ChapterFifteen

Managing Conflict and Negotiation

Theobjectivesaretodevelopanunderstandingof:

ConflictinOrganizations Acontemporaryperspectiveonintergroupconflict Whatcausesintergroupconflict Thecausesofdysfunctionalintergroupconflict ManagingintergroupconflictthroughResolution StimulatingConstructiveintergroupconflict Negotiations Negotiationtactics Increasingnegotiationeffectiveness

ConflictinOrganizations. Aprocessthatbeginswhenonepartyperceivesthatanotherpartyhasnegativelyaffected,orisabout to negatively affect, something that the first party cares about. It is that point in an ongoing activity when an interaction crosses over to become an interparty conflict. It encompasses a wide range of conflicts that people experience in organizations like (a) Incompatibility of goals (b) Differences over interpretationsoffacts(c)Disagreementsbasedonbehavioralexpectations TransitionsinConflictThought TraditionalViewofConflictisthebeliefthatallconflictisharmfulandmustbeavoided.Causesare poorcommunication,lackofopennessandfailuretorespondtoemployeeneeds HumanRelationsViewofConflictisthebeliefthatconflictisanaturalandinevitableoutcomeinany group InteractionistViewofConflictisthebeliefthatconflictisnotonlyapositiveforceinagroupbutthatit isabsolutelynecessaryforagrouptoperformeffectively ContemporaryPerspectivesonIntergroupConflict A. Functionalconflict:Enhances/benefitsorganizationalperformance.Itoccurs whenthegroupsdisagreeonthebestmeanstoachieveagoal,notonthegoalitself;typicallyresultsin selectionofabettermeansalternative.Positivecontributionsoffunctionalconflictare: a. Playsanessentialroleinpreventinggroupororganizationalstagnationandresistanceto change.

b. c. d.

Canleadtoincreasedawarenessofproblemsthatneedtobeaddressed. Canresultinbroaderandmoreproductivesearchesforsolutions. Canfacilitatechange,adaptation,andinnovation.

B. Dysfunctionalconflict:Anyconflictthathinderstheachievementof organizationalgoals.Managementmustseektoeliminatesuchconflict.Functionalintergroupconflict canturnintodysfunctionalconflict. TheConsequencesofDysfunctionalIntergroupConflict A. The changes within groups: 1. Increasedgroupcohesivenessthegroupputsasidedifferencesand

closesranks.

2. Emphasisonloyaltygroupnormforconformitybecomesmore important;groupgoalsbecomemoreimportantthanmembersatisfaction. 3. Riseinautocraticleadershipcomesinresponsetothedemandfor groupdirectionandmembers'desireforstrongleadership. 4. Focusonactivitymembersfocusondoingwhatthegroupdoeswell; groupbecomesmoretaskoriented. B. Changes between groups

1. Distortedperceptionseachgroupviewsitselfasabetterperformer thantheopposinggroupandasmoreimportanttotheorganization. 2. Negativestereotypingallnegativestereotypeseverdevelopedabout theopposinggrouparereinforced.Eachgroupunderestimatesdifferenceswithintheirgroupand exaggeratesdifferencesbetweenthetwogroups. breakdown. 3. Decreasedcommunicationcommunicationsbetweengroupsusually

TypesofConflict TaskConflictConflictsovercontentandgoalsofthework RelationshipConflictConflictbasedoninterpersonalrelationships ProcessConflictConflictoverhowworkgetsdone

