ob - conflict & negotiation

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Krietner/Kinicki, 200 Chapter 13 Managing Conflict & Negotiating BUSA 220 Spring 2012 Wallace

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Partially based on the Kreitner/Kinicki (2009, McGraw Hill/Irwin) textbook with updated data from a variety of cited sources.

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Page 1: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Chapter 13Managing Conflict &Negotiating

BUSA 220

Spring 2012

Wallace

Page 2: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Conflict

• One party perceives its interests are being opposed or set back by another party

• Is conflict always bad?• During a conflict, if

someone used the term “war” vs. “opportunity”, how would it make you feel?

Page 3: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Conflict Intensity & Outcomes

Low ModerateIntensity

High

Too littleconflict

Appropriateconflict

Too muchconflictNegative

Neutral

PositiveO

utc

omes

Page 4: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Functional vs. Dysfunctional• Functional Conflict

serves organization’s interests– Typically issue-focused– Stimulates creativity

• Dysfunctional Conflict threatens organization’s interests– Typically person-

focused– Breeds hostility– Stifles communication

Page 5: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Dysfunctional Conflict Costs• Fortune 500 senior executives spend 20

percent of their time in litigation activities.

• Typical managers spend up to 30 percent of their time dealing with conflict.

• The turnover costs for an employee are anywhere from between 75 percent and 150 percent of their annual salary.

• 16 percent of employees report conflict with a supervisor as the main reason for leaving their last job.

Page 6: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Why Conflict Matters• “The best insurance against crossing the

ethical divide is a roomful of skeptics.”

• “CEOs must actively encourage dissent among senior managers by creating decision-making processes, reporting relationships, and incentives that encourage opposing viewpoints…”

• “By advocating dissent, top executives can create a climate where wrongdoing will not go unchallenged.”

Source: The crisis in corporate governance, 5/6/2002, BusinessWeek Special Report

Page 7: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Leadership w/out Easy Answers

There is a relationship between transformational leadership, organizational citizenship and follower performance. There is an even higher correlation between the level of debate among subordinates and management and higher levels of successful innovation. Adaptive conflict, the ability of followers to have input, be heard and acknowledged by management, is at the core of successful transformational leadership. (Heifetz, 1994)

Page 8: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Conflict Sources• Incompatible

personalities or value systems

• Role ambiguity/ overload

• Interdependent tasks

• Competition for limited resources

• What else can you think of?

Page 9: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Desired Conflict Outcomes

1. Agreement: strive for equitable and fair agreements that last

2. Stronger Relationships: build bridges of goodwill and trust for the future

3. Learning: greater self-awareness and creative problem solving

Page 10: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Personality ConflictsDirk and Linda are working closely together on a project. However, they have very different personalities and working styles. For example, Dirk prefers to create plans and checklists and Linda has a more free-flowing approach to work.• Linda is now so frustrated she is concerned

the project will not get completed.• What type of conflict is this?• What should she do?

Page 11: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Advice• All employees need to be familiar

with and follow company policies for diversity, anti-discrimination, and sexual harassment

• Communicate directly with the other person to resolve the perceived conflict

• Avoid dragging co-workers into the conflict

• If dysfunctional conflict persists, seek help from direct supervisors or human resource specialists

Page 12: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Dealing with Personality

Chris works with Dirk on another project. Dirk approaches Chris and begins to complain about Linda.• What type of

conflict is this?• As a third-party,

what should he do?

Page 13: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Personality Conflict/Incivility

Source: Porath, C. & Pearson, C. (2009). How Toxic Colleagues Corrode Performance, Harvard Business Review, Vol. 87, pg. 24.

Common examples of incivility• Berating bosses• Employees who take credit for other’s

work• Assigning blame• Spreading rumors• Excluding teammates

Page 14: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Personality Conflict Impacts

Targets of incivility reported:• 48% decreased their work effort• 47% decreased their time at work• 38% decreased their work quality• 66% said their performance declined• 80% lost work time worrying about the

incident• 63% lost time avoiding the offender• 78% said their commitment to the

organization declinedSource: Porath, C. & Pearson, C. (2009). How Toxic Colleagues Corrode Performance, Harvard Business Review, Vol. 87, pg. 24.

Page 15: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Managing Conflict

Sarah, Dirk and Linda’s boss, has just been informed that the completion of the project is in jeopardy due to conflict between Dirk and Linda. Linda is now so frustrated she is concerned the project will not get completed. As their manager, what should she do?

