4e Nelson/Quick ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Conflict and Negotiation

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Outcomes  Describe the nature of conflicts in organizations  Explain the role structural and personal factors play in causing conflict in organizations  Discuss the nature of group conflict in organizations  Describe the factors that influence conflict between individuals in organizations  Describe effective and ineffective techniques for managing conflict  Identify five styles of conflict management 2

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Describe the nature of conflicts in organizations Learning Outcome 3

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Conflicts  Disagreement between two or more parties due to incompatible goals, attitudes, emotions, or behaviors  Magnified by increasing competition, globalization, and diversity 4

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Importance of Conflict Management Skills  Major predictor of managerial success  Reflection of emotional intelligence (EI)  EI - Power to control one’s emotions and perceive emotions in others, adapt to change, and manage adversity 5

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Table Consequences of Conflict 6

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Nature of Organizational Conflict Functional conflict Healthy, constructive disagreement Results in new ideas, learning, and growth among individuals Improves working relationships Individuals experience improved morale Leads to innovation and positive change for the organization Dysfunctional conflict Unhealthy, destructive disagreement Focuses on the conflict and the parties Drains energy Individuals act before thinking Leads to aggressive acts or retaliation Losses may exceed any potential gain from the conflict 7

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Diagnosing Conflict  Manager must look at the issue, the context of the conflict, and the parties involved  After diagnosing the type of conflict:  Work to resolve it  Stimulate it 8

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Beyond the Book: Questions to Use When Diagnosing Conflict YesNo Are the parties approaching the conflict from a hostile standpoint? Is the outcome likely to be a negative one for the organization? Do the potential losses of the parties exceed any potential gains? Is energy being diverted from goal accomplishment? 9

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Explain the role structural and personal factors play in causing conflict in organizations Learning Outcome 10

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure Causes of Conflict in Organizations 11

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Beyond the Book: Looking for Trouble  A South Carolina woman on probation signed a court document with instructions as to what body part the judge could kiss. The judge rewarded her with an additional 90 days of probation. The lesson: considering the consequences of your words can avoid needless conflict and negative consequences. 12

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Discuss the nature of group conflict in organizations Learning Outcome 13

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Forms of Group Conflict in Organizations Occurs between two or more organizations Interorganizational conflict Occurs between groups or teams Intergroup conflict Occurs within groups or teams Intragroup conflict 14

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Beyond the Book: AT&T vs. Verizon  Verizon advertisements compare their national 3G network coverage with that of AT&T.  AT&T sued Verizon in federal court, claiming that the ads are misleading and requesting that the Verizon ads be pulled. The judge decided against AT&T.  AT&T also responded with an anti-Verizon ad that highlights the iPhone. 15

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Describe the factors that influence conflict between individuals in organizations Learning Outcome 16

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Forms of Conflict in Organizations Intrapersonal conflict Occurs within an individual Interpersonal conflict Occurs between two or more individuals 17

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure An Organization Member’s Role Set SOURCE: J. C. Quick, J. D. Quick, D. L. Nelson, and J. J. Hurrell Jr., Preventive Stress Management in Organizations (Washington, DC: American Psychological Association, 1997). Copyright © 1997 by the American Psychological Association. Reprinted with permission. 18

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Intrapersonal Conflict Occurs when a person experiences conflict among the multiple roles in his or her life Work-home conflict Interrole conflict Occurs within a single role Arises when a person receives conflicting messages from role senders about how to perform a certain role Intrarole conflict Occurs when the expected behaviors of an individual clash with his or her personal values Person-role conflict 19

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Resolving Intrapersonal Conflicts  Find out about the values of the organization when seeking a new job  Perform role analysis to clarify the expectations of the parties in a relationship  Reduces the potential for conflict within a role or between roles  Develop political skills  Buffer the negative effects of stress that stem from role conflicts 20

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Managing Interpersonal Conflict  Understand power networks in organizations  Recognize defense mechanisms exhibited by individuals  Develop strategies to deal with difficult people 21

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure Power Relationships in Organizations SOURCE: W. F. G. Mastenbroek, Conflict Management and Organization Development (New York: Wiley, 1987). Copyright John Wiley & Sons Limited. Reproduced with permission. 22

