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Organizational Behavior: Conflict and Negotiation
Organizational Behavior: Conflict and Negotiation
Organizational Behavior
15th Edition
Kelli J. Schutte
William Jewell College
Copyright © 2014 Dorling Kindersley (India) Pvt. Ltd
Authorized adaptation from the United States edition of Organizational 14-0
Behavior, 15e
Chapter Learning Objectives
After studying this chapter, you should be able to:
– Define conflict.
– Differentiate between the traditional, resolution focused, and
interactionist views of conflict.
– Outline the conflict process.
– Define negotiation.
– Contrast distributive and integrative bargaining.
– Apply the five steps in the negotiation process.
– Show how individual differences influence negotiations.
– Assess the roles and functions of third-party negotiations.
– Describe cultural differences in negotiations.
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Conflict Defined
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
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
Traditional View of Conflict
– The belief that all conflict is harmful and must be avoided
– Prevalent view in the 1930s-1940s
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Continued Transitions in Conflict Thought
Resolution Focused View of Conflict
– The belief that conflict is a natural and inevitable outcome in
any group
– Focuses on productive conflict resolution
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
Task Conflict
– Conflicts over content and goals of the work
– Low-to-moderate levels of this type are
FUNCTIONAL
Relationship Conflict
– Conflict based on interpersonal relationships
– Almost always DYSFUNCTIONAL
Process Conflict
– Conflict over how work gets done
– Low levels of this type are FUNCTIONAL
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The Conflict Process
We will focus on each step in a moment…
E X H I B I T 14-1
14-7
Stage I: Potential Opposition or Incompatibility
Communication
– Semantic difficulties, misunderstandings, over communication and
“noise”
Structure
– Size and specialization of jobs
– Jurisdictional clarity/ambiguity
– Member/goal incompatibility
– Leadership styles (close or participative)
– Reward systems (win-lose)
– Dependence/interdependence of groups
Personal Variables
– Differing individual value systems
– Personality types
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Stage II: Cognition and Personalization
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
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Stage III: Intentions
Intentions
– Decisions to act in a given way
– Note: behavior does not always accurately reflect intent
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. Arrows added. Used with permission.
E X H I B I T 14-2
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Stage IV: Behavior
Conflict Management
– The use of resolution and stimulation techniques to achieve
the desired level of conflict
Conflict-Intensity Continuum
Source: Based on S.P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp. 93–
97; and F. Glasi, “The Process of Conflict Escalation and the Roles of Third Parties,” in G.B.J. Bomers and R. Peterson (eds.), Conflict Management
and Industrial Relations (Boston: Kluwer-Nijhoff, 1982), pp. 119–40.
E X H I B I T 14-3
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Conflict Management Techniques
Conflict Resolution Conflict Stimulation
Techniques Techniques
– Problem solving – Bringing in outsiders
– Superordinate goals – Communication
– Expansion of resources – Restructuring the
– Avoidance organization
– Smoothing – Appointing a devil’s
– Compromise advocate
– Authoritative command
– Altering the human
variable
– Altering the structural
variables
Source: Based on S. P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp.
59–89
SEE E X H I B I T 14-4
14-12
Stage V: Outcomes
Functional 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
Managing Functional
– Creation of an environment Conflict
for self-evaluation and
change – Reward dissent and punish
conflict avoiders
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Negotiation
Negotiation (Bargaining)
– A process in which two or more parties exchange goods or
services and attempt to agree on the exchange rate for them
Two General Approaches:
– Distributive Bargaining
• Negotiation that seeks to divide up a fixed amount of
resources; a win-lose situation
– Integrative Bargaining
• Negotiation that seeks one or more settlements that can create
a win-win solution
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Distributive versus Integrative Bargaining
Bargaining Characteristic Distributive
Integrative Bargaining
Bargaining
Goal Get all the pie you can Expand the pie
Motivation Win-Lose 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
SEE E X H I B I T 14-5
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The Negotiation Process
BATNA
– The Best Alternative
To a Negotiated
Agreement
– The lowest acceptable
value (outcome) to an
individual for a
negotiated agreement
E X H I B I T 14-7
14-16
Individual Differences in Negotiation Effectiveness
Personality Traits
– Extroverts and agreeable people are weaker at distributive
negotiation; disagreeable introverts are best
– Intelligence is a weak indicator of effectiveness
Mood and Emotion
– Ability to show anger helps in distributive bargaining
– Positive moods and emotions help integrative bargaining
Gender
– Men and women negotiate the same way, but may
experience different outcomes
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Third-Party Negotiations
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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Global Implications
Conflict and Culture
– Indian and French managers view conflict differently
– Indian managers are more likely to use accommodation and
avoidance while French managers are likely to use competing
tactics.
Cultural Differences in Negotiations
– Multiple cross-cultural studies on negotiation styles, for
instance:
• American negotiators are more likely than Japanese bargainers
to make a first offer
• North Americans use facts to persuade; Arabs use emotion; and
Russians use asserted ideals
• Brazilians say “no” more often than Americans or Japanese
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Summary and Managerial Implications
Conflict can be
constructive or
destructive
Reduce excessive conflict
by using:
– Competition
– Collaboration
– Avoidance
– Accommodation
– Compromise
Integrative negotiation is
a better long-term
method
E X H I B I T 14-8
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stored in a retrieval system, or transmitted, in any form or by any
means, electronic, mechanical, photocopying, recording, or otherwise,
without the prior written permission of the publisher. Printed in the
United States of America.
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