Conflict and Ethical Behavior

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-2… 1/28

7 Negotiation and Con�lict

Stockbyte

Learning Objectives

After reading this chapter and studying the materials, you should be able to:

1. Relate communication processes to negotiation situations. 2. Apply bargaining principles that lead to successful negotiation outcomes. 3. Utilize management communication techniques to facilitate the stages of negotiation. 4. Identify forms of con�lict in organizations and the roles played by communications channels. 5. Employ effective methods of con�lict resolution.

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-2… 2/28

7.1 Negotiations and Communication Learning Objective # 1: How is communication intertwined with negotiation and bargaining?

Many aspects of organizational life, beginning with applying for and accepting a job, involve bargaining and negotiation. Many company activities also involve negotiations, both within the �irm and with other organizations. Communication processes play major roles in the successes and failures that individuals and groups experience in negotiations and bargaining processes.

The terms bargaining and negotiation have been viewed from two perspectives. One sees them as being the same (Wall, 1985; Robbins, 2005, p. 434). The other suggests that negotiation refers to "win-win" situations in which the ultimate objective will be �inding mutually acceptable solutions to complex con�licts. Bargaining, in that context, represents a competitive "win-lose" circumstance in which both parties seek to obtain the best possible outcome for their side (Lewicki, Barry, & Saunders, 2010, p. 3). This chapter uses the �irst approach, treating the terms interchangeably. In that context, negotiation is a give-and-take decision-making process involving interdependent parties with differing objectives or outcome preferences (Bazerman & Neale, 1992).

Two types of negotiations take place in employment settings (Walton & McKersie, 1965). When a single issue is involved, and a zero-sum game exists in which one's side gain or advantage becomes the other side's loss or disadvantage, it is a distributive negotiation. An automobile manufacturer negotiating the price for batteries to be placed in its cars provides an example of a distributive negotiation. Every dollar that the car manufacturer has to pay for batteries becomes a dollar of revenue to the battery supplier.

The second circumstance, in which a win-win solution can be found, is an integrative negotiation. This involves a problem-solving agenda in which two or more sides try to obtain a settlement that bene�its both. Integrative negotiations occur when a company forms a partnership with a charity to stage a fund-raising event. They also take place when two �irms form a joint venture to create a product. Integrative solutions succeed when the two sides can establish a mutual goal.

Table 7.1 shows forms of negotiations present in the business community. Individual negotiations, company-to-company negotiations, and company negotiations with outside agencies or organizations constitute the primary categories. Both distributive and integrative negotiations take place in those areas.

Table 7.1: Types of negotiations

Individual With Company Company to Company Company With Outside Group

Employment Contract Sales Unions

Wages Collaborations Special Interests

Bene�its Government

Job Status

These negotiation situations require various forms of business and managerial communications.

For Review

De�ine negotiation, distributive negotiation, and integrative negotiation. (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm#)

Negotiation is a give-and-take decision-making process involving interdependent parties with differing objectives or outcome preferences. When a single issue is involved, and a zero-sum game exists in which one's side gain or advantage becomes the other side's loss or disadvantage, it is a distributive negotiation. An integrative negotiation is a problem-solving agenda in which two or more sides try to obtain a settlement that bene�its both.

The Writers Guild: Negotiation and Con�lict

Every three years, the Writers Guild of America, East and the Writers Guild of America, West meet to confer with the Alliance of Motion Picture and Television Producers (AMPTP) to negotiate a contract for compensation for various writing activities. In a previous bargaining session and contract enactment, the writers had agreed to a minimal amount of compensation for revenues earned from sales of movies and other materials on VHS videotapes. As the popularity of home videos exploded, many in the guilds felt shortchanged by the amount of compensation. In 2007, the bargaining team for the writers was resolute about receiving payments for sales of DVD and other digital

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-2… 3/28

© HECTOR MATA/Reuters/Corbis

The Writers Guild negotiation took place over several months and included a work stoppage.

content, especially because it would soon be possible to watch programming on a cell phone and other remote receivers at any time via computers and the Internet.

As contract talks continued and the deadline for expiration of the contract between the AMPTP and the guilds approached, the producers took a hard stance and removed residual payments for DVD sales from their offer. On October 20, 2007, the guilds voted to strike if an acceptable arrangement could not be reached (Finke, 2007).

After engaging in these lengthy negotiations, the guilds went on strike over compensation during the 2007–2008 television season. Estimates of revenue loss from the strike range from $300 million at the low end to $2.1 billion at the top (New York Times, 2008).

Numerous stakeholders beyond the producers and writers were involved. Late-night television programming, such as The Tonight Show with Jay Leno, The Daily Show with Jon Stewart, and the Late Show with David Letterman �irst broadcast re-runs of programs, hoping for a quick end to the strike. The Late Show, owned by a separate production company, was able to negotiate an "interim" contract returning its writers to work after two months. Soon after, Leno and Stewart received criticism for crossing picket lines and continuing their programs without the use of writers. Both argued that doing so helped keep other program employees from enduring greater

�inancial hardships. Meanwhile, television production of various series on all major networks (NBC, ABC, CBS, and FOX) also came to a halt as new scripts ran out. Daytime drama programs also were affected.

In addition, the groups affected included information, leisure, and hospitality; professional and business services; trade, transportation, and utilities; �inancial activities; and education and health services (Milken Institute, 2008). Also, other unions, such as the Screen Actor's Guild and Teamsters had vested interests in the negotiations.

In February 2008, the two sides reached an agreement. The writers quickly rati�ied the contract, and soon all were back to work. The economic impact continued for the remainder of the year, in the entertainment industry and also in Southern California and New York City.

Questions for Students

1. How was the writers' strike both a negotiation and a con�lict? 2. What role would public relations play in these negotiations? 3. What ethical issues did Jay Leno and Jon Stewart encounter as part of the strike?

Individual Negotiations

As Table 7.1 notes, individual employees negotiate with companies for a variety of outcomes. Often individual negotiations begin with how much a person is to be paid, including a signing bonus in some circumstances. Other issues are bene�it packages that contain pro�it-sharing plans, retirement plans, health insurance, vacation time, sick leave, and other elements. Job status is another potentially negotiable issue and de�ines where the person will be placed in an organizational hierarchy, including responsibilities and levels of authority. These discussions continue throughout a person's career. Initially, factors that in�luence negotiations for pay and bene�its are (Brophy, 2004):

the strength of the job market the company's compensation policies the company's �inancial health the applicant's bargaining position, including offers from other companies; personal accomplishments, including degrees and awards; and success in previous jobs

Individual negotiations consist of face-to-face interactions, exchanges of letters and emails, telephone conversations, and, in some instances, a formal written contract specifying all the elements of an agreement. The two parties involved are the employee and one or more management representatives.

The majority of individual negotiations for pay and bene�its take place during the �inal stages of the hiring process. Normally, the management representative will be the �irst to ask about expected salary and other conditions of employment. When the question is posed during the employment interview, before the person has been selected for the position, the candidate should answer in a way that will not hurt his or her chances of obtaining the position. Advisable responses are that you are "open" or looking for a "competitive offer." Once the position has been offered, then more-concrete negotiations begin (Bovee & Thill, 2012). During the course of a career, additional negotiations takes place regarding pay raises, job assignments, and even when and how a person will retire (phased versus full).

Company to Company

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-2… 4/28

Digital Vision/Thinkstock

Environmental groups, as well as government agencies, engage in negotiations over the ways in which companies dispose of waste and use energy.

Two of the more common company-to-company negotiation issues concern a sale or a partnership. A sales transaction speci�ies the price, terms of delivery, procedures for handling defects and returns, and the manner in which any disputes will be resolved, including the state in which all legal matters, such as contract interpretation, would be resolved.

Sales negotiations occur in a variety of ways, including through conversations at trade shows, visits to a company by a sales representative, social encounters such as lunches and gol�ing events, and telephone conversations. Others transpire via mail, email, and through formal offers and contracts. The level of trust between the companies often dictates the manner in which bargaining will take place, including the communication venues to be used.

Companies form many types of partnerships. Examples are corporate sponsorships of various events and charities, cooperative advertising programs, and agreements to co-produce goods and services. Each involves a series of negotiation sessions to �inalize all arrangements. Often more than two parties are included. For example, Interstate Batteries maintains a relationship with NASCAR that features cooperative advertising and expense sharing with M&M's. Community events, such as a Fourth of July �ireworks display, may involve numerous partners.

