CHAPTER 13
MANAGING CONFLICT AND NEGOTIATION
CHAPTER SUMMARY
Conflict occurs when one party perceives that its interests are being negatively affected by another party.
The language of conflict influences how we view conflict. We are challenged to rely less on the
metaphor and language of war and more on the metaphors and language of opportunity and journey. At
one time all conflict was considered a threat to managerial authority, to be avoided or quickly resolved.
Currently, however, experts realize that conflict has both positive and negative outcomes. This
perspective yielded the idea that organizations could suffer from too little conflict. Conflict can be
divided into functional and dysfunctional conflict. Functional conflict serves the organization’s interests
whereas dysfunctional conflict hinders organizational performance.
Antecedents of conflict include incompatible value systems, overlapping or unclear job boundaries,
competition for resources, competition, inadequate communication, and interdependent tasks.
Additionally, organizational complexity, unreasonable policies, deadlines or time pressures, collective
decision making, decision making by consensus, unmet expectations, or unresolved conflicts produce
conflict. The desired outcomes of conflict include agreement, stronger relationships, and learning.
There are three basic types of conflict: personality, intergroup, and cross-cultural. Personality conflict is
interpersonal opposition based on personal dislike and/or disagreement. Workplace incivility can
generate personality conflict. Too much group cohesiveness can lead to in-group thinking, which can in
turn lead to intergroup conflict. Conflict also occurs due to a lack of understanding regarding crosscultural differences. This type of conflict can be helped by using consultants and building relationships.
There may be times when managers desire programmed conflict. Programmed conflict raises different
opinions regardless of the personal feelings involved. Devil’s advocacy and the dialectic method are two
programmed conflict techniques. Devil’s advocacy involves assigning someone the role of critic. In the
dialectic method, managers foster a structured debate of opposing viewpoints before making a decision.
People have individual styles for handling dysfunctional conflict. Figure 13-4 presents the five conflicthandling styles: integrating, obliging, dominating, avoiding, and compromising. There is no single best
style; each has strengths and weaknesses. In the integrating style, the different sides confront the issue,
identify the problem, generate and weigh alternatives, and select a solution. The obliging style involves
playing down differences and emphasizing commonalties. A dominating style is characterized by high
concern for self and low concern for others. The avoiding tactic involves wither passive withdrawal from
the problem or active suppression of the issue. Finally, the compromising style requires each party to
give up something of value.
Conflict research has lead to several conclusions: Personality traits affect how people handle conflict.
The way in which disagreements are expressed is very important. Aggression breeds aggression. Group
satisfaction, job satisfaction, and internal work motivation decrease as conflict increases. Challenging
and clear goals can defuse conflict. There is no evidence of gender differences in the way people handle
conflict. Conflict may originate in one area of the organization and then become evident elsewhere.
Finally, there are cultural differences regarding preferred conflict resolution techniques.
Negotiation may be necessary to address intergroup conflict. Negotiation is a give-and-take process
between conflicting and interdependent parties. There are two types of negotiation – distributive (usually
involves a single issue in which one person gains at the expense of the other) and integrative (a win-win
situation in which an agreement is reached that is better for both parties). The success of integrative
Chapter 13
negotiation depends on the quality of information exchanged. In summary, conflict is inevitable because
it is triggered by a wide variety of antecedents. Too little conflict may be as counterproductive as too
much. Finally, there is no single best way of avoiding or resolving conflict.
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LECTURE OUTLINE
I.
Conflict: A Modern Perspective (PPT Slides: 4-8, Supplemental PPT Slides: 31, 34-37, 41-43, 47, SelfExercises: What is Your Primary Conflict-Handling Style? and The Conflict Iceberg, Group Exercises: Assessing the
Effectiveness of Conflict-Handling Styles, and Ethical Dilemma Break It Up! apply here)
II.
A. The Language of Conflict: Metaphors and Meaning
1. Conflicts have both participants and observers. We should rely less on the metaphor and
language of war and more on the metaphors and language of opportunity and journey.
