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Chapter 11:
Managing Conflict
and Negotiation
1
The Costs of Workplace Conflict
• 85% of employees deal with conflict on some level
• 29% of employees deal with it almost constantly
• 34% of conflict occurs among front-line employees
• 49% of conflict is a result of personality clashes
and “warring egos”
• 34% of conflict is caused by stress in the
workplace
• 33% of conflict is caused by heavy workloads
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 2
Negative Outcomes of Workplace
Conflict:
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 3
What Is Conflict?
• Conflict is defined as “the process that begins
when one party perceives that the other has
negatively affected, or is about to negatively
affect, something that he or she cares about”
(Thomas, 1992)
• Conflict is a perception
• Perceptions don’t always line up with reality.
• However, they do influence behavior and they can
be changed
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 4
What Is Conflict? (Cont.)
• Causes/Sources of Organizational Conflict
• Substantive conflict
• Affective conflict
• Process conflict
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 5
What Is Conflict? (Cont.)
• Is Conflict Always Bad?
• Unproductive (dysfunctional) organizational conflict
can harm relationships between leaders and
followers and among teammates; ultimately harms
performance
• Productive (functional) conflict is productive;
improves performance if it aligns with the goals
of the organization
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 6
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 7
What Is Conflict? (Cont.)
What Is Conflict? (Cont.)
• Task Versus Relationship Conflict
• Task conflict--Disagreements about resource
allocation, policies, or even interpretation of data
• Relationship conflict--involves personality clashes
or differences in values
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 8
What Is Conflict? (Cont.)
• Workplace Incivility and Aggression
• Two million acts of workplace violence a year
• Employees likely face at least one instance of
incivility a week
• To resolve these problems leaders must
• Know their employees and what is going on among
them
• Help with conflict resolution
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 9
What Is Conflict? (Cont.)
• Abusive Supervision
• Hostile behaviors
• Root cause of stress in the workplace
• Deviant Behavior by Coworkers
• Direct effects
• Indirect effects
• Ambient impact
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 10
What Is Conflict? (Cont.)
• “Toxic” Workplaces
• Organizational hierarchy
• Organizational politics
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 11
What Is Conflict? (Cont.)
• Workplace Violence
• Leading cause of workplace fatalities
• Disgruntled coworkers difficult to profile
• Conflict resolution
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 12
Conflict Resolution Styles
• Integrating (problem solving)
• Obliging (smoothing)
• Dominating (forcing)
• Avoiding (withdrawing from conflict)
• Compromising (creating a solution that
everyone can agree on)
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 13
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 14
Conflict Resolution Styles (Cont.)
Conflict Resolution Styles (Cont.)
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 15
Conflict Resolution Styles (Cont.)
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 16
Team Conflict Resolutions
• All types of conflict are detrimental to member
satisfaction
• Moderate levels of task conflict can improve
team performance
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 17
Team Conflict Resolutions (Cont.)
• Team Conflict Resolution Strategies
• Focus on content of interactions not delivery style
• Explicitly discuss reasons behind decisions in
distributing work assignments
• Assign work to members with relevant task
expertise rather than using means such as
volunteering, default, or convenience
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 18
Team Conflict Resolutions (Cont.)
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 19
Resolving Conflicts Across
Cultures
• Be a good listener
• Be sensitive to the needs of others
• Be cooperative, rather than overly competitive
(equal with skill above)
• Advocate inclusive (participative) leadership
• Compromise rather than dominate
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 20
Resolving Conflicts Across
Cultures (Cont.)
• Build rapport through conversations
• Be compassionate and understanding
• Avoid conflict by emphasizing harmony
• Nurture others (develop and mentor)
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 21
Third-Party Interventions
• Facilitation by the leader
• Alternative dispute resolution
• Ombudsmen
• Peer review
• Mediation
• Arbitration
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 22
Third-Party Interventions (Cont.)
