Description
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. It is that point in an ongoing activity when an interaction "crosses over" to become an interparty conflict. It encompasses a wide range of conflicts that people experience in organizations like (a) Incompatibility of goals (b) Differences over interpretations of facts (c) Disagreements based on behavioral expectations.
Chapter Fifteen
Managing Conflict and Negotiation
The objectives are to develop an understanding of:
• Conflict in Organizations
• A contemporary perspective on intergroup conflict
• What causes intergroup conflict
• The causes of dysfunctional intergroup conflict
• Managing intergroup conflict through Resolution
• Stimulating Constructive intergroup conflict
• Negotiations
• Negotiation tactics
• Increasing negotiation effectiveness
Conflict in Organizations.
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. It is that point in an ongoing activity
when an interaction “crosses over” to become an interparty conflict. It encompasses a wide range of
conflicts that people experience in organizations like (a) Incompatibility of goals (b) Differences over
interpretations of facts (c) Disagreements based on behavioral expectations
Transitions in Conflict Thought
Traditional View of Conflict is the belief that all conflict is harmful and must be avoided. Causes are
poor communication, lack of openness and failure to respond to employee needs
Human Relations View of Conflict is the belief that conflict is a natural and inevitable outcome in any
group
Interactionist View of Conflict is 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
Contemporary Perspectives on Intergroup Conflict
A. Functional conflict: Enhances/benefits organizational performance. It occurs
when the groups disagree on the best means to achieve a goal, not on the goal itself; typically results in
selection of a better means alternative. Positive contributions of functional conflict are:
a. Plays an essential role in preventing group or organizational stagnation and resistance to
change.
b. Can lead to increased awareness of problems that need to be addressed.
c. Can result in broader and more productive searches for solutions.
d. Can facilitate change, adaptation, and innovation.
B. Dysfunctional conflict: Any conflict that hinders the achievement of
organizational goals.Management must seek to eliminate such conflict. Functional intergroup conflict
can turn into dysfunctional conflict.
The Consequences of Dysfunctional Intergroup Conflict
A. The changes within groups:
1. Increased group cohesiveness—the group puts aside differences and
closes ranks.
2. Emphasis on loyalty—group norm for conformity becomes more
important; group goals become more important than member satisfaction.
3. Rise in autocratic leadership—comes in response to the demand for
group direction and members' desire for strong leadership.
4. Focus on activity—members focus on doing what the group does well;
group becomes more task?oriented.
B. Changes between groups
1. Distorted perceptions—each group views itself as a better performer
than the opposing group and as more important to the organization.
2. Negative stereotyping—all negative stereotypes ever developed about
the opposing group are reinforced. Each group underestimates differences within their group and
exaggerates differences between the two groups.
3. Decreased communication—communications between groups usually
break down.
Types of Conflict
• 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
What Causes Intergroup Conflict?
A. Interdependence: Conflict potential increases when groups are interdependent. The different
types of Interdependence are as follows:
1. Pooled interdependence—no direct interaction occurs between groups;
interdependence exists because their pooled performance determines organizational performance (e.g.,
the Cadillac, Buick and Chevrolet divisions at General Motors). Creates relatively low conflict potential.
2. Sequential interdependence—Occurs when one group must complete
its task before another group can complete its task (e.g., two groups on an assembly line). Makes
conflict more likely because output (quality and quantity) of one group depends on the task input of
another.
3. Reciprocal interdependence—the output of each group is the input for
other groups and vice versa (e.g., the anesthesiology, nursing, and surgical teams in an operating room).
Creates high conflict potential.
All organizations have pooled interdependence; complex organizations have sequential
interdependence; and the more complex organizations have reciprocal interdependence. The more
complex the organization, the greater the conflict potential.
B. Goals Difference: Groups with different goals have different expectations that can cause conflict
when the groups interact. Goal differences become more evident when resources are limited and are
allocated across the groups. Conflict pressures increase when groups think resources have not been
allocated equitably. Different goal can produce different perceptions. Different time horizons can
produce different times perspectives and affect perceived importance of problems (e.g., a company
president's time perspective of five?to?ten years vs. a foreman's perspective of one month to one year).
C. Perceptual Differences: Status incongruency—one group perceiving itself as more prestigious
than another can provoke intergroup conflict. Inaccurate perceptions often causes groups to develop
stereotypes about other groups, which can provoke conflict and erode intergroup relations.
When conflict is low rational model describes the organization where goals are consistent across
participants, power and control are centralized,decision process are orderly, logical, rational, rules and
norms are norms of efficiency, information is extensive,systematic and accurate.
