Organizational Behaviour Concepts Controversies Applications Canadian 7th Edition Langton Solutions Manual

Organizational Behaviour Concepts
Controversies Applications Canadian

7th Edition Langton Solutions Manual
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-concepts-controversies-applications-canadian-7th-edition-langton-solutions-manual/
Chapter 9: Conflict and Negotiation 9-271
CHAPTER OUTLINE
Conflict Defined
Functional vs. Dysfunctional Conflict
Types of Conflict
Loci of Conflict
Sources of Conflict
Communication
Structure
Personal Variables
Conflict Resolution
Conflict Management Strategies Based on Dual Concern Theory
What Can Individuals Do to Manage Conflict?
Resolving Personality Conflicts
Resolving Intercultural Conflicts
Conflict Outcomes
Negotiation
Bargaining Strategies
Distributive Bargaining
Integrative Bargaining
How to Negotiate
Developing a Strategy
Defining Ground Rules
Clarifying and Justifying
Bargaining and Problem Solving
Attaining Closure and Implementation
Individual Differences in Negotiation Effectiveness
Personality Traits in Negotiation
Moods/Emotions in Negotiation
Gender Differences in Negotiation
Third-Party Negotiations
Mediator
Arbitrator
Conciliator
Global Implications
Conflict Resolution and Culture
Cultural Differences in Negotiating Style
Culture, Negotiations, and Emotions
Summary
OB at Work
LEARNING OUTCOMES
After Studying this chapter, you should be able to:

1. Define conflict.
2. Describe the three types of conflict and the two loci conflict.
3. Identify the conditions that lead to conflict.
Copyright © 2016 Pearson Canada Inc.

4. Contrast distributive and integrative bargaining.

5. Show how individual differences influence negotiations.
6. Assess the roles and functions of third-party negotiations.
CHAPTER SYNOPSIS
This chapter examines conflict. Many people assume that conflict in organizations is destructive
and to be avoided. What researchers and some managers have come to find is that conflict is both
inevitable and necessary to an organization’s success and survival. Conflict exists among and
between individuals as well as groups. The triggers for conflict stem from differences in value
systems, shared resources, the need to work together, and difficulties in communication, among
others. The extent to which conflict is beneficial depends to a large extent to how well it is
managed. The chapter defines conflict, discusses a process model of conflict, and details the
impact of conflict on group behaviour. The chapter points to research which indicates that people
have an underlying disposition (paradigm) to handle conflict in certain predetermined and
predictable ways based on a combination of intellectual and personality characteristics. Examples
of how approaches to resolving conflict vary across cultures and how to create functional conflict
are provided.
The chapter also examines the negotiation process. Negotiation permeates the interactions of
almost everyone in groups and organizations. In today’s team-based organizations, where
members are increasingly finding themselves having to work with colleagues over whom they
have no direct authority and with whom they may not even share a common boss, negotiation
skills become critical. The chapter also looks at gender differences and cultural differences in
negotiating styles.
STUDY QUESTIONS
It is impossible to cover all the material contained in the chapter during one or two lectures. To
deal with this problem, I present my students with a list of study questions to indicate what material
they will be responsible for on exams. I tell them that they will be responsible for these, even if the
material is not covered in class. I have found that this reduces anxiety overall, and I find it helps to
make students aware that not everything in a chapter is required material. I realize instructors vary
in their approach, so this is simply my approach.
My study questions for this chapter are:

 What is conflict?
 What is the difference between functional and dysfunctional conflict?
 What are the sources that lead to conflict?
 What are the conflict-management strategies?
 What can individuals do to manage conflict?
 How can one resolve personality conflicts?
 How can third parties be used in conflict resolution?
 What kinds of outcomes can come from conflict?
 What is negotiation?
 Describe the different bargaining strategies.

 Describe the negotiation process.

 Do men and women negotiate differently?
 Are there cultural differences in negotiation?
SUGGESTED TEACHING PLAN
I devote much of the class to two exercises. The first is the conflict-handling exercise that is in the
text. With this I have students work in groups to identify their styles and then talk about the pros
and cons of their styles.
I then ask them to think about group conflict by posing the following exercise:
Each group is to identify a conflict situation among two group members (real or imaginary),
Prepare a brief presentation that illustrates the problem, and then indicate appropriate ways to
work at resolving the conflict.
A selection of groups will be asked to present their problem and resolution for commentary by
class members. If you think your choice of problem will be especially useful to the class, make
sure you let me know when I ask for volunteers.
In debriefing this second exercise, I ask students to identify things they think will work, and
things that won’t work. I also solicit additional ideas. The class gives students the opportunity
to help each other think about how to handle conflict in their lives. I debrief the exercise, using
concepts from the chapter.
An alternative format would be to open the class with the following exercise:
Lead a discussion on how conflict between the student body and the administration could help
or hurt your institution.
Create functional/dysfunctional lists on the board, and ask students first how conflict could
help the college or university. Record these under “functional.” In the discussion, see if
specific topics or issues are on the students’ minds.
Next, ask how such conflict can harm the institution. Again, record these and solicit specific
issues, and record to whom the costs or “hurts” would apply.
Now discuss what would make such conflict functional or dysfunctional.
 Is it the topic?
 The parties involved?
 The history of the issue?
 Student expectation of administration reaction to conflict?
Finally, discuss:
 Why have students not spoken up on these issues?
 How could functional conflict be started and managed over a specific issue?
 What are the dangers if it got out of hand?
This would allow you to surface many of the ideas covered on conflict.
I find that when I lecture on the topic of negotiation during the remainder of the class, students
seem to be absolutely fascinated by the topic. They seem not to be able to learn enough about
negotiation and how it works. I often provide them examples of negotiations I’ve been involved in
(my book publishing, a summer bonus, even buying my house) so that they can see that there are

a variety of ways of handling negotiation. I spend some time on the concept of BATNA, as it helps
them understand how to determine what they really want. They are also very interested in the
concept of third-party negotiations, how it works, how one gets to become a conciliator or an
arbitrator or mediator.
Be sure to check the Supplemental Material section for additional material that can be used in
class or assigned as homework.
ANNOTATED LECTURE OUTLINE
A. Conflict Defined Notes
 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.
 Conflict has positive sides and negative sides.
Teaching Tip: This is a good point to ask student what they think about
conflict—do they see it as bad or good, and why? Doing so gets them in the spirit
of the lecture, and helps surface their feelings right away.
1. Functional vs. Dysfunctional Conflict
 Functional or constructive conflict: Supports the goals of the group and

improves its performance.
 Dysfunctional or destructive conflict: Hinders group performance.
Teaching Tip: This may be a good point to have the students discuss the
Point/Counterpoint debate.
2. Types of conflict
 Relationship conflict focuses on interpersonal relationship and, at least in

work settings, are almost always dysfunctional.
 Interpersonal hostilities increase personality clashes and decrease mutual
understanding, which hinders the completion of organizational tasks.
 Appears to be the most psychologically exhausting to individuals.
 Task conflict relates to the content and goals of the work. Relationship
between task conflict and performance depends on a number of factors:
 Conflict that includes top management is positively associated with their
performance.
 Conflict lower in the organization is negatively associated with
performance.
 If task and relationship conflict occur together, task conflict is more likely
negative; if task conflict occurs by itself, it is more likely positive.

 Moderate levels of task conflict are optimal; high levels may decrease
team performance.
 Personalities of team members matter in task conflict. Those high in
openness and emotional stability are better able to turn task conflict in to
increased group performance.
 Process conflict is about how the work gets done and revolves around
delegation and roles. Process conflicts may become highly personalized and
quickly devolve into relationship conflicts.
 Arguing about how to do something takes time away from actually doing it
and may impact performance.
Teaching Tip: You might get students to talk about the differences between
these three types of conflicts, and have them give examples of each.
3. Loci of Conflict
 Consider the locus of conflict, or where it occurs.

