1. Managing Conflict and Negotiating
Chapter 13 marks the end of Part Three where we have learned about group and social processes. We end with a discussion of two skills necessary to work effectively in today’s workplace: managing conflict and negotiating.
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.

2. Ch. 13 Learning Objectives
Define the term conflict, and put the three metaphors of conflict into proper perspective for the workplace.
Distinguish between functional and dysfunctional conflict, and discuss why people avoid conflict
List six antecedents of conflict, and identify the desired outcomes of conflict.
Define personality conflicts, and explain how managers should handle them.
Discuss the role of in-group thinking in intergroup conflict, and explain what management can do about intergroup conflict
This chapter begins by defining conflict and suggesting how it can be best perceived in the workplace. Next, you’ll learn about the causes of conflict and personality, intergroup, and cross-cultural conflict. Along the way, you’ll learn techniques for handling each type of conflict.
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3. Ch. 13 Learning Objectives
Discuss what can be done about cross-cultural conflict.
Explain how managers can stimulate functional conflict, and identify the five conflict-handling styles.
Explain the nature and practical significance of conflict triangles and alternative dispute resolution for third-party conflict intervention.
Explain the difference between distributive and integrative negotiation, and discuss the concept of added-value negotiation.
The rest of the chapter focuses on how to manage conflict effectively, ending with a discussion of how negotiation can be used to resolve conflicts.
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4. Conflict
Conflict One party perceives its interests are being opposed or set back by another party
Is conflict always bad?
During a conflict, if someone used the term “war” vs. “opportunity”, how would it make you feel?
Conflict is a natural occurrence in an organization whenever an action by one party is perceived as preventing or interfering with the goals, needs, or actions of another party. Conflict can be positive when it focuses on solving problems constructively and results in increasing organizational productivity.
During a conflict, if someone used the term “war,” saying, for example, “We shot down that idea,” vs. “opportunity”, saying, “What are all the possibilities for solving this problem?” how would it make you feel?
Typically, people become defensive and combative when a metaphor of war is used, but become open-minded and cooperative when a metaphor of opportunity is used. Therefore, we need to carefully monitor our choice of words in conflict situations.
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5. The Relationship between Conflict Intensity and Outcomes
Positive
Outcomes
Neutral
Too little conflict
Appropriate conflict
Too much conflict
Negative
Experts once believed that all conflict threatened managerial authority and thus had to be squelched. Then the human relationists came along and recognized the inevitability of conflict and advised managers to learn to live with it.
Currently, experts believe that conflict can have both positive and negative outcomes and that organizations can suffer from having too little or too much conflict. You will note from this graph that some level of conflict is good for organizations, but too little or too much detracts from achieving organizational objectives.
If there is too little conflict, companies become apathetic, continue doing what they’re doing, and resist change. Too much conflict can cause dissatisfaction, hostility, and a lack of teamwork.
Low
Moderate Intensity
High
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6. Functional vs. Dysfunctional Conflict
Functional Conflict serves organization’s interests
Typically issue-focused
Stimulates creativity
Dysfunctional Conflict threatens organization’s interests
Typically person-focused
Breeds hostility
Stifles communication
Whether conflict is functional or dysfunctional is usually determined by the outcome of the conflict.
Functional conflict stimulates creative resolution of problems, prevents complacency, and results in positive outcomes that can enhance performance. For example, if the quality of one part of a production operation is declining, it can cause conflict between that department and the next stage of the production process. If they work together to correct the problem, the overall quality of the final product will improve. If they don’t, they will both suffer.
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7. Causes of Conflicts Incompatible personalities or value systems
Role ambiguity/ overload
Interdependent tasks
Competition for limited resources
The book lists more than a dozen antecedents of conflict. Let’s go over a few key ones here:
Incompatible personalities or value systems can also be thought of as personal differences. Examples include interpersonal value conflicts, personality differences, different decision-making styles, and different expectations, all of which can serve to create a situation in which someone perceives their interests are at risk. These kinds of differences are the hardest to resolve because they are personal and may affect one’s values.
Role ambiguity/overload occurs when role expectations exceed a party’s ability to respond effectively; for example, too much to do can cause something not to get done which results in conflict with those dependent on the output.
Interdependent tasks can be an antecedent to conflict when one department’s quality directly impacts another department or when one person’s productivity is the dependent on another person’s input.
Finally, competition for limited resources, such as money, personnel, and equipment can lead to conflicts among individuals and groups within organizations.
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8. Desired Conflict Outcomes
Agreement: strive for equitable and fair agreements that last
Stronger Relationships: build bridges of goodwill and trust for the future
Learning: greater self-awareness and creative problem solving
Listed here are three desired outcomes of conflict.
Agreement is desired because unresolved conflicts typically come back as problems in the future. Therefore, it is best to handle conflicts positively so that a mutually acceptable agreement can be made.
Stronger Relationships are desired because conflict that is resolved positively is more likely to lead to future interaction and information sharing between parties.
Learning results from positively resolved conflict that helps shape our behavior and helps us grow as individuals.
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9. How to Deal with Personality Conflicts
Dirk and Linda are working closely together on a project. However, they have very different personalities and working styles. For example, Dirk prefers to create plans and checklists and Linda has a more free-flowing approach to work.
Linda is now so frustrated she is concerned the project will not get completed.
What type of conflict is this?
What should she do?
Dirk and Linda are working closely together on a project. However, they have very different personalities and working styles. For example, Dirk prefers to create plans and checklists and Linda has a more free-flowing approach to work.
Linda is now so frustrated she is concerned the project will not get completed.
What type of conflict is this? – Personality conflict between two employees
What should she do?
Communicate directly with the other person to resolve the perceived conflict
Avoid dragging co-workers into the conflict
If dysfunctional conflict persists, seek help from direct supervisors or human resource specialists
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10. Tips for Employees Having a Personality Conflict
All employees need to be familiar with and follow company policies for diversity, anti-discrimination, and sexual harassment
Communicate directly with the other person to resolve the perceived conflict
Avoid dragging co-workers into the conflict
If dysfunctional conflict persists, seek help from direct supervisors or human resource specialists
Three types of conflict are personality conflict, intergroup conflict, and cross-cultural conflict. This and the next two slides deal with the first type of conflict.
