Managing Conflict and Negotiations

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Managing Conflict and Negotiations
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For any organization to perform effectively,
interdependent individuals and groups must
establish working relationships across
organizational boundaries, between individuals,
and among groups. Such interdependence may foster
either cooperation or conflict.
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A Contemporary Perspective

• Conflict is neither inherently good nor bad, but
  is inevitable
• Critical issue is how it is managed
• Conflict is defined in terms of the effect it has
  on the organization
• functional conflict
• dysfunctional conflict
• What do goals have to do with effect???

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Functional Conflict- toward goals

• Enhances and benefits the organizations
  performance. Without it.
• there would be little commitment to change
• most groups likely would become stagnant
• Functional conflict can
• lead to increased awareness of problems that need
  to be addressed
• result in broader and more productive searches
  for solutions
• generally facilitate positive change, adaptation,
  and innovation

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Dysfunctional Conflict

• Any confrontation or interaction between groups
  that harms the organization or hinders the
  achievement of organizational goals
• Management must seek to eliminate dysfunctional
  conflict
• Dysfunctional Conflict inhibits
• achievement of organizational goals!

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Relationship Between Intergroup Conflict and
Organizational Performance
Level of Intergroup Conflict
Level of Organizational Performance
Probable Impact on Organization
Organization Characterized By
Low or none
Slow adaptation to environment Few changes
Little stimulation of
ideas Apathy Stagnation
Low
Dysfunctional
Situation I
Optimal
Functional
High
Situation II
Positive movement toward goals Innovation and
change Search for problem solutions Creativity
and quick adaptation to environmental changes
Disruption Interference with
activities Coordination difficulties Chaos
Low
Dysfunctional
High
Situation III
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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
• Goal Differences
• Mutually exclusive goals
• Perceptual Differences
• Status incongruency
• Inaccurate perceptions

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Group A
Types of Interdependence
POOLED
Goals
Group B
Group A
Group B
SEQUENTIAL
Goals
Group A
Group B
Goals
Goals
RECIPROCAL
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Problems Related to Goal Differences

• Groups with mutually exclusive goals can find
  themselves in conflict
• Allocating limited resources between groups
  increases mutual dependencies and differences in
  goals are more apparent
• Different time horizons needed by groups to
  achieve their goals can be a source of conflict

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Minimizing Perceptual Bases for Conflict

• Communicate effectively!
• Help develop a groups social sensitivity.
• Emphasize behavioral flexibility.
• Communicate effectively!

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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
Allowing other group to win
Working together to solve problems
HIGH
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
HIGH
LOW
INTERNAL FOCUS
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When to Use the Different Conflict-Resolution
Approaches (1 of 2)

• Dominating approach use on important issues
• where you are certain you are right, and
• where the benefit of a resolution outweighs the
  drawback of possible negative feelings by the
  dominated group
• Accommodating approach use in disputes that are
  of far greater importance to the other group than
  they are to your group
• Problem-solving approach use when both groups
  are willing to invest time and effort to reach a
  resolution that maximizes everyones outcome

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When to Use the Different Conflict-Resolution
Approaches (2 of 2)

• Avoiding approach use primarily as a temporary
  expedient to buy more time
• Compromising approach use as a middle ground
• Good backup approach when other approaches fail
  to resolve the issue

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Stimulating Constructive Intergroup Conflict

• Bringing outside individuals into the group
• Altering the organizations structure
• Stimulating competition
• Making use of programmed conflict

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Negotiations

• Negotiations a process in which two or more
  parties attempt to reach acceptable agreement in
  a situation characterized by some level of
  disagreement
• In an organizational context, negotiation may
  take place
• 1. between two people
• 2. within a group
• 3. between groups
• 4. over the Internet

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Elements of Negotiations

• Some disagreement or conflict exists
• There is some degree of interdependence between
  the parties
• The situation must be conducive to opportunistic
  interaction
• There exists some possibility of agreement

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Win-Lose Negotiating

• Classical view that negotiations are a form of a
  zero-sum game
• i.e., to whatever extent one party wins
  something, the other party loses
• Also known as distributive negotiating
• i.e., the process of distributing scarce
  resources

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Win-Win Negotiating

• A positive-sum approach
• i.e., situations where each party gains without a
  corresponding loss for the other party
• Does not mean that everyone gets everything they
  wanted
• An agreement has been achieved which leaves all
  parties better off than they were prior to the
  agreement

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Negotiation Tactics
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Variables That Affect Negotiations

• There is no one best way to negotiate
• The selection of specific negotiation strategies
  and tactics depends on
• 1. The nature of the issues being negotiated
• 2. The environment in which the negotiations take
  place
• 3. The nature of the outcomes desired from the
  negotiations

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Negotiations Desired Outcomes

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

• Relationship Outcomes
• To 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

• Obtaining substantial results
• Influencing the balance of power
• Promoting a constructive climate
• Obtaining 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
• Showing knowledge about a persons culture is one
  way to establish rapport and respect with another
  negotiator

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Suggestions to Improve Negotiations(1 of 2)

• Begin the bargaining with a positive overture and
  then reciprocate the opponents concessions
• Concentrate on the negotiation issues and the
  situational factors, not on the opponent or his
  or her characteristics
• Look below the surface of your opponents
  bargaining and try to determine his or her
  strategy

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Suggestions to Improve Negotiations(2 of 2)

• Do not allow accountability to your constituents
  or surveillance by them to spawn competitive
  bargaining
• If you have power in a negotiation, use it to
  guide the opponent toward an agreement
• Be open to accepting third-party assistance
• In a negotiation, attend to the environment and
  be aware that the opponents behavior and power
  are altered by it

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Lets try discussion questions?

• What is the difference between functional and
  dysfunctional conflict?
• Can dysfunctional conflict be changed to
  functional conflict?