Journal-type
Shatna
Chapter10.ConflictandNegotiations.pptx
CHAPTER 10
Conflict and Negotiations
©FlatWorld 2018
Chapter Learning Objectives
Understand the different types of conflict.
Understand the causes of conflict.
Understand the consequences of conflict.
Understand how to manage conflict effectively.
Understand the stages of the negotiation process.
Understand how to avoid common negotiation mistakes.
Engage in conflict management and negotiation ethically.
Understand cross-cultural differences in conflict and negotiation.
©FlatWorld 2018
Types of Conflict
Conflict is a process that involves people disagreeing
©FlatWorld 2018
Intrapersonal
Interpersonal
Conflict within a person. It arises when a person is uncertain about what is expected or wanted or has a sense of being inadequate to the task.
Conflict between two people.
Intergroup
Conflict that takes place among different groups, between a union and management, or between companies, such as companies that supply the same customer.
Is Conflict Always Bad?
A moderate amount of conflict can be a healthy part of organizational life
A lack of conflict may be an indicator that individuals do not care about their jobs/organization or do not feel comfortable bringing up differences
Task conflict can be good in the early stages of decision making but can interfere with complex tasks in the long run
Personal conflicts are never healthy
©FlatWorld 2018
Causes of Conflict
©FlatWorld 2018
Outcomes of Conflict
Positive outcomes:
Greater creativity and better decisions
Consideration of a broader range of ideas
Surfacing of assumptions that may be inaccurate
Increased participation and creativity
Clarification of individual views that build learning
Negative outcomes:
Increased stress and anxiety among individuals
Decreased productivity and satisfaction
Feelings of being defeated and demeaned
A climate of mistrust
©FlatWorld 2018
What Do You Think?
What are the most prevalent causes of conflict at work?
What are the common outcomes of workplace conflict?
Do you think workplace violence is a problem or not? Why do you think that is?
What outcomes have you observed from conflict for yourself? In other words, how do you feel or act after a conflict?
©FlatWorld 2018
6
Ways to Manage Conflict
1-7
©FlatWorld 2018
7
Change the Structure
Change the Composition of the Team
Create a Common Opposing Force
Consider Majority Rule
Problem Solve
Consider the Role of Mood
Conflict Handling Styles
©FlatWorld 2018
Conflict Handling Styles (Continued)
Avoidance
The avoiding style is uncooperative and unassertive
People exhibiting this style deny the existence of the conflict and are prone to postponing any decisions in which a conflict may arise
Accommodation
The accommodating style is cooperative and unassertive
People exhibiting this style give in to what the other side wants, even at the expense of one’s personal goals
©FlatWorld 2018
9
Conflict Handling Styles (Continued)
Compromise
The compromising style is a middle-ground style
People exhibiting this style have some desire to express their own concerns and get their way but still respect the other person’s goals
Competition
People exhibiting a competing style want to reach their goal regardless of what others say or how they feel
Competition may lead to poor relationships
©FlatWorld 2018
10
Conflict Handling Styles (Continued)
Collaboration
The collaborating style is high on both assertiveness and cooperation
Both sides argue for their position, supporting it with facts and rationale while listening attentively to the other
Which Style Is Best?
There is no one “right way” to deal with conflict
The collaborative style has the potential to be highly effective
©FlatWorld 2018
11
What Do You Think?
List three ways to decrease a conflict situation. What do you think are some pros and cons of each of these approaches?
Do you deal with conflict differently with friends and family than you do at work? If so, why do you think that is?
What is your usual conflict-handling style at work? Do you see it as effective or ineffective?
Describe a situation in which not having enough conflict can be a problem.
©FlatWorld 2018
12
Section 5.0 Learning Objectives
Learn the five phases of negotiation.
Learn negotiation strategies.
Avoid common mistakes in negotiations.
Learn about third-party negotiations.
©FlatWorld 2018
The Five Phases of Negotiation
Gather all the information necessary for the negotiation
Determine your best alternative to a negotiated agreement
Assemble the information in a way that supports your position
Discuss your goals and seek an agreement with the other party; may need to make concessions
Either come to an agreement or walk away
©FlatWorld 2018
14
OB Toolbox: BATNA Best Practices
©FlatWorld 2018
1
2
3
4
5
Brainstorm a list of alternatives
Improve upon more promising ideas and convert them
Identify the most beneficial alternative
Remember that your BATNA may evolve over time
Don’t reveal your BATNA to the other party
Common Negotiation Errors
Letting your ego get in the way
Having unrealistic expectations
Failing to negotiate/accept the first offer
Getting overly emotional
Letting past negative outcomes affect the present ones
©FlatWorld 2018
Should You Negotiate for a Higher Salary?
