Conflict and Negotiation Essentials of Organizational Behavior, 8/e Stephen P. Robbins Chapter 12 Conflict and Negotiation © 2005 Prentice-Hall

Conflict Process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about. © 2005 Prentice-Hall

Transitions in Conflict Thought Traditional View Human Relations View Interactionist View © 2005 Prentice-Hall

Transitions in Conflict Thought The Traditional View: Conflict is bad; synonymous with violence, destruction, and irrationality © 2005 Prentice-Hall

Transitions in Conflict Thought The Human Relations View: Conflict is natural and inevitable; accept it © 2005 Prentice-Hall

Transitions in Conflict Thought The Interactionist View: Conflict should be encouraged; keeps the group alive, self-critical, and creative © 2005 Prentice-Hall

Functional vs. Dysfunctional Conflict Task conflict Relationship conflict Process conflict © 2005 Prentice-Hall

Task conflict relates to the content and goals of the work © 2005 Prentice-Hall

Relationship conflict focuses on interpersonal relationships Process conflict relates to how the work gets done © 2005 Prentice-Hall

Conflict Process Potential opposition Cognition and Personalization Behavior Outcomes © 2005 Prentice-Hall

Conflict Process © 2005 Prentice-Hall

Stage I: Potential Opposition Communication Structure Personal Variables © 2005 Prentice-Hall

Stage II: Cognition and Personalization Potential for opposition becomes realized When individuals become emotionally involved - parties experience anxiety, tension, frustration, or hostility © 2005 Prentice-Hall

Stage III: Behavior Competition Collaboration Avoidance Accommodation Compromise © 2005 Prentice-Hall

Impact of National Culture Uncertainty avoidance and achievement/nurturing rankings are fairly good predictors of which conflict styles are preferred in different countries © 2005 Prentice-Hall

Stage IV: Outcomes Functional Outcomes Dysfunctional Conflict © 2005 Prentice-Hall

Creating Functional Conflict Managers can reward dissent and punish conflict avoiders © 2005 Prentice-Hall

Negotiation Process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them © 2005 Prentice-Hall

Bargaining Strategies © 2005 Prentice-Hall

Distributive Bargaining Negotiating over who gets what share of a fixed pie © 2005 Prentice-Hall

Integrative Bargaining Operates under the assumption that one or more settlements exist that can create a win-win solution © 2005 Prentice-Hall

Issues in Negotiation Decision-making biases Role of personality traits Effects of gender and cultural differences on negotiating styles © 2005 Prentice-Hall

Decision-Making Biases Irrational Escalation of Commitment The Mythical Fixed Pie Anchoring and Adjustments Framing Negotiations Availability of Information Winner’s Curse Overconfidence © 2005 Prentice-Hall

Role of Personality Traits Evidence shows no significant direct effect on bargaining or negotiation outcomes Concentrate on The issues The situational factors in each bargaining episode Not your opponent and his or her characteristics © 2005 Prentice-Hall

Gender Differences in Negotiation Men have been found to negotiate better outcomes than women Women may unduly penalize themselves by failing to engage in negotiations when such action would be in their best interest © 2005 Prentice-Hall

Cultural Differences in Negotiations Cultural context significantly influences... The amount and type of preparation for bargaining The relative emphasis on task versus interpersonal relationships The tactics used Where the negotiation should be conducted © 2005 Prentice-Hall

Managing Conflict Competition Collaboration Avoidance Accommodation Compromise © 2005 Prentice-Hall

Improving Negotiation Skills Research Your Opponent Begin with a Positive Overture Address the Problem, Not the Personalities Pay Little Attention to Initial Offers Emphasize Win-win Solutions Create an Open and Trusting Climate © 2005 Prentice-Hall