© 2006 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill Ryerson 13 C H A P T E R: T H I R T E E N Conflict and Negotiation in the Workplace

2 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Calgary Herald/Janelle Schneider Conflict at TELUS Its advertisements say “the future is friendly,” but TELUS management and union leaders have been feuding ever since TELUS merged with BC Telecom to become Canada’s second largest telecommunications company.

3 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Conflict Defined The process in which one party perceives that its interests are being opposed or negatively affected by another party. Calgary Herald/Janelle Schneider

4 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e The Conflict Process Sources of Conflict ManifestConflict ConflictOutcomes Conflict Perceptions Conflict Emotions Conflict Escalation Cycle

5 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Organizational Conflict Outcomes Potential benefits  Improves decision making  Strengthens team dynamics Dysfunctional outcomes  Diverts energy and resources  Weakens knowledge management  Increases frustration, job dissatisfaction, stress, turnover and absenteeism

6 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Task vs Socioemotional Conflict Constructive (task-related) conflict  Conflict is aimed at issue, not parties  Helps recognize problems, identify solutions, and understand the issues better  Potentially healthy and valuable Socioemotional (relationship) conflict  Conflict viewed as a personal attack  Introduces perceptual biases  Distorts information processing

7 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Minimizing Socioemotional Conflict Emotional intelligence  Better able to regulate emotions  View others’ emotions as information Cohesive team  More trust and latitude  Understand other team members better  Motivated to minimize escalating conflict Supportive team norms  Appreciate honest dialogue without personal affront  Some norms might discourage displaying negative emotions

8 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Conflict at Air Canada Conflict between the “Original Air Canada” pilots and former Canadian Airlines pilots over seniority rights has created tension and ill-feelings. “We will not mingle with those people [Air Canada pilots] and the feeling is mutual,” says a former Canadian airlines pilot now working at Air Canada. CP/Ryan Remiorz

9 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Differentiation Task Interdependence Different values/beliefs Explains cross-cultural and generational conflict Conflict increases with interdependence Higher risk that parties interfere with each other IncompatibleGoals One party’s goals perceived to interfere with other’s goals more Sources of Conflict

10 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Ambiguous Rules Communication Problems Creates uncertainty, threatens goals Without rules, people rely on politics Increases stereotyping Reduces motivation to communicate Escalates conflict when arrogant Scarce Resources Motivates competition for the resource Sources of Conflict (con’t)

11 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Assertiveness Cooperativeness ForcingProblem-Solving Compromising AvoidingYielding High Low High Conflict Management Styles

12 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Emphasizing Superordinate Goals  Emphasizing common objectives rather than conflicting sub-goals  Reduces goal incompatibility and differentiation

13 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Reducing Differentiation Remove sources of different values and beliefs Move employees around to different jobs, departments, and regions Other ways to reduce differentiation:  Common dress code/status  Common work experiences

14 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Better Communication/Understanding Employees understand and appreciate each other’s views through communication  Relates to contact hypothesis Two warnings:  1. Apply communication/understanding after reducing differentiation  2. A Western strategy that may conflict with values/traditions in other cultures

15 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Other Ways to Manage Conflict Reduce Task Interdependence  Dividing shared resources  Combine tasks  Use buffers Increase Resources  Duplicate resources Clarify Rules and Procedures  Clarify resource distribution  Change interdependence

16 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Your Positions InitialTarget InitialTarget Opponent’s Positions Area of Potential Agreement Bargaining Zone Model Resistance

17 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Situational Influences on Negotiation Location Physical Setting Time Passage and Deadlines Audience © Corel Corp. With permission.

18 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Effective Negotiator Behaviours Preparation and goal setting Gathering information Communicating effectively Making concessions © Corel Corp. With permission.

19 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Types of Third Party Intervention Mediation Arbitration Inquisition Level of Process Control Level of Outcome Control High Low

© 2006 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill Ryerson 13 C H A P T E R: T H I R T E E N Conflict and Negotiation in the Workplace