1. Managing Conflict and Negotiating
Chapter 13 marks the end of Part Three where we have learned about group and social processes. We end with a discussion of two skills necessary to work effectively in today’s workplace: managing conflict and negotiating.
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.

2. Ch. 13 Learning Objectives
Define the term conflict, and put the three metaphors of conflict into proper perspective for the workplace.
Distinguish between functional and dysfunctional conflict, and discuss why people avoid conflict
List six antecedents of conflict, and identify the desired outcomes of conflict.
Define personality conflicts, and explain how managers should handle them.
Discuss the role of in-group thinking in intergroup conflict, and explain what management can do about intergroup conflict
This chapter begins by defining conflict and suggesting how it can be best perceived in the workplace. Next, you’ll learn about the causes of conflict and personality, intergroup, and cross-cultural conflict. Along the way, you’ll learn techniques for handling each type of conflict.

3. Ch. 13 Learning Objectives
Discuss what can be done about cross-cultural conflict.
Explain how managers can stimulate functional conflict, and identify the five conflict-handling styles.
Explain the nature and practical significance of conflict triangles and alternative dispute resolution for third-party conflict intervention.
Explain the difference between distributive and integrative negotiation, and discuss the concept of added-value negotiation.
The rest of the chapter focuses on how to manage conflict effectively, ending with a discussion of how negotiation can be used to resolve conflicts.

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?
Conflict is a natural occurrence in an organization whenever an action by one party is perceived as preventing or interfering with the goals, needs, or actions of another party. Conflict can be positive when it focuses on solving problems constructively and results in increasing organizational productivity.
During a conflict, if someone used the term “war,” saying, for example, “We shot down that idea,” vs. “opportunity”, saying, “What are all the possibilities for solving this problem?” how would it make you feel?
Typically, people become defensive and combative when a metaphor of war is used, but become open-minded and cooperative when a metaphor of opportunity is used. Therefore, we need to carefully monitor our choice of words in conflict situations.

5. The Relationship between Conflict Intensity and Outcomes
Positive
Outcomes
Neutral
Too little conflict
Appropriate conflict
Too much conflict
Negative
Experts once believed that all conflict threatened managerial authority and thus had to be squelched. Then the human relationists came along and recognized the inevitability of conflict and advised managers to learn to live with it.
Currently, experts believe that conflict can have both positive and negative outcomes and that organizations can suffer from having too little or too much conflict. You will note from this graph that some level of conflict is good for organizations, but too little or too much detracts from achieving organizational objectives.
If there is too little conflict, companies become apathetic, continue doing what they’re doing, and resist change. Too much conflict can cause dissatisfaction, hostility, and a lack of teamwork.
Low
Moderate Intensity
High

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
Whether conflict is functional or dysfunctional is usually determined by the outcome of the conflict.
Functional conflict stimulates creative resolution of problems, prevents complacency, and results in positive outcomes that can enhance performance. For example, if the quality of one part of a production operation is declining, it can cause conflict between that department and the next stage of the production process. If they work together to correct the problem, the overall quality of the final product will improve. If they don’t, they will both suffer.

7. Causes of Conflicts Incompatible personalities or value systems
Role ambiguity/ overload
Interdependent tasks
Competition for limited resources
The book lists more than a dozen antecedents of conflict. Let’s go over a few key ones here:
Incompatible personalities or value systems can also be thought of as personal differences. Examples include interpersonal value conflicts, personality differences, different decision-making styles, and different expectations, all of which can serve to create a situation in which someone perceives their interests are at risk. These kinds of differences are the hardest to resolve because they are personal and may affect one’s values.
Role ambiguity/overload occurs when role expectations exceed a party’s ability to respond effectively; for example, too much to do can cause something not to get done which results in conflict with those dependent on the output.
Interdependent tasks can be an antecedent to conflict when one department’s quality directly impacts another department or when one person’s productivity is the dependent on another person’s input.
Finally, competition for limited resources, such as money, personnel, and equipment can lead to conflicts among individuals and groups within organizations.

8. Desired Conflict Outcomes
Agreement: strive for equitable and fair agreements that last
Stronger Relationships: build bridges of goodwill and trust for the future
Learning: greater self-awareness and creative problem solving
Listed here are three desired outcomes of conflict.
Agreement is desired because unresolved conflicts typically come back as problems in the future. Therefore, it is best to handle conflicts positively so that a mutually acceptable agreement can be made.
Stronger Relationships are desired because conflict that is resolved positively is more likely to lead to future interaction and information sharing between parties.
Learning results from positively resolved conflict that helps shape our behavior and helps us grow as individuals.

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?
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? – Personality conflict between two employees
What should she do?
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

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
Three types of conflict are personality conflict, intergroup conflict, and cross-cultural conflict. This and the next two slides deal with the first type of conflict.
This slide presents guidelines that can help employees deal with a personality conflict in which they are directly involved.

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?
Chris works with Dirk on another project. Dirk approaches Chris and begins to complain about Linda.
As a third-party, what should he do?
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

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
Employees who are third-party observers of a personality conflict can use these tips to handle the situation most effectively.

