ORGANIZATIONAL BEHAVIOR

Conflict and Negotiation

Three Types of Conflict and Three Loci of
Conflict
• Conflict: a process that begins when
one party perceives that another
party has negatively affected, or is
about to negatively affect, something
that the first party cares about.
• If no one is aware of a conflict,
then it is generally agreed no
conflict exists.
• Also needed to begin the conflict
process are opposition or
incompatibility and interaction.
Three Types of Conflict and Three Loci of
Conflict
• Contemporary perspectives
differentiate types of conflict based
on their effects.
• Functional conflict supports the
goals of the group and improves
its performance.
• Conflicts that hinder group
performance are dysfunctional or
destructive forms of conflict.
Three Types of Conflict and Three Loci of Conflict
Exhibit 18-1 Conflict and Unit
Performance
Three Types of Conflict and Three Loci of
Conflict
• Types of Conflict
• Researchers have classified
conflicts into three categories:
• Task conflict relates to the
content and goals of the work.
• Relationship conflict focuses
on interpersonal relationships.
• Process conflict is about how
the work gets done.
Three Types of Conflict and Three Loci of Conflict

• Loci of Conflict
• Another way to understand
conflict is to consider its locus, or
where the conflict occurs.
• There are three basic types:
• Dyadic conflict is conflict
between two people.
• Intragroup conflict occurs
within a group or team.
• Intergroup conflict is conflict
between groups or teams.
Outline the Conflict Process
Exhibit 18-2 The Conflict Process
Outline the Conflict Process
• Intentions: decisions to act in a given
way.
• Competing
• Collaborating
• Avoiding
• Accommodating
• Compromising
Outline the Conflict Process
Competing
• When one person seeks to satisfy his
or her own interests regardless of the
impact on the other parties in the
conflict, that person is competing. We
are more apt to compete when
resources are scarce.
Outline the Conflict Process
Collaborating
• When parties in conflict each desire to
fully satisfy the concerns of all parties,
there is cooperation and a search for a
mutually beneficial outcome.
Outline the Conflict Process
Avoiding
• A person may recognize that a conflict
exists and want to withdraw from or
suppress it. Examples of avoiding
include trying to ignore a conflict and
keeping away from others with whom
you disagree.
Outline the Conflict Process
Accommodating
• A party who seeks to appease an
opponent may be willing to place the
opponent’s interests above his or her
own, sacrificing to maintain the
relationship. We refer to this intention
as accommodating.
Outline the Conflict Process
Compromising
• In compromising, there is no winner
or loser. Rather, there is a willingness
to rationalize the object of the conflict
and accept a solution with incomplete
satisfaction of both parties’ concerns.
• The distinguishing characteristic of
compromising therefore is that each
party intends to give up something.
Outline the Conflict Process
Exhibit 18-3 Conflict-Intensity Continuum
Outline the Conflict Process
Exhibit 18-4 Conflict Management Techniques
Conflict-Resolution Techniques Blank
Problem solving Meeting face to face for the purpose of identifying the problem and resolving it through open
discussion.
Superordinate goals Creating a shared goal that cannot be attained without the cooperation of each of the
conflicting parties.
Expansion of resources Expanding the supply of a scarce resource (for example, money, promotion, opportunities,
office space).
Avoidance Withdrawing from or suppressing the conflict.
Smoothing Playing down differences while emphasizing common interests between the conflicting
parties.
Compromise Having each party to the conflict give up something of value.
Authoritative command Letting management use its formal authority to resolve the conflict and then communicating
its desires to the parties involved.
Altering the human variable Using behavioral change techniques such as human relations training to alter attitudes and
behaviors that cause conflict.
Altering the structural variables Changing the formal organization structure and the interaction patterns of conflicting parties
through job redesign, transfers, creation of coordinating positions, and the like.
Outline the Conflict Process
[Exhibit 18-4 Continued]

Conflict-Stimulation Techniques Blank

Communication Using ambiguous or threatening messages to increase conflict levels.

