© 2008The McGraw-Hill Companies, Inc. All rights reserved.

ChapterChapter 13 13

Managing Conflict and Negotiating

Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Ch. 13 Learning Objectives

1. Define the term conflict, and put the three metaphors of conflict into proper perspective for the workplace.

2. Distinguish between functional and dysfunctional conflict, and discuss why people avoid conflict

3. List six antecedents of conflict, and identify the desired outcomes of conflict.

4. Define personality conflicts, and explain how managers should handle them.

5. Discuss the role of in-group thinking in intergroup conflict, and explain what management can do about intergroup conflict 13-2

Ch. 13 Learning Objectives

6. Discuss what can be done about cross-cultural conflict.

7. Explain how managers can stimulate functional conflict, and identify the five conflict-handling styles.

8. Explain the nature and practical significance of conflict triangles and alternative dispute resolution for third-party conflict intervention.

9. Explain the difference between distributive and integrative negotiation, and discuss the concept of added-value negotiation. 13-3

ConflictConflict One party perceives its interests are being opposed or set back by another party

Is conflict always bad?During a conflict, if someone used the term “war” vs. “opportunity”, how would it make you feel?

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The Relationship between Conflict Intensity and Outcomes

Low ModerateIntensity

High

Too littleconflict

Appropriateconflict

Too muchconflictNegative

Neutral

Positive

Ou

tcom

es

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Functional vs. Dysfunctional Conflict

Functional Conflict serves organization’s interestsTypically issue-focusedStimulates creativity

Dysfunctional Conflict

threatens organization’s interestsTypically person-focusedBreeds hostilityStifles communication

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Causes of Conflicts

Incompatible personalities or value systemsRole ambiguity/ overloadInterdependent tasksCompetition for limited resources

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Desired Conflict Outcomes

1) Agreement: strive for equitable and fair agreements that last

2) Stronger Relationships: build bridges of goodwill and trust for the future

3) Learning: greater self-awareness and creative problem solving

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How to Deal with Personality Conflicts

Dirk and Linda are working closely together on a project. However, they have very different personalities and working styles. For example, Dirk prefers to create plans and checklists and Linda has a more free-flowing approach to work.Linda is now so frustrated she is concerned the project will not get completed.What type of conflict is this?What should she do?

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Tips for Employees Having a Personality Conflict

All employees need to be familiar with and follow company policies for diversity, anti-discrimination, and sexual harassmentCommunicate directly with the other person to resolve the perceived conflictAvoid dragging co-workers into the conflictIf dysfunctional conflict persists, seek help from direct supervisors or human resource specialists

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How to Deal with Personality Conflicts

Chris works with Dirk on another project. Dirk approaches Chris and begins to complain about Linda.What type of conflict is this?As a third-party, what should he do?

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Tips for Third-Party Observersof a Personality Conflict

All employees need to be familiar with and follow company policies for diversity, anti-discrimination, and sexual harassmentDo not take sides in someone else’s personality conflictSuggest the parties work things out themselves in a constructive and positive wayIf dysfunctional conflict persists, refer the problem to parties’ direct supervisors 13-12

How to Deal with Personality Conflicts

Sarah, Dirk and Linda’s boss, has just been informed that the completion of the project is in jeopardy due to conflict between Dirk and Linda. Linda is now so frustrated she is concerned the project will not get completed.As their manager, what should she do?

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Tips for Managers Whose Employees are Having a Personality Conflict

All employees need to be familiar with and follow company policies for diversity, anti-discrimination, and sexual harassmentInvestigate and document conflictIf appropriate, take corrective actionIf necessary, attempt informal dispute resolutionRefer difficult conflict to human resource specialists or hired counselors for formal resolution attempts and other interventions13-14

Minimizing Intergroup Conflict

• Conflict within the group is high• There are negative interactions between groups • Influential third-party gossip about other group is negative

• Work to eliminate specific negative interactions between groups • Conduct team building to reduce intragroup conflict and prepare employees for cross-functional teamwork• Encourage personal friendships and good working relationships across groups and departments• Foster positive attitudes toward members of other groups • Avoid or neutralize negative gossip across groups or departments

Recommended actions:Level of perceivedintergroup conflict

tendsto increase when:

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Ways to Build Cross-Cultural Relationships

8Nurture others (develop and mentor)

7Avoid conflict by emphasizing harmony

6Be compassionate and understanding

5Build rapport through conversations

4Compromise rather than dominate

3Advocate inclusive (participative) leadership

2Be cooperative rather than overly competitive

2Be sensitive to the needs of others

1Be a good listener

RankBehavior

Tie

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Test Your KnowledgeThe manufacturing and research departments of XYZ corporation often have different perspectives resulting in conflict. Within group cohesiveness is strong but animosity across the groups is growing. To promote harmony and functional conflict between the groups the company should NOT:a. Keep the groups apart to minimize interaction and

conflict.b. Establish cross-functional project teams so

members of both groups work together.c. Stop people who gossip about the other group.d. Have the groups attend a social function together.

