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13-1

Conflict and

Negotiation

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Conflict

• Process that begins when

one party perceives that

another party hasnegatively affected, or is

about to negatively affect,

something that the firstparty cares about.

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Definitions

• Conflict

Interaction of persons who perceive

incompatible goals and interference from oneanother in achieving those goals

• Negotiation

 A process in which two or more parties attemptto reach acceptable agreement in a situation

characterized by some level of disagreement.

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Transitions in Conflict Thought

• Traditional View – conflict is harmful and

must be avoided

• Human Relations View – conflict is a

natural and inevitable outcome in any

group and need not be negative

• Interactionist View – conflict is encouragedto prevent group from becoming stale

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Functional vs.

Dysfunctional Conflict

• Task conflict – relates to the

content and goals of the work

• Relationship conflict –

focuses on interpersonal

relationships

• Process conflict – relates tohow the work gets done

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Managing Conflict:

    P

   e   r     f   o   r   m   a   n

   c   e

    P

   e   r     f   o   r   m   a   n

   c   e

ConflictConflict

ComplacencyComplacency ManagedManaged IntenseIntense

HighHigh

Low

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Conflict Process

Stage I: Potential opposition

Stage II: Cognition and Personalization

Stage III: Intentions

Stage IV: Behaviors

Stage V: Outcomes

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Conflict Process

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Stage I: Potential Opposition

• Sources of conflict:

Communication

Structure

Personal Variables

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Stage II: Cognition and

Personalization

• Potential for opposition becomes realized

• When individuals become emotionally

involved - parties experience anxiety,tension, frustration, or hostility

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Stage III: Intentions

• Competing

• Collaborating

•  Avoiding

•  Accommodating

• Compromising

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Intentions

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CompetitionCompetition(forcing)(forcing)

CollaborationCollaboration

CompromiseCompromise

AvoidanceAvoidance AccommodationAccommodation

Satisfy Other?Satisfy Other?

Coo erativeness(Cooperativeness)

UncooperativeUncooperative CooperativeCooperative

SatisfySatisfySelf?Self?

 Aggressive Aggressive

PassivePassive

(Manager exerting authority)(Manager exerting authority)(Marriage Counselors/Labor (Marriage Counselors/Labor 

mediation)mediation)

(Union-Management)(Union-Management)

(Most common approach)(Most common approach) (Acquiescent Parent)(Acquiescent Parent)

Styles of Conflict Resolution

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 Analyze Situation Identify your needs

Importance—Is it worth it?

Zero-sum Strength of position

Future Interactions?

 Analyze other party(ies) Real needs, interests

Strengths/Weaknesses

Their styles/approach

Select Appropriate Approach Conflict Style

Negotiation (Integrative,Distributive)

 STEPS FOR CONFLICT RESOLUTION 

 AND EFFECTIVE NEGOTIATIONS 

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• Conditions

Generally best

Win-Win is possible Opponent is willing

INTEGRATIVE 

NEGOTIATION 

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• Conditions

Zero-sum game

Opponent isdistributive

You have the power 

Relationship not

critical

DISTRIBUTIVE NEGOTIATING

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• Identify target and resistance points Goal?

Start moderately high/low, make concession, getstingy

View initial offers as a starting point

• Persuasion

• Leverage Power: Facts, Experience, position• Fairness

• Emotions

• Closed

• Manage Perceptions

DISTRIBUTIVE STRATEGIES 

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• Conditions

Generally best

Win-Win is possible Opponent is willing

• Key?

• Integrative

Strategies?

INTEGRATIVE 

NEGOTIATION 

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• Integrative Strategies

Openness

Trust Flexibility

Begin Positively

Focus on the Issue

Remain Rational

Use objective criteria

INTEGRATIVE 

NEGOTIATION 

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CompetitionCompetition(forcing)(forcing)

CollaborationCollaboration

CompromiseCompromise

AvoidanceAvoidance AccommodationAccommodation

Satisfy Other?Satisfy Other?

Coo erativeness(Cooperativeness)

UncooperativeUncooperative CooperativeCooperative

SatisfySatisfySelf?Self?

 Aggressive Aggressive

PassivePassive

(Manager exerting authority)(Manager exerting authority)(Marriage Counselors/Labor (Marriage Counselors/Labor 

mediation)mediation)

(Union-Management)(Union-Management)

(Most common approach)(Most common approach) (Acquiescent Parent)(Acquiescent Parent)

Styles of Conflict Resolution

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• Competition (forcing) Time is an important constraint

Issue is unpopular/action must be taken

Commitment is not critical

Competitive others

You have the power 

• Collaboration Too important for compromise

Time pressures are minimal

 All want win-win

Communication-based

CHOOSING A STYLE 

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•  Avoidance Issue is trivial

Costs/disruptions outweigh benefits

Problem may solve itself 

Based on personal differences

•  Accommodation Issue is more important to the other party

Stockpile Credits

Minimize loss

• Compromise Equal power with exclusive goals

Temporary solution to a complex issue

Tight time constraints

CHOOSING A STYLE 

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Stage IV: Behavior 

• Where conflict becomes visible

•  Are usually overt attempts to implement

each party’s intentions

•  A dynamic process that moves along a

continuum of intensity

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Stage V: Outcomes

• Functional Outcomes – Conflict is constructivewhen it: Improves the quality of decisions

Stimulates creativity and innovation

Encourages interest and curiosity among groupmembers

• Dysfunctional Outcomes – uncontrolledopposition breeds discontent, which acts todissolve common ties, and eventually leads tothe destruction of the group

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Creating Functional Conflict

• Managers can reward

dissent and punish conflict

avoiders

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Conflict Management Styles

Quiz

• None of these strategies is superior in and

of itself. How effective they are depends on

the context in which they are used.• Be sure to answer the questions indicating

how you would behave rather than how

you think you behave.

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Conflict Management StylesQuiz

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Negotiation

• Process in which two

or more parties

exchange goods or services and attempt to

agree on the exchange

rate for them

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Bargaining Strategies

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The Negotiation Process

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Individual Differences in

Negotiation

• Personality

• Gender 

• Cultural

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Personality

• The best distributive bargainer appears to

be a disagreeable introvert

• Those who can check their egos at thedoor are able to negotiate better 

agreements

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Gender Differences

in Negotiation

• Men have been found to negotiate better 

outcomes than women, although the

difference is relatively small• Women may unduly penalize themselves

by failing to engage in negotiations when

such action would be in their best interest

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Cultural Differences in

Negotiations

• Cultural context significantly influences...

The amount and type of preparation for 

bargaining The relative emphasis on task versus

interpersonal relationships

The tactics used Where the negotiation should be conducted

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Implications for Managers:

Managing Conflict

• Competition

• Collaboration

•  Avoidance

•  Accommodation

• Compromise

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Implications for Managers:

Improving Negotiation Skills

• Set Ambitious Goals

• Pay Little Attention to Initial Offers

• Research Your Opponent

•  Address the Problem, Not the Personalities

• Be Creative and Emphasize Win-Win

Solutions

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Summary

1. Defined conflict

2. Differentiated between the traditional, human relations,and interactionist views of conflict

3. Contrasted task, relationship and process conflict4. Outlined the conflict process

5. Described the five conflict-handling intentions

6. Contrasted distributive and integrative bargaining

7. Identified the five steps in the negotiation process8. Described whether there are individual differences in

negotiator effectiveness