Conflict and Negotiation Chapter 9 Conflict and Negotiation Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-1 Copyright © 2007 Pearson Education Canada

Conflict and Negotiation What is conflict? How can conflict be resolved? What are the effects of conflict? What is negotiation? How does one negotiate effectively? What are some of the contemporary issues in negotiation? This material is found at the beginning of the chapter. Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-2 Copyright © 2007 Pearson Education Canada

Conflict Defined A 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. Functional Supports the goals of the group and improves its performance. Dysfunctional Hinders group performance. Material pertinent to this discussion is found on pages 315-316. Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-3 Copyright © 2007 Pearson Education Canada

Research Findings Cognitive Affective Conflict related to differences in perspectives and judgments. Task-oriented Results in identifying differences Usually functional conflict Affective Emotional conflict aimed at a person rather than an issue. Dysfunctional conflict Material pertinent to this discussion is found on page 316. Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-4 Copyright © 2007 Pearson Education Canada

Conflict and Unit Performance (Low) (High) ) h g i H ( Level of conflict e c n a m r o f p t U Unit performance Material pertinent to this illustration is found on page 323. We suggest in Exhibit 9-3 that there is an optimal level of conflict in the workplace to maximize productivity, but this is decidedly a North American viewpoint. Many Asian cultures believe that conflict almost always has a negative effect on the work unit. Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-5 Copyright © 2007 Pearson Education Canada

Conflict Intensity Continuum Annihilatory Overt efforts to destroy conflict the other party Aggressive physical attacks Threats and ultimatums Assertive verbal attacks Material pertinent to this illustration is found on page 317. Overt questioning or challenging of others Minor disagreements or No misunderstandings conflict Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-6 Copyright © 2007 Pearson Education Canada

Sources of Conflict Communication Structure: Size, specialization, and composition of the group Ambiguity responsibility Zero-sum reward systems Leadership style The diversity of goals If one group is dependent on another Material pertinent to this discussion is found on pages 316-317. Composition: The larger the group and the more specialized its activities, the greater the likelihood of conflict. The potential for conflict tends to be greatest where group members are younger and where turnover is high. Jurisdictional Ambiguities: Increase intergroup fighting for control of resources and territory. Reward systems: where one member’s gain is at another’s expense. If a group is dependent on another group (in contrast to the two being mutually independent), or if interdependence allows one group to gain at another’s expense, opposing forces are stimulated. Participation: Encourages the promotion of differences. Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-7 Copyright © 2007 Pearson Education Canada

Sources of Conflict (cont.) Personality: Misunderstandings based on age, race, or cultural differences Intolerance, prejudice, discrimination, and bigotry Perceived inequalities Misunderstandings, rumours, or falsehoods about an individual or group Blaming for mistakes or mishaps (finger-pointing) Material pertinent to this illustration is found on page 322. Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-8 Copyright © 2007 Pearson Education Canada

Conflict Resolution Two Dimensions: Cooperativeness Assertiveness The degree to which one party attempts to satisfy the other party’s concerns. Assertiveness The degree to which one party attempts to satisfy his or her own concerns. Material pertinent to this discussion is found on page 319. Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-9 Copyright © 2007 Pearson Education Canada

Five Conflict-Handling Strategies Forcing Imposing one’s will on the other party. Problem solving Trying to reach an agreement that satisfies both one’s own and the other party’s aspirations as much as possible. Avoiding The desire to withdraw from or suppress a conflict. Yielding Accepting and incorporating the will of the other party. Compromising A situation in which each party to a conflict is willing to give up something. Material pertinent to this discussion is found on page 319. Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-10 Copyright © 2007 Pearson Education Canada

Conflict-Handling Strategies and Accompanying Behaviour Uncooperative Cooperative COOPERATIVENESS Trying to satisfy the other person’s concerns Forcing Satisfying one’s own interests without concern for the other’s interests • Make threats and bluffs • Make persuasive arguments • Make positional commitments Problem solving Clarifying differences to find mutually beneficial outcomes • Exchange information about priorities and preferences • Show insights • Make trade-offs between important and unimportant issues Compromising r Giving up something to reach an outcome (done by both parties) • Match other’s concessions • Make conditional promises and threats • Search for a middle ground A voiding Withdrawing from or ignoring conflict • Don’t think about the issues Yielding Placing the other’s interests above one’s own • Make unilateral concessions • Make unconditional promises • Offer help ASSERTIVENESS Trying to satisfy one’s own concerns ’ Unassertive Assertive Material pertinent to this illustration is found on page 320. Cooperativeness: The degree to which one party attempts to satisfy the other party’s concerns. Assertiveness: The degree to which one party attempts to satisfy his or her own concerns. Specific Intentions: Competing: A desire to satisfy one’s interests, regardless of the impact on the other parties. Collaborating: A situation where the parties to a conflict each desire to satisfy fully the concerns of all parties. Avoiding: The desire to withdraw from or suppress a conflict. Accommodating: The willingness of one party in a conflict to place the opponent’s interests above his or her own. Compromising: A situation in which each party to a conflict is willing to give up something. Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-11 Copyright © 2007 Pearson Education Canada

What Can Individuals Do to Manage Conflict? Problem solving Developing superordinate goals Smoothing Compromising Avoidance Material pertinent to this illustration is found on page 321. Problem-solving: Requesting a face-to-face meeting to identify the problem and resolve it through open discussion. Developing superordinate goals: Creating a shared goal that requires both parties to work together, and motivates them to do so. Smoothing: Playing down differences while emphasizing common interests with the other party. Compromising: Agreeing with the other party that each will give up something of value to reach an accord. Avoidance: Withdrawing from, or suppressing, the conflict. Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-12 Copyright © 2007 Pearson Education Canada

Techniques for Managing Work-Related Conflicts Expansion of resources Authoritative command Altering the human variable Altering the structural variables Material pertinent to this discussion is found on pages 321-322. Expansion of Resources: The scarcity of a resource--say, money, promotion opportunities, office space--can create conflict. Expansion of the resource can create a win-win solution. Authoritative command: Management can use its formal authority to resolve the conflict and then communicate its desires to the parties involved. Altering the human variable: Behavioural change techniques such as human relations training can alter attitudes and behaviours that cause conflict. Altering the structural variables: The formal organization structure and the interaction patterns of conflicting parties can be changed through job redesign, transfers, creation of coordinating positions, and the like. Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-13 Copyright © 2007 Pearson Education Canada

Resolving Intercultural Conflicts Those from Asian cultures show a preference for conflict avoidance, compared with Americans and Britons. Chinese and East Asian managers prefer compromising as a strategy, contrary to North Americans. North Americans prefer a problem-solving approach to conflicts, which yields a win-win solution. Win-win solutions are less likely to be achieved in Asian cultures. East Asian managers tend to ignore conflict rather than make it public. Japanese managers tend to choose nonconfrontational styles. Westerners are more likely to choose forcing as a strategy than Asians. North Americans expect that negotiations may lead to a legal contract; Asian cultures rely less on legal contracts and more on relational contracts. Material pertinent to this discussion is found on page 323. Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-14 Copyright © 2007 Pearson Education Canada

Third-Party Conflict Resolution Facilitation Conciliation Ombudsperson Peer Review Mediation Arbitration Material pertinent to this discussion is found on pages 324-325. Occasionally, individuals or group representatives reach a stalemate and are unable to resolve their differences. In such cases, they may turn to alternative dispute resolution (ADR), where a third party helps both sides find a solution outside a courtroom. Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-15 Copyright © 2007 Pearson Education Canada

Third-Party Conflict Resolution Facilitator: Generally acquainted with both parties, working with both sides to reach an agreement. Conciliator: Trusted third party who provides an informal communication link between the negotiator and the opponent. Informal link Used extensively in international, labour, family, and community disputes Fact-find, interpret messages, persuade disputants to develop agreements Material pertinent to this discussion is found on page 324. Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-16 Copyright © 2007 Pearson Education Canada

