Conflict and Negotiations

Dr. Neera Singh

 Flow of Learning
What is Conflict
Types of Conflict
Process of Conflict Resolution
Negotiation
Types of Negotiations
 Conflict
Conflict is 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.
If no one is aware of a conflict, then it is generally agreed no conflict exists.
Also needed to begin the conflict process are opposition or incompatibility
and interaction.
Consequences of Conflict

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 Potential Sources of Conflict

Concern with self *

Different Goals &Resources
Power
Ideologies
Varied Norms
Relationship
Categories of Conflict

Contemporary perspectives differentiate types of conflict based on their effects.

Functional conflict supports the goals of the group and improves its
performance.(e.g. a debate among the work team )
Conflicts that hinder group performance are dysfunctional or destructive
forms of conflict.(e.g. a conflict on the control of the team which distracts
them from the task in hand )
CONFLICT & PERFORMANCE

Exhibit 14-1 Conflict and Unit

Performance from
Three Types of Conflict

Types of Conflict
Researchers have classified conflicts into three categories:
Task conflict relates to the content and goals of the work.
Relationship conflict focuses on interpersonal relationships.
Process conflict is about how the work gets done
Three Types of Conflict based on Loci of Conflict

Loci (point of generation ) of Conflict

Another way to understand conflict is to consider its locus, or
where the conflict occurs.
There are three basic types:
Dyadic conflict is conflict between two people.
Intragroup conflict occurs within a group or team.
Intergroup conflict is conflict between groups or teams.
Outline the Conflict Process
Exhibit 14-2 The Conflict Process
Conflicts in Indian Family Business

13 percent of the Family business globally survive till 3rd generation

First generation : passion to run the business
Ssecond generation: understands the struggle of the first and holds the business
together
Third and fourth generations : Seldom sense / agree on what drives the business.
This is when conflict is visible

Sources : lack of clarity about roles , succession planning and ,lack of

communication
 Case Situation .1
What Would You Do?
Trying to capitalize on rising real estate prices, your organization purchased
a large cache of mortgage backed securities. Thanks to the housing crisis
and the global recession, these are now worthless, and your company is
near bankruptcy. Senior management is divided on how to proceed.
One group wants to eliminate 25% of lower level employees. Another group
wants to reduce salaries across the board by 20%.

How would you resolve this strategic conflict?

 Negotiation
a joint process of finding a mutually acceptable

solution to a complex conflict

Approaches to Negotiation

Distributive Bargaining –
the goals of the parties are in
conflict, and each party seeks to
maximize its resources
Approaches to Negotiation

Integrative Negotiation –
focuses on the merits of the
issues and seeks a win–win
solution
Contrast Distributive and Integrative Bargaining
Exhibit 14-5 Distributive versus Integrative Bargaining

Bargaining Distributive Bargaining Integrative Bargaining

Characteristic
Goal Get as much of the pie as possible
Motivation Win–lose ; Zero Sum negotiation
Focus Positions (“I can’t go beyond this
point on this issue.”)
Interests Opposed, claiming Value
Information sharing Low (Sharing information will
only allow other party to take
advantage.)
Duration of relationship Short term
Expand the pie so that both parties
are satisfied
Win–win ; Non zero sum
negotiation
Interests (“Can you explain why
this issue is so important to you?”)
Congruent, Creating value
High (Sharing information will
allow each party to find ways to
satisfy interests of each party.)
Long term
Satyagraha: the Gandhian approach to conflict resolution

Based on Humanistic values

Three levels of norms based on beliefs drawn from ancient
Indian wisdom
First level of norms: goals and conflicts
Second level: conflict struggle and process
Third level: conflict resolution
Goes beyond conflict resolution : integration ,self realization