Conflict and Negotiation

Dr. G C Mohanta, BE, MSc(Engg), MBA, PhD(Mgt)

Professor

What is Conflict? Conflict is the process that begins when one partyperceives that another party has negatively affected, or isabout to negatively affect, something that the first partycares about.

Conflict is the self-interested struggle that arises whenthe goal-directed behavior of one person or group blocksthe goal-directed behavior of another person or group.

Interpersonal conflict is a process that occurs when oneperson, group, or organizational subunit frustrates thegoal attainment of another.

Level of Conflict on Organizational Performance

Sources of Conflict Differentiation

Differences in functional orientations

Status inconsistencies

Task relationships

Overlapping authority

Task interdependencies

Incompatible evaluation systems

Scarcity of resources

Different Views on Conflict

Traditional View – conflict is harmful and must be avoided

Human Relations View – conflict is a natural and inevitable outcome in any group and need not be negative

Interactionist View – conflict is encouraged to prevent group from becoming stale, some conflict is absolutely necessary

Different Views on Conflict (Contd.)

Functional conflict - supports the goals of the work group and improves its performance

Dysfunctional conflict - prevents group from achieving its goals

Types of Conflict

Task conflict - content and goals of the work

low-to-moderate levels are functional

Relationship conflict -interpersonal relationships

almost always dysfunctional

Process conflict - how work gets done

low levels are functional

Pondy’s Model of Organizational Conflict

Conflict is a process that consists of five sequential stages

Stage 1: Latent conflict - no outright conflict exists, but there is a potential for conflict because of several latent factors Sources of conflict include:

Interdependence Difference in goals and priorities Bureaucratic factors Incompatible performance criteria Competition for scarce resources

Pondy’s Model of Organizational Conflict (contd.)

Stage 2: Perceived conflict - subunits become aware of conflict and begin to analyze it Conflict escalates as groups battle over the

cause of conflict

Stage 3: Felt conflict - subunits respond emotionally to each other, and attitudes polarize into “us-versus-them” Cooperation between units decreases What began as a small problem escalates

into huge conflict

Pondy’s Model of Organizational Conflict (contd.)

Stage 4: Manifest conflict - subunits try to get back at each other & organizational effectiveness suffers

Fighting and open aggression

Violence

Sabotage

Physical intimidation

Lack of cooperation

Passive aggression – doing nothing

Stage 5: Conflict aftermath - conflict is resolved in some way

If sources of conflict are not resolved, the dispute will arise again

Individual-Level Conflict Management

Manager meets with employees in conflict. All understand facts of conflict

Manager summarizes dispute in written form

Manager discusses facts in report with each employee separately and works out a common solution

Manager gets commitment to resolving dispute

Group-Level Conflict Management

Avoiding

Accommodating

Competing

Compromise

Collaborating

Avoiding

A conflict management style characterized by low assertiveness of one’s own interests and low cooperation with the other party.

It might be a sensible response when:

The issue is trivial.

Information is lacking.

People need to cool down.

The opponent is very powerful and hostile.

Accommodating

A conflict management style in which one cooperates with the other party, while not asserting one’s own interests.

It can be an effective strategy when:

You are wrong.

The issue is more important to the other party.

You want to build good will.

Competing

A conflict management style that maximizes assertiveness and minimizes cooperation.

It can be effective when:

You have a lot of power.

You are sure of your facts.

The situation is truly win-lose.

You will not have to interact with the other party in the future.

Compromise

A conflict management style that combines intermediate levels of assertiveness and cooperation.

It is a sensible reaction to conflict stemming from scarce resources and it is a good fall-back position if other strategies fail.

Collaborating

A conflict management style that maximizes both assertiveness and cooperation.

It is an attempt to secure an integrative agreement that fully satisfies the interests of both parties (a win-win resolution).

It works best when the conflict is not intense and when each party has information that is useful to the other.

Negotiation

Negotiation is the process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them

Negotiation

Compromise

Initial Offer

Counteroffers

Concessions

Negotiation Process

Individual Differences in Negotiation

Personality

Gender

Cultural

Personality

The best distributive bargainer appears to be a disagreeable introvert

Those who can check their egos at the door are able to negotiate better agreements

Gender Differences in Negotiation

Men have been found to negotiate better outcomes than women, although the difference is relatively small

Women may unduly penalize themselves by failing to engage in negotiations when such action would be in their best interest

Cultural Differences in Negotiations

Cultural context significantly influences

The amount and type of preparation for bargaining

The relative emphasis on task versus interpersonal relationships

The tactics used

Where the negotiation should be conducted

Improving Negotiation Skills

Set Ambitious Goals

Pay Little Attention to Initial Offers

Research Your Opponent

Address the Problem, Not the Personalities

Be Creative and Emphasize Win-Win Solutions