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Prepared For Ms. Sumayya Begum Course Instructor School of Business Studies Course Code: Mgt-3124
Jakia sultana Masuda akter Section: 18(E). Department: B.B.A
ID:2007210000104 ID: 2008
Letter of Transmittal
July, 2010 Ms. Sumayya Begum Lecturer School of Business Studies Southeast University Dear Madam : Here is the assignment on “Conflict Negotiation” you asked us to conduct in this semester. In this assignment, we have tried to present the entire requirement you asked for. The task is done by your observation and procedures are followed according to your instruction. We appreciate having this assignment. We prepared this assignment with sincerity and serious effort. Thank you for providing us the opportunity to prepare this. We are really grateful to you for giving us the scope of preparing this assignment under your observation. We have enjoyed preparing this assignment and presented it for your judgment. Thank you. Sincerely yours, Jakia sultana & Masuda akther SOUTHEAST UNIVERSIT
At first particularly we are thankful to the almighty Allah for blessing us and give us the ability to complete this assignment.
Organizational Behavior is really an interesting course and attending a assignment like this leaves us with a store of knowledge. This type of assignment will help us in our future job. We are thankful to our course teacher Ms.Sumayya Begum for teaching us this interesting course so easily, that we can understand properly. It is an important course for Business students. The teaching style of Ms.Sumayya Begum is very nice and examples given by her throughout his lecture are very much realistic. So it helped us to understand the topics of this course easily.
At last we would like to thank our classmates. Outside the university we are very much grateful to all of people who help us in this journey. These persons and our course teacher helped us to prepare this assignment. We are very indebted to them.
........ 5. 9.......... Negotiation...........................................................................1 2............................................2 3..............Table of Contents 1........ conclution………………………………………………………………………………………........... Iris group (profile).................................. Defination of conflict…………………………………………………………………….............. 6................. Negotiation process... Conflict and negotiation of iris group............................................. The Negotiation Process....................................................... 8..... Views of Conflict……………………………………………………………………………............................... General approaches of negotiation................. 6.................. 4........................................................................ ........... 7......... THE CONFLICT PROCESS..............
something that the first party cares about. to promote progress . 2.Conflict – Definition 1. Views of Conflict Ttaditional view:The belief that all conflict is harmful & must be avoided. This is also believed to probably be unrealistic. or is about to negatively affect. Human relations view: Some believe conflict is a natural part of life and people need to learn how to deal with it.Some believes conflict should be avoided.When two or more people have differences in Ideas/views and are not ready to understand or Accept each other’s ideas/views.Conflict: A process that begins when one party perceive that another party has negatively affected. even necessary.Conflict can be defined as a process where one party perceives that another party has negatively affected (or is about to negatively affect) something of concern to the first party 3. (Interactionist view): Some believe conflict is beneficial. Types of conflict: .
While analyzing the impact of conflicts in any organization we will deal separately the two types of conflicts i. the sales manager may put the blame for low sales volume on the production manager for not giving on time production of roller shades and woven wood shades. as in the case of superior vs. but most common are personal dislikes or personality differences. The general assumption is that conflict tends to have negative consequences for both the individual and the organization. It is often very difficult to establish whether a conflict between two parties is due to manifest rational factors. First we will discuss interpersonal conflicts. most groups have an idea of a “fair day’s work” and may pressurize an individual if he exceeds or falls short of the group’s productivity norms. vividly characterized by phrases such as �between the devil and the deep blue sea� or �caught on the horns of a dilemma�. For example. or it emanates from hidden personal factors. For example. Examine your state of mind. he could come into conflict with other group members.e. For example. it can be construed as technical conflict rather than interpersonal conflict. Decisions made may not be appropriate. extremely anxious & probably unable to concentrate on your work. IMPACT OF CONFLICTS As we know conflict may occur between two individuals.management rivalries. between two HODs. union) that is likely to result in work stoppage &loss in productivity. imagine yourself in an intense conflict situation. your performance is adversely affected. Conflict can also occur within an individual as in situations of dilemma of choice. If the individual resents any such pressure or punishment. interpersonal conflicts and intergroup conflicts. Because of that they were not able to meet the schedule task for sales. subordinate. This may start disliking the production manger as an incompetent person. For a blinds store. Groups may be drawn into conflict with each other on the basis of performance. Naturally in such situations. a personnel manager may be quite undecided about how to deal with the conflict (with workers. . You are tense. Conflict between individuals takes place owing to several factors.Conflict between Individuals Conflict can also take an interpersonal form. When there are only differences of opinion between individuals about taskrelated matters. etc. technical and interpersonal conflicts may influence each other due to role-related pressures. Conflicts between an Individual and a Group These types of intragroup conflicts arise frequently due to an individual’s inability to conform to the group norms. importance to a particular group and in general the union. Of course. uneasy.
These include alcoholism. which undermine the health of the individual. conflict has also certain physiological consequences (more so under intense conflict situations) in that. . Apart from the above psychological & behavioral consequences.Speed-up of the heart beat & increase in blood pressure. Below is a summarized list of the affect of conflicts on an individual 1. Psychological Responses � � � � � � inattentiveness to other things lack of interest in work job dissatisfaction work anxiety estrangement or alienation from others frustration 2. certain changes take place within the physiological system which are often ignored or unnoticed. Physiological Responses . they might even be unrealistic or irrational. conflict is also observed to give rise to certain maladjusted behaviors in individuals trying to cope with it. Sometimes. Hence. excessive smoking. Some of the changes that occur within the system are: .More adrenalin & nor adrenalin are shot into the blood & continue the state of arousal & excitation.Occasionally. drug abuse. Behavioral Responses � � � � � � excessive smoking alcoholism under eating or overeating aggression towards others or work sabotage decreased communication resisting influence attempts 3. . under eating or overeating and extremely aggressive or submissive behavior. but also gives rise to psychosomatic disturbances. Thus. conflicts tend to impair one�s efficiency.More of hydrochloric acid is secreted into the stomach. it may be understood that conflict not only affects an individual�s performance.
While successful resolution of a conflict adds to one�s self-confidence. However. It was probably difficult for you to resolve them at that time.energy that can produce positive. surely you would have more confidence to tackle them at present than you had earlier when they first occurred. Can conflicts be positive? It can also be argued that conflicts are not necessarily bad. Every organization must have faced internal & external conflicts from the time of its inception. unsuccessful attempts make one more realistic & resourceful to seek better alternatives& thereby improve one�s skills. Conflict releases energy at every level of human activity. It may even be amusing to think that such problems bothered you then. etc. To resolve a conflict one might explore different avenues or alternatives of action.� � � � � peptic ulcers respiratory problems such as asthma hypertension headaches coronary problems Conflicts in work situations may also give rise to organization related individual consequences: Job dissatisfaction Apathy or indifference to work Role-set members & the company Job stress & burnout Disloyalty Work sabotage Employee turnover Increased territoriality & resistance to change Decreased information sharing. organizations that resolved their earlier conflicts in positive & constructive ways have survived. But if the same problems were to recur. It is perhaps so in everyone�s experience. even though they appear so simple now. think of any of the personal or organizational problems that you may have faced in near future. they drive or energize an individual to tackle a situation. Conflicts tend to have a motivational value. The progress we have made so far in our civilization is due to the conflict between nature & man. For example. which make him/her more knowledgeable. Conflicts also provide opportunities to test one�s own abilities. constructive results. grown & .
if costed. otherwise work life would be dull and �boring. when individuals find themselves in critical situations.Conflicts may lead to work sabotage. .Provide creative and innovative ideas. better coordination among individuals & departments. esteem and ego. they often come up with workable & novel solutions because of the stakes involved for themselves & their department. Beneficial Consequences . For example. One�s talents and abilities come to the forefront in a conflict situation.Add variety to one�s organizational life. In certain instances they have also emerged as the captains of the industry. people and interrelationships between people. Dysfunctional Consequences .Motivate individuals to do better and to work harder. in addition to strengthening intra-group relationships. . . . aggression. . For example employee benefits of the preset day are an outcome of the union �management conflicts over the past decades. in organizations.Time spent on conflicts.In a conflict situation people may promote their self-interests or personal gains at the cost of others or the organization. Given below is the list of consequences of conflict. etc. employee morale problems.Conflicts affect individual & organizational performance. and decline in the market share of product/services &consequent loss of productivity. which could be more productively spent in the absence of conflicts.Facilitate an understanding of the problem. and thereby provide an opportunity for the constructive use and release of aggressive urges. .prospered because they benefited from their learning experiences. a union leader may call for a strike to assert his superiority or to stabilize his leadership. Similarly. .Satisfy certain psychological needs like dominance. Resolving conflicts consumes a considerable amount of managerial time & energy. . could mean considerable amount of money wasted.Intense conflicts over a prolonged period affect individuals emotionally & physically& give rise to psychosomatic disorders. .
