Managing Conflict and Negotiating

Chapter 13
McGraw-Hill/Irwin Copyright 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
2008The McGraw-Hill Companies, Inc. All rights reserved.

Ch. 13 Learning Objectives

1. Define the term conflict, and put the three metaphors of conflict into proper perspective for the workplace. 2. Distinguish between functional and dysfunctional conflict, and discuss why people avoid conflict 3. List six antecedents of conflict, and identify the desired outcomes of conflict. 4. Define personality conflicts, and explain how managers should handle them. 5. Discuss the role of in-group thinking in intergroup conflict, and explain what management can do about 13-2 intergroup conflict

Ch. 13 Learning Objectives

6. Discuss what can be done about cross-cultural conflict. 7. Explain how managers can stimulate functional conflict, and identify the five conflict-handling styles. 8. Explain the nature and practical significance of conflict triangles and alternative dispute resolution for third-party conflict intervention. 9. Explain the difference between distributive and integrative negotiation, and discuss the concept of added-value negotiation.
13-3

Conflict
Conflict One party
perceives its interests are being opposed or set back by another party

Is conflict always bad? During a conflict, if someone used the term war vs. opportunity, how would it make you feel?
13-4

The Relationship between Conflict Intensity and Outcomes

Positive

Neutral

Negative

Too little conflict

Appropriate conflict

Too much conflict

Low

Moderate Intensity

High

13-5

Functional vs. Dysfunctional Conflict

Functional Conflict
serves organizations interests Typically issue-focused Stimulates creativity

Dysfunctional Conflict threatens

organizations interests Typically personfocused Breeds hostility Stifles communication

13-6

Causes of Conflicts
Incompatible personalities or value systems Role ambiguity/ overload Interdependent tasks Competition for limited resources
13-7

Desired Conflict Outcomes

1) Agreement: strive for
equitable and fair agreements that last

2) Stronger Relationships: build

bridges of goodwill and trust for the future

3) Learning: greater selfawareness and creative problem solving

13-8

How to Deal with Personality Conflicts

Dirk and Linda are working closely together on a project. However, they have very different personalities and working styles. For example, Dirk prefers to create plans and checklists and Linda has a more free-flowing approach to work. Linda is now so frustrated she is concerned the project will not get completed. What type of conflict is this? What should she do?

13-9

Tips for Employees Having a Personality Conflict

All employees need to be familiar with and follow company policies for diversity, antidiscrimination, and sexual harassment Communicate directly with the other person to resolve the perceived conflict Avoid dragging co-workers into the conflict If dysfunctional conflict persists, seek help from direct supervisors or human resource specialists
13-10

How to Deal with Personality Conflicts

Chris works with Dirk on another project. Dirk approaches Chris and begins to complain about Linda. What type of conflict is this? As a third-party, what should he do?

13-11

Tips for Third-Party Observers of a Personality Conflict

All employees need to be familiar with and follow company policies for diversity, antidiscrimination, and sexual harassment Do not take sides in someone elses personality conflict Suggest the parties work things out themselves in a constructive and positive way If dysfunctional conflict persists, refer the problem to parties direct supervisors
13-12

How to Deal with Personality Conflicts

Sarah, Dirk and Lindas boss, has just been informed that the completion of the project is in jeopardy due to conflict between Dirk and Linda. Linda is now so frustrated she is concerned the project will not get completed. As their manager, what should she do?

13-13

Tips for Managers Whose Employees are Having a Personality Conflict

All employees need to be familiar with and follow company policies for diversity, anti-discrimination, and sexual harassment Investigate and document conflict If appropriate, take corrective action If necessary, attempt informal dispute resolution Refer difficult conflict to human resource specialists or hired counselors for formal resolution attempts and other interventions
13-14

Minimizing Intergroup Conflict

Level of perceived intergroup conflict tends to increase when: Recommended actions:

Conflict within the group is high There are negative interactions between groups Influential third-party gossip about other group is negative

Work to eliminate specific negative interactions between groups Conduct team building to reduce intragroup conflict and prepare employees for cross-functional teamwork Encourage personal friendships and good working relationships across groups and departments Foster positive attitudes toward members of other groups Avoid or neutralize negative gossip across groups or departments
13-15

