Conflict and Negotiation in the Workplace McGraw-Hill/Irwin McShane/Von Glinow OB 5e Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

Cross-Generational Conflict To reward themselves for a job well done, Generation-Y (Millennial) employees might throw a pizza party during office hours, but this practice bothers older employees who have different views about appropriate workplace behavior. 11-2

Conflict Defined The process in which one party perceives that its interests are being opposed or negatively affected by another party 11-3

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 Low High 11-4

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 Low High Optimal conflict 11-5

Is Conflict Good or Bad?: Emerging View Two types of conflict Constructive conflict -- Conflict is aimed at issue, not parties Relationship conflict -- Conflict is aimed at undermining the other party 11-6

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 Low High Constructive conflict Relationship conflict 11-7

Constructive Confrontation at Intel Intel employees learn to fully evaluate ideas through “constructive confrontation.” The objective is to attack the problem, not the employee, but some critics claim the process is a license for some Intel staff to be bullies. 11-8

Minimizing Relationship Conflict Three conditions that minimize relationship conflict while engaging in constructive conflict Emotional intelligence Cohesive team Supportive team norms 11-9

The Conflict Process Conflict Perceptions Emotions Manifest Conflict Sources of Conflict Conflict Outcomes Conflict Escalation Cycle 11-10

Structural Sources of Conflict Incompatible Goals One party’s goals perceived to interfere with other’s goals Differentiation Different values/beliefs Explains cross-cultural and generational conflict Task Interdependence Conflict increases with interdependence Parties more likely to interfere with each other more 11-11

Structural Sources of Conflict Scarce Resources Motivates competition for the resource Ambiguous Rules Creates uncertainty, threatens goals Without rules, people rely on politics Communication Problems Increases stereotyping Reduces motivation to communicate Escalates conflict when arrogant 11-12

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 11-13

Five Conflict Handling Styles High Forcing Problem-solving Assertiveness Compromising Avoiding Yielding Low High Cooperativeness 11-14

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 you have a deep conviction about your position quick resolution required other party would take advantage of cooperation Problems: relationship conflict, long-term relations 11-15

Conflict Handling Contingencies Avoiding Best when: relationship conflict is high conflict resolution cost is higher than benefits Problems: doesn’t resolve conflict, frustration Yielding 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 11-16

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 11-17

Structural Approaches to Conflict Resolution Emphasizing superordinate goals Emphasize common objective rather than conflicting sub-goals Reduces goal incompatibility and differentiation Reducing differentiation Remove sources of different values and beliefs e.g. Move employees around to different jobs 11-18

Structural Approaches to Conflict Resolution (con’t) Improving communication/understanding Employees understand and appreciate each other’s views through communication Relates to contact hypothesis Two warnings: Apply communication/understanding after reducing differentiation A Western strategy that may conflict with values/traditions in other cultures 11-19

Structural Approaches to Conflict Resolution (con’t) Reduce Task Interdependence Dividing shared resources Combine tasks Use buffers Increase Resources Duplicate resources Clarify Rules and Procedures Clarify resource distribution Change interdependence 11-20

Resolving Conflict Through Negotiation Negotiation -- attempting to resolve divergent 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 reciprocate info sharing 11-21

Bargaining Zone Model Your Positions Opponent’s Positions Initial Target Resistance Area of Potential Agreement Resistance Target Initial Opponent’s Positions 11-22

Situational Influences on Negotiation Location Physical setting Time passage and deadlines Audience Courtesy of Microsoft 11-23

Effective Negotiation Behavior Preparation and goal setting Gathering information Communicating effectively Making concessions Courtesy of Microsoft 11-24

Types of Third Party Intervention High Mediation Inquisition Level of Process Control Arbitration Low Level of Outcome Control High 11-25

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 11-26

Conflict and Negotiation in the Workplace McGraw-Hill/Irwin McShane/Von Glinow OB 5e Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. 11-27