1. Managing Conflict and Negotiating
Chapter Eleven

2. After reading the material in this chapter, you should be able to:
LO11.1 Define the term conflict, distinguish between functional and dysfunctional conflict, and identify three desired outcomes of conflict. LO11.2 Define personality conflicts, and explain how they should be managed. LO11.3 Discuss the role of in-group thinking in intergroup conflict, and explain what can be done to avoid cross-cultural conflict. LO11.4 Define work-family conflict and describe what can be done to manage it.
LO11.1 Define the term conflict, distinguish between functional and dysfunctional conflict, and identify three desired outcomes of conflict.
LO11.2 Define personality conflicts, and explain how they should be managed.
LO11.3 Discuss the role of in-group thinking in intergroup conflict, and explain what can be done to avoid cross-cultural conflict.
LO11.4 Define work-family conflict and describe what can be done to manage it.

3. After reading the material in this chapter, you should be able to:
LO11.5 Explain how managers can program functional conflict, and identify the five conflict handling styles.
LO11.6 Identify and describe at least four alternative dispute resolution (ADR) techniques.
LO11.7 Draw a distinction between distributive and integrative negotiation, and explain the concept of added-value negotiation.
LO11.5 Explain how managers can program functional conflict, and identify the five conflict handling styles.
LO11.6 Identify and describe at least four alternative dispute resolution (ADR) techniques.
LO11.7 Draw a distinction between distributive and integrative negotiation, and explain the concept of added-value negotiation.

4. Major Trends that Make Conflict Inevitable
Constant change
Greater employee diversity
More teams (virtual and self-managed)
Less face-to-face communication
Global economy with increased cross-cultural dealings
Constant change
Greater employee diversity
More teams (virtual and self-managed)
Less face-to-face communication
Global economy with increased cross-cultural dealings

5. A Modern View of Conflict
process in which one party perceives its interests are being opposed or negatively affected by another party
Conflict
process in which one party perceives its interests are being opposed or negatively affected by another party

6. Functional versus Dysfunctional Conflict
characterized by consultative interactions, a focus on the issues, mutual respect, and useful give and take.
Also called constructive conflict
Dysfunctional conflict
threatens organization’s interests.
Functional conflict
characterized by consultative interactions, a focus on the issues, mutual respect, and useful give and take.
Also called constructive conflict
Dysfunctional conflict
threatens organization’s interests.

7. Situations That Produce Functional or Dysfunctional Conflict
By knowing the antecedents of
conflict, managers are better able to anticipate conflict and take steps to resolve it if it
becomes dysfunctional. Table 11–1 lists many of the situations that tend to produce
either functional or dysfunctional conflict

8. Question?
As a manager of a forty-five person department, Connie has always heard that there are certain situations that produce more conflict than others. She is interested in learning about these situations so she can carefully read early warnings and take appropriate actions. Which of the following is not an antecedent of conflict?
Inadequate communication
Organizational simplicity
Decision making by consensus
Unmet expectations
The correct answer is “B”
AACSB:  Group-individual dynamics Bloom's Taxonomy:  Application
Difficulty:  Hard Page:  288

9. Why People Avoid Conflict
Harm
Rejection
Loss of relationship
Anger
Being seen as selfish
Saying the wrong thing
Intimacy
Tim Ursiny, in his entertaining and instructive book The Coward’s Guide
to Conflict contends that we avoid conflict because we fear various combinations of
harm, rejection, loss of relationship, anger, being seen as selfish, saying the wrong
thing, failing, hurting someone else, getting what you want, and intimacy

10. Desired Outcomes of Conflict
Agreement
Stronger relationships
Learning
1. Agreement. But at what cost? Equitable and fair agreements are best. An agreement
that leaves one party feeling exploited or defeated will tend to breed
resentment and subsequent conflict.
2. Stronger relationships. Good agreements enable conflicting parties to build
bridges of goodwill and trust for future use. Moreover, conflicting parties who
trust each other are more likely to keep their end of the bargain.
3. Learning. Functional conflict can promote greater self-awareness and creative
problem solving. Like the practice of management itself, successful conflict
handling is learned primarily by doing. Knowledge of the concepts and techniques
in this chapter is a necessary first step, but there is no substitute for
hands-on practice.

