Conflicts and

Negotiation

14-1
 Learning Objectives
After studying this chapter, you should be able to:
➢Differentiate between the traditional and
interactionist views of conflict.
➢Describe the three types of conflict and the two loci
of conflict.
➢Outline the conflict process.
➢Contrast distributive and integrative bargaining.
➢Apply the five steps of the negotiation process.
➢Show how individual differences influence
negotiations.
➢Assess the roles and functions of third-party
negotiations. 14-2
 Contrast the Strengths and
Weaknesses of Group Decision Making
➢Groupthink – situations in which group pressures for
conformity deter the group from critically appraising unusual,
minority, or unpopular views.
➢ Related to norms
➢Groupshift – a change between a group’s decision and an
individual decision that a member within the group would
make.
➢ The shift can be toward either conservatism or greater risk,
but is generally toward a more extreme version of the
group’s original position.
LO 1
Define Conflict

➢Conflict – a 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.
➢ If no one is aware of a conflict, then it is generally
agreed no conflict exists.
➢ Also needed to begin the conflict process are
opposition or incompatibility and interaction.
14-4
LO 1 Differentiate Between the Traditional
and Interactionist Views of Conflict

➢The Traditional View of Conflict

➢ The traditional view of conflict – conflict was a
dysfunctional outcome resulting from poor
communication, a lack of openness and trust
between people, and the failure of managers to be
responsive to the needs and aspirations of their
employees.
➢Assumed all conflict was bad and to be avoided.
➢Viewed negatively and discussed with such
terms violence, destruction, and irrationality. 14-5
LO 1 Differentiate Between the Traditional
and Interactionist Views of Conflict

➢The Interactionist View of Conflict

➢ According to the interactionist view of conflict a
harmonious, peaceful, tranquil, and cooperative
group is prone to becoming static, apathetic, and
unresponsive to needs for change and innovation.
➢ But not all conflicts are good.
➢Functional conflict supports goals.
➢Conflicts that hinder group performance are
dysfunctional or destructive forms of conflict. 14-6
LO 2
Describe the Three Types of
Conflict
➢Types of Conflict
➢ Researchers have classified conflicts into three
categories:
1. Task conflict relates to the content and goals
of the work.
2. Relationship conflict focuses on interpersonal
relationships.
3. Process conflict is about how the work gets
done. 14-7
LO 2
Describe the Three Loci of Conflict

➢Loci of Conflict
➢ Another way to understand conflict is to
consider its locus, or where the conflict occurs.
➢ There are three basic types:
➢Dyadic conflict is conflict between two people.
➢Intragroup conflict occurs within a group or
team.
➢Intergroup conflict is conflict between groups
or teams.
14-8
LO 3
Outline the Conflict Process

14-9
LO 3
Dimensions of Conflict-Handling

14-
10
LO 3
Conflict-Intensity Continuum

14-
11
LO 3
Conflict Management Techniques

14-
12
LO 3
Outline the Conflict Process
➢Stage V: Outcomes
➢ Conflict can be functional or dysfunctional.
➢ Conflict is constructive when it…
➢Improves the quality of decisions, stimulates creativity
and innovation, encourages interest and curiosity,
provides the medium through which problems can be
aired and tensions released, and fosters an environment
of self-evaluation and change.
➢ Conflict is destructive when it…
➢Breeds discontent, reduces group effectiveness, and
threatens the group’s survival. 14-
13
LO 3
Managing Functional Conflict
➢ One of the keys to minimizing counterproductive
conflicts is recognizing when there really is a
disagreement.
➢Many apparent conflicts are due to people using
different language to discuss the same general
course of action.

➢ Successful conflict management recognizes these

different approaches.
➢Attempts to resolve them by encouraging open,
frank discussion focused on interests rather than
issues. 14-
14
LO 3
Managing Functional Conflict
➢Groups that resolve conflicts successfully discuss
differences of opinion openly.
➢ The most disruptive conflicts are those that are
never addressed directly.

➢Managers need to emphasize shared interests in

resolving conflicts.
➢ Groups with cooperative conflict styles and an
underlying identification to group goals are
more effective than groups with a more
competitive style.
14-
15
LO 4
Negotiation

➢Negotiation is a process in which two or more

parties exchange goods or services and attempt to
agree upon the exchange rate for them.
➢ We use the terms negotiation and bargaining
interchangeably.

14-
16
LO 4
Contrast Distributive
and Integrative Bargaining

14-
17
LO 4
Distributive
Bargaining
➢Make the first offer, and make it an aggressive
one.
➢ Shows power.
➢ Establishes an anchoring bias.
➢Another distributive bargaining tactic is revealing
a deadline.

