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Organizational Behaviour: Concepts, Controversies, Applications

Eighth Canadian Edition

Chapter 9

Conflict and Negotiation

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Chapter Outline (1 of 3)

Conflict Defined

Functional vs. Dysfunctional Conflict

Types of Conflict

Loci of Conflict

Sources of Conflict

Conflict Resolution

Conflict Management Strategies Based on Dual Concern Theory

What Can Individuals Do to Manage Conflict?

Resolving Personality Conflicts

Resolving Intercultural Conflicts

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Material pertinent to this discussion is found under “SnapShot Summary” at the end of the chapter.

Chapter Outline (2 of 3)

Conflict Outcomes

Negotiation

Bargaining Strategies

How to Negotiate

Individual Differences in Negotiation Effectiveness

Personality Traits in Negotiation

Moods/Emotions in Negotiation

Gender Differences in Negotiation

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Material pertinent to this discussion is found under “SnapShot Summary” at the end of the chapter.

Chapter Outline (3 of 3)

Third Party Negotiations

Mediator

Arbitrator

Conciliator

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Material pertinent to this discussion is found under “SnapShot Summary” at the end of the chapter.

Learning Outcomes

Define conflict.

Describe the three types of conflict

Describe the three loci conflict.

Identify the conditions that lead to conflict.

Contrast distributive and integrative bargaining.

Show how individual differences influence negotiations.

Assess the roles and functions of third-party negotiations.

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This material is found at the beginning of the chapter.

Conflict Defined

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

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LO1; Material pertinent to this discussion is found under “Conflict Defined.”

Functional vs. Dysfunctional Conflict

Is conflict always bad?

Functional Conflict

Supports the goals of the group and improves its performance

Dysfunctional Conflict

Hinders group performance

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LO1; Material pertinent to this discussion is found under “Conflict Defined.”

Types of Conflict

Task Conflict

Relates to the content and goals of the work

Relationship Conflict

Focuses on interpersonal relationships

Almost always dysfunctional

Process Conflict

Conflict over how work gets done

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LO1; Material pertinent to this discussion is found under “Conflict Defined.”

Loci of Conflict

Dyadic Conflict

Conflict between two people

Intragroup Conflict

Conflict which occurs within a group or team

Intergroup Conflict

Conflict between different groups or teams

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LO2; Material pertinent to this discussion is found under “Conflict Defined.”

Sources of Conflict (1 of 2)

Communication

Through semantic difficulties, misunderstandings and “noise” in the communication channels

Structure

Size, specialization, and composition of the group

Ambiguity of responsibility

Reward systems

Leadership style

The diversity of goals

If one group is dependent on another

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LO3; Material pertinent to this discussion is found under “Conflict Defined.”

Sources of Conflict (2 of 2)

Personal Variables

Personality

People high in disagreeableness, neuroticism, or self-monitoring are prone to tangle with other people more often, and to react poorly when conflict occurs

Emotions

Values

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LO3; Material pertinent to this discussion is found under “Conflict Defined.”

Conflict Resolution: Two Dimensions

Cooperativeness

The degree to which one party attempts to satisfy the other party’s concerns

Assertiveness

The degree to which one party attempts to satisfy his or her own concerns

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LO3; Material pertinent to this discussion is found under “Conflict Resolution.”

Conflict Management Strategies

Forcing

Imposing one’s will on the other party

Problem solving

Trying to reach an agreement that satisfies both one’s own and the other party’s aspirations as much as possible

Avoiding

Ignoring or minimizing the importance of the issues creating the conflict

Yielding

Accepting and incorporating the will of the other party

Compromising

Balancing concern for oneself with concern for the other party in order to reach a solution

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LO3; Material pertinent to this discussion is found under “Conflict Resolution.”

Conflict-Handling Strategies & Accompanying Behaviour

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LO3; Material pertinent to this discussion is found under “Conflict Resolution.”

What Can Individuals Do to Manage Conflict?

Problem solving

Developing overarching goals

Smoothing

Compromising

Avoidance

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LO3; Material pertinent to this discussion is found under “Conflict Resolution.”

Problem solving: Requesting a face-to-face meeting to identify the problem and resolve it through open discussion.