11. Major Forms of Conflict
Personality conflict
interpersonal opposition driven by personal dislike or disagreement.
Personality conflict
interpersonal opposition driven by personal dislike or disagreement.

12. Major Forms of Conflict
Workplace incivility
low-intensity deviant behavior intended to harm the target person in ways that violate norms of mutual respect.
rudeness or a lack of regard for another person
Workplace Incivility
low-intensity deviant behavior intended to harm the target person in ways that violate norms of mutual respect.
rudeness or a lack of regard for another person

13. How to Deal With Personality Conflicts
Tips for Employees Having a Personality Conflict
Tips for Third-Party Observers of a Personality Conflict
Tips for Managers Whose Employees Are Having a Personality
Conflict
• All employees need to be familiar with and follow company policies for diversity,
antidiscrimination, and sexual harassment.

14. Question?
Having taken this OB class and learned about how they deal with personality conflict, what tip(s) would you offer to employees having a personality conflict?
In resolving conflict, focus on personalities.
Bring co-workers into the conflict so you have witnesses.
Communicate directly with the other person to resolve the perceived conflict.
Keep the direct supervisor out of the conflict loop, especially if the dysfunctional conflict persists.
The correct answer is “C”
AACSB:  Group-individual dynamics Bloom's Taxonomy:  Application
Difficulty:  Hard Page:  293

15. Intergroup Conflict Intergroup conflict
conflict among work groups, teams, and departments
Too much cohesiveness can breed groupthink because a desire to get along pushes aside critical thinking
Intergroup conflict
conflict among work groups, teams, and departments
Too much cohesiveness can breed groupthink because a desire to get along pushes aside critical thinking

16. Handling Intergroup Conflict
Contact hypothesis
the more the members of different groups interact, the less intergroup conflict they will experience
Managers should identify and root out specific negative linkages between groups
Contact hypothesis
the more the members of different groups interact, the less intergroup conflict they will experience
Managers should identify and root out specific negative linkages between groups

17. Question?
Don is an Executive VP of a regional health-insurance company. He has noticed that the different departments do not work well together and seem more concerned with “protecting their turf” than in working to reach organizational goals. Don thinks that if he can create some group activities, the departments will have less conflict. This is called _________.
Convex theory
Concave hypothesis
Contact hypothesis
Intergroup theory
The correct answer is “C” – contact hypothesis. See previous slide

18. Research Lessons for Handling Intergroup Conflict
The top priority for managers faced with intergroup conflict is to identify and root out specific negative linkages between (or among) groups.
Managers are therefore wise to note negative interactions between members and groups and determine if influential third parties are gossiping negatively about another member or group.
The top priority for managers faced with intergroup conflict is to identify and root out specific negative linkages between (or among) groups.
Managers are therefore wise to note negative interactions between members and groups and determine if influential third parties are gossiping negatively about another member or group.

19. Cross-Cultural Conflict
Because of differing assumptions about how to think and act, the potential for cross-cultural conflict is both immediate and huge.
Success or failure when conducting business across cultures often hinges on avoiding and minimizing actual or perceived conflict
Because of differing assumptions about how to think and act, the potential for cross-cultural conflict is both immediate and huge.
Success or failure when conducting business across cultures often hinges on avoiding and minimizing actual or perceived conflict

20. How to Build Cross-Cultural Relationships
Be a good listener
Be sensitive to the needs of others
Be cooperative, rather than overly competitive
Advocate inclusive (participative) leadership
Compromise rather than dominate
Build rapport through conversations
Be compassionate and understanding
Avoid conflict by emphasizing harmony
Nurture others (develop and mentor)

21. Work–Family Conflict Work–family conflict
occurs when the demands of one’s work role conflicts with those of the family role
Work–family conflict
occurs when the demands of one’s work role conflicts with those of the family role