Yes! - 58% of hiring managers say they leave some negotiating room when extending initial job offers
Many hiring managers agree to a candidate’s request for a higher salary
©FlatWorld 2018
Negotiation Strategies
©FlatWorld 2018
Distributive Approach
Integrative Approach
The traditional fixed-pie approach in which negotiators see the situation as a pie that they have to divide between them.
An approach to negotiation in which both parties look for ways to integrate their goals under a large umbrella.
When All Else Fails: Third-Party Negotiations
Alternative Dispute Resolution (ADR)
ADR involves resolving conflict with the help of a specially trained, neutral third party without the need for a formal trial or hearing
Mediation
An outside third party (the mediator) enters the situation with the goal of assisting the parties in reaching an agreement
The mediator can facilitate, suggest, and recommend
©FlatWorld 2018
When All Else Fails: Third-Party Negotiations (Continued)
Arbitration
The parties submit the dispute to the third-party arbitrator who makes the final decision (the “award”)
Awards are made in writing and are binding
Arbitration-Mediation
Both sides formally make their cases before an arbitrator who makes a decision and places it in a sealed envelope
Then, the two parties work through mediation, but if they cannot come to an agreement, they follow the arbitrator’s decision
©FlatWorld 2018
Ethics and Negotiations
Sometimes a course of action is legal but is questionable in terms of ethics
Hardball tactics should not be used because the negotiation is likely not the last time you will interact with the other party
Tips for ethical negotiations:
Be honest
Keep your promises
Follow the Platinum Rule – “Treat people the way they want to be treated”
©FlatWorld 2018
Conflict and Negotiation around the Globe
Cultures differ in their thresholds for conflict
Japan or Korea prefer harmony rather than overt conflict
Americans and Germans have a much higher tolerance for conflict
Japan and Pakistan tend to not trust what is heard from the other party until a strong relationship is formed
China prefers that conversations start out with innocuous topics to set a mood of friendliness
Negotiations can be viewed differently across cultures
In collectivistic cultures, the use of deception in negotiations is more common
©FlatWorld 2018
Key Terms
Conflict: A process that involves people disagreeing.
Intrapersonal conflict: Conflict that arises within a person.
Interpersonal conflict: A type of conflict between two people.
Intergroup conflict: Conflict that takes place among different groups, such as different departments or divisions in a company, or between union and management, or between companies, such as companies who supply the same customer.
©FlatWorld 2018
Key Terms (Continued)
In-group bias: The tendency to favor the group to which one belongs.
Conflict management: Resolving disagreements effectively.
Avoiding: An uncooperative and unassertive conflict-handling style.
Accommodating: A cooperative and unassertive conflict-handling style.
Compromising: A middle-ground conflict-handling style, in which a person has some desire to express their own concerns and get their way but still respects the other person’s goals as well.
©FlatWorld 2018
Key Terms (Continued)
Competing: A conflict-handling style that is highly assertive but low on cooperation.
Collaborating: A conflict-handling style that is high on both assertiveness and cooperation.
Negotiation: A process whereby two or more parties work toward an agreement.
Investigation: The first step in negotiation in which information is gathered.
©FlatWorld 2018
Key Terms (Continued)
BATNA: Stands for the “best alternative to a negotiated agreement.” Determining your BATNA is one important part of the investigation and planning phase in negotiation.
Presentation: The third phase of negotiation in which information is assembled in a way that supports one's position.
Bargaining: The fourth phase of negotiation in which parties discuss their goals and seek agreement.
Concessions: Giving up one thing to get something else in return.
©FlatWorld 2018
Key Terms (Continued)
Closure: The last part of negotiation in which you and the other party have either come to an agreement on the terms, or one party has decided that the final offer is unacceptable and therefore must be walked away from.
Distributive view: The traditional fixed-pie approach in which negotiators see the situation as a pie that they have to divide between them.
Integrative approach: An approach to negotiation in which both parties look for ways to integrate their goals under a larger umbrella.
©FlatWorld 2018
Key Terms (Continued)
Alternative Dispute Resolution (ADR): Includes mediation, arbitration, and other ways of resolving conflicts with the help of a specially trained, neutral third party without the need for a formal trial or hearing.
Mediation: A process in which an outside third party (the mediator) enters the situation with the goal of assisting the parties to reach an agreement.
Arbitration: A process that involves bringing in a third party, the arbitrator, who has the authority to act as a judge and make a binding decision to which both parties must adhere.
©FlatWorld 2018
