Conflict Negotiation

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  • 1. CONFLICT NEGOTIATION & INTER-GROUP BEHAVIOR
  • 2. UNDERSTANDING CONFLICT
    • CONFLICT IS THE DISAGREEMENT BETWEEN TWO OR MORE INDIVIDUALS OR GROUPS OVER AN ISSUE OF MUTUAL INTEREST
    • (24)
  • 3. SOURCES OF CONFLICT
    • ORGANIZATIONAL CHANGE
    • PERSONALITY CLASHES
    • DIFFERENCES IN VALUE SETS
    • THREATS TO STATUS
    • PERCEPTUAL DIFFERENCES
  • 4. CLASSIFICATION OF CONFLICTS
    • INTRAPERSONAL CONFLICT
    • Incompatibility between needs of the individual and the goals of the organization,and the absence of role clarity.
    • Individual may face stress, frustration while achieving the goals.
  • 5. CLASSIFICATION OF CONFLICTS
    • INTERPERSONAL CONFLICT
    • Is the result of differences in perception and gaps in communication.
    • Individual feels that his image is under threat because of the actions of another individuals.
    • INTERGROUP CONFLICTS
    • The conflicts between groups are referred to as intergroup conflicts
    • May arise due to differences in viewpoints or competition
  • 6. THE CONFLICT PROCESS
    • 1) Potential opposition or incompatibility
    • (First stage) - Stimulating factors
    • Communication
    • Disturbances in communication channels
    • Differences in interpreting things
    • Non -availability of information
  • 7. THE CONFLICT PROCESS
    • Structure
    • Role clarity of individuals & departments
    • Leadership style,diversity of goals and reward systems
    • Personal Variables
    • Differences in personalities & value systems
    • People who are highly aggressive and authoritative & pusses low self esteem are more likely to be involved in conflict
  • 8. THE CONFLICT PROCESS
    • 2) Cognition and Personalization
    • (second stage)
    • If the conditions have a negative impact on the interests of an individual , he will develop hostility towards the individual or group & the conflict reaches the second stage.
    • The individuals may become emotionally involved
    • The parties may experience tension, anxiety, frustration.
  • 9. THE CONFLICT PROCESS
    • 3) Intentions (third stage)
    • The individual attempts to discover the intentions of the other person so as to choose an appropriate action.
    • Conflict handling intentions
    • Dominating- High internal focus & low external focus
    • Avoiding- Tries to avoid the other party
  • 10. THE CONFLICT PROCESS
    • Accommodating-
    • Takes place when one party tries to satisfy the interest of other by sacrificing its own interests.
    • Problem-solving-
    • All parties fully cooperate with each other. (win-win solution) which benefits all the parties. Compromising-
    • Parties need to give up some of their demands to resolve the problem
  • 11. THE CONFLICT PROCESS
    • 4) Behavior (Fourth stage)
    • The conflict becomes obvious because of the behavior of the conflicting individuals.
    • This may be considered as attempt by one party to implement its intentions.
    • Ex: Disagreements,negative remarks,& challenging fall along the lower side of the continuum
    • Some amount of conflict is necessary to induce healthy competition.
  • 12. THE CONFLICT PROCESS
    • Verbal attacks,threats,ultimatums,physical attacks come on the upper side of the continuum
    • If the conflict level is too low & insufficient to be resolved the level of conflict needs to be increased.
    • Managers use conflict management techniques like Stimulus and Resolution
  • 13. THE CONFLICT PROCESS
    • Outcomes (last stage)
    • Outcomes are the consequences that result from interaction among conflicting parties
    • Outcome may have positive or negative impact on the organization.
    • Outcomes are classified as
    • Functional outcomes & Dysfunctional outcomes.
  • 14. FUNCTIONAL OUTCOMES
    • Functional outcomes are the constructive consequences of a conflict.
    • Improves the performance of the group or organization.