22. Insights about Work–Family Conflict
Work–family balance begins at home
An employer’s family-supportive philosophy is more important than specific programs
Informal flexibility in work hours and in allowing people to work at home is essential to promoting work–family balance
Supportive bosses and colleagues can help
The importance of work–family balance varies across generations
Work–family balance begins at home
An employer’s family-supportive philosophy is more important than specific programs
Informal flexibility in work hours and in allowing people to work at home is essential to promoting work–family balance
Supportive bosses and colleagues can help
The importance of work–family balance varies across generations

23. Programming Functional Conflict
Programmed Conflict
encourages different opinions without protecting management’s personal feelings.
Programmed Conflict
encourages different opinions without protecting management’s personal feelings.

24. Programming Functional Conflict
Devil’s advocacy
assigning someone the role of critic.
Dialectic method
calls for managers to foster a structured debate of opposing viewpoints prior to making a decision
Devil’s advocacy
assigning someone the role of critic.
Dialectic method
calls for managers to foster a structured debate of opposing viewpoints prior to making a decision

25. Techniques for Stimulating Functional Conflict: Devil’s Advocacy and the Dialectic Method
In the left half of Figure 11–1, note how devil’s advocacy alters the usual decision-making
process in steps 2 and 3. This approach to programmed conflict is intended to
generate critical thinking and reality testing. Steps 3 and 4 in the right half of Figure 11–1 set the dialectic approach apart from the
normal decision-making process.

26. Five Conflict Handling Styles
According to conflict specialist
Afzalur Rahim’s model, five different conflict-handling styles can be plotted on a
2 X 2 grid. High to low concern for self is found on the horizontal axis of the grid
while low to high concern for others forms the vertical axis (see Figure 11–2). Various
combinations of these variables produce the five different conflict-handling styles:
integrating, obliging, dominating, avoiding, and compromising

27. Alternative Styles for Handling Dysfunctional Conflict
Integrating
interested parties confront the issue and cooperatively identify the problem, generate and weigh alternative solutions, and select a solution
Appropriate for complex issues plagued by misunderstanding
Integrating
interested parties confront the issue and cooperatively identify the problem, generate and weigh alternative solutions, and select a solution
Appropriate for complex issues plagued by misunderstanding

28. Question?
In handling conflict, Jorge believes that interested parties must confront the issue and cooperatively identify the problem, generate and weigh alternative solutions, and select a solution. Jorge can be described as advocating which conflict handling style?
Obliging
Integrating
Dominating
Avoiding
The correct answer is “B”
AACSB:  Group-individual dynamics Bloom's Taxonomy:  Application
Difficulty:  Medium Page:  299

29. Alternative Styles for Handling Dysfunctional Conflict
Obliging (Smoothing)
tends to minimize differences and highlight similarities to please the other party
Appropriate when it is possible to get something in return
Obliging (Smoothing)
tends to minimize differences and highlight similarities to please the other party
Appropriate when it is possible to get something in return

30. Alternative Styles for Handling Dysfunctional Conflict
Dominating (Forcing)
relies on formal authority to force compliance
Appropriate when an unpopular solution must be implemented
Dominating (Forcing)
relies on formal authority to force compliance
Appropriate when an unpopular solution must be implemented

31. Alternative Styles for Handling Dysfunctional Conflict
Avoiding
involves either passive withdrawal from the problem or active suppression of the issue
Appropriate for trivial issues
Avoiding
involves either passive withdrawal from the problem or active suppression of the issue
Appropriate for trivial issues

32. Alternative Styles for Handling Dysfunctional Conflict
Compromising
give-and-take approach involves moderate concern for both self and others
Appropriate when parties have opposite goals
Compromising
give-and-take approach involves moderate concern for both self and others
Appropriate when parties have opposite goals

33. Third Party Interventions: Alternative Dispute Resolution
avoiding costly lawsuits by resolving conflicts informally or through mediation or arbitration
The intent of alternative
dispute resolution (ADR), according to a pair of Canadian labor lawyers, is that it
“uses faster, more user-friendly methods of dispute resolution, instead of traditional,
adversarial approaches (such as unilateral decision making or litigation).”