A review of the research suggests that differing word connotations. but one of these conditions is necessary if conflict is to surface. For simplicity’s sake. structure. and noise in the communication channels.THE CONFLICT PROCESS The conflict process can be seen as comprising five stages: potential opposition or incompatibility. and outcomes. . these condition Exibit:Char Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Antecedent conditions #communicati on #structure #personal variables Perceived conflict Conflicthandling intention Felt #competing conflict #collaboratin g #compromisi Over conflict #party’s behavior #other reaction Increase d group performa nce Decreased group performanc e (which also may be looked at as causes or sources of conflict) have been condensed into three general categories: communication. jargon.4 Communication The communication source represents the opposing forces that arise from semantic difficulties. cognition and personalization. intentions. and personal variables. misunderstandings. Stage I: Potential Opposition or Incompatibility The first step in the conflict process is the presence of conditions that create opportunities for conflict to arise. Much of this discussion can be related back to our comments on communication in Chapter 10. They need not lead directly to conflict. behavior.
Tenure and conflict appear inversely related. but the evidence is not particularly strong. leadership styles. Reward systems. with a resultant increase in the potential for conflict.insufficient exchange of information. and inadequate information about others. Research tends to confirm that participation and conflict are highly correlated. degree of specialization in the tasks assigned to group members. The filtering process that occurs as information is passed between members and the divergence of communications from formal or previously established channels offer potential opportunities for conflict to arise. Too much reliance on participation may also stimulate conflict. whereupon it is possible to overcommunicate. and the degree of dependence among groups. meaning the potential for conflict tends to be greatest when group members are younger and when turnover is high. The larger the group and the more specialized its activities. selective perception. the greater the likelihood of conflict. as well as too little. Research has further demonstrated a surprising finding: The potential for conflict increases when either too little or too much communication takes place. reward systems. are found to create conflict when one member’s gain is at another’s expense. Furthermore. Too much information. in this context. apparently because participation encourages the promotion of differences. to include variables such as size. Structure The term structure is used. the channel chosen for communicating can have an influence on stimulating opposition. jurisdictional clarity. And if a group is dependent on . too. an increase in communication is functional up to a point. A close style of leadership—tight and continuous observation with general control of others’ behaviors—increases conflict potential. Research indicates that size and specialization act as forces to stimulate conflict. Apparently. Evidence demonstrates that semantic difficulties arise as a result of differences in training. can lay the foundation for conflict. member–goal compatibility. and noise in the communication channel are all barriers to communication and potential antecedent conditions to conflict.
As our definition of conflict notes. an employee who shows up to work irate from her hectic morning commute may carry that anger to her 9:00 A. research indicates that individuals in Japan and in the United States view conflict differently.5 Stage II: Cognition and Personalization If the conditions cited in stage I negatively affect something that one party cares about. differing values can explain conflict. Emotions can also cause conflict.another group (in contrast to the two being mutually independent) or if interdependence allows one group to gain at another’s expense. These are all value differences.M. “A may be aware . Compared to Japanese negotiators. Say that John dislikes African-Americans and Dana believes John’s position indicates his ignorance. meeting. Americans are more likely to see offers from their counterparts as unfair and to reject such offers. perception is required. opposing forces are stimulated. individuals who are highly authoritarian and dogmatic—lead to potential conflict. The problem? Her anger can annoy her colleagues. In addition to personality traits. Say that an employee thinks he is worth $55. then the potential for opposition or incompatibility becomes actualized in the second stage. In other words. as well as the rewards one deserves. One or more of the parties must be aware of the existence of the antecedent conditions. which may lead to a tension-filled meeting. some people are conflict oriented and others are conflict aversive. For example. because a conflict is perceived does not make it personalized. However.000 a year but his boss believes him to be worth $50. It is also important to note that culture can be a source of differing values. For example. Value differences are the best explanation of diverse issues such as prejudice and disagreements over one’s contribution to the group.000. which are important sources for creating the potential for conflict. Personal Variables As practical experience has taught us. Evidence indicates that certain personality types—for example.
