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Chapter 11 Conflict and negotiation in the workplace

Learning Objectives

11.1 Define conflict and debate the positive and negative consequences of conflict in the workplace 11.2 Create a diagram of the conflict process model and identify six structural sources of conflict in organisations 11.3 Distinguish task from relationship conflict and describe the three conflict frames and their consequences 11.4 Outline the five strategic approaches to conflict handling and discuss the circumstances in which each would be most appropriate 11.5 Outline the strategies that skilled negotiators use to claim value and create value in negotiations 11.6 Compare and contrast the three types of third-party dispute resolution 11.7 Apply the seven approaches that organisations can take to reduce dysfunctional conflicts

Conflict and Negotiations at Qantas

Industrial actions, fleet grounding and urgent government intervention led Qantas to negotiate and settle with employees. But has Qantas won the battle only to lose the war?

Conflict Defined

The process in which one party perceives that its interests are being opposed or negatively affected by another party

Is Conflict Good or Bad?: Pre-1970s View

• Historically, experts viewed conflict as dysfunctional – Undermined relations – Wasted human energy – More job dissatisfaction, turnover, stress – Less productivity, information sharing Good 0 Bad Low Level of conflict High

Is Conflict Good or Bad?: 1970s to 1990s View

• 1970s to 1990s—belief Good in an optimal level of conflict • Some level of conflict is good because it: – Energises debate – Reexamines assumptions – Improves responsiveness to external environment – Increases team cohesion 0 Bad Low Optimal conflict Level of conflict High

The Conflict Process

Task vs Relationship Conflict

• Task conflict: conflict due to disagreements about how a task should be accomplished • Relationship conflict: conflict due to differences in personal values, individuals ’ styles, personality • Team satisfaction and performance decrease as either task or relationship conflict increases • Difficulty in separating task and relationship conflict

Interests vs Rights-based Frame

• Interests-based frame – Focuses on issue (hard on the problem, soft on the person) – Resolves differences through problem solving discussion • Rights-based and power-based frames – Focuses on personal rights or relative power – Low consideration for other party – Resolves differences through threats to protect rights – Tends to generate relationship conflict and conflict escalation

Structural Sources of Conflict

Incompatible goals • One party’s goals perceived to interfere with other’s goals Differentiation • Different values/beliefs • Explains cross-cultural and generational conflict Interdependence • Conflict increases with interdependence • Parties more likely to interfere with each other

Structural Sources of Conflict

continued

Scarce resources • Motivates competition for the resource Ambiguous rules • Create uncertainty, threaten goals • Without rules, people rely on politics Communication problems • Increase stereotyping • Reduce motivation to communicate • Escalate conflict when arrogant

Individual Differences in Conflict

• Emotional intelligence – Regulates emotions better, reducing hostile responses – View other’s hostility as information, not personal attack • Personal goals and priorities – Influence best conflict handling style • Conflict orientation – Win-win orientation—belief that parties will find a mutually beneficial solution – Win-lose orientation—belief that one party’s gain is the other’s loss (i.e. fixed pie)

Five Conflict Handling Styles

Conflict Handling Contingencies

• Problem solving – Best when:    Interests are not perfectly opposing Parties have trust/openness Issues are complex – Problem: other party takes advantage of information • Forcing – Best when:    You have a deep conviction about your position Quick resolution required Other party would take advantage of cooperation – Problems: relationship conflict, long-term relations

Conflict Handling Contingencies

continued

• Avoiding – Best when:   Conflict is emotionally charged (relationship conflict) Conflict resolution cost is higher than benefits – Problems: doesn’t resolve conflict, frustration • Yielding – Best when:  Other party has much more power   Issue is much less important to you than other party Value/logic of your position is imperfect – Problem: increases others’ expectations; imperfect solution

Conflict Handling Contingencies

continued

• Compromising – Best when:  Parties have equal power  Quick solution is required  Parties lack trust/openness – Problem: sub-optimal solution where mutual gains are possible

Resolving Conflict Through Negotiation

• Negotiation: conflicting parties attempt to resolve their divergent goals by redefining the terms of their interdependence • Need to consider desired outcomes, tactics, deal design and the scope of the negotiation

