Conflict and Negotiation

Management
Learning Objectives
 Explain why conflict arises, and identify the types and sources of
conflict in organizations.
 Describe conflict management strategies that managers can use to
resolve conflict effectively.
 Understand the nature of negotiation and why integrative bargaining is
more effective than distributive negotiation.

17-2
Learning Objectives
 Describe ways in which managers can promote integrative bargaining in
organizations
 Explain why managers need to be attuned to organizational politics,
and describe the political strategies that managers can use to become
politically skilled.

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  a serious disagreement or argument, typically a protracted one.
synonyms:
dispute, quarrel, squabble, disagreement, difference of opinion, dissension
clash, incompatibility, incongruity, lack of
congruence, friction, opposition, mismatch, variance, difference, divergence, contra
diction, inconsistency, discrepancy, divided loyalties

 a state of mind in which a person experiences a clash of opposing feelings or needs

 a serious incompatibility between two or more opinions, principles, or interests.
What's a Conflict?

Conflict may be defined as friction between individuals due to differences of

opinions, ideas, beliefs, values, needs or objectives.

A conflict is a problem that the main character or characters face.

Examples
An arctic adventurer struggles to survive hunger and cold.
A brother and sister fight over control of the television.

Every story worth reading has a conflict.

If there is no conflict, there is no tension.
Some stories has multiple conflicts.
Definition of Conflict
 Common themes
 Perception of conflict
 Opposition or incompatibility
 Interaction

“ A process that begins when one party perceives that

another party has negatively affected, or is about
to negatively affect, something the first party
cares about”
 WHAT IS CONFLICT?
 Conflict is a disagreement through which the parties involved perceive a
threat to their needs, interests or concerns.
 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
Transitions
Transitions in
in Conflict
Conflict Thought
Thought
Traditional View of Conflict
The belief that all conflict is harmful and must be avoided

Causes
Causes
•• Poor
Poorcommunication
communication
•• Lack
Lackofofopenness
openness
•• Failure
Failuretotorespond
respondtoto
employee
employeeneeds
needs
Transitions
Transitions in
in Conflict
Conflict Thought
Thought (cont’d)
(cont’d)
Human Relations View of Conflict
The belief that conflict is a natural and inevitable outcome
in any group

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
Functional
Functional versus
versus Dysfunctional
Dysfunctional Conflict
Conflict
(Positive)
Functional Conflict
Conflict that supports the goals
of the group and improves its
performance

Dysfunctional Conflict
Conflict that hinders group
performance
(Negative)
“Conflict arises when a difference
between two (or more) people
necessitates change in at least one
person in order for their engagement to
continue and develop. The differences
cannot coexist without some
adjustment”.
- Jordan (Courage in
connection:
Conflict, compassion,
creativity)
Conflict: Where does it come from?

Goals

Personality conflicts
Scarce resources
Styles

Values
The Positive Side of Conflict

 Conflict can teach you to make the most of each situation and use it as a
learning opportunity or a leadership opportunity.

 You can also use it as an opportunity to transform the situation into

something better.
 IMPORTANT FACTORS IN
CONFLICT

Disagreement
Parties involved
Perceived Threat
Needs, interests, concern
CONFLICT MUST BE PERCEIVED TO EXIST!

Objective Condition

Conflict No Conflict

Conflict Open Conflict False Conflict

Perceived
Conflict
No Conflict Latent Conflict No Conflict
PERCEPTUAL FILTERS

Culture, race & ethnicity

Gender&Sexuality
Knowledge (General &
Situational)
Impression of the messenger
Previous experiences
Why does conflict
arise?
No two people are alike
See things differently
Different ideologies
Different approaches
to problem-solving
Poor communication
channels
Competition for limited
resources
Differences in goals and
values
Organizational inter-
department friction.
 Sources of Conflict
 Economic conflict involves competing motives to attain scarce
resources.
 Value conflict involves incompatibility in ways of life, ideologies –
the preferences.
 Power conflict occurs when each party wishes to maintain or
maximize the amount of influence.
 FORMS OF CONFLICT IN THE ORGANİZATION

Individual Conflict
Interpersonal Conflict
Intergroup Organisational Conflicts
 Sources of Interpersonal
Conflict
Personality • Not everyone feels, thinks or acts alike.
Clashes

• Status or the social rank of a person in

Threats to status: a group, is very important to many
individuals.