This slide presents guidelines that can help employees deal with a personality conflict in which they are directly involved.
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11. How to Deal with Personality Conflicts
Chris works with Dirk on another project. Dirk approaches Chris and begins to complain about Linda.
What type of conflict is this?
As a third-party, what should he do?
Chris works with Dirk on another project. Dirk approaches Chris and begins to complain about Linda.
As a third-party, what should he do?
All employees need to be familiar with and follow company policies for diversity, anti-discrimination, and sexual harassment
Do not take sides in someone else’s personality conflict
Suggest the parties work things out themselves in a constructive and positive way
If dysfunctional conflict persists, refer the problem to parties’ direct supervisors
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12. Tips for Third-Party Observers of a Personality Conflict
All employees need to be familiar with and follow company policies for diversity, anti-discrimination, and sexual harassment
Do not take sides in someone else’s personality conflict
Suggest the parties work things out themselves in a constructive and positive way
If dysfunctional conflict persists, refer the problem to parties’ direct supervisors
Employees who are third-party observers of a personality conflict can use these tips to handle the situation most effectively.
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13. How to Deal with Personality Conflicts
Sarah, Dirk and Linda’s boss, has just been informed that the completion of the project is in jeopardy due to conflict between Dirk and Linda. Linda is now so frustrated she is concerned the project will not get completed.
As their manager, what should she do?
Sarah, Dirk and Linda’s boss, has just been informed that the completion of the project is in jeopardy due to conflict between Dirk and Linda. Linda is now so frustrated she is concerned the project will not get completed.
As their manager, what should she do?
All employees need to be familiar with and follow company policies for diversity, anti-discrimination, and sexual harassment
Investigate and document conflict
If appropriate, take corrective action
If necessary, attempt informal dispute resolution
Refer difficult conflict to human resource specialists or hired counselors for formal resolution attempts and other interventions
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14. Tips for Managers Whose Employees are Having a Personality Conflict
All employees need to be familiar with and follow company policies for diversity, anti-discrimination, and sexual harassment
Investigate and document conflict
If appropriate, take corrective action
If necessary, attempt informal dispute resolution
Refer difficult conflict to human resource specialists or hired counselors for formal resolution attempts and other interventions
Managers whose employees are having a personality conflict should find these tips helpful.
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15. Minimizing Intergroup Conflict
Level of perceived
intergroup conflict tends to increase when:
Recommended actions:
Work to eliminate specific negative interactions between groups
Conduct team building to reduce intragroup conflict and prepare employees for cross-functional teamwork
Encourage personal friendships and good working relationships across groups and departments
Foster positive attitudes toward members of other groups
Avoid or neutralize negative gossip across groups or departments
Conflict within the group is high
There are negative interactions between groups
Influential third-party gossip about other group is negative
Moving on to intergroup conflict, we know that research has shown that simply having conflicting groups interact more is not sufficient to overcome negative links between groups. Therefore, this figure has recommended actions when intergroup conflict exists.
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16. Ways to Build Cross-Cultural Relationships
Rank
Behavior 1
Be a good listener 2
Be sensitive to the needs of others
Tie 2
Be cooperative rather than overly competitive 3
Advocate inclusive (participative) leadership 4
Compromise rather than dominate 5
Build rapport through conversations 6
Be compassionate and understanding
Now let’s discuss the third type of conflict, cross-cultural. Interacting with individuals from different cultures can create conflicts or hurt feelings unknowingly. Research by Tung identified nine specific ways to facilitate interaction with host-country nationals ranked from most to least useful.
U.S. managers tend to be the opposite of what you see listed on this slide. They are culturally characterized as poor listeners, blunt to the point of insensitivity, and excessively competitive. 7
Avoid conflict by emphasizing harmony 8
Nurture others (develop and mentor)
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17. Test Your Knowledge
The manufacturing and research departments of XYZ corporation often have different perspectives resulting in conflict. Within group cohesiveness is strong but animosity across the groups is growing. To promote harmony and functional conflict between the groups the company should NOT:
Keep the groups apart to minimize interaction and conflict.
Establish cross-functional project teams so members of both groups work together.
Stop people who gossip about the other group.
Have the groups attend a social function together.
The manufacturing and research departments of XYZ corporation often have different perspectives resulting in conflict. Within group cohesiveness is strong but animosity across the groups is growing. To promote harmony and functional conflict between the groups the company should NOT:
Keep the groups apart to minimize interaction and conflict.
Establish cross-functional project teams so members of both groups work together.
Stop people who gossip about the other group. (eliminates the negative links between groups)
Have the groups attend a social function together. (this will enhance friendships across groups)
Answer: A, keeping the groups apart may foster in-group, out-group thinking and misperceptions about the other group.
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18. Stimulating Functional Conflict
Devil’s Advocacy Approach
Action proposed
Devil’s advocate criticizes it
Both sides presented to decision makers
Decision is made and monitored
Dialectic Decision Method
Assumptions identified
Counterproposal generated on different assumptions
Debate takes place
To attain the desired outcomes of agreement, stronger relationships, and learning, a couple of approaches have been implemented in organizations that are concerned about too little conflict and discussion regarding important ideas.
One approach is to ensure that there is a devil’s advocate who will challenge the group or decision makers on an existing or new proposed course of action.
The dialectic approach focuses on challenging assumptions and developing complete alternative solutions and debating them based on their merits. In both situations, the decisions must be monitored and corrective action taken if necessary.
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19. Five Conflict-Handling Styles
Integrating
Obliging
Let’s discuss different ways of handling conflict. Researchers have categorized conflict styles based on two dimensions: concern for others and concern for self. Put another way, we can discuss each of these styles in terms of who loses and who wins.
The dominating style can be described as the “I win, you lose” perspective. Those with this style are characterized as being assertive and uncooperative and striving to have their own needs met at the other’s expense. This style is good if the aggressor is right and has a better solution than a group would come up with. It’s bad when it results in poorer human relations and causes resentment among others.
