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Chapter 13 - Managing Conflict and Negotiating
13-1
CHAPTER THIRTEEN: Managing Conflict and Negotiating
LEARNING OJBECTIVES
See Slides 13-2, 13-3
When you finish studying the material in this chapter, you should be able to:
• Define the term conflict, and put the three metaphors of conflict into proper
perspective for the workplace.
• Distinguish between functional and dysfunctional conflict, and discuss why
people avoid conflict.
• List six antecedents of conflict, and identify the desired outcomes of conflict.
• Define personality conflicts, and explain how managers should handle them.
• Discuss the role of in-group thinking in intergroup conflict, and explain what
management can do about intergroup conflict.
• Discuss what can be done about cross-cultural conflict.
• Explain how managers can stimulate functional conflict, and identify the five
conflict-handling styles.
• Explain the nature and practical significance of conflict triangles and alternative
dispute resolution for third-party conflict intervention.
• Explain the difference between distributive and integrative negotiation, and
discuss the concept of added-value negotiation.
CHAPTER SUMMARY
Chapter 13 defines conflict, describes the types of conflict, identifies the antecedents of
conflict and explains the desired outcomes of conflict. This chapter describes the major
forms of conflict, including personality, intergroup, and cross-cultural. This chapter also
describes methods and tools for managing conflict. This chapter defines negotiation
and explains the basic types of negotiation. Finally, the chapter describes a
contingency approach to conflict management and negotiation.
Conflict occurs when one party perceives that its interests are being opposed or
negatively affected by another party. Three metaphors used to describe conflict are
war, opportunity and journey. We should rely less on the metaphor that conflict is a war
and more on the metaphors and language of opportunity and journey. At one time all
Chapter 13 - Managing Conflict and Negotiating
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conflict was considered a threat to managerial authority, to be avoided or quickly
resolved. Currently, however, experts realize that conflict has both positive and
negative outcomes and organizations can suffer from too little conflict. Conflict can be
divided into functional and dysfunctional conflict. Functional conflict serves the
organization’s interests whereas dysfunctional conflict hinders organizational
performance. People avoid conflict for 10 primary reasons: fears about harm, rejection,
loss of relationships, anger, being seen as selfish, saying the wrong thing, failing,
hurting someone else, getting what you want, or intimacy.
Antecedents of conflict include incompatible personalities or value systems, overlapping
or unclear job boundaries, interdepartment/intergroup competition, competition for
resources, inadequate communication, and interdependent tasks. Additionally,
organizational complexity, unreasonable policies, deadlines or time pressures, collective
decision making, decision making by consensus, or unmet expectations produce
conflict. People tend to avoid conflict, but the chapter provides recommendations for
addressing conflict. The desired outcomes of conflict include agreement, stronger
relationships, and learning.
Three forms of conflict are discussed in this chapter: personality, intergroup, and cross-
cultural. Personality conflict is interpersonal opposition based on personal dislike and/or
disagreement. Workplace incivility can generate personality conflict. Table 13-1
provides advice for dealing with this type of conflict. The second form of conflict is
intergroup conflict. Too much group cohesiveness can lead to in-group thinking, which
can in turn lead to intergroup conflict. To reduce intergroup conflict, managers should
work to eliminate negative interactions, conduct team building, encourage personal
friendships, foster positive attitudes, and avoid negative gossip. Conflict can occur due
to a lack of understanding regarding cross-cultural differences. This type of conflict can
be helped by using consultants and building relationships. Cross-cultural conflict can be
minimized by having expatriates build strong cross-cultural relationships with their hosts
(primarily by being good listeners, being sensitive to others, and being more cooperative
than competitive).
There may be times when managers should use programmed conflict. Programmed
conflict raises different opinions regardless of the personal feelings involved. Devil’s
advocacy and the dialectic method are two programmed conflict techniques. Devil’s
advocacy involves assigning someone the role of critic. In the dialectic method,
managers foster a structured debate of opposing viewpoints before making a decision.
The effectiveness of both techniques is a tie and thus managers can use either when
they need to actively stimulate functional conflict when the risk of blind conformity or
groupthink is high.
People have individual styles for handling dysfunctional conflict. Figure 13-4 presents
the five conflict-handling styles: integrating, obliging, dominating, avoiding, and
compromising. In the integrating style, the different sides confront the issue, identify the
problem, generate and weigh alternatives, and select a solution. The obliging style
Chapter 13 - Managing Conflict and Negotiating
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involves playing down differences and emphasizing commonalties. A dominating style
is characterized by high concern for self and low concern for others. The avoiding tactic
involves either passive withdrawal from the problem or active suppression of the issue.
Finally, the compromising style requires each party to give up something of value.
There is no single best style; each has strengths and weaknesses.
