Robbins & Judge

Organizational Behavior
13th Edition

Conflict and Negotiation
Bob Stretch
Southwestern College

© 2009 Prentice-Hall Inc. All rights reserved.


Chapter Learning Objectives
 After studying this chapter, you should be able to:
– Define conflict. – Differentiate between the traditional, human relations, 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.

© 2009 Prentice-Hall Inc. All rights reserved.


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 in Conflict Thought  Traditional View of Conflict – The belief that all conflict is harmful and must be avoided – Prevalent view in the 1930s-1940s  Conflict resulted from: – Poor communication – Lack of openness – Failure to respond to employee needs © 2009 Prentice-Hall Inc. 15-4 . All rights reserved.

15-5 . All rights reserved.Continued Transitions in Conflict Thought  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  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 © 2009 Prentice-Hall Inc.

15-6 . All rights reserved.Forms of Interactionist Conflict © 2009 Prentice-Hall Inc.

15-7 .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 © 2009 Prentice-Hall Inc. All rights reserved.

Sources of Conflict Different goals Different goals & time horizons & time horizons Status Status inconsistency inconsistency Overlapping Overlapping Authority Authority Conflict Conflict Scarce Scarce Resources Resources Task Task Interdependency Interdependency Incompatible Incompatible evaluation & evaluation & Reward Reward .

 Leads to conflict between the managers and workers.Sources of Conflict 1. Overlapping authority: two or more managers claim authority for the same activities. 1.  Production focuses on efficiency. Task Interdependencies: one member of a group fails to finish a task that another depends on.  This makes the worker that is waiting fall behind. Marketing on sales. . Different goals and time horizons: different groups have differing goals. 1.

 Groups rewarded for low cost but firm needs higher service. Status inconsistencies: some groups have higher status than others. managers can fight over allocations.  When all resources are scarce. Scarce Resources: managers can conflict over allocation of resources. but are told to do something different.  Leads to managers feeling others are favored. Incompatible Evaluation or reward system: workers are evaluated for one thing. . 4.4. 4.

 Ambiguous jurisdictions  Conflict of interest  Communication barriers  Dependence on one party  Differentiation in organization  Association of the parties  Behaviour regulation  Performance expectations  Competition for limited resources  Lack of cooperation  Unresolved prior conflicts CONDITIONS LEADING TO CONFLICT SITUATIONS IN ORGANIZATIONS .

The Conflict Process  We will focus on each step in a moment… 15-12 .

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 © 2009 Prentice-Hall Inc. 15-13 . All rights reserved. misunderstandings.Stage I: Potential Opposition or Incompatibility  Communication – Semantic difficulties.

or hostility 15-14 . Conflict is defined • Perceived Conflict – Awareness by one or more parties of the existence of conditions that create opportunities for conflict to arise 2.Stage II: Cognition and Personalization  Important stage for two reasons: 1. Emotions are expressed that have a strong impact on the eventual outcome • Felt Conflict – Emotional involvement in a conflict creating anxiety. tenseness. frustration.

All rights reserved.Stage III: Intentions  Intentions – Decisions to act in a given way – Note: behavior does not always accurate reflect intent  Dimensions of conflict-handling intentions: – Cooperativeness • Attempting to satisfy the other party’s concerns – Assertiveness • Attempting to satisfy one’s own concerns E X H I B I T 15-2 © 2009 Prentice-Hall Inc. 15-15 .

.  Depending on people’s intentions in a given situation. the behaviour of conflicting parties can range from full cooperation to complete confrontation.  Two intentions determining the type of conflicthandling behaviour are “assertiveness” and “cooperation”.CONFLICT MANAGEMENT  It refers to interventions that alter the level and form of conflict in ways that maximize its benefits and minimize its dysfunctional consequences.  Assertiveness refers to an attempt to confront the other party and Co-operation refers to an attempt to find an agreeable solution.

Conflict Management Styles High Assertiveness (Motivation to satisfy one’s own interest) Low Assertiveness Concern for Self Concern for Others (motivation to satisfy Low Other party’s Cooperation Interest) High Cooperation .

Conflict Management Strategies .

(LOSE-WIN)  This style involves making unilateral concessions and unconditional promises. There is a menu of strategies we can choose from when in conflict situations: 1. as well as offering help with no expectation of reciprocal help. Accommodating – It involves giving in completely to the other side’s wishes. People use formal authority or other power to satisfy their concerns without regard to the concerns of the party that they are in conflict with. (WIN-LOSE) 2. or at least cooperating with little or no attention to their own interest. Conflict Management Strategies . Competing/Forcing – Forcing tries to win the conflict at the other’s expense.

