
4. Influencing others – changing their behavior
• May be passive e.g. describing the situation or may be a deliberate
attempt to change someone’s thoughts/actions
5. Employee well-being
• Fulfills the drive to bond; validates self-worth; maintain social
identity

7. Communication Process Model
Sender
Receiver
Transmit
Message
Form
message
Encode
message
Decode
message
Receive
encoded
Noise
Form
feedback
Decode
feedback
Receive
1. Sender forms and encodes message into words, gestures, voice
intonations, and other symbols or signs
2. Encoded message is transmitted to the intended receiver through one
or more communication channels (media)
3. Receiver senses the incoming message and decodes it into something
meaningful (ideally, the decoded meaning is what the sender had
intended
4. Sender looks for evidence that the other person received and
understood the transmitted message e.g. formal or indirect Note:
Feedback repeats the communication process i.e. intended feedback
is encoded, transmitted, received, and decoded from the receiver to
the sender of the original message
Noise -- Psychological, social, and structural barriers that distort
and obscure the sender's intended message
Encode
feedback
Transmit
Feedback

8. Improving Communication Coding/Decoding
Communication channel proficiency
Sender/receiver have motivation and ability to use the communication channel
Similar codebooks
Both parties generate similar meaning from symbols, language, etc
Shared context mental models
Parties have a common understanding of the environment
Experience encoding the message
Sender is experienced at communicating the message topic
Four main factors that influence the effectiveness of the encodingdecoding
process:
1. Communication proficiency
• Sender and receiver are both motivated and able to communicate
through the communication channel
2. Similar codebooks
• Codebooks are symbols used to convey message content e.g. speak
the same language
3. Shared mental models of the communication context
• Share common understanding relating to the information so less
communication is needed to clarify meaning
4. Experience encoding the message
• As a person gains more experience with the subject matter, he/she
becomes more proficient at conveying the message

9. Email communication video

10. Email Communication How email has altered communication
Now preferred medium for coordinating work
Tends to increase communication volume
Significantly alters communication flow
Reduces some selective attention biases
Problems with
Communicates emotions poorly
Reduces politeness and respect (flaming)
Inefficient for ambiguous, complex, novel situations
Increases information overload
• Preferred medium for coordinating work e.g. scheduling
• Often increases the volume of communication
• Significantly alters the flow of information within groups and
throughout the organization
• Reduces some face-to-face and telephone communication
• Increases communication with people up the hierarchy
• Social and organizational status differences are somewhat less
apparent
• Reduces stereotype biases (hides age, race, etc.), however, it also
tends to increase reliance on stereotypes when we are already
aware of the other person’s personal characteristics

11. Communicating Through Social Media
User-generated content
Users, not professionals, create the content
Usually interactive -- viewer can respond
Includes social sites -- Facebook, blogs, wikis, tweets
Serves diverse functions
Presenting individual’s identity, enabling conversations, sharing information, sensing others’ online presence, maintaining relationships, revealing status, supporting interest communities
User-generated content
• Users, not professionals, create the content
• Usually interactive and dynamic—can respond vs. passive reading or
watching
• Many forms e.g. blogs, wikis, instant messages, tweets, personal
presentation sites (e.g. Facebook)
Serves diverse functions
• Presenting individual’s identity; enabling conversations; sharing
information; sensing others’ online presence; maintaining
relationships; revealing reputation/status; etc.

12. Nonverbal Communication
Influences meaning of verbal symbols
Less rule bound than verbal communication
Most is automatic and nonconscious
Includes actions, facial gestures, physical distance and even silence
• Most information is communicated nonverbally
• Like a parallel conversation, nonverbal cues signal subtle
information to both parties
• Influences meaning of verbal symbols
• Less rule-bound than verbal communication
• More ambiguous and susceptible to misinterpretation
• Most is automatic and nonconscious
• Can communicate the same meaning across cultures e.g. smiling
Courtesy of Microsoft.

