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Chapter 14 - Conflict and Negotiation

The document discusses conflict and negotiation, outlining types of conflict, the conflict process, and the differences between distributive and integrative bargaining. It emphasizes the importance of understanding individual differences in negotiations and the role of third-party negotiations. Additionally, it provides implications for managers on managing conflict and improving negotiation skills.

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Rahul Sharma
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10 views34 pages

Chapter 14 - Conflict and Negotiation

The document discusses conflict and negotiation, outlining types of conflict, the conflict process, and the differences between distributive and integrative bargaining. It emphasizes the importance of understanding individual differences in negotiations and the role of third-party negotiations. Additionally, it provides implications for managers on managing conflict and improving negotiation skills.

Uploaded by

Rahul Sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Copyright ©2014 Pearson Education

2-2

Chapter 14

Conflict and
Negotiation

Copyright ©2016 Pearson


Copyright Education
©2014 Pearson Limited.
Education
After studying this
chapter,
you should be able to:
1. Describe the three types of conflict and 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. Assess the roles and functions of third party
negotiations
Copyright ©2014 Pearson Education, Inc.
Conflict Defined
 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

Copyright ©2014 Pearson Education, Inc.


Transitions in
Conflict Thought
 Traditional View
All conflict is harmful and must be avoided
 Interactionist View
Proposes not only that conflict can be a
positive force in a group but that some
conflict is absolutely necessary for a group
to perform effectively.
 Managed Conflict View
Conflict is inevitable but we should focus on
productive conflict resolution
Copyright ©2014 Pearson Education, Inc.
Functional vs Dysfunctional Conflict

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Copyright ©2014 Pearson Education, Inc.
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Copyright ©2014 Pearson Education, Inc.
Dyadic Conflict

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Copyright ©2014 Pearson Education, Inc.
The Conflict Process

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Stage I: Potential Opposition
In this stage there are three main
conditions that can cause conflict to arise
 Communication
 Barriers exist
 Too much or too little
 Structure
 Group size, age,
diversity
 Organizational
rewards, goals, group
dependency
 Personal Variables
 Personality types
Copyright ©2014 Pearson Education, Inc.
 Emotionality, values
Stage II: Cognition and
Personalization
Looks at the recognition or cognition of
the conflict and the personalization or the
emotional part of the conflict
 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, orEducation,
Copyright ©2014 Pearson hostilityInc.
Stage III: Intentions
 Intentions: The decision to act in a
given way
 Inferred (often erroneous) intentions may
cause greater conflict

Copyright ©2014 Pearson Education, Inc.


Stage IV: Behavior
 Where conflict becomes visible
 Usually overt attempts to implement each
party’s intentions
 May become an inadvertent stimulus due to
miscalculations or unskilled enactments
 Functional conflicts: confined to lower
range of continuum – subtle, indirect, and
highly controlled
 Dysfunctional conflicts: upper range –
highly destructive activities such as strikes
and riots
Copyright ©2014 Pearson Education, Inc.
Stage V: Outcomes
 Functional:
 Improves decision quality
 Stimulates creativity and innovation
 Encourages interest and curiosity
 Problems are aired
 Accepts change and self-evaluation
 Dysfunctional:
 Group is less effective
 Cohesiveness and communications are
reduced
 Leads to the destruction of the group
Copyright ©2014 Pearson Education, Inc.
Negotiation
 Negotiation: Process in which two or
more parties exchange goods or services
and attempt to agree on the exchange rate
for them

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Distributive vs Integrative

Copyright ©2014 Pearson Education, Inc.


Necessary Conditions for
Integrative Bargaining
 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

Copyright ©2014 Pearson Education, Inc.


Copyright ©2014 Pearson Education, Inc.
The Negotiation Process

Copyright ©2014 Pearson Education, Inc.


Individual Differences
in Negotiation
 Personality
 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
 Men are slightly better
 Many stereotypes – low power positions
 Women’s self-image as negotiators is poor
Copyright ©2014 Pearson Education, Inc.
Copyright ©2014 Pearson Education, Inc.
Third Party
Negotiation

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Copyright ©2014 Pearson Education, Inc.
Copyright ©2014 Pearson Education, Inc.
Week 12 Eid-Break

Make-up Week

Week 10 Exam Week

Week 11

11 Jun 2019 – submission of group project


- presentation of group project
- Final Exam Revision
Copyright ©2014 Pearson Education, Inc.
Implications for
Managers: Managing
Conflict
 Use in the appropriate situations:
 Competition – quick action is vital
 Collaboration – to gain commitment
with consensus
 Avoidance – the issue is trivial
 Accommodation – when you’re wrong
 Compromise – opponents have equal
power and hold mutually exclusive
goals
Copyright ©2014 Pearson Education, Inc.
Implications for
Managers: Improving

Negotiation Skills
Set ambitious goals
 Pay little attention to initial offers
 Research your opponent
 Address the problem, not the personalities
 Be creative - emphasize win-win solutions

Copyright ©2014 Pearson Education, Inc.


Keep in Mind…
 Conflict is an inherent part of
organizational life: probably necessary
for optimal organizational function
 Task conflict is the most constructive
 Most effective negotiators use both types
of bargaining and know the appropriate
tactics

Copyright ©2014 Pearson Education, Inc.


Summary
1. Defined conflict and differentiated between
the traditional, human relations, and
interactionist views of conflict.
2. Outlined the conflict process.
3. Contrasted distributive and integrative
bargaining.
4. Applied the five steps of the negotiation
process.
5. Showed how individual differences
influenced negotiations.
Copyright ©2014 Pearson Education, Inc.

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