1. Conflict and negotiation in the workplace
Chapter 11
Conflict and negotiation in the workplace

2. Learning Objectives
11.1 Define conflict and debate the positive and negative consequences of conflict in the workplace 11.2 Create a diagram of the conflict process model and identify six structural sources of conflict in organisations 11.3 Distinguish task from relationship conflict and describe the three conflict frames and their consequences 11.4 Outline the five strategic approaches to conflict handling and discuss the circumstances in which each would be most appropriate 11.5 Outline the strategies that skilled negotiators use to claim value and create value in negotiations 11.6 Compare and contrast the three types of third-party dispute resolution 11.7 Apply the seven approaches that organisations can take to reduce dysfunctional conflicts

3. Conflict and Negotiations at Qantas
Industrial actions, fleet grounding and urgent government intervention led Qantas to negotiate and settle with employees. But has Qantas won the battle only to lose the war?
Video clip:
on Qantas fleet grounding.

4. Conflict Defined
The process in which one party perceives that its interests are being opposed or negatively affected by another party
Video clip:
Conflict explained by Robin Williams in Sesame Street.

5. 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
Conflict outcomes
Bad
Good
Low
High
Points for discussion:
Ask the students if conflict in the workplace is good or bad before going through the slides.
In what ways is it good? In what way is it bad?

6. Is Conflict Good or Bad?: 1970s to 1990s View
1970s to 1990s—belief in an optimal level of conflict
Some level of conflict is good because it:
Energises debate
Reexamines assumptions
Improves responsiveness to external environment
Increases team cohesion
Level of conflict
Conflict outcomes
Bad
Good
Low
High
Optimal conflict

7. The Conflict Process Points for discussion:
Ask one of the students to describe a conflict in their workplace. Then try to explain the process based on their example.

8. Task vs Relationship Conflict
Task conflict: conflict due to disagreements about how a task should be accomplished
Relationship conflict: conflict due to differences in personal values, individuals’ styles, personality
Team satisfaction and performance decrease as either task or relationship conflict increases
Difficulty in separating task and relationship conflict

9. Interests vs Rights-based Frame
Interests-based frame
Focuses on issue (hard on the problem, soft on the person)
Resolves differences through problem solving discussion
Rights-based and power-based frames
Focuses on personal rights or relative power
Low consideration for other party
Resolves differences through threats to protect rights
Tends to generate relationship conflict and conflict escalation

10. Structural Sources of Conflict
Differentiation
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 party’s goals perceived to interfere with other’s goals
Teaching note:
When discussing differentiation it would be good to recall topics 2 and 3: personality, values and perceptions.

11. Structural Sources of Conflict continued
Ambiguous rules
Communication problems
Create uncertainty, threaten goals
Without rules, people rely on politics
Increase stereotyping
Reduce motivation to communicate
Escalate conflict when arrogant
Scarce resources
Motivates competition for the resource
Teaching note:
The sources of conflict can be related to the sources of organisational politics.

12. Individual Differences in Conflict
Emotional intelligence
Regulates emotions better, reducing hostile responses
View other’s hostility as information, not personal attack
Personal goals and priorities
Influence best conflict handling style
Conflict orientation
Win-win orientation—belief that parties will find a mutually beneficial solution
Win-lose orientation—belief that one party’s gain is the other’s loss (i.e. fixed pie)
Pre-lesson activity
Activity 11.3: The Dutch test for conflict handling:

13. Five Conflict Handling Styles
Video clip:
Conflict resolution in the workplace:

14. Conflict Handling Contingencies
Problem solving
Best when:
Interests are not perfectly opposing
Parties have trust/openness
Issues are complex
Problem: other party takes advantage of information
Forcing
You have a deep conviction about your position
Quick resolution required
Other party would take advantage of cooperation
Problems: relationship conflict, long-term relations

15. Conflict Handling Contingencies continued
Avoiding
Best when:
Conflict is emotionally charged (relationship conflict)
Conflict resolution cost is higher than benefits
Problems: doesn’t resolve conflict, frustration
Yielding
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 others’ expectations; imperfect solution

16. Conflict Handling Contingencies continued
Compromising
Best when:
Parties have equal power
Quick solution is required
Parties lack trust/openness
Problem: sub-optimal solution where mutual gains are possible

17. Resolving Conflict Through Negotiation
Negotiation: conflicting parties attempt to resolve their divergent goals by redefining the terms of their interdependence
Need to consider desired outcomes, tactics, deal design and the scope of the negotiation
Points for discussion:
Ask students how many of them negotiate at their workplace. After a quick reflection they realise they all do. Ask again—Who here has never negotiated?
What is negotiation?

