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Module Ten

Negotiations and Conflict Management

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The last time you experienced conflict:

• What was it about?• What was the attitude of the other party? And your

attitude?• How did it end?• What’s your philosophy about conflict?

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Origins of conflict

• Where does conflict originate?• Different worldviews

– When the fundamental building blocks of a person’s worldview are under attack, the person becomes very defensive.

– This explains why intergroup conflict happens so easily: membership in a group shapes a person’s worldview.

• Power struggles about real interests

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Is conflict always ineffective or bad?

• Substantive conflict is productive and constructive

• Socio-emotional conflict can be dangerous and costly

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Intergroup Behavior:Organizational Context (i.e. Strategy, Business Situation, Structure,

Rules and Procedures Culture, Decision Making Processes,…)

Nature of the Task

Basis for the Interaction Between the Teams

TEAM AValuesNormsRolesSub groupingStatus SystemGoalsCohesivenessSize

TEAM BValuesNormsRolesSub groupingStatus SystemGoalsCohesivenessSize

IntergroupWork Processes,

Behaviorand

Dynamics

Intergroup Performance

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Views of Conflict

• Traditional view

(avoid conflict)

• Human relations view

(conflict is natural and inevitable and is a positive force)

• System view

(conflict is not only inevitable but also absolutely necessary for a team to perform effectively) *

* Conflict is discussed in the A. C. Amason, K. R. Thompson, W. A. Hochwater, and A. W. Harrison, “Conflict: An Important Dimension in Successful Management Teams,” Organization Dynamics, Autumn 1995, pp. 20-35; A. C. Amason, “Distinguishing the Effects of Functinal and Dysfunctional Conflict on Strategic Decision Making: Resolving a Paradox for Top Management Teams, “ Academy of Management Journal, February 1996, pp. 123-48; K. A. Jehn, “A Qualitative Analysis of Conflict Types and Dimensions in Organizational Groups,” Administrative Science Quarterly 42, (1997), pp. 530-57.

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Human Systems, Conflict and Negotiations

• Social systems evolve through conflict and negotiations.• Conflict plays an important role in human development.• Conflict occurs at many levels: Within individual;

between individuals; within teams; between teams; between units; between organizations; between nations; between societies,…

• In the context of this course we focus on conflict and negotiation at work: between individuals, within and between teams.

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Categories of Intergroup Conflict

• Vertical conflict

• Horizontal conflict

• Line-staff conflict

• Diversity-based conflict

* Source: D. Hellrigel, J. W. Slocum Jr., and R. W. Woodman, Organizational Behavior, (Cincinnati, OH: South-Western College Publishing, 1998).

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Strategies for Overcoming conflict

• Introducing a common enemy (e.g. WWII, Vietnam war, 9/11, natural catastrophes)

• Superordinate goals (e.g. Kennedy’s New Frontiers’ speech)

• Expansion of one’s awareness and circle of identification

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Two Dimensional Model of Ways to Handle ConflictA

sser

tive

nes

s

High

Low

Low HighCooperativeness

Competing Collaborating

Compromising

Avoiding Accommodating

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Appropriate Situations For Five Strategic Intentions

Conflict-Handling Modes

Appropriate Situations

Competing

Compromising

Accommodating

Collaborating

Avoiding

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Appropriate Situations For Five Strategic IntentionsConflict-Handling Modes

Appropriate Situations

Competing

Collaborating

Compromising

1. When quick, decisive action is vital (e.g., emergencies).2. On important issues where unpopular actions need implementing

(e.g., cost cutting, enforcing unpopular rules, discipline).3. On issues vital to company welfare when you know you’re right.4. Against people who take advantage of noncompetitive behavior.

1. To find an integrative solution when both sets of concerns are too important to be compromised.

2. When your objective is to learn.3. To merge insights from people with different perspectives.4. To gain commitment by incorporating concerns into a consensus.5. To work through feelings which have interfered with a relationship.

1. When goals are important, but not worth the effort or potential disruption of more assertive modes.

2. When opponents with equal power are committed to mutually exclusive goals.

3. To achieve temporary settlements to complex issues.4. To arrive at expedient solutions under time pressure.5. As a backup when collaboration or competition is unsuccessful.

