11-1

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 11-2

Chapter
11
Managing Conflict and
Negotiations

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 11-3

For any organization to perform effectively,

interdependent individuals and groups must
establish working relationships across organizational
boundaries, between individuals, and among groups.
Such interdependence may foster either cooperation
or conflict.

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 11-4

A Contemporary Perspective
• Conflict is neither inherently good nor bad,
but is inevitable
• In dealing with conflict the critical issue is
how it is managed
• Conflict is defined in terms of the effect it
has on the organization
• functional conflict
• dysfunctional conflict

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 11-5

Functional Conflict (1 of 2)
• A confrontation between groups that
enhances and benefits the organization’s
performance

• Without this type of conflict in organizations:

• there would be little commitment to change
• most groups likely would become stagnant

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 11-6

Functional Conflict (2 of 2)
• Functional conflict can:
• lead to increased awareness of problems
that need to be addressed
• result in broader and more productive
searches for solutions
• generally facilitate positive change,
adaptation, and innovation

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 11-7

Dysfunctional Conflict
• Any confrontation or interaction between
groups that harms the organization or
hinders the achievement of organizational
goals

• Management must seek to eliminate

dysfunctional conflict

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 11-8
Relationship Between Intergroup Conflict and
Organizational Performance

Level of Probable Level of

Organization
Intergroup Impact on Characterized By Organizational
Conflict Organization Performance
Situation Low or Dysfunctional Slow adaptation to environment Low
I none Few changes
Little stimulation of ideas
Apathy
Stagnation
Situation Optimal Functional Positive movement toward goals High
II Innovation and change
Search for problem solutions
Creativity and quick adaptation
to environmental changes
Situation High Dysfunctional Disruption Low
III Interference with activities
Coordination difficulties
Chaos
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 11-9

Stages of Conflict

Perceived Conflict

Intergroup conflicts
Felt Conflict develop over a period of
time
Manifest Conflict

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 11-10

What Causes Intergroup Conflict?

•• Work
Work Interdependence
Interdependence
•• Pooled
Pooledinterdependence
interdependence
•• Sequential
Sequentialinterdependence
interdependence
•• Reciprocal
Reciprocalinterdependence
interdependence
•• Goal
Goal Differences
Differences
•• Mutually
Mutuallyexclusive
exclusivegoals
goals
•• Perceptual
Perceptual Differences
Differences
•• Status
Statusincongruency
incongruency
•• Inaccurate
Inaccurateperceptions
perceptions
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 11-11

Group A
Types of
POOLED Goals
Interdependence
Group B

Group A Group B
SEQUENTIAL Goals

Group A Group B
RECIPROCAL Goals Goals

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 11-12

Problems Related to Goal Differences

• Groups with mutually exclusive goals can
find themselves in conflict
• Allocating limited resources between
groups increases mutual dependencies
and differences in goals are more apparent
• Different time horizons needed by groups
to achieve their goals can be a source of
conflict

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 Minimizing Perceptual Bases for 11-13

Conflict

1.
1. Communicate
Communicate effectively!
effectively!
2.
2. Help
Help develop
develop aa group’s
group’s social
social
sensitivity.
sensitivity.
3.
3. Emphasize
Emphasize behavioral
behavioral flexibility.
flexibility.
4.
4. Communicate
Communicate effectively!
effectively!

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 The Consequences of Dysfunctional 11-14

Intergroup Conflict
Changes Within Groups Changes Between Groups
• Increased group • Distorted perceptions
cohesiveness • Negative stereotyping
• Emphasis on loyalty • Decreased
• Rise in autocratic communication
leadership
• Focus on activity
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 Managing Intergroup Conflict Through 11-15

Resolution

Dominating Accommodating

Problem Avoiding Compromising

Solving

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 11-16

Conflict-Resolution Grid
Accommodating or Smoothing Problem Solving or Collaboration

HIGH Allowing other Working together to

group to win solve problems
Compromising

EXTERNAL Finding acceptable

FOCUS solution so everyone
Avoiding feels good Dominating

LOW
Ignoring or steering Working to
clear of other group dominate and
control
LOW HIGH
INTERNAL FOCUS

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 When to Use the Different Conflict- 11-17

Resolution Approaches (1 of 3)
• Dominating approach – use on important issues
• where you are certain you are right, and
• where the benefit of a resolution outweighs the
drawback of possible negative feelings by the
dominated group

• Accommodating approach – use in disputes that

are of far greater importance to the other group
than they are to your group
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 When to Use the Different Conflict- 11-18