18. Negotiating Fundamentals
Setting Limits
Target point
Resistance point
Assessing Power
Consider alternatives
Skills
Video clip:
This example from the film ‘The Fifth Element’ shows how the hero sets limits and assesses power:

19. Creating and Claiming Value
The goal of value creation is to ensure that both negotiators obtain the best possible outcomes
Managing the Deal
Managing Information
Managing the Process
Beyond the Deal

20. Managing the Deal Information Skills Concessions Strategies
Multi-issue proposals
Conceding on low-value items while getting concessions on high-value items

21. Managing Information Small number of strong arguments
Understand the other negotiator’s needs
Investigative approach to negotiations

22. Managing the Process Tactics:
Delaying or stalling the negotiation
Setting deadlines
Risk: negotiation turning into an escalating cycle of attack and counterattack
Ignore personal attacks and refocus on the substantive problem

23. Beyond the Deal
Considering other aspects in addition to best possible deal:
Implementation
Social capital
Relationship building
Reputation
Ethical negotiation

24. Negotiating Ethically
Avoid:
Misrepresentation
False promises
Attacking an opponent’s network
Inappropriate information gathering
Strategic misrepresentation of positive or negative emotions

25. Culture and Conflict Individualism/collectivism Power distance
Focus on harmony versus personal goals
Power distance
High power distance people signal status in conflicts
High/low context style
Low context people communicate more directly, using logical arguments
Points for discussion:
If you have international students, ask them to provide examples of how people negotiate in their culture.

26. Gender and Conflict During conflict, women (compared to men) tend to:
Focus more on relationship consequences
Set lower targets
Use fewer alternatives to improve their outcomes
See the process as necessarily competitive
Women have better outcomes in conflict when parties approach the disagreement collaboratively
Teaching note:
Some recent studies have shown that females can negotiate as well as males but they receive negative reactions from the environment for negotiating, more so than do males.

27. Resolving Conflict Through Third-party Intervention
Points for discussion:
What is the value of a third party in resolving conflicts?
These ads are an example of a third party mediation: AND

28. Choosing the Best Third-Party Strategy
Managers prefer inquisitional strategy, but this is not usually the best approach
Mediation potentially offers the highest satisfaction with process and outcomes
Use arbitration when mediation fails

29. Organisational Approaches to Conflict Resolution
Emphasising superordinate goals
Emphasise common objective rather than conflicting sub-goals
Reduce goal incompatibility and differentiation
Reducing values differences
Remove sources of different values and beliefs
e.g. move employees around to different jobs

30. Organisational Approaches to Conflict Resolution continued
Improving communication/understanding
Employees understand and appreciate each other’s views through communication
Relates to contact hypothesis
Warning: apply communication/understanding after reducing differentiation
Reducing interdependence
Divide shared resources
Combine tasks
Use buffers

31. Organisational Approaches to Conflict Resolution continued
Increasing resources
Duplicate resources
Clarifying rules and procedures
Clarify resource distribution
Change interdependence
Establishing a positive climate
Norms that encourage openness
Norms that discourage negative emotions and encourage positive diffusion tactics (e.g. humour)
Alternative dispute resolution

32. Summary Moderate conflict can be effective
The conflict process model begins with the five structural sources of conflict
The current perspective on conflict involves distinguishing task from relationship conflict
There are several conflict-handling styles: problem solving, forcing, avoiding, yielding and compromising. People who use problem solving have a win–win orientation
Effective negotiators need to engage in both collaboration and competition in order to obtain outcomes

33. Conflict and negotiation in the workplace
Chapter 11
Conflict and negotiation in the workplace