. so behavior does not always accurately reflect a person’s intentions. 2. .g. Stage IV: Behavior . Competing: assertive and uncooperative. Accommodating: unassertive and cooperative. that parties experience anxiety. A lot of conflicts are escalated merely by one party attributing the wrong intentions to the other party. frustration. such as when you avoid a conflict based on the hope it will just go away. Stage III: Intentions Intentions intervene among people’s perceptions and emotions and overt behaviors. such as when you give in just to please someone else.that B and A are in serious disagreement .”6 It is at the felt level. Compromising: mid-range on both assertiveness and cooperativeness. but it may not make A tense or anxious. These intentions are decisions to act in a given way. but the approach also will vary by the situation (e. a strategy one intends to use in a conflict with a loved one will often differ from a conflict with strangers). 5. Collaborating: assertive and cooperative—intending to find a win–win solution that makes both parties happy. —we can identify five conflict-handling intentions: 1. when individuals become emotionally involved. In addition.. 4. there is typically a great deal of slippage between intentions and behavior. where the pie is sliced down the middle). and it may have no effect whatsoever on A’s affection toward B. or hostility. . Avoiding: unassertive and uncooperative. some people are competitive in most situations). Intentions are separated out as a distinct stage because you have to infer the other’s intent to know how to respond to that other’s behavior. 3. tension.7 People differ in the degree to which they generally rely on these strategies (e. such as when you strive to achieve your goal at the expense of the other party achieving his.g.
and so on. I threaten you back. we have conflicts characterized by subtle. At the lower part of the continuum. For the most part. Competi Stage V: Outcomes The action–reaction interplay among the conflicting parties results in consequences. and highly controlled forms of tension. and wars clearly fall in this upper range. riots. I respond by arguing. you make a demand on me. quality that is separate from intentions. actions. Conflict intensities escalate as they move upward along the continuum until they become highly destructive. they tend to focus on stage IV because this is where conflicts become visible. As a result of miscalculations or unskilled enactments. The behavior stage includes the statements. Strikes. conflicts that reach the upper ranges of the continuum are almost always dysfunctional. overt behaviors sometimes deviate from original intentions.When most people think of conflict situations. For example. Functional conflicts are typically confined to the lower range of the continuum. such as a student questioning in class a point the instructor has just made. All conflicts exist somewhere along this continuum. These conflict behaviors are usually overt attempts to implement each party’s intentions. indirect. you threaten me. Confl It helps to think of stage IV as a dynamic process of interaction. these outcomes may be functional in . and reactions made by the conflicting parties. but they have a stimulus. As our model (see Exhibit 13-1) demonstrates.
9 Many of GM’s problems. or other debilities. Note how all these examples focus on task and process conflicts and exclude the relationship variety. particularly the ones that are unusual or held by a minority. encourages interest and curiosity among group members. promotes reassessment of group goals and activities. Conflict is constructive when it: ■ improves the quality of decisions. from the late 1960s to the late 1990s.that the conflict results in an improvement in the group’s performance. for the most part. and fosters an environment of self-evaluation and change. loyal to GM to the point of never questioning company actions. or it may be dysfunctional in that it hinders group performance. homogenous: conservative white males raised in the midwestern . inadequate consideration of relevant alternatives. ■ ■ ■ ■ The evidence suggests that conflict can improve the quality of decision making by allowing all points. let’s consider some examples and then review the research evidence. Because people often find it difficult to think of instances in which conflict can be constructive. provides the medium through which problems can be aired and tensions released. Conflict challenges the status quo and therefore furthers the creation of new ideas. Functional Outcomes How might conflict act as a force to increase group performance? It is hard to visualize a situation in which open or violent aggression could be functional.8 Conflict is an antidote for groupthink. Yet in a number of instances. It doesn’t allow the group to passively rubber-stamp decisions that may be based on weak assumptions. to be weighed in important decisions. It hired and promoted individuals who were yes-men. can be traced to a lack of functional conflict. it’s possible to envision how low or moderate levels of conflict could improve the effectiveness of a group. Managers were. You don’t have to look further than automobile behemoth General Motors to see a company that suffered because it had too little functional conflict. and increases the probability that the group will respond to change. stimulates creativity and innovation.
11 Others have found similar results: Groups composed of members with different interests tend to produce higher-quality solutions to a variety of problems than do homogeneous groups. with a new CEO who openly challenged the company’s conflict-free climate. He set the tone of nonconfrontation. This kept new ideas from percolating upward and held dissent to a minimum. When groups analyzed decisions made by its individual members.com stocks hit. They were almost sanctimonious in their belief that what had worked in the past would continue to work in the future. It couldn’t respond to change. Only when Koogle was replaced in 2001. investigators found the average improvement among the high-conflict groups was 73 percent greater than that of those groups characterized by low-conflict conditions. Managers and staff were too comfortable with each other to challenge the status quo. Yahoo! provides a more recent example of a company that suffered because of too little functional conflict. which acts to dissolve common .12 Dysfunctional Outcomes The destructive consequences of conflict on a group’s or organization’s performance are generally well known. Research studies in diverse settings confirm the functionality of conflict. It was at this point that Yahoo!’s most critical problem became exposed: The company was too insulated and void of functional conflict.10 Begun in 1994. Moreover. by sheltering executives in the company’s Detroit offices and encouraging them to socialize with others inside the GM ranks. demonstrating that. Yahoo!’s advertising sales were plunging and the company’s stock was down 92 percent from its peak. A reasonable summary might state that uncontrolled opposition breeds discontent. By the spring of 2001. among established groups. The source of the problem was the company’s CEO. Tim Koogle. performance tended to improve more when conflict occurred among members than when fairly close agreement was prevalent. Then the implosion of dot. by 1999 Yahoo! had become one of the best-known brand names on the Internet. the company further insulated managers from conflicting perspectives.United States who resisted change: They preferred looking back to past successes rather than forward to new challenges. did Yahoo! begin to successfully solve its problems.