13. Emotional Contagion
The automatic process of sharing another person’s emotions by mimicking their facial expressions and other nonverbal behavior
Serves three purposes:
Provides continuous feedback to speaker
Increases emotional understanding of the other person’s experience
Communicates a collective sentiment -- sharing the experience as part of drive to bond
The nonconscious process of ‘catching’ or sharing another person’s
emotions by mimicking that person’s facial expressions and other
nonverbal behavior
Serves three purposes
1. Provides continuous feedback that we understand and empathize with
the sender
2. Increases emotional understanding of the other person’s experience –
helps experience that emotion more fully
3. Communicates a collective sentiment i.e. social solidarity—people see
others share the same emotions that they feel

14. Choosing Channels: Social Acceptance
Do others support use of that communication channel for that purpose?
Depends on:
Firm/team norms for using the channel
Individual preferences for using the channel
Symbolic meaning of the channel
Do others support use of that communication channel for that
purpose?
Depends on:
1. Organizational and team norms regarding the use of specific
communication channels
• e.g. or text messaging is the medium of choice in some
organizations, whereas meeting face-to face may be the norm
elsewhere
2. Individual preferences for specific communication channels
• e.g. some co-workers ignore (or rarely check) voice mail, but quickly
respond to text messages or
3. Symbolic meaning of a channel
• e.g. some may be considered professional vs. casual

15. Choosing Channels: Media Richness
The channel’s data-carrying capacity needs to be aligned with the communication activity
High richness when channel:
conveys multiple cues
allows timely feedback
allows customized message
permits complex symbols
Use rich communication media when the situation is nonroutine and ambiguous
Media richness – a medium’s data-carrying capacity i.e. the volume
and variety of information that can be transmitted during a specific
time
Communication channel has high richness when:
• It is able to convey multiple cues e.g. both verbal and nonverbal
information
• Allows timely feedback from receiver to sender
• Allows the sender to customize the message
• Makes use of complex symbols e.g. words with multiple meanings
Note: Use rich communication media when the communication
situation is nonroutine and ambiguous

16. Hierarchy of Media Richness
Overloaded
Zone
Media
Richness
Oversimplified
Zone
• Highest for face-to-face – transmit verbal and nonverbal, get almost
immediate feedback from the receiver, quickly adjust message and
style, use complex language
• Lowest for lean media e.g. financial statements, newsletters,
Contingencies of media richness:
1. Routine situations – lean media works because the sender and
receiver have common expectations through shared mental models
2. Ambiguous situations – requires rich media because the parties must
share large amounts of information with immediate feedback to
resolve multiple and conflicting interpretations
Lean
Nonroutine/
Ambiguous
Routine/clear
Situation

17. Computer-Mediated Exceptions to Media Richness
Media richness theory less applicable to computer-mediated channels because:
Able to multi-communicate through lean channels
More varied proficiency levels
Lean channels have less social distraction than do media rich channels
Ability to multi-communicate
• Multi-tasking in communication – some people may be able to
exchange as much information through two or more lean media as
through one high media richness channel e.g. write text message
while listening to a discussion at a large meeting
Communication proficiency
• People with high proficiency can “push” more information through
the channel e.g. experienced smartphone users can deal with
messages quickly
Social presence effects
• Lean channels have less social distraction than do media rich
channels

18. Persuasive Communication
Changing another person’s beliefs and attitudes.
Spoken communication is more persuasive because:
accompanied by nonverbal communication
has high quality immediate feedback
has high social presence
Persuasion – changing another person’s beliefs and attitudes
Spoken communication (particularly face-to-face interaction) is
more persuasive because:
• It is typically accompanied by nonverbal communication e.g.
animated hand gestures can amplify the emotional tone of the
message
• It offers the sender high quality immediate feedback whether or not
the receiver understands and accepts the message – sender can
adjust more quickly than with written communication
• It has high social presence so listeners are more motivated to pay
attention and consider the sender’s idea

19. © 2013 The McGraw-Hill Companies, Inc. All rights reserved
Video
Improve your communication skills:
McShane/Von Glinow OB 6e
© 2013 The McGraw-Hill Companies, Inc. All rights reserved

20. Communication Barriers
Perceptions
Filtering
Language
Jargon
Ambiguity
Information Overload
Perceptions
• Receivers don’t listen as well as senders assume
• Senders overestimate how well other people understand the
message
Filtering
• May involve deleting or delaying negative information or using less
harsh words so the message sounds more favorable
Language
• Jargon – specialized words and phrases may become a source of
noise when transmitted to people who do not have the jargon
codebook
• Ambiguity – language has built-in ambiguities that cause
misunderstandings; may be used to minimize the risk of conflict e.g.
using a phrase such as “rightsizing”
Information Overload
• The volume of information received exceeds the person’s capacity to
process it

21. Information Load Information Overload Time
Episodes of information overload
Information Load
Employee’s information processing capacity
• Information processing capacity – the amount of information an
employee is able to process in a fixed unit of time
• Information load – the amount of information to be processed per
unit of time (jobs have a varying information load)
• Information overload creates noise in the communication system –
information gets overlooked or misinterpreted when people can’t
process it fast enough, resulting in poorer quality decisions and
higher stress
Time

22. Managing Information Overload
Solution 1: Increase info processing capacity
Learn to read faster
Scan through documents more efficiently
Remove distractions
Time management
Temporarily work longer hours
Solution 2: Reduce information load
Buffering
Omitting
Summarizing
Solution 1: Increase information processing capacity
• Learn to read faster
• Scan through documents more efficiently
• Remove distractions
• Time management
• Temporarily work longer hours
Solution 2: Reduce information load
• Buffering – having incoming information filtered
• Omitting – overlooking messages
• Summarizing – reading executive summaries

23. Cross-Cultural Communication
Verbal differences
Language
Voice intonation
Silence/conversational overlaps
Nonverbal differences
Some nonverbal gestures are universal, but others vary across cultures
Verbal differences
• Language
• Voice intonation
• Silence and conversational overlaps
Nonverbal differences
• Nonconscious or involuntary nonverbal cues tend to have the same
meaning (e.g. smiling) but deliberate gestures often have different
interpretations

24. Gender Communication Differences
Men consider more power, status, functionality
Report talk
Give advice quickly
Dominate conversation
Women consider more interpersonal relations
Rapport talk
Indirect advice/requests
Sensitive to nonverbal cues
Men more likely than women to view conversations as negotiations
of relative status and power
• Report talk – impersonal and efficient information exchange
• Give advice directly
• Dominate the talk time in conversations with women
Women tend to:
• Engage in more “rapport talk” – relationship building
• Make more use of indirect requests; apologize more often; seek
advice from others more quickly than do men
• More sensitive than men to nonverbal cues in face-to-face meetings

25. Getting Your Message Across
Empathize
Repeat the message
Use timing effectively
Focus on the problem, not the person
1. Empathize
• e.g. being sensitive to words that may be ambiguous or trigger the
wrong emotional response
2. Repeat the message
• e.g. rephrase the key points a couple of times
3. Use timing effectively
• Find a time when the receiver is less likely to be distracted
4. Focus on the problem not the person
• When communicating bad news or criticism
Courtesy of Microsoft.

26. Active Listening Process & Strategies
Sensing
Postpone evaluation
Avoid interruptions
Maintain interest
Active
Listening
Sensing
• Postpone evaluation – not forming an opinion until the speaker has
finished
• Avoid interruptions – give speaker chance to finish message
• Remain motivated to listen to the speaker
Evaluating
• Empathize – try to understand and be sensitive to the speaker’s
feelings, thoughts, and situation
• Organize the speaker’s ideas during the communication
Responding
• Show interest e.g. maintain sufficient eye contact and send back
signals e.g. “I see”
• Clarify the message—rephrase speaker’s ideas at appropriate breaks
e.g. “So you are saying that….”
Responding
• Show interest
• Clarify the message
Evaluating
• Empathize
• Organize information

27. Communicating in Hierarchies
Workspace design
Open offices – consider noise, distractions
Clustering people in teams
Web-based organizational communication
Wikis -- collaborative document creation
E-zines -- rapid distribution of company news
Direct communication with management
Management by walking around (MBWA)
Town hall meetings
Workspace design
• Open offices – all employees (including management) work
together; increase communication; potentially increases noise,
distractions, loss of privacy
• Cluster employees into team spaces
Web-based organizational communication
• Wikis – collaborative document creation
• E-zines – rapid distribution of company news
Direct communication with management
• Management by walking around (MBWA)
• Town hall meetings/roundtable forums to hear opinions

