Lesson 14 Conflict and Negotiation 14 1 Learning

Lesson 14: Conflict and Negotiation 14 -1

Learning Objectives After studying this chapter, you should be able to: 1. Differentiate between the traditional and interactionist views of conflict. 2. Describe three types of conflict and the two loci of conflict. 3. Outline the conflict process. 4. Contrast distributive and integrative bargaining. 5. Apply the five steps of the negotiation process. 6. Show individual differences influence negotiations. 7. Assess the roles and functions of third-party negotiations. 14 -2

LO 1 Differentiate Between the Traditional and Interactionist Views of Conflict • Conflict – 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. • If no one is aware of a conflict, then it is generally agreed no conflict exists. • Also needed to begin the conflict process are opposition or incompatibility and interaction. 14 -3

LO 1 Differentiate Between the Traditional and Interactionist Views of Conflict • The Traditional View of Conflict • The traditional view of conflict – conflict was a dysfunctional outcome resulting from poor communication, a lack of openness and trust between people, and the failure of managers to be responsive to the needs and aspirations of their employees. • Assumed all conflict was bad and to be avoided. • Viewed negatively and discussed with such terms violence, destruction, and irrationality. 14 -4

LO 1 Differentiate Between the Traditional and Interactionist Views of Conflict • The Interactionist View of Conflict • According to the interactionist view of conflict a harmonious, peaceful, tranquil, and cooperative group is prone to becoming static, apathetic, and unresponsive to needs for change and innovation. • But not all conflicts are good. • Functional conflict supports goals. • Conflicts that hinder group performance are dysfunctional or destructive forms of conflict. 14 -5

LO 2 Describe the Three Types of Conflict and the Three Loci of Conflict • Types of Conflict • Researchers have classified conflicts into three categories: 1. Task conflict relates to the content and goals of the work. 2. Relationship conflict focuses on interpersonal relationships. 3. Process conflict is about how the work gets done. 14 -6

LO 2 Describe the Three Types of Conflict and the Three Loci of Conflict • Another way to understand conflict is to consider its locus, or where the conflict occurs. • There are three basic types: • Dyadic conflict is conflict between two people. • Intragroup conflict occurs within a group or team. • Intergroup conflict is conflict between groups or teams. 14 -7

LO 3 Outline the Conflict Process 14 -8

LO 3 Outline the Conflict Process 14 -9

LO 3 Outline the Conflict Process 14 -10

LO 3 Outline the Conflict Process 14 -11

LO 3 Outline the Conflict Process • Stage V: Outcomes • Conflict can be functional or dysfunctional. • Conflict is constructive when it… • 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. • Conflict is destructive when it… • Breeds discontent, reduces group effectiveness, and threatens the group’s survival. 14 -12

LO 3 Outline the Conflict Process • Managing Functional Conflict • One of the keys to minimizing counterproductive conflicts is recognizing when there really is a disagreement. • Many apparent conflicts are due to people using different language to discuss the same general course of action. • Successful conflict management recognizes these different approaches. • Attempts to resolve them by encouraging open, frank discussion focused on interests rather than issues. 14 -13

LO 3 Outline the Conflict Process • Groups that resolve conflicts successfully discuss differences of opinion openly. • The most disruptive conflicts are those that are never addressed directly. • Managers need to emphasize shared interests in resolving conflicts. • Groups with cooperative conflict styles and an underlying identification to group goals are more effective than groups with a more competitive style. 14 -14

LO 3 Outline the Conflict Process • Differences across countries in conflict resolution strategies may be based on collectivistic tendencies and motives. • Collectivist cultures see people as deeply embedded in social situations. • They will avoid direct expression of conflicts, preferring indirect methods for resolving differences of opinion. 14 -15

LO 4 Contrast Distributive and Integrative Bargaining • Negotiation is a process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for them. • We use the terms negotiation and bargaining interchangeably. 14 -16

LO 4 Contrast Distributive and Integrative Bargaining 14 -17

LO 4 Contrast Distributive and Integrative Bargaining • Research 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. • Shows power. • Establishes an anchoring bias. • Another distributive bargaining tactic is revealing a deadline. 14 -18

LO 4 Contrast Distributive and Integrative Bargaining • Why don’t we see more integrative bargaining in organizations? • The answer lies in the conditions necessary for this type of negotiation to succeed. • Parties who are open with information and candid about their concerns. • A sensitivity by both parties to the other’s needs. • The ability to trust one another. • A willingness by both parties to maintain flexibility. • These conditions seldom exist in organizations. 14 -19

LO 4 Contrast Distributive and Integrative Bargaining • Compromise might be your worst enemy in negotiating a win -win agreement. • The reason is that compromising reduces the pressure to bargain integratively. 14 -20

LO 5 Apply the Five Steps of the Negotiation Process 14 -21

LO 6 Show How Individual Differences Influence Negotiations • Personality Traits in Negotiation • Can you predict an opponent’s negotiating tactics if you know something about his/her personality? • The evidence says “sort of. ” • Moods/Emotions in Negotiation • Influence negotiation, but the way they do appears to depend on the type of negotiation. 14 -22

LO 6 Show How Individual Differences Influence Negotiations • Culture in Negotiations • Do people from different cultures negotiate differently? Yes, they do. • People generally negotiate more effectively within cultures than between them. • In cross-cultural negotiations, it is especially important that the negotiators be high in openness. • Negotiators need to be especially aware of the emotional dynamics in cross-cultural negotiation. 14 -23

LO 6 Show How Individual Differences Influence Negotiations • Gender Differences in Negotiations • Men and women negotiate differently and these differences affect outcomes. • There is some merit to the popular stereotype that women are more cooperative, pleasant, and relationshiporiented in negotiations than are men. • These gender differences can be lessened at both the organizational and individual level. 14 -24

LO 7 Assess the Roles and Functions of Third-party Negotiations • When individuals or group representatives reach a stalemate and are unable to resolve their differences through direct negotiations, they may turn to a third party. • A mediator • An arbitrator • A conciliator 14 -25

Implications for Managers 14 -26

Implications for Managers • 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. • 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. 14 -27

Implications for Managers • Avoid an issue when it is trivial or symptomatic of other issues, when more important issues are pressing, when you perceive no chance of satisfying everyone’s concerns, when people need to cool down and regain perspective, when gathering information, and when others can resolve the conflict more effectively. • Build 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. 14 -28

Implications for Managers • 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. • 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. • Make sure you set aggressive negotiating goals and try to find creative ways to achieve the objectives of both parties, especially when you value the long-term relationship with the other party. That doesn’t mean sacrificing your self-interest; rather, it means trying to find creative solutions that give both parties what they really want. 14 -29