 Dyadic conflict is conflict between two people. What happens if two team
members do not get along well? And what happens if two other team
members get on really well?
 Intragroup conflict occurs within a group or team.
 Intragroup task conflict influences performance within the team. To have
positive results it is important that the teams have a supportive climate in
which mistakes are not penalized and team members support each other.
 Intergroup conflict occurs between groups of teams.
 Do we care if members from one team support members from another. If
teams are competing, we probably would not. Care.
 Members who are peripheral in their own groups might be better at
resolving conflicts between their group and another.
 Intense intergroup conflict can be quite stressful and might interfere how
they interact.
 High levels of conflict between teams cause individuals to focus on
complying with norms within their own teams.
 Thinking about conflict in terms of type and locus helps us realize that it is
probably inevitable in modern organization that we attempt to make conflict
as productive as possible.
4. Sources of Conflict
 A number of conditions that can give rise to conflict have been identified, and
at least one of these conditions is necessary if conflict is to surface.
 Communication
 Communication conflict can arise from semantic difficulties,
misunderstandings, and “noise” in the communication channels.
 Potential for conflict increases when either too little or too much
communication takes place.

 Structure
 Size, specialization, and composition of the group act as forces to
stimulate conflict.
 Ambiguity in precisely defining where responsibility for actions lies. Such
jurisdictional ambiguity increases intergroup fighting over resources and
territory.
 Reward systems where one member’s gain is at another’s expense. Also,
the performance evaluation process can create conflict.
 Leadership style where managers tightly control the work.
 The diversity of goals among groups.
 If one group is dependent on another.
 Personal Variables
 These include differing personalities, emotions, and values.
 Personality plays a role in the conflict process – some people tend to get
in conflict a lot.
 People high in disagreeableness, neuroticism, or self-monitoring are
prone to be involved in conflict more often, and to react poorly when
conflict occur.
 Emotions can also cause conflict.
B. Conflict Resolution Based on Dual Concern Theory Notes

 Conflict in the workplace can affect the effectiveness of individuals, teams,
and the entire organizations.
 Individual attitudes toward a conflict are important because attitudes can
define the set of possible settlement.
1. Conflict Management Strategies
 Individual attitudes toward a conflict are important, because attitudes define

the set of possible settlements.
 Dual concern theory:
 Cooperativeness: The degree to which one party attempts to satisfy the
other party’s concerns.
 Assertiveness: The degree to which one party attempts to satisfy his or her
own concerns.
 The five conflict-handling strategies:
(See Exhibit 9-1 Conflict-Handling Strategies and Accompanying Behaviours)
 Forcing: Imposing one's will on the other party. Win-lose solution.

 Problem-solving: Trying to reach an agreement that satisfies both one's
own in the other party's aspirations as much as possible. Seeks a win-win
solution.

 Avoiding: Ignoring or minimizing the importance of the issues creating the

conflict.
 Yielding: Accepting and incorporating the will of the other party. Win-lose
solution.
 Compromising: Balancing concern for oneself with concerns for the other
party in order to reach a solution.
Teaching Tip: When I discuss these intentions, I ask students whether they
prefer compromise or collaboration. Many have never considered the idea of
collaboration, and many will also think that compromising is what one “should do,”
i.e., a preferred strategy. So, these strategies provide additional ways to think
about strategies. You might also point out that individuals have a “preferred style”
for dealing with conflict, and even with the best of intentions, they can end of
relying on the preferred strategy, even though that is not a good strategy.
You might also point out that avoiding is perfectly acceptable in some situations,
though it rarely resolves the conflict.
 Choosing a strategy depends on a variety of factors:

 Individuals have an underlying disposition to handle conflict in certain
ways. Some situations call for particular strategies.
(See OB in Action: Choosing Strategies to Deal with Conflicts)
2. What Can Individuals Do to Manage Conflict?
 There are a number of conflict resolution techniques that individuals can use
to try to defuse conflict inside and outside of the workplace:
 Problem solving: Requesting a face-to-face meeting to identify the
problem and resolve it through open discussion.
 Developing overarching goals: Creating a shared goal that requires both
parties to work together, and motivates them to do so.
 Smoothing: Playing down differences while emphasizing common
interests with the other party.
 Compromising: Agreeing with the other party that each will give up
something of value to reach an accord.
 Avoiding: Withdrawing from, or suppressing, the conflict.
 When the conflict is specifically work-related, there are additional techniques
that might be used:
 Expansion of resources. The scarcity of a resource - money, promotion
opportunities, office space - can create conflict. Expansion of the resource
can create a win-win solution.
 Authoritative command. Management can use its formal authority to
resolve the conflict and then communicate its desires to the parties
involved.
 Altering the human variable. Behavioural changed techniques such as
human relations training can alter attitudes and behaviours that cause
conflict.

 Altering the structural variables. The formal organization structure and the
interaction patterns of conflicting parties can be changed through job
redesign, transfers, creation of coordinating positions, and the like.
3. Resolving Personality Conflicts
 A variety of factors can lead to personality conflicts, including the following:

 Misunderstandings based on age, race, or cultural differences.
 Intolerance, prejudice, discrimination, or bigotry.
 Perceived inequalities.
 Misunderstandings, rumours, or falsehoods about an individual or group.
 Blaming for mistakes or mishaps (finger-pointing).
 Personality conflict can result in lowered productivity.
 The ideal solution is for the two people having a conflict to work it out between
themselves, but this does not always happen.
(See OB in Action: Handling Personality Conflicts)
4. Resolving Intercultural Conflicts
 Across cultures, people have different ideas about the appropriateness and
effects of conflict.
 Some personality conflicts may be stimulated by cultural differences;
however, it is important to consider intercultural conflicts as a separate form
of conflict.
 Cultural views on conflict:
 Many Asian cultures believe that conflict almost always has a negative
effect on the work unit.
 Collectivistic cultures value harmony and show preference for avoidance
or compromise.
 North Americans prefer a problem-solving approach because this presents
both parties with a win-win solution.
 Westerners are more comfortable with competition and are more likely to
choose forcing.
 Be aware of cultural differences as using one’s own culture’s conflict
resolution strategies may result in even greater conflict.
C. Conflict Outcomes
Notes
(See Exhibit 9-2 Conflict and Unit Performance)
 The interplay between overt conflict and conflict handling behaviours results
in consequences of two types.
 Functional outcomes: Increased group performance can result from low or
moderate levels of conflict.

 Conflict is constructive when it improves the quality of decisions,

stimulates creativity and innovations, provides the medium through which
problems can be aired and tensions released.
 Dysfunctional outcomes: Decreased group performance.
 More likely to occur from uncontrolled opposition which breeds discontent,
acts to dissolve common ties, and eventually leads to destruction of the
group and to reduced group effectiveness and productivity.
 Desired outcomes for conflict:
 Agreement: Equitable and fair agreement for the best outcome.
 Stronger relationships: Increased trust between parties makes it more
likely that they keep the agreements made.
 Learning: Handling conflict successfully teaches one how to do it better
next time.
 The constructive effects of conflict:
 Conflict can be functional and improve productivity.
 High-conflict groups can improve decision-making ability.
 Personality and level of social support influence person’s response to
conflict.
 Open communication is important to resolving conflict.
 Dysfunctional conflict can reduce group effectiveness by stopping
communication, reducing group cohesiveness and subordinating group goals
due to infighting among members.
D. Negotiation Notes
 A process in which two or more parties exchange goods or services and

attempt to agree upon the exchange rate for them. Negotiation is a
well-developed conflict resolution strategy.
 Within negotiation, individuals have issues, positions, and interests.
 Issues are items that are specifically placed on the bargaining table for
discussion.
 Positions are the individual’s stand on the issue.
 For instance, salary may be an issue for discussion. The salary you
hope to receive is your position.
 Interests are the underlying concerns that are affected by the negotiation
resolution.
 For instance, the reason that you might want a six-figure salary is that
you are trying to buy a house in Vancouver, and that is your only hope
of being able to make mortgage payments.
 Negotiators who understand the underlying issues of themselves and the
other party may be more successful in achieving a resolution.

