Conflict and Negotiation
Conflict and Negotiation
Conflict and Negotiation
Conflict in the workplace is inevitable, and when it happens, there is always that
great tendency for it to disrupt the flow of productive activities in the organization.
As conflicts cannot be disregarded, efforts should be exerted to manage them.
Conflict
Conflict occurs whenever deviations exist in a social situation over issues of
substance. Emotional antagonisms cause frictions between individuals or
groups. Traditional view of conflict revealed that all conflicts are harmful and
must be avoided. Professionals of the human relations avowed that conflict
was a natural event in all groups and organizations. Since conflict was
predictable, the human relations discipline supported acceptance of conflict.
Supporters rationalized its existence: It cannot be eradicated and there are
even times when conflict may promote a group's performance. The human
relations scrutiny had dominance on conflict theory from the late 1940s
through the mid-1970s. While the human relations approach accepted
conflict, the interactionist approach supports conflict on the grounds that a
harmonious, passive, calm, and helpful group is prone to becoming static,
lethargic, and nonresponsive to needs for transform and innovation. The
interactionist approach had great contribution in developing conflict
viewpoint and described that conflict is encouraging group leaders to
maintain a continuing minimum level of conflict to keep the group practical,
self-critical, and imaginative. Katz and Kahn (1978) observed that “every
aspect of organizational life that creates order and coordination of effort
must overcome other tendencies to action, and in that fact lies the
potentiality for conflict”. Conflict in organizations is predictable given that
humans therein need to manage their mutual interdependence. According to
modern theory, conflicts between human beings are inescapable. They
appear as a natural result of change and can be valuable to the organization,
if managed competently. Current theory (Kirchoff and Adams, 1982)
considers modernism as a device for bringing together various ideas and
viewpoints into a new and different fusion. An atmosphere of tension, and
hence conflict, is essential in any organization working with new ideas.
Main causes of conflict in organization are poor communication, lack of
openness, failure to respond to employee needs. In organizations, there are
numerous groups with which people might categorize. These might be based
on personal characteristics such as race or gender, job function like sales or
production, or job level such as manager or non-manager. Additionally,
differences between groups might be highlighted by real differences in
Human Behavior in Organization
Levels of Conflict
3. Realization,
4. Manifestation of conflict,
Conflict process:
Major benefits of functional conflict are that it surfaces important problems so they
can be addressed. It causes careful consideration of decisions and causes
reconsideration of decisions. It increases information available for decision making
and provides opportunities for creativity. At the same time, there are numerous
disadvantages of dysfunctional conflict. Conflict in organization can diverts
energies, harms group cohesion, promotes interpersonal hostilities, creates overall
negative environment, can decrease work productivity and job satisfaction. And can
contribute to absenteeism and job turnover.
Outcomes of conflict in organization: In the context to organizations, conflict is
the incongruity between employees, departments, managers or groups of people
within the business unit. Disagreements may develop due to differences in opinion,
beliefs or detrimental competition that may yield either positive or negative
outcomes. Despite of level of conflict, major functional and dysfunctional
consequences can occur from conflict. Conflict that results into healthy competition
promotes innovation and inventiveness amongst workers. During conflict, there is a
high sense of need that results into the appearance of divergent viewpoints
amongst employees. It is vital among the employees to develop new policy and
operating business to maintain with internal competition from their colleagues.
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Human Behavior in Organization
Consequences of conflict
Conflict management
Conflicts are unavoidable in an organization. However, conflicts can be used as
motivators for transformation in organization. In business environment, several
factors create competition; they may be differing departmental objectives,
individual objectives, and competition for use of resources or differing viewpoints.
