1. Conflict and Negotiation
Chapter 9
Conflict and Negotiation
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

2. Conflict and Negotiation
What is conflict?
How can conflict be resolved?
What are the effects of conflict?
What is negotiation?
How does one negotiate effectively?
What are some of the contemporary issues in negotiation?
This material is found at the beginning of the chapter.
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

3. Conflict Defined
A process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about.
Functional
Supports the goals of the group and improves its performance.
Dysfunctional
Hinders group performance.
Material pertinent to this discussion is found on pages
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

4. Research Findings Cognitive Affective
Conflict related to differences in perspectives and judgments.
Task-oriented
Results in identifying differences
Usually functional conflict
Affective
Emotional conflict aimed at a person rather than an issue.
Dysfunctional conflict
Material pertinent to this discussion is found on page 316.
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

5. Conflict and Unit Performance
(Low)
(High) ) h g i H (
Level of conflict e c n a m r o f p t U
Unit performance
Material pertinent to this illustration is found on page 323.
We suggest in Exhibit 9-3 that there is an optimal level of conflict in the workplace to maximize productivity, but this is decidedly a North American viewpoint. Many Asian cultures believe that conflict almost always has a negative effect on the work unit.
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

6. Conflict Intensity Continuum
Annihilatory
Overt efforts to destroy
conflict
the other party
Aggressive physical attacks
Threats and ultimatums
Assertive verbal attacks
Material pertinent to this illustration is found on page 317.
Overt questioning or
challenging of others
Minor disagreements or No
misunderstandings
conflict
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

7. Sources of Conflict Communication Structure:
Size, specialization, and composition of the group
Ambiguity responsibility
Zero-sum reward systems
Leadership style
The diversity of goals
If one group is dependent on another
Material pertinent to this discussion is found on pages
Composition: The larger the group and the more specialized its activities, the greater the likelihood of conflict. The potential for conflict tends to be greatest where group members are younger and where turnover is high.
Jurisdictional Ambiguities: Increase intergroup fighting for control of resources and territory.
Reward systems: where one member’s gain is at another’s expense.
If a group is dependent on another group (in contrast to the two being mutually independent), or if interdependence allows one group to gain at another’s expense, opposing forces are stimulated.
Participation: Encourages the promotion of differences.
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

8. Sources of Conflict (cont.)
Personality:
Misunderstandings based on age, race, or cultural differences
Intolerance, prejudice, discrimination, and bigotry
Perceived inequalities
Misunderstandings, rumours, or falsehoods about an individual or group
Blaming for mistakes or mishaps (finger-pointing)
Material pertinent to this illustration is found on page 322.
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

9. Conflict Resolution Two Dimensions: Cooperativeness Assertiveness
The degree to which one party attempts to satisfy the other party’s concerns.
Assertiveness
The degree to which one party attempts to satisfy his or her own concerns.
Material pertinent to this discussion is found on page 319.
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

10. Five Conflict-Handling Strategies
Forcing
Imposing one’s will on the other party.
Problem solving
Trying to reach an agreement that satisfies both one’s own and the other party’s aspirations as much as possible.
Avoiding
The desire to withdraw from or suppress a conflict.
Yielding
Accepting and incorporating the will of the other party.
Compromising
A situation in which each party to a conflict is willing to give up something.
Material pertinent to this discussion is found on page 319.
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

11. Conflict-Handling Strategies and Accompanying Behaviour
Uncooperative
Cooperative
COOPERATIVENESS
Trying to satisfy the other person’s concerns
Forcing
Satisfying one’s own interests
without concern for the other’s
interests
• Make threats and bluffs
• Make persuasive arguments
• Make positional commitments
Problem solving
Clarifying differences to find
mutually beneficial outcomes
• Exchange information about
priorities and preferences
• Show insights
• Make trade-offs between
important and unimportant issues
Compromising r
Giving up something to reach an
outcome (done by both parties)
• Match other’s concessions
• Make conditional promises
and threats
• Search for a middle ground A
voiding
Withdrawing from or ignoring
conflict
• Don’t think about the issues
Yielding
Placing the other’s interests above
one’s own
• Make unilateral concessions
• Make unconditional promises
• Offer help
ASSERTIVENESS
Trying to satisfy one’s own concerns ’
Unassertive
Assertive
Material pertinent to this illustration is found on page 320.
Cooperativeness: The degree to which one party attempts to satisfy the other party’s concerns.
Assertiveness: The degree to which one party attempts to satisfy his or her own concerns.
Specific Intentions:
Competing: A desire to satisfy one’s interests, regardless of the impact on the other parties.
Collaborating: A situation where the parties to a conflict each desire to satisfy fully the concerns of all parties.
Avoiding: The desire to withdraw from or suppress a conflict.
Accommodating: The willingness of one party in a conflict to place the opponent’s interests above his or her own.
Compromising: A situation in which each party to a conflict is willing to give up something.
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

12. What Can Individuals Do to Manage Conflict?
Problem solving
Developing superordinate goals
Smoothing
Compromising
Avoidance
Material pertinent to this illustration is found on page 321.
Problem-solving: Requesting a face-to-face meeting to identify the problem and resolve it through open discussion.
Developing superordinate goals: Creating a shared goal that requires both parties to work together, and motivates them to do so.
Smoothing: Playing down differences while emphasizing common interests with the other party.
Compromising: Agreeing with the other party that each will give up something of value to reach an accord.
Avoidance: Withdrawing from, or suppressing, the conflict.
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