Negotiations to develop partnerships use the same communication venues as those available for making sales. Informal talks can often lead to formal negotiations to establish a relationship. Effective bargaining during these sessions can create bene�its for both parties without any need for adversarial tactics. Negotiations can occur at any time during these relationships.

Company With Outside Groups

Managers often negotiate with outside groups that have interests in a �irm's operations. A union is an example of an outside group. Every company that has employees represented by a union will engage in negotiations. Contract bargaining can occur annually, or �irms can reach multiyear agreements with unions regarding wages, hours, and conditions of employment. Strict governmental regulations are in place to ensure that such negotiations proceed in as orderly a manner as possible.

Company representatives also may negotiate with governmental of�icials to obtain various contracts. These sales agreements, while highly regulated, can include bargaining sessions. Other negotiations with governmental agencies involve interpretations of regulations and mediation sessions when con�licts with other companies arise. Many such negotiations have occurred regarding federal pollution standards and company practices.

In certain circumstances, company leaders �ind it necessary to negotiate with members of special-interest groups. People for the Ethical Treatment of Animals (PETA) has engaged in sessions with members of pro�it-seeking companies regarding methods of killing and cooking chickens, the use of dogs and other animals in developing and testing cosmetics, and humane treatment of animals in �ilm-making, and with rodeo organizers. Other organizations have challenged how companies portray ethnic groups in advertising. Environmental groups, as well as government agencies, engage in negotiations over the ways in which companies dispose of waste and use energy.

Communication venues are established for negotiations in each of these company-to-outsider group interactions. These bargaining sessions often include sets of individuals, such as the bargaining team for labor and a separate team representing management in a union-management negotiation. The two sides often face each other across a bargaining table, creating a formal, perhaps adversarial, tone. Negotiations with governmental of�icials and special- interest groups range from informal, personal meetings to mediated sessions and courtroom encounters.

For Review

What three types of negotiations take place in the business community? (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm#)

Individual with company, company with company, company with other organization.

Concept Check

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-2… 5/28

Stockbyte/Thinkstock

Before beginning any actual negotiation, all sides should be able to say, "We're ready."

7.2 Negotiation Processes Learning Objective # 2: What steps and activities are involved in completing successful negotiations?

Effective bargaining begins with understanding how the process will work. Managerial negotiations with future and ongoing employees differ in format from those involving other companies or outside agencies. However, many of the activities are largely the same, including understanding the preconditions to negotiation, the stages involved, and the proper tactics to employ.

Preconditions to Negotiation

Before any bargaining process begins, managers should believe negotiation represents the best option. Table 7.2 identi�ies times when it is better to �ind some other approach. After considering these precautions, the preconditions to bargaining may be examined. Three preconditions are an understanding of the bargaining environment, the availability of bargaining resources, and the characteristics of the bargaining issue.

Table 7.2: When negotiation is NOT an option

The other side

Acts in bad faith (does not follow legal protocols) Makes unethical demands

Your side Is not well prepared Could simply wait and improve its position Does not have time to negotiate Might lose everything Will gain little or nothing

Sources: Lewicki, R. J., Barry, B., & Saunders, D. M. (2010). Negotiation (6th ed.). New York, NY: McGraw-Hill, p. 7. Levinson, J. C., Smith, M. S. A., & Wilson, O. R. (1999). Guerrilla negotiating: Unconventional weapons and tactics to get what you want. New York, NY: John Wiley & Sons, pp. 22–23.

The Bargaining Environment

Negotiation can take place only in the proper climate. When such a frame of mind does not emerge, negotiations become more likely to fail. The most important psychological elements are (Moore, 2011):

identi�ication of the participants readiness to negotiate willingness to agree on some issues willingness to settle

Managers should be aware of the various stakeholders and participants present, prior to any bargaining process. In the case of negotiations with outside agencies, for example, a company may seek to reach an agreement with a union, while remaining aware of governmental constraints, such as those related to bargaining in good faith, equal-opportunity legislation, and antitrust laws.

A stakeholder group consists of people with a vested interest in the outcome of a negotiation, as Chapter 1 describes. These individuals should tangibly demonstrate their readiness to be seated at the bargaining table. An individual or group conveys the readiness to negotiate by committing to conduct the needed investigation before any �irst meeting. A stakeholder should have adequate time to prepare a negotiation strategy. Before beginning any actual negotiation, all sides should be able to say, "We're ready."

Negotiation will not be possible unless some agreement on issues and interests exists. For example, an applicant should be able to agree with company leaders that hiring him or her at a given rate of pay and bene�its will bene�it the applicant and the company. Two companies should be able to agree that the sale of a product bene�its both organizations. The parties to a negotiation should be able to commit to a joint decision-making process based on such agreements (Kolb & Williams, 2003).

Negotiations succeed when participants want to settle. A negotiation will be doomed to failure if continuing a con�lict takes on more importance than settling. In essence, for an agreement to be reached, the disadvantage created by failing to �ind an agreement must be more signi�icant than keeping the con�lict going.

The Availability of Bargaining Resources

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-2… 6/28

Photodisc/Thinkstock

Participants in a negotiation should have access to suf�icient time and money to fully engage in a dialog. Additional bargaining resources include bargaining skills held by key negotiators. When one side's resources are inadequate or unequal to the other side's resources, this may impede effective negotiations and lead to greater disparity in the �inal outcome of the negotiation, producing win-lose results. The resources held by a group in a negotiation include a "means of in�luence" form of leverage, as Table 7.3 shows (French & Raven, 1959).

Table 7.3: Sources of in�luence in negotiations

Legitimate Superior position based on a governmental dictate

Ownership of a patent or similar protection

Contractual advantage from a previous negotiation

Individual with a speci�ic degree or status (e.g., CPA, JD)

Reward Access to additional business partners or customers

Establishing a basis for future agreements

Company's ability to pay and grant bene�its to individuals or companies

Coercion Loss of revenues

Loss of supplies

Damaged relations with customers

Damaged relations with governmental organizations

Individual's ability to seek employment elsewhere

Company's ability to terminate or not hire an individual

Expertise Presentation of factual evidence

Analysis by experts in the area or �ield

Individual with credentials that make him or her unique

Charisma Personal persuasiveness

Thought-provoking questions and discussion

Characteristics of the Bargaining Issue

The bargaining issue itself presents a potential roadblock to or opportunity to bargain. To become a viable bargaining issue, various characteristics of that issue must be in place. Among these are interdependence, the willingness to compromise, unpredictability of the outcome, negotiable issues, and participants holding the authority to decide.

Interdependence forms when an attachment of some kind between the parties exists. An applicant bargaining for salary has the knowledge or a skill that the organization needs, which creates the interdependence as part of the job search/employment offer process. Parties to a sale, such as a situation in which one company seeks to provide a service to another company, should in some way cause both sides to rely on each other in order to have their needs met or interests satis�ied. When one party to a bargaining arrangement �inds that it can satisfy its needs without the help or cooperation of the other, no real reason to negotiate exists.

In many negotiations, compromise may be necessary for the parties to reach an agreement. If one side determines that the other has "dug in" and no compromise will be possible, negotiation might not be the best option.

Parties negotiate when the outcome of an issue cannot be predicted. If one company knows that a lawsuit against another company only has a 50–50 chance of success,

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-2… 7/28

If one company knows that a lawsuit against another company only has a 50–50 chance of success, the �irm's management team may decide that its best interests are served by negotiating instead.

the �irm's management team may decide that its best interests are served by negotiating instead. The reason for the decision would be that, by negotiating, the company would receive at least some of what it wants; a court order could completely favor the other side. The same holds true when an individual considers walking away from a job offer, rather than taking a lower salary or reduced bene�its (Schalzki, 1981).

Negotiators must believe that acceptable settlement options can be discovered. Room for give-and-take must be present. When only win-lose settlement possibilities are apparent, the parties involved become more reluctant to enter into dialog.

In any negotiation, the participants involved must have the authority to make a decision, whether it is a hiring decision, sales agreement, or resolution with an outside agency. When they do not, or when a rati�ication process has not been established, negotiations will normally be limited to an information exchange between the parties (Lewicki & Hiam, 2006, pp. 40–73).

For Review

What three preconditions to negotiations should be examined to see if bargaining should take place? (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm#)

Three preconditions are understanding the bargaining environment, the availability of bargaining resources, and the characteristics of the bargaining issue.

