Chapter 10 (Management)

Limited Resources (10.3)

Resources such as money, time, and equipment are often scarce. Competition among people or departments for limited resources is a frequent cause for conflict Because important resources are often limited, this is one source of conflict many companies have to live with.

Negotiation Around the Globe (10.6)

Some cultures have a higher or lower threshold for conflict Japan or Korea preference is for harmony Americans and Germans have a much higher tolerance for conflict In a study of Japanese, German, and American cultures, it was found that almost half of the preference for different conflict management styles was related to the country in which participants were raised In Japan, much like Pakistan, the tendency is not to trust what is heard from the other party until a strong relationship is formed. China, conversations start out with innocuous topics to set a mood of friendliness.This differs a great deal from 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. Japanese negotiators tend to use offers as an information exchange process Research has found that American negotiators tend to reveal more information than their Japanese counterparts Japanese negotiators might learn little from a single offer, but patterns of offers over time are interpreted and factored into their negotiations. Since Japan is a high-context culture, information is learned from what is not said as well as from what is said. other cultures, the first step in negotiations is to develop a trusting relationship

Failing to Negotiate/Accept First Offer (10.5)

Some people are taught to feel that negotiation is a conflict situation, and these individuals may tend to avoid negotiations to avoid conflict Research shows that this negotiation avoidance is especially prevalent among women The good news is that it appears that it is possible to increase negotiation efforts and confidence by training people to use effective negotiation skill

Getting Overly Emotional (10.5)

Some researchers have found that those who express anger negotiate worse deals than those who do not Research has also shown that those with more power may be more effective when displaying anger. The weaker party may perceive the anger as potentially signaling that the deal is falling apart and may concede items to help move things along

Communication Problems (10.3)

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 Giving feedback is also a case in which the best intentions can quickly escalate into a conflict situation Time will tell what the lasting effects of this conflict will be, but in the short term, effective communication will be the key

Compromise (10.4)

Style is a middle-ground style, in which individuals have some desire to express their own concerns and get their way but still respect other person's goals

What If You Don't Have Enough Conflict Over Ideas? (10.4)

The reality is that within meaningful group discussions there are usually varying opinions about the best course of action. If people are suppressing their opinions, the final result may not be the best solution. During healthy debates, people point out difficulties or weaknesses in a proposed alternative and can work together to solve them. The key to keeping the disagreement healthy is to keep the discussion focused on the task, not the personalities.

Change the Structure (10.4)

When structure is a cause of dysfunctional conflict, structural change can be the solution to resolving the conflict If the conflict is at an intergroup level, such as between two departments, a structural solution could be to have those two departments report to the same executive, who could align their previously incompatible goals.

Interpersonal Conflict (10.2)

among individuals such as coworkers, a manager and an employee, or CEOs and their staff Interpersonal conflict often arises because of competition, as the Dell/Apple example shows, or because of personality or values differences Keeping conflicts centered around ideas rather than individual differences is important in avoiding a conflict escalation.

Arbitration-Mediation

arbitrator then makes a decision and places it in a sealed envelope If they are unable to reach an agreement on their own, the arbitration decisions become binding. Researchers using this technique found that it led to voluntary agreements between the two parties 71% of the time versus 50% for mediation followed by arbitration

Intrapersonal Conflict (10.2) (3)

arises within a person Lack in ability to meet expectations, you feel inadequate.. differences in roles Reasons why it arises 1. Lack of ability (inadequacy) 2. Role Conflict (two descriptions) 3. Role Ambiguity

Presentation (10.5)

assemble the information you've gathered in a way that supports your position

Determine Your BATNA (10.5)

best alternative to a negotiated agreement Take a holistic approach and consider everything that you possibly can

Incompatible Goals (10.3)

conflict arises when two parties think that their goals are mutually exclusive When two people have goals that are basically inverses of each other

Intergroup Conflict (10.2)

conflict that takes place among different groups... Departments, Divisions, Employee union, etc. Departments may conflict over budget allocations

Bargaining (10.5)

each party discusses their goals and seeks to get an agreement Concessions 1. giving up one thing to get something else in return concessions demonstrate cooperativeness and help move the negotiation toward its conclusion One key to the bargaining phase is to ask questions

Collaboration (10.4)

high on both assertiveness and cooperation Best outcome from conflict (both sides argue for their position with sufficient evidence) Find win-win

Investigation (10.5)

information gathering stage What are your goals for the negotiation? What do you want to achieve? What would you concede? What would you absolutely not concede? What do I value most? Is it the salary level? Working with coworkers whom I like? Working at a prestigious company? Working in a certain geographic area? Do I want a company that will groom me for future positions or do I want to change jobs often in pursuit of new challenges?

Tips for Ethical Negotiations (10.6) (3)

1. Be honest 2. Keep your promises 3. Follow the Platinum Rule (Golden Rule) Caring about others enough to treat them the way they want to be treated helps build long-term relationships based on ethics and trust

Ways to Manage Conflict (10.4) (5)

1. Change the structure 2. Change the Composition of the Team 3. Create a common opposing force 4. Consider Majority Rule 5. Problem Solve

Positive Outcomes of Conflict (10.3) (4)

1. Consideration of a broader range of ideas, resulting in a better, stronger idea 2. Surfacing of assumptions that may be inaccurate 3. Increased participation and creativity 4. Clarification of individual views that build learning

Negotiation Strategies (10.5) (2)

1. Distributive Approach 2. Integrative Approach

Common Mistakes to Avoid (10.5) (5)

1. Failing to Negotiative/Accept First Offer 2. Letting Your Ego Get in the Way 3. Having Unrealistic Expectations 4. Getting Overly Emotional 5. Letting Past Negative Outcomes Affect Present Ones

Negative Outcomes (10.3) (3)

1. Increased stress and anxiety among individuals, which decreases productivity and satisfaction 2. Feelings of being defeated and demeaned, which lowers individuals' morale and may increase turnover 3. A climate of mistrust, which hinders the teamwork and cooperation necessary to get work done

Types of Conflict (10.2) (3)

1. Intrapersonal 2. Interpersonal 3. Intergroup

Five Phases of Negotiation (10.5) (5)

1. Investigation 2. Determine Your BATNA 3. Presentation 4. Bargaining 5. Closure

Causes of Conflict (10.3) (6)

1. Organizational Structure 2. Limited Resources 3. Task Interdependence 4. Incompatible Goals 5. Personality Differences 6. Communication Problems

Ethics and Negotiations (10.6)

A good rule of thumb is that hardball tactics should not be used because the negotiation is likely not to be the last time you will interact with the other party Therefore find a deal!

Avoidance (10.4)

Avoiding style is uncooperative and unassertive Avoid conflict by denying its existence Habitual with those who need affiliation

Key Takeaway (10.6)

Being honest during negotiations, keeping your promises, and treating others as you would like to be treated all help you negotiate ethically. Not understanding the culture of a person or group of people you are negotiating with can be a major mistake. Try to learn as much as you can about the culture of others involved and be sure to clarify key points along the way. Also, keep in mind that agreement (e.g., nodding one's head up and down or saying "yes, yes") may not mean the same thing in all cultures

Integrative Approach (10.5)

Both parties look for ways to integrate their goals under a larger umbrella Expand the pie, becomes a win-win 1. Enter cooperatively 2. Listen Listening develops trust as each party learns what the other wants and everyone involved arrives at a mutual understanding 3. Achieve goals

Change the Composition of the Team (10.4)

Conflict between team members? Change the composition, separate personalities that were at odds Physical change (seating)

Key Takeaway (10.2)

Conflict can be a problem for individuals and organizations. There are several different types of conflict, including intrapersonal, interpersonal, and intergroup conflict. Moderate conflict can be a healthy and necessary part of organizational life.

Is Conflict Always Bad? (10.2)

Conflict can be dysfunctional if it paralyzes an organization, leads to less than optimal performance, or, in the worst case, leads to workplace violence. Surprisingly, a moderate amount of conflict can actually be a healthy (and necessary) part of organizational life Task conflict can be good in certain circumstances, such as in the early stages of decision making, because it stimulates creativity. However, it can interfere with complex tasks in the long run

Conclusion (10.8)

Conflict can run the gamut from minor annoyances to physically violent situations. At the same time, conflict can increase creativity and innovation, or it can bring organizations to a grinding halt. There are many different types of conflict, including interpersonal, intrapersonal, and intergroup. Within organizations, there are many common situations that can spur conflict. Certain organizational structures, such as a matrix structure, can cause any given employee to have multiple bosses and conflicting or overwhelming demands. A scarcity of resources for employees to complete tasks is another common cause of organizational conflict, particularly if groups within the organization compete over those resources. Of course, simple personality clashes can create intrapersonal conflict in any situation. Communication problems are also a very common source of conflict even when no actual problem would exist otherwise. When conflict arises, it can be handled by any number of methods, each with varying degrees of cooperation and competitiveness. Different situations require different conflict handling methods, and no one method is best. Negotiations occur during many important processes, and possessing astute negation skills can be an incredible tool. A key component to negotiations involves having a BATNA, or "best alternative to a negotiated agreement." Negotiations typically move through five phases, including investigation, determining your BATNA, presentation, bargaining, and closure. During a negotiation, it is important not to make any number of common mistakes. These mistakes can include accepting the first offer, letting ego get in the way, having unrealistic expectations of the outcome of the negotiation, becoming too emotional during the process, or being weighed down by previous failures and letting the past repeat itself. It is important to keep in mind that many cultures have preferential methods for handling conflict and negotiation. Individuals should understand the cultural background of others to better navigate what could otherwise become a messy situation.

Key Takeaway (10.3)

Conflict has many causes, including organizational structures, limitations on resources, task interdependence, goal incompatibility, personality differences, and communication challenges. Outcomes of well-managed conflict include increased participation and creativity, while negatives of poorly managed conflict include increased stress and anxiety. Jobs that deal with people are at higher risk for conflict.