Developing overarching goals: Creating a shared goal that requires both parties to work together, and motivates them to do so.

Smoothing: Playing down differences while emphasizing common interests with the other party.

Compromising: Agreeing with the other party that each will give up something of value to reach an accord.

Avoidance: Withdrawing from, or suppressing, the conflict.

Techniques for Managing Work-Related Conflicts

Expansion of resources

Authoritative command

Altering the human variable

Altering the structural variables

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LO3; Material pertinent to this discussion is found under “Conflict Resolution.”

Expansion of resources: The scarcity of a resource -- say, money, promotion opportunities, office space -- can create conflict. Expansion of the resource can create a win-win solution.

Authoritative command: Management can use its formal authority to resolve the conflict and then communicate its desires to the parties involved.

Altering the human variable: Behavioural change techniques such as human relations training can alter attitudes and behaviours that cause conflict.

Altering the structural variables: The formal organization structure and the interaction patterns of conflicting parties can be changed through job redesign, transfers, creation of coordinating positions, and the like.

Resolving Personality Conflicts

Misunderstandings based on age, race, or cultural differences

Intolerance, prejudice, discrimination, and bigotry

Perceived inequalities

Misunderstandings, rumours, or falsehoods about an individual or group

Blaming for mistakes or mishaps (finger-pointing)

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LO3; Material pertinent to this discussion is found under “Conflict Resolution.”

Tips for Handling Personality Conflict (1 of 3)

Communicate directly with the other person to resolve the perceived conflict.

Avoid dragging co-workers into the conflict.

If necessary, seek help from direct supervisors or human resource specialists.

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LO3; Material pertinent to this discussion is found under “Conflict Resolution.”

When dealing with the other person emphasize problem solving and common objectives, not personalities.

Tips for Handling Personality Conflict (2 of 3)

Do not take sides.

Suggest the parties work things out themselves.

If necessary, refer the problem to parties’ direct supervisors.

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LO3; Material pertinent to this discussion is found under “Conflict Resolution.”

Tips for Handling Personality Conflict (3 of 3)

Investigate and document conflict.

If appropriate, take corrective action (e.g., feedback or behaviour shaping).

If necessary, attempt informal dispute resolution.

Refer difficult conflicts to human resource specialists or hired counsellors.

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LO3; Material pertinent to this discussion is found under “Conflict Resolution.”

What managers can do if employees are having a personality conflict

Resolving Intercultural Conflicts (1 of 2)

Those from Asian cultures show a preference for conflict avoidance, compared with North Americans and Britons.

Chinese and East Asian managers prefer compromising as a strategy, contrary to North Americans.

North Americans prefer a problem-solving approach to conflicts, which yields a win-win solution.

Win-win solutions are less likely to be achieved in Asian cultures.

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LO3; Material pertinent to this discussion is found under “Conflict Resolution.”

Resolving Intercultural Conflicts (2 of 2)

East Asian managers tend to ignore conflict rather than make it public.

Japanese managers tend to choose non-confrontational styles.

Westerners are more likely to choose forcing as a strategy than Asians.

North Americans expect that negotiations may lead to a legal contract; Asian cultures rely less on legal contracts and more on relational contracts.

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LO3; Material pertinent to this discussion is found under “Conflict Resolution.”

Conflict and Unit Performance

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LO3; Material pertinent to this discussion is found under “Conflict Resolution.”

We suggest in Exhibit 9-2 that there is an optimal level of conflict in the workplace to maximize productivity, but this is decidedly a North American viewpoint. Many Asian cultures believe that conflict almost always has a negative effect on the work unit.

Conflict Outcomes

Three desired outcomes of conflict:

Agreement: equitable and fair agreements are the best outcomes

Stronger relationships: when conflict is resolved positively, this can lead to better relationships and greater trust

Learning: handling conflict successfully teaches one how to do it better next time.

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LO3; Material pertinent to this discussion is found under “Conflict Outcomes.”

Negotiation

A process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for them

Distributive bargaining

Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation

Integrative bargaining

Negotiation that seeks one or more settlements that can create a win-win solution

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LO4; Material pertinent to this discussion is found under “Negotiation.”