Ways to Build Cross-Cultural Relationships

Behavior Rank

Be a good listener Be sensitive to the needs of others Be cooperative rather than overly competitive Advocate inclusive (participative) leadership Compromise rather than dominate Build rapport through conversations Be compassionate and understanding

1 2 2 3 4 5 6
Tie

Avoid conflict by emphasizing harmony Nurture others (develop and mentor)

7 8
13-16

Test Your Knowledge

The manufacturing and research departments of XYZ corporation often have different perspectives resulting in conflict. Within group cohesiveness is strong but animosity across the groups is growing. To promote harmony and functional conflict between the groups the company should NOT: a. Keep the groups apart to minimize interaction and conflict. b. Establish cross-functional project teams so members of both groups work together. c. Stop people who gossip about the other group. d. Have the groups attend a social function together. 13-17

Stimulating Functional Conflict

Devils Advocacy Approach 1) Action proposed 2) Devils advocate criticizes it 3) Both sides presented to decision makers 4) Decision is made and monitored Dialectic Decision Method 1) Action proposed 2) Assumptions identified 3) Counterproposal generated on different assumptions 4) Debate takes place 5) Decision is made and monitored

13-18

Five Conflict-Handling Styles

Concern for Others High Integrating Obliging

Compromising

Low

Dominating

Avoiding

High Concern for Self

Low
13-19

Test Your Knowledge

Alfonso tends to be an agreeable person with a high need for affiliation. When he encounters conflict situations at work which conflict management style is he most and least likely to use, respectively.
a. b. c. d. e. Dominating; Integrating Integrating; Compromising Compromising; Avoiding Obliging; Dominating Avoiding; Obliging

13-20

Third-Party Intervention Options for Handling Conflict

These options are considered less political; low risk of dysfunctional conflict
1) Reroute complaints by coaching the sender to find ways to constructively bring up the matter with the receiver. Do not carry messages for the sender Facilitate a meeting with the sender and receiver to coach them to speak directly and constructively with each other Transmit verbatim messages with the senders name included and coach the receiver on constructive ways to discuss the message with the sender

2) 3)

13-21

Third-Party Intervention Options for Handling Conflict

These options are considered more political; high risk of dysfunctional conflict
4) Carry the message verbatim but protect the senders name 5) Soften the message to protect the sender 6) Add your spin to the message to protect the sender 7) Do nothing. The participants will triangle in someone else 8) Do nothing and spread the gossip. You will triangle in others
13-22

Alternative Dispute Resolution (ADR)Techniques

Alternative Dispute Resolution (ADR)
avoiding costly lawsuits by resolving conflicts informally or through mediation or arbitration

Mediation Neutral third party guides parties to make a mutually acceptable solution Arbitration Parties agree to accept the decision of the neutral arbitrator
13-23

Negotiation
Negotiation give-and-take
process between conflicting interdependent parties Distributive negotiation: Single issue; fixed-pie; winlose. Integrative negotiation: More than one issue; broadening the pie; win-win.

13-24

An Integrative Negotiation
Steps 1. Clarify Interests 2. Identify options
1. 2. Separately

Jointly

Identify tangible and 1. Discuss respective needs intangible needs Identify elements of value
2. Discuss respective elements of value 3. Exchange deal packages 4. Discuss and select from feasible deal packages be creative 5. Discuss unresolved issues; build relationships for future negotiations; put in writing

and match 3. Design alternative 3. Mix elements of value deal packages into different deals

4. Select a Deal 5. Perfect the deal

4.

Analyze deal packages proposed

13-25

Questionable/Unethical Tactics in Negotiation

Lies Exaggerated praise Deception Weakening the opponent Strengthening ones own position Nondisclosure Information exploitation Change of mind Distraction Maximization 13-26

Test Your Knowledge

Before entering a negotiation with a client over the price of his companys service, Ben thinks about the clients interests and his companys interests. He then brainstorms several options that would satisfy both needs. The approach Ben is taking represents:
a. b. c. d. Integrative negotiation Distributive negotiation I win, you lose negotiation Compromise negotiation

13-27