CONFLICT AND

NEGOTIATION
How do we see Conflict?
What is a Conflict?
• It is a process when one party perceives that another
party has negatively affected or is about to negatively
affect, something that the first party cares about.

 This describes the point when an interaction

“crosses over” to become an inter-party conflict.
 It encompasses the wide range of conflicts that
people experience in organizations.

• According to Webster’s Dictionary: “A conflict is the

state of disharmony between two or more individuals”
or a “clash” between hostile or opposing elements or
ideas.”
 Transitions in Conflict Thought
1. Traditional View of Conflict:

The belief that all conflicts are harmful and must be

avoided. Conflict is synonymous with such terms
that reinforce its negative connotation.

Causes:
Conflict is seen as a dysfunctional outcome resulting
from poor communication, a lack of openness and
trust between people, and the failure of managers to
be responsive to their employees.
Transitions in Conflict Thought (cont’d)
2. Human Relations View:

The belief that conflict is natural and inevitable

outcome in any group. Conflict could be due to
structure or personality difference.

3. 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. Conflicting discussions generate
more ideas.
Functional versus Dysfunctional Conflict
• Functional Conflict. Not all conflicts are good.
Functional, constructive forms of conflict support the
goals of the group and improve its performance.
 Task conflict relates to the content and goals. Low-to-
moderate levels of task conflict are functional, which
demonstrate a positive effect on group performance
because it stimulates discussion.

• Dysfunctional Conflict. Conflicts that hinder group

performance are dysfunctional or destructive forms of
conflict.
 Relationship conflicts are usually dysfunctional.
 The friction and interpersonal hostilities inherent in
relationship conflicts increase personality clashes.
Types of Conflict
The Conflict Process
Conflict process comprises five stages, Potential
Opposition or Incompatibility, Cognition and
Personalization, Intentions, Behavior and Outcomes.
 Stage - I: Potential Opposition or
Incompatibility
First is the presence of conditions that create
opportunities for conflict to arise. Three general variables
are communication, structure, and personal:

• Communication:

 Communication represents opposing forces that arise

from semantic difficulties, misunderstandings, and
“noise” in the communication channels.

 Differing word connotations, jargon, insufficient

exchange of information, and noise are all barriers to
communication and lead to conflict.
 Stage - I: Potential Opposition or
Incompatibility (cont’d)
• Structure:
 Size and specialization of jobs
 Jurisdictional clarity / ambiguity
 Member/goal incompatibility
 Leadership styles (close or participative)
 Reward systems (win-lose)
 Dependence/interdependence of groups
• Personal Variables:
 Include individual value systems and personality
characteristics. Varying personality types lead to
potential conflict.
 Most important are value differences, which are the
best explanation for differences of opinion on various
matters.
Stage II: Cognition and Personalization

• Conflict is personalized when it is felt and when

individuals become emotionally involved.

• Negative emotions create reductions in trust, and

negative interpretations of the other party’s behavior.

• Positive feelings increase the tendency to see potential

relationships among the elements of a problem, to take a
broader view of the situation, and to develop more
innovative solutions.
Stage III: Intentions
• Intentions are the decisions to act in a given way.

• One party attributing the wrong intentions to the

other escalates lot of conflicts.

• Two dimensions have been identified for conflict-

handling:

• Cooperativeness - the degree to which one party

attempts to satisfy the other party’s concerns.

• Assertiveness - the degree to which one party

attempts to satisfy his or her own concerns.
 Stage III: Intentions (cont’d)
Following five conflict - handling intentions can be
identified:

1. Competing. When one person seeks to satisfy his or

her own interests, regardless of the impact on the
other parties to the conflict.

2. Collaborating. When the parties to conflict each desire

to fully satisfy the concerns of all (parties) concerned,
to solve the problem by clarifying differences.

3. Avoiding. A person may recognize that a conflict

exists and want to withdraw from it or suppress it.
 Stage III: Intentions (cont’d)
4. Accommodating. When one party seeks to appease
an opponent, that party is willing to be self-sacrificing.

5. Compromising. When each party to the conflict

seeks to give up something, sharing occurs, resulting
in a compromised outcome (give & take situation).
Dimensions of Conflict-Handling
Intentions
Stage IV: Behavior
This is the stage where conflicts become visible and a
dynamic process of interaction between the conflicting
parties commences - leading to conflict management.

The behavior stage includes the statements,

actions, and reactions made by the conflicting
parties. These conflict behaviors are usually overt
attempts to implement each party’s intentions.
Conflict-Intensity Continuum

Conflict intensities escalate as they move upward along

the continuum until they become highly destructive.
 Stage IV: Conflict Resolution
Techniques
• Problem solving. Face-to-face meeting of the conflicting
parties for the purpose of identifying the problem and
resolving it through open discussion.
• Superordinate goals. Creating a shared goal that cannot
be attained without the cooperation of each party.
• Expansion of resources. When a conflict is caused by the
scarcity of a resource (e.g. money, promotion opportunities,
office space etc.) expansion of the resource can create a
win-win solution.
• Avoidance. Withdrawal from, or suppression of, the
conflict.
 Stage IV: Conflict Resolution
Techniques (cont’d)
• Smoothing. Playing down differences while emphasizing
common interests between the conflicting parties.
• Compromise. Each party to the conflict gives up
something of value.
• Authoritative command. Management uses its formal
authority to resolve the conflict and then communicates its
desires to the parties involved.
• Altering the human variable. Using behavioral change
techniques such as human relations training to alter
attitudes and behaviors that cause conflict.
• Altering the structural variables. Changing the formal
organization structure and the interaction patterns of
conflicting parties through job redesign, transfers etc.
Stage IV: Conflict Stimulation
Techniques
• Communication. Using ambiguous or threatening
messages to increase conflict levels.

