CONFLICT AND

NEGOTIATION
OPENING CASE

WHEN THE CEO OF A FAMILY FIRM GETS INTO A ROLE

CONFLICT
CONFLICT
A process that begin when party perceives that another
party has negatively affected, something that the first
party cares about.
TRADITIONAL VS CURRENT VIEW
TRADITIONAL VIEW
Conflict is avoidable
Conflict is caused by management error
in designing organisations or by trouble
makers
Conflict disrupts the organization and
prevents optimal performance
The task of the management is to
eliminate conflict
Optimal organizational performance
requires the removal of conflict
CURRENT VIEW
Conflict is inevitable
Conflict arises from any cases, including
organisational structure, unavoidable
differences in goals, differences in
perceptions and values of specialized
personnel and so on
Conflict contributes and detracts from
organizational performance in varying
degrees
The task of the management is to
manage the level of conflict
Optimal organizational performance
requires a moderate level of conflict
 THE CONFLICT PROCESS
Functional conflict

STAGE-1 STAGE-2 STAGE-3 STAGE-4

Latent conflict Perceived conflict Felt conflict Manifest conflict STAGE-5

Dysfunctional
conflict
LATENT CONFLICT
• When two or more parties need each other achieve desired
objectives, there is potential for conflict.
• Other antecedents of conflict are interdependence, different goals,
and ambiguity of responsibility.
• Latent conflict often arises when a change occurs.
• Conflict is likely to be caused by a budget cutback, a change in
personal goals or the assignment of a new project to an already
overloaded team.
PERCEIVED CONFLICT
• This is the stage at which members become aware of a problem.
• Incompatibility of needs is perceived and tension begins as the parties
begin to worry about what will happen, but no party feels that it is
being overtly threatened.
FELT CONFLICT
• At this stage parties become emotionally involved and begin to focus
on differences of opinions and opposing interests – sharpening
perceived conflict.
• Internal tensions and frustrations begin to crystalise around specific
defined issues, and people begin to build an emotional commitment
to their position.
MANIFEST CONFLICT
• At this stage parties engage in actions that help achieve own
objectives and thwart those of others.
• At the organizational level, strikes or lock outs are the result.
CONFLICT OUTCOME
• Result may be functional or dysfunctional
• If handled well, the result is functional conflict
• If mishandled, the result is dysfunctional
• It is usually easier to achieve win-win outcomes when the conflict is
recognised early before frustration and negative feelings set in.
+ve and –ve conflict
+ve -ve
Increased involvement Unresolved anger
Increased cohesion Personality clashes
Increased innovation and creativity Less self-esteem
Personal growth and change Inefficiency
Clarification of key issues Diversion of energy from work
Organizational vibrancy Wastage of resources
LEVELS OF CONFLICT
Intergroup conflict
Task interdependence
Changes within Task ambiguity Changes between
each group Goal incompatibility groups
Limited resources
Reward systems

Intra-group conflict
Disputes between
Family members

Interpersonal conflict
TA
Johari window
Stroking, life positions

Intra-personal
Conflict from
frustration
Goal & role
INTRA-PERSONAL CONFLICT
• Refers to conflict within an individual.
1. Conflict from frustration
Frustration model
Need Drive Goal
(deficiency) (deficiency (Reduction of drives and
Barrier
with direction) Fulfills deficiency)
1) Overt
2) covert
Frustration
Defence mechanisms
a) Aggression b) Withdrawal
c) Fixation d) Compromise
2. Goal conflict
Occurs when the attainment of one goal excludes the possibility of
attaining another

4 major forms of goal conflicts

• Approach-approach conflict
• Approach-avoidance conflict
• Avoidance-avoidance conflict
• Multiple approach-avoidance conflict
a. Approach-approach conflict
Fig:

Approach motive Approach motive

strength strength

Positive goal 1 x Positive goal 2

b. Approach-avoidance conflict
Fig:
Avoidance motive
strength

Approach motive
strength

Positive and x
Distance to goal
negative goal
c. Avoidance-avoidance conflict
Fig:

Avoidance Avoidance
motive strength motive strength

Negative goal 1 x
Distance to goal
Negative goal 2
d. Multiple approach-avoidance conflict
• Often we are confronted with several possibilities for action, each
having several desirable and undesirable features.

The story
 3. Role conflict
• Role conflict arise when you have too many things to do but the
resources available are too little.
INTERPERSONAL CONFLICT
• Occurs between two individuals.
1. Transactional analysis
• Analysis of the social transactions
• TA was introduced by Eric Berne
• Basic to TA is Ego states
• Social transactions

P P P P P P

S
S
A A A A A A
R R

C C C C C C

COMPLEMENTARY CROSSED ULTERIOR

2. Johari window
3. Stroking

Refers to recognition of ones presence by others

• Positive
• negative
4. Life positions
INTRAGROUP CONFLICT
•  Is a type of conflict that happens among individuals within a
team. 
•  Refers to disputes among some or all of a group’s members,
which often affect the groups performance.
INTER-GROUP CONFLICT
• Takes place when a misunderstanding arises among different
teams within an organization.
Reasons for inter-group conflict:
Task inter-dependence

Task ambiguity

Goal incompatibility
INTER-GROUP CONFLICT

limited resources

Reward systems
STRATEGIES FOR RESOLVING CONFLICT

• Remove barriers
• Cognitive dissonance
• Refuse to select either approach INTRA-PERSONAL
• Minimise and prioritise roles CONFLICT

• Develop compatibility between personal

and organisational goals
• Develop satwic gunas
• Lose-lose
• Lose-win INTER-PERSONAL
CONFLICT
• Win-win
• Developing complementary transactions
• Altering behavioural inputs
• Realising that divide they stand, united INTRA-GROUP
CONFLICT
they fall
• Problem solving
• Organisation redesign
• Superordinate goals INTER-GROUP
• Expansion of resources CONFLICT

• Avoidance
• Smoothen
Negotiation and conflict resolution
• Negotiation
Process in which two or more parties attempt to reach acceptable
agreement in a situation characterized by some level of disagreement.

Occurs in the process of conflict resolution

Include a combination of compromise, collaboration, and possibly some

coercion on vital issues.
Situational factors favouring negotiation
• Location
• Physical setting
• Time passage and deadliness
• Audience characteristics
Guidelines for effective negotiation
• Research your opponent
• Begin with a positive overture
• Address problems not personalities
• Pay little attention to initial offers
• Emphasise win-win solutions
• Create a climate of trust