The obliging/accommodating style is the “I lose, you win” perspective. This style is characterized as being unassertive and cooperative, neglecting self to satisfy others; believing that being accepted by others is more important than achieving personal goals; not wanting to cause trouble, and being self-sacrificing and generous. This style is good when relationships are maintained, but it may be counterproductive if the accommodator has a better idea or solution. This style works best when the relationship is the most important consideration, the issue is important to the other party but not to you, and time is limited. If this approach is used repeatedly, it may breed contempt on the part of the accommodators and they may get taken advantage of.
The avoiding style is the “I lose and you lose” perspective. This style is characterized by being uncooperative and unassertive, not being concerned with self or others, not addressing the conflict, withdrawing, side stepping, and postponing. This style is good when it maintains a relationship that would be hurt if the issue were resolved. However, the issue doesn’t get resolved; and if this is used too often, the problem will get worse because the problem is unlikely to go away on its own.
The integrating/collaborating style is the “you win, I win” perspective. This style is characterized by being assertive and cooperative, satisfying both parties’ concerns, finding underlying issues, reaching creative solutions, and colluding. This problem-solving style tries to find the solution that will meet everyone’s needs. Those with this style are willing to change to meet a mutually beneficial solution that is based on open and honest communication. This style is good because it seeks optimal solutions; however, it can take time, patience, and lots of discussion to get to it. This is the best approach when maintaining relationships is important, time is available, group goals are valued more than personal goals, and when an important issue is involved where finding the best solution is critical.
The compromising style is the “I win some, you win some” perspective. This style is characterized by using intermediate assertiveness and cooperativeness and achieving a mutually acceptable solution that partially satisfies both by splitting the difference and exchanging concessions. This style is useful because it can usually be accomplished quickly while maintaining relationships. The down side is that the results may be sub-optimal and can lead to playing games such as asking for twice as much initially so that the compromise will be closer to what they wanted to begin with.
Research has shown that managers that exhibit flexibility by using a variety of strategies are more successful at managing conflict than those who rely mainly on their preferred style.
High
Compromising
Concern for Others
Dominating
Avoiding
Low
High
Low
Concern for Self
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20. Test Your Knowledge
Alfonso tends to be an agreeable person with a high need for affiliation. When he encounters conflict situations at work which conflict management style is he most and least likely to use, respectively.
Dominating; Integrating
Integrating; Compromising
Compromising; Avoiding
Obliging; Dominating
Avoiding; Obliging
Alfonso tends to be an agreeable person with a high need for affiliation. When he encounters conflict situations at work he is most likely to use which conflict management style:
Dominating; Integrating
Integrating; Compromising
Compromising; Avoiding
Obliging; Dominating
Avoiding; Obliging
Answer: D, Research shows that one’s personality influences the conflict management style they will adapt. People with high need for affiliation tend to use an obliging style most and a dominating style least.
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21. Third-Party Intervention Options for Handling Conflict
These options are considered less political; low risk of dysfunctional conflict
Reroute complaints by coaching the sender to find ways to constructively bring up the matter with the receiver. Do not carry messages for the sender
Facilitate a meeting with the sender and receiver to coach them to speak directly and constructively with each other
Transmit verbatim messages with the sender’s name included and coach the receiver on constructive ways to discuss the message with the sender
Listed here are three third-party interventions that are considered less political and have a lower risk of dysfunctional conflict than the five interventions listed on the next slide that are more political and have a higher risk of dysfunctional conflict.
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22. Third-Party Intervention Options for Handling Conflict
These options are considered more political; high risk of dysfunctional conflict
Carry the message verbatim but protect the sender’s name
Soften the message to protect the sender
Add your spin to the message to protect the sender
Do nothing. The participants will triangle in someone else
Do nothing and spread the gossip. You will triangle in others
[No narration required.]
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23. Alternative Dispute Resolution (ADR)Techniques
Alternative Dispute Resolution (ADR) avoiding costly lawsuits by resolving conflicts informally or through mediation or arbitration
Mediation
Neutral third party guides parties to make a mutually acceptable solution
Arbitration
Parties agree to accept the decision of the neutral arbitrator
Many companies are putting ADR policies into place to encourage a resolution to a conflict that is fair to all but does not result in a costly lawsuit for both parties. Your book mentions several types of ADR techniques, including facilitation, conciliation, peer review, and ombudsman. Two common ones are described here—mediation and arbitration.
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24. Negotiation
Negotiation give-and-take process between conflicting interdependent parties
Distributive negotiation: Single issue; fixed-pie; win-lose.
Integrative negotiation: More than one issue; “broadening the pie”; win-win.
Let’s conclude the chapter by discussing negotiation. Two types are distributive and integrative negotiation.
Distributive negotiation occurs when the parties are take a win-lose perspective based on the premise that whatever you gain, I lose, and vice versa. This occurs when there is only one issue at stake. For example, you use this approach when bargaining with a vendor on the street.
In most situations, however, there is typically more than one issue and there are many ways to add value to the parties by “broadening the pie.”
This is called integrative negotiation and is characterized by people not taking stands or positions but instead focusing on their and the other party’s underlying interests. It requires that both parties keep an open mind about how to meet each other’s interests rather than assuming that in order for my interests to be met, then yours must not be.
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25. An Integrative Negotiation
Steps
Clarify Interests
Identify options
Design alternative deal packages
Select a Deal
Perfect the deal
Separately
Identify tangible and intangible needs
Identify elements of value
Mix and match elements of value into different deals
Analyze deal packages proposed
Jointly
Discuss respective needs
Discuss respective elements of value
Exchange deal packages
Discuss and select from feasible deal packages – be creative
Discuss unresolved issues; build relationships for future negotiations; put in writing
The integrative approach involves a five-step process presented on this and on the next slide. Before the negotiation, parties should separately complete the following steps:
Step one is clarifying the interests as being either yours, theirs, or common interests. Before the negotiation, you should understand what your actual interests are. For example, assume you are representing your company and negotiating a deal with a client that involves how much they will pay for your goods or services. That means that money, for example may not really be your interest. Your interests relate to what that money will do for you, such as make your company more profitable or satisfy employees by being able to reward them with bonuses.
