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Chapter 13 Conflict & Negotiation

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1 Chapter 13 Conflict & Negotiation

2 Transitions in Conflict Thought
Traditional View Human Relations View Interactionist View

3 Transitions in Conflict Thought
The Traditional View: Conflict is bad and synonymous with violence, destruction, and irrationality.

4 Transitions in Conflict Thought
The Human Relations View: Conflict is natural and inevitable, and should be accepted as a part of life.

5 Transitions in Conflict Thought
The Interactionist View: Constructive conflict should be encouraged; it keeps the group alive, self-critical, and creative.

6 Functional vs. Dysfunctional Conflict
Task conflict (+/-) Process conflict (+/-) Relationship conflict (-)

7 Conflict Process Stages
Potential opposition Cognition and personalization Intentions Behavior Outcomes

8 Conflict Process Stages

9 Stage I: Potential Conflict
Communication Structure Personal Variables

10 Stage II: Cognition and Personalization
Potential for opposition realized When individuals become emotionally involved, parties experience anxiety, tension, frustration, or hostility

11 Stages III & IV: Intentions & Behaviors
Competing (distributive) Collaborating (integrative) Avoiding Accommodating Compromising

12 Conflict Handling Behaviors
High Competition Collaboration Compromise Concern for Own Interests Two dimensions are used to identify conflict management styles. Concern for self refers to the extent to which a person focuses on satisfying his or her own needs. Concern for others is the degree to which a person wants to satisfy the needs of others. These two dimensions combine to create five conflict management styles. The integrative style (high concern for self and others) focuses on openness, collaboration, and information exchange. The obliging style (low concern for self, high concern for others) focuses on the needs of others while sacrificing or ignoring personal needs. The dominating style (high concern for self, low for others) focuses on advancing personal goals at any cost. The avoiding style (low concern for self and others) focuses on suppressing, setting aside, or avoiding the issues. The compromising style (moderate concern for self and others) focuses on achieving a reasonable middle ground. Managers must consider several factors before deciding which style of conflict management is appropriate: The complexity of the problem and the need for long-term solutions. The amount of time that is involved. The importance of the issue. The power of various parties. Avoidance Accommodation Low Low Concern for Other’s Interests High 6

13 Distributive Versus Integrative Bargaining
Distributive Integrative Characteristic: Approach: Approach: Goal: Get as much of a Expand the pie; look for fixed pie as possible win/win options Motivation: Win-Lose (self serving) Win-Win (mutual gain) Focus: Positions Interests Information Low High Sharing: Duration of Short term Long term relationships: Key Assumptions: Adversarial and hostile Collaborative and open problem solving Role of Trust: It’s for suckers! It’s the only real currency!

14 Negotiation Negotiation: Process whereby two or more parties attempt to agree on the exchange rate for goods or services. BATNA The Best Alternative To a Negotiated Agreement; the lowest acceptable value (outcome) for someone for a negotiated agreement.

15 The Negotiation Process
E X H I B I T 13 – 5

16 Staking Out the Bargaining Zone
E X H I B I T 13 – 4

17 Issues in Negotiation Role of Mood and Personality Traits:
Positive moods positively affect negotiations Traits appear to have little significant effect on the outcomes of either bargaining or negotiating processes (except extraversion, which is bad for negotiation effectiveness) Gender Differences: Women negotiate no differently from men, although men apparently negotiate slightly better outcomes. Men and women with similar power bases use similar negotiating styles. Women’s attitudes toward negotiation and their success as negotiators are less favorable than men’s.

18 Issues in Negotiation (cont.)
Italians, Germans, and French don’t soften up executives with praise before they criticize. Americans do, and to many Europeans this seems manipulative. Israelis are accustomed to fast-paced meetings and so have no patience for American small talk. Indian executives are used to interrupting one another. When Americans listen without asking for clarification or posing questions, Indians may conclude the Americans aren’t paying attention. Americans often mix their business and personal lives. They think nothing about asking a colleague questions like, “How was your weekend?” (it’s a cultural ritual for Americans). In some cultures such a question is intrusive because business and private lives are kept totally separate. Many Americans live by the motto: “It’s not personal, it’s business,” whereas many other cultures live by the motto: “It’s not business until first it’s personal.” Source: Adapted from L. Khosla, “You Say Tomato,” Forbes, May 21, 2001, p. 36.

19 Stage IV: Outcomes Functional Outcomes from Conflict:
Increased group performance Improved quality of decisions Stimulation of creativity and innovation Encouragement of interest and curiosity Provision of a medium for problem-solving Creation of an environment for self-evaluation and change Creating Functional Conflict: Reward dissent and sanction avoiders of functional conflict

20 Stage IV: Outcomes (cont.)
Dysfunctional Outcomes from Conflict: Development of discontent Reduced group effectiveness Retarded communication Reduced group cohesiveness Infighting among group members overcomes group goals Minimizing Dysfunctional Conflict: Emphasize common goals and objectives Eliminate elements of relationship that bread distrust

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