Bringing in outsiders Adding employees to a group whose backgrounds, values, attitudes, or managerial
styles differ from those of present members.
Restructuring the organization Realigning work groups, altering rules and regulations, increasing interdependence,
and making similar structural changes to disrupt the status quo.

Appointing a devil’s advocate Designating a critic to purposely argue against the majority positions held by the
group.

Source: Based on S. P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice
Hall, 1974): 59–89.
Outline the Conflict Process

• Stage V: Outcomes
– Conflict is constructive when it…
▪ Improves the quality of
decisions, stimulates creativity
and innovation, encourages
interest and curiosity, provides
the medium through which
problems can be aired and
tensions released, and fosters
an environment of self-
evaluation and change.
Outline the Conflict Process

• Stage V: Outcomes
– Conflict is destructive when it…
▪ Breeds discontent, reduces
group effectiveness, and
threatens the group’s survival.
Outline the Conflict Process

• Managing Functional Conflict

• One of the keys to minimizing
counterproductive conflicts is
recognizing when there really is a
disagreement.
• Many apparent conflicts are
due to people using different
language to discuss the same
general course of action.
Outline the Conflict Process

• Managing Functional Conflict

• Successful conflict management
recognizes these different
approaches.
• Attempts to resolve them by
encouraging open, frank
discussion focused on interests
rather than issues.
Outline the Conflict Process (9 of 10)

• Groups that resolve conflicts

successfully discuss differences of
opinion openly.
• The most disruptive conflicts are
those that are never addressed
directly.
• Managers need to emphasize shared
interests in resolving conflicts.
• Groups with cooperative conflict
styles and an underlying
identification to group goals are
more effective than groups with a
more competitive style.
Outline the Conflict Process
• Differences across countries in conflict
resolution strategies may be based on
collectivistic tendencies and motives.
• Collectivist cultures see people as
deeply embedded in social
situations.
• They will avoid direct expression
of conflicts, preferring indirect
methods for resolving differences
of opinion.
Contrast Distributive and Integrative Bargaining

• Negotiation is a process in which two

or more parties exchange goods or
services and attempt to agree upon
the exchange rate for them.
• We use the terms negotiation and
bargaining interchangeably.
Contrast Distributive and Integrative Bargaining
Exhibit 18-5 Distributive versus Integrative Bargaining

Bargaining Characteristic Distributive Bargaining Integrative Bargaining

Goal Get as much of the pie as Expand the pie so that both
possible parties are satisfied
Motivation Win–lose Win–win
Focus Positions (“I can’t go beyond this Interests (“Can you explain why
point on this issue.”) this issue is so important to you?”)
Interests Opposed Congruent
Information sharing Low (Sharing information will High (Sharing information will
only allow other party to take allow each party to find ways to
advantage.) satisfy interests of each party.)
Duration of relationship Short term Long term
Contrast Distributive and Integrative Bargaining
Exhibit 18-6 Staking Out the Bargaining Zone
Contrast Distributive and Integrative Bargaining

• Research shows that when you’re

engaged in distributive bargaining,
one of the best things you can do is
make the first offer, and make it an
aggressive one.
• Shows power.
• Establishes an anchoring bias.
• Another distributive bargaining tactic
is revealing a deadline.
Contrast Distributive and Integrative Bargaining
Exhibit 18-7 Integration of Two Bargaining Strategies within One
Negotiation Episode
Contrast Distributive and Integrative Bargaining