The next step is to identify options. Again, before the negotiation, you may have ideas about elements of value that will meet your interests. For example, working with this client may represent breaking into a new market, or working with a larger company than you’ve ever worked with before. Having that client’s name on your client list may be valuable to you because of the reputation that will be conveyed to future clients. Assuming they are happy with your service, you may ask them to be interviewed and quotes used in marketing materials. Or working on this particular project will be a developmental opportunity for your staff so this is valuable to you because you want them to be challenged and grow professionally for future work.
Step three is to design alternative deal packages where you mix and match elements of value. At this point you can put together multiple deals that could be compared in terms of their value to both parties. Maybe you give a discount if they’ll let you use less experienced staff, or they pay more for an entirely experienced team.
Steps four and five identify what’s involved in selecting and perfecting the deal.
During the negotiation parties should complete these steps.
During step one, you will share interests and learn more about what the other’s interests are.
Step two requires the parties to discuss elements of value. This is when you may discover elements of value to the other party that you had not thought of before.
Steps three through five involve the process of designing, selecting, and perfecting the deal in such a way as to ensure mutual agreement and to build relationships for future deals.
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26. Questionable/Unethical Tactics in Negotiation
Lies
Exaggerated praise
Deception
Weakening the opponent
Strengthening one’s own position
Nondisclosure
Information exploitation
Change of mind
Distraction
Maximization
Let’s end the chapter by identifying the ethical pitfalls that can erode trust and goodwill in the negotiation process.
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27. Test Your Knowledge
Before entering a negotiation with a client over the price of his company’s service, Ben thinks about the client’s interests and his company’s interests. He then brainstorms several options that would satisfy both needs. The approach Ben is taking represents:
Integrative negotiation
Distributive negotiation
“I win, you lose” negotiation
Compromise negotiation
Before entering a negotiation with a client over the price of his company’s service, Ben thinks about the client’s interests and his company’s interests. He then brainstorms several options that would satisfy both needs. The approach Ben is taking represents:
Integrative negotiation
Distributive negotiation
“I win, you lose” negotiation
Compromise negotiation
Answer: A
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28. Managing Conflict and Negotiating Supplemental Slides
The following set of slides has been developed in close collaboration with the authors of the text to provide instructors with additional material for class lectures. In most cases, the material is not discussed in the text, and includes updated sources and relevant examples to accompany text information.

29. Avoiding Negotiation
Every employee at same level gets equal pay based on:
Yrs. of relevant experience
Scope and responsibility of role in organization
Skill level
Source: Spolsky, J., Why I Never Let Employees Negotiate Pay Raises, Inc., Vol. 29, April 2009
This article discusses a system for establishing salaries and raises based on a fairly objective set of criteria:
Years of relevant experiences
Scope and responsibility of role in organization
Skill level (e.g., degree of supervision required; knowledge and expertise demonstrated)
They then use market data to ensure they are competitive and if the market increases, they increase everyone’s pay at the same level, not just the new people to avoid pay inversion.
Source: Spolsky, J., Why I Never Let Employees Negotiate Pay Raises, Inc., Vol. 29, April 2009
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30. Avoiding Negotiation
What are the pros and cons of this approach?
Does the system capture most/all relevant employee differences with regard to pay?
Source: Spolsky, J., Why I Never Let Employees Negotiate Pay Raises, Inc., Vol. 29, April 2009
What are the pros and cons of this approach?
Discuss the concepts of equity.
Does their system capture all relevant employee differences?
Source: Spolsky, J., Why I Never Let Employees Negotiate Pay Raises, Inc., Vol. 29, April 2009
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31. Avoiding Negotiation
If market goes up, ALL employees at that level get an increase not just the new hires.
What if market goes down?
Source: Spolsky, J., Why I Never Let Employees Negotiate Pay Raises, Inc., Vol. 29, April 2009
The articles explains that this company, Fog Creek Software, avoids salary inversion issues by giving raises to every employee at the same level if the market rate for an employee of that type and level goes up, not just the new hires.
What if market goes down?
Article doesn’t address this; discuss the fact it’s a lot harder psychologically for people to lose money.
Source: Spolsky, J., Why I Never Let Employees Negotiate Pay Raises, Inc., Vol. 29, April 2009
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32. Personality Conflict/Incivility
Common examples of incivility
Berating bosses
Employees who take credit for other’s work
Assigning blame
Spreading rumors
Excluding teammates
Source: Porath, C. & Pearson, C. (2009). How Toxic Colleagues Corrode Performance, Harvard Business Review, Vol. 87, pg. 24.
This article discusses the destructive phenonmena of incivility in the workplace and the effect it has on the targets of the incivility.
Here are some examples of incivility in the workplace:
Berating bosses
Employees who take credit for other’s work
Assigning blame
Spreading rumors
Excluding teammates
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Source: Porath, C. & Pearson, C. (2009). How Toxic Colleagues Corrode Performance, Harvard Business Review, Vol. 87, pg. 24.

33. Personality Conflict/Incivility
Targets of incivility reported:
48% decreased their work effort
47% decreased their time at work
38% decreased their work quality
66% said their performance declined
80% lost work time worrying about the incident
63% lost time avoiding the offender
78% said their commitment to the organization declined
Source: Porath, C. & Pearson, C. (2009). How Toxic Colleagues Corrode Performance, Harvard Business Review, Vol. 87, pg. 24.
Targets of incivility reported:
48% decreased their work effort
47% decreased their time at work
38% decreased their work quality
66% said their performance declined
80% lost work time worrying about the incident
63% lost time avoiding the offender
78% said their commitment to the organization declined
Source: Porath, C. & Pearson, C. (2009). How Toxic Colleagues Corrode Performance, Harvard Business Review, Vol. 87, pg. 24.
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34. Personality Conflict/Incivility
What types of workplace incivility have you observed?
How should organizations deal with incivility?
Source: Porath, C. & Pearson, C. (2009). How Toxic Colleagues Corrode Performance, Harvard Business Review, Vol. 87, pg. 24.
