Managing Conflict in Negotiations Bargaining Conflict and Negotiations

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Managing Conflict in Negotiations Bargaining, Conflict and Negotiations in Organizational Settings

Managing Conflict in Negotiations Bargaining, Conflict and Negotiations in Organizational Settings

Conflict Defined n n it’s pervasive, it’s inevitable, and it’s a process, not a

Conflict Defined n n it’s pervasive, it’s inevitable, and it’s a process, not a product Lulofs: “conflict occurs in situations in which (1) the people are interdependent, (2) they seek different outcomes or they favor different means to the same ends; and/or (3) the people perceive the other is interfering with their pursuit of scarce rewards or resources. ”

Overview of Conflict in Organizations n The cultural “naturalness” of conflict – Legal system

Overview of Conflict in Organizations n The cultural “naturalness” of conflict – Legal system – Labor negotiations – Political system n n The pervasiveness of conflict--20% of a managers time Connection to management theories

Benefits of Organizational Conflict Defuse potentially larger conflicts n Forces us to acquire new

Benefits of Organizational Conflict Defuse potentially larger conflicts n Forces us to acquire new information n Inter-group conflict promotes intragroup cohesiveness n Provides a opportunity to measure power, strength, or ability n

Disadvantages of Organizational Conflict Leads to avoidance behavior n Leads to withholding of information

Disadvantages of Organizational Conflict Leads to avoidance behavior n Leads to withholding of information n Threatens individuals n Causes cynicism and reduced communication n

Tannen’s View of Organizational Conflict n Ritual Fighting as a function of organizational culture

Tannen’s View of Organizational Conflict n Ritual Fighting as a function of organizational culture n Gender differences

Kilmann Thomas Conflict Model n n X=cooperativenss, Y=assertiveness Avoidance (low coop, low assertiveness) –

Kilmann Thomas Conflict Model n n X=cooperativenss, Y=assertiveness Avoidance (low coop, low assertiveness) – denial, underresponsiveness, shifting, semantic focus, postponement, – Advantage--takes out the heat of the moment – Disadvantage--conflict remains unresolved, may lead to larger outbreak

Kilmann-Thomas Model, cont. n Competition (low coop, high assertiveness) – presumptive attribution, prescription –

Kilmann-Thomas Model, cont. n Competition (low coop, high assertiveness) – presumptive attribution, prescription – Advantages--increased creativity and enthusiasm – Disadvantages--violence, driving opponent underground

Kilmann Thomas, cont. n Compromise (moderate X and Y) – Advantages--often actually resolves the

Kilmann Thomas, cont. n Compromise (moderate X and Y) – Advantages--often actually resolves the conflict – Disadvantage--may actually be bad policy or decision by not staying true to either set of goals

Kilmann Thomas cont. n Accommodationn (High coop, Low assert. ) – appeasement, smoothing over

Kilmann Thomas cont. n Accommodationn (High coop, Low assert. ) – appeasement, smoothing over – Advantage--often quickly leads to solution – Disadvantage-- may, in the long run, be detrimental, denies the legitimacy of the claims of one of the participants

Kilmann Thomas, cont. n Collaboration (High coop, High assert. ) – High levels of

Kilmann Thomas, cont. n Collaboration (High coop, High assert. ) – High levels of commitment and empathy are necessary – use description, qualification, accept responsibility, initiating problem solving – Advantage--truly worthy of humans – Disadvantage--difficult and many are not trained to do it very well

A Four Phase Model of Conflict Resolution n Introduction--brief statement reviewing procedures for conflict

A Four Phase Model of Conflict Resolution n Introduction--brief statement reviewing procedures for conflict resolution n Explanation--each party discusses the source of the difficulty n Clarifying--develop a better understanding of all relevant issues (positions versus interests) n Problem Solving--brainstorms solutions, eliminate solutions, settle on a final solution

A Glossary of Negotiation Terms n n Negotiation--Back and forth communication designed to reach

A Glossary of Negotiation Terms n n Negotiation--Back and forth communication designed to reach an agreement when you and the other side have some interests that are shared and others that are opposed Bargaining---trading of assets among parties to solve problems Mediation-- a neutral 3 rd party is introduced to work with two parties Arbitration--like mediation, except that the third party has the authority to impose a binding decision

Bargaining at a glance n Distributive bargaining (Win-lose) n Integrative bargaining (Win-win)

Bargaining at a glance n Distributive bargaining (Win-lose) n Integrative bargaining (Win-win)

Bargaining Strategies n n Force the opposition to open the bidding Frequent concessions Reciprocity

Bargaining Strategies n n Force the opposition to open the bidding Frequent concessions Reciprocity for good faith Look for win-win solutions – expand the pie – joint brainstorming – try “bridging”