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Chapter 11 Managing Conflict and Negotiations Negotiating

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Title: Chapter 11 Managing Conflict and Negotiations Negotiating


1
Managing Conflict and
Negotiations
2
A Contemporary Perspective on Conflict
  • Conflict is Inevitable, but is
    Neither inherently Good nor Bad.
  • The Critical Issue with conflict
    is how it is Managed.

3
A Contemporary Perspective on Conflict
  • Conflict is defined in terms of the Effect it has
    on the Organization
  • Functional conflict
  • Dysfunctional conflict

4
Functional Conflict
  • A Confrontation between groups that Enhances
    organizational Performance.
  • Without functional conflict in organizations
  • there would be little commitment to change, and
  • most groups would become stagnant.

5
Functional Conflict
  • Functional conflict can
  • increase awareness of problems that need to be
    addressed
  • result in broader, more productive searches for
    solutions
  • facilitate positive change, adaptation, and
    innovation.

6
Dysfunctional Conflict
  • Confrontation or interaction between groups that
    harms the organization or hinders achievement of
    organizational goals.
  • Management must try to eliminate
    dysfunctional conflict

7
Intergroup Conflict and Org. Performance Exhibit
11.1 (p. 312)
Level of Intergroup Conflict
Level of Organizational Performance
Probable Impact on Organization
Organization Characterized By
Slow adaptation to environment Few changes
Little stimulation of
ideas Apathy Stagnation
Situation 1
Low or none
Dysfunctional
Low
Positive push toward Goals Innovation
change Search for problem solutions Creativity
quick adaptation to environmental changes
Situation 2
Optimal
Functional
High
Disruption Interference with
activities Coordination difficulties Chaos
Situation 3
Dysfunctional
High
Low
8
Stages of Conflict
Perceived Conflict
Intergroup Conflicts develop over a period of Time
Felt Conflict
Manifest Conflict
9
What Causes Intergroup Conflict?
  • Work Interdependence
  • Pooled interdependence
  • Sequential interdependence
  • Reciprocal interdependence

10
Group A
POOLED
Goals
Group B
Types of Interdependence
SEQUENTIAL
Group A
Group B
Goals
Group A
Goals
Goals
RECIPROCAL
Group B
11
What Causes Intergroup Conflict?
  • Goal Differences
  • Mutually Exclusive Goals
  • Limited Resources
  • Different Time Horizons

12
What Causes Intergroup Conflict?
  • Perceptual Differences
  • Status Incongruency
  • Inaccurate Perceptions
  • Different Perspectives

13
The Consequences of
Dysfunctional Intergroup Conflict
  • Changes Within Groups
  • Increased Group Cohesiveness
  • Emphasis on Loyalty
  • Rise in Autocratic Leadership
  • Focus on Activity
  • Changes Between Groups
  • Distorted Perceptions
  • Negative Stereotyping
  • Decreased Communication

14
Managing Intergroup Conflict Through Resolution
15
Conflict-Resolution Grid
Accommodating or Smoothing
Problem Solving or Collaboration
HIGH
Allowing other group to win
Working together to solve problems
Compromising
Finding acceptable solution so everyone feels good
EXTERNAL FOCUS
Avoiding
Dominating
LOW
Ignoring or steering clear of other group
Working to dominate and control
LOW
HIGH
INTERNAL FOCUS
16
Organizational Encounter (p. 320)
  • How do You handle Conflict?
  • Discuss your results with your group.
  • Report the various styles from your group.

17
When to Use the Different
Conflict-Resolution Approaches
  • Dominating for important issues
  • Where you are certain you are right, and
  • The benefit of a resolution outweighs the
    drawback of possible negative feelings
    by the dominated group.

18
When to Use the Different
Conflict-Resolution Approaches
  • Accommodating for disputes of much greater
    importance to the
    other group than to your group.

19
When to Use the Different
Conflict-Resolution Approaches
  • Problem-Solving when both groups are willing
    to invest time and effort to reach a resolution
    maximizing everyones outcome.
  • Avoiding Primarily a temporary measure
    to buy more time.