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Aggressive Defense Mechanisms  Fixation: Keeping up a dysfunctional behavior that obviously will not solve the conflict  Displacement: Directing one’s anger toward someone who is not the source of the conflict  Negativism: Responding with pessimism to any attempt at solving a problem 23

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Compromise Defense Mechanisms  Compensation: Attempting to make up for a negative situation by devoting oneself to another pursuit with increased vigor  Identification: Patterning one’s behavior after another’s  Rationalization: Trying to justify one’s behavior by constructing bogus reasons for it 24

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Withdrawal Defense Mechanisms  Flight: Physically escaping a conflict  Withdrawal: Psychologically escaping a conflict  Conversion: Emotional conflicts are expressed in physical symptoms  Fantasy: Provides an escape from a conflict through daydreaming 25

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Describe effective and ineffective techniques for managing conflict Learning Outcome 26

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Table Win-Lose versus Win- Win Strategies 27

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ineffective Techniques for Dealing with Conflict Doing nothing in hopes that a conflict will disappear Nonaction Attempting to hide a conflict or an issue that has the potential to create conflict Secrecy Delaying action on a conflict by buying time Administrative orbiting Procedure that is so costly, time consuming, or risky that no one will use it Due process nonaction Attempt to label or discredit an opponent Character assassination 28

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Beyond the Book: What Would You Do?  Trying to capitalize on rising real estate prices, your organization purchased a large cache of mortgage backed securities. Thanks to the housing crisis and the global recession, these are now worthless, and your company is near bankruptcy. Senior management is divided on how to proceed. One group wants to eliminate 25% of lower level employees. Another group wants to reduce salaries across the board by 20%.  How would you resolve this strategic conflict? 29

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Effective Techniques for Dealing with Conflict Superordinate goal Organizational goal that is more important to both parties in a conflict than their individual goals Expanding resources Providing more resources when conflict is due to scarcity of resources Changing personnel Transferring or firing the individual causing conflict Changing structure Creating an integrator and using cross-functional teams Confronting and negotiating Negotiating - Helps find a mutually acceptable solution to a complex conflict 30

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Approaches to Negotiation  Distributive bargaining: Goals of the parties are in conflict and each party seeks to maximize its resources  Integrative negotiation: Goals are not seen as mutually exclusive, but the focus is on both sides achieving their objectives  Following factors should be considered  Cultural difference  Gender stereotypes 31

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Identify five styles of conflict management Learning Outcome 32

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure Conflict Management Styles SOURCE: K. W. Thomas, “Conflict and Conflict Management,” in M. D. Dunnette, Handbook of Industrial and Organizational Psychology (Chicago: Rand McNally, 1976), 900. Used with permission of M. D. Dunnette. 33

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Table Uses of Five Styles of Conflict Management SOURCE: K. W. Thomas, “Toward Multidimensional Values in Teaching: The Example of Conflict Behaviors,” Academy of Management Review 2 (1977): 309–325. Reproduced by permission of the publisher via Copyright Clearance Center, Inc. 34

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Table Uses of Five Styles of Conflict Management SOURCE: K. W. Thomas, “Toward Multidimensional Values in Teaching: The Example of Conflict Behaviors,” Academy of Management Review 2 (1977): 309–325. Reproduced by permission of the publisher via Copyright Clearance Center, Inc. 35

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Welcome Home Roscoe Jenkins  This chapter defined conflict as “any situation in which incompatible goals, attitudes, emotions, or behaviors lead to disagreement or opposition between two or more parties.” Does the interaction in this film sequence show this definition in action? Give examples from the sequence.  Does this film sequence show functional or dysfunctional conflict? Give some examples from the sequence.  Which conflict management style best fits the behavior shown in this film sequence? Give some examples from the sequence. 36

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Barcelona Restaurant Group  Would you characterize the conflict evident at Barcelona Restaurant as functional or dysfunctional? Explain.  What forms of conflict are on display at Barcelona? What structural and personal factors are likely causes of this conflict?  Which of the five styles of conflict management mentioned in the chapter best characterizes interactions at Barcelona? 37