When conflict is high political model describes the organization where goals are inconsistent and
pluralistic within the organization, power and control are decentralized and shifting coalitions and
interest groups,decision process are disorderly and result of bargaining and interplay among interests,
rules and norms are free play of market forces and conflict is legitimate and expected, information is
ambiguous and information used and withheld strategically.
Stages of conflict.
Stage I: Potential Opposition or Incompatibility
a) Communication?Semantic difficulties, misunderstandings, and “noise”
b) 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
c) Personal Variables?Differing individual value systems,Personality types
Stage II: Cognition and Personalization
a. Perceived conflict—a cognitive awareness on the part of at least one group that events or
conditions make overt conflict possible.
b. Felt conflict—an escalation, which includes emotional involvement creating anxiety, tenseness,
frustration, or hostility.
Before attempting resolution is possible, both parties must perceive and feel conflict. Resolution is more
likely to have good results at this stage.
Stage III: Intentions
Intentions are decisions to act in a given way. It can be based on :
• Cooperativeness?Attempting to satisfy the other party’s concerns
• Assertiveness?Attempting to satisfy one’s own concerns
Dimensions of Conflict?Handling Intentions
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.
Competing (assertive and uncooperative)?A desire to satisfy one’s interests, regardless of the impact on
the other party to the conflict
Collaborating (assertive and cooperative)?A situation in which the parties to a conflict each desire to
satisfy fully the concerns of all parties
Avoiding(unassertive and uncooperative)?The desire to withdraw from or suppress a conflict
Accommodating(unassertive and cooperative)??The willingness of one party in a conflict to place the
opponent’s interests above his or her own
Compromising( moderate assertive and moderate cooperative)?A situation in which each party to a
conflict is willing to give up something
Stage IV: Behavior
Manifest conflict—groups actively engage in conflict behaviour. Most difficult to deal with conflict at
this stage and most likely to have longer lasting effects.
Conflict?Intensity Continuum ranges from no conflict?minor disagreement or misunderstandings?
overt questioning or challenging of others?assertive verbal attacks?threats and ultimatums? aggressive
physical attacks?overt efforts to destroy the other party (annihilatory conflict)
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. 119–40.
Conflict Management
The use of resolution and stimulation techniques to achieve the desired level of conflict.
Managing Intergroup Conflict Through Resolution
Internal focus—extent to which a group is intent upon addressing its own concerns in a conflict
situation.External focus—extent to which a group is intent on addressing the concerns of the other
group(s) involved in the conflict.Varying degrees of external and internal focus yield different resolution
approaches.Five approaches for resolving conflicts categorized by relative internal/external focus .
1. Dominating—maximum focus on internal concerns. It is a power oriented approach; relies on
force. Often both groups in a conflict try force. Usually one group has overestimated its power or
underestimated the other group's power. Results may be a prolonged strike or battle, or a victory where
the losing party feels mistreated and may even seek revenge. Despite problems, it is sometimes
appropriate, e.g., emergency situations, or situations where unpopular action may be needed.
2. Accommodating—maximum emphasis on meeting needs of the other group and minimizing
own concerns. Sometimes appears to be giving in. It is beneficial where issues over which groups conflict
are not equally important to both parties.Sometimes it purchases "credits" which are more important
than favorable resolution to this particular conflict.
3. Problem solving—theoretically the best approach, but can be extremely difficult. Also called
collaboration, this approach requires that groups in conflict show a willingness to work toward an
integrative solution that satisfies both parties. Obstacle is the common win?lose mentality. Potential
benefits are : i. Merger of insight, experience, knowledge, and perspective that leads to higher quality
solutions. ii. Commitment to effective implementation is likely to be high because both
parties participate in developing the solution.
Sometimes it is aided by focusing on a super?ordinate goal, one that cannot be achieved by one group
alone, and supersedes all other concerns.
4. Avoiding?May not bring long?term benefits. It is useful as a temporary alternative. It allows time
to "cool down", or assemble additional information.People tend to overuse the avoiding approach as a
way of avoiding the "pain" of conflict.
5. Compromising—traditional method for resolving intergroup conflicts. Middle ?of the? road ?
approach. There is no distinct winner or loser. Resolution is probably not ideal for either group. It can
work effectively when the goal can be divided equally. It works best when: i. Conflicting parties have
about equal power. ii. Pairs are strongly committed to mutually exclusive goals. iii. Allows a
temporary settlement to a complex problem—good back?up strategy.
May involve third party interventions—higher managerial authority, mediation, or arbitration.
