Managing Conflict and

Negotiation
Chapter 13
Conflict Defined
 A process that begins when one party perceives that another party has
negatively affected, or is about to negatively affect, something that the
first party cares about.
 Conflict primarily deals with perception. If nobody thinks there is
conflict, then no conflict exists.
 Conflict can be experienced in an organization through many different
avenues.
 Incompatibility of goals
 Differences over interpretations of facts
 Disagreements based on behavioral expectations
Transitions in Conflict Thought
 Traditional View of Conflict
 The belief that all conflict is harmful and must be avoided
 Prevalent view in the 1930s-1940s
 This view held that conflict resulted from:
 Poor communication
 Lack of openness
 Failure to respond to employee needs
 All these things are negative and can be fixed so management thought
that conflict could be fixed and should be fixed.
Continued Transitions in Conflict Thought
 Human Relations View of Conflict
 The belief that conflict is a natural and inevitable outcome in any
group
 Prevalent from the late 1940s through mid-1970s
 Interactionist View of Conflict
 The belief that conflict is not only a positive force in a group but that it
is absolutely necessary for a group to perform effectively
 Current view
Forms of Interactionist Conflict
Types of Interactionist Conflict
 Task Conflict
 Conflicts over content and goals of the work
 Low-to-moderate levels of this type are FUNCTIONAL
 Relationship Conflict
 Conflict based on interpersonal relationships
 Almost always DYSFUNCTIONAL
 Process Conflict
 Conflict over how work gets done
 Low levels of this type are FUNCTIONAL
The Conflict Process

Fig: The Conflict Process

Stage I: Potential Opposition or Incompatibility
 Communication
 Semantic difficulties, misunderstandings, over communication and “noise”
 Structure
 Size and specialization of jobs
 Jurisdictional clarity/ambiguity
 Member/goal incompatibility
 Leadership styles (close or participative)
 Reward systems (winlose)
 Dependence/interdependence of groups
 Personal Variables
 Differing individual value systems
 Personality types
Stage II: Cognition and Personalization
Important stage for two reasons:
1. Conflict is defined
 Perceived Conflict
 Awareness by one or more parties of the existence of conditions that create opportunities
for conflict to arise
2. Emotions are expressed that have a strong impact on the eventual
outcome
 Felt Conflict
 Emotional involvement in a conflict creating anxiety, tenseness, frustration, or hostility
Stage III: Intentions
 Intentions
 Decisions to act in a given way
 Note: behavior does not always
accurately reflect intent
 Dimensions of conflict-handling
intentions:
 Cooperativeness
 Attempting to satisfy the other
party’s concerns
 Assertiveness
 Attempting to satisfy one’s own
concerns
Dimensions of Conflict-Handling Intentions
Stage IV: Behavior
 Conflict Management
 The use of resolution and stimulation techniques to achieve the desired level of
conflict
 Conflict-Intensity Continuum
Conflict Management Techniques

Fig: Conflict Management Techniques

Stage V: Outcomes
Functional
 Increased group performance
 Improved quality of decisions
 Stimulation of creativity and
innovation
 Encouragement of interest and
curiosity
 Provision of a medium for problem
solving
 Creation of an environment for
self-evaluation and change
Dysfunctional
 Development of discontent
 Reduced group effectiveness
 Retarded communication
 Reduced group cohesiveness
 Infighting among group
members overcomes group
goals
Creating Functional Conflict
 Reward dissent and punish
conflict avoiders
Negotiation
Negotiation (Bargaining)
 A process in which two or more interdependent individuals discuss and attempt
to reach agreement about their differences
 Two General Approaches:
 Distributive Bargaining
 The traditional fixed-pie approach in which negotiators see the situation as a pie that they
have to divide between them.
 A negotiation strategy in which one person gains and the other person loses; a win-lose
situation.
 Integrative Bargaining
 An approach to negotiation in which both parties look for ways to integrate their goals
under a larger umbrella.
 A negotiation strategy that achieves an outcome that is satisfying for both parties; a win-
win solution
Distributive versus Integrative Bargaining
Bargaining Characteristic Distributive
Integrative Bargaining
Bargaining
Goal Get all the pie you can Expand the pie
Motivation Win-Lose Win-Win
Focus Positions Interests
Information Sharing Low High
Duration of Relationships Short-Term Long-Term
The Negotiation Process
BATNA
 The Best Alternative To a
Negotiated Agreement
 The lowest acceptable value
(outcome) to an individual
for a negotiated agreement

The “Bottom Line” for

negotiations
Individual Differences in Negotiation Effectiveness
Personality Traits
 Extroverts and agreeable people weaker at distributive negotiation –
disagreeable introvert is best
 Intelligence is a weak indicator of effectiveness
Mood and Emotion
 Ability to show anger helps in distributive bargaining
 Positive moods and emotions help integrative bargaining
Gender
 Men and women negotiate the same way, but may experience different outcomes
 Women and men take on gender stereotypes in negotiations: tender and tough
 Women are less likely to negotiate
Avoiding Common Mistakes in Negotiations
 Failing to Negotiate/Accepting the First Offer
 Letting Your Ego Get in the Way
 Having Unrealistic Expectations
 Getting Overly Emotional
 Letting Past Negative Outcomes Affect the Present Ones
Third-Party Negotiations
 Occasionally, individuals or group representatives reach a stalemate and
are unable to resolve their differences through direct negotiations.
 In such cases, they may turn to a third party to help them find a
solution.
 Also known as Alternative Dispute Resolution (ADR) which includes
mediation, arbitration, and other ways of resolving conflicts with the
help of a specially trained, neutral third party without the need for a
formal trial or hearing.
Third-Party Negotiations
Mediator
 A neutral third party who facilitates a negotiated solution by using reasoning,
persuasion, and suggestions for alternatives
 Mediation a process in which an outside third party, the mediator enters the
situation with the goal of assisting the parties to reach an agreement.
Arbitrator
 A third party to a negotiation who has the authority to dictate an agreement.
 Arbitration is a process that involves bringing in a third party, the arbitrator,
who has the authority to act as a judge and make a binding decision to which
both parties must adhere.
Conciliator
 A trusted third party who provides an informal communication link between the
negotiator and the opponent
Consultant
 An impartial third party, skilled in conflict management, who attempts to
facilitate creative problem solving through communication and analysis