Teaching Tip: It can be helpful to point out to students that they really should be
aware of their own interests when bargaining, as this will likely lead to better
outcomes. Sometimes when we get stuck in our position, we end up settling for
less than we might have hoped.
1. Bargaining Strategies
(See Exhibit 9-3 Distributive vs. Integrative Bargaining)
 Distributive Bargaining: Negotiation that seeks to divide up a fixed amount of

resources; a win-lose situation.
 Negotiating over who gets what share of a fixed pie (set amount of goods
or services to be divided up).
 Integrative Bargaining: Negotiation that seeks one or more settlements that
can create a win-win solution.
 Parties must be open with information and candid about their concerns.
 Parties must trust each other and be willing to maintain flexibility.
 Compromise reduces the pressure to bargain integratively; and people end
up settling for less than they could have obtained.
2. How to Negotiate
(See Exhibit 9-4 The Negotiation Process)
 Developing a Strategy
 Analyze all aspects of the nature of the conflict and who/what is involved.
 Assess personal goals, consider other’s goals, develop strategy
 Identify BATNA – Best Alternative to a Negotiated Agreement.
(See Exhibit 9-5 Staking Out the Bargaining Zone)
 Identify target and resistance points:
 Target point: what one would like to achieve
 Resistance point: lowest outcome acceptable
 Defining Ground Rules
 Who will do the negotiating? Where will it take place? Are there any time
constraints? To what issues will negotiation be limited? What is the
procedure if parties end up in an impasse?
 Clarification and Justification
 When initial positions have been exchanged, both parties explain, amplify,
clarify, bolster, and justify their original demands.
 Bargaining and Problem Solving
 The essence of the negotiation process is the actual give and take in trying
to reach an agreement. It is here where concessions are usually made by
both parties.
(See OB in Action: Tips for Getting to Yes)

 Attaining Closure and Implementation

 The final step in the negotiation process is formalizing the agreement that
has been worked out and developing procedures that are necessary for
implementation and monitoring.
Teaching Tip: Try to illustrate BATNA with an example. For instance, Students’
car has broken down and they are leaving for a cross-country trip in six weeks.
They can buy a new car, but the car they really want is being offered at a higher
price than they might like. What are their alternatives in this situation?
Further tips for negotiation can be found in From Concepts to Skills section at the
end of the chapter.
You can also have students practice a negotiation in the Working with Others
Exercise, “A Negotiation Role Play.”
If students are interested in whether manipulation is an acceptable strategy, you

might want to discuss the Ethical Dilemma Exercise “Is it Unethical to Lie and
Deceive during Negotiations?”
E. Individual Differences In Negotiation Effectiveness

Notes
1. Personality Traits in Negotiation
 Personality and negotiation outcomes have weak relationship.

 Agreeable negotiators are not very successful in distributive bargaining.
 The best distributive bargainer appears to be a disagreeable introvert;
more interested in his/her own outcomes than the other party.
 Intelligence can predict negotiation effectiveness only some of the time.
2. Moods/Emotions in Negotiation
 Anger in negotiations relates to how much power the negotiator has. Show
anger only if you have at least as much power as your counterpart.
 Having a history of anger induces more concessions as you may be
perceived as “tough”.
 Culture matters in anger as the stereotype of East Asians is that they
generally do not show anger.
 Anxiety has impact on negotiation. Anxious negotiators expect lower
outcomes, respond to offers more quickly and exit the bargaining process
more quickly leading to worse outcomes.
 Expressing positive and negative emotions in an unpredictable way extracts
more concessions because it makes the other party feel less in control.
 Negative emotions allow us to oversimplify issues, lose trust, and view the
other party’s behaviour negatively.
 Positive feelings increase tendency to see potential problem in a broader
view and develop innovative solutions.

3. Gender Differences in Negotiation

 Men and women tend to negotiate differently and these differences affect
outcomes.
 Gender double standard – when women behave stereotypically, men are
more likely to take advantage of the cooperative behaviour; but when women
behave assertively they are viewed more negatively than men demonstrating
the same behaviour.
 Women
 Stereotyped as being more cooperative and pleasant.
 Place higher value on compassion and altruism and value relationship
outcomes.
 Behave in a less assertive, less self-interested, and more accommodating
manner.
 Negotiators seek to exploit female negotiators and as a result women tend
to obtain poorer individual outcomes.
 Women demonstrate less confidence than men and are less satisfied with
their performance even when they achieve similar outcomes as men.
 Less likely than men to see an ambiguous situation as an opportunity.
 More likely to be assertive when they are negotiating on behalf of
someone else.
 Men
 Place higher value on status, power, and recognition.
 Value economic outcomes over social outcomes.
 Tend to be more aggressive and take advantage of situations.
 How to change this double standard:
 Competitive organizational culture increases gender-stereotyping. Both
genders should be able to show a full range of negotiating behaviours.
 Women cannot control male stereotypes of women but they can control
their own negotiating behaviour.
 If economic outcomes are valued then women should accept more
aggressive negotiating tactics.
 If social outcomes are values then men should consider behaving in a
more cooperative manner.
 Women can gain an advantage in negotiation by being both assertive and
flirtatious, but in their own interest they should eliminate these sex role
stereotypes.
 Women’s own attitudes and behaviours hurt them.
5. Third-Party Negotiations
 Alternative dispute resolution (ADR) uses a third party to help find a solution
to conflict.

 Mediator
 A mediator is a neutral third party who facilitates a negotiated solution by
using reasoning, persuasion, and suggestions for alternative.
 Participants must be motivated to bargain and settle.
 Best under moderate levels of conflict.
 Mediator must appear neutral and non-coercive.
 Arbitrator
 An arbitrator has authority to dictate an agreement, and always results in a
settlement.
 Can be voluntary (requested) or compulsory (imposed by law or contract).
 May result in further conflict because the two parties don’t negotiate,
rather, settlement can be imposed.
 Conciliator
 Trusted third party who provides an informal communication link between
the negotiator and the opponent.
 Engage in fact-finding, interpreting and persuading.
F. Global Implications
Notes
1. Conflict Resolution and Culture
 Differences across countries may be based on collectivistic tendencies and

motives.
 Collectivistic cultures:
 More likely to seek to preserve relationships by using compromising or
even avoiding.
 Promote the good of the group as a whole.
 Avoid direct expression of conflicts; preserve peace.
 Individualistic cultures:
 More likely to confront differences of opinion directly and openly.
 More likely to use competing tactics.
2. Cultural differences in negotiating style
 People generally negotiate more effectively within cultures than between

them.
 In cross-cultural settings, it is especially important that the negotiators be high
in openness and avoid factors such as time pressures that ten to inhibit
learning about and understanding the other party.
 The cultural context of negotiation significantly influences the amount and
type of preparation, the relative emphasis on task vs. interpersonal
relationships, the tactics use, and even the location for negotiations.