Use of Competition is recommended:
a) When quick, decisive action is vital (in emergencies); on important issues
b) Where unpopular actions need implementing (in cost cutting, enforcing unpopular rules,
discipline)
c) On issues vital to the organization’s welfare
d) When one knows one is right
e) Against people who take advantage of noncompetitive behavior
Use of Collaboration is recommended:
a) To find an integrative solution when both sets of concerns are too important to be compromised
b) When objective is to learn
c) To merge insights from people with different perspectives
d) To gain commitment by incorporating concerns into a consensus
e) To work through feelings that have interfered with a relationship
Use of Avoidance is recommended:
a) When an issue is trivial, or more important issues are pressing
b) When one perceives no chance of satisfying one’s concerns
c) When potential disruption outweighs the benefits of resolution
d) To let people cool down and regain perspective
e) When gathering information supersedes immediate decision
f) When others can resolve the conflict effectively
g) When issues seem tangential or symptomatic of other issues
Use of Accommodation is recommended:
a) When one finds one is wrong and to allow a better position to be heard
b) To learn, and to show your reasonableness
c) When issues are more important to others than to yourself and to satisfy others and maintain
cooperation
d) To build social credits for later issues
e) To minimize loss when outmatched and losing
f) When harmony and stability are especially important
g) To allow employees to develop by learning from mistakes
Use of Compromise is recommended:
a) When goals are important but not worth the effort of potential disruption of more assertive
approaches
b) When opponents with equal power are committed to mutually exclusive goals
c) To achieve temporary settlements to complex issues
d) To arrive at expedient solutions under time pressure
e) As a backup when collaboration or competition is unsuccessful
Managing Intergroup Conflict Through Stimulation
A. Bringing Outside Individuals into the Group?Hiring or transfering in individuals whose attitudes,
values and backgrounds differ from those already in the group. It ensures a diversity of viewpoints. It is
used frequently in universities, governments and business.
B. Altering the Organization’s Structure? Can help both to solve dysfunctional conflict and create
functional conflict. Competition can be created among groups.
C. Stimulating Competition?Use of incentives, rewards and bonuses for outstanding performance.
D. Making use of programmed conflict?Programmed conflict is deliberately and systematically
creating conflict even when no real differences appear to exist. Popular form is the devil's advocate
which involves assigning someone the role of critic, whose job is to uncover all the possible problems
with a proposal. The goal is to uncover all possible opposing views before making a final decision.
Stage V: Outcomes
Functional Outcomes from Conflict?Increased group performance, improved quality of decisions,
stimulation of creativity and innovation, encouragement of interest and curiosity, provision of a medium
for problem?solving, creation of an environment for self?evaluation and change.Functional Conflict can
be created by rewarding dissent and punishing conflict avoiders
Dysfunctional Outcomes from Conflict?Development of discontent, reduced group effectiveness,
retarded communication, reduced group cohesiveness and infighting among group members overcomes
group goals
Conflict and organizational performance.
Each organization has an optimal level of intergroup conflict. Too little hinders innovation and
change and too much can produce chaos and threaten the organization's survival.
Conflict and Unit Performance
When level of conflict is low or none, type of conflict is dysfunctional, units internal characteristics is
apathetic, stagnant,nonresponsive to change and lack of new ideas and unit performance is low.
When level of conflict is optimal, type of conflict is functional, units internal characteristics is viable, self
critical and innovative and unit performance outcome is high.
When level of conflict is high, type of conflict is dysfunctional, units internal characteristics is disruptive,
chaotic and uncooperative and unit performance is low.
Negotiations
• A process in which two or more parties exchange goods or services and attempt to agree on the
exchange rate for them.
• A process in which two or more parties attempt to reach acceptable agreement in a situation
characterized by some level of disagreement.
In an organizational context, negotiations may take place:
• Between two people
• Within a group
• Between groups
• Over the Internet
Negotiations are characterized by four elements:
1. Some disagreement or conflict exists, which may be perceived, felt or manifest.
2. There is some degree of interdependence between the parties.
3. The situation must be conducive to opportunistic interaction—each party must have
both the means and in the inclination to attempt to influence the other.
4. There exists some possibility of agreement, without which the negotiation cannot bring
about a positive resolution.
Bargaining strategies in Negotiation
Win?Lose Negotiating—The Zero Sum Game
It is also known as Distributive Negotiation, since the process of dividing or “distributing” resources is
used. It is quite common in organizations; characterizes most bargaining of prices, salaries, etc.
Win?Win Negotiating—A Positive Sum Approach
It is Integrative Negotiating, where each party gains without a corresponding loss by the other party. It
does not necessarily mean that everyone gets exactly what he or she wanted. It is simply an agreement
has been reached in which each party is better off then when they started.