• Facilitation
• Leader intervenes to resolve a conflict
• Leader plays role of impartial mediator
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 23
Third-Party Interventions (Cont.)
• Alternative Dispute Resolution--Methods to
resolve conflict that both parties agree to
without involving litigation
• Ombudsperson
• Peer Review
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 24
Third-Party Interventions (Cont.)
• Mediation
• Third-party neutral person is called to resolve
conflict
• Most common form of alternative dispute resolution
• Fair process results in people being satisfied
• Steps in mediation:
• Participation
• Representation/reparation
• Validation/reintegration
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 25
Third-Party Interventions (Cont.)
• Arbitration--Both parties agree in advance to
accept decision and it is made by a neutral
third party
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 26
Third-Party Interventions (Cont.)
• Third-Party Conflict Resolution Interventions
• Is the intervention necessary or appropriate
• If so, what type of intervention is most appropriate
• Is the manager the appropriate person to intervene
• If not, should the services of an independent
resource person be provided
• If so, how might the manager make use of the
resource person
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 27
Negotiation
• Distributive Bargaining
• “Fixed pie” perspective
• Hardball tactics--leads to higher economic
outcomes
• Integrative Bargaining
• Tries to reach an agreement that satisfies all
concerns and leads to higher emotional outcomes
such as satisfaction and relationship development
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 28
Negotiation (Cont.)
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 29
Negotiation (cont.)
• Distributive Bargaining
• Zero-Sum Game
• Fixed Pie
• Best Alternative to a Negotiated Agreement
(BATNA)
• First-Offer-Effect
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 30
Negotiation (cont.)
• Integrative Bargaining
• Expanding Pie (“win-win” solution)
• “Sweetening the Deal”
• Creativity
• Novel Solutions
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 31
Leadership Implications:
Perspective Taking
• The ability to see things from another person’s
perspective when they hold a view that conflicts
with your own
• Fosters empathy and more positive attributions in
conflict resolution and negotiation
Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 32

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Lead 705 ppt 11

  • 2. The Costs of Workplace Conflict • 85% of employees deal with conflict on some level • 29% of employees deal with it almost constantly • 34% of conflict occurs among front-line employees • 49% of conflict is a result of personality clashes and “warring egos” • 34% of conflict is caused by stress in the workplace • 33% of conflict is caused by heavy workloads Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 2
  • 3. Negative Outcomes of Workplace Conflict: Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 3
  • 4. What Is Conflict? • Conflict is defined as “the process that begins when one party perceives that the other has negatively affected, or is about to negatively affect, something that he or she cares about” (Thomas, 1992) • Conflict is a perception • Perceptions don’t always line up with reality. • However, they do influence behavior and they can be changed Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 4
  • 5. What Is Conflict? (Cont.) • Causes/Sources of Organizational Conflict • Substantive conflict • Affective conflict • Process conflict Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 5
  • 6. What Is Conflict? (Cont.) • Is Conflict Always Bad? • Unproductive (dysfunctional) organizational conflict can harm relationships between leaders and followers and among teammates; ultimately harms performance • Productive (functional) conflict is productive; improves performance if it aligns with the goals of the organization Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 6
  • 7. Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 7 What Is Conflict? (Cont.)
