Chapter 11 Conflict and negotiation in the workplace
- Slides: 33
Chapter 11 Conflict and negotiation in the workplace
Learning Objectives 11. 1 Define conflict and debate the positive and negative consequences of conflict in the workplace 11. 2 Create a diagram of the conflict process model and identify six structural sources of conflict in organisations 11. 3 Distinguish task from relationship conflict and describe three conflict frames and their consequences 11. 4 Outline the five strategic approaches to conflict handling and discuss the circumstances in which each would be most appropriate 11. 5 Outline the strategies that skilled negotiators use to claim value and create value in negotiations 11. 6 Compare and contrast the three types of third-party dispute resolution 11. 7 Apply the seven approaches that organisations can take to reduce dysfunctional conflicts Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -2
Conflict and Negotiations at Qantas Industrial actions, fleet grounding and urgent government intervention led Qantas to negotiate and settle with employees. But has Qantas won the battle only to lose the war? Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -3
Conflict Defined The process in which one party perceives that its interests are being opposed or negatively affected by another party Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -4
Is Conflict Good or Bad? : Pre-1970 s View – Undermined relations – Wasted human energy – More job dissatisfaction, turnover, stress – Less productivity, information sharing Good Conflict outcomes • Historically, experts viewed conflict as dysfunctional 0 Bad Low Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e Level of conflict High 11 -5
Is Conflict Good or Bad? : 1970 s to 1990 s View – Energises debate – Reexamines assumptions – Improves responsiveness to external environment – Increases team cohesion Good Conflict outcomes • 1970 s to 1990 s—belief in an optimal level of conflict • Some level of conflict is good because it: Optimal conflict 0 Bad Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e Low Level of conflict High 11 -6
The Conflict Process Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -7
Task vs Relationship Conflict • Task conflict: conflict due to disagreements about how a task should be accomplished • Relationship conflict: conflict due to differences in personal values, individuals’ styles, personality • Team satisfaction and performance decrease as either task or relationship conflict increases • Difficulty in separating task and relationship conflict Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -8
Interests vs Rights-based Frame • Interests-based frame – Focuses on issue (hard on the problem, soft on the person) – Resolves differences through problem solving discussion • Rights-based and power-based frames – Focuses on personal rights or relative power – Low consideration for other party – Resolves differences through threats to protect rights – Tends to generate relationship conflict and conflict escalation Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -9
Structural Sources of Conflict Incompatible goals • One party’s goals perceived to interfere with other’s goals Differentiation • Different values/beliefs • Explains cross-cultural and generational conflict Interdependence • Conflict increases with interdependence • Parties more likely to interfere with each other Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -10
Structural Sources of Conflict continued Scarce resources • Motivates competition for the resource Ambiguous rules • Create uncertainty, threaten goals • Without rules, people rely on politics Communication problems • Increase stereotyping • Reduce motivation to communicate • Escalate conflict when arrogant Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -11
Individual Differences in Conflict • Emotional intelligence – Regulates emotions better, reducing hostile responses – View other’s hostility as information, not personal attack • Personal goals and priorities – Influence best conflict handling style • Conflict orientation – Win-win orientation—belief that parties will find a mutually beneficial solution – Win-lose orientation—belief that one party’s gain is the other’s loss (i. e. fixed pie) Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -12
Five Conflict Handling Styles Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -13
Conflict Handling Contingencies • Problem solving – Best when: § Interests are not perfectly opposing § Parties have trust/openness § Issues are complex – Problem: other party takes advantage of information • Forcing – Best when: § You have a deep conviction about your position § Quick resolution required § Other party would take advantage of cooperation – Problems: relationship conflict, long-term relations Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -14
Conflict Handling Contingencies continued • Avoiding – Best when: § Conflict is emotionally charged (relationship conflict) § Conflict resolution cost is higher than benefits – Problems: doesn’t resolve conflict, frustration • Yielding – Best when: § Other party has much more power § Issue is much less important to you than other party § Value/logic of your position is imperfect – Problem: increases others’ expectations; imperfect solution Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -15
