Chapter Ten
Managing Conflict and Negotiating
Chapter Overview …………………………………………………….. Error! Bookmark not defined.
Learning Outcomes …………………………………………………………………………………………. 1
Real-World Challenge: Resolving Disputes at Marks & Spencer ………………………… 2
Chapter Overview
Conflict is an inevitable result of interdependencies among people, workgroups, and organizations. Given
that all organizations are interdependent systems, organizations without conflict do not exist. Although
many people feel that conflict is inherently destructive, in fact some conflict is beneficial and desirable.
In the long run, conflict can lead to positive outcomes including better decisions, more motivated
Learning Outcomes
After studying this chapter, students should be able to:
1. Describe the nature of conflict, discuss the conflict escalation process, and describe how conflict
can be de-escalated.
2. Identify and discuss the five interpersonal conflict management strategies.
Real-World Challenge: Resolving Disputes at Marks & Spencer
Summary: Global clothing, home products, and food retailer Marks & Spencer employs over 80,000
people around the world and has over 1,000 stores in the United Kingdom alone. Marks & Spencer wants
to give its employees the opportunity to find fair, mutually agreed upon, constructive solutions in a safe
environment and enable them to move forward after a conflict positively and confidently.
Chapter Outline
I. THE NATURE OF CONFLICT
Conflict is a disagreement that arises when two or more parties perceive a threat to their interests,
needs, or concerns.
Conflict can be both constructive and destructive.
One major conflict resolution expert argues that whether conflict is positive or negative is
determined by the parties’ response to the conflict rather than by the conflict itself.
A. Common Causes of Conflict
What creates conflict? The short answer is that conflict can be caused by anything that leads to
a disagreement.
We next discuss nine of the most common sources of conflict in organizations. These are also
summarized in Table 10.1.
1. Differing Task Goals
Task conflict is a disagreement about the task or goals.
A moderate amount of task conflict is beneficial in the early stages of a project because it
increases innovation and generates more alternatives from which to choose. However, task
2. Differing Process Goals
Even when we agree about what we are trying to accomplish, we can still disagree about
3. Interpersonal Differences
Interpersonal differences are a common trigger of relationship conflict, which is the result
of incompatibility or differences between individuals or groups. It can also be triggered by
personality, particularly the personality traits of dogmatism and power motivation.
4. Resource Constraints
Incompatible needs and competition over perceived or actual resource constraints can
create conflicts of interest.
Conflicts of interest occur when someone believes that to satisfy his or her own needs, the
5. Change
Change also causes conflict. Indeed, it has been said that change is not possible without
6. Differing Values
People differ in their values and worldviews. These differences are the source of values
conflict, or conflict arising from perceived or actual incompatibilities in beliefs about what
7. Poor Communication
Remember, uncertainty is one of the primary drivers of conflict. Poor communication
8. Task Interdependence
When one person or unit is dependent on another for resources or information, the potential
for conflict increases.
B. Organizational Structure
Structural conflict is the result of structural or process features of the organization. Structural
conflict can be horizontal or vertical.
C. Conflict Escalation
Conflict escalation happens when one party involved in a conflict (an individual, small group,
department, or entire organizations) first uses an aggressive tactic or begins using more
aggressive tactics than the other party.
Friedrich Glasl’s nine-stage model of conflict escalation is summarized in Table 10.2.
In the fourth stage, images/coalitions, negative rumors are spread and stereotypes are formed as
each side prepares for a fight and conducts a search for supporters.
The fifth stage, loss of face, marks the beginning of open and direct aggression intended to
cause the opponent’s loss of public face.
In the sixth stage, threat as a strategy, threats and counter-threats increase. As ultimatums are
made, conflict escalation accelerates.
In the seventh stage, limited attempts to overthrow, the opponent is no longer viewed as a
person. Slight personal damage is considered acceptable as a consequence of limited attempts
to overthrow the opponent.
D. De-Escalating Conflict
Even if it does not escalate quickly, unresolved conflict drains employees’ energy and reduces
their performance.
It is obviously easier to manage conflict escalation in the early stages of a conflict.
Unfortunately, conflicts are often hard to detect in their early stages.
If you are involved in a conflict, one of the best ways to prevent further escalation is to react
equivalently to the other party and not overreact. Sometimes underreacting can trigger de-
escalation of the conflict.
E. Role of Emotion in Conflict
When we are in conflict, we often feel emotionally charged.
