Conflict and Negotiation

Chapter 13
Presented by:

RICARDO VILORIA and JUSTIN TRINIDAD

PERMANA - GOA

CONFLICT AND NEGOTIATION

Chapter 13 Presented by: RICARDO P. VILORIA JUSTIN TRINIDAD

Conflict
Conflict is defined as any situation in which incompatible goals, attitudes, emotions, or behaviors lead to disagreement or opposition between two or more parties. The marketplace, with its increasing competition and globalization, magnifies differences among people in terms of personality, values, attitudes, perceptions, languages, cultures, and national backgrounds face greater potential for conflict. Therefore, an organization whose workforce consists of multiple ethnicities and cultures hold potential for many types of conflict because of the sheer volume of individual differences among workers. The key to managing conflict in a multicultural workforce is understanding cultural differences and appreciating their values. Nowadays, conflict management skills are a major predictor of managerial success because estimates show that managers spend about 21 percent of their time dealing with conflict. Not all conflict is bad. Some types of conflict encourage new solutions to problem and enhance creativity in the organization. The key to conflict management is to stimulate functional conflict and prevent or resolved dysfunctional conflict. The difficulty, however, is distinguishing between dysfunctional and functional conflict.

FUNCTIONAL CONFLICT is a healthy, constructive disagreement between two or more people. It can produce new ideas, learning and growth among individuals. When individuals engage in constructive conflict, they develop a better awareness of themselves and others. In addition, functional conflict can improve working relationships, thus, it can lead to innovation and positive change for the organization. Because it tends to encourage creativity among individuals, this positive form of conflict can translate into increased productivity.

DYSFUNCTIONAL CONFLICT is an unhealthy, destructive disagreement between two or more people. Its danger is that it takes the focus away from the work to be done and places the focus on the conflict itself and the parties involved. Excessive conflict drains energy that could be used more productively. A key to recognizing a dysfunctional conflict is that its origin is often emotional or behavioral.

It is easy to make mistakes in diagnosing conflicts. Sometimes task conflict, which is functional, can be misattributed as being personal, and dysfunctional conflict can follow. Developing trust within the work group can keep this misattribution from occurring.

Consequences of Conflicts
POSITIVE CONSEQUENCES Leads to new ideas Stimulates creativity Motivates change Promotes organizational vitality Helps individuals and groups establish identities Serves as a safety valve to indicate problems

NEGATIVE CONSEQUENCES Diverts energy from work Threatens psychological well-being Wastes resources Creates a negative climate Break down group cohesion Can increase hostility and aggressive behaviors

Causes of Conflict in Organizations

Causes of conflict can be classified into two broad categories: structural factors, which stem from the nature of the organization and the way in which work is organized, and personal factors, which arise from differences among individuals. STRUCTURAL FACTORS The causes of conflict related to the organizations structure include specialization, interdependence, common resources, goal differences, authority relationships, status inconsistencies, and jurisdictional ambiguities.

Specialization- when jobs are highly specialized, employees become experts at certain tasks. Interdependence- work that is interdependent requires groups or individuals to depend on one another to accomplish goals. Common resources- this potential is enhanced when the shared resources became scarce. Goal Differences- groups have different and incompatible goals. Authority relationships- a traditional boss-employee relationship is hierarchical in nature with a boss who is superior to the employee.

Status inconsistencies-strong status difference between management and nonmanagement workers. Jurisdictional ambiguities-arises when there is an unclear lines of responsibility within an organization.

PERSONAL FACTORS The causes of conflict that arise from individual differences include skills and abilities, personalities, perceptions, values and ethics, emotions, communication barriers, and cultural differences.

Skills and abilities- arise when workforce is composed of individuals with varying levels of skills and ability. Personalities- arise when individuals do not leave their personalities at the doorstep when they enter the workplace. Perceptions- differences in perception can also lead to conflict. Values and ethics- differences in values and ethics can be sources of disagreement, and heated disagreement is common because of the personal nature of the differences. Emotions- conflict by its nature is an emotional interaction, and the emotions of the parties involved in conflict play a pivotal role in how they perceive the negotiation and respond to one another. Communication barriers- communication barriers such as physical separation and language can create distortions in messages. Cultural differences- these conflicts stem from a lack of understanding of another culture.

Forms of Conflict in Organizations

Interorganizational Conflict- occurs between two or more organizations. Intergroup Conflict occurs between groups or teams or teams in an organization. Intragroup occurs within groups or teams Interpersonal Conflict occurs between two or more individuals. Intrapersonal conflict occurs within an individual. Types of Intrapersonal Conflict

Interrole conflict a persons experience of conflict among the multiple roles in his life.

Intrarole conflict occurs within a single role, such as when a person receives conflicting messages about how to perform a certain role. Person-role conflict occurs when an individual is expected to perform behaviors in a certain role that conflict with his personal values.

