Baldwin 1e Ch09 PPT FINAL Accessible

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Chapter 9
Conflict and Negotiation

ORGANIZATIONAL BEHAVIOR
FIRST EDITION
Baldwin, Bommer, Rubin
Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
Learning Objectives
LO9.1: Compare the types of organizational conflicts.

LO9.2: Identify different sources of conflict.
LO9.3: Explain when to negotiate, and when not to.
LO9.4: Match conflicting handling styles with negotiation
situations.
LO9.5: List the stages of the effective negotiation process.
LO9.6: Apply the strategies of win-win negotiation.
LO9.7: Describe how to use mediation.
Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 2
Introduction
Conflict
• An inevitable part of organizational life.
• Is not always bad, but can be very destructive if left
unchecked.
• Different kinds of conflict.
• Different styles of conflict resolution.
• Significant portion of manager’s job is negotiating.
Myths of Conflict and Negotiation
Conflict is not always dysfunctional.

It may even improve performance under some
circumstances.
Personality conflict can be dysfunctional
• But, most group conflict has less to do with personality
than with differing ideas about how best to use scarce
resources.
Types of Organizational Conflicts
Task conflict occurs over tasks, ideas, and issues

• Can be beneficial if at an optimal level.
Relationship conflict is personalized and therefore highly
threatening to personal relationships
• Task conflict increases performance in decision making
teams whereas relationship conflict decreases team
performance.
Positive and Negative Effects of Conflict
Table 9.1 Positive and Negative Effects of Conflict

Positive Effects of Conflict Negative Effects of Conflict
Brings problems into the open that might Can lead to negative emotions and stress
otherwise be ignored
Can motivate people to try to Often reduces communication between
understand others’ positions and ideas participants, which can hurt work coordination
Encourages people to voice new ideas, May cause leaders to avoid participative
facilitating innovation and change leadership and instead rely on “top-down,”
authoritarian decisions
Forces people to challenge their thinking Can result in negative stereotyping and work
and assumptions, often improving the group divisions, because members of opposing
quality of decisions groups tend to emphasize the differences
between themselves and the opposition
Diagnosing the Conflict Source
Do the disputants have access to the same information?

Do the disputants perceive common information differently?
Are the disputants significantly influenced by their role in the
organization?
To what stressful factors might disputants be reacting?
In what ways do personal differences play a role in the
dispute?
Sources of Conflict 1
Informational factors
• Come into play when people have developed their point of
view on the basis of a different set of facts.
Perceptual factors
• Exert their influence when people have different images or
interpretations of the same thing.
• Each person selects the data that supports their point of
view and devalues information that does not support it.
Role factors
• People believe that their roles within an organization are in
conflict.
• “Turf” associated with their position is being usurped.
Environmental factors
• Scarce resources, uncertainty, degree to which
competition is present.
• Mixed-motive situation
• Employees are rewarded for competing but told to work toward the
department’s overall outcome as a whole.
• Zero-sum game
• Success of one employee means the failure of another.
• Can lead to intense conflict.
Personal factors
• Incompatible personal values.
• Different personalities.
• Differing long and short-term goals.
• Can become bitter arguments with moral overtones.
To Negotiate or Not? 1
Two points to consider:

1) Whether an issue that appears to be non-negotiable truly
is.
2) If there is no way to create added value for yourself, you
should not be negotiating.
To Negotiate or Not? 2
BATNA: Best Alternative to a Negotiated Agreement

= the alternative left if a negotiated agreement is not reached
Considerations
• The current BATNA
• Likelihood of favorable negotiated outcomes
• Direct cost of negotiating
• Indirect and opportunity costs
Five Conflict Handling Styles 1
1. The Integrating style:

• The essence of win-win negotiation.
• Relies on open discussion and mutually beneficial
alternatives.
• Appropriate when issues are complex, but not when an
immediate solution is required.
Five Conflict Handling Styles, 2
2. The Dominating style:

• A win-lose approach.
• The goal is to win as much as possible with little regard for
the other party.
• Appropriate when a fast decision is required but not when
the issue is unimportant or trivial to the negotiators.
3. The Avoiding style:

• Passive negotiation.
• Leaves the problem unaddressed.
• Appropriate when the issue is trivial but not when it is your
responsibility to solve the problem.
4. The Obliging style:

• One side tries to keep the peace by satisfying the other
side.
• The obliger often neglects his/her own needs.
• Appropriate when there is a good chance you may be
wrong, but not when the other party is behaving
unethically.
5. The Compromising style:

• Each side gives up something important to gain other
advantages that are even more important.
• Appropriate when competing over mutually exclusive goals
(that is, no win-win situation exists) but not when one party
is more powerful.
Table 9.3 When Different Conflict Styles Are Most
Appropriate
Conflict Style When Appropriate When Inappropriate
Integrating The issues are complex. The issues are very simple.
Commitment is needed from multiple parties for An immediate solution is required.
success. At least one party is unconcerned with the outcome.
Adequate time exists. At least one party lacks the needed problem solving
Resources from both parties are needed to solve the skills.
problem.
Obliging There is a good chance that you are wrong. The issue is very important to you.
The issue is more important to the other party than it is You are sure that you are correct.
to you. The other party is behaving in an unethical manner.
Giving in on this issue will give you future benefits.
Preserving the relationship is very important.
Dominating A fast decision is required. The issue is trivial and unimportant to you.
A very unpopular action is required. Both sides are equally powerful.
It is necessary to overcome a very assertive party. The timing is not urgent.
Others lack the expertise to make the decision. The other party is very competent.
Avoiding The issue is trivial. The issue is very important to you.
The cost of confronting the party exceeds the benefits of It is your responsibility to resolve the problem.
resolving the conflict. Immediate attention is required.
Time is needed to let emotions cool.
Compromising Goals are mutually exclusive; no win-win option exists. One party is more powerful.
Both parties are equally powerful. The problem is important enough to require a
Consensus cannot be reached. resolution.
The integrating or dominating style did not work.
A temporary solution is needed.
Source: Rahim, M. A. (2002). Toward a theory of managing organizational conflict. International Journal of Conflict Management,
13 (3) 206–235.
Stages of Effective Negotiations
Prepare to negotiate
Organize the issues
Understand needs of other parties
List and discuss options
Process tactics
Ending
Evaluation
Figure 9.2 The Stages of the Negotiation Process
Step 1. Negotiation Preparation
Organize the issues

