1. Conflict and Negotiation in the Workplace
McGraw-Hill/Irwin
McShane/Von Glinow OB 5e
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Cross-Generational Conflict
To reward themselves for a job well done, Generation-Y (Millennial) employees might throw a pizza party during office hours, but this practice bothers older employees who have different views about appropriate workplace behavior.
11-2

3. Conflict Defined
The process in which one party perceives that its interests are being opposed or negatively affected by another party
11-3

4. Is Conflict Good or Bad?: Pre 1970s View
Historically, experts viewed conflict as dysfunctional
Undermined relations
Wasted human energy
More job dissatisfaction, turnover, stress
Less productivity, information sharing
Level of conflict
Conflict outcomes
Bad
Good
Low
High
11-4

5. Is Conflict Good or Bad?: 1970s-1990s View
1970s to 1990s – belief in an optimal level of conflict
Some level of conflict is good because:
Energizes debate
Reexamine assumptions
Improves responsiveness to external environment
Increases team cohesion
Level of conflict
Conflict outcomes
Bad
Good
Low
High
Optimal conflict
11-5

6. Is Conflict Good or Bad?: Emerging View
Two types of conflict
Constructive conflict -- Conflict is aimed at issue, not parties
Relationship conflict -- Conflict is aimed at undermining the other party
11-6

7. Is Conflict Good or Bad?: Emerging View
Goal: encourage constructive conflict, minimize relationship conflict
Problem: difficult to separate constructive from relationship conflict
Drive to defend activated when ideas are critiqued
Level of conflict
Conflict outcomes
Bad
Good
Low
High
Constructive conflict
Relationship conflict
11-7

8. Constructive Confrontation at Intel
Intel employees learn to fully evaluate ideas through “constructive confrontation.” The objective is to attack the problem, not the employee, but some critics claim the process is a license for some Intel staff to be bullies.
11-8

9. Minimizing Relationship Conflict
Three conditions that minimize relationship conflict while engaging in constructive conflict
Emotional intelligence
Cohesive team
Supportive team norms
11-9

10. The Conflict Process Conflict Perceptions Emotions Manifest Conflict
Sources of
Conflict
Conflict
Outcomes
Conflict
Escalation Cycle
11-10

11. Structural Sources of Conflict
Incompatible
Goals
One party’s goals perceived to interfere with other’s goals
Differentiation
Different values/beliefs
Explains cross-cultural and generational conflict
Task Interdependence
Conflict increases with interdependence
Parties more likely to interfere with each other
more
11-11

12. Structural Sources of Conflict
Scarce Resources
Motivates competition for the resource
Ambiguous Rules
Creates uncertainty, threatens goals
Without rules, people rely on politics
Communication Problems
Increases stereotyping
Reduces motivation to communicate
Escalates conflict when arrogant
11-12

13. Interpersonal Conflict Handling Styles
Win-win orientation
believe parties will find a mutually beneficial solution
Win-lose orientation
belief that the more one party receives, the less the other receives
11-13

14. Five Conflict Handling Styles
High
Forcing
Problem-solving
Assertiveness
Compromising
Avoiding
Yielding
Low
High
Cooperativeness
11-14

15. Conflict Handling Contingencies
Problem solving
Best when:
Interests are not perfectly opposing
Parties have trust/openness
Issues are complex
Problem: other party take advantage of information
Forcing
you have a deep conviction about your position
quick resolution required
other party would take advantage of cooperation
Problems: relationship conflict, long-term relations
11-15

16. Conflict Handling Contingencies
Avoiding
Best when:
relationship conflict is high
conflict resolution cost is higher than benefits
Problems: doesn’t resolve conflict, frustration
Yielding
other party has much more power
issue is much less important to you than other party
value/logic of your position is imperfect
Problem: Increases other party’s expectations
11-16

17. Conflict Handling Contingencies
Compromising
Best when…
Parties have equal power
Quick solution is required
Parties lack trust/openness
Problem: Sub-optimal solution where mutual gains are possible
11-17

18. Structural Approaches to Conflict Resolution
Emphasizing superordinate goals
Emphasize common objective rather than conflicting sub-goals
Reduces goal incompatibility and differentiation
Reducing differentiation
Remove sources of different values and beliefs
e.g. Move employees around to different jobs
11-18

19. Structural Approaches to Conflict Resolution (con’t)
Improving communication/understanding
Employees understand and appreciate each other’s views through communication
Relates to contact hypothesis
Two warnings:
Apply communication/understanding after reducing differentiation
A Western strategy that may conflict with values/traditions in other cultures
11-19

20. Structural Approaches to Conflict Resolution (con’t)
Reduce Task Interdependence
Dividing shared resources
Combine tasks
Use buffers
Increase Resources
Duplicate resources
Clarify Rules and Procedures
Clarify resource distribution
Change interdependence
11-20

21. Resolving Conflict Through Negotiation
Negotiation -- attempting to resolve divergent goals by redefining terms of interdependence
Which conflict handling style is best in negotiation?
Begin cautiously with problem-solving style
Shift to a win-lose style when
Mutual gains situation isn’t apparent
Other part won’t reciprocate info sharing
11-21

22. Bargaining Zone Model Your Positions Opponent’s Positions Initial
Target
Resistance
Area of
Potential
Agreement
Resistance
Target
Initial
Opponent’s Positions
11-22

23. Situational Influences on Negotiation
Location
Physical setting
Time passage and deadlines
Audience
Courtesy of Microsoft
11-23

24. Effective Negotiation Behavior
Preparation and goal setting
Gathering information
Communicating effectively
Making concessions
Courtesy of Microsoft
11-24

25. Types of Third Party Intervention
High
Mediation
Inquisition
Level of
Process Control
Arbitration
Low
Level of Outcome Control
High
11-25

26. Choosing the Best 3rd Party Strategy
Managers prefer inquisitional strategy, but not usually best approach
Mediation potentially offers highest satisfaction with process and outcomes
Use arbitration when mediation fails
11-26

27. Conflict and Negotiation in the Workplace
McGraw-Hill/Irwin
McShane/Von Glinow OB 5e
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
11-27