Chapter 13 Conflict and Negotiation 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. Learning Outcomes © 2013 Cengage Learning

1 Learning Outcome Describe the nature of conflicts in organizations. © 2013 Cengage Learning

Conflict Conflict - any situation in which incompatible goals, attitudes, emotions, or behaviors lead to disagreement or opposition between two or more parties © 2013 Cengage Learning 8

Importance of Conflict Management Skills “As managers we spend about 21% of our time dealing with conflict.” Conflict management skills predict managerial success Emotional intelligence is critical indicator of manager’s ability to deal with conflict © 2013 Cengage Learning

Emotional Intelligence the power to control one’s emotions perceive emotions in others adapt to change manage adversity © 2013 Cengage Learning 8

Consequences of Conflict © 2013 Cengage Learning 4

Nature of Organizational Conflict Functional Conflict – a healthy, constructive disagreement between two or more people Dysfunctional Conflict – an unhealthy, destructive disagreement between two or more people © 2013 Cengage Learning 2

Diagnosing Conflict Examine the issue Examine the context Examine the parties © 2013 Cengage Learning

Beyond the Book: Questions to Use When Diagnosing Conflict Yes No 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? © 2013 Cengage Learning

2 Learning Outcome Explain the role structural and personal factors play in causing conflict in organizations. © 2013 Cengage Learning

Causes of Conflict in Organizations Personal Factors Skills and abilities Personalities Perceptions Values and ethics Emotions Communication barriers Cultural differences Structural Factors Specialization Interdependence Common resources Goal differences Authority relationships Status inconsistencies Jurisdictional ambiguities CONFLICT! © 2013 Cengage Learning 5

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. SOURCE: Associated Press, "After Telling Judge what to Kiss, Kiss Freedom Goodbye," Houston Chronicle (January 6, 2008). Available at http://www.chron.com/disp/story.mpl/bizarre/5431790.html After telling judge what to kiss, kiss freedom goodbye Court upholds contempt ruling over defendant's nasty note; woman sentenced to 90 more days Associated Press ORANGEBURG, S.C. — Note to defendants: Don't tell the judge to kiss the body part you sit on. The South Carolina Court of Appeals has upheld a judge's contempt order against a St. Matthews woman who signed a court document with just such an instruction and told a probation officer to return the document to the judge. Circuit Judge Diane Goodstein found Judith Law in contempt and ordered her to serve 90 extra days. Law challenged the ruling, saying the contemptuous behavior happened outside the judge's view. "No matter where Law signed the revocation order, her conduct was in the presence of the judge," the appeals court wrote in its decision last month. In 2003, Law pleaded guilty to grand larceny and burglary charges and was sentenced to five years, suspended to time served. She also was sentenced to three years' probation and ordered to pay $300 in restitution. In September 2005, Law admitted violating her probation, which resulted in Goodstein reinstating the five-year sentence, according to the appeals court. While signing that probation revocation order, Law decided to tell the judge what she could kiss. Typically that document would not go back to the judge, but when this one did, Goodstein ordered a hearing, found Law in contempt and sentenced her to 90 days on top of her remaining sentence. The lesson: considering the consequences of your words can avoid needless conflict and negative consequences. © 2013 Cengage Learning

3 Learning Outcome Discuss the nature of group conflict in organizations. © 2013 Cengage Learning

Forms of Conflict in Organizations Interorganizational Conflict – conflict that occurs between two or more organizations Intergroup Conflict – conflict that occurs between groups or teams in an organization Intragroup Conflict – conflict that occurs within groups or teams © 2013 Cengage Learning © 2013 Cengage Learning 8

