DB 10

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Conflict and Negotiation in the Workplace

McShane/Von Glinow M:OB 3e

Is Conflict Good or Bad?

McShane/Von Glinow M:OB 3e

Negative Outcomes	Positive Outcomes
Lower performance Higher stress, dissatisfaction, turnover Less information sharing, coordination More organizational politics Wasted resources Weakens team cohesion (when conflict is within team)	Better decisions Fuller debate of decision choices Decision assumptions are questioned Potentially generates more creative ideas Improves responsiveness to external environment Increases team cohesion (conflict with other teams)

Emerging View: Task Versus Relationship Conflict

Task (constructive) conflict

Parties focus on the issue, respect people with other points of view

Try to understand logic/assumptions of each position

Relationship conflict

Focus on personal characteristics (not issues) as the source of conflict

Try to undermine each other’s worth/competence

Accompanied by strong negative emotions

McShane/Von Glinow M:OB 3e

Minimizing Relationship Conflict

Goal: encourage task conflict, minimize relationship conflict

Problem: relationship conflict often develops when engaging in task conflict

Three conditions that minimize relationship conflict during task conflict:

Emotional intelligence/emotional stability

Cohesive team

Supportive team norms

McShane/Von Glinow M:OB 3e

The Conflict Process

McShane/Von Glinow M:OB 3e

Differentiation

Interdependence

Different values/beliefs

Explains cross-cultural, generational, merger conflict

Conflict increases with interdependence

Parties more likely to interfere with each other

Incompatible

Goals

One party’s goals perceived to interfere with other’s goals

Structural Sources of Conflict

McShane/Von Glinow M:OB 3e

Ambiguous Rules

Communication Problems

Creates uncertainty, threatens goals

Encourages political behavior

Stereotyping when few chances to communicate

Conflict reduces motivation to communicate

Poor communication skills escalate conflict (arrogant language, etc)

Scarce Resources

Motivates competition for the resource

Structural Sources of Conflict

McShane/Von Glinow M:OB 3e

Five Conflict Handling Styles

McShane/Von Glinow M:OB 3e

Conflict Handling Contingencies

Problem solving

Best when:

Interests are not perfectly opposing

Parties have trust/openness

Issues are complex

Problem: other party may use information to its advantage

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

McShane/Von Glinow M:OB 3e

Conflict Handling Contingencies

Avoiding

Best when:

conflict is emotionally-charged (relationship conflict)

conflict resolution cost is higher than benefits

Problems: doesn’t resolve conflict; causes 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

Problems: increases other’s expectations; imperfect solution

McShane/Von Glinow M:OB 3e

Conflict Handling Contingencies

Compromising

Best when:

Parties have equal power

Quick solution is required

Parties lack trust/openness

Problem: Sub-optimal solution where mutual gains are possible

McShane/Von Glinow M:OB 3e

Structural Approaches to Conflict Management

Emphasize superordinate goals

Emphasize common objective not conflicting sub-goals

Reduces goal incompatibility and differentiation

Reduce differentiation

Reduce differences in values, attitudes, and experiences

e.g. Move employees around to different jobs

McShane/Von Glinow M:OB 3e

Structural Approaches to Conflict Management

Improve communication and understanding

Communicate to improve mutual understanding

Apply contact hypothesis and Johari window

Warning: Apply communication and understanding after reducing differentiation

McShane/Von Glinow M:OB 3e

Structural Approaches to Conflict Management

Reduce interdependence

Create buffers

Use integrators

Combine jobs

Increase resources

Increase amount of resources available

Clarify rules and procedures

Establish rules and procedures

Clarify roles and responsibilities

McShane/Von Glinow M:OB 3e

Types of Third Party Intervention

McShane/Von Glinow M:OB 3e

Choosing the Best 3rd Party Strategy

Managers prefer inquisitional strategy, but not usually best approach

Mediation potentially offers highest satisfaction with process and outcomes

Use arbitration when mediation fails

McShane/Von Glinow M:OB 3e

Bargaining Zone Model

McShane/Von Glinow M:OB 3e

Strategies for Claiming Value

Claiming value – aiming for the best possible outcomes for yourself and your constituents.

Prepare and set goals

Know your BATNA

Manage time

Manage first offers and concessions

McShane/Von Glinow M:OB 3e

Strategies for Creating Value

Creating value – use problem solving to help both parties reach the best outcomes.

Gather information

Discover priorities through offers and concessions

Build the relationship (trustworthiness)

McShane/Von Glinow M:OB 3e

Location – easier to negotiate on your own turf

Physical setting –seating arrangements, etc.

Audience – negotiators are more competitive, make fewer concessions when audience is watching

Situational Influences on Negotiations

McShane/Von Glinow M:OB 3e

Conflict and Negotiation in the Workplace

McShane/Von Glinow M:OB 3e