• Every continuing relationship requires

some degree of trust—the capacity to
Lack of trust: depend on each other’s word and
actions.
Sources of Intergroup Conflict
Interdependencies Departments who are in competition
and shared for these scarce resources may
resources come into conflict

Conflict can also arise where there is

Ambiguity ambiguity regarding

Within an organisation there are set

Intergroup
resources that departments must
differences compete for to initiate

more
Levels of Conflict

LEVEL1: Problem to Solve

LEVEL2: Disagreement

LEVEL3: Contest

LEVEL4: Fight / Flight

LEVEL5:
Intractable
Common Sources of Conflict

A range of factors can determine whether conflicts will

arise or whether our working relationships with others will
be harmonious
 Unclear definition of responsibilities:
 Occasions where conflict arises because of decisions or actions
taken in disputed territories outside of their remit
 Limited resources: Competition for resources of time, money,
space etc. may lead to interpersonal conflict
 Conflict of interest: Individual prioritise their own personal goals
ahead of the company objectives
Sources of Conflict

17-54
Figure 17.3
Sources of Conflict
 Different Goals and Time Horizons
 Different groups have differing goals and focus.
 Overlapping Authority
 Two or more managers claim authority for the same activities which leads
to conflict between the managers and workers.

17-55
Sources of Conflict
 Task Interdependencies
 One member of a group or a group fails to finish a task that another member
or group depends on, causing the waiting worker or group to fall behind.
 Different Evaluation or Reward Systems
 A group is rewarded for achieving a goal, but another interdependent group
is rewarded for achieving a goal that conflicts with the first group.

17-56
Sources of Conflict
 Scarce Resources
 Managers can come into conflict over the allocation of scare resources.
 Status Inconsistencies
Some individuals and groups have a
higher organizational status than
others, leading to conflict with lower
status groups.

17-57
FORMS OF CONFLICT

INTERNAL: The conflict a person

has with themselves.

PERSONAL: This is between the

person and his closest people. .

SOCIAL: Social Conflict is

between the doctor and his
patient.
 Types of Conflict
  Within an individual
  Between two individuals
  Within a team of individuals
  Between two or more teams within an
 organization
 Interpersonal conflicts - These are more visible to outsiders.
They occur between two or more individuals. They can be
fights, arguments, or differences of opinion. (Sandra wants
to use the car to go to her after-school job but her mother
plans to use the car to go grocery shopping. These two are
having an interpersonal conflict because their needs
conflict.)
 Intergroup conflicts - these occur between groups, regardless of the size of
the groups (classes, teams, nations). A conflict between two gangs, each
representing a different neighborhood, would be an example of an
intergroup conflict.
 Types of Conflict
Intrapersonal conflict

Interpersonal conflict

Intergroup conflict
Types of Conflict

17-68
Figure 17.2
Types of Conflict
 Interpersonal Conflict
 Conflict between individuals due to differences in their goals or values.
 Intragroup Conflict
 Conflict within a
group or team.

17-69
Types of Conflict
 Intergroup Conflict
 Conflict between two or more teams, groups or departments.
 Managers play a key role in resolution of this conflict
 Interorganizational Conflict
 Conflict that arises across organizations.

17-70
Types
Types of
of Conflict
Conflict
Task Conflict
Conflicts over content and goals
of the work

Relationship Conflict
Conflict based on interpersonal
relationships

Process Conflict
Conflict over how work gets done
Overview of Conflict Types

1. Person vs. Person

2. Person vs. Self
3. Person vs. Society
4. Person vs. Nature
5. Person vs. Supernatural
6. Person vs. Technology
Person vs. Person

The central character faces opposition from another

person or group of people.