20
When to Use the Different
Conflict-Resolution Approaches
  • Compromising a middle ground
  • Good backup approach when other
    approaches fail to resolve the issue.

21
Overview of Intergroup Conflict
Exhibit 11.4 (p. 322)
  • Review of Positive Consequences of Functional
    Conflict and
    Negative Consequences of Dysfunctional Conflict

22
Global OB (p. 323)
  • Using Japanese and American perspectives as an
    example, why is intercultural
    conflict resolution so complex?

23
Stimulating Constructive Intergroup Conflict
  • Bring Outsiders into the group
  • Alter the organizations Structure
  • Stimulate Competition
  • Make use of Programmed Conflict
  • Devils Advocacy

24
Negotiations
  • Negotiations Process in which the parties to a
    disagreement attempt to reach acceptable
    agreement.

25
You Be the Judge (p.325)
  • How should you handle
    low-balling in salary
    negotiations?

26
Negotiations
  • In an organization,
    negotiation may take place
  • 1. Between Two People
  • 2. Within a Group
  • 3. Between Groups
  • 4. Over the Internet

27
Win-Lose Negotiating
  • Classical view that negotiations are a Zero-Sum
    Game
  • To whatever extent One Party Wins something, the
    Other Party Loses.
  • Also known as
    Distributive Negotiating
  • The process of Distributing
    Scarce Resources.

28
Win-Win Negotiating
  • A Positive-Sum approach
  • Each party gains without a corresponding loss for
    the other party.
  • Does not mean that everyone gets everything they
    want.
  • Agreement leaves all parties
    better off than prior to the agreement.

29
Negotiation Tactics
30
Variables Affecting Negotiations
  • There is no one best way to negotiate.
  • Selection of specific Negotiation Strategies and
    Tactics depends on
  • 1. Issues being negotiated.
  • 2. Environment in which negotiations take place.
  • 3. Outcomes Desired from the negotiations.

31
Negotiations Desired Outcomes
  • Substantive Outcomes
  • Have to do with how the specific issue is
    settled.
  • Strive to end up with a bigger piece of the pie
    than the other party.
  • Relationship Outcomes
  • Negotiate in a manner designed primarily to
    maintain good relations between the parties.
  • Desired irrespective of the substantive result.

32
Mastenbroeks Model to Increase Negotiating
Effectiveness Key Activities
  1. Obtain Substantial Results
  2. Influence the Balance of Power
  3. Promote a Constructive Climate
  4. Obtain Procedural Flexibility

33
Using Third-Party Negotiations
34
Negotiating Globally
  • Negotiating with individuals from different
    countries and cultures poses a
    number of issues.
  • Demonstrating knowledge about a
    culture is one way to establish rapport and
    respect with another negotiator.

35
Improving Negotiations
  1. Begin bargaining with a positive overture and
    reciprocate the opponents concessions.
  2. Concentrate on the negotiation issues and
    situational factors, not on the opponent.
  3. Look below the surface of your opponents
    bargaining -- try to determine the strategy.

36
Improving Negotiations
  1. Do not allow constituents to create competitive
    bargaining.
  2. If you have power in a negotiation, use it to
    guide the opponent toward an agreement.
  3. Be open to accepting third-party assistance!

37
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38
Case 11.1 Conflict at Walt Disney
  1. Describe the conflict between Eisner and the
    Weinsteins, the 2 Board Members (Disney Gold),
    and Steve Jobs. Was it Functional?
    Dysfunctional? Explain.
  2. Was the conflict between Eisner and Jobs
    Perceived? Felt? Manifest?

39
Case 11.1 Conflict at Walt Disney
  1. Which conflict resolution approaches did Eisner
    and Iger use Dominating, Problem Solving,
    Avoiding, or Accommodating? Explain.
  2. Did Igers less confrontational approach to
    conflict help the company survive a major
    economic recession?
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