Robbins & Judge

Organizational Behavior
14th Edition

Conflict and Negotiation

Kelli J. Schutte
William Jewell College

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 14-0

Conflict Defined
Ø 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
– That point in an ongoing activity when an interaction
“crosses over” to become an interparty conflict
Ø Encompasses a wide range of conflicts that people
experience in organizations
– Incompatibility of goals
– Differences over interpretations of facts
– Disagreements based on behavioral expectations

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Transitions in Conflict Thought
Ø Traditional View of Conflict
– The belief that all conflict is harmful and must be avoided
– Prevalent view in the 1930s-1940s

Ø Conflict resulted from:

– Poor communication
– Lack of openness
– Failure to respond to employee needs

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Continued Transitions in Conflict Thought
Ø Human Relations View of Conflict
– The belief that conflict is a natural and inevitable outcome in
any group
– Prevalent from the late 1940s through mid-1970s
Ø Interactionist View of Conflict
– The belief that conflict is not only a positive force in a group
but that it is absolutely necessary for a group to perform
effectively
– Current view

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Forms of Interactionist Conflict

Functional Conflict
• Conflict that supports the
goals of the group and
improves its performance

Dysfunctional
Conflict
• Conflict that hinders
group performance

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Types of Interactionist Conflict
Ø Task Conflict
– Conflicts over content and goals of the work
– Low-to-moderate levels of this type are
FUNCTIONAL

Ø Relationship Conflict
– Conflict based on interpersonal relationships
– Almost always DYSFUNCTIONAL

Ø Process Conflict
– Conflict over how work gets done
– Low levels of this type are FUNCTIONAL
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The Conflict Process
Ø We will focus on each step in a moment…

E X H I B I T 14-1

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Stage I: Potential Opposition or Incompatibility
Conflict hasn’t started yet, but conditions exist that may lead to it.
Ø Communication (e.g., misunderstandings)
– Semantic difficulties, misunderstandings, over communication and
“noise”
Ø Structure (e.g., role ambiguity, hierarchy)
– Size and specialization of jobs
– Jurisdictional clarity/ambiguity
– Member/goal incompatibility
– Leadership styles (close or participative)
– Reward systems (win-lose)
– Dependence/interdependence of groups
Ø Personal Variables (e.g., personality clashes, emotions)
– Differing individual value systems
– Personality types
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Stage II: Cognition and Personalization
Ø Conflict becomes recognized and starts affecting
emotions.
Ø Important stage for two reasons:
1. Conflict is defined
• Perceived Conflict
– Awareness by one or more parties of the existence of
conditions that create opportunities for conflict to arise

2. Emotions are expressed that have a strong impact on the

eventual outcome
• Felt Conflict
– Emotional involvement in a conflict creating anxiety,
tenseness, frustration, or hostility
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Stage III: Intentions
This stage involves deciding how to respond to the conflict.

Conflict-handling intentions:

– Competing: Assertive and uncooperative

– Collaborating: Assertive and cooperative

– Compromising: Moderate assertiveness and cooperation

– Avoiding: Unassertive and uncooperative

– Accommodating: Unassertive and cooperative

E X H I B I T 14-2

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 Stage III: Intentions
Ø Intentions
– Decisions to act in a given way
– Note: behavior does not always accurately reflect intent
Ø Dimensions of conflict-handling intentions:
– Cooperativeness
• Attempting to satisfy
the other party’s
concerns
– Assertiveness
• Attempting to satisfy
one’s own concerns

Source: K. Thomas, “Conflict and Negotiation Processes in Organizations,” in M.D. Dunnette and L.M. Hough (eds.), Handbook of Industrial and
Organizational Psychology, 2nd ed., vol. 3 (Palo Alto, CA: Consulting Psychologists Press, 1992), p. 668. With permission.

E X H I B I T 14-2

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Stage IV: Behavior
Ø Conflict Management
– The use of resolution and stimulation techniques to achieve
the desired level of conflict
– Conflict becomes visible and external.
Overt conflict includes:
» What one party does (behavior)
» How the other party reacts (response)

Ø Conflict-Intensity Continuum

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Conflict Resolution Techniques
– Problem solving – Bringing in outsiders
– Superordinate goals – Restructuring the
– Expansion of resources organization
– Avoidance – Appointing a devil’s
– Smoothing advocate
– Compromise
– Authoritative command
– Altering the human
variable
– Altering the structural
variables
– Communication
Source: Based on S. P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp.
59–89