Bargaining Characteristic Distributive
Bargaining
Integrative Bargaining
Goal Get as much of pie
as possible
Expand the pie
Motivation Win-Lose Win-Win
Focus Positions Interests
Information
Sharing
Low High
Duration of
relationships
Short term Long term
Source: Based on R. J. Lewicki and J. A. Litterer, Negotiation (Homewood, IL: Irwin, 1985,
p. 280). (exhibit taken from Organizational Behaviour, Stephen P.Robbins, Timothi A.Judge and
Seema Sanghi, 12
th
ed, Pearson education, pp567)
Staking Out the Bargaining Zone
The settlement range is the zone determined by the interface between the aspiration range of one
party A and the resistance point of the other party B and viceversa.
The Negotiation Process
BATNA
The Best Alternative To a Negotiated Agreement; the lowest acceptable value (outcome) to an individual
for a negotiated agreement. It involves the following steps?1.preparation and planning, 2.defining of
ground rules, 3.clarification and justification, 4.bargaining and problem solving and 5.closure and
implementation.
Issues in Negotiation
The Role of Mood and Personality Traits in Negotiation
Positive moods positively affect negotiations. Traits do not appear to have a significantly direct effect on
the outcomes of either bargaining or negotiating processes (except extraversion, which is bad for
negotiation effectiveness)
Gender Differences in Negotiations
Women negotiate no differently from men, although men apparently negotiate slightly better
outcomes.Men and women with similar power bases use the same negotiating styles.Women’s attitudes
toward negotiation and their success as negotiators are less favorable than men’s
Negotiating Globally?People from different nations negotiate differently
Cross?Cultural Negotiations?Conducting successful cross?cultural negotiations is a key ingredient for
many international business transactions. It is guided by parameters like language, sequence,
communication style, contract and context.
Stages of the Negotiation Process:
• Non?task surroundings
• Task?related information exchange
• Persuasion
• Concessions and agreement
Cross?Cultural Negotiation Strategies include the following:
a. Employing an agent or advisor
b. Involving a mediator
c. Inducing the counterpart to follow one’s own negotiation script
d. Adapting the counterpart’s negotiation script
e. Coordinating adjustment of both parties
f. Embracing the counterpart’s script
g. Improvising an approach.
h. Effecting symphony.
To pick a strategy, the following steps ought to be considered:
1. Reflecting on one’s culture’s negotiation practices
2. Learning the negotiation script common in the counterpart’s culture
3. Considering the relationship and contextual cues
4. Predicting or influencing the counterpart’s approach
5. Choosing a strategy
Increasing Negotiating Effectiveness
A way to think about desired outcomes is to distinguish between substantive and relationship outcome.
Substantive have to do with specific issues settled while the object in relationships is to maintain good
relationships.
The Four Factors of Negotiating Effectively
1. Obtaining substantial results—activities that focus on the content of what is
being negotiated.
2. Influencing the balance of power—through the use of persuasion, facts and
expertise, rather than dominance or deference.
3. Promoting a constructive climate—activities that are designed to facilitate
progress by minimizing the likelihood that tension or animosity between the parties becomes disruptive.
4. Obtaining procedural flexibility—activities that allow a negotiator to increase
negotiating effectiveness through increasing the type and number of option available for conducting the
negotiations.
Using Third?Party Negotiations?Often used when negotiations have broken down or stalled.
Several different approaches:
a. Mediation—a neutral party acts as a facilitator through the application
of reasoning, suggestion, and persuasion.
b. Arbitration—the third party has the power or authority to impose an
agreement.
c. Conciliation—the third party is someone who is trusted by both sides
and serve primarily as a more formal authority to influence the outcome than does a mediator.
d. Consultation?the third party is trained in conflict and conflict?resolution
skills and attempts to aid problem solving by focusing more on the relationship between the parties
than on the substance issues.
Improving Negotiations
1. Beginning the bargaining with a positive overture or small concession
and then reciprocating the opponent’s concessions.
2. Concentrating on the negotiations issues and situational factors, not on
the opponent.
3. Trying to determine the opponent’s strategy by looking below the
surface.
4. Not allowing accountability to one’s constituents or surveillance by
them to produce competitive bargaining.
5. Using power in a negotiation.
6. Being open to accepting third?party assistance.
7. Attending to the environment; being aware that the opponent’s
behavior and power are altered by it.
Questions
1. Explain Conflict in Organizations. Discuss a contemporary perspective on intergroup
conflict
2. What causes intergroup conflict? What are the causes of dysfunctional intergroup
conflict. What are the ways of managing intergroup conflict through Resolution and
Stimulating Constructive intergroup conflict?Discuss with suitable examples. Which
conflict management technique is best and why?
