Chapter 14 CONFLICTS & NEGOTIATIONS IN ORGANIZATIONS Formatted by: Shahbaz Afzal Khan

1. Chapter 14 CONFLICTS & NEGOTIATIONS IN ORGANIZATIONS Formatted by: Shahbaz Afzal Khan

2. Conflict Definition A process that begin when party perceives that another party has negatively affected , or is about to negatively affect something that the first party cares about. Managers are spending about 20% of their time in managing conflicts • Transitions in Conflict Thought Traditional View – All conflicts are harmful and must be avoided. Interactionist View – Conflict is absolutely necessary for group to perform effectively. Can bring +ve change in organization

3. Functional Vs Dysfunctional Conflict • Functional Conflict • Conflict that supports the goals of the group and improves its performance. Functional conflict is conflict or tension within a group that leads to positive results.(Brain storming regarding, which copier to market , or where to buy a home , whether to install attendance biomatrix etc) • Dysfunctional Conflict • Conflict that hinders group performance There are 3 types of conflict (to differentiate between above two conflicts) Task: relates to the content and goals of the work (Your class project) Relationship: focus on interpersonal relationships Process: relates to how the work gets done

4. Conflict ProcessStage 1: Potential Opposition or Incompatibility • Is the appearance of conditionsthat create opportunities for conflict to arise Following are causes or sources of conflict • Communication • Semantic difficulties, misunderstandings, and “noise” (Problem with boss, My class at LBS with Nigerians) • Structure • Size and specialization of jobs (Conflict with Gestetner engineering) • Member/goal incompatibility • Leadership styles (close or participative) • Reward systems (win-lose) • Personal Variables • Differing individual value systems • Personality types

5. Stage 2 : Cognition and personalization • If one or more of previous points raise up , we reach this stage • Percieved Conflict: Awareness by one or more parties of existence of conditions that create opportunities that conflict raise • Felt Conflict: Emotional involvement in a conflict that creates anxiety, and frustration • For example, Violet realized that Eric's numerous issues have caused a drop in sales of 15%. She is cognizant (aware)of the fact that Eric is the one responsible and that she needs to fix this issue. In order for personalization to occur, the parties must feel that there is conflict via stress, anger or frustration, resulting in emotional involvement. Once conflict arises, individuals must make a decision on how to handle the problem.

6. Stage 3 : Intentionsintervene between people’s perceptions and emotions and their overt behavior

7. Stage 3 : Intentions • Intentions, or decisions to take action in a certain way. Violet does have a multitude of choices in how she can handle the conflict. • Violet can use competing, collaborating, avoiding, accommodating or compromising to solve the conflict with Eric. If she decides to be competitive, she only cares about winning and is not open to any compromise. She could involve Eric in trying to see if they can mutually come to a resolution using a collaborative or compromising style. She cannot take an avoidance stance and wish that the conflict would just disappear; she has lost too much money and continues to do so on a weekly basis. • Lastly, Violet will not just give in and be accommodating to Eric. She feels that she will try to compromise and collaborate with him in a Friday meeting offsite. She wants to know why he is being so negative and hurting business when he used to be a good worker. The meeting starts off very confrontational.

8. Stage 4 :Behavior • It includes the statement actions , and reactions made by the conflicting parties • According to many conflict management techniques Problem solving (Conflict with Adnan) Subordinate goals “ shared goals”(Conflict with Adnan) Avoidance (Withdraw from the conflict) Compromising Page 454 and 455

9. Stage 5 : Outcomes • FUNCTIONAL • Increased group performance • Stimulation of creativity and innovation • Encouragement of interest and curiosity • Problem-solving Page 450 conflict process Case Study Page 462 (Communication) • DYSFUNCTIONAL • Development of dissatisfaction • Reduced group effectiveness • Retarded communication • Reduced group cohesiveness

10. Negotiation-A great skills) • A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them. Sales people negotiates with Customer, employer with employees on salary etc We use the terms negotiation and bargaining interchangeably Bargaining Strategies There are two general approaches to negotiation : Distributive Bargaining • Negotiation that seeks to divide up a fixed amount of resources; a win–lose situation. • Bargaining while buying a car . Salary bargaining (Labor bargains with Management -Packages) Integrative Bargaining Operates under the assumption that one or more settlements can create a win-win solution . Both parties must be engaged for it to work. Payment system in business In organization- I want to go little early to drop my kids at academy, but will come early in the morning Page 467

11. Negotiation Process 5 steps of the negotiation process 1- preparation and planning • Make sure that your goal stays paramount in your discussions • Put your goals in writing and develop a range of outcomes to keep your attention focused. • Assess what you think are the other party’s goals. • Once you have gathered your information , use it to develop a strategy. 2-Definition of ground rules: During this phase , the parties will exchange their initial proposals or demands. And are ready for defining ground rules to 3rd party.

12. Negotiation Process 3-Clarification and justification: At this phase both you and the other party will explain ,amplify , clarify and justify your original demands. 4- Bargaining and problem solving: This is where both parties will undoubtedly need to make concessions. 5-Closure and implementation The final step in the negotiation process is formalizing the agreement that has been worked out and developing any procedures necessary for implementation and monitoring.

13. Individual differences in negotiation effectiveness Three factors influence how effectively individuals negotiate : personality, mood & emotions , and gender. • Personality traits in negotiation Negotiators who are agreeable or extraverted aren’t very successful in distributive bargaining as they are outgoing and friendly , they tend to share more information than they should . So the best distributive bargainer appears to be a disagreeable introvert , someone more interested in his or her own outcomes than in pleasing the other party and having a pleasant social exchange .

14. Individual differences in negotiation effectiveness • Moods and emotions in negotiation Emotions play an important part in the negotiation process, Negative emotions can cause intense and even irrational behavior, and can cause conflicts to escalate and negotiations to break down. On the other hand, positive emotions often facilitate reaching an agreement and help to maximize joint gains. • Gender differences in negotiations Men have been found to negotiate better outcomes than women , although the difference is relatively small.

15. Third party negotiations Mediator • Mediator is a neutral third party who facilitates a negotiated solution by using reasons and persuasion , suggesting alternatives . Arbitrator • Arbitrator Is a third party with the authority to dictate an agreement. • The big plus of arbitration over mediation is that it always results in a settlement . Conciliator • Conciliator Is a trusted third party who provides an informal communication link between the negotiator and the opponent . Consultant • Consultant is a skilled and impartial third party who attempts to facilitate problem solving through communication and analysis, aided by a knowledge of conflict management

16. CONCLUSION • TO REDUCE CONFLICTS • Use appropriate problem solving techniques to solve conflicts but if the conflicts are functional then they are to be praised towards its achievement. but if at all they are dysfunctional then they should be immediately controlled. • Page 469

17. Thank You