Organizational Behavior: Conflict and Negotiation

Organizational Behavior
Seventeenth Edition
Chapter 14
Conflict and
Negotiation
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
Learning Objectives
14.1 Describe the three types of conflict and the two loci
of conflict.
14.2 Outline the conflict process.
14.3 Contrast distributive and integrative bargaining.
14.4 Apply the five steps of the negotiation process.
14.5 Show how individual differences influence
negotiations.
14.6 Assess the roles and functions of third-party
negotiations.
Three Types of Conflict and Three
Loci of Conflict (1 of 5)
• 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.
• 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.
Exhibit 14-1 Conflict and Unit Performance
• 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.
• 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.
Outline the Conflict Process (1 of 9)
Exhibit 14-2 The Conflict Process
Exhibit 14-3 Dimensions of Conflict-Handling Intentions
Exhibit 14-4 Conflict-Intensity Continuum
Exhibit 14-5 Conflict Management Techniques
Conflict-Resolution Techniques Blank
Problem solving Meeting face to face for the purpose of identifying the problem and
resolving it through open discussion
Superordinate goals Creating a shared goal that cannot be attained without the cooperation of
each of the conflicting parties.
Expansion of resources Expanding the supply of a scarce resource (for example, money, promotion,
opportunities, office space).
Avoidance Withdrawing from or suppressing the conflict.
Smoothing Playing down differences while emphasizing common interests between the
conflicting parties.
Compromise Having each party to the conflict give up something of value.
Authoritative command Letting management use its formal authority to resolve the conflict and then
communicating its desires to the parties involved.
Altering the human variable Using behavioral change techniques such as human relations training to
alter attitudes and behaviors that cause conflict.
Altering the structural variables Changing the formal organization structure and the interaction patterns of
conflicting parties through job redesign, transfers, creation of coordinating
positions, and the like.
Exhibit 14-5 [continued]
Conflict-Stimulation Techniques Blank
Communication Using ambiguous or threatening messages to increase conflict levels.
Bringing in outsiders Adding employees to a group whose backgrounds, values, attitudes,

or managerial styles differ from those of present members.
Restructuring the organization Realigning work groups, altering rules and regulations, increasing
interdependence, and making similar structural changes to disrupt the
status quo.
Appointing a devil’s advocate Designating a critic to purposely argue against the majority positions
held by the group.
Source: Based on S. P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper

Saddle River, NJ: Prentice Hall, 1974), 59–89.
• 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.
• 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.
• 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.
• 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.
Contrast Distributive and Integrative
Bargaining (1 of 6)
• 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.
Bargaining (2 of 6)
Exhibit 14-6 Distributive versus Integrative Bargaining
Bargaining Characteristic Distributive Bargaining Integrative Bargaining
Goal Get as much of the pie as Expand the pie so that both
possible parties are satisfied
Motivation Win–lose Win–win
Focus Positions (“I can’t go Interests (“Can you explain why
beyond this point on this this issue is so important to
issue.”) you?”)
Interests Opposed Congruent
Information sharing Low (Sharing information High (Sharing information will
will only allow other party to allow each party to find ways to
take advantage) satisfy interests of each party)
Duration of relationship Short term Long term
Bargaining (3 of 6)
Exhibit 14-7 Staking Out the Bargaining Zone
Bargaining (4 of 6)
• 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.
Bargaining (5 of 6)
• 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 flexibility.
Bargaining (6 of 6)
• Compromise might be your worst enemy in negotiating a
win-win agreement.
– The reason is that compromising reduces the pressure
to bargain integratively.
Apply the Five Steps of the
Negotiation Process
Exhibit 14-8 The Negotiation
How Individual Differences Influence
Negotiations (1 of 4)
• 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.
• 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.
• 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.
Source: A. Gouveia, “Why Americans Are Too Scared to Negotiate Salary,” San
Francisco Chronicle, April 3, 2013, downloaded May 30, 2013 from www.sfgate.com.
Roles and Function of Third-party
• 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.
Roles and Function of Third-party
• 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
Implications for Managers (1 of 3)
• 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.
• 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.
• 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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Organizational Behavior

Bringing in outsiders Adding employees to a group whose backgrounds, values, attitudes,

Source: Based on S. P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper

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