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. The ultra-competitive wireless communication market features an excellent example of an interorganizational conflict. In October-November 2009, Verizon began an advertisement campaign that featured a side-by-side comparison of their nationwide 3G network with that of AT&T. The ads showed that Verizon’s coverage is extensive, while AT&T’s has large gaps all over the country. In response AT&T sued Verizon in federal court, claiming that the ads were misleading. In their suit, AT&T never claimed that the ads were inaccurate, but only that the maps used in the ads could lead consumers to think that AT&T provided no coverage whatsoever in a broad area of the country. The suit was ultimately dismissed. In addition to legal action, AT&T is attacking Verizon with its own ads, featuring the actor Luke Wilson, which highlight the AT&T exclusive iPhone. How will this interorganizational conflict affect both Verizon and AT&T? What are the potential public relations ramifications for both organizations? Should AT&T be taking an alternative course of action? SOURCE: http://blogs.wsj.com/digits/2009/11/03/att-to-verizon-theres-a-lawsuit-for-that/ http://www.ajc.com/business/at-t-claims-verizon-192359.html http://www.pcmag.com/article2/0,2817,2356122,00.asp © 2013 Cengage Learning

4 Learning Outcome Describe the factors that influence conflict between individuals in organizations. © 2013 Cengage Learning

Forms of Conflict in Organizations Interpersonal Conflict – conflict that occurs between two or more individuals Intrapersonal Conflict – conflict that occurs within an individual © 2013 Cengage Learning 8

Types of Intrapersonal Conflict Interrole Conflict – a person’s experience of conflict among the multiple roles in his or her life Intrarole Conflict – conflict that occurs within a single role, such as when a person receives conflicting messages from role senders about how to perform a certain role Person–role Conflict – conflict that occurs when an individual in a particular role is expected to perform behaviors that clash with his or her personal values © 2013 Cengage Learning 8

An Organizational Member’s Role Set © 2013 Cengage Learning 9

[Resolving Intrapersonal Conflict] When seeking a job, find out as much as possible about the values of the organization. Role analysis – ask the various role senders what they expect. Political skills – effective politicians can negotiate role expectations when conflicts occur. © 2013 Cengage Learning

Managing Interpersonal Conflict Understand power networks Recognize defense mechanisms Develop strategies to deal with difficult people © 2013 Cengage Learning

Power Relationships in Organizations © 2013 Cengage Learning 10

Aggressive Defense Mechanisms Fixation – an aggressive mechanism in which an individual keeps up a dysfunctional behavior that obviously will not solve the conflict Displacement – an aggressive mechanism in which an individual directs his or her anger toward someone who is not the source of the conflict Negativism – an aggressive mechanism in which a person responds with pessimism to any attempt at solving a problem © 2013 Cengage Learning 12

Compromise Defense Mechanisms Compensation – an individual attempts to make up for a negative situation by devoting himself or herself to another pursuit with increased vigor Identification – an individual patterns his or her behavior after another’s Rationalization – a compromise mechanism characterized by trying to justify one’s behavior by constructing bogus reasons for it © 2013 Cengage Learning © 2013 Cengage Learning 12

Withdrawal Defense Mechanisms Flight/Withdrawal – entails physically escaping (flight) or psychologically escaping (withdrawal) a conflict Conversion – emotional conflicts are expressed in physical symptoms Fantasy – provides an escape from a conflict through daydreaming © 2013 Cengage Learning 13

5 Learning Outcome Describe effective and ineffective techniques for managing conflict. © 2013 Cengage Learning

Win–Lose vs. Win–Win Strategies © 2013 Cengage Learning 18

Ineffective Techniques for Dealing with Conflict Nonaction Character Assassination Due Process Nonaction Administrative Orbiting Secrecy Conflict © 2013 Cengage Learning 20

