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
 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

Too little Appropriate Too much

Negative conflict conflict conflict
Low Moderate High
Intensity

13-5
Functional vs. Dysfunctional Conflict
Functional Conflict Dysfunctional
serves organization’s Conflict threatens
interests organization’s
Typically issue-focused interests
Stimulates creativity Typically person-
focused
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 self-
awareness 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, anti-
discrimination, 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, anti-
discrimination, and sexual harassment
Do not take sides in someone else’s
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 Linda’s 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 Recommended actions:
intergroup conflict tends
to increase when:
• Work to eliminate specific negative
interactions between groups
• Conflict within the • Conduct team building to reduce
group is high intragroup conflict and prepare
• There are negative employees for cross-functional teamwork
interactions between • Encourage personal friendships and
groups good working relationships across
• Influential third-party groups and departments
gossip about other group • Foster positive attitudes toward
is negative 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 1
Be sensitive to the needs of others 2
Tie
Be cooperative rather than overly competitive 2
Advocate inclusive (participative) leadership 3
Compromise rather than dominate 4
Build rapport through conversations 5
Be compassionate and understanding 6
Avoid conflict by emphasizing harmony 7
Nurture others (develop and mentor) 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
• Devil’s Advocacy Approach
1) Action proposed
2) Devil’s 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

High
Concern for Others

Integrating Obliging

Compromising

Low Dominating Avoiding

High Low
Concern for Self 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. Dominating; Integrating
b. Integrating; Compromising
c. Compromising; Avoiding
d. Obliging; Dominating
e. 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
2) Facilitate a meeting with the sender and receiver to coach
them to speak directly and constructively with each other
3) Transmit verbatim messages with the sender’s name included
and coach the receiver on constructive ways to discuss the
message with the sender

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
sender’s 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; win-
lose.
Integrative negotiation:
More than one issue;
“broadening the pie”;
win-win.
13-24
 An Integrative Negotiation
Steps Separately Jointly

1. Clarify Interests 1. Identify tangible and 1. Discuss respective needs

intangible needs

2. Identify options 2. Identify elements of 2. Discuss respective elements

value of value

3. Design alternative 3. Mix and match

elements of value 3. Exchange deal packages
deal packages into different deals
4. Discuss and select from
4. Select a Deal 4. Analyze deal feasible deal packages – be
packages proposed creative
5. Perfect the deal
5. Discuss unresolved issues;
build relationships for
future negotiations; put in
writing
13-25
Questionable/Unethical Tactics in
Negotiation
Lies
Exaggerated praise
Deception
Weakening the opponent
Strengthening one’s 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 company’s service, Ben thinks
about the client’s interests and his company’s
interests. He then brainstorms several options
that would satisfy both needs. The approach
Ben is taking represents:
a. Integrative negotiation
b. Distributive negotiation
c. “I win, you lose” negotiation
d. Compromise negotiation 13-27
 Managing Conflict
and Negotiating

Supplemental
Slides

Chapter 13
© 2008The McGraw-Hill Companies, Inc. All rights reserved.
 Avoiding Negotiation

Every employee at same level

gets equal pay based on:

Scope and
Yrs. of
responsibility
relevant Skill level
of role in
experience
organization
Source: Spolsky, J., Why I Never Let Employees Negotiate Pay Raises, Inc., Vol. 29, April 2009 13-29
 Avoiding Negotiation

What are the pros and cons of this

approach?

Does the system capture most/all

relevant employee differences
with regard to pay?
Source: Spolsky, J., Why I Never Let Employees Negotiate Pay Raises, Inc., Vol. 29, April 2009 13-30
 Avoiding Negotiation

If market goes up, ALL

employees at that level get an
increase not just the new hires.

What if market goes down?

Source: Spolsky, J., Why I Never Let Employees Negotiate Pay Raises, Inc., Vol. 29, April 2009 13-31
 Personality Conflict/Incivility

Common examples of incivility

•Berating bosses
•Employees who take credit for other’s
work
•Assigning blame
•Spreading rumors
•Excluding teammates
Source: Porath, C. & Pearson, C. (2009). How Toxic Colleagues Corrode Performance, Harvard Business Review, Vol. 87, pg. 24. 13-32
 Personality Conflict/Incivility
Targets of incivility reported:
•48% decreased their work effort
•47% decreased their time at work
•38% decreased their work quality
•66% said their performance declined
•80% lost work time worrying about the incident
•63% lost time avoiding the offender
•78% said their commitment to the organization
declined
Source: Porath, C. & Pearson, C. (2009). How Toxic Colleagues Corrode Performance, Harvard Business Review, Vol. 87, pg. 24. 13-33
 Personality Conflict/Incivility

What types of workplace

incivility have you observed?

How should organizations

deal with incivility?
Source: Porath, C. & Pearson, C. (2009). How Toxic Colleagues Corrode Performance, Harvard Business Review, Vol. 87, pg. 24. 13-34
 Video Cases
Toxic Coworkers

13-35
 Management in the Movies
Jaws – “The Town Meeting”
In this scene, the Mayor is leading a town meeting
with Chief Brody and the merchants.
Questions
• How is the conflict of closing the beach handled?
• Which conflict management strategy does Chief Brody
use?
• Which strategy does the mayor use?