WhatCausesIntergroupConflict? A. Interdependence:Conflictpotentialincreaseswhengroupsareinterdependent.Thedifferent typesofInterdependenceareasfollows: 1. Pooledinterdependencenodirectinteractionoccursbetweengroups; interdependenceexistsbecausetheirpooledperformancedeterminesorganizationalperformance(e.g., theCadillac,BuickandChevroletdivisionsatGeneralMotors).Createsrelativelylowconflictpotential. 2. SequentialinterdependenceOccurswhenonegroupmustcomplete itstaskbeforeanothergroupcancompleteitstask(e.g.,twogroupsonanassemblyline).Makes conflictmorelikelybecauseoutput(qualityandquantity)ofonegroupdependsonthetaskinputof another. 3. Reciprocalinterdependencetheoutputofeachgroupistheinputfor othergroupsandviceversa(e.g.,theanesthesiology,nursing,andsurgicalteamsinanoperatingroom). Createshighconflictpotential. All organizations have pooled interdependence; complex organizations have sequential interdependence; and the more complex organizations have reciprocal interdependence. The more complextheorganization,thegreatertheconflictpotential. B. Goals Difference: Groups with different goals have different expectations that can cause conflict when the groups interact. Goal differences become more evident when resources are limited and are allocated across the groups. Conflict pressures increase when groups think resources have not been allocated equitably. Different goal can produce different perceptions. Different time horizons can produce different times perspectives and affect perceived importance of problems (e.g., a company president'stimeperspectiveoffivetotenyearsvs.aforeman'sperspectiveofonemonthtooneyear). C. Perceptual Differences: Status incongruencyone group perceiving itself as more prestigious than another can provoke intergroup conflict. Inaccurate perceptions often causes groups to develop stereotypesaboutothergroups,whichcanprovokeconflictanderodeintergrouprelations. When conflict is low rational model describes the organization where goals are consistent across participants,powerandcontrolarecentralized,decisionprocessareorderly,logical,rational,rulesand normsarenormsofefficiency,informationisextensive,systematicandaccurate. When conflict is high political model describes the organization where goals are inconsistent and pluralistic within the organization, power and control are decentralized and shifting coalitions and interestgroups,decisionprocessaredisorderlyandresultofbargainingandinterplayamonginterests, rules and norms are free play of market forces and conflict is legitimate and expected, information is ambiguousandinformationusedandwithheldstrategically. Stagesofconflict.

StageI:PotentialOppositionorIncompatibility a) CommunicationSemanticdifficulties,misunderstandings,andnoise b) StructureSizeandspecializationofjobs,Jurisdictionalclarity/ambiguity,Member/goal incompatibility,Leadershipstyles(closeorparticipative),Rewardsystems(winlose), Dependence/interdependenceofgroups c) PersonalVariablesDifferingindividualvaluesystems,Personalitytypes StageII:CognitionandPersonalization a. Perceivedconflictacognitiveawarenessonthepartofatleastonegroupthateventsor conditionsmakeovertconflictpossible. b. Feltconflictanescalation,whichincludesemotionalinvolvementcreatinganxiety,tenseness, frustration,orhostility. Beforeattemptingresolutionispossible,bothpartiesmustperceiveandfeelconflict.Resolutionismore likelytohavegoodresultsatthisstage. StageIII:Intentions Intentionsaredecisionstoactinagivenway.Itcanbebasedon: CooperativenessAttemptingtosatisfytheotherpartysconcerns AssertivenessAttemptingtosatisfyonesownconcerns

DimensionsofConflictHandlingIntentions Source:K.Thomas,ConflictandNegotiationProcessesinOrganizations,inM.D.DunnetteandL.M. Hough(eds.),HandbookofIndustrialandOrganizationalPsychology,2nded.,vol.3(PaloAlto,CA: ConsultingPsychologistsPress,1992),p.668. Competing(assertiveanduncooperative)Adesiretosatisfyonesinterests,regardlessoftheimpacton theotherpartytotheconflict Collaborating(assertiveandcooperative)Asituationinwhichthepartiestoaconflicteachdesireto satisfyfullytheconcernsofallparties Avoiding(unassertiveanduncooperative)Thedesiretowithdrawfromorsuppressaconflict Accommodating(unassertiveandcooperative)Thewillingnessofonepartyinaconflicttoplacethe opponentsinterestsabovehisorherown Compromising(moderateassertiveandmoderatecooperative)Asituationinwhicheachpartytoa conflictiswillingtogiveupsomething

