Chapter 11 Managing Conflict and Negotiations Negotiating

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Managing Conflict and
Negotiations
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A Contemporary Perspective on Conflict

• Conflict is Inevitable, but is
  Neither inherently Good nor Bad.
• The Critical Issue with conflict
  is how it is Managed.

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A Contemporary Perspective on Conflict

• Conflict is defined in terms of the Effect it has
  on the Organization
• Functional conflict
• Dysfunctional conflict

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Functional Conflict

• A Confrontation between groups that Enhances
  organizational Performance.
• Without functional conflict in organizations
• there would be little commitment to change, and
• most groups would become stagnant.

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Functional Conflict

• Functional conflict can
• increase awareness of problems that need to be
  addressed
• result in broader, more productive searches for
  solutions
• facilitate positive change, adaptation, and
  innovation.

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Dysfunctional Conflict

• Confrontation or interaction between groups that
  harms the organization or hinders achievement of
  organizational goals.
• Management must try to eliminate
  dysfunctional conflict

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Intergroup Conflict and Org. Performance Exhibit
11.1 (p. 312)
Level of Intergroup Conflict
Level of Organizational Performance
Probable Impact on Organization
Organization Characterized By
Slow adaptation to environment Few changes
Little stimulation of
ideas Apathy Stagnation
Situation 1
Low or none
Dysfunctional
Low
Positive push toward Goals Innovation
change Search for problem solutions Creativity
quick adaptation to environmental changes
Situation 2
Optimal
Functional
High
Disruption Interference with
activities Coordination difficulties Chaos
Situation 3
Dysfunctional
High
Low
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Stages of Conflict
Perceived Conflict
Intergroup Conflicts develop over a period of Time
Felt Conflict
Manifest Conflict
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What Causes Intergroup Conflict?

• Work Interdependence
• Pooled interdependence
• Sequential interdependence
• Reciprocal interdependence

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Group A
POOLED
Goals
Group B
Types of Interdependence
SEQUENTIAL
Group A
Group B
Goals
Group A
Goals
Goals
RECIPROCAL
Group B
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What Causes Intergroup Conflict?

• Goal Differences
• Mutually Exclusive Goals
• Limited Resources
• Different Time Horizons

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What Causes Intergroup Conflict?

• Perceptual Differences
• Status Incongruency
• Inaccurate Perceptions
• Different Perspectives

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The Consequences of
Dysfunctional Intergroup Conflict

• Changes Within Groups
• Increased Group Cohesiveness
• Emphasis on Loyalty
• Rise in Autocratic Leadership
• Focus on Activity

• Changes Between Groups
• Distorted Perceptions
• Negative Stereotyping
• Decreased Communication

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Managing Intergroup Conflict Through Resolution
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Conflict-Resolution Grid
Accommodating or Smoothing
Problem Solving or Collaboration
HIGH
Allowing other group to win
Working together to solve problems
Compromising
Finding acceptable solution so everyone feels good
EXTERNAL FOCUS
Avoiding
Dominating
LOW
Ignoring or steering clear of other group
Working to dominate and control
LOW
HIGH
INTERNAL FOCUS
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Organizational Encounter (p. 320)

• How do You handle Conflict?
• Discuss your results with your group.
• Report the various styles from your group.

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When to Use the Different
Conflict-Resolution Approaches

• Dominating for important issues
• Where you are certain you are right, and
• The benefit of a resolution outweighs the
  drawback of possible negative feelings
  by the dominated group.

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When to Use the Different
Conflict-Resolution Approaches

• Accommodating for disputes of much greater
  importance to the
  other group than to your group.

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When to Use the Different
Conflict-Resolution Approaches

• Problem-Solving when both groups are willing
  to invest time and effort to reach a resolution
  maximizing everyones outcome.
• Avoiding Primarily a temporary measure
  to buy more time.

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When to Use the Different
Conflict-Resolution Approaches

• Compromising a middle ground
• Good backup approach when other
  approaches fail to resolve the issue.

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Overview of Intergroup Conflict
Exhibit 11.4 (p. 322)

• Review of Positive Consequences of Functional
  Conflict and
  Negative Consequences of Dysfunctional Conflict

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Global OB (p. 323)

• Using Japanese and American perspectives as an
  example, why is intercultural
  conflict resolution so complex?

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Stimulating Constructive Intergroup Conflict

• Bring Outsiders into the group
• Alter the organizations Structure
• Stimulate Competition
• Make use of Programmed Conflict
• Devils Advocacy

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Negotiations

• Negotiations Process in which the parties to a
  disagreement attempt to reach acceptable
  agreement.

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You Be the Judge (p.325)

• How should you handle
  low-balling in salary
  negotiations?

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Negotiations

• In an organization,
  negotiation may take place
• 1. Between Two People
• 2. Within a Group
• 3. Between Groups
• 4. Over the Internet

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Win-Lose Negotiating

• Classical view that negotiations are a Zero-Sum
  Game
• To whatever extent One Party Wins something, the
  Other Party Loses.
• Also known as
  Distributive Negotiating
• The process of Distributing
  Scarce Resources.

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Win-Win Negotiating

• A Positive-Sum approach
• Each party gains without a corresponding loss for
  the other party.
• Does not mean that everyone gets everything they
  want.
• Agreement leaves all parties
  better off than prior to the agreement.

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Negotiation Tactics
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Variables Affecting Negotiations

• There is no one best way to negotiate.
• Selection of specific Negotiation Strategies and
  Tactics depends on
• 1. Issues being negotiated.
• 2. Environment in which negotiations take place.
• 3. Outcomes Desired from the negotiations.

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Negotiations Desired Outcomes

• Substantive Outcomes
• Have to do with how the specific issue is
  settled.
• Strive to end up with a bigger piece of the pie
  than the other party.

• Relationship Outcomes
• Negotiate in a manner designed primarily to
  maintain good relations between the parties.
• Desired irrespective of the substantive result.

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Mastenbroeks Model to Increase Negotiating
Effectiveness Key Activities

1. Obtain Substantial Results
2. Influence the Balance of Power
3. Promote a Constructive Climate
4. Obtain Procedural Flexibility

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Using Third-Party Negotiations
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Negotiating Globally

• Negotiating with individuals from different
  countries and cultures poses a
  number of issues.
• Demonstrating knowledge about a
  culture is one way to establish rapport and
  respect with another negotiator.

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Improving Negotiations

1. Begin bargaining with a positive overture and
   reciprocate the opponents concessions.
2. Concentrate on the negotiation issues and
   situational factors, not on the opponent.
3. Look below the surface of your opponents
   bargaining -- try to determine the strategy.

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Improving Negotiations

1. Do not allow constituents to create competitive
   bargaining.
2. If you have power in a negotiation, use it to
   guide the opponent toward an agreement.
3. Be open to accepting third-party assistance!

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Case 11.1 Conflict at Walt Disney

1. Describe the conflict between Eisner and the
   Weinsteins, the 2 Board Members (Disney Gold),
   and Steve Jobs. Was it Functional?
   Dysfunctional? Explain.
2. Was the conflict between Eisner and Jobs
   Perceived? Felt? Manifest?

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Case 11.1 Conflict at Walt Disney

1. Which conflict resolution approaches did Eisner
   and Iger use Dominating, Problem Solving,
   Avoiding, or Accommodating? Explain.
2. Did Igers less confrontational approach to
   conflict help the company survive a major
   economic recession?