B. A Conflict Continuum
1. Experts once believed that all conflict threatened managerial authority and thus had to be
squelched. Next, human relationists recognized the inevitability of conflict and advised
managers to learn to live with it. Currently, experts believe conflict can have both
positive and negative outcomes. Thus, organizations can suffer from too little conflict
C. Functional versus Dysfunctional Conflict
1. Functional conflict serves to improve performance and support the purposes of the
organization. Dysfunctional conflict hinders organizational performance.
D. Why People Avoid Conflict
1. People avoid conflict because they, for example, fear harm, rejection, loss of
relationship, anger, being seen as selfish, saying the wrong thing, and failing.
E. Antecedents of Conflict
1. Conditions which produce conflict include incompatible personalities or value systems,
overlapping or unclear job boundaries, competition for resources, inter-department/intergroup competition, inadequate communication, interdependent tasks, organizational
complexity, unreasonable or unclear policies, standards, or rules, unreasonable deadlines
or extreme time pressure, collective decision making, decision making by consensus,
unmet expectations, and unresolved or suppressed conflicts.
F. Desired Conflict Outcomes
1. According to a cooperative conflict model, there are three desired outcomes of conflict:
agreement, stronger relationships, and learning.
Types of Conflict (PPT Slides: 9-14 apply here)
A. Personality Conflict
1. Workplace incivility, increasingly common in today’s workplaces, can lead to
personality conflict. An organizational culture that places high value on respect for coworkers can lead to a more civil workplace.
2. Although managers traditionally deal with personality conflicts by ignoring them or
transferring one party, these options may lead to lawsuits.
B. Intergroup Conflict
1. Changes associated with increased group cohesiveness include members seeing
themselves as unique individuals, positively and morally correct and other groups as
generic, negative and immoral.
2. One hypothesis for reducing intergroup conflict is the contact hypothesis, which states
the more the members of different groups interact, the less intergroup conflict they will
experience. However, research also shows intergroup friendships are readily
overpowered by negative intergroup interaction.
C. Cross-cultural Conflict
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III.
IV.
1. Cross-cultural conflict is likely because of the different cultural assumptions about how
to think and act.
Managing Conflict (PPT Slides: 15-23 apply here)
A. Stimulating Functional Conflict
1. Managers can use programmed conflict to stimulate creativity and action.
2. Two techniques for stimulating functional conflict are devil's advocacy and the dialectic
method. In each, the key is to get contributors to either defend or criticize ideas.
B. Alternative Styles for Handling Dysfunctional Conflict
1. The five different conflict-handling styles are:
a. integrating (interested parties confront the issue and cooperatively identify the
problem, generate and weigh alternative solutions, and select a solution),
b. obliging (involves playing down differences while emphasizing commonalities),
c. dominating (this style integrates high concern for self and low concern for others),
d. avoiding (this style may involve either passive withdrawal from the problem or
active suppression of the issue), and
e. compromising (a give-and-take approach involving moderate concern for both self
and others).
C. Third-Party Interventions
1. Another way to handling conflicts is through alternative dispute resolution (ADR). ADR
techniques (ranked from easiest/least expensive to most difficult/costly) include:
facilitation, conciliation, peer review, ombudsman, mediation, and arbitration.
D. Practical Lessons from Conflict Research
1. Research evidence leads to the following conclusions:
a. Personality traits affect how people handle conflict.
b. The way in which disagreements are expressed is very important.
c. Aggression breeds aggression.
d. Job satisfaction, group satisfaction, and motivation decrease as conflict increases.
e. Challenging and clear goals can defuse conflict.
f. There is no evidence of gender differences in the way people handle conflict.
g. Conflict may spread within the organization.
h. Different cultures prefer different conflict resolution techniques.
i. Companies with mandatory or binding arbitration policies were viewed less
favorably than companies without such policies.
Negotiation (PPT Slides: 24-27 and Supplemental PPT Slides: 30, 38 apply here)
A. Two Basic Types of Negotiation
1. There are two types of negotiation – distributive and integrative. The distributive
involves an issue in which one person gains at the expense of the other. In an integrative
negotiation, an agreement can be reached that is better for both parties than what they
would have reach through distributive negotiation.
B. Ethical Pitfalls in Negotiation
1. Successful integrative negotiation depends on the quality of information exchanged.
C. Practical Lessons from Negotiation Research
1. Research evidence leads to the following conclusions:
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Managing Conflict and Negotiation
V.
a. Negotiators with fixed-pie assumptions produced poor outcomes.
b. There is a slight tendency for women to negotiate more cooperatively than men, but
if faced with a “tit-for-tat” bargaining strategy, women were significantly more
competitive than men.
c. Personality characteristics affect negotiating success.
d. Moods can affect plans and outcomes.
Conflict Management and Negotiation: A Contingency Approach
1. Conflict in inevitable because it’s triggered by many antecedents.
2. Too little conflict may be as counterproductive as too much.
3. There is no single best way of avoiding or resolving conflict.
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OPENING CASE SOLUTION
1.
Why is this a classic case of “no surprise”?
The case outlines two personalities: Robert Nardelli and James McNerney. These two men displayed two very
different conflict management styles with Nardelli being aggressive and overtly confrontational and McNerney
instead taking a more friendly approach. That McNerney seems to have enjoyed a more lasting success seems to
follow from his more humanistic approach.
OB IN ACTION CASE SOLUTION
1.
Which conflict metaphor is evident in this case? Explain.
The text outlines three primary metaphors for conflict: conflict as war, conflict as opportunity, and conflict as
journey. From the information available in the case, this seems to reflect conflict as opportunity. Management
was willing to share the pie with labor to everyone’s benefit.
2.
Which antecedents of conflict were problematic at the new Spirit AeroSystems? How were they handled?
Conditions which produce conflict include incompatible personalities or value systems, overlapping or unclear
job boundaries, competition for resources, inter-department/inter-group competition, inadequate communication,
interdependent tasks, organizational complexity, unreasonable or unclear policies, standards, or rules,
unreasonable deadlines or extreme time pressure, collective decision making, decision making by consensus,
unmet expectations, and unresolved or suppressed conflicts. The antecedents that seem mort relevant to this case
are incompatible value systems (e.g., unions didn’t want to lay off employees), competition for resources e.g.,
(division of profits with labor).
3.
Is the unusual degree of union-management cooperation in this case a result of good conflict management
and negotiation, a healthy economy and good profits, or all of these factors working together? Explain.
These factors seem to have interacted to everyone’s benefit in this case. Without the economic upturn
management wouldn’t have been able to offer labor the attractive package they provided, however without
effective conflict and negotiation labor still wouldn’t have seen the money.
4.
What can both managers and union leaders in other industries learn about conflict management from
this case? Explain.
This case illustrates an excellent example of things gone right in a situation where things could have gone very
wrong. Both management and labor showed outstanding skill in conflict management and cooperation to the
benefit of all. Possibly the most interesting part of the case and the most relevant to managers and union leaders
is that neither side assumed that the conflict had to be destructive to their relationship. Instead they worked
together in a very proactive and cooperative manner, facilitated by the economic conditions present at the time.
5.
In terms of the added-value negotiation model in Figure 13-6, what were the key “deal packages” in this
case?
The five
INSTRUCTIONAL RESOURCES
1.
2.
See “Topic 17: Power and Conflict” by A. Johnson and A. Kinicki in An Instructor’s Guide to
An Active Classroom, 2006, McGraw-Hill/Irwin.
See S. Weiss, “Teaching the Cultural Aspects of Negotiation: A Range of Experiential
Techniques” in Journal of Management Education, 2003, 27(1), pp. 96-121.
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Managing Conflict and Negotiation
3.
See “Learning Management in a Crisis: A Service Learning Response to September 11, 2001” by
R. Schaffer in Journal of Management Education, 2004, 28(6), pp. 727-742.
TOPICAL RESOURCES
1.
2.
3.
An intriguing account of negotiation across different cultures can be found in “The role of
temporality in dyadic negotiations: Evidence from Portugal, Turkey, and the United States” by S.
Armağan et al. in Research on Managing in Groups and Teams, 2006, 9, pp.115-146. Greenwich,
CT: JAI Press, Inc.
See Okhuysen, G. A., & Bonner, B. L. (2005). “Future thinking in disadvantaged situations: The
role of outcome delays and competitive issues in negotiation” by G. Okhuysen et al. in
Motivation & Emotion, 29, 460-474.