28. Organizational Grapevine
Early research findings
Transmits information rapidly in all directions
Follows a cluster chain pattern
More active in homogeneous groups
Transmits some degree of truth
Changes due to internet
, social networking, tweets are becoming the main grapevine media
Social networks are now global
Grapevine – an unstructured and informal network founded on
social relationships rather than organizational charts or job
descriptions
Early research findings
• Transmits information very rapidly in all directions
• Follows a cluster chain pattern
• More active in homogeneous groups
• Transmits some degree of truth
Changes due to internet
• , social networking sites, tweets becoming the main grapevine
mediums
• Social networks are now global

29. Conflict and Negotiation in the Workplace
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

30. Managing Intergenerational Conflict at L’Oreal Canada
L’Oreal Canada executive Marjolaine Rompré (left in this photo, with CEO Javier San Juan and Garnier brand director Sheila Morin) introduced educational seminars to help employees across generations improve their mutual understanding and thereby minimize conflict.
L’Oreal Canada executive Marjolaine Rompré (left in this
photo, with CEO Javier San Juan and Garnier brand director
Sheila Morin) introduced educational seminars to help
employees across generations improve their mutual
understanding and thereby minimize conflict.

31. Is Conflict Good or Bad? Negative consequences of conflict
Wastes time, energy, resources
Less information sharing, productivity
More organizational politics
More job dissatisfaction, turnover, stress
Weakens team cohesion (when conflict is within team)
Positive consequences of conflict
Better decisions (tests logic, questions assumptions)
Improves responsiveness to external environment
Increases team cohesion (when conflict outside the team)
Negative consequences of conflict:
• Wastes time, energy, and resources
• Discourages people from sharing information; reduced
productivity
• More organizational politics; more job dissatisfaction turnover;
stress
• Weakens team cohesion (when conflict is within team)
Positive consequences of conflict:
• Better decisions (tests logic, questions assumptions)
• Improves responsiveness to external environment
• Increases team cohesion (when conflict is outside the team)

32. Emerging View: Constructive Versus Relationship Conflict
Constructive (task-oriented) conflict
Parties focus on the issue while maintaining respect for people having other points of view.
Try to understand the logic and assumptions of each position
Relationship (socioemotional) conflict
Parties focus on personal characteristics (not issues) as the source of conflict.
Try to undermine each other’s worth/competence
Accompanied by strong negative emotions (drive to defend)
Constructive (task-related) conflict
• Conflict is aimed on the issues, while maintaining respect for
people having other points of view
• Try to understand the logic and assumptions of each position
Relationship (socioemotional) conflict
• Focuses on the characteristics of other individuals – rather
than the issues, as the source of conflict i.e. personality
clashes
• Try to undermine each other’s worth/competence/credibility
• Accompanied by strong negative emotions (drive to defend)

33. Minimizing Relationship Conflict
Goal: encourage constructive conflict, minimize relationship conflict
Problem: relationship conflict often develops when engaging in constructive conflict
Three conditions that minimize relationship conflict during constructive conflict:
Emotional intelligence
Cohesive team
Supportive team norms
Goal – encourage constructive conflict; minimize relationship
conflict
Problem – relationship conflict often develops when engaging
in constructive conflict (influenced by level of debate and the
more the issue is tied to our self-concept)
Three conditions that minimize relationship conflict during
constructive conflict episodes:
1. Emotional intelligence – allows individuals to regulate their
emotions during debate which reduces escalation
2. Cohesive team – produces a stronger social identity with the
group so team members are motivated to avoid escalating
relationship conflict during emotional discussions
3. Supportive team norms – team norms may encourage diffusing
relationship conflict when it first appears e.g. use humor which
offsets negative feelings