Distributive vs. Integrative Bargaining

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LO4; Material pertinent to this discussion is found under “Negotiation.”

How to Negotiate

Five steps to negotiation:

Developing a strategy

Defining ground rules

Clarifying and justifying

Bargaining and problem solving

Attaining closure and implementation

Identify BATNA:

Best Alternative To a Negotiated Agreement

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LO4; Material pertinent to this discussion is found under “Negotiation.”

The Negotiation Process

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LO4; Material pertinent to this discussion is found under “Negotiation.”

Staking Out the Bargaining Zone

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LO4; Material pertinent to this discussion is found under “Negotiation.”

Individual Differences in Negotiation Effectiveness

Personality Traits in Negotiation

Moods/Emotions in Negotiation

Gender Differences in Negotiation

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LO5; Material pertinent to this discussion is found under “Individual Differences in Negotiation Effectiveness.”

Note: This is an overview slide to introduce the topics. Additional slides on these concepts follow with more in-depth speaking notes.

Personality Traits in Negotiation

Negotiators who are agreeable or extraverted are not very successful in distributive bargaining

Extraverts are outgoing and friendly, they tend to share more information than they should

Agreeable people are more interested in finding ways to cooperate rather than to butt heads

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LO5; Material pertinent to this discussion is found under “Individual Differences in Negotiation Effectiveness.”

Moods/Emotions in Negotiation

Distributive negotiations

It appears that negotiators in a position of power or equal status who show anger negotiate better outcomes because their anger induces concessions from their opponents

Those in a less powerful position, displaying anger leads to worse outcomes

Integrative negotiations

Positive moods and emotions appear to lead to more integrative agreements (higher levels of joint gain)

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LO5; Material pertinent to this discussion is found under “Individual Differences in Negotiation Effectiveness.”

Gender Differences in Negotiation

Popular stereotypes of men and women

Woman more cooperative and pleasant in negotiations than men

A few hundred dollars more in salary or the corner office is less important to women than forming and maintaining an interpersonal relationship

Women are “nicer” than men; probably due to a confusion between gender and the lower degree of power women typically hold in most large organizations

Men are expected to be “tough”

Women’s attitudes and behaviours hurt them in negotiations

Managerial women demonstrate less confidence in anticipation of negotiating and are less satisfied with their performance afterward

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LO5; Material pertinent to this discussion is found under “Individual Differences in Negotiation.”

Do men and women negotiate differently? The answer appears to be “It depends.” It is difficult to generalize about gender differences in negotiating styles, because the research yields many opinions, but few reliable conclusions. Some researchers have documented interesting and relevant differences, however.

Third-Party Conflict Resolution (1 of 4)

Mediator

Arbitrator

Conciliator

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LO6; Material pertinent to this discussion is found under “Conflict Resolution.”

Note: This is an introductory slide to the concepts. Future slides provide speaking notes for each.

Occasionally, individuals or group representatives reach a stalemate and are unable to resolve their differences. In such cases, they may turn to alternative dispute resolution (ADR), where a third party helps both sides find a solution outside a courtroom.

Third-Party Conflict Resolution (2 of 4)

Mediator

A neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives

Labour-management negotiations and civil court disputes

Settlement rate is about 60 percent; satisfaction rate is over 90 percent

Participants must be motivated to bargain and settle

Most effective under moderate levels of conflict

Mediator must appear neutral and non-coercive

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LO6; Material pertinent to this discussion is found under “Conflict Resolution.”

Third-Party Conflict Resolution (3 of 4)

Arbitrator

Has authority to dictate an agreement

Voluntary (requested) or compulsory (imposed by law or contract)

Always results in a settlement

Conflict may resurface at a later time

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LO6; Material pertinent to this discussion is found under “Conflict Resolution.”

Third-Party Conflict Resolution (4 of 4)

Conciliator

Trusted third party who provides an informal communication link between the negotiator and the opponent.

Informal link

Used extensively in international, labour, family, and community disputes

Fact-find, interpret messages, persuade disputants to develop agreements

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LO6; Material pertinent to this discussion is found under “Conflict Resolution.”

