Conflict and Negotiation

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Conflict
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.
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Definitions
Conflict
Interaction of persons who perceive incompatible goals and interference from one another in achieving those goals

Negotiation
A process in which two or more parties attempt to reach acceptable agreement in a situation characterized by some level of disagreement.

Transitions in Conflict Thought

Traditional View conflict is harmful and must be avoided Human Relations View conflict is a natural and inevitable outcome in any group and need not be negative Interactionist View conflict is encouraged to prevent group from becoming stale
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Functional vs. Dysfunctional Conflict

Task conflict relates to the content and goals of the work Relationship conflict focuses on interpersonal relationships Process conflict relates to how the work gets done
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Managing Conflict:
High Performance Low
Complacency Managed Intense

Conflict

Conflict Process
Stage I: Potential opposition Stage II: Cognition and Personalization Stage III: Intentions Stage IV: Behaviors Stage V: Outcomes

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Conflict Process

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Stage I: Potential Opposition

Sources of conflict:
Communication Structure Personal Variables

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Stage II: Cognition and Personalization

Potential for opposition becomes realized When individuals become emotionally involved - parties experience anxiety, tension, frustration, or hostility

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Stage III: Intentions

Competing Collaborating Avoiding Accommodating Compromising

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Intentions

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Styles of Conflict Resolution

Aggressive Satisfy Self? Passive Competition
(forcing)
(Manager exerting authority)

Collaboration
(Marriage Counselors/Labor mediation)

Compromise
(Union-Management)

(Most common approach)

Avoidance

Accommodation
(Acquiescent Parent)

Uncooperative

Cooperative

Satisfy Other? (Cooperativeness)

STEPS FOR CONFLICT RESOLUTION AND EFFECTIVE NEGOTIATIONS

Analyze Situation
Identify your needs ImportanceIs it worth it? Zero-sum Strength of position Future Interactions?

Analyze other party(ies)

Real needs, interests Strengths/Weaknesses Their styles/approach

Select Appropriate Approach

Conflict Style Negotiation (Integrative, Distributive)

INTEGRATIVE NEGOTIATION
Conditions
Generally best Win-Win is possible Opponent is willing

DISTRIBUTIVE NEGOTIATING
Conditions
Zero-sum game Opponent is distributive You have the power Relationship not critical

DISTRIBUTIVE STRATEGIES
Identify target and resistance points
Goal? Start moderately high/low, make concession, get stingy View initial offers as a starting point

Persuasion Leverage Power: Facts, Experience, position Fairness Emotions Closed Manage Perceptions

INTEGRATIVE NEGOTIATION
Conditions
Generally best Win-Win is possible Opponent is willing

Key? Integrative Strategies?

INTEGRATIVE NEGOTIATION
Integrative Strategies
Openness Trust Flexibility Begin Positively Focus on the Issue Remain Rational Use objective criteria

Styles of Conflict Resolution

Aggressive Satisfy Self? Passive Competition
(forcing)
(Manager exerting authority)

Collaboration
(Marriage Counselors/Labor mediation)

Compromise
(Union-Management)

(Most common approach)

Avoidance

Accommodation
(Acquiescent Parent)

Uncooperative

Cooperative

Satisfy Other? (Cooperativeness)

CHOOSING A STYLE
Competition (forcing)
Time is an important constraint Issue is unpopular/action must be taken Commitment is not critical Competitive others You have the power Too important for compromise Time pressures are minimal All want win-win Communication-based

Collaboration

CHOOSING A STYLE
Avoidance
Issue is trivial Costs/disruptions outweigh benefits Problem may solve itself Based on personal differences

Accommodation
Issue is more important to the other party Stockpile Credits Minimize loss

Compromise
Equal power with exclusive goals Temporary solution to a complex issue Tight time constraints

Stage IV: Behavior

Where conflict becomes visible Are usually overt attempts to implement each partys intentions A dynamic process that moves along a continuum of intensity

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Stage V: Outcomes
Functional Outcomes Conflict is constructive when it:
Improves the quality of decisions Stimulates creativity and innovation Encourages interest and curiosity among group members

Dysfunctional Outcomes uncontrolled opposition breeds discontent, which acts to dissolve common ties, and eventually leads to the destruction of the group
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Creating Functional Conflict

Managers can reward dissent and punish conflict avoiders

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Conflict Management Styles Quiz

None of these strategies is superior in and of itself. How effective they are depends on Conflict Management Styles the context in which they are used. Quiz Be sure to answer the questions indicating how you would behave rather than how you think you behave.

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Negotiation
Process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them

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Bargaining Strategies

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The Negotiation Process

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Individual Differences in Negotiation

Personality Gender Cultural

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Personality
The best distributive bargainer appears to be a disagreeable introvert Those who can check their egos at the door are able to negotiate better agreements

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Gender Differences in Negotiation

Men have been found to negotiate better outcomes than women, although the difference is relatively small Women may unduly penalize themselves by failing to engage in negotiations when such action would be in their best interest

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Cultural Differences in Negotiations

Cultural context significantly influences...
The amount and type of preparation for bargaining The relative emphasis on task versus interpersonal relationships The tactics used Where the negotiation should be conducted

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Implications for Managers: Managing Conflict

Competition Collaboration Avoidance Accommodation Compromise

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Implications for Managers: Improving Negotiation Skills

Set Ambitious Goals Pay Little Attention to Initial Offers Research Your Opponent Address the Problem, Not the Personalities Be Creative and Emphasize Win-Win Solutions

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Summary
1. 2. 3. 4. 5. 6. 7. 8. Defined conflict Differentiated between the traditional, human relations, and interactionist views of conflict Contrasted task, relationship and process conflict Outlined the conflict process Described the five conflict-handling intentions Contrasted distributive and integrative bargaining Identified the five steps in the negotiation process Described whether there are individual differences in negotiator effectiveness
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