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Copyright © 2017 Pearson Education, Ltd. 1 -1

Copyright © 2017 Pearson Education, Ltd. 1 -1

14 Conflict and Negotiation Copyright © 2017 Pearson Education, Ltd.

14 Conflict and Negotiation Copyright © 2017 Pearson Education, Ltd.

Learning Objectives q Describe three types of conflict and the two loci of conflict.

Learning Objectives q Describe three types of conflict and the two loci of conflict. q Outline the conflict process. q Contrast distributive and integrative bargaining. q Apply the five steps of the negotiation process. q Show individual differences influence negotiations. q Assess the roles and functions of third-party negotiations. 14 -3 Copyright © 2017 Pearson Education, Ltd.

LO 1 Three Types of Conflict and Three Loci of Conflict ØConflict: a process

LO 1 Three Types of Conflict and Three Loci of Conflict ØConflict: 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. Ø If no one is aware of a conflict, then it is generally agreed no conflict exists. Ø Also needed to begin the conflict process are opposition or incompatibility and interaction. 14 -4 Copyright © 2017 Pearson Education, Ltd.

LO 1 Three Types of Conflict and Three Loci of Conflict ØContemporary perspectives differentiate

LO 1 Three Types of Conflict and Three Loci of Conflict ØContemporary perspectives differentiate types of conflict based on their effects. Ø Functional conflict supports the goals of the group and improves its performance. Ø Conflicts that hinder group performance are dysfunctional or destructive forms of conflict. 14 -5 Copyright © 2017 Pearson Education, Ltd.

LO 1 Three Types of Conflict and Three Loci of Conflict 14 -6 Copyright

LO 1 Three Types of Conflict and Three Loci of Conflict 14 -6 Copyright © 2017 Pearson Education, Ltd.

LO 1 Three Types of Conflict and Three Loci of Conflict ØTypes of Conflict

LO 1 Three Types of Conflict and Three Loci of Conflict ØTypes of Conflict Ø Researchers have classified conflicts into three categories: ØTask conflict relates to the content and goals of the work. ØRelationship conflict focuses on interpersonal relationships. ØProcess conflict is about how the work gets done. 14 -7 Copyright © 2017 Pearson Education, Ltd.

LO 1 Three Types of Conflict and Three Loci of Conflict Ø Another way

LO 1 Three Types of Conflict and Three Loci of Conflict Ø Another way to understand conflict is to consider its locus, or where the conflict occurs. Ø There are three basic types: ØDyadic conflict is conflict between two people. ØIntragroup conflict occurs within a group or team. ØIntergroup conflict is conflict between groups or teams. 14 -8 Copyright © 2017 Pearson Education, Ltd.

LO 2 Outline the Conflict Process 14 -9 Copyright © 2017 Pearson Education, Ltd.

LO 2 Outline the Conflict Process 14 -9 Copyright © 2017 Pearson Education, Ltd.

LO 2 Outline the Conflict Process 14 -10 Copyright © 2017 Pearson Education, Ltd.

LO 2 Outline the Conflict Process 14 -10 Copyright © 2017 Pearson Education, Ltd.

LO 2 Outline the Conflict Process 14 -11 Copyright © 2017 Pearson Education, Ltd.

LO 2 Outline the Conflict Process 14 -11 Copyright © 2017 Pearson Education, Ltd.

LO 2 Outline the Conflict Process 14 -12 Copyright © 2017 Pearson Education, Ltd.

LO 2 Outline the Conflict Process 14 -12 Copyright © 2017 Pearson Education, Ltd.