• Identify and define the issues.
• Prioritize the issues.
Talk to other people who have information you need
• Seek other people who have had similar negotiations.
• Talk to your constituents.
• Talk in advance to other parties.
Negotiation Preparation
Research the parties you’ll be negotiating with

• Reputation
• Scarce resources
• Interest in good relationship
• Ongoing or one-time negotiation
• Trust
Consider your BATNA
Types of Difficult Negotiators
Aggressive Opener: Makes nasty comments about others.

Long Pauser: Hopes silence will get other side to reveal
more information.
Mocker: Mocks and sneers at others.
Interrogator: Challenges all comments; contests all answers.
Sheep’s Clothing: Appears reasonable, but makes impossible
demands.
Divide-and-Conqueror: Produces dissension to create
internal conflict.
Dummy: Plays dumb to lull other side into a false sense of
superiority.
Step 2. Understanding the Needs of the Other Party
Many people begin negotiations by stating their

positions
Instead you should discuss the needs and interests of
both parties
Step 3. List and Discuss Possible Options
Choosing among options

• Hypotheticals = lets you explore creative possibilities with
less pressure
Use of objective standards and norms
Step 4. Employing Process Tactics During Negotiations
Look for key information from other party

• What are their interests and needs?
• Do they have a deadline?
Making concessions
• Leave yourself some room to make at least some
concessions.
Employing Process Tactics During Negotiations
Common Forms of Leverage

• Leverage of Legitimacy = giving the impression the issue
is not negotiable.
• Leverage of Timing = telling the party you want to leave
to think about the deal.
• Leverage of Limited Authority = having limited authority
to negotiate can be helpful in some circumstances.
Some Specific Process Tactics
Silence
Good Guy / Bad Guy Routine
The Wince
The Trial Balloon
Bait-and-Switch
Outrageous Behavior
Red Herring
The Written Word
Bluffing
Step 5. The End of Negotiation
Always keep multiple issues on the table until the very end.
Ask for documentation of the agreement (verbal, handshake,
written).
Step 6. Evaluate How Well it Went
Analyze how the process went.

Superior negotiators analyze negotiations to learn and grow.
Outcomes of an Ideal Negotiation
1. All parties believe they made a good deal.

2. The relationship is maintained or even improved.
3. Each negotiator’s constituents are satisfied with the
agreement.
Actions of Effective Negotiators
During Planning During Negotiations

• Expend more effort • Cooperative versus
seeking common competitive.
interests. • Offer fewer immediate
• Consider more alternative counterproposals.
solutions. • Pose more questions.
• Take more long-term
• Less likely to over-hype.
consequences into
consideration. • Change topics more often.
• Frequently update the
status and gains made.
Win-Win Negotiation
Win-lose negotiation = someone has to lose

Win-win negotiation = Focused on cooperative problem
solving
Treat conflict as separate from the relationship and work to
seek a mutually acceptable solution.
Characteristics of Win-Win Negotiation
A focus on common interests rather than differences.
An attempt to address needs and interests rather than bargaining positions.
A commitment to heIping the other party meet their needs aIso.
An exchange of information and ideas.
The creation of options for mutuaI gain-creating value for both parties.
Mediation
Mediator = Outside party who specializes in helping people

in conflict reach an amicable agreement
• Trust building is essential to the process
Mediation is used in non-business (for example, divorce

cases) and business settings.
The Mediation Process 1
Stabilize the setting

• Greet the parties.
• Indicate where each of them is to sit.
• State the purpose of the mediation.
• Confirm your neutrality.
• Get the parties’ commitment to proceed.
• Get their commitment that only one party will speak at a
time.
• Get their commitment to speak directly just to you.
The Mediation Process 2
Help the parties communicate
Help the parties negotiate
Clarify the agreement
End of Main Content
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Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.

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Because learning changes everything.

Conflict and Negotiation

LO9.1: Compare the types of organizational conflicts.

Conflict is not always dysfunctional.

Task conflict occurs over tasks, ideas, and issues

Table 9.1 Positive and Negative Effects of Conflict

Do the disputants have access to the same information?

• Can lead to intense conflict.

Two points to consider:

BATNA: Best Alternative to a Negotiated Agreement

1. The Integrating style:

2. The Dominating style:

3. The Avoiding style:

4. The Obliging style:

5. The Compromising style:

Organize the issues

Research the parties you’ll be negotiating with

Aggressive Opener: Makes nasty comments about others.

Many people begin negotiations by stating their

Choosing among options

Look for key information from other party

Common Forms of Leverage

Analyze how the process went.

1. All parties believe they made a good deal.

During Planning During Negotiations

Win-lose negotiation = someone has to lose

A focus on common interests rather than differences.

An attempt to address needs and interests rather than bargaining positions.

A commitment to heIping the other party meet their needs aIso.

An exchange of information and ideas.

Mediator = Outside party who specializes in helping people

Mediation is used in non-business (for example, divorce

Stabilize the setting

Help the parties communicate

Help the parties negotiate

Clarify the agreement

Because learning changes everything. ®

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