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14
Conflict
and
Negotiation

Copyright © 2017 Pearson Education, Inc.


Learning Objectives
 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.
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LO 1 Three Types of Conflict and
Three Loci of 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.

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LO 1 Three Types of Conflict and
Three Loci of Conflict
Contemporary perspectives differentiate types
of conflict based on their effects.
 Functional conflict supports the goals of
the group and improves its performance.
 Conflicts that hinder group performance are
dysfunctional or destructive forms of
conflict.

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LO 1 Three Types of Conflict and
Three Loci of Conflict

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LO 1 Three Types of Conflict and
Three Loci of Conflict
Types of Conflict
 Researchers have classified conflicts into
three categories:
Task conflict relates to the content and
goals of the work.
Relationship conflict focuses on
interpersonal relationships.
Process conflict is about how the work
gets done.
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LO 1 Three Types of Conflict and
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.
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LO 2
Outline the Conflict Process

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LO 2

Outline the Conflict Process

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LO 2

Outline the Conflict Process

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Outline the Conflict Process
LO 2

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Outline the Conflict Process
LO 2

Stage V: Outcomes
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.
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Outline the Conflict Process
LO 2

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.
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Outline the Conflict Process
LO 2

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.
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Outline the Conflict Process
LO 2

Differences across countries in conflict


resolution strategies may be based on
collectivistic tendencies and motives.
 Collectivist cultures see people as deeply
embedded in social situations.
 They will avoid direct expression of conflicts,
preferring indirect methods for resolving
differences of opinion.

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LO 3 Contrast Distributive
and Integrative Bargaining
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.

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LO 3 Contrast Distributive
and Integrative Bargaining

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LO 3 Contrast Distributive
and Integrative Bargaining

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LO 3 Contrast Distributive
and Integrative Bargaining
Research shows that when you’re engaged
in distributive bargaining, one of the best
things you can do is make the first offer, and
make it an aggressive one.
 Shows power.
 Establishes an anchoring bias.
Another distributive bargaining tactic is
revealing a deadline.

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LO 3 Contrast Distributive
and Integrative Bargaining
Why don’t we see more integrative bargaining in
organizations?
Need the right conditions:
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
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LO 3 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.

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LO 4 Apply the Five Steps
of the Negotiation Process

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LO 5 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.
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LO 5 How Individual Differences
Influence Negotiations
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.
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LO 5 How Individual Differences
Influence Negotiations
Gender Differences in Negotiations
 Men and women negotiate differently and
these differences affect outcomes.
There is some merit to the popular
stereotype that women are more
cooperative, pleasant, and relationship-
oriented in negotiations than are men.
 These gender differences can be lessened at
both the organizational and individual level.
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LO 5 How Individual Differences
Influence Negotiations

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LO 6 Roles and Function of
Third-party Negotiations
Negotiating in a social context:
Reputation: the way other people think and
talk about you.
Develop a trustworthy reputation –
competence and integrity.
Relationships: think about what’s best for the
other party and the relationship as a whole.
Repeated negotiations built on trust provide
more options.
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LO 6 Roles and Function 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

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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.

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Implications for Managers
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.

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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.
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