Examples
 Two girls compete for the same role in the school play.
A ninja warrior fights a rival clan to avenge his master's
death.
Person vs. Self

The central character faces an internal struggle.

Examples
A young man goes through hard times after losing his
father in a car accident.
 An Olympic athlete pushes his performance to the limit
despite his physical disability
Person vs. Society

The central character or group of characters battles

against traditions, institutions, or laws.

Examples
A student takes his fight against the school dress code
all the way to the Supreme Court.
A group of students protest in front of a university
known for its unfair and racially motivated admission
practices.
Person vs. Nature

The central character struggles against animals, the

elements, or other natural forces.

Examples
A castaway washes up on an island and must learn to
survive with the available resources.
A ship captain pursues a great white whale through
stormy seas.
Person vs. Supernatural

The central character is challenged by forces that are

not of this world.

Examples
A boy wizard must use his powers to protect his
community from evil monsters.
A group of teenagers sleep in a haunted house and
begin disappearing one by one.
Person vs. Technology

The central character struggles with or against the

forces of technology.

Examples
A group of strangers gets stuck in an elevator.
A teenage boy is pursued by robots from space that
transform into cars.
Example
1-An archeologist attempts to escape a hidden temple overrun by a vampire army.
2-An elderly man struggles to learn how to use his new phone.
3-Two boxers who were formerly friends compete for the championship belt.
4-A young woman fights to gain admittance in an elite prep school that was only for boys.
5-A group of colonists struggle to survive the winter in a strange land
6-A students struggles against the urge to procrastinate and play video games rather than to do his
homework.
1-Person vs. Supernatural
2-Person vs. Technology
3- Person vs. Person
4- Person vs. Society
5- Person vs. Nature
6- Person vs. Self
Effects of
conflicts
1. Positive effects of
conflicts
 Triggers the need for
searching for new facts and
solutions.
Improves group
cohesiveness
2. Negative effects of
conflicts
Reduces productivity
Delays the decision-making
process
The
The Conflict
Conflict Process
Process

E X H I B I T 15–1
E X H I B I T 15–1
 Stage
Stage I:I: Potential
Potential Opposition
Opposition or
or Incompatibility
Incompatibility
 Communication
– Semantic difficulties, misunderstandings, 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
Stage
Stage II:
II: Cognition
Cognition and
and Personalization
Personalization
Perceived Conflict Felt Conflict
Awareness by one or Emotional involvement in
more parties of the a conflict creating anxiety,
existence of conditions tenseness, frustration, or
that create opportunities hostility
for conflict to arise

Conflict
ConflictDefinition
Definition

Negative
NegativeEmotions
Emotions Positive
PositiveFeelings
Feelings
Stage
Stage III:
III: Intentions
Intentions
Intentions
Decisions to act in a given way

Cooperativeness
Cooperativeness
•• Attempting
Attemptingtotosatisfy
satisfythe
theother
otherparty’s
party’sconcerns
concerns
Assertiveness
Assertiveness
•• Attempting
Attemptingtotosatisfy
satisfyone’s
one’sown
ownconcerns
concerns
Dimensions
Dimensions of
of Conflict-Handling
Conflict-Handling Intentions
Intentions
Stage
Stage III:
III: Intentions
Intentions (cont’d)
(cont’d)
Competing
A desire to satisfy one’s interests, regardless of the
impact on the other party to the conflict

Collaborating
A situation in which the parties to a conflict each desire to
satisfy fully the concerns of all parties

Avoiding
The desire to withdraw from or suppress a conflict
Stage
Stage III:
III: Intentions
Intentions (cont’d)
(cont’d)
Accommodating
The willingness of one party in a conflict to place the
opponent’s interests above his or her own