Conflict Resolution and Culture

Collectivistic cultures see people as deeply embedded in social situations, whereas individualistic cultures see people as autonomous

As a result, collectivists are more likely to seek to preserve relationships and promote the good of the group as a whole than individualists

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LO6; Material pertinent to this discussion is found under “Individual Differences in Negotiation.”

Cultural Differences in Negotiating Style

Negotiating styles vary across national culture

People generally negotiate more effectively within cultures than between them

Important to be high in openness to experience

To avoid factors such as time pressures

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LO6; Material pertinent to this discussion is found under “Individual Differences in Negotiation.”

Culture, Negotiations, and Emotions

Research has shown that East Asian negotiators were less likely to accept offers from negotiators who displayed anger during negotiations

When confronted with an angry negotiator, Chinese negotiators increased their use of distributive negotiating tactics, whereas US negotiators decreased their use of these tactics

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LO6; Material pertinent to this discussion is found under “Individual Differences in Negotiation.”

Summary

A medium level of conflict often results in higher productivity than an absence of conflict.

Negotiators should identify their BATNA (best alternative to a negotiated agreement).

In relationships with long-term consequences, it’s best to use a win-win strategy in bargaining.

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Material pertinent to this discussion is found at the end of the chapter.

OB at Work: For Review

What is conflict?

What are the three types of conflict and the three loci of conflict?

What are the conditions that lead to conflict?

What are the differences between distributive and integrative bargaining?

How do individual differences influence negotiations?

What are the roles and functions of third-party negotiations?

9 - ‹#›

Material pertinent to this discussion is found at the end of the chapter.

OB at Work: For Managers (1 of 3)

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.

It’s best to avoid an issue when it’s 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.

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Material pertinent to this discussion is found at the end of the chapter.

OB at Work: For Managers (2 of 3)

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’s confrontational and focused on the short term. Integrative bargaining, in contrast, tends to provide outcomes that satisfy all parties and build lasting relationships.

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Material pertinent to this discussion is found at the end of the chapter.

OB at Work: For Managers (3 of 3)

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 does not mean sacrificing your self-interest; rather, it means trying to find creative solutions that give both parties what they really want.

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Material pertinent to this discussion is found at the end of the chapter.

Breakout Group Exercises

Form small groups to discuss the following:

You and two other students carpool to school every day. The driver has recently taken to playing a new radio station quite loudly. You do not like the music, or the loudness. Using one of the conflict-handling intentions, indicate how you might go about resolving this conflict.

Using the example above, identify a number of BATNAs (best alternatives to a negotiated agreement) available to you, and then decide whether you would continue carpooling.

Which conflict-handling style is most consistent with how you deal with conflict? Is your style effective? Why or why not?

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Material pertinent to this discussion is found at the end of the chapter.

From Concepts to Skills: Negotiating

Begin with a positive overture.

Address problems, not personalities.

Pay little attention to initial offers.

Emphasize win-win solutions.

Create an open and trusting climate.

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Material pertinent to this discussion is found at the end of the chapter.

Begin with a positive overture. Studies on negotiation show that concessions tend to be reciprocated and lead to agreements.

Address problems, not personalities. Concentrate on the negotiation issues, not on the personal characteristics of your opponent. When negotiations get tough, avoid the tendency to attack your opponent.

Pay little attention to initial offers. Treat an initial offer as merely a point of departure. Everyone has to have an initial position. These initial offers tend to be extreme and idealistic. Treat them as such.

Emphasize win-win solutions. Inexperienced negotiators often assume that their gain must come at the expense of the other party. But assuming a zero-sum game means missed opportunities for trade-offs that could benefit both sides. If conditions are supportive, look for an integrative solution. Frame options in terms of your opponent’s interests and look for solutions that can allow your opponent, as well as yourself, to declare a victory.

Create an open and trusting climate. Skilled negotiators are better listeners, ask more questions, focus their arguments more directly, are less defensive, and have learned to avoid words and phrases that can irritate an opponent (that is, “generous offer,” “fair price,” “reasonable arrangement”). In other words, they are better at creating the open and trusting climate necessary for reaching an integrative settlement.