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Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Chapter 8
Conflict and Negotiation
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Chapter Outline
• Conflict Defined• Sources of Conflict• From Potential to Actual Conflict• Conflict Management and Teams• Negotiation• Issues in Negotiation
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Conflict and Negotiation
• How do we manage conflict?
• When is conflict functional?
• How do we negotiate?
Questions for ConsiderationQuestions for Consideration
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Conflict
• 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.– Functional
• Supports the goals of the group and improves its performance
– Dysfunctional• Hinders group performance
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
How Structure Can Lead to Conflict
• Stimulating conflict– Size, specialization, and composition of the
group– Too much reliance on participation– Diversity of goals among groups– Ambiguity in precisely defining where
responsibility for actions lies– Reward systems where one member’s gain is
at another’s expense
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Exhibit 8-1 How Conflict Builds
• Functional:increased
performance• Dysfunctional:
decreased groupperformance
Behaviour
Outcomes
• Competing• Collaborating• Compromising• Avoiding• Accommodating
Conflict-handling Intentions
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Conflict-Handling Intentions
• Two Dimensions– Cooperativeness
• The degree to which one party attempts to satisfy the other party’s concerns
– Assertiveness• The degree to which one party attempts to
satisfy his or her own concerns
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Specific Intentions
• Competing• A desire to satisfy one’s interests, regardless of the
impact on the other parties.
• Collaborating• A situation where 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.
• Accommodating• The willingness of one party in a conflict to place the
opponent’s interests above his or her own
• Compromising• A situation in which each party to a conflict is willing
to give up something
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Exhibit 8-2 Dimensions of Conflict-Handling
Intentions
Cooperativeness
Compromising
Uncooperative
Avoiding
Competing
Cooperative
Accommodating
Collaborating
Ass
erti
ven
ess
Un
ass
erti
veA
sser
tiv
e
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Exhibit 8-4Conflict Intensity
ContinuumAnnihilatory
conflict
Noconflict
Overt efforts to destroythe other party
Aggressive physical attacks
Threats and ultimatums
Assertive verbal attacks
Overt questioning orchallenging of others
Minor disagreements ormisunderstandings
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Types of Conflict
• Cognitive– Conflict related to differences in perspectives and
judgments• Task-oriented• Results in identifying differences• Usually functional conflict
• Affective– Emotional conflict aimed at a person rather than an
issue• Dysfunctional conflict
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Reducing Group Conflict
• Team members reduced conflict using the following tactics:– Worked with more, rather than less, information – Debated on the basis of facts– Developed multiple alternatives to enrich the level of
debate– Shared commonly agreed-upon goals– Injected humour into the decision process– Maintained a balanced power structure– Resolved issues without forcing consensus
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Negotiation
• A process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for them– 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
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Bargaining Distributive IntegrativeCharacteristic Bargaining Bargaining
Available resources
Primary motivations
Primary interests
Focus of relationships
Fixed amount of resources to be divided
I win, you lose
Opposed to each other
Short term
Variable amount of resources to be divided
I win, you win
Convergent or congruent with each other
Long term
Exhibit 8-6 Distributive versus
Integrative Bargaining
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
How to Negotiate
• Assess personal goals, consider other’s goals, develop strategy
• Identify target and resistance points– Target: what one would like to achieve– Resistance: lowest outcome acceptable
• Identify BATNA– Best Alternative To a Negotiated Agreement
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Issues in Negotiation
• Gender Differences
• Cross-Cultural Differences
• Alcohol and Negotiations
• Third-Party Negotiations
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Gender Differences
• Women – More inclined to be concerned with feelings and
perceptions, and take a longer-term view– View the bargaining session as part of an overall
relationship– Tend to want all parties in the negotiation to be
empowered– Use dialogue to achieve understanding
• Men – View the bargaining session as a separate event– Use dialogue to persuade
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Alcohol Consumption and Negotiations
– Negotiators who had been drinking• Were more aggressive and more likely to
insult, mislead, and threaten their opponent• Were more likely to make mistakes, saying
such things as "I propose a start date of 12 weeks . . . no, 4 weeks. I'm sorry, I was confused"
• Were more likely to focus on irrelevant information or misunderstand the problem
• Were not aware that alcohol had influenced their performance, when in fact it had
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Alcohol Consumption and Negotiations
– Sober negotiators •Were were more likely to look for
win-win solutions•Did not do well when bargaining
against someone who had been drinking, as the drinker tended to be far more aggressive
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Third Party Roles in Negotiations
• Conciliator
• Mediator
• Arbitrator
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Conciliator
• Trusted third party who provides an informal communication link between the negotiator and the opponent – Informal link– Used extensively in international, labour,
family and community disputes– Fact-find, interpret messages, persuade
disputants to develop agreements
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Mediator
• A neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives – Labour-management negotiations and civil court
disputes– Settlement rate is about 60%; satisfaction rate is
about 75%– Participants must be motivated to bargain and settle– Best under moderate levels of conflict– Mediator must appear neutral and non-coercive
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Arbitrator
• Has authority to dictate an agreement– Voluntary (requested) or compulsory
(imposed by law or contract)– Always results in a settlement– May result in further conflict
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Summary and Implications• Conflict can be either constructive or destructive
to the functioning of a group.• An optimal level of conflict:
– Prevents stagnation
– Stimulates creativity
– Releases tension
– And initiates the seeds for change
• Inadequate or excessive levels of conflict can hinder group effectiveness.
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Summary and Implications
• Don’t assume there's one conflict-handling intention that is always best.– Use competition when quick, decisive action is vital– Use collaboration to find an integrative solution– Use avoidance when an issue is trivial– Use accommodation when you find you’re wrong– Use compromise when goals are important
• Negotiation is an ongoing activity in groups• Intergroup conflicts can also affect an
organization’s performance.
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.
Point-CounterPoint
• Conflict Is Good for the Organization Conflict is a means by which
to bring about radical change Conflict facilitates group
cohesiveness Conflict improves group and
organizational effectiveness Conflict brings about a
slightly higher, more constructive level of tension
• All Conflicts Are Dysfunctional! The negative consequences
from conflict can be devastating
Effective managers build teamwork not conflict
Competition is good for an organization, but not conflict
Managers who accept and stimulate conflict don’t survive in organizations