Compromising
A situation in which each party to a conflict is willing
to give up something
Stage
Stage IV:
IV: Behavior
Behavior
Conflict Management
The use of resolution and stimulation techniques to
achieve the desired level of conflict
Conflict-Intensity
Conflict-Intensity Continuum
Continuum
What
What is
is aa conflict
conflict management
management style
style and
and
why
why do
do II need
need toto know
know this?
this?
 Conflict Management Style: Form of behavior that a
person practices in response to conflict with others

 When living and interacting with others on campus, you

need to know how to resolve issues in different
situations.
Conflict
Conflict Management
Management Techniques
Techniques

Conflict
ConflictResolution
ResolutionTechniques
Techniques
•• Problem
Problemsolving
solving
•• Superordinate
Superordinategoals
goals
•• Expansion
Expansionofofresources
resources
•• Avoidance
Avoidance
•• Smoothing
Smoothing
•• Compromise
Compromise
•• Authoritative
Authoritativecommand
command
•• Altering
Alteringthe
thehuman
humanvariable
variable
•• Altering
Alteringthe
thestructural
structuralvariables
variables
Conflict
Conflict Management
Management Techniques
Techniques

Conflict
ConflictResolution
ResolutionTechniques
Techniques
•• Communication
Communication
•• Bringing
Bringingininoutsiders
outsiders
•• Restructuring
Restructuringthe
theorganization
organization
•• Appointing
Appointingaadevil’s
devil’sadvocate
advocate
Stage
Stage V:
V: Outcomes
Outcomes
 Functional Outcomes from Conflict
– Increased group performance
– Improved quality of decisions
– Stimulation of creativity and innovation
– Encouragement of interest and curiosity
– Provision of a medium for problem-solving
– Creation of an environment for self-evaluation and change
 Creating Functional Conflict
– Reward dissent and punish conflict avoiders
Stage
Stage V:
V: Outcomes
Outcomes
 Dysfunctional Outcomes from Conflict
– Development of discontent
– Reduced group effectiveness
– Retarded communication
– Reduced group cohesiveness
– Infighting among group members overcomes group goals
The
The Conflict
Conflict Process
Process
The Conflict Process
 Stage 1
 Potential Opposition
 Factors are present that can lead to conflict

Communication

Structure

Personal variables
The Conflict Process

 Stage 2
 Cognition and Personalization
 Awareness of conditions in stage 1
 The conditions cause some sort of frustration
 STAGE III: INTENTIONS

Assertive

  Competing   Collaborating

  Compromising

  Avoiding   Accommodating

Unassertive

Uncooperative Cooperative
STAGE IV: BEHAVIOR

Verbal,written, even physical

attacks
STAGE V: OUTCOMES

The Effects on Relationships

Within groups
Increased group cohesiveness
Emphasis on loyalty
Rise in autocratic leadership
Focus on activity
STAGE V: OUTCOMES

Between groups
“we-they” attitudes
Distorted perceptions
Decreased communication
CONFLICT MANAGEMENT

Conflict Resolution
Conflict Stimulation
CONFLICT MANAGEMENT
Resolving Conflict
Develop superordinate goals
Expanding the supply of critical resources
Clarify existing relationships
Modify existing relationships
Decoupling Mechanisms
Slack resources
Self-contained task
CONFLICT MANAGEMENT

Resolving Conflict
Power
Challenger disaster
CONFLICT MANAGEMENT

Conflict Stimulation
Bringing outside individuals into the
group
Altering the organization’s structure
Stimulating competiton
Programmed conflict
Devil’s advocacy
Conflict:
When to call the boss
 External issues - almost always
 Team performance issues
 use strategies for conflict management and attempt to
resolve
 if no immediate and sustained improvement, ask the
boss for facilitation assistance
Conflict:
When to call the boss

 Team interaction/ communication

issues
 require immediate facilitation,
inform boss and discuss next steps
together
Five Styles of Conflict Management
You will experience some form of internal or external
conflict while living with roommates at some point in your
college career. Understanding how you handle conflict is
important in helping you decide how to deal with stress and
manage certain situations.
Accommodating
People who accommodate are unassertive and very cooperative.