See “The Positive and Negative Effects of Anger on Dispute Resolution: Evidence From
Electronically Mediated Disputes” by R. Friedman, C. Anderson, J. Brett, M. Olekalns, N.
Goates, and C. Lisco in Journal of Applied Psychology, 2004, 89(2), pp. 369-376.
VIDEO RESOURCES
McGraw-Hill Supplements:
1. The Organizational Behavior Video DVD, Volume One contains the following videos that
correspond with this chapter content: Toxic Coworkers. Suggested teaching notes and discussion
questions are located in the Video Cases and in a separate PowerPoint file containing all Videos on
the book’s website at www.mhhe.com/kreitner.
2. Management in the Movies includes a short clip from Jaws – “The Town Meeting” that applies to
Chapter 13. See the PowerPoint presentation for teaching notes and discussion questions (look in the
Instructor version under Supplemental Slides).
3. Manager’s Hot Seat includes one applicable scene: Partnership: The Unbalancing Act.
Additional Video Resources:
1.
2.
3.
4.
5.
Dealing with conflict in a constructive manner is the subject of the film "Dealing with Conflict"
(CRM Films).
Viewers are asked to solve conflict cases in the film "Conflict on the Line" (CRM Films).
Insight Media produces several videos on international negotiations including “The Style:
International Negotiating Styles,” “Negotiating International Sales Contracts and
Agent/Distributor Agreement,” and “International Negotiating” and negotiating in general
including “the Stanford Video Guide,” “Successful Negotiating,” and “Negotiating.”
Insight Media also has a number of videos dealing with conflict, including “The Art of Resolving
Conflicts in the Workplace,” “Dealing With Conflict and Confrontation,” “Creative Use of
Conflict,” and “Conflict Management.”
For a win-win look at conflict, see "Solving Conflict" (American Media Incorporated).
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Chapter 13
DISCUSSION QUESTIONS
1.
2.
3.
4.
5.
Define functional and dysfunctional conflict. From your past experiences, provide an example of
each type.
Define the two basic types of negotiation.
List the five styles of handling dysfunctional conflict. Which are you? Provide an example to
support your choice.
Explain how group cohesiveness may lead to intergroup conflict. What changes are associated
with increased group cohesiveness?
Discuss the application of the contingency approach to handling conflict.
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Managing Conflict and Negotiation
SUPPLEMENTAL EXERCISE 1: THE DOCTOR APPOINTMENT1
APPLICATION
This exercise explores the effects of relationships on the negotiation process. Students should be paired
in dyads, with one taking the role of “Person A” and the other taking the role of “Person B.” After
negotiating (or attempting to negotiate) a resolution to the following scenario, ask students to repeat the
role play except this time the other person is their next-door neighbor, whom they like. A possible
variation is to change the relationship between the two characters, making one the supervisor of the other
in the workplace. This variation introduces an element of differential power into the situation. As another
variation, students may be instructed to choose new partners for the second role play.
***
“Person A”
You arrived at your scheduled doctor’s appointment only to find that the receptionist has scheduled
another patient for the same time period. You have waited two weeks for this chance to see the doctor,
and have been sick with the flue the whole time. Your illness shows no signs of improving. The doctor
has no other available appointments for the next two weeks.
“Person B”
You arrived at your scheduled doctor’s appointment only to find that the receptionist has scheduled
another patient for the same time period. You want to see the physician about a problem that is relatively
minor at this time, but could become more serious if you postpone seeing the doctor. The doctor has no
other available appointments for the next two weeks.
Reconvene the class and discuss the following questions:
What happened in the role play? What were your thoughts, feelings, and behaviors?
Did you resolve the dilemma? If so, how?
At this point complete processing of the exercise is not necessary, as the goal is to contrast this role play
and the next one. Redo the role play, but add one of the relationship variations discussed above. After the
second role play, discuss the following questions:
What were the sources of conflict in the situation? Did they differ between the two role plays?
In what ways were you satisfied with the results of the first role play? With the second?
What was the difference in competitiveness between the first and second role play?
Did the focus on the relationship change between the two role plays? Did it affect the outcome?
