Organizational Behavior: Conflict and Negotiation

Organizational Behavior:
Conflict and Negotiation
Chapter 12 1
Conflict
Conflict: “The process in which one party perceives that its

interests are being opposed or negatively affected by another
party.”
Functional (Constructive) conflict serves the

organization’s interests while
dysfunctional conflict threatens

the organization’s
interests.
Brown’s Conflict Continuum
Positive
Appropriate
Outcomes
Conflict
Neutral
Too Little Too Much

Conflict Conflict
Negative
Low Moderate Highe
Intensity
The Conflict Process
Perceived
Conflict
Sources of Manifest Conflict
Conflict Conflict Outcomes
Felt
Conflict
Desired Outcomes of Conflict
Agreement: Strive for equitable and fair
agreements that last.
Stronger relationships: Build bridges of

goodwill and trust for the future.
Learning: Greater self-awareness and creative

problem solving.
Sources of Conflict
Goal • Goals conflict with goals of others
Incompatibility
Different Values • Different beliefs due to unique

and Beliefs background, experience, training
• Caused by specialized tasks, careers
• Explains misunderstanding in cross-
cultural and merger relations
Sources of Conflict
Goal
Incompatibility
Different Values
and Beliefs
Task
Interdependence
Scarce • Increases competition for resources

Resources to fulfill goals
Ambiguity
• Lack of rules guiding relations
• Encourages political tactics
Sources of Conflict
Goal
Incompatibility
Different Values
and Beliefs
Task Lack of opportunity

Interdependence --reliance on stereotypes
Scarce Lack of ability
Resources -- arrogant communication
heightens conflict perception
Ambiguity
Lack of motivation
-- conflict causes lower motivation
Communication to communicate, increases
Problems stereotyping
Conflict Management Styles:
Orientations
 Win-win orientation
 You believe parties will find a mutually beneficial
solution to their disagreement
 Win-lose orientation
 You believe that the more one party receives,
the less the other receives
 Tends to escalate conflict, use of power/politics
Tips for Managers Whose Employees
Are Having a Personality Conflict
1. Follow company policies for diversity, anti-

discrimination, and sexual harassment.
2. Investigate and document conflict.
3. If appropriate, take corrective action (e.g., feedback or
B Mod).
4. If necessary, attempt informal dispute resolution.
5. Refer difficult conflicts to human resource specialists or
hired counselors for formal resolution attempts and
other interventions.
Skills and Best Practices: How to Build
Cross-Cultural Relationships
Behavior Rank
Be a good listener 1
Be sensitive to the needs of others 2
Tie
Be cooperative, rather than overly competitive 2
Advocate inclusive (participative) leadership 3
Compromise rather than dominate 4
Build rapport through conversations 5
Be compassionate and understanding 6
Avoid conflict by emphasizing harmony 7
Nurture others (develop and mentor) 8
Conflict Management Styles
 Competing. Involves trying to win at the other party’s
expense. Generally leads to antagonism and festering
resentment.
 Avoiding. Attempts to avoid or smooth over conflict
situations. Generally unproductive.
 Accommodating. Involves acceding completely to the
other party’s wishes or at least cooperating with little or
no attention to one’s own interests.
 Compromising. Involves an attempt to find a
satisfactory middle ground (“split the difference”)
 Collaborating. This problem-solving style is mutually
beneficial. Requires trust, open sharing of information,
and creativity.
Communication Guidelines to Build
More Productive Relationships
1. Be honest; say what’s on your mind now. Be open.
2. Be specific; provide examples.
3. Don’t use the words never and always.
4. Listen in depth; reflect and paraphrase what you hear.
5. Ask questions to clarify the meaning of what the other person is saying.
6. Focus on behavior that the other person controls.
7. Maintain good eye contact.
8. Focus on only one specific issue or behavior at a time.
9. Don’t interrupt.
10. Stay there. Don’t walk away mentally, emotionally, physically, or
psychologically.
11. Be direct and tactful.
12. Use I statements rather than you statements (e.g., “When this happens, I
feel …” rather than “When you do this, it makes me feel …”).
13. Don’t attack the other person by ridiculing, taunting, or otherwise being
rude and hostile.
14. Don’t defend yourself by blaming others, avoiding, or withdrawing.
Negotiating
Negotiation: “A give-and-take decision-making

process involving interdependent parties with different
preferences.”
Distributive negotiation: Single issue; fixed-pie; win-lose.
Integrative negotiation: More than one issue; win-win.

The
The Two
Two Types
Types of
of
Bargaining
Bargaining Strategies
Strategies
Bargaining Distributive Integrative

Characteristics Bargaining Bargaining
• Available Resources • Fixed Amount • Variable Amount
• Primary Motivations • I Win, You Lose • I Win, You Win
• Primary Interests • Opposed • Congruent
• Focus of Relationships • Short-Term • Long-Term
Chapter 12 15
An Integrative Approach:
Added-Value Negotiation
 Clarify interests.
 Identify options.
 Design alternative deal
packages.
 Select a deal.
 Perfect the deal.

Effective Negotiator
Behaviours
 Plan and Set Goals
 Gather Information
 Communicate Effectively
 Make Appropriate Concessions

..
Improving Negotiation Skills
 Research your opponent

 Begin with a positive overture
 Address problems, not personalities
 Pay little attention to initial offers
 Emphasize win-win solutions
 Create an open, trusting climate
Chapter 12 18
Third – Party Negotiations
 Mediator
 Arbitrator
 Conciliator
 Consultant

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Organizational Behavior:

Conflict and Negotiation

Conflict: “The process in which one party perceives that its

Functional (Constructive) conflict serves the

dysfunctional conflict threatens

Too Little Too Much

Stronger relationships: Build bridges of

Learning: Greater self-awareness and creative

Different Values • Different beliefs due to unique

Scarce • Increases competition for resources

Task Lack of opportunity

1. Follow company policies for diversity, anti-

Negotiation: “A give-and-take decision-making

Distributive negotiation: Single issue; fixed-pie; win-lose.

Integrative negotiation: More than one issue; win-win.

Bargaining Distributive Integrative

• Available Resources • Fixed Amount • Variable Amount

• Primary Motivations • I Win, You Lose • I Win, You Win

• Primary Interests • Opposed • Congruent

• Focus of Relationships • Short-Term • Long-Term

 Design alternative deal

 Perfect the deal.

 Make Appropriate Concessions

 Research your opponent

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