1. Conflict and Negotiation
Chapter 9:
Conflict and Negotiation
Organizational Behaviour
5th Canadian Edition
Langton / Robbins / Judge
Copyright © 2010 Pearson Education Canada

2. Chapter Outline Conflict Defined Conflict Resolution Conflict Outcomes
Negotiation
Individual Differences in Negotiation
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

3. Conflict and Negotiation
What is conflict?
How can conflict be resolved?
What are the effects of conflict?
How does one negotiate effectively?
What are some of the contemporary issues in negotiation?
This material is found at the beginning of the chapter.
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

4. 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.
Functional
Supports the goals of the group and improves its performance.
Dysfunctional
Hinders group performance.
Material pertinent to this discussion is found under “Conflict Defined.”
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

5. Research Findings Cognitive Affective
Conflict related to differences in perspectives and judgments.
Task-oriented
Results in identifying differences
Usually functional conflict
Affective
Emotional conflict aimed at a person rather than an issue.
Dysfunctional conflict
Material pertinent to this discussion is found under “Conflict Defined.”
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

6. Sources of Conflict Communication Structure:
Size, specialization, and composition of the group
Ambiguity responsibility
Zero-sum reward systems
Leadership style
The diversity of goals
If one group is dependent on another
Material pertinent to this discussion is found under “Conflict Defined.”
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

7. Exhibit 9-1 Conflict Intensity Continuum
Annihilatory
Overt efforts to destroy
conflict
the other party
Aggressive physical attacks
Threats and ultimatums
Assertive verbal attacks
Material pertinent to this discussion is found under “Conflict Defined.”
Overt questioning or
challenging of others
Minor disagreements or No
misunderstandings
conflict
Sources: Based on S. P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp ; and F. Glasl, “The Process of Conflict Escalation and the Roles of Third Parties,” in Conflict Management and Industrial Relations, ed. G. B. J. Bomers and R. Peterson (Boston: Kluwer-Nijhoff, 1982), pp ).
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

8. Conflict Resolution: Two Dimensions
Cooperativeness
The degree to which one party attempts to satisfy the other party’s concerns.
Assertiveness
The degree to which one party attempts to satisfy his or her own concerns.
Material pertinent to this discussion is found under “Conflict Resolution.”
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

9. Conflict Resolution: Conflict-Handling Strategies
Forcing
Imposing one’s will on the other party.
Problem solving
Trying to reach an agreement that satisfies both one’s own and the other party’s aspirations as much as possible.
Avoiding
The desire to withdraw from or suppress a conflict.
Yielding
Accepting and incorporating the will of the other party.
Compromising
A situation in which each party to a conflict is willing to give up something.
Material pertinent to this discussion is found under “Conflict Resolution.”
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

10. Exhibit 9-2 Conflict-Handling Strategies and Accompanying Behaviour
Uncooperative
Cooperative
COOPERATIVENESS
Trying to satisfy the other person’s concerns
Forcing
Satisfying one’s own interests
without concern for the other’s
interests
• Make threats and bluffs
• Make persuasive arguments
• Make positional commitments
Problem solving
Clarifying differences to find
mutually beneficial outcomes
• Exchange information about
priorities and preferences
• Show insights
• Make trade-offs between
important and unimportant issues
Compromising r
Giving up something to reach an
outcome (done by both parties)
• Match other’s concessions
• Make conditional promises
and threats
• Search for a middle ground A
voiding
Withdrawing from or ignoring
conflict
• Don’t think about the issues
Yielding
Placing the other’s interests above
one’s own
• Make unilateral concessions
• Make unconditional promises
• Offer help
ASSERTIVENESS
Trying to satisfy one’s own concerns ’
Unassertive
Assertive
Sources: Based on K. W. Thomas, “Conflict and Negotiation Processes in Organizations,” in Handbook of Industrial and Organizational Psychology, vol. 3, 2nd ed., ed. M. D. Dunnette and L. M. Hough (Palo Alto, CA: Consulting Psychologists Press, 1992), p. 668; C. K. W. De Dreu, A. Evers, B. Beersma, E. S. Kluwer, and A. Nauta, “A Theory-Based Measure of Conflict Management Strategies in the Workplace,” Journal of Organizational Behavior 22, no. 6 (September 2001), pp ; and D. G. Pruitt and J. Rubin, Social Conflict: Escalation, Stalemate and Settlement (New York: Random House, 1986).
Material pertinent to this discussion is found under “Conflict Resolution.”
Cooperativeness: The degree to which one party attempts to satisfy the other party’s concerns.
Assertiveness: The degree to which one party attempts to satisfy his or her own concerns.
Specific Intentions:
Competing: A desire to satisfy one’s interests, regardless of the impact on the other parties.
Collaborating: A situation where the parties to a conflict each desire to satisfy fully the concerns of all parties.
Avoiding: The desire to withdraw from or suppress a conflict.
Accommodating: The willingness of one party in a conflict to place the opponent’s interests above his or her own.
Compromising: A situation in which each party to a conflict is willing to give up something.
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

