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Page 1: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
Page 2: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-2

Conflict and Negotiation: Why Conflict Arises and

What to Do About It

Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinOrganizational Behavior, Core Concepts

8Organizational Behavior

core concepts

Page 3: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-3

Learning Objectives

• Distinguish between functional and dysfunctional conflict, and identify desirable outcomes of conflict

• Define personality conflicts, and explain how they should be managed

• Discuss ways to manage intergroup conflict, including in-group thinking and cross-cultural conflict

Page 4: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-4

Learning Objectives

• Describe methods for promoting functional conflict and styles of handling conflict

• Identify and describe techniques for alternative dispute resolution

• Summarize basic approaches to negotiation, giving applications

Page 5: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-5

A Modern View of Conflict

• Conflict– one party perceives

its interests are being opposed or set back by another party

Page 6: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-6

Functional versus Dysfunctional Conflict• Functional conflict

– serves organization’s interests.

• Dysfunctional conflict – threatens organization’s interests.

Page 7: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-7

Antecedents of Conflict

• Incompatible personalities or value systems.

• Overlapping or unclear job boundaries.

• Competition for limited resources.

• Interdepartment/intergroup competition.

• Inadequate communication.

• Interdependent tasks.

• Organizational complexity

Page 8: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-8

Antecedents of Conflict

• Unreasonable or unclear policies, standards, or rules.

• Unreasonable deadlines or extreme time pressure.

• Collective decision making

• Decision making by consensus.

• Unmet expectations.

• Unresolved or suppressed conflict.

Page 9: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-9

Why People Avoid Conflict

• Harm• Rejection• Loss of relationship• Anger• Being seen as selfish• Saying the wrong

thing

• Failing• Hurting someone

else• Getting what you

want• Intimacy

Page 10: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-10

The Conflict Iceberg

Page 11: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-11

Desired Outcomes of Conflict

1. Agreement

2. Stronger relationships

3. Learning

Page 12: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-12

Major Forms of Conflict

• Personality conflict

• Intergroup conflict

• Cross-cultural conflict

Page 13: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-13

Major Forms of Conflict

• Personality conflict – interpersonal opposition driven by personal

dislike or disagreement.

Page 14: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-14

How to Deal With Personality Conflicts

Page 15: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-15

Intergroup Conflict

• Intergroup conflict – conflict among work groups, teams, and

departments

• Too much cohesiveness can breed groupthink because a desire to get along pushes aside critical thinking

Page 16: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-16

Handling Intergroup Conflict

• Contact hypothesis – the more the members of different groups

interact, the less intergroup conflict they will experience

• Managers should identify and root out specific negative linkages between groups

Page 17: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-17

Handling Intergroup Conflict

Group members are likelier to perceive intergroup heroes when:

1. Conflict within the group is high

2. Negative interactions occur between groups or members of groups

3. Influential third parties engage in negative gossip about the other group

Page 18: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-18

How to BuildCross-Cultural Relationships• Be a good listener • Be sensitive to the needs of other • Be cooperative, rather than overly competitive • Advocate inclusive (participative) leadership • Compromise rather than dominate • Build rapport through conversations • Be compassionate and understanding • Avoid conflict by emphasizing harmony

• Nurture others (develop and mentor)

Page 19: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-19

Programming Functional Conflict

• Programmed Conflict – encourages different opinions without

protecting management’s personal feelings.

Page 20: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-20

Programming Functional Conflict

• Devil’s advocacy – assigning someone the role of critic.

• Dialectic method – fostering a debate of opposing viewpoints to

better understand an issue.

Page 21: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-21

Five Conflict Handling Styles

Figure 8-3

Page 22: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-22

Question?

Which style for handling conflict relies on formal authority to force compliance?

A. Integrating

B. Obliging

C. Dominating

D. Avoiding

Page 23: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-23

Alternative Styles for Handling Dysfunctional Conflict

• Integrating – interested parties confront the issue and

cooperatively identify the problem, generate and weigh alternative solutions, and select a solution

• Appropriate for complex issues plagued by misunderstanding

Page 24: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-24

Alternative Styles for Handling Dysfunctional Conflict

• Obliging (Smoothing) – involves playing down differences while

emphasizing commonalities

• Appropriate when it is possible to get something in return

Page 25: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-25

Alternative Styles for Handling Dysfunctional Conflict

• Dominating (Forcing) – relies on formal authority to force

compliance

• Appropriate when an unpopular solution must be implemented

Page 26: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-26

Alternative Styles for Handling Dysfunctional Conflict

• Avoiding – involves either passive withdrawal from the

problem or active suppression of the issue

• Appropriate for trivial issues

Page 27: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-27

Conflict Monitoring

• Read an article on Conflict monitoring

Page 28: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-28

Alternative Styles for Handling Dysfunctional Conflict

• Compromising – give-and-take approach involves moderate

concern for both self and others

• Appropriate when parties have opposite goals

Page 29: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-29

Question?

What is the process of avoiding costly lawsuits by resolving conflicts informally or through arbitration?

A. Distributive negotiation

B. Integrative negotiation

C. Alternative Dispute Resolution

D. Added-Value Negotiation

Page 30: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-30

Third Party Interventions: Alternative Dispute Resolution

• Alternative Dispute Resolution– avoiding costly lawsuits by resolving

conflicts informally or through mediation or arbitration

Page 31: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-31

Alternative Dispute Resolution

• Facilitation

• Conciliation

• Peer review

• Ombudsman

• Mediation

• Arbitration

Page 32: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-32

Negotiation

• Negotiation– give-and-take process between conflicting

independent parties.

• Two types:– Distributive– Integrative

Page 33: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-33

Added-Value Negotiation

• Added-Value Negotiation– cooperatively developing multiple-deal

packages while building a long-term relationship

Page 34: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-34

Added-Value Negotiation

• Clarify interests

• Identify options

• Design alternative deal packages

• Select a deal

• Perfect the deal

Page 35: 8-2 Conflict and Negotiation: Why Conflict Arises and What to Do About It Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

8-35

How To Negotiate Your Pay and Benefits1. Know the going rate

2. Don’t fudge your past compensation

3. Present cold, hard proof of your value

4. Let the other party name a figure first

5. Don’t nickel-and-dime

6. Avoid extravagant extras

7. Seek incentives and practical perks


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