StageIV:Behavior Manifestconflictgroupsactivelyengageinconflictbehaviour.Mostdifficulttodealwithconflictat thisstageandmostlikelytohavelongerlastingeffects. ConflictIntensityContinuumrangesfromnoconflictminordisagreementormisunderstandings overtquestioningorchallengingofothersassertiveverbalattacksthreatsandultimatumsaggressive physicalattacksoverteffortstodestroytheotherparty(annihilatoryconflict) Source:BasedonS.P.Robbins,ManagingOrganizationalConflict:ANontraditionalApproach(Upper SaddleRiver,NJ:PrenticeHall,1974),pp.9397;andF.Glasi,TheProcessofConflictEscalationandthe RolesofThirdParties,inG.B.J.BomersandR.Peterson(eds.),ConflictManagementandIndustrial Relations(Boston:KluwerNijhoff,1982),pp.11940. ConflictManagement Theuseofresolutionandstimulationtechniquestoachievethedesiredlevelofconflict. ManagingIntergroupConflictThroughResolution Internalfocusextenttowhichagroupisintentuponaddressingitsownconcernsinaconflict situation.Externalfocusextenttowhichagroupisintentonaddressingtheconcernsoftheother group(s)involvedintheconflict.Varyingdegreesofexternalandinternalfocusyielddifferentresolution approaches.Fiveapproachesforresolvingconflictscategorizedbyrelativeinternal/externalfocus. 1. Dominatingmaximumfocusoninternalconcerns.Itisapowerorientedapproach;relieson force.Oftenbothgroupsinaconflicttryforce.Usuallyonegrouphasoverestimateditspoweror underestimatedtheothergroup'spower.Resultsmaybeaprolongedstrikeorbattle,oravictorywhere thelosingpartyfeelsmistreatedandmayevenseekrevenge.Despiteproblems,itissometimes appropriate,e.g.,emergencysituations,orsituationswhereunpopularactionmaybeneeded. 2. Accommodatingmaximumemphasisonmeetingneedsoftheothergroupandminimizing ownconcerns.Sometimesappearstobegivingin.Itisbeneficialwhereissuesoverwhichgroupsconflict arenotequallyimportanttobothparties.Sometimesitpurchases"credits"whicharemoreimportant thanfavorableresolutiontothisparticularconflict. 3. Problemsolvingtheoreticallythebestapproach,butcanbeextremelydifficult.Alsocalled collaboration,thisapproachrequiresthatgroupsinconflictshowawillingnesstoworktowardan integrativesolutionthatsatisfiesbothparties.Obstacleisthecommonwinlosementality.Potential benefitsare:i. Mergerofinsight,experience,knowledge,andperspectivethatleadstohigherquality solutions.ii. Commitmenttoeffectiveimplementationislikelytobehighbecauseboth partiesparticipateindevelopingthesolution. Sometimesitisaidedbyfocusingonasuperordinategoal,onethatcannotbeachievedbyonegroup alone,andsupersedesallotherconcerns.

4. AvoidingMaynotbringlongtermbenefits.Itisusefulasatemporaryalternative.Itallowstime to"cooldown",orassembleadditionalinformation.Peopletendtooverusetheavoidingapproachasa wayofavoidingthe"pain"ofconflict. 5. Compromisingtraditionalmethodforresolvingintergroupconflicts.Middleoftheroad approach.Thereisnodistinctwinnerorloser.Resolutionisprobablynotidealforeithergroup.Itcan workeffectivelywhenthegoalcanbedividedequally.Itworksbestwhen:i. Conflictingpartieshave aboutequalpower.ii. Pairsarestronglycommittedtomutuallyexclusivegoals.iii. Allowsa temporarysettlementtoacomplexproblemgoodbackupstrategy. Mayinvolvethirdpartyinterventionshighermanagerialauthority,mediation,orarbitration. UseofCompetitionisrecommended: a) Whenquick,decisiveactionisvital(inemergencies);onimportantissues b) Whereunpopularactionsneedimplementing(incostcutting,enforcingunpopularrules, discipline) c) Onissuesvitaltotheorganizationswelfare d) Whenoneknowsoneisright e) Againstpeoplewhotakeadvantageofnoncompetitivebehavior UseofCollaborationisrecommended: a) Tofindanintegrativesolutionwhenbothsetsofconcernsaretooimportanttobecompromised b) Whenobjectiveistolearn c) Tomergeinsightsfrompeoplewithdifferentperspectives d) Togaincommitmentbyincorporatingconcernsintoaconsensus e) Toworkthroughfeelingsthathaveinterferedwitharelationship UseofAvoidanceisrecommended:

a) Whenanissueistrivial,ormoreimportantissuesarepressing b) Whenoneperceivesnochanceofsatisfyingonesconcerns c) Whenpotentialdisruptionoutweighsthebenefitsofresolution d) Toletpeoplecooldownandregainperspective e) Whengatheringinformationsupersedesimmediatedecision f) Whenotherscanresolvetheconflicteffectively

g) Whenissuesseemtangentialorsymptomaticofotherissues UseofAccommodationisrecommended: a) Whenonefindsoneiswrongandtoallowabetterpositiontobeheard b) Tolearn,andtoshowyourreasonableness c) Whenissuesaremoreimportanttoothersthantoyourselfandtosatisfyothersandmaintain cooperation d) Tobuildsocialcreditsforlaterissues e) Tominimizelosswhenoutmatchedandlosing f) Whenharmonyandstabilityareespeciallyimportant

g) Toallowemployeestodevelopbylearningfrommistakes UseofCompromiseisrecommended: a) Whengoalsareimportantbutnotworththeeffortofpotentialdisruptionofmoreassertive approaches b) Whenopponentswithequalpowerarecommittedtomutuallyexclusivegoals c) Toachievetemporarysettlementstocomplexissues d) Toarriveatexpedientsolutionsundertimepressure e) Asabackupwhencollaborationorcompetitionisunsuccessful

ManagingIntergroupConflictThroughStimulation A. BringingOutsideIndividualsintotheGroupHiringortransferinginindividualswhoseattitudes, valuesandbackgroundsdifferfromthosealreadyinthegroup.Itensuresadiversityofviewpoints.Itis usedfrequentlyinuniversities,governmentsandbusiness. B. AlteringtheOrganizationsStructureCanhelpbothtosolvedysfunctionalconflictandcreate functionalconflict.Competitioncanbecreatedamonggroups. C. StimulatingCompetitionUseofincentives,rewardsandbonusesforoutstandingperformance.

D. MakinguseofprogrammedconflictProgrammedconflictisdeliberatelyandsystematically creatingconflictevenwhennorealdifferencesappeartoexist.Popularformisthedevil'sadvocate whichinvolvesassigningsomeonetheroleofcritic,whosejobistouncoverallthepossibleproblems withaproposal.Thegoalistouncoverallpossibleopposingviewsbeforemakingafinaldecision. StageV:Outcomes FunctionalOutcomesfromConflictIncreasedgroupperformance,improvedqualityofdecisions, stimulationofcreativityandinnovation,encouragementofinterestandcuriosity,provisionofamedium forproblemsolving,creationofanenvironmentforselfevaluationandchange.FunctionalConflictcan becreatedbyrewardingdissentandpunishingconflictavoiders DysfunctionalOutcomesfromConflictDevelopmentofdiscontent,reducedgroupeffectiveness, retardedcommunication,reducedgroupcohesivenessandinfightingamonggroupmembersovercomes groupgoals

Conflictandorganizationalperformance.
Eachorganizationhasanoptimallevelofintergroupconflict.Toolittlehindersinnovationand changeandtoomuchcanproducechaosandthreatentheorganization'ssurvival. ConflictandUnitPerformance Whenlevelofconflictislowornone,typeofconflictisdysfunctional,unitsinternalcharacteristicsis apathetic,stagnant,nonresponsivetochangeandlackofnewideasandunitperformanceislow. Whenlevelofconflictisoptimal,typeofconflictisfunctional,unitsinternalcharacteristicsisviable,self criticalandinnovativeandunitperformanceoutcomeishigh. Whenlevelofconflictishigh,typeofconflictisdysfunctional,unitsinternalcharacteristicsisdisruptive, chaoticanduncooperativeandunitperformanceislow.