“A high proportion of people who get to the top are conflict avoiders. they don’t like saying or thinking negative things. a substantial body of literature documents how conflict—the dysfunctional varieties—can reduce group effectiveness. As one consultant put it. At the extreme. They don’t like hearing negatives.S. closed down solely because the 80 partners couldn’t get along.ties. “This was a firm that had basic and principled differences among the partners that were basically irreconcilable. They frequently make it up the ladder in part because they don’t irritate people on the way up.14 As one legal consultant familiar with the organization said. and eventually leads to the destruction of the group. And. For instance. Let’s look at some approaches organizations are using to encourage their people to challenge the system and develop fresh ideas. or people who stay with the ideas they believe in even when those ideas are rejected . if managers accept the interactionist view toward conflict.S. of course. allowing bosses to make mistakes even when they know better. particularly in large U. You hate each other!” Creating Functional Conflict In this section we ask. Shea & Gould. The demise of an organization as a result of too much conflict isn’t as unusual as one might expect. Hewlett-Packard rewards dissenters by recognizing go-against-the-grain types.13 Among the more undesirable consequences are a retarding of communication. Organizations that don’t encourage and support dissent may find their survival threatened. what can they do to encourage functional conflict in their organizations?15 Consultants generally agree that creating functional conflict is a tough job. and subordination of group goals to the primacy of infighting among members. reductions in group cohesiveness. business hush up when their opinions are at odds with those of their superiors. corporations.” That same consultant also addressed the partners at their last meeting: “You don’t have an economic problem.” Another suggests that at least 7 out of 10 people in U. “You have a personality problem. Such anticonflict cultures may have been tolerable in the past but not in today’s fiercely competitive global economy.” he said. conflict can bring group functioning to a halt and potentially threaten the group’s survival. one of New York’s best-known law firms.
No tirades. It is also the major building block for many other alternative dispute resolution procedures.by management. They have to learn to take the bad news without flinching. such as getting into or out of a business or making a major capital expenditure. no tight-lipped sarcasm. generate possible settlement . General Electric. educate each other about their needs and interests. it often assigns teams to make the case for each side of the question.. One common ingredient in organizations that successfully create functional conflict is that they reward dissent and punish conflict avoiders. Employees can question their bosses with impunity. IBM also has a formal system that encourages dissension. The news may make their blood boil or their hopes collapse. within and between organizations and between agencies and the public. This process frequently results in decisions and alternatives that hadn’t been considered previously. Negotiation is a problem-solving process in which two or more people voluntarily discuss their differences and attempt to reach a joint decision on their common concerns. employers and employees. causes. Having considered conflict—its nature. managers should ask calm. however. no eyes rolling upward. parents and children. no gritting of teeth. The real challenge for managers. even-tempered questions: “Can you tell me more about what happened?” “What do you think we ought to do?” A sincere “Thank you for bringing this to my attention” will probably reduce the likelihood that managers will be cut off from similar communications in the future. the system provides a third party for counsel. professionals and clients. but they can’t show it. Royal Dutch Shell Group. When the policy committee at AnheuserBusch considers a major move. Herman Miller Inc. Negotiation and conflict are closely related because negotiation often DEFINITION OF NEGOTIATION Negotiation is one of the most common approaches used to make decisions and manage disputes. and consequences—now we turn to negotiation. has a formal system in which employees evaluate and criticize their bosses. and Anheuser-Busch build devil’s advocates into the decision process. managers and staff. If the disagreement can’t be resolved. Negotiation occurs between spouses. occurs when they hear news that they don’t want to hear. Rather. Negotiation requires participants to identify issues about which they differ. an office furniture manufacturer.
