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Write-up On Conflicts & Negotiations Group Process:

Group process refers to as how an organization's members work together to get things done. Group process can occur from within the group, outside of the group and anytime of year. Effective organizations take a close look at how members work together, which roles they fill and whether members are contributing equally.

Conflict can be defined as a process that begins when one party perceives that another party has negatively affected or is about to negatively affect something that the first party cares about.

Views on Conflict:
Traditional View: A traditional approach to conflict assumes that all conflict was bad. Conflict was viewed negatively and it was used synonymously with such terms as violence, destruction etc. Conflict by definition was harmful and was to be avoided. This view was prevalent in 1930s and 1940s. Human Relations View: The human relationship view argued that conflict was a natural occurrence in all groups and organization. Since conflict was in evitable, this view advocated acceptance of conflict. The human relation view dominated conflict theory from late in 1940s through the mid 1970s. Integrationist View: This approach encourages conflicts on the grounds that a harmonious, peaceful, tranquil, cooperative group is prone to becoming static, apathetic and nonresponsive to needs for change and innovation, therefore conflicts are necessary for any organization.

Conflict Process


Write-up On Conflicts & Negotiations

Stage I Potential opposition and incompatibility

Stage II Cognition and personalization

Stage III Intentions

Stage IV Behaviour

Stage V Outcomes

Antecedent conditions Communication Structure Personal variables

Perceived conflict

Conflict handling intentions Competing Collaborating Compromising Avoiding Accommodating

Over conflict Partys behaviour Others reaction

Increased group performance

Felt conflict

Decreased group performance


Write-up On Conflicts & Negotiations

There are mainly 5 stages in a conflict process which are as follows: 1. Stage 1: Potential opposition or incompatibility: The first stage of conflict tells about those conditions that create opportunities for conflict to arise. They do not exactly lead to conflict directly but one of this conditions necessary if conflict has to start. This stage has been further sub-divided into 3 categories: a) Communication: Communication can be source of conflict. The conflict can arise from semantic difficulties, misunderstanding of words and noise in the communication channel. b) Structure: The structure is used in this context to include variables such as size, degree of specialization in the task assigned to group members, jurisdiction clarity, member goal compatibility, leadership styles, reward systems and the degree of dependence between groups. c) Personal variables: This variable includes the individual value that the person has and the personality characteristics that account for individual differences. There are some evidences which clearly indicates that certain personality types like people who are highly authoritarian and dogmatic have high potential to lead themselves to conflict 2. Stage 2: Cognition and personalization: If the conditions as explained by stage hampers heavily something one party cares about, then the stage 2nd is actualized. This stage is further subdivided into 2 parts that are Perceived conflict and Felt conflict. 3. Stage 3: Intentions: Intentions intervene between peoples perception and emotions and their unconcealed behaviour. This is further subdivided into 5 parts: a) Competing: A desire to satisfy once interest regardless of the impact on the group in front. b) Collaborating: It is a situation in which groups conflicting desires to satisfy fully the concerns of each other. c) Avoiding: It is the desire to pull back, run away or suppress the conflict. d) Accommodating: The willingness of one group present in conflict to place opponents interest above its own. e) Compromising: a situation in which all the groups in conflict is willing to give up something.


Write-up On Conflicts & Negotiations

4. Stage 4: Behaviour:

Annihilatory conflict

Over efforts to destroy other parties Aggressive physical attacks Threats and ultimatums Assertive and verbal attacks Over questioning or challenging of others Minor disagreements or misunderstanding

No conflict 5. Stage 5: Outcomes: The occurrence of different actions between the conflicting groups results in consequences. These consequences subdivided as Functional or Dysfunctional. The Functional outcomes act as a force to increase the group performance whereas dysfunctional conflicts act as destructive consequences of conflicts on a groups performance.


Write-up On Conflicts & Negotiations NEGOTIATIONS

Introduction:It can be defined as a process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for these goods and services. The terms negotiation and bargaining can be used interchangeably. It involves the interaction of almost everyone in groups and organizations. Some examples can be managers negotiating with subordinates, peers and bosses; sales persons negotiating with customers; purchasing agents negotiating with suppliers; labour - management negotiations etc.

Strategies in Negotiation:Generally there are two approaches in negotiation 1) Distributive Bargaining 2) Integrative Bargaining Distributive Bargaining: It is an approach in which negotiation seeks to divide up fixed amount of recourses and a win-lose situation. Integrative Bargaining: It is an approach in which negotiation seeks one or more settlements that can create winwin situation and variable amount of resources are to be divided.

Negotiation processes:It consists of five major steps: 1) Preparation and Planning: Before starting negotiation one needs to do homework. The basic questions arising may include questions like, whats the nature of the conflict. ; Whats the history leading up to this negotiation? ; Whos involved and what are their perceptions of the conflicts? ; What are the goals and what is wanted from the negotiation? It includes the formation of a strategy BATNA (Best Alternative to a Negotiated Agreement) and determines the lowest acceptable value to an individual for a negotiated agreement. 2) Definition of Ground Rules: After completing planning and developing strategy, ground rule and procedures are to be defined with the other party over negotiation. Who will do the negotiating? ; Where will it take place? ; What time constraints, if any, will apply? are the various questions which have to be taken into account. 3) Clarification and Justification: After exchanging initial positions, both parties will explain, amplify, clarify, bolsters and justify the original demands. It is an opportunity for educating and informing each other on the issues, why they are important, and how each arrived at their initial demands. 4) Bargaining and Problem Solving: The essence of the negotiation process is the actual giveand-take in trying to hash out an agreement. Concessions need to be made by both parties.


Write-up On Conflicts & Negotiations

5) Closure and Implementation: This is the final step in the negotiation process which involves formalization of the agreement that has been worked out and developing any procedures that are necessary for implementation and monitoring.

Third-Party Negotiations:
Sometimes, individuals or group representatives reach a condition of stalemate and are unable to resolve their differences through direct negotiations. In such cases, they may resort to a third party to help them find a solution. There are four basic third party roles in negotiations: a) b) c) d) Mediator Arbitrator Conciliator Consultant

Cultural Differences in Negotiating Strategies:

There are differences in the approach to and handling of negotiations in different countries. For example, Americans rely on facts and figures and use logic as a negotiating strategy whereas Arabs appeal to the emotional aspects of an issue. Research also indicates that Russians have difficulty making concessions of any sort, in contrast to Americans who are impatient to reach to a resolution. French take a long time to negotiate and reach a conclusion.


Ambani Vs Ambani
The Ambani brothers are at it again and this time its gas. However unlike their previous battles the outcome of this one seems to involve pretty much the entire country. This took place before the Mukesh-Anil split. However, after the split Anil got RNRL and Mukesh retained RIL and this division of interest seems to be the where it all started. The entire riff raff revolves around a MoU signed by Mukesh and Anil soon after their split. The MoU dated 18th June 2005 entitles the Anil Ambani group to 28 mmscd of gas from the KG Basin. Additionally it also states that the in case the contract between NTPC and RIL for the supply 12 mmscd gas did not materialize, the Anil Ambani group would be entitled to this as well.

Potential Opposition or Incompatibility:

Mukesh Ambani was always the shy one, even in school. He had very few friends and avoided coming to the limelight. This brother always stayed away from public life and was later catapulted into the growing operations of the Reliance Empire. Probably he was the kind of person who liked to stay inside his coupe (with very few friends) and enjoyed the power he wielded from that place. On the contrary, Mukesh Ambanis younger brother was poles apart from what he was. He was flamboyant, brash and loved the centre stage. He was always in the limelight, in the media news. He was selected as the MTV Youth Icon for the year 2003. He was always seen interacting with the right people, networking constantly. He was indeed the public face of the Ambanis. His impeccable social skills, wit, selling-ice-to-the-Eskimo attitude made not only him very popular but also served the interests of the company.

The role of the mother:

The mother Kokilaben has being playing principal mediator between the brothers right through the conflict and was instrumental in signing of the MoU. The MoU dated 18th June 2005 States Kokilaben recognizes that a long-term, stable source of gas from RIL, which has the largest find of gas, was absolutely essential for the growth plans of the Anil Ambani group, and in order to enable Anil to carry REL to even greater heights. Kokilaben has, therefore, specially stressed and impressed upon Mukesh (that he) shall personally ensure that at the time of finalization of the binding gas supply agreement the terms provide the required comfort and stability in these agreements.


Write-up On Conflicts & Negotiations

Sun Wockhart cadila