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© 2008The McGraw-Hill Companies, Inc. All rights reserved. Managing Conflict and Negotiating Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights.

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Presentation on theme: "© 2008The McGraw-Hill Companies, Inc. All rights reserved. Managing Conflict and Negotiating Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights."— Presentation transcript:

1 © 2008The McGraw-Hill Companies, Inc. All rights reserved. Managing Conflict and Negotiating Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2 Ch. 13 Learning Objectives 1.Define the term conflict, and put the three metaphors of conflict into proper perspective for the workplace. 2.Distinguish between functional and dysfunctional conflict, and discuss why people avoid conflict 3.List six antecedents of conflict, and identify the desired outcomes of conflict. 4.Define personality conflicts, and explain how managers should handle them. 5.Discuss the role of in-group thinking in intergroup conflict, and explain what management can do about intergroup conflict 13-2

3 Ch. 13 Learning Objectives 6.Discuss what can be done about cross-cultural conflict. 7.Explain how managers can stimulate functional conflict, and identify the five conflict-handling styles. 8.Explain the nature and practical significance of conflict triangles and alternative dispute resolution for third-party conflict intervention. 9.Explain the difference between distributive and integrative negotiation, and discuss the concept of added-value negotiation. 13-3

4 Conflict Conflict One party perceives its interests are being opposed or set back by another party Is conflict always bad? During a conflict, if someone used the term “war” vs. “opportunity”, how would it make you feel? 13-4

5 The Relationship between Conflict Intensity and Outcomes LowModerate Intensity High Too little conflict Appropriate conflict Too much conflict Negative Neutral Positive Outcomes 13-5

6 Functional vs. Dysfunctional Conflict Functional Conflict serves organization’s interests Typically issue-focused Stimulates creativity Dysfunctional Conflict threatens organization’s interests Typically person- focused Breeds hostility Stifles communication 13-6

7 Causes of Conflicts Incompatible personalities or value systems Role ambiguity/ overload Interdependent tasks Competition for limited resources 13-7

8 Desired Conflict Outcomes 1)Agreement: strive for equitable and fair agreements that last 2)Stronger Relationships: build bridges of goodwill and trust for the future 3)Learning: greater self- awareness and creative problem solving 13-8

9 How to Deal with Personality Conflicts Dirk and Linda are working closely together on a project. However, they have very different personalities and working styles. For example, Dirk prefers to create plans and checklists and Linda has a more free-flowing approach to work. Linda is now so frustrated she is concerned the project will not get completed. What type of conflict is this? What should she do? 13-9

10 Tips for Employees Having a Personality Conflict All employees need to be familiar with and follow company policies for diversity, anti- discrimination, and sexual harassment Communicate directly with the other person to resolve the perceived conflict Avoid dragging co-workers into the conflict If dysfunctional conflict persists, seek help from direct supervisors or human resource specialists 13-10

11 How to Deal with Personality Conflicts Chris works with Dirk on another project. Dirk approaches Chris and begins to complain about Linda. What type of conflict is this? As a third-party, what should he do? 13-11

12 Tips for Third-Party Observers of a Personality Conflict All employees need to be familiar with and follow company policies for diversity, anti- discrimination, and sexual harassment Do not take sides in someone else’s personality conflict Suggest the parties work things out themselves in a constructive and positive way If dysfunctional conflict persists, refer the problem to parties’ direct supervisors 13-12

13 How to Deal with Personality Conflicts Sarah, Dirk and Linda’s boss, has just been informed that the completion of the project is in jeopardy due to conflict between Dirk and Linda. Linda is now so frustrated she is concerned the project will not get completed. As their manager, what should she do? 13-13

14 Tips for Managers Whose Employees are Having a Personality Conflict All employees need to be familiar with and follow company policies for diversity, anti-discrimination, and sexual harassment Investigate and document conflict If appropriate, take corrective action If necessary, attempt informal dispute resolution Refer difficult conflict to human resource specialists or hired counselors for formal resolution attempts and other interventions 13-14

