Essentials of Organizational Behavior: Fourteenth Edition

Essentials of Organizational Behavior
Fourteenth Edition
Chapter 14
Conflict and Negotiation
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
After studying this chapter you should be
able to:
1. Describe the three types of conflict and the three loci of
conflict.
2. Outline the conflict process.
3. Contrast distributive and integrative bargaining.
4. Apply the five steps of the negotiation process.
5. Show how individual differences influence negotiations.
6. Describe the social factors that influence negotiations.
7. Assess the roles and functions of third-party negotations.
Definition of Conflict
• Conflict: 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
Perspectives of Conflict
• Functional conflict:
Supports the goals of the group and improves its
performance
• Dysfunctional conflict:
Hinders group performance
Effect of Levels of Conflict
Types of Conflict
• Three categories of conflict:
1. Task conflict:
Work content and goals
2. Relationship conflict: Interpersonal relationships
3. Process conflict:
How the work is done
Desired Conflict Levels
Source of Conflict Blank Level of Conflict Blank

Blank Low Moderate High
Task Functional Blank Dysfunctional
Relationship Blank Dysfunctional Blank
Process Functional Dysfunctional Blank
Loci of Conflict
• Three sources of conflict:
1. Dyadic conflict:
Conflict between two people
2. Intragroup conflict:
Conflict occurring within a group or team
3. Intergroup conflict:
Conflict between groups or teams
The Conflict Process
Stage I: Potential Opposition
• Communication
– Barriers exist
– Too much or too little
• Structure
– Group size, age, diversity
– Organizational rewards, goals, group dependency
• Personal Variables
– Personality types
– Emotionality
Stage II: Cognition and Personalization
• Potential for conflict is actualized
• Parties “make sense” of conflict by defining it and
its potential solutions
• Emotions play a major role in shaping perceptions
– Perceived conflict: awareness needed for
actualization
– Felt conflict: emotional involvement - parties
experience anxiety, tension, frustration, or hostility
Stage III: Intentions (1 of 2)
• Intentions:
Decisions to act in a given way
– Inferred (often erroneous) intentions may cause greater
conflict
• Five conflict handling intentions:
1. Competing
2. Collaborating
3. Avoiding
4. Accommodating
5. Compromising
Stage III: Intentions (2 of 2)
Stage IV: Behavior
Stage V: Outcomes
• Functional Outcomes:
– Improves decision quality
– Stimulates creativity and innovation
– Encourages interest and curiosity
– Problems are aired
– Accepts change and self-evaluation
• Dysfunctional Outcomes:
– Group is less effective
– Reduces cohesiveness and communications
– Leads to the destruction of the group
Managing Conflict
• Minimize counterproductive conflict:
– Recognize when there really is a disagreement
– Encourage open, frank discussion focused on interests
– Have opposing groups pick important issues and work
for mutual satisfaction
– Emphasize shared interests
Cultural Influences
• Culture influences conflict resolution strategies
– Collectivist cultures try to use indirect methods to
preserve relationships
 Promote the good of the group as a whole
– Individualist cultures confront differences of opinion
directly and openly
Negotiation
• Negotiation: Process that occurs when two or
more parties decide how to allocate scarce
resources
Bargaining Strategies
Distributive Bargaining
Integrative Bargaining
• Integrative bargaining:
A win-win solution is possible
• But:
– Parties must be open with information and candid
about their concerns
– Both parties must be sensitive regarding the other’s
needs
– Parties must be able to trust each other
– Both parties must be willing to be flexible
The Negotiation Process
Individual Differences in Negotiation
Effectiveness
• Personality Traits
– Little evidence to support
– Disagreeable introvert is best
• Moods & Emotions
– Showing anger helps in distributive negotiations
– Positive moods help integrative negotiations
• Culture
– Negotiating styles vary across national cultures
• Gender Differences
– Men are slightly better
– Many stereotypes – low power positions
Negotiating in a Social Context
• Reputation
– Trustworthiness
 Competence and integrity
• Relationships
– What is best for the relationship as a whole
Third-Party Negotiations
• Basic third party roles:
1. Mediator: neutral third party who facilitates a
negotiated solution by using reasoning, persuasion,
and suggestions for alternatives
2. Arbitrator: third party to a negotiation who has the
authority to dictate an agreement
3. Conciliator: trusted third party who provides an
informal communication link between the negotiator
and the opponent
Implications for Managers
• Choose an authoritarian management style in
some situations.
• Seek integrative solutions in some situations.
• Build trust.
• Consider compromise.
• Consider the tradeoffs between distributive and
integrative bargaining.
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