Conflict and

Negotiation

Conflicts in OrganizationsSpeaker: Ferilynn Marcelino

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CONFLICT occurs whenever disagreements exist in a social situation over issues of substance, or whenever emotional antagonisms create friction between individuals or groups

Types of Conflict SUBSTANTIVE CONFLICT- fundamental

disagreement over ends or goals to be pursued and the means for their accomplishment

EMOTIONAL CONFLICT “Clash of Personalities” involves interpersonal difficulties that

arise over feelings of anger, mistrust, dislike, fear, resentment and the like

Levels of Conflict1. INTERPERSONAL CONFLICT - occurs

between two or more individuals who are in opposition to one another

It may be: Substantive Emotional Both

2. INTERPERSONAL CONFLICT - tension experienced within the individual due to actual or perceived pressures from incompatible goals or expectations

Approach-Approach Conflict – a person must choose between two positive and equally attractive alternatives

Avoidance-Avoidance Conflict – a person must choose between two negative and equally unattractive alternatives

Approach-Avoidance Conflict – a person must decide to do something that has both positive and negative consequences

3. Intergroup Conflict – occurs between teams, perhaps ones competing for scarce resources or rewards, and perhaps ones whose members have emotional problems with one another

4. Inter-organizational Conflict – most commonly thought of in terms of the competition and rivalry that characterizes firms operating in the same markets

Functional and Dysfunctional Conflict FUNCTIONAL CONFLICT

- Constructive Conflict- results in benefits to individuals,

the team, or the organization

DYSFUNCTIONAL CONFLICT-Destructive Conflict- works to the disadvantage of an

individual or team

Culture and Conflict

People who are not able or willing to recognize and respect cultural

differences can cause dysfunctional conflicts in multicultural teams. On the

other hand, members with cultural sensitivity can help the team to unlock

its performance advantages.

Conflict Management

Speaker:Miguiel De Alva

Conflict management is defined as “the opportunity to improve situations and strengthen relationships” (BCS, 2004).

Stages of ConflictAntecedent ConditionsSet the conditions for conflict

Perceived ConflictSubstantive or emotional difference are sensed

Felt ConflictTension creates motivation to act

Manifest ConflictAddressed by conflict resolution or suppression

Hierarchical Causes of Conflict

Vertical Conflict occurs between levels and commonly involves supervisor-subordinate and team leader-team member disagreements over resources, goals, deadlines or performance results.

Horizontal Conflict - occurs between persons or groups working at the same hierarchical level

Line-staff conflict involves disagreements between line and staff personnel over who has authority and control over decisions on matters such as budgets, technology, and human resource practices.

Role Ambiguity Conflicts occurs when the communication of task expectations is unclear or upsetting in some way, such as team member receiving different expectations from the leader and other members.

Contextual Causes of Conflict Task and workflow interdependence cause disputes and open disagreements

among people and teams that are required to cooperate to meet challenging

goals

Conflict potential is especially great when interdependence is high-that is, when a

person or group must rely on task for contributions from one or more others to

achieve its goals.

Conflict escalates with structural differentiation *

Domain ambiguities develop conflict when individuals or teams lack adequate

task direction or goals and misunderstand such things as customer jurisdiction or

scope of authority

Contextual Causes of Conflict Actual or perceived resource scarcity

can foster destructive conflict. Power or value asymmetries create

conflict when interdependent people or teams differ substantially from one another in status and influence or in values

Indirect Conflict Management Strategies1. Managed interdependence

a.) decoupling – taking action to eliminate

or reduce the required contact between conflicting parties

b.) buffering – used when the inputs of one team are the outputs of another.

-- build an inventory between the teams so that any output showdown or

excess is absorbed by the inventory and does not directly pressure that target group

2. Appeals to Common Goals

Focus the attention of conflicting individuals and teams on one mutually desirable conclusion.

Indirect Conflict Management Strategies

3. Upward Referrals

• Uses the chain of command for conflict resolution

• Problems are moved up from the level of conflicting individuals or teams for more senior managers to address

4. Altering Scripts and Myths

In some situations, conflict is superficially managed by scripts, or behavioral routines, that are part of the organization’s culture. The scripts become rituals that allow the conflicting parties to vent their frustrations and to recognize that they are mutually dependent on one another.

Direct Conflict Management Strategies

Direct conflict management approaches are based on the relative emphasis that a person places on assertiveness and cooperativeness. Assertiveness

Attempting to satisfy one’s own concerns. Unassertive versus assertive.