 Give in during a conflict

 Acknowledge they made a mistake/decide it was no big deal
 Put relationships first, ignore issues, and try to keep peace at any price
 Effective when the other person or party has a better plan or solution
Avoiding

People who avoid conflict are generally unassertive and uncooperative.

 Avoid the conflict entirely or delay their response instead of voicing concerns
 Can create some space in an emotional environment
 Not a good long-term strategy
Collaborating
Collaborators are both assertive and cooperative.

 Assert own views while also listening to other views and welcoming
differences
 Seek a “win-win” outcome
 Identify underlying concerns of a conflict
 Create room for multiple ideas
 Requires time and effort from both parties
Competing

People who approach conflict in a competitive way assert themselves and do not
cooperate while pursuing their own concerns at another’s expense.

 Takes on a “win-lose” approach where one person wins and one person loses
 Does not rely on cooperation with the other party to reach outcome
 May be appropriate for emergencies when time is important
Compromising
Compromisers are moderately assertive and moderately cooperative.

 Try to find fast, mutually acceptable solutions to conflicts that partially

satisfy both parties
 Results in a “lose-lose” approach
 Appropriate temporary solution
 Considered an easy way out when you need more time to collaborate to
find a better solution
Which one is best?

There is no BEST way to handle conflict. Each conflict is different and requires a
different response.

As a society, we teach:
“Two heads are better than one.” (Collaborating)
“Kill your enemies with kindness.” (Accommodating)
“Split the difference.” (Compromising)
“Leave well enough alone.” (Avoiding)
“Might makes right.” (Competing)
Conclusion

 Different conflict management styles may be used when faced with different
situations.

 Knowing yourself and fully understanding each situation will help you
understand the conflict management style needed.

 Try a scenario-based approach to test the effectiveness of different

approaches to specific situations.
Conflict Management Styles
Which Conflict Style Is Best?
 Use avoidance  Use compromise
 When an issue is trivial  When goals are important but not
worth the effort/disruption of more
 To temporarily delay, allow emotions to assertive approach
cool
 Use collaboration
 Use accommodation
 When concerns are too important to
 When you find you be compromised
are wrong
 When objective is to merge insights,
 As a favor, build relationship gain commitment
 Use competition  When have the time
 When quick, decisive action vital
 When don’t trust opponent
Conflict Management Techniques
 Focus on compromising,
collaborating styles
 Focus on (superordinate)
shared goals requiring
cooperation
 Use communication skills
 Use problem solving/
decision-making skills
 Expansion of resources
 Smoothing
 Altering human variable
 Altering structural variables
 Bringing in outsiders
 Restructuring the
organization
 Appointing a devil’s
advocate
 Authoritative command
Example: Apollo 13
How do you deal with
conflict situations?
Negotiate
Solve the problem
Conceptual skills
Communication Skills
1. Listening
2. Asking Question
Assertive action
Manage emotions and
tempers
Resolve the conflict in a
healthy way
Be polite and respectful
Conflict Management Strategies
 Functional Conflict Resolution
 Handling conflict by compromise or collaboration between parties.

17-149
Conflict Management Strategies
Compromise
 each party is concerned about their goal accomplishment and is willing to
engage in give-and-take exchange to reach a reasonable solution.
 Collaboration
 parties try to handle the conflict without making concessions by coming up
with a new way to resolve their differences that leaves them both better off.

17-150
Conflict Management Strategies
 Accommodation
 one party simply gives in to the other party
 Avoidance
 two parties try to ignore the problem and do nothing to resolve the
disagreement

17-151
Conflict Management Strategies
 Competition
 each party tries to maximize its own gain and has little interest in
understanding the other’s position

17-152
Strategies Focused on Individuals
 Increasing awareness of the sources of conflict
 Increasing diversity awareness and skills
 Practicing job rotation
 Using permanent transfers or dismissals when necessary

17-153
Strategies Focused on the Whole Organization

 Changing an organization’s
structure or culture
 Altering the source of conflict

17-154
17-155
17-156
Organizational Conflict
 Organizational Conflict
 The discord that arises when goals, interests or values of different
individuals or groups are
incompatible
and those people
block or thwart
each other’s efforts
to achieve their
objectives.