Key Takeaway (10.4)

Conflict management techniques include changing organizational structures to avoid built-in conflict, changing team members, creating a common "enemy," using majority rules, and problem solving. Conflict management styles include accommodating others, avoiding the conflict, collaborating, competing, and compromising. People tend to have a dominant style. At times it makes sense to build in some conflict over ideas if none exists.

Create a Common Opposing Force (10.4)

Group conflict within an organization can be mitigated by focusing attention on a common enemy such as the competition Could be a concept or an idea as well

Consider Majority Rule (10.4)

Group members vote, majority wins Procedure has to be fair Used sparingly

Problem Solve (10.4)

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

Understanding Conflict (10.2)

Let's take a closer look at these social issues such as conflict to understand how they can derail companies and individuals alike—and what to do to prevent such consequences from happening to you One of the major ways to avoid conflicts escalating to these levels is through understanding the causes of conflict and developing methods for managing potential negative outcomes Negotiation is one of the most effective ways to decrease conflict and will also be examined in depth in this chapter.

Negotiation Failure: Case of the PointCast (10.1)

Merger professionals point to these euphemistically called 'social issues'—ego and corporate pride, that is—as among the most difficult aspects of negotiating multibillion-dollar mergers these days. Although financial issues can be vexing too, these social issues can be deal-breakers. even deals that look great financially can fall apart if participants fail to pay attention to organizational behavior issues such as perception, groupthink, and power and influence

Takeaway (10.5)

Negotiation consists of five phases that include investigation, determining your BATNA, presentation, bargaining, and closure. Different negotiation strategies include the distributive approach (fixed-pie approach) and the integrative approach (expanding-the-pie approach). Research shows that some common mistakes made during negotiations include accepting the first offer made, letting egos get in the way, having unrealistic expectations, getting overly emotional, and letting past negative outcomes affect the present ones. Third-party negotiators are sometimes needed when two sides cannot agree.

Distributive Approach (10.5)

Negotiation is the traditional fixed-pie approach Focusing on a fixed pie is a common mistake in negotiation, because this view limits the creative solutions possible.

Outcomes of Conflict (10.3)

One of the most common outcomes of conflict is that it upsets parties in the short run

Letting Your Ego Get in the Way (10.5)

People from the United States tend to fall into a self-serving bias in which they over inflate their own worth and discount the worth of other Remember that a good business relationship can only be created and maintained if both parties get a fair deal.

Personality Differences (10.3)

Personality differences among coworkers are common. By understanding some fundamental differences among the way people think and act, we can better understand how others see the world. Knowing that these differences are natural and normal lets us anticipate and mitigate interpersonal conflict

Best Style? (10.4)

Potential has the best potential to be highly effective in many different situations Research also shows that when it comes to dealing with conflict, managers prefer forcing, while their subordinates are more likely to engage in avoiding, accommodating, or compromising

Mediation (10.5)

outside third party (the mediator) enters the situation with the goal of assisting the parties in reaching an agreement mediator can facilitate, suggest, and recommend One of the advantages of mediation is that the mediator helps the parties design their own solutions, including resolving issues that are important to both parties, not just the ones under specific dispute

Arbitration

parties submit the dispute to the third-party arbitrator Makes the final decision Awards are in writing and bind the parties in the case Arbitration is often used in union-management grievance conflicts.

Competition (10.4)

want to reach their goal or get their solution adopted regardless of what others say or how they feel More interested in the outcome they want Poor relationships Strong moral objections to alternatives

Having Unrealistic Expectations (10.5)

we can establish goals big enough to include the key interests of each party and resolve the specific impasse we are currently facing. Setting reasonable goals at the outset that address each party's concerns will decrease the tension in the room, and will improve the chances of reaching an agreement." [13] Those who set unreasonable expectations are more likely to fail.

Task Interdependence (10.3)

when accomplishment of your goal requires reliance on others to perform their tasks

Closure (10.5)

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 If a deal falls through, reach out and find why it did... Work on your decisions from there

WorldCom (10.7)

Ebbers had little regard for long-term plans and avoided making larger strategic decisions as his company accumulated increasing debt.

Third-Party Negotiations (10.5) (4)

1. Alternative Dispute Resolution 2. Mediation 3. Arbitration 4. Arbitration-Mediation

Conflict-Handling Styles (10.4) (5)

1. Avoidance 2. Accommodation 3. Compromise 4. Competition 5. Collaboration

Conflict Management (10.4)

Conflict management refers to resolving disagreements effectively

Accommodation (10.4)

Cooperative and Unassertive person gives in to what the other side wants, even if it means giving up one's personal goals Effective if the issue at hand is more important to others compared to oneself

Negotiation

Negotiation is a process whereby two or more parties work toward an agreement. There are five phases of negotiation, which are described below.

Conflict (10.2)

Process that involves people disagreeing

Letting Past Negative Outcomes Affect the Present Ones (10.5)

Research shows that negotiators who had previously experienced ineffective negotiations were more likely to have failed negotiations in the future

Organizational Structure (10.3)

if a company uses a matrix structure as its organizational form, it will have decisional conflict built in, because the structure specifies that each manager report to two bosses

Alternative Dispute Resolution (ADR) (10.5)

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