Essentials of Organizational Behavior Fourteenth Edition Chapter 14 Conflict and Negotiation Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. After studying this chapter you should be able to: 1. Describe the three types of conflict and the 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. Describe the social factors that influence negotiations. 7. Assess the roles and functions of third-party negotations. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Definition of Conflict • 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 © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Perspectives of Conflict • Functional conflict: Supports the goals of the group and improves its performance • Dysfunctional conflict: Hinders group performance Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Effect of Levels of Conflict Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Types of Conflict • Three categories of conflict: 1. Task conflict: Work content and goals 2. Relationship conflict: Interpersonal relationships 3. Process conflict: How the work is done Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Desired Conflict Levels Source of Conflict Blank Blank Low Task Functional Relationship Process Blank Functional Level of Conflict Moderate Blank High Blank Dysfunctional Dysfunctional Blank Dysfunctional Blank Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Loci of Conflict • Three sources of conflict: 1. Dyadic conflict: Conflict between two people 2. Intragroup conflict: Conflict occurring within a group or team 3. Intergroup conflict: Conflict between groups or teams Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. The Conflict Process Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Stage I: Potential Opposition • Communication – Barriers exist – Too much or too little • Structure – Group size, age, diversity – Organizational rewards, goals, group dependency • Personal Variables – Personality types – Emotionality Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Stage II: Cognition and Personalization • 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, or hostility Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Stage III: Intentions (1 of 2) • Intentions: Decisions to act in a given way – Inferred (often erroneous) intentions may cause greater conflict • Five conflict handling intentions: 1. 2. 3. 4. 5. Competing Collaborating Avoiding Accommodating Compromising Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Stage III: Intentions (2 of 2) Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Stage IV: Behavior Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Stage V: Outcomes • Functional Outcomes: – – – – – Improves decision quality Stimulates creativity and innovation Encourages interest and curiosity Problems are aired Accepts change and self-evaluation • Dysfunctional Outcomes: – Group is less effective – Reduces cohesiveness and communications – Leads to the destruction of the group Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Managing Conflict • Minimize counterproductive conflict: – Recognize when there really is a disagreement – Encourage open, frank discussion focused on interests – Have opposing groups pick important issues and work for mutual satisfaction – Emphasize shared interests Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Cultural Influences • Culture influences conflict resolution strategies – Collectivist cultures try to use indirect methods to preserve relationships ▪ Promote the good of the group as a whole – Individualist cultures confront differences of opinion directly and openly Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Negotiation • Negotiation: Process that occurs when two or more parties decide how to allocate scarce resources Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Bargaining Strategies Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Distributive Bargaining Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Integrative Bargaining • Integrative bargaining: A win-win solution is possible • But: – 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 © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. The Negotiation Process Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Individual Differences in Negotiation Effectiveness • Personality Traits – 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 Differences – Men are slightly better – Many stereotypes – low power positions Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Negotiating in a Social Context • Reputation – Trustworthiness ▪ Competence and integrity • Relationships – What is best for the relationship as a whole Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Third-Party Negotiations • Basic third party roles: 1. Mediator: neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives 2. Arbitrator: third party to a negotiation who has the authority to dictate an agreement 3. Conciliator: trusted third party who provides an informal communication link between the negotiator and the opponent Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Implications for Managers • Choose an authoritarian management style in some situations. • Seek integrative solutions in some situations. • Build trust. • Consider compromise. • Consider the tradeoffs between distributive and integrative bargaining. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Copyright Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

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