E X H I B I T 14-4

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Stage V: Outcomes
Ø Functional Ø Dysfunctional
– Increased group – Development of discontent
performance
– Reduced group
– Improved quality of effectiveness
decisions
– Retarded communication
– Stimulation of creativity
and innovation – Reduced group
cohesiveness
– Encouragement of interest
and curiosity – Infighting among group
members overcomes group
– Provision of a medium for goals
problem solving
Ø Creating Functional
– Creation of an environment Conflict
for self-evaluation and
change – Reward dissent and punish
conflict avoiders

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 Negotiation
Ø Negotiation (Bargaining)
– A process in which two or more parties exchange goods or services
and attempt to agree on the exchange rate for them
Ø Two General Approaches:
– Distributive Bargaining
• A competitive negotiation strategy where one party’s gain is the other
party’s loss.
• “If you win, I lose.”
• Common in: Salary negotiations, buying a car, bargaining at a market.
– Integrative Bargaining
• A cooperative strategy where both parties collaborate to find a
mutually beneficial solution.
• “We both can win.”
• Common in: Business partnerships, labor agreements, long-term
contracts. 14-14
 Distributive versus Integrative Bargaining
Bargaining Characteristic Distributive
Integrative Bargaining
Bargaining
Goal Get all the pie you can Expand the pie
Motivation Win-Lose/ zeo-sum Win-Win
Focus Positions Interests
Information Sharing Low High
Duration of Relationships Short-Term Long-Term
Source: Based on R. J. Lewicki and J. A. Litterer,
Negotiation (Homewood, IL: Irwin, 1985), p. 280.

Integrative
Yours Mine Yours Mine
Distributive

E X H I B I T 14-5

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Distributive versus Integrative Bargaining
Ø Distributive Bargaining
– The pie is fixed in size.
– The more one party gets (Mine), the less the other party gets (Yours).
– It’s a win-lose situation—each party competes for the largest possible share.
– Represented by a backward arrow, indicating limited growth or value creation.
Ø Integrative Bargaining
– The pie is expanded so that both parties get more.
– Both "Yours" and "Mine" have grown, reflecting a win-win outcome.
– Represented by a forward arrow, suggesting growth and mutual benefit.
– The focus is on collaboration, creative problem-solving, and shared gains.

Integrative
Yours Mine Yours Mine
Distributive

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The Negotiation Process
Ø BATNA
– The Best Alternative
To a Negotiated
Agreement
– The lowest acceptable
value (outcome) to an
individual for a
negotiated agreement
Ø The “Bottom Line”
for negotiations

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1. Preparation and Planning
Most critical step.

•Identify your goals, the other party’s goals, strengths, weaknesses, and possible
outcomes.

•Gather facts and develop a BATNA (Best Alternative to a Negotiated Agreement).

2. Definition of Ground Rules

Set the terms of negotiation:
◦Who will participate?
◦Where and when will talks occur?
◦What will be discussed?
◦What procedures will be followed?

3. Clarification and Justification

•Both parties explain their positions.
•Share background information, needs, and reasoning to justify demands.
•Important for building trust and understanding.
4. Bargaining and Problem Solving
•The actual negotiation takes place here.

•Parties make offers and concessions to reach a mutually beneficial

agreement.

•This step reflects either distributive or integrative strategies.

5. Closure and Implementation

•The agreement is formalized (written contract or verbal deal).

•Action steps, responsibilities, and timelines are defined.

•Follow-up is key to ensure proper implementation.

Individual Differences in Negotiation Effectiveness
Ø Personality Traits
– Extroverts and agreeable people weaker at distributive
negotiation – disagreeable introvert is best
– Intelligence is a weak indicator of effectiveness
Ø Mood and Emotion
– Ability to show anger helps in distributive bargaining
– Positive moods and emotions help integrative bargaining
Ø Gender
– Men and women negotiate the same way, but may
experience different outcomes
– Women and men take on gender stereotypes in negotiations:
tender and tough
– Women are less likely to negotiate

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Third-Party Negotiations
Ø Four Basic Third-Party Roles
– Mediator
• A neutral third party who facilitates a negotiated solution by using
reasoning, persuasion, and suggestions for alternatives
– Arbitrator
• A third party to a negotiation who has the authority to dictate an
agreement.
– Conciliator
• A trusted third party who provides an informal communication
link between the negotiator and the opponent
– Consultant
• An impartial third party, skilled in conflict management, who
attempts to facilitate creative problem solving through
communication and analysis

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