There is an important distinction between perceiving conflict and feeling conflict; conflict is
II. INTERPERSONAL CONFLICT MANAGEMENT STRATEGIES
Once you understand the source of a conflict you are engaged in, you need to identify the best
strategy for addressing it. There are five conflict management strategies that differ in their concern
for others and concern for your own interests.
Figure 10.1 illustrates how these five styles of managing interpersonal conflict compare in their
focus on others and on pursuing one’s self-interests.
• Collaborating reflects a high concern for your own interests and a high concern for the
interests of the other party. This conflict management style emphasizes problem solving and
In general, each style of handling interpersonal conflict is appropriate and ethical in some situations
as long as it is used to attain the organization’s proper goals.
Remember, because people differ in their preferred conflict management styles, it is important to
adapt your own style accordingly. What is most important is that you proactively manage
workplace conflict.
Global Issues: Conflict Management Differences across Cultures
Summary: Individuals from different cultures adopt different conflict resolution strategies. For example,
compared to U.S. managers, Asian managers avoid discussing a conflict. U.S. managers prefer a style of
dominance and assertively competing to see who can convince the other. Chinese managers favor
compromise and avoidance, whereas British executives favor collaboration and competition. Arab Middle
Eastern executives use an integrating and avoiding style.
III. THE CONFLICT PROCESS
Putting it all together, the conflict process is summarized in Figure 10.2.
After a potential conflict is triggered, it is perceived by both parties. The true disagreement may
differ from the perceived disagreement.
A. Conflict Management Skills
Fortunately, most managers can learn the necessary skills for effective conflict management.
Professionals in conflict resolution training suggest four areas of skill development:
1. Listening (including eye contact, rephrasing, and summarizing)
If you are mediating a conflict, ask open rather than leading questions and use nonverbal cues
to show that you are sincerely trying to help. Read nonverbal cues to learn additional
information.
Mediation skills include open-mindedness, staying nonjudgmental and calm, demonstrating
empathy and sensitivity, remaining neutral, respecting confidentiality, and showing flexibility
and resiliency.
B. Creating Constructive Conflict
What can managers do to increase the positive outcomes of conflict?
To successfully create constructive conflict, organizations often punish conflict avoiders.
IV. THE NEGOTIATION PROCESS
At some time or another everyone must negotiate. We often experience conflicts with other people
in which we must negotiate to reach a solution. Negotiation skills thus are not only critical for
managers, but also improve the effectiveness of all employees.
A. Negotiating Skills
Negotiation is a process in which two or more parties make offers, counteroffers, and
concessions in order to reach an agreement.
Distributive negotiation occurs under zero-sum conditions, where any gain to one party is
offset by an equivalent loss to the other party.
The four fundamental principles of integrative negotiation are:
1. Separate the people from the problem. Separate relationship issues from substantive
issues and deal with them independently.
It is also helpful to research and understand the individual with whom you will be negotiating.
Be sure to prepare well, listen actively, and think through your alternatives. The more options
you feel you have, the better a negotiating position you will be in.
Here are some suggestions for being an effective negotiator:
• Do not view this as an either/or proposition. Negotiating is about compromise.
B. Cultural Issues in Negotiations
Different national cultures have different preferred negotiation styles.
Because Americans desire to be liked is known in other cultures, skilled negotiators from other
cultures use this to their advantage by making friendship conditional on the final outcome of
the negotiation.
C. Alternative Dispute Resolution
Sometimes two parties are unable to reach an acceptable settlement through direct negotiations
with each other. In such cases, the parties may involve a third party to overcome the stalemate
and avoid a trial. This process is sometimes called alternative dispute resolution.
There are three types of alternative dispute resolution:
1. Conciliation: A third party builds a positive relationship between the parties, improves
their communication, and facilitates their discussion. Conciliation facilitates a
Conciliation is often the first step in the alternative dispute resolution process. Its goal is to get
the parties to better communicate and resolve the problem on their own, although the
conciliator may suggest a resolution that the parties can accept or reject.
Case Study: Ombudsman to the Rescue
Summary: A growing number of small and midsize businesses are enlisting ombudsmen to handle
internal conflicts. At Sigmet, a Massachusetts data processor design company, even small coworker
Summary and Application
Conflict is a natural part of organizational life. A variety of conflict management strategies can be used to
help keep a conflict from escalating. Organizational effectiveness is enhanced through an appropriate
diagnosis and management of conflict.