3. Culture, Negotiations, and Emotions
 East Asian negotiators seem less likely to accept offers from negotiators who
display anger.
 Collectivistic cultures emphasize respect and deference, and seem
particularly likely to perceive anger in negotiations as disrespectful.
SUMMARY
While many people assume that conflict lowers group and organizational performance, this
assumption is frequently incorrect. Conflict can be either constructive or destructive to the
functioning of a group or unit. Levels of conflict can be either too high or too low to be constructive.
Either extreme hinders performance. An optimal level is one that prevents stagnation, stimulates
creativity, allows tensions to be released, and initiates the seeds of change without being
disruptive or preventing coordination of activities.
OB AT WORK
For Review
(Note to instructors: the answers here are starting points for discussion, not absolutes!)
1. What is conflict?
Conflict occurs when one party perceives that another party's actions will have a negative
effect on something the first party cares about. Many people automatically assume that all
conflict is bad. However, conflict can be either functional (constructive) or dysfunctional
(destructive) to the performance of a group or unit.
2. What are the three types of conflict and the three loci of conflict?
The types of conflict: 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.
The loci of conflict: Dyadic conflict is conflict between two people. Intragroup conflict
occurs within a group or team. Intergroup conflict is conflict between groups or teams
3. What are the conditions that lead to conflict?
Communication can be a source of conflict through semantic difficulties, misunderstandings,

and noise in the communication channels. Organizational structure can cause conflict through
variables such as size of the group, degree of specialization in the tasks assigned to group
members, composition of the group, jurisdictional clarity, reward systems, leadership style,
goal compatibility and the degree of dependence between groups. Personal variable include
personality, emotions and values which all can be sources of conflict between individuals.
4. What are the differences between distributive and integrative bargaining?
Distributive bargaining operates under zero-sum (win-lose) conditions where a fixed amount of
resources is to be divided. Integrative bargaining operates under the assumption that there
exists one or more settlements that can create a win-win solution for all parties.

5. How do individual differences influence negotiations?
Three areas that affect negotiations are personality traits, moods and emotions, and gender
differences. Some of the factors leading to personality conflicts include: misunderstandings
based on age, race, or cultural differences; intolerance, prejudice, discrimination, or bigotry;
perceived inequities, misunderstanding, rumours, or falsehoods about an individual or group;
and blaming for mistakes or mishaps (finger-pointing). There are no strong links between
personality and negotiating styles, suggesting we all can learn to be better negotiators. Anger
during negotiations has a variety of results depending on who is doing the negotiating and
even cultural background of the negotiators. The evidence suggests that men and women use
relatively similar styles, but have somewhat different success rates.
6. What are the roles and functions of third-party negotiations?
A conciliator is a trusted third party who provides an informal communication link between the
negotiator and the opponent. Conciliators typically act as more than mere communication
conduits, engaging in fact-finding, interpreting messages, and persuading disputants to
develop agreements. A mediator is a neutral third party who facilitates a negotiated solution by
using reasoning and persuasion, suggesting alternatives and the like. Mediators can be much
more aggressive in proposing solutions than conciliators. Arbitrator is a third party with the
authority to dictate an agreement. It always results in a settlement.
POINT/COUNTERPOINT
Conflict: Good or Bad
Summary
What is the effect of conflict on an organization? The two points of view argue from different
positions how conflict impacts individuals, teams and the organization as a whole. Stimulating
conflict can provide benefits. Conflict is an inherent part of any situation where people work closely
together. Conflict can have negative consequences, but can it be completely eliminated.
Point: The point argues that conflict is good for an organization for the following reasons:
 Conflict is a means by which to bring about radical change.
 Conflict facilitates group cohesiveness.
 Conflict improves group and organizational effectiveness.
 Conflict brings about a slightly higher, more constructive level of tension.
Groups or organizations devoid of conflict are likely to suffer from apathy, stagnation, groupthink,
and other debilitating diseases. Look at a list of large organizations that have failed or suffered
serious financial setbacks over the past decade or two. The common thread through these
companies is that they stagnated. Their managements became complacent and unable or
unwilling to facilitate change. These organizations could have benefited from functional conflict.
Counterpoint: The counterpoint argues that all conflict is dysfunctional, and it is one of
management’s major responsibilities to keep its intensity as low as humanly possible because:
 The negative consequences from conflict can be devastating.
 Effective managers build teamwork. A good manager builds a coordinated team. Conflict
works against such an objective.
 Managers who accept and stimulate conflict do not survive in organizations.

From the traditional view, any conflict will be seen as bad. Since the evaluation of a manager’s
performance is made by higher-level executives, those managers who do not succeed in
eliminating conflicts are likely to be appraised negatively. Failure to follow this advice might result
in the premature departure of the manager.
Analysis
Most behavioural scientists and practitioners now accept that the goal of effective management is
not to eliminate conflict, but rather to create the right intensity of conflict so as to reap its functional
benefits. Functional conflict is a means by which to bring about radical change. It improves group
and organizational effectiveness. It brings about a slightly higher, more constructive level of
tension. Organizations devoid of conflict are likely to suffer from apathy, stagnation, groupthink,
and other debilitating diseases. The negative consequences from dysfunctional conflict can be
devastating; for example, increased turnover, decreased employee satisfaction, inefficiencies
between work units, sabotage, labour grievances and strikes, and physical aggression. Effective
managers build teamwork, that is, a coordinated team.
Class activity
Divide the class into two (or more) teams. Assign each team either the Point or the Counterpoint
position. Have teams debate the issue. In a very large class, one debate could be conducted in
front of the class by two volunteer teams.
BREAKOUT GROUP EXERCISES
1. You and 2 other students carpool to school every day. The driver has recently taken to playing
a new radio station quite loudly. You do not like the music, or the loudness. Using one of the
conflict-handling intentions, indicate how you might go about resolving this conflict.
Students will give a variety of answers. Some possible examples:
 Avoid: either decide not to say anything, or find another way to get to school.
 Compromise: ask if there is another station that neither loves, but wouldn’t find
offensive. Or if there’s a way to alternate choice of stations daily among those in the
car.
 Collaborate: sit down and draw up a list of stations that people like and see if there’s
one that everyone likes.
 Compete: bring a portable player and blast that in the back seat.
2. Using the example above, identify a number of BATNAs (Best Alternatives to a Negotiated
Agreement) available to you, and then decide whether you would continue carpooling.
 A variety of answers are possible. They could decide to take the bus, shop around for an
inexpensive car, look for another car pool, and maybe there is no true alternative.
3. Which conflict-handling style is most consistent with how you deal with conflict? Is your style
effective? Why or why not?
 This gives students the opportunity to evaluate how they handle conflict.

EXPERIENTIAL EXERCISE
A Negotiation Role Play
This role play sets up conflicting goals between Alex and CJ. The chapter suggests this exercise
be done in pairs, but another approach would be to do it in triads: one person plays Alex, another
plays CJ, and the third acts as an observer to note the negotiation behaviours and to give
feedback to the two role players after the role play.
Teaching Notes
1. The process for running the exercise is self-explanatory.