  • 8. What Is Conflict? (Cont.) • Task Versus Relationship Conflict • Task conflict--Disagreements about resource allocation, policies, or even interpretation of data • Relationship conflict--involves personality clashes or differences in values Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 8
  • 9. What Is Conflict? (Cont.) • Workplace Incivility and Aggression • Two million acts of workplace violence a year • Employees likely face at least one instance of incivility a week • To resolve these problems leaders must • Know their employees and what is going on among them • Help with conflict resolution Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 9
  • 10. What Is Conflict? (Cont.) • Abusive Supervision • Hostile behaviors • Root cause of stress in the workplace • Deviant Behavior by Coworkers • Direct effects • Indirect effects • Ambient impact Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 10
  • 11. What Is Conflict? (Cont.) • “Toxic” Workplaces • Organizational hierarchy • Organizational politics Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 11
  • 12. What Is Conflict? (Cont.) • Workplace Violence • Leading cause of workplace fatalities • Disgruntled coworkers difficult to profile • Conflict resolution Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 12
  • 13. Conflict Resolution Styles • Integrating (problem solving) • Obliging (smoothing) • Dominating (forcing) • Avoiding (withdrawing from conflict) • Compromising (creating a solution that everyone can agree on) Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 13
  • 14. Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 14 Conflict Resolution Styles (Cont.)
  • 15. Conflict Resolution Styles (Cont.) Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 15
  • 16. Conflict Resolution Styles (Cont.) Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 16
  • 17. Team Conflict Resolutions • All types of conflict are detrimental to member satisfaction • Moderate levels of task conflict can improve team performance Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 17
  • 18. Team Conflict Resolutions (Cont.) • Team Conflict Resolution Strategies • Focus on content of interactions not delivery style • Explicitly discuss reasons behind decisions in distributing work assignments • Assign work to members with relevant task expertise rather than using means such as volunteering, default, or convenience Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 18
  • 19. Team Conflict Resolutions (Cont.) Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 19
  • 20. Resolving Conflicts Across Cultures • Be a good listener • Be sensitive to the needs of others • Be cooperative, rather than overly competitive (equal with skill above) • Advocate inclusive (participative) leadership • Compromise rather than dominate Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 20
  • 21. Resolving Conflicts Across Cultures (Cont.) • Build rapport through conversations • Be compassionate and understanding • Avoid conflict by emphasizing harmony • Nurture others (develop and mentor) Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 21
  • 22. Third-Party Interventions • Facilitation by the leader • Alternative dispute resolution • Ombudsmen • Peer review • Mediation • Arbitration Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 22
  • 23. Third-Party Interventions (Cont.) • Facilitation • Leader intervenes to resolve a conflict • Leader plays role of impartial mediator Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 23
  • 24. Third-Party Interventions (Cont.) • Alternative Dispute Resolution--Methods to resolve conflict that both parties agree to without involving litigation • Ombudsperson • Peer Review Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 24
  • 25. Third-Party Interventions (Cont.) • Mediation • Third-party neutral person is called to resolve conflict • Most common form of alternative dispute resolution • Fair process results in people being satisfied • Steps in mediation: • Participation • Representation/reparation • Validation/reintegration Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 25
  • 26. Third-Party Interventions (Cont.) • Arbitration--Both parties agree in advance to accept decision and it is made by a neutral third party Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 26
  • 27. Third-Party Interventions (Cont.) • Third-Party Conflict Resolution Interventions • Is the intervention necessary or appropriate • If so, what type of intervention is most appropriate • Is the manager the appropriate person to intervene • If not, should the services of an independent resource person be provided • If so, how might the manager make use of the resource person Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 27
  • 28. Negotiation • Distributive Bargaining • “Fixed pie” perspective • Hardball tactics--leads to higher economic outcomes • Integrative Bargaining • Tries to reach an agreement that satisfies all concerns and leads to higher emotional outcomes such as satisfaction and relationship development Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 28
  • 29. Negotiation (Cont.) Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 29
  • 30. Negotiation (cont.) • Distributive Bargaining • Zero-Sum Game • Fixed Pie • Best Alternative to a Negotiated Agreement (BATNA) • First-Offer-Effect Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 30
  • 31. Negotiation (cont.) • Integrative Bargaining • Expanding Pie (“win-win” solution) • “Sweetening the Deal” • Creativity • Novel Solutions Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 31
  • 32. Leadership Implications: Perspective Taking • The ability to see things from another person’s perspective when they hold a view that conflicts with your own • Fosters empathy and more positive attributions in conflict resolution and negotiation Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 32