15 Minimizing Intergroup Conflict Conflict within the group is high There are negative interactions between groups Influential third-party gossip about other group is negative Work to eliminate specific negative interactions between groups Conduct team building to reduce intragroup conflict and prepare employees for cross-functional teamwork Encourage personal friendships and good working relationships across groups and departments Foster positive attitudes toward members of other groups Avoid or neutralize negative gossip across groups or departments Recommended actions: Level of perceived intergroup conflict tends to increase when: 13-15

16 Ways to Build Cross-Cultural Relationships 8Nurture others (develop and mentor) 7Avoid conflict by emphasizing harmony 6Be compassionate and understanding 5Build rapport through conversations 4Compromise rather than dominate 3Advocate inclusive (participative) leadership 2Be cooperative rather than overly competitive 2Be sensitive to the needs of others 1Be a good listener RankBehavior Tie 13-16

17 Test Your Knowledge The manufacturing and research departments of XYZ corporation often have different perspectives resulting in conflict. Within group cohesiveness is strong but animosity across the groups is growing. To promote harmony and functional conflict between the groups the company should NOT : a.Keep the groups apart to minimize interaction and conflict. b.Establish cross-functional project teams so members of both groups work together. c.Stop people who gossip about the other group. d.Have the groups attend a social function together

18 Stimulating Functional Conflict Devil’s Advocacy Approach 1)Action proposed 2)Devil’s advocate criticizes it 3)Both sides presented to decision makers 4)Decision is made and monitored Dialectic Decision Method 1)Action proposed 2)Assumptions identified 3)Counterproposal generated on different assumptions 4)Debate takes place 5)Decision is made and monitored 13-18

19 Five Conflict-Handling Styles IntegratingObliging DominatingAvoiding Compromising HighLow High Low Concern for Others Concern for Self 13-19

20 Test Your Knowledge Alfonso tends to be an agreeable person with a high need for affiliation. When he encounters conflict situations at work which conflict management style is he most and least likely to use, respectively. a.Dominating; Integrating b.Integrating; Compromising c.Compromising; Avoiding d.Obliging; Dominating e.Avoiding; Obliging 13-20

21 Third-Party Intervention Options for Handling Conflict 1)Reroute complaints by coaching the sender to find ways to constructively bring up the matter with the receiver. Do not carry messages for the sender 2)Facilitate a meeting with the sender and receiver to coach them to speak directly and constructively with each other 3)Transmit verbatim messages with the sender’s name included and coach the receiver on constructive ways to discuss the message with the sender These options are considered less political; low risk of dysfunctional conflict 13-21

22 Third-Party Intervention Options for Handling Conflict 4)Carry the message verbatim but protect the sender’s name 5)Soften the message to protect the sender 6)Add your spin to the message to protect the sender 7)Do nothing. The participants will triangle in someone else 8)Do nothing and spread the gossip. You will triangle in others These options are considered more political; high risk of dysfunctional conflict 13-22

23 Alternative Dispute Resolution (ADR)Techniques Alternative Dispute Resolution (ADR) avoiding costly lawsuits by resolving conflicts informally or through mediation or arbitration Mediation Neutral third party guides parties to make a mutually acceptable solution Arbitration Parties agree to accept the decision of the neutral arbitrator 13-23

24 Negotiation Negotiation give-and-take process between conflicting interdependent parties Distributive negotiation: Single issue; fixed-pie; win- lose. Integrative negotiation: More than one issue; “broadening the pie”; win-win

25 An Integrative Negotiation Steps 1.Clarify Interests 2.Identify options 3.Design alternative deal packages 4.Select a Deal 5.Perfect the deal Jointly 1.Discuss respective needs 2.Discuss respective elements of value 3.Exchange deal packages 4.Discuss and select from feasible deal packages – be creative 5.Discuss unresolved issues; build relationships for future negotiations; put in writing Separately 1.Identify tangible and intangible needs 2.Identify elements of value 3.Mix and match elements of value into different deals 4.Analyze deal packages proposed 13-25