Third-party interventions are often used to address conflict. Conflict triangles occur
when conflicting parties involve a third person rather than dealing directly with each
other. Figure 13-5 profiles options for handling conflict triangles, with options 1 and 2
representing the preferred approaches. Alternative dispute resolution (ADR) uses
faster, more user-friendly methods of dispute resolution, instead of traditional,
adversarial approaches used for resolving disputes such as litigation or unilateral
decision making. ADR has seen enthusiastic growth in recent years. ADR techniques
include: facilitation, conciliation, peer review, ombudsman, mediation, and arbitration.
Conflict research has lead to several conclusions. Group satisfaction decreases as
conflict increases. It is better to use a proactive rather than a reactive approach to
conflict resolution. Companies with mandatory or binding arbitration policies were
viewed less favorably than companies without such policies. Challenging and clear
goals can defuse conflict. Higher levels of conflict erode job satisfaction and internal
work motivation. There is no evidence of gender differences in the way people handle
conflict. Conflict may originate in one area of the organization and then become evident
elsewhere. Finally, there are cultural differences regarding preferred conflict resolution
techniques.
Negotiation is a give-and-take decision making involving interdependent parties with
different preferences. The two types of negotiation are distributive, which usually
involves a single issue in which one person gains at the expense of the other and
integrative, which is a win-win situation in which an agreement is reached that is better
for both parties. The “mythical fixed-pie” mentality may keep people from realizing the
advantages of integrative negotiation. The success of integrative negotiation depends
on the quality of information exchanged. Negotiators need to be aware of dirty tricks
used in negotiations.
A contingency approach to conflict management and negotiation should be used.
Conflict is inevitable because it is triggered by a wide variety of antecedents. Too little
conflict may be as counterproductive as too much. There is no single best way of
avoiding or resolving conflict. With a contingency approach to conflict management,
functional conflict may need to be stimulated and dysfunctional conflict should be
addressed with appropriate conflict-handling styles. Managers can keep from getting
too deeply embroiled in conflict by: establishing challenging and clear goals;
disagreeing in a constructive and reasonable manner; not getting caught up in conflict
triangles; and refusing to get caught in the aggression-breeds-aggression spiral. Third-
party interventions may be necessary when conflicting parties are unwilling or unable to
engage in conflict resolution or integrative negotiation. Negotiators should not shy away
Chapter 13 - Managing Conflict and Negotiating
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from emotions and emotional issues because rationality is important but not enough.
Appreciation, affiliation, autonomy, status, and role are core emotional elements of
negotiation that should to be addressed.
LECTURE OUTLINE
I. Conflict: A Modern Perspective
i) Conflict Overview See Slide 13-4
(1) Conflict: one party perceives its interests are being opposed or set back
by another party. See Slide 13-5
(2) Sources of conflict and issues can be real or imagined.
(3) Conflict can escalate or deescalate over time.
ii) The Language of Conflict: Metaphors and Meaning
(1) Three metaphors used to describe conflict are war, opportunity and
journey.
(2) Anyone viewing a conflict as war or a sports contest will try to win at all
costs and wipe out the enemy.
(3) Those seeing a conflict as an opportunity and a journey will tend to be
more positive, open-minded, and constructive.
(4) We should rely less on the metaphor and language of war and more on
the metaphors and language of opportunity and journey.
iii) A Conflict Continuum
(1) Ideas about conflict underwent an interesting evolution in the 20th century.
(2) Initially, scientific management experts believed all conflict immediately
threatened management’s authority and thus had to be avoided or quickly
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resolved.
(3) Later, human relationists recognized the inevitability of conflict and
advised managers to learn to live with it.
(4) Beginning in the 1970s, OB specialists realized conflict has both positive
and negative outcomes and organizations could suffer from too little
conflict.
(5) Both too little and excessive conflict can have negative impacts on
organizations.
(6) Figure 13-1 The Relationship between Conflict Intensity and
Outcomes illustrates the relationship between conflict intensity and
outcomes. See Slide 13-6
iv) Functional versus Dysfunctional Conflict See Slide 13-7
(1) The distinction between functional conflict and dysfunctional conflict pivots
on whether the organization’s interests are served.
(2) Functional conflict: serves organization’s interests.
(3) Functional conflict is also referred to as constructive or cooperative
conflict.
(4) Dysfunctional conflict: threatens an organization’s interests.
(5) The Real World/Real People: Software Maker 37signals Thrives on
Functional Conflict profiles how a win-win attitude is used in one firm to
address functional conflict.
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v) Why People Avoid Conflict See Slide 13-8
(1) The Coward’s Guide to Conflict contends that we avoid conflict because
we fear various combinations of the following things:
(a) Harm.
(b) Rejection.
(c) Loss of relationship.
(d) Anger.
(e) Being seen as selfish.
(f) Saying the wrong thing.
(g) Failing.
(h) Hurting someone else.
(i) Getting what you want; individuals who feel undeserving and/or fear
the consequences of success.
(j) Intimacy.
vi) Antecedents of Conflict
(1) By knowing the antecedents of conflict, managers are better able to
anticipate conflict and take steps to resolve it if it becomes dysfunctional.
(2) Situations tending to produce either functional or dysfunctional conflict
include: See Slide 13-9
(a) Incompatible personalities or values systems.
(b) Overlapping or unclear job boundaries.
Chapter 13 - Managing Conflict and Negotiating
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(c) Interdepartment/intergroup competition.
(d) Competition for limited resources.
(e) Inadequate communication.
(f) Interdependent tasks.
(g) Organizational complexity.
(h) Unreasonable or unclear policies, standards, or rules.
(i) Unreasonable deadlines or extreme time pressure.
(j) Collective decision making.
(k) Decision making by consensus.
(l) Unmet expectations.
(m) Unresolved or suppressed conflicts.
(3) Proactive managers carefully read these early warnings and take
appropriate action.
vii) Desired Conflict Outcomes See Slide 13-11
(1) Dean Tjosvold identifies three desired outcomes of conflict:
(a) Agreement: equitable and fair agreements are best.
(b) Stronger relationships: good agreements enable conflicting parties to
build bridges of goodwill and trust for future use.
(c) Learning: functional conflict can promote greater self-awareness and
creative problem solving.
(2) Successful conflict handling is learned primarily by doing.
Chapter 13 - Managing Conflict and Negotiating
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II. Types of Conflict
i) Personality Conflict
(1) Personality Conflict Overview
(a) Personality conflicts: interpersonal opposition driven by personal
dislike or disagreement. See Slide 13-12
(2) Workplace Incivility: The Seeds of Personality Conflict See
Slide 13-13
(a) Incivility, or employees’ lack of regard for one another, is costly to
organizations in subtle and pervasive ways.
(b) Vicious cycles of incivility need to be avoided, or broken early, with an
organizational culture that places a high value on respect for
coworkers.
(c) Workplace etiquette training with constructive feedback or skillful
behavior shaping can keep a single irritating behavior from
precipitating a full-blown personality conflict (or worse).
(d) Day of contemplation: one-time-only day off with pay to allow a
problem employee to recommit to the organization’s values and
mission.
(3) Dealing with Personality Conflicts
(a) Personality conflicts are a potential minefield for managers since
employees with psychological disorders are legally protected from
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discrimination but employers need to be concerned about personality
conflicts resulting in sexual harassment and/or workplace aggression.
(b) Table 13-1: How to Deal with Personality Conflicts presents
practical tips for individuals involved in or affected by personality
conflicts. See Slide 13-14
ii) Intergroup Conflict See Slide 13-16
(1) In-Group Thinking: The Seeds of Intergroup Conflict
(a) Group cohesiveness can turn a “group” into a “team” but excessive
levels can impact the team’s ability to think critically and can create in-
groups.
(b) Research has shown that increased group cohesion leads to the
following changes:
(i) Members of in-groups view themselves as a collection of unique
individuals, while they stereotype members of other groups as
being “all alike.”
(ii) In-group members see themselves positively and morally correct,
while they view members of other groups negatively and as
immoral.
(iii)In-groups view outsiders as a threat.
(iv)In-group members exaggerate the differences between their group
and other groups. This typically involves a distorted perception of
reality.
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(c) Managers cannot eliminate in-group thinking, but they certainly should
not ignore it when handling intergroup conflicts.
(d) The Real World/Real People: Has America Become the Land of
Incivility? profiles incivility in American politics.
(2) Research Lessons for Handling Intergroup Conflict See Slides
13-19
(a) One hypothesis for reducing intergroup conflict is the contact
hypothesis, which states the more the members of different groups
interact, the less intergroup conflict they will experience. See
Slide 13-17
(b) Intergroup friendships are desirable but they are readily overpowered
by negative intergroup interactions.
(c) The top priority for dealing with intergroup conflict is to identify and root
out specific negative linkages between or among groups.
(d) Figure 13-2: An Updated Contact Model for Minimizing Intergroup
Conflict provides recommended actions for addressing intergroup
conflict. See Slide 13-20
iii) Cross-Cultural Conflict See Slide 13-21
(1) Cross-Cultural Conflict Overview
Chapter 13 - Managing Conflict and Negotiating
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(a) Cross-cultural conflict arises from differing assumptions about how to
think and act.
(b) Cross-cultural conflicts are not a matter of who is right and who is
wrong; rather it is a matter of accommodating cultural differences for a
successful business transaction.
(2) International Consultants
(a) Cross-cultural conflict can be moderated by using international
consultants.
(b) Consultants can help untangle possible personality and intergroup
conflicts from conflicts rooted in differing national cultures.
(3) Building Cross-Cultural Relationships to Avoid Dysfunctional
Conflict
(a) Rosalie Tung’s study of 409 expatriates from U.S. and Canadian
multinational firms is very instructive for building relationships across
cultures.
(i) Her survey sought to pinpoint success factors for the expatriate.
(ii) Good listening skills topped the list of ways to facilitate interaction
with host-country nationals, followed by sensitivity to others and
cooperativeness rather than competitiveness.
(b) Table 13-2: Ways to Build Cross-Cultural Relationships describes
specific ways to facilitate interaction with host-country nationals.
Chapter 13 - Managing Conflict and Negotiating
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See Slide 13-22
(c) Self-management and cultural intelligence are also needed to minimize
cross-cultural conflict.
III. Managing Conflict
i) Stimulating Functional Conflict
(1) Stimulating Functional Conflict Overview
(a) Carefully monitored functional conflict can help decision-making
groups make better decisions.
(b) Programmed conflict: conflict that raises different opinions regardless
of the personal feelings of the managers. See Slide 13-23
(c) The key to successful programmed conflict is to get contributors to
either defend or criticize ideas based on relevant facts rather than on
the basis of personal preference or political interests.
(2) Devil’s Advocacy
(a) Devil’s advocacy: assigning someone the role of critic. See
Slide 13-24
(b) Devil’s advocacy is one of the recommendations for preventing
groupthink.
(c) This approach to programmed conflict is intended to generate critical
thinking and reality testing.
(d) Figure 13-3: Techniques for Stimulating Functional Conflict:
Chapter 13 - Managing Conflict and Negotiating
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Devil’s Advocacy and the Dialectic Method presents the steps for
two approaches for stimulating functional conflict. See Slide 13-
25
(e) Devil’s advocacy role-playing is good training for developing analytical
and communication skills and emotional intelligence.
(3) The Dialectic Method
(a) Dialectic method: fostering a debate of opposing viewpoints to better
understand an issue. See Slide 13-24
(b) Drawbacks of this technique are that winning the debate may
overshadow the issue at hand and this method requires more skill
training than does devil’s advocacy.
(c) Personal preference and the role players’ experience may be the
deciding factors in choosing between using devil’s advocacy and the
dialectic method since research on the relative effectiveness of the two
methods ended in a tie.
(d) The important point is to actively stimulate functional conflict when
necessary, such as when the risk of blind conformity or groupthink is
high.
(e) The Real World/Real People: How Toro Mows Down Bad Ideas
profiles an example of the dialectic method in action.
ii) Alternative Styles for Handling Dysfunctional Conflict
(1) Overview of Conflict Styles
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(a) People tend to handle negative conflict in patterned ways referred to
as styles.
(b) Several conflict styles have been categorized over the years and one
approach is shown in Figure 13-4: Five Conflict Handling Styles.
See Slide 13-26
(2) Integrating (Problem Solving) See Slide 13-27
(a) Interested parties confront the issue and cooperatively identify the
problem, generate and weigh alternative solutions, and select a
solution.
(b) Characterized by high concern for self and high concern for others.
(c) Integrating is appropriate for complex issues plagued by
misunderstanding.
(3) Obliging (Smoothing) See Slide 13-29
(a) This style involves playing down differences while emphasizing
commonalities to please the other party.
(b) Characterized by low concern for self and high concern for others.
(c) Obliging may be an appropriate conflict-handling strategy when it is
possible to eventually get something in return.
(4) Dominating (Forcing) See Slide 13-30
(a) This style relies on formal authority to force compliance.
Chapter 13 - Managing Conflict and Negotiating
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(b) Characterized by high concern for self and low concern for others.
(c) Dominating is appropriate when an unpopular solution must be
implemented, the issue is minor, or a deadline is near.
(5) Avoiding See Slide 13-31
(a) May involve either passive withdrawal from the problem or active
suppression of the issue.
(b) Characterized by low concern for self and low concern for others.
(c) Avoidance is appropriate for trivial issues or when the costs of
confrontation outweigh the benefits of resolving the conflict.
(6) Compromising See Slide 13-32
(a) Give and take approach involving moderate concern for both self and
others.
(b) Compromise is appropriate when parties have opposite goals or
possess equal power.
iii) Third-Party Interventions
(1) Conflict Triangles
(a) Conflict triangle: conflicting parties involve a third person rather than
dealing directly with each other. See Slide 13-33
(b) Figure 13-5: Third-Party Intervention Options for Handling
