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Conflict and
Negotiation
1
CONFLICT


Conflict is a situation in which two or more people
disagree over issues of organizational substance
and/or experience some emotional antagonism with
one another

There are two kind of conflicts:
1. Substantive Conflicts, is conflicts that occurs in the
form of fundamental disagreement over ends or goals
to be pursued and the means for their
accomplishment
2. Emotional Conflicts, is conflicts that involves
interpersonal difficulties that arise over feelings of
anger, mistrust, dislike, fear, resentment, and the like
2
LEVELS of CONFLICTS
1. Intrapersonal Conflicts, is conflicts that occurs
within the individual due to actual or perceived
pressures from incompatible goals or expectations
2. Interpersonal Conflicts, is the conflicts that occurs
between two or more individuals
3. Intergroup Conflicts, is conflicts that occurs among
groups in a organization
4. Interorganizational Conflicts, is conflicts that
occurs between organizations

3
Constructive and Destructive
Conflicts


Constructive Conflicts, is conflicts that result in
positive benefits to the group



Destructive Conflicts, is conflicts that works to the
group’s or organization’s disadvantage

4
Conflicts Situations

1. Vertical Conflicts, is conflicts that occurs between
hierarchy levels,
2. Horizontal Conflicts, is conflicts that occurs
between person or group at the same hierarchy level
3. Line -staff Conflicts, is conflicts that occurs between
line and staff representatives
4. Role Conflicts, is conflicts that occurs when the
communication of task expectations proves
inadequate or upsetting

5
CONDITIONS THAT CREATE
CONFLICTS







Work-flow Interdependence, when a person or
group must rely on task contributions from one or
more others to achieve goals
Power And/or Value Asymmetry, exists when
interdependent people or groups differ substantially
from one another in status and influence or in values
Role Ambiguity or Domain Ambiguity,
Resources Scarcity

6
STAGES of CONFLICTS

ANTECENDENT
CONDIIONS

PERCEIVED
CONFLICTS

FELT
CONFLICTS

MANIFEST
CONFLICTS
CONFLICTS
RESOLUTION OR
SUPPRESSION
CONFLICTS
AFTERMATH

7
CONFLICTS MANAGEMENT
APPROACH
Conflict resolution occurs when the reasons
for a conflict are eliminated
1. Indirect Conflict Management Approach
a. Appeals to common goals
b. Hierarchical referral
c. Organization Redesign
d. Use of mythology and scripts
2. Direct Conflict management Techniques
a. Lose-lose conflicts
b. Win-lose conflicts
c. Win-win Conflicts
8
INDIRECT APPROACH

1. Appeal to Common Goals, involves focusing the
attention of potentially conflicting parties on one
mutually desirable conclusion
2. Hierarchical Referral, use the chain of command for
conflicts resolution problem are referred up the
hierarchy for more senior manager to reconcile

9
INDIRECT APPROACH
3. Organizational Redesign, by decoupling, buffering, linking pins, and
liaison group
- Decoupling, involves separating or reducing the contact
between two conflicting groups
- Buffering is a conflict management approach that sets up
inventories to reduce conflicts when inputs of one group are the
outputs of another group
- Linking Pins are persons who are assigned to manage conflict
between groups that are prone to conflict
- Liaison Groups are groups that coordinate the activities of certain
units to prevent destructive conflicts between them 10
INDIRECT APPROACH

4. Scripts, is behavioral routines that become part of
organization’s culture and Myths is proclamation or
beliefs about situations that deny the necessity to make
trade-offs in conflicts resolutions

11
DIRECT TECHNIQUES
1.

Lose-lose Conflicts, occurs when nobody really gets what he
or she wants, by Avoidance, Smoothing, and Compromise
- Avoidance is where everyone pretends the conflict
doesn’t really exist and hopes that it will simply go
away
- Smoothing involves playing down differences among
conflicting parties and highlighting similarities and areas of
agreement; it is also known as accommodation
- Compromise occurs when each party involved in a
conflict gives up something of value to the other

12
DIRECT TECHNIQUES
2. Win-lose Conflicts, occurs when one party achieves its achieves its
desires at the expense and to the exclusion of the other party
desires, by Competition, Authoritative Command
- Competition is a conflict management technique
whereby a victory is achieved through force, superior skill
or domination
- Authoritative Command is a direct conflict management
technique where a formal authority dictates a solution and
specify what is gained and lost by whom