Concept Check

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-2… 8/28

7.3 The Stages of Negotiation Learning Objective # 3: How can management communication techniques facilitate the stages of negotiation?

When two parties decide that negotiation represents the best option for settling an issue, the various states of negotiation can begin. Achieving results comes from careful management of the entire process. At the most general level, negotiation consists of three overall stages, the preliminary, bargaining, and ending phases. Each involves various activities. Table 7.4 presents elements of a three-stage model of negotiation.

Table 7.4: The stages of negotiation

Preliminary Stage Bargaining Stage Ending Stage

Prepare Framing Close

Open Discovery Follow-up

Consensus

Packaging

For Review

What are the three main stages of the negotiation process? (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.

The preliminary stage, the bargaining stage, and the ending stage.

Preliminary Stage

In the preliminary stage, two primary activities receive attention: preparation and opening. When managers plan thoroughly, the chances for achieving desired bargaining goals increase. The failure to plan provides the other party with a bargaining advantage that continues through the remainder of the process.

Preparation

Preparation begins at the point when management decides negotiations should go forward. Several principles guide preparations. Managers should identify and evaluate the receiver, sender, and purpose of the negotiation (Hynes, 2011, p. 245).

The receiver analysis involves discovering the type of person (and company) who will be sitting across the table. Some will be quiet and reserved; others will be bombastic and aggressive. Cultural differences can dictate negotiation styles in various regions of the country and in international settings. These include the degree of deference, eye contact, gift-giving, and silent pauses.

Analysis of the sender involves establishing the style that your side will use. Exuding con�idence constitutes a primary advantage in negotiation. Remember that body language communicates a great deal during a negotiation. When a negotiator rolls up his sleeves, removes his jacket, and pours a cup of coffee, the message conveyed is that he expects a long session. Nervous �inger-tapping or twirling a pencil suggests a level of nervousness and lack of con�idence (Ilich, 1983). Table 7.5 lists various styles and strategies related to negotiation.

Table 7.5: Negotiation styles

Surprise Quick new request; quick concession

Bluff Withhold information; act as though you have a stronger position than you do

Fait Accompli Bluf�ing that an agreement has already been reached that favors your side

Stacking Combine your idea, demand, or proposal with a reference to a similar situation

Screen Use a third party to negotiate

Take No Prisoners Try to dominate the other side by suggesting and leveraging a major power differential

Take It or Leave It A �inal offer; should only be used once

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-2… 9/28

iStockphoto/Thinkstock

A negotiator will often try to discover the BATNA of the opposing side in order to further expedite negotiations.

Source: Lewicki, R. J., & Littere, J. A. (1985). Negotiation. Homewood, IL: Richard D. Irwin.

Analysis of the purpose involves looking at what each side intends to achieve during the negotiation. A new employee seeks to reach the best wage and bene�it deal. Most of the time, employees are able to discover pay levels of co-workers, even when the company tries to maintain a closed pay policy. As a result, management may wish to keep the compensation level at a point where ongoing employees are not upset when they learn of the pay package. Bargaining during a sales call involves not only one transaction but also the potential for an ongoing relationship.

Also as part of the preparation process, two concepts take precedence. Negotiators need to know the maximum supportable outcome, which is the absolute most a side can ask for as an opening position, within reason. Second, the lowest supportable outcome constitutes the least amount or least favorable position a side will accept from a negotiation. Table 7.6 displays the interactions of these two concepts, which create the settlement range or bargaining zone.

Table 7.6: Maximum and lowest supportable outcome

Salesperson - Company 1 Purchasing Of�icer - Company 2

Maximum Supportable Outcome $1.5 million Lowest Supportable Outcome

Lowest Supportable Outcome $1.35 million Maximum Supportable Outcome

Settlement range or bargaining zone = $1.35 to $1.5 million

Closely related to the lowest supportable outcome is BATNA, or the best alternative to a negotiated agreement. It identi�ies the lowest acceptable value to a party as a substitute to a stalemate (Bazerman & Neale, 1992, pp. 67–68). BATNA allows the person bargaining to know when an offer is higher than one that would lead to an impasse, because it is above that "�loor" level.

For example, in the sales situation presented in Table 7.6, the representative of the selling company knows that $1.35 million constitutes the lowest supportable outcome, because it covers the company's shipping costs to send the items to another country. If Company 2's �inal offer is $1.3 million, the negotiator for Company 1 can walk away, knowing that a domestic �irm will pay $1.28 million for the items and that the company will not incur the same shipping costs. The domestic company offers the best alternative to a negotiated agreement with the foreign customer (Fisher, Ury, & Patton, 1992). A negotiator will often try to discover the BATNA of the opposing side, in order to further expedite negotiations.

Preparation includes establishing long-term goals such as trust and con�idence in the other party. Mutual principles and concerns begin with whether the relationship will

be adversarial or cooperative. One of the more destructive forces in the process takes place when the urge to win overwhelms rational thinking (Malhotra & Murningham, 2008). Preparation involves selecting approaches or procedures that lead to problem-solving whenever possible.

For Review

De�ine maximum supportable outcome, lowest supportable outcome, and BATNA. (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.

The maximum supportable outcome is the absolute most a side can ask for as an opening position, within reason. The lowest supportable outcome constitutes the least amount or least favorable position a side will accept from a negotiation. BATNA, or best alternative to a negotiated agreement, identi�ies the lowest acceptable value to a party as a substitute to a stalemate.

Opening

The opening begins when parties make initial contact in person, by telephone, by mail, or online. In this stage, negotiators seek to build rapport and try to establish a cordial relationship. Most negotiations begin with casual conversations about non-bargaining issues. Cultural and particular industry forces often impact and determine the length of these initial interactions.

At the beginning of a bargaining session, negotiators express the desire to reach an agreeable outcome. Announcing that your side is committed to following through the established procedures creates a more professional tone. Both sides should fully understand the processes that will be used (Moore, 2011). A standard opening includes the steps in Table 7.7.

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-… 10/28

Table 7.7: Opening negotiation procedures

Introduce the parties involved.

Parties make statements demonstrating the willingness to listen, share ideas, remain open to reason, and seek to bargain in good faith.

Establish guidelines for behavior.

State mutual expectations for the negotiations.

Describe history of problem and explain why there is a need for change or agreement.

Identify interests and/or positions.

De�ine issues and set an agenda.

Source: R. J. Lewicki, B. Barry, & D. M. Saunders (2010). Negotiation (6th ed.). New York, NY: McGraw-Hill, 41–70.

A negotiator should also understand that "no" may be the opening position or that the �irst offer made by the other side will often be above expectations. The bargainer or team should be wary of a "reluctant buyer or seller" ploy that involves deliberate stalling and transmitting the unwillingness to reach a quick agreement. A negotiator should be ready to respond to such tactics and any other complications. Developing methods to handle strong emotions is part of preparation for the opening (Shell, 1999). Tactics include suggesting a "time out," or cooling off period, using humor to diffuse the situation, or bringing in a third party to calm both sides, individually or collectively.

For Review

Brie�ly describe the two activities that take place in the preliminary stage of negotiation. (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.

In the preliminary stage, two primary activities receive attention: preparation and opening. During preparation, managers identify and evaluate the receiver, sender, and purpose of the negotiation. The opening begins when parties make initial contact in person, by telephone, by mail, or online. In this stage, negotiators seek to build rapport and try to establish a cordial relationship.

The Bargaining Stage

The bargaining stage includes the processes of framing, discovery, consensus, and packaging, as Table 7.4 notes. When negotiations are fully under way, one common approach involves starting with an issue in which there will be a strong impact on all participants, only minor disagreements are present, and a strong likelihood of agreement exists. Then, each party explains how it views the situation. At this point, the session will be more effective if someone encourages participants to express their sides in suf�icient detail to ensure that all involved understand the individual's or group's viewpoint. Each participant should have a chance to describe how he or she views the situation.

Effective negotiators engage in active listening, ask open-ended questions, and focus on collecting information, while asking questions that clarify the message and encourage the speaker with support and positive feedback (Brooks, 2003). When answering questions, follow two key guidelines. First, never answer until the question is fully understood. Second, take time to think through your answer. Table 7.8 indicates methods of response to bargaining questions.