11. What Can Individuals Do to Manage Conflict?
Problem solving
Developing super-ordinate goals
Smoothing
Compromising
Avoidance
Material pertinent to this discussion is found under “Conflict Resolution.”
Problem-solving: Requesting a face-to-face meeting to identify the problem and resolve it through open discussion.
Developing super ordinate goals: Creating a shared goal that requires both parties to work together, and motivates them to do so.
Smoothing: Playing down differences while emphasizing common interests with the other party.
Compromising: Agreeing with the other party that each will give up something of value to reach an accord.
Avoidance: Withdrawing from, or suppressing, the conflict.
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

12. Techniques for Managing Work-Related Conflicts
Expansion of resources
Authoritative command
Altering the human variable
Altering the structural variables
Material pertinent to this discussion is found under “Conflict Resolution.”
Expansion of Resources: The scarcity of a resource--say, money, promotion opportunities, office space--can create conflict. Expansion of the resource can create a win-win solution.
Authoritative command: Management can use its formal authority to resolve the conflict and then communicate its desires to the parties involved.
Altering the human variable: Behavioural change techniques such as human relations training can alter attitudes and behaviours that cause conflict.
Altering the structural variables: The formal organization structure and the interaction patterns of conflicting parties can be changed through job redesign, transfers, creation of coordinating positions, and the like.
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

13. Factors That Lead to Personality Conflicts
Misunderstandings based on age, race, or cultural differences
Intolerance, prejudice, discrimination, and bigotry
Perceived inequalities
Misunderstandings, rumours, or falsehoods about an individual or group
Blaming for mistakes or mishaps (finger-pointing)
Material pertinent to this discussion is found under “Conflict Resolution.”
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

14. Tips for Employees Having a Personality Conflict
Communicate directly with the other person to resolve the perceived conflict.
Avoid dragging co-workers into the conflict.
If necessary, seek help from direct supervisors or human resource specialists.
Material pertinent to this discussion is found under “Conflict Resolution.”
When dealing with the other person emphasize problem solving and common objectives, not personalities.
Source: R. Kreitner and A. Kinicki, Organizational Behavior, 6th ed. (New York: McGraw-Hill, 2004), p. 492, Table Reprinted by permission of McGraw-Hill Education.
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

15. Tips for Third-Party Observers of a Personality Conflict
Do not take sides.
Suggest the parties work things out themselves.
If necessary, refer the problem to parties’ direct supervisors.
Material pertinent to this discussion is found under “Conflict Resolution.”
Source: R. Kreitner and A. Kinicki, Organizational Behavior, 6th ed. (New York: McGraw-Hill, 2004), p. 492, Table Reprinted by permission of McGraw-Hill Education.
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

16. Tips When Manager’s Employees Are Having a Personality Conflict
Investigate and document conflict.
If appropriate, take corrective action (e.g., feedback or behaviour shaping).
If necessary, attempt informal dispute resolution.
Refer difficult conflicts to human resource specialists or hired counsellors.
Material pertinent to this discussion is found under “Conflict Resolution.”
What managers can do if employees are having a personality conflict
Source: R. Kreitner and A. Kinicki, Organizational Behavior, 6th ed. (New York: McGraw-Hill, 2004), p. 492, Table Reprinted by permission of McGraw-Hill Education.
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

17. Exhibit 9-3 Strategies For Dealing With Intercultural Conflict
Material pertinent to this discussion is found under “Conflict Resolution.”
We suggest in Exhibit 9-3 that there is an optimal level of conflict in the workplace to maximize productivity, but this is decidedly a North American viewpoint. Many Asian cultures believe that conflict almost always has a negative effect on the work unit.
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

18. Resolving Intercultural Conflicts
Those from Asian cultures show a preference for conflict avoidance, compared with Americans and Britons.
Chinese and East Asian managers prefer compromising as a strategy, contrary to North Americans.
North Americans prefer a problem-solving approach to conflicts, which yields a win-win solution.
Win-win solutions are less likely to be achieved in Asian cultures.
East Asian managers tend to ignore conflict rather than make it public.
Japanese managers tend to choose non-confrontational styles.
Westerners are more likely to choose forcing as a strategy than Asians.
North Americans expect that negotiations may lead to a legal contract; Asian cultures rely less on legal contracts and more on relational contracts.
Material pertinent to this discussion is found under “Conflict Resolution.”
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