17-157
Organizational Conflict
 Organizational Conflict
 Conflict is inevitable given the wide range of goals for the different
stakeholder in the organization.

17-158
The Effect of Conflict on Organization Performance

17-159

Figure 17.1
CONFLICT WITHIN AN ORGANISATION

 Conflict is not uncommon. Minor disagreements or heated discussion

are inevitable aspects in most organisations.
 Conflict may well be a sign of a healthy organisation. There should
be clashes of ideas about tasks and projects and disagreements should
not be suppressed but be brought out into the open and be discussed
and all issues explored and conflicts resolved.
CONFLICT WITHIN AN ORGANISATION

 Conflict becomes counter productive when it is based on personality

clashes or when it is treated as an unseemly mess that needs to be
hurriedly cleared away rather than resolving the main issues
 Often conflict resolution strategies fail because the individuals
involved are unable or unwilling to resolve the conflict. If a conflict
cannot be resolved, other options should be investigated such as a
formal complaint or grievance procedure, external mediation etc.
Problems in Conflict Management

1. Parties will avoid conflict. Act as if there is nothing

wrong leading to even greater problems in the future and
drives the conflict “underground” where it’s harder to fix.
2. The blame game. People engage in finger pointing and
personalise the criticism e.g. he’s such a Wally (or
worse!!)
3. Adopting a win/loose mentality. Individuals seek victory
in the conflict and are not easily prepared to compromise.
Avoid a Defensive Climate

 Evaluation: Judging or criticising others

 Control: Imposing the will of one on another person or
group
 Strategy: Hidden agendas
 Neutrality: Showing indifference or lack of interest
 Superiority: Expressing dominance due to rank or status
 Certainty: Being rigid in one’s willingness to listen and
pre-judging the outcome
Promote a Supportive Climate

 Descriptive: Presenting ideas or opinions.

 Problem orientation: Focusing attention on the task.
 Spontaneity: Communicating openly and honestly.
 Empathy: Understanding the other person’s thoughts. Standing in their shoes
 Equality: Asking for opinions and/or advice.
 Provisionally: Expressing a willingness to listen to the ideas and thoughts of
another.
 Conflict can be constructive: Recognised that if properly managed it can have
a positive impact on the team.
 Be prepared: Plan how you will communicate about conflict in order to create
a supportive climate in the work place.
 Be involved: Do not withdraw or avoid conflict but rather constructively search
for solutions.
Causes of Team Conflict:
External Issues
 Competing for scarce resources
 Lack of information sharing
 Lack of clear direction
 Others working on same issue
 Lack of buy-in with recommendations
Causes of Team Conflict
Team Member Issues
 Performance issues
 (absenteeism,
Behavior problems
late work, not doing what
promised)
 Work quality problems
Causes of Team Conflict:
Team Member Issues
 Interaction/Communication Issues
 Schedule conflicts
 One member taking over
 Conflict between members
 Disagreeing over responsibilities
 Differing values, attitudes, or personalities
Organizational Conflict

 A process that occurs

when a person or group
believes that others have
or will take action that is
at odds with their own
goals and interests.
Organizational Sources of Conflict

Group Differences in
Identification Power, Status,
Culture

Conflict

Competition over Ambiguity over

Scarce Resources Jurisdiction
Interpersonal Causes of Conflict

Faulty Faulty
Attribution Communication

Conflict

Competitive
Reward Personal
Systems Characteristics
Costs & Benefits of Conflict

 Costs of Conflict  Benefits of Conflict

 Negativeemotions  Discussion of
and stress problems
 Stereotyping  Basis for change
 Faulty
decision  Increase in
making motivation and
loyalty
Managing Conflict

 Bargaining & Negotiation -- the process in which the parties in dispute

make offers and counter offers
 Mediation and Arbitration -- third party intervention
 Superordinate Goals -- commonality is seen in goals and the solution is
greater than either parties’ initial goal
Aspects of Bargaining