Resolution Approaches (2 of 3)
• Problem-solving approach – use when both groups
are willing to invest time and effort to reach a
resolution that maximizes everyone’s outcome

• Avoiding approach – use primarily as a temporary

expedient to buy more time

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 When to Use the Different Conflict- 11-19

Resolution Approaches (3 of 3)
• Compromising approach – use as a middle ground
• Good backup approach when other approaches fail to
resolve the issue

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 Stimulating Constructive Intergroup 11-20

Conflict
• Bringing outside individuals into the group-ex. Faculty-new
members with different backgrounds to ensure diversity of
viewpoints on the faculty
• Altering the organization’s structure-Ex.divide the business ad-
competition among groups
• Stimulating competition- Ex. Awards and bonus
• Making use of programmed conflict. Ex. Devil’s advocate is
someone or some group is assigned the role of critic with the job
of uncovering all possible problems with a particular proposal.

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 11-21

Negotiations (1 of 2)

• Negotiations – a process in which two or

more parties attempt to reach acceptable
agreement in a situation characterized by
some level of disagreement

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 11-22

Negotiations (2 of 2)
• In an organizational context, negotiation
may take place:
1. between two people
2. within a group
3. between groups
4. over the Internet

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 11-23

Elements of Negotiations

1.1. Some
Some disagreement
disagreement or or conflict
conflict exists
exists
2.2. There
There isis some degree ofof interdependence
some degree interdependence
between
between the the parties
parties
3.3. The
The situation
situation must
must be conducive toto opportunistic
be conducive opportunistic
interaction
interaction
4.4. There
There exists some possibility
exists some possibility ofof agreement
agreement

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 11-24

Win-Lose Negotiating
• Classical view that negotiations are a form of a zero-
sum game
• i.e., to whatever extent one party wins something,
the other party loses

• Also known as distributive negotiating

• i.e., the process of “distributing” scarce resources.
• Ex. Labor and management

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 11-25

Win-Win Negotiating
• A positive-sum approach
• i.e., situations where each party gains
without a corresponding loss for the other
party
• Does not mean that everyone gets
everything they wanted
• An agreement has been achieved which
leaves all parties better off than they were
prior to the agreement
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 11-26
Negotiation Tactics

1. Good-guy /
Bad-guy 2. The Nibble
Team

5. Splitting the
3. Joint 4. Power of
Difference
Problem-Solving Competition

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 11-27

Variables That Affect Negotiations

• There is no one best way to negotiate
• The selection of specific negotiation
strategies and tactics depends on:
1. The nature of the issues being negotiated
2. The environment in which the negotiations take place
3. The nature of the outcomes desired from the
negotiations

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 11-28

Negotiations: Desired Outcomes

Substantive Outcomes Relationship Outcomes
• Have to do with how the • To negotiate in a manner
specific issue is settled designed primarily to
maintain good relations
• To strive to end up with a between the parties
bigger piece of the pie
than the other party • Desired irrespective of the
substantive result

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 Mastenbroek’s Model to Increase Negotiating 11-29

Effectiveness: Key Activities

1.
1. Obtaining
Obtaining substantial
substantial results
results
2.
2. Influencing
Influencing the
the balance
balance of
of power
power
3.
3. Promoting
Promoting aa constructive
constructive climate
climate
4.
4. Obtaining
Obtaining procedural
procedural flexibility
flexibility

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 11-30

Using Third-Party Negotiations

1. Mediation 2. Arbitration

3. Conciliation 4. Consultation

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 11-31

Negotiating Globally
• Negotiating with individuals from different
countries and cultures poses a number of
issues

• Showing knowledge about a person’s

culture is one way to establish rapport
and respect with another negotiator

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 11-32
Suggestions to Improve Negotiations
(1 of 2)

1. Begin the bargaining with a positive overture

/offer and then reciprocate the opponent’s
concessions
2. Concentrate on the negotiation issues and the
situational factors, not on the opponent or his or
her characteristics
3. Look below the surface of your opponent’s
bargaining and try to determine his or her
strategy
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 11-33
Suggestions to Improve Negotiations
(2 of 2)

4. Do not allow accountability to your constituents or

surveillance by them to spawn competitive
bargaining
5. If you have power in a negotiation, use it to guide
the opponent toward an agreement
6. Be open to accepting third-party assistance
7. In a negotiation, attend to the environment and
be aware that the opponent’s behavior and power
are altered by it
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