DB7

Chapter 7: Managing Conflict

BOOK:

*Developing Management Skills

· Author: David A. Whetten and Kim S. Cameron

· Publisher: Pearson

Edition: 9th edition

Conflict Management; Negotiation

A conflict over issues in Interpersonal Conflict Management can be valuable. Conflict can provide a deeper understanding of the issues and practical alternatives. One of the leading causes of business failure is too much agreement among top management. Although many people intellectually understand the value of conflict, they feel uncomfortable when confronted by it. The discomfort may result from a lack of understanding of the conflict process, as well as from a lack of training in handling interpersonal confrontations effectively.

Identifying Different Types of Conflict

There are four elements of conflict management.

· Diagnosing the sources of conflict and the associated situational considerations

· Selecting an appropriate conflict management strategy, based on the results of the diagnosis combined with personal preferences

· Effectively implementing the strategy, which should result in the collaborative problem-solving process

· A successful resolution of the dispute

Effective conflict management involves both analytical and behavioral elements. The analytical process involves diagnosing the true causes of conflict, as well as understanding the key situational considerations and personal preferences that need to be factored into selecting the appropriate conflict management approach. The behavioral process involves implementing the chosen strategy effectively to affect successful resolution of the dispute.

The objective of effective conflict management is the successful resolution of disputes, not the elimination of conflict altogether.

In diagnosing the sources of conflict we must assess the source or type of conflict and "why" it occurred. Is the conflict caused by irreconcilable personal differences, discrepancies in information, role incompatibilities, or environmentally-induced stress?

Sources of Conflict

Personal differences	Perceptions and expectations
Informational deficiencies	Misinformation and misrepresentation
Role incompatibility	Goals and responsibilities
Environmental stress	Resource scarcity and uncertainty

Informational-based conflicts can usually be resolved easily, because there are low personal stakes in the outcome. Conflicts grounded in differences of perceptions and expectations are usually intense and difficult to defuse.

The second important component of the diagnostic process is assessing the relevant situational considerations. Once the considerations are determined, a feasible set of responses can be formulated. Basically, "Is the conflict personal differences or issue based?"

The purpose of the diagnostic phase of the model is to select the best approach between the five conflict management approaches: avoiding, compromising, collaborating, forcing, and accommodating.

The benefits of an effectively managed, diverse workforce include:

· Cost savings from reducing turnover rates among minority employees

· Improved, creativity and problem-solving capabilities due to the broader range of perspective and cultural mindsets.

· Perceptions of fairness and equity in the work place

· Increased flexibility that positively affects motivation and minimizes conflict between work and non-work demands (e.g., family, personal interest, leisure).

Selecting the Appropriate Conflict Management Approach

Forcing	Assertive, uncooperative - formal authority, physical threats, manipulation
Accommodating	Cooperative, unassertive - satisfies the other party's concerns, while neglecting one's own
Avoiding	Uncooperative, unassertive - neglects the interest of both parties by sidestepping the conflict or postponing a solution.
Compromising	Intermediary between assertiveness and co-operativeness - splits the difference whereby both parties are asked to make sacrifices to obtain a common gain.
Collaborating	Cooperative, assertive - finds solutions to the cause of the conflict that are satisfactory to both parties rather than find fault or blame. A win-win approach.

Personal preferences reflect a person's ethnic culture, gender, and personality, and play a key role in our conception of effective conflict management. Stretch your comfort zone. The purpose of identifying which conflict approach to use helps us overcome our natural tendencies, become aware of heightened emotional states, and overrides the need for systematic analysis. Effective problem solvers need to feel comfortable using a variety of tools to reach the win-win approach - collaborative problem solving.

· Challenging your competence

· Challenging your motivation

· Lack of sensitivity

· Accusation of being unfair

Comparing Conflict Management and Negotiation Strategies

Negotiation uses problem solving skills. Negotiation strategies are categorized according to two broad perspectives: integrative and distributive.