• Compromise might be your worst

enemy in negotiating a win-win
agreement.
• The reason is that compromising
reduces the pressure to bargain
integratively.
Apply the Five Steps of the Negotiation Process
Exhibit 18-8 The Negotiation
Apply the Five Steps of the Negotiation
Process
• Preparation and Planning
• When it comes to preparation and
planning, first, do your homework.
• What is the nature of the conflict?
What is the history leading up to this
negotiation? Who is involved, and
what are their perceptions of the
conflict? What do you want from the
negotiation? What are your goals?
Apply the Five Steps of the Negotiation
Process
• Definition of Ground Rules
• Who will do the negotiating? Where
will it take place? What time
constraints, if any, will apply? To what
issues will negotiation be limited? Will
there be a specific procedure to follow
if an impasse is reached?
• During this phase, the parties will also
exchange their initial proposals or
demands.
Apply the Five Steps of the Negotiation
Process
• Clarification and Justification
• When initial positions have been
exchanged, explain, amplify, clarify,
bolster, and justify your original
demands.
• This need not be confrontational. You
might want to provide the other party
with any documentation that helps
support your position.
Apply the Five Steps of the Negotiation
Process
• Bargaining and Problem Solving
• This is the actual give-and-take in
trying to hash out an agreement.
Concessions will undoubtedly need to
be made by both parties.
Apply the Five Steps of the Negotiation
Process
• Closure and Implementation
• The final step is formalizing the
agreement that has been worked
out and developing any procedures
that are necessary for
implementation and monitoring.
How Individual Differences Influence Negotiations

• Personality Traits in Negotiation

• Can you predict an opponent’s
negotiating tactics if you know
something about his/her
personality?
• The evidence says “sort of.”
• Moods/Emotions in Negotiation
• Influence negotiation, but the way
they do appears to depend on the
type of negotiation.
How Individual Differences Influence Negotiations
• Culture in Negotiations
• Do people from different cultures
negotiate differently?
Yes, they do.
• People generally negotiate more
effectively within cultures than
between them.
• In cross-cultural negotiations, it is
especially important that the
negotiators be high in openness.
• People are more likely to use certain
negotiation strategies depending on
what culture they belong to.
• Negotiators need to be especially
aware of the emotional dynamics in
cross-cultural negotiation.
How Individual Differences Influence Negotiations

• Gender Differences in Negotiations

• Men and women negotiate
differently and these differences
affect outcomes.
• There is some merit to the
popular stereotype that women
are more cooperative, pleasant,
and relationship-oriented in
negotiations than are men.
• These gender differences can be
lessened at both the organizational
and individual level.
How Individual Differences Influence Negotiations
OB POLL Men Ask More

Source: Based on A. Gouveia, “Why Americans Are Too Scared to Negotiate Salary,” San Francisco Chronicle, April 3, 2013,
downloaded May 30, 2013, from http://www.sfgate.com/jobs/.
Roles and Function of Third-party Negotiations

• Negotiating in a social context:

• Reputation: the way other people
think and talk about you.
• Develop a trustworthy
reputation – competence and
integrity.
• Relationships: think about what’s
best for the other party and the
relationship as a whole.
• Repeated negotiations built on
trust provide more options.
Roles and Function of Third-party Negotiations

• When individuals or group

representatives reach a stalemate and
are unable to resolve their differences
through direct negotiations, they may
turn to a third party.
• A mediator
• An arbitrator
• A conciliator
Implications for Managers (1 of 3)
• Choose an authoritarian management style in emergencies,
when unpopular actions need to be implemented, and when
the issue is vital to the organization’s welfare. Be certain to
communicate your logic when possible to make certain
employees remain engaged and productive.
• Seek integrative solutions when your objective is to learn, when
you want to merge insights from people with different
perspectives, when you need to gain commitment by
incorporating concerns into a consensus, and when you need to
work through feelings that have interfered with a relationship.
Implications for Managers (2 of 3)
• You can build trust by accommodating others when you find
you’re wrong, when you need to demonstrate reasonableness,
when other positions need to be heard, when issues are more
important to others than to yourself, when you want to satisfy
others and maintain cooperation, when you can build social
credits for later issues, to minimize loss when you are
outmatched and losing, and when employees should learn
from their own mistakes.
Implications for Managers (3 of 3)
• Consider compromising when goals are important but not
worth potential disruption, when opponents with equal power
are committed to mutually exclusive goals, and when you need
temporary settlements to complex issues.
• Distributive bargaining can resolve disputes, but it often
reduces the satisfaction of one or more negotiators because it
is confrontational and focused on the short term. Integrative
bargaining, in contrast, tends to provide outcomes that satisfy
all parties and build lasting relationships.