 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione C H A P T E R 13 Conflict and negotiation

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 2 Chapter learning objectives 1.Distinguish task-related from socioemotional conflict. 2.Discuss the advantages and disadvantages of conflict in organisations. 3.Identify six sources of organisational conflict. 4.Outline the five interpersonal styles of conflict management. 5.Summarise six structural approaches to managing conflict. 6.Outline four situational influences on negotiations. 7.Compare and contrast the three types of third-party dispute resolution.

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 3 Conflict between Woodside and Shell Executives at Woodside Petroleum and Royal Dutch/Shell experienced conflict when Shell recently tried to take majority ownership of the Perth-based oil and gas development company. © AFP Photo/HO

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 4 Conflict defined The process in which one party perceives that its interests are being opposed or negatively affected by another party. © AFP Photo/HO

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 5 The conflict process Sources of conflict Manifestconflict Conflictoutcomes Conflict perceptions Conflict emotions

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 6 Task-related vs socioemotional conflict  Task-related conflict  conflict is aimed at issue, not parties  basis of constructive controversy  helps recognise problems, identify solutions and understand the issues  Socioemotional conflict  conflict viewed as a personal attack  foundation of conflict escalation  leads to dissatisfaction, stress and turnover

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 7 Organisational conflict outcomes  Dysfunctional outcomes  diverts energy and resources  encourages organisational politics  encourages stereotyping  weakens knowledge management  Potential benefits  improves decision making  strengthens team dynamics

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 8 Sources of conflict Goalincompatibility Different values and beliefs Goals conflict with goals of others  Different beliefs due to unique background, experience, training  Caused by specialised tasks, careers  Explains misunderstanding in cross-cultural and merger relations

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 9 Sources of conflict Goalincompatibility Different values and beliefs Taskinterdependence Three levels of interdependence Resource ABC Pooled ABC Sequential A BC Reciprocal

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 10 Sources of conflict GoalIncompatibility Different Values and Beliefs TaskInterdependence ScarceResources Ambiguity Increases competition for resources to fulfil goals  Lack of rules guiding relations  Encourages political tactics

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 11 Sources of conflict GoalIncompatibility Different Values and Beliefs TaskInterdependence ScarceResources Ambiguity CommunicationProblems  Lack of opportunity  reliance on stereotypes  Lack of ability  arrogant communication heightens conflict perception  Lack of motivation  conflict causes lower motivation to communicate, increases stereotyping

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 12 Conflict mgt styles: orientations  Win-win orientation  you believe parties will find a mutually beneficial solution to their disagreement  Win-lose orientation  you believe that the more one party receives, the less the other receives  tends to escalate conflict, use of power/politics

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 13 Assertiveness Cooperativeness CompetingCollaborating Compromising AvoidingAccommodating High Low High Conflict management styles

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 14 Superordinate goals at Tivoli Systems The value of superordinate goals was apparent in a paper airplanes exercise at Tivoli Systems. Teams discovered that they succeeded by focusing on the organisation’s goals rather than fighting over conflicting goals between teams. © Ed Lallo

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 15 Emphasising superordinate goals  Emphasising common objectives rather than conflicting sub-goals  Reducing goal incompatibility and differentiation © Ed Lallo

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 16 Reducing differentiation  Remove sources of different values and beliefs  Move employees around to different jobs, departments and regions  Other ways to reduce differentiation:  encourage generalist careers  common dress code and status  common work experiences © Ed Lallo

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 17 © Gary Diggens/Toronto Star Improving communication/understanding Employees understand and appreciate each other’s views through communication  informal gatherings  formal dialogue sessions  teambuilding activities (such as drum circles, shown here)

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 18 Other ways to manage conflict  Reduce task interdependence  divide shared resources  combine tasks  use buffers  Increase resources  duplicate resources  Clarify rules and procedures  clarify resource distribution  change interdependence

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 19 Your positions InitialTarget InitialTarget Opponent’s positions Area of potential agreement Bargaining zone model Resistance

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 20 Situational influences on negotiation  Location  Physical setting  Time investment and deadlines  Audience © Corel Corp. With permission.

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 21 Effective negotiator behaviours  Plan and set goals  Gather information  Communicate effectively  Make appropriate concessions © Corel Corp. With permission.

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 22 Third-party conflict resolution objectives Efficiency Effectiveness Proceduralfairness Outcomefairness Third-party objectives

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 23 Types of third-party intervention Mediation Arbitration Inquisition Level of process control Level of outcome control High Low

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 24 Overview of the next chapter  Competencies of effective leaders  Behavioural perspective of leadership  Path-goal theory of leadership  Elements of transformational leadership  Why people inflate the importance of leadership  Gender differences in leadership

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione C H A P T E R 13 Conflict and negotiation