1
Adapted from Exercise 476. “The Parking Space: Relationships and Negotiating” The 1991 Annual: Developing
Human Resources, J.W. Pfeiffer (Ed). University Associates, Inc. San Diego, CA. Adapted with Diane Gilchrist.
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Chapter 13
SUPPLEMENTAL LECTURETTE 1: EFFECTIVE NEGOTIATING GUIDELINES1
APPLICATION
This lecturette provides supplemental coverage of handling intergroup conflict through negotiation.
***
It has been estimated that up to 20 percent of a manager's time is spent negotiating. However, most
managers have had little or no training and support to help them understand the negotiation process. The
ten guidelines presented here can put a manager at a substantial advantage, whether negotiating a
contract, an employee's raise, or a child's bedtime. They are universal and applicable to virtually all
negotiating situations.
1. Prepare for Negotiations. Before entering the actual negotiation process, work to establish two
basic issues about both your side and the other side: (a) what you want to achieve, (b) why you want
to achieve it. If you don't understand these two points for your side, you are not ready to negotiate.
Don't hesitate to delay a negotiation until these issues are answered.
2. Recognize Different Perceptions. In a conflict situation, most people will negatively exaggerate the
responses of the other side, while positively exaggerating their own responses. This tendency can
escalate into conflict, often inappropriately and unnecessarily. To help correct this, do not respond in
a hostile manner to a remark you perceive as hostile. Instead, when the other side seems to be hostile
or offended, apologize. This does not have to be a personal apology. Apologizing for the situation
can be just as effective.
3. Avoid Corners and Cornering. In a negotiation setting, putting either you or the other party in a
strong either-or situation (such as surrender or fight) can turn negotiation into a contest of wills and a
personal show of force. The normal response is to want to win at any cost. This destroys the
atmosphere crucial for negotiating.
4. Use Creativity and Imagination. Frequently, there will be a better solution than either side
suggests. Taking the time to examine creative alternatives, no matter how unusual they may be, and
you may uncover a better solution for both sides.
5. Recognize the Strength of Silence. Silence tends to make Americans uncomfortable, and they rush
to fill the gap with words. However, in a negotiation, silence is fitting and valuable. It gives a
manager time to consider and respond appropriately. It is best to let the other side talk more than half
the time.
6. Make Trade-Offs. Be careful not to let the other side have something for nothing. In return for
conceding a point, get something back, even if it's just goodwill. The goal is to exchange something
that is worth little to you but is valuable to the other side for something the other side doesn't value
but is important to you. In that way, both sides are happy with the bargain.
7. Make it Easy for the Other Side to Agree. It is generally in a managers best interest to set up an
agreement that helps the other side to say "yes." Supporting rather than undermining the other party
through acknowledging rather than minimizing the gains they made in the bargaining makes them
more likely to agree, and more positive about their experience with you.
1
Adapted from J. Byrnes, “Ten Guidelines for Effective Negotiating.” Business Horizons, May/June 1987, pp. 7-12.
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Managing Conflict and Negotiation
8. Take Notes. Taking notes enables a manager to confirm exactly what was agreed to, no matter how
complex. Also, producing the final summary report or memo is a position of strength for a negotiator.
This ensures that the final form is exactly the way your side wants it.
9. Value Deadlines. Frequently, negotiations will continue much longer than they have to. Setting and
agreeing to a deadline forces them along and helps eliminate wasted time. Trade-offs and
concessions come much more easily if both parties know there is a deadline.
10. Anticipate no Agreement. If a manager is prepared with alternatives in case there is no agreement,
it provides more leverage for bargaining. The more attractive your alternative is, the more leverage
you have. An attractive alternative, revealed during the negotiation, can hasten a positive conclusion.
DISCUSSION QUESTIONS
1. List some situations, in business and in your personal life, where negotiating played a key role.
2. After seven years with a manufacturing organization, you feel you are ready to move to an
assistant plant manager position. A slot has opened up, and you plan to discuss it with the plant
manager. Using the negotiating guidelines discussed, what would you do?
3. Due to an illness, you were out of school for a month, and you are way behind in every class.
Negotiate an agreement with your professor to complete the class work this semester or term.
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