Managing Conflict in Negotiations

1. Managing Conflict in Negotiations Bargaining, Conflict and Negotiations in Organizational Settings

2. Conflict Defined • it’s pervasive, it’s inevitable, and it’s a process, not a product • Lulofs: “conflict occurs in situations in which (1) the people are interdependent, (2) they seek different outcomes or they favor different means to the same ends; and/or (3) the people perceive the other is interfering with their pursuit of scarce rewards or resources.”

3. Overview of Conflict in Organizations • The cultural “naturalness” of conflict • Legal system • Labor negotiations • Political system • The pervasiveness of conflict--20% of a managers time • Connection to management theories

4. Benefits of Organizational Conflict • Defuse potentially larger conflicts • Forces us to acquire new information • Inter-group conflict promotes intra-group cohesiveness • Provides a opportunity to measure power, strength, or ability

5. Disadvantages of Organizational Conflict • Leads to avoidance behavior • Leads to withholding of information • Threatens individuals • Causes cynicism and reduced communication

6. Tannen’s View of Organizational Conflict • Ritual Fighting • Ritual Fighting as a function of organizational culture • Gender differences

7. Kilmann Thomas Conflict Model • X=cooperativenss, Y=assertiveness • Avoidance (low coop, low assertiveness) • Advantage--takes out the heat of the moment • Disadvantage--conflict remains unresolved, may lead to larger outbreak

8. Kilmann-Thomas Model, cont. • Competition (low coop, high assertiveness) • Advantages--increased creativity and enthusiasm • Disadvantages--violence, driving opponent underground

9. Kilmann Thomas, cont. • Compromise (moderate X and Y) • Advantages--often actually resolves the conflict • Disadvantage--may actually be bad policy or decision by not staying true to either set of goals

10. Kilmann Thomas cont. • Accommodation (High coop, Low assert.) • Advantage--often quickly leads to solution • Disadvantage-- may, in the long run, be detrimental, denies the legitimacy of the claims of one of the participants

11. Kilmann Thomas, cont. • Collaboration (High coop, High assert.) • High levels of commitment and empathy are necessary • Advantage--truly worthy of humans • Disadvantage--difficult and many are not trained to do it very well

12. A Four Phase Model of Conflict Resolution • Introduction--brief statement reviewing procedures for conflict resolution • Explanation--each party discusses the source of the difficulty • Clarifying--develop a better understanding of all relevant issues (positions versus interests) • Problem Solving--brainstorms solutions, eliminate solutions, settle on a final solution

13. A Glossary of Negotiation Terms • Negotiation--Back and forth communication designed to reach an agreement when you and the other side have some interests that are shared and others that are opposed • Bargaining---trading of assets among parties to solve problems • Mediation-- a neutral 3rd party is introduced to work with two parties • Arbitration--like mediation, except that the third party has the authority to impose a binding decision

14. Bargaining at a glance • Distributive bargaining(Win-lose) • Integrative bargaining (Win-win)

15. Bargaining Strategies • Force the opposition to open the bidding • Frequent concessions • Reciprocity for good faith • Look for win-win solutions • expand the pie • joint brainstorming • try “bridging”