2. Consider assigning some pairs a distributive strategy and some an integrative strategy.
This will permit a comparison of results for discussion. Consider your gender mix in the
pairs, if you want to include a discussion of male/female negotiating strategies.
3. For the sake of time, this exercise can also be conducted as a “fish bowl” using only one
pair of students and having the rest of the class observe.
This exercise is applicable to face-to-face classes or synchronous online classes such as

BlackBoard 9.1, Breeze, WIMBA, and Second Life Virtual Classrooms. See
http://www.baclass.panam.edu/imob/SecondLife for more information.
ETHICAL DILEMMA
The Lowball Applicant
The issue in this case is a job applicant who for all apparent purposes was extremely highly
qualified, but perhaps did not fully understand the company policies regarding the job she was
applying for. She was offering to accept a lower salary for flextime which was already in the
company policy. She could have worked fewer hours per week and still be considered a full time
employee. Above all, because of her qualifications she could have commanded a salary above the
advertised pay grade. How should the interviewing human resources manager approach this
issue? Should she clarify for the applicant the policies in the applicant’s favour, or should she save
money for the company by being silent and accepting the applicant’s offer?
Questions
(Note to instructors: the answers here are starting points for discussion, not absolutes!)
1. If the human resources manager were to coach the applicant to request a higher salary, would
the coaching work against the interest of the organization? Is it the responsibility of the human
resources manager to put the organization’s financial interests first?
The students’ responses to this question will vary depending on individual ethical position.
Those with a position that this violated the client relationship will likely base it on a contractual
obligation. Those in favor of the action will probably emphasize that by working toward the
higher salary, potential future conflict over inequity was averted.
2. What do you see as the potential downside of the human resources manager abstaining from
discussing the pay issue further with the candidate?
Responses to this question will vary by student, but many will suggest that if no discussions
take place, there is the potential for issues related to trust and ethics to emerge.

3. If the candidate were hired at the reduced rate she proposed, how might the situation play out
over the next year when she gets to know the organization and pay standards better?
Again, responses to this question will vary by student. Some will argue that the candidate will
feel violated – that the organization has taken advantage of the situation. Others though, may
contend that this could ultimately serve to strengthen the job candidate.
CASE INCIDENT
Choosing Your Battles
Summary
The conflict between City of Vancouver and CP Rail over property owned by the latter escalated
into a situation where CP Rail thoughtlessly involved citizens in the area by bulldozing community
gardens which had been in place even in the time that the railway right-of-way was in use by CP
Rail. This bullying tactic backfired because not only were the gardeners involved infuriated, the
tactic reflected negatively in the public opinion. It was not a wise move for CP to pick a battle with
the gardeners when the dispute was really with the city. The city would like to see the property
used as a greenway and a future transit corridor. CP wants to develop the land and sell it to the
city. The sticking point seems to be the price the city is willing to pay and what CP thinks the
property is worth. This is a good example of making sure you pick your battle with the right party.
Questions
(Note to instructors: The answers here are starting points for discussion, not absolutes!)
1. Can involving a third party in a dispute, much like CP Rail did with the community gardeners,
ever result in a positive outcome?
Some degree of open disagreement can be an important way for parties to manage simmering
and potentially destructive conflicts. Third party involvement depends on the situation and who
the third party is. In this case, public opinion immediately became inflamed and reputation of
CP Rail was damaged. They had turned a blind eye to the community gardens for years and
now thoughtlessly assumed that the citizens involved would pressure the city to purchase the
property at any cost.
2. How can negotiators use conflict management strategies to their advantage so that
differences in interests lead to positive integrative solutions rather than dysfunctional
conflicts?
Exhibit 9-1 shows major resolution techniques that allow parties to control the conflict levels.
The students’ answers to this question should include ideas contained in this exhibit.
3. Can you think of situations in your own life in which silence has worsened a conflict between
parties? What might have been done differently to ensure that open communication facilitated
collaboration instead?
This question’s answers will be the opinion of the students. As students to volunteer examples
and then discuss what might have been done in each situation.

CASE INCIDENT
The Pros and Cons of Collective Bargaining
There is disagreement whether unions help or hinder an organization’s ability to be successful,

however they often figure prominently in the study of workplace conflict and negotiation strategies.
Fewer employees in the private sector are unionized compared with those who work in the public
sector. Unions can protect the right of workers and negotiating as a collective, they often have
been able to negotiate better settlements. But are these settlements sustainable? It is also often
more difficult to fire a member of a union, even if performance is exceptionally poor.
Questions
(Note to instructors: The answers here are starting points for discussion, not absolutes!)
1. Labour-management negotiations might be characterized as more distributive than integrative.

Do you agree? Why do you think this is the case? What, if anything, would you do about it?
The response to this question will vary depending on the student’s opinion.
2. If unions have negotiated unreasonable agreements, what responsibility does management or

the administration bear for agreeing to these terms? Why do you think they agree?
Again, student response depends on opinion. But, one idea that should come from the
process is that some believe that mediation is a trade-off to justice. Instead of legal disputes
being resolved in the judicial system that calls for decision to be made by peer groups,
mediation results in resolutions fostered by a single professional. The goal of mediation is
harmony, not justice.
3. If you were advising union and management representatives about how to negotiate an
agreement, drawing from the concepts in this chapter, what would you tell them?
Again, responses to this question will vary based on the opinion of the student.
FROM CONCEPTS TO SKILLS
Negotiating
There are ways to improve one’s negotiating skills.
Begin with a positive overture. Studies on negotiation show that concessions tend to be
reciprocated and lead to agreements. As a result, begin bargaining with a positive overture –
perhaps a small concessions – and then reciprocate your opponent’s concessions.
Address problems, not personalities. Concentrate on the negotiation issues, not on the personal
characteristics of your opponent. When negotiations get tough, avoid the tendency to attack your
opponent. It’s your opponent’s ideas or position that you disagree with, not him or her personally.
Separate the people from the problem, and don’t personalize differences.
Pay little attention to initial offers. Treat an initial offer as merely a point of departure. Everyone
has to have an initial position. These initial offers tend to be extreme and idealistic. Treat them as
such.

Emphasize win-win solutions. Inexperienced negotiators often assume that their gain must come
at the expense of the other party. As noted with integrative bargaining, that needn’t be the case.
There are often win-win solutions. But assuming a zero-sum game means missed opportunities for
trade-offs that could benefit both sides. So if conditions are supportive, look for an integrative
solution. Frame options in terms of your opponent’s interests and look for solutions that can allow
your opponent, as well as yourself, to declare a victory.
Create an open and trusting climate. Skilled negotiators are better listeners, ask more questions,
focus their arguments more directly, are less defensive, and have learned to avoid words and
phrases that can irritate an opponent (i.e., “generous offer,” “fair price,” “reasonable arrangement”).
In other words, they are better at creating the open and trusting climate necessary for reaching an
integrative settlement.
KEY TERMS
Arbitrator - A third party to a negotiation who has the authority to dictate an agreement.
Bargaining zone - The zone between each party’s resistance point, assuming there is overlap in
this range.
BATNA - The best alternative to a negotiated agreement; the outcome an individual faces if
negotiations fail.
Conciliator - A trusted third party who provides an informal communication link between the
negotiator and the opponent.
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.
Distributive bargaining - Negotiation that seeks to divide up a fixed amount of resources; a

win-lose solution.
Dyadic conflict – Conflict that occurs between two people.
Dysfunctional conflict - Conflict that hinders group performance.
Fixed Pie - The belief that there is only a set amount of goods or services to be divided up
between the parties.
Functional conflict - Conflict that supports the goals of the group and improves its performance.
Integrative bargaining - Negotiation that seeks one or more settlements that can create a
win-win solution.
Intergroup conflict – Conflict between different groups or teams.
Intragroup conflict – Conflict that occurs within a group or team.
Mediator - A neutral third party who facilitates a negotiated solution by using reasoning,
persuasion, and suggestions for alternatives.