Table 7.8: Responding to questions during negotiations

Method of Response Purpose

Complete and forthright answers To move forward to the next issue

Partial answer Tactfully avoid revealing damaging information

Clarify the question Then, answer the part that best serves your interests

Answer a different question To gain an advantage by what you say

Create a positive response Turn a disadvantage into an advantage

Sources: Putnam, L. L., & Poole, M. S. (1987). Con�lict and negotiation, in Jablin, F., Putnam, L., Roberts, K., & Porter, L. (eds.) Handbook of organizational communication. Los Angeles, CA: Sage Publications. Byrnes, J. F. (1987). Ten guidelines for effective negotiation. Business Horizons, May–June, 7–12.

Framing

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-… 11/28

Hemera/Thinkstock

Discovery involves reviewing the needs of parties that relate to disputed areas and looking for agreements in principle.

A bargaining session moves more ef�iciently when both parties begin by identifying speci�ic items to be discussed. A frame is a subjective mechanism through which negotiators can make sense of situations, leading them to pursue or avoid subsequent actions (Goffman, 1974; Bateson, 1972). The types of frames used in negotiations are substantive, outcome, aspirational, and loss-gain. A substantive frame identi�ies a primary point of disagreement. An outcome frame suggests what a negotiator seeks to achieve as a result of the process. An aspirational frame moves from one small issue to a larger set of interests. A loss-gain frame de�ines the risks and rewards associated with various outcomes (Lewicki, Barry, & Saunders, 2010). Issues should be framed to be presented in a nonjudgmental, neutral manner whenever possible. Beyond starting on an agreeable note, most negotiations will bring up issues about which the parties will disagree, creating the framing process.

As part of the initial process, both sides reveal information that bene�its their arguments and avoid revealing damaging information. Persuasion techniques are employed, including silence, verifying information, and recon�iguring arguments to best suit a party's position (Goldman & Rojot, 2003).

When in the framing phase, salespeople use a variety of techniques. Some attempt to control the agenda of the sales meeting by ensuring that only relevant information that pertains to the potential sale is discussed. Buyers may attempt to control the agenda as well. Either party may attempt to slice a deal by tabling issues on which they cannot reach agreement and instead focusing on smaller slices of the deal. They may also attempt to split the difference when arriving at a �inal deal. Here, they would focus on meeting halfway or somewhere in between the parties' desired outcome on subjects such as price, delivery demands, and other issues pertaining to the �inal agreement.

Discovery

During the discovery stage, parties try to generate options for settlement. Discovery involves reviewing the needs of parties that relate to disputed areas and looking for agreements in principle. Negotiators may consider breaking a major issue into smaller, more manageable issues and generating solutions for these. Discovery tactics are (Lewicki, Barry, & Saunders, 2010, pp. 71–106):

alternating proposals, allowing each side to "win" certain elements presenting position/counter-position arguments making trades or concessions for items of value trying to generate ideas that bene�it both sides

Tradeoffs and compromises are explored in the discovery phase. Negotiators avoid any attempt by the other side to rely on a "higher authority," such as, "My boss won't go for that offer," as a rationale for not meeting various negotiation points. Also, the effective bargainers are aware of the "vise" tactic, in which the other side continually uses phrases such as, "You'll have to do better than that," to put the squeeze on a bargaining position.

Discovery results in true give-and-take. As the two parties defend their areas of greatest interest, they can offer compromises on other matters. Unless or until a stalemate occurs, discovery continues.

Consensus

Consensus or a lack of agreement will be signaled in different ways. A lack of agreement will be indicated when one side concludes that an impasse has been reached. To handle an impasse, three approaches are to offer to set the issue aside and deal with other issues, change one of the negotiating points, or bring in a third party to seek a resolution.

The second type of signal notes that agreeable terms are within sight. When a negotiator says something along the lines of, "That sounds like something we can live with," the signal has been sent. When a union negotiator responds, "I think our members would ratify that proposal," a signal of potential consensus and agreement has been offered.

Packaging

Packaging begins after a signal has been sent that an agreement is possible. It takes place when negotiators assess �inal options for settlement. This includes a review of the interests of the parties involved and an analysis of how many interests can be met by the offered options. Part of assessing options includes the evaluation of costs and bene�its of selecting each option.

At that point, a party can revise bargaining strategies if necessary. Typically, one side's power increases by getting the other side to commit �irst. To move toward the �inal stage of negotiation, both sides should be willing to note agreement.

One method used to signify that an agreement has been reached involves writing a letter of intent. Often these take the form of a memo, rather than a full letter, and can be sent electronically. The purpose served will be to make sure no surprises result later (Byrnes, 1987). Verbal statements such as "Are we ready to act?" and "Have we got a deal?" indicate that the ending stage has been reached.

For Review

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-… 12/28

iStockphoto/Thinkstock

Many times, a handshake accompanies a close.

What four processes take place during the bargaining stage of a negotiation? (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.

The bargaining stage includes the processes of framing, discovery, consensus, and packaging.

Ending Stage

The ending stage can begin after the two parties completely agree to the alternative or set of alternatives. A sale reaches the ending stage when the terms, including price, delivery schedule, �inancing, and other matters have been �inalized. An agreement between a company and a union occurs when all issues present in the bargaining session are resolved. An individual negotiating for salary and bene�its reaches the ending stage when all elements of the employment contract have been agreed upon. Two elements of the ending stage are the close and the follow-up.

The Close

The parties should establish a procedural means to formalize the close. A close will take the form of a written memo or a legal contract, depending on the scale and scope of the agreement. Any written document should contain suf�icient detail to implement the agreement and handle any potential contingencies or complications. In many situations, monitoring protocols are established to make sure both sides comply with the terms of the agreement.

An individual negotiating for a job with a company has reached the close when a contract or memo spells out the date employment will begin, along with all of the details of the agreement. A close will often simply be a verbal commitment by the employer and applicant, but many such agreements are put in writing, especially for professional occupations.

To close a sale, a contract or similar document specifying the nature of the purchase will be signed or verbally agreed upon by both parties. Monitoring in a sales situation includes updates regarding when orders have been shipped and received. The contents sent in a shipment are noted in a bill of lading. A performance bond also helps guarantee that a project will be properly completed, as with construction of a building or facility.

Mergers, joint ventures, and more complex agreements between companies require a more-detailed close. Normally, notice of a �inal agreement or close occurs when the two organizations have formally signed legal documents creating the relationship.

For a union-management agreement to close, the bargaining contract has been agreed upon by the negotiators and then a vote by union members will certify the contract. In a formal ceremony, negotiators for both sides will sign the �inal document. Monitoring of union-management agreements normally includes speci�ied procedures for �iling grievances regarding contract violations or other matters of contention or disagreement.

Many times, a handshake accompanies a close. Congratulations are offered, and both parties can relax and enjoy the accomplishment of completing an acceptable agreement.

Follow-up

The standard methods used to follow up include emails, phone calls, letters, and other interactions. These contacts help reassure the other side that the agreement is acceptable and that the terms will be carried out. Then, over time, further efforts can be made to continue the relationship through phone calls, email, videoconferences, mail, and personal visits.

In summary, effective negotiations take place when both sides take seriously each aspect of the three-step process. Careful preparations include analysis of the receiver, sender, and the purpose of the negotiation. The bargaining stage plays out through professional framing, discovery, consensus, and packaging, relying on persuasion rather than taking matters personally. A cordial ending involves a ceremonial close, along with all necessary paperwork and efforts to sustain the relationship.

For Review

What two activities are involved in the ending stage of the negotiation process? (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.

Two elements of the ending stage are the close and the follow-up.

Concept Check

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-… 13/28

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-… 14/28

7.4 Con�lict and Management Communication Learning Objective # 4: What forms of con�lict exist in organizations, and what roles do communication channels play in those con�licts?

Interpretations of the term "con�lict" have taken several directions in the past few decades. One early perspective suggested that con�lict constitutes a negative force. Words such as "violent," "destructive," and "angry" portray this point of view. As time passed, con�lict began to be conceptualized as a continuum from mild disagreement to major confrontations, but still with a negative connotation. More recently, concepts of con�lict have evolved from considering it as something to be avoided or eliminated to viewing con�lict as an inevitable, but manageable, process. Some see con�lict as a driving force that leads to innovation and much-needed change (Fink, 1968; De Dreu & Van de Vliert, 1997).

