Bus 160 - CH 13

Five forms of negotiation

(1) Compromise: Involves bargaining and negotiation motivated by the desire to reach a solution acceptable to both parties. (in the middle). (2) Collaboration: Find a solution because they are motivated not only to satisfy their own goals, but the goals of the other side. (High interest in help others, high interest in achieving own goals). (3) Accommodation: One party recognizes they lack the resources and power to negotiate equitably with the other party and so they allow the other party to pick a solution. (High interest in helping others, low interest in achieving own goals). (4) Avoidance: Both parties refuses to acknowledge the conflict and acts if no problem existed, thus lack of cooperation and lower performance. (low interest in helping others, low interest in achieving own goals). (5) Competition: Leads to the greatest and visible kind of conflict, each party is focused on their own goal and doesn't listen to others' positions. (low interest in helping others, high interest in achieving own goals).

Sources of organizational conflict

(1) Differentiation (2) Task relationships (3) Scarcity of resources

Promoting compromise

(1) Emphasize common goals. (2) Focus on the problem, not the people. (3) Focus on interests, not demands. (4) Create opportunities for joint gain. (5) Focus on what is fair. (6) Union-management negotiations.

How power can help organizations grow

(1) Managers can use power to control people and other resources so that they cooperate to achieve an organization's current goals. (2) Managers can also use power to engage in politics and influence the decision-making process to promote new, more appropriate organizational goals.

Coalition

A group of managers who have similar interests and join forces to achieve their goals. - When coalitions form, it can promote new changes to organization.

Mediator

A neutral third party who tries to help parties in conflict reconcile their differences.

Negotiation

A process in which groups with conflicting interests meet together to make offers, counteroffers, and concessions to each other in an effort to resolve their difference. - Important technique managers use negotiation of allocation of resources to resolve conflict among employees. - Need to help employees view the bargaining process as a win-win situation.

Arbiter

A third party who has the authority to impose a solution to a dispute.

Organizational politics

Activities in which managers engage to increase their power and to pursue goals that favor their individual and group interests.

Charismatic power

An intense form of referent power that stems from an individual's personality or physical or other abilities, which induce others to believe in and follow that person. - With charismatic power, the legitimate, reward, and coercive power lose their significance because followers give charismatic leader the right to hold the power and make the decision.

Third-party negotiator

An outsider skilled in handling bargaining and negotiation.

Scarcity of resources

Competition for scarce resources produces conflict.

Political decision making

Decision making characterized by active disagreement over which organizational goals to pursue and how to pursue them. - When different managers provide different solutions => increases quality decision making and effective use of organizational resources.

Sources of Individual power

Formal power - Legitimate power - Reward power - Coercive power - Information power Informal power - Expert power - Referent power - Charismatic power

Task relationships

Generates conflict because organizational tasks are interrelated and affect one another. Overlapping authority - If 2 different functions claim authority for the same task, conflict could develop, such as misunderstandings of the task relationship and responsibilities of different groups. - Can cause fighting over resources. Task interdependence - Production of goods depend on flow of work from one function to another. - If one function fails to perform well, the ability of the next function to perform at a high level decreases. - As task interdependence increases, conflict increases. Incomplete evaluation systems - Inequitable performance evaluation systems that reward some functions, but not others sometimes create conflict.

Group-level conflict management

Group-level management is aimed at changing the attitudes and behaviors of groups and departments in conflict. - Managers that have coordination authority can physically separate work groups, deny them the opportunity to work face to face, and eliminate the potential for direct conflict. This is only a temporary fix. - Negotiation between groups are held with/without a third party negotiator.

Expert power

Informal power that stems form superior ability or expertise.

Referent power

Informal power that stems from being liked, admired, and respected. - People high on agreeableness, extraversion, or conscientiousness.

Individual-level conflict

Management of conflict between individuals is directed towards changing the attitudes or behaviors of those involved in the conflict. - Organizations can help employees understand each other's PO by giving advice, education, and sensitivity & awareness training. - If conflict is due to disagreement about how work should be performed or about the performance of another person, then managers can use step-by-step negotiation to resolve things. - If conflict cannot be resolved, managers should rotate the employees' jobs or assign different projects to them. - As a last resort, organization can fire the people in conflict.

Differentiation

Occurs when employees and tasks are split up into different groups, so that they can produce goods/services more effectively. Splitting of organization into divisions produces conflict. Differences in functional orientations - Different divisions develop different beliefs about the right way - Each division have own goals tasks, jobs, priorities. Status inconsistencies - Functions whose activities are most central and essential to the company's operations come to view themselves as more important. - As a result, they may attempt to achieve their goals at the expense of other functions, which lowers the other function's performance.

Formal individual power

Power that originates from a person's position in an organization

Informal individual power

Power that stems from personal characteristics such as personality skills and capabilities.

Power

The ability of one person or group to cause another person or group to do something they otherwise might not have done.

Information power

The power that stems from access to and control over information. - The more information power, the more easier for the manager to resolve problems, so that subordinates rely on them.

Legitimate power

The power to control and use organizational resources to accomplish organizational goals.

Coercive power

The power to give or withhold punishment.

Reward power

The power to give pay raises, promotion, praise, interesting projects, and other rewards to subordinates.

Organizational conflict

The struggle that arises when the goal-directed behavior of one person or group blocks the goal-directed behavior of another person or group. - Past view of conflict is that it is bad and lowers job performance and is caused because managers haven't designed an organization that allows people to cooperate and achieve common goals. - New view states that conflict can increase performance if it is carefully managed and negotiated. - Conflict can increase performance because it exposes weaknesses in organizational decision making and design and prompts the organization to make changes. - Optimal level of organizational growth is when conflict is medium and performance level is high.

Step-by-step negotiation

Used by managers to resolve conflict between employees regarding disagreements on how to approach a project or complaints about another employee. (1) Managers meets with employees in conflict and outlines the way their behavior is affecting their job performance and other members. Each employee is asked to express their thoughts and feelings so everyone can understand each others POV. (2) Manager summarizes the dispute between employees in a written form, creating a report that matches both sides of the case to identify the main factors in dispute. (3) Manager discusses the facts in the report with each employee separately acting as a neutral 3rd party; uses fact-finding report to work out a solution each employee can accept until they all come into an agreement. (4) Manager meets with both employees to discuss the agreement and get their commitment to resolve the dispute.