2. © 2009 Jones and Bartlett Publishers Chapter 13 Conflict Management, Decision- Making and Negotiation Skills

3. © 2009 Jones and Bartlett Publishers Learning Outcomes After completing this chapter, the student should understand: 1.The definition of conflict. 2.The four basic types of conflict. 3.The five levels of conflict. 4.The five conflict-handling modes.

4. © 2009 Jones and Bartlett Publishers Learning Outcomes (cont.) 5. The difference between the rational and the bounded rationality approach to decision making. 6. The limitations of using intuitive decision making and the heuristics or biases approach. 7. How framing heuristics affects escalation of commitment. 8. The four basic styles of decision making. 9. The three major negotiation models.

5. © 2009 Jones and Bartlett Publishers Conflict Conflict occurs when an individual or group feels negatively affected by another individual or group. Three components: 1.Perceived incompatibility of interests, 2.Some interdependence of the parties, and 3.Some form of interaction.

6. © 2009 Jones and Bartlett Publishers Types of Conflict GoalGoal CognitiveCognitive AffectiveAffective ProceduralProcedural

7. © 2009 Jones and Bartlett Publishers Levels of Conflict IntrapersonalIntrapersonal InterpersonalInterpersonal IntragroupIntragroup IntergroupIntergroup InterorganizationalInterorganizational

8. © 2009 Jones and Bartlett Publishers Intrapersonal Conflict Intrapersonal conflict occurs within an individual and may involve some form of goal, cognitive, or affective conflict. Approach/approachApproach/approach Avoidance/avoidanceAvoidance/avoidance Approach/avoidanceApproach/avoidance Cognitive dissonanceCognitive dissonance person-role conflict intrarole conflict interrole conflict

9. © 2009 Jones and Bartlett Publishers Interpersonal Conflict Interpersonal conflict involves two or more individuals who believe that their attitudes, behaviors, or preferred goals are in opposition. 1.Personal characteristics and issues, 2.Interactional difficulties, and 3.Differences around perspectives and perceptions of the issues.

10. © 2009 Jones and Bartlett Publishers Intragroup Conflict Intragroup conflict involves clashes among some or all of a group’s members, which often affect the group’s processes and effectiveness. 1.Relationship, 2.Task, and 3.Process.

11. © 2009 Jones and Bartlett Publishers Intergroup Conflict Intergroup conflict involves opposition and clashes between groups. 1.Vertical, 2.Horizontal, 3.Line-staff, and 4.Diversity-based.

12. © 2009 Jones and Bartlett Publishers Interorganizational Conflict Interorganizational conflict occurs between organizations due to interdependence on membership and divisional or system-wide success.

13. © 2009 Jones and Bartlett Publishers Conflict-Handling Modes

14. © 2009 Jones and Bartlett Publishers Decision-Making Models Rational Approach – a systemic analysis of the problem followed by the choice and implementation of a solution in a logical, step- by-step sequence (Daft, 2004).Rational Approach – a systemic analysis of the problem followed by the choice and implementation of a solution in a logical, step- by-step sequence (Daft, 2004). Bounded Rationality Approach – Due to cognitive limitations, an individual will limit his or her search for information prior to decision- making.Bounded Rationality Approach – Due to cognitive limitations, an individual will limit his or her search for information prior to decision- making.

15. © 2009 Jones and Bartlett Publishers Decision-Making Models (cont.) Intuition – decision-making using one’s professional judgment based on past experiences rather than sequential logic or explicit reasoning (Daft, 2004).Intuition – decision-making using one’s professional judgment based on past experiences rather than sequential logic or explicit reasoning (Daft, 2004). Heuristics or Biases Approach – Individuals use judgmental heuristics or “rules of thumb” to simplify their decision-making. Commonly used: availability bias, representativeness bias and anchoring/adjustment bias.Heuristics or Biases Approach – Individuals use judgmental heuristics or “rules of thumb” to simplify their decision-making. Commonly used: availability bias, representativeness bias and anchoring/adjustment bias.

16. © 2009 Jones and Bartlett Publishers Escalation of Commitment When an individual continues to allocate more resources to a losing proposition due (1) inability to admit to a mistake, or (2) framing heuristic.

17. © 2009 Jones and Bartlett Publishers Avoid Escalation of Commitment 1.Recognize that they may be biased toward escalation, 2.See escalation for what it is (i.e., an overcommitment to a strategy by defining failure ambiguously, or by ignoring others’ concerns), and 3.Avoid overcommitment by looking at the strategy from an outsider’s perspective.

18. © 2009 Jones and Bartlett Publishers Decision Style Model

19. © 2009 Jones and Bartlett Publishers Conflict Negotiation Models Negotiation is the process by which two or more parties decide what each will give and take in an exchange. Three major negotiation models: 1.Distributive (win-loss approach), 2.Integrative (win/win approach), and 3.Interactive (joint problem-solving approach)