Negotiations Aprocessinwhichtwoormorepartiesexchangegoodsorservicesandattempttoagreeonthe exchangerateforthem. Aprocessinwhichtwoormorepartiesattempttoreachacceptableagreementinasituation characterizedbysomelevelofdisagreement.

Inanorganizationalcontext,negotiationsmaytakeplace: Negotiationsarecharacterizedbyfourelements: 1. 2. Somedisagreementorconflictexists,whichmaybeperceived,feltormanifest. Thereissomedegreeofinterdependencebetweentheparties. Betweentwopeople Withinagroup Betweengroups OvertheInternet

3. Thesituationmustbeconducivetoopportunisticinteractioneachpartymusthave boththemeansandintheinclinationtoattempttoinfluencetheother. 4. Thereexistssomepossibilityofagreement,withoutwhichthenegotiationcannotbring aboutapositiveresolution. BargainingstrategiesinNegotiation WinLoseNegotiatingTheZeroSumGame ItisalsoknownasDistributiveNegotiation,sincetheprocessofdividingordistributingresourcesis used.Itisquitecommoninorganizations;characterizesmostbargainingofprices,salaries,etc. WinWinNegotiatingAPositiveSumApproach ItisIntegrativeNegotiating,whereeachpartygainswithoutacorrespondinglossbytheotherparty.It doesnotnecessarilymeanthateveryonegetsexactlywhatheorshewanted.Itissimplyanagreement hasbeenreachedinwhicheachpartyisbetteroffthenwhentheystarted.

Bargaining Characteristic Goal

Distributive Bargaining Get as much of pie as possible Win-Lose Positions Low

Integrative Bargaining Expand the pie

Motivation Focus Information Sharing

Win-Win Interests High

Duration of relationships

Short term

Long term

Source:BasedonR.J.LewickiandJ.A.Litterer,Negotiation(Homewood,IL:Irwin,1985, p.280).(exhibittakenfromOrganizationalBehaviour,StephenP.Robbins,TimothiA.Judgeand SeemaSanghi,12thed,Pearsoneducation,pp567) StakingOuttheBargainingZone Thesettlementrangeisthezonedeterminedbytheinterfacebetweentheaspirationrangeofone partyAandtheresistancepointoftheotherpartyBandviceversa. TheNegotiationProcess BATNA TheBestAlternativeToaNegotiatedAgreement;thelowestacceptablevalue(outcome)toanindividual foranegotiatedagreement.Itinvolvesthefollowingsteps1.preparationandplanning,2.definingof groundrules,3.clarificationandjustification,4.bargainingandproblemsolvingand5.closureand implementation. IssuesinNegotiation

TheRoleofMoodandPersonalityTraitsinNegotiation Positivemoodspositivelyaffectnegotiations.Traitsdonotappeartohaveasignificantlydirecteffecton the outcomes of either bargaining or negotiating processes (except extraversion, which is bad for negotiationeffectiveness) GenderDifferencesinNegotiations Womennegotiatenodifferentlyfrommen,althoughmenapparentlynegotiateslightlybetter outcomes.Menandwomenwithsimilarpowerbasesusethesamenegotiatingstyles.Womensattitudes towardnegotiationandtheirsuccessasnegotiatorsarelessfavorablethanmens NegotiatingGloballyPeoplefromdifferentnationsnegotiatedifferently CrossCulturalNegotiationsConductingsuccessfulcrossculturalnegotiationsisakeyingredientfor manyinternationalbusinesstransactions.Itisguidedbyparameterslikelanguage,sequence, communicationstyle,contractandcontext. StagesoftheNegotiationProcess: CrossCulturalNegotiationStrategiesincludethefollowing: a.Employinganagentoradvisor b.Involvingamediator c.Inducingthecounterparttofollowonesownnegotiationscript d.Adaptingthecounterpartsnegotiationscript e.Coordinatingadjustmentofbothparties f.Embracingthecounterpartsscript g.Improvisinganapproach. h.Effectingsymphony. Topickastrategy,thefollowingstepsoughttobeconsidered: Nontasksurroundings Taskrelatedinformationexchange Persuasion Concessionsandagreement