19. Third-Party Conflict Resolution
Facilitation
Conciliation
Ombudsperson
Peer Review
Mediation
Arbitration
Material pertinent to this discussion is found under “Conflict Resolution.”
Occasionally, individuals or group representatives reach a stalemate and are unable to resolve their differences. In such cases, they may turn to alternative dispute resolution (ADR), where a third party helps both sides find a solution outside a courtroom.
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

20. Third-Party Conflict Resolution
Facilitator
Generally acquainted with both parties, working with both sides to reach an agreement.
Conciliator
Trusted third party who provides an informal communication link between the negotiator and the opponent.
Informal link
Used extensively in international, labour, family, and community disputes
Fact-find, interpret messages, persuade disputants to develop agreements
Material pertinent to this discussion is found under “Conflict Resolution.”
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

21. Third-Party Conflict Resolution
Ombudsperson
An impartial party, widely respected, and trusted.
Peer Review
A panel of peers who have been put together to hear both sides of the issue from the parties involved and to recommend a solution.
Material pertinent to this discussion is found under “Conflict Resolution.”
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

22. Third-Party Conflict Resolution
Mediator
a neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives.
Labour-management negotiations and civil court disputes
Settlement rate is about 60 percent; satisfaction rate is about 75 percent
Participants must be motivated to bargain and settle
Best under moderate levels of conflict
Mediator must appear neutral and non-coercive
Arbitrator: has authority to dictate an agreement.
Voluntary (requested) or compulsory (imposed by law or contract)
Always results in a settlement
May result in further conflict
Material pertinent to this discussion is found under “Conflict Resolution.”
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

23. Exhibit 9-4 Conflict and Unit Performance
Material pertinent to this discussion is found under “Conflict Resolution.”
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

24. Conflict Outcomes Three desired outcomes of conflict
Agreement: equitable and fair agreements are the best outcomes
Stronger relationships: when conflict is resolved positively, this can lead to better relationships and greater trust.
Learning: handling conflict successfully teaches one how to do it better next time.
Material pertinent to this discussion is found under “Conflict Outcomes.”
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

25. Negotiation
A process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for them.
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.
Material pertinent to this discussion is found under “Negotiation.”
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

26. How to Negotiate Five steps to negotiation: Identify BATNA:
Developing a strategy
Definition of ground rules
Clarification and justification
Bargaining and problem solving
Closure and implementation
Identify BATNA:
Best Alternative To a Negotiated Agreement.
Material pertinent to this discussion is found under “Negotiation.”
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

27. Exhibit 9-6 The Negotiation Process
Developing a strategy
Defining ground rules
Clarification and Justification
Material pertinent to this discussion is found under “Negotiation.”
Bargaining and Problem Solving
Source: This model is based on R. J. Lewicki, “Bargaining and Negotiation,” Exchange: The Organizational BehaviorTeaching Journal 6, no. 2 (1981), pp
Closure and Implementation
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

28. Exhibit 9-7 Staking Out the Bargaining Zone
$400
$475
$525
$600
Buyer’s aspiration range
Seller’s aspiration range
Bargaining
Zone
Buyer’s
Seller’s
Buyer’s
Seller’s
Material pertinent to this discussion is found under “Negotiation.”
target
resistance
resistance
target
point
point
point
point
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

29. Gender Differences in Negotiating Styles
Issues in Negotiation
Gender Differences in Negotiating Styles
Cultural Differences in Negotiating Style
Material pertinent to this discussion is found under “Individual Differences in Negotiation.”
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

30. Gender Differences Women Men
More inclined to be concerned with feelings and perceptions, and take a longer-term view.
View the bargaining session as part of an overall relationship.
Tend to want all parties in the negotiation to be empowered.
Use dialogue to achieve understanding.
Men
View the bargaining session as a separate event.
Use dialogue to persuade.
Material pertinent to this discussion is found under “Individual Differences in Negotiation.”
Do men and women negotiate differently? The answer appears to be “It depends.” It is difficult to generalize about gender differences in negotiating styles, because the research yields many opinions, but few reliable conclusions. Some researchers have documented interesting and relevant differences, however.
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

31. Cross-Cultural Negotiation
Negotiating styles vary across national culture
French: Like conflict.
Chinese: Draw out negotiations, believing they never end.
Japanese: Negotiate to develop relationships and commitment. Early offers lead to more information sharing and better integrative outcomes.
Americans: Impatient, desire to be liked.
Material pertinent to this discussion is found under “Individual Differences in Negotiation.”
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

32. Exhibit 9-8 Negotiating Attitude: Win-Win or Win Lose
Material pertinent to this discussion is found under “Individual Differences in Negotiation.”
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

33. Summary and Implications
What is conflict?
Conflict occurs when one party perceives that another party’s actions will have a negative effect on something the first party cares about.
How can conflict be resolved?
Depending on how a conflict is defined, they can be settled in a win-lose solution or a win-win solution.
What are the effects of conflict?
Conflict can be functional and improve group performance, or it can be dysfunctional and hinder it.
Material pertinent to this discussion is found at the end of the chapter.
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