34. Conflict Perceptions and
The Conflict Process
Sources of
Conflict
Conflict Perceptions and
Emotions
Manifest
Conflict
Conflict
Outcomes
Sources of conflict – leads one or both parties to perceive that
conflict exists
• Become aware that another party’s statements and actions are
incompatible with their own goals
Conflict perceptions and emotions
• Perceptions usually interact with emotions experienced
Manifest conflict
• Conflict episodes – decisions and behaviors of one party
toward the other e.g. ranges from subtle nonverbal behaviors
to aggression; also conflict resolution style
Conflict escalation cycle
• Conflict process is really a series of episodes that potentially
cycle into conflict escalation
Conflict outcomes – may be positive or negative
Conflict
Escalation Cycle

35. Sources of Conflict
Bad bosses:
Destroying silos:
Hollywood labor unions:
Toxic co-workers:

36. Structural Sources of Conflict
Incompatible
Goals
One party’s goals perceived to interfere with other’s goals
Differentiation
Different values/beliefs
Explains cross-cultural and generational conflict
1. Goal incompatibility
• Goals of one party perceived to interfere with other’s goals e.g.
cost efficiency vs. customer service
2. Differentiation
• Divergent values/beliefs – may agree on a common goal but
have different beliefs about how to achieve that goal
• Explains cross-cultural and intergenerational conflicts, tension
during mergers
3. Interdependence
• Conflict increases with interdependence – greater chance that
each side will disrupt or interfere with the other’s goals
• Three levels (pooled is lowest)
1. Pooled interdependence – work units rely on a common resource
or authority e.g. shared administrative support
2. Sequential interdependence – one person's output is next person's
input e.g. assembly line
3. Reciprocal interdependence – output is exchanged so employees
are highly dependent on each other e.g. medical team
Interdependence
Conflict increases with interdependence
Parties more likely to interfere with each other
more

37. Structural Sources of Conflict
Scarce Resources
Motivates competition for the resource
Ambiguous Rules
Creates uncertainty, threatens goals
Without rules, people rely on politics
4. Scarce resources
• Motivates competition for the resource – may undermine
others who also need that resource to fulfill their goals
5. Ambiguous rules
• Creates uncertainty, threatens goals
• Encourages political tactics
6. Communication problems
• Rely on stereotypes when parties lack opportunity to
communicate
• Less motivated to communicate because relationship conflict is
uncomfortable
• Arrogant communication heightens perceptions of conflict –
escalates conflict when other party reciprocates
Communication Problems
Increases stereotyping
Reduces motivation to communicate
Escalates conflict when arrogant

38. Five Conflict Handling Styles
High
Forcing
Problem-solving
Assertiveness
Compromising
Vary in degree of assertiveness (relative importance placed on
maximizing outcomes) and cooperativeness (relative
importance placed on preserving the relationship)
1. Problem-solving
• Win-win orientation – tries to find a mutually beneficial solution
i.e. both parties collaborate to identify common ground and
potential solutions that satisfy everyone
2. Forcing
• Win-lose orientation – tries to win the conflict at the other’s
expense
• Relies on “hard” influence tactics, particularly assertiveness to
get one’s own way
3. Avoiding
• Smooth over or avoid conflict situations
• Low concern for both self and the other party – avoiders try to
find ways to avoid thinking about the conflict
4. Yielding
• Giving in completely to the other side’s wishes – making
unilateral concessions and offering help with no expectation of
reciprocal help
5. Compromising
• Reach a middle ground between the interests of the parties
Avoiding
Yielding
Low
High
Cooperativeness

39. Conflict Handling Contingencies
Problem solving
Best when:
Interests are not perfectly opposing
Parties have trust/openness
Issues are complex
Problem: other party may use information to its advantage
Forcing
you have a deep conviction about your position
quick resolution required
other party would take advantage of cooperation
Problems: relationship conflict, long-term relations
Best conflict handling style depends on the situation
1. Problem solving
Best when:
• Interests are not perfectly opposing
• Parties have trust/openness
• Issues are complex
Problem – sharing information that the other party might use
to their advantage; takes time
2. Forcing
• You have a deep conviction about your position
• Quick resolution required
• Other party would take advantage of cooperation
Problem – highest risk of relationship conflict; may damage
long-term relations; reduce future problem solving

40. Conflict Handling Contingencies (con’t)
Avoiding
Best when:
conflict is emotionally-charged (relationship conflict)
conflict resolution cost is higher than benefits
Problems: doesn’t resolve conflict, frustration
Yielding
other party has much more power
issue is much less important to you than other party
value/logic of your position is imperfect
Problems: increases other’s expectations; imperfect solution
3. Avoiding
Best when:
• Conflict has become emotionally-charged (relationship conflict)
• Conflict resolution cost is higher than its benefits
Problem – doesn’t usually resolve the conflict; may increase
the other party’s frustration
4. Yielding
• Other party has much more power
• Issue is much less important to you than to the other party
• Value/logic of your position is imperfect
Problem – increases other party’s expectations for future

41. Conflict Handling Contingencies (con’t)
Compromising
Best when:
Parties have equal power
Quick solution is required
Parties lack trust/openness
Problem: Sub-optimal solution where mutual gains are possible
5. Compromising
Best when:
• Parties have equal power
• Quick solution is required i.e. time pressures
• Parties lack trust/openness for problem solving
Problem – sub-optimal solution where mutual gains are
possible

42. Organizational Approaches to Conflict Resolution
Emphasize superordinate goals
Emphasize common objective rather than conflicting sub-goals
Reduces goal incompatibility and differentiation
1. Emphasize superordinate goals
Superordinate goal – a broad goal that all parties to a dispute
value and agree is important
• Emphasize common strategic objective rather than objectives
specific to the individual or work unit
• Reduces goal incompatibility and differentiation
2. Reduce differentiation
• Reduce differences that generate conflict
• Create common experiences e.g. moving staff across merged
companies

43. Organizational Approaches to Conflict Resolution (con’t)
Reduce differentiation
Remove differences that generate conflict
e.g. Move employees around to different jobs
Improve communication/understanding
Employees understand and appreciate each other’s views through communication
Relates to contact hypothesis
Warning: Apply communication/understanding after reducing differentiation
Conflicting parties are given more opportunities to
communicate and understand each other communication
• Conflicting parties are given more opportunities to
communicate and understand each other
• Relates to contact hypothesis and the Johari Window
• Warning – should be applied only when differentiation is
sufficiently low/after differentiation ha been reduced (or could
escalate conflict); people in collectivist and high power
distance cultures are less comfortable with using direct
communication

44. Organizational Approaches to Conflict Resolution (con’t)
Reduce interdependence
Create buffers
Use integrators
Combine jobs
Increase resources
Increase amount of resources available
Clarify rules and procedures
Establish rules and procedures
Clarify roles and responsibilities
4. Reduce interdependence
• Create buffers – decoupling the relationship e.g. build up
inventories in assembly line vs. just-in-time inventory system
• Use integrators i.e. employees (human buffers) who coordinate
the activities of differentiated work units toward completion of
a common task e.g. coordinate efforts of several departments
to launch a new product
• Combine jobs – reduces task interdependence and is a form of
job enrichment e.g. each person assembles an entire product
5. Increase resources
• Increase the amount of resources available
6. Clarify rules and procedures
• Establish rules and procedures e.g. create a schedule
• Clarifying roles and responsibilities

45. Types of Third Party Intervention
High
Mediation
Inquisition
Level of
Process Control
Arbitration
Any attempt by a relatively neutral person to help conflicting
parties resolve their differences
Types of Third Party Interventions
Can be classified by their level of control over the process and
control over the decision
1. Arbitration
• High control over final decision – low control over process
• Final stage of grievances by unionized employees in many
countries – becoming more common in nonunion conflicts
2. Inquisition
• Control all discussion about the conflict
• High decision control and high process control
3. Mediation
• Mediators have high control over the intervention process, but
little to no control over the conflict resolution decision
Low
Level of Outcome Control
High