Not paying attention to the conflict and not taking any action to resolve it.  Information sharing is an important feature of this style because for both parties collaborate to identify common ground and potential solutions that satisfy both (or all) of them. but completely satisfactory to neither. (WIN-WIN). 5. It represents a low concern for both self and the other party.Attempting to resolve a conflict by identifying a solution that is partially satisfactory to both parties. (WINSOME-LOSESOME). in other words. .3. avoiders try to suppress thinking about the conflict. Avoiding . Collaborating – Cooperating with the other party to understand their concerns and expressing their own concerns in an effort to find a mutually and completely satisfactory solution. (LOSE-LOSE) 4. Compromising .

15-21 .Stage IV: Behavior  Conflict Management – The use of resolution and stimulation techniques to achieve the desired level of conflict  Conflict-Intensity Continuum E X H I B I T 15-3 © 2009 Prentice-Hall Inc. All rights reserved.

15-22 . All rights reserved.Conflict Resolution Techniques Problem solving Superordinate goals Expansion of resources Avoidance Smoothing Compromise Authoritative command Altering the human variable Altering the structural variables – Communication – – – – – – – – – – Bringing in outsiders – Restructuring the organization – Appointing a devil’s advocate E X H I B I T 15-4 © 2009 Prentice-Hall Inc.

. All rights reserved.Stage V: Outcomes Functional – 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 Dysfunctional – Development of discontent – Reduced group effectiveness – Retarded communication – Reduced group cohesiveness – Infighting among group members overcomes group goals Creating Functional Conflict – Reward dissent and punish conflict avoiders 15-23 © 2009 Prentice-Hall Inc.

15-24 . a win-lose situation – Integrative Bargaining • Negotiation that seeks one or more settlements that can create a win-win solution © 2009 Prentice-Hall Inc.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. All rights reserved.

1985). Distributive Bargaining Get all the pie you can Win-Lose Positions Low Short-Term Integrative Bargaining Expand the pie Win-Win Interests High Long-Term Integrative Distributive E X H I B I T 15-5 © 2009 Prentice-Hall Inc.Distributive versus Integrative Bargaining Bargaining Characteristic Goal Motivation Focus Information Sharing Duration of Relationships Source: Based on R. 280. p. A. Lewicki and J. Litterer. All rights reserved. IL: Irwin. J. Negotiation (Homewood. 15-25 .

Bargaining Tactics and the Bargaining Zone  Distributive Tactics – Make an aggressive first offer – Reveal a deadline  Integrative Tactics – Bargain in teams – Put more issues on the table – Don’t compromise 15-26 .

The Negotiation Process  BATNA – The Best Alternative To a Negotiated Agreement – The lowest acceptable value (outcome) to an individual for a negotiated agreement  The “Bottom Line” for negotiations E X H I B I T 15-7 © 2009 Prentice-Hall Inc. 15-27 . All rights reserved.

Individual Differences in Negotiation Effectiveness  Personality Traits – Extroverts and agreeable people weaker at distributive negotiation – disagreeable introvert is 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 – Women and men take on gender stereotypes in negotiations: tender and tough – Women are less likely to negotiate © 2009 Prentice-Hall Inc. 15-28 . All rights reserved.

15-29 . All rights reserved. who attempts to facilitate creative problem solving through communication and analysis © 2009 Prentice-Hall Inc. skilled in conflict management. – Conciliator • A trusted third party who provides an informal communication link between the negotiator and the opponent – Consultant • An impartial third party.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.

Arabs use emotion. and Russians used asserted ideals • Brazilians say “no” more often than Americans or Japanese © 2009 Prentice-Hall Inc. for instance: • American negotiators are more likely than Japanese bargainers to make a first offer • North Americans use facts to persuade. managers view conflict differently – U.S.S.Global Implications  Conflict and Culture – Japanese and U. All rights reserved. managers more likely to use competing tactics while Japanese managers are likely to use compromise and avoidance  Cultural Differences in Negotiations – Multiple cross-cultural studies on negotiation styles. 15-30 .

15-31 .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 15-8 © 2009 Prentice-Hall Inc. All rights reserved.