These have to be integrated and exploited powerfully to achieve organizational
objectives. A manager should be competent to observe emerging conflicts and take
proper preventative action. The manager should recognize the causes creating
conflict, the outcome of conflict, and various methods by which conflict can be
managed in the organization. In this way, the manager should develop an approach
to resolve conflicts before their troublesome repercussions have an impact on
productivity and creativity. Therefore, a manager should possess special skills to
react to conflict situations, and should create a good atmosphere for communication
between conflicting groups. Tosi, Rizzo, and Carroll (1986) developed four ways to
manage conflicts.
Negotiation
Majority of companies have to negotiate in many areas of organizational conflict.
Negotiation is an open process for two parties to find a satisfactory solution to a
complex conflict. Negotiation is process in which two or more parties exchange
goods or services and attempt to agree on the exchange rate for them. In an
organizational context, negotiations may take place between two people, within a
group, between groups and over the Internet. Negotiation can take extensive forms
from skilled negotiator acting on behalf of a particular organization or position in a
formal setting to an informal negotiation between friends. Negotiation can be
contrasted with intervention, where a neutral third party listens to each side's
arguments and attempts to help craft an agreement between the parties. It can also
be compared with arbitration, which resembles a legal proceeding. In arbitration,
both sides make an argument as to the merits of their case and the arbitrator
decides the outcome. This negotiation is also called positional or hard-bargaining
negotiation. Basically, negotiation is a problem-solving procedure in which two or
more people willingly discuss their differences and try to reach a joint decision on
their common concerns. Negotiation requires participants to recognize issues, about
which they differ, educate each other about their needs and interests, generate
possible settlement options and bargain over the terms of the final agreement.
Winning negotiations result in some kind of exchange or promise being made by the
negotiators to each other. The exchange may be tangible or intangible.
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Human Behavior in Organization
Research into negotiation behaviour has mostly been conducted from one of three
theoretical traditions that include Individual differences approach, the motivational
approach or the cognitive approach (Thompson, 1990). The individual differences
approach scrutinizes the types of personal characteristics that affect negotiator
behaviour, the negotiation process and the types of outcomes achieved. Research
from this perspective might, for example, investigate negotiation behaviour as a
function of gender (Walters, Stuhlmacher and Meyer, 1998), culture (Brett, 2000) or
experience (Neale & Northcraft, 1986).
Motivational approaches search to establish how negotiator aspirations and goals
influence bargaining behaviour and the resultant outcomes. Researchers essentially
consider the way that certain aspirations for self and other affect outcomes and
vary as a result of the negotiation interaction (Wilson & Putnam, 1990). The
cognitive approach attempts to determine how individuals construe events and
reach judgments about courses of action during negotiation. This approach is
grounded in information processing theory (Carroll and Payne, 1991), which
essentially posits that, when individuals experience events, stored information is
activated in the mind and is then used to reach the next decision. This activation
and subsequent processing has been found to occur in an economically efficient
manner (Thompson, 1990). Such competence, involves various cognitive shortcuts
that impair judgments, thereby limiting a negotiator's effectiveness (Neale and
Bazerman, 1991).
Negotiation theorists generally differentiate between two types of negotiation.
Different theorists explained diverse labels for the two general types and distinguish
them in different ways. The negotiator must select a general negotiation approach.
There are many procedures, but the most common approaches to negotiation are
positional bargaining and interest-based bargaining.
First is distributive negotiation, also called positional negotiation. Positional
bargaining is a negotiation approach in which a series of positions, alternative
solutions that meet particular interests or needs, are selected by a negotiator,
ordered sequentially according to preferred outcomes and presented to another
party in an effort to reach agreement. The first or opening position represents that
maximum gain hoped for or expected in the negotiations. Each following position
demands less of an opponent and results in fewer benefits for the person
advocating it. Agreement is reached when the negotiators' positions converge and
they reach an acceptable settlement range. Major benefits of this approach is that it
may prevent premature concessions, useful in dividing or compromising on the
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Human Behavior in Organization
distribution of fixed-sum resources, does not require trust to work and does not
require full disclosure of privileged information. It tends to approach negotiation on
the model of bargaining in a market. In a distributive negotiation, each side often
assumes an extreme position, knowing that it will not be accepted, and then
employs an amalgamation of cleverness, bluffing, and brinkmanship in order to
yield as little as possible before reaching a deal. Distributive bargainers visualize
negotiation as a process of distributing a fixed amount of value.
