Conflict Negotiation

CONFLICT NEGOTIATION & INTER-GROUP BEHAVIOR

UNDERSTANDING CONFLICT • CONFLICT IS THE DISAGREEMENT BETWEEN TWO OR MORE INDIVIDUALS OR GROUPS OVER AN ISSUE OF MUTUAL INTEREST •

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SOURCES OF CONFLICT • ORGANIZATIONAL CHANGE • PERSONALITY CLASHES • DIFFERENCES IN VALUE SETS • THREATS TO STATUS • PERCEPTUAL DIFFERENCES

CLASSIFICATION OF CONFLICTS INTRAPERSONAL CONFLICT • Incompatibility between needs of the individual and the goals of the organization,and the absence of role clarity. • Individual may face stress, frustration while achieving the goals.

CLASSIFICATION OF CONFLICTS INTERPERSONAL CONFLICT • Is the result of differences in perception and gaps in communication. • Individual feels that his image is under threat because of the actions of another individuals. INTERGROUP CONFLICTS • The conflicts between groups are referred to as intergroup conflicts • May arise due to differences in viewpoints or competition

THE CONFLICT PROCESS 1) Potential opposition or incompatibility (First stage) - Stimulating factors Communication • Disturbances in communication channels • Differences in interpreting things • Non -availability of information

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Structure Role clarity of individuals & departments Leadership style,diversity of goals and reward systems Personal Variables Differences in personalities & value systems People who are highly aggressive and authoritative & pusses low self esteem are more likely to be involved in conflict

THE CONFLICT PROCESS 2) Cognition and Personalization (second stage) • If the conditions have a negative impact on the interests of an individual , he will develop hostility towards the individual or group & the conflict reaches the second stage. • The individuals may become emotionally involved • The parties may experience tension, anxiety, frustration.

THE CONFLICT PROCESS 3) Intentions (third stage) • The individual attempts to discover the intentions of the other person so as to choose an appropriate action. Conflict handling intentions • Dominating- High internal focus & low external focus • Avoiding- Tries to avoid the other party

THE CONFLICT PROCESS Accommodating• Takes place when one party tries to satisfy the interest of other by sacrificing its own interests.

Problem-solving• All parties fully cooperate with each other. (winwin solution) which benefits all the parties.

Compromising• Parties need to give up some of their demands to resolve the problem

THE CONFLICT PROCESS • • •

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4) Behavior (Fourth stage) The conflict becomes obvious because of the behavior of the conflicting individuals. This may be considered as attempt by one party to implement its intentions. Ex: Disagreements,negative remarks,& challenging fall along the lower side of the continuum Some amount of conflict is necessary to

THE CONFLICT PROCESS • Verbal attacks,threats,ultimatums,physical attacks come on the upper side of the continuum • If the conflict level is too low & insufficient to be resolved the level of conflict needs to be increased. • Managers use conflict management techniques like Stimulus and Resolution

THE CONFLICT PROCESS • Outcomes (last stage) • Outcomes are the consequences that result from interaction among conflicting parties • Outcome may have positive or negative impact on the organization. • Outcomes are classified as • Functional outcomes & Dysfunctional outcomes.

FUNCTIONAL OUTCOMES • Functional outcomes are the constructive consequences of a conflict. • Improves the performance of the group or organization. • Constructive conflict prevents the group from accepting decisions based on inaccurate assumptions & helps in improving performance • Improves quality of decisions & adds creativity & innovation • Ex- Cultural diversity

Dysfunctional Outcomes • Are the destructive consequences of a conflict • The situation goes out of control & conflict intensifies. • Reduced communication, lower group cohesion & precedence to personal interests are important outcomes. • Research suggests that in routine tasks the probability of the destructive conflict is

Negotiations

NEGOTIATION • The best way to resolve conflict is through negotiations. • Negotiation is a process in which one party agrees to exchange a product or service with another party in return for something. • Ex: Collective bargaining between labor unions & management. • Approaches to negotiation are • Distributive bargaining & integrative

Distributive Bargaining • Assumes that there can not be any solution that could result in win-win situation • Operates under Zero- sum condition • Whenever a one party gains a certain amount another party suffers an equivalent loss. • Form of a win-lose situation. • Each party has a target point • Resistance point represents lowest acceptable outcomes. • If the outcome is below its resistance point the party prefers to break off negotiations. • The area between the target & the resistance point represents the aspiration range of each of the parties

INTEGRATIVE BARGAINING • Existence of one or more solutions to a problem that results in win-win situation. • Helps to develop long term relationships between the negotiating parties,eliminate differences & ensures cooperation of other party in future.

Negotiation process • Preparation & planning: • Understands the nature & background of the conflict. • Identifies the self goals as well as other parties goals. • The negotiator prepares the strategy to be adopted by collecting possible information. • Understanding priority objectives of the other party.

Negotiation process 2) Defining Rules : • Both parties arrive at the negotiation table & establish the basic rules & procedures that will guide the negotiation process. 3) Clarification & justification: • Both parties exchange their demands & justify them. • Present documents in support of their position

Negotiation process 4) Bargaining & problem solving: • • • •

The parties start bargaining with each other. Each party gives concession to another party. The critical issues may be settled later on. Negotiating parties should take a break to avoid heated arguments. 5) Closure & implementation: • The bargaining process is complete & the final agreement is written & signed. • Monitoring & implementation of agreement.

ISSUES IN THE NEGOTIATION PROCESS Biases in decision making: • Ex: Making commitments without considering their feasibility. • Believes like women negotiators are soft • Decision based on only available information.

Personality trait: • While preparing for the negotiation process the focus should be on bargaining issues and the situational factors rather than personality traits.

ISSUES IN THE NEGOTIATION PROCESS • Cultural differences: • French people tend to be indifferent to what their opponents think of them which results in prolonged negotiations. • The Chinese & Japanese believe in building long -term relationships & work out minute details of the agreement & obtain commitment from the another party to work together. • Americans are impatient and tries to end negotiations as early as possible.

ISSUES IN THE NEGOTIATION PROCESS • North Americans depends on objectives facts & logic to support their arguments & give importance to time & deadline. • Arabs follows subjective feelings & emotions to achieve the end. • Russians follow examples to support their arguments.

ISSUES IN THE NEGOTIATION PROCESS • Third-Party Negotiation • When negotiations between the parties fail to result satisfactorily,the parties turn to a third party to arrive at an agreement. • The role of third party may be in the form of Mediator : • Third party uses logical reasoning & persuasion technique to convince the parties to arrive at an agreement. • The mediator suggests the alternative solutions • Mediators are used in union-management negotiations & civil court disputes

ISSUES IN THE NEGOTIATION PROCESS • Arbitrator • • • •

Has the authority to enforce his decision on parties. May be chosen voluntarily or may imposed by the laws It always results in the settlements. But may leave one or both the parties dissatisfied & the conflict may arise again.

• Conciliator • Serves as a informal communication link between the conflicting parties. • He is trusted by both the parties • Tries to find a solution which is accepted by both the parties

ISSUES IN THE NEGOTIATION PROCESS • Consultant: • IS a skilled person who uses conflict management techniques to resolve the differences. • Encourages the parties & develops positive attitude & builds long term relationship. • Use his communication & analytical skills to motivate the parties • Does not provide a solution but acts as a facilitator

FACTORS AFFECTING INTERGROUP RELATIONS • Interactions and relationships between people in groups. Interdependence • The extent to which the group is dependent on another group in the organization determines the degree of interaction & the type of relations. • Classification of Interdependence • Pooled interdependence • Here two or more groups function independently but their output needs to be combined to achieve the overall objectives of the organization • The degree of interaction & coordination among

FACTORS AFFECTING INTERGROUP RELATIONS

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Sequential interdependence: Exists when one of the groups is dependent on the other for some input,but the reverse is not true. The degree of interaction is greater Reciprocal interdependence Exists when there is an exchange of inputs & outputs among groups. The mutual dependence brings high degree of interaction & coordination

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Task uncertainty Groups task may range from highly routine to highly non routine. Groups performing non routine jobs tends to interact more frequently then compared to groups performing routine tasks. Orientation of time & goal Specialization & differentiation of tasks Differing goals & objectives of the groups creates problems in coordination

MANAGING INTERGROUP RELATIONS • Rules & Procedures • Follows formal rules & procedures. • Simplest & least expensive method. • Minimizes the need for interaction & verbal communication. • Works when all the interactions among the groups are anticipated. • Frequent interactions are essential to implement the rules

MANAGING INTERGROUP RELATIONS Hierarchy • Effective in resolving inter group differences . • Consumes valuable time of the top management • Conflicting parties remain no choice then to abide by the decision given.

Planning • In this method goals of each groups are clearly specified • As each group has its own responsibility inter group conflict decreases & coordination increases

MANAGING INTERGROUP RELATIONS • Liaison roles • A capable person is assigned a liaison role & has to ensure effective communication & coordination. • The success of this method depends on the ability of the person • The method is likely to fail when the information flow between the departments is too high & the interaction between the group is too frequent to be handled by the person

MANAGING INTERGROUP RELATIONS • Task forces • A temporary group that exists only till the problem is solved. • Formed by selecting representatives from different departments. • Useful when a project requires coordination among many groups for a short duration. • Commonly used to solve political dispute. • After giving a effective solution task force is disbanded

MANAGING INTERGROUP RELATIONS Teams • Permanent teams are set to deal with day today problems. • Teams are cross functional & consists of members from various departments • Duel responsibility,towards their departments & towards team but the priority is given towards the problems first then their regular responsibilities. • After resolving the problem successfully team members return to their own departments

MANAGING INTERGROUP RELATIONS • Integrating departments • Used when relationship between the groups are too complex • Permanent departments which seeks to integrate various groups • Useful when groups have conflicting goals,face nonroutine problems & when the decision of group has impact in the organizational performance. • Used when organizations are downsizing • Are set up to ensure coordination among the groups.