Negotiation - A process in which two or more parties exchange goods or services and try to agree
upon the exchange rate for them.
Process conflict – Conflict over how work gets done.
Relationship conflict – Conflict based on interpersonal relationships.
Task conflict – Conflict over content and goals of the work.
SUPPLEMENTAL MATERIAL
Exploring Topics On The Web
1. Let’s start out with a laugh. Go to dispair.com and see what their commentary is for
dysfunction. Point to: www.despair.com/demotivators/dysfunction.html . While you are there
feel free to look at some of the other posters that “spoof” traditional motivational posters found
on the walls of businesses and schools. Enjoy!
2. How do you handle conflict when it arises? Seven guidelines for handling conflict can be found
at: www.mediate.com/articles/jordan2.cfm . Think of a conflict you are involved in or have
been involved in recently. How could you have applied these guidelines to that situation? Is
there room for improvement in your conflict management skills? Write a short reflection paper
(or a paragraph or two) on one of the guidelines and how you plan to use it in future conflicts.
3. If you have never been involved in labour negotiations it can be a challenging task—especially
if you lack experience in the process. Preparation is key. Every manager should have an
understanding of the process. Learn more at: www.mediate.com/articles/lynnK.cfm . Are there
lessons in this article that could be applied to any negotiation process—for example, buying a
car, negotiating a contract with a vendor, etc.? Think of a circumstance where you might find
yourself explaining a negotiation process to a friend and the skills necessary to be successful.
(Use the article for ideas.) Write out the scenario and skills and bring it to class.
4. Negotiating with other cultures requires an understanding of the culture and the individuals
with whom you are negotiating. Point to: www.mediate.com/articles/lauchli.cfm to learn more
about negotiation and dispute resolution with the Chinese. As the book has discussed, the
Chinese are a collectivist culture different in many ways from Americans. Write two or three
things of interest you learned from reading this page and bring it to class.
5. Read the article by titled “Intercultural Conflict Management: A Mindful Approach” at:
http://www.uri.edu/iaics/content/2008v17n4/02%20Ling%20Chen%20&%20Kat%20C
heung.pdf .. Write a short synopsis of the three major points of the paper. What is the most
interesting or intriguing idea put forth in the paper? Do you agree or disagree with her
assessments? Bring your written work to class for further discussion.
6. The University of Colorado offers a great deal of information regarding conflict management
on their website. One page provides abstracts of selected readings on transformative conflict
resolution. Some readings are more global in nature—others are geared to the organization.
Point to : www.colorado.edu/conflict/transform/abslist.htm and select three abstracts of
interest to you. Print them off and bring them to class. Prepare a short presentation on what
you learned from articles. Be prepared to talk about them before the class or in small groups.

ANNOTATED POWERPOINT SLIDES
CHAPTER
1
9
Conflict and Negotiation
Chapter Outline Material pertinent to this discussion is found under “SnapShot

2 Summary” at the end of the chapter.
• Conflict Defined
– Functional vs. Dysfunctional Conflict
– Types of Conflict
– Loci of Conflict
– Sources of Conflict
• Conflict Resolution
– Conflict Management Strategies Based on Dual Concern
Theory
– What Can Individuals Do to Manage Conflict?
– Resolving Personality Conflicts
– Resolving Intercultural Conflicts

• Conflict Outcomes Negotiation
– Bargaining Strategies
– How to Negotiate
• Individual Differences in Negotiation Effectiveness
– Personality Traits in Negotiation
– Moods/Emotions in Negotiation
– Gender Differences in Negotiation

• Third Party Negotiations
– Mediator
– Arbitrator
– Conciliator
Learning Outcomes This material is found at the beginning of the chapter.

5
1. Describe conflict.
2. Describe the three types of conflict and the two
loci of conflict.
3. Identify the conditions that lead to conflict.
4. Contrast distributive and integrative bargaining.
5. Show how individual differences influence
negotiations.
6. Assess the roles and functions of third‐party
negotiations.

Conflict Defined LO1; Material pertinent to this discussion is found under

6 “Conflict Defined.”
• 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.
– Functional
• Supports the goals of the group and improves its
performance.
– Dysfunctional
• Hinders group performance.
Functional vs. Dysfunctional Conflict LO1; Material pertinent to this discussion is found under
Is Conflict always Bad?
• Functional Conflict
– Supports the goals of the group and improves its
performance
• Dysfunctional Conflict
– Hinders group performance
Types of Conflict LO1; Material pertinent to this discussion is found under

• Task Conflict
– Relates to the content and goals of the work
• Relationship Conflict
– Focuses on interpersonal relationships
– Almost always dysfunctional
• Process Conflict
– Conflict over how work gets done
Loci of Conflict LO2; Material pertinent to this discussion is found under

• Dyadic Conflict
– Conflict between two people
• Intragroup Conflict
– Conflict which occurs within a group or team
– Focus of study of task, relationship, and process conflict
• Intergroup Conflict
– Conflict between different groups or teams
– Interplay between individual position power in group and
how they manage conflict between groups
Sources of Conflict LO3; Material pertinent to this discussion is found under

• Communication
– Through semantic difficulties, misunderstandings
and “noise” in the communication channels
• Structure
– Size, specialization, and composition of the group
– Ambiguity responsibility
– Zero‐sum reward systems
– Leadership style
– The diversity of goals
– If one group is dependent on another

Sources of Conflict LO3; Material pertinent to this discussion is found under

• Personal Variables
– Personality
• People high in disagreeableness, neuroticism, or self‐
monitoring are prone to tangle with other people more
often, and to react poorly when conflict occurs
– Emotions
– Values
Conflict Resolution: Two Dimensions LO3; Material pertinent to this discussion is found under
12 “Conflict Resolution.”
• Cooperativeness
– The degree to which one party attempts to satisfy
the other party’s concerns.
• Assertiveness
– The degree to which one party attempts to satisfy
his or her own concerns.
Conflict Management Strategies LO3; Material pertinent to this discussion is found under
• Forcing
• Imposing one’s will on the other party.
• Problem solving
• Trying to reach an agreement that satisfies both one’s own and
the other party’s aspirations as much as possible.
• Avoiding
• Ignoring or minimizing the importance of the issues creating the
conflict.
• Yielding
• Accepting and incorporating the will of the other party.
• Compromising
• Balancing concern for oneself with concern for the other party in
order to reach a solution
Exhibit 9‐1 Conflict‐Handling Strategies & Accompanying Behaviour LO3; Material pertinent to this discussion is found under
Cooperativeness: The degree to which one party attempts to
satisfy the other party’s concerns.
Assertiveness: The degree to which one party attempts to
satisfy his or her own concerns.
Specific Intentions:
•Competing: A desire to satisfy one’s interests,
regardless of the impact on the other parties.
•Collaborating: A situation where the parties to a
conflict each desire to satisfy fully the concerns of all
parties.
•Avoiding: The desire to withdraw from or suppress a
conflict.
•Accommodating: The willingness of one party in a
conflict to place the opponent’s interests above his or
her own.
•Compromising: A situation in which each party to a
conflict is willing to give up something.

