CONFLICT AND NEGOTIATION

1. Chapter 9 CONFLICT AND NEGOTIATION

2. CONFLICT A natural occurrence in social situations Broadly it refers to circumstances in which the interests of different parties are not aligned- which can lead to open hostilities Traditionally seen as negative and counterproductive, its role – and management – has evolved drastically

3. NEGOTIATION Is commonplace in social and organizational settings A process of maximizing one’s value through interpersonal decision-making in situations where outcomes for each party are interdependent Can help address conflict, and conflict frequently arises in negotiations

4. Perspectives on conflict Unitarianist - views the whole organization as the natural unit of consideration and suggests that within it, objectives are aligned Pluralist - holds that an organization comprises a collection of groups each with their own objectives, aspirations and agenda to follow Marxist and radical - suggests that conflict is an inevitable function of capitalism Labour process theory - seeks to explore the way in which capitalism acquires labour as a commodity and uses it to produce other commodities to the benefit of the capital owners

5. Labour process theory • Thompson and McHugh (1995) – consequences from the capitalist nature of the labour process: • Work organizations are distinct from other organizations – can only be understood within a theory of capital accumulation and labour process • Organizations are structures of control and managers act as agents of capital owners • Organizational structures and processes involve political issues, decisions and choices on job design, control systems, etc • Organizations do not embody a universal rationality, but rather a contested rationality arising from antagonistic and conflictual relationships between capital and labour • Organizational change reflects the balance between control and resistance expressed in the daily dynamic of experience

6. Labour process theory Thompson (1989) - five core elements: • Labour as a unique commodity • Labour as a special focus of attention is capitalism • Capitalism forces minimization • Control as an imperative • Institutionalized conflict

7. NATURE OF ORGANIZATIONAL CONFLICT Latent conflict - the condition where the relevant interests of interacting parties are not aligned Open or explicit conflict - refers to situations in which the goal oriented behaviour of one party negatively affects the goal-oriented behaviour of another party which results in changes in the interactions between the parties

8. Sources of organizational conflict Figure 9.1

9. Sources of organizational conflict • Intrapersonal • Interpersonal • Whetten and Cameron (1991) - four sources of interpersonal conflict • Personal difference • Role incompatibility • Information deficiency • Environmental stress Intragroup Intergroup Intraorganizational Interorganizational

10. Sources of organizational conflict Figure 9.2

11. Sources of organizational conflict Figure 9.3

12. Types and Forms of organizational conflict • Task conflict (cognitive conflict) - disagreements among group members about the content of the tasks performed, including differences in viewpoints, ideas, and opinions • Relationship conflict (emotional or affective conflict) - interpersonal incompatibilities among group members, which typically includes tension, animosity, and annoyance among members within a group • Process conflict - controversies about aspects of how task accomplishment will proceed • Sabotage • Bullying or harassment • Whistleblowing • Work manipulation • Work-to-rule • Work restriction • Strike or lock-outs

13. Conflict impact on performance Figure 9.4

14. Consequences of conflict Figure 9.5

15. Conflict handling strategies Conflict prevention - any organizational or interpersonal arrangement or process that reduces the risk of open conflict Conflict management - any activity or provision that aims at reducing, increasing, creating or solving conflict to achieve an appropriate level of conflict Conflict resolution, - any attempt to lower the level of conflict by reducing the source or consequence of differences in interests between conflicting parties

16. Conflict handling strategies • Thomas (1976) - five generic conflict handling styles: • Smoothing or accommodating • Avoidance • Collaboration and problem solving • Competitive or authoritarian • Compromise

17. Five conflict handling styles Figure 9.6

18. Negotiation terms • Distributive negotiation - the available value is fixed and can be distributed between the involved parties), sometimes referred to as a fixed pie approach • Negotiationgoal drift, - the change in negotiators’ objectives from gaining absolute value to competitive or even punitive goals • BATNA - Best Alternative To a Negotiated Agreement • Reservation point (resistance point) - the lowest value that makes an offer acceptable • Aspirations or target points - reflect what a party hopes to get out of a negotiation in the most favourable circumstances • anchor - comparison point for all further considerations • Concessions - improvements in the offer made to the other party on the way to reaching negotiated agreements

19. A purely distributive two-party negotiation situation with possible outcome options Figure 9.7

20. Negotiating tactics • Win-lose tactics: • Probing • Get/give • Emotion • Good guy/bad guy • Poker face • Managing the minutes • Understanding not agreement • Getting upstairs • Forcing

21. Factors influencing negotiation tactics Figure 9.8

22. Integrative approaches to negotiation Value creation - increasing the total value available for claiming by the parties through the development of integrative solutions. Integrative solutions - combinations of outcomes for each party that exceed the total benefits available for claiming from purely distributive compromise Logrolling - value is created through trading differences in the value of particular aspects of an agreement for different partners

23. Integrative approaches to negotiation Successful integrative negotiation leads to outcomes that: • are better for the parties than their respective BATNAs; • satisfy the interest of the involved parties as well as avoid problems with third parties due to the agreements • are acceptable for all parties so that nobody experiences remorse or feels taken advantage of • are enforceable, possibly through planned commitment keeping (such as legal contracts or agreement on how problems will be resolved) Ideally, successful integrative agreements will also: • maximize the total value achievable to all parties • be based on efficient negotiation processes • contribute to a well-maintained or even improved relationship among the parties

24. Integrative approaches to negotiation The strategies and tactics that have proven to be valuable in integrative negotiation include: • Actively sharing information about own interests • Building trust within the context of the negotiation • Asking diagnostic questions to determine the other parties interests and any relevant differences • Separating issues in the discussion only • Separating discussion and exploration of issues from decision making about issues • Making decisions about packages that include all relevant aspects rather than dealing sequentially with different tissues • Making multiple offers simultaneously to communicate options of equal value to one’s own party • Trade-off differences in interests, preferences, values, and perceptions for mutual gain

25. Integrative potential in two-party negotiations Figure 9.9

26. Principled negotiations Fisher and Ury (1986) • Separate the people from the problem • Focus on interests, not positions • Invent options for mutual gain • Insist on objective criteria

27. Third parties in negotiation and conflict resolution Conciliators - content experts that can provide advice on the negotiation content and suggest agreement options Mediators - act as facilitators to improve communication and other aspects of the negotiation process to increase the chances of mutually acceptable agreements Arbitrators - independent third parties that can impose binding agreements on the parties involved