26 Questionable/Unethical Tactics in Negotiation Lies Exaggerated praise Deception Weakening the opponent Strengthening one’s own position Nondisclosure Information exploitation Change of mind Distraction Maximization 13-26

27 Test Your Knowledge Before entering a negotiation with a client over the price of his company’s service, Ben thinks about the client’s interests and his company’s interests. He then brainstorms several options that would satisfy both needs. The approach Ben is taking represents: a.Integrative negotiation b.Distributive negotiation c.“I win, you lose” negotiation d.Compromise negotiation 13-27

28 © 2008The McGraw-Hill Companies, Inc. All rights reserved. Managing Conflict and Negotiating Supplemental Slides

29 Avoiding Negotiation Every employee at same level gets equal pay based on: Yrs. of relevant experience Scope and responsibility of role in organization Skill level Source: Spolsky, J., Why I Never Let Employees Negotiate Pay Raises, Inc., Vol. 29, April

30 Avoiding Negotiation What are the pros and cons of this approach? Does the system capture most/all relevant employee differences with regard to pay? Source: Spolsky, J., Why I Never Let Employees Negotiate Pay Raises, Inc., Vol. 29, April

31 Avoiding Negotiation If market goes up, ALL employees at that level get an increase not just the new hires. What if market goes down? Source: Spolsky, J., Why I Never Let Employees Negotiate Pay Raises, Inc., Vol. 29, April

32 Personality Conflict/Incivility Common examples of incivility Berating bosses Employees who take credit for other’s work Assigning blame Spreading rumors Excluding teammates Source: Porath, C. & Pearson, C. (2009). How Toxic Colleagues Corrode Performance, Harvard Business Review, Vol. 87, pg

33 Personality Conflict/Incivility Targets of incivility reported: 48% decreased their work effort 47% decreased their time at work 38% decreased their work quality 66% said their performance declined 80% lost work time worrying about the incident 63% lost time avoiding the offender 78% said their commitment to the organization declined Source: Porath, C. & Pearson, C. (2009). How Toxic Colleagues Corrode Performance, Harvard Business Review, Vol. 87, pg

34 Personality Conflict/Incivility What types of workplace incivility have you observed? How should organizations deal with incivility? Source: Porath, C. & Pearson, C. (2009). How Toxic Colleagues Corrode Performance, Harvard Business Review, Vol. 87, pg

35 Video Cases Toxic Coworkers 13-35

36 Management in the Movies Jaws – “The Town Meeting” In this scene, the Mayor is leading a town meeting with Chief Brody and the merchants. Questions How is the conflict of closing the beach handled? Which conflict management strategy does Chief Brody use? Which strategy does the mayor use? 13-36

37 Getting Your Slice Sell Yourself Do your homework Act now Grab a bonus Go for a promotion Take the consolation prize For more go to Negotiation Tips by Wren Withers at negotiateyoursalary.com negotiateyoursalary.com Source: Fackelmann, K. Arguing hurts the heart in more ways than one, USA Today, 3/6/07 p. 10D 13-37

38 Arguing Hurts the Heart Couples who make nasty or controlling remarks are at risk of developing heart disease Researchers discovered: Hostile wives had double the level of clogged arteries as those who discussed matters in less hostile ways – even worse with hostile husbands Husbands who made domineering statements or whose wife did had arteries 1.5 times more clogged than husbands who were not in controlling relationships Source: Fackelmann, K. Arguing hurts the heart in more ways than one, USA Today, 3/6/07 p. 10D 13-38

39 Manager’s Hot Seat Video: Partnership: The Unbalancing Act 1.Jonas and Rande are facing a difficult situation. What sources of conflict contributed to the problems they are having?  1. What is the key problem? A.Time management B.Communication C.Overlapping tasks  2. Jonas’ behavior indicates: A.Disinterest B.Burn-out C.Distraction 13-39