    • Constructive conflict prevents the group from accepting decisions based on inaccurate assumptions & helps in improving performance
    • Improves quality of decisions & adds creativity & innovation
    • Ex- Cultural diversity
  • 15. Dysfunctional Outcomes
    • Are the destructive consequences of a conflict
    • The situation goes out of control & conflict intensifies.
    • Reduced communication, lower group cohesion & precedence to personal interests are important outcomes.
    • Research suggests that in routine tasks the probability of the destructive conflict is more
  • 16. Negotiations
  • 17. NEGOTIATION
    • The best way to resolve conflict is through negotiations.
    • Negotiation is a process in which one party agrees to exchange a product or service with another party in return for something.
    • Ex: Collective bargaining between labor unions & management.
    • Approaches to negotiation are
    • Distributive bargaining & integrative bargaining
  • 18. Distributive Bargaining
    • Assumes that there can not be any solution that could result in win-win situation
    • Operates under Zero- sum condition
    • Whenever a one party gains a certain amount another party suffers an equivalent loss.
    • Form of a win-lose situation.
    • Each party has a target point
    • Resistance point represents lowest acceptable outcomes.
    • If the outcome is below its resistance point the party prefers to break off negotiations.
    • The area between the target & the resistance point represents the aspiration range of each of the parties
  • 19. INTEGRATIVE BARGAINING
    • Existence of one or more solutions to a problem that results in win-win situation.
    • Helps to develop long term relationships between the negotiating parties,eliminate differences & ensures cooperation of other party in future.
  • 20. Negotiation process
    • Preparation & planning:
    • Understands the nature & background of the conflict.
    • Identifies the self goals as well as other parties goals.
    • The negotiator prepares the strategy to be adopted by collecting possible information.
    • Understanding priority objectives of the other party.
  • 21. Negotiation process
    • 2 ) Defining Rules :
    • Both parties arrive at the negotiation table & establish the basic rules & procedures that will guide the negotiation process.
    • 3) Clarification & justification:
    • Both parties exchange their demands & justify them.
    • Present documents in support of their position
  • 22. Negotiation process
    • 4) Bargaining & problem solving:
    • The parties start bargaining with each other.
    • Each party gives concession to another party.
    • The critical issues may be settled later on.
    • Negotiating parties should take a break to avoid heated arguments.
    • 5) Closure & implementation:
    • The bargaining process is complete & the final agreement is written & signed.
    • Monitoring & implementation of agreement.
  • 23. ISSUES IN THE NEGOTIATION PROCESS
    • Biases in decision making:
    • Ex: Making commitments without considering their feasibility.
    • Believes like women negotiators are soft
    • Decision based on only available information.
    • Personality trait:
    • While preparing for the negotiation process the focus should be on bargaining issues and the situational factors rather than personality traits.
  • 24. ISSUES IN THE NEGOTIATION PROCESS
    • Cultural differences :
    • French people tend to be indifferent to what their opponents think of them which results in prolonged negotiations.
    • The Chinese & Japanese believe in building long -term relationships & work out minute details of the agreement & obtain commitment from the another party to work together.
    • Americans are impatient and tries to end negotiations as early as possible.
  • 25. ISSUES IN THE NEGOTIATION PROCESS
    • North Americans depends on objectives facts & logic to support their arguments & give importance to time & deadline.
    • Arabs follows subjective feelings & emotions to achieve the end.
    • Russians follow examples to support their arguments.
  • 26. ISSUES IN THE NEGOTIATION PROCESS
    • Third-Party Negotiation
    • When negotiations between the parties fail to result satisfactorily,the parties turn to a third party to arrive at an agreement.
    • The role of third party may be in the form of
    • Mediator :
    • Third party uses logical reasoning & persuasion technique to convince the parties to arrive at an agreement.
    • The mediator suggests the alternative solutions
    • Mediators are used in union-management negotiations & civil court disputes
  • 27. ISSUES IN THE NEGOTIATION PROCESS
    • Arbitrator
    • Has the authority to enforce his decision on parties.