46. Choosing the Best 3rd Party Strategy
Managers prefer inquisitional strategy, but not usually best approach
Mediation potentially offers highest satisfaction with process and outcomes
Use arbitration when mediation fails
Managers prefer inquisitional strategy
• Consistent with decision-oriented nature of managerial jobs
• Usually the least effective third-party conflict resolution method
• Conflicts with procedural justice principles
Mediation potentially offers highest satisfaction with process
and outcomes
• Gives employees more responsibility for resolving disputes
• When mediation fails – arbitration seems to work best due to
procedural fairness i.e. applies predetermined rules of evidence
and other processes

47. Resolving Conflict Through Negotiation
Negotiation -- conflicting parties attempt to resolve their divergent goals by redefining the terms of their interdependence.
Need to balance collaborative behaviors (create value) and competitive behaviors (claim value)
Negotiation – attempting to resolve divergent goals by
redefining terms of interdependence
• Everyone negotiates every day
• Need to balance collaborative behaviors (create value) and
competitive behaviors (claim value)

48. Bargaining Zone Model Your Positions Opponent’s Positions Initial
Target
Resistance
Area of
Potential
Agreement
Resistance
Target
Initial
Bargaining zone – negotiation process involves each party
moving along a continuum in opposite directions with an area of
potential overlap called the bargaining zone
1. Initial offer point
• Your opening offer – best expectation
2. Target point
• Your realistic goal or expectation for a final agreement
3. Resistance point
• The point beyond which you will make no further concessions
Opponent’s Positions

49. Conflict Handling p343
Individually – pick the best alternative for each scenario:
As a team review your responses: similarities and differences.
Review answers from me.

50. Strategies for Claiming Value
Claiming value – aiming for the best possible outcomes for yourself and your constituents.
Prepare and set goals
Know your BATNA
cost of ending negotiation; best outcome through another means)
Manage time
avoid time pressure on you; avoid escalation of commitment effect
Manage first offers and concessions
Claiming value – aiming for the best possible outcomes for
yourself and your constituents
Four skills to effectively claim value in negotiations:
1. Prepare and Set Goals – think through all three positions in the
bargaining zone model; research what other party wants
2. Know Your BATNA (best alternative to a negotiated agreement)
– estimates your power in the negotiation and represents the
estimated cost of walking away from the relationship
3. 3. Manage Time – negotiators make more concessions as a
deadline get closer
4. 4. Manage First Offers and Concessions – first offer creates a
position around which subsequent negotiations are anchored;
negotiators need to make concessions – offer concessions in
installments

51. Strategies for Creating Value
Creating value – use problem solving to help both parties reach the best outcomes.
Gather information
Understand other party’s needs/expectations
Discover priorities through offers and concessions
Make multi-issue proposals
Build the relationship (trustworthiness)
Common backgrounds, manage first impressions, maintaining positive emotions, act reliably
Creating value – involves cooperating to help both negotiators
obtain the best possible outcomes i.e. applies problem-solving
1. Gather Information – understand other’s party’s needs/
expectations e.g. look beyond stated position; use probing
questions
2. Discover Priorities Through Offers and Concessions – use multiissue
offers rather than discussing one issue at a time; reveals
relative importance of the issues to each party e.g. offer a client
a specific price, delivery date etc. – the client’s counteroffer
signals aspect is more or less important
3. Build the Relationship (Trustworthiness) – discover common
backgrounds and interests; manage first impressions; emotional
intelligence to maintain positive emotions; be reliable

52. Situational Influences on Negotiation
Location
Physical setting
Audience
1. Location
• Advantages of ‘home turf’ i.e. you are familiar with the
negotiating environment; no travel-related stress; easier
access to resources
• Problem – you can’t walk out of negotiations
• Neutral territory e.g. phone calls, videoconferencing but skilled
negotiators usually prefer media richness of face-to-face
2. Physical setting
• Physical distance between the parties and formality of the
setting can affect negotiations e.g. convey win-win orientation
by dispersing people around the table
3. Audience Characteristics
• Audience – anyone with a vested interest in the negotiation
outcomes e.g. executives, other team members, general public
• When observed, negotiators tend to be more competitive, less
willing to make concessions, and more likely to engage in
political tactics against the other party i.e. saving face and
taking “hardline” approach

53. Week 5 wrap up
Questions?
Assignments for next week