© 2011 Cengage Learning. All rights reserved. Chapter 13 Conflict and Negotiation Learning Outcomes 1.Describe the nature of conflicts in organizations. 2.Explain the role structural and personal factors play in causing conflict in organizations. 3.Discuss the nature of group conflict in organizations. 4.Describe the factors that influence conflict between individuals in organizations. 5.Describe effective and ineffective techniques for managing conflict. 6.Identify five styles of conflict management.

© 2011 Cengage Learning. All rights reserved. Learning Outcome Describe the nature of conflicts in organizations. 1

© 2011 Cengage Learning. All rights reserved. Conflict any situation in which incompatible goals, attitudes, emotions, or behaviors lead to disagreement or opposition between two or more parties

© 2011 Cengage Learning. All rights reserved. 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

© 2011 Cengage Learning. All rights reserved. Emotional Intelligence the power to control one’s emotions perceive emotions in others adapt to change manage adversity

Consequences of Conflict © 2011 Cengage Learning. All rights reserved.

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

© 2011 Cengage Learning. All rights reserved. Diagnosing Conflict Examine the issue Examine the context Examine the parties

© 2011 Cengage Learning. All rights reserved. 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? Questions to Use When Diagnosing Conflict

© 2011 Cengage Learning. All rights reserved. Learning Outcome Explain the role structural and personal factors play in causing conflict in organizations. 2

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 © 2011 Cengage Learning. All rights reserved. CONFLICT!

© 2011 Cengage Learning. All rights reserved. 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. Beyond the Book: Looking for Trouble

© 2011 Cengage Learning. All rights reserved. Learning Outcome Discuss the nature of group conflict in organizations. 3

© 2011 Cengage Learning. All rights reserved. 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

© 2011 Cengage Learning. All rights reserved. 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. Beyond the Book: AT&T vs. Verizon

© 2011 Cengage Learning. All rights reserved. Learning Outcome Describe the factors that influence conflict between individuals in organizations. 4

© 2011 Cengage Learning. All rights reserved. Forms of Conflict in Organizations Intrapersonal Conflict – conflict that occurs within an individual Interpersonal Conflict – conflict that occurs between two or more individuals

© 2011 Cengage Learning. All rights reserved. Types of Intrapersonal Conflict Interrole Conflict – a person’s experience of conflict among the multiple roles in his/her life Intrarole Conflict – conflict that occurs within a single role, 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 is expected to perform behaviors in a certain role that conflict with his/her personal values

An Organizational Member’s Role Set © 2011 Cengage Learning. All rights reserved.

[Resolving Intrapersonal Conflict] 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.

© 2011 Cengage Learning. All rights reserved. Managing Interpersonal Conflict Understand power networks Recognize defense mechanisms Develop strategies to deal with difficult people

Power Relationships in Organizations © 2011 Cengage Learning. All rights reserved.

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

© 2011 Cengage Learning. All rights reserved. Compromise Defense Mechanisms Compensation – an individual attempts to make up for a negative situation by devoting himself/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

© 2011 Cengage Learning. All rights reserved. Withdrawal Defense Mechanisms Flight/Withdrawal – entails physically escaping a conflict (flight) or psychologically escaping (withdrawal) Conversion – emotional conflicts are expressed in physical symptoms Fantasy – provides an escape from a conflict through daydreaming

© 2011 Cengage Learning. All rights reserved. Learning Outcome Describe effective and ineffective techniques for managing conflict. 5

© 2011 Cengage Learning. All rights reserved. Win–Lose vs. Win–Win Strategies

© 2011 Cengage Learning. All rights reserved. Ineffective Techniques for Dealing with Conflict Nonaction Character Assassination Due Process Nonaction Administrative Orbiting Secrecy Conflict

© 2011 Cengage Learning. All rights reserved. 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? Beyond the Book: What Would You Do?

© 2011 Cengage Learning. All rights reserved. Effective Techniques for Dealing with Conflict Superordinate Goals Confronting and Negotiating Changing Structure Changing Personnel Expanding Resources

© 2011 Cengage Learning. All rights reserved. Negotiation a joint process of finding a mutually acceptable solution to a complex conflict

© 2011 Cengage Learning. All rights reserved. Negotiation A joint process of finding a mutually acceptable solution to a complex conflict

© 2011 Cengage Learning. All rights reserved. Approaches to Negotiation Distributive Bargaining – the goals of the parties are in conflict, and each party seeks to maximize its resources

© 2011 Cengage Learning. All rights reserved. Approaches to Negotiation Integrative Negotiation – focuses on the merits of the issues and seeks a win–win solution

© 2011 Cengage Learning. All rights reserved. Learning Outcome Identify five styles of conflict management. 6

© 2011 Cengage Learning. All rights reserved. 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

© 2011 Cengage Learning. All rights reserved. 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

Conflict Management Styles © 2011 Cengage Learning. All rights reserved.

Using the Five Styles © 2011 Cengage Learning. All rights reserved.

Using the Five Styles © 2011 Cengage Learning. All rights reserved.

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.