Managing Conflict and Negotiations

1. Chapter 11 Managing Conflict and Negotiations

2. 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.

3. A Contemporary Perspective on Conflict • Conflict is defined in terms of the Effect it has on the Organization: • Functionalconflict • Dysfunctional conflict

4. 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.

5. 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.

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

7. 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 High Dysfunctional Low

8. Stages of Conflict Perceived Conflict Intergroup Conflicts develop over a period of Time Felt Conflict Manifest Conflict

9. What Causes Intergroup Conflict? Work Interdependence • Pooled interdependence • Sequential interdependence • Reciprocal interdependence

10. Group A POOLED Goals Types of Interdependence Group B SEQUENTIAL Group A Group B Goals Group A RECIPROCAL Goals Goals Group B

11. What Causes Intergroup Conflict? Goal Differences • Mutually Exclusive Goals • Limited Resources • Different Time Horizons

12. What Causes Intergroup Conflict? Perceptual Differences • Status Incongruency • Inaccurate Perceptions • Different Perspectives

13. 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 The Consequences of Dysfunctional Intergroup Conflict

14. Managing Intergroup Conflict Through Resolution Accommodating Dominating Compromising Avoiding Problem Solving

15. 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

16. Organizational Encounter(p. 320) How do You handle Conflict? • Discuss your results with your group. • Report the various styles from your group.

17. 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.

18. When to Use the Different Conflict-Resolution Approaches • Accommodating– for disputes of much greater importance to the other group than to your group.

19. When to Use the Different Conflict-Resolution Approaches • Problem-Solving– when both groups are willing to invest time and effortto reach a resolution maximizing everyone’s outcome. • Avoiding– Primarily a temporary measureto buy more time.

20. When to Use the Different Conflict-Resolution Approaches • Compromising– a middle ground • Good backup approach when other approaches fail to resolve the issue.

21. Overview of Intergroup Conflict Exhibit 11.4 (p. 322) Review of Positive Consequences of Functional Conflict and Negative Consequences of Dysfunctional Conflict

22. Global OB (p. 323) Using Japanese and American perspectives as an example, why is intercultural conflict resolution so complex?

23. Stimulating Constructive Intergroup Conflict • Bring “Outsiders” into the group • Alter the organization’sStructure • Stimulate Competition • Make use of “Programmed” Conflict • Devil’s Advocacy

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

25. You Be the Judge (p.325) How should you handle “low-balling” in salary negotiations?

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

27. Win-Lose Negotiating • Classical view thatnegotiationsare a Zero-Sum Game: • To whatever extentOne Party Winssomething, theOther Party Loses. • Also known asDistributive Negotiating • The process of“Distributing” Scarce Resources.

28. 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.

29. Negotiation Tactics 2. The Nibble 1. Good-Guy / Bad-Guy Team 5. Splitting the Difference 4. Power of Competition 3. Joint Problem- Solving

30. 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.

31. Substantive Outcomes Have to do with how the specific issueissettled. 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. Negotiations:Desired Outcomes

32. Mastenbroek’s Model to Increase Negotiating Effectiveness: Key Activities • Obtain Substantial Results • Influence the Balance of Power • Promote a Constructive Climate • Obtain Procedural Flexibility

33. Using Third-Party Negotiations 2. Arbitration 1. Mediation 4. Consultation 3. Conciliation

34. 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.

35. Improving Negotiations • Begin bargaining with a positive overture and reciprocate the opponent’s concessions. • Concentrate on the negotiation issues and situational factors, not on the opponent. • Look below the surface of your opponent’s bargaining -- try to determine the strategy.

36. Improving Negotiations • Do not allowconstituents to create 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!

38. Case 11.1 – Conflict at Walt Disney • Describe the conflict between Eisner and the Weinsteins, the 2 Board Members (Disney & Gold), and Steve Jobs. Was it Functional? Dysfunctional? Explain. • Was the conflict between Eisner and Jobs: Perceived? Felt? Manifest?

39. Case 11.1 – Conflict at Walt Disney • Which conflict resolution approaches did Eisner and Iger use: Dominating, Problem Solving, Avoiding, or Accommodating? Explain. • Did Iger’s less confrontational approach to conflict help the company survive a major economic recession?