1 © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McShane/Von Glinow OB 3e Conflict Management Conflict Management

2 © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McShane/Von Glinow OB 3e ConflictConflict Conflict One party perceives its interests are being opposed or set back by another party

3 © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McShane/Von Glinow OB 3e Conflict Mgt & Constructive Conflict Conflict Management  Interventions that alter the level and form of conflict for organizational effectiveness Constructive Conflict  Encourages people to learn about other points of view

4 © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McShane/Von Glinow OB 3e Functional vs. Dysfunctional Conflict Functional Conflict Serves organization’s Interests Typically issue-focused Stimulates creativity Dysfunctional Conflict Threatens organization’s Interests Typically person-focused Breeds hostility Stifle communication

5 © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McShane/Von Glinow OB 3e Task vs. Socioemotional Conflict Task-related conflict  Conflict is aimed at issue, not parties  Helps recognize problems, identify solutions, and understand the issues better  Potentially healthy and valuable Socioemotional conflict  Conflict viewed as a personal attack  Introduces perceptual biases  Distorts information processing

6 © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McShane/Von Glinow OB 3e Conflict Inside Arthur Andersen While Arthur Andersen employees put up a united front during the firm’s dying days (as this photo shows), the accounting firm’s fee structure and culture created substantial dysfunctional conflict. ©AP Photo/David Phillip

7 © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McShane/Von Glinow OB 3e Conflict at Air Canada Conflict between Air Canada pilots and former Canadian Airlines pilots over seniority rights has created tension and ill- feelings. “We will not mingle with those people [Air Canada pilots] and the feeling is mutual,” says a Air Canada senior pilot. CP/Tannis Toohey

8 © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McShane/Von Glinow OB 3e The Conflict Process Sources of Conflict ManifestConflict ConflictOutcomes Conflict Perceptions Conflict Emotions Conflict Escalation Cycle

9 © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McShane/Von Glinow OB 3e Causes of Conflicts - Incompatible personalities or value systems - Role ambiguity/ overload - Interdependent tasks - Competition for limited resources

10 © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McShane/Von Glinow OB 3e 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 relations

11 © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McShane/Von Glinow OB 3e Sources of conflict Goalincompatibility Different values and beliefs Taskinterdependence Three levels of interdependence Resource ABC Pooled ABC Sequential A BC Reciprocal

12 © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McShane/Von Glinow OB 3e 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

13 © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McShane/Von Glinow OB 3e 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

14 © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McShane/Von Glinow OB 3e Organizational Conflict Outcomes Potential benefits  Improves decision making  Strengthens team dynamics Dysfunctional outcomes  Diverts energy and resources  Weakens knowledge management  Increases frustration, job dissatisfaction, stress, and absenteeism

15 © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McShane/Von Glinow OB 3e 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

16 © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McShane/Von Glinow OB 3e Emphasizing Superordinate Goals  Emphasizing common objectives rather than conflicting sub-goals  Reduces goal incompatibility and differentiation Ed Lallo

17 © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McShane/Von Glinow OB 3e Reducing Differentiation Remove sources of different values and beliefs Move employees around to different jobs, departments, and regions Other ways to reduce differentiation:  Common dress code  Common work experiences Ed Lallo

18 © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McShane/Von Glinow OB 3e Other Ways to Manage Conflict Reduce Task Interdependence  Dividing shared resources  Combine tasks  Use buffers Increase Resources  Duplicate resources Clarify Rules and Procedures  Clarify resource distribution  Change interdependence

19 © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McShane/Von Glinow OB 3e Five Conflict-Handling Styles IntegratingObliging DominatingAvoiding Compromising HighLow High Low Concern for Others Concern for Self

20 © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McShane/Von Glinow OB 3e Desired Conflict Outcomes Agreement: strive for equitable and fair agreements that last Stronger Relationships: build bridges of goodwill and trust for the future Learning: greater self- awareness and creative problem solving

21 © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McShane/Von Glinow OB 3e Stimulating Functional Conflict Devil’s Advocacy Approach 1) Action proposed 2) Devil’s advocate criticizes it 3) Both sides presented to decision makers 4) Decision is made and monitored Dialectic Decision Method 1) Action proposed 2) Assumptions identified 3) Counterproposal generated on different assumptions 4) Debate takes place 5) Decision is made and monitored