13. Techniques for Managing Work-Related Conflicts
Expansion of resources
Authoritative command
Altering the human variable
Altering the structural variables
Material pertinent to this discussion is found on pages
Expansion of Resources: The scarcity of a resource--say, money, promotion opportunities, office space--can create conflict. Expansion of the resource can create a win-win solution.
Authoritative command: Management can use its formal authority to resolve the conflict and then communicate its desires to the parties involved.
Altering the human variable: Behavioural change techniques such as human relations training can alter attitudes and behaviours that cause conflict.
Altering the structural variables: The formal organization structure and the interaction patterns of conflicting parties can be changed through job redesign, transfers, creation of coordinating positions, and the like.
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

14. Resolving Intercultural Conflicts
Those from Asian cultures show a preference for conflict avoidance, compared with Americans and Britons.
Chinese and East Asian managers prefer compromising as a strategy, contrary to North Americans.
North Americans prefer a problem-solving approach to conflicts, which yields a win-win solution.
Win-win solutions are less likely to be achieved in Asian cultures.
East Asian managers tend to ignore conflict rather than make it public.
Japanese managers tend to choose nonconfrontational styles.
Westerners are more likely to choose forcing as a strategy than Asians.
North Americans expect that negotiations may lead to a legal contract; Asian cultures rely less on legal contracts and more on relational contracts.
Material pertinent to this discussion is found on page 323.
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

15. Third-Party Conflict Resolution
Facilitation
Conciliation
Ombudsperson
Peer Review
Mediation
Arbitration
Material pertinent to this discussion is found on pages
Occasionally, individuals or group representatives reach a stalemate and are unable to resolve their differences. In such cases, they may turn to alternative dispute resolution (ADR), where a third party helps both sides find a solution outside a courtroom.
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

16. Third-Party Conflict Resolution
Facilitator: Generally acquainted with both parties, working with both sides to reach an agreement.
Conciliator: Trusted third party who provides an informal communication link between the negotiator and the opponent.
Informal link
Used extensively in international, labour, family, and community disputes
Fact-find, interpret messages, persuade disputants to develop agreements
Material pertinent to this discussion is found on page 324.
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

17. Third-Party Conflict Resolution
Ombudsperson
An impartial party, widely respected, and trusted.
Peer Review
A panel of peers who have been put together to hear both sides of the issue from the parties involved and to recommend a solution.
Material pertinent to this discussion is found on page 324.
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

18. Third-Party Conflict Resolution
Mediator: A neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives.
Labour-management negotiations and civil court disputes
Settlement rate is about 60 percent; satisfaction rate is about 75 percent
Participants must be motivated to bargain and settle
Best under moderate levels of conflict
Mediator must appear neutral and non-coercive
Arbitrator: Has authority to dictate an agreement.
Voluntary (requested) or compulsory (imposed by law or contract)
Always results in a settlement
May result in further conflict
Material pertinent to this discussion is found on page 325.
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

19. Conflict Outcomes Three desired outcomes of conflict
Agreement: Equitable and fair agreements are the best outcomes
Stronger relationships: When conflict is resolved positively, this can lead to better relationships and greater trust.
Learning: Handling conflict successfully teaches one how to do it better next time.
Material pertinent to this illustration is found on page 326.
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

20. Negotiation
A process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for them.
Distributive bargaining
Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation.
Integrative bargaining
Negotiation that seeks one or more settlements that can create a win-win solution.
Material pertinent to this discussion is found on pages
There are two general approaches: distributive bargaining and integrative bargaining. Distributive bargaining is negotiation that seeks to divide up a fixed amount of resources, a win-lose situation, while integrative bargaining is negotiation that seeks one or more settlements that can create a win-win solution. In contrast to distributive bargaining, integrative problem solving operates under the assumption that there exists more than one settlement that can create a win-win solution. Integrative bargaining builds long-term relationships and facilitates working together in the future.
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

21. The Negotiation Process
How to Negotiate
The Negotiation Process
Five steps to negotiation:
Developing a strategy
Definition of ground rules
Clarification and justification
Bargaining and problem solving
Closure and implementation
Identify BATNA:
Best Alternative To a Negotiated Agreement.
Developing a strategy
Defining ground rules
Clarification and
justification
Material pertinent to this information is found on page 329.
Bargaining and
problem solving
Closure and
implementation
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

22. Staking Out the Bargaining Zone
$400
$475
$525
$600
Buyer’s aspiration range
Seller’s aspiration range
Bargaining
Zone
Buyer’s
Seller’s
Buyer’s
Seller’s
Material pertinent to this illustration is found on page 330.
target
resistance
resistance
target
point
point
point
point
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

23. Gender Differences in Negotiation
Women
More inclined to be concerned with feelings and perceptions, and take a longer-term view.
View the bargaining session as part of an overall relationship.
Tend to want all parties in the negotiation to be empowered.
Use dialogue to achieve understanding.
Men
View the bargaining session as a separate event.
Use dialogue to persuade.
Material pertinent to this discussion is found on pages
Do men and women negotiate differently? The answer appears to be “It depends.” It is difficult to generalize about gender differences in negotiating styles, because the research yields many opinions, but few reliable conclusions. Some researchers have documented interesting and relevant differences, however.
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

24. Cross-Cultural Negotiation
Negotiating styles vary across national culture
French: Like conflict.
Chinese: Draw out negotiations, believing they never end.
Chinese and Japanese: Negotiate to develop. relationships and commitment.
Americans: Impatient, desire to be liked.
Material pertinent to this discussion is found on pages
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

25. Exhibit 9-7 Negotiating Attitude
Material pertinent to this illustration is found on page 333.
Chapter 8, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada