Organizational behavior and management Chapter 11

Chapter 11 highlights

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Chapter 11
Managing Conflict
and Negotiations

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Learning Objectives
1.Explain the contemporary perspective on conflict
2.Describe the causes of intergroup conflict.
3.Identify several consequences of dysfunctional
intergroup conflict
4.Compare approaches for managing conflict through
resolution
5.Summarize how organizations stimulate constructive
intergroup conflict
6.Understand the differences between win-win and win-
lose negotiation
7.Give examples of different types of negotiation tactics
8.Explain how negotiation effectiveness can be increased

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Introduction
•To perform, interdependent individuals
and groups must establish working
relationships
•Across organizational boundaries
•Between individuals
•Among groups such interdependence
may foster either cooperation or conflict

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Intergroup Conflict
Conflict is inevitable, but neither inherently good
nor bad
•Too much or too little conflict can have negative
consequences
•Some conflict situations produce nothing positive
while others improve decision quality and
employee relations
•The critical issue is not whether conflict exists,
but how it is managed

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Functional Conflict
A confrontation between groups that enhances and
benefits the organization’s performance
–Without it, there would be little commitment to
change, and most groups would become stagnant
Functional conflict can…
–Lead to increased awareness of problems
–Result in broader, more productive searches for
solutions
–Facilitate positive change, adaptation, and innovation

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Dysfunctional Conflict
•Confrontation or interaction between groups that
harms the organization or hinders the
achievement of organizational goals
•Such conflict should be eliminated
•The same level of conflict that creates a
healthy, positive movement toward goals in
one group may be disruptive and
dysfunctional in another
•A group’s tolerance for stress and conflict can
depend on the type of organization it serves

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Conflict and Organizational
Performance
EXHIBIT 11.1 Relationship between Intergroup Conflict
and Organizational Performance

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Conflict and Organizational
Performance
Every organization has an optimal level of conflict that
generates positive performance
When the conflict level is too low…
–Performance can suffer
–Innovation is less likely to happen
–The organization may have difficulty adapting to its
changing environment
–The survival of the organization can be threatened
When the conflict level is too high, the resulting chaos
can also threaten the organization’s survival

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Conflict and Organizational
Performance
EXHIBIT 11.2 Types
of Interdependence

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Causes of Intergroup Conflict:
Goal Differences
Conflict can arise between groups
•Mutually exclusive goals
•Limited resources that must be allocated
between groups
•Different time horizons needed by groups
to achieve their goals

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Causes of Intergroup Conflict:
Perception
Factors that can cause groups to form
differing perceptions
–Status incongruence: conflicts concerning the
relative status of different groups
–Inaccurate perceptions: often cause one group
to develop stereotypes about other groups
–Different perspectives

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Consequences of Dysfunctional
Intergroup Conflict
Groups placed in a conflict situation tend to
react in fairly predictable ways
–Changes occur both within and between
groups

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Consequences of Dysfunctional
Intergroup Conflict
Changes Within
Groups
•Increased group
cohesiveness
•Emphasis on loyalty
•Rise in autocratic
leadership
•Focus on activity
Changes Between
Groups
•Distorted perceptions
•Negative stereotyping
•Decreased
communications

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EXHIBIT 11.3
Conflict-
Resolution
Grid

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Managing Conflict Through
Resolution
Managers must live with intergroup conflict,
so they must learn to manage it
–Dominating
–Accommodating
–Problem solving
–Avoiding
–Compromising

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Which Approach to Use?
Dominating approach
•Use on important issues where you are certain you
are right, and where the benefit of a resolution
outweighs the possible negative feelings by the
dominated group
Accommodating approach
•Use in disputes that are of greater importance to
the other group than they are to yours

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Which Approach to Use?
Avoiding
Use primarily as a temporary and expedient means to
buy more time
Compromising
–Good backup approach when other approaches fail to
resolve the issue
Problem-Solving
–Use when groups are willing to invest time and effort
to reach a resolution that maximizes everyone’s
outcome

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EXHIBIT 11.4 An Overview of Intergroup Conflict

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Stimulating Constructive
Intergroup Conflict
Lack of any disagreement can lead to
sub-optimum performance and inferior
decision making
–Lack of conflict may prove beneficial in the
short run, but can lead to situations where one
group holds tremendous influence over another
–Increasing conflict can be an effective antidote
for groupthink

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Stimulating Constructive
Intergroup Conflict
Strategies for increasing conflict
•Bringing outsiders into the group
•Altering the organization’s structure
•Stimulating competition
•Using programmed conflict (devil’s
advocacy)

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NEGOTIATIONS
Two or more parties attempt to reach
acceptable agreement in a situation
characterized by some level of disagreement

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Negotiations
Negotiations may take place…
Between two people
Within a group
Between groups
Over the Internet

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Negotiations
Negotiations have at least four elements
–Some disagreement or conflict exists
–There is some degree of interdependence
between the parties
–The situation is conductive to opportunistic
interaction
–There exists some possibility of agreement

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Win-Lose Negotiating
The classical view suggests negotiations are
a form of zero-sum game
•There is an assumption of limited resources
•Also known as distributive negotiating
•The process of “distributing” scarce resources

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Win-Win Negotiating
A positive-sum approach
•Each party gains without a corresponding
loss for the other party
•Doesn’t mean everyone gets all they
wanted
•An agreement has been achieved which
leaves all parties better off than they were
prior to the agreement

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Negotiation Tactics
Good-guy / Bad-guy Team
The Nibble
Joint Problem-Solving
Power of Competition
Splitting the Difference

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Variables that Affect Negotiations
Variables that Affect Negotiations
•Nature of the issues being negotiated
•The context or environment
•The outcomes desired

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Negotiation Outcomes
Substantive
•Outcomes have to do with how the specific
issue is settled
Relationship
•Negotiating in a manner designed to
maintain good relations between the
parties, regardless of the sustentative
results

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Increasing Negotiating
Effectiveness
Willem Mastenbroek proposed four
activities
–Obtaining substantial results
–Influencing the balance of power
–Promoting a constructive climate
–Obtaining procedural flexibility

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USING THIRD-PARTY NEGOTIATIONS
Mediation
Arbitration
Conciliation
Consultation

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Negotiating Globally
Negotiating with individuals from different
countries and cultures poses issues
–People from other cultures negotiate differently
–The Japanese emphasize a win-win approach
–Americans are very candid and specific
Also playing a role
–Political systems
–Legal policies
–Ideology
–Traditions

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EXHIBIT
11.5
Cultural
Effects on
Negotiating
Style

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Wall and Blum Suggestions
•Begin with a positive
overture
•Concentrate on issues
and the situational
factors
•Look below the surface
•Do not allow
competitive bargaining.
•If you have power use it
•Be accepting of third-
party assistance
•Attend to the
environment

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In Review, Did We…
1.Explain the contemporary perspective on conflict
2.Describe the causes of intergroup conflict.
3.Identify several consequences of dysfunctional intergroup
conflict
4.Compare approaches for managing conflict through
resolution
5.Summarize how organizations stimulate constructive
intergroup conflict
6.Understand the differences between win-win and win-
lose negotiation
7.Give examples of different types of negotiation tactics
8.Explain how negotiation effectiveness can be increased