Conflict and Negotiation in the Workplace

Conflict Defined  The process in which one party perceives that its interests are being opposed or negatively affected by another party. ©AP Photo/David Phillip

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 LowHigh 0

Is Conflict Good or Bad?: 1970s- 1990s View  1970s to 1990s – belief in an optimal level of conflict  Some level of conflict is good because: Energizes debate Reexamine assumptions Improves responsiveness to external environment Increases team cohesion Level of conflict Conflict outcomes Bad Good LowHigh 0 Optimal conflict

 Two types of conflict Constructive conflict -- Conflict is aimed at issue, not parties Relationship conflict -- Conflict is aimed at undermining the other party Is Conflict Good or Bad?: Emerging View

 Goal: encourage constructive conflict, minimize relationship conflict  Problem: difficult to separate constructive from relationship conflict Drive to defend activated when ideas are critiqued Level of conflict Conflict outcomes Bad Good LowHigh 0 Constructive conflict Relationship conflict

The Conflict Process Sources of Conflict ManifestConflict ConflictOutcomes Conflict Perceptions Conflict Emotions Conflict Escalation Cycle

Task vs. Socioemotional Conflict  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 conflict Conflict viewed as a personal attack Introduces perceptual biases Distorts information processing

Conflict Mgt & Constructive Conflict  Conflict Management Interventions that alter the level and form of conflict for organizational effectiveness  Constructive Conflict Encourages people to learn about other points of view

Organizational Conflict Outcomes  Potential benefits Improves decision making Strengthens team dynamics  Dysfunctional outcomes Distract energy and resources Weakens knowledge management Increases frustration, job dissatisfaction, stress, turnover and absenteeism

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

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)

Interpersonal Conflict Handling Styles  Win-win orientation believe parties will find a mutually beneficial solution  Win-lose orientation belief that the more one party receives, the less the other receives

Assertiveness Cooperativeness ForcingProblem-Solving Compromising AvoidingYielding High Low High Conflict Management Styles

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

Conflict Handling Contingencies  Avoiding Best when:  relationship conflict is high  conflict resolution cost is higher than benefits Problems: doesn’t resolve conflict, frustration  Yielding Best when:  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 other party’s expectations

Conflict Handling Contingencies  Compromising Best when…  Parties have equal power  Quick solution is required  Parties lack trust/openness Problem: Sub-optimal solution where mutual gains are possible

Emphasizing Superordinate Goals  Emphasizing common objectives rather than conflicting sub- goals  Reduces goal incompatibility and differentiation Ed Lallo

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 Ed Lallo

Better Communication/Understanding  Employees understand and appreciate each other’s views through communication Informal gatherings Formal dialogue sessions Teambuilding activities

Other Ways to Manage Conflict  Reduce Task Interdependence Dividing shared resources Combine tasks Use buffers- human buffers- people who intervene between highly interdependent people or work units.  Increase Resources Duplicate resources  Clarify Rules and Procedures Clarify resource distribution Change interdependence

Resolving Conflict Through Negotiation  Negotiation -- attempting to resolve divergent/different goals by redefining terms of interdependence  Which conflict handling style is best in negotiation? Begin cautiously with problem-solving style Shift to a win-lose style when  Mutual gains situation isn’t apparent  Other part won’t respond to share info

Your Positions Initial Target Initial Target Opponent’s Positions Area of Potential Agreement Bargaining Zone Model Resistance

Types of Third Party Intervention Mediation Arbitration Inquisition Level of Process Control Level of Outcome Control High Low

Choosing the Best 3rd Party Strategy  Managers prefer inquisitional strategy, but not usually best approach  Mediation potentially offers highest satisfaction with process and outcomes  Use arbitration when mediation fails

Conflict and Negotiation in the Workplace