Power Networks
According to Mastenbroek, individuals in organizations are organized in three basic types of power networks. Based on these relationships, certain kinds of conflict tend to emerge.

1.

Equal vs. equal- Conflict between two individuals with equal power. Conflict within this type of network can lead to depression, low self-esteem, and other distress symptoms. Interventions like improving coordination between the parties and working toward common interest can help manage these conflicts. High Vs Low- Conflict between individuals where one party has power over the other. Organizations typically respond to these conflicts by tightening the rules. However, the more successful ways of managing these conflicts are to try a different style of leadership, such as a coaching and counselling style, or to change the structure to more decentralized one.

2.

3.

High vs. Middle vs. Low- Conflict between three parties where one has power over the other. This power network illustrates the classic conflicts felt by middle managers. Improved communication among all parties can reduce role conflict and ambiguity.

Knowing the typical kinds of conflicts that arise in various kinds of relationships can help managers diagnose conflicts and devise appropriate ways to manage them.

Defense Mechanisms
Aggressive Mechanisms

Fixation person maintains a nonadjustive reaction even though all the cues indicate the behaviour will not cope with the problem.

Displacement individual redirects pent up emotions toward persons. Ideas or objects other than the primary source of the emotion.

Negativism person uses active or passive resistance, operating unconsciously.

Compromise Mechanisms

Compensation individual devotes himself or herself to a pursuit with increased vigor to make up for some feeling of real or imagined inadequacy. Identification-individual enhances own self esteem by patterning behaviours after anothers. Frequently also internalizing the values and beliefs of the other person. Also vicariously shares the glories or suffering in the disappointments of other individuals or groups. Rationalization-person justifies inconsistent or undesirable behaviour. Beliefs statements and motivations by providing acceptable explanations for them.

Withdrawal Mechanisms

Flight or withdrawal- through either physical or psychological means person leaves the field in frustrations, anxiety or conflict is experienced. Conversion -emotional conflicts are expressed in muscular, sensory or bodily symptoms of disability, malfunctioning or pain. Fantasy person daydreams or uses other forms of imaginative activity to obtain an escape from reality and obtain imagined satisfactions.

Conflict Management Strategies and techniques

Ineffective Techniques

Nonaction doing nothing in hopes that a conflict will disappear. Secrecy attempting to hide a conflict or an issue that has the potential to create conflict. Administrative orbiting -delaying action on a conflict by buying time. Due process nonaction- a procedure sets up to address conflicts that is so costly time consuming or personally risky that no one will use it. Character assassination - an attempt to label or discredit an opponent.

Effective Techniques

Super ordinate goals setting up a goal to two parties where the parties will have to agree and work together and forget they're differences.

Expanding resources resolving conflict by expanding resources if the conflict is/might be scarcity. Changing personnel changing the position or firing an individual if the conflict is being caused by the individual. Changing structure changing the way how the organization runs if the conflict is the structure of the organization. Confronting and negotiating - resolving conflicts by confrontation and negotiation. There are two major negotiating approaches:

1. 2.

Distributive bargaining- a negotiation approach in which the goals of the parties are in conflict, and each party seeks to maximize its resources. Integrative negotiation a negotiation approach that focuses on the merits of the issues and seeks a win-win situation.

Conflict Management Styles

Avoiding a deliberate decision to take no action on a conflict or to stay out of the conflict completely. Accommodating concern about the other partys goals rather than ones own goals. Compromising each party must give up something to reach a solution to the conflict. Competing satisfy own interest and be willing to do so at the other partys expense. Collaborating- merging together with another party to resolve conflicts.

Creating a Conflict-Positive Organization

Four interrelated steps are involved in creating a conflict-positive organization: 1. Value diversity and confront differences- differences should be seen as opportunities for innovation, and diversity should be celebrated. Open and honest confrontations bring out differences, and they are essential for positive conflict.

2.

Seek mutual benefits and unite behind cooperative goals- conflicts have to manage together. Through conflict, individuals learn how much they depend on

one another. Even when employees share goals, they may differ on how to accomplish goals. The important point is that they are moving toward the same objectives.

3.

Empower employees to feel confident and skilful- people must be made to feel that they control their conflicts and that they can deal with their differences productively.

4. Take stock to reward success and learn from mistakes- employees should be encouraged to appreciate one anothers strengths and weaknesses and to talk directly about them. They should celebrate their conflict management successes and work out plans for ways they can improve in the future. Poor conflict management can poison the organization as well as those who work within. Compassionate leaders can help reduce the effects of organizational toxins on their co-workers and how these toxin handlers should be rewarded for this crucial role in maintaining organizational health. Do not overlook the importance of high emotional intelligence in the work of a good conflict manager. The ability to influence your own and others emotions is not just a practical tool, but it can also serve as an important tactical asset, making you a better negotiator in a variety of situations and helping reduce conflict and increase productivity in your organization.