34. Summary and Implications
How does one negotiate effectively?
Integrative bargaining tends to provide outcomes that satisfy all parties and build lasting relationships.
What are some of the contemporary issues in negotiation?
Negotiation styles differ between genders and across cultures.
Material pertinent to this discussion is found at the end of the chapter.
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

35. OB at Work
Material pertinent to this discussion is found at the end of the chapter.
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

36. For Review
1. What are the disadvantages to conflict? What are its advantages?
2. Under what conditions might conflict be beneficial to a group?
3. What is the difference between functional and dysfunctional conflict? What determines functionality?
4. What is dual concern theory?
5. What is the difference between a conciliator and a mediator?
Material pertinent to this discussion is found at the end of the chapter.
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

37. For Review
6. What causes personality conflicts, and how can they be resolved?
7. What defines the bargaining zone in distributive bargaining?
8. Why isn’t integrative bargaining more widely practised in organizations?
9. How do men and women differ, if at all, in their approaches to negotiations?
10. How can you improve your negotiating effectiveness?
Material pertinent to this discussion is found at the end of the chapter.
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

38. For Critical Thinking
1. Do you think competition and conflict are different? Explain.
2. “Participation is an excellent method for identifying differences and resolving conflicts.” Do you agree or disagree? Discuss.
3. From your own experience, describe a situation you were involved in where the conflict was dysfunctional. Describe another example, from your experience, where the conflict was functional. Now analyze how other parties in both conflicts might have interpreted the situation in terms of whether the conflicts were functional or dysfunctional.
4. Assume one of your co-workers had to negotiate a contract with someone from China. What problems might he or she face? If the co-worker asked for advice, what suggestions would you give to help facilitate a settlement?
5. Michael Eisner, CEO at the Walt Disney Corporation, wanted to stimulate conflict inside his firm. But he wants to minimize conflict with outside parties—agents, contractors, unions, etc. What does this say about conflict levels, functional versus dysfunctional conflict, and managing conflict.
Material pertinent to this discussion is found at the end of the chapter.
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

39. Point-CounterPoint Conflict Is Good for the Organization
Conflict is a means by which to bring about radical change.
Conflict facilitates group cohesiveness.
Conflict improves group and organizational effectiveness.
Conflict brings about a slightly higher, more constructive level of tension.
All Conflicts Are Dysfunctional!
The negative consequences from conflict can be devastating.
Effective managers build teamwork, not conflict.
Competition is good for an organization, but not conflict.
Managers who accept and stimulate conflict don’t survive in organizations.
Material pertinent to this discussion is found at the end of the chapter.
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

40. Breakout Group Exercises
Form small groups to discuss the following:
1. You and two other students carpool to school every day. The driver has recently taken to playing a new radio station quite loudly. You do not like the music, or the loudness. Using one of the conflict-handling intentions, indicate how you might go about resolving this conflict.
2. Using the example above, identify a number of BATNAs (best alternatives to a negotiated agreement) available to you, and then decide whether you would continue carpooling.
3. Which conflict-handling style is most consistent with how you deal with conflict? Is your style effective? Why or why not?
Material pertinent to this discussion is found at the end of the chapter.
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada

41. From Concepts to Skills: Negotiating
Begin with a positive overture.
Address problems, not personalities.
Pay little attention to initial offers.
Emphasize win-win solutions.
Create an open and trusting climate.
Material pertinent to this discussion is found at the end of the chapter.
Begin with a positive overture. Studies on negotiation show that concessions tend to be reciprocated and lead to agreements.
Address problems, not personalities. Concentrate on the negotiation issues, not on the personal characteristics of your opponent. When negotiations get tough, avoid the tendency to attack your opponent.
Pay little attention to initial offers. Treat an initial offer as merely a point of departure. Everyone has to have an initial position. These initial offers tend to be extreme and idealistic. Treat them as such.
Emphasize win-win solutions. Inexperienced negotiators often assume that their gain must come at the expense of the other party. But assuming a zero-sum game means missed opportunities for trade-offs that could benefit both sides. If conditions are supportive, look for an integrative solution. Frame options in terms of your opponent’s interests and look for solutions that can allow your opponent, as well as yourself, to declare a victory.
Create an open and trusting climate. Skilled negotiators are better listeners, ask more questions, focus their arguments more directly, are less defensive, and have learned to avoid words and phrases that can irritate an opponent (that is, “generous offer,” “fair price,” “reasonable arrangement”). In other words, they are better at creating the open and trusting climate necessary for reaching an integrative settlement.
Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.
Copyright © 2010 Pearson Education Canada