40 1.Which type of conflict is depicted in this scenario? 2.Evaluate Rande’s approach to resolving this conflict. What conflict management style did she use?  3. How was this meeting? A.A success B.A good start C.A failure Partnership: The Unbalancing Act (cont.) 13-40

41 Costs of Dysfunctional Conflict Fortune 500 senior executives spend 20 percent of their time in litigation activities. Typical managers spend up to 30 percent of their time dealing with conflict. The turnover costs for an employee are anywhere from between 75 percent and 150 percent of their annual salary. 16 percent of employees report conflict with a supervisor as the main reason for leaving their last job

42 Why Conflict Matters “The best insurance against crossing the ethical divide is a roomful of skeptics.” “CEOs must actively encourage dissent among senior managers by creating decision-making processes, reporting relationships, and incentives that encourage opposing viewpoints…” “By advocating dissent, top executives can create a climate where wrongdoing will not go unchallenged.” Source: The crisis in corporate governance, 5/6/2002, BusinessWeek Special Report) 13-42

43 The Columbia Shuttle Disaster Investigator: As a manager, how do you seek out dissenting opinions? MMT Chair: Well, when I hear about them. Investigator: By their very nature you may not hear about them. MMT Chair: Well, when somebody comes forward and tells me about them. Investigator: But, what techniques do you use to get them? Apparently, the MMT Chair did not have an answer to this question. SOURCE: Langewiesche, Atlantic Monthly, November 2003, pg

44 Columbia Shuttle Disaster Engineer Rodney Rocha: “I couldn’t do it [speak up more forcefully]… I’m too low down… and she’s [Ham] way up here.” Former shuttle astronaut Jim Bagian: “At senior levels, during the 1990s, dissent was not tolerated, and therefore, people learned if you wanted to survive in the organization, you had to keep your mouth shut.” 13-44

45 Salary Negotiation Tips for Managers Establish what the position is worth the company Choose whether to disclose the salary range Communicate when negotiation is over Find creative ways to sweeten the employment package Explain the costs of company’s concessions Be aware of the balance of power 13-45

46 Defending Your Life Movie Clip Did Al Brooks have an effective plan upon entering the negotiation? What factors contributed to his actual negotiation performance? 13-46

47 The Wisdom of Dumb Questions Dumb questions lead to smart decisions Dumb questions require courage, if they didn’t they wouldn’t be worth asking. Why are people reluctant to ask dumb questions? Taken from Fortune, June 27th 2005 pg

48 Conflict at Its Worst Workplace bullying Repeated nonphysical, health- impairing psychological mistreatment that falls outside discriminatory harassment Affects turnover, productivity and potential for litigation 13-48

49 Conflict at Its Worst How to deal with a bully Have a supervisor at least two levels above the targeted boss clamp down on the bully by Stating the behavior will not be tolerated, he/she will be monitored, he/she will be fired if behavior continues 13-49

50 Conflict Management Tips Speak your mind and heart Listen well Express strong feelings appropriately Remain rational for as long as you can Review what has been said Learn to give and take Avoid all harmful statements 13-50

51 The Wisdom of Dumb Questions How to ask dumb questions….. Don’t apologize beforehand Don’t say this is a dumb question but…. Simply state the questions confidently Don’t be intimidated by the stunned silence that follows…. Wait it out. Taken from Fortune, June 27th 2005 pg

52 Best Leadership/Career Advancement Behaviors Perspective taking Creating solutions Expressing emotions Reaching out 13-52

53 Worst Leadership/Career Advancement Behaviors Avoidance Winning at all costs Displaying anger Demeaning others Retaliating 13-53

54 Driving Each Other Crazy in the Workplace Messing up the break room Sabotaging restrooms Inaccessibility Not returning phone calls, voice mail, Habitually interrupting Setting impossible deadlines Reprimanding others in public 13-54

55 Conclusion Questions for discussion 13-55


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