Chapter 5
Conflict Management and Negotiation
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Purpose and Overview
• Purpose– To understand conflict management and
negotiation
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Purpose and Overview
• Overview– The Importance of Conflict Management – The Causes of Conflict – Levels of Conflict – Managing Conflict – Negotiation – Managing Conflict Through Third-Party
Intervention
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The Importance of Conflict Management
• Changing Environmental Trends – Global competition– Increased diversity– Corporate restructuring– Mobile workforce
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The Causes of Conflict
• Resource Scarcity– Power, money, information, advice, praise
• Beneficial versus Detrimental Effects
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The Causes of Conflict
• Jehn’s Typology of Conflict – Task content conflict– Emotional conflict– Administrative conflict
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Levels of Conflict
• Individual Level (intrapersonal)– Approach-approach– Avoidance-avoidance– Approach-avoidance
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Levels of Conflict
• Group Level– Interpersonal conflict: between two or more
individuals – Intragroup conflict– Intergroup conflict
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Managing Conflict
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Negotiation
• Basic Concepts– Best Alternative to Negotiated Agreement
(BATNA): result of walking away from negotiation
– Reservation price– Aspiration level– Bargaining zone
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Negotiation
• The Distributive Dimension– Allocation, or distribution, of some resources– Resolving often entails compromise by both
parties – “Dividing the ‘Pie’” of resources
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Negotiation
• The Integrative Dimension – One party gains without other party losing– Mutually beneficial decisions through a
cooperative problem-solving approach– “Expanding the ‘pie’” of resources
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Negotiation
• The Mixed-Motive Nature– Balancing cooperative and competitive
behavior– “Enlarge the ‘pie’” of resources
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Negotiation
• The Role of Information Sharing – Amount of information shared affects quality
of outcomes– One party gains advantage if other party
shares more information
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Negotiation
• Compatible Issues– Parties have same preferences– Parties often do not know they have same
preferences
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Negotiation
• Multiparty Negotiations – Involve three or more parties – Characterized by complexity
• Interpersonal complexity • Issue complexity
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Negotiation
• Fairness and Ethics– Fairness norms
• Equality• Equity• Need
– Unethical behavior
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Negotiation
• Preparing to Negotiate– BATNA– Reservation price– Identify discuss topics– How many negotiators other party brings – Importance of relationship – Time constraints
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Managing Conflict Through Third-Party Intervention
• Dispute Intervention Goals– Manager’s role in dispute may depend on:
• What he or she is trying to accomplish • Constraints imposed by the situation
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Managing Conflict Through Third-Party Intervention
• Dispute Intervention Goals– Manager’s intervention strategies may be
affected by:• Importance of issues• Time pressure• Relative power of disputants• Relationships between parties • Relationships between manager and
parties
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Managing Conflict Through Third-Party Intervention
• Types of Intervention Strategies– Third party control over:
• Dispute process• Dispute outcome
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Managing Conflict Through Third-Party Intervention
• Strategies– Inquisitor– Arbitrator– Mediator