Week-15: Conflict and Negotiations

What is 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.
  • This definition is broad and flexible

 

Transitions in Conflict Thought

 

  • The traditional view
  • All conflict is harmful and must be avoided
  • The human relations view
  • Conflict is natural and inevitable in any group –accept it
  • The interactionist view
  • It is a positive force and absolutely necessary for a group to perform effectively

 

Functional vs. Dysfunctional Conflict

 

  • Functional = supports the goals of the group and improves its performance
  • Dysfunctional = hinders group performance
  • Task conflict = occur over content and goals of the group
  • Relationship conflict = interpersonal relationships
  • Process conflict = how work gets done

 

The conflict process

 

§         Stage 1: Potential opposition or incompatibility (communication, structure, personal variables)

§         Stage 2: Cognition & Personalization (perceived conflict, felt conflict)

§         Stage 3: Intentions (competing, collaborating, avoiding, accommodating, compromising)

§         Stage 4: Behavior (Party “A’s” behavior & Party “B’s reaction)

§         Stage 5: Outcomes (increased or decreased group performance)

 

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

 

Bargaining strategies

  • Distributive bargaining (resources are FIXED – a “win – lose” situation)
  • Integrative bargaining (one or more settlements that can create a “win-win situation)

 

The Negotiation Process

 

  • Preparation and planning
    • BATNA (Best Alternatives To a Negotiated Agreement)
  • Definition of ground rules
  • Clarification and justification
  • Bargaining and problem solving
  • Closure and implementation

 

 

Issues in Negotiation

 

  • Personality Traits
  • Gender Differences
  • Cultural Differences
  • Third-Party Negotiations

Mediators

Arbitrators

Conciliators

Consultants

 

Summary and Implications for Managers

 

n     Conflict can be either constructive or destructive to the functioning of a group.

n     An optimal level of conflict:

–     prevents stagnation

–     stimulates creativity

–     releases tension

–     and initiates the seeds for change

n     Inadequate or excessive levels of conflict can hinder group effectiveness.

n     Don’t assume there's one conflict-handling intention that is always best.

–     Use competition when quick, decisive action is vital

–     Use collaboration to find an integrative solution

–     Use avoidance when an issue is trivial

–     Use accommodation when you find you’re wrong

–     Use compromise when goals are important

n     Negotiation is an ongoing activity in groups

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