    • May be chosen voluntarily or may imposed by the laws
    • It always results in the settlements .
    • But may leave one or both the parties dissatisfied & the conflict may arise again.
    • Conciliator
    • Serves as a informal communication link between the conflicting parties.
    • He is trusted by both the parties
    • Tries to find a solution which is accepted by both the parties
  • 28. ISSUES IN THE NEGOTIATION PROCESS
    • Consultant:
    • IS a skilled person who uses conflict management techniques to resolve the differences.
    • Encourages the parties & develops positive attitude & builds long term relationship.
    • Use his communication & analytical skills to motivate the parties
    • Does not provide a solution but acts as a facilitator
  • 29. FACTORS AFFECTING INTERGROUP RELATIONS
    • Interactions and relationships between people in groups.
    • Interdependence
    • The extent to which the group is dependent on another group in the organization determines the degree of interaction & the type of relations.
    • Classification of Interdependence
    • Pooled interdependence
    • Here two or more groups function independently but their output needs to be combined to achieve the overall objectives of the organization
    • The degree of interaction & coordination among groups is less.
  • 30. FACTORS AFFECTING INTERGROUP RELATIONS
    • Sequential interdependence:
    • Exists when one of the groups is dependent on the other for some input,but the reverse is not true.
    • The degree of interaction is greater
    • Reciprocal interdependence
    • Exists when there is an exchange of inputs & outputs among groups.
    • The mutual dependence brings high degree of interaction & coordination
  • 31. FACTORS AFFECTING INTERGROUP RELATIONS
    • Task uncertainty
    • Groups task may range from highly routine to highly non routine.
    • Groups performing non routine jobs tends to interact more frequently then compared to groups performing routine tasks.
    • Orientation of time & goal
    • Specialization & differentiation of tasks
    • Differing goals & objectives of the groups creates problems in coordination
  • 32. MANAGING INTERGROUP RELATIONS
    • Rules & Procedures
    • Follows formal rules & procedures.
    • Simplest & least expensive method.
    • Minimizes the need for interaction & verbal communication.
    • Works when all the interactions among the groups are anticipated.
    • Frequent interactions are essential to implement the rules
  • 33. MANAGING INTERGROUP RELATIONS
    • Hierarchy
    • Effective in resolving inter group differences .
    • Consumes valuable time of the top management
    • Conflicting parties remain no choice then to abide by the decision given.
    • Planning
    • In this method goals of each groups are clearly specified
    • As each group has its own responsibility inter group conflict decreases & coordination increases
  • 34. MANAGING INTERGROUP RELATIONS
    • Liaison roles
    • A capable person is assigned a liaison role & has to ensure effective communication & coordination.
    • The success of this method depends on the ability of the person
    • The method is likely to fail when the information flow between the departments is too high & the interaction between the group is too frequent to be handled by the person
  • 35. MANAGING INTERGROUP RELATIONS
    • Task forces
    • A temporary group that exists only till the problem is solved.
    • Formed by selecting representatives from different departments.
    • Useful when a project requires coordination among many groups for a short duration.
    • Commonly used to solve political dispute.
    • After giving a effective solution task force is disbanded
  • 36. MANAGING INTERGROUP RELATIONS
    • Teams
    • Permanent teams are set to deal with day today problems.
    • Teams are cross functional & consists of members from various departments
    • Duel responsibility,towards their departments & towards team but the priority is given towards the problems first then their regular responsibilities.
    • After resolving the problem successfully team members return to their own departments
  • 37. MANAGING INTERGROUP RELATIONS
    • Integrating departments
    • Used when relationship between the groups are too complex
    • Permanent departments which seeks to integrate various groups
    • Useful when groups have conflicting goals,face non-routine problems & when the decision of group has impact in the organizational performance.
    • Used when organizations are downsizing
    • Are set up to ensure coordination among the groups.