Chapter 9-CONFLICT & NEGOTIATION

Organizational Behaviour All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 1

Chapter 14
CONFLICT & NEGOTIATION

LEARNING OUTCOMES
After studying this chapter, you should be able to:

Define organizational conflict
Explain sources and elements of conflict
Explain conflict process
Describe the ways/managing conflict

DEFINITION: CONFLICT
Conflict: is A relational disputes between two or more

parties, in which those involved perceive a threat to their
interests coming from those on the other side of the
disagreement.
Organizational conflict : is the self interested struggle
that arises when the goal-directed behavior of one
person/group block the goal directed behavior of another
person/group.
The process in which one party perceives that its
interests are being opposed or negatively affected by
another party.
A clash of interests, values, actions, views or directions.
SOURCES OF CONFLICT
 Three major sources of conflict:

1. Differentiation
 Splitting of the organization into functions and division in order to
produce goods or service will result conflict when it makes
inconsistencies among functions become apparent
2. Tasks Relationships
 Overlapping authority and task interdependence may stimulate conflict
between functions and divisions.
 Eg. The failure of any one division to perform well may affect other
organizational functions, thus creating conflict
3. Scarcity of Resources
 Competition/fight over scarce resources may produces conflict
 Insufficient of photostat machines which have to be share among all of
the departments will cause conflict due to a fight over lack of
the photostat machine
EFFECTS OF CONFLICTS
 Positive effects of conflicts

1. Diffusion of more serious conflicts
when members participate in decision making dispute are usually minor due to
closeness of members which minimize major arguments and fights
2. Stimulation of a search for new facts or resolutions
some organizational members view conflict as an opportunity to seek creative
solution and inspire them to brainstorms ideas to resolve problems
3. Increase in group cohesion and performance
When two parties are in conflict, an opponent’s position is evaluated negatively
and group allegiance is strongly reinforced which this situation will lead to increase
group effort and cohesion
4. Promote the assessment of power/ability
The relative of power of the parties involved can be identified and measure during
conflict

EFFECTS OF CONFLICTS
Negative/Destructive effects of conflicts

1. Affect health
 Conflict may cause an organizational members experienced stress which adversely effect
their professional and personal live
 They may experience sleeping problem, loss of appetite/overeating, which may cause they
got high blood pressure, diabetes, cancer, heart disease etc.
2. Weakens output
 Conflict cause organizational members less focus on the core organizational goals that
they have to achieve, because they are more concentrate on gossiping/venting about their
frustration; thus their productivity/output will be affected
3. Hurts staff retention
 Due to increasing of level of frustration towards level of conflict, the organizational
members may decide to end their membership; as a result will detrimental the
organization especially when members are heads of the committees/executive board
4. Formation of competing affiliations.
 Conflict may cause violence among members, resulting in legal problems

CONFLICT PROCESS

CONFLICT PROCESS

CONFLICT PROCESS

WAYS TO DEAL WITH
CONFLICT
 Fighting
Can only be useful in courtroom
Involves tactics, strategies, offensive and defensive
Position, losing/winning ground, exposure of weak
points.
 Negotiating
Done towards settlement with the other
party
Third party roles are very important in bringing the
the conflicting party together for negotiation
 Problem-solving
Identifying and removing the cause of the conflict
To make the situation normal again
 Designing
An attempt towards creativity in making the
Conflict situation normal, consider conflict as situation rather than problems
A third party participates actively in the design process rather than being just a mediator

CONFLICT-RESOLUTION BEHAVIOUR
(Interpersonal conflict resolution)-
(Individual Approach)

(Interpersonal conflict resolution)
COMPROMISE

 Two intention that determine the type of conflict-

handling behavior:
a) Assertion – the attempt to confront the other
party
b) Cooperation- the attempt to find an agreeable
solution

1. Competition (Forcing)
 A win-or-lose style of handling conflicts.
 also known as forcing, involves high concern for personal goal
(high assertion) and low concern for other party’s
goals/relationships (low cooperation)
 Appropriate to deal with conflict which have no disagreement,
useful when unpopular but necessary decisions has to be made.
2. Collaboration (Problem solving)
 Finding some solution that can satisfy the conflicting parties.
 Disagreement is addressed openly and alternatives are
discussed to arrive at the best solution.
 Also known as problem solving, involves high concern for
personal goal (high assertion) and the other party’s
goal/relationship (high cooperation)
 Applicable when both party desire to solve the problem and are
willing to work together towards mutually acceptable solution
 Is the best method of handling conflict as it strives to satisfy the
needs of both parties.
3. Compromise
 Based on the belief that a middle route should be found to resolve
the conflict situation.
 Involves moderate concerned for personal goals (moderate
assertion) and other party goals (moderate cooperation)
 In the process of reaching a compromise there are gains and
losses for each conflicting party.
 eg. The employer agree to raise up the salary of an employees
(as what the employee had request) if they agree to work extra 1
hour everyday
Useful when the conflicting parties have relatively equal power and
mutually independent goals
4.Avoidance
based on believe conflict are evil, unwanted and tough, therefore
they should delayed and ignored
Involves low concern for personal goals (low assertion) and other
party goals(low cooperation)
 Avoiding direct confrontation and parties in conflict get time to
cool down.
Useful when the other party is unyielding because of rigid attitude

