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Chapter 11. Managing Conflict and Negotiations. A Contemporary Perspective on Conflict. Conflict is Inevitable , but is Neither inherently Good nor Bad. The Critical Issue with conflict is how it is Managed .

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a contemporary perspective on conflict
A Contemporary Perspective on Conflict
  • Conflict is Inevitable, but is Neither inherently Good nor Bad.
  • The Critical Issue with conflict is how it is Managed.
a contemporary perspective on conflict1
A Contemporary Perspective on Conflict
  • Conflict is defined in terms of the Effect it has on the Organization:
    • Functionalconflict
    • Dysfunctional conflict
functional conflict
Functional Conflict
  • A Confrontation between groups that Enhances organizational Performance.
  • Without functional conflict in organizations:
    • there would be little commitment to change, and
    • most groups would become stagnant.
functional conflict1
Functional Conflict

Functional conflict can:

  • increase awareness of problems that need to be addressed
  • result in broader, more productive searches for solutions
  • facilitate positive change, adaptation, and innovation.
dysfunctional conflict
Dysfunctional Conflict
  • Confrontation or interaction between groups that harms the organization or hinders achievement of organizational goals.
  • Management must try to eliminate dysfunctional conflict
intergroup conflict and org performance exhibit 11 1 p 312
Intergroup Conflict and Org. Performance Exhibit 11.1 (p. 312)

Level of Intergroup Conflict

Level of Organizational Performance


Impact on


Organization Characterized By

Slow adaptation to environment Few changes Little stimulation of ideas



Situation 1

Low or none



Positive push toward Goals

Innovation & change

Search for problem solutions

Creativity & quick adaptation

to environmental changes

Situation 2





Interference with activities Coordination difficulties


Situation 3




stages of conflict
Stages of Conflict

Perceived Conflict

Intergroup Conflicts develop over a period of Time

Felt Conflict

Manifest Conflict

what causes intergroup conflict
What Causes Intergroup Conflict?

Work Interdependence

  • Pooled interdependence
  • Sequential interdependence
  • Reciprocal interdependence

Group A



Types of Interdependence

Group B


Group A

Group B


Group A




Group B

what causes intergroup conflict1
What Causes Intergroup Conflict?

Goal Differences

  • Mutually Exclusive Goals
  • Limited Resources
  • Different Time Horizons
what causes intergroup conflict2
What Causes Intergroup Conflict?

Perceptual Differences

  • Status Incongruency
  • Inaccurate Perceptions
  • Different Perspectives
the consequences of dysfunctional intergroup conflict
Changes Within Groups

Increased Group Cohesiveness

Emphasis on Loyalty

Rise in Autocratic Leadership

Focus on Activity

Changes Between Groups

Distorted Perceptions

Negative Stereotyping

Decreased Communication

The Consequences of Dysfunctional Intergroup Conflict
managing intergroup conflict through resolution
Managing Intergroup Conflict Through Resolution







conflict resolution grid
Conflict-Resolution Grid

Accommodating or Smoothing

Problem Solving or Collaboration


Allowing other group to win

Working together to solve problems


Finding acceptable solution so everyone feels good





Ignoring or steering clear of other group

Working to dominate and control




organizational encounter p 320
Organizational Encounter(p. 320)

How do You handle Conflict?

  • Discuss your results with your group.
  • Report the various styles from your group.
when to use the different conflict resolution approaches
When to Use the Different Conflict-Resolution Approaches
  • Dominating– for important issues
    • Where you are certain you are right, and
    • The benefit of a resolution outweighs the drawback of possible negative feelings by the dominated group.
when to use the different conflict resolution approaches1
When to Use the Different Conflict-Resolution Approaches
  • Accommodating– for disputes of much greater importance to the other group than to your group.
when to use the different conflict resolution approaches2
When to Use the Different Conflict-Resolution Approaches
  • Problem-Solving– when both groups are willing to invest time and effortto reach a resolution maximizing everyone’s outcome.
  • Avoiding– Primarily a temporary measureto buy more time.
when to use the different conflict resolution approaches3
When to Use the Different Conflict-Resolution Approaches
  • Compromising– a middle ground
    • Good backup approach when other approaches fail to resolve the issue.
overview of intergroup conflict exhibit 11 4 p 322
Overview of Intergroup Conflict Exhibit 11.4 (p. 322)

Review of Positive Consequences of Functional Conflict and Negative Consequences of Dysfunctional Conflict

global ob p 323
Global OB (p. 323)

Using Japanese and American perspectives as an example, why is intercultural conflict resolution so complex?

stimulating constructive intergroup conflict
Stimulating Constructive Intergroup Conflict
  • Bring “Outsiders” into the group
  • Alter the organization’sStructure
  • Stimulate Competition
  • Make use of “Programmed” Conflict
          • Devil’s Advocacy
  • Negotiations– Process in which the parties to a disagreement attempt to reach acceptable agreement.
you be the judge p 325
You Be the Judge (p.325)

How should you handle “low-balling” in salary negotiations?


In an organization, negotiation may take place:

1. Between Two People

2. Within a Group

3. Between Groups

4. Over the Internet

win lose negotiating
Win-Lose Negotiating
  • Classical view thatnegotiationsare a Zero-Sum Game:
    • To whatever extentOne Party Winssomething, theOther Party Loses.
  • Also known asDistributive Negotiating
    • The process of“Distributing” Scarce Resources.
win win negotiating
Win-Win Negotiating
  • A Positive-Sum approach:
    • Each party gains without a corresponding loss for the other party.
  • Does not mean that everyone gets everything they want.
  • Agreement leaves all parties better off than prior to the agreement.
negotiation tactics
Negotiation Tactics

2. The Nibble

1. Good-Guy /



5. Splitting the


4. Power of


3. Joint



variables affecting negotiations
Variables Affecting Negotiations
  • There is no one best way to negotiate.
  • Selection of specific Negotiation Strategies and Tactics depends on:

1. Issues being negotiated.

2. Environment in which negotiations take place.

3. Outcomes Desired from the negotiations.

negotiations desired outcomes
Substantive Outcomes

Have to do with how the specific issueissettled.

Strive to end up with a bigger piece of the pie than the other party.

Relationship Outcomes

Negotiate in a manner designed primarily to maintain good relations between the parties.

Desired irrespective of the substantive result.

Negotiations:Desired Outcomes
mastenbroek s model to increase negotiating effectiveness key activities
Mastenbroek’s Model to Increase Negotiating Effectiveness: Key Activities
  • Obtain Substantial Results
  • Influence the Balance of Power
  • Promote a Constructive Climate
  • Obtain Procedural Flexibility
using third party negotiations
Using Third-Party Negotiations

2. Arbitration

1. Mediation

4. Consultation

3. Conciliation

negotiating globally
Negotiating Globally
  • Negotiating with individuals from different countries and cultures poses a number of issues.
  • Demonstrating knowledge about a culture is one way to establish rapport and respect with another negotiator.
improving negotiations
Improving Negotiations
  • Begin bargaining with a positive overture and reciprocate the opponent’s concessions.
  • Concentrate on the negotiation issues and situational factors, not on the opponent.
  • Look below the surface of your opponent’s bargaining -- try to determine the strategy.
improving negotiations1
Improving Negotiations
  • Do not allowconstituents to create competitive bargaining.
  • If you have power in a negotiation, use it to guide the opponent toward an agreement.
  • Be open to accepting third-party assistance!
case 11 1 conflict at walt disney
Case 11.1 – Conflict at Walt Disney
  • Describe the conflict between Eisner and the Weinsteins, the 2 Board Members (Disney & Gold), and Steve Jobs. Was it Functional? Dysfunctional? Explain.
  • Was the conflict between Eisner and Jobs: Perceived? Felt? Manifest?
case 11 1 conflict at walt disney1
Case 11.1 – Conflict at Walt Disney
  • Which conflict resolution approaches did Eisner and Iger use: Dominating, Problem Solving, Avoiding, or Accommodating? Explain.
  • Did Iger’s less confrontational approach to conflict help the company survive a major economic recession?