Chapter 11 Conflict and Negotiation in the Workplace
Chapter 11 Conflict and Negotiation in the Workplace Conflict - The process in which one party perceives that its interests are being opposed or negatively affected by another party - Based on perceptions - Positive consequences o Better decisions (test logic, questions assumptions) o Improves responsiveness to external environment o Increases team cohesion (when conflict outside the team) - Negative consequences o Wastes time, energy, resources o Less information sharing, productivity o More organizational politics o More job dissatisfaction, turnover, stress o Weakens team cohesion (when conflict is within team) Emerging View: Constructive Versus Relationship Conflict - Constructive (task-oriented) conflict o Parties focus on the issue while maintaining respect for people having other points of view o Try to understand the logic and assumptions of each position o Have an upper limit to the intensity of any disagreement - Relationship (socioemotional) conflict o Parties focus on personal characteristics (not issues) as the source of conflict o Try to undermine each other’s worth/competence o Accompanied by strong negative emotions (drive to defend) Minimizing Relationship Conflict - Goal: encourage constructive conflict, minimize relationship conflict - Problem: relationship conflict often develops when engaging in constructive conflict - Three conditions that minimize relationship conflict during constructive conflict: o Emotional intelligence Better able to regulate their emotions during debate Reduces the risk of escalating perceptions of interpersonal hostility o Cohesive team Allows each person to know about and anticipate the behaviors and emotions of their teammates Produces a stronger social identity with the group
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Supportive team norms Different norms can produce various effect on making positive group emotions
The Conflict Process
Sources of Conflict Incompatible goals Differentiation
Conflict Perceptions and Emotions Manifest Conflict
Interdependence Scare resources
Conflict style
Ambiguous rules
Decisions
Poor communication
Overt behaviors
Conflict Outcomes Positive •Better decisions •Responsive organization •Team cohesion
Negative •Stree/low morale •Turnover •Politics •Lower performance •Distorted information
Structural Sources of Conflict - Incompatible goals o One party’s goals perceived to interfere with other’s goals - Differentiation o Different values/beliefs o Explains cross-cultural and generational conflict - Interdependence o Conflict increases with interdependence o Parties more likely to interfere with each other - Scarce resources o Motivates competition for the resource - Ambiguous rules o Creates uncertainty, threatens goals o Without rules, people rely on politics - Communication problems o Increases stereotyping o Reduces motivation to communicate o Escalates conflict when arrogant
Five Conflict Handling Styles
Assertivene
High
Low
Forcing
Problem-Solving Compromising
Avoiding
Yielding Cooperativeness
High
Conflicting Handling Contingencies - Problem solving o Tries to find a solution that is beneficial for both parties (win-win orientation) o Information sharing is important because both parties collaborate to identify common group and potential solutions that satisfy everyone o Best when: Interests are not perfectly opposing Parties have trust/openness Issues are complex o Problem: other party may use information to its advantage - Forcing o Tries to win the conflict at the other’s expense (win-lose orientation) o Relies on assertiveness to get one’s own way o Best when: You have a deep conviction about your position Quick resolution required Other party would take advantage of cooperation o Problems: relationship conflict, long-term relations - Avoiding o Smooth over or avoid conflict situations altogether o Represents a low concern for both self and the other party o Best when: Conflict is emotionally-charged (relationship conflict) Conflict resolution cost is higher than benefits o Problems: doesn’t resolve conflict, frustration - Yielding o Involves giving in completely to the other side’s wishes o Making unilateral concessions and unconditional promises o 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 o Problems: increases other’s expectations; imperfect solution
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Compromising o Involves looking for a position in which your boss are offset by equally valued gains, matching the other party’s concessions, making conditional promises or threats o Best when: Parties have equal power Quick solution is required Parties lack trust/openness o Problem: sub-optimal solution where mutual gains are possible