For our purposes, con�lict will be de�ined as a circumstance in which one party negatively affects or seeks to negatively affect another party in both observable and perceived ways (Thomas, 1992; Wall & Callister, 1995). Some forms of con�lict take place even when it would be dif�icult to point it out as an observable event. In others, the manifest strife will be readily apparent.

Con�lict can be compared to another concept, competition, which is a situation in which all parties in an event or situation attempt to do their best, and the winner emerges as the person or group with the highest level of performance. A sales contest between individuals or teams is a competition; a confrontation between two members of a sales force in which one accuses the other of "stealing a sale" becomes a con�lict situation.

Con�lict has been conceptualized as taking two forms. Functional con�lict serves the organization's interests in some way. An example of functional con�lict would be one in which improvement in performance or greater cooperation among individuals or groups takes place. Other terms used to describe functional con�lict include constructive, cooperative, and substantive con�lict (McGrath, 1984).

Dysfunctional con�licts include the destructive activities that hinder group or organizational performance (Amason, 1996). Poor organizational communication can create dysfunctional con�licts. Quality communication systems assist in developing and resolving functional con�licts, and aid in avoiding many con�licts.

For Review

De�ine con�lict, functional con�lict, and dysfunctional con�lict. (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.

Con�lict is a circumstance in which one party negatively affects or seeks to negatively affect another party in both observable and perceived ways. Functional con�lict serves the organization's interests in some way. Dysfunctional con�licts include the destructive activities that hinder group or organizational performance.

Levels of Con�lict

Many forms of con�lict exist. Members of the business community should be aware that four levels of con�lict occur in the workplace. Resolving con�lict cannot occur until the level has been properly identi�ied. The four levels of con�lict are:

1. between individuals 2. between groups or departments 3. between companies 4. with the government

Communication processes often accompany the various forms of con�lict. Table 7.9 lists the communication venues that can become part of both functional and dysfunctional con�licts.

Table 7.9: Communication channels and con�lict

Interpersonal Group Between Companies With the Government

Face-to-face verbal Meetings Advertising Meetings with of�icials

Memos and letters Informal channels Media releases Media releases

Telephone Social media Court documents Court documents

Email and text Email and memos Social media Social media

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-… 15/28

Jupiterimages/Thinkstock

Workplace bullying is repeated, health-harming mistreatment of one or more persons. Bullying involves one or more perpetrators and takes the form of verbal abuse, offensive conduct, and work interference.

Social media Meetings with supervisors

For Review

What four levels of con�lict take place in business settings? (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.

The four levels of con�lict are those between individuals, between groups or departments, between companies, and with the government. Intergroup con�lict transpires between various groups or departments.

Con�licts Between Individuals

Con�licts between individuals, or interpersonal con�licts, take place between employees both on- and off-site. Personality con�licts often result from workplace incivility and risky communication. Examples of incivility and risky communication are: sexually inappropriate comments, racial or ethnic slurs, ridicule of older or younger workers, derision based on sexual orientation, and insensitive comments about physical or mental disabilities (Blau & Anderson, 2005).

Workplace bullying is repeated, health-harming mistreatment of one or more persons. Bullying involves one or more perpetrators and takes the form of verbal abuse, offensive conduct, and work interference (Workplace Bullying Institute, 2011). Workplace bullying can create another forum for con�lict. Reyner & Hoel (1997) identify �ive types of workplace bullying, including the items in Table 7.10.

Bullying can happen at the same organizational rank (employee to employee) or involve hostility by a supervisor toward an employee. The tactics in Table 7.10 lead to various types of con�licts, some of which go unresolved, as the individual is too intimidated to react. Others lead to withdrawal behaviors, including increased absenteeism and the search for a different job.

Table 7.10: Types of workplace bullying

Threats to professional status Belittling opinion

Public professional humiliation

Accusation regarding lack of effort

Threats to personal standing Name-calling

Insults

Intimidation

Devaluation with regard to age

Isolation Preventing access to opportunities

Physical or social isolation

Withholding of information

Overwork Undue pressure

Impossible deadlines

Unnecessary disruptions

Destabilization Failure to give credit when due

Meaningless tasks

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-… 16/28

Removal of responsibility

Repeated reminders of blunders

Setting up to fail

Source: Rayner, C., & Hoel, H. (1997). A summary review of literature relating to workplace bullying. Journal of Community and Applied Social Psychology, 7(1) 191–191.

Con�licts between individuals play out in many ways, as do the bullying tactics in Table 7.10. Face-to-face confrontations are the most visible and require the most direct, quick action. Other interpersonal con�licts take place in the form of email exchanges, comments made in meetings, questions and arguments following presentations, text messages, and sometimes hostile memos and letters. Telephone skirmishes are also common in commerce. More recently, postings on Facebook, in Twitter accounts, and through other social media indicate the presence of con�lict. Remember that anything you post electronically, such as an email or text, is typically considered the property of the company. As with any message you put in writing, it can provide evidence of your misbehavior, inappropriate use of language, and other transgressions.

Groups and Departments

Intragroup con�lict refers to incidents between members of one group. Disagreements about goals, methods of operation, and who will be the leader create intragroup con�licts. The end result can be poor decisions and ineffective group functioning, when con�licts are not properly managed and resolved (Bazerman & Neale, 1992). Intragroup con�lict takes the forms of confrontations during meetings, between group members in other locations (face-to- face) and also by phone and email, and through social media. Many times, informal communication or gossip becomes part of the con�lict process.

Intergroup con�lict transpires between various groups or departments. Besides con�licts between departments within companies, other factions can emerge around any common point between employees (e.g., ethnicity, gender, position of power, etc.) and this can become the basis for various battles. Intergroup con�licts emerge when disagreements about goals, differences of opinion about which group should be assigned a project or task, or budget allocations become the focus of attention. Intergroup con�licts may be brought to the attention of management through memos and emails, and by asking for personal contacts with managers at high levels to present grievances regarding the conduct of the other group or department.

For Review

Describe intragroup and intergroup con�lict. (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.

Intragroup con�lict refers to incidents between members of one group. Intergroup con�lict transpires between various groups or departments.

Con�licts Between Companies

Numerous con�licts emerge between companies over proprietary matters. Often, con�licts involve advertising claims or other business tactics deemed unfair or designed to compete in unfair, illegal, or unethical ways. In those circumstances, company leaders engage in private negotiations, issue public statements and releases, and request the intervention of entities such as the Better Business Bureau and Federal Trade Commission.

As an example of con�licts between organizations, the toy company Mattel employed an individual named Carter Bryant for many years. Bryant left the company and became part of MGA Entertainment, where he designed and developed the popular Bratz line of dolls to compete with Mattel's Barbie brand. Mattel's executives claimed that Bryant came up with the idea for the Bratz line while still employed at Mattel. After intense confrontations, the matter went to court. Mattel won a $100 million judgment against MGA Entertainment; however, no punitive damages were assessed. Both sides claimed victory as a result (WCCO, 2010).

A wide range of additional con�licts are possible beyond disputes over products. Companies may dispute rights to other properties, employment of rival workers, theft of trade secrets, and clash over suppliers and retail outlets. The issues and communication tactics vary by the type of engagement involved.

Con�licts With the Government

Many companies engage in various types of con�lict with governmental of�icials and agencies. Disagreements over regulations, taxes due, and meeting various regulatory requirements can spur clashes with individuals from the government. These include encounters with local, state, and national of�icials, depending on the size and scope of the company and the issue involved. Also, some company managers in international �irms cope with governmental of�icials from other countries.

Domestically, con�licts arise with representatives of the Environmental Protection Agency, Occupational Safety and Health Administration, Internal Revenue Service, Food and Drug Administration, and Federal Trade Commission. Communication venues with these individuals include formal written reports, in- person meetings, telephone conversations, email correspondence, courtrooms, and formal mediation situations. An increasing number of companies take disputes with governmental organizations to the public through public relations releases and social media campaigns.

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-… 17/28

iStockphoto/Thinkstock

Con�licts between companies and with the government may involve the use of formal mediation.

Each of these four types of con�lict requires an intervention. In the case of an intrapersonal con�lict, a counselor or adviser may assist. Intragroup and intergroup con�licts may be resolved in a variety of ways, most notably by the intervention of managers. Con�licts between companies and with the government often result in reliance on attorneys to assist in reaching an acceptable solution. Managers choose the most appropriate method for dealing with each problem as it arises.