3. What is Negotiation? What are the negotiation tactics followed in organizations?
4. What are the issues related to negotiation ? Discuss with examples ways of Increasing
negotiation effectiveness
doc_613122669.pdf
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. It is that point in an ongoing activity when an interaction "crosses over" to become an interparty conflict. It encompasses a wide range of conflicts that people experience in organizations like (a) Incompatibility of goals (b) Differences over interpretations of facts (c) Disagreements based on behavioral expectations.
Chapter Fifteen
Managing Conflict and Negotiation
The objectives are to develop an understanding of:
• Conflict in Organizations
• A contemporary perspective on intergroup conflict
• What causes intergroup conflict
• The causes of dysfunctional intergroup conflict
• Managing intergroup conflict through Resolution
• Stimulating Constructive intergroup conflict
• Negotiations
• Negotiation tactics
• Increasing negotiation effectiveness
Conflict in Organizations.
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. It is that point in an ongoing activity
when an interaction “crosses over” to become an interparty conflict. It encompasses a wide range of
conflicts that people experience in organizations like (a) Incompatibility of goals (b) Differences over
interpretations of facts (c) Disagreements based on behavioral expectations
Transitions in Conflict Thought
Traditional View of Conflict is the belief that all conflict is harmful and must be avoided. Causes are
poor communication, lack of openness and failure to respond to employee needs
Human Relations View of Conflict is the belief that conflict is a natural and inevitable outcome in any
group
Interactionist View of Conflict is 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
Contemporary Perspectives on Intergroup Conflict
A. Functional conflict: Enhances/benefits organizational performance. It occurs
when the groups disagree on the best means to achieve a goal, not on the goal itself; typically results in
selection of a better means alternative. Positive contributions of functional conflict are:
a. Plays an essential role in preventing group or organizational stagnation and resistance to
change.
b. Can lead to increased awareness of problems that need to be addressed.
c. Can result in broader and more productive searches for solutions.
d. Can facilitate change, adaptation, and innovation.
B. Dysfunctional conflict: Any conflict that hinders the achievement of
organizational goals.Management must seek to eliminate such conflict. Functional intergroup conflict
can turn into dysfunctional conflict.
The Consequences of Dysfunctional Intergroup Conflict
A. The changes within groups:
1. Increased group cohesiveness—the group puts aside differences and
closes ranks.
2. Emphasis on loyalty—group norm for conformity becomes more
important; group goals become more important than member satisfaction.
3. Rise in autocratic leadership—comes in response to the demand for
group direction and members' desire for strong leadership.
4. Focus on activity—members focus on doing what the group does well;
group becomes more task?oriented.
B. Changes between groups
1. Distorted perceptions—each group views itself as a better performer
than the opposing group and as more important to the organization.
2. Negative stereotyping—all negative stereotypes ever developed about
the opposing group are reinforced. Each group underestimates differences within their group and
exaggerates differences between the two groups.
3. Decreased communication—communications between groups usually
break down.
Types of Conflict
• 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
What Causes Intergroup Conflict?
A. Interdependence: Conflict potential increases when groups are interdependent. The different
types of Interdependence are as follows:
1. Pooled interdependence—no direct interaction occurs between groups;
interdependence exists because their pooled performance determines organizational performance (e.g.,
the Cadillac, Buick and Chevrolet divisions at General Motors). Creates relatively low conflict potential.
2. Sequential interdependence—Occurs when one group must complete
its task before another group can complete its task (e.g., two groups on an assembly line). Makes
conflict more likely because output (quality and quantity) of one group depends on the task input of
another.
3. Reciprocal interdependence—the output of each group is the input for
other groups and vice versa (e.g., the anesthesiology, nursing, and surgical teams in an operating room).
Creates high conflict potential.
All organizations have pooled interdependence; complex organizations have sequential
interdependence; and the more complex organizations have reciprocal interdependence. The more
complex the organization, the greater the conflict potential.
B. Goals Difference: Groups with different goals have different expectations that can cause conflict
when the groups interact. Goal differences become more evident when resources are limited and are
allocated across the groups. Conflict pressures increase when groups think resources have not been
allocated equitably. Different goal can produce different perceptions. Different time horizons can
produce different times perspectives and affect perceived importance of problems (e.g., a company
president's time perspective of five?to?ten years vs. a foreman's perspective of one month to one year).
C. Perceptual Differences: Status incongruency—one group perceiving itself as more prestigious
than another can provoke intergroup conflict. Inaccurate perceptions often causes groups to develop
stereotypes about other groups, which can provoke conflict and erode intergroup relations.
When conflict is low rational model describes the organization where goals are consistent across
participants, power and control are centralized,decision process are orderly, logical, rational, rules and
norms are norms of efficiency, information is extensive,systematic and accurate.