LO 2 Outline the Conflict Process ØStage V: Outcomes ØConflict is constructive when it…

LO 2 Outline the Conflict Process ØStage V: Outcomes ØConflict is constructive when it… Ø Improves the quality of decisions, stimulates creativity and innovation, encourages interest and curiosity, provides the medium through which problems can be aired and tensions released, and fosters an environment of self-evaluation and change. ØConflict is destructive when it… Ø Breeds discontent, reduces group effectiveness, and threatens the group’s survival. Copyright © 2017 Pearson Education, Ltd. 14 -13

Outline the Conflict Process LO 2 ØManaging Functional Conflict Ø One of the keys

Outline the Conflict Process LO 2 ØManaging Functional Conflict Ø One of the keys to minimizing counterproductive conflicts is recognizing when there really is a disagreement. ØMany apparent conflicts are due to people using different language to discuss the same general course of action. Ø Successful conflict management recognizes these different approaches. ØAttempts to resolve them by encouraging open, frank discussion focused on interests rather than issues. 14 -14 Copyright © 2017 Pearson Education, Ltd.

Outline the Conflict Process LO 2 ØGroups that resolve conflicts successfully discuss differences of

Outline the Conflict Process LO 2 ØGroups that resolve conflicts successfully discuss differences of opinion openly. Ø The most disruptive conflicts are those that are never addressed directly. ØManagers need to emphasize shared interests in resolving conflicts. Ø Groups with cooperative conflict styles and an underlying identification to group goals are more effective than groups with a more competitive style. Copyright © 2017 Pearson Education, Ltd. 14 -15

LO 2 Outline the Conflict Process ØDifferences across countries in conflict resolution strategies may

LO 2 Outline the Conflict Process ØDifferences across countries in conflict resolution strategies may be based on collectivistic tendencies and motives. Ø Collectivist cultures see people as deeply embedded in social situations. Ø They will avoid direct expression of conflicts, preferring indirect methods for resolving differences of opinion. 14 -16 Copyright © 2017 Pearson Education, Ltd.

LO 3 Contrast Distributive and Integrative Bargaining ØNegotiation is a process in which two

LO 3 Contrast Distributive and Integrative Bargaining ØNegotiation is a process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for them. Ø We use the terms negotiation and bargaining interchangeably. 14 -17 Copyright © 2017 Pearson Education, Ltd.

LO 3 Contrast Distributive and Integrative Bargaining 14 -18 Copyright © 2017 Pearson Education,

LO 3 Contrast Distributive and Integrative Bargaining 14 -18 Copyright © 2017 Pearson Education, Ltd.

LO 3 Contrast Distributive and Integrative Bargaining 14 -19 Copyright © 2017 Pearson Education,

LO 3 Contrast Distributive and Integrative Bargaining 14 -19 Copyright © 2017 Pearson Education, Ltd.

LO 3 Contrast Distributive and Integrative Bargaining ØResearch shows that when you’re engaged in

LO 3 Contrast Distributive and Integrative Bargaining ØResearch shows that when you’re engaged in distributive bargaining, one of the best things you can do is make the first offer, and make it an aggressive one. Ø Shows power. Ø Establishes an anchoring bias. ØAnother distributive bargaining tactic is revealing a deadline. 14 -20 Copyright © 2017 Pearson Education, Ltd.

LO 3 Contrast Distributive and Integrative Bargaining ØWhy don’t we see more integrative bargaining

LO 3 Contrast Distributive and Integrative Bargaining ØWhy don’t we see more integrative bargaining in organizations? ØNeed the right conditions: ØParties who are open with information and candid about their concerns. ØA sensitivity by both parties to the other’s needs. ØThe ability to trust one another. ØA willingness by both parties to maintain flexibility. Copyright © 2017 Pearson Education, Ltd. 14 -21

LO 3 Contrast Distributive and Integrative Bargaining ØCompromise might be your worst enemy in

LO 3 Contrast Distributive and Integrative Bargaining ØCompromise might be your worst enemy in negotiating a win-win agreement. Ø The reason is that compromising reduces the pressure to bargain integratively. 14 -22 Copyright © 2017 Pearson Education, Ltd.

LO 4 Apply the Five Steps of the Negotiation Process 14 -23 Copyright ©

LO 4 Apply the Five Steps of the Negotiation Process 14 -23 Copyright © 2017 Pearson Education, Ltd.

