Conflict and Negotiation in the Workplace
Conflict and Negotiation in the Workplace
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 11
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Managing Intergenerational Conflict at L’Oreal Canada
L’Oreal Canada executive Marjolaine Rompré (left in this photo, with CEO Javier San Juan and Garnier brand director Sheila Morin) introduced educational seminars to help employees across generations improve their mutual understanding and thereby minimize conflict.
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Conflict Defined
The process in which one party perceives that its interests are being opposed or negatively affected by another party
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Is Conflict Good or Bad?: Pre 1970s
Historically, experts viewed conflict as dysfunctional
Undermined relations
Wasted human energy
More job dissatisfaction, turnover, stress
Less productivity, information sharing
Level of conflict
Conflict outcomes
Bad
Good
Low
High
0
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Is Conflict Good or Bad?: 1970s-1990s
1970s to 1990s – belief in an optimal level of conflict
Some level of conflict is good because:
Energizes debate
Reexamine assumptions
Improves responsiveness to external environment
Increases team cohesion
Level of conflict
Conflict outcomes
Bad
Good
Low
High
0
Optimal conflict
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Is Conflict Good or Bad?: Emerging View
Two types of conflict
Constructive conflict — Conflict is aimed at issue, not parties
Produces benefits of conflict
However, likely an upper limit to any conflict
Relationship conflict — Conflict is aimed at undermining the other party
Introduces perceptual biases
Distorts information processing
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Is Conflict Good or Bad?: Emerging View
Goal: encourage constructive conflict, minimize relationship conflict
Problem: difficult to separate constructive from relationship conflict
Drive to defend activated when ideas are critiqued
Level of conflict
Conflict outcomes
Bad
Good
Low
High
0
Constructive conflict
Relationship conflict
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Minimizing Relationship Conflict
Three conditions that minimize relationship conflict while engaging in constructive conflict
Emotional intelligence
Cohesive team
Supportive team norms
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Critical Thinking Question
The chief executive officer of Creative Toys, Inc., read about cooperation in Japanese companies and vowed to bring the same philosophy to the company. The goal is to avoid all conflict so that employees will work cooperatively and be happier at Creative Toys. Discuss the merits and limitations of the CEO’s policy.
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The Conflict Process
Sources of
Conflict
Manifest
Conflict /
Behavior
Conflict
Outcomes
Conflict
Perceptions
Conflict
Emotions
Conflict
Escalation Cycle
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Differentiation
Task Interdependence
Different values/beliefs
Explains cross-cultural and generational conflict
Conflict increases with interdependence
Pooled, Sequential, & Reciprocal
Parties more likely to interfere with each other
Incompatible
Goals
One party’s goals perceived to interfere with other’s goals
Reinforced by reward system
Structural Sources of Conflict
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Ambiguous Rules
Communication Problems
Creates uncertainty, threatens goals
Without rules, people rely on politics
Increases stereotyping
Reduces motivation to communicate
Escalates conflict when arrogant
Lack of opportunity, ability, & motivation
Scarce Resources
Motivates competition for the resource
Structural Sources of Conflict
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Conflict Handling at Xerox
Xerox CEO Ursula Burns (left in this photo) warns that the company has too much avoidance conflict handling. “We are really, really, really nice,” she emphasizes. “I want us to stay civil and kind, but we have to be frank.”