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?
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?
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

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
Managers whose employees are having a personality conflict should find these tips helpful.

15. Minimizing Intergroup Conflict
Level of perceived
intergroup conflict tends to increase when:
Recommended actions:
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
Conflict within the group is high
There are negative interactions between groups
Influential third-party gossip about other group is negative
Moving on to intergroup conflict, we know that research has shown that simply having conflicting groups interact more is not sufficient to overcome negative links between groups. Therefore, this figure has recommended actions when intergroup conflict exists.

16. Ways to Build Cross-Cultural Relationships
Rank
Behavior 1
Be a good listener 2
Be sensitive to the needs of others
Tie 2
Be cooperative rather than overly competitive 3
Advocate inclusive (participative) leadership 4
Compromise rather than dominate 5
Build rapport through conversations 6
Be compassionate and understanding
Now let’s discuss the third type of conflict, cross-cultural. Interacting with individuals from different cultures can create conflicts or hurt feelings unknowingly. Research by Tung identified nine specific ways to facilitate interaction with host-country nationals ranked from most to least useful.
U.S. managers tend to be the opposite of what you see listed on this slide. They are culturally characterized as poor listeners, blunt to the point of insensitivity, and excessively competitive. 7
Avoid conflict by emphasizing harmony 8
Nurture others (develop and mentor)

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:
Keep the groups apart to minimize interaction and conflict.
Establish cross-functional project teams so members of both groups work together.
Stop people who gossip about the other group.
Have the groups attend a social function together.
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:
Keep the groups apart to minimize interaction and conflict.
Establish cross-functional project teams so members of both groups work together.
Stop people who gossip about the other group. (eliminates the negative links between groups)
Have the groups attend a social function together. (this will enhance friendships across groups)
Answer: A, keeping the groups apart may foster in-group, out-group thinking and misperceptions about the other group.

18. Stimulating Functional Conflict
Devil’s Advocacy Approach
Action proposed
Devil’s advocate criticizes it
Both sides presented to decision makers
Decision is made and monitored
Dialectic Decision Method
Assumptions identified
Counterproposal generated on different assumptions
Debate takes place
To attain the desired outcomes of agreement, stronger relationships, and learning, a couple of approaches have been implemented in organizations that are concerned about too little conflict and discussion regarding important ideas.
One approach is to ensure that there is a devil’s advocate who will challenge the group or decision makers on an existing or new proposed course of action.
The dialectic approach focuses on challenging assumptions and developing complete alternative solutions and debating them based on their merits. In both situations, the decisions must be monitored and corrective action taken if necessary.

19. Five Conflict-Handling Styles
Integrating
Obliging
Let’s discuss different ways of handling conflict. Researchers have categorized conflict styles based on two dimensions: concern for others and concern for self. Put another way, we can discuss each of these styles in terms of who loses and who wins.
The dominating style can be described as the “I win, you lose” perspective. Those with this style are characterized as being assertive and uncooperative and striving to have their own needs met at the other’s expense. This style is good if the aggressor is right and has a better solution than a group would come up with. It’s bad when it results in poorer human relations and causes resentment among others.
The obliging/accommodating style is the “I lose, you win” perspective. This style is characterized as being unassertive and cooperative, neglecting self to satisfy others; believing that being accepted by others is more important than achieving personal goals; not wanting to cause trouble, and being self-sacrificing and generous. This style is good when relationships are maintained, but it may be counterproductive if the accommodator has a better idea or solution. This style works best when the relationship is the most important consideration, the issue is important to the other party but not to you, and time is limited. If this approach is used repeatedly, it may breed contempt on the part of the accommodators and they may get taken advantage of.
The avoiding style is the “I lose and you lose” perspective. This style is characterized by being uncooperative and unassertive, not being concerned with self or others, not addressing the conflict, withdrawing, side stepping, and postponing. This style is good when it maintains a relationship that would be hurt if the issue were resolved. However, the issue doesn’t get resolved; and if this is used too often, the problem will get worse because the problem is unlikely to go away on its own.
The integrating/collaborating style is the “you win, I win” perspective. This style is characterized by being assertive and cooperative, satisfying both parties’ concerns, finding underlying issues, reaching creative solutions, and colluding. This problem-solving style tries to find the solution that will meet everyone’s needs. Those with this style are willing to change to meet a mutually beneficial solution that is based on open and honest communication. This style is good because it seeks optimal solutions; however, it can take time, patience, and lots of discussion to get to it. This is the best approach when maintaining relationships is important, time is available, group goals are valued more than personal goals, and when an important issue is involved where finding the best solution is critical.
The compromising style is the “I win some, you win some” perspective. This style is characterized by using intermediate assertiveness and cooperativeness and achieving a mutually acceptable solution that partially satisfies both by splitting the difference and exchanging concessions. This style is useful because it can usually be accomplished quickly while maintaining relationships. The down side is that the results may be sub-optimal and can lead to playing games such as asking for twice as much initially so that the compromise will be closer to what they wanted to begin with.
Research has shown that managers that exhibit flexibility by using a variety of strategies are more successful at managing conflict than those who rely mainly on their preferred style.
High
Compromising
Concern for Others
Dominating
Avoiding
Low
High
Low
Concern for Self

