Conflict and Negotiation in the Workplace

1. Conflict and Negotiationin the Workplace

2. Conflict at Microsoft • Various sources conclude that Microsoft is riddled with dysfunctional conflict that could soon hamper its ability to remain competitive. • “Pretty much across the board people are saying that Microsoft is dysfunctional,” concludes one industry analyst. “They are not cooperating across business groups.”

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

4. Conflict Perceptions Manifest Conflict Conflict Outcomes Conflict Emotions The Conflict Process Sources of Conflict Conflict Escalation Cycle

5. Organizational Conflict Outcomes • Potential benefits • Improves decision making • Strengthens team dynamics • Dysfunctional outcomes • Diverts energy and resources • Weakens knowledge management • Increases frustration, job dissatisfaction, stress, turnover and absenteeism

6. Task vs. Socioemotional Conflict • Constructive (task-related) conflict • Conflict is aimed at issue, not parties • Helps recognize problems, identify solutions, and understand the issues better • Potentially healthy and valuable • Socioemotional (relationship) conflict • Conflict viewed as a personal attack • Introduces perceptual biases • Distorts information processing

7. Minimizing Socioemotional Conflict • Emotional intelligence • Better able to regulate emotions • View others’ emotions as information • Cohesive team • More trust and latitude • Understand other team members better • Motivated to minimize escalating conflict • Supportive team norms • Appreciate honest dialogue without personal affront • Some norms might discourage displaying negative emotions

8. more 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 • Higher risk that parties interfere with each other

9. Sources of Conflict (con’t) 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

10. NHLPA Changes Conflict Styles Outgoing National Hockey League Players’ Association (NHLPA) boss Bob Goodenow (left) was called the Darth Vader of hockey, because of his forcing style of conflict management with NHL owners. Taking his place is Ted Saskin (right), whose diplomatic problem-solving conflict resolution style couldn’t be more different from Goodenow’s.

11. Conflict Management Styles High Forcing Problem-Solving Assertiveness Compromising Avoiding Yielding High Low Cooperativeness

12. Choosing the Best Conflict Style • Problem solving • Often best because only style that seeks an optimal outcome • Doesn’t work when interests perfectly opposing • Difficult when parties lack trust/openness • Avoiding • Best when socioemotional conflict is high • Problem: doesn’t resolve conflict source, so may produce long-term frustration • Yielding • May be necessary when: • the other party has substantially more power • the issue is less important to you as to the other party • Problem: Other party develops higher future expectations

13. Choosing the Best Conflict Style(con’t) • Forcing • May be necessary when: • you know you are correct & dispute requires quick solution • the other party would take advantage of more cooperative strategies • Problem: Fuels socioemotional conflict • Compromising • Best when • little hope for mutual gain • both parties have equal power • both parties need to settle differences quickly • Problem: “Good enough” solution that overlooks better solutions

14. Emphasizing Superordinate Goals • Emphasizing common objectives rather than conflicting sub-goals • Reduces goal incompatibility and differentiation

15. Toyota Drums Out Differences Employees at Toyota Motor Sales U.S.A. are drumming out their differences in the car company’s drum room. Typically in groups of 15 to 50 from one department, employees bang on various percussion instruments. Most groups soon find a common beat without any guidance or conductor. Edward Carreon/Newhouse News Service

16. Reducing Differentiation • Remove sources of different values and beliefs • Move employees around to different jobs, departments, and regions • Other ways to reduce differentiation: • Common dress code/status • Common work experiences Edward Carreon/Newhouse News Service

17. Better 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

18. Other Ways to Manage Conflict • Reduce Task Interdependence • Dividing shared resources • Combine tasks • Use buffers • Increase Resources • Duplicate resources • Clarify Rules and Procedures • Clarify resource distribution • Change interdependence

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

20. Situational Influences on Negotiation • Location • Physical setting • Time passage and deadlines • Audience © Corel Corp. With permission.

21. Effective Negotiation Behavior • Preparation and goal setting • Gathering information • Communicating effectively • Making concessions © Corel Corp. With permission.

22. Types of Third Party Intervention High Mediation Inquisition Level of Process Control Arbitration Low Level of Outcome Control High

23. Conflict and Negotiationin the Workplace