What Can Individuals Do to Manage Conflict? LO3; Material pertinent to this discussion is found under
• Problem solving Problem-solving: Requesting a face-to-face meeting to
• Developing overarching goals
identify the problem and resolve it through open discussion.
Developing super ordinate goals: Creating a shared goal that
• Smoothing requires both parties to work together, and motivates them to
• Compromising
do so.
Smoothing: Playing down differences while emphasizing
• Avoidance Copyright © 2016 Pearson Canada Inc. common interests with the other party.
Compromising: Agreeing with the other party that each will
give up something of value to reach an accord.
Avoidance: Withdrawing from, or suppressing, the conflict.
Techniques for Managing Work‐Related Conflicts LO3; Material pertinent to this discussion is found under
• Expansion of resources Expansion of Resources: The scarcity of a resource--say,
money, promotion opportunities, office space--can create
• Authoritative command
conflict. Expansion of the resource can create a win-win
• Altering the human variable
solution.
Authoritative command: Management can use its formal
• Altering the structural variables authority to resolve the conflict and then communicate its
Copyright © 2016 Pearson Canada Inc. desires to the parties involved.
Altering the human variable: Behavioural change techniques
such as human relations training can alter attitudes and
behaviours that cause conflict.
Altering the structural variables: The formal organization
structure and the interaction patterns of conflicting parties can
be changed through job redesign, transfers, creation of
coordinating positions, and the like.
Resolving Personality Conflicts LO3; Material pertinent to this discussion is found under
• Misunderstandings based on age, race, or cultural
differences
• Intolerance, prejudice, discrimination, and bigotry
• Perceived inequalities
• Misunderstandings, rumours, or falsehoods about an

individual or group
• Blaming for mistakes or mishaps (finger‐pointing)
Tips for Handling Personality Conflict LO3; Material pertinent to this discussion is found under
• Communicate directly with the other person When dealing with the other person emphasize problem
to resolve the perceived conflict.
solving and common objectives, not personalities.
• Avoid dragging co‐workers into the conflict.
• If necessary, seek help from direct

supervisors or human resource specialists.

Tips for Handling Personality Conflict Lo3; Material pertinent to this discussion is found under
• Do not take sides.
• Suggest the parties work things out

themselves.
• If necessary, refer the problem to parties’

direct supervisors.
Tips for Handling Personality Conflict LO3; Material pertinent to this discussion is found under
• Investigate and document conflict. What managers can do if employees are having a personality
• If appropriate, take corrective action (e.g., conflict
feedback or behaviour shaping).
• If necessary, attempt informal dispute
resolution.
• Refer difficult conflicts to human resource
specialists or hired counsellors.
Resolving Intercultural Conflicts LO3; Material pertinent to this discussion is found under
• Those from Asian cultures show a preference for conflict avoidance,
compared with Americans and Britons.
• Chinese and East Asian managers prefer compromising as a strategy,
contrary to North Americans.
• North Americans prefer a problem‐solving approach to conflicts, which
yields a win‐win solution.
• Win‐win solutions are less likely to be achieved in Asian cultures.
• East Asian managers tend to ignore conflict rather than make it public.
• Japanese managers tend to choose non‐confrontational styles.
• Westerners are more likely to choose forcing as a strategy than Asians.
• North Americans expect that negotiations may lead to a legal contract;
Asian cultures rely less on legal contracts and more on relational
contracts.
Exhibit 9‐2 Conflict and Unit Performance LO3; Material pertinent to this discussion is found under
We suggest in Exhibit 9-2 that there is an optimal level of
conflict in the workplace to maximize productivity, but this is
decidedly a North American viewpoint. Many Asian cultures
believe that conflict almost always has a negative effect on
the work unit.
Conflict Outcomes LO3; Material pertinent to this discussion is found under

23 “Conflict Outcomes.”
Three desired outcomes of conflict:
1. Agreement: equitable and fair agreements are
the best outcomes
2. Stronger relationships: when conflict is resolved
positively, this can lead to better relationships
and greater trust.
3. Learning: handling conflict successfully teaches
one how to do it better next time.

Negotiation LO4; Material pertinent to this discussion is found under

24 “Negotiation.”
• A process in which two or more parties
exchange goods or services and attempt to
agree upon the exchange rate for them.
– Distributive bargaining
• Negotiation that seeks to divide up a fixed amount
of resources; a win-lose situation.
– Integrative bargaining
• Negotiation that seeks one or more settlements
that can create a win-win solution.
Exhibit 9‐3 Distributive vs. Integrative Bargaining LO4; Material pertinent to this discussion is found under
How to Negotiate LO4; Material pertinent to this discussion is found under

• Five steps to negotiation:
– Developing a strategy
– Definition of ground rules
– Clarification and justification
– Bargaining and problem solving
– Closure and implementation
• Identify BATNA:
– Best Alternative To a Negotiated Agreement.
Exhibit 9‐4 The Negotiation Process LO4; Material pertinent to this discussion is found under
Exhibit 9‐5 Staking Out the Bargaining Zone LO4; Material pertinent to this discussion is found under

Individual Differences in Negotiation Effectiveness LO5; Material pertinent to this discussion is found under
29 “Individual Differences in Negotiation Effectiveness.” Note:
• Personality Traits in Negotiation This is an overview slide to introduce the topics. There
follow specific slides on these concepts as more in-depth
• Moods/Emotions in Negotiation
speaking notes.
• Gender Differences in Negotiation
Personality Traits in Negotiation LO5; Material pertinent to this discussion is found under
30 “Individual Differences in Negotiation Effectiveness.”
• Negotiators who are agreeable or
extraverted are not very successful in
distributive bargaining
– Extraverts are outgoing and friendly, they
tend to share more information than they
should
– Agreeable people are more interested in
findings ways to cooperate rather than to
butt heads
Moods/Emotions in Negotiation LO5; Material pertinent to this discussion is found under

31 “Individual Differences in Negotiation Effectiveness.”
• Distributive negotiations
– it appears that negotiators in a position of power
or equal status who show anger negotiate better
outcomes because their anger induces
concessions from their opponents
– Those in a less powerful position, displaying anger
leads to worse outcomes
• Integrative negotiations
– positive moods and emotions appear to lead to
more integrative agreements (higher levels of
joint gain).
Gender Differences in Negotiation LO5; Material pertinent to this discussion is found under
32 “Individual Differences in Negotiation.”
• Popular Stereotypes of Men and Women Do men and women negotiate differently? The answer
appears to be “It depends.” It is difficult to generalize about
• Woman more cooperative and pleasant in negotiations than men
• A few hundred dollars more in salary or the corner office is less
important to women than forming and maintaining an
interpersonal relationship
• Women are “nicer” than men is probably due to a confusion
gender differences in negotiating styles, because the
between gender and the lower degree of power women typically
hold in most large organizations
• Men are expected to be “tough”
research yields many opinions, but few reliable conclusions.
• Women’s attitudes and behaviours hurt them in negotiations
• Managerial women demonstrate less confidence in anticipation
Some researchers have documented interesting and relevant
of negotiating and are less satisfied with their performance
afterward differences, however.
Third‐Party Conflict Resolution LO6; Material pertinent to this discussion is found under
33 “Conflict Resolution.” Note: This is an introductory slide to
• Mediator the concepts. Future slides provide speaking notes for each.
Occasionally, individuals or group representatives reach a
• Arbitrator stalemate and are unable to resolve their differences. In such
cases, they may turn to alternative dispute resolution (ADR),
• Conciliator
where a third party helps both sides find a solution outside a
courtroom.