Referring back to the used-car example. fixed pies are zero-sum games. or make an apology). . So the essence of distributive bargaining is negotiating over who gets what share of a fixed pie. distributive and integrative bargaining differ in goal and motivation. Therefore. It’s great and you want it. The negotiating strategy you’re engaging in is called distributive bargaining. every dollar more the seller can get from you comes at your expense.options and bargain over the terms of the final agreement. information sharing. focus. You go out to see the car. every dollar you can get the seller to cut from the car’s price is a dollar you save. That is. The fixed pie concept means the bargaining parties believe there only a finite amount of goods or services are available to be divvied up. The exchange may be tangible (such as money. Distributive Bargaining Let’s say you see a used car advertised for sale in the newspaper. interests. it is in everyone's interest to become familiar with negotiating dynamics and skills. When parties believe the pie is fixed. they tend to bargain distributively. The owner tells you the asking price. It appears to be just what you’ve been looking for. Conversely. and vice versa. Negotiation is the principal way that people redefine an old relationship that is not working to their satisfaction or establish a new relationship where none existed before. Successful negotiations generally result in some kind of exchange or promise being made by the negotiators to each other. and duration of relationship. Negotiation: A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them. Its most identifying feature is that it operates under zero-sum conditions. As Exhibit 13-3 shows. Let’s examine the differences between these two approaches. a commitment of time or a particular behavior) or intangible (such as an agreement to change an attitude or expectation. The two of you then negotiate over the price. General approaches of negotiation: Bargaining Strategies There are two general approaches to negotiation: distributive bargaining and integrative bargaining. This section is designed to introduce basic concepts of negotiation and to present procedures and strategies that generally produce more efficient and productive problem solving. Because negotiation is such a common problem-solving process. You don’t want to pay that much. any gain I make is at your expense.
She is told that the firm can’t .”) n’t go beyond this Expand the pie so that both parties are satisfied Win–win Opposed Interests (“Can you explain why this Information sharing Duration of relationship Low(sharing information will only allow other party to take advantage) Short term point on this issue.Probably the most widely cited example of distributive bargaining is in labor–management negotiations over wages. labor’s representatives come to the bargaining table determined to get as much money as possible out of management.”) issue is so important to you?”) Congruent High (sharing information will allow each party to find ways to satisfy advantage) Long term Integrative Bargaining Let’s say a sales representative for a women’s sportswear manufacturer has just closed a $15. Typically.000 order from a small clothing retailer. The sales rep calls in the order to her firm’s credit department. Distributive versus Integrative Bargaining Bargaining Characteristic Distributive Bargaining Integrative Barganing Goal Motivation Focus Interest Get as much of the pie as possible Win–lose Positions (“I ca point on this issue. Because every cent more that labor negotiates increases management’s costs.
It views negotiation as made up of five steps Preparation and Planning Definition of ground rules Clarification and Justification Bargaining and . This sales-credit negotiation is an example of integrative bargaining. The two openly review their options. Neither does the credit manager. but the clothing store’s owner will provide a bank guarantee that will ensure payment if the bill isn’t paid within 60 days.approve credit to this customer because of a past slow-payment record. they agree on a solution that meets both of their needs: The credit manager will approve the sale. but he also doesn’t want to get stuck with an uncollectible debt. the sales rep and the firm’s credit manager meet to discuss the problem. The Negotiation Process Exhibit 13-5 provides a simplified model of the negotiation process. The next day. After considerable discussion. The sales rep doesn’t want to lose the business.
and your goal is to get a significant cost reduction from your supplier of keyboards. What’s the nature of the conflict? What’s the history leading up to this negotiation? Who’s involved. You also want to prepare an assessment of what you think the other party’s goals are. make sure that this goal stays paramount in your discussions and doesn’t get overshadowed by other issues. for instance. It often helps to put your goals in writing and develop a range of outcomes—from “most hopeful” to “minimally acceptable”—to keep your attention focused. you . you need to do your homework. What are they likely to request? How entrenched are they likely to be in their position? What intangible or hidden interests may be important to them? What might they be willing to settle on? When you can anticipate your opponent’s position. and what are their perceptions of the conflict? If you’re a supply manager at Dell Computer.problem solving Closure and implementation Preparation and Planning Before you start negotiating.