1.Reflectingononesculturesnegotiationpractices 2.Learningthenegotiationscriptcommoninthecounterpartsculture 3.Consideringtherelationshipandcontextualcues 4.Predictingorinfluencingthecounterpartsapproach 5.Choosingastrategy

 IncreasingNegotiatingEffectiveness Awaytothinkaboutdesiredoutcomesistodistinguishbetweensubstantiveandrelationshipoutcome. Substantivehavetodowithspecificissuessettledwhiletheobjectinrelationshipsistomaintaingood relationships. TheFourFactorsofNegotiatingEffectively 1. beingnegotiated. Obtainingsubstantialresultsactivitiesthatfocusonthecontentofwhatis

2. Influencingthebalanceofpowerthroughtheuseofpersuasion,factsand expertise,ratherthandominanceordeference. 3. Promotingaconstructiveclimateactivitiesthataredesignedtofacilitate progressbyminimizingthelikelihoodthattensionoranimositybetweenthepartiesbecomesdisruptive. 4. Obtainingproceduralflexibilityactivitiesthatallowanegotiatortoincrease negotiatingeffectivenessthroughincreasingthetypeandnumberofoptionavailableforconductingthe negotiations. UsingThirdPartyNegotiationsOftenusedwhennegotiationshavebrokendownorstalled. Severaldifferentapproaches:

a. Mediationaneutralpartyactsasafacilitatorthroughtheapplication ofreasoning,suggestion,andpersuasion. agreement. b. Arbitrationthethirdpartyhasthepowerorauthoritytoimposean

c. Conciliationthethirdpartyissomeonewhoistrustedbybothsides andserveprimarilyasamoreformalauthoritytoinfluencetheoutcomethandoesamediator. d. Consultationthethirdpartyistrainedinconflictandconflictresolution skillsandattemptstoaidproblemsolvingbyfocusingmoreontherelationshipbetweentheparties thanonthesubstanceissues. ImprovingNegotiations 1. Beginningthebargainingwithapositiveovertureorsmallconcession andthenreciprocatingtheopponentsconcessions.

 theopponent. surface.

2.

Concentratingonthenegotiationsissuesandsituationalfactors,noton

3.

Tryingtodeterminetheopponentsstrategybylookingbelowthe

4. Notallowingaccountabilitytoonesconstituentsorsurveillanceby themtoproducecompetitivebargaining. 5. 6. Usingpowerinanegotiation. Beingopentoacceptingthirdpartyassistance.

7. Attendingtotheenvironment;beingawarethattheopponents behaviorandpowerarealteredbyit. Questions 1. ExplainConflictinOrganizations.Discussacontemporaryperspectiveonintergroup conflict 2. Whatcausesintergroupconflict?Whatarethecausesofdysfunctionalintergroup conflict.WhatarethewaysofmanagingintergroupconflictthroughResolutionand StimulatingConstructiveintergroupconflictDiscusswithsuitableexamples.Which conflictmanagementtechniqueisbestandwhy? 3. WhatisNegotiation?Whatarethenegotiationtacticsfollowedinorganizations? 4. Whataretheissuesrelatedtonegotiation?DiscusswithexampleswaysofIncreasing negotiationeffectiveness