• Mediator
– a neutral third party who facilitates a negotiated
solution by using reasoning, persuasion, and
suggestions for alternatives.
• Labour‐management negotiations and civil court
disputes
• Settlement rate is about 60 percent; satisfaction rate is
over 90 percent
• Participants must be motivated to bargain and settle
• Most effective under moderate levels of conflict
• Mediator must appear neutral and non‐coercive
• Arbitrator
– has authority to dictate an agreement.
•Voluntary (requested) or compulsory
(imposed by law or contract)
•Always results in a settlement
•Conflict may resurface at a later time
• Conciliator
– Trusted third party who provides an informal
communication link between the negotiator and
the opponent.
• Informal link
• Used extensively in international, labour, family, and
community disputes
• Fact‐find, interpret messages, persuade disputants to
develop agreements
Conflict Resolution and Culture LO6; Material pertinent to this discussion is found under
• Collectivistic cultures see people as deeply
embedded in social situations, whereas
individualistic cultures see people as
autonomous.
• As a result, collectivists are more likely to seek
to preserve relationships and promote the
good of the group as a whole than
individualists.
Cultural Differences in Negotiating Style LO6; Material pertinent to this discussion is found under
• Negotiating styles vary across national culture
• People generally negotiate more effectively

within cultures than between them
• Important to be high in openness to
experience
• To avoid factors such as time pressures

Culture, Negotiations, and Emotions LO6; Material pertinent to this discussion is found under
• East Asian negotiators were less likely to
accept offers from negotiators who displayed
anger during negotiations
• When confronted with an angry negotiator,

Chinese negotiators increased their use of
distributive negotiating tactics, whereas US
negotiators decreased their use of these
tactics.
Summary Material pertinent to this discussion is found at the end of the

40 chapter.
1. A medium level of conflict often results in higher
productivity than an absence of conflict.
2. Negotiators should identify their BATNA (best

alternative to a negotiated agreement).
3. In relationships with long‐term consequences, it’s

best to use a win‐win strategy in bargaining.
OB at Work: For Review Material pertinent to this discussion is found at the end of the
41 chapter.
1. What is conflict?
2. What are the three types of conflict and the
two loci of conflict?
3. What are the conditions that lead to conflict?
4. What are the differences between distributive
and integrative bargaining?
5. How do individual differences influence
negotiations?
6. What are the roles and functions of third‐party
negotiations? Copyright © 2016 Pearson Canada Inc.
OB at Work: For Managers Material pertinent to this discussion is found at the end of the
42 chapter.
■ 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.
■ It’s best to avoid an issue when it’s trivial or
symptomatic of other issues, when more important
issues are pressing, when you perceive no chance of
satisfying everyone’s concerns, when people need to
cool down and regain perspective, when gathering
information, and when others can resolve the conflict
more effectively.
43 chapter.
■ 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’s confrontational and focused
on the short term. Integrative bargaining, in
contrast, tends to provide outcomes that satisfy all
parties and build lasting relationships.

44 chapter.
■ Make sure you set aggressive negotiating
goals and try to find creative ways to achieve
the objectives of both parties, especially
when you value the long‐term relationship
with the other party. That does not mean
sacrificing your self‐interest; rather, it means
trying to find creative solutions that give both
parties what they really want.
Point‐CounterPoint Material pertinent to this discussion is found at the end of the

45 chapter.
• Conflict Is Good for the • All Conflicts Are
Organization Dysfunctional!
 Conflict is a means by which  The negative consequences
to bring about radical change. from conflict can be
 Conflict facilitates group devastating.
cohesiveness.  Effective managers build
 Conflict improves group and teamwork, not conflict.
organizational effectiveness.  Competition is good for an
 Conflict brings about a slightly organization, but not conflict.
higher, more constructive  Conflict is avoidable
level of tension.
Breakout Group Exercises Material pertinent to this discussion is found at the end of the
46 chapter.
• Form small groups to discuss the following:
1. You and two other students carpool to school every day. The
driver has recently taken to playing a new radio station quite
loudly. You do not like the music, or the loudness. Using one of
the conflict‐handling intentions, indicate how you might go
about resolving this conflict.
2. Using the example above, identify a number of BATNAs (best
alternatives to a negotiated agreement) available to you, and
then decide whether you would continue carpooling.
3. Which conflict‐handling style is most consistent with how you
deal with conflict? Is your style effective? Why or why not?
From Concepts to Skills: Negotiating Begin with a positive overture. Studies on negotiation show
47 that concessions tend to be reciprocated and lead to
• Begin with a positive overture. agreements.
• Address problems, not personalities.
Address problems, not personalities. Concentrate on the
negotiation issues, not on the personal characteristics of your
• Pay little attention to initial offers. opponent. When negotiations get tough, avoid the tendency
• Emphasize win‐win solutions. to attack your opponent.
Pay little attention to initial offers. Treat an initial offer as
• Create an open and trusting climate.
Copyright © 2016 Pearson Canada Inc. merely a point of departure. Everyone has to have an initial
position. These initial offers tend to be extreme and idealistic.
Treat them as such.
Emphasize win-win solutions. Inexperienced negotiators often
assume that their gain must come at the expense of the other
party. But assuming a zero-sum game means missed
opportunities for trade-offs that could benefit both sides. If
conditions are supportive, look for an integrative solution.
Frame options in terms of your opponent’s interests and look
for solutions that can allow your opponent, as well as yourself,
to declare a victory.
Create an open and trusting climate. Skilled negotiators are
better listeners, ask more questions, focus their arguments
more directly, are less defensive, and have learned to avoid
words and phrases that can irritate an opponent (that is,
“generous offer,” “fair price,” “reasonable arrangement”). In
other words, they are better at creating the open and trusting
climate necessary for reaching an integrative settlement.

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Organizational Behaviour Concepts

Controversies Applications Canadian

After Studying this chapter, you should be able to:

Copyright © 2016 Pearson Canada Inc.

4. Contrast distributive and integrative bargaining.

My study questions for this chapter are:

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 Describe the negotiation process.

SUGGESTED TEACHING PLAN

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ANNOTATED LECTURE OUTLINE

A. Conflict Defined Notes

1. Functional vs. Dysfunctional Conflict

 Functional or constructive conflict: Supports the goals of the group and

 Relationship conflict focuses on interpersonal relationship and, at least in

Copyright © 2016 Pearson Canada Inc.

 Consider the locus of conflict, or where it occurs.

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B. Conflict Resolution Based on Dual Concern Theory Notes

1. Conflict Management Strategies

 Individual attitudes toward a conflict are important, because attitudes define

(See Exhibit 9-1 Conflict-Handling Strategies and Accompanying Behaviours)

 Forcing: Imposing one's will on the other party. Win-lose solution.

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 Avoiding: Ignoring or minimizing the importance of the issues creating the

 Choosing a strategy depends on a variety of factors:

(See OB in Action: Choosing Strategies to Deal with Conflicts)

2. What Can Individuals Do to Manage Conflict?

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3. Resolving Personality Conflicts

 A variety of factors can lead to personality conflicts, including the following:

(See OB in Action: Handling Personality Conflicts)

4. Resolving Intercultural Conflicts

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 Conflict is constructive when it improves the quality of decisions,

 A process in which two or more parties exchange goods or services and

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(See Exhibit 9-3 Distributive vs. Integrative Bargaining)

 Distributive Bargaining: Negotiation that seeks to divide up a fixed amount of

(See Exhibit 9-4 The Negotiation Process)

(See OB in Action: Tips for Getting to Yes)

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 Attaining Closure and Implementation

If students are interested in whether manipulation is an acceptable strategy, you

E. Individual Differences In Negotiation Effectiveness

 Personality and negotiation outcomes have weak relationship.

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3. Gender Differences in Negotiation

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 Differences across countries may be based on collectivistic tendencies and

2. Cultural differences in negotiating style

 People generally negotiate more effectively within cultures than between

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3. Culture, Negotiations, and Emotions

3. What are the conditions that lead to conflict?

Communication can be a source of conflict through semantic difficulties, misunderstandings,

4. What are the differences between distributive and integrative bargaining?

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5. How do individual differences influence negotiations?

6. What are the roles and functions of third-party negotiations?