Conflict Handling Contingencies continued • Compromising – Best when: § Parties have equal power § Quick solution is required § Parties lack trust/openness – Problem: sub-optimal solution where mutual gains are possible Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -16
Resolving Conflict Through Negotiation • Negotiation: conflicting parties attempt to resolve their divergent goals by redefining the terms of their interdependence • Need to consider desired outcomes, tactics, deal design and the scope of the negotiation Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -17
Negotiating Fundamentals • Setting Limits –Target point – Resistance point • Assessing Power – Consider alternatives – Skills Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -18
Creating and Claiming Value The goal of value creation is to ensure that both negotiators obtain the best possible outcomes Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e Managing the Deal Managing Information Managing the Process Beyond the Deal 11 -19
Managing the Deal • • Information Skills Concessions Strategies – Multi-issue proposals – Conceding on low-value items while getting concessions on high-value items Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -20
Managing Information • Small number of strong arguments • Understand the other negotiator’s needs • Investigative approach to negotiations Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -21
Managing the Process • Tactics: – Delaying or stalling the negotiation – Setting deadlines • Risk: negotiation turning into an escalating cycle of attack and counterattack • Ignore personal attacks and refocus on the substantive problem Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -22
Beyond the Deal • Considering other aspects in addition to best possible deal: – – – Implementation Social capital Relationship building Reputation Ethical negotiation Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -23
Negotiating Ethically Avoid: • Misrepresentation • False promises • Attacking an opponent’s network • Inappropriate information gathering • Strategic misrepresentation of positive or negative emotions Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -24
Culture and Conflict • Individualism/collectivism – Focus on harmony versus personal goals • Power distance – High power distance people signal status in conflicts • High/low context style – Low context people communicate more directly, using logical arguments Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -25
Gender and Conflict • During conflict, women (compared to men) tend to: – – Focus more on relationship consequences Set lower targets Use fewer alternatives to improve their outcomes See the process as necessarily competitive • Women have better outcomes in conflict when parties approach the disagreement collaboratively Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -26
Resolving Conflict Through Third-party Intervention Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -27
Choosing the Best Third-Party Strategy • Managers prefer inquisitional strategy, but this is not usually the best approach • Mediation potentially offers the highest satisfaction with process and outcomes • Use arbitration when mediation fails Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -28
Organisational Approaches to Conflict Resolution • Emphasising superordinate goals – Emphasise common objective rather than conflicting sub-goals – Reduce goal incompatibility and differentiation • Reducing values differences – Remove sources of different values and beliefs § e. g. move employees around to different jobs Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -29
Organisational Approaches to Conflict Resolution continued • Improving communication/understanding – Employees understand appreciate each other’s views through communication – Relates to contact hypothesis – Warning: apply communication/understanding after reducing differentiation • Reducing interdependence – Divide shared resources – Combine tasks – Use buffers Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -30
Organisational Approaches to Conflict Resolution continued • Increasing resources – • Clarifying rules and procedures – – • Clarify resource distribution Change interdependence Establishing a positive climate – – • Duplicate resources Norms that encourage openness Norms that discourage negative emotions and encourage positive diffusion tactics (e. g. humour) Alternative dispute resolution Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -31
Summary • Moderate conflict can be effective • The conflict process model begins with the five structural sources of conflict • The current perspective on conflict involves distinguishing task from relationship conflict • There are several conflict-handling styles: problem solving, forcing, avoiding, yielding and compromising. People who use problem solving have a win–win orientation • Effective negotiators need to engage in both collaboration and competition in order to obtain outcomes Copyright © 2013 Mc. Graw-Hill Australia Pty Ltd Mc. Shane, Olekalns, Travaglione, Organisational Behaviour, 4 e 11 -32
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