34. Alternative Dispute Resolution
Facilitation
Conciliation
Peer review
Ombudsman
Mediation
Arbitration
Facilitation. A third party, usually a manager, informally urges disputing parties to
deal directly with each other in a positive and constructive manner.
• Conciliation. A neutral third party informally acts as a communication conduit
between disputing parties.
Peer review. A panel of trustworthy coworkers, selected for their ability to remain
objective, hears both sides of a dispute in an informal and confidential meeting.
Ombudsman. Someone who works for the organization, and is widely respected and
trusted by his or her coworkers, hears grievances on a confidential basis and attempts
to arrange a solution.
Mediation. “The mediator—a trained, third-party neutral—actively guides the disputing
parties in exploring innovative solutions to the conflict.
Arbitration. Disputing parties agree ahead of time to accept the decision of a neutral
arbitrator in a formal court like setting, often complete with evidence and witnesses.

35. Question?
Fredhandbag Photography has created a panel of trustworthy employees to decide on disputes at the company. This is called _________.
Mediation
Facilitation
Conciliation
Peer review
The correct answer is “D” – peer review. See previous slide and p.301

36. Negotiating Negotiation Two types:
give-and-take decision-making process involving interdependent parties with different preferences
Two types:
Distributive
Integrative
Negotiation
give-and-take decision-making process involving interdependent parties with different preferences
A distributive negotiation usually involves a single issue—a “fixed-pie”—in which
one person gains at the expense of the other
An agreement can be found that is
better for both parties than what they would have reached through distributive negotiation.
This is an integrative negotiation.

37. Added-Value Negotiation
cooperatively developing multiple-deal packages while building a productive long-term relationship
Added-Value Negotiation
cooperatively developing multiple-deal packages while building a productive long-term relationship

38. Steps in Added-Value Negotiation
Clarify interests
Identify options
Design alternative deal packages
Select a deal
Perfect the deal
1. Clarify interests. After each party identifies its tangible and intangible needs,
the two parties meet to discuss their respective needs and find common ground
for negotiation.
2. Identify options. A marketplace of value is created when the negotiating
parties discuss desired elements of value (such as property, money, behavior,
rights, and risk reduction).
3. Design alternative deal packages. While aiming for multiple deals, each
party mixes and matches elements of value from both parties in workable
combinations.
4. Select a deal. Each party analyzes deal packages proposed by the other party.
Jointly, the parties discuss and select from feasible deal packages, with a spirit
of creative agreement.
5. Perfect the deal. Together the parties discuss unresolved issues, develop a
written agreement, and build relationships for future negotiations

39. Negotiating Your Salary
Know the market rate
Consider the economy
Know your own value
Be honest
Don’t go first
Consider benefits, too
Look at the long term
Know the market rate
Consider the economy
Know your own value
Be honest
Don’t go first
Consider benefits, too
Look at the long term

40. Video: Toxic Coworkers
Annoying coworkers can be found in every organization. How can you turn these situations around to have good outcomes result?
Is the conflict being described here functional or dysfunctional? Why?
Do you think there are there more annoying people today than in the past, or are we just more sensitive to our working environment?
What different types of conflict did you pick up on being described in the video?
Effectively dealing with the behaviors being described can help the “offender” recognize what they are doing and perhaps rectify their behavior. Strategies for dealing with the different types will vary as was described in the video.
The conflict being described here is primarily dysfunctional in nature. Allowing the situation to continue and become more bothersome makes the conflict more and more dysfunctional.
There probably aren’t any more annoying people today than any other time, but workers today are more willing to speak up if their working conditions are less than good. This would include annoying coworkers.
The video primarily included descriptions of personality conflicts. However, they did mention the coworker who speaks a different language and then speaks loudly on the phone - this would be a form of cultural conflict.