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.
Dominating; Integrating
Integrating; Compromising
Compromising; Avoiding
Obliging; Dominating
Avoiding; Obliging
Alfonso tends to be an agreeable person with a high need for affiliation. When he encounters conflict situations at work he is most likely to use which conflict management style:
Dominating; Integrating
Integrating; Compromising
Compromising; Avoiding
Obliging; Dominating
Avoiding; Obliging
Answer: D, Research shows that one’s personality influences the conflict management style they will adapt. People with high need for affiliation tend to use an obliging style most and a dominating style least.

21. Third-Party Intervention Options for Handling Conflict
These options are considered less political; low risk of dysfunctional conflict
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
Facilitate a meeting with the sender and receiver to coach them to speak directly and constructively with each other
Transmit verbatim messages with the sender’s name included and coach the receiver on constructive ways to discuss the message with the sender
Listed here are three third-party interventions that are considered less political and have a lower risk of dysfunctional conflict than the five interventions listed on the next slide that are more political and have a higher risk of dysfunctional conflict.

22. Third-Party Intervention Options for Handling Conflict
These options are considered more political; high risk of dysfunctional conflict
Carry the message verbatim but protect the sender’s name
Soften the message to protect the sender
Add your spin to the message to protect the sender
Do nothing. The participants will triangle in someone else
Do nothing and spread the gossip. You will triangle in others
[No narration required.]

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
Many companies are putting ADR policies into place to encourage a resolution to a conflict that is fair to all but does not result in a costly lawsuit for both parties. Your book mentions several types of ADR techniques, including facilitation, conciliation, peer review, and ombudsman. Two common ones are described here—mediation and arbitration.

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.
Let’s conclude the chapter by discussing negotiation. Two types are distributive and integrative negotiation.
Distributive negotiation occurs when the parties are take a win-lose perspective based on the premise that whatever you gain, I lose, and vice versa. This occurs when there is only one issue at stake. For example, you use this approach when bargaining with a vendor on the street.
In most situations, however, there is typically more than one issue and there are many ways to add value to the parties by “broadening the pie.”
This is called integrative negotiation and is characterized by people not taking stands or positions but instead focusing on their and the other party’s underlying interests. It requires that both parties keep an open mind about how to meet each other’s interests rather than assuming that in order for my interests to be met, then yours must not be.

25. An Integrative Negotiation
Steps
Clarify Interests
Identify options
Design alternative deal packages
Select a Deal
Perfect the deal
Separately
Identify tangible and intangible needs
Identify elements of value
Mix and match elements of value into different deals
Analyze deal packages proposed
Jointly
Discuss respective needs
Discuss respective elements of value
Exchange deal packages
Discuss and select from feasible deal packages – be creative
Discuss unresolved issues; build relationships for future negotiations; put in writing
The integrative approach involves a five-step process presented on this and on the next slide. Before the negotiation, parties should separately complete the following steps:
Step one is clarifying the interests as being either yours, theirs, or common interests. Before the negotiation, you should understand what your actual interests are. For example, assume you are representing your company and negotiating a deal with a client that involves how much they will pay for your goods or services. That means that money, for example may not really be your interest. Your interests relate to what that money will do for you, such as make your company more profitable or satisfy employees by being able to reward them with bonuses.
The next step is to identify options. Again, before the negotiation, you may have ideas about elements of value that will meet your interests. For example, working with this client may represent breaking into a new market, or working with a larger company than you’ve ever worked with before. Having that client’s name on your client list may be valuable to you because of the reputation that will be conveyed to future clients. Assuming they are happy with your service, you may ask them to be interviewed and quotes used in marketing materials. Or working on this particular project will be a developmental opportunity for your staff so this is valuable to you because you want them to be challenged and grow professionally for future work.
Step three is to design alternative deal packages where you mix and match elements of value. At this point you can put together multiple deals that could be compared in terms of their value to both parties. Maybe you give a discount if they’ll let you use less experienced staff, or they pay more for an entirely experienced team.
Steps four and five identify what’s involved in selecting and perfecting the deal.
During the negotiation parties should complete these steps.
During step one, you will share interests and learn more about what the other’s interests are.
Step two requires the parties to discuss elements of value. This is when you may discover elements of value to the other party that you had not thought of before.
Steps three through five involve the process of designing, selecting, and perfecting the deal in such a way as to ensure mutual agreement and to build relationships for future deals.

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
Let’s end the chapter by identifying the ethical pitfalls that can erode trust and goodwill in the negotiation process.

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:
Integrative negotiation
Distributive negotiation
“I win, you lose” negotiation
Compromise negotiation
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:
Integrative negotiation
Distributive negotiation
“I win, you lose” negotiation
Compromise negotiation
Answer: A