This chapter discusses conflict and negotiation in organizations. It defines conflict as a process where one party perceives their interests are being opposed by another party. The chapter outlines sources of conflict such as incompatible goals, different values and beliefs, task interdependence, scarce resources, and communication problems. It also discusses styles of conflict management including competing, collaborating, compromising, avoiding, and accommodating. Techniques for managing conflict structurally include emphasizing superordinate goals, reducing differentiation, and improving communication. The chapter concludes with an overview of situational influences on negotiation and types of third-party conflict resolution.

1. © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
C H A P T E RC H A P T E R 1313
Conflict andConflict and
negotiationnegotiation

2. 2
Chapter learning objectivesChapter learning objectives
1. Distinguish task-related from socioemotional conflict.
2. Discuss the advantages and disadvantages of conflict
in organisations.
3. Identify six sources of organisational conflict.
4. Outline the five interpersonal styles of conflict
management.
5. Summarise six structural approaches to managing
conflict.
6. Outline four situational influences on negotiations.
7. Compare and contrast the three types of third-party
dispute resolution.

3. 3
Conflict between Woodside and ShellConflict between Woodside and Shell
Executives at Woodside
Petroleum and Royal
Dutch/Shell experienced
conflict when Shell recently
tried to take majority ownership
of the Perth-based oil and gas
development company.
© AFP Photo/HO

4. 4
Conflict definedConflict defined
The process in which one
party perceives that its
interests are being opposed
or negatively affected by
another party.
© AFP Photo/HO

5. 5
The conflict processThe conflict process
Sources ofSources of
conflictconflict
ManifestManifest
conflictconflict
ConflictConflict
outcomesoutcomes
Conflict
perceptions
Conflict
emotions

6. 6
Task-related vs socioemotional conflictTask-related vs socioemotional conflict
 Task-related conflict
 conflict is aimed at issue, not parties
 basis of constructive controversy
 helps recognise problems, identify solutions and
understand the issues
 Socioemotional conflict
 conflict viewed as a personal attack
 foundation of conflict escalation
 leads to dissatisfaction, stress and turnover

7. 7
Organisational conflict outcomesOrganisational conflict outcomes
 Dysfunctional outcomes
 diverts energy and resources
 encourages organisational politics
 encourages stereotyping
 weakens knowledge management
 Potential benefits
 improves decision making
 strengthens team dynamics

8. 8
Sources of conflictSources of conflict
GoalGoal
incompatibilityincompatibility
Different valuesDifferent values
and beliefsand beliefs
• Goals conflict with goals of others
 Different beliefs due to unique
background, experience, training
 Caused by specialised tasks,
careers
 Explains misunderstanding in
cross-cultural and merger
relations

9. 9
Sources of conflictSources of conflict
GoalGoal
incompatibilityincompatibility
Different valuesDifferent values
and beliefsand beliefs
TaskTask
interdependenceinterdependence
Three levels of interdependence
ResourceResource
AA BB CC
Pooled
AA BB CC
Sequential
AA
BB CC
Reciprocal

10. 10
Sources of conflictSources of conflict
GoalGoal
IncompatibilityIncompatibility
Different ValuesDifferent Values
and Beliefsand Beliefs
TaskTask
InterdependenceInterdependence
ScarceScarce
ResourcesResources
AmbiguityAmbiguity
• Increases competition for resources
to fulfil goals
 Lack of rules guiding relations
 Encourages political tactics

11. 11
Sources of conflictSources of conflict
GoalGoal
IncompatibilityIncompatibility
Different ValuesDifferent Values
and Beliefsand Beliefs
TaskTask
InterdependenceInterdependence
ScarceScarce
ResourcesResources
AmbiguityAmbiguity
CommunicationCommunication
ProblemsProblems
Lack of opportunity
 reliance on stereotypes
Lack of ability
 arrogant communication
heightens conflict perception
Lack of motivation
 conflict causes lower
motivation to communicate,
increases stereotyping

12. 12
Conflict mgt styles: orientationsConflict mgt styles: orientations
 Win-win orientation
 you believe parties will find a mutually beneficial
solution to their disagreement
 Win-lose orientation
 you believe that the more one party receives, the less
the other receives
 tends to escalate conflict, use of power/politics

13. 13
Assertiveness
Cooperativeness
CompetingCompeting CollaboratingCollaborating
CompromisingCompromising
AvoidingAvoiding AccommodatingAccommodating
High
Low High
Conflict management stylesConflict management styles

14. 14
Superordinate goals at Tivoli SystemsSuperordinate goals at Tivoli Systems
The value of superordinate
goals was apparent in a
paper airplanes exercise at
Tivoli Systems. Teams
discovered that they
succeeded by focusing on
the organisation’s goals
rather than fighting over
conflicting goals between
teams.
© Ed Lallo

15. 15
Emphasising superordinate goalsEmphasising superordinate goals
 Emphasising common
objectives rather than
conflicting sub-goals
 Reducing goal
incompatibility and
differentiation
© Ed Lallo

16. 16
Reducing differentiationReducing differentiation
 Remove sources of
different values and
beliefs
 Move employees around
to different jobs,
departments and regions
 Other ways to reduce
differentiation:
 encourage generalist
careers
 common dress code and
status
 common work experiences
© Ed Lallo

17. 17
© Gary Diggens/Toronto Star
Improving communication/understandingImproving communication/understanding
Employees understand and
appreciate each other’s views
through communication
 informal gatherings
 formal dialogue sessions
 teambuilding activities
(such as drum circles, shown
here)

18. 18
Other ways to manage conflictOther ways to manage conflict
 Reduce task interdependence
 divide shared resources
 combine tasks
 use buffers
 Increase resources
 duplicate resources
 Clarify rules and procedures
 clarify resource distribution
 change interdependence

19. 19
Your positionsYour positions
Initial Target
InitialTarget
Opponent’s positionsOpponent’s positions
Area of
potential
agreement
Bargaining zone modelBargaining zone model
Resistance
Resistance

20. 20
Situational influences on negotiationSituational influences on negotiation
 Location
 Physical setting
 Time investment and
deadlines
 Audience
© Corel Corp. With permission.

21. 21
Effective negotiator behavioursEffective negotiator behaviours
 Plan and set goals
 Gather information
 Communicate effectively
 Make appropriate
concessions
© Corel Corp. With permission.

22. 22
Third-partyThird-party
conflict resolutionconflict resolution
objectivesobjectives
EfficiencyEfficiency
EffectivenessEffectiveness
ProceduralProcedural
fairnessfairness
OutcomeOutcome
fairnessfairness
Third-party objectivesThird-party objectives

23. 23
Types of third-party interventionTypes of third-party intervention
MediationMediation
ArbitrationArbitration
InquisitionInquisition
Level of
process
control
Level of outcome control
High
HighLow

24. 24
Overview of the next chapterOverview of the next chapter
 Competencies of effective leaders
 Behavioural perspective of leadership
 Path-goal theory of leadership
 Elements of transformational leadership
 Why people inflate the importance of leadership
 Gender differences in leadership

25. © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
C H A P T E RC H A P T E R 1313
Conflict andConflict and
negotiationnegotiation