LO 5 How Individual Differences Influence Negotiations ØPersonality Traits in Negotiation Ø Can you

LO 5 How Individual Differences Influence Negotiations ØPersonality Traits in Negotiation Ø Can you predict an opponent’s negotiating tactics if you know something about his/her personality? ØThe evidence says “sort of. ” ØMoods/Emotions in Negotiation Ø Influence negotiation, but the way they do appears to depend on the type of negotiation. 14 -24 Copyright © 2017 Pearson Education, Ltd.

LO 5 How Individual Differences Influence Negotiations ØCulture in Negotiations ØDo people from different

LO 5 How Individual Differences Influence Negotiations ØCulture in Negotiations ØDo people from different cultures negotiate differently? Yes, they do. ØPeople generally negotiate more effectively within cultures than between them. ØIn cross-cultural negotiations, it is especially important that the negotiators be high in openness. ØNegotiators need to be especially aware of the emotional dynamics in cross-cultural negotiation. Copyright © 2017 Pearson Education, Ltd. 14 -25

LO 5 How Individual Differences Influence Negotiations ØGender Differences in Negotiations Ø Men and

LO 5 How Individual Differences Influence Negotiations ØGender Differences in Negotiations Ø Men and women negotiate differently and these differences affect outcomes. ØThere is some merit to the popular stereotype that women are more cooperative, pleasant, and relationshiporiented in negotiations than are men. Ø These gender differences can be lessened at both the organizational and individual level. 14 -26 Copyright © 2017 Pearson Education, Ltd.

LO 5 How Individual Differences Influence Negotiations 14 -27 Copyright © 2017 Pearson Education,

LO 5 How Individual Differences Influence Negotiations 14 -27 Copyright © 2017 Pearson Education, Ltd.

LO 6 Roles and Function of Third-party Negotiations ØNegotiating in a social context: ØReputation:

LO 6 Roles and Function of Third-party Negotiations ØNegotiating in a social context: ØReputation: the way other people think and talk about you. ØDevelop a trustworthy reputation – competence and integrity. ØRelationships: think about what’s best for the other party and the relationship as a whole. ØRepeated negotiations built on trust provide more options. Copyright © 2017 Pearson Education, Ltd. 14 -28

LO 6 Roles and Function of Third-party Negotiations ØWhen individuals or group representatives reach

LO 6 Roles and Function of Third-party Negotiations ØWhen individuals or group representatives reach a stalemate and are unable to resolve their differences through direct negotiations, they may turn to a third party. Ø A mediator Ø An arbitrator Ø A conciliator 14 -29 Copyright © 2017 Pearson Education, Ltd.

Implications for Managers Ø Choose an authoritarian management style in emergencies, when unpopular actions

Implications for Managers Ø Choose an authoritarian management style in emergencies, when unpopular actions need to be implemented, and when the issue is vital to the organization’s welfare. Be certain to communicate your logic when possible to make certain employees remain engaged and productive. Ø Seek integrative solutions when your objective is to learn, when you want to merge insights from people with different perspectives, when you need to gain commitment by incorporating concerns into a consensus, and when you need to work through feelings that have interfered with a relationship. Copyright © 2017 Pearson Education, Ltd. 14 -30

Implications for Managers ØBuild trust by accommodating others when you find you’re wrong, when

Implications for Managers ØBuild trust by accommodating others when you find you’re wrong, when you need to demonstrate reasonableness, when other positions need to be heard, when issues are more important to others than to yourself, when you want to satisfy others and maintain cooperation, when you can build social credits for later issues, to minimize loss when you are outmatched and losing, and when employees should learn from their own mistakes. Copyright © 2017 Pearson Education, Ltd. 14 -31

Implications for Managers Ø Consider compromising when goals are important but not worth potential

Implications for Managers Ø Consider compromising when goals are important but not worth potential disruption, when opponents with equal power are committed to mutually exclusive goals, and when you need temporary settlements to complex issues. Ø Distributive bargaining can resolve disputes, but it often reduces the satisfaction of one or more negotiators because it is confrontational and focused on the short term. Integrative bargaining, in contrast, tends to provide outcomes that satisfy all parties and build lasting relationships. Copyright © 2017 Pearson Education, Ltd. 14 -32