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Learning Objectives: Define Conflict Differentiate between traditional, human relations and interactionist views of conflict Contrast task, relationship and process conflict Outline the conflict process Describe the five conflict-handling intentions Contrast distributive and integrative bargaining Identify the five steps in the negotiation process Describe cultural differences in negotiations

Any situation in which incompatible goals, attitudes, emotions or behaviors lead to disagreement or opposition between two or more parties

LEVELS OF CONFLICT Interpersonal – occurs between two or more individuals Intrapersonal – occurs within an individual Intergroup – occurs among members of different teams or groups Inter-organizational – competition and rivalry that characterize firms operating in the same market .

THREE VIEWS OF CONFLICT Traditional View Conflict is dysfunctional. destructive and irrational Human Relations View Conflict is natural in groups and organizations Interactionist View Conflict is not only a positive force in a group but that is absolutely necessary for a group to perform effectively .

destructive between two or more people disagreement . DYSFUNCTIONAL CONFLICT Functional Conflict A healthy.FUNCTIONAL VS. constructive disagreement between two or more people Dysfunctional Conflict An unhealthy.

Relationship Focuses on interpersonal relationships. Process Conflict over how work gets done .THREE TYPES OF CONFLICT Task Disagreements among group members. concerning ideas and opinions about the task being performed. and has a detrimental impact on group or organizational outcomes. It is generated from emotions and frustrations.

THE CONFLICT PROCESS Potential Opposition or Incompatibility Outcome Cognition and personalization CONFLICT Behavior Intentions .

Stage 2 Cognition and personalization Stage 1 Potential Opposition or Incompatibility Stage 4 Outcome Stage 3 Intentions Stage 4 Behavior Increased group performance Recognize conflict •Communication •Structure •Personal Variables •Competing •Collaborating •Compromising •Avoiding •Accommodating •Party’s behavior •Other’s reaction Felt conflict Decreased group performance .

.NEGOTIATION A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them. There are two general approaches to negotiation: Distributive and Integrative Bargaining.

Distributive Bargaining A negotiation method in which two parties strive to divide a fixed pool of resources. each party trying to maximize its share of the distribution Distributive bargaining is a fixed-sum game. . often money. It is also called a zero-sum process because one party loses whatever amount is gained by the other. and the limited resource is often termed a fixed pie.

This strategy focuses on developing mutually beneficial agreements based on the interests of the disputants.INTEGRATIVE BARGAINING A negotiation strategy in which parties collaborate to find a “win-win" solution to their dispute. and fears important to each side. desires. concerns. Interests include the needs. .

Integrative Bargaining Bargaining Characteristic AVAILABLE RESOURCES MOTIVATION Distributive Bargaining Fixed amount of resources to be divided Win-Lose Integrative Bargaining Variable amount of resources to be divided Win-Win INTERESTS Opposed Congruent RELATIONSHIP DURATION Short term Long term .Distributive vs.

NEGOTIATION PROCESS Preparation and Planning Definition of Ground Rules Clarification and Justification Bargaining and Problem Solving Closure and Implementation .

Preparation and Planning  Make sure that your goal stays paramount in your discussions  Put your goals in writing and develop a range of outcomes to keep your attention focused.  Assess what you think are the other party’s goals  Once you have gathered your information. use it to develop a strategy. .

you are ready to begin defining with the other party the ground rules and procedures of the negotiation itself. Clarification and Justification Both you and other party will explain. the parties will exchange their initial proposals or demands. At this stage. amplify. clarify and justify your original demands .Definition of Ground Rules During this phase.

Bargaining and Problem Solving This is where both party will need to make compromise Closure and Implementation The final step is formalizing the agreement that has been worked out and developing any procedures necessary for implementation and monitoring .

whereas others may adopt a method that is more indirect or complex.Cultural differences in Negotiation The methods of negotiation vary with culture. Some people may adopt a more direct or simple method of communication. Each culture has its own standards. and one behavior that has a certain meaning in a certain culture could be interpreted differently in another. .

3. 4. Attitude Social structure Cognitive pattern Roles and role interpretation Language Non-verbal expressions Spatial usage and organization Understanding of time . 7. 8. 6. 5.Cultural factors that influenced Communicative Difficulties 1. 2.

Aspects of Cultural Differences in Negotiation         Definition of Negotiation Selection of Negotiators Rituals of Negotiation Communication Time Risk Tendency Group and Individual Natural Agreement .

To the Chinese people. When both parties wish to do so. For example. This kind of “guan-xi (relationship)” is different from the Western sense of “relationship” (Chang. Americans focus heavily on facts. however. and they persuade others by using logic. 2001). they both need to seek mutual benefits that address their needs and perspectives before they can reach a consensus. .CONCLUSION Negotiation can be viewed as a process in which a party wishes to persuade and change the thought s and behaviors of another. situational factors. a successful multinational business negotiation begins with understanding the opponent’s cultural and cognitive patterns. The three domains of personal qualities. and it is even more difficult to reach an agreement in an international negotiation that involves different cultural backgrounds. Therefore. and strategies are very different between different cultures. Different people have different views. the mutual relationship between the negotiators is the key to a successful negotiation.