Chapter 07: Conflict &

Negotiation

12-1
Managing Conflict

• Conflict occurs when opposing parties have

interests or goals that appear to be incompatible,
such as when team members:
– Have strong differences in values, beliefs, or goals.
– Have high levels of task or lateral interdependence.
– Are competing for scarce resources or rewards.
– Are under high levels of stress.
– Face uncertain or incompatible demands.

12-2
Managing Conflict (continued)

• Conflict also occurs when leaders’ actions are

inconsistent with their stated goals and vision.

• Breakdowns in communication are the most

important source of conflict.

12-3
Managing Conflict (continued)

The conflict resolution process is affected by several

factors.

• The nature of the conflict

– The size of an issue
– The extent to which the problem is defined egocentrically
– The existence of hidden agendas
• Seeing a conflict situation in win–lose or zero-sum
terms
• Perceiving the conflict as unresolvable

12-4
Conflict Resolution Strategies

• Thomas described five conflict management

approaches based on dimensions of
cooperativeness vs. uncooperativeness and
assertiveness vs. unassertiveness.

– Competition reflects a desire to achieve one’s own ends

at the expense of someone else. This is domination, also
known as a win–lose orientation.

– Accommodation reflects a mirror image of competition—

entirely giving in to someone else’s concerns without
making any effort to achieve one’s own ends. This is a
tactic of appeasement.

12-5
Conflict Resolution Strategies
(continued)

– Sharing is an approach that represents a compromise

between domination and appeasement. Both parties give
up something, yet both parties get something.

– Collaboration reflects an effort to fully satisfy both parties.

This is a problem-solving approach that requires the
integration of each party’s concerns.

– Avoidance involves indifference to the concerns of both

parties. It reflects a withdrawal from or neglect of any
party’s interests.

12-6
Conflict Resolution Strategies
(continued)

12-7
 Negotiation

• Negotiation is a dialogue between two

or more people or parties intended to
reach a beneficial outcome over one or
more issues where a conflict exists.

• It is aimed to resolve points of difference.

12-8
 General Approaches of Negotiation

• Distributive Bargaining
– Negotiation that seeks to divide up a fixed
amount of resources; a win-lose situation

• Integrative Bargaining
– Negotiation that seeks one or more
settlements that can create a win-win
solution

12-9