1. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Chapter 8 Conflict and Negotiation

2. 9 - 2 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Intergroup Conflict: Functional Conflict  Functional conflict – a confrontation between groups that enhances and benefits the organization’s performance.  When conflict focuses on tasks, constructive debate can improve decision making and work outcome.  Functional conflict can be thought of as a type of creative tension.

3. 9 - 3 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Intergroup Conflict: Dysfunctional Conflict  Dysfunctional conflict – any confrontation or interaction between groups that harms the organization or hinders the achievement of organizational goals.  Management must seek to eliminate dysfunctional conflict.  Such conflict can negatively influence performance by shifting group members’ attention away from important tasks.

4. 9 - 4 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Conflict and Organizational Performance  Conflict may have either a positive or a negative impact on organizational performance depending on the nature of the conflict and how it is managed. Optimal level of conflict exists that can be considered highly functional. Optimal level of conflict exists that can be considered highly functional. Conflict helps generate positive performance. Conflict helps generate positive performance.

5. 9 - 5 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Conflict and Organizational Performance (continued)  When the conflict level is too low, performance can suffer. Innovation and change are difficult. Innovation and change are difficult. The organization may have difficulty in adapting to change in its environment. The organization may have difficulty in adapting to change in its environment.  If the conflict level becomes too high, the resulting chaos can also threaten the organization’s survival.

6. 9 - 6 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Level of intergroup conflict Situation I Situation III Situation II High Low Level of organizational performance High Proposed Relationship Between Intergroup Conflict and Organizational Performance

7. 9 - 7 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Level of intergroup conflict Probable impact on organization Organization characterized by Level of organizational performance Low or none Slow adaptation to environment Few changes Little stimulation of ideas ApathyStagnationLow Dysfunctional Situation I Situation II OptimalFunctional Positive movement toward goals Innovation & change Search for problem solutions Creativity & quick adaptation to environmental changes to environmental changes High Disruption Interference with activities Coordination difficulties Chaos LowDysfunctionalHigh Situation III Proposed Relationship Between Intergroup Conflict and Organizational Performance

8. 9 - 8 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Intragroup Conflict and Group Productivity Task Conflict Relationship Conflict Process Conflict

9. 9 - 9 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Why Intergroup Conflict Occurs  Work Interdependence Pooled Interdependence Pooled Interdependence Sequential Interdependence Sequential Interdependence Reciprocal Interdependence Reciprocal Interdependence  Differences in Goals Limited Resources Limited Resources Reward Structures Reward Structures

10. 9 - 10 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Why Intergroup Conflict Occurs (continued)  Differences in Perceptions Different Goals Different Goals Different Time Horizons Different Time Horizons Status Incongruency Status Incongruency Inaccurate Perceptions Inaccurate Perceptions Increased Demand for Specialists Increased Demand for Specialists

11. 9 - 11 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Changes within groups Changes between groups 4Increased group cohesiveness 4Greater autocratic leadership 4Focus on activity 4Emphasis on loyalty to the group 4Distorted perceptions of group’s importance 4Negative stereotyping 4Decrease in communication Consequences of Dysfunctional Intergroup Conflict

12. 9 - 12 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Managing Intergroup Conflict Through Resolution  Problem Solving  Superordinate Goals  Expansion of Resources  Avoidance  Smoothing  Problem Solving  Superordinate Goals  Expansion of Resources  Avoidance  Smoothing  Compromise  Authoritative Command  Altering the Human Variable  Altering the Structural Variables  Identifying a Common Enemy  Compromise  Authoritative Command  Altering the Human Variable  Altering the Structural Variables  Identifying a Common Enemy

13. 9 - 13 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Managing Intergroup Conflict Through Negotiation Cross-Cultural Negotiations Group Negotiations

14. 9 - 14 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Managing Intergroup Conflict Through Negotiation (continued)  Prenegotiation Tasks Understanding the other side Understanding the other side Knowing all the options Knowing all the options  Negotiation Tactics Good-guy / bad-guy team Good-guy / bad-guy team The nibble The nibble Joint problem solving Joint problem solving Power of competition Power of competition Splitting the difference Splitting the difference Low-balling Low-balling

15. 9 - 15 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Impact of Personalities on the Negotiation Process  The power seeker Task and results oriented; potentially confrontational A good decision maker  The persuader Tough under a cloak of amiability A potentially dangerous opponent  The reliable performer Solid, dependable, resistant to sudden change Dependent on past precedents for confidence in decision making  The limited performer Lacking in self-confidence, indecisive, introverted Likely to crack under pressure

16. 9 - 16 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Team Building – encouraging people who work together to meet as a group in order to identify common goals improve communications resolve conflicts

17. 9 - 17 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Resolving Group Conflict Through Team Building  Team building involves people who work together meeting as a group in order to address: Is there an understanding of and commitment to common goals? Is there an understanding of and commitment to common goals? Are we utilizing all of the skills and abilities of group members? Are we utilizing all of the skills and abilities of group members? Is there trust and communication among group members? Is there trust and communication among group members? Are we continually improving our performance as a group? Are we continually improving our performance as a group?

18. 9 - 18 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Where Team Building Might Work in Reducing Intergroup Conflict  The work is extremely complex  Group members have the necessary knowledge and expertise to do the work  Working independently has not been productive  External demands require quick responses and decisions

19. 9 - 19 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Where Team Building Might Work in Reducing Intergroup Conflict (continued)  Group members want to assume responsibility for processes and products  Work requires different groups to work interdependently  External demands require a more flexible and responsive organization

20. 9 - 20 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Management’s Role in Building Teams  Commit long-term to team building.  Develop mutual trust with employees.  Provide teams the information they need.  Provide employees with training in team- building skills.  If the firm is unionized, develop a team- building partnership with the union.

21. 9 - 21 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Managing Intergroup Conflict Through Stimulation  Communication  Bringing outside individuals into the group  Altering the organization’s structure  Stimulating competition