Negotiating Fundamentals

• Setting Limits

–Target point – Resistance point

• Assessing Power

– Consider alternatives – Skills

Creating and Claiming Value

The goal of value creation is to ensure that both negotiators obtain the best possible outcomes Managing the Deal Managing Information Managing the Process Beyond the Deal

Managing the Deal

• Information • Skills • Concessions • Strategies – Multi-issue proposals – Conceding on low-value items while getting concessions on high-value items

Managing Information

• Small number of strong arguments • Understand the other negotiator’s needs • Investigative approach to negotiations

Managing the Process

• Tactics: – Delaying or stalling the negotiation – Setting deadlines • Risk: negotiation turning into an escalating cycle of attack and counterattack • Ignore personal attacks and refocus on the substantive problem

Beyond the Deal

• Considering other aspects in addition to best possible deal: – Implementation – Social capital – Relationship building – Reputation – Ethical negotiation

Negotiating Ethically

Avoid: • Misrepresentation • False promises • Attacking an opponent’s network • Inappropriate information gathering • Strategic misrepresentation of positive or negative emotions

Culture and Conflict

• Individualism/collectivism – Focus on harmony versus personal goals • Power distance – High power distance people signal status in conflicts • High/low context style – Low context people communicate more directly, using logical arguments

Gender and Conflict

• During conflict, women (compared to men) tend to: – Focus more on relationship consequences – Set lower targets – Use fewer alternatives to improve their outcomes – See the process as necessarily competitive • Women have better outcomes in conflict when parties approach the disagreement collaboratively

Resolving Conflict Through Third-party Intervention

Choosing the Best Third-Party Strategy

• Managers prefer inquisitional strategy, but this is not usually the best approach • Mediation potentially offers the highest satisfaction with process and outcomes • Use arbitration when mediation fails

Organisational Approaches to Conflict Resolution

• Emphasising superordinate goals – Emphasise common objective rather than conflicting sub-goals – Reduce goal incompatibility and differentiation • Reducing values differences – Remove sources of different values and beliefs  e.g. move employees around to different jobs

Organisational Approaches to Conflict Resolution

continued

• Improving communication/understanding – Employees understand and appreciate each other ’s views through communication – Relates to contact hypothesis – Warning: apply communication/understanding after reducing differentiation • Reducing interdependence – Divide shared resources – Combine tasks – Use buffers

• • • •

Organisational Approaches to Conflict Resolution

continued

– Increasing resources Duplicate resources – – Clarifying rules and procedures Clarify resource distribution Change interdependence – – Establishing a positive climate Norms that encourage openness Norms that discourage negative emotions and encourage positive diffusion tactics (e.g. humour) Alternative dispute resolution

Summary

• Moderate conflict can be effective • The conflict process model begins with the five structural sources of conflict • The current perspective on conflict involves distinguishing task from relationship conflict • There are several conflict-handling styles: problem solving, forcing, avoiding, yielding and compromising. People who use problem solving have a win –win orientation • Effective negotiators need to engage in both collaboration and competition in order to obtain outcomes

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Transcript pms2123norhasbi.files.wordpress.com

Chapter 11

Conflict and negotiation in the workplace

Learning Objectives

Conflict and Negotiations at Qantas

Conflict Defined

Is Conflict Good or Bad?: Pre-1970s View

Is Conflict Good or Bad?: 1970s to 1990s View

The Conflict Process

Task vs Relationship Conflict

Interests vs Rights-based Frame

Structural Sources of Conflict

Structural Sources of Conflict

continued

Individual Differences in Conflict

Five Conflict Handling Styles

Conflict Handling Contingencies

Conflict Handling Contingencies

Conflict Handling Contingencies

Resolving Conflict Through Negotiation

Negotiating Fundamentals

• Setting Limits

• Assessing Power

Creating and Claiming Value

The goal of value creation is to ensure that both negotiators obtain the best possible outcomes Managing the Deal Managing Information Managing the Process Beyond the Deal

Managing the Deal

Managing Information

Managing the Process

Beyond the Deal

Negotiating Ethically

Culture and Conflict

Gender and Conflict

Resolving Conflict Through Third-party Intervention

Choosing the Best Third-Party Strategy

Organisational Approaches to Conflict Resolution

Organisational Approaches to Conflict Resolution

Organisational Approaches to Conflict Resolution

Summary

Chapter 11

Conflict and negotiation in the workplace

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