Organizational Approaches to Conflict Resolution - Emphasize superordinate goals o A broad goal that all parties to a dispute value and agree is important o Emphasize common objective rather than conflicting sub-goals o Reduces goal incompatibility and differentiation - Reduce differentiation o Remove sources of different values and beliefs Move employees around to different jobs - Improve communication/understanding o Employees understand and appreciate each other’s views through communication o Relates to contact hypothesis The theory stating that the more we interact with someone, the less prejudiced or perceptually biased we will be against that person o Warning: apply communication/understanding after reducing differentiation - Reduce interdependence o Use integrators Employees who coordinate the activities of differentiated work units toward the completion of a common task Rarely have direct authority over the departments the integrate Must rely on referent power and persuasion to manage conflict and accomplish the work o Combine tasks Both a form of job enrichment and a way to reduce task interdependence o Create buffers Any mechanism that loosens the coupling between two or more people or work units Help to reduce the potential for conflict - Increase resources o Duplicate resources
-
Clarify rules and procedures o Clarify resource distribution o Change interdependence
Types of Third Party Intervention
High
Mediation
Inquisition
Level of process control
Arbitration
Low -
Level of decision control
High
Any attempt by a relatively neutral person to help conflicting parties resolve their differences o Arbitration Have high control over the final decision, but low control over the process Applied as the final stage of grievances by unionized employees in many countries o Inquisition Control all discussion about the conflict Have high decision control – choose an action that will resolve the conflict High process control – choose which information to examine and how to examine it o Mediation High control over the intervention process Manage the process and context of interaction between the disputing parties The parties make the final decision about how to resolve their differences Have little or no control over the conflict resolution decision
Choosing the Best Third 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 Resolving Conflict through Negotiation - Negotiation o 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) Balancing Zone Model
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Initial offer point – the team’s opening offer to the other party Target point – the team’s realistic goal or expectation for the final agreement Resistance point – the point beyond which the team will make no further concessions
Strategies for Claiming Value - Claiming value – aiming for the best possible outcomes for yourself and your constituents o Prepare and set goals Know the three key positions in the bargaining zone model Research what the other party wants from negotiation o Know your BATNA Best alternative to a negotiated agreement Estimate your power in the negotiation Cost of ending negotiation best outcome through another means o Manage time Avoid time pressure on you; avoid escalation of commitment effect
o
Manage first offers and concessions Enable parties to move toward the area of potential agreement Symbolize each party’s motivation to bargain in good faith Tell the other party of the relative importance of the negotiating items
Strategies for Creating Value - Creating value – use problem solving to help both parties reach the best outcomes o Gather information Understand other part’s needs and expectations o Discover priorities through offers and concessions Make multi-issue proposals o Build the relationship (trustworthiness) Common backgrounds, manage first impression, maintaining positive emotions, act reliably Situational Influences on Negotiation - Location - Physical setting o The physical distance between the parties and formality of the setting - Audience characteristics o With audience, negotiators act differently.
o
Supportive team norms Different norms can produce various effect on making positive group emotions
The Conflict Process
Sources of Conflict Incompatible goals Differentiation
Conflict Perceptions and Emotions Manifest Conflict
Interdependence Scare resources
Conflict style
Ambiguous rules
Decisions
Poor communication
Overt behaviors
Conflict Outcomes Positive •Better decisions •Responsive organization •Team cohesion
Negative •Stree/low morale •Turnover •Politics •Lower performance •Distorted information
Structural Sources of Conflict - Incompatible goals o One party’s goals perceived to interfere with other’s goals - Differentiation o Different values/beliefs o Explains cross-cultural and generational conflict - Interdependence o Conflict increases with interdependence o Parties more likely to interfere with each other - Scarce resources o Motivates competition for the resource - Ambiguous rules o Creates uncertainty, threatens goals o Without rules, people rely on politics - Communication problems o Increases stereotyping o Reduces motivation to communicate o Escalates conflict when arrogant
Five Conflict Handling Styles
Assertivene
High
Low
Forcing
Problem-Solving Compromising
Avoiding
Yielding Cooperativeness
High