 Framing the issue

 Task orientation
 Emotional orientation
 Cooperative orientation
 Orientation strategy
 Win -- lose
 Win -- win
Aspects of Mediation

 Enlarging the pie

 Logrolling
 Cost cutting
 Bridging
Stress

 A pattern of behavioral, emotional, and physiological reactions that occur

in response to demanding events (stressors)
The Process of Stress

Physiological
Organizational symptoms
Factors

Experienced Psychological
Stress Symptoms

Behavioral
Individual Symptoms
Factors
Stress Factors

 Organizational  Individual
 Demanding Jobs  Stressful life events
 Competing demands  Daily stress
 Role ambiguity  Personality
 Job responsibility
 Perception
 Isolation
 Unpleasant working
conditions
Consequences of Stress

 Physiological Symptoms
 Headaches, High blood pressure, Heart disease
 Psychological Symptoms
 Anxiety, Depression, Burnout, Callousness
 Behavioral Symptoms
 Productivity loss
 Withdrawal
Managing Stress

 Personal approaches
 Lifestyle, Physiological, Cognitive
 Organizational approaches
 Job redesign
 Social support
 Family friendly policies
 Wellness and EAP Programs
Backwards and Forwards.


Summing up. Today we looked at two side
of conflict: the harmful and the beneficial;
causes and ways to manage conflict, how
stress can arise from conflict,
organizational and individual factors in
stress, and its resolution.
 Looking ahead:. What pushes organizations
to change, what are the sources of
resistance? Next time.
Negotiation
Negotiation
A process in which two or more parties exchange goods
or services and attempt to agree on the exchange rate
for them.

BATNA
The Best Alternative To a
Negotiated Agreement; the
lowest acceptable value
(outcome) to an individual for
a negotiated agreement
Bargaining Strategies
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
Distributive versus Integrative
Bargaining
Bargaining Distributive Integrative
Characteristic Bargaining Bargaining

Goal Get as much of pie Expand the pie

as possible
Motivation Win-Lose Win-Win
Focus Positions Interests
Information Low High
Sharing

Duration of Short term Long term

relationships
Staking Out the Bargaining Zone
 The Negotiation
Process

BATNA
The Best Alternative To a
Negotiated Agreement; the
lowest acceptable value
(outcome) to an individual for
a negotiated agreement
Issues in Negotiation
 The Role of Mood and Personality Traits in Negotiation
 Positive moods positively affect negotiations
 Traits do not appear to have a significantly direct effect on the outcomes of either bargaining or
negotiating processes (except extraversion, which is bad for negotiation effectiveness)
 Gender Differences in Negotiations
 Women negotiate no differently from men, although men apparently negotiate slightly better
outcomes
 Men and women with similar power bases use the same negotiating styles
 Women’s attitudes toward negotiation and their success as negotiators are less favorable than men’s
Why American Managers Might Have Trouble in
Cross-Cultural Negotiations
Italians, Germans, and French don’t soften up executives with
praise before they criticize. Americans do, and to many
Europeans this seems manipulative. Israelis, accustomed to fast-
paced meetings, have no patience for American small talk.
British executives often complain that their U.S. counterparts
chatter too much. Indian executives are used to interrupting one
another. When Americans listen without asking for clarification or
posing questions, Indians can feel the Americans aren’t paying
attention.
Americans often mix their business and personal lives. They think
nothing, for instance, about asking a colleague a question like,
“How was your weekend?” In many cultures such a question is
seen as intrusive because business and private lives are totally
compartmentalized.
Third-Party Negotiations
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.
Third-Party Negotiations (cont’d)
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
Use Competition

