Robbins, Judge, and Vohra

Organizational Behavior
14th Edition

Conflict and Negotiation

Kelli J. Schutte
William Jewell College Copyright 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

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Chapter Learning Objectives

After studying this chapter, you should be able to:
Define conflict. Differentiate between the traditional, resolution focused, and interactionist views of conflict. Outline the conflict process. Define negotiation. Contrast distributive and integrative bargaining. Apply the five steps in the negotiation process. Show how individual differences influence negotiations. Assess the roles and functions of third-party negotiations. Describe cultural differences in negotiations.

Copyright 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

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Conflict Defined
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
That point in an ongoing activity when an interaction crosses over to become an interparty conflict

Encompasses a wide range of conflicts that people experience in organizations

Incompatibility of goals Differences over interpretations of facts Disagreements based on behavioral expectations

Copyright 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

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Transitions in Conflict Thought

Traditional View of Conflict
The belief that all conflict is harmful and must be avoided

Prevalent view in the 1930s-1940s

Conflict resulted from:

Poor communication

Lack of openness
Failure to respond to employee needs
Copyright 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

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Continued Transitions in Conflict Thought

Resolution Focused View of Conflict
The belief that conflict is a natural and inevitable outcome in any group Focuses on productive conflict resolution

Interactionist View of Conflict

The belief that conflict is not only a positive force in a group but that it is absolutely necessary for a group to perform effectively Current view

Copyright 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

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Forms of Interactionist Conflict

Functional Conflict
Conflict that supports the goals of the group and improves its performance

Dysfunctional Conflict
Conflict that hinders group performance
Copyright 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

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Types of Interactionist Conflict

Task Conflict
Conflicts over content and goals of the work Low-to-moderate levels of this type are FUNCTIONAL

Relationship Conflict
Conflict based on interpersonal relationships Almost always DYSFUNCTIONAL

Process Conflict
Conflict over how work gets done Low levels of this type are FUNCTIONAL
Copyright 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

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The Conflict Process

We will focus on each step in a moment

E X H I B I T 14-1 Copyright 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

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Stage I: Potential Opposition or Incompatibility

Communication
Semantic difficulties, misunderstandings, over communication and noise

Structure
Size and specialization of jobs Jurisdictional clarity/ambiguity Member/goal incompatibility Leadership styles (close or participative) Reward systems (win-lose) Dependence/interdependence of groups

Personal Variables
Differing individual value systems Personality types
Copyright 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

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Stage II: Cognition and Personalization

Important stage for two reasons:
1. Conflict is defined
Perceived Conflict Awareness by one or more parties of the existence of conditions that create opportunities for conflict to arise

2. Emotions are expressed that have a strong impact on the eventual outcome
Felt Conflict Emotional involvement in a conflict creating anxiety, tenseness, frustration, or hostility

Copyright 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

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Stage III: Intentions

Intentions
Decisions to act in a given way Note: behavior does not always accurately reflect intent

Dimensions of conflict-handling intentions:

Cooperativeness
Attempting to satisfy the other partys concerns

Assertiveness
Attempting to satisfy ones own concerns
Source: K. Thomas, Conflict and Negotiation Processes in Organizations, in M.D. Dunnette and L.M. Hough (eds.), Handbook of Industrial and Organizational Psychology, 2nd ed., vol. 3 (Palo Alto, CA: Consulting Psychologists Press, 1992), p. 668. Arrows added. Used with permission.

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Stage IV: Behavior

Conflict Management
The use of resolution and stimulation techniques to achieve the desired level of conflict

Conflict-Intensity Continuum

Source: Based on S.P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp. 93 97; and F. Glasi, The Process of Conflict Escalation and the Roles of Third Parties, in G.B.J. Bomers and R. Peterson (eds. ), Conflict Management and Industrial Relations (Boston: Kluwer-Nijhoff, 1982), pp. 11940.

E X H I B I T 14-3 Copyright 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

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Conflict Management Techniques

Conflict Resolution Techniques Problem solving Superordinate goals Expansion of resources Avoidance Smoothing Compromise Authoritative command Altering the human variable Altering the structural variables
Copyright 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

Conflict Stimulation Techniques Bringing in outsiders Communication Restructuring the organization Appointing a devils advocate

Source: Based on S. P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp. 5989

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Stage V: Outcomes
Functional
Increased group performance Improved quality of decisions Stimulation of creativity and innovation

Dysfunctional
Development of discontent

Reduced group effectiveness

Retarded communication Reduced group cohesiveness Infighting among group members overcomes group goals

Encouragement of interest and curiosity

Provision of a medium for problem solving Creation of an environment for self-evaluation and change

Managing Functional Conflict

Reward dissent and punish conflict avoiders
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Copyright 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

Negotiation
Negotiation (Bargaining)
A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them

Two General Approaches:

Distributive Bargaining
Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation

Integrative Bargaining
Negotiation that seeks one or more settlements that can create a win-win solution

Copyright 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

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Distributive versus Integrative Bargaining

Bargaining Characteristic Distributive Bargaining Integrative Bargaining

Goal
Motivation Focus Information Sharing Duration of Relationships
Source: Based on R. J. Lewicki and J. A. Litterer, Negotiation (Homewood, IL: Irwin, 1985), p. 280.

Get all the pie you can

Win-Lose Positions Low Short-Term

Expand the pie

Win-Win Interests High Long-Term

Integrative
Yours Mine

Yours Mine

Distributive
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The Negotiation Process

BATNA
The Best Alternative To a Negotiated Agreement The lowest acceptable value (outcome) to an individual for a negotiated agreement

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Individual Differences in Negotiation Effectiveness

Personality Traits
Extroverts and agreeable people are weaker at distributive negotiation; disagreeable introverts are best Intelligence is a weak indicator of effectiveness

Mood and Emotion

Ability to show anger helps in distributive bargaining Positive moods and emotions help integrative bargaining

Gender
Men and women negotiate the same way, but may experience different outcomes

Copyright 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

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Third-Party Negotiations
Four Basic Third-Party Roles
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
Copyright 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

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Global Implications
Conflict and Culture
Indian and French managers view conflict differently Indian managers are more likely to use accommodation and avoidance while French managers are likely to use competing tactics.

Cultural Differences in Negotiations

Multiple cross-cultural studies on negotiation styles, for instance:
American negotiators are more likely than Japanese bargainers to make a first offer North Americans use facts to persuade; Arabs use emotion; and Russians use asserted ideals Brazilians say no more often than Americans or Japanese
Copyright 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

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Summary and Managerial Implications

Conflict can be constructive or destructive Reduce excessive conflict by using:
Competition Collaboration Avoidance Accommodation Compromise

Integrative negotiation is a better long-term method

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Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

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