Module Ten
Negotiations and
Conflict Management
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The last time you experienced conflict:
• What was it about?
• What was the attitude of the other party? And your
attitude?
• How did it end?
• What’s your philosophy about conflict?
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Origins of conflict
•
•
•
Where does conflict originate?
Different worldviews
– When the fundamental building blocks of a person’s
worldview are under attack, the person becomes
very defensive.
– This explains why intergroup conflict happens so
easily: membership in a group shapes a person’s
worldview.
Power struggles about real interests
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Is conflict always ineffective or bad?
• Substantive conflict is productive and constructive
• Socio-emotional conflict can be dangerous and costly
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Intergroup Behavior:
Organizational Context (i.e. Strategy, Business Situation, Structure,
Rules and Procedures Culture, Decision Making Processes,…)
Nature of the Task
Basis for the Interaction Between the Teams
TEAM A
Values
Norms
Roles
Sub grouping
Status System
Goals
Cohesiveness
Size
Intergroup
Work Processes,
Behavior
and
Dynamics
TEAM B
Values
Norms
Roles
Sub grouping
Status System
Goals
Cohesiveness
Size
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Intergroup Performance
Views of Conflict
• Traditional view
(avoid conflict)
• Human relations view
(conflict is natural and inevitable and is a positive force)
• System view
(conflict is not only inevitable but also absolutely
necessary for a team to perform effectively) *
* Conflict is discussed in the A. C. Amason, K. R. Thompson, W. A. Hochwater, and A. W. Harrison, “Conflict:
An Important Dimension in Successful Management Teams,” Organization Dynamics, Autumn 1995, pp. 2035; A. C. Amason, “Distinguishing the Effects of Functinal and Dysfunctional Conflict on Strategic Decision
Making: Resolving a Paradox for Top Management Teams, “ Academy of Management Journal, February
1996, pp. 123-48; K. A. Jehn, “A Qualitative Analysis of Conflict Types and Dimensions in Organizational
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Groups,” Administrative Science Quarterly 42, (1997), pp. 530-57.
Human Systems, Conflict and Negotiations
• Social systems evolve through conflict and negotiations.
• Conflict plays an important role in human development.
• Conflict occurs at many levels: Within individual;
between individuals; within teams; between teams;
between units; between organizations; between nations;
between societies,…
• In the context of this course we focus on conflict and
negotiation at work: between individuals, within and
between teams.
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Categories of Intergroup Conflict
• Vertical conflict
• Horizontal conflict
• Line-staff conflict
• Diversity-based conflict
* Source: D. Hellrigel, J. W. Slocum Jr., and R. W. Woodman, Organizational Behavior, (Cincinnati, OH:9
South-Western College Publishing, 1998).
Strategies for Overcoming conflict
•
•
•
Introducing a common enemy
(e.g. WWII, Vietnam war, 9/11, natural catastrophes)
Superordinate goals
(e.g. Kennedy’s New Frontiers’ speech)
Expansion of one’s awareness and circle of
identification
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Two Dimensional Model of Ways to Handle Conflict
Competing
High
Collaborating
Compromising
Avoiding
Accommodating
Low
Low
Cooperativeness
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High
Appropriate Situations For Five Strategic Intentions
Conflict-Handling
Modes
Appropriate Situations
Competing
Collaborating
Compromising
Avoiding
Accommodating
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Appropriate Situations For Five Strategic Intentions
Conflict-Handling
Modes
Appropriate Situations
Competing
1. When quick, decisive action is vital (e.g., emergencies).
2. On important issues where unpopular actions need implementing
(e.g., cost cutting, enforcing unpopular rules, discipline).
3. On issues vital to company welfare when you know you’re right.
4. Against people who take advantage of noncompetitive behavior.
Collaborating
1. To find an integrative solution when both sets of concerns are too
important to be compromised.
2. When your objective is to learn.
3. To merge insights from people with different perspectives.
4. To gain commitment by incorporating concerns into a consensus.
5. To work through feelings which have interfered with a relationship.
Compromising
1. When goals are important, but not worth the effort or potential
disruption of more assertive modes.
2. When opponents with equal power are committed to mutually
exclusive goals.
3. To achieve temporary settlements to complex issues.
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4. To arrive at expedient solutions under time pressure.