13
DIRECT TECHNIQUES
3. Win-win Conflicts, is achieve by collaboration to address the real
issues in a conflicts situations and the use of problem solving to
reconcile differences.
- Collaboration is a direct and positive approach to conflict
management that involves a recognition by all the
conflicting parties that something is wrong and needs
attention through problem solving
- Problem solving involves gathering and evaluating
information in solving problems and making decisions

14
CONFLICT MANAGEMENT GRID
Cooperative

Smoothing or
Accommodation

Collaboration
and Problem Solving
Seeking true satisfaction of
everyone’s concerns by working
through
Differences;
finding and
Compromise
Solving problem
Working towards
so everyone gains
partial satisfaction of
as a results
everyone’s concerns
seeking acceptable
rather than optimal
solution that no one
Competition or
totally wins or loses
Authoritative

Letting the other’s wishes rule;
smoothing over differences to
maintain superficial
Harmony

Cooperativeness
(attempting to
satisfy the other
party’s concerns)

Command
Working

Avoidance

Uncooperative

Downplaying disagreement,
failing to participate in the
situation, and/or staying neutral
at all cost

Unassertive

against the wishes
of the other party, fighting to dominate in
win-lose competition, and/or forcing
things to a favorable collusion through
the exercise of authority

Assertiveness
(attempting to
satisfy one’s own
concern)

Assertive

15
USE CONFLICTS
MANAGEMENT STYLES










Collaboration and Problem Solving, used to gain true conflict
resolution, time and other circumstances permitting
Avoidance, used when an issue is trivial or more important
issues are pressing or to let people cool down and regain
perspective
Authoritative Command, used when quick and decisive action
is vital or when unpopular actions must be taken
Accommodation, used when conflicts issues are more
important to others than to oneself or when a person wants to
build credits for use in later issues
Compromising, used for temporary settlements to complex
issues or to arrive at expedient solutions when time is limited

16
NEGOTIATION


Negotiation is the process of making joint decisions
when the parties involved have different preferences



Four major action settings for negotiations:
1. Two Party Negotiation, manager negotiates
directly with one other person
2. Group Negotiation, manager is a part of a group
whose members are negotiating to arrive at a
common decision
3. Intergroup Negotiation, manager is apart of a
group that is negotiating with another group
4. Constituency Negotiation, manager involve
negotiation with other person and each individual
party represent a board constituency
17
ETHICAL NEGOTIATIONS



Since any negotiation involves with different preferences
trying to reach a joint decision, ethical behavior is often an
issue, but sometimes not.



Why people act unethically in negotiations:
1. Profit Motive, the desire of each party to get more
2. Sense of Competitions, the beliefs among
negotiations parties that there are insufficient resources
3. Concerns for Justice, search by each party for
outcomes defined as fair only from narrow perspective
of one’s self-interests

18
EFFECTIVE NEGOTIATIONS







Criterion 1: Quality, the negotiations results offer a
quality agreement that is wise and truly satisfactory to
all sides
Criterion 2: Efficiency, the negotiations is efficient
and no more time consuming or costly than
absolutely necessary
Criterion 3: Harmony, the negotiations is
harmonious and fosters rather than inhibits good
interpersonal relations

19
APPROACHES IN NEGOTIATION



Distributive Negotiation, is negotiation in which the
focus is on positions staked out or declared by the
parties involved who are each trying to claim certain
portions of the available pie



Integrative Negotiation, is negotiation in which the
focus is on the merits of the issues, and the parties
involve try to enlarge the available pie rather than
stake claims to certain portion of it

20
INTEGRATIVE AGREEMENT


Attitudinal Foundations of Integrative Agreement:
1. Each party must approach the negotiation with
willingness to trust the other party
2. Each party must be willing to share information with the
other party
3. Each party must willing to ask concrete question of the
other party



Behavioral Foundations of Integrative
Agreement:
1. Ability to separate people from problem
2. Ability to focus on interest
3. Ability to avoid making premature judgements
21
4. Ability to judge possible agreements
BARGAINING ZONE


Bargaining zone is the zone between one party’s
minimum reservation point and the other party’s maximum
reservation point in a negotiating situation

