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  1. 14 Chapter Managing Conflict and Negotiation • Conflict: A Modern Perspective • Types of Conflict • Managing Conflict • Negotiation

  2. Conflict: A Modern Perspective • Conflict occurs when one party perceives its interests are being opposed or set back by another party • It is ever-present in modern life • Sources of conflict can be real or imagined • Conflict often carries a lot of emotional baggage: fear of losing or fear of change quickly raises the emotional stakes in a conflict © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

  3. Functional Conflictserves organization’s interests Is commonly referred to as constructive or cooperative conflict Dysfunctional Conflict threatens organization’s interests Wastes the organization’s resources and is counterproductive Functional vs. Dysfunctional Conflict Functional or Dysfunctional is determined by whether the organization’s interests are served © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

  4. Agreement Equitable and fair agreements are the best Stronger Relationships To build bridges of goodwill and trust for future use Learning There is no substitute for hands-on practice Desired Outcomes of Conflict © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

  5. Personality Conflict Given the many possible combinations of personality traits, it is clear why personality conflicts are inevitable A personality conflict is an interpersonal opposition based on personal dislike, disagreement, and/or different styles Intergroup Conflict Conflict among work groups, teams and departments is a common threat to organizational competitiveness Intergroup cohesiveness – a “we feeling” binding group members together – can be a good or bad thing (smooth running team or result in groupthink which limits critical thinking) Types of Conflict © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

  6. Minimizing Intergroup Conflict Level of perceived intergroup conflict tendsto increase when: Recommended actions: • Work to eliminate specific negative interactions between groups • Conduct team building to reduceintragroup conflict and prepare employees for cross-functional teamwork • Encourage personal friendships and good working relationships across groups and departments • Foster positive attitudes toward members of other groups • Avoid or neutralize negative gossip across groups or departments • Conflict within the group is high • There are negative interactions between groups • Influential third-party gossip about other group is negative © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

  7. Behavior Rank Be a good listener 1 Be sensitive to the needs of others 2 Tie Be cooperative rather than overly competitive 2 Advocate inclusive (participative) leadership 3 Compromise rather than dominate 4 Build rapport through conversations 5 Be compassionate and understanding 6 Avoid conflict by emphasizing harmony 7 Nurture others (develop and mentor) 8 Ways to Build Cross-Cultural Relationships © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

  8. Stimulating Functional Conflict Devil’s Advocacy The Dialectic Method 5 Alternative Styles for Handling Dysfunctional Conflict Integrating (Problem Solving), Obliging (Smoothing), Dominating (Forcing), Avoiding and Compromising Third-Party Interventions Conflict Triangles Alternative Dispute Resolution Managing Conflict © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

  9. Stimulating Functional Conflict: Devil’s Advocacy • A proposed course of action is generated • A devil’s advocate is assigned to critique the proposal • The critique is presented to key decision makers • Any additional information relevant to the issues is gathered • The decision to adopt, modify, or discontinue the proposed course of action is taken • The decision is monitored © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

  10. Stimulating Functional Conflict: The Dialectic Method • A proposed course of action is generated • Assumptions underlying the proposal are identified • A conflicting counterproposal is generated based on different assumptions • Advocates of each position present and debate merits of their proposals before key decision makers • The decision to adopt, either position or some other position is taken • The decision is monitored © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

  11. 5 Alternative Styles for Handling Dysfunctional Conflict Integrating Obliging High Compromising Concern for Others Dominating Avoiding Low High Low Concern for Self © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

  12. 1. Integrating (Problem Solving) Is appropriate for complex issues plagued by misunderstanding Is is inappropriate for resolving conflicts rooted in opposing value systems Its primary strength is its longer lasting impact because it deals with the underlying problem rather than merely with symptoms However, it is very time consuming 5 Alternative Styles for Handling Dysfunctional Conflict © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

  13. 2. Obliging (Smoothing) Involves playing down differences while emphasizing commonalities May be appropriate when it is possible to eventually get something in return Is inappropriate for complex or worsening problems Its primary strength is that it encourages cooperation However, it’s a temporary fix that fails to confront the underlying problem 5 Alternative Styles for Handling Dysfunctional Conflict © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

  14. 3. Dominating (Forcing) Shows a high concern for self and low concern for others Encourages “I win, you lose” tactics Is appropriate when an unpopular solution must be implemented, the issue is minor or a deadline is near Is inappropriate in an open and participative climate Its primary strength is speed However, it often breeds resentment 5 Alternative Styles for Handling Dysfunctional Conflict © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

  15. 4. Avoiding May involve either passive withdrawal from the problem or active suppression of the issue Is appropriate for trivial issues or when the costs of confrontation outweigh the benefits of resolving the conflict Is inappropriate for difficult and worsening problems Its primary strength is that it buys time in unfolding or ambiguous situations However, it only provides a temporary fix that sidesteps the underlying problem 5 Alternative Styles for Handling Dysfunctional Conflict © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

  16. 5. Compromising A give-and-take approach involving moderate concern for both self and others Is appropriate when parties have opposite goals or possess equal power Is inappropriate when overuse would lead to inconclusive or delayed action Its primary strength is that the democratic process has no losers However, it only provides a temporary fix that can stifle creative problem solving 5 Alternative Styles for Handling Dysfunctional Conflict © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

  17. What Is Your Primary Conflict-Handling Style? This is a self-assessment P511 of your text Complete the questionnaire We’ll discuss questions on p512 as a class Class Activity © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

  18. Conflict Triangles When two people are having a problem and instead of addressing the problem, one of them gets a third party involved Alternative Dispute Resolution (ADR) Avoiding costly lawsuits by resolving conflicts informally or through mediation or arbitration Third-Party Interventions © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

  19. Facilitation A third party, usually a manager, informally urges disputing parties to deal direction with each other in a positive manner Conciliation A neutral third party informally acts as a communication conduit between disputing parties Peer review A panel of trustworthy co-workers hears both sides of a dispute in an informal and confidential meeting Alternative Dispute Resolutions © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

  20. Ombudsman Someone who works for the organization, and is widely respected, hears grievances on a confidential basis and attempts to arrange a solution Mediation A trained, third-party neutral actively guides the disputing parties in exploring a solution; the mediator does not render a decision Arbitration A trained, third-party neutral, makes a decision regarding the dispute Alternative Dispute Resolutions © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

  21. Negotiation • Negotiationgive-and-take process between conflicting interdependent parties • 2 Types of Negotiation • Distributive negotiation:Single issue; fixed-pie; win-lose • Integrative negotiation:More than one issue; win-win • Ethical pitfalls include telling lies, hiding key facts, and engaging gin other potentially unethical tactics © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

  22. Negotiation Group Activity • Group Exercise • Negotiating the Price of a Used Car • Attempt a WIN-WIN solution • Follow the directions on the handout • We’ll talk about the discussion questions as a class © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill