After reading this chapter, you should be able to answer the following questions: What is the nature of conflict in organizations? How can conflict be managed? What is the nature of negotiation in organizations? What are alternative strategies for negotiation?
Chapter 10 Conflict and Negotiation Don’t neglect the power of “yes” Chapter 10 Study Questions What is the nature of conflict in organizations? How can conflict be managed? What is the nature of negotiation in organizations? What are alternative strategies for negotiation? Copyright © 2014 John Wiley & Sons, 10-2 What is the nature of conflict in organizations? Conflicts occur whenever disagreements exist in a social setting or when emotional antagonisms create friction between individuals or groups • Substantive A fundamental disagreement over ends or goals to be pursued, and the means for their accomplishment • Emotional Interpersonal difficulties that arise over feelings of anger, mistrust, dislike, fear, resentment, and the like Copyright © 2014 John Wiley & Sons, 10-3 What is the nature of conflict in organizations? "If I had a formula for bypassing trouble, I would not pass it round. Trouble creates a capacity to handle it I don't embrace trouble; that's as bad as treating it as an enemy …But I do say meet it as a friend, for you'll see a lot of it and had better be on speaking terms with it." —Oliver Wendell Holmes Copyright © 2014 John Wiley & Sons, 10-4 Copyright © 2014 John Wiley & Sons, 10-5 What is the nature of conflict in organizations? Functional conflict • Results in constructive, positive benefits to individuals, the team, or the organization Dysfunctional conflict • Destructive to an individual or team Copyright © 2014 John Wiley & Sons, 10-6 Figure 10.1 Functional and Dysfunctional Conflict Copyright © 2014 John Wiley & Sons, 10-7 What is the nature of conflict in organizations? Potential benefits of functional conflict • Brings important problems to the surface so they can be addressed • Causes decisions to be carefully considered • Increases amount of information used for decision making • Provides opportunities for creativity Copyright © 2014 John Wiley & Sons, 10-8 What is the nature of conflict in organizations? Potential outcomes of dysfunctional conflict • Diverts energies • Hurts group cohesion; • Promotes interpersonal hostilities • Creates a negative environment • Can decrease performance and job satisfaction • Can contribute to absenteeism and job turnover Copyright © 2014 John Wiley & Sons, Inc 10-9 What is the nature of conflict in organizations? Culture and conflict • Culture and cultural differences must be considered for their conflict potential • Sensitivity and respect when working across cultures can often tap the performance advantages of both diversity and constructive conflict Copyright © 2014 John Wiley & Sons, 10- What is the nature of negotiation in Substance goals organizations? Outcomes that relate to “content” issues under • negotiation Relationship goals • Outcomes that relate to how well people involved in the negotiation and any constituencies they may represent are able to work with one another once the process is concluded Copyright © 2014 John Wiley & Sons, 10- What is the nature of negotiation in organizations? Effective negotiation factors: • Quality – negotiation results offer a “quality” agreement that is wise and satisfactory to all sides • Harmony – negotiation is “harmonious” and fosters rather than inhibits good interpersonal relations • Efficiency - negotiation is “efficient” and no more time consuming or costly than absolutely necessary Copyright © 2014 John Wiley & Sons, 10- What is negotiation? Ethical aspects of negotiation • The motivation to behave ethically in negotiations is put to the test by each party’s desire to “get more” than the other from the negotiation and/or by a belief that there are insufficient resources to satisfy all parties Copyright © 2014 John Wiley & Sons, 10- What is the nature of negotiation in organizations? Copyright © 2014 John Wiley & Sons, 10- What are the alternative strategies for negotiation? Distributive negotiation • Focuses on positions staked out or declared by the conflicting parties Copyright © 2014 John Wiley & Sons, Integrative negotiation • Sometimes called principled negotiation • Focuses on the “merits” of the issues 10- What are the alternative strategies for Distributive negotiation negotiation? • “Who is going to get this resource?” • “Hard” distributive negotiation (win/lose) Each party holds out to get its own way • “Soft” distributive negotiation (lose/lose) One party tries to find the ways to meet the other’s desires Copyright © 2014 John Wiley & Sons, 10- What are the alternative strategies for Bargaining zone negotiation? Range between one party’s minimum reservation point • and the other party’s maximum reservation point Copyright © 2014 John Wiley & Sons, 10- Figure 10.4 The bargaining zone in classic two-party negotiation Copyright © 2010 John Wiley & 1-36 What are the alternative strategies for Integrative negotiation negotiation? “How can the resource best be used?” • • Less confrontational than distributive negotiation • Allows a broader range of alternative solutions to be considered ã A win-win solution is possible Copyright â 2014 John Wiley & Sons, 10- What are the alternative strategies for Foundations of Integrative negotiation negotiation? Attitudinal Willingness to trust, share information, and ask concrete questions Copyright © 2014 John Wiley & Sons, 10- What are the alternative strategies for negotiation? Behavioral Separate the people from the problem Don’t allow emotional considerations to affect the negotiations Focus on common interests rather than solutions Avoid premature judgments Keep the identification of alternatives separate from their evaluation Judge possible agreements by set criteria or standards Copyright © 2014 John Wiley & Sons, 10- What are the alternative strategies for Informational negotiation? Each party must know what he or she will if an agreement can’t be reached Each party must identify and understand their personal interest in the situation Each party must know what is really important to them in the case at hand, and they must come to understand the relative importance of the other party’s interests Copyright © 2014 John Wiley & Sons, 10- Common negotiation pitfalls Copyright © 2014 John Wiley & Sons, 10- What are the alternative strategies for Third party negotiations negotiation? A neutral third party works with persons involved in a • negotiation to help them resolve impasses and settle disputes Arbitration A neutral third party acts as a “judge” and has the power to issue a decision that is binding on all parties Copyright © 2014 John Wiley & Sons, 10-42 What are the different strategies involved in negotiation? Mediation • A neutral third party tries to engage the parties in a negotiated solution through persuasion and rational argument Copyright © 2014 John Wiley & Sons, 10- ... reservation point Copyright © 2014 John Wiley & Sons, 1 0- Figure 10.4 The bargaining zone in classic two-party negotiation Copyright © 2010 John Wiley & 1-3 6 What are the alternative strategies for... individual or team Copyright © 2014 John Wiley & Sons, 1 0-6 Figure 10.1 Functional and Dysfunctional Conflict Copyright © 2014 John Wiley & Sons, 1 0-7 What is the nature of conflict in organizations?... Sons, 1 0- How can conflict be managed? Conflict resolution • Situation in which the underlying reasons for a given destructive conflict are eliminated Copyright © 2014 John Wiley & Sons, 1 0- Stages