BARGAINING
ZONE

30,000
Ei

35,000
Gr

40,000
Er

Ei Employer’s initial offers
Gr Graduating senior’s minimum reservation point
Er Employer’s maximum reservation offer
Gi Graduating senior’s initial offers

45,000
Gi

22

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Conflict and Negotiation Strategies

  • 2. CONFLICT  Conflict is a situation in which two or more people disagree over issues of organizational substance and/or experience some emotional antagonism with one another There are two kind of conflicts: 1. Substantive Conflicts, is conflicts that occurs in the form of fundamental disagreement over ends or goals to be pursued and the means for their accomplishment 2. Emotional Conflicts, is conflicts that involves interpersonal difficulties that arise over feelings of anger, mistrust, dislike, fear, resentment, and the like 2
  • 3. LEVELS of CONFLICTS 1. Intrapersonal Conflicts, is conflicts that occurs within the individual due to actual or perceived pressures from incompatible goals or expectations 2. Interpersonal Conflicts, is the conflicts that occurs between two or more individuals 3. Intergroup Conflicts, is conflicts that occurs among groups in a organization 4. Interorganizational Conflicts, is conflicts that occurs between organizations 3
  • 4. Constructive and Destructive Conflicts  Constructive Conflicts, is conflicts that result in positive benefits to the group  Destructive Conflicts, is conflicts that works to the group’s or organization’s disadvantage 4
  • 5. Conflicts Situations 1. Vertical Conflicts, is conflicts that occurs between hierarchy levels, 2. Horizontal Conflicts, is conflicts that occurs between person or group at the same hierarchy level 3. Line -staff Conflicts, is conflicts that occurs between line and staff representatives 4. Role Conflicts, is conflicts that occurs when the communication of task expectations proves inadequate or upsetting 5
  • 6. CONDITIONS THAT CREATE CONFLICTS     Work-flow Interdependence, when a person or group must rely on task contributions from one or more others to achieve goals Power And/or Value Asymmetry, exists when interdependent people or groups differ substantially from one another in status and influence or in values Role Ambiguity or Domain Ambiguity, Resources Scarcity 6
  • 8. CONFLICTS MANAGEMENT APPROACH Conflict resolution occurs when the reasons for a conflict are eliminated 1. Indirect Conflict Management Approach a. Appeals to common goals b. Hierarchical referral c. Organization Redesign d. Use of mythology and scripts 2. Direct Conflict management Techniques a. Lose-lose conflicts b. Win-lose conflicts c. Win-win Conflicts 8
  • 9. INDIRECT APPROACH 1. Appeal to Common Goals, involves focusing the attention of potentially conflicting parties on one mutually desirable conclusion 2. Hierarchical Referral, use the chain of command for conflicts resolution problem are referred up the hierarchy for more senior manager to reconcile 9
  • 10. INDIRECT APPROACH 3. Organizational Redesign, by decoupling, buffering, linking pins, and liaison group - Decoupling, involves separating or reducing the contact between two conflicting groups - Buffering is a conflict management approach that sets up inventories to reduce conflicts when inputs of one group are the outputs of another group - Linking Pins are persons who are assigned to manage conflict between groups that are prone to conflict - Liaison Groups are groups that coordinate the activities of certain units to prevent destructive conflicts between them 10
  • 11. INDIRECT APPROACH 4. Scripts, is behavioral routines that become part of organization’s culture and Myths is proclamation or beliefs about situations that deny the necessity to make trade-offs in conflicts resolutions 11
  • 12. DIRECT TECHNIQUES 1. Lose-lose Conflicts, occurs when nobody really gets what he or she wants, by Avoidance, Smoothing, and Compromise - Avoidance is where everyone pretends the conflict doesn’t really exist and hopes that it will simply go away - Smoothing involves playing down differences among conflicting parties and highlighting similarities and areas of agreement; it is also known as accommodation - Compromise occurs when each party involved in a conflict gives up something of value to the other 12
  • 13. DIRECT TECHNIQUES 2. Win-lose Conflicts, occurs when one party achieves its achieves its desires at the expense and to the exclusion of the other party desires, by Competition, Authoritative Command - Competition is a conflict management technique whereby a victory is achieved through force, superior skill or domination - Authoritative Command is a direct conflict management technique where a formal authority dictates a solution and specify what is gained and lost by whom 13
