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Conflict &Negotiation Process
Prof.Shabir Ahmad
The Business School
University of kashmir
June 24, 2010
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Conflict
Summary
As people with different backgrounds, interests, visions,
values, needs and ideologies interact, a variety of conflicts
often develop.
A contemporary perspective on conflict recognizes that
conflict is neither inherently good or bad but can be either
depending on how it is dealt with.
Thus in dealing with conflict the critical issue is not so much
the conflict itself but how it is managed.
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Learning Objectives
1. Understand the nature of
organizational conflict, its sources,
and the way it arises between
stakeholders and subunits
2. Identify the mechanisms by which
managers and stakeholders can
obtain power and use that powerto influence decision making and
resolve conflict in their favour
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What is Organizational Conflict?
The clash that occurs when thegoal-directed behavior of one
group blocks or thwarts the goals
of another
Although conflict is often
perceived as something negative,
research suggests that some
conflict can actually improveorganizational effectiveness
Can overcome inertia and lead to
learning and change
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What is Organizational Conflict?
Beyond a certain point, conflictbecomes a cause for organizational
decline
Conflict leads to inability to reach
consensus and indecision
Too much time spent on bargaining
rather than acting swiftly to resolve
problems On balance, organizations should be
open to conflict and recognize its
value
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Pondys Model of Organizational
Conflict
Conflict is a process that consists offive sequential stages
Stage 1: Latent conflict: no outrightconflict exists, but there is apotential for conflict because ofseveral latent factors Sources of conflict include:
Interdependence
Difference in goals and priorities Bureaucratic factors
Incompatible performance criteria
Competition for scarce resources
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Pondys Model of Organizational Conflict
(cont.)
Stage 2: Perceived conflict: subunitsbecome aware of conflict and begin toanalyze it
Conflict escalates as groups battle over
the cause of conflict Stage 3: Felt conflict: subunits
respond emotionally to each other,and attitudes polarize into us-versus-
them Cooperation between units decreases
What began as a small problemescalates into huge conflict
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Pondys Model of Organizational Conflict
(cont.)
Stage 4: Manifest conflict: subunits tryto get back at each other
Fighting and open aggression
Passive aggression doing nothing Organizational effectiveness suffers
Stage 5: Conflict aftermath: conflict is
resolved in some way If sources of conflict are not resolved, the
dispute will arise again
Conflict aftermath
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Pondys Model of Organizational
Conflict
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Conflict
Functional
Conflict Dysfunctionalconflict
A functional conflict is a confrontation
Between groups that enhances and
benefits the organizations performance.Functional conflict can contribute to
Creativity, innovation, and improved
decision-making among other benefits.
Dysfunctional conflict, on the other
hand,Is that which harms the organization
or hinders the achievement of
organizational goals .
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Macro
organizational
group
InterpersonalIntra-individual
Micro
Conflict
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Intra-individual Conflict
Frustration Model
Goal Conflict
Role Conflict and Ambiguity
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Sources of Interpersonal Conflict
Personal differences
Information deficiency
Role Incompatibility
Environment Stress
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Johari Window
Known to othersOpen area Blind area
Known to self Not known to self
Not know to others Hidden area Unknown area
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Factors Contributing to Intergroup Behavior
The interdependent nature of the
relationship between work groups
Differences in goals
Differences in perceptions
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Reactions to Conflict
Competing
Collaborating
Avoiding Accommodating
Compromising
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Organizational conflict can escalate
rapidly and sour an organizationsculture
Managing conflict is an important
priority Organizations must balance the
need to have some good conflict
without letting it escalate into bad
conflict
Choice of conflict resolution
method depends on the source of
the roblem
Managing Conflict
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Managing Conflict: Resolution Strategies
Acting at the level of structure Because task interdependence and
differences in goals produce conflict, alter
the level of differentiation and integrationto change relationships
Increase the number of integrating roles
Assign top managers to solve conflict
Rethink the hierarchy/reporting chain
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Managing Conflict: Resolution Strategies
(cont.)
Acting at the level of attitudes andindividuals
Establish a procedural system that allows
parties to air their grievances Important for conflict between management
and unions
Use a third-party negotiator
Exchange/rotate/terminate individuals
CEOs can also use their power to resolve
conflicts and motivate units to cooperate
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Strategies for Interpersonal Conflict resolution
Model the attitudes and behaviors you want your
employees to emulate
Identify the source of conflict, structural or
interpersonal
Focus on the task not personalities
Address conflict in a timely way
Learn for conflict
AND
Allow time to cool off Analyze the situation State the problem to the other
person
Leave the person an out
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The common dilemma
Participants are friends.
The goal is agreement.
Make concessions to cultivate the
relationship.
Be soft on the people.
Trust others.
Make offers.
Have to talk
Relationship over substance
Open with a reasonable position
Concede generously
Will/offers
Participants are adversaries.
The goal is victory.
Be hard on the problem.
Distrust others.
Dont have to talk
Dig in your position.
Open with an extreme position
Concede stubbornly
Wont/threats
SOFT HARD
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Negotiation Skills
People : Separate the people from the problem.
Interests: Focus on interests, not positions.
Options: Generate a variety of possibilities beforebefore deciding what to do
Criteria: Insist that the result be based on someobjective standard.
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Using the Seven Elements
Interests
BATNA
Communication
Commitment
Options
Legitimacy
Relationship
If YesIf No
Claim
Value
Create
Value
Enter the Circle
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Preparation
Gather facts
Create Positions
Build supportingarguments
Fix a bottom line
Create a concession
strategy: offer/counter-
offer
Risks a too-narrow focus,
rigidity, and aversion to
learning
Information overload
Scripted, unpersuasive:crafted to justify our views
rather than change theirs
Often unrelated to a
reality-tested, walk-away
alternative Places commitment before
anything else, limits option
creation
TYPICAL PREPARATION COMMON DIFFICULTIES
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7 Elements Preparation
Checklist Interests What are ours? What are theirs?
Ask ourselves Why? What else?
Are there other parties interests to consider?
Which interests are shared, which are just different, andwhich are in conflict?
What are thepriorities of these various interests?
Options Brainstorming whatpossible options might satisfy these
interests? What might they or a third party propose?
What possible arrangements might creatively satisfy eachparties interests?
Alternatives Whats our BATNA? Whats theirs?
Can we improve ours? Weaken theirs?
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7 Elements Preparation
Checklist Legitimacy What precedents exist? Is there a standard operating
procedure? Law? Custom? Market Value?
Is there a fair process if we currently lack a singlestandard?
What ought to govern an agreement?
How can they justify the outcome to their constituents?
Commitment What is our authority? Theirs?
What do we aspire to? What can we live with?
What kind of commitment do we want at each stage of thenegotiation process?
Conditional agreement? Joint recommendation?Framework agreement? List of interests, options? Processagreement?
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7 Elements Preparation
Checklist Communication What information do we want to listen for?
How can we show them they have been heard?
What message do we want left in their minds?
What is our process strategy?
How should we begin? What is our agenda? How might we
close? How will we deal with surprises? What are the words
we might use around the tough issue?
Relationship How is it today, and how would we like it to be in the future? What actions can we take to build the relationship without
conceding or buying the relationship?
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Some strategic guidelines
Use LEGITIMACY Offer why an option is fair or defensible
Explain your reasoning(Let me show you why/where this came from)
Before countering, inquire (Why? Based on what?) Look for fair procedures Use the Test of Reciprocity Be sure that you are open to persuasion
Ensure Good Two-Way COMMUNICATION Negotiate the process
Balance advocacy and inquiry Speak for yourself, not for them Listen and demonstrate that you have heard Test operating assumptions
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Classic positional bargainingCommitment (extreme position)
Offer
Last offer
Final last offer
Commitment (extreme position)
Offer
Last offer
Final last offer
Threat (BATNA)
Threat (BATNA)
Will there be any deal?
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Some strategic guidelines Acknowledge each BATNA as a choice
Reality test theirs How well does it satisfy their interests?
Consider sharing yours as a decision you face Use BATNA discussions as an opportunity:
To learn about interests
To invite options that exceed all BATNAs COMMITMENT with care, after learning all you can
Commit early to process Commit to substance at the end of the process
Review each partys understanding, documentif needed Ask if it has the necessary detail to be
implemented: who, what, where, when and how
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Some strategic guidelines Clarify INTERESTS, not positions
Ask Why?, What else?, In what order?
Share some of your interests
Share and test your understanding of theirs
Solicit criticism of possible options
Invent OPTIONS for joint gain Jointly brainstorm multiple options
Separate inventing from deciding Break up decision makingOption generation
Option evaluation/refinement
Commitment to an option
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Some strategic guidelines
Deal with RELATIONSHIPS and substance,each on its own merits
Be unconditionally constructive on therelationship
Trustworthy, even if not trusting Understanding, even if not agreeing
Accepting the person, even if not their behavior
Separate the people from the problem
Use interests, options, legitimacy to address the problem
Discuss relationship issues separately and explicitly
CCBD Consider Consulting BeforeDeciding
Common errors for both
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Common errors for both
Assumes a choice: RELATIONSHIP or
substance
Focuses on positions, ignores INTERESTS
Ignores LEGITIMACY
Mixes inventing and deciding - limits OPTIONS
Places COMMITMENT before listening
One-way COMMUNICATION
Ignores real worldALTERNATIVES
SOFT HARD
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Charting Negotiation Success
PREP
ARATI
ON
SU
CCESS
Strategy & Tactics
Review and learning
Effective negotiation skills: The key stages
S f
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Some common measures of
successWinning Get the most concessions
Break their bottom line
Get the last possible dollar
They hurt more
Not losing
No one is happierAvoid confrontation
Get any deal
Just dont get cheated
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Complex negotiations
Repeat over
time
Multi-issue
Multi-party
Intangible
Factors
External
and InternalTangible
Factors
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A Seven Element framework for measuring success
No agreement, OR an agreement that:
1. Is better than any walk-awayALTERNATIVE
Esp. ourBATNA ourBestAlternative To a NegotiatedAgreement
2. Satisfies INTERESTS:
Ours, well INTERESTS POSITIONS
Theirs, at least acceptably
Others, at least tolerably
3. Leaves no joint gains on the table: is among the best of many
OPTIONS
4. Uses LEGITIMACY: objective criteria or transparent processes allowparties to view mutual decisions as fair and sensible
5. Contains COMMITMENTS that are well-planned, mutually
understood, and operational
6. Is reached efficiently with effective COMMUNICATION
7. Builds a good working RELATIONSHIP among the parties
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Conflict outcomes
I want you to:
Lose Win
1 2
Lose Lose- Lose Lose-Win
3 4
Win Win-Lose Win-Win
I want to:
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Thank You