Stages of Con�lict

In 1967, Louis Pondy developed an often-used model of con�lict. A modi�ied version appears as Figure 7.1. Pondy's model notes the presence of the con�lict cycle, in which individuals or groups engage in a series of con�licts, even when they are only spectators. This causes them to become increasingly sensitized to the events, which in turn makes subsequent con�lict more likely. After a series of con�licts has been resolved, the company enters a more tranquil period. During that time, individuals and groups may become more patient with each other, and the net result will be reduced numbers of potential and open con�licts. Managerial skill and intervention can break the cycle of increasing con�lict.

Figure 7.1: An adaptation of Pondy's con�lict model

This adapted version of Pondy's model shows the con�lict cycle, which starts with latent con�lict or all the potential sources of the con�lict. The cycle continues with felt and perceived con�licts. Then comes open con�lict, which is the confrontation resulting from escalation of the issue. After open con�lict, resolution must take place. The aftermath of the con�lict then cycles back to latent con�lict again.

Adapted from: L. R. Pondy (1967). Organizational Con�lict: Concepts and Models. Administrative Science Quarterly, 12 (September), 296–320.

As shown in Figure 7.1, latent con�lict represents all the potential sources of con�lict at the individual or group level. These potential sources may or may not erupt into open confrontations. Some problems may exist for years without ever becoming manifest. Others may take a "fast track" and quickly develop into altercations. Table 7.11 lists the potential sources of con�lict within an organization. A lack of communication or poor communication can worsen latent con�licts. Misinterpreted messages often heighten personality issues and other disagreements. Posts on social media can also exacerbate any latent sources of con�lict.

Table 7.11: Sources of con�lict

Individual Group or Departmental

Job assignments Group task assignments

Performance appraisals Budgets/resource allocation

Promotions Personalities of group members

Pay raises Dependence/bottlenecks

Personality issues and incivility Goals

Dependence/bottlenecks Communication breakdown

Goals Ethical issues

Status differences

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-… 18/28

Communication breakdown

Power differences

Ethical violations

Inappropriate use of social media

Sources: Thomas, K. W. (1994). Con�lict and negotiation processes in organizations, in Dunnette, M. D., & Hough, L. M. (eds.) Handbook of Industrial and Organizational Psychology, second edition, Vol. 3. Palo Alto, CA: Consulting Psychologists. Jehn, K. A. (1994). Enhancing effectiveness: An investigation of advantages and disadvantages of value-based intragroup con�lict. International Journal of Con�lict Management, 5(3) 223–238. Baack, D. (1998). Organizational behavior. Houston, TX: Dame Publications, 406–408.

Felt con�lict occurs when people know something is wrong but cannot pinpoint the source. It is not unusual to have the experience of walking into a room and feeling immediately that something is wrong without knowing the actual problem. That point is the felt con�lict stage.

Perceived con�lict means that those near a con�lict know the issues and the people involved, yet do not feel discomfort from it. In essence, the con�lict is "someone else's problem." Often perceived con�licts appear in other departments or parts of the organization.

When two individuals or parties become engaged in a con�lict, perceptions play major roles. Inaccurate perceptions of the other side's position or of the issue at hand lead to inaccurate mutual perceptions in which resolution becomes increasingly dif�icult (Hynes, 2011). In essence, as felt and perceived con�licts intensify, perceptions become distorted. The tendency shifts toward interpreting people and events as either with one side or against that side. Thinking reverts to more stereotypical and biased forms that favor a person's viewpoint. This sets the stage for more-open con�lict.

Open con�licts appear as showdowns, confrontations, and other outward signs. Often an open con�lict results from ongoing escalation of the issue. As this takes place, communication between the parties decreases, issues become blurred by generalizations and blanket statements, such as "You always . . ." or "You never . . ." Parties to the con�lict lock into positions and tend to magnify differences and minimize similarities between the two sides.

Manifest con�lict behaviors include yelling, loud arguments, and violence toward others at the individual level and work slowdowns, strikes, and deliberate rules violations at the group level. Evidence of con�lict in meetings or presentational formats can be revealed through the questions audience or team members pose. Controlling questions take the form of mini-lectures in which one side of an argument or disagreement seeks to dominate the other. Hostile questions aggressively point out the con�lict at hand (Munter, 2012). Other forms of manifest con�lict are found in memos, emails, and phone exchanges between the parties. At that point, con�lict resolution must take place. A manager or arbiter will need to step in.

For Review

What are the stages of the con�lict cycle? (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.

Latent con�lict, perceived and/or felt con�lict, open con�lict, con�lict resolution, and con�lict aftermath.

Concept Check

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-… 19/28

Eyecandy Images/Thinkstock

Con�lict resolution is an important management communication activity.

7.5 Con�lict Resolution Learning Objective # 5: What methods are available to resolve con�licts?

Con�lict resolution includes an understanding of the concerns of the parties. Both concerns about personal outcomes and concerns about the other side's outcomes affect the nature of the con�lict. Figure 7.2 lists the potential responses.

Figure 7.2: Responses to concerns

Both concerns about personal outcomes and the other side's outcomes affect the nature of the con�lict and subsequent responses.

When one side has little concern about the other's outcomes, two responses are contending and inaction. Contending or competing occurs when one side fully pursues its outcomes with no regard for the outcomes of the other side. Other terms associated with contending are dominating and forcing (Rahim, 1985). Forcing expresses a high concern for production with low concern for people (Hall, 1986). With this approach, one sees stronger tactics, such as threats, intimidation, and unilateral action.

Inaction or avoiding is withdrawal or remaining passive during the con�lict. The passive party has little regard for its own outcome and is not concerned about the other's outcome. Some authors equate inaction or avoiding with a low concern for people and a low concern for production in the workplace (Blake & Mouton, 1970). In response, one side retreats from the con�lict.

A third response involves circumstances in which concerns for the other's outcomes are high. Two possible actions are yielding and problem-solving. Yielding or accommodating involves seeking to help the other side achieve its outcomes with little care about one's own outcomes. Yielding can also be termed obliging or smoothing (Rahim, 1985). It occurs when one party has a high concern for people and low concern for production (Thomas & Kilman, 1974).

Problem-solving or collaborating occurs when high concern for the other's outcomes accompanies high concern for one's own outcomes, and when the parties share high concerns for both people and production (Blake & Mouton, 1970). The goal becomes a win-win solution. Problem-solving has also been labeled as an integrating approach.

When moderate levels of concern emerge for both personal outcomes and the other side's outcomes, and concerns for people and production are also moderate, the most common approach involves compromising. A compromise becomes more likely when consensus cannot be reached, the goals of the two parties are not strongly connected, and the two sides hold equal levels of power.

Managers normally have the responsibility of discovering the relative positions of the two sides to a con�lict. In order to resolve the con�lict, managers try to identify the level of give-and-take that will be possible by assessing the strength of commitment each side has to its position. More effective negotiations or resolutions then become possible. Then, the venue and method for con�lict resolution can be chosen. Individual meetings and group settings can accommodate con�lict resolution.

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-… 20/28

For Review

What are the �ive main responses possible in a con�lict resolution, based on levels of concern for others? (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.

Contending/competing, inaction/avoiding, yielding/accommodating, problem solving/collaborating, and compromise.

The Steps of Con�lict Resolution

A manifest con�lict often requires a cooling-off period before any attempt at resolution can start. When emotions are high, reasonable dialog will be unlikely. When an arbiter or manager surmises that both sides have suf�iciently calmed down, con�lict resolution can commence. The steps of the con�lict resolution process are:

1. Identify the parties involved. 2. Identify the issues. 3. Identify the positions of the parties. 4. Find the bargaining zone. 5. Make a decision.

Managers identify the parties by investigating whether a con�lict involves individuals or groups. Identifying the issues takes time. Often a con�lict becomes manifest through an unrelated issue. When two employees become involved in a shoving match over a space in the parking lot, the real con�lict may be that one person was passed over for a promotion that was given to the person who "stole" his parking space.

When identifying the positions of the parties, a two-person or two-group con�lict should have a fairly straightforward analysis. Many times, however, a problem or concern exhibits many facets, and the net result will be that several people or coalitions have some sort of vested interest. In that circumstance, the moderator tries to determine the agendas of each party.