  • 14. DIRECT TECHNIQUES 3. Win-win Conflicts, is achieve by collaboration to address the real issues in a conflicts situations and the use of problem solving to reconcile differences. - Collaboration is a direct and positive approach to conflict management that involves a recognition by all the conflicting parties that something is wrong and needs attention through problem solving - Problem solving involves gathering and evaluating information in solving problems and making decisions 14
  • 15. CONFLICT MANAGEMENT GRID Cooperative Smoothing or Accommodation Collaboration and Problem Solving Seeking true satisfaction of everyone’s concerns by working through Differences; finding and Compromise Solving problem Working towards so everyone gains partial satisfaction of as a results everyone’s concerns seeking acceptable rather than optimal solution that no one Competition or totally wins or loses Authoritative Letting the other’s wishes rule; smoothing over differences to maintain superficial Harmony Cooperativeness (attempting to satisfy the other party’s concerns) Command Working Avoidance Uncooperative Downplaying disagreement, failing to participate in the situation, and/or staying neutral at all cost Unassertive against the wishes of the other party, fighting to dominate in win-lose competition, and/or forcing things to a favorable collusion through the exercise of authority Assertiveness (attempting to satisfy one’s own concern) Assertive 15
  • 16. USE CONFLICTS MANAGEMENT STYLES      Collaboration and Problem Solving, used to gain true conflict resolution, time and other circumstances permitting Avoidance, used when an issue is trivial or more important issues are pressing or to let people cool down and regain perspective Authoritative Command, used when quick and decisive action is vital or when unpopular actions must be taken Accommodation, used when conflicts issues are more important to others than to oneself or when a person wants to build credits for use in later issues Compromising, used for temporary settlements to complex issues or to arrive at expedient solutions when time is limited 16
  • 17. NEGOTIATION  Negotiation is the process of making joint decisions when the parties involved have different preferences  Four major action settings for negotiations: 1. Two Party Negotiation, manager negotiates directly with one other person 2. Group Negotiation, manager is a part of a group whose members are negotiating to arrive at a common decision 3. Intergroup Negotiation, manager is apart of a group that is negotiating with another group 4. Constituency Negotiation, manager involve negotiation with other person and each individual party represent a board constituency 17
  • 18. ETHICAL NEGOTIATIONS  Since any negotiation involves with different preferences trying to reach a joint decision, ethical behavior is often an issue, but sometimes not.  Why people act unethically in negotiations: 1. Profit Motive, the desire of each party to get more 2. Sense of Competitions, the beliefs among negotiations parties that there are insufficient resources 3. Concerns for Justice, search by each party for outcomes defined as fair only from narrow perspective of one’s self-interests 18
  • 19. EFFECTIVE NEGOTIATIONS    Criterion 1: Quality, the negotiations results offer a quality agreement that is wise and truly satisfactory to all sides Criterion 2: Efficiency, the negotiations is efficient and no more time consuming or costly than absolutely necessary Criterion 3: Harmony, the negotiations is harmonious and fosters rather than inhibits good interpersonal relations 19
  • 20. APPROACHES IN NEGOTIATION  Distributive Negotiation, is negotiation in which the focus is on positions staked out or declared by the parties involved who are each trying to claim certain portions of the available pie  Integrative Negotiation, is negotiation in which the focus is on the merits of the issues, and the parties involve try to enlarge the available pie rather than stake claims to certain portion of it 20
  • 21. INTEGRATIVE AGREEMENT  Attitudinal Foundations of Integrative Agreement: 1. Each party must approach the negotiation with willingness to trust the other party 2. Each party must be willing to share information with the other party 3. Each party must willing to ask concrete question of the other party  Behavioral Foundations of Integrative Agreement: 1. Ability to separate people from problem 2. Ability to focus on interest 3. Ability to avoid making premature judgements 21 4. Ability to judge possible agreements
  • 22. BARGAINING ZONE  Bargaining zone is the zone between one party’s minimum reservation point and the other party’s maximum reservation point in a negotiating situation BARGAINING ZONE 30,000 Ei 35,000 Gr 40,000 Er Ei Employer’s initial offers Gr Graduating senior’s minimum reservation point Er Employer’s maximum reservation offer Gi Graduating senior’s initial offers 45,000 Gi 22