What types of workplace incivility have you observed?
How should organizations deal with incivility?
The article suggests that organizations can’t afford to let toxic colleagues interfere with other’s performance. Uncivil behavior should be penalized and repeat offenders fired.
Source: Porath, C. & Pearson, C. (2009). How Toxic Colleagues Corrode Performance, Harvard Business Review, Vol. 87, pg. 24.
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35. Video Cases Toxic Coworkers
Videos applicable to this chapter and available on the Organizational Behavior Video DVD, Volume One include:
Toxic Coworkers
NOTE: Slides for the complete set of video cases on the Organizational Behavior Video DVD, Volume One can be found on the book’s website in the Instructor’s Resources.
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36. Management in the Movies Jaws – “The Town Meeting”
In this scene, the Mayor is leading a town meeting with Chief Brody and the merchants.
Questions
How is the conflict of closing the beach handled?
Which conflict management strategy does Chief Brody use?
Which strategy does the mayor use?
Relevant concepts
Organizational conflict
Interpersonal conflict
Overlapping authority
Negotiation
Overview
This clip is a good example of conflict that arises because of different agendas or beliefs. In the resort community of Amity a swimmer is found dead on the beach, allegedly killed by a shark. The police chief, Brody (Roy Scheider) wants to close the beaches, but the merchants are afraid that their businesses will suffer if the beaches are closed. They are reluctant to believe that another attack could occur. The mayor (Murray Hamilton) settles the conflict by compromising without discussing his solution with the chief. This is a good discussion point for conflict management strategies and their long term effectiveness.
Discussion Questions
How is the conflict of closing the beach handled?
The mayor asks the merchants and the town council to meet together to discuss options to deal with the possibility of a killer shark.
Which conflict management strategy does Chief Brody use?
Chief Brody wants to use the competition strategy. He wants to keep the beach as safe as possible and thinks that closing them until the shark is found is the best way. He is not as concerned with the money tourists might spend as much as wanting to keep them safe.
Which strategy does the mayor use?
The mayor uses a compromise strategy by offering to close the beaches for only 24 hours. He seems to make this decision without good information or regard to swimmer’s safety. He allows the merchants’ cries for relief to affect his judgment.
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37. Getting Your Slice Sell Yourself Do your homework Act now Grab a bonus
Go for a promotion
Take the consolation prize
For more go to Negotiation Tips by Wren Withers at negotiateyoursalary.com
Source: Getting Your Slice, Newsweek, October 9, 2006
Wren Withers is a coach who helps others increase their salaries and other forms of compensation. She has a website called negotiateyoursalary.com
A few of her tips….
Sell yourself: ensure your boss knows how valuable you are, remind him/her about your recent contributions
Do your homework: Find out what you could make at other companies
Act now: Be proactive in getting feedback to work on something that could be improved
Grab a bonus: one-time payouts are sometimes more easily met than a salary increase. Find out how discretionary bonuses can be earned
Go for a promotion: sometimes a title change is required to increase one’s salary; find out how you can be eligible for a promotion
Take the consolation prize: Request a catch-up review in about 6 months
Source: Fackelmann, K. Arguing hurts the heart in more ways than one, USA Today, 3/6/07 p. 10D
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38. Arguing Hurts the Heart
Couples who make nasty or controlling remarks are at risk of developing heart disease
Researchers discovered:
Hostile wives had double the level of clogged arteries as those who discussed matters in less hostile ways – even worse with hostile husbands
Husbands who made domineering statements or whose wife did had arteries 1.5 times more clogged than husbands who were not in controlling relationships
Source: Fackelmann, K. Arguing hurts the heart in more ways than one, USA Today, 3/6/07 p. 10D
Couples who make nasty or controlling remarks are at risk of developing heart disease
Researchers discovered:
Hostile wives had double the level of clogged arteries as those who discussed matters in less hostile ways – even worse with hostile husbands
Husbands who made domineering statements or whose wife did had arteries 1.5 times more clogged than husbands who were not in controlling relationships
Source: Fackelmann, K. Arguing hurts the heart in more ways than one, USA Today, 3/6/07 p. 10D
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39. Manager’s Hot Seat Video: Partnership: The Unbalancing Act
Jonas and Rande are facing a difficult situation. What sources of conflict contributed to the problems they are having?
 1. What is the key problem?
Time management
Communication
Overlapping tasks
 2. Jonas’ behavior indicates:
Disinterest
Burn-out
Distraction
Manager’s Hotseat Scenario #7: Partnership: The Unbalancing Act
You can use these abbreviated slides to focus on the conflict management aspects of this segment or refer to the “Gtoup and Video Resource Manual: An Instructor’s Guide to an Active Classroom by Johnson and Kinicki for full set of slides and instructor’s notes.
I. Introduction
This scenario highlights a business partnership that is in decline. The conflict that this creates and the resolution of it provide a good background for discussion of the types and causes of conflict in organizations.
Scene Set-up: After calling Jonas three times to remind him, Rande and Jonas are finally meeting to discuss Rande’s dissatisfaction with Jonas’ contribution to the company.
The Meeting - Summary: Rande indicates to Jonas that the distribution of the workload and his repeatedly missing meetings and other major responsibilities (e.g., payroll) is not acceptable. Jonas understands this but contends he is doing the best he can and is still contributing significantly to the business. Rande asks him what can be done to improve this situation. Jonas cuts the meeting off because he has to pick up his daughter. Rande tries to pin him down on another meeting time which he half-heartedly agrees to.
6 Days Later – Rande finally meets with Jonas again and asks him what solutions he came up with. He says he’d like to bow out gracefully but wants to reserve the right to sell his share to whomever he wants in order to make the most money. Rande seems relieved at his decision but explains that she has the first right of refusal and that she has already discussed their partnership agreement with their lawyer. They agree to meet with the lawyer the following Monday.
Jonas and Rande are facing a difficult situation. What sources of conflict contributed to the problems they are having? See PPT 7-3.