Page 16: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Overcoming Group Conflict

• Conflict within the group is high

• There are negative interactions between groups

• Influential third-party gossip about other group is negative

• Work to eliminate specific negative interactions between groups

• Conduct team building to reduce intragroup conflict and prepare employees for cross-functional teamwork

• Encourage personal friendships and good working relationships across groups and departments

• Foster positive attitudes toward members of other groups

• Avoid or neutralize negative gossip across groups or departments

Recommended actions:Level of perceivedintergroup conflict

tends to increase when:

Page 17: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Building Relationships

8Nurture others (develop and mentor)

7Avoid conflict by emphasizing harmony

6Be compassionate and understanding

5Build rapport through conversations

4Compromise rather than dominate

3Advocate participative leadership

2Be cooperative not competitive

2Be sensitive to the needs of others

1Be a good listener

RankBehavior

Tie

Page 18: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

What Do You Think?The manufacturing and research departments of XYZ corporation often have different perspectives resulting in conflict. Within group cohesiveness is strong but animosity across the groups is growing. To promote harmony and functional conflict between the groups the company should NOT:

a. Keep the groups apart to minimize interaction and conflict.

b. Establish cross-functional project teams so members of both groups work together.

c. Stop people who gossip about the other group.

d. Have the groups attend a social function together.

Page 19: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Stimulating Functional ConflictDevil’s Advocacy Approach

1. Action proposed2. Devil’s advocate criticizes it3. Both sides presented to

decision makers4. Decision is made and

monitoredDialectic Decision Method

5. Action proposed6. Assumptions identified7. Counterproposal generated

on different assumptions8. Debate takes place9. Decision is made and

monitored

Page 20: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Conflict Management Styles

Integrating Obliging

Dominating Avoiding

Compromising

High Low

High

LowCon

cern

for

Oth

ers

Concern for Self

Page 21: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

What Do You Think?Alfonso tends to be an agreeable person with a high need for affiliation. When he encounters conflict situations at work which conflict management style is he most and least likely to use, respectively.

a. Dominating; Integratingb. Integrating;

Compromisingc. Compromising; Avoidingd. Obliging; Dominatinge. Avoiding; Obliging

Page 22: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Third Party InterventionsConsidered less political with low risk of

dysfunctional conflict.

1.Reroute complaints by coaching the sender to find ways to constructively bring up the matter with the receiver. Do not carry messages for the sender

2.Facilitate a meeting with the sender and receiver to coach them to speak directly and constructively with each other

3.Transmit verbatim messages with the sender’s name included and coach the receiver on constructive ways to discuss the message with the sender

Page 23: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Third Party InterventionsConsidered more political with high risk of

dysfunctional conflict.

4. Carry the message verbatim but protect the sender’s name

5. Soften the message to protect the sender

6. Add your spin to the message to protect the sender

7. Do nothing. The participants will triangle in someone else

8. Do nothing and spread the gossip. You will triangle in others

Page 24: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Alternative Dispute ResolutionResolve conflict through facilitation, conciliation, peer review, ombudsman, and:• MediationNeutral third party guides

parties to make a mutually acceptable solution

•ArbitrationParties agree to accept

the decision of the neutral arbitrator

Page 25: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Negotiation

Give and take process between two parties.• Distributive negotiation: Single issue;

fixed-pie; win-lose.• Integrative negotiation: More than one

issue; “broadening the pie”;win-win.

Page 26: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Integrative NegotiationSteps

1. Clarify Interests

2. Identify options

3. Design alternative deal packages

4. Select a Deal

5. Perfect the deal

Jointly

1. Discuss respective needs

2. Discuss respective elements of value

3. Exchange deal packages

4. Discuss and select from feasible deal packages – be creative

5. Discuss unresolved issues; build relationships for future negotiations; put in writing

Separately

1. Identify tangible and intangible needs

2. Identify elements of value

3. Mix and match elements of value into different deals

4. Analyze deal packages proposed

Page 27: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Unethical Tactics• Lies• Exaggerated praise• Deception• Weakening the opponent• Strengthening one’s own

position• Nondisclosure• Information exploitation• Change of mind• Distraction• Maximization

Page 28: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

What Do You ThinkBefore entering a negotiation with a client over the price of his company’s service, Ben thinks about the client’s interests and his company’s interests. He then brainstorms several options that would satisfy both needs. The approach Ben is taking represents:

a. Integrative negotiation

b. Distributive negotiation

c. “I win, you lose” negotiation

d. Compromise negotiation

Page 29: OB - Conflict & Negotiation

Krietner/Kinicki, 2009

Managing Conflict Tips• Speak your mind and

heart• Listen well• Express strong feelings

appropriately• Remain rational for as

long as you can• Review what has been

said• Learn to give and take• Avoid all harmful

statementsHR Magazine, May 2005, pg. 10