Conflicting Handling Contingencies - Problem solving o Tries to find a solution that is beneficial for both parties (win-win orientation) o Information sharing is important because both parties collaborate to identify common group and potential solutions that satisfy everyone o Best when: Interests are not perfectly opposing Parties have trust/openness Issues are complex o Problem: other party may use information to its advantage - Forcing o Tries to win the conflict at the other’s expense (win-lose orientation) o Relies on assertiveness to get one’s own way o Best when: You have a deep conviction about your position Quick resolution required Other party would take advantage of cooperation o Problems: relationship conflict, long-term relations - Avoiding o Smooth over or avoid conflict situations altogether o Represents a low concern for both self and the other party o Best when: Conflict is emotionally-charged (relationship conflict) Conflict resolution cost is higher than benefits o Problems: doesn’t resolve conflict, frustration - Yielding o Involves giving in completely to the other side’s wishes o Making unilateral concessions and unconditional promises o 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 o Problems: increases other’s expectations; imperfect solution
-
Compromising o Involves looking for a position in which your boss are offset by equally valued gains, matching the other party’s concessions, making conditional promises or threats o Best when: Parties have equal power Quick solution is required Parties lack trust/openness o Problem: sub-optimal solution where mutual gains are possible
Organizational Approaches to Conflict Resolution - Emphasize superordinate goals o A broad goal that all parties to a dispute value and agree is important o Emphasize common objective rather than conflicting sub-goals o Reduces goal incompatibility and differentiation - Reduce differentiation o Remove sources of different values and beliefs Move employees around to different jobs - Improve communication/understanding o Employees understand and appreciate each other’s views through communication o Relates to contact hypothesis The theory stating that the more we interact with someone, the less prejudiced or perceptually biased we will be against that person o Warning: apply communication/understanding after reducing differentiation - Reduce interdependence o Use integrators Employees who coordinate the activities of differentiated work units toward the completion of a common task Rarely have direct authority over the departments the integrate Must rely on referent power and persuasion to manage conflict and accomplish the work o Combine tasks Both a form of job enrichment and a way to reduce task interdependence o Create buffers Any mechanism that loosens the coupling between two or more people or work units Help to reduce the potential for conflict - Increase resources o Duplicate resources
-
Clarify rules and procedures o Clarify resource distribution o Change interdependence
Types of Third Party Intervention
High
Mediation
Inquisition
Level of process control
Arbitration
Low -
Level of decision control
High
Any attempt by a relatively neutral person to help conflicting parties resolve their differences o Arbitration Have high control over the final decision, but low control over the process Applied as the final stage of grievances by unionized employees in many countries o Inquisition Control all discussion about the conflict Have high decision control – choose an action that will resolve the conflict High process control – choose which information to examine and how to examine it o Mediation High control over the intervention process Manage the process and context of interaction between the disputing parties The parties make the final decision about how to resolve their differences Have little or no control over the conflict resolution decision
Choosing the Best Third 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 Resolving Conflict through Negotiation - Negotiation o 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) Balancing Zone Model
-
Initial offer point – the team’s opening offer to the other party Target point – the team’s realistic goal or expectation for the final agreement Resistance point – the point beyond which the team will make no further concessions
Strategies for Claiming Value - Claiming value – aiming for the best possible outcomes for yourself and your constituents o Prepare and set goals Know the three key positions in the bargaining zone model Research what the other party wants from negotiation o Know your BATNA Best alternative to a negotiated agreement Estimate your power in the negotiation Cost of ending negotiation best outcome through another means o Manage time Avoid time pressure on you; avoid escalation of commitment effect
o
Manage first offers and concessions Enable parties to move toward the area of potential agreement Symbolize each party’s motivation to bargain in good faith Tell the other party of the relative importance of the negotiating items
Strategies for Creating Value - Creating value – use problem solving to help both parties reach the best outcomes o Gather information Understand other part’s needs and expectations o Discover priorities through offers and concessions Make multi-issue proposals o Build the relationship (trustworthiness) Common backgrounds, manage first impression, maintaining positive emotions, act reliably Situational Influences on Negotiation - Location - Physical setting o The physical distance between the parties and formality of the setting - Audience characteristics o With audience, negotiators act differently.