Third-Party Conflict Resolution Ombudsperson An impartial party, widely respected, and trusted. Peer Review A panel of peers who have been put together to hear both sides of the issue from the parties involved and to recommend a solution. Material pertinent to this discussion is found on page 324. Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-17 Copyright © 2007 Pearson Education Canada

Third-Party Conflict Resolution Mediator: A neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives. Labour-management negotiations and civil court disputes Settlement rate is about 60 percent; satisfaction rate is about 75 percent Participants must be motivated to bargain and settle Best under moderate levels of conflict Mediator must appear neutral and non-coercive Arbitrator: Has authority to dictate an agreement. Voluntary (requested) or compulsory (imposed by law or contract) Always results in a settlement May result in further conflict Material pertinent to this discussion is found on page 325. Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-18 Copyright © 2007 Pearson Education Canada

Conflict Outcomes Three desired outcomes of conflict Agreement: Equitable and fair agreements are the best outcomes Stronger relationships: When conflict is resolved positively, this can lead to better relationships and greater trust. Learning: Handling conflict successfully teaches one how to do it better next time. Material pertinent to this illustration is found on page 326. Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-19 Copyright © 2007 Pearson Education Canada

Negotiation A process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for them. Distributive bargaining Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation. Integrative bargaining Negotiation that seeks one or more settlements that can create a win-win solution. Material pertinent to this discussion is found on pages 327-328. There are two general approaches: distributive bargaining and integrative bargaining. Distributive bargaining is negotiation that seeks to divide up a fixed amount of resources, a win-lose situation, while integrative bargaining is negotiation that seeks one or more settlements that can create a win-win solution. In contrast to distributive bargaining, integrative problem solving operates under the assumption that there exists more than one settlement that can create a win-win solution. Integrative bargaining builds long-term relationships and facilitates working together in the future. Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-20 Copyright © 2007 Pearson Education Canada

The Negotiation Process How to Negotiate The Negotiation Process Five steps to negotiation: Developing a strategy Definition of ground rules Clarification and justification Bargaining and problem solving Closure and implementation Identify BATNA: Best Alternative To a Negotiated Agreement. Developing a strategy Defining ground rules Clarification and justification Material pertinent to this information is found on page 329. Bargaining and problem solving Closure and implementation Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-21 Copyright © 2007 Pearson Education Canada

Staking Out the Bargaining Zone $400 $475 $525 $600 Buyer’s aspiration range Seller’s aspiration range Bargaining Zone Buyer’s Seller’s Buyer’s Seller’s Material pertinent to this illustration is found on page 330. target resistance resistance target point point point point Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-22 Copyright © 2007 Pearson Education Canada

Gender Differences in Negotiation Women More inclined to be concerned with feelings and perceptions, and take a longer-term view. View the bargaining session as part of an overall relationship. Tend to want all parties in the negotiation to be empowered. Use dialogue to achieve understanding. Men View the bargaining session as a separate event. Use dialogue to persuade. Material pertinent to this discussion is found on pages 331-332. Do men and women negotiate differently? The answer appears to be “It depends.” It is difficult to generalize about gender differences in negotiating styles, because the research yields many opinions, but few reliable conclusions. Some researchers have documented interesting and relevant differences, however. Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-23 Copyright © 2007 Pearson Education Canada

Cross-Cultural Negotiation Negotiating styles vary across national culture French: Like conflict. Chinese: Draw out negotiations, believing they never end. Chinese and Japanese: Negotiate to develop. relationships and commitment. Americans: Impatient, desire to be liked. Material pertinent to this discussion is found on pages 332-334. Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-24 Copyright © 2007 Pearson Education Canada

Exhibit 9-7 Negotiating Attitude Material pertinent to this illustration is found on page 333. Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 8-25 Copyright © 2007 Pearson Education Canada