Second is integrative negotiation, also known as interest-based or principled
negotiation. It is process that attempts to develop the quality and likelihood of
negotiated agreement by providing an alternative to conventional distributive
negotiation techniques. Interest-based bargaining which involves parties in a
collaborative effort to jointly meet each other's needs and satisfy mutual interests
rather than moving from positions to counter positions to a compromise settlement,
negotiators pursuing an interest-based bargaining approach attempt to identify
their interests or needs and those of other parties prior to developing specific
solutions. After the interests are identified, the negotiators jointly search for a
variety of settlement options that might satisfy all interests, rather than argue for
any single position. The parties select a solution from these jointly generated
options. This approach to negotiation is frequently called integrated bargaining
because of its emphasis on cooperation, meeting mutual needs, and the efforts by
the parties to expand the bargaining options so that a wiser decision, with more
benefits to all, can be achieved. While distributive negotiation assumes there is a
fixed amount of value to be divided between the parties, integrative negotiation
often tries to create value in the course of the negotiation. It focuses on the
fundamental interests of the parties rather than their arbitrary starting positions,
approaches negotiation as a shared problem rather than a personalized battle, and
insists upon adherence to objective, principled criteria as the basis for agreement.
Business groups choose to negotiate in order to gain recognition of either issues or
parties, test the strength of other parties, obtain information about issues, interests
and positions of other parties, educate all sides about a particular view of an issue
or concern, ventilate emotions about issues or people, change perceptions, mobilize
public support, buy time, bring about a desired change in a relationship, develop
new procedures for handling problems, make substantive gains and solve a
problem.
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Human Behavior in Organization
participation in the process. If it appears that negotiations will have only win/lose
settlement possibilities and that a party's needs will not be met as a result of
participation, parties will be reluctant to enter into dialogue.
The people must have the authority to decide: In order to obtain successful
outcome, participants must have the power to make a decision. If they do not have
a lawful and recognized right to decide, or if a clear approval process has not been
established, negotiations will be limited to an information exchange between the
parties.
Willingness to compromise: It is found that all negotiations do not require
compromise. On occasion, an agreement can be reached which meets all the
participants' needs and does not require a sacrifice on any party's part. However, in
other disputes, compromise willingness to have less than 100 percent of needs or
interests satisfied may be necessary for the parties to reach a satisfactory
conclusion. Where the physical division of assets, strong values or principles
preclude compromise, negotiations are not possible.
The agreement must be rational and be implemented: Some settlements may
be substantively acceptable but may be impossible to implement. Participants in
negotiations must be able to establish a realistic and workable plan to carry out
their agreement if the final settlement is to be acceptable and hold over time.
External factors favourable to settlement: Often factors external to
negotiations hamper or promote settlement. Views of associates or friends, the
political climate of public opinion or economic conditions may promote agreement
or continued chaos. Some external conditions can be managed by negotiators while
others cannot. Favourable external conditions for settlement should be developed
whenever possible.
Resources to negotiate: Members in negotiations must develop interpersonal
skills required for bargaining and, where suitable, the money and time to engage
fully in dialogue procedures. Insufficient or imbalanced resources may block the
beginning of negotiations or obstruct resolution.
Preparation and Planning: Before the start of negotiations one must be aware of
conflict the history leading to the negotiation the people involved and their
perception of the conflict expectations from the negotiations etc.
Definition of Ground Rules: Once the planning and strategy is developed, one
has to begin defining the ground rules and procedures with the other party over the
negotiation itself that will do the negotiation. Where will it happen? What time
constrains, if any will apply? To what issues will negotiations be limited? Will there
specific procedure to follow in an impasse is reached? During this phase the parties
will also exchange their initial proposals or demands.