Cooperativeness Attempting to satisfy the other party’s concern. Uncooperative versus cooperative.

Thomas-Kilmann Conflict Modes

Lose-Lose Strategies Lose-lose conflict occurs when nobody

really gets what he or she wants in a conflict situation.

The underlying reasons for the conflict remain unaffected, and a similar conflict is likely to occur in the future.

Lose-lose outcomes are likely when the conflict management strategies involve little or no assertiveness.

Avoidance No one acts assertively and everyone simply

pretends the conflict doesn’t exist and hopes it will go away

Accommodation/smoothing Involves playing down differences among

the conflicting parties and highlighting similarities and areas of agreement

Compromise Occurs when each party gives up something of

value to the other

Win-Lose Strategies Win-lose conflict occurs when one party

achieves its desires at the expense of and to the exclusion of the other party’s desires.

This is a high-assertiveness and low-cooperativeness situation.

Competition Seeks victory by force, superior skill, or

domination Authoritative command

Uses formal authority to end conflict

Win-Win Strategies Win-win conflict is achieved by a blend

of both high cooperativeness and high assertiveness.

Collaboration and problem solving They involve recognition by all conflicting

parties that something is wrong and needs attention.

It stresses gathering and evaluating information in solving disputes and making choices.

All relevant issues are raised and openly discussed.

Negotiation

Negotiation is the process of making joint decisions when the parties involved have different preferences.

Workplace disagreements arise over a variety of matters.

Negotiation Goals and Outcomes Substance goals

Deal with outcomes that relate to the content issues under negotiation

Relationship goals Deal with outcomes that relate to how well

people involved in the negotiation and any constituencies they may represent are able to work with one another once the process is concluded

Effective Negotiation occurs when substance issues are resolved and working relationships are maintained or even improved. Criteria for an effective negotiation

Quality Harmony Efficiency

Ethical Aspects of Negotiation Managers and others involved in

negotiations should strive for high ethical standards of conduct.

The negotiating parties should avoid being side tracked by self-interests, thereby being tempted to pursue unethical actions.

Organizational Settings for Negotiation Two-party negotiation

Manager negotiates directly with one other person Group negotiation

Manager is part of a team or group whose members are negotiating to arrive at a common decision

Intergroup negotiation Manager is part of a group that is negotiating with another

group to arrive at a decision regarding a problem or situation affecting both

Constituency negotiation Each party represents a broader constituency—for example,

representatives of management and labor negotiating a collective bargaining agreement.

Negotiation Strategies

Distributive negotiation-focuses on “positions” declared or staked out by conflicting parties.-Each party tries to claim certain portions of the available pie whose overall size is considered fix.-Win-Lose Bargaining (I win, you lose)

Approaches to Distributive negotiation

“Hard” distributive negotiation- when each party holds out to get his own way.

“Soft” distributive negotiation- when one party or both parties make concessions just to get things over with.

Bargaining zone- the range between one party’s minimum reservation point and the other party’s maximum reservation point.

Integrative negotiation- Sometimes called principle negotiation- Focuses on the “merits” of the issue- Everyone involved tries to enlarge the

available pie and find mutually agreed-upon ways of distributing it rather than to stake claims to certain portions of it.

- More “Win-win” oriented

How to Gain Integrative Agreements Altitudinal foundations1. Willingness to trust the other party2. Willingness to share information with

the other party3. Willingness to ask concrete questions

of the other party

Behavioral Foundations1. Separate people from the problem.2. Don’t allow emotional considerations to affect

the negotiation.3. Focus on the interests rather than positions.4. Avoid premature judgments.5. Keep the identification of alternatives separate

from their evaluation.6. Judge possible agreements by set criteria or

standard.

Information Foundations- Each party should become familiar with the “best alternative to a negotiated agreement” or BATNA.- Each party must know what he or she will do if an agreement cannot be reached.

Common Negotiation Pitfalls

Fixed pie mythEscalating

commitmentOver

confidenceToo much

telling

Too little listening

Third-Party Roles in NegotiationIn a process called alternative dispute

resolution, a neutral third party works with persons involved in a negotiation to help them resolve impasses and settle disputes.

Two primary forms:1. arbitration- the neutral third party acts as

a “judge” and has the power to issue a decision that is binding on all parties.

2. Mediation- the neutral third party tries to engage the parties in a negotiated solution through persuasion and rational argument.