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? After telling judge what to kiss, kiss freedom goodbye Court upholds contempt ruling over defendant's nasty note; woman sentenced to 90 more days Associated Press ORANGEBURG, S.C. — Note to defendants: Don't tell the judge to kiss the body part you sit on. The South Carolina Court of Appeals has upheld a judge's contempt order against a St. Matthews woman who signed a court document with just such an instruction and told a probation officer to return the document to the judge. Circuit Judge Diane Goodstein found Judith Law in contempt and ordered her to serve 90 extra days. Law challenged the ruling, saying the contemptuous behavior happened outside the judge's view. "No matter where Law signed the revocation order, her conduct was in the presence of the judge," the appeals court wrote in its decision last month. In 2003, Law pleaded guilty to grand larceny and burglary charges and was sentenced to five years, suspended to time served. She also was sentenced to three years' probation and ordered to pay $300 in restitution. In September 2005, Law admitted violating her probation, which resulted in Goodstein reinstating the five-year sentence, according to the appeals court. While signing that probation revocation order, Law decided to tell the judge what she could kiss. Typically that document would not go back to the judge, but when this one did, Goodstein ordered a hearing, found Law in contempt and sentenced her to 90 days on top of her remaining sentence. © 2013 Cengage Learning

Effective Techniques for Dealing with Conflict Superordinate Goals Confronting and Negotiating Changing Structure Personnel Expanding Resources Conflict © 2013 Cengage Learning 20

Negotiation Negotiation - a joint process of finding a mutually acceptable solution to a complex conflict © 2013 Cengage Learning

Approaches to Negotiation Distributive Bargaining – the goals of the parties are in conflict, and each party seeks to maximize its resources © 2013 Cengage Learning

Approaches to Negotiation Integrative Negotiation – the parties’ goals are not seen as mutually exclusive, but the focus is on both sides achieving their objectives © 2013 Cengage Learning

6 Learning Outcome Identify five styles of conflict management. © 2013 Cengage Learning

Conflict Management Styles Avoiding – deliberate decision to take no action on a conflict or to stay out of a conflict Accommodating – concern that the other party’s goals be met but relatively unconcerned with getting own way Competing – satisfying own interests; willing to do so at other party’s expense © 2013 Cengage Learning © 2013 Cengage Learning 21

Conflict Management Styles Compromising – each party gives up something to reach a solution Collaborating – arriving at a solution agreeable to all through open and thorough discussion © 2013 Cengage Learning 21

Conflict Management Styles © 2013 Cengage Learning 22

Using the Five Styles © 2013 Cengage Learning 22

Using the Five Styles © 2013 Cengage Learning 22

Welcome Home Roscoe Jenkins 1. 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. 2. Does this film sequence show functional or dysfunctional conflict? Give some examples from the sequence. 3. Which conflict management style best fits the behavior shown in this film sequence? Give some examples from the sequence. Welcome Home Roscoe Jenkins Hollywood talk-show host Roscoe Jenkins (Martin Lawrence) returns to his Georgia home for his parents’ fiftieth wedding anniversary. Cultures clash between the big-city Roscoe and other family members. The culture clash becomes even more severe because of the presence of his upper-class fiancée, Bianca Kittles (Joy Bryant), who does not understand this family and feels superior to them. This sequence starts with Roscoe and his brother, Sheriff Otis Jenkins (Michael Clarke Duncan), carrying a tub of fish and ice from Monty’s butcher shop to Sheriff Jenkins’s pickup truck. It follows the baseball game during which Roscoe hit a ball that struck Mama Jenkins (Margaret Avery) in the head. This sequence ends after Sheriff Jenkins knocks out his brother. © 2013 Cengage Learning

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? Barcelona Restaurant Group At Barcelona, life is all about authentic cuisine, exceptional service, and a good time. But delivering this eclectic dining experience involves a serious, sometimes confrontational, approach to restaurant management. The company recruits only self-confident individuals who take complete ownership over the establishment. When Andy Pforzheimer coaches new recruits he is adamant that his staff be willing to take responsibility for their work and success. The enormous trust Barcelona places in employees is evident during weekly staff meetings. Pforzheimer routinely mixes it up with managers and chefs, and the dialogue gets feisty at times. Ask your students: 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? © 2013 Cengage Learning 41