For example. They know ahead of time how they will respond to any given situation. and get a better price. “Once when we were negotiating to buy a business. use it to develop a strategy.”18 Once you’ve gathered your information.are better equipped to counter arguments with the facts and figures that support your position. We knew what he was willing to part with and what he was not. For example. in negotiating. the cost of hiring replacement workers is the same. hiring replacement . Your BATNA determines the lowest value acceptable to you for a negotiated agreement. Thus. We knew his time frame. We were on good terms with the wife’s attorney and we learned the seller’s net worth. expert chess players have a strategy. As part of your strategy. California is a community-property-law state. we found that the owner was going through a nasty divorce. The importance of sizing up the other party is illustrated by the experience of Keith Rosenbaum. We knew a lot more about him than he would have wanted us to know. an airline may find that at a certain level of settlement. We were able to twist him a little bit. you should determine yours and the other side’s Best Alternative To a Negotiated Agreement (BATNA). so we knew he had to pay her half of everything. a partner in a major Los Angeles law firm.
bolster. Definition of Ground Rules Once you’ve done your planning and developed a strategy. amplify. will apply? To what issues will negotiation be limited? Will there be a specific procedure to follow if an impasse is reached? During this phase. you shouldn’t expect success in your negotiation effort unless you’re able to make the other side an offer it finds more attractive than its BATNA. it’s an opportunity for educating and informing each other on the issues. Any offer you receive that is higher than your BATNA is better than an impasse.workers would be its BATNA. Who will do the negotiating? Where will it take place? What time constraints. Clarification and Justification When initial positions have been exchanged. you’re ready to begin defining the ground rules and procedures with the other party for the negotiation itself. why they are important. and how each of you arrived at their initial demands. you might beable to get it changed. and justify your original demands. the parties will also exchange their initial proposals or demands. This is the point at which you might want to provide the other party with any documentation that helps support your . If you go into your negotiation having a good idea of what the other party’s BATNA is. This needn’t be confrontational. Rather. clarify. if any. even if you’re not able to meet it. Conversely. both you and the other party will explain.
buying a piece of real estate. bargaining over lease terms. In a sense. negotiating a job offer for a senior management position—will require hammering out the specifics in a formal contract.. however... For most cases. Major negotiations—labor– management negotiations..position. this is positive: It provides a degree of stability and predictability to behavior. Closure and Implementation The final step in the negotiation process is formalizing the agreement that has been negotiated and developing any procedures that are necessary for implementation and monitoring. Without any . Bargaining and Problem Solving The essence of the negotiation process is the actual give-and-take involved in hashing out an agreement. It is here where concessions will undoubtedly need to be made by both parties. closure of the negotiation process is nothingmore formal than a handshake.. Personality traits in negotiation Moods/emotion in negotiation Gender difference in negotiatio RESISTANCE TO CHANGE One of the most well-documented findings from studies of individual and organizational behavior is that organizations and their members resist change.... Individual Differences in Negotiation:three factor that influence how effectively individual negotiation thay are given bellow .
it means you’re likely to have to change many habits: waking up 10 minutes earlier. developing a new lunchtime routine. and needs. Another individual factor that often leads to resistance to change is security. introduces a new . So. So when your department is moved to a new office building across town. People often resist change due to individual reasons. Resistance to change can also be a source of functional conflict. For example. we don’t need to consider the full range of options for the hundreds of decisions we have to make every day. taking a new set of streets to work. Life is complex enough. where resistance to change resides in basic human characteristics such as perceptions. organizational behavior would take on the characteristics of chaotic randomness. finding a new parking place. To cope with this complexity. As human beings. we all rely on habits. adjusting to the new office layout. you find a single route and use it regularly. an Ontario-based manufacturer of process-control instrumentation. But there is a definite downside to resistance to change. change leads people into the unknown. and so on. resistance to a reorganization plan or a change in a product line can stimulate a healthy debate over the merits of the idea and result in a better decision. this tendency to respond in our accustomed ways becomes a source of resistance. Every day. When we are confronted with change. when you go to work or school. we’re creatures of habit. Perhaps the most obvious individual sources of resistance is habit.resistance. change often threatens our security. When GM announces another major layoff or when Davis Controls. personalities. By its very nature. If you’re like most people. It hinders adaptation and progress. do you continually use the same route and streets? Probably. or programmed responses.
Organizational factors also lead to resistance to change. One major organizational source of resistance is structural inertia. this structural inertia acts as a counterbalance to sustain stability. Overcoming Resistance to Change . Another organizational factor that leads to resistance to change is the limited focus of change. and procedures for employees to follow. rules. One can’t change without affecting the others. the change in technology is not likely to be accepted. So. ■ In short. if management changes the technological processes without simultaneously modifying the organization’s structure to match. For example. Organizations have built-in mechanisms to produce stability: The selection process systematically selects certain people in and certain people out. ■ Training and other socialization techniques reinforce specific role requirements and skills. ■ Formalization provides job descriptions. limited changes in subsystems tend to get nullified by the larger system. many employees feel insecure—that they may lose their jobs or be unable to learn new skills.software system. Organizations are made up of interdependent subsystems. When an organization is confronted with change. the people who are hired into an organization are chosen for fit. they are then shaped and directed to behave in certain ways.