Clarification and Justification: When initial positions have been exchanged, both
the parties will explain amplify, clarify, bolster and justify their original demands.
This need not be confrontational. Rather it is an opportunity for educating and
informing each other on the issues why they are important and how each arrived at
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Human Behavior in Organization
their initial demands. This is the point where one party might want to provide the
other party with any documentation that helps support its position.
Bargaining and Problem Solving: The 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.
Closure and Implementation: The final step in the negotiation process is
formalization the agreement that has been worked out and developing and
procedures that are necessary for implementation and monitoring. For major
negotiations, this will require hammering out the specifics in a formal contract.
Negotiation process:
There is a major role of mood and personality traits in Negotiation. Positive moods
optimistically affect negotiations. Traits do not appear to have a considerably direct
effect on the outcomes of either bargaining or negotiating processes. There are also
gender differences in Negotiations. Women negotiate no differently from men,
although men in fact negotiate better outcomes. Men and women with similar
power in organization use the same negotiating styles. Women’s attitudes toward
negotiation and their success as negotiators are less favourable than men.
Challenges in negotiation
The negotiation approaches are intended to benefit organization but sometimes it is
difficult to reach to a conclusion and satisfy all parties. There are many challenges
faced by parties to negotiation and it is necessary to overcome them to effectively
operate business. The main challenge to negotiation is when individuals are not
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Human Behavior in Organization
ready to understand the second party at all. There are individuals who only think
about their interests and tend to ignore the interest and needs of the other. It is
important to find out the expectations of the other party as well. For business
negotiation, managers will definitely be appreciated if employee saves
organization’s money. Lack of time is also challenge to effective negotiation. One
should never be in a hurry. Person need time to convince others. It is advised to
analyse things carefully and then only come to conclusions. Going unprepared for a
negotiation is intolerable. It is said that don’t underestimate the second party. One
should do his homework carefully. Check out even the smallest details before going
for a negotiation. Lack of patience also leads to a bad negotiation. Every individual
has the right to express his views and one should not interfere in his speech. People
might not agree to him but at least listen to him first. Sit with the second party and
make him realize how the deal would benefit you as well as him. Criticism, sarcasm,
derogatory remarks are the major threats to a successful negotiation. Never ever
say anything which might hurt others. It is advised to avoid last minute changes as
it result in confusions and misunderstandings. The two parties must be very clear on
what they expect from each other, and must stick to it. Being too rigid is one of the
prime challenges to an effective negotiation. Negotiator must be little flexible. Stay
alert while individual is negotiating. Lack of confidence is again major threats to
negotiation.
Many people label negotiation as a formal process of good deal between labour and
management or purchaser and seller. Nevertheless, negotiating is more than this
concept. Job applicants negotiate for their salary, workers bargain for better job
projects. To include all of these situations, it can be explained that negotiation is "a
decision-making process among interdependent parties who do not share identical
preferences." Negotiation comprises conflict management in that it is an effort
either to avert conflict or to resolve existing conflict. Negotiation is an attempt to
gain a reasonable exchange among or between the parties. Successful negotiating
needs good knowledge of techniques.
To summarize, Negotiation is the most powerful approach to make decisions and
manage disputes in organization. Negotiation is among the most commonly utilized
modes of conflict resolution. Negotiation strategies are grouped as being either
distributive or integrative. Many research studies have demonstrated that these
different approaches to negotiation regularly lead to vastly different behavioral and
attitudinal outcomes. Cognitive descriptions do not enable persons to fully
comprehend nor internalize these distinctly different approaches to negotiation.
Therefore, there exists a need to develop and use negotiation simulations to meet
these objectives.
Reference/s:
https://www.civilserviceindia.com/subject/Management/notes/organisational-
behaviourand-design-conflict-and-negotiation.html
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