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Stimulating Functional Conflict

• Devil’s Advocacy Approach1) Action proposed2) Devil’s advocate criticizes it3) Both sides presented to

decision makers4) Decision is made and monitored

Dialectic Decision Method1) Action proposed2) Assumptions identified3) Counterproposal generated on

different assumptions4) Debate takes place5) Decision is made and monitored 13-18

Five Conflict-Handling Styles

Integrating Obliging

Dominating Avoiding

Compromising

High Low

High

Low

Con

cern

for

Oth

ers

Concern for Self 13-19

Test Your Knowledge

Alfonso tends to be an agreeable person with a high need for affiliation. When he encounters conflict situations at work which conflict management style is he most and least likely to use, respectively.

a. Dominating; Integratingb. Integrating; Compromisingc. Compromising; Avoidingd. Obliging; Dominatinge. Avoiding; Obliging

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Third-Party Intervention Options for Handling Conflict

1) Reroute complaints by coaching the sender to find ways to constructively bring up the matter with the receiver. Do not carry messages for the sender

2) Facilitate a meeting with the sender and receiver to coach them to speak directly and constructively with each other

3) Transmit verbatim messages with the sender’s name included and coach the receiver on constructive ways to discuss the message with the sender

These options are considered less political; low risk of dysfunctional conflict

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Third-Party Intervention Options for Handling Conflict

4) Carry the message verbatim but protect the sender’s name

5) Soften the message to protect the sender6) Add your spin to the message to protect the sender7) Do nothing. The participants will triangle in

someone else8) Do nothing and spread the gossip. You will triangle

in others

These options are considered more political; high risk of dysfunctional conflict

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Alternative Dispute Resolution (ADR)Techniques

Alternative Dispute Resolution (ADR) avoiding costly lawsuits by resolving conflicts informally or through mediation or arbitration

Mediation•Neutral third party

guides parties to make a mutually acceptable solution

Arbitration•Parties agree to

accept the decision of the neutral arbitrator 13-23

NegotiationNegotiation give-and-take process between conflicting interdependent partiesDistributive negotiation: Single issue; fixed-pie; win-lose.Integrative negotiation: More than one issue; “broadening the pie”;win-win.

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An Integrative NegotiationSteps

1. Clarify Interests

2. Identify options

3. Design alternative deal packages

4. Select a Deal

5. Perfect the deal

Jointly

1. Discuss respective needs

2. Discuss respective elements of value

3. Exchange deal packages

4. Discuss and select from feasible deal packages – be creative

5. Discuss unresolved issues; build relationships for future negotiations; put in writing

Separately

1. Identify tangible and intangible needs

2. Identify elements of value

3. Mix and match elements of value into different deals

4. Analyze deal packages proposed

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Questionable/Unethical Tactics in Negotiation

LiesExaggerated praiseDeceptionWeakening the opponentStrengthening one’s own positionNondisclosureInformation exploitationChange of mindDistractionMaximization 13-26

Test Your Knowledge

Before entering a negotiation with a client over the price of his company’s service, Ben thinks about the client’s interests and his company’s interests. He then brainstorms several options that would satisfy both needs. The approach Ben is taking represents:

a. Integrative negotiation

b. Distributive negotiation

c. “I win, you lose” negotiation

d. Compromise negotiation 13-27

© 2008The McGraw-Hill Companies, Inc. All rights reserved.

ChapterChapter 13 13

Managing Conflict and Negotiating

Supplemental Slides

Avoiding Negotiation

Source: Spolsky, J., Why I Never Let Employees Negotiate Pay Raises, Inc., Vol. 29, April 2009 13-29

Avoiding Negotiation

Source: Spolsky, J., Why I Never Let Employees Negotiate Pay Raises, Inc., Vol. 29, April 2009 13-30

Avoiding Negotiation

Source: Spolsky, J., Why I Never Let Employees Negotiate Pay Raises, Inc., Vol. 29, April 2009 13-31

Personality Conflict/Incivility

Source: Porath, C. & Pearson, C. (2009). How Toxic Colleagues Corrode Performance, Harvard Business Review, Vol. 87, pg. 24.

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Personality Conflict/Incivility

Source: Porath, C. & Pearson, C. (2009). How Toxic Colleagues Corrode Performance, Harvard Business Review, Vol. 87, pg. 24.

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Personality Conflict/Incivility

Source: Porath, C. & Pearson, C. (2009). How Toxic Colleagues Corrode Performance, Harvard Business Review, Vol. 87, pg. 24.

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Video Cases

Toxic Coworkers

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Management in the MoviesJaws – “The Town Meeting”

In this scene, the Mayor is leading a town meeting with Chief Brody and the merchants.Questions• How is the conflict of closing the beach handled?• Which conflict management strategy does Chief

Brody use?• Which strategy does the mayor use?

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Getting Your Slice

Sell YourselfDo your homeworkAct nowGrab a bonusGo for a promotionTake the consolation prize

For more go to Negotiation Tips by Wren Withers at negotiateyoursalary.com

Source: Fackelmann, K. Arguing hurts the heart in more ways than one, USA Today, 3/6/07 p. 10D13-37

Arguing Hurts the Heart

Couples who make nasty or controlling remarks are at risk of developing heart diseaseResearchers discovered:• Hostile wives had double the level of

clogged arteries as those who discussed matters in less hostile ways – even worse with hostile husbands

• Husbands who made domineering statements or whose wife did had arteries 1.5 times more clogged than husbands who were not in controlling relationships

Source: Fackelmann, K. Arguing hurts the heart in more ways than one, USA Today, 3/6/07 p. 10D13-38

Manager’s Hot Seat Video: Partnership: The Unbalancing Act

1. Jonas and Rande are facing a difficult situation. What sources of conflict contributed to the problems they are having?

1. What is the key problem?A. Time managementB. CommunicationC. Overlapping tasks

2. Jonas’ behavior indicates:A. DisinterestB. Burn-outC. Distraction

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1. Which type of conflict is depicted in this scenario?

2. Evaluate Rande’s approach to resolving this conflict. What conflict management style did she use?

3. How was this meeting?A. A successB. A good startC. A failure

Partnership: The Unbalancing Act (cont.)

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Costs of Dysfunctional Conflict

Fortune 500 senior executives spend 20 percent of their time in litigation activities.Typical managers spend up to 30 percent of their time dealing with conflict.The turnover costs for an employee are anywhere from between 75 percent and 150 percent of their annual salary.16 percent of employees report conflict with a supervisor as the main reason for leaving their last job.

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Why Conflict Matters

“The best insurance against crossing the ethical divide is a roomful of skeptics.”“CEOs must actively encourage dissent among senior managers by creating decision-making processes, reporting relationships, and incentives that encourage opposing viewpoints…”“By advocating dissent, top executives can create a climate where wrongdoing will not go unchallenged.”

Source: The crisis in corporate governance, 5/6/2002, BusinessWeek Special Report)13-42

The Columbia Shuttle Disaster

Investigator: As a manager, how do you seek out dissenting opinions?MMT Chair: Well, when I hear about them.Investigator: By their very nature you may not hear about them.MMT Chair: Well, when somebody comes forward and tells me about them.Investigator: But, what techniques do you use to get them?Apparently, the MMT Chair did not have an answer to this question.

SOURCE: Langewiesche, Atlantic Monthly, November 2003, pg. 8213-43

Columbia Shuttle Disaster

Engineer Rodney Rocha:• “I couldn’t do it [speak up more forcefully]… I’m

too low down… and she’s [Ham] way up here.”

Former shuttle astronaut Jim Bagian:• “At senior levels, during the 1990s, dissent was

not tolerated, and therefore, people learned if you wanted to survive in the organization, you had to keep your mouth shut.”

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Salary Negotiation Tips for Managers

Establish what the position is worth the companyChoose whether to disclose the salary rangeCommunicate when negotiation is overFind creative ways to sweeten the employment packageExplain the costs of company’s concessionsBe aware of the balance of power 13-45

Defending Your Life Movie Clip

Did Al Brooks have an effective plan upon entering the negotiation?What factors contributed to his actual negotiation performance?

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The Wisdom of Dumb Questions

Dumb questions lead to smart decisionsDumb questions require courage, if they didn’t they wouldn’t be worth asking.Why are people reluctant to ask dumb questions?

Taken from Fortune, June 27th 2005 pg. 157

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Conflict at Its Worst

Workplace bullying•Repeated nonphysical, health-impairing psychological mistreatment that falls outside discriminatory harassment

•Affects turnover, productivity and potential for litigation

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Conflict at Its Worst

How to deal with a bully•Have a supervisor at least two levels above the targeted boss clamp down on the bully by•Stating the behavior will not be tolerated, he/she will be monitored, he/she will be fired if behavior continues

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Conflict Management Tips

Speak your mind and heartListen wellExpress strong feelings appropriatelyRemain rational for as long as you canReview what has been saidLearn to give and takeAvoid all harmful statements

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The Wisdom of Dumb Questions

How to ask dumb questions…..•Don’t apologize beforehand•Don’t say this is a dumb question but….

•Simply state the questions confidently

•Don’t be intimidated by the stunned silence that follows…. Wait it out.

Taken from Fortune, June 27th 2005 pg. 15713-51

Best Leadership/Career Advancement Behaviors

Perspective takingCreating solutionsExpressing emotionsReaching out

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Worst Leadership/Career Advancement Behaviors

AvoidanceWinning at all costsDisplaying angerDemeaning othersRetaliating

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Driving Each Other Crazy in the Workplace

Messing up the break roomSabotaging restroomsInaccessibilityNot returning phone calls, voice mail, emailHabitually interruptingSetting impossible deadlinesReprimanding others in public

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Conclusion

Questions for discussion

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