1. Conflict and Negotiation in Organizations
Chapter 15
Conflict and Negotiation in Organizations

2. Chapter Learning Objectives
After studying this chapter you should be able to:
Define and discuss the nature of conflict in organizations.
Identify and describe the common forms and causes of conflict
Discuss the most frequent reactions to conflict in organizations.
Describe how conflict can be managed.
Define negotiation in organizations and discuss its underlying processes
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3. The Nature of Conflict in Organizations
A process resulting in the perceptions of two parties that they are working in opposition to each other in ways that result in feelings of discomfort and/or animosity
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4. Figure 15.1 The Nature of Organizational Conflict
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5. Common Forms of Conflict
Task Conflict
Relationship Conflict
Legal Conflict
Interpersonal Conflict
Process Conflict
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6. Common Causes of Conflict
Interpersonal Conflict
Intergroup Conflict
Conflict between Organization and Environment
Task Interdependence
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7. Task Interdependence Types of Task Interdependence
Pooled Interdependence
Sequential Interdependence
Reciprocal Interdependence
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8. Common Reactions to Conflict
Avoidance
Competition
Collaboration
Compromise
Accommodation
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9. Figure 15.2 Five Types of Reactions to Conflict
Reference: Adapted from Kenneth Thomas, “Conflict and Conflict Management,” in Marvin Dunnette (ed.), Handbook of Industrial and Organizational Psychology (Chicago: Rand McNally, 1976), pp. 889–935. Reprinted by permission.
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10. Reactions to Conflict Reactions to conflict can be differentiated by:
Importance of each party’s goals to that party
Compatibility of each party’s goals to the goals of the other party
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11. Managing Conflict Managers must know:
When to stimulate and when to resolve conflict in order to avoid potentially disruptive effects
That both too little and too much conflict can be dysfunctional
Digital Vision at Getty Images®
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12. Managing Conflict (cont’d)
Stimulating Conflict
The creation and constructive use of conflict by a manager
Conflict Resolution
A managed effort to reduce or eliminate harmful conflict
Superordinate Goal
The goal of the overall organization which is more important to the well-being of the organization and its members than the more specific goals of the conflicting parties
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13. Figure 15.3 Conflict Management Alternatives
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14. Managing Conflict (cont’d)
The Managerial Hierarchy
Task Forces
Rules and Procedures
Liaison Roles
Using Structure to Manage Conflict
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15. Managing Conflict (cont’d)
Interpersonal Techniques to Manage Conflict
Team Building
Survey Feedback
Third-Party Peacemaking
Negotiated Conflict Management
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16. Negotiation in Organizations
The process in which two or more parties (people or groups) reach agreement on an issue even though they have different preferences regarding that issue
Approaches to Negotiations
Individual Differences
Situational Characteristics
Game Theory
Cognitive Approaches
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17. Negotiation in Organizations (cont’d)
Approaches to Negotiations
Situational Characteristics
The context within which negotiation takes place
Types of communication between negotiators
Potential outcomes of the negotiation
Relative power of the parties
Time frame available for negotiation
Number of people representing each side
Presence of other parties
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18. Negotiation in Organizations (cont’d)
Approaches to Negotiation (cont’d)
Game Theory
Uses mathematical models to predict the outcome of negotiation situations
Assumes that negotiators are always rational
Cognitive Approaches
Recognize that negotiators often depart from perfect rationality during negotiation
Try to predict how and when negotiators will make these departures
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19. Negotiation in Organizations (cont’d)
Win-Win Negotiation
The PRAM Model
Proper planning
Building relationships
Getting agreements
Maintaining relationships
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20. Figure 15.4 The PRAM Model of Negotiation
Reference: Reprinted from Brian G. Long, Ph.D., and Ross R. Reck, Ph.D., The Win-Win Negotiator: How to Negotiate Favorable Agreements That Last. Copyright © 1985, 1987 by Brian G. Long and Ross R. Reck. Reprinted with permission of Ross R. Reck, Ph.D.
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21. Organizational Behavior in Action
After reading the chapter:
In the chapter opening case, how did changes in technology create conflict between the Writer Guild of America and the studios?
How does organizational culture affect how conflict is resolved in an organization?
Which technique to manage conflict could be used to explain President Reagan’s phrase “trust but verify”?
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