Conflict and negotiation

1. Conflict and negotiation

2. Chapter learning objectives • Distinguish task-related from socioemotional conflict. • Discuss the advantages and disadvantages of conflict in organisations. • Identify six sources of organisational conflict. • Outline the five interpersonal styles of conflict management. • Summarise six structural approaches to managing conflict. • Outline four situational influences on negotiations. • Compare and contrast the three types of third-party dispute resolution.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

3. Conflict between Woodside and Shell Executives at Woodside Petroleum and Royal Dutch/Shell experienced conflict when Shell recently tried to take majority ownership of the Perth-based oil and gas development company. © AFP Photo/HO  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

4. Conflict defined The process in which one party perceives that its interests are being opposed or negatively affected by another party. © AFP Photo/HO  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

5. Conflict perceptions Manifest conflict Conflict outcomes Conflict emotions The conflict process Sources of conflict  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

6. Task-related vs socioemotional conflict • Task-related conflict • conflict is aimed at issue, not parties • basis of constructive controversy • helps recognise problems, identify solutions and understand the issues • Socioemotional conflict • conflict viewed as a personal attack • foundation of conflict escalation • leads to dissatisfaction, stress and turnover  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

7. Organisational conflict outcomes • Dysfunctional outcomes • diverts energy and resources • encourages organisational politics • encourages stereotyping • weakens knowledge management • Potential benefits • improves decision making • strengthens team dynamics  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

8. Sources of conflict • Goals conflict with goals of others Goal incompatibility Different values and beliefs • Different beliefs due to unique background, experience, training • Caused by specialised tasks, careers • Explains misunderstanding in cross-cultural and merger relations  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

9. Pooled Resource A B C Sequential A B C Reciprocal A B C Sources of conflict Goal incompatibility Three levels of interdependence Different values and beliefs Task interdependence  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

10. Sources of conflict Goal Incompatibility Different Values and Beliefs Task Interdependence Scarce Resources • Increases competition for resources to fulfil goals Ambiguity • Lack of rules guiding relations • Encourages political tactics  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

11. Sources of conflict Goal Incompatibility Different Values and Beliefs • Lack of opportunity • reliance on stereotypes • Lack of ability • arrogant communication heightens conflict perception • Lack of motivation • conflict causes lower motivation to communicate, increases stereotyping Task Interdependence Scarce Resources Ambiguity Communication Problems  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

12. Conflict mgt styles: orientations • Win-win orientation • you believe parties will find a mutually beneficial solution to their disagreement • Win-lose orientation • you believe that the more one party receives, the less the other receives • tends to escalate conflict, use of power/politics  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

13. Conflict management styles High Competing Collaborating Assertiveness Compromising Avoiding Accommodating High Low Cooperativeness  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

14. Superordinate goals at Tivoli Systems The value of superordinate goals was apparent in a paper airplanes exercise at Tivoli Systems. Teams discovered that they succeeded by focusing on the organisation’s goals rather than fighting over conflicting goals between teams. © Ed Lallo  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

15. Emphasising superordinate goals • Emphasising common objectives rather than conflicting sub-goals • Reducing goal incompatibility and differentiation © Ed Lallo  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

16. Reducing differentiation • Remove sources of different values and beliefs • Move employees around to different jobs, departments and regions • Other ways to reduce differentiation: • encourage generalist careers • common dress code and status • common work experiences © Ed Lallo  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

17. Improving communication/understanding Employees understand and appreciate each other’s views through communication • informal gatherings • formal dialogue sessions • teambuilding activities (such as drum circles, shown here) © Gary Diggens/Toronto Star  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

18. Other ways to manage conflict • Reduce task interdependence • divide shared resources • combine tasks • use buffers • Increase resources • duplicate resources • Clarify rules and procedures • clarify resource distribution • change interdependence  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

19. Initial Target Resistance Resistance Target Initial Bargaining zone model Your positions Area of potential agreement Opponent’s positions  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

20. Situational influences on negotiation • Location • Physical setting • Time investment and deadlines • Audience © Corel Corp. With permission.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

21. Effective negotiator behaviours • Plan and set goals • Gather information • Communicate effectively • Make appropriate concessions © Corel Corp. With permission.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

22. Third-party objectives Procedural fairness Efficiency Third-party conflict resolution objectives Outcome fairness Effectiveness  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

23. Types of third-party intervention High Mediation Inquisition Level of process control Arbitration Low Level of outcome control High  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

24. Overview of the next chapter • Competencies of effective leaders • Behavioural perspective of leadership • Path-goal theory of leadership • Elements of transformational leadership • Why people inflate the importance of leadership • Gender differences in leadership  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

25. Conflict and negotiation