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Appropriate Situations For Five Strategic Intentions

Conflict-Handling Modes

Appropriate Situations

Avoiding

Accommodating

1. When an issue is trivial, or more important issues are pressing.2. When you perceive no chance of satisfying your concerns.3. When potential disruption outweighs the benefits of resolution.4. To let people cool down and regain perspective.5. When gathering information supersedes immediate decision.6. When others can resolve the conflict more effectively.7. When issues seem tangential or symptomatic of other issues.

1. When you find you are wrong to allow a better position to be heard, to learn, and to show your reasonableness.

2. When issues are more important to others than yourself - to satisfy others and maintain cooperation.

3. To build social credits for later issues.4. To minimize loss when you are outmatched and losing.5. When harmony and stability are especially important.6. To allow subordinates to develop by learning from mistakes.

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NEGOTIATIONS

• In a situation where there is both conflict and interdependence, the process used to deal with conflict is negotiation.

• At the most basic level, both conflict and interdependence are necessary for negotiation to take place.

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Overcoming conflict: negotiation

• Distributive vs. integrative negotiation• Importance of preparation• Reservation point• BATNA (Best Alternative to a Negotiated Agreement)• Identifying the different dimensions of the negotiation • Bundling equally acceptable offers• For distributive negotiations, anchoring the initial offer • Offering face-saving solutions acceptable to the other

party’s constituents

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TWO TYPES OF NEGOTIATIONS (1)

• Distributed negotiation or Win-Lose bargaining.

INSERT 2x2 TABLE TOP OF PAGE 178 IN the 8th edition.

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TWO TYPES OF NEGOTIATIONS (2)

Integrative negotiation – or win-win bargaining. Both parties seek a solution that meets or maximizes both of their interest.

INSERT 2x2 TABLE BOTTOM OF PAGE 178 IN the 8th edition.

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International Negotiations

• The Case of China – Marketplace Bargaining– Do not show great interest in the things you would like

to buy and always try to find some defects; – Try to cut the original sale price by at least 50%, or

sometimes, even 70%– Pretend to leave if the seller cannot accept your price,

what to do if you are aware of two buyers.• The Case of South Korea

– Avoid lengthy contracts – it’s about the relationship.– Business cards– Patience in negotiating– “Getting to know you” – asking “inappropriate q’s”

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Additional Negotiation Reads

• Investigative Negotiation- Malhotra & Bazerman• Six Habits of Merely Effective Negotiators - Sebenius• Getting Past Yes: Negotiating as if Implementation

mattered – Ertel

• All three are Harvard Business Review articles

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Ugli Orange: Key to Role Play Success

• Role plays can be anxiety-provoking• Get into the role as much as possible• You can be cool and still role-play

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Ugli Orange Role Play

• Each of you is assigned the role of one researcher• You will have six minutes to read about your role and

then 10 minutes to negotiate with your partner and then get back to class KEY: Each partner writes down details of

agreement if you were able to come to one…

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Big Winners of Ugli Orange

• P.W. Roland needs Ugli orange rinds (the covers/peels)• J.W. Jones needs Ugli orange juice

They can both win

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Debrief: Ugli Orange

1. When you went into the negotiation, did you assume that only one of you could win?

2. Prior to meeting your negotiating partner, did you perceive that you could trust him/her? Did you or your partner try to build trust during the negotiation?

3. How did you approach the negotiation? To win while the other team loses? To compromise? Yield?

4. Was it easy to work with your negotiating partner (fellow researcher)?

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More on Debrief…

5. Are you satisfied with the final outcome of your negotiation?

6. How consistent was your Ugli approach with your dominant conflict handling style? Where do you think your conflict handling style originates (experiences, family influences)?

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Key Learning Points: Ugli Orange

1. Important to think about role of trust and whether both of you can win on your approach to the negotiation.

a. If you think you can’t trust the other person OR that only one of you can win, you are:

more likely to use the forcing and accommodating styles. less likely to use the problem solving style. More likely to have distributive outcomes (one gets more or

less) 2. Collaborating (problem-solving) and compromise are more

effective than competing (forcing)