When conflict is high political model describes the organization where goals are inconsistent and
pluralistic within the organization, power and control are decentralized and shifting coalitions and
interest groups,decision process are disorderly and result of bargaining and interplay among interests,
rules and norms are free play of market forces and conflict is legitimate and expected, information is
ambiguous and information used and withheld strategically.
Stages of conflict.
Stage I: Potential Opposition or Incompatibility
a) Communication?Semantic difficulties, misunderstandings, and “noise”
b) 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
c) Personal Variables?Differing individual value systems,Personality types
Stage II: Cognition and Personalization
a. Perceived conflict—a cognitive awareness on the part of at least one group that events or
conditions make overt conflict possible.
b. Felt conflict—an escalation, which includes emotional involvement creating anxiety, tenseness,
frustration, or hostility.
Before attempting resolution is possible, both parties must perceive and feel conflict. Resolution is more
likely to have good results at this stage.
Stage III: Intentions
Intentions are decisions to act in a given way. It can be based on :
• Cooperativeness?Attempting to satisfy the other party’s concerns
• Assertiveness?Attempting to satisfy one’s own concerns
Dimensions of Conflict?Handling Intentions
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.
Competing (assertive and uncooperative)?A desire to satisfy one’s interests, regardless of the impact on
the other party to the conflict
Collaborating (assertive and cooperative)?A situation in which the parties to a conflict each desire to
satisfy fully the concerns of all parties
Avoiding(unassertive and uncooperative)?The desire to withdraw from or suppress a conflict
Accommodating(unassertive and cooperative)??The willingness of one party in a conflict to place the
opponent’s interests above his or her own
Compromising( moderate assertive and moderate cooperative)?A situation in which each party to a
conflict is willing to give up something
Stage IV: Behavior
Manifest conflict—groups actively engage in conflict behaviour. Most difficult to deal with conflict at
this stage and most likely to have longer lasting effects.
Conflict?Intensity Continuum ranges from no conflict?minor disagreement or misunderstandings?
overt questioning or challenging of others?assertive verbal attacks?threats and ultimatums? aggressive
physical attacks?overt efforts to destroy the other party (annihilatory conflict)
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. 119–40.
Conflict Management
The use of resolution and stimulation techniques to achieve the desired level of conflict.
Managing Intergroup Conflict Through Resolution
Internal focus—extent to which a group is intent upon addressing its own concerns in a conflict
situation.External focus—extent to which a group is intent on addressing the concerns of the other
group(s) involved in the conflict.Varying degrees of external and internal focus yield different resolution
approaches.Five approaches for resolving conflicts categorized by relative internal/external focus .
1. Dominating—maximum focus on internal concerns. It is a power oriented approach; relies on
force. Often both groups in a conflict try force. Usually one group has overestimated its power or
underestimated the other group's power. Results may be a prolonged strike or battle, or a victory where
the losing party feels mistreated and may even seek revenge. Despite problems, it is sometimes
appropriate, e.g., emergency situations, or situations where unpopular action may be needed.
2. Accommodating—maximum emphasis on meeting needs of the other group and minimizing
own concerns. Sometimes appears to be giving in. It is beneficial where issues over which groups conflict
are not equally important to both parties.Sometimes it purchases "credits" which are more important
than favorable resolution to this particular conflict.
3. Problem solving—theoretically the best approach, but can be extremely difficult. Also called
collaboration, this approach requires that groups in conflict show a willingness to work toward an
integrative solution that satisfies both parties. Obstacle is the common win?lose mentality. Potential
benefits are : i. Merger of insight, experience, knowledge, and perspective that leads to higher quality
solutions. ii. Commitment to effective implementation is likely to be high because both
parties participate in developing the solution.
Sometimes it is aided by focusing on a super?ordinate goal, one that cannot be achieved by one group
alone, and supersedes all other concerns.
4. Avoiding?May not bring long?term benefits. It is useful as a temporary alternative. It allows time
to "cool down", or assemble additional information.People tend to overuse the avoiding approach as a
way of avoiding the "pain" of conflict.
5. Compromising—traditional method for resolving intergroup conflicts. Middle ?of the? road ?
approach. There is no distinct winner or loser. Resolution is probably not ideal for either group. It can
work effectively when the goal can be divided equally. It works best when: i. Conflicting parties have
about equal power. ii. Pairs are strongly committed to mutually exclusive goals. iii. Allows a
temporary settlement to a complex problem—good back?up strategy.
May involve third party interventions—higher managerial authority, mediation, or arbitration.