Several of the sources on PPT 7-3 could be offered. Specifically, scarce resources seem to be a primary source because they need to operate the store longer to be able to reach their financial goals. This increase in operations causes an added burden on the partners and increases their need to be effective time managers. Also, the partners have overlapping authority so Jonas has been abdicating his share of the responsibility because of his family demands causing Rande to do his share of the work.
 1. What is the key problem?
Time management
Communication
Overlapping tasks
Time management is a critical issue because Jonas has not been able to manage his time to fulfill his responsibilities.
 2. Jonas’ behavior indicates:
Disinterest
Burn-out
Distraction
Jonas’ behavior indicates distraction from the business due to family obligations. This is demonstrated when he needs to leave the meeting to pick up his daughter.
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40. Partnership: The Unbalancing Act (cont.)
Which type of conflict is depicted in this scenario?
Evaluate Rande’s approach to resolving this conflict. What conflict management style did she use?
 3. How was this meeting?
A success
A good start
A failure
Which type of conflict is depicted in this scenario?
Interpersonal conflict because the problem is between two individuals, Jonas and Rande.
Evaluate Rande’s approach to resolving this conflict. What conflict management style did she use: avoiding, accommodating, forcing, compromising, or collaborating?.
Rande used a problem oriented approach, rather than person oriented. She maintained ownership of the problem and described it in specific behavioral terms rather than being judgmental or evaluative. She never raised her voice or became overly emotional. She was firm when she felt it was necessary (e.g., refusing to let him sell his share to someone else). She did not avoid or accommodate, she attempted to collaborate to reach a mutually beneficial solution.
 3. How was this meeting?
A success
A good start
A failure
Rande feels that this meeting was a failure because she could not get Jonas to understand her point of view. However, the meeting could have gone a lot worse. The issue didn’t get completely resolved so it wasn’t a success but Jonas agreed to further communications and admitted that he had trouble meeting his responsibilities so it was not a complete failure.
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41. Costs of Dysfunctional Conflict
Fortune 500 senior executives spend 20 percent of their time in litigation activities.
Typical managers spend up to 30 percent of their time dealing with conflict.
The turnover costs for an employee are anywhere from between 75 percent and 150 percent of their annual salary.
16 percent of employees report conflict with a supervisor as the main reason for leaving their last job.
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42. Why Conflict Matters
“The best insurance against crossing the ethical divide is a roomful of skeptics.”
“CEOs must actively encourage dissent among senior managers by creating decision-making processes, reporting relationships, and incentives that encourage opposing viewpoints…”
“By advocating dissent, top executives can create a climate where wrongdoing will not go unchallenged.”
Business Week, Special Report – The Crisis in Corporate Governance, May 6, 2002
Here are some quotes from an article in Business Week called the Crisis in Corporate Governance. It described issues where the facilitation of functional conflict can have an impact on several important factors.
Ethics: “The best insurance against crossing the ethical divide is a roomful of skeptics.” When Sherron Watkins, the Enron whistleblower spoke at Mason (March 2007) she mentioned how the Board of Directors capitulated to requests to waive the corporate code of ethics.
CEOs must actively encourage dissent among senior managers by creating decision-making processes, reporting relationships, and incentives that encourage opposing viewpoints… This is the idea that you don’t want to insulate yourself from alternative perspectives because you could be wrong or not make the best long-term decision
“By advocating dissent, top executives can create a climate where wrongdoing will not go unchallenged.” This is a similar sentiment as the above two
Now let’s look at an example of how not promoting dissent and functional conflict can have dire consequences… go to slide on Columbia Disaster
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Source: The crisis in corporate governance, 5/6/2002, BusinessWeek Special Report)

43. The Columbia Shuttle Disaster
Investigator: As a manager, how do you seek out dissenting opinions?
MMT Chair: Well, when I hear about them.
Investigator: By their very nature you may not hear about them.
MMT Chair: Well, when somebody comes forward and tells me about them.
Investigator: But, what techniques do you use to get them?
Apparently, the MMT Chair did not have an answer to this question.
SOURCE: Langewiesche, Atlantic Monthly, November 2003, pg. 82
This is an excerpt from an article from the Atlantic Monthly. This is a few lines of an interview with an investigator and the Chair of the Mission Management Team for the Columbia Shuttle Disaster.
This exemplifies the need to have a process in place to ensure all relevant issues are brought up, especially when you’re dealing with decisions that affect people’s lives and the organization’s reputation.
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SOURCE: Langewiesche, Atlantic Monthly, November 2003, pg. 82

44. Columbia Shuttle Disaster
Engineer Rodney Rocha:
“I couldn’t do it [speak up more forcefully]… I’m too low down… and she’s [Ham] way up here.”
Former shuttle astronaut Jim Bagian:
“At senior levels, during the 1990s, dissent was not tolerated, and therefore, people learned if you wanted to survive in the organization, you had to keep your mouth shut.”
Columbia Shuttle disaster occurred on Saturday, February 1, 2003.
Chief Engineer, Structural Engineering Division – Rodney Rocha
Johnson Space Center
NASA engineers made extensive efforts to convince NASA management to obtain images of the shuttle wing. These efforts revolved around Rodney Rocha, a chief engineer at NASA's Johnson Space Center. Repeatedly, Rocha pressed for images of the wing in order to assess if the wing's thermal tiles had been structurally damaged. Unfortunately, each of Rocha's attempts was rebuffed by NASA management. Eventually, Rocha, in his own words, "lost the steam" to press his case.
One of the problems that Rocha faced, while attempting to obtain images of the shuttle wing, was that he understandably felt an obligation to be a courteous member of the NASA flight team. In Rocha's efforts to balance his ethical imperative to bring immediate attention to the danger faced by the astronauts with his ingrained sense of being a team player, he lost "steam." As a result, images of the damaged shuttle wing were never obtained.
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45. Salary Negotiation Tips for Managers
Establish what the position is worth the company
Choose whether to disclose the salary range
Communicate when negotiation is over
Find creative ways to sweeten the employment package
Explain the costs of company’s concessions
Be aware of the balance of power
The more you know about a candidate’s salary expectations when hiring them, and your own company’s flexibility—the better off you will be when it is time to negotiate salary.
Establish the “Value Framework”
What is the position worth to your company?
Find a candidate whose expectations are aligned with that amount
Establishes parameters for bargaining
Overlooking this may lead to differences in the candidate’s expectations and what your company is willing to pay, and put you at a disadvantage in hiring this person
Disclosing the Range For a Position
The candidate will wonder what the range is for the position – You should probably abide by the more information is better principle but frame the range in a way that makes it clear to the applicant what characteristics would warrant various points on the salary range. In other words, what criteria is used (e.g., experience, unique skills, similarity of work performed at other places, where other people who enter this position have started for internal equity)
A Disadvantage?
Disclosing the full range upfront, in the employment ad etc. may be a disadvantage because:
More than likely the top range is what the candidates target will be when you ask their expectant salary
An Advantage?
Fair for the candidate to have this information—they afterall will be asked for their own salary histories
Sharing this is an advantage because you can weed out candidates whose expectations are higher than what the company is wiling to pay
A Happy Medium?
Disclose only the lower half of the range
Protects the upper half, reserving it for seniority or experience
Filters out those whose salary expectations are too high
Specific Tips
Communicate to the candidate if a salary offer is firm or final
No room for further negotiation
Moves discussion from “what sort of counteroffer should I make” to points of negotiation and places of compromise
Find creative ways to sweeten the package
Listen to employee’s needs and emphasize benefits of the job—not necessarily monetary
Parking space, telecommuting opportunities, unique workplace culture relocation assistance, 401K contributions, etc.
Don’t let anyone look at this position as a short-term commitment
Make the package appealing by minimizing the importance placed on the monetary end, and point out the company’s desire to meet the candidate’s needs
Quantify the costs of your concessions
Assign a real dollar value to the concessions the company is making
Shows company is indeed willing to find a point of compromise
Balance of Power
Important to be aware of who has the upper hand
If individual is truly unique and quite possibly the only one able to fill the position, then clearly the job seeker has the floor
However, you may have several equally qualified candidates and so you have some bargaining room
Don’t be afraid to walk away when necessary
Source: D Fiebler, “Know When to Hold Them,” HR Magazine, August 2002, pp 89-94
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46. Defending Your Life Movie Clip
Did Al Brooks have an effective plan upon entering the negotiation?
What factors contributed to his actual negotiation performance?
Movie clip: Defending Your Life Scene 18
Background: The main character, Al Brooks, has died and is now in “Judgement City” where he spends several days before a decision is made about going back to earth as someone else or moving on. He has a lawyer who is supposed to defend him and a prosecutor who tries to make the case that he has not fully overcome his fears and should go back to earth until he does.
In this scene, the prosecutor shows a scene from his life where he practices negotiating a salary with his wife. He is very confident and eloquent when talking to her…. Then the scene switches to what actually happened – he took the first offer (lower than he wanted) his boss offered him.
Use this clips as a way to highlight the importance of planning ahead, considering other options that would serve to satisfy you other than salary, etc.
Did Al Brooks have an effective plan upon entering the negotiation?
On the one hand he did practice and think through what he was going to say. However, he didn’t really have a flexible plan that would allow him to present alternatives with his boss. He also practiced with someone he was very comfortable with and didn’t factor in the anxiety he would feel when actually talking to his boss.
What factors contributed to his actual negotiation performance?
Anxiety caused by intimidation of his boss. Not having any other ideas that would substitute for salary.
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47. The Wisdom of Dumb Questions
Dumb questions lead to smart decisions
Dumb questions require courage, if they didn’t they wouldn’t be worth asking.
Why are people reluctant to ask dumb questions?
Taken from Fortune, June 27th 2005 pg. 157
“Has Enron become a risky place to work?”
In its hey day this might have seemed like a dumb question, the stock was flying, and it’s leaders were asserting that Enron would be the world’s greatest company. But that dumb question was the very first line in Enron accountant Sherron Watkins’s famous memo to Ken Lay.
If so, how can we fix the mounting disaster? No one in a position of authority had the courage to follow where that dumb question led.
Dumb questions lead to smart decisions
Dumb questions require courage, if they didn’t they wouldn’t be worth asking.
Why are people reluctant to ask dumb questions?
Don’t want to appear stupid, disrespectful, challenging. Typically dumb questions cut right to the heart of the matter and make people feel uncomfortable.
Taken from Fortune, June 27th 2005 pg. 157
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48. Conflict at Its Worst Workplace bullying
Repeated nonphysical, health-impairing psychological mistreatment that falls outside discriminatory harassment
Affects turnover, productivity and potential for litigation
Taken from HR Magazine June 2005 Vol 50 “Bullying: It’s not Just on the Playground”
This article is about the increase in bosses being the target of bullying behavior. While there is no study confirming the financial impact of bullying in the US, in the UK it is estimated to be about 80 million lost workdays annually and accounts for at least half of all work-related stress resulting in mental and social problems.”
Bullies tend to respond to authority which is why it is recommended that a supervisor at least two levels above the targeted boss take action against the bully.
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49. Conflict at Its Worst How to deal with a bully
Have a supervisor at least two levels above the targeted boss clamp down on the bully by
Stating the behavior will not be tolerated, he/she will be monitored, he/she will be fired if behavior continues
Taken from HR Magazine June 2005 Vol 50 “Bullying: It’s not Just on the Playground”
This article is about the increase in bosses being the target of bullying behavior. While there is no study confirming the financial impact of bullying in the US, in the UK it is estimated to be about 80 million lost workdays annually and accounts for at least half of all work-related stress resulting in mental and social problems.”
Bullies tend to respond to authority which is why it is recommended that a supervisor at least two levels above the targeted boss take action against the bully.
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50. Conflict Management Tips
Speak your mind and heart
Listen well
Express strong feelings appropriately
Remain rational for as long as you can
Review what has been said
Learn to give and take
Avoid all harmful statements
Taken from HR Magazine May 2005 pg. 10s “Managing Employee Relations”
Speak your mind and heart
Address the problem directly and speak up
Listen well
Focus on what the person says, not your response to what is said
Express strong feelings appropriately
Don’t attach the individual doing the talking, say you understand their point of view and will work to find a solution
Remain rational for as long as you can
Keep focused on resolving the conflict
Review what has been said
Clarify and reiterate the issues so you are sure you understand the crux of the issue
Learn to give and take
Make sure both parties involved in the conflict are heard
Avoid all harmful statements
“Do no harm” - verbal attacks will only exacerbate the issue.
