Conflict And Negotiation
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Chapter 8
Conflict and Negotiation
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Chapter Outline • • • • • •
Conflict Defined Sources of Conflict From Potential to Actual Conflict Conflict Management and Teams Negotiation Issues in Negotiation
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Conflict and Negotiation Questions for Consideration Questions for Consi derat ion
• How do we manage conflict? • When is conflict functional? • How do we negotiate?
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
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. – Functional • Supports the goals of the group and improves its performance
– Dysfunctional • Hinders group performance
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
How Structure Can Lead to Conflict • Stimulating conflict – Size, specialization, and composition of the group – Too much reliance on participation – Diversity of goals among groups – Ambiguity in precisely defining where responsibility for actions lies – Reward systems where one member’s gain is at another’s expense Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Exhibit 8-1 How Conflict Builds Conflict-handling Intentions • • • • •
Competing Collaborating Compromising Avoiding Accommodating
Outcomes
Behaviour
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
• Functional: increased performance • Dysfunctional: decreased group performance
Conflict-Handling Intentions • Two Dimensions – Cooperativeness • The degree to which one party attempts to satisfy the other party’s concerns
– Assertiveness • The degree to which one party attempts to satisfy his or her own concerns
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Specific Intentions • Competing • A desire to satisfy one’s interests, regardless of the impact on the other parties.
• Collaborating • A situation where 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.
• 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
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Assertive
Competing
Collaborating
Compromising Unassertive
Assertiveness
Exhibit 8-2 Dimensions of Conflict-Handling Intentions
Avoiding
Accommodating
Uncooperative
Cooperative
Cooperativeness Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Exhibit 8-4 Conflict Intensity Continuum Annihilatory conflict
Overt efforts to destroy the other party Aggressive physical attacks Threats and ultimatums Assertive verbal attacks Overt questioning or challenging of others
No conflict
Minor disagreements or misunderstandings
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Types of Conflict • Cognitive – Conflict related to differences in perspectives and judgments • Task-oriented • Results in identifying differences • Usually functional conflict
• Affective – Emotional conflict aimed at a person rather than an issue • Dysfunctional conflict Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Reducing Group Conflict • Team members reduced conflict using the following tactics: – Worked with more, rather than less, information – Debated on the basis of facts – Developed multiple alternatives to enrich the level of debate – Shared commonly agreed-upon goals – Injected humour into the decision process – Maintained a balanced power structure – Resolved issues without forcing consensus Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Negotiation • A process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for them – 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
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Exhibit 8-6 Distributive versus Integrative Bargaining Bargaining Characteristic Available resources
Distributive Bargaining Fixed amount of resources to be divided
Integrative Bargaining Variable amount of resources to be divided
I win, you lose Primary motivations Primary interests
Opposed to each other Short term
Focus of relationships
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
I win, you win Convergent or congruent with each other Long term
How to Negotiate • Assess personal goals, consider other’s goals, develop strategy • Identify target and resistance points – Target: what one would like to achieve – Resistance: lowest outcome acceptable
• Identify BATNA – Best Alternative To a Negotiated Agreement Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Issues in Negotiation • • • •
Gender Differences Cross-Cultural Differences Alcohol and Negotiations Third-Party Negotiations
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Gender Differences • Women – More inclined to be concerned with feelings and perceptions, and take a longer-term view – View the bargaining session as part of an overall relationship – Tend to want all parties in the negotiation to be empowered – Use dialogue to achieve understanding
• Men – View the bargaining session as a separate event – Use dialogue to persuade Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Alcohol Consumption and Negotiations – Negotiators who had been drinking • Were more aggressive and more likely to insult, mislead, and threaten their opponent • Were more likely to make mistakes, saying such things as "I propose a start date of 12 weeks . . . no, 4 weeks. I'm sorry, I was confused" • Were more likely to focus on irrelevant information or misunderstand the problem • Were not aware that alcohol had influenced their performance, when in fact it had
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Alcohol Consumption and Negotiations – Sober negotiators • Were were more likely to look for win-win solutions • Did not do well when bargaining against someone who had been drinking, as the drinker tended to be far more aggressive
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Third Party Roles in Negotiations • Conciliator • Mediator • Arbitrator
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Conciliator • Trusted third party who provides an informal communication link between the negotiator and the opponent – Informal link – Used extensively in international, labour, family and community disputes – Fact-find, interpret messages, persuade disputants to develop agreements Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Mediator • A neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives – Labour-management negotiations and civil court disputes – Settlement rate is about 60%; satisfaction rate is about 75% – Participants must be motivated to bargain and settle – Best under moderate levels of conflict – Mediator must appear neutral and non-coercive Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Arbitrator • Has authority to dictate an agreement – Voluntary (requested) or compulsory (imposed by law or contract) – Always results in a settlement – May result in further conflict
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Summary and Implications • Conflict can be either constructive or destructive to the functioning of a group. • An optimal level of conflict: – – – –
Prevents stagnation Stimulates creativity Releases tension And initiates the seeds for change
• Inadequate or excessive levels of conflict can hinder group effectiveness.
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Summary and Implications • Don’t assume there's one conflict-handling intention that is always best. – – – – –
Use competition when quick, decisive action is vital Use collaboration to find an integrative solution Use avoidance when an issue is trivial Use accommodation when you find you’re wrong Use compromise when goals are important
• Negotiation is an ongoing activity in groups • Intergroup conflicts can also affect an organization’s performance. Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Point-CounterPoint • Conflict Is Good for the Organization
• All Conflicts Are Dysfunctional!
▲ Conflict is a means by which to bring about radical change ▲ Conflict facilitates group cohesiveness ▲ Conflict improves group and organizational effectiveness ▲ Conflict brings about a slightly higher, more constructive level of tension
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
▲ The negative consequences from conflict can be devastating ▲ Effective managers build teamwork not conflict ▲ Competition is good for an organization, but not conflict ▲ Managers who accept and stimulate conflict don’t survive in organizations
Conflict and Negotiation
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Chapter Outline • • • • • •
Conflict Defined Sources of Conflict From Potential to Actual Conflict Conflict Management and Teams Negotiation Issues in Negotiation
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Conflict and Negotiation Questions for Consideration Questions for Consi derat ion
• How do we manage conflict? • When is conflict functional? • How do we negotiate?
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
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. – Functional • Supports the goals of the group and improves its performance
– Dysfunctional • Hinders group performance
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
How Structure Can Lead to Conflict • Stimulating conflict – Size, specialization, and composition of the group – Too much reliance on participation – Diversity of goals among groups – Ambiguity in precisely defining where responsibility for actions lies – Reward systems where one member’s gain is at another’s expense Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Exhibit 8-1 How Conflict Builds Conflict-handling Intentions • • • • •
Competing Collaborating Compromising Avoiding Accommodating
Outcomes
Behaviour
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
• Functional: increased performance • Dysfunctional: decreased group performance
Conflict-Handling Intentions • Two Dimensions – Cooperativeness • The degree to which one party attempts to satisfy the other party’s concerns
– Assertiveness • The degree to which one party attempts to satisfy his or her own concerns
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Specific Intentions • Competing • A desire to satisfy one’s interests, regardless of the impact on the other parties.
• Collaborating • A situation where 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.
• 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
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Assertive
Competing
Collaborating
Compromising Unassertive
Assertiveness
Exhibit 8-2 Dimensions of Conflict-Handling Intentions
Avoiding
Accommodating
Uncooperative
Cooperative
Cooperativeness Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Exhibit 8-4 Conflict Intensity Continuum Annihilatory conflict
Overt efforts to destroy the other party Aggressive physical attacks Threats and ultimatums Assertive verbal attacks Overt questioning or challenging of others
No conflict
Minor disagreements or misunderstandings
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Types of Conflict • Cognitive – Conflict related to differences in perspectives and judgments • Task-oriented • Results in identifying differences • Usually functional conflict
• Affective – Emotional conflict aimed at a person rather than an issue • Dysfunctional conflict Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Reducing Group Conflict • Team members reduced conflict using the following tactics: – Worked with more, rather than less, information – Debated on the basis of facts – Developed multiple alternatives to enrich the level of debate – Shared commonly agreed-upon goals – Injected humour into the decision process – Maintained a balanced power structure – Resolved issues without forcing consensus Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Negotiation • A process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for them – 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
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Exhibit 8-6 Distributive versus Integrative Bargaining Bargaining Characteristic Available resources
Distributive Bargaining Fixed amount of resources to be divided
Integrative Bargaining Variable amount of resources to be divided
I win, you lose Primary motivations Primary interests
Opposed to each other Short term
Focus of relationships
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
I win, you win Convergent or congruent with each other Long term
How to Negotiate • Assess personal goals, consider other’s goals, develop strategy • Identify target and resistance points – Target: what one would like to achieve – Resistance: lowest outcome acceptable
• Identify BATNA – Best Alternative To a Negotiated Agreement Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Issues in Negotiation • • • •
Gender Differences Cross-Cultural Differences Alcohol and Negotiations Third-Party Negotiations
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Gender Differences • Women – More inclined to be concerned with feelings and perceptions, and take a longer-term view – View the bargaining session as part of an overall relationship – Tend to want all parties in the negotiation to be empowered – Use dialogue to achieve understanding
• Men – View the bargaining session as a separate event – Use dialogue to persuade Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Alcohol Consumption and Negotiations – Negotiators who had been drinking • Were more aggressive and more likely to insult, mislead, and threaten their opponent • Were more likely to make mistakes, saying such things as "I propose a start date of 12 weeks . . . no, 4 weeks. I'm sorry, I was confused" • Were more likely to focus on irrelevant information or misunderstand the problem • Were not aware that alcohol had influenced their performance, when in fact it had
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Alcohol Consumption and Negotiations – Sober negotiators • Were were more likely to look for win-win solutions • Did not do well when bargaining against someone who had been drinking, as the drinker tended to be far more aggressive
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Third Party Roles in Negotiations • Conciliator • Mediator • Arbitrator
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Conciliator • Trusted third party who provides an informal communication link between the negotiator and the opponent – Informal link – Used extensively in international, labour, family and community disputes – Fact-find, interpret messages, persuade disputants to develop agreements Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Mediator • A neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives – Labour-management negotiations and civil court disputes – Settlement rate is about 60%; satisfaction rate is about 75% – Participants must be motivated to bargain and settle – Best under moderate levels of conflict – Mediator must appear neutral and non-coercive Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Arbitrator • Has authority to dictate an agreement – Voluntary (requested) or compulsory (imposed by law or contract) – Always results in a settlement – May result in further conflict
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Summary and Implications • Conflict can be either constructive or destructive to the functioning of a group. • An optimal level of conflict: – – – –
Prevents stagnation Stimulates creativity Releases tension And initiates the seeds for change
• Inadequate or excessive levels of conflict can hinder group effectiveness.
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Summary and Implications • Don’t assume there's one conflict-handling intention that is always best. – – – – –
Use competition when quick, decisive action is vital Use collaboration to find an integrative solution Use avoidance when an issue is trivial Use accommodation when you find you’re wrong Use compromise when goals are important
• Negotiation is an ongoing activity in groups • Intergroup conflicts can also affect an organization’s performance. Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
Point-CounterPoint • Conflict Is Good for the Organization
• All Conflicts Are Dysfunctional!
▲ Conflict is a means by which to bring about radical change ▲ Conflict facilitates group cohesiveness ▲ Conflict improves group and organizational effectiveness ▲ Conflict brings about a slightly higher, more constructive level of tension
Chapter 8, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition. Copyright © 2003 Pearson Education Canada Inc.
▲ The negative consequences from conflict can be devastating ▲ Effective managers build teamwork not conflict ▲ Competition is good for an organization, but not conflict ▲ Managers who accept and stimulate conflict don’t survive in organizations
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