First.5 2. Indeed. Communication can reduce resistance on two levels. their involvement can reduce resistance. and increase the quality of the change decision. 3. it fights the effects of misinformation and poor communication. communication can be helpful in promoting the need for change. research shows that the way the need for change is sold matters: Change is more likely when the necessity of changing is packaged properly. obtain commitment. If employees receive the full facts and get any misunderstandings cleared up. Building Support and Commitment: Change agents can offer a range of supportive . Prior to making a change. Participation: It’s difficult for individuals to resist a change decision in which they participated. However. those opposed can be brought into the decision process.While numerous forces act to resist change. change agents can take actions to lessen this resistance. the disadvantages of this approach include the potential for a poor solution and great consumption of time. Education and Communication: Resistance can be reduced by communicating with employees to help them see the logic of a change. resistance should subside. Second. Let’s briefly examine five of them: 1. Assuming that the participants have the expertise to make meaningful contributions.
The study authors suggested that organizations could facilitate the change process by selecting people who score high on these characteristics.efforts to reduce resistance. One study of managers in the United States. When employees’ fear and anxiety are high. and Asia found that those with a positive selfconcept and high risk tolerance coped better with organizational change. or a short paid leave of absence may facilitate adjustment. the application of direct . employee counseling and therapy.6 So. Another study found that selecting people based on a resistance-to-change scale worked well in winnowing out those who tended to react emotionally to change or to be rigid. energizing employees can also help them emotionally commit to the change rather than embrace the status quo. 4. and are flexible in their behavior. are willing to take risks. take a positive attitude toward change. Coercion: Last on the list of tactics is coercion—that is. new-skills training. Europe. It appears that people who adjust best to change are those who are open to experience. they favor the status quo and resist it. Selecting People Who Accept Change: Research suggests that the ability to easily accept and adapt to change is related to personality. Research on middle managers has shown that when managers or employees have low emotional commitment to change.7 5.
Other examples of coercion are threats of transfer. negative performance evaluations. it’s likely to harden resistance to change or lead to “hiddenrevolts. coercion would be the label attached to its change tactic. As we learned in Chapter 12.” . coercion has itslimits—used alone. and a poor letter of recommendation. If the corporate management really is determined to close a manufacturing plant if employees don’t acquiesce to a pay cut. loss of promotions.threats or force on the resisters.
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because they came from so long distance for this reason they have to pay lots of money for transport cost. But the authority didn’t agree to pay the facility . But after this conflict the authority spoke with them and promised to build a child care zone and then the operators became happy and the authority made the child care zone so the conflict is stopped and the female operator started working happily. To solve the conflict the authority and manager called a meeting . In 2005: Female operators were started conflict because they haven’t any child care zone for their child so they had to face so many problems. So to solved this problem the both labour party and higher authority were discussed about this problem and the authority decided to increase there salary. By knowing this authority took the step & made a good ventilation system and fans. In year 2006: In knitting unit the operators created a conflict because in there section they hadn’t enough ventilation system and fans . By negotiation they solved this. And then the problem is solved because of there negotiation. In2009: The workers made a conflict because they wanted the transport facilities.So the worker stopped their work and there made a conflict.So they felt so tired and hot when they work & they can’t work easily.Then the authority is convinced to give them the facilities.Conflict and negotiation of iris group: In year 2000: Labour were started conflict because there salary wasn’t sufficient .For this reason they refused to do work. . And it solved by their negotiation.
➢ Provide customers with quality products while maintaining high profitability. ➢ Maintain tight control of cost and operation during expansion. Findings and conclusion: The iris group’s authority. The authority understands the problem of the worker and if there is any conflict then they try to solve it by call a meeting and discuss with everyone. ➢ Extension the export.shirt in a reasonable price. They cooperate with each other.Mission and vision: ➢ Earn profit by providing good quality sweater and T. ➢ Establish strong sales in the city's major fashion houses & retailer shop. ➢ Distribution of the product in all the divisional cities of Bangladesh. ➢ Expand production facility without compromising product quality. So the worker of this company works there honestly and with dedication. . manager and workers are so helpful to each other that make their work easy to do.
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