5. As a backup when collaboration or competition is unsuccessful.
Appropriate Situations For Five Strategic Intentions
Conflict-Handling
Modes
Appropriate Situations
Avoiding
1.
2.
3.
4.
5.
6.
7.
When an issue is trivial, or more important issues are pressing.
When you perceive no chance of satisfying your concerns.
When potential disruption outweighs the benefits of resolution.
To let people cool down and regain perspective.
When gathering information supersedes immediate decision.
When others can resolve the conflict more effectively.
When issues seem tangential or symptomatic of other issues.
Accommodating
1. When you find you are wrong to allow a better position to be
heard, to learn, and to show your reasonableness.
2. When issues are more important to others than yourself - to
others and maintain cooperation.
3. To build social credits for later issues.
4. To minimize loss when you are outmatched and losing.
5. When harmony and stability are especially important.
6. To allow subordinates to develop by learning from mistakes.
satisfy
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NEGOTIATIONS
• In a situation where there is both conflict and
interdependence, the process used to deal with conflict
is negotiation.
• At the most basic level, both conflict and
interdependence are necessary for negotiation to take
place.
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Overcoming conflict: negotiation
•
•
•
•
•
•
•
•
Distributive vs. integrative negotiation
Importance of preparation
Reservation point
BATNA (Best Alternative to a Negotiated Agreement)
Identifying the different dimensions of the negotiation
Bundling equally acceptable offers
For distributive negotiations, anchoring the initial offer
Offering face-saving solutions acceptable to the other
party’s constituents
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TWO TYPES OF NEGOTIATIONS (1)
• Distributed negotiation or Win-Lose bargaining.
INSERT 2x2 TABLE TOP OF PAGE 178 IN the 8th edition.
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TWO TYPES OF NEGOTIATIONS (2)
Integrative negotiation – or win-win bargaining. Both
parties seek a solution that meets or maximizes both
of their interest.
INSERT 2x2 TABLE BOTTOM OF PAGE 178 IN the 8th
edition.
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International Negotiations
• The Case of China – Marketplace Bargaining
– Do not show great interest in the things you would like
to buy and always try to find some defects;
– Try to cut the original sale price by at least 50%, or
sometimes, even 70%
– Pretend to leave if the seller cannot accept your price,
what to do if you are aware of two buyers.
• The Case of South Korea
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–
–
–
Avoid lengthy contracts – it’s about the relationship.
Business cards
Patience in negotiating
“Getting to know you” – asking “inappropriate q’s”
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Additional Negotiation Reads
• Investigative Negotiation- Malhotra & Bazerman
• Six Habits of Merely Effective Negotiators - Sebenius
• Getting Past Yes: Negotiating as if Implementation
mattered – Ertel
• All three are Harvard Business Review articles
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Ugli Orange: Key to Role Play Success
• Role plays can be anxiety-provoking
• Get into the role as much as possible
• You can be cool and still role-play
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Ugli Orange Role Play
• Each of you is assigned the role of one researcher
• You will have six minutes to read about your role and
then 10 minutes to negotiate with your partner and then
get back to class
 KEY: Each partner writes down details of
agreement if you were able to come to one…
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Big Winners of Ugli Orange
• P.W. Roland needs Ugli orange rinds (the covers/peels)
• J.W. Jones needs Ugli orange juice
 They can both win
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Debrief: Ugli Orange
1. When you went into the negotiation, did you assume
that only one of you could win?
2. Prior to meeting your negotiating partner, did you
perceive that you could trust him/her? Did you or your
partner try to build trust during the negotiation?
3. How did you approach the negotiation? To win while
the other team loses? To compromise? Yield?
4. Was it easy to work with your negotiating partner
(fellow researcher)?
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More on Debrief…
5. Are you satisfied with the final outcome of your
negotiation?
6. How consistent was your Ugli approach with your
dominant conflict handling style? Where do you think
your conflict handling style originates (experiences,
family influences)?
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Key Learning Points: Ugli Orange
1.
Important to think about role of trust and whether both of you can
win on your approach to the negotiation.
a.



2.
If you think you can’t trust the other person OR that only one of
you can win, you are:
more likely to use the forcing and accommodating styles.
less likely to use the problem solving style.
More likely to have distributive outcomes (one gets more or
less)
Collaborating (problem-solving) and compromise are more effective
than competing (forcing)
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