Discussion Questions
1. Have you ever experienced a constructive conflict? What happened? How was the disagreement
resolved?
Students can share their experiences. I serve on the organizing committee for a chorale. We were to
2. Have you ever experienced a dysfunctional conflict? What happened? Why was the conflict not
resolved earlier?
3. How can managers promote constructive conflict?
Managers can promote constructive conflict by assigning employees to play the devil’s advocate role
4. Which of the conflict causes do you feel is most challenging to a manager? Why?
5. Think about a current conflict you are experiencing with a coworker, friend, or family member.
Which of Glasl’s conflict stages are you in? What can you do to keep the conflict from
escalating to the next level?
6. If two of your subordinates were experiencing relationship conflict, what would you do to
manage it? Why?
7. If two of your subordinates were experiencing task conflict, what would you do to manage it?
Why?
Task conflict occurs when employees disagree about issues such as which packaging design is best or
8. What could you do to minimize the potential for negative outcomes in cross-cultural
negotiations?
To minimize the potential for negative outcomes in cross-cultural negotiation, I would pay attention
9. What would have to happen for you to fully accept and cooperate with a mediator’s
recommended settlement?
Understand Yourself Exercise—Union Conflict
In this exercise, students read an article about the results of a conflict between the top two leaders of a
union.
1. What type of conflict(s) existed between the two leaders? Explain your answer.
The executive director is described as “hard–charging,” running a “top–down shop,” and stifling
scheduled.”
2. What did the two union leaders do to resolve their conflict?
3. In hindsight, what might have been done to resolve the conflict before it escalated so far?
Group Exercise—Win as Much as You Can!
Learning Objective: Describe some of the best and worst conflict resolution behaviors.
Summary: For ten successive rounds, each team will select either an “X” or a “Y” and submit their
choice to the instructor on a small piece of paper with their team name on it. The “payoff” for each round
is determined by the patterns of choices made by the other teams as described next:
Choice
Pattern
Payout
4 Xs
Lose $1 each
1 Y
Lose $3
Task: In each round, teammates confer and make a joint decision. Before rounds 5, 8, and 10, the teams
will have a chance to confer with each other for three minutes before conferring with teammates for one
minute and making a decision. Note the three bonus rounds, where the payoff is multiplied.
Round
Time
Allowed
Your
Choice
$ Won
$ Lost
Balance
Bonus?
1
2 min
No
Video Exercises
Videos and questions can be found in the eBook and MindTap video folder.
Maine Media Workshops—Building a Contingent Workforce
Summary: Maine Media Workshops began as a summer camp for artists wanting to hone their skills.
1. What is the primary problem that education directors face when recruiting instructors to teach
at Maine Media Workshops?
Recruiting faculty is a major challenge at Maine Media Workshops. Many creative and fine arts
2. What sources of conflict are hampering recruitment at Maine Media Workshops?
Recruiters at Maine Media Workshops encounter conflicts arising from organizational structure,
3. What might Maine Media Workshops do to help resolve its ongoing staffing conflicts?
Because structural conflict is due to organizational design, adjusting the design often reduces or
eliminates the structural conflict. The institute could possibly attract faculty more easily if it began
Now What?
Imagine being part of a team of two other coworkers experiencing negative task conflict as they try to
finalize the design of a new toy before an imminent deadline. One team member is focused on making the
toy of maximum quality and the other is focused on the conflicting goal of making the toy at the lowest
cost. One of the team members is getting frustrated and feels that the team should be making better
progress. The coworker asks you if there is anything the team can do to be more effective. What do you
say or do? Go to this chapter’s “Now What?” video, watch the challenge video, and choose a response.
Be sure to also view the outcomes of the two responses you didn’t choose.
OB Concepts Applied: negative task conflict; goal conflict; shared goals; perspective taking; creating
solutions; expressing emotions; reaching out; avoidance
Discussion Questions
1. What types of conflict is the team experiencing in the challenge video?
The team is experiencing goal conflict, disagreement over what is to be accomplished. Is the goal to
2. What aspects of the negotiation process would best resolve the conflict and why would this
work?
The four principles of integrative negotiation should help resolve the conflict. Separating the people
3. What conflict resolution behaviors would you use as a manager to address this situation?
Explain your answer.
Integrative negotiation might be very effective in this situation. Integrative negotiation is a win–win