The bargaining zone may be kept con�idential, presented openly, or can be deciphered by a third party. In a con�lict resolution, the bargaining zone represents the settlement range in a negotiation, or the boundaries of acceptable solutions for both sides. It consists of the area in which give-and-take can be carried out. At times, no such range may be found; one side will win and the other will lose. Table 7.12 suggests key negotiation techniques when seeking to resolve a disagreement.

Table 7.12: Negotiation techniques during con�lict resolution

Focus on ideas and information rather than personalities

Find areas of agreement

Deal with important rather than trivial issues

Discuss potential tradeoffs

Identify objective criteria when assessing solutions

Find ways to move on following a resolution

Source: Andrews, D. C., & Andrews, W. D. (2004). Management communication: A guide. Boston, MA: Houghton Mif�lin Company, 150–152.

Making the �inal decision determines the outcome of the con�lict. A win-win solution allows all sides to make gains in the con�lict resolution. Win-win solutions can occur only when four conditions have been met (Zand, 1972):

1. The parties believe cooperation will be better than con�lict. 2. The parties trust each other. 3. Status differences between the parties have been minimized. 4. Mutually acceptable solutions can be found.

A win-lose solution means one side gains the advantage over the other. A lose-lose, or compromise, means both parties gain on some issues but lose on others (Rackham, 1976).

When the result of a con�lict resolution has been well handled, bene�its may appear. Table 7.13 lists some of the positive outcomes associated with dealing directly with con�lict. These occur at the interpersonal, intergroup, and intragroup levels.

Table 7.13: Bene�its of dealing directly with con�lict

Individual

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-… 21/28

Stronger relationships with co-workers

Increased self-respect for taking action

Personal growth and development in understanding how you responded

Organizational

Increased ef�iciency and effectiveness following effective resolution

Spurs creativity

Allows for synergy and teamwork among employees

Source: O'Rourke, J. S. IV (2010). Management communication: A case-analysis approach (4th ed.). Upper Saddle River, NJ: Prentice Hall.

For Review

What are the steps of con�lict resolution? (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.

The steps of the con�lict resolution process are: Identify the parties involved. Identify the issues. Identify the positions of the parties. Find the bargaining zone. Make a decision.

Con�lict Outcomes

The goal of any con�lict resolution should be to reach a functional settlement. Three desired outcomes of con�lict resolution are (1) agreement, (2) stronger relationships, and (3) organizational learning. Agreement has been achieved when both sides believe a settlement was fair or equitable. Stronger relationships emerge when both parties try to build trust and goodwill for the future. Organizational learning takes place when an individual or group achieves greater self-awareness and/or better understands how to �ind creative solutions to problems. While desirable, these goals will be dif�icult to achieve. Many times, the negative aftereffects of con�lict, as listed in Table 7.14, become the result.

Table 7.14: Potential negative aftereffects of con�licts

Anger, revenge, continuing attempts to make the other side look bad

Noncompliance with orders and decisions

Reduced effort/passive resistance

Empire building, withholding information, territory defense

Increasingly legalistic approach to tasks and assignments

Withdrawal behaviors such as daydreaming or meeting in groups to visit

New lobbying efforts

Sarcasm in front of the mediator

Increased sensitivity to statements and comments

Effective management of con�lict includes two primary activities. The �irst involves managers actively analyzing potential sources of con�lict at all times. Then reducing, modifying, or removing the source can be accomplished. Second, managers should seek to become adept con�lict arbiters. Remember that impartiality, a sense of humor, and a calm disposition are major assets in con�lict resolution.

For Review

What bene�its are associated with dealing directly with con�lict? (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-… 22/28

For individuals, there can be stronger relationships with co-workers, increased self-respect for taking action, and personal growth and development in understanding how you responded. For organizations, there can be increased ef�iciency and effectiveness following effective resolution, as well as greater creativity, and it allows for synergy and teamwork among employees.

What negative effects can accompany a con�lict resolution? (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.

The potential negative aftereffects include: anger, revenge, continuing attempts to make the other side look bad, noncompliance with orders and decisions, reduced effort/passive resistance, empire-building, withholding information, territory defense, an increasingly legalistic approach to tasks and assignments, withdrawal behaviors such as daydreaming or meeting in groups to visit, new lobbying efforts, sarcasm in front of the mediator, and increased sensitivity to statements and comments.

Concept Check

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-… 23/28

7.6 Chapter Review Negotiation is a give-and-take decision-making process involving interdependent parties with differing objectives or outcome preferences. Distributive negotiations involve a single issue and a zero-sum game in which one side's gains becomes the other side's losses (win-lose). Integrative negotiation resembles a problem-solving agenda in which two or more sides try to obtain a settlement that bene�its all sides. Negotiations take place between individuals and companies, between companies, and when companies bargain with outside groups such as unions, the government, or special interests.

Prior to entering a negotiation, managers should believe it represents the best option. By studying the bargaining environment, the availability of bargaining resources, and the characteristics of the bargaining issue, the preconditions to negotiation can be met.

The three stages of negotiation are the preliminary, bargaining, and ending phases. In the preliminary stage, the maximum supportable outcome and lowest supportable outcome de�ine the settlement range or bargaining zone. This zone for each side can be kept con�idential or shared openly across the bargaining table. BATNA represents the best acceptable alternative to a negotiated agreement, which speci�ies the lowest acceptable value to a party as a substitute to a stalemate. Bargaining consists of framing, discovery, consensus, and packaging. The ending stage includes the close and efforts to sustain a future relationship.

Con�lict is a circumstance in which one party negatively affects or seeks to negatively affect another party in both observable and perceived ways. Functional con�lict occurs when the organization's interests are served in some way. Dysfunctional con�lict includes the destructive activities that hinder group or organizational performance. Con�licts occur between individuals, between groups or departments, with other companies, and with the government. The stages of con�lict are latent, perceived, felt, and open phases.

Responses to con�lict are determined by the level of concern for others versus concern for one's own side. Responses include contending/competing, inaction/avoiding, yielding/accommodating, problem-solving/collaborating, and compromise. The steps of con�lict resolution begin with identifying the parties involved. Then, a manager or someone who intervenes identi�ies the issues, the positions of the parties, and attempts to discover the bargaining zone. Finally, a decision will be reached, including win-win, win-lose, and lose-lose options. Con�licts offer both potential bene�its and problems, depending on how they arise and how they are settled.

Key Terms

BATNA (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section

The best alternative to a negotiated agreement that identi�ies the lowest acceptable value to a party as a substitute to a stalemate.

con�lict (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section

A circumstance in which one party negatively affects or seeks to negatively affect another party in both observable and perceived ways.

distributive negotiations (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section

A negotiation involving a single issue and a zero-sum game in which one side's gains become the other side's losses (win-lose).

dysfunctional con�licts (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section

Con�licts that include the destructive activities that hinder group or organizational performance.

functional con�lict (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section

Con�lict that occurs when the organization's interests are served in some way, such as improvement in performance or greater cooperation among individuals or groups; also called constructive or cooperative con�lict.

integrative negotiation (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section

A problem-solving negotiation agenda in which both sides try to obtain a settlement that bene�its both, or a win-win solution.

intergroup con�lict (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section

Con�licts that take place between various groups or department over matters such as disagreements about goals, differences of opinion about which group should be assigned a project or task, or budget allocations.

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-… 24/28

intragroup con�lict (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section

Incidents between members of a group, including disagreements about goals, methods of operation, and who will be the leader.

lowest supportable outcome (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section

The least amount or least favorable position a side will accept from a negotiation.

maximum supportable outcome (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section

The absolute most a side can ask for as an opening position, within reason.

negotiation (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section

A give-and-take decision-making process involving interdependent parties with differing objectives or outcome preferences.

stakeholder group (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section

A group of people with a vested interest in the outcome of a negotiation.

workplace bullying (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section

Repeated, health-harming mistreatment of one or more persons by one or more perpetrators that takes the form of verbal abuse, offensive conduct, and work interference.

Analytical Exercises

1. The past several chapters have examined channel richness in terms of various media, including face-to-face interactions, telephone conversations, emails, teleconferencing, letters, memos, reports, and presentations. Discuss the role and importance of channel richness in negotiations in these circumstances: a. Individual bargaining for wages and working conditions b. Airline companies seeking to form an international partnership c. Union-management bargaining

2. Describe the potential for con�lict and the types of con�lict that might be expected to emerge in the following negotiations. Then explain the most likely channels of communication to be used in each circumstance. a. individual bargaining for wages b. sales call—company to company c. company leaders with union d. company leaders with the government e. company leaders with leaders of a special-interest group

3. The �ive sources of in�luence in negotiations include legitimate, reward, coercive, expertise, and charisma. Explain how these would be present for both sides of a negotiation in the following bargaining circumstances. Then explain which channels of communication should be used in the negotiation. a. successful CEO negotiating to become CEO of a different company b. Intel negotiating to sell its processors to a new computer company c. United Auto Workers negotiating with General Motors, which is seeking to reduce pay and bene�its to stay in business d. Major �inancial institution bargaining with the United States government for a loan to maintain operations

4. Make a chart that explains the potential for con�lict, the type of con�lict to be expected, and the channels of communication that should be used in the following stages of negotiation:

Preliminary Stage Bargaining Stage Ending Stage

Prepare Framing Close

Open Discovery Follow-up

Consensus

Packaging

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-… 25/28

5. At times, a con�lict stands a better chance of effective resolution when a third party intervenes. Alternative dispute resolution attempts to incorporate more user-friendly methods of dispute resolution, seeking to avoid adversarial approaches. The methods used in this approach include facilitation, conciliation, peer review, ombudsman, mediation, and arbitration. Facilitation involves a third party urging the two sides to meet and to deal directly in a constructive, positive fashion. Conciliation uses a neutral third party who acts informally as a communication conduit to help resolve a dispute without directly meeting. Peer review asks a panel of trustworthy co-workers who can remain objective to render a nonbinding verdict or opinion about how the con�lict should be resolved. An ombudsman will be a respected employee who will hear both sides of an argument and attempt to arrange a solution that is acceptable to both sides. Mediation employs a trained arbiter to �ind innovative solutions to the con�lict. Arbitration retains a third party who will operate in a formal, court-like environment and will hear testimony and evidence before rendering a judgment about how the con�lict should be resolved. Describe three circumstances in which these options would be better than a manager stepping in to resolve a con�lict.

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-… 26/28

7.7 Case Studies

Video Case Study: American Airlines: Management vs. Labor

After an executive bonus scandal at American Airlines, the new CEO discusses the ongoing process of communication and negotiation between workers and management.

1. What are the major areas of con�lict between managers and unions at American Airlines?

2. How has CEO Gerard Arpey managed this con�lict? How have other managers dealt with the con�lict?

3. What roles do trust and mistrust play in this con�lict situation?

Case Study 1: Cutting the Best Deal

Jennifer Swann faced one of the bigger decisions in her young life. She graduated college with a degree in physiology but changed course and became a massage therapist instead. She built a solid clientele list while working in a local beauty salon, HairPros. She paid a monthly rental fee for booth space and in exchange for some telephone support in terms of employees taking messages. More important, the salon sold gift certi�icates on her behalf, which greatly increased her business, especially during the holidays.

Tragically, a �ire destroyed the HairPros facility. After careful consideration, its owner, Bruce Penske, decided to relocate to a more upscale part of the city rather than to rebuild on the current lot. As part of the moving process, Bruce also felt it was time to renegotiate his agreement with Jennifer.

Meanwhile, Jennifer had taken the initiative to rent a separate space during the initial period in which HairPros was closed. She informed her clients that they could receive massage at the same rate in her temporary location, which helped maintain her income. She no longer had the advantage of phone service, but had mostly relied on her own cell phone to make appointments for the past year. She was concerned about losing gift-certi�icate business. At the same time, the rental for her temporary of�ice was lower than the amount Bruce had charged, and she was able to set her own hours. She did not tell Bruce about her temporary of�ice for the �irst three weeks following the �ire.

After a month had passed and HairPros was about to resume operations, Bruce offered Jennifer a new agreement. He asked her to raise her rates for all her services. In exchange, he was willing to lower her rental fee and pay her a small amount to supervise that part of his business. He noti�ied Jennifer of his plans to hire a second therapist, as the new facility would have two rooms. The new therapist would charge a lower rate per session. Jennifer would have �irst choice of rooms.

Jennifer worried that most new business, including the part that came from gift-certi�icate sales, would go to the second therapist. She also wondered if the modest increase in her rates would affect her regular customers. At the same time, she worried that "going solo" by

Am erican Airlines: Managem ent vs. Labor From Title: Inside American Airlines (https://fod.infobase.com/PortalPlaylists.aspx?

wID=100753&xtid=39098)

  0:00 / 4:34 1x © Inf obase All Rights Reserv ed Length: 04:34

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-… 27/28

staying in her temporary location and cutting ties with HairPros would be a risky move. She would no longer have referrals from hairstylists in the same location, several of whom were her clients.

Review Questions

1. What are the bargaining issues in this scenario? 2. What channels of communication should Bruce and Jennifer use while negotiating their new arrangement? 3. What would de�ine the settlement zone in this situation? 4. What should Jennifer do? Defend your answer.

Case Study 2: Meet the New Boss

Winston's Cleaning Service had enjoyed a long run as the premier clean-up company in the greater Cincinnati area. Myron Winston founded the company three decades earlier and built the business through careful attention to customer and employee needs. He was well known for giving unscheduled bonuses when he believed an employee or team had gone above and beyond to keep a client happy. The local Chamber of Commerce had recognized Winston for building the city's "Most Respected Minority-Owned Company."

Winston's Cleaning Service served a variety of local �irms. Shifts began at 6 p.m. as crews would head to of�ice buildings, banks, and other facilities that closed earlier in the day. Shifts ended at 2:00 a.m. Employees worked �ive days per week, with either Saturday or Sunday off, along with one weekday. They received a week of paid vacation after one year of service, two weeks per year for two to �ive years on the job, and three weeks per year for any time after �ive years. Wages were slightly above prevailing local rates for comparable work.

When Myron Winston retired, his son Tyler Winston took over the role of top manager. Unfortunately, after only three years in the role, he was forced to step down because of health problems. He did retain ownership of the company. The new company manager was promoted from the ranks. Billy Branton was known for his willingness to tackle the most repugnant tasks, including sewage spills and other nasty assignments. He was always the �irst to arrive and the last to leave for a shift.

It did not take long for Branton to make his mark. He began assigning workers to come in for �ive consecutive days, even when this meant the worker had to be on the job over the weekend.

He also tended to be harsh and critical about poor performance, rather than excited and supportive for superior work. It did not take long for employee grumbling to grow.

A group of employees contacted Tyler Winston about the situation. They expressed concern that Branton was gradually changing the culture of the company. They carefully noted that Branton did not seem to value their efforts in the same way that Tyler and Myron Winston had over the years. Tyler promised to visit with Branton to discuss the issues.

Two weeks later, however, the situation reached a boiling point. Branton announced that there would be no further raises until companywide performance improved. He stated that there was too much malingering at various sites, making jobs take too long. Then, Branton noti�ied employees that he had scheduled shifts for Thanksgiving night, Christmas Eve and Christmas night, as well as New Year's Eve and New Year's night, because he had contacted organizations and companies that wanted clean-up services on those occasions. The Winston family had always made sure that all employees had each of those evenings free, along with other holidays such as Hanukkah, Easter, Passover, Memorial Day, the Fourth of July, Labor Day and even President's Day.

Branton sniffed when asked about those working additional holidays. "What are you complaining about? You make time and a half," he told a group of employees.

"What if we would rather have time with our families?" asked one brave employee.

"You know, in this economy, I just can't imagine it would be too hard to replace someone," came the reply.

"You know," the employee responded, "I have friends that are Teamsters. They have been talking about paying this company a visit. Maybe they could get us organized."

"Bring it on," Branton replied.

The next day, another group of employees approached Tyler Winston. They really did not want to go through the unionization process, if it wasn't necessary. Mainly, they just wanted the same treatment that they had always received.

Review Questions

1. What form of latent con�lict is present in this situation? 2. Did this con�lict become felt or perceived, or just move directly into open con�lict? Explain your analysis. 3. What steps should Tyler Winston take to resolve the con�lict? 4. Is a functional con�lict possible in this situation? Defend your answer.

12/3/2018 Print

https://content.ashford.edu/print/AUBUS600.12.2?sections=ch07,sec7.1,sec7.2,sec7.3,sec7.4,sec7.5,sec7.6,sec7.7&content=all&clientToken=ce0c6ae1-8dbf-… 28/28

5. What should Tyler Winston do about Billy Branton?