5. Accommodation (Yielding)
Play down differences and stresses commonalities
One party willing to accommodate the wishes of other party
Involves low concern for personal goals (low assertion) and high
concern for other party goals (high cooperation)
A good strategy when one party accepts that it is wrong and has a lot
to lose and little to gain (willing to accommodate the other party
wishes)

Type of Approach Advantages Disadvantages

Competition 1. Provide quick solution to 1. Negatively effect relationship
conflict with the opponent in the long
2. Increase self esteem and run
draws respect when there is 2. 2. Requires a lot of energy
firm resistance/actions in and can be exhausting for
response to some individuals.
aggression/hostility
Collaboration 1. Lead to solve an actual 1. Require commitment from all

problem parties to look for mutually
2. Create win-win outcome acceptable solution
3. Reinforce mutual trust 2. Require more effort and
and respect more time (for the same
reason)
3. May not practical when
timing is crucial and quick
solution is required

Compromise 1. Faster issue resolution 1. Result in a loss-loss
(practical when time is a situation (both parties
factor) did not satisfied with
2. Provide temporary solution the situation
when still looking for win-win 2. Does not contribute to
solution built trust in the long run
3. Lowers the level of stress 3. Require close
resulting from conflict monitoring and control
to ensure the agreement
are met
Avoidance 1. A less stressful approach 1. Weakens position
when the conflict are short 2. When multiple parties are
2. Provide the opportunity/time to involved, withdrawing may
negatively affect the
focus on more relationship (especially
important/urgent issue when a party expects an
action from another party


Accomodation 1. Helps to protect more 1. Negatively affect
important interest, while confidence in the
giving up less important ability to respond to
ones an aggressive
2. Give an opportunity re- opponent
assess the situation from a 2. More difficult to
different angle transition to win-win
solution in the future

STRATEGIES FOR MANAGING
CONFLICTS (Organizational
Approach)
1. Encouraging appropriate conflict-handling styles
Conflict handling style such as competition, collaboration, compromise,
avoidance and accommodation may be suitably encourage depending on
situation
2. Improving organizational practices
Identifying reasons for the situational conflict, suitable organizational practice
such as:
i.establishing superordinate goals
ii.improving policies, procedure & rules
iii.re-apportioning existing resources or adding new resources
iv.Moving personnel
v.altering communication
vi.changing reward system

STRATEGIES FOR MANAGING
CONFLICTS (Organizational
Approach)
3. Having Special roles and structure
A manager has to:
i.Initiate structural changes needed
ii.Shoulder liaison functions
iii. act as integrator to resolve conflict
4. Using confrontation techniques
Aim to find a mutually acceptable and enduring solution through
collaboration and compromise.
Entails cooperation, bargaining, negotiation , mediation, attribution and
application of the integrative decision method
Involves process of defining problem, searching for alternatives and
their evaluation and deciding by consensus

DEFINITION: NEGOTIATION
 A process in which groups with conflicting

interests meet together to make offers,
counteroffers, and concessions to each other in
an effort to resolve their differences.

NEGOTIATION STRATEGIES
 Distributive negotiation
 Integrative negotiation

NEGOTIATION PROCESS
Step 1: Preparation and planning

Step 2: Definition of ground rules
Step 3: Clarification and justification
Step 4: Bargaining and problem solving
Step 5: Closure and implementation


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Organizational Behaviour All Rights Reserved

© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 1

CONFLICT & NEGOTIATION

Organizational Behaviour All Rights Reserved

After studying this chapter, you should be able to:

Organizational Behaviour All Rights Reserved

Conflict: is A relational disputes between two or more

 Three major sources of conflict:

 Positive effects of conflicts

Organizational Behaviour All Rights Reserved

Negative/Destructive effects of conflicts

Organizational Behaviour All Rights Reserved

Organizational Behaviour All Rights Reserved

Organizational Behaviour All Rights Reserved

Organizational Behaviour All Rights Reserved

Organizational Behaviour All Rights Reserved

Organizational Behaviour All Rights Reserved

Organizational Behaviour All Rights Reserved

 Two intention that determine the type of conflict-

Organizational Behaviour All Rights Reserved

Organizational Behaviour All Rights Reserved

Organizational Behaviour All Rights Reserved

Type of Approach Advantages Disadvantages

Collaboration 1. Lead to solve an actual 1. Require commitment from all

Type of Approach Advantages Disadvantages

Organizational Behaviour All Rights Reserved

Type of Approach Advantages Disadvantages

Organizational Behaviour All Rights Reserved

Organizational Behaviour All Rights Reserved

Organizational Behaviour All Rights Reserved

 A process in which groups with conflicting

Organizational Behaviour All Rights Reserved

Organizational Behaviour All Rights Reserved

Step 1: Preparation and planning

Organizational Behaviour All Rights Reserved

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