Organizational Behaviour
Lesson 08
Managing Conflicts &
Negotiation
Objectives of the Lesson
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Define Conflict
Explain different views of conflict
Discuss the conflict process
Define negotiation
Contrast distributive and integrative bargaining
Examine the roles and functions of third party
negotiations
• Discuss the steps of the negotiation process
2
What is a 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
(Robbins et al, 2015)
3
Transitions in Conflict Thought
• The Traditional View of Conflict
– The belief that all conflict is harmful and must be
avoided
– Viewed as violence, destruction and irrationality
to reinforce its negative connection
• Human Relations View of Conflict
– The belief that conflict is a natural and inevitable
outcome in any group
4
Transitions in Conflict Thought Cont’d
• The Interactionist View of Conflict
– The belief that conflict is not only a positive force
in a group but that it is absolutely necessary for a
group to perform effectively
– Encourages conflict on the grounds of
harmonious, peaceful, tranquil and corporative
– All conflicts are good?
5
Transitions in Conflict Thought Cont’d
• Resolution Focused View of Conflict
– The belief that conflict is inevitable in most
organizations and it focuses more on productive
conflict resolution
6
Functional Vs Dysfunctional Conflicts
• Functional Conflict
– Conflict that supports the goals of the
group and improves its performance
• Dysfunctional Conflict
– Conflict that hinders group performance
7
Types of Conflict
• Task Conflict
– Conflicts over content and goals of the work
• Ex:……………………………………………………………………..
• Relationship Conflict
– Conflict based on interpersonal relationships
• Ex:……………………………………………………………………..
• Process Conflict
– Conflict over how work gets done
• Ex:……………………………………………………………………..
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What Researches Say?
• Relationship
conflicts
are
almost
always
dysfunctional?
– The most psychologically exhausting to individuals
– Why?
• …………………………………………………………………………
– Be careful when providing feedback to others!
– Teams made up of individuals who are, on
average, high in openness and emotional stability
are better able to turn task conflict into increased
group performance
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Loci of Conflict
• Dyadic conflict
• …………………………………………………….
• Ex:……………………………………………………………………..
• Intragroup conflict
• …………………………………………………….
• Ex:……………………………………………………………………..
• Intergroup conflict
• …………………………………………………….
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• Ex:……………………………………………………………………..
The Conflict Process
(Source: Robbins et al, 2015)
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Stage I : Potential Opposition or
Incompatibility
• Communication
– Semantic difficulties, misunderstandings, jargon,
and ‘noise’
• Structure
– Size of the group, degree of member-goal
compatibility, leadership style, reward systems
and degree of dependence between groups
• Personal Variables
– Personality, emotions and values
12
Stage II: Cognition & Personalization
• Perceived Conflict
– Awareness by one or more parties of the
existence of conditions that create
opportunities for conflict to arise
• Felt Conflict
– Emotional involvement in a conflict creating
anxiety, tenseness, frustration, or hostility
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Stage III: Intentions
• Decisions to act in a given way
14
Stage III: Intentions Cont’d
• Cooperativeness: Attempting to satisfy the
other party’s concerns
• Assertiveness: Attempting to satisfy one’s own
concerns
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Stage III: Intentions Cont’d
• Competing
– A desire to satisfy one’s interests, regardless of
the impact on the other party to the conflict
• Collaborating
– A situation in which 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
16
Stage III: Intentions Cont’d
• 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
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Stage IV: Behaviour
• Conflicts become visible
• Conflict Management
– The use of resolution and stimulation techniques
to achieve the desired level of conflict
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Stage IV: Behaviour
(Conflict-Intensity Continuum)
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Stage V: Outcomes
• Functional Outcomes
–
–
–
–
–
…………………………………………………..
…………………………………………………..
…………………………………………………..
…………………………………………………..
…………………………………………………..
• Dysfunctional Outcomes
–
–
–
–
–
…………………………………………………..
…………………………………………………..
…………………………………………………..
…………………………………………………..
…………………………………………………..
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Negotiation
• A process in which two or more parties attempt
to reach acceptable agreement in a situation
characterized by some level of disagreement
• A process that occurs when two or more parties
decide how to allocate scare resources
• BATNA: The Best Alternative To a Negotiated
Agreement; the lowest acceptable value
(outcome) to an individual for a negotiated
agreement
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Bargaining Strategies
• 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
24
Bargaining Strategies Cont’d
(Source: Robbins et al, 2015)
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Third-Party Negotiations
• Mediator
– A neutral third party who facilitates a
negotiated solution by using reasoning,
persuasion, and suggestions for alternatives
• Arbitrator
– A third party to a negotiation who has the
authority to dictate an agreement
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Third-Party Negotiations Cont’d
• Conciliator
– A trusted third party who provides an
informal communication link between the
negotiator and the opponent
• Consultant
– An impartial third party, skilled in conflict
management, who attempts to facilitate
creative problem solving through
communication and analysis
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For Discussion Class!
• Explain the conflict process by using your own
experience.
• Discuss the steps of the negotiation process.
• Examine how individual differences influence
negotiation.
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