• Bringing in outsiders. Adding employees to a group

whose backgrounds, values, attitudes, or managerial styles
differ from those of present members.

• Restructuring the organization. Realigning work groups,

altering rules and regulations, increasing interdependence,
and making similar structural changes to disrupt the status
quo.

• Appointing a devil’s advocate. Designating a critic to

purposely argue against the majority positions held by the
group.
 Stage V: Outcomes
 Functional Outcomes from Conflict. Conflict is
constructive when it:
– Increases group performance
– Improves quality of decisions
– Stimulates creativity and innovation
– Encourages interest and curiosity
– Provides a medium for problem - solving
– Creates an environment for self-evaluation and change

 Creating Functional Conflict. One common ingredient

in organizations that successfully create functional
conflict is that they reward dissent and punish conflict
avoiders.
Stage V: Outcomes (cont’d)
 Dysfunctional Outcomes from Conflict.
Uncontrolled opposition breeds discontent,
which acts to dissolve common ties and
eventually leads to the destruction of the group.
Undesirable consequences are:
– Development of discontent
– Reduced group effectiveness
– Retarded communication
– Reduced group cohesiveness
– Infighting among group members overcomes
group goals
 Negotiation
• Negotiation is a “process in which two or more parties
exchange goods or services and attempt to agree upon the
exchange rate for them.” We use the terms negotiation and
bargaining interchangeably.

• Negotiation permeates the interactions of almost

everyone in groups and organizations. For example:

 Managers negotiate with employees, peers, and bosses.

 Sales people negotiate with customers.
 Purchasing agents negotiate with suppliers.
 A worker agrees to answer a colleague’s phone for a few
minutes in exchange for some past or future benefit.
Bargaining Strategies
An example of distributive
bargaining is buying a car:
• You go out to see the car. It is
great and you want it.
• The owner tells you the asking
price. You do not want to pay
that much.
• The two of you then negotiate
over the price.
• A sales rep calls in the order and
is told that the firm cannot approve
credit to this customer because of
a past slow-pay record.
• Both parties then agree on a
solution that meets both their
needs. The sale will go through
with a bank guarantee that will
ensure payment if not made in 60
days.
Distributive versus Integrative
Bargaining
Staking Out the Bargaining Zone
What is BATNA?
It refers to the Best Alternative To a Negotiated
Agreement (BATNA).

• Your BATNA determines the lowest value acceptable

to you for a negotiated agreement.

• Any offer you receive that is higher than your BATNA

is better than an impasse.
The Five-Step
Negotiation
Process
 Five Steps Negotiation Process
1. Preparation and Planning:
• Do your homework. What is the nature of the conflict?
What is the history leading up to this negotiation?
Who all are involved? What do you want from the
negotiation? What are your goals?

• When you can anticipate your opponent’s position,

you are better equipped to counter his or her
arguments with the facts and figures that support
your position.

• Determine your BATNA. . Any offer you receive that

is higher than your BATNA is better than an impasse.
 Five Steps Negotiation Process
2. Definition of Ground Rules:
• Who will do the negotiating? Where will it take
place? What time constraints, if any, will apply?

• To what issues will negotiation be limited? Will

there be a specific procedure to follow if an
impasse is reached? parties will also exchange
their initial proposals or demands.

• During this phase, the parties will also exchange

their initial proposals or demands.
 Five Steps Negotiation Process
3. Clarification and justification:
• When initial positions have been exchanged, explain,
amplify, clarify and justify your original demands.
• You might want to provide the other party with any
documentation that helps support your position.
4. Bargaining and problem solving:
• The essence of the negotiation process is the actual
give and take in trying to hash out an agreement.
• Concessions will undoubtedly need to be made by
both parties.
5. Closure and implementation:
• The final step - formalizing the agreement and
developing any procedures for implementation.
Issues in Negotiation
 The Role of Personality Traits in Negotiation:

– Traits do not appear to have a significantly direct

effect on the outcomes of either bargaining or
negotiating processes.
 Gender Differences in Negotiations:
– Women negotiate no differently from men, although
men apparently negotiate slightly better outcomes.
– Men and women with similar power bases use the
same negotiating styles.
– Women’s attitudes toward negotiation and their
success as negotiators are less favorable than
men’s.
Third-Party Negotiations
When individuals or group representatives reach a
stalemate, they may turn to a third party.
Third-Party Negotiations (cont’d)
Conflict and Unit Performance