Organizational Behavior: Faisal Masood

Organizational Behavior
Negotiations and Resolving Conflicts Presented By:
Faisal Masood
01-03-2010
OBJECTIVES LEARNING
Organizational Behavior
1. Define conflict.
2. Differentiate between the traditional, human relations, and interactionist views of conflict. 3. Contrast task, relationship, and process conflict. 4. Outline the conflict process. 5. Describe the five conflict-handling intentions.
6. Contrast distributive and integrative bargaining.
O B J E C T I V E S (contd) LEARNING
7. Identify the five steps in the negotiating process.

8. Describe cultural differences in negotiations.
Conflict
Conflict Defined
Is 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.
Is 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
Transitions in Conflict Thought

Traditional View of Conflict
The belief that all conflict is harmful and must be avoided.
Causes: Poor communication Lack of openness
Failure to respond to employee needs
Transitions in Conflict Thought (contd)

Human Relations View of Conflict
The belief that conflict is a natural and inevitable outcome in any group.
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.
Functional versus Dysfunctional Conflict

Functional Conflict Conflict that supports the goals of the group and improves its performance.
Dysfunctional Conflict Conflict that hinders group performance.
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.
The Conflict Process
Stage I: Potential Opposition or Incompatibility

Communication
Semantic difficulties, misunderstandings, 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
Stage II: Cognition and Personalization

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 creating anxiety, tenseness, frustration, or hostility.
Conflict Definition
Negative Emotions
Positive Feelings
Stage III: Intentions

Intentions Decisions to act in a given way.
Cooperativeness: Attempting to satisfy the other partys concerns. Assertiveness:
Attempting to satisfy ones own concerns.
Dimensions of Conflict-Handling Intentions
Stage III: Intentions (contd)

Competing A desire to satisfy ones interests, regardless of the impact on the other party to the conflict. Collaborating
A situation in which the parties to a conflict each desire to satisfy fully the concerns of all parties. Avoiding
The desire to withdraw from or suppress a conflict.
Stage III: Intentions (contd)

Accommodating
The willingness of one party in a conflict to place the opponents interests above his or her own.
Compromising
A situation in which each party to a conflict is willing to give up something.
Stage IV: Behavior

Conflict Management The use of resolution and stimulation techniques to achieve the desired level of conflict.
Conflict-Intensity Continuum
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
Conflict Management Techniques

Conflict Resolution Techniques
Communication
Bringing in outsiders Restructuring the organization
Appointing a devils advocate
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
Creating Functional Conflict

Reward dissent and punish conflict avoiders.
Stage V: Outcomes
Dysfunctional Outcomes from Conflict
Development of discontent
Reduced group effectiveness

Retarded communication Reduced group cohesiveness Infighting among group members overcomes group goals
Negotiation
Negotiation A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them. BATNA The Best Alternative To a Negotiated Agreement; the lowest acceptable value (outcome) to an individual for a negotiated agreement.
Bargaining Strategies
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.
Distributive Versus Integrative Bargaining

Bargaining Characteristic Available resources Primary motivations Distributive Characteristic Fixed amount of resources to be divided I win, you lose Integrative Characteristic Variable amount of resources to be divided I win, you win
Primary interests
Focus of relationships
Opposed to each other

Short term
Convergent or congruent with each other

Long term
Staking Out the Bargaining Zone
The Negotiation Process
Issues in Negotiation
The Role of Personality Traits in Negotiation
Traits do not appear to have a significantly direct effect on the outcomes of either bargaining or negotiating processes.
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. Womens attitudes toward negotiation and their success as negotiators are less favorable than mens.
Why American Managers Might Have Trouble in CrossCultural Negotiations
Italians, Germans, and French dont soften up executives with praise before they criticize. Americans do, and to many Europeans this seems manipulative. Israelis, accustomed to fast-paced meetings, have no patience for American small talk. British executives often complain that their U.S. counterparts chatter too much. Indian executives are used to interrupting one another. When Americans listen without asking for clarification or posing questions, Indians can feel the Americans arent paying attention. Americans often mix their business and personal lives. They think nothing, for instance, about asking a colleague a question like, How was your weekend? In many cultures such a question is seen as intrusive because business and private lives are totally compartmentalized.
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.
Third-Party Negotiations (contd)

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.
Conflict and Unit Performance
Conflict-Handling Intention: Competition

When quick, decisive action is vital (in emergencies); on important issues.
Where unpopular actions need implementing (in cost cutting, enforcing unpopular rules, discipline).
On issues vital to the organizations welfare. When you know youre right. Against people who take advantage of noncompetitive behavior.
Conflict-Handling Intention: Collaboration

To find an integrative solution when both sets of concerns are too important to be compromised.
When your objective is to learn.

To merge insights from people with different perspectives.
To gain commitment by incorporating concerns into a consensus.

To work through feelings that have interfered with a relationship.
Conflict-Handling Intention: Avoidance

When an issue is trivial, or more important issues are pressing. When you perceive no chance of satisfying your concerns. When potential disruption outweighs the benefits of resolution. To let people cool down and regain perspective. When gathering information supersedes immediate decision. When others can resolve the conflict effectively When issues seem tangential or symptomatic of other issues.
Conflict-Handling Intention: Accommodation

When you find youre wrong and to allow a better position to be heard. To learn, and to show your reasonableness. When issues are more important to others than to yourself and to satisfy others and maintain cooperation. To build social credits for later issues. To minimize loss when outmatched and losing. When harmony and stability are especially important. To allow employees to develop by learning from mistakes.
Conflict-Handling Intention: Compromise

When goals are important but not worth the effort of potential disruption of more assertive approaches. When opponents with equal power are committed to mutually exclusive goals. To achieve temporary settlements to complex issues. To arrive at expedient solutions under time pressure. As a backup when collaboration or competition is unsuccessful.
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Organizational Behavior

Negotiations and Resolving Conflicts Presented By:

6. Contrast distributive and integrative bargaining.

7. Identify the five steps in the negotiating process.

Encompasses a wide range of conflicts that people experience in organizations

Transitions in Conflict Thought

The belief that all conflict is harmful and must be avoided.

Causes: Poor communication Lack of openness

Failure to respond to employee needs

Transitions in Conflict Thought (contd)

Functional versus Dysfunctional Conflict

Dysfunctional Conflict Conflict that hinders group performance.

Conflict based on interpersonal relationships. Process Conflict

The Conflict Process

Stage I: Potential Opposition or Incompatibility

Stage II: Cognition and Personalization

Stage III: Intentions

Cooperativeness: Attempting to satisfy the other partys concerns. Assertiveness:

Attempting to satisfy ones own concerns.

Dimensions of Conflict-Handling Intentions

Stage III: Intentions (contd)

Stage III: Intentions (contd)

A situation in which each party to a conflict is willing to give up something.

Stage IV: Behavior

Conflict Management Techniques

Conflict Management Techniques

Appointing a devils advocate

Improved quality of decisions

Creating Functional Conflict

Reduced group effectiveness

Distributive Versus Integrative Bargaining

Opposed to each other

Convergent or congruent with each other

Staking Out the Bargaining Zone

The Negotiation Process

Gender Differences in Negotiations

Why American Managers Might Have Trouble in CrossCultural Negotiations

Third-Party Negotiations (contd)

Conflict and Unit Performance

Conflict-Handling Intention: Competition

Conflict-Handling Intention: Collaboration

When your objective is to learn.

To gain commitment by incorporating concerns into a consensus.

Conflict-Handling Intention: Avoidance

Conflict-Handling Intention: Accommodation

Conflict-Handling Intention: Compromise

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