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51. The Wisdom of Dumb Questions
How to ask dumb questions…..
Don’t apologize beforehand
Don’t say this is a dumb question but….
Simply state the questions confidently
Don’t be intimidated by the stunned silence that follows…. Wait it out.
Taken from Fortune, June 27th 2005 pg. 157
How to ask dumb questions…..
Don’t apologize beforehand
Don’t say this is a dumb question but….
Simply state the questions confidently
Don’t be intimidated by the stunned silence that follows…. Wait it out.
Taken from Fortune, June 27th 2005 pg. 157
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52. Best Leadership/Career Advancement Behaviors
Perspective taking
Creating solutions
Expressing emotions
Reaching out
Notes:
Topic: Conflict Resolution
Conflict resolution skills have emerged as an important part of a manager’s skill set.
A study by the Management Development Institute (MDI) found a link between a person’s ability to successfully resolve a conflict and his or her perceived effectiveness as a leader. Managers with poor conflict management skills found that they reached a “promotion ceiling” earlier in their careers.
The study sampled 172 employees—90 males, 82 females—from five different organizations. About half of those surveyed hold mid-level or higher management positions.
The study revealed a strong correlation between certain conflict resolution behaviors and perceived suitability for promotion.
Best Leadership/Career Advancement Behaviors
Perspective taking a tendency to respond to conflict by trying to put one’s self in the other’s shoes and understand his or her point of view (empathy)
Creating solutions respond to conflict by brainstorming with others, asking lots of questions to try to come to a solution
Expressing emotions respond by talking honestly with the other person and making sure to express emotions and feelings
Reaching out respond by making the first move to try to make amends, reaching out to the other person
Worst Leaderhsip/Career Advancement Behaviors on Next Slide
Source: M Decahoussaye “Don’t Get Mad, Get Promoted,” Training, June 2002 p. 20
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53. Worst Leadership/Career Advancement Behaviors
Avoidance
Winning at all costs
Displaying anger
Demeaning others
Retaliating
Notes:
Topic: Conflict Resolution
Worst Leadership/Career Advancement Behaviors
Avoidance to respond by avoiding or ignoring the other person—acting distant or aloof
Winning at all costs by arguing for your own opinion, refusing to consider the other point of view or to consider changing your position—trying to win regardless of interpersonal costs
Displaying anger raising one’s voice, expressing anger, using harsh, angry words
Demeaning others laughing at the other person--ridiculing the other’s ideas and using sarcasm
Retaliating obstructing the other person—trying to get revenge
Source: M Decahoussaye “Don’t Get Mad, Get Promoted,” Training, June 2002 p. 20
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54. Driving Each Other Crazy in the Workplace
Messing up the break room
Sabotaging restrooms
Inaccessibility
Not returning phone calls, voice mail,
Habitually interrupting
Setting impossible deadlines
Reprimanding others in public
Notes:
Topic: Personal Conflicts/Incivility
According to Giovinella Gonthier, the author of “Rude Awakenings: Overcoming the Civility Crisis in the Workplace,” there are many ways people drive each other crazy in the workplace including:
Messing up the break room
Sabotaging restrooms
Inaccessibility
Not returning phone calls
Not returning voice mails
Not returning
Shouting
Habitually interrupting others
Setting impossible deadlines for subordinates
Reprimanding others in public
Gonthier is a former ambassador for the United Nations and feels that office incivility can lead to violence and bullying in the office and points out other negative effects such as: decreased work efforts, absenteeism, lost time avoiding bullies, and expensive employee turnover.
She feels that office civility programs can be effective and uses Sprint as example. The company has seven short questions employees should ask themselves before engaging in a negative behavior.
Sprint’s Ethics Quick Test
Could it harm Sprint’s reputation?
What would my family and friends say?
Would I bet my job on it?
How will it look in the newspaper?
She also likes companies such as Boeing, whose Managing Workplace Violence Program is helping create a safe, violence free organization. The company provides civility training and reinforces it with brochures identifying negative behaviors and ways to deal with workplace threats. The company also has management teams to investigate workplace assaults, stalking, bullying and so on.
Boeing defines its workplace broadly as “regular offices, field locations, temporary offices, parking lots, and travel between workplace locations.” This will encourage workplace bullies to think twice before engaging in a negative way—the company is stressing that the way you behave off-site, at trade shows, etc. will reflect on the company in one way or another.
The author acknowledges that some may be wary that enforcing civility will work, but points out that incivility sets up a cycle of behavior where customers often bear the brunt of an employee’s negative feelings toward the workplace, and if that is not enough for a company to consider enacting a civility program, if the behavior between employees is bad enough to encourage a lawsuit, the people who are targets of workplace violence and incivility will fight back against the company, not the tormentors.
Source: B Rosensteing, “A Civil Office is a Safe One,” USA TODAY, June , p. 6B
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55. Conclusion Questions for discussion
You might consider the following questions for discussion:
What is your experience with people viewing conflict as a war, versus seeing it as an opportunity or a journey? How did things turn out?
What examples of functional and dysfunctional conflict have you observed lately?
Which of the antecedents of conflict do you think are most common (or most troublesome) in today’s workplaces?
Have you ever been directly involved in a personality conflict? Explain. Was it handled well? What could have been done differently?
How could in-group thinking affect the performance of a manager living and working in a foreign country?
Which of the five conflict-handling styles is your strongest? Your weakest? How can you improve your ability to handle conflict?
What is your personal experience with conflict triangles? Based on what you have learned in this chapter, do you think you could do a better job of handling conflict triangles in the future?
Which of the six ADR techniques appeals the most to you? Why?
Has your concept of negotiation, prior to reading this chapter, been restricted to fixed-pie thinking?
How could added-value negotiation make your life a bit easier? Explain in terms of a specific problem, conflict, or deadlock.
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