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Interpersonal Conflict Handling Styles
Win-win orientation
believe parties will find a mutually beneficial solution
Working together produces creative solution
Win-lose orientation
belief that the more one party receives, the less the other receives
Escalates conflict
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Assertiveness
Cooperativeness
Forcing
Problem-solving
Compromising
Avoiding
Yielding
High
Low
High
Interpersonal Conflict Handling Styles
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Conflict Handling Contingencies
Problem solving (win-win orientation)
Best when:
Interests are not perfectly opposing
Parties have trust/openness
Issues are complex
Problem: other party take advantage of information
Forcing (win-lose orientation)
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
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Conflict Handling Contingencies
Avoiding
Best when:
relationship conflict is high
conflict resolution cost is higher than benefits
Problems: doesn’t resolve conflict, frustration
Yielding (giving in)
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 other party’s expectations
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Conflict Handling Contingencies
Compromising
Best when…
Parties have equal power
Quick solution is required
Parties lack trust/openness
Problem: Sub-optimal solution where mutual gains are possible
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Organizational Approaches to Conflict Resolution
Emphasize superordinate goals
Emphasize common objective rather than conflicting sub-goals
Reduces goal incompatibility and differentiation
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1. Emphasize superordinate goals
Superordinate goal – a broad goal that all parties to a dispute
value and agree is important
• Emphasize common strategic objective rather than objectives
specific to the individual or work unit
• Reduces goal incompatibility and differentiation
2. Reduce differentiation
• Reduce differences that generate conflict
• Create common experiences e.g. moving staff across merged
companies
Structural Approaches to Conflict Resolution (Ways to alter causes of conflict)
Emphasizing superordinate goals (goal that both parties value)
Emphasize common objective rather than conflicting sub-goals
Reduces goal incompatibility and differentiation
Reducing differentiation
Remove sources of different values and beliefs
e.g. Move employees around to different jobs
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Structural Approaches to Conflict Resolution (Ways to alter causes of conflict)
Improving communication/understanding
Employees understand and appreciate each other’s views through communication
Relates to contact hypothesis
Two warnings:
Apply communication/understanding after reducing differentiation
A Western strategy that may conflict with values/traditions in other cultures
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Structural Approaches to Conflict Resolution (Ways to alter causes of conflict)
Reduce Task Interdependence
Dividing shared resources
Combine tasks
Use buffers
Increase Resources
Duplicate resources
Clarify Rules and Procedures
Clarify resource distribution
Change interdependence
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Resolving Conflict Through Negotiation
Negotiation — attempting to resolve divergent goals by redefining terms of interdependence
Which conflict handling style is best in negotiation?
Begin cautiously with problem-solving style
Shift to a win-lose style when
Mutual gains situation isn’t apparent
Other part won’t reciprocate info sharing
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Types of Third Party Intervention
Mediation
Arbitration
Inquisition
Level of
Process Control
Level of Outcome Control
High
High
Low
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Choosing the Best 3rd Party Strategy
Managers prefer inquisitional strategy, but not usually best approach
Mediation potentially offers highest satisfaction with process and outcomes
Use arbitration when mediation fails
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Resolving Conflict Through Negotiation
Negotiation — conflicting parties attempt to resolve their divergent goals by redefining the terms of their interdependence.
Need to balance collaborative behaviors (create value) and competitive behaviors (claim value)
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Your Positions
Initial Offer
Target
Initial Offer
Target
Opponent’s Positions
Area of
Potential
Agreement
Bargaining Zone Model
Resistance
Resistance
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Bargaining Zone
In win-lose situations
Parties begin with their initial offer point for each item on the bargaining agenda
Neither the target nor resistance points are revealed
Each side tries to move other side’s resistance point closer to their own initial offer
In purely win-win settings
Try to find a creative solution — keeps parties close to their initial offer points
McShane/Von Glinow OB 5e
© 2010 The McGraw-Hill Companies, Inc. All rights reserved
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Situational Influences on Negotiation
Location
Advantages of ‘home turf’ = no travel-related stress, easier access to resources, but can’t walk out
Physical setting
Time passage and deadlines
Time passage – Increases escalation of commitment to completing negotiations, but may result in excessive concessions
Deadlines – more motivation, but might make more concessions & less information sharing
Audience – anyone w/ a vested interest
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Effective Negotiation Behavior
Preparation and goal setting
Plan, goals, target, resistance points, consider alternatives
Gathering information
Communicating effectively
Focus on issues, use persuasion
Making concessions
Move toward area of agreement, motivating, communicates importance of negotiation
Depends on level of trust
Best strategy – be tough but still make concessions to motivate others to resolve conflict
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Questions?
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