1. Chapter 5 Conflict Management and Negotiation

2. Copyright © 2006 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 2 Purpose and Overview Purpose –To understand conflict management and negotiation

3. Copyright © 2006 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 3 Purpose and Overview Overview –The Importance of Conflict Management –The Causes of Conflict –Levels of Conflict –Managing Conflict –Negotiation –Managing Conflict Through Third-Party Intervention

4. Copyright © 2006 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 4 The Importance of Conflict Management Changing Environmental Trends –Global competition –Increased diversity –Corporate restructuring –Mobile workforce

5. Copyright © 2006 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 5 The Causes of Conflict Resource Scarcity –Power, money, information, advice, praise Beneficial versus Detrimental Effects

6. Copyright © 2006 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 6 The Causes of Conflict Jehn’s Typology of Conflict –Task content conflict –Emotional conflict –Administrative conflict

7. Copyright © 2006 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 7 Levels of Conflict Individual Level (intrapersonal) –Approach-approach –Avoidance-avoidance –Approach-avoidance

8. Copyright © 2006 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 8 Levels of Conflict Group Level –Interpersonal conflict: between two or more individuals –Intragroup conflict –Intergroup conflict

9. Copyright © 2006 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 9 Managing Conflict

10. Copyright © 2006 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 10 Negotiation Basic Concepts –Best Alternative to Negotiated Agreement (BATNA): result of walking away from negotiation –Reservation price –Aspiration level –Bargaining zone

11. Copyright © 2006 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 11 Negotiation The Distributive Dimension –Allocation, or distribution, of some resources –Resolving often entails compromise by both parties –“Dividing the ‘Pie’” of resources

12. Copyright © 2006 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 12 Negotiation The Integrative Dimension –One party gains without other party losing –Mutually beneficial decisions through a cooperative problem-solving approach –“Expanding the ‘pie’” of resources

13. Copyright © 2006 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 13 Negotiation The Mixed-Motive Nature –Balancing cooperative and competitive behavior –“Enlarge the ‘pie’” of resources

14. Copyright © 2006 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 14 Negotiation The Role of Information Sharing –Amount of information shared affects quality of outcomes –One party gains advantage if other party shares more information

15. Copyright © 2006 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 15 Negotiation Compatible Issues –Parties have same preferences –Parties often do not know they have same preferences

16. Copyright © 2006 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 16 Negotiation Multiparty Negotiations –Involve three or more parties –Characterized by complexity Interpersonal complexity Issue complexity

17. Copyright © 2006 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 17 Negotiation Fairness and Ethics –Fairness norms Equality Equity Need –Unethical behavior

18. Copyright © 2006 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 18 Negotiation Preparing to Negotiate –BATNA –Reservation price –Identify discuss topics –How many negotiators other party brings –Importance of relationship –Time constraints

19. Copyright © 2006 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 19 Managing Conflict Through Third-Party Intervention Dispute Intervention Goals –Manager’s role in dispute may depend on: What he or she is trying to accomplish Constraints imposed by the situation

20. Copyright © 2006 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 20 Managing Conflict Through Third-Party Intervention Dispute Intervention Goals –Manager’s intervention strategies may be affected by: Importance of issues Time pressure Relative power of disputants Relationships between parties Relationships between manager and parties

21. Copyright © 2006 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 21 Managing Conflict Through Third-Party Intervention Types of Intervention Strategies –Third party control over: Dispute process Dispute outcome

22. Copyright © 2006 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 22 Managing Conflict Through Third-Party Intervention Strategies –Inquisitor –Arbitrator –Mediator