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CHAPTER 15 - CONFLICT AND NEGOTIATION Definition of Conflict Conflict - 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 Range of conflict - incompatibility of goals, differences over interpretations of facts, disagreements based on behavioral expectations etc.. Transitions in conflict thought Traditional view - Conflict must be avoided - that it indicates a malfunctioning within the group Human relations view - argues that conflict is a natural and inevitable outcome in any group and that it need not be evil, but rather has the potential to be a positive force in determining group performance Interactionist view - absolutely necessary - conflict can be a positive force in a group, and is essential to perform effectively 1. Traditional view Conflict was viewed negatively, as violence, destruction and irrationality to reinforce its negative connotation This is the belief that all conflict is harmful and must be avoided 2. Human relations view Belief that conflict is a natural and inevitable outcome in any group Acceptance of conflict Proponents rationalized its existence - it cannot be eliminated, and there are even times when conflict may benefit a groups performance 3. Interactionist view Encourages conflict on the grounds that a harmonious, peaceful, tranquil and cooperative group is prone to becoming static, apathetic and non-responsive to needs for change and innovation Functional conflict - conflict that supports the goals of the group and improves its performance Dysfunctional conflict - conflict that hinders group performance Task conflict - conflicts over content and goals of the work Relationship conflict - conflict based on interpersonal relationships Process conflict - conflict over how work gets done

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The Conflict Process Stage 1 - Potential Opposition or Incompatibility Presence of conditions that create opportunities for conflict to arise. They need not lead directly to conflict, but one of these conditions is necessary if conflict is to surface

a) Communication Research has found that the potential for conflict increases when either there is too little or too much communication taking place. An increase in communication is functional up to a point, whereupon it is possible to over-communicate, with a resultant increase in the potential for conflict. The channel chosen for communicating can have an influence on stimulating opposition b) Structure Research indicates that size and specialisation act as forces to stimulate conflict The larger the group and the more specialised activities, the greater the likelihood of conflict Tenure and conflict are related Ambiguity in defining where responsibility for actions lies, the greater the potential for conflict to emerge There is some indication that a close style of leadership - tight and continuous observation with general control of others behaviours - increases conflict potential, but the evidence isnt particularly strong Too much reliance on participation can also create conflict c) Personal Variables This includes personality, emotions and values Differing values are the best explanation of diverse issues such as prejudice, disagreements over ones contribution to the group and the rewards one deserves Stage 2 - Cognition and Personalization This stage is important because it is where conflict issues tend to be defined. This is the place where the parties decide what the conflict is about Outcomes to solve this problem is assessed in this stage Perceived conflict - awareness by one or more parties of the existence of conditions that create opportunities for conflict to arise Felt conflict - emotional involvement in a conflict reacting anxiety, tension, frustration or hostility Emotions play a major role in shaping perceptions. Stage 3 - Intentions Intentions intervene between peoples perceptions and emotions and their overt behavior. These intentions are decisions to act in a given way One has to infer the others intent to know how to respond to that others behaviour. Figure 15.2 - Dimensions of conflict-handling intentions a) Competing - a desire to satisfy ones interests, regardless of the impact on the other party to the conflict b) Collaborating - a situation in which the parties to a conflict each desire to satisfy fully the concerns of all parties c) Avoiding - the desire to withdraw from or suppress a conflict d) Accommodating - the willingness of one party in a conflict to place the opponents

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interests above his or her own e) Compromising - a situation in which each party to a conflict is willing to give up something Stage 4 - Behaviour This is the stage where conflict become visible. This stage includes the statements, actions and reactions made by the conflicting parties. They are usually overt attempts to implement each partys intentions Conflict management - the use of resolution and stimulation techniques to achieve the desired level of conflict Table 15.1 - Conflict resolution techniques and conflict stimulation techniques

Conflict resolution techniques


1. Problem solving Face to face meeting of the conflicting parties for the purpose of identifying the problem and resolving it through open discussion Creating a shared goal that cannot be attained without the cooperation of each of the conflicting parties When a conflict is caused by the scarcity of a resource - expansion of the resource can create a win-win situation Withdrawal from, or suppression of, the conflict Playing down differences while emphasising common interests between the conflicting parties Each party to the conflict gives something of value Management uses its formal authority to resolve the conflict and then communicates its desires to the parties involved Using behavioral change techniques such as human relations training to alter attitudes and behaviours that cause conflict Changing the formal organisation structure and the interaction patterns of conflicting parties through job redesign, transfers, creation of coordinating positions and the like Using ambiguous or threatening messages to increase conflict levels Adding employees to a group whose backgrounds, values, attitudes or managerial styles differ from those of present members Realigning work groups, altering rules and regulations, increasing interdependence, and making similar structural changes to disrupt the status quo Designating a critic to purposely argue against the majority positions held by the group

2. Superordinate goals

3. Expansion of resources

4. Avoidance 5. Smoothing 6. Compromise 7. Authoritative command

8. Altering the human variable 9. Altering the structural variables

10. Communication 11. Bringing in outsiders

12. Restructuring the organisation

13. Appointing a devils advocate

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Stage 5 - Outcomes a) Functional outcomes Conflict is constructive when it improves the quality of decisions, stimulates creativity and innovation, encourages interest and curiosity among group members, provides the environment of self-evaluation and change Conflict is an antidote for groupthink. It doesnt allow the group to passively rubber stamp decisions that may be based on weak assumptions Conflict challenges the status quo and therefore furthers the creation of new idea, promotes reassessment of group goals and activities, and increases the probability that the group will respond to change Examples - page 511 Case - 512 Can create greater productivity

b) Dysfunctional outcomes Uncontrolled opposition breeds discontent, which acts to dissolve common ties, and eventually leads to the destruction of the group Retarding of communication, reductions in group cohesiveness, and subordination of group goals to the primacy of infighting among members Examples - 513 c) Creating Functional Conflict When organisations reward dissent and punish conflict avoiders. NEGOTIATION A process in which 2 or more parties exchange goods or services and attempt to agree on the exchange rate for them Bargaining strategies Two approaches to negotiation including: 1. Distributive Bargaining Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation Its most identifying feature is that it operates under zero-sum conditions. Meaning, any gain I make is at your expense, and vice versa Essence - Negotiating over who gets what shared of a fixed pie. Fixed pie - the belief that there is only a set amount of goods or services to be divided up between the parties When parties believe the pie is fixed, they tend to bargain distributively Distributive v Integrative Bargaining Bargaining characteristics 1. Available resources 2. Primary motivations 3. Primary interests 4. Focus on relationship Distributive characteristics 1. Fixed amount of resources to be divided 2. I win, you lose 3. Opposed to each other 4. Short term Integrative characteristics

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1. Variable amount of resources to be divided 2. I win, you lose 3. Convergent or congruent with each other Long term

Each has a target point - defines what he/she would like to achieve Resistance point - marks the lowest outcome that is acceptable - the point below which they would break off negotiations rather than accept a less-favourable settlement

2. Distributive bargaining Ones tactics focus on trying to get ones opponent to agree to a specific target point or to get as close to it as possible Another tactic, is revealing a deadline 3. Integrative bargaining Negotiation that seeks one or more settlements that can create a win-win solution It bonds negotiators and allows them to leave the bargaining table feeling that they have achieved a victory. Distributive however leaves one aprty a loser. Compromise may be your worst enemy in negotiating a win-win agreement THE NEGOTIATION PROCESS 1. Preparation and planning You need to ask yourself some questions - what is the nature of the conflict? - what is the history leading up to this negotiations? - who is involved and what are their perceptions of the conflict? - What do you want from the negotiations? - What are YOUR goals? You also want to prepare an assessment of what you think the other partys goals are Once you have gathered your information, use it to develop a strategy BATNA (best alternative to a negotiated agreement) - determines the lowest acceptable value to an individual for a negotiated agreement 2. Definition of grounds Define the ground rules and procedures with the other party over the negotiation itself - Who will do the negotiating? - Where will it take place? - What issues will negotiation be limited? Parties during this stage will exchange their initial proposals or demands 3. Clarification and justification Parties will now explain, amplify, clarify, bolster and justify 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

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4. Bargaining and problem solving Essence of the negotiation process is the actual give and take in trying to hash out an agreement. It is here where concessions will undoubtedly need to be made by both parties 5. Closure and implementation Here we formalise the agreement that has been worked out and develop any procedure that are necessary for implementation and monitoring

Issues in Negotiation - (520-523) 1. Role of mood and personality traits in negotiation Negotiators who are in a positive mood, will create better outcomes than those who are in average moods. Negotiators who are upbeat etc tend to trust the other party more an therefore reach more join-gain settlements Personality traits have no significant direct effect on either the bargaining process or the negotiation outcomes 2. Gender Differences in negotiations Women are more cooperative and pleasant in negotiation than men Men have been found to negotiate better outcomes than women, although the difference is relatively small Low-power managers regardless of gender, attempt to placate their opponents and to use softly persuasive tactics rather than direct confrontation and threats Managerial women demonstrate less confidence in negotiating, and are less satisfied with their performance after the process is compete. 3. Cultural differences in negotiations 4. Third-party negotiations Mediator - a neutral third party who facilitates a negotiated solution by using reasoning, persuasion and suggestions for alternatives Arbitrator - a third party to a negotiation who has the authority to dictate an agreement Conciliator - a trusted third party who provides an informal communication link between the negotiator and the opponent Consultant - an impartial third party, skilled in conflict management, who attempts to facilitate creative problem solving through communication and analysis

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CHAPTER ELEVEN - COMMUNICATION Communication - the transference and understanding of meaning An idea, no matter how great, is useless until it is transmitted and understood by others.

Functions of Communication 1. Control - organisations have authority hierarchies and formal guidelines that employees are requires to follow. - When employees are required to communicate any job-related grievances to the boss etc communication is performing a control function 2. Motivation - This is fostered by clarifying to employees what is to be done, how well they are doing, and what can be done to improve performance if it is below standards 3. Emotional Expression - Communication that takes place within the group is a fundamental mechanism by which members show their frustration and feelings of satisfaction. Emotional expression is the release of feelings and for fulfillment of social needs 4. Information - Role in facilitating decision making. It provides employees with information which groups etc need in order to make decisions by transmitting the data to identify and evaluate alternative choices The Communication Process This is the steps between a source and a receiver that result in the transference and understanding of meaning 1. The Sender This initiates a message by encoding a though. 2. Encoding The message is the actual physical product from the senders encoding 3. The Message When we speak, the speech is the message. When we write, the writing is the message 4. Channel Is the medium through which the message travels. It is selected by the sender, who must determine whether to use a formal or informal channel Formal channel - communication channels established by a organisation to transmit messages related to the professional activities of members Informal channel - channels that are created spontaneously and that emerge as responses to individual choices 5. Decoding Before the message can be received, the symbols in it must be translated into a form that can be understood by the receiver 6. Receiver 7. Noise Represents communication barriers that distort the clarity of the message 8. Feedback Cheak on how successful we have been in transferring out messages as originally intended. It determines whether understanding has been achieved

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Direction of Communication 1. Downward Communication Communication that flows from one level of a group to a lower level in downward communication Used by group leaders and managers to assign goals, provide job instructions, inform employees of policies and procedures, point out problems that need attention and offer feedback about performance 2. Upward Communication Flows to a higher level in the group or organisation Used to provide feedback to more senior managers to inform them of progress towards goals and relay current problems This communication keeps managers aware of how employees feel about their jobs, coworkers etc 3. Lateral Communication Communication taking place among members of the same work group, among members of work groups, managers etc at the same level This is used to save time and facilitate coordination Interpersonal Communication 1. Oral Communication Speeches, formal one on one group discussions etc Advantages - are that they are fast and provide feedback. Disadvantages - usually when a message is passed through many members to get to one, it is usually at times distorted. 2. Written Communication Memos, letters, face transmissions, e-mail, IM etc They are often tangible and verifiable. When printed, both the sender and receiver have a record of the communication; which can be stored It is more precise, as one has time to think about what to write They are time-consuming Non-Verbal Communication 1. Body movements Two most important messages that body language conveys are: - the extent to which an individual likes another and is interested in his or her views - the relative perceived status between a sender and receiver 2. Facial Expression 3. Intonations - emphasis given to words or phrases 4. Physical Distance ORGANISATIONAL COMMUNICATION 1. Formal Small-Group Networks They are very large and complicated. However to simplify it, we shall split it up into three common networks being: a) Chain - rigidly follows the formal chain of command. It approximates the communication channels b) Wheel - relies on a central figure to act as the conduit for all of the groups communication. It stimulates the communication network c) All-channel - permits all group members to actively communicate with each other

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2. The Grapevine This is informal Three main characteristics include: a) It is not controlled by management b) It is perceived by most employees as being more believable and reliable than formal communiqus issued by top management c) It is largely used to serve the self-interests of the people within it Rumors emerge as a response to situations that are important to us, when there is ambiguity, and under conditions that arouse anxiety 3. Computer-aided Communication Communication today has enhanced due to computer-aided technologies These include: a) Email - uses the internet to transmit and receive computer-generated text and documents. Benefits include: quickly written, edited and stored. They can be distributed to as many people as one wishes, and the cost of sending formal emails is a fraction of what it would cost to print, duplicate and distribute a letter or brochure b) Instant Messaging - it is essentially real-time email (MSN etc) IM is a fast and inexpensive means for managers to stay in touch with employees and for employees to stay in touch with each other c) Intranet Links - an IP network belonging to an organisation, usually and corporation, and accessible only to organisation members, employees etc or people authorised by them d) Videoconferencing - it permits employees in an organisation to have meetings with people at different locations. Live audio and video images of members allow them to see, hear and talk with each other 4. Knowledge Management KM is the process of organising and distributing an organisations collective wisdom so that the right information gets to the right people at the right time. It provides an organisation with a competitive advantage and improved organisational performance because it makes its employees smarter Important because: - intellectual assets are now as important as physical or financial assets - allow managements to access what previous employees have learned and cut wasteful time retracing a path that has already been traveled CHOICE OF COMMUNICATION CHANNEL Face to face conversation scores highest in terms of channel richness Channel richness - the amount of information that can be transmitted during a communication episode BARRIERS TO EFFECTIVE COMMUNICATION 1. Filtering A senders manipulation of information so that it will be seen more favourably by the receiver. The main determinant fo filtering is the number of levels in an organisations structure 2. Selective Perception The receivers in the communication process selectively see and hear based on their needs, motivations, experience, background and other personal characteristics. Receivers also project their interest and expectations into communications as they decode them

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3. Information overload A condition in which information inflow exceeds an individuals processing capacity When the information we have to work with exceeds our processing capacity, the result is information overload 4. Emotions How the receiver feels at the time of receipt of a communication will influence how he or she interprets it In these instances, we are most prone to disregard our rational and objective thinking processes and substitute emotional judgments 5. Language Words mean different things to different people. Age, education and cultural background are three of the more obvious variables that influence the language a person uses and the definitions he or she gives to words 6. Communication Apprehension Undue tension and anxiety about oral communication, written communication or both CURRENT ISSUES IN COMMUNICATION 1. Communication Barriers between women and men Tannen states that men use talk to emphasise status, whereas women use it to create connection (generalisation) Tannen states that communication is a continual balancing act, juggling the conflicting needs for intimacy and independence. Intimacy emphasises closeness and commonalities, and hear a language of connection and intimacy; men speak and hear a language of status, power and independence Men are often more direct than women in conversation Men frequently complain that women talk on and on about their problems. Women criticise men for not listening. Women tend to be less boastful than men Men often criticise women for seeming to apologise all the time. Women do apologise more than men 2. Silence and Communication The absence of speech or noise It can mean someone is thinking or contemplating a response to a question It can mean a person is anxious and fearful of speaking It can signal agreement, dissent, frustration or anger 3. Politically correct communication We must be sensitive to others feelings. Certain words can and so stereotype, intimidate and insult individuals Words are the primary means by which people communicate. When we eliminate words from use because they are politically incorrect, we reduce our options for conveying messages in the clearest and most accurate form We must be sensitive to how our choice of words might offend others 4. Cross-cultural Communication This clearly creates the potential for increased communication problems. They include: a) Cultural barriers 4 specific problems related to language includes:

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- Barriers caused by semantics - Efficiency, free market and regulation - Barriers caused by word connotations - Barriers caused by tone differences b) Cultural Context - High context cultures: cultures that rely heavily on non-verbal and subtle situational cues in communication - Low context cultures: cultures that rely heavily on words to convey meaning in communication c) Cultural Guide - When communicating with people from a different culture, try to assess the cultural context. 4 rules include: (i) Assume differences until similarity is proven (ii) Emphasise description rather than interpretation or evaluation (iii) Practice empathy (iv) Treat you interpretations as a working hypothesis DIVERSITY TRAINING Challenges and Opportunities for OB 1. Responding to Globalisation a) Increased foreign assignments When you are a manger, you are increasingly likely to find yourself in a foreign assignment transferred to you employers operating division in another country. Once there, you will have to manage a workforce that is likely to be very different in needs, aspirations and attitudes from those you were used to back home b) Working with people from different cultures To work effectively with people from different cultures, you need to understand how their culture, geography and religion have shaped them, and how to adapt your management style to their differences c) Coping with an anti-capitalism backlash Capitalisms focus on efficiency, growth and profits may be generally accepted by Australia and other countries, however management practices need to be modified to reflect the values of the different countries in which an organisation operates d) Overseeing movement of jobs to countries with low-cost labour Managers must deal with the difficult task of balancing the interests of their organisation with their responsibilities to the communities in which they operate e) Managing people when the threat of terrorism is high 2. Managing Workforce Diversity Workforce diversity - the concept that organisations are becoming more heterogeneous in terms of gender, race, ethnicity and inclusion of other diverse groups a) Embracing Diversity The challenge for organisations, is to make themselves more accommodating to diverse groups of people by addressing their different lifestyles, family needs and work styles b) Changing Demographics c) Implications Workforce diversity has important implications for management practice. Managers have to shift their philosophy from treating everyone alike, to recognising differences and

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responding to those differences in ways that ensure employee retention and greater productivity while, at the same time, not discriminating

People are pressed to examine themselves and to confront any any ethnic and cultural stereotypes they may hold. They are also asked to share their values and what they respect and expect in return.

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KOTTER AND LEWIN Lewins 3 step change model Kurt Lewin argued that successful change in an organization should follow three steps: unfreezing the status quo, movement to a desired end state, and refreezing the new change to make it permanent. Unfreezing change efforts to overcome the pressures of both individual resistance and group conformity Movement a change process that transforms the organization from the status quo to a desired state Refreezing stabilizing a change intervention by balancing driving and restraining forces The status quo can be considered to be an equilibrium state. To move from this equilibrium to overcome the pressures of both individual resistance and group conformity unfreezing is necessary. It can be achieved in one of 3 ways. The driving forces which direct behavior away from the status quo can be increased. The restraining forces which hinder movement from the existing equilibrium, can be decreased. A third alternative is to combine the first two approaches. Companies that have been successful in the past are likely to encounter restraining forces because people question the need for change. Similarly, research shows that companies with strong cultures excel at incremental change but are overcome by restraining forces against radical change. Research on organizational change has shown that, to be effective, change has to happen quickly. Organisations that build up to change do less well that those that get to and through the movement stage quickly. Once this consolidation change has been implemented, if it is to be successful, the new situation needs to be refrozen so that it can be sustained over time. Unless this last step is taken, there is a very high chance that change will be short-lived and that emploees will try to revert to the previous equilibrium state. The objective of refreezing, then, is to stabilize the new situation by balancing the driving and restraining forces. Kotters 8-step plan for implementing change John Kotter of the Harvard Business School built on Lewins 3-step model to create a more detailes approach for implementing change. Kotter began by listing common mistakes that managers make when trying to initiate change. These included the inability to create a sense of urgency about the need for change, failure to create a coalition fit managing the change process, the absence of a vision for change and to effectively communicate that vision, failure to remove obstacles that could impede the achievement of the vision, failure to provide shortterm, achievable goals, the tendency to declare victory too soon, and not anchoring the changes into the organizational culture. Kotter developed 8 sequential steps to overcome these problem. These steps are as follows: 1. 2. 3. 4. Establish a sense of urgency by creating a compelling reason for why change is needed Form a coalition with enough power to lead the change Create a new vision to direct the change and strategies for achieving the vision Communicate the vision throughout the organization

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5. Empower others to act on the vision by removing barriers to change and encouraging risk-taking and creative problem solving 6. Plan for, create and reward short-term wins that move the organization towards the new vision 7. Consolidate improvements, reassess changes and make necessary adjustments in the new programs 8. Reinforce the changes by demonstrating the relationship between new behaviours and organizational success. Kotters first four steps essentially extrapolate on the unfreezing stage. Steps 5-7 represent movement. And the final step works on refreezing. So Kotters contribution lies in providing managers and change agents with a more detailed guide for successfully implementing change. THESE ARE THE FOUR ESSAY TOPICS IF YOU THINK THERE IS TOO LITTLE INFORMATION YOU CAN EXPAND ON IT. P.S. IF YOU EXPAND ON IT SEND ME THE EXTRA BITS PLZ.