Managing Conflict. and Negotiation. Conflict. Conflict One party perceives its interests are being opposed or set back by another party.

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1 11 Managing Conflict Chapter and Negotiation Conflict: A Modern Perspective Types of Conflict Managing Conflict Negotiation Conflict Management and Negotiation: A Contingency Approach Conflict 14-2 Conflict One party perceives its interests are being opposed or set back by another party 2004 The Companies, Inc. All rights reserved. 1

2 The Relationship between Conflict Intensity and Outcomes 14-3 Figure 14-1 Positive Outcomes Neutral Negative Too little conflict Low Appropriate conflict Moderate Intensity Too much conflict High 2004 The Companies, Inc. All rights reserved. Functional vs. Dysfunctional Conflict 14-4 Functional Conflict serves organization s interests Dysfunctional Conflict threatens organization s interests 2004 The Companies, Inc. All rights reserved. 2

3 14-5 Antecedents of Conflict Incompatible personalities or value systems Overlapping or unclear job boundaries Competition for limited resources Interdepartment/intergroup competition Inadequate communication Inderdependent tasks Organizational complexity 2004 The Companies, Inc. All rights reserved Antecedents of Conflict Cont. Unreasonable or unclear policies, standards, or rules Unreasonable deadlines or extreme time pressure Collective design making Decision making by consensus Unmet expectations Unresolved or suppressed conflicts 2004 The Companies, Inc. All rights reserved. 3

4 Desired Conflict Outcomes ) Agreement: strive for equitable and fair agreements that last 2) Stronger Relationships: build bridges of goodwill and trust for the future 3) Learning: greater self-awareness and creative problem solving 2004 The Companies, Inc. All rights reserved. Conflict Handling Styles High Integrating Obliging Concern for others Compromising Low Dominating Avoiding High Concern for self Low 4

5 Intergroup Conflict Changes within groups Increased group cohesiveness Rise in autocratic leadership Focus on activity Emphasis on loyalty Changes between groups Distorted perceptions Negative stereotyping Decreased communication Minimizing Intergroup Conflict Figure 14-2 Level of perceived intergroup conflict tends to increase when: Conflict within the group is high There are negative interactions between groups Influential third-party gossip about other group is negative Recommended actions: Work to eliminate specific negative interactions between groups Conduct team building to reduce intragroup conflict and prepare employees for cross-functional teamwork Encourage personal friendships and good working relationships across groups and departments Foster positive attitudes toward members of other groups Avoid or neutralize negative gossip across groups or departments 2004 The Companies, Inc. All rights reserved. 5

6 Alternative Dispute Resolution (ADR)Techniques Alternative Dispute Resolution (ADR) avoiding costly lawsuits by resolving conflicts informally or through mediation or arbitration Facilitation Conciliation Peer review Ombudsman Mediation Arbitration 2004 The Companies, Inc. All rights reserved Negotiation Negotiation give-and-take process between conflicting interdependent parties Distributive negotiation: Single issue; fixed-pie; win-lose. Integrative negotiation: More than one issue; win-win The Companies, Inc. All rights reserved. 6

7 An Integrative Approach: Added-Value Negotiation Figure 14-6 Separately Step 1: Clarify interests identify tangible and intangible needs Step 2: Identify options Identify elements of value Step 3: Design alternative deal packages Mix and match elements of value in various workable combinations Think in terms of multiple deals Step 4: Select a deal Analyze deal packages proposed by other party Step 5: Perfect the deal 2004 The Companies, Inc. All rights reserved. An Integrative Approach: Added-Value Negotiation Figure 14-6 cont. Jointly Step 1: Clarify interests Discuss respective needs Find common ground for negotiation Step 2: Identify options Create a marketplace of value by discussing respective elements of value Step 3: Design alternative deal packages Step 4: Select a deal Discuss and select from feasible deal packages Think in terms of creative agreement Step 5: Perfect the deal Discuss unresolved issues Develop written agreement Build relationships for future negotiations 2004 The Companies, Inc. All rights reserved. 7

8 14-22 Questionable/Unethical Tactics in Negotiation Lies Puffery Deception Weakening the opponent Strengthening one s own position Nondisclosure Information exploitation Change of mind Distraction Maximization 2004 The Companies, Inc. All rights reserved. 8