Integrative	Distributive
Collaboratively expands the pie	Distributes the "pie" evenly
Avoids fixed, incompatible positions	Focuses on relative, individual scores for both sides (A vs. B)
Focuses on the combined score of A+B	Assumes an adversarial, competitive posture
Use problem-solving technique to achieve "win-win" outcome	One or both parties must sacrifice something

The Distributive strategy uses compromising, forcing, accommodating, and avoiding approaches. The Integrative strategy uses the collaborating approach.

Four Phases of Collaborative Problem Solving

Initiator - Problem Identification	· Acknowledge accountability · Advantage is reducing defensiveness · Describe problem in terms of behaviors, consequences, and feelings · Avoid drawing conclusions and attributing motives · Delay proposing a solution until both parties agree on the problem · Be persistent in getting to resolution · Encourage two-way discussion · Approach complex problems incrementally
Initiator - Solution Generation	· Make a request
Responder -Problem Identification	· Establish a climate for joint problem solving · Seek additional, clarifying information about the problem by asking questions · Agree with some aspect of the complaint
Responder - Solution Generation	· Ask for recommendations
Mediator - Problem Identification	· Acknowledge a conflict exists and propose a solution · Maintain a neutral posture regarding the disputants (if not the issues) · Serve as a facilitator - not a judge · Keep the discussion issue-oriented, not personality-oriented
Mediator - Solution Generation	· Explore options by focusing on interests - not positions · Obtain understanding and support from all parties, and establish follow-up procedures

Negotiation

Negotiation is a process by which two parties interact, through various communication channels, to resolve a conflict jointly. Negotiations occur when there is:

· Conflict of interest

· No fixed or established set of rules or procedures for resolving

· Parties prefer to search for an agreement

The following information gives a brief overview of the negotiation phases, strategies, tactics, and techniques to recognize.

Phases of Negotiation

Phase I - Investigation

· Preparation

· Your position

· Environment

· Setting goals

· Setting limits

· The opening offer

· Their position

· Research

· Anticipated action

Phase II - Presentation

· The Environment

· Use your "home field" - you set up the meeting location

· Assume the proper position - sit at the head of the conference table as the authority figure

· Have good visibility - are you in a position to see everything that goes on

· Be lean! - don't bring in people who are not making a contribution to the meeting

· Timing - start and end on time. Keep the meeting moving to end at the appropriate time

· Wardrobe - dress for a positive, successful power image

· Attendance - Who's invited

· Only invite people who are necessary

· Bring in an expert

· Limit opponents invitation list

Phase III - Bargaining

· Tactics and Techniques

· Your Negotiating Style

· Listening

· Negotiation Strategies

· Tactics to Recognize

· Negotiating Techniques

Phase IV - Agreement

· What is closing a deal

· Recognize when to close

· How to close a deal

· Barriers to closing

· Overcoming objections

· When agreement is reached

Negotiation Strategies

Effective negotiation or conflict management strategies are:

· Communicate clearly

· Keep it simple

· Keep it concise

· Avoid multiple meanings

· Be persuasive

· Use descriptive language

· Be heard by your opponent

· Ask questions for clarification

· Do you mean?

· What is?

· Provide for trade-offs and item swapping

· Trade concessions

· Use deadlines, if necessary

· Applies pressure

· Use cautiously

· Strategic silence

· Let them think about a point

· Timing

· Now or later

Tactics to Recognize

Numerous tactics can be used to persuade opponents:

· Emotional outbursts · Environmental · Pretend ignorance · Higher authority · "The" contract · Good guy/Bad guy · Going first · Ultimatums

· Door in the face · Liking · Contrast · Silence · Foot in the door · Reciprocity · Low balling · Bait and switch

Negotiation Techniques

Three major conflict management or negotiation techniques that are beneficial are:

· Building block - once a concession is made; add one more thing

· Exhausting - stay on the same subject until it and/or you are exhausted

· Gear Shifting - switch from one issue to another to keep opponent jumping, or confused

What is Your Negotiation Style?