14-
18
LO 4
Integrative Bargaining
➢Why don’t we see more integrative bargaining in
organizations?
➢ The answer lies in the conditions necessary for this
type of negotiation to succeed.
➢Parties who are open with information and
candid about their concerns.
➢A sensitivity by both parties to the other’s needs.
➢The ability to trust one another.
➢A willingness by both parties to maintain
flexibility.
➢ These conditions seldom exist in organizations. 14-
19
LO 4
Contrast Distributive
and Integrative Bargaining
➢Compromise might be your worst enemy in
negotiating a win-win agreement.
➢ The reason is that compromising reduces the
pressure to bargain integratively.

14-
20
LO 5
Apply the Five Steps
of the Negotiation Process

14-
21
LO 6
Show How Individual
Differences Influence Negotiations
➢Personality Traits in Negotiation
➢ Can you predict an opponent’s negotiating tactics
if you know something about his/her personality?
➢The evidence says “sort of.”
➢Moods/Emotions in Negotiation
➢ Influence negotiation, but the way they do
appears to depend on the type of negotiation.

14-
22
LO 6
Culture in Negotiations
➢ Do people from different cultures negotiate
differently? Yes, they do.
➢ People generally negotiate more effectively within
cultures than between them.
➢ In cross-cultural negotiations, it is especially
important that the negotiators be high in openness.
➢ Negotiators need to be especially aware of the
emotional dynamics in cross-cultural negotiation.
14-
23
LO 6
Gender Differences in Negotiations
➢Women are more cooperative and pleasant, in
negotiations than are men.
➢Men place higher value on status, power and
recognition.
➢Women are more relationship-oriented in
negotiations than are men
➢Men tend to value economic outcomes more than
women.
➢Women tend to behave in less-assertive, less self-
interested and more accommodating manner.
➢Women are more reluctant to initiate negotiations,
they ask for less, are more willing to accept the 14-
offer, and make more generous offers. 24
LO 7
Assess the Roles and Functions
of Third-party Negotiations
➢When individuals or group representatives reach a
stalemate and are unable to resolve their
differences through direct negotiations, they may
turn to a third party.
➢ A mediator
➢ An arbitrator
➢ A conciliator

14-
25
Mediator
➢ Using reasoning and persuasion, suggesting alternatives.
➢ Conflict intensity should not be too high
➢ Both the parties must be motivated to bargain and
resolve the conflict
➢ Mediator must be perceived as neutral and non-coercive

Arbitrator
➢ With the authority to dictate an agreement
➢ Can be voluntary or compulsory(by law or contract)
➢ Always results in a settlement

Conciliator
➢ Informal communication link
➢ Also engage in fact-finding, interpret messages and
persuade disputants to develop agreements
Implications for Managers

14-
27
 Implications for Managers
➢Choose an authoritarian management style in
emergencies, when unpopular actions need to be
implemented, and when the issue is vital to the
organization’s welfare. Be certain to communicate your
logic when possible to make certain employees remain
engaged and productive.
➢Seek integrative solutions when your objective is to
learn, when you want to merge insights from people
with different perspectives, when you need to gain
commitment by incorporating concerns into a
consensus, and when you need to work through feelings
that have interfered with a relationship.
14-
28
 Implications for Managers
➢Avoid an issue when it is trivial or symptomatic of other
issues, when more important issues are pressing, when you
perceive no chance of satisfying everyone’s concerns, when
people need to cool down and regain perspective, when
gathering information, and when others can resolve the
conflict more effectively.
➢Build trust by accommodating others when you find you’re
wrong, when you need to demonstrate reasonableness, when
other positions need to be heard, when issues are more
important to others than to yourself, when you want to
satisfy others and maintain cooperation, when you can build
social credits for later issues, to minimize loss when you are
outmatched and losing, and when employees should learn
from their own mistakes. 14-
29
 Implications for Managers
➢Consider compromising when goals are important but not
worth potential disruption, when opponents with equal
power are committed to mutually exclusive goals, and when
you need temporary settlements to complex issues.
➢Distributive bargaining can resolve disputes, but it often
reduces the satisfaction of one or more negotiators because it
is confrontational and focused on the short term. Integrative
bargaining, in contrast, tends to provide outcomes that satisfy
all parties and build lasting relationships.
➢Make sure you set aggressive negotiating goals and try to find
creative ways to achieve the objectives of both parties,
especially when you value the long-term relationship with the
other party. That doesn’t mean sacrificing your self-interest;
rather, it means trying to find creative solutions that give both
parties what they really want.
14-
30