CH10: Conflict and Negotiations

Consider the Role of Mood

Research shows that negotiators in positive moods tend to be more cooperative and less likely to en- gage in conflict as well as even come to agreements that are more advantageous to all parties.

conflict management

Resolving disagreements effectively.

Limited Resources

Resources such as money, time, and equipment are often scarce. Competition among people or depart- ments for limited resources is a frequent cause for conflict.

Consider Majority Rule

Sometimes a group conflict can be resolved through majority rule. That is, group members take a vote, and the idea with the most votes is the one that gets implemented.

Communication Problems

Sometimes conflict arises simply out of a small, unintentional communication problem, such as lost e- mails or dealing with people who don't return phone calls.

Incompatible Goals

Sometimes conflict arises when two parties think that their goals are mutually exclusive. Within an or- ganization, incompatible goals often arise because of the different ways department managers are com- pensated.

BATNA

Stands for the "best alternative to a negotiated agreement." Determining your BATNA is one important part of the investigation and planning phase in negotiation.

bargaining

The fourth phase of negotiation in which parties discuss their goals and seek agreement.

closure

The last part of negotiation in which you and the other party have either come to an agreement on the terms, or one party has decided that the final offer is unacceptable and therefore must be walked away from.

in-group bias

The tendency to favor the group to which one belongs.

presentation

The third phase of negotiation in which information is assembled in a way that supports one's position.

distributive view

The traditional fixed-pie approach in which negotiators see the situation as a pie that they have to divide between them.

Investigation

The first step in negotiation in which information is gathered.

Change the Structure

When structure is a cause of dysfunctional conflict, structural change can be the solution to resolving the conflict.

Conflict

a process that involves people disagreeing.

Personality differences

among coworkers are common. By understanding some fundamental differ- ences among the way people think and act, we can better understand how others see the world.

Task conflict

can be good in certain circumstances, such as in the early stages of decision making, because it stimulates creativity.

Personal conflicts

such as personal attacks, are never healthy because they cause stress and distress, which undermine performance.

Conflict and Negotiation Around the Globe

- Japan or Korea, the preference is for harmony (called wa in Japan) rather than overt conflict. - Americans and Germans have a much higher tolerance for conflict as a way of working through issues - In Japan, much like Pakistan, the tendency is not to trust what is heard from the other party until a strong relationship is formed. Similarly, in China, conversations start out with innocuous topics to set a mood of friendliness - American negotiators who tend to like to "get down to business" and heavily weigh first offers as reference points that anchor the process as both sides make demands and later offers. -

Positive outcomes

< Consideration of a broader range of ideas, resulting in a better, stronger idea < Surfacing of assumptions that may be inaccurate < Increased participation and creativity < Clarification of individual views that build learning

Negative outcomes

< Increased stress and anxiety among individuals, which decreases productivity and satisfaction < Feelings of being defeated and demeaned, which lowers individuals' morale and may increase turnover < A climate of mistrust, which hinders the teamwork and cooperation necessary to get work done

collaborating

A conflict-handling style that is high on both assertiveness and cooperation.

competing

A conflict-handling style that is highly assertive but low on cooperation.

accommodating

A cooperative and unassertive conflict-handling style.

compromising

A middle-ground conflict-handling style, in which a person has some desire to express their own concerns and get their way but still respects the other person's goals as well.

mediation

A process in which an outside third party (the mediator) enters the situation with the goal of assisting the parties to reach an agreement.

arbitration

A process that involves bringing in a third party, the arbitrator, who has the authority to act as a judge and make a binding decision to which both parties must adhere.

negotiation

A process whereby two or more parties work toward an agreement.

Interpersonal conflict

A type of conflict between two people. Interpersonal conflict is among individuals such as coworkers, a manager and an employee, or CEOs and their staff.

When All Else Fails: Third-Party Negotiations

Alternative Dispute Resolution Mediation Arbitration Arbitration-Mediation

integrative approach

An approach to negotiation in which both parties look for ways to integrate their goals under a larger umbrella.

avoiding

An uncooperative and unassertive conflict-handling style.

Task Interdependence

Another cause of conflict is task interdependence; that is, when accomplishment of your goal requires reliance on others to perform their tasks.

Conflict-Handling Styles

Avoidance Accommodation Compromise Competition Collaboration

Ways to Manage Conflict

Change the Structure Change the Composition of the Team Create a Common Opposing Force Consider Majority Rule Problem Solve Consider the Role of Mood

Organizational Structure

Conflict tends to take different forms, depending upon the organizational structure.

Intrapersonal conflict

Conflict that arises within a person. - Intrapersonal conflict can arise because of differences in roles. - Role conflict, another type of intrapersonal conflict, includes having two different job descriptions that seem mutually exclusive. - A third type of intrapersonal conflict involves role ambiguity

intergroup conflict

Conflict that takes place among different groups, such as different departments or divisions in a company, or between union and management, or between companies, such as companies who supply the same customer.

Negotiation Strategies

Distributive Approach Integrative Approach

concessions

Giving up one thing to get something else in return.

Create a Common Opposing Force

Group conflict within an organization can be mitigated by focusing attention on a common enemy such as the competition.

Change the Composition of the Team

If the conflict is between team members, the easiest solution may be to change the composition of the team, separating the personalities that were at odds.

Alternative Dispute Resolution (ADR)

Includes mediation, arbitration, and other ways of resolving conflicts with the help of a specially trained, neutral third party without the need for a formal trial or hearing.

The Five Phases of Negotiation

Investigation Determine your BATNA Presentation Bargaining Closure

Which Style Is Best?

Like much of organizational behavior, there is no one "right way" to deal with conflict. Much of the time it will depend on the situation. However, the collaborative style has the potential to be highly effective in many different situations.

Outcomes of Conflict

One of the most common outcomes of conflict is that it upsets parties in the short run. - On the positive side, conflict can result in greater creativity or better decisions. - conflict can be dysfunctional if it is excessive or involves personal attacks or underhanded tactics.

Causes of Conflict

Organizational Structure Limited Resources Task Interdependence Incompatible Goals Personality differences Communication Problems

Problem Solve

Problem solving is a common approach to resolving conflict. In problem-solving mode, the individuals or groups in conflict are asked to focus on the problem, not on each other, and to uncover the root cause of the problem.