Is your negotiating style

· Quick

· Deliberate

· Methodical

Are you able to stay focused on your goals?

Do you know when to quit?

· What is your desired outcome?

· Do you know when to walk away? (When you get what you asked for, or when you are so far apart there is no collaboration.)

The Art of Negotiation

It's all about communication!

Conciliation

· To make compatible

Debate

· To discuss considering opposing viewpoints

Persuasion

· To move by argument

Negotiation Listening Skills

Good listening skills are imperative. Learn to read the players. Learn to engage your listening skills.

Passive Listening Skills	Active Listening Skills
· Not really listening · Not speaking · Mentally AWOL · Evokes emotional responses! · Majority	· Real listening · Skill that can be learned

Active Listening

A few tips to enhance active listening is listed below:

Remove Distractions

· Location

· Surroundings

· Timing

Ask Open-ended Questions

· Looking for feelings or reactions

Listen to the Response

· Do not speak!

Pay Attention

· Eye contact

· Take notes (write down questions)

· Lean forward

· Positive verbal and non-verbal signs

· Nod, smile

· Appropriate verbal responses

Roles and Difficult People

Earlier in this session we discussed tactics and strategies to recognize. Let's expand that new information to include the various roles played by negotiators.

· Leader

· Conducts the session

· Calls on others when needed

· Rules on matters of expertise

· Orchestrates the other team members

· Good Guy

· Expresses sympathy and understanding

· Appears to backtrack on a position held by their own team

· Lulls the opposition into a false sense of security

· Bad Guy

· Stops the negotiation from proceeding

· Undermines any argument or point that the opposition makes

· Intimidates by exposing weaknesses

· Hard Liner

· Delays progress by stalling

· Allows others to retreat from soft offers

· Observes and records progress

· Keeps the team focused on the objectives

· Sweeper

· Suggests ways to break deadlock

· Prevents discussions from straying

· Points out inconsistencies in oppositions arguments

Can you see why listening skills and maintaining focus are critical elements in conflict management?

Difficult People

Certain situations may arise with difficult people where we need to gain control or redirect the negotiations. It is important to be aware of the situations and the best reaction to use.

· Dominators

· Establish themselves as the authority and will control the discussions

To control the situation, find a natural pause or break and intervene

· Credit knowledge of the subject and constructive contributions

· State the need for opinions from other participants

· Ask the group or another individual for views or reactions

· Intervene in personal attacks by paraphrasing objectives

· Rambler

· This person will repeat themselves over and over until they feel that everyone understands

To control the situation:

· Confirm you understand the point being made

· Restate the urgency of the objectives and the time constraints

· Re-focus on the objectives

· Direct a question to another participant or to the entire group

· Competing Conversers

· This person will lean over and quietly express their opinion or ideas to anyone who will listen

· Pause and look directly at the conversers

· Ask the conversers to share their ideas with the rest of the group

· Restate the importance of the objectives

· State that the group will accomplish more it one person speaks at a time

· Arguers

· People who argue are usually in a weak position or feel they are not being understood

· Restate the agreed upon agenda in order to move the discussion back towards your desired outcome

· Address the person and use paraphrasing to express your understanding of the remarks made

Closing The Deal

There are four elements to closing a deal.

· What you are getting?

· What you are paying?

· Who are the parties in the contract?

· How long will the contract last?

There are offers and counter-offers. In addition there are written versus oral contracts.

To overcome objections use questions to get where you want to go.

· What is really bothering the other party?

· What if the deal does not close?

· Can you meet or beat the alternative?

· How about if we ?

· In a perfect world, what would this deal look like?

Recognize when to close the deal.

· an acceptable solution is on the table

· the other side wants to close

· a real-world deadline is approaching

· all of the negotiation goals are met

· you have better alternatives

How to Close a Deal?

The only three closing strategies you will ever need:

· ASK

· ASK

· ASK