CONFLICT AND NEGOTIATION - Shamshul Anaz Conflict To reward themselves for a job well done, Generation-Y (Millennial) employees might throw a pizza party during office hours, but this

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  • Chapter 8

    CONFLICT

    AND

    NEGOTIATION

  • Conflict and

    Negotiation in

    the Workplace

    McGraw-Hill/Irwin

    McShane/Von Glinow OB

    5eCopyright 2010 by The McGraw-Hill Companies, Inc. All rights

    reserved.

  • Cross-Generational Conflict

    To reward themselves for a

    job well done, Generation-Y

    (Millennial) employees

    might throw a pizza party

    during office hours, but this

    practice bothers older

    employees who have

    different views about

    appropriate workplace

    behavior.

    11-3

  • Conflict Defined

    The process in which one

    party perceives that its

    interests are being opposed

    or negatively affected by

    another party

    11-4

  • Is Conflict Good or Bad?:Pre 1970s View

    Historically, experts viewed

    conflict as dysfunctional

    Undermined relations

    Wasted human energy

    More job dissatisfaction,

    turnover, stress

    Less productivity,

    information sharing

    Level of conflict

    Conflic

    t outc

    om

    es

    Bad

    Good

    Low High

    0

    11-5

  • Is Conflict Good or Bad?: 1970s-1990s View

    1970s to 1990s belief in an

    optimal level of conflict

    Some level of conflict is good

    because:

    Energizes debate

    Reexamine assumptions

    Improves responsiveness to

    external environment

    Increases team cohesion

    Level of conflict

    Conflic

    t outc

    om

    es

    Bad

    Good

    Low High

    0

    Optimal

    conflict

    11-6

  • Is Conflict Good or Bad?:Emerging View

    Two types of conflict

    Constructive conflict -- Conflict is aimed at issue,

    not parties

    Relationship conflict -- Conflict is aimed at

    undermining the other party

    11-7

  • Is Conflict Good or Bad?:Emerging View

    Goal: encourage

    constructive conflict,

    minimize relationship

    conflict

    Problem: difficult to

    separate constructive from

    relationship conflict

    Drive to defend activated

    when ideas are critiqued

    Level of conflict

    Conflic

    t outc

    om

    es

    Bad

    Good

    Low High

    0

    Constructive

    conflict

    Relationship

    conflict

    11-8

  • Constructive Confrontation at Intel

    Intel employees learn to fully evaluate ideas

    through constructive confrontation. The objective

    is to attack the problem, not the employee, but

    some critics claim the process is a license for

    some Intel staff to be bullies.

    11-9

  • Minimizing Relationship Conflict

    Three conditions that minimize relationship conflict

    while engaging in constructive conflict

    1. Emotional intelligence

    2. Cohesive team

    3. Supportive team norms

    11-10

  • The Conflict Process

    Sources of

    Conflict

    Manifest

    Conflict

    Conflict

    Outcomes

    Conflict

    Perceptions

    Conflict

    Emotions

    Conflict

    Escalation Cycle

    11-11

  • Differentiation

    Task

    Interdependence

    Different values/beliefs

    Explains cross-cultural and generational conflict

    Conflict increases with interdependence

    Parties more likely to interfere with each other

    Incompatible

    Goals

    One partys goals perceived to interfere

    with others goals

    more

    Structural Sources of Conflict

    11-12

  • Ambiguous

    Rules

    Communication

    Problems

    Creates uncertainty, threatens goals

    Without rules, people rely on politics

    Increases stereotyping

    Reduces motivation to communicate

    Escalates conflict when arrogant

    Scarce

    Resources Motivates competition for the resource

    Structural Sources of Conflict

    11-13

  • Interpersonal Conflict Handling Styles

    Win-win orientation

    believe parties will find a mutually beneficial

    solution

    Win-lose orientation

    belief that the more one party receives, the less the

    other receives

    11-14

  • Assert

    iven

    ess

    Cooperativeness

    Forcing Problem-solving

    Compromising

    Avoiding Yielding

    High

    Low High

    Five Conflict Handling Styles

    11-15

  • Conflict Handling Contingencies

    Problem solving Best when:

    - Interests are not perfectly opposing

    - Parties have trust/openness

    - Issues are complex

    Problem: other party take advantage of information

    Forcing Best when:

    - you have a deep conviction about your position

    - quick resolution required

    - other party would take advantage of cooperation

    Problems: relationship conflict, long-term relations

    11-16

  • Conflict Handling Contingencies

    Avoiding

    Best when:

    - relationship conflict is high

    - conflict resolution cost is higher than benefits

    Problems: doesnt resolve conflict, frustration

    Yielding

    Best when:

    - other party has much more power

    - issue is much less important to you than other party

    - value/logic of your position is imperfect

    Problem: Increases other partys expectations

    11-17

  • Conflict Handling Contingencies

    Compromising

    Best when

    - Parties have equal power

    - Quick solution is required

    - Parties lack trust/openness

    Problem: Sub-optimal solution where mutual gains

    are possible

    11-18

  • Structural Approaches to Conflict Resolution

    1. Emphasizing superordinate goals

    Emphasize common objective rather than

    conflicting sub-goals

    Reduces goal incompatibility and differentiation

    2. Reducing differentiation

    Remove sources of different values and beliefs

    - e.g. Move employees around to different jobs

    11-19

  • Structural Approaches to Conflict Resolution (cont)

    3. Improving communication/understanding

    Employees understand and appreciate each

    others views through communication

    - Relates to contact hypothesis

    Two warnings:

    a) Apply communication/understanding after reducing

    differentiation

    b) A Western strategy that may conflict with

    values/traditions in other cultures

    11-20

  • Structural Approaches to Conflict Resolution (cont)

    4. Reduce Task Interdependence

    Dividing shared resources

    Combine tasks

    Use buffers

    5. Increase Resources

    Duplicate resources

    6. Clarify Rules and Procedures

    Clarify resource distribution

    Change interdependence

    11-21

  • Resolving Conflict Through Negotiation

    Negotiation -- attempting to resolve divergent

    goals by redefining terms of interdependence

    Which conflict handling style is best in

    negotiation?

    Begin cautiously with problem-solving style

    Shift to a win-lose style when

    - Mutual gains situation isnt apparent

    - Other part wont reciprocate info sharing

    11-22

  • Your Positions

    Initial Target

    InitialTarget

    Opponents Positions

    Area ofPotential

    Agreement

    Bargaining Zone Model

    Resistance

    Resistance

    11-23

  • Situational Influences on Negotiation

    Location

    Physical setting

    Time passage and

    deadlines

    Audience

    Courtesy of Microsoft

    11-24

  • Effective Negotiation Behavior

    Preparation and goal

    setting

    Gathering information

    Communicating

    effectively

    Making concessions

    Courtesy of Microsoft

    11-25

  • Types of Third Party Intervention

    Mediation

    Arbitration

    Inquisition

    Level of

    Process

    Control

    Level of Outcome Control

    High

    HighLow

    11-26

  • Choosing the Best 3rd Party Strategy

    Managers prefer inquisitional strategy, but not

    usually best approach

    Mediation potentially offers highest

    satisfaction with process and outcomes

    Use arbitration when mediation fails

    11-27

  • Conflict and

    Negotiation in

    the Workplace

    11-28McGraw-Hill/Irwin

    McShane/Von Glinow OB

    5e

    Copyright 2010 by The McGraw-Hill Companies, Inc. All rights

    reserved.