 When quick, decisive action is vital (in emergencies); on important issues

 Where unpopular actions need implementing (in cost cutting, enforcing
unpopular rules, discipline)
 On issues vital to the organization’s welfare
 When you know you’re right
 Against people who take advantage of noncompetitive behavior
Use Collaboration
 To find an integrative solution when both sets of concerns are too important to be
compromised
 When your objective is to learn
 To merge insights from people with different perspectives
 To gain commitment by incorporating concerns into a consensus
 To work through feelings that have interfered with a relationship
Use Avoidance
 When an issue is trivial, or more important issues are pressing
 When you perceive no chance of satisfying your concerns
 When potential disruption outweighs the benefits of resolution
 To let people cool down and regain perspective
 When gathering information supersedes immediate decision
 When others can resolve the conflict effectively
 When issues seem tangential or symptomatic of other issues
Use Accommodation
 When you find you’re wrong and to allow a better position to be heard
 To learn, and to show your reasonableness
 When issues are more important to others than to yourself and to satisfy others and maintain
cooperation
 To build social credits for later issues
 To minimize loss when outmatched and losing
 When harmony and stability are especially important
 To allow employees to develop by learning from mistakes
Use Compromise

 When goals are important but not worth the effort of potential disruption of
more assertive approaches
 When opponents with equal power are committed to mutually exclusive goals
 To achieve temporary settlements to complex issues
 To arrive at expedient solutions under time pressure
 As a backup when collaboration or competition is unsuccessful
Negotiation

 Negotiation
 Parties to a conflict try to come up with a solution acceptable to themselves by
considering various alternative ways to allocate resources to each other

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Negotiation
 Third-party negotiator
 an impartial individual with expertise in handling conflicts
 helps parties in conflict reach an acceptable solution

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Third-party Negotiators
 Mediators
 facilitates negotiations but no authority to impose a solution
 Arbitrator
 can impose what he thinks is a fair solution to a conflict that both parties
are obligated to abide by

17-200
Distributive Negotiation

 Distributive negotiation
 Parties perceive that they have a “fixed pie” of resources that they need to divide
 Take a competitive adversarial stance
 See no need to interact in the future
 Do not care if their interpersonal relationship is damaged by their competitive
negotiation

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Integrative Bargaining

 Integrative bargaining
 Parties perceive that they might be able to increase the resource pie by trying to
come up with a creative solution to the conflict
 View the conflict as a win-win situation in which both parties can gain
 Handled through collaboration or compromise

17-202
Strategies to Encourage
Integrative Bargaining
 Emphasizing superordinate goals
 goals that both parties agree to regardless of the source of their conflict
 Focusing on the problem, not the people
 Focusing on interests, not demands
 Creating new options for joint gain
 Focusing on what is fair

17-203
Organizational Politics
 Organizational Politics
 The activities managers engage in to increase their power and to use power
effectively to achieve their goals or overcome resistance or opposition.

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Organizational Politics
 Political strategies
 Specific tactics used to increase power and use it effectively to influence
and gain the support of other people while overcoming resistance

17-205
The Importance of Organizational
Politics Politics

 Can be viewed negatively when managers act in self-interested ways for
their own benefit.
 Is also a positive force that can bring about needed change when political
activity allows a manager to gain support for needed changes that will
advance the organization.

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 Political
Strategies
for
Increasing
Power

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Figure 17.4
Political Strategies for Gaining and
Maintaining Power
Strategies
Controlling Uncertainty Reduce uncertainty for others in the firm

Being Irreplaceable Develop valuable special knowledge or

skills

Being in a Central Have decision-making control over the

Position firm’s crucial activities and resources

Generating Resources Hire skilled people or find financing when

it is needed

Building Alliances Develop mutually beneficial relations

with others inside and outside the
organization

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 Political
Strategies
for
Exercising
Power

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Figure 17.5
Strategies for Exercising Power
Strategies
Relying on Objective Providing impartial information causes
Information others to feel the manager’s course of
action is correct.

Bringing in an Outside Using an expert’s opinion to lend

Expert credibility to manager’s proposal

Controlling the Agenda Influencing those issues included (and

those dropped) from the decision
process.

Making Everyone a Making sure that everyone whose

Winner support is needed benefits personally
from providing that support.

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