1. Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

2. Conflict and Negotiation Organizations: Behavior, Structure, Processes Chapter 9

3. 9-3 Learning Objectives Define functional conflict and dysfunctional conflict Understand how interpersonal conflict can be managed Describe the impact of intergroup conflict on organizational performance Discuss why intergroup conflict occurs Compare the consequences of intergroup conflict within and between groups Identify techniques that can be used to manage intergroup conflict

4. 9-4 Intergroup Functional Conflict For organizations to perform effectively, interdependent groups must establish working relationships Across organizational boundaries Between individuals Among groups

5. 9-5 Intergroup Functional Conflict A confrontation between groups that enhances and benefits organizational performance When conflict focuses on tasks, constructive debate improves decision making and work outcome Can be thought of as “creative tension”

6. 9-6 Intergroup Disfunctional Conflict Any confrontation or interaction between groups that… Harms the organization Hinders achievement of goals Management must try to eliminate dysfunctional conflict It negatively influences performance by shifting attention away from important tasks and goals

7. 9-7 Conflict & Organizational Performance Conflict has a positive or negative impact on organizational performance, depending on… The nature of the conflict How the conflict is managed When the conflict level is too low… Innovation and change are difficult It is hard to adapt to change When the conflict level is too high… Organizational survival is at risk

8. 9-8 Intergroup Conflict & Performance Level of Intergroup Conflict Situation I Dysfunctional Situation III Dysfunctional Situation II Functional High Performance Low Conflict High Conflict Low Performance

9. 9-9 Intergroup Conflict in Practice Managers try to eliminate all conflict, whether dysfunctional or functional Anti-conflict values are reinforced in the home, school, and church Managers are often evaluated on, and rewarded for, the lack of conflict in their areas of responsibility

10. 9-10 Intergroup Conflict and Productivity Conflict that impacts group functioning Task conflict: members have differing viewpoints and opinions pertaining to the group’s task Relationship conflict: interpersonal incompatibilities between group members Process conflict: controversy surrounding how tasks will be accomplished

11. 9-11 Why Intergroup Conflict Occurs Work Interdependence Pooled interdependence: no interaction among groups because each performs separately Sequential interdependence: one group completes its task before another can complete its task Reciprocal interdependence: each group’s output serves as input to other groups

12. 9-12 Why Intergroup Conflict Occurs Differences in Goals Limited resources: when limited resources are allocated, mutual dependencies increase, and differences in group goals become more apparent Reward structures: conflict is more likely when the reward system is geared toward group performance rather than to overall organizational performance

13. 9-13 Why Intergroup Conflict Occurs Differences in Perceptions Different goals Different time horizons Status incongruency Inaccurate perceptions Increased demand for specialists

14. 9-14 Line-Staff Conflict Common causes Perceived diminution of line authority Social and physical differences Line dependence on staff knowledge Different loyalties

15. 9-15 Dysfunctional Conflict Consequences Changes Within Groups Increased group cohesiveness Rise in autocratic leadership Focus on activity Emphasis on loyalty to the group Changes Between Groups Distorted perception Negative stereotyping Decreased communication

16. 9-16 Managing Intergroup Conflict Managers spend more than 20% of their time in conflict management

17. 9-17 Conflict Resolution Methods Problem solving Superordinate goals Expansion of resources Avoidance Smoothing Compromise Authoritative command Altering the human variable Altering structural variables Identifying a common enemy

18. 9-18 Negotiation A collaborative… Pursuit of joint gains Effort to create value where none existed Done poorly, the process can be a street fight Negotiation is done on a continuing basis With subordinates, superiors, vendors, and customers

19. 9-19 Cross Cultural Negotiations Culture influences negotiation practices Individualism Uncertainty avoidance Power distance Masculinity Communication issues Language barriers Non-verbal communication

20. 9-20 Group Negotiations Take place whenever one group’s work depends on the cooperation and activities of another group, over which the first group’s manager has no control.

21. 9-21 Negotiation Pre-negotiation tasks Ask questions Know which values, beliefs, and wants drive the other side’s actions Freely exchange information with the other group

22. 9-22 Negotiation Negotiation tactics Good guy/bad guy team The nibble Joint problem solving Power of competition Splitting the difference Low-balling

23. 9-23 The Effect of Personalities Personalities at the negotiating table Power Seeker Persuader Reliable Performer Limited Performer

24. 9-24 The Role of Trust in Negotiations There is a greater chance for a good outcome if trust exists between groups Managers expect chicanery when they’re negotiating Bluffing is a key negotiating skill Never place the other party in a position from which he or she can’t move without losing face

25. 9-25 Alternatives to Direct Negotiation Mediation A third party mediates the dispute Parties are not bound by the proposed resolution An impartial person works with each side to reach an agreement that benefits all Bringing in a mediator early allows conflicts to be resolved before hostilities set in

26. 9-26 Alternatives to Direct Negotiation Arbitration A third party resolves the dispute Parties are bound by the arbitrator’s decision Arbitrators can render a decision in favor of one group, both groups, or ask for more information

27. 9-27 Team Building Encouraging people who work together to meet as a group in order to… Identify and commit to common goals Improve communications Resolve conflicts Improve performance

28. 9-28 Team Building as a Process Team building Requires long-term commitment Begins with diagnostic meetings Ends with an agreed-upon plan of action Common causes of team conflict Confusion over roles and relationships Vague understanding of long-term goals Lack of interpersonal skills Ignoring team member relationships

29. 9-29 Management’s Team Building Role Critical elements Commitment Trust Sharing of information Training Union partnership

30. 9-30 Managing Intergroup Conflict Techniques that can stimulate conflict to a functional level Communication Bringing outside individuals into the group Altering the organization’s structure Stimulating competition among groups Managing intergroup conflict through stimulation is difficult It can quickly become dysfunctional conflict