13-36
 Getting Your Slice
Sell Yourself
Do your homework
Act now
Grab a bonus
Go for a promotion
Take the consolation prize

For more go to Negotiation Tips by Wren Withers at

negotiateyoursalary.com

Source: Fackelmann, K. Arguing hurts the heart in more ways than one, USA Today, 3/6/07 p. 10D 13-37
 Arguing Hurts the Heart
Couples who make nasty or controlling remarks are
at risk of developing heart disease
Researchers discovered:
• Hostile wives had double the level of clogged
arteries as those who discussed matters in less
hostile ways – even worse with hostile husbands
• Husbands who made domineering statements or
whose wife did had arteries 1.5 times more
clogged than husbands who were not in
controlling relationships
Source: Fackelmann, K. Arguing hurts the heart in more ways than one, USA Today, 3/6/07 p. 10D 13-38
Manager’s Hot Seat Video: Partnership:
The Unbalancing Act
1. Jonas and Rande are facing a difficult situation. What
sources of conflict contributed to the problems they are
having?
 1. What is the key problem?
A. Time management
B. Communication
C. Overlapping tasks
 2. Jonas’ behavior indicates:
A. Disinterest
B. Burn-out
C. Distraction

13-39
 Partnership: The Unbalancing Act
(cont.)
1. Which type of conflict is depicted in this
scenario?
2. Evaluate Rande’s approach to resolving this
conflict. What conflict management style did
she use?

 3. How was this meeting?

A. A success
B. A good start
C. A failure 13-40
Costs of Dysfunctional Conflict
Fortune 500 senior executives spend 20 percent of
their time in litigation activities.
Typical managers spend up to 30 percent of their
time dealing with conflict.
The turnover costs for an employee are anywhere
from between 75 percent and 150 percent of their
annual salary.
16 percent of employees report conflict with a
supervisor as the main reason for leaving their last
job.
13-41
 Why Conflict Matters
“The best insurance against crossing the ethical
divide is a roomful of skeptics.”
“CEOs must actively encourage dissent among
senior managers by creating decision-making
processes, reporting relationships, and incentives
that encourage opposing viewpoints…”
“By advocating dissent, top executives can create a
climate where wrongdoing will not go
unchallenged.”

13-42
Source: The crisis in corporate governance, 5/6/2002, BusinessWeek Special Report)
 The Columbia Shuttle Disaster
Investigator: As a manager, how do you seek out
dissenting opinions?
MMT Chair: Well, when I hear about them.
Investigator: By their very nature you may not hear
about them.
MMT Chair: Well, when somebody comes forward
and tells me about them.
Investigator: But, what techniques do you use to get
them?
Apparently, the MMT Chair did not have an answer
to this question.
13-43
SOURCE: Langewiesche, Atlantic Monthly, November 2003, pg. 82
 Columbia Shuttle Disaster
Engineer Rodney Rocha:
• “I couldn’t do it [speak up more forcefully]… I’m too
low down… and she’s [Ham] way up here.”
Former shuttle astronaut Jim Bagian:
• “At senior levels, during the 1990s, dissent was not
tolerated, and therefore, people learned if you wanted to
survive in the organization, you had to keep your mouth
shut.”

13-44
Salary Negotiation Tips for Managers
Establish what the position is worth the
company
Choose whether to disclose the salary range
Communicate when negotiation is over
Find creative ways to sweeten the
employment package
Explain the costs of company’s concessions
Be aware of the balance of power
13-45
Defending Your Life Movie Clip
Did Al Brooks have
an effective plan
upon entering the
negotiation?
What factors
contributed to his
actual negotiation
performance? 13-46
 The Wisdom of Dumb Questions
Dumb questions lead to smart
decisions
Dumb questions require courage, if
they didn’t they wouldn’t be worth
asking.
Why are people reluctant to ask
dumb questions?
Taken from Fortune, June 27th 2005 pg. 157 13-47
 Conflict at Its Worst
Workplace bullying
•Repeated nonphysical, health-
impairing psychological
mistreatment that falls outside
discriminatory harassment
•Affects turnover, productivity and
potential for litigation
13-48
 Conflict at Its Worst
How to deal with a bully
•Have a supervisor at least two levels
above the targeted boss clamp down on
the bully by
•Stating the behavior will not be tolerated,
he/she will be monitored, he/she will be
fired if behavior continues

13-49
 Conflict Management Tips
Speak your mind and heart
Listen well
Express strong feelings appropriately
Remain rational for as long as you can
Review what has been said
Learn to give and take
Avoid all harmful statements
13-50
 The Wisdom of Dumb Questions
How to ask dumb questions…..
•Don’t apologize beforehand
•Don’t say this is a dumb question but….
•Simply state the questions confidently
•Don’t be intimidated by the stunned
silence that follows…. Wait it out.

Taken from Fortune, June 27th 2005 pg. 157

13-51
Best Leadership/Career Advancement
Behaviors
Perspective taking
Creating solutions
Expressing
emotions
Reaching out

13-52
 Worst Leadership/Career
Advancement Behaviors
Avoidance
Winning at all
costs
Displaying anger
Demeaning
others
Retaliating
13-53
 Driving Each Other Crazy in the
Workplace
Messing up the break room
Sabotaging restrooms
Inaccessibility
Not returning phone calls,
voice mail, email
Habitually interrupting
Setting impossible deadlines
Reprimanding others in
public
13-54
 Conclusion
Questions for discussion

13-55