Use of Competition is recommended:
a) When quick, decisive action is vital (in emergencies); on important issues
b) Where unpopular actions need implementing (in cost cutting, enforcing unpopular rules,
discipline)
c) On issues vital to the organization’s welfare
d) When one knows one is right
e) Against people who take advantage of noncompetitive behavior
Use of Collaboration is recommended:
a) To find an integrative solution when both sets of concerns are too important to be compromised
b) When objective is to learn
c) To merge insights from people with different perspectives
d) To gain commitment by incorporating concerns into a consensus
e) To work through feelings that have interfered with a relationship
Use of Avoidance is recommended:
a) When an issue is trivial, or more important issues are pressing
b) When one perceives no chance of satisfying one’s concerns
c) When potential disruption outweighs the benefits of resolution
d) To let people cool down and regain perspective
e) When gathering information supersedes immediate decision
f) When others can resolve the conflict effectively
g) When issues seem tangential or symptomatic of other issues
Use of Accommodation is recommended:
a) When one finds one is wrong and to allow a better position to be heard
b) To learn, and to show your reasonableness
c) When issues are more important to others than to yourself and to satisfy others and maintain
cooperation
d) To build social credits for later issues
e) To minimize loss when outmatched and losing
f) When harmony and stability are especially important
g) To allow employees to develop by learning from mistakes
Use of Compromise is recommended:
a) When goals are important but not worth the effort of potential disruption of more assertive
approaches
b) When opponents with equal power are committed to mutually exclusive goals
c) To achieve temporary settlements to complex issues
d) To arrive at expedient solutions under time pressure
e) As a backup when collaboration or competition is unsuccessful
Managing Intergroup Conflict Through Stimulation
A. Bringing Outside Individuals into the Group?Hiring or transfering in individuals whose attitudes,
values and backgrounds differ from those already in the group. It ensures a diversity of viewpoints. It is
used frequently in universities, governments and business.
B. Altering the Organization’s Structure? Can help both to solve dysfunctional conflict and create
functional conflict. Competition can be created among groups.
C. Stimulating Competition?Use of incentives, rewards and bonuses for outstanding performance.
D. Making use of programmed conflict?Programmed conflict is deliberately and systematically
creating conflict even when no real differences appear to exist. Popular form is the devil's advocate
which involves assigning someone the role of critic, whose job is to uncover all the possible problems
with a proposal. The goal is to uncover all possible opposing views before making a final decision.
Stage V: Outcomes
Functional Outcomes from Conflict?Increased group performance, improved quality of decisions,
stimulation of creativity and innovation, encouragement of interest and curiosity, provision of a medium
for problem?solving, creation of an environment for self?evaluation and change.Functional Conflict can
be created by rewarding dissent and punishing conflict avoiders
Dysfunctional Outcomes from Conflict?Development of discontent, reduced group effectiveness,
retarded communication, reduced group cohesiveness and infighting among group members overcomes
group goals
Conflict and organizational performance.
Each organization has an optimal level of intergroup conflict. Too little hinders innovation and
change and too much can produce chaos and threaten the organization's survival.
Conflict and Unit Performance
When level of conflict is low or none, type of conflict is dysfunctional, units internal characteristics is
apathetic, stagnant,nonresponsive to change and lack of new ideas and unit performance is low.
When level of conflict is optimal, type of conflict is functional, units internal characteristics is viable, self
critical and innovative and unit performance outcome is high.
When level of conflict is high, type of conflict is dysfunctional, units internal characteristics is disruptive,
chaotic and uncooperative and unit performance is low.
Negotiations
• A process in which two or more parties exchange goods or services and attempt to agree on the
exchange rate for them.
• A process in which two or more parties attempt to reach acceptable agreement in a situation
characterized by some level of disagreement.
In an organizational context, negotiations may take place:
• Between two people
• Within a group
• Between groups
• Over the Internet
Negotiations are characterized by four elements:
1. Some disagreement or conflict exists, which may be perceived, felt or manifest.
2. There is some degree of interdependence between the parties.
3. The situation must be conducive to opportunistic interaction—each party must have
both the means and in the inclination to attempt to influence the other.
4. There exists some possibility of agreement, without which the negotiation cannot bring
about a positive resolution.
Bargaining strategies in Negotiation
Win?Lose Negotiating—The Zero Sum Game
It is also known as Distributive Negotiation, since the process of dividing or “distributing” resources is
used. It is quite common in organizations; characterizes most bargaining of prices, salaries, etc.
Win?Win Negotiating—A Positive Sum Approach
It is Integrative Negotiating, where each party gains without a corresponding loss by the other party. It
does not necessarily mean that everyone gets exactly what he or she wanted. It is simply an agreement
has been reached in which each party is better off then when they started.
Bargaining Characteristic Distributive
Bargaining
Integrative Bargaining
Goal Get as much of pie
as possible
Expand the pie
Motivation Win-Lose Win-Win
Focus Positions Interests
Information
Sharing
Low High
Duration of
relationships
Short term Long term
Source: Based on R. J. Lewicki and J. A. Litterer, Negotiation (Homewood, IL: Irwin, 1985,
p. 280). (exhibit taken from Organizational Behaviour, Stephen P.Robbins, Timothi A.Judge and
Seema Sanghi, 12
th
ed, Pearson education, pp567)
Staking Out the Bargaining Zone
The settlement range is the zone determined by the interface between the aspiration range of one
party A and the resistance point of the other party B and viceversa.
The Negotiation Process
BATNA
The Best Alternative To a Negotiated Agreement; the lowest acceptable value (outcome) to an individual
for a negotiated agreement. It involves the following steps?1.preparation and planning, 2.defining of
ground rules, 3.clarification and justification, 4.bargaining and problem solving and 5.closure and
implementation.
Issues in Negotiation
The Role of Mood and Personality Traits in Negotiation
Positive moods positively affect negotiations. Traits do not appear to have a significantly direct effect on
the outcomes of either bargaining or negotiating processes (except extraversion, which is bad for
negotiation effectiveness)
Gender Differences in Negotiations
Women negotiate no differently from men, although men apparently negotiate slightly better
outcomes.Men and women with similar power bases use the same negotiating styles.Women’s attitudes
toward negotiation and their success as negotiators are less favorable than men’s
Negotiating Globally?People from different nations negotiate differently
Cross?Cultural Negotiations?Conducting successful cross?cultural negotiations is a key ingredient for
many international business transactions. It is guided by parameters like language, sequence,
communication style, contract and context.
Stages of the Negotiation Process:
• Non?task surroundings
• Task?related information exchange
• Persuasion
• Concessions and agreement
Cross?Cultural Negotiation Strategies include the following:
a. Employing an agent or advisor
b. Involving a mediator
c. Inducing the counterpart to follow one’s own negotiation script
d. Adapting the counterpart’s negotiation script
e. Coordinating adjustment of both parties
f. Embracing the counterpart’s script
g. Improvising an approach.
h. Effecting symphony.
To pick a strategy, the following steps ought to be considered:
1. Reflecting on one’s culture’s negotiation practices
2. Learning the negotiation script common in the counterpart’s culture
3. Considering the relationship and contextual cues
4. Predicting or influencing the counterpart’s approach
5. Choosing a strategy
Increasing Negotiating Effectiveness
A way to think about desired outcomes is to distinguish between substantive and relationship outcome.
Substantive have to do with specific issues settled while the object in relationships is to maintain good
relationships.
The Four Factors of Negotiating Effectively
1. Obtaining substantial results—activities that focus on the content of what is
being negotiated.
2. Influencing the balance of power—through the use of persuasion, facts and
expertise, rather than dominance or deference.
3. Promoting a constructive climate—activities that are designed to facilitate
progress by minimizing the likelihood that tension or animosity between the parties becomes disruptive.
4. Obtaining procedural flexibility—activities that allow a negotiator to increase
negotiating effectiveness through increasing the type and number of option available for conducting the
negotiations.
Using Third?Party Negotiations?Often used when negotiations have broken down or stalled.
Several different approaches:
a. Mediation—a neutral party acts as a facilitator through the application
of reasoning, suggestion, and persuasion.
b. Arbitration—the third party has the power or authority to impose an
agreement.
c. Conciliation—the third party is someone who is trusted by both sides
and serve primarily as a more formal authority to influence the outcome than does a mediator.
d. Consultation?the third party is trained in conflict and conflict?resolution
skills and attempts to aid problem solving by focusing more on the relationship between the parties
than on the substance issues.
Improving Negotiations
1. Beginning the bargaining with a positive overture or small concession
and then reciprocating the opponent’s concessions.
2. Concentrating on the negotiations issues and situational factors, not on
the opponent.
3. Trying to determine the opponent’s strategy by looking below the
surface.
4. Not allowing accountability to one’s constituents or surveillance by
them to produce competitive bargaining.
5. Using power in a negotiation.
6. Being open to accepting third?party assistance.
7. Attending to the environment; being aware that the opponent’s
behavior and power are altered by it.
Questions
1. Explain Conflict in Organizations. Discuss a contemporary perspective on intergroup
conflict
2. What causes intergroup conflict? What are the causes of dysfunctional intergroup
conflict. What are the ways of managing intergroup conflict through Resolution and
Stimulating Constructive intergroup conflict?Discuss with suitable examples. Which
conflict management technique is best and why?
3. What is Negotiation? What are